HomeMy WebLinkAboutCDC/2009-33
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RESOLUTION NO. CDC/2009-33
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSlON OF
THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE
INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE
CERTAIN AMENDMENTS TO THE SINGLE-FAMILY BEAUTIFICATION
LOAN/GRANT AND MOBILE HOME GRANT PROGRAM AND THE 2007
HOME AGREEMENT BY AND BETWEEN THE AGENCY AND
NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE, INC.
("NHSIE")
WHEREAS. the Redevelopment Agency of the City of San Bernardino
("Agency") hasl
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established an affordable housing improvement program known as the "Single-Family
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Beautification Loan/Grant Program and Mobile Home Grant Program" (the "Program"); and
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WHEREAS, the purpose of the Program is to provide low- and moderate-income
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homeowners ("Qualified Homeowners") who reside in the City of San Bernardino (the "City"), with
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a special source of loan and grant funds to undertake certain housing rehabilitation and correction
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work (including asbestos and lead containing materials abatement work, handicap accessibility
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improvements and building code deficiency corrections) and certain exterior landscape and
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structural beautification improvements of owner-occupied, single-family residential dwelling units;
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and
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WHEREAS, the application of the proceeds of such loans and grants to such work by the
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Qualified Homeowners under the specifications of the Program promotes and expands the supply 0
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affordable housing in the City and fosters the elimination and prevention of blight; and
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WHEREAS, on June 7, 2007, the Community Development Commission of the City of San
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Bernardino ("Commission") approved Amendment No. I with Neighborhood Housing Services of
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the Inland Empire, Inc. ("NHSIE") ("2007 Agreement"), for the purpose of administering the
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Program; and
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WHEREAS, the Agency and NHSIE desire to amend the terms and conditions of the 2007
Agreement (such changes to the Program in the form of three (3) separate restated agreement, is
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herein referred to as "Amendment No.2") through June 30, 2010, by modifying the Scope of
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Services; and
P:\AgendaoIRe,olutions\Resolutions'.1009\07-06-09 KHS1E Contract Amendmcm, ('DC Reso.doc
CDC/2009-33
1 WHEREAS, the general changes to the current contract will include the following:
2 0 Divide the existing Single-Family Beautification Loan/Grant, Mobile Home Grant Program
3 into three individual agreements to include the Beautification Grant Program, Rehabilitation
4 Loan Program, and the Mobile Home Grant Program.
5 0 Require that all applicable maintenance and affordability covenants and other grant
6 documentation be reviewed and signed by Agency Staff and recorded by the County
7 Recorder prior to the notice to proceed and prior to the expenditure of any grant or loan
8 funds.
9 0 Require that NHSIE contact Agency Staff to complete project inspections (within 10
10 business days after request) prior to payment of final invoices so that no payments from the
11 Agency will be made until final inspection is approved by Agency Staff; and
12 WHEREAS, individual program changes integrated into the new agreements for FY2009-
13 2010 will include the following:
14 Beautification Grant Program
15 0 Set a minimum goal of 87 beautification grants per year to be conducted by NHSIE.
16 0 NHSIE will grant up to $10,000 per property with an additional dollar-for-dollar match from
17 the Homeowner not to excced an additional $15,000, and based on the Homeowner's match,
18 the total beautification activity per housing unit could equal a maximum of $20,000 per
19 beautification activity ($15,000 in Agency funds plus $5,000 in Homeowner funds).
20 0 Permit the Agency to target the Program in specific areas of the City, leveraging it with other
21 funds to better maximize the effectiveness of the Program and should the Agency request
22 this targeting in specific areas, Agency Staff shall provide the target area or areas in
23 consultation with the Commission and NHSIE.
24 0 Implement an Application Review Committee consisting of NHSIE and Agency Staff, to
25 review and mutually approve each grant application prior to award and execution of any
26 agreements and prior to commencement of work.
27 0 Add a lO-year Maintenance Covenant in the Program Eligibility Requirements section.
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P:\Agenda,\Resolu\jon,\Rc,,,I,,ti,,n,\~()()<J\07.0fl_09 "HSIE Contract Al1lendmetH' (DC Res" doc
CDC/2009-33
1 0 Include certain language within the new loan agreement prohibiting the simultaneous use of
2 grant and loan funds.
3 Rehabilitation Loan Program
4 0 Rename the current loan component of the Beautification Grant/Loan Program as the
5 "Rehabilitation Loan Program".
6 0 Set a minimum goal of 10 loans per year to be conducted by NHSIE.
7 0 Reduce the loan amount made by the Agency to thc Qualified Homeowner to a not to exceed
8 amount of the lesser of: $25,000 or twenty-five percent (25%) of the fair market value of the
9 Home as determined by a licensed appraiser after rehabilitation has been completed and
10 approved such loan subject to approval by the Agency Staff.
11 0 Pennit the Agency to target the Program in specific areas of the City, leveraging Program
12 with other funds to better maximize the effectiveness of the Program and should the Agency
13 request this targeting in specific areas, Agency Staff shall provide the target area or areas in
14 consultation with the Commission and NHSIE.
15 0 Implement an Application Review Committee, consisting of NHSIE and Agency Staff, to
16 review and mutually approve each grant application prior to award and execution of any
17 agreements and prior to commencement of work.
18 0 Include certain language within the new loan agreement prohibiting the joint use of grant
19 and loan funds on a property simultaneously and within ten (10) years after the initial loan or
20 grant.
21 Mobile Home Grant Program
22 0 Set a minimum goal of 32 grants per year to be conducted by NHSIE; and
23 WHEREAS, the City of San Bernardino ("City") has received formula HOME Investment
24 Partnership allocation for Fiscal Year 2009-2010 and anticipates receiving said funds yearly
25 thereafter, from the U.S. Department of Housing and Urban Development ("HUD") to carry out
26 eligible activities in accordance with federal program requirements at 24 CFR 92 (the "Homebuyer
27 Education Program"), and the Agency has been designated on annual basis by the Mayor and
28 Common Council of the City of San Bernardino ("Council") to administer such Homebuyer
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CDCj2009-33
1 Education Program on behalf of the City; and
2 WHEREAS, in an effort to facilitate these activities, the City, on June 4, 2007, entered into
3 a HOME Agreement (2009-2010 HOME Funds), (the "HOME Agreement"), NHSIE, to carry out
4 the Homebuyer Education Program; and
5 WHEREAS, the Agency, on behalf of the City, together with NHSIE, desire to amend the
6 scope of services to be that as identified herein and maintain the annual fee for these services for
7 Fiscal Year 2009-2010 for an annual amount not to exceed $80,000, subject to availability of the
8 HOME Funds and performance by NHSIE, and said services include the following:
9 0 NilS IE shall train a minimum number of 1,200 participants per year and from this total, a
10 minimum number of 300 participants shall be trained who either reside in or work in the
11 City.
12 0 Conduct off-site marketing and outreach of NHSIE's and the Agency's Homebuyer's
13 Assistance Programs; a total of not less than nine businesses and/or organizations (public
14 and private sector) per year within the City.
15 0 Provide City/Agency with monthly reports detailing participants and families completing the
16 Homebuycr Education Program and the number of families purchasing a home within the
17 City.
18 0 Target and market to local residents and track on a quarterly basis the number of program
19 participants who currently live and/or work in the City who eventually become homeowners
20 within the City.
21 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE
22 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS
23 fOLLOWS:
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Section 1.
The Commission hereby approves Amendment No.2, by and between the
25 Agency and NHSIE in the form of the three (3) separate restated agreements as presented at the
26 meeting of the Commission at which this Resolution is adopted and hereby authorizes the Interim
27 Executive Director of the Agency to execute Amendment No. 2 on behalf of the Agency and
28 hereby authorizes minor corrections, additions, clarifications, interpretations be made to said
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P \Ag<;nda,\Re,olmjons\Re,oIUltons\2U()<)\07.06_09 NHSIE Contract Amendmen" cue Re,o.doc
CDC/2009-33
1 Amendment No.2, provided said changes are not substantive in nature, do not Increase the
2 monetary impact to the Agency, and are consented to by the Agency Counsel.
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Section 2.
For the purpose of satisfying the requirements of Health and Safety Code
4 Section 33413(b), the Commission hereby finds and determines that the Program expands and
5 preserves the community's supply of affordable housing as provided under said provision of the
6 Health and Safety Code.
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Section 3.
The Community Development Commission ("Commission") authorizes and
8 directs the Interim Executive Director of the Agency to execute the Amendment No. I to the
9 HOME Agreement together with such nonsubstantive modifications as deemed necessary and as
10 approved by the Interim Executive Director of the Agency, with the concurrence of Agency
II Counsel, between the Agency and NHSIE, and such Amendment No. I shall authorize an amount
12 not to exceed $80,000 annually, for Fiscal Year 2009-2010, subject to the availability ofthe HOME
13 Funds for the administration and provision of the Program to eligible participants.
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Section 4.
The Agreements attached hereto and incorporated as Attachments "A"
IS (Single Family Beautification Grant Program Agreement), "B" (Single Family Rehabilitation Loan
16 Program Agreement), "C" (Mobile Home Grant Program Agreement), and "D" (Amendment No. I
17 to 2007 HOME Agreement) respectively shall be one intended to be and shall be interpreted as in
18 compliance with their regulatory and statutory requirements and provisions.
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Section 5.
This Resolution shall take effect from and after its date of adoption by this
20 Commission.
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CDC/2009-33
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE
INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE
CERTAIN AMENDMENTS TO THE SINGLE-FAMILY BEAUTIFICATION
LOAN/GRANT AND MOBILE HOME GRANT PROGRAM AND THE 2007
HOME AGREEMENT BY AND BETWEEN THE AGENCY AND
NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE, INC.
("NHSIE")
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community
8 Development Commission of the City of San Bernardino at a ioint reoular meeting thereof,
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21 The foregoing Resolution is hereby approved this
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,2009, by the following vote to wit:
Navs
Abstain
Absent
x
c;;~
Secretary
~
g- day of
July
,2009,
~~
Patr' k J, Morris,"brrtf'rperson
ommumty Development CommIssIOn
of the City of San Bernardino
25 Approved as to Form:
26 ~
By: \ /'~
27 -Agency C nsel
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P:\AgendaslRe,olution'\Resolulion,'2009\07-06-09 NHSIE Contract Amendment, CDC Reso.doc
CITY OF SAN BERNARDINO
Interoffice Memorandum
CITY CLERK'S OFFICE
DATE:
November 5, 2009
FROM:
Margaret Fedor, Executive Assistant to the City Cler~
J
RE:
Agreements Associated with CDC/2009-33
The agreements immediately following this memo were received from the Economic
Development Agency on October 27,2009 and supersede those previously filed with resolution
CDC/2009-33.
October 27,2009
Neighborhood Housing Services
of the Inland Empire
Attention: Ms. Helen G. Moore, Executive Director
1390 North "D" Street
San Bernardino, CA 92405
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Re: Single Family Residence Rehabilitation Loan Program Agreement (Low-Moderate'~.
Housing Fnnd); Amendment No. 1 to the HOME Agreement (2007-2010 HOME
Funds) (Neighborhood Housing Services of the Inland Empire, Inc.); Single-Family
Beautification Grant Program Agreement and Mobile Home Grant Program
Agreement (HOME Funds)
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Dear Ms. Moore:
Enclosed for your records are the final executed documents as referenced above.
Should you have any questions regarding this matter, please feel free to call me or Mr. Carey K.
Jenkins, Housing and Community Development Director at (909) 663-1044.
Sincerely,
,C)flvfL-
Lorraine B. Wyche
Secretary
Enclosures
cc: Carey K. Jenkins (With Copy of Executed Agreement)
Russ DeJesus/Margaret Urquides (with Original Executed Agreement)
Margaret Fedor, City Clerk's Office (With Original Executed Agreement)
Wasana A. Chantha, Executive Secretary
File
P:\Clcrjcal Service. DcptIL"'raincILellers\2009\10-27-09 NHSIE Final Excculod Agreements (SF Rehab. Loon Prog, Amend. No. Ilo HOME & Mobilchomc Grant Prog__doc
201 North E Street, Suite 301. San Bernardino, California 92401-1507. (909) 663-1044 _Fax (909) 888-9413
Email: info@sbrda.org . www.sbrda.org
REDEVELOPMENT AGENCY OF THE CITY OF
SAN BERNARDINO
SINGLE F AMIL Y RESIDENCE REHABILITATION LOAN PROGRAM AGREEMENT
(Low-Moderate Housing Fund)
THIS SINGLE FAMILY RESIDENCE REHABILITATION LOAN PROGRAM
AGREEMENT (the "Agreement") is made and entered into this 29th day of June, 2009 (the
"Effective Date"), by and between the NEIGHBORHOOD HOUSING SERVICES OF THE
INLAND EMPIRE, INC., a California non-profit corporation (the "Contractor") and the
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency"), a
public body, corporate and politic. The Agency and the Contractor agree as follows:
RECIT ALS
WHEREAS, the Agency and the Contractor have previously entered into the Single
Family Beautification Loan/Grant And Mobile Home Grant Programs (Low-Moderate Housing
Fund and HOME Fund), dated as of February 7, 2005, as modified by that certain Amendment
No. I To The Single-Family Beautification Loan/Grant And Mobile Home Grant Program, dated
as of June 4, 2007, by and between the Agency and the Contractor (collectively, the "Loan and
Grant Agrcement"); and
WHEREAS, the Loan and Grant Agreement provides for the following: (i) loan funds
(the "Rehabilitation Loan Program") and grant funds (the "Beautification Grant Program") to
low-moderate income homeowners who reside in the City of San Bernardino (the "City"), in the
County of San Bernardino (the "County"), in the State of California (the "State") to permit such
homeowners to undertake certain housing rehabilitation and correction work, including, without
limitation, asbestos and lead containing materials abatement work, handicap accessibility
improvements and utility energy improvements as described in the Loan and Grant Agreement,
to single family residential dwelling units owned and occupied by such low-moderate
homeowners, and (ii) grant funds (the "Mobile Home Grant Program") to low-income owners of
mobile homes who reside in the City, in the County and in the State to permit, without limitation,
such low-income mobile home owners to make repairs and improvements to their mobile homes
in accordance with the Loan and Grant Agreement); and
WHEREAS, the Agency and the Contractor have previously entered into the Home
Agreement, dated June 4, 2007 (the "Homebuyer Education Program Agreement"), wherein the
Contractor, without limitation, administers, implements and conducts a Homebuyer Education
Program (as defined therein); and
WHEREAS, the Rehabilitation Loan Program, the Beautification Grant Program, the
Mobile Home Grant Program and the Homebuyer Education Program promote and expand the
supply of affordable housing in the City and foster the elimination and prevention of blight; and
WHEREAS, the Agency and the Contractor would like to amend the Homebuyer
Education Program Agreement pursuant to the First Amendment (as defined below) and to
4813-0902-9X9].}
execute, to deliver and to perform under a new and separate agreement for each of the
Rehabilitation Loan Program, for the Beautification Grant Program and for the Mobile Home
Grant Program; and
WHEREAS, the Agency and the Contractor desire to terminate the Loan and Grant
Agreement and to replace the Loan and Grant Agreement with each of the following three (3)
new and separate agreements: (i) this Agreement which provides loan funds to low-moderate
income homeowners who reside in the City, in the County and in the State to permit such
homeowners to undertake certain housing rehabilitation and correction work as described in this
Agreement, to single family residential dwelling units owned and occupied by such low-
moderate homeowners, (ii) the Single Family Beautification Grant Program Agreement (the
"Beautification Grant Program Agreement") which provides grant funds to low-moderate income
homeowners who reside in the City, in the County and in the State to permit such homeowners to
undertake certain housing rehabilitation and correction work as described therein, to single
family residential dwelling units owned and occupied by such low-moderate homeowners, and
(iii) the Mobile Home Grant Program Agreement (the "Mobile Home Grant Program
Agreement") which provides grant funds to low-income owners of mobile homes who reside in
the City, in the County and in the State to permit, without limitation, such low-income mobile
home owners to make repairs and improvements to their mobile homes in accordance with such
Mobile Home Grant Program Agreement; and
WHEREAS, the Agency and the Contractor have determined that this Agreement, the
Beautification Grant Program Agreement, the Mobile Home Grant Program Agreement and the
Homebuyer Education Program Agreement, as amended by the First Amendment, will promote
and expand the supply of affordable housing in the City and will foster the elimination and
prevention of blight; and
WHEREAS, the Loan and Grant Agreement shall not be terminated until the Agency and
the Contractor have entered into and executed this Agreement, the Beautification Grant Program
Agreement, the Mobile Home Grant Program Agreement and the Amendment No.1 (the "First
Amendment") to the Homebuyer Education Program Agreement.
NOW, THEREFORE, IN CONSIDERATION OF THE RECITALS
MENTIONED ABOVE, THE MUTUAL PROMISES OF THE AGENCY AND OF THE
CONTRACTOR IN THIS AGREEMENT AND FOR OTHER GOOD AND VALUABLE
CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY
ACKNOWLEDGED BY THE AGENCY AND BY THE CONTRACTOR, THE AGENCY
AND THE CONTRACTOR AGREE AS FOLLOWS:
Section 1. DEFINITIONS OF CERTAIN TERMS. In addition to the words and
phrases, which are defined in the Recitals of this Agreement and/or in this Agreement, the
following words and terms shall have the meaning set forth below:
"Countv Recorder's Office" means and refers to the county recorder's office for
the County of San Bernardino, State of California.
4813-0902-9891.1
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4813-0902-9891.1
"Deed of Trust" means and refers to the Deed of Trust and Assignment of Rents
securing the obligations of the Note and encumbering the Home. The Deed of
Trust must be executed and acknowledged by the Qualified Homeowner and shall
be recorded by or for the Agency in the County Recorder's Office. The Deed of
Trust shall be subordinate to the Senior Deed of Trust. The Deed of Trust must
be substantially similar to the Deed of Trust attached hereto and incorporated
herein by this reference as Exhibit '~".
"Environmental Laws" mean and refer to all applicable federal, state, municipal
and local laws, statutes, codes, ordinances, rules, regulations, orders and
judgments relating to the protection or clean-up of the environment, the use,
treatment, storage, transportation, generation, manufacture, processing,
distribution, handling or disposal of, or emission, discharge or other release or
threatened release of hazardous substances, the preservation or protection of
waterways, groundwater, drinking water, air, wildlife, plants or other natural
resources, the health and safety of persons, or the protection of the health and
safety of employees, now or hereafter existing, as the same may be amended,
modified or supplemented from time to time, including, without limitation: the
Clean Air Act, as amended, 42 U.S.C. Section 7401 et seq.; the Federal Water
Pollution Control Act, as amended, 33 U.S.C. Section 1251 et seq.; the Resource
Conservation and Recovery Act of 1976, as amended, 42 U.S.C. Section 690 I et
seq.; the Comprehensive Environment Response, Compensation and Liability Act
of 1980, as amended (including the Superfund Amendments and Reauthorization
Act of 1986, "CERCLA"), 42 u.s.c. Section 9601 et seq.; the Toxic Substances
Control Act, as amended, 15 U.S.C. Section 2601 et seq.; the Occupational Safety
and Health Act, as amended, 29 U.S.C. Section 651, the Emergency Planning and
Community Right-to-Know Act of 1986, 42 U.S.C. Section 11001 et seq.; the
Safe Drinking Water Act, as amended, 42 U.S.C. Section 300f et seq.; the
California Health and Safety Code (Section 25100 et seq., S 25249.5 et seq.,
Section 39000 et seq.); the California Water Code (Section 13000 et seq.); the
California Environmental Quality Act ("CEQA"); the California Public Resources
Code; all comparable state and local laws, laws of other jurisdictions or orders
and regulations; and any and all common law requirements, rules and bases of
liability regulating, relating to or imposing liability or standards of conduct
concerning pollution or protection ofhurnan health or the environment, as now or
may at any time hereafter be in effect.
"Executive Director" means and refers to the Interim Executive Director of the
Agency and his or her authorized representatives.
"General Contractor Agreement" means and refers to the Single Family
Residence Rehabilitation Loan Program General Contractor Agreement by and
between the Qualified Homeowner and the contractor identified therein (the
"General Contractor") as approved, in writing, by the Contractor. The General
Contractor Agreement relates, without limitation, to the construction, installation
and completion by the General Contractor of the Work described in the General
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4813-0902-9891.1
Contractor Agreement. The General Contractor Agreement shall be executed by
and between the Qualified Homeowner and the General Contractor and shall be
accepted, in writing, by the Contractor. The General Contractor Agreement shall
be substantially similar to the General Contractor Agreement attached hereto and
incorporated herein by this reference as "Exhibit "'$'.
"Hazardous Substances" mean and refer to any pollutant, contaminant, waste and
any toxic, carcinogenic, reactive, corrosive, ignitable, flammable or infectious
chemical, chemical compound or substance or otherwise hazardous wastes, toxic
or contaminated substances or similar materials, including, without limitation, any
quantity of asbestos, urea formaldehyde, PCBs, radon gas, lead, lead-based paint,
crude oil or any fraction thereof; all forms of natural gas, petroleum products, by-
products or derivatives, radioactive substances, methane, hydrogen sulfide or
materials, pesticides, waste waters, or sludges, any of the above of which are
subject to regulation, control or remediation under any Environmental Laws.
"Home" means and refers to the land and the single family dwelling unit located
thereon in the City, owned by the Qualified Homeowner and resided in by the
Qualified Homeowner as its principal residence.
'"Homeowner's Release and Waiver" means and refers to the Homeowner's
Release and Waiver, as executed by the Qualified Homeowner and the
Contractor. The Homeowner's Release and Waiver provides, without limitation,
that the Contractor shall be permitted to display yard signs at the Qualified
Homeowner's Home and that the Contractor shall be permitted to photograph or
videotape the Qualified Homeowner's Home. The Homeowner's Release and
Waiver shall be substantially similar to the Homeowner's Release and Waiver
attached hereto and incorporated herein by this reference as Exhibit "E".
"Improvements" mean and refer to the following types of eligible improvements
to the Qualified Homeowner's Home that will be permitted under the Program:
(i) roof repairs and re-roof or overlay, (ii) exterior and interior painting, including,
without limitation, lead testing, (iii) drought tolerant landscaping (irrigation
system, with hydro seeds, sod or artificial turt), (iv) window replacement, (v)
carpet replacement and/or finished flooring replacement, (vi) HV AC system, (vii)
electrical work, (viii) sewer repair or sewer installation (the "Sewer Repairs"),
(ix) termite repairs, (x) exterior concrete hardscape such as sidewalks, driveways,
curbs, ,b'1ltters, hand railings or ramps, (xi) door or window screens repairs or
replacements, (xii) tub, shower, toilet repairs or replacements, (xiii) foundation or
structural repairs, (xiv) fencing or (xv) installation of alternative energy sources,
including, without limitation, solar panels. The Improvements must relate to
health and safety code violations (i.e., blown sewer lines, septic tank destruction,
etc.).
In connection with each Loan Application for Sewer Repairs, the Agency shall
have the right to determine whether or not such Sewer Repairs shall be made from
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4813-0902-9891.1
funds disbursed by the Agency from Loan Funds under the Program or from grant
funds disbursed by the Agency to an applicant under the Single Family
Beautification Grant Program, or under any other then existing grant program.
Should the Agency determine that the Sewer Repairs will need to be disbursed by
the Agency from grant funds pursuant to the Single Family Beautification Grant
Program, or any other then existing grant program, the Contractor shall advise the
applicant, in writing, that the applicant will need to prepare, to execute and to
submit a new grant application to the Contractor under the Single Family
Beautification Grant Program, or under any other then existing grant program,
which grant application, without limitation, shall request the Agency to make a
grant to the applicant to permit the applicant to make and to complete the Sewer
Repairs.
"Laws" mean and refer to all federal, state, municipal and local laws, statutes,
codes, ordinances, regulations, rules, orders or judgments, now or hereafter in
effect, as amended from time to time, including, without limitation, the
Environmental Laws, all applicable building, plumbing, mechanical, electrical
and health and safety codes and City ordinances.
"Lead Based Paint Acknowledgment" means and refers to the "Lead Based Paint
Acknowledgment of Receipt" as executed by the Qualified Homeowner and by
the General Contractor. The Lead Based Paint Acknowledgment acknowledges
receipt by the Qualified Homeowner of the Lead Based Paint Pamphlet from the
General Contractor. The Lead Based Paint Acknowledgment is attached hereto
and incorporated herein by this reference as Exhibit "4".
"Lead Based Paint Disclosure" means and refers to the "Lead Based Paint
Disclosure" by and between the Qualified Homeowner and the General
Contractor. The Lead Based Paint Disclosure is to be executed by the General
Contractor and by the Qualified Homeowner and is attached hereto and
incorporated herein by this reference as Exhibit "J1-".
"Loan" means and refers to each loan transaction approved, granted and made by
the Agency to or for the benefit of the Qualified Homeowner in accordance with
this Agreement. Each Loan shall be evidenced by a Note and secured by a Deed
of Trust encumbering the Home owned by the Qualified Homeowner to whom the
Loan has been made by the Agency. Each Loan made by the Agency to the
Qualified Homeowner may not exceed the lesser of: (i) $25,000 or (ii) twenty-
five percent (25%) of the then fair market value of the Home as determined by a
licensed appraiser approved by the Agency (the "Loan Amount"), without the
prior written approval of the Executive Director. The Loan shall be subordinate
to the Senior Loan. The Qualified Homeowner shall pay all amounts that exceed
the Loan Funds paid by the Agency to or for the benefit of the Qualified
Homeowner under the Program to enable the Qualified Homeowner to complete
the Improvements in connection with the Qualified Homeowner's Home. For
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4X 13-0902-9891.1
each year during the term of this Agreement, the Contractor will attempt to
approve, complete, process and finalize up to ten (10) Loans.
"Loan Aoolication" means and refers to the Single Family Residence
Rehabilitation Loan Program Application as fully completed and executed by the
Qualified Homeowner. The Loan Application shall be submitted by the Qualified
Homeowner to the Contractor and the Contractor shall verify that the Loan
Application is complete. Each Loan Application shall contain the information
relating to the Qualified Homeowner and the proposed use of the Loan Funds by
the Qualified Homeowner together with a current preliminary title report or other
proof of title acceptable to the Agency for the Home. The Contractor shall
require all Qualified Homeowners to complete the Loan Application substantially
similar to the Loan Application attached hereto and incorporated by reference as
Exhibit ":f:."
"Loan Disbursement Account" means and refers to a separate custodial deposit
account, which the Contractor shall establish with an FDIC-insured depository
institution for the receipt and disbursement of the Loan Funds in connection with
the approval, granting and making by the Agency to the Qualified Homeowner of
the Loan under the Program in accordance with this Agreement. Such deposit
account agreement among the Contractor, the Agency and such depository
institution shall be in a form and substance as reasonably satisfactory to the
Agency. The Contractor shall create and maintain a separate Loan Disbursement
Account for each Loan approved, granted and made by the Agency to or for the
benefit of each Qualified Homeowner. No other funds of the Contractor shall be
deposited or co-mingled in the Loan Disbursement Account. The Contractor shall
serve as the trustee of the Agency in the administration of all of the Loan Funds or
deposit in each Loan Disbursement Account, including any interest as may accrue
thereon.
"Loan Documents" mean and refer to the following: (i) the Loan Application, (ii)
the Loan Services Agreement, (iii) the Maintenance Agreement Covenant, (iv) the
Homeowner's Release and Waiver, (v) the Note, (vi) the Deed of Trust, (vii) the
issuance of a title policy in favor of the Agency in the amount of the Loan Funds
approved by the Agency from a title company acceptable to the Agency, and (viii)
this Agreement and such other agreements, documents, instruments, guarantees
and/or certifications evidencing, securing, guaranteeing, relating to or in
connection with the Loan to the Qualified Homeowner, the Loan Funds and/or the
Loan Disbursement Account. The Loan Documents shall be subordinate to the
Senior Loan Documents.
"Loan Funds" mean and refer to the funds delivered by the Agency to or for the
benefit of a Qualified Homeowner in connection with the Loan that the Agency
has approved and made to the Qualified Homeowner in accordance with this
Agreement. Each Loan made by the Agency to the Qualified Homeowner may
not exceed the Loan Amount, without the prior written approval of the Executive
6
4813-0902-9891.1
Director. The Qualified Homeowner shall timely pay all amounts that exceed the
Loan Funds paid by the Agency to or for the benefit of the Qualified Homeowner
under the Program in order to construct, install, perform and/or complete the
Improvements in connection with the Qualified Homeowner's Home.
"Loan Services Agreement" means and refers to the Single Family Residence
Rehabilitation Loan Program Loan Services Agreement by and between the
Qualified Homeowner and the Contractor. The Loan Services Agreement,
without limitation, notifies the Qualified Homeowner that the Agency has made,
or has agreed to make, the Loan to the Qualified Homeowner, restates and
certifies the Program qualifications and guidelines, identifies the role of the
Contractor and restates the Qualified Homeowner's duties and responsibilities
under the Program. The Loan Services Agreement must be executed by the
Qualified Homeowner and by the Contractor and must be substantially similar to
the Loan Services Agreement attached hereto and incorporated herein by this
reference as Exhibit ",j'"'.
"Low-Moderate Income Housing Funds" mean and refer to the Low-Moderate
Income Housing Funds that the Agency intends to use to make the Loan to or for
the benefit of the Qualified Homeowner in accordance with this Agreement and
with Health and Safety Code Section 33334.3 et seq. The Agency and the
Contractor will offer the Loan to a Qualified Homeowner who earns not more
than 120% of the current annual median income for the San Bernardino County
area, adjusted for family size (as those tenns are defined by California Health and
Safety Code Section 50053.5) as further illustrated in Exhibit "A" of this
Agreement (the "2009 Income Limits") and are subject to annual adjustments.
"Maintenance Agreement Covenant" means and refers to the "Residential
Property Maintenance Agreement Containing Covenants Affecting Real Property
(Single Family Residence Rehabilitation Loan Program) by and between the
Agency and the Qualified Homeowner. The Maintenance Agreement Covenant
provides, without limitation, for maintenance-related duties and obligations to be
performed and completed by the Qualified Homeowner in connection with the
Qualified Homeowner's Home. The Maintenance Agreement Covenant shall be
executed and acknowledged by and between the Agency and the Qualified
Homeowner, and must be in recordable form for recordation by the Contractor or
by the Agency in the County Recorder's Office. The Maintenance Agreement
Covenant must be substantially similar to the Maintenance Agreement Covenant
attached hereto and incorporated herein by this reference as Exhibit "~".
"Maintenance Class" means and refers to the maintenance class conducted by the
Contractor and attended by the Qualified Homeowners after the Agency has
approved the Loan to a Qualified Homeowner. In the Maintenance Class, the
Qualified Homeowner shall learn, without limitation, to properly maintain the
Qualified Homeowner's Home and/or the Improvements to be constructed,
installed, performed and completed thereon.
7
4813-0902-9891.1
"Note" means and refers to the Promissory Note Secured by Deed of Trust in the
amount of the Loan made by the Agency to and for the benefit of the Qualified
Homeowner. The Note shall be executed by the Qualified Homeowner and the
obligations of the Note shall be secured by the Deed of Trust. The outstanding
principal balance of the Note shall accrue simple interest at the rate of three
percent (3%) per annum. No periodic payments of principal and interest, or of
interest-only shall be due and payable by the Qualified Homeowner to the Agency
during the term of the Note. The outstanding principal amount of the Note, all
accrued and unpaid interest and all other fees, charges and amounts due under the
Note, under the Deed of Trust and under the other Loan Documents (the "Loan
Payoff') shall be payable by the Qualified Homeowner to the Agency on the date
that: (i) the Qualified Homeowner is in default under the Loan Documents,
subject to any applicable cure period, (ii) the Qualified Homeowner refinances the
Loan, or (iii) on the date that the Qualified Homeowner sells, conveys or transfers
the Home to an unauthorized third person in violation of the Loan Documents;
provided, however, if the Qualified Homeowner remains the fee owner of the
Home for a period of ten (10) years from the date that the Deed of Trust is
recorded in the County Recorder's Office, the Loan shall be forgiven and
discharged by the Agency, the Agency shall record a reconveyance or release of
the Deed of Trust in the County Recorder's Office and the Qualified Homeowner
shall have no further duty or obligation to pay to the Agency the Loan Payoff.
The Note shall be substantially similar to the Note attached hereto and
incorporated herein by this reference as Exhibit" !..".
"Program" means and refers to the program created, administered and maintained
by or for the Agency in connection with the Loan, the disbursement by the
Agency to the Contractor of the Loan Funds to or for the benefit of each Qualified
Homeowner in accordance with this Agreement and the performance and
completion by the Contractor of the Services. Upon written notice from the
Agency, the Contractor shall offer the Program to Qualified Homeowners in the
specific Target Area or Target Areas as may be designated, in writing, by the
Agency to the Contractor from time to time during the term of this Agreement. In
the absence of specific direction from the Executive Director of the Agency, the
Contractor shall offer the Program on an as-needed, first-come, first-served basis,
to Qualified Homeowners throughout the City for the term of this Agreement.
However, in case of an emergency, of an urgent need Of of a life-threatening
situation, the Contractor may process a Loan Application ahead of other Loan
Applications subject to the approval by the Executive Director.
"Oualified Homeowner" means and refers to: (i) a person or household which
owns and occupies its Home as its principal residence within the City or within
the Target Area or the Target Areas of the City, as may be specifically designed,
in writing, from time to time by the Agency for at least twelve (12) continuous
months preceding the date of submission of its Loan Application to the
Contractor, (ii) has a personal or household income level, adjusted for family size,
8
4813-0902-989].1
during the twelve (12) months preceding the date of submission of its Loan
Application to the Contractor within the ranges of income for low-moderate
income households, adjusted for family size, as set forth in Exhibit "A", (iii) must
complete, execute and submit the Loan Application to the Contractor, (iv) must
agree to attend the Maintenance Class conducted by the Contractor, (v) must
agree to live in its Home, as its principal residence, for not less than ten (10) years
after the recordation of the Deed of Trust and the Maintenance Agreement
Covenant in the County Recorder's Office, (vi) must execute and acknowledge,
where appropriate, all Loan Documents, (vii) must agree to agree to maintain its
Home pursuant to the Maintenance Agreement Covenant for a period of ten (10)
years following the recordation of such Maintenance Agreement Covenant in the
County Recorder's Office, and (viii) the Qualified Homeowner must not have
received any grant or any loan trom the Agency for a period of ten (10) years
prior to the submission by the Qualified Homeowner to the Agency and/or to the
Contractor of the Loan Application. On a case-by-case basis, the Executive
Director of the Agency, in its sole and absolute discretion, may waive this one (1)
year residency requirement.
"Senior Deed of Trust" means and refers to the senior deed of trust executed and
acknowledged by the Qualified Homeowner. The Senior Deed of Trust secures
the obligations of the Senior Promissory Note and of the Senior Loan and
encumbers the Home.
"Senior Lender" means and refers to an institutional lender, including, without
limitation, any bank, savings bank, savings and loan association, insurance
company, credit union or other lender licensed to conduct business in the State of
California, approved by the Agency in its sole and absolute discretion and making
the Senior Loan to the Qualified Homeowner.
"Senior Loan" means and refers to the loan made by the Senior Lender to the
Qualified Homeowner. The Senior Loan is evidenced by the Senior Promissory
Note and is secured by the Senior Deed of Trust encumbering the Home owned
by the Qualified Homeowner.
"Senior Loan Documents" mean and refer to the Senior Promissory Note, the
Senior Deed of Trust and all other instruments, documents, agreements,
guarantees and/or certificates evidencing, securing, guaranteeing or relating to the
Senior Loan.
"Senior Promissory Note" means and refers to the Senior Promissory Note
executed by the Qualified Homeowner in favor of the Senior Lender. The Senior
Promissory Note is secured by the Senior Deed of Trust which Senior Deed of
Trust encumbers the Home owned by the Qualified Homeowner.
"Services" mean and refer, without limitation, to the Program ongmation, the
preparation, execution and delivery of the Loan Documents, the Loan Fund
9
disbursement control, related accounting, Work monitor (course of construction
builder contract) services and other services to be provided by the Contractor to or
for the benefit of the Agency in accordance with this Ah'feement. The various
elements of the Services are more fully set forth in the "Scope of Services"
attached hereto as Exhibit "C." For each year of the Agreement, the Contractor
will attempt to approve, complete, process and finalize up to ten (10) Loans to
Qualified Homeowners.
"Target Area" or "'Target Areas" mean and refer to the specific area, areas,
neighborhood or neighborhoods in the City in which the Agency has instructed
the Contractor to offer the Program to Qualified Homeowners to better maximize
the effectiveness of the Loan Funds, or in any other specific area, areas,
neighborhood or neighborhoods hereinafter created by the Agency and/or
throughout the City (excluding County territory), as amended from time to time
by the Agency in its sole and absolute discretion. Should the Agency request the
Contractor to offer the Program to a specific Target Area or to specific Target
Areas, the Agency shall consult with and provide in writing the Target Area or the
Target Areas to the Contractor. The Contractor shall then offer the Program to
Qualified Homeowners in the specific Target Area or Target Areas until the
Contractor is otherwise advised in writing from the Agency, as such Target Area
or Target Areas may be adjusted and amended from time by the Agency in its sole
and absolute discretion. In the absence of specific direction from the Executive
Director of the Agency, the Contractor shall offer the Program on an as-needed,
first-come, first-served basis, to Qualified Homeowners throughout the City.
However, in the case of an emergency, of an urgent need or of a life-threatening
situation, the Contractor may process a Loan Application ahead of other Loan
Applications subject to the approval of the Executive Director.
"Work" means and refers, without limitation, to the Improvements, or any part
thereof, to be constructed, installed, performed and/or completed by a state-
licensed General Contractor on or in connection with a Home pursuant to the
terms, covenants and conditions of the General Contractor Agreement. Only the
Improvements and/or the items of Work set forth in the General Contractor
Agreement shall be authorized for payment by the Contractor, up to the maximum
amount authorized under the terms of the Program for such Improvements, or any
part thereof. Any costs of Improvements and/or of Work in cxcess of the
maximum amount of the Program (which are not the fault of such General
Contractor) shall be paid for by the Qualified Homeowner unless approved in
writing by the Executive Director.
Section 2.
Contractor and the
Agreement.
PERFORMANCE BY CONTRACTOR AND BY AGENCY. The
Agency agree to perform the terms, covenants and conditions of this
Section 3. SCOPE OF SERVICES. The Contractor agrees to provide the Services
to the Agency as set forth herein, as described in the Scope of Services. Promptly following the
4813-0902-9891.\
10
date of approval of this Agreement by the governing board of the Agency, the Contractor,
without limitation, shall or will continue to:
(A) cause the Loan Dishursement Account to be established, or maintained, and the
general form of an FDIC - insured deposit account agreement acceptable to the Agency to
be fully executed by the Contractor, by the depository institution and by the Agency
within thirty (30) calendar days following the date of approval of this Agreement:
(B) continue to use the general form of the Loan Application in connection with an
application by a Qualified Homeowner for the approval by the Agency to the Qualified
Homeowner of the Loan under the Program in accordance with this Agreement. The
applicant for the Loan must submit to the Contractor federal and state income tax returns
filed by the applicant with the appropriate taxing authorities for the past two (2) years
which tax returns must be acceptable to the Contractor in its sole and absolute discretion;
(C) subject to the completion of the tasks described in Section 3(A) and in Section
3(B) above, continue the process of receiving and reviewing Loan Applications and
provide the Services as provided for in the Agreement. The Contractor shall offer the
Program to Qualified Homeowners in the Target Area or the Target Areas specifically
determined and designated by the Agency or, if no Target Area is or no Target Areas are
specifically determined and designated by the Agency, then on an as-needed, first-come,
first-served basis, to Qualified Homeowners throughout the City; provided, however, in
the case of an emergency, of an urgent need or of a life-threatening situation, the
Contractor may process a Loan Application ahead of other Loan Applications subject to
the approval of the Executive Director;
(D) transmit a copy of a completed set of the Loan Documents to the Executive
Director of the Agency, together with: (i) a recommendation from the Contractor to the
Agency to approve the Loan Application and the Loan to the Qualified Homeowner, and
(ii) a request from the Contractor to the Agency for a transfer of the Loan Funds by the
Agency for the account of the Qualified Homeowner. The Executive Director shall either
authorize the funding of such Loan or reject the request for funding on behal f of the
Agency within ten (10) business days of receipt from the Contractor. Any rejection of a
Loan Application shall be in writing and shall state the reasons for such action. Each
acceptance of a Loan Application by the Agency shall be evidenced by the signature of
the Executive Director of the Loan Documents, where designated. All Loan Documents
shall be executed, acknowledged, where designated, and completed by the Qualified
Homeowner and by the Contractor, and the disbursement of Loan Funds by the Agency
to or for the benefit of the Qualified Homeowner shall occur within sixty (60) calendar
days following the date of submission by the Contractor to the Executive Director of the
funding request, or the Loan Documents shall be of no further force or effect;
(E) no fees, charges or expenses shall be payable by any applicant to the Contractor
or to the Agency for a Loan, except from the Loan Funds, nor shall the Contractor charge
a Qualified Homeowner for any cost or service in connection with the origination or
subsequent administration of the Loan during the time the Improvements and/or the Work
4813-0902-989Ll
11
is constructed, installed, performed and/or completed at the Home, except for the
Maintenance Class fee, or as authorized under the Program by the Executive Director;
(F) instruct the Executive Director to transfer the Loan Funds for the account of each
Qualified Homeowner to the Loan Disbursement Account as set forth in Section 3(0),
above, upon confirmation by the Contractor that the Loan Documents for the Program are
executed and complete and that the Deed of Trust and the Maintenance Agreement
Covenant (and any other documents to be recorded in the County Recorder's Office) are
ready for recordation in the County Recorder's Office. The Contractor shall coordinate
the issuance of the policy of title insurance in favor of the Agency by the title insurance
company with the recordation of the Deed of Trust and of the Maintenance Agreement
Covenant;
(G) deliver a fully executed and acknowledged, where designated, original set of the
Loan Documents for each Loan (except for the Deed of Trust and for the Maintenance
Agreement Covenant which documents shall be recorded by the Contractor on behalf of
the Agency in the County Recorder's Office) to the Agency upon request of funding and
transfer of the Loan Funds for the account of the Qualified Homeowner to the Loan
Disbursement Account;
(H) verify that no Loan Funds are disbursed from the Loan Disbursement Account for
the account of a Qualified Homeowner except: (i) to pay a state-licensed General
Contractor and/or state-licensed subcontractor for the Improvements and/or for the Work
constructed, installed, performed and/or completed at the Home pursuant to the General
Contractor Agreement (less a ten percent (10%) retention pending completion of the
Improvements and/or of the Work and final executed written release of all mechanics and
materials liens from the General Contractor and/or from all subcontractors). No
disbursement of the Loan Funds from the Loan Disbursement Account shall be
authorized for any building materials or equipment items which are not physically
deli vered at the Home before the date of payment of such Loan Funds to the General
Contractor and/or to the subcontractor; or (ii) to pay a Loan title fee or cost amount
expressly authorized in writing by the Executive Director;
(I) prepare and maintain a Loan Funds disbursement ledger for all payments
authorized and made by the Contractor to the General Contractors and/or to the
subcontractors for the account and debit to each Qualified Homeowner under each Loan
made by the Agency to or for the benefit of the Qualified Homeowner in accordance with
this Agreement. Such ledger shall show each payment by date and reference the
particular Loan, the Loan Documents and the name of the Qualified Homeowner to
which it corresponds. Such ledger shall also include a monthly starting and ending
balance for the Loan Disbursement Account, a final reconciliation of the adjusted balance
of each Loan upon the completion of the Improvements and/or of the Work, and such
other accounting information as the Executive Director may request. A copy of such
ledger shall be submitted to the Executive Director each month with the first such
monthly submittal due on the first day of the next month following the date of the initial
4813-0902-9891. !
12
deposit of the Loan Funds by the Contractor and/or the Agency into the Loan
Disbursement Account;
(J) No Improvements and/or Work shall be authorized for payment by the Contractor
unless the Loan Documents are complete and the Contractor has received a fully
executed copy of the General Contractor Agreement by and between the General
Contractor and the Qualified Homeowner. Once the Improvements and/or the Work has
commenced on a particular Home, neither the Qualified Homeowner, the General
Contractor nor the subcontractor shall authorize an amendment or modification of such
contract to include any item of Work, which is not eligible for payment using the Loan
Funds under the terms and conditions of the Loan under the Program. Each such contract
by and between the General Contractor and the Qualified Homeowner, the General
Contractor and the subcontractor, and/or the subcontractor and the Qualified Homeowner
shall include a section, which recites the words of the first two (2) sentences of this
Section 3(J).
Section 4. TIME OF PERFORMANCE OF SERVICES. The Services to be
performed hereunder by the Contractor shall be undertaken and completed in such sequence as to
assure expeditious completion and to best carry out the purposes of the Program and this
Agreement. All Services required hereunder shall begin upon the execution of this Agreement.
Section 5. TERM OF AGREEMENT. This Agreement shall take effect upon the
approval by the governing board of the Agency and the complete execution by the parties. The
Agreement shall remain in effect through July I, 2010, subject to annual approval and
appropriation by the United States Department of Housing and Urban Development CHUD").
Section 6.
COMPENSATION PAYABLE BY AGENCY TO CONTRACTOR.
(A) The Agency shall annually compensate the Contractor for the performance of the
Services using the Low-Moderate Income Housing Funds in accordance with the following
schedule:
$50,000.00
Annual Program Administration Fee for
CONTRACTOR
$500,000.00
Single Family Residence Rehabilitation Loan Program
$550000.00
(B) From and after the Effective Date of this Agreement and for the remaining term of
this Agreement, the Program Administration Fee payable by the Agency to the Contractor as
compensation for the Services performed by the Contractor under this Agreement shall be paid
by the Agency directly to the Contractor, payable in twelve (12) equal monthly installments of
$4,167.00 during the Term of this Agreement, in the aggregate amount of $50,000.00. The
Contractor shall invoice the Agency monthly in equal installments of$4,167.00.
4813-0902-{jS91 ]
13
(C) Payment for each monthly installment in the amount of $4,167.00 for the
performance by the Contractor of the Services will be made by the Agency to the Contractor as
of the first day of each calendar month with the first such payment due on the first day of the
next calendar month following the date of the complete execution of the Agreement by the
parties.
Section 7. PERSONNEL OF CONTRACTOR. The Contractor represents that it
has, or will secure at its own expense, all personnel required to perform the Services. All of the
Services required hereunder will be performed by persons who are either employed by or under
the supervision and control of the Contractor, and all personnel engaged in the Services shall be
fully competent and qualified to perform such Services.
Section 8. INDEPENDENT CONTRACTOR. All acts of the Contractor and all
others acting on behalf of the Contractor relating to the performance of this Agreement, shall be
performed as independent contractors and not as agents, officers, or employees of the Agency.
The Contractor has no authority to bind or incur any obligation on behalf of the Agency. The
Contractor has no authority or responsibility to exercise any right or power vested in the Agency.
No agent, officer, or employee of the Agency shall be considered an agent or employee of the
Contractor. It is understood by both the Contractor and the Agency that this Agreement shall not
under any circumstance be construed or considered to create an employer-employee relationship
or a joint venture as between the Contractor and the Agency. The Contractor is and at all times
during the Term of this Agreement shall represent and conduct itself as an independent
contractor and not as an agent or employee of the Agency. The Contractor shall be responsible
to the Agency only for the requirements and results specified in this Agreement, and except as
expressly provided in this Agreement, shall not be subject to control by the Agency with respect
to the physical action or activities of the Contractor in fulfillment of this Agreement. The
Contractor has control over the manner and means of performing the Services under this
Agreement so long as consistent with the requirements of the Program. The Contractor is
permitted to provide services to others during the same period Services are provided to the
Agency under this Agreement. If necessary, the Contractor has the responsibility for employing
other persons or firms to assist the Contractor in fulfilling the terms and obligations under this
Agreement. If in the performance of this Agreement any third persons are retained as
subcontractors by the Contractor, such persons shall be entirely and exclusively under the
direction, supervision, and control of the Contractor. All terms of employment including hours,
wages, working conditions, discipline, hiring, and discharging or any other term of employment
or requirements of law shall be determined by the Contractor. The Contractor hereby agrees to
indemnify, defend (if requested by Agency), protect and hold the Agency harmless /Tom any and
all claims that may be made against the Agency or based upon any contention by any employee
of the Contractor or by any third party that an employer-employee relationship or joint venture
exists between any person or entity and the Agency, by reason of the performance of any of the
Services under this Agreement.
Section 9. PAYMENT OF AND TRANSFER OF LOAN FUNDS TO LOAN
DISBURSEMENT ACCOUNT. The Agency shall promptly honor each request by the
Contractor for the Agency to transfer Loan Funds to the Contractor who will in turn deposit the
Loan Funds to the Loan Disbursement Account to fund each approved Loan as submitted by the
4813-0902-9891.]
14
Contractor to the Agency under Section 3(0). Within sixty (60) calendar days following receipt
of each request for remittance of the Loan Funds, the Agency shall transfer by bank check to the
Contractor such Loan Funds to use as provided herein.
Section 10. COMMERCIAL GENERAL LIABILITY INSURANCE.
AUTOMOBILE INSURANCE. WORKERS' COMPENSATION INSURANCE.
EMPLOYER'S LIABILITY INSURANCE. ERRORS AND OMISSIONS AND
PROFESSIONAL LIABILITY INSURANCE.
(A) The Contractor shall obtain and keep in force during the term of this Agreement,
at its sole cost and expense, the following insurance policies: (i) a commercial general liability
policy of insurance with coverage at least as broad as "Insurance Services Office Commercial
General Liability Form (GOOOI)", in the amount of One Million Dollars ($1,000,000) combined
single limit per occurrence, naming the Agency and the City and the elected officials, officers,
employees, attomeys and agents of each of them as additional insureds (collectively, the
"Additional Insureds") with said insurance covering comprehensive general liability including,
but not limited to, contractual liability, assumed contractual liability under this Agreement, acts
of subcontractors, premises-operations, explosion, collapse and underground hazards, if
applicable, broad form property damage, and personal injury including libel, slander and false
arrest, (ii) comprehensive automobile liability insurance covering owned, non-owned and hired
vehicles by or for the Contractor, combined single limit in the amount of One Million Dollars
($1,000,000) per occurrence, naming the Additional Insureds as additional insureds on each
automobile insurance policy, (iii) workers' compensation insurance in such insurance coverage
amounts as statutorily required, or similar insurance in form and amounts required by law, and
employer's liability insurance, combined single limit in the amount of One Million Dollars
($1,000,000), and (iv) errors and omissions and professional liability, combined single limit in
the amount of One Million Dollars ($1,000,000) per occurrence.
(B) Any and all insurance policies required hereunder shall be obtained from
insurance companies admitted in the State of California and rated at least A: XII in the most
current Best's Key Rating Insurance Guide. In no event shall the Contractor be permitted or
entitled to assign to any third party rights of action which the Contractor may have against the
Agency. All said insurance policies shall provide that they may not be canceled unless the
Agency and the City receive written notice of cancellation at least thirty (30) calendar days prior
to the effective date of cancellation. Any and all insurance obtained by the Contractor shall be
primary to and shall not be contributing with any insurance carried by the Agency or by the City
whose insurance shall be considered excess insurance only. Any insurance which the Agency
and/or City may otherwise carry, including self insurance, for all purposes of this Agreement
shall be separate and apart from the requirements of this Agreement. Legal counsel for the
Agency must approve each insurance policy required in Section 10(A) of this Agreement. The
Contractor waives subrogation and agrees that the Contractor, the Agency and the City are co-
insured. The insurer shall have no right of subrogation against the Agency, against the City or
against any of the other Additional Insureds. The Additional Insureds shall be named as
additional insureds on cach insurance policy.
48]3-0902-989] .1
15
(C) All insurance which the Contractor shall carry or maintain pursuant to this Section
10 shall be in such form, for such amounts, for such periods of time as the Agency may require
or approve.
(D) The Contractor shall deliver or cause to be delivered to the Agency concurrently
upon the execution of this Agreement an endorsement of the insurance policies required in this
Section lO(A) of this Agreement evidencing the existence of the insurance coverage required by
the Agency under Section lO(A) of this Agreement and shall also deliver, no later than thirty
(30) calendar days prior to the expiration of any insurance policy, a certificate of insurance
evidencing each renewal policy covering the same risks.
Section 11. INDEMNIFICATION.
(A) The Contractor agrees to indemnify, defend with legal counsel reasonably
acceptable to the Agency, protect and hold the City and the Agency, and their respective elected
officials, directors, officers, members, managers, consultants, contractors, employees, agents and
attorneys, and the successors and assigns of each of them (singularly and collectively, the
"Indemnified Parties" which defined term shall also includes the City and the Agency), harmless
from and against all actions, causes of action, claims, demands, liabilities, damages, losses,
liabilities, obligations, judgments, suits, costs, expenses and fees (including, without limitation,
reasonable attorneys' fees, court costs and expert fees of any nature whatsoever), now or
hereafter arising from or related to: (i) any act or omission of the Contractor and/or of any of the
Contractor's directors, officers, members, managers, consultants, contractors, subcontractors,
materialmen, laborers, any other person or entity furnishing or supplying work, services, goods,
or supplies in connection with the performance of this Agreement, employees and agents, and the
successors and/or assigns of each of them (singularly and collectively, the "Indemnifying
Parties" which defined term shall also include the Contractor), in performing, or failing to
perform, its obligations hereunder, (ii) any default by the Contractor under this Agreement,
subject to any applicable cure period, (iii) any violation by any of the Indemnifying Parties of
any Laws, (iv) any warranty or representation made by the Contractor to the Agency in this
Agreement that is or becomes false and untrue, (v) death, bodily injury and/or personal injury to
any person, (vi) any destruction, loss or damage to real property or personal property, (vii) the
presence of any Hazardous Substances at, on, in, above, under or about any Horne owned by a
Qualified Homeowner resulting, directly or indirectly, from the acts or omissions of any
Indemnifying Parties, and/or (viii) the aggravation of any environmental condition by any
Indemnifying Parties at, on, in, above, under or about any Home owned by a Qualified
Homeowner. Without limiting the Contractor's indemnification of the Indemnified Parties, the
Contractor shall provide and maintain, at its sole cost and expense during the term of this
Agreement, the insurance described in Section lO(A) of this Agreement. Such insurance shall be
provided by insurer(s) satisfactory to the Agency and evidence of such insurance satisfactory to
the Agency shall be delivered to the Executive Director no later than the effective date of this
Agreement.
(B) The Agency shall indemnify, defend (if requested by the Contractor) and hold
harmless the Contractor, its agents, officers, and employees, from all claims, loss, demands and
liability for damages for personal injury, bodily injury or property damage suffered by reason of
4813-0902-989[.1
16
any act or omission of the Agency or any of its officers or employees or agents under this
Agreement except where such action or omission giving rise to such a claim is caused by or is
the result of an action, omission or request of the Contractor and/or of any of the other
Indemnifying Parties, or is alleged to arise out of the execution of this Agreement. The
provisions of Section 11(A) and Section II(B) shall survive the execution, delivery,
performance, expiration or early termination ofthis Agreement.
Section 12. DEFAULTS AND BREACH - GENERAL. The failure or delay by
either party to perform any material term or provision ofthis Agreement shall constitute a default
hereunder; provided, however, that if the party who is otherwise claimed to be in default by the
other party commences to cure, correct or remedy the alleged default within thirty (30) calendar
days after receipt of written notice specifying such default and shall diligently complete such
cure, correction or remedy, such party shall not be deemed to be in default hereunder. A default
shall also occur under this Agreement whenever a representation and/or warranty made in this
Agreement is or becomes false or untrue. A default shall also occur under this Agreement
whenever a party files, or has filed against it, a petition in bankruptcy, is or becomes insolvent, is
unable to pay its debts as they mature, assigns its assets for the benefit of creditors, or a receiver,
trustee or custodian is appointed by a court to exercise control over all or substantially all of the
assets of the party and such receiver, trustee or custodian is not discharged by the court within
sixty (60) calendar days after said appointment date. The party which may claim that a default
has occurred shall give written notice of default to the party in default specifying the alleged
default. Delay in giving such notice shall not constitute a waiver of any default nor shall it
change the time of default; provided, however, the injured party shall have no right to exercise
any remedy for a default hereunder without delivering the written default notice as specified
herein. Any failure or delay by a party in asserting any of its rights and remedies as to any
default shall not operate as a waiver of any default or of any rights or remedies associated with a
default, and the rights and remedies of the parties are cumulative and the exercise by either party
of one or more of such rights or remedies shall not preclude the exercise by it, at the same or
different times, of any other rights or remedies for the same default or any other default by the
other party. In the event that a default of either party may remain uncured for more than thirty
(30) calendar days following written notice, as provided above, a "breach" shall be deemed to
have occurred. In the event of a breach, the party who is not in default shall be entitled to
terminate this Agreement and seek any appropriate remedy or damages by initiating legal
proceedings. If any action or proceeding is brought to enforce the terms hereof or declare rights
hereunder, it shall be brought in the Superior Court of the County of San Bernardino, San
Bernardino District, State of California. The governing law to be applied in any such action or
proceeding shall be the law of the State of California. The prevailing party in any such legal
proceedings shall be entitled to recover as an element of its costs of bringing such suit, and not as
part of its damages, its reasonable attorneys' fees, court costs, expert witness fees and consultant
fees and costs. The costs, salary and expenses of the City Attorney and members of his office in
such action or proceeding on behalf of the Agency shall be considered as "attorneys' fees" for
purposes of this Section.
Section 13. NONDISCRIMINATION. During the Contractor's performance of the
Services, the Contractor shall not discriminate on the grounds of race, religion, creed, color,
national origin, age, ancestry, physical handicap, medical condition, marital status, sex, or sexual
4!;;13-0902-9891.\
17
orientation in the performance of the Services, including, without limitation, in the selection and
retention of employees, General Contractors and subcontractors and the procurement of materials
and equipment, except as provided in Section 12940 of the California Government Code.
Section 14. CONFLICT OF INTEREST. The Contractor warrants, by execution of
this Agreement, that it has no interest, present or contemplated, in the Program or in any Home
benefited thereby or Work performed on any Home using the Loan and the Loan Funds. The
Contractor further warrants that it owns or possesses no interest in real property, business
interests or owner of income (other than such amounts of compensation payable by the Agency
to the Contractor for the Services under this Agreement) that will be affected by the Program or,
alternatively, if such interest exists or arises the Contractor will promptly file with the Agency an
affidavit disclosing any such interest.
Section 15. AMENDMENTS. All amendments to this Agreement shall be subject to
the approval of both parties in the sole discretion of each of them, mutual and in writing. The
Executive Director of the Agency is authorized to make non-substantive changes, clarifications,
corrections to the Agreement, including budget line item adjustments, provided such actions are
approved by legal counsel for the Agency and do not increase the Agency's monetary annual
appropriation to the Contractor as approved by the governing board of the Agency.
Section 16. TERMINATION.
(A) This Agreement may be terminated for any reason by either party who is not then
in default upon ten (10) calendar days prior written notice to the other party. In such event, the
Contractor shall be entitled to receive compensation for Services pro-rated through the date of
such termination, provided that the Services have been rendered.
(B) In the event of a termination of the Agreement as a result of a breach, the rights
and duties of the parties shall be as set forth in Section 12.
(C) In the event of any termination of this Agreement, the Contractor shall promptly
return all Loan Funds that have been disbursed by the Agency to the Contractor with the
exception of any Loan Funds that have been properly disbursed by the Contractor to or for the
benefit of one or more Qualified Homeowners under this Agreement, without charge or expense
to the Agency.
Section 17. ASSIGNMENT. It is mutually understood and agreed that this
Agreement shall be binding upon the Agency and its successors and assigns and upon the
Contractor and its successors and assigns. The Agency may assign this Agreement, without
obtaining the prior consent or approval of the Contractor. The Contractor may not assign this
Agreement without obtaining the prior written consent of the Agency, which written consent
may be given or withheld by the Agency in its sole and absolute discretion. Any assignment or
attempt to assign this Agreement by the Contractor shall be void.
Section 18. NOTICES. Communications, notices, bills, invoices or reports required
by this Agreement shall be in writing and shall be deemed to have been given when actually
4813-0902-98911
18
delivered, if given by hand delivery or transmitted by overnight courier service, or if mailed,
three (3) business days after being deposited in the United States mail, postage prepaid, to the
address noted below:
A2enCY
Economic Development Agency
of the City of San Bernardino
Attention: Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 92401
Phone: (909) 663-1044
Fax: (909) 888-9413
Contractor
Neighborhood Housing Services of
the Inland Empire, Inc.
Attention: Executive Director
1390 North "D" Street
San Bernardino, California 92405
Phone: (909) 884-6891
Fax: (909) 889-4085
Either party may change its address for receipt of written notice by notifYing the other
party in writing of a new address for delivering notice to such party.
Section 19. REPRESENTATION AND WARRANTY OF CONTRACTOR. The
Contractor hereby represents and warrants to the Agency as follows:
(A) The Contractor is a California nonprofit corporation duly organized, existing, and
authorized to transact business in California;
(B) the corporate charter and by-laws of the Contractor authorize the Contractor to
provide the Services to the Agency and the governing board and membership of the Contractor
have previously taken all action necessary to authorize the execution of this Agreement by the
Contractor;
(C) the Contractor is qualified to perform the Services and shall timely perform and
complete the Services in a professional manner.
Section 20. CONDITIONS PRECEDENT. The validity and enforcement of this
Agreement is subject to the execution and delivery by the Agency and by the Contractor of the
following Agreements: (i) the Beautification Grant Program Agreement, (ii) the Mobile Home
Grant Program Agreement, and (iii) the First Amendment to the Homebuyer Education Program
Agreement.
Section 21. LOAN FUNDS AND LOAN DOCUMENTS ARE THE PROPERTY
OF THE AGENCY. The Loan Documents for each Loan are the property and asset of the
Agency. Tbe Contractor has no property interest in any such Loan Documents and the
Contractor shall not transfer, assign or pledge as collateral or claim any other security interest in
any such Loan Documents. All of the Loan Documents are the property of the Agency, and the
Contractor shall maintain all such Loan Documents in its possession as confidential consumer
business records of the Qualified Homeowner. All Loan Funds disbursed by the Agency to the
Contractor for the benefit of a Qualified Homeowner are the property of the Agency until paid by
the Contractor to the General Contractor upon the completion of the Work at the Home for the
account of the Qualified Homeowner under the applicable Loan Documents.
4813-0902-989].1
19
Section 22. NON-ELIGIBILITY OF HOMEOWNER. Once the Agency has
approved the Loan Application for the Qualified Homeowner and has disbursed the Loan Funds
to the Contractor for the benefit of the Qualified Homeowner under this Agreement, the
Qualified Homeowner now or hereafter shan have no right to apply for and to receive any other
grant or loan being provided by the Agency to the general public under any grant or loan
program, including, without limitation, any grant being offered by the Agency under the Single
Family Beautification Grant Program or under the Mobile Home Grant Program or any loan
being offered by the Agency to the general public under the Single Family Rehabilitation Loan
Program until: (i) ten (10) years after the date that the Agency has paid the last installment of the
Loan Funds to the Contractor for the benefit of the Qualified Homeowner under this Agreement,
and (ii) the Qualified Homeowner has paid in full the Loan to the Agency in accordance with the
Loan Documents or the Agency has discharged and forgiven the Loan by the Qualified
Homeowner pursuant to the Loan Documents.
Section 23. GENERAL PROVISIONS. This Agreement constitutes the sole
agreement between the parties. All prior conversations, agreements or representations relating
hereto are integrated in this Agreement. No oral agreement, representation or warranty shall be
binding upon the parties. If any provision of this Agreement shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining portions of this
Agreement shan not in any way be affected or impaired thereby. Failure of any party to enforce
any provision of this Agreement shan not constitute a waiver of the right to compel enforcement
of the same provision or any remaining provisions of this Agreement. Headings at the beginning
of each section or subsection are solely for the convenience of the parties and are not a part of
this Agreement. Whenever required by the context of this Agreement, the singular shall include
the plural and the masculine shall include the feminine and vice versa. This Agreement shan not
be construed as if it had been prepared by one of the parties, but rather as if an parties had
prepared the same. Unless otherwise indicated, an references to sections are to this Agreement.
An exhibits referred to in this Agreement are attached hereto and incorporated herein by this
reference. If the date on which any action is required to be performed under the terms of this
Agreement is not a business day, the action shall be taken on the next succeeding business day.
This Agreement may be executed in one or more counterparts each of which shall be an original
but all of which together shall constitute but one original Agreement. This Agreement may be
executed by facsimile signatures, and each facsimile counterpart when taken together shall be
deemed an original Agreement.
4813-0902-9891.1
20
IN WITNESS WHEREOF, the Contractor and the Agency have caused this Agreement
to be duly executed on the date first above written.
AGENCY
Dated:
Redevelopment Agency ofthe
City of San Bernardino,
a public body, corporate and politic
Z..~
By:
Emil A. Marzullo, Int~ . ~cutive Director
Approved as to Form and Content:
C/)~J~
Agency Co el
CONTRACTOR
Neighborhood Housing Services
of the Inland Empire, Inc.,
a California nonprofit corporation
Date:
G .~ ;Z 1-c /
~ell1;a-;;::'L
Title: Executive Director
By:
Name:
Title:
Date:
48]3-0902-9891.1
21
EXHIBIT "A"
2009 Income Limits
4813-0402-9891.1
22
EXHIBIT "B"
48\3-0902-9891.1
23
EXHIBIT "C"
SCOPE OF SERVICES
(Description of Program)
A. Contractor's Administration Annual Fee
The Agency shall annually compensate the Contractor the total sum of Fifty Thousand Dollars
($50,000.00) for the administration and the implementation of the Program herein and for the
Services rendered under this Agreement. subject to the annual approval and appropriation by the
United States Department of Housing and Urban Development ("HUD"). The Contractor shall
invoice the Agency monthly in equal installments of Four Thousand One Hundred Sixty-Seven
Dollars ($4,167.00), in the aggregate annual amount of$50,OOO.00).
B. Sinl!le Familv Residence Rehabilitation Loan Prol!ram (the "Prol!ram")
($550.000.00)
The Contractor shall accept the Loan Applications from respective Qualified Homeowner
applicants to determine income and improvement eligibility (see Exhibit "A" to this Agreement),
to determine equity in the Home and to verify ownership and length of ownership by obtaining a
preliminary title report or other pertinent documentation from a reputable title company. The
Contractor shall offer the Program to Qualified Homeowners in the Target Area or in the Target
Areas specifically determined and designated by the Agency or, if no Target Area is or no Target
Areas are specifically determined and designated by the Agency, then on an as needed, first-
come, first-served basis, to Qualified Homeowners throughout the City of San Bernardino.
However, in the case of an emergency, of an urgent need or of a life-threatening situation, the
Contractor may process a Loan Application ahead of other Loan Applications subject to the
approval by the Executive Director. The Improvements allowed under the Program are
described in Section "C" below of this Scope of Services.
C. Elil!ible Improvements Permitted under the Prol!ram
The following types of Improvements are permitted in connection with the Program: (i) roof
repairs and fe-roof or overlay, (ii) exterior and interior painting, including, without limitation,
lead testing, (iii) drought tolerant landscaping (irrigation system, with hydro seeds, sod or
artificial turf), (iv) window replacement, (v) carpet replacement andlor finished flooring
replacement, (vi) HV AC system, (vii) electrical work, (viii) Sewer Repairs, (ix) termite repairs,
(x) exterior concrete hardscape such as sidewalks, driveways, curbs, gutters, hand railings or
ramps, (xi) door or window screens repairs or replacements, (xii) tub, shower, toilet repairs or
replacements, (xiii) foundation or structural repairs, (xiv) fencing or (xv) installation of
alternative energy sources, including, without limitation, solar panels. The Improvements must
relate to health and safety code violations (i.e., blown sewer lines, septic tank destruction, etc.).
In connection with each Loan Application for Sewer Repairs, the Agency shall have the right to
determine whether or not such Sewer Repairs shall be made from funds disbursed by the Agency
4XI3-0902-9891,1
24
from Loan Funds under the Program or from grant funds disbursed by the Agency to an applicant
under the Single Family Beautification Grant Program, or under any other then existing grant
program. Should the Agency determine that the Sewer Repairs will need to be disbursed by the
Agency from grant funds pursuant to the Single Family Beautification Grant Program, or any
other then existing grant program, the Contractor shall advise the applicant, in writing, that the
applicant will need to prepare, to execute and to submit a new grant application to the Contractor
under the Single Family Beautification Grant Program, or under any other then existing grant
program, which grant application, without limitation, shall request the Agency to make a grant to
the applicant to permit the applicant to make and to complete the Sewer Repairs.
The maximum amount of the Loan permitted under the Program is the Loan Amount per Home,
without the prior written approval of the Executive Director.
D. Applicant EIil1.ibilitv Requirements for the Prol1.ram
I. Qualified Homeowner must be an owner and occupant of the Home, as its principal
residence, for a minimum period of one (I) year; on a case-by-case basis, and depending on the
circumstances, this one (I) year requirement may be waived by the Executive Director or hislher
designee; the Contractor shall obtain evidence of ownership and length of ownership and
residency.
2. Qualified Homeowner must execute and complete a Loan Application and must deliver
and submit the Loan Application, as fully executed and completed, to the Contractor. The
Contractor shall receive, review, verify and approve or reject the Loan Application. If the Loan
Application is not acceptable to the Contractor, the Contractor shall notify the applicant in
writing within ten (10) business days from the receipt by the Contractor of the Loan Application
and the Contractor shall provide the applicant with the reasons for the rejection by the
Contractor.
3. Qualified Homeowner must have a personal or household income level, adjusted for
family size, during the twelve (12) months preceding the date of submission of the Loan
Application to the Contractor within the ranges of income for low-moderate income households,
adjusted for family size, as set forth in Exhibit "A" to this A!,'reement.
4. Qualified Homeowner must agree to: (i) attend a Maintenance Class conducted by the
Contractor, (ii) live in the Qualified Homeowner's Home, as its principal residence, for not less
than ten (10) years after the recordation of the Maintenance Agreement Covenant in the County
Recorder's Office, and (iii) to maintain the Home in accordance with the Maintenance
Agreement Covenant for not less than ten (10) years after the recordation of the Maintenance
Agreement Covenant in the County Recorder's Office.
5. Qualified Homeowner must execute and acknowledge, where appropriate, the Loan
Documents. The Qualified Homeowner, without limitation, shall execute and notarize the Deed
of Trust and the Maintenance Agreement Covenant and the Contractor or the Agency shall
record, or shall cause the recordation of, the Deed of Trust and the Maintenance Agreement
Covenant in the County Recorder's Office.
4813-0902-9X91.\
25
6. Qualified Homeowner must not have received any grant or loan from the Agency for a
period of ten (10) years prior to the submission by the Qualified Homeowner to the Contractor
and/or to the Agency of the Loan Application.
E. Guidelines
The Contractor shall conduct, administer, implement, comply with and perform the following
guidelines in connection with the Program:
1. The Contractor shall administer and implement the Program herein and shall utilize the
applicable and pertinent sections of the Agency's Loan Policies and Procedures Manual for
guidance on processing and packaging all Loans under this Agreement, if applicable, under the
direction of the Executive Director.
2. The Contractor shall accept the Loan Applications from respective Qualified Homeowner
applicants to determine income and improvement eligibility, to determine equity in the Home,
and to verify ownership and length of ownership by obtaining a preliminary title report or other
pertinent documentation from a reputable title company. The Contractor shall offer the Program
to Qualified Homeowners in the Target Area or the Target Areas specifically determined and
designated by the Agency or, if no Target Area or no Target Areas are specifically determined
and designated by the Agency, then on an as needed, first-come, first-served basis, to Qualified
Homeowners throughout the City of San Bernardino. However, in the ease of an emergency, of
an urgent need or of a life-threatening situation, the Contractor may process a Loan Application
on an urgent basis ahead of other Loan Applications subject to the approval of the Executive
Director.
3. The Contractor shall inspect eligible Homes and properties to determine the type of
health and safety and code violation repair work needed, including asbestos and lead-based paint
removal, the age and overall condition of the Home and to ensure that all Homes repaired or
improved under the Program when completed are aesthetically pleasing and in compliance with
all Laws.
4. The Contractor shall prepare and complete Work write-ups, cost estimates, and bid
packages for the Improvements to be constructed, installed, performed and completed for each
Qualified Homeowner's Home.
5. The Contractor shall ensure that all Improvements and/or Work constructed, installed,
performed and/or completed in connection with the Qualified Homeowner's Home shall be
constructed, installed, performed and completed by pre-qualified State licensed General
Contractors and/or State licensed subcontractors. The Contractor shall also require that each
General Contractor and/or subcontractor constructing, installing, performing and/or completing
the Improvements and/or the Work in connection with the Qualified Homeowner's Home under
the Program shall possess a current business license in the City and shall possess a current
license with the State of California Contractor's License Board. The Contractor shall be
required, whenever feasible, to obtain a minimum of three (3) bids from General Contractors for
4813-0902-9891 ]
26
all Improvements and/or for all Work to be constructed, installed, performed and/or completed in
connection with the Qualified Homeowner's Home. All bids shall be made available by the
Contractor to the Qualified Homeowner for review. All Improvements and/or Work constructed,
installed, performed and/or completed by General Contractors and/or by subcontractors in
connection with the Qualified Homeowner's Home shall be approved and authorized by the
Qualified Homeowner, and shall be completed within a specified timeframe acceptable to the
Qualified Homeowner and the General Contractors and/or the subcontractors.
6. The Contractor shall solicit bids for the construction, installation, performance and/or the
completion of the Improvements and/or of the Work in connection with the Qualified
Homeowner's Home from a list of pre-approved General Contractors. The Contractor shall
assist the Qualified Homeowners with the selection of a General Contractor, and shall assist the
Qualified Homeowner in connection with the execution of the General Contractor Agreement,
including, without limitation, a determination as to the scope of the Improvements and/or of the
scope of Work to be constructed, installed, performed and/or completed by the General
Contractor, any schedule of performance, other schedules, conduct pre-construction and walk-
through conferences.
7. Prior to the execution of the General Contractor Agreement and prior to any funding by
the Contractor of any Loan Funds to the General Contractor for the proposed Improvements
and/or Work to be constructed, installed, performed and/or completed, the Contractor and the
members of the Agency application review committee (the "Application Review Committee")
appointed and assigned by the Agency to approve, administer and oversee the construction, the
installation, the performance and/or the completion of the Improvements and/or of the Work
shall meet on one or more occasions to discuss the Improvements and/or the Work to be
constructed, installed, performed and/or completed in connection with the Qualified
Homeowner's Home and the methodology used or to be used to identify, quantify and assist the
Qualified Homeowner.
8. The Contractor and the Qualified Homeowner must review, approve, execute and
acknowledge, where designated, the Loan Documents. The Loan Documents shall include,
without limitation, the following: (i) the Note, which shall be executed by the Qualified
Homeowner in favor of the Agency and (ii) the Deed of Trust and the Maintenance Agreement
Covenant which Deed of Trust and Maintenance Agreement Covenant must be executed and
acknowledged, where designated, by the Agency and by the Qualified Homeowner and each
must be recorded by the Contractor or by the Agency in the County Recorder's Office. The
General Contractor and/or any subcontractor cannot commence the construction, the installation,
the performance and/or the completion of the Improvements and/or of the Work in connection
with a Qualified Homeowner's Home until: (i) the Loan Documents have been executed and
acknowledged, where appropriate, by the Agency and by the Qualified Homeowner, and (ii) all
recordable instruments, documents and/or agreements in connection with the Loan, including,
without limitation, the Deed of Trust and the Maintenance Agreement Covenant have been
recorded by or for the Contractor or the Agency in the County Recorder's Office.
9. The General Contractor shall obtain one or more permits as required by applicable Laws
to construct, install, perform and/or complete the Improvements and/or the Work at the Qualified
4813-0902-9X91.1
27
Homeowner's Home. At the time that the Contractor submits an invoice to the Agency for
payment of all or a portion of the Loan Funds in connection with the Loan made by the Agency
to the Qualified Homeowner, the Contractor shall provide the Agency with a copy of each permit
that is or will be required to construct, to install, to perform and/or to complete the Improvements
and/or the Work in connection with the Qualified Homeowner's Home. The Agency shall have
no obligation to pay any invoice submitted by the Contractor to the Qualified Homeowner until
the Agency has received and approved each permit issued for the Improvements and/or for the
Work completed by the General Contactor and/or by the subcontractor and identified in the
lnVOlce.
10. The Contractor shall inspect and monitor the Improvements and/or the Work while in
progress and shall supervise the payment invoice procedures to ensure that all General
Contractors and subcontractors are meeting obligations and that progress payments and
retentions are paid in a timely manner.
11. The Contractor shall receive and collect from the General Contractors and/or from the
subcontractors an executed lien release under one of the following lien releases, as appropriate:
(i) an unconditional waiver and release upon progress payment, or (ii) an unconditional waiver
and release upon final payment. The Contractor shall not make the final payment of the
remaining Loan Funds to any General Contractor until the General Contractor and/or all
subcontractors have executed and the Contractor has received the conditional waiver and release
upon final payment or the unconditional waiver and release upon final payment.
12. The Contractor shall coordinate final inspection and payment of the General Contractor
Agreement retention with the Qualified Homeowner, with the General Contractor and with the
Agency. The contract retention shall not be paid by the Contractor to the General Contractors
and/or to the subcontractors until all time periods for filing liens have expired and no liens have
been filed under applicable Laws.
13. Prior to the payment by the Contractor of the Loan Funds, or any portion thereof, to the
General Contractor, for the construction, for the installation, for the performance and/or for the
completion of the Improvements and/or of the Work in connection with a Qualified
Homeowner's Home, the Contractor shall notify the Agency that the Contractor has received an
invoice for payment. Within ten (10) business days from receipt by the Contractor of the
invoice, the Contractor and the Agency shan inspect and approve the Improvements and/or the
Work identified in the invoice and constructed, installed, performed and/or completed by the
General Contractor and/or by any subcontractor. The Contractor shall not pay any such invoice
for the construction, installation, performance and/or completion of the Improvements and/or of
the Work until the Contractor and the Agency have inspected and approved, in writing, the
Improvements and/or the Work constructed, installed, performed and/or completed by the
General Contractor and/or by any subcontractors. The Agency reserves the right to approve
payment of an invoice in circumstances when no physical inspection is needed as determined by
the Agency in its sole and absolute discretion (i.e., fumigation for termites).
14. The Contractor shall maintain accurate records for inspection by the Agency concerning
income and program occupancy of all persons obtaining assistance from the Contractor pursuant
4813-0902-9!l9! I
28
to this Agreement including, but not limited to, the Loan Application and the other Loan
Documents, proof of ownership, income verification, comparables or appraisals and/or Work
write-ups. The original Loan Documents shall be executed and acknowledged, where
appropriate, by the Agency and by the Qualified Homeowner, shall be for the benefit of the
Agency and shall be transmitted by the Contractor to Agency in connection with each Loan
made by the Agency to the Qualified Homeowner.
15. The Contractor shall also provide quarterly reports to the Agency, or as otherwise
required by the Agency, upon the request of the Executive Director to the Contractor.
16. From time to time, the Agency and the Contractor shall coordinate inspection of the
Improvements and/or of the Work at the Qualified Homeowner's Home to ensure that the
Improvements and/or the Work are performed, installed, constructed and completed in a good
workmanlike manner and in accordance with all applicable Laws.
17. The Contractor shall provide any and all services required by the Executive Director or
his/her designee, in order to effectively implement and complete the Services under this
Agreement.
18. Prior to the disbursement by the Agency of the Loan Funds, or any portion thereof, to, or
for the benefit of, the Qualified Homeowner pursuant to the Loan that has been awarded by the
Agency to the Qualified Homeowner, the Contractor must fully comply with, verify and confirm,
to the satisfaction of the Agency, that all tasks, matters, items, events, and conditions listed on
the checklist (the "Checklist") have been fully performed and satisfied, unless specifically
waived in writing by the Agency in connection with such Loan. The Checklist shall not be
interpreted to limit or to restrict the Agreement, in any manner whatsoever. The Checklist is
attached hereto and incorporated herein by this reference as Exhibit "D".
41)]3-0902-9891.1
29
SFR Rehabilitation Loan
Exhibit "A"
2009 Income Limits
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SFR Rehabilitation Loan
Exhibit "B"
Deed of Trust
Recording Requested By:
When Recorded Mail To:
REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
201 N "E" STREET, SUITE 301
SAN BERNARDINO, CA 92401-1507
ATTN: HOUSING & REDEVELOPMENT DEPT
DEED OF TRUST WITH ASSIGNMENTS OF RENTS
THIS DEED OF TRUST, made, <<Date>> between, <<PirmarvsFirstName>>
<<PirmarvsLastName>>, and <<JointFirstName)) <<JointLastName)) herein called TRUSTOR,
whose address is<<Address1 )), <<City>>, "State>> "PostaICode>>, in wrncfi First American Title,
herein called TRUSTEE, and the Redevelopment Agency of the City of San Bernardino, a
public body, corporate and politic, herein called BENEFICIARY, Trustor irrevocabiy grants,
transfers and assigns to Trustee in Trust, with Power of Saie that property in City of San
Bernardino, County of San Bernardino, State of California, described as:
<<LotDiscribtion>>. The legal description of the property is attached hereto and incorporated
herein by this reference as Exhibit "A".
Together with the rents, issues and profits thereof, SUBJECT, HOWEVER, to the right, power
and authority given to and conferred upon Beneficiary to collect and apply such rents, issues
and profits.
For the Purpose of Securing: 1. Payment nfthe sum nf $ <<Anmunb> with interest thereon
according to the terms of a promissory note or notes of even date herewith made by Trustor,
payable to order of the Beneficiary, and extensions or renewals thereof (singularly and
collectively, the "Note"); 2. The Performance of each agreement of Trustor incorporated by
reference or contained herein or reciting it is so secured, including without limitation the
Affordable Housing Covenants Agreement (the "Affordable Housing Covenants Agreement"), of
even date herewith, by and between the Trustor and the Beneficiary which Affordable Housing
Covenants Agreement is attached hereto and incorporated herein by this reference as Exhibit
"B" and shall be recorded by the Beneficiary in the county recorder's office for the County of San
Bernardino, State of California; 3. Payment of additional sums and interest thereon which may
hereafter be loaned to Trustor, or his or her successors or assigns, when evidenced by a
promissory note or notes reciting that they are secured by this Deed of Trust.
A To protect the security of this Deed of Trust, and with respect to the property above
described, Trustor agrees:
(1) To keep said property in good condition and repair; not to remove or demolish any
building thereon; to complete or restore promptly and in good and workmanlike manner any
building which may be constructed, damaged or.deslroyed.thereon and to pay when due all
4835-4625-0244.3
1
claims for labor performed and materials furnished therefore; to comply with all laws affected
said property or requiring any alterations or improvements to be made thereon; not to commit
or permit waste thereof; not to commit, suffer or permit any act upon said property in violation
of law; to cultivate, irrigate, fertilize, fumigate, prune and do all other acts which from the
character or use of said property may be reasonably necessary, the specific enumerations
herein not excluding the general.
(2) To provide, maintain and deliver to Beneficiary fire insurance satisfactory to and with
loss payable to Beneficiary. The amount collected under any fire or other insurance policy
may be applied by Beneficiary upon any indebtedness secured hereby and in such order as
Beneficiary may determine, or at option of Beneficiary the entire amount so collected or any
part thereof may be released to Trustor. Such application or release shall not cure or waive
any default or notice of default hereunder or invalidate any act done pursuant to such notice.
(3) To appear in and defend any action or proceeding purporting to affect the security hereof
or the rights or powers of Beneficiary or Trustee; and to pay all costs and expenses, including
cost of evidence of title and attorneys' fees in a reasonable sum, in any such action or
proceeding in which Beneficiary or Trustee may appear, and in any suit brought by Beneficiary
to foreclose this Deed of Trust.
(4) To pay: at least ten days before delinquency all taxes and assessments affecting said
property, including assessments on appurtenant water stock; when due, all encumbrances,
charges and liens, with interest, on said property or any part thereof, which appear to be prior
or superior hereto; all costs, fees and expenses of this Deed of Trust.
Should Trustor fail to make any payment or to do any act as herein provided, then Beneficiary or
Trustee, but without obligation so to do and without notice to or demand upon Trustor and
without releasing Trustor from any obligation hereof, may: make or do the same in such manner
and to such extent as either may deem necessary to protect the security hereof, Beneficiary or
Trustee being authorized to enter upon said property for such purposes; appear in and defend
any action or proceeding purporting to affect the security hereof or the rights or powers of
Beneficiary or Trustee; pay, purchase, contest or compromise any encumbrance, charge or lien
which in the judgment of either appears to be prior or superior hereto; and, in exercising any
such powers, pay necessary expenses, employ counsel and pay his reasonable fees. The
costs, salary and expenses of the City Attorney and members of his office in enforcing this deed
of trust on behalf of the Beneficiary shall be considered as "attorneys' fees" for the purposes of
this paragraph.
(5) To pay immediately and without demand all sums so expended by Beneficiary or
Trustee, with interest from date of expenditure at the amount allowed by law in effect at the
date hereof, and to pay for any statement provided for by law in effect at the date hereof
regarding the obligation secured hereby any amount demanded by the Beneficiary not to
exceed the maximum allowed by law at the time when said statement is demanded.
(6) That any award of damages in connection with any condemnation for public use of or
injury to said property or any part thereof is hereby assigned and shall be paid to Beneficiary
who may apply or release such moneys received by him in the same manner and with the
same effect as above provided for disposition of proceeds of fire or other insurance.
(7) That by accepting payment of any sum secured hereby after its due date, Beneficiary
does not waive his right either to require prompt payment when due of all other sums so
secured or to declare default for failure so to pay.
(8) That at any time or from time to time, without liability therefore and without notice, upon
written request of Beneficiary and presentation of this Deed of Trust and said note for
endorsement, and without affecting the personal liability of any person for payment of the
indebtedness secured hereby, Trustee may: reconvey any part of said property; consent to
4835-4625-0244.3
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the making of any map or plat thereof; join in granting any easement thereon; or join any
extension agreement or any agreement subordinating the lien or charge hereof.
(9) That upon written request of Beneficiary stating that all sums secured hereby have been
paid, and upon surrender of this Deed and said note to Trustee for cancellation and retention
and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held
hereunder. The recitals in such reconveyance of any matters or facts shall be conclusive
proof of the truthfulness thereof. The grantee in such reconveyance may be described as "the
person or persons legally entitled thereto." Five years after issuance of such full
reconveyance, Trustee may destroy said note and this Deed of Trust (unless directed in such
request to retain them).
(10) That as additional security, Trustor hereby gives to and confers upon Beneficiary the
right, power and authority, during the default by Trustor in payment of any indebtedness
secured hereby or in performance of any agreement hereunder, to collect and retain either in
person, by agent, or by a receiver to be appointed by a court, and without regard to the
adequacy of any security for the indebtedness hereby secured, enter upon and take
possession of said property or any part thereof, in his own name sue for or otherwise collect
such, rents, issues, and profits, including those past due and unpaid, and apply the same, less
costs and expenses of operation and collection, including reasonable attorneys' fees, upon
any indebtedness secured hereby, and in such order as Beneficiary application thereof as
aforesaid, shall not cure or waive any default hereunder or invalidate any act done pursuant to
such notice.
(11) That upon default by Trustor in payment of any indebtedness secured hereby or in
performance of any agreement hereunder, Beneficiary may declare all sums secured hereby
immediately due and payable by delivery to Trustee of written declaration of default and
demand for sale and or written notice of default and of election to cause to be sold said
property, which notice Trustee shall cause to be filed for record. Beneficiary also shall deposit
with Trustee this Deed of Trust, said note and all documents evidencing expenditures secured
hereby. After the lapse of such time as may then be required by law following the recordation
of said notice of default, and notice of sale having been given as then required by law,
Trustee, without demand on Trustor, shall sell said property at the time and place fixed by it in
said notice of sale, either as a whole or in separate parcels, and in such order as it may
determine, at public auction to the highest bidder for cash of lawful money of the United
States, payable at time of sale. Trustee may postpone sale of all or any portion of said
property by public announcement at such time and place of sale, and from time to time
thereafter may postpone such sale by public announcement at the time fixed by the
proceeding postponement. Trustee shall deliver to such purchaser its deed conveying the
property so sold, but without any covenant or warranty, express, or implied. The recitals in
such deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Any
person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at
such sale. After deducting all costs, fees and expenses of Trustee and of this Deed of Trust,
including cost of evidence of title in connection with sale, Trustee shall apply the proceeds of
sale to payment of: all sums expended under the terms hereof, not then repaid, with accrued
interest at the amount allowed by law in effect at the date hereof; all other sums then secured
hereby; and the remainder, if any, to the person or persons legally entitled thereto.
(12) Beneficiary, or any successor in ownership of any indebtedness secured hereby, may
from time to time, by instrument in writing, substitute a successor or successors to any
Trustee named herein or acting hereunder, which instrument, executed by the Beneficiary and
duly acknowledged and recorded in the office of the recorder of the county or counties where
said property is situated, shall be conclusive proof of proper substitution of such successor
Trustee or Trustees, who shall, without conveyance from the Trustee predecessor, succeed to
all its title, estate, rights, powers and duties. Said instrument must contain the name of the
4835-4625-0244.3
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original Trustor, Trustee and Beneficiary hereunder, the book and pages where this Deed of
Trust is recorded and the name and address of the new Trustee.
(13) That this Deed of Trust applies to inure to the benefit of, and binds all parties hereto,
their heirs, legatees, devisees, administrators, executors, successors and assigns. The term
Beneficiary shall mean the owner and holder, including pledges, of the note secured hereby,
whether or not named as Beneficiary herein. In this Deed of Trust, whenever the context so
requires, the masculine gender includes the feminine and/or neuter, and the singular number
includes the plural.
(14) That Trustee accepts this Deed of Trust when this Deed of Trust, duly executed and
acknowledged, is made a public record as provided by law. Trustee is not obligated to notify
any party hereto of pending sale under any other Deed of Trust or of any action or proceeding
in which Trustor, Beneficiary or Trustee shall be a party unless brought by Trustee.
Beneficiary may charge for a statement regarding the obligation secured hereby, provided
the charge thereof does not exceed the maximum allowed by laws.
The undersigned Trustor, requests that a copy of any notice of default and any notice of sale
hereunder be mailed to him or her at his or her address hereinbefore set forth.
Signature of Trustor
4835-4625-0244.3
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STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO
ON
,20
, before me,
personally appeared
<<SignaturePrimarysname>>
<<Sig naturejoi ntname>>
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s)
is/are subscribed to the within instrument and acknowledged to me that he/she/they executed
the same in his/her/their authorized capacity(ies), and that by his/herltheir signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the
instrument.
I certify under PENAL TV OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature
4835-4625-0244.3
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Do Not Record
REQUEST FOR FULL RECONVEYANCE
TO: FIRST AMERICAN TITLE TRUSTEE:
The undersigned is the legal owner and holder of all indebtedness secured by the within Deed
of Trust. All sums secured by said Deed of Trust have been fully paid and satisfied; and you are
hereby requested and directed, on payment to you of any sums owing to you under the terms of
said Deed of Trust, to cancel all evidences of indebtedness, secured by said Deed of Trust,
delivered to you herewith, together with the said Deed of Trust, and to reconvey, without
warranty, to the parties designated by the terms of said Deed of Trust, all the estate now held by
you under the same.
Dated
By:
By:
Please mail Reconveyance to:
Do not lose or destroy this Deed of Trust OR THE NOTE which it secures. Both originals must
be delivered to the Trustee for cancellation before reconveyance will be made.
4835-4625-0244.3
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Provisions for Deed of Trust
(Due on Sale Provisions)
In the event that the Trustor should sell, transfer, or otherwise convey the real property securing
the Note, whether voluntarily or by operation of law, or as a result of the death of the Trustor,
and whether by deed, contract of sale, or otherwise, or the agreement to do so, at any time
within the first ten (10) years after the execution by the Trustor of the Note, other than a sale,
transfer or conveyance to a Successor-In Interest (as defined in the Affordable Housing
Covenants Agreement), who has been approved in writing by the Beneficiary, or the refinancing
by the Maker of the loan evidenced by the Note and secured by this Deed of Trust or of the
Senior Loan (as defined in the Affordable Housing Covenants Agreement), then all obligations
secured by the Note, irrespective of the maturity dates expressed therein, shall, at the option of
the Beneficiary become immediately due and payable.
In the event that the real property securing the Note which is now or hereafter may be
encumbered by this Deed of Trust shall cease to be the Trustor's primary residence, irrespective
of the maturity dates expressed in the Note, shall, at the option of the Beneficiary, immediately
become due and payable.
In the event that the Trustor shall further encumber the real property securing the Note, or
otherwise cause a reduction in priority which this Deed of Trust securing the Note enjoys as of
the date of its recordation, then all obligations secured by the Note, irrespective of the maturity
dates express therein, shall, at the option of the Beneficiary, immediately become due and
payable.
Initials:
4835-4625-0244.3
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EXHIBIT "A"
Legal Description
4835-4625-0244.3
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EXHIBIT "B"
Affordable Housing Covenants Agreement
4835-4625-0244.3
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RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
Redevelopment Agency of the
City of San Bernardino
201 North "E" Street, Suite 301
San Bernardino, CA 92401
Attn: Executive Director
(Space Above Line Reserved For Use By Recorder)
RECORDATION OF THIS INSTRUMENT
IS EXEMPT FROM ALL FEES AND TAXES
AFFORDABLE HOUSING COVENANTS AGREEMENT
BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
AND
4835-4625-0244.3
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THESE AFFORDABLE HOUSING COVENANTS AND RESTRICTIONS (the "Affordable
Housing Covenants Agreement") is made and entered into as of _ by and between the
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a public body, corporate
and politic (the "Agency"), and _, _ (the "Qualified Homeowner"), and relates to the
following facts set forth in Recitals:
--- RECITALS ---
A. The Qualified Homeowner intends to obtain a loan (the "Agency Loan") from the
Agency under the Program (as defined below) that will permit the Qualified Homeowner to make
the Improvements (as defined below) to the Home currently owned and occupied by the
Qualified Homeowner, as its principal residence, which Home is located in the City of San
Bernardino (the "City"), County of San Bernardino (the "County"), State of California (the
"State"). The legal description of the Home is attached hereto as Exhibit "A" and is incorporated
herein by this reference.
B. The Agency is willing to make the Agency Loan to the Qualified Homeowner
under the Program provided the Qualified Homeowner executes and acknowledges, where
applicable, the Agency Loan Documents (as defined below).
C. The Qualified Homeowner is willing to execute and to acknowledge, where
appropriate, the Agency Loan Documents and to perform and to observe the terms, covenants
and conditions of the Agency Loan Documents.
D. The Neighborhood Housing Services Of the Inland Empire, Inc., a California non-
profit corporation (the "NHSIE"), shall administer the Program for the Agency in accordance with
and pursuant to the Single Family Residence Rehabilitation Loan Program Agreement, dated
, and all exhibits attached thereto, executed by and between the Agency and the
NHSIE (the "Rehabilitation Loan Program Agreement").
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS
AND UNDERTAKINGS SET FORTH HEREIN, AND FOR OTHER GOOD AND VALUABLE
CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY
ACKNOWLEDGED, THE QUALIFIED HOMEOWNER AND THE AGENCY DO HEREBY
COVENANT AND AGREE FOR THEMSELVES, THEIR SUCCESSORS AND ASSIGNS AS
FOLLOWS:
Section 1. Definitions of Certain Terms. As used in this Affordable Housing
Covenants Agreement, the following words and terms shall have the meaning as provided in the
Recitals, in this Section 1 or as otherwise defined in this Affordable Housing Covenants
Agreement unless the specific context of usage of a particular word or term may otherwise
require:
Adjusted Family Income. The words "Adjusted Family Income" mean "gross income"
as this term is defined in 25 California Code of Regulations Section 6914 for the total
annual income of each individual or family residing or treated as residing in the Home.
4835-4625-0244.3
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Affordable Housing Cost. The words "Affordable Housing Cost" shall have the
meaning as set forth in Health and Safety Code Section 50052.5 as this section may
hereafter be amended from time-to-time by the State of California. At the time when a
proposed Successor-In-Interest acquires the Home, the amount of the maximum
Affordable Housing Cost payable in connection with the acquisition of the Home at any
time after the Execution Date but during the Qualified Residence Period shall be
calculated as set forth in Health and Safety Code 50053.5(b)(1) or (2), as applicable.
Affordable Housing Covenants Agreement. The words "Affordable Housing
Covenants Agreement" mean this Affordable Housing Covenants Agreement, by and
between the Qualified Homeowner and the Agency pertaining to the Home.
Agency Deed of Trust. The words "Agency Deed of Trust" mean the Deed of Trust
With Assignment of Rents executed by the Qualified Homeowner, of even date of the
Agency Promissory Note, as trustor, in favor of the Agency, as beneficiary. The Agency
Deed of Trust secures the obligations of the Qualified Homeowner under the Agency
Promissory Note and encumbers the Property. The Agency Deed of Trust shall be in
recordable form and shall be recorded by the Agency in the County Recorder's Office.
Agency Loan. The words "Agency Loan" mean the loan made by the Agency to the
Qualified Homeowner under the Program to permit the Qualified Homeowner to make
and to complete the Improvements at the Qualified Homeowner's Home. The Agency
Loan is evidenced by the Agency Promissory Note and is secured, without limitation, by
the Agency Deed of Trust.. The Agency Loan made by the Agency to the Qualified
Homeowner may not exceed the lesser of: (i) $25,000 or (ii) twenty-five percent (25%)
of the then fair market value of the Home as determined by a licensed appraiser
approved by the Agency (the "Loan Amount"), without the prior written approval of the
Interim Executive Director. The Agency Loan shall be subordinate to the Senior Loan.
The Qualified Homeowner shall pay all amounts that exceed the Loan Funds paid by the
Agency to or for the benefit of the Qualified Homeowner under the Program to permit the
Qualified Homeowner to complete the Improvements in connection with the Qualified
Homeowner's Home. The Agency Loan shall be forgiven and discharged by the Agency
provided the Qualified Homeowner resides in the Home as its principal residence for ten
(10) years after the recordation of the Deed of Trust in the County Recorder's Office and
is not in default under the Agency Loan Documents.
Agency Loan Documents. The words "Agency Loan Documents" mean the Agency
Loan application (the "Agency Loan Application"), the Agency Promissory Note, the
Agency Deed of Trust, this Affordable Housing Covenants Agreement, the Agency
Maintenance Agreement, the general contractor agreement (the "General Contractor
Agreement"), the Loan Services Agreement and all other instruments, documents,
agreements andlor certifications evidencing, securing, guaranteeing andlor relating to
the Agency Loan.
Agency Maintenance Agreement. The words "Agency Maintenance Agreement" mean
the Residential Property Maintenance Agreement Containing Covenants Affecting Real
Property (Single-Family Residential Rehabilitation Loan Program), of even date of the
Promissory Note, executed and acknowledged by the Qualified Homeowner and by the
Agency. The Agency Maintenance Agreement shall be in recordable form and shall be
recorded by the Agency in the County Recorder's Office.
48354625-0244.3
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Agency Promissory Note. The words "Agency Promissory Note" mean the Promissory
Note Secured By Deed of Trust (Deferred Loan - Single Family Residential
Rehabilitation Loan Program), executed by the Qualified Homeowner, as maker, in favor
of the Agency. The outstanding principal balance of the Note shall accrue simple
interest at the rate of three percent (3%) per annum. No periodic payments of principal
and interest, or of interest-only shall be due and payable by the Qualified Homeowner to
the Agency during the term of the Note. The outstanding principal amount of the Note,
all accrued and unpaid interest and all other fees, charges and amounts due under the
Note, under the Deed of Trust and under the other Agency Loan Documents (the "Loan
Payoff') shall be payable by the Qualified Homeowner to the Agency on the date that: (i)
the Qualified Homeowner is in default under the Agency Loan Documents, subject to
any applicable cure period, (ii) the Qualified Homeowner refinances the Agency Loan or
the Senior Loan, or (iii) on the date that the Qualified Homeowner sells, conveys or
transfers the Home to an unauthorized third person in violation of the Agency Loan
Documents; provided, however, if the Qualified Homeowner remains the fee owner of
the Home for a period of ten (10) years from the date that the Deed of Trust is recorded
in the County Recorder's Office, the Agency Loan shall be forgiven and discharged by
the Agency, the Agency shall record a reconveyance or release of the Deed of Trust in
the County Recorder's Office and the Qualified Homeowner shall have no further duty or
obligation to pay to the Agency the Loan Payoff.
Code. The word "Code" means the Internal Revenue Code of 1 986, as amended, and
any regulation, rulings or procedures with respect thereto.
County Recorder's Office. The words "County Recorder's Office" mean the official
records of the county recorder's office for the County of San Bernardino, State of
California.
Execution Date. The words "Execution Date" mean the date that the Qualified
Homeowner executes and acknowledges, where applicable, the Agency Loan
Documents in connection with the making of the Agency Loan by the Agency to the
Qualified Homeowner.
Home. The word "Home" means and refers to the affordable single-family residential
dwelling unit (including the land and the landscape Improvements thereon) owned by the
Qualified Homeowner, as its principal residence. The Home is located in the City of San
Bernardino, County of San Bernardino, State of California, and the legal description for
the Home is attached to this Affordable Housing Covenants Agreement as Exhibit "A."
The Agency Loan shall be used to make and to complete the Improvements in
connection with the Home.
Home Escrow. The words "Home Escrow" mean and refer to an escrow created by and
between the Agency and the Qualified Homeowner wherein: (i) the Agency Loan
Documents are executed and acknowledged, if applicable, by the appropriate parties,
and/or (ii) the Agency may disburse the Agency Loan proceeds, or a portion thereof, to
the Qualified Homeowner as required by the Agency Loan Documents. The Home
Escrow shall also mean and include a real property purchase and sale escrow created
by the Qualified Homeowner and by the Successor-In-Interest. The transfer of the
Home from the Qualified Homeowner to the Successor-In-Interest shall be accomplished
upon the close of the Home Escrow.
4835-4625-0244.3
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Improvements. The word "Improvements" means and refers to the following types of
eligible improvements under the Program, or anyone of them, that will be constructed
and completed by or for the Qualified Homeowner to the Qualified Homeowner's Home
using the proceeds from the Agency Loan: (i) roof repairs and re-roof or overlay, (ii)
exterior and interior painting, including, without limitation, lead testing, (iii) drought
tolerant landscaping (irrigation system, with hydro seeds, sod or artificial turf), (iv)
window replacement, (v) carpet replacement andlor finished flooring replacement, (vi)
HVAC system, (vii) electrical work, (viii) sewer repair or sewer installation (the "Sewer
Repairs"), (ix) termite repairs, (x) exterior concrete hardscape such as sidewalks,
driveways, curbs, gutters, hand railings or ramps, (xi) door or window screens repairs or
replacements, (xii) tub, shower, toilet repairs or replacements, (xiii) foundation or
structural repairs, (xiv) fencing or (xv) installation of alternative energy sources,
including, without limitation, solar panels. The Improvements must relate to health and
safety code vioiations (i.e., blown sewer lines, septic tank destruction, etc.). At the time
that the Agency Loan is awarded by the Agency to the Qualified Homeowner, the
Agency andlor the NHSIE shall prepare a scope of work (the "Scope of Work") which
identifies the Improvements to be made to the Qualified Homeowner's Home under the
Agency Loan.
Loan Funds. The words "Loan Funds" mean and refer to the funds delivered by the
Agency to or for the benefit of a Qualified Homeowner in connection with the Agency
Loan that the Agency has approved and made to the Qualified Homeowner in
accordance with this Agreement and the Program. The Agency Loan made by the
Agency to the Qualified Homeowner under the Program may not exceed the Loan
Amount, without the prior written approval of the Interim Executive Director. The
Qualified Homeowner shall timely pay all amounts that exceed the Loan Funds paid by
the Agency to or for the benefit of the Qualified Homeowner under the Program in order
to construct, install, perform andlor complete the Improvements in connection with the
Qualified Homeowner's Home.
Low-Moderate Income Household. The words "Low-Moderate Income Household"
mean and refer to persons and families whose income does not exceed 120% percent of
area median income, adjusted for family size, as set forth in Health and Safety Code
Section 50093, as such section may be amended from time to time.
Notice of Agency Concurrence. The words "Notice of Agency Concurrence" mean
and refer to the acknowledgment in recordable form in which the Agency confirms that
the proposed Successor-In-Interest of the Qualified Homeowner satisfies all of the
Adjusted Family Income and other requirements of this Affordable Housing Covenants
Agreement for occupancy of the Home by the Successor-In-Interest at any time during
the Qualified Residence Period.
Qualified Homeowner. The words "Qualified Homeowner" mean and refer to:
(i) a person or household which owns and occupies its Home as its principal residence
within the City or within the Target Area (as defined in the Rehabilitation Loan Program
Agreement) or the Target Areas (as defined in the Rehabilitation Loan Program
Agreement) of the City, as may be specifically designed, in writing, from time to time by
the Agency for at least twelve (12) continuous months preceding the date of submission
of its Agency Loan Application to the NHSIE, (ii) has a personai or household income
level, adjusted for family size, during the twelve (12) months preceding the date of
submission of its Agency Loan Application to the NHSIE within the ranges of income for
4835-4625-0244.3
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low-moderate income households, adjusted for family size, (iii) must complete, execute
and submit the Agency Loan Application to the NHSIE, (iv) must agree to attend a
maintenance class conducted by the NHSIE, (v) must agree to live in its Home, as its
principal residence, for not less than ten (10) years after the recordation of the Agency
Deed of Trust, the Maintenance Agreement Covenant and this Affordable Housing
Covenants Agreement in the County Recorder's Office, (vi) must execute and
acknowledge, where appropriate, all Agency Loan Documents, (vii) must agree to
maintain its Home pursuant to the Agency Maintenance Agreement for a period of ten
(10) years following the recordation of the Agency Deed of Trust, the Agency
Maintenance Agreement and this Affordable Housing Covenants Agreement in the
County Recorder's Office, and (viii) the Qualified Homeowner must not have received
any grant or any loan from the Agency for a period of ten (10) years prior to the
submission by the Qualified Homeowner to the Agency andlor to the NHSIE of the
Agency Loan Application. Further, any prior loan made by the Agency to the Qualified
Homeowner under any Agency loan program must be paid in full by the Qualified
Homeowner to the Agency and the Homeowner must have no duty or obligation to
reimburse the Agency for any grant, or any portion thereof, previously granted by the
Agency to the Qualified Homeowner under any Agency grant program. On a case-by-
case basis, the Interim Executive Director of the Agency, in its sole and absolute
discretion, may waive this one (1) year residency requirement.
Qualified Residence Period. The words "Qualified Residence Period" mean the period
of time beginning on the Execution Date and ending on that date which is ten (10) years
after the Execution Date.
Senior Deed of Trust. The words "Senior Deed of Trust" mean and refer to the senior
deed of trust executed and acknowledged by the Qualified Homeowner, as trustor, in
favor of the Senior Lender, as beneficiary. The Senior Deed of Trust secures the
obligations of the Senior Promissory Note and of the Senior Loan and encumbers the
Home.
Senior Lender. The words "Senior Lender" mean and refer to an institutional lender,
including, without limitation, any bank, savings bank, savings and loan association,
insurance company, credit union or other lender making the Senior Loan to the Qualified
Homeowner.
Senior Loan. The words "Senior Loan"_mean and refer to the loan made by the Senior
Lender to the Qualified Homeowner. The Senior Loan is evidenced by the Senior
Promissory Note and is secured by the Senior Deed of Trust encumbering the Home
owned by the Qualified Homeowner.
Senior Loan Documents. The words "Senior Loan Documents" mean and refer to the
Senior Promissory Note, to the Senior Deed of Trust and to all other instruments,
documents, agreements, guarantees andlor certificates evidencing, securing,
guaranteeing or relating to the Senior Loan.
Senior Promissory Note. The words "Senior Promissory Note" mean and refer to the
Senior Promissory Note executed by the Qualified Homeowner in favor of the Senior
Lender. The obligations of the Senior Promissory Note are secured by the Senior Deed
of Trust which Senior Deed of Trust encumbers the Home owned by the Qualified
Homeowner.
4835-4625-0244.3
15
Successor-In-Interest. The words "Successor-In-Interest" mean and refer to the
person, family or household which may acquire the Home from the Qualified
Homeowner (or from a Successor-In-Interest who has previously purchased the Home)
at any time during the Qualified Residence Period by purchase, assignment, transfer or
otherwise. The Successor-In-Interest shall have an income level which does not exceed
the maximum income level for a Low-Moderate Income Family as applicable to the
Qualified Homeowner under the Agency Loan, the Successor-In-Interest shall agree to
occupy the Home as its principal residence, shall assume the Agency Loan and the
Agency Loan Documents and shall comply with and satisfy all other conditions of a
Qualified Homeowner. Upon acquisition of the Home, the Successor-In-Interest shall be
bound by each of the covenants, conditions and restrictions of this Affordable Housing
Covenants Agreement.
The titles and headings of the sections of this Affordable Housing Covenants Agreement
have been inserted for convenience of reference only and are not to be considered a part hereof
and shall not in any way modify or restrict the meaning any of the terms or provisions hereof.
Section 2. Acknowledqments and Representations of the Qualified Homeowner.
The Qualified Homeowner hereby acknowledges and represents that, as of the
Execution Date:
(a) the total household income for the Qualified Homeowner does not exceed the
maximum amount permitted as Adjusted Family Income for a Low-Moderate Income Household;
(b) the Qualified Homeowner occupies and intends to occupy the Home on and after
the Execution Date as its principal place of residence for the term of the Qualified Residence
Period and the Qualified Homeowner has not entered into any arrangement and has no present
intention to rent, sell, transfer or assign the Home to any third party during the Qualified
Residence Period so as to frustrate the purpose of this Affordable Housing Covenants
Agreement;
(c) the Qualified Homeowner has no present intention to lease or rent any room or
sublet or rent a portion of the Home to any relative of the Qualified Homeowner or to any third
person at any time during the Qualified Residence Period;
(d) the Qualified Homeowner agrees, without limitation, to provide the NHSIE and/or
the Agency with the following items of information for inspection by the NHSIE and/or the
Agency promptly upon written request of the Agency:
(i) State and federal income tax returns filed by all persons who reside in the Home
for the calendar year preceding the Execution Date of the Agency Loan
Documents for inspection of such State and federal income tax returns;
(ii) current wage, income and salary statements for all persons residing in the Home
on the Execution Date of the Agency Loan Documents;
(e) the Qualified Homeowner agrees that this Affordable Housing Covenants
Agreement imposes certain restrictions on the use and occupancy of the Home during the term
of this Affordable Housing Covenants Agreement and that this Affordable Housing Covenants
4835-4625-0244.3
16
Agreement imposes certain restrictions on the resale of the Home during the Qualified
Residence Period and prohibits the refinancing by the Qualified Homeowner of the Agency Loan
or of the Senior Loan. The Qualified Homeowner acknowledges and understands that the
resale restrictions of this Affordable Housing Covenants Agreement shall be applicable to the
Home and to any resale of the Home from the Execution Date to the end of the Qualified
Residence Period which is _
Dated:
Initials of
Qualified Homeowner
Section 3. Acknowledament of Subordination of the Provisions of this Affordable
Housina Covenants Aareement and the other Aaencv Loan Documents to the Senior
Loan Documents ofthe Senior Lender.
Prior to the execution and recordation of this Affordable Housing Covenants Agreement,
the Qualified Homeowner obtained certain purchase money mortgage financing from the Senior
Lender under the Senior Loan for the acquisition by the Qualified Homeowner of the Home and
is now obtaining the Agency Loan in the amount of ($) from the
Agency to permit the Qualified Homeowner to make and to complete the Improvements to the
Home. The Agency Loan and the Agency Loan Documents are subordinate to the Senior Loan
and to the Senior Loan Documents. As of the Execution Date, the Qualified Homeowner has
provided the Agency and the NHSIE with a true and correct copy of the Senior Loan Documents
by and between the Senior Lender and the Qualified Homeowner.
The Qualified Homeowner and the Agency hereby acknowledge and agree that the
provisions of this Affordable Housing Covenants Agreement and the other Agency Loan
Documents are subordinate and junior to the security interest of the Senior Loan Documents in
the Home. No breach or default by the Qualified Homeowner of any provision of this Affordable
Housing Covenants Agreement or of any other Agency Loan Documents, nor the exercise by
the Agency of any remedy it may have against the Qualified Homeowner in the event of such a
breach or default under this Affordable Housing Covenants Agreement or the other Agency
Loan Documents shall affect or render invalid the lien of the Senior Lender in the Home. Thus,
the Senior Lender and any good faith purchaser for value from the Senior Lender, its
successors and assigns, including without limitation the United States Secretary of Housing and
Urban Development if such Senior Loan Documents have been assigned to the Secretary of
Housing and Urban Development, receiving title to the Home through a trustee's sale, judicial
foreclosure sale, deed in lieu of foreclosure and any conveyance or transfer thereafter, shall
receive title to the Home free and clear of the provisions of this Affordable Housing Covenants
Agreement and of the other Agency Loan Documents.
4835-4625-0244.3
17
Section 4. Covenants of the Qualified Homeowner.
(a) The Qualified Homeowner for itself, its heirs, successors and assigns, hereby
covenants and agrees that during the term of the Qualified Residence Period the Home shall be
used and, occupied by the Qualified Homeowner as its principal residence, and that the Home
shall be reserved for sale, use and occupancy by the Qualified Homeowner andlor for another
Low-Moderate Income Household as a Successor-In-Interest at an Affordable Housing Cost.
The Qualified Homeowner, for itself, its heirs, successors and assigns, further covenants and
agrees that, during the Qualified Residence Period, the Agency shall have the right and duty as
provided in this Section 4 to verify that each proposed Successor-In-Interest of the Qualified
Homeowner in the Home: (I) is a person or household which intends to own and occupy the
Home as its principal residence, (Ii) is a person or household that has resided in the City for at
least twelve (12) continuous months preceding the date of submission of its Agency Loan
Application to the NHSiE, (iii) is a person or household that has a personal or household income
level, adjusted for family size, during the twelve (12) months preceding the date of submission
of its Agency Loan Application to the NHSIE within the ranges of income for low-moderate
income households, adjusted for family size, (iv) completes, executes and submits the Agency
Loan Application to the NHSIE, (v) agrees to attend a maintenance class conducted by the
NHSIE, (vi) agrees to live in its Home, as its principal residence, for not less than ten (10) years
after the date of the assumption by the Successor-in-Interest of the Agency Loan and the
Agency Loan Documents, (vii) executes and acknowledges, where appropriate, instruments,
documents and agreements in connection with the assumption by the Successor-In interest of
the Agency Loan Documents (the "Assumption Agreements"), (viii) agrees to maintain its Home
pursuant to the Agency Maintenance Agreement for a period of ten (10) years after the
execution by the Successor-In-Interest of the Assumption Agreements, and (ix) the Qualified
Homeowner must not have received any grant or any loan from the Agency for a period of ten
(10) years prior to the submission by the Qualified Homeowner to the Agency andlor to the
NHSIE of the Agency Loan Application. Further, any prior loan made by the Agency to the
Successor-In-interest applicant under any Agency loan program must be paid in full by the
Successor-In-Interest applicant to the Agency and the Successor-In-Interest applicant must
have no duty or obligation to reimburse the Agency for any grant, or any portion thereof,
previously granted by the Agency to the Successor-In-Interest applicant under any Agency grant
program. On a case-by-case basis, the Interim Executive Director of the Agency, in its sole and
absolute discretion, may waive the one (1) year residency requirement.
(b) The Qualified Homeowner, for itself, its successors and assigns, hereby
covenants and agrees that during the term of the Qualified Residence Period, the Qualified
Homeowner shall not sell, transfer or otherwise dispose of the Home (or any interest therein) to
a Successor-In-Interest without first giving written notice to the Agency and without first
obtaining the written concurrence of the Agency as provided herein. At least sixty (60) calendar
days prior to the date on which the Qualified Homeowner proposes to transfer title in the Home
to a Successor-In-Interest, the Qualified Homeowner shall send a written notice to the Agency
as provided in Section 15 of the intention of the Qualified Homeowner to sell the Home to a
Successor-In-Interest which includes the following true and correct information:
(i) name of the proposed Successor-In-Interest (including the identity of all persons
in the household of the Successor-In-Interest, proposing to reside in the Home)
together with a completed Agency Loan Application executed by the proposed
Successor-I n-I nterest;
4835-4625-0244.3 18
(ii) copies of State and federal income tax returns for the Successor-In-Interest for
the calendar year preceding the year in which the notice of intention to sell the
Home is given to the Agency;
(iii) resale price of the Home payable by the Successor-In-Interest, including the
terms of all purchase money mortgage financing to be assumed, provided or
obtained by the Successor-In-Interest, escrow costs and charges, realtor broker
fees and all other resale costs or charges payable by either the Qualified
Homeowner or the Successor-In-Interest;
(iv) name address, and telephone number of the escrow company which shall
coordinate the transfer of the Home from the Qualified Homeowner to the
Successor-I n-I nterest;
(v) appropriate mortgage credit reference for the Successor-In-Interest with a written
authorization signed by the Successor-in-Interest authorizing the Agency to
contact each such reference; and such other relevant information as the Agency
may reasonably request, as provided in Section 4(c).
(c) Within thirty (30) calendar days following receipt of the notice of intention
described in Section 4(b), the Agency shall provide the Qualified Homeowner with either a
preliminary confirmation of approval or a preliminary rejection in writing of the income and
household occupancy qualifications of the Successor-In-Interest and of the other qualifications
required in Section 4(a). The Agency shall not unreasonably withhold approval of any proposed
sale of the Home to a Successor-in-Interest who satisfies the Adjusted Family Income, the
Affordable Housing Cost requirements for occupancy of the Home, the qualifications required in
Section 4(a) and the other information required in Section 4(b). In the event that the Agency
may request additional information relating to the confirmation of the matters described in
Section 4(b), the Qualified Homeowner shall provide such information to the Agency as
promptly as feasible.
(d) Upon its final confirmation of the approval of the Adjusted Family Income, of the
Affordable Housing Cost eligibility, of the satisfaction of the conditions required in Section 4(a)
and the informed required in Section 4(b) to permit the Successor-in-Interest to acquire the
Home, the Agency shall deliver a written acknowledgment and approval of the resale of the
Home to the Successor-In-Interest in recordable form to the escrow holder referenced in
Section 4(b)(iv) above, and thereafter the Successor-In-Interest may acquire the Home subject
to the satisfaction of the following conditions:
(i) the recordation of the Notice of Agency Concurrence executed by the Successor-
In-Interest and the Agency at the close of the resaie escrow;
(ii) the escrow holder shall have provided the Agency with a copy of the customary
form of the final escrow closing statement of the Qualified Homeowner and the
final escrow closing statement for the Successor-In-Interest; and
(iii) the other conditions of the resale escrow as established by the Qualified
Homeowner and Successor-In-interest shall have been satisfied.
(e) The Qualified Homeowner for itself, its successors and assigns, hereby
covenants and agrees that during the Qualified Residence Period the Home shall not be leased,
4835-4625-0244.3
19
subleased, or rented to any third person, except for a temporary period (not to exceed 12
months) in the event of an emergency or other unforeseen circumstance as may be expressly
approved in writing by the Agency subject to compliance during the temporary rental period with
the reasonable temporary rental occupancy conditions required by the Agency. The Qualified
Homeowner shall submit a written request to the Agency prior to the commencement of the
temporary occupancy, as practicable, but in any event within not more than sixty (60) calendar
days following the commencement of a temporary rental occupancy of the Home by a third
party, which notice shall set forth the grounds on which the Qualified Homeowner believes an
emergency or other unforeseen circumstance has occurred and that a temporary rental
occupancy is necessary.
(f) The Qualified Homeowner for itself, its successors and assigns, hereby
acknowledges and agrees that any refinancing by the Qualified Homeowner, or by any Agency
approved Successor-In-Interest, of the Senior Loan or of the Agency Loan shall be prohibited
and shall constitute an event of default under the Agency Loan Documents.
Section 5. Foreclosure of the Senior loan bv the Senior lender and Anencv Rinht
of First Refusal.
(a) During the Qualified Residence Period, the Agency shall have the right (but not
the obligation) to bid on the purchase of the Senior Loan secured by the Senior Deed of Trust
encumbering the Home at the time of any trustee foreclosure sale or any judicial foreclosure
sale of the Senior Deed of Trust.
(b) During the Qualified Residence Period, the Agency shall have the right of first
refusal to purchase the Home from the Qualified Homeowner on the same terms which the
Qualified Homeowner may propose to offer the Home for resale to a Successor-In-Interest. The
Agency must exercise such a right of first refusal within thirty (30) calendar days following
written notification of the intention of the Qualified Homeowner to resell the Home, and if the
Agency accepts the offer in writing within such time period the Agency shall be bound to
complete the purchase of the Home strictly in accordance with the offer. Thereafter the Agency
shall pay the "resale price" to the Qualified Homeowner and close an escrow for the transfer of
the Home to the Agency within sixty (60) calendar days following written notification of the
intention of the Qualified Homeowner to resell the Home.
(c) In the event that the Agency may purchase the Home under Section 5(b), the
Agency shall cause the Home to be reserved for sale and occupancy by a Successor-in-Interest
(e.g., an income qualified purchaser of the Home who is a person or household of Low-
Moderate Income).
Section 6. Covenants to Run With the land. The Qualified Homeowner and the
Agency hereby declare their specific intent that the covenants, reservations and restrictions set
forth herein are part of a plan for the promotion and preservation of affordable single family
housing dwelling units within the territorial jurisdiction of the Agency and that each shall be
deemed covenants running with the land and shall pass to and be binding upon the Home and
each Successor-In-interest of the Qualified Homeowner in the Home for the term provided in
Section 8. The Qualified Homeowner hereby expressly assumes the duty and obligation to
perform each of the covenants and to honor each of the reservations and restrictions set forth in
this Affordable Housing Covenants Agreement. Each and every contract, deed or other
instrument hereafter executed covering or conveying the Home or any interest therein shall
conclusively be held to have been executed, delivered and accepted subject to such covenants,
4835-4625-0244.3
20
reservations, and restrictions, regardless of whether such covenants, reservations and
restrictions are set forth in such contract, deed or other instrument.
Section 7. Burden and Benefit. The Agency and the Qualified Homeowner hereby
declare their understanding and intent that the burden of the covenants set forth herein touch
and concern the land in that the Qualified Homeowner's legal interest in the Home is affected by
the affordable single family dwelling use and occupancy covenants hereunder. The Agency and
the Qualified Homeowner hereby further declare their understanding and intent that the benefit
of such covenants touch and concern the land by enhancing and increasing the enjoyment and
use of the Home by the intended beneficiaries of such covenants, reservations and restrictions,
and by furthering the affordable single family housing development goals and objectives of the
Agency under the Program.
Section 8. Term.
(a) The provisions of this Affordable Housing Covenants Agreement shall apply to
the Qualified Homeowner, to the Home and to each Successor-In-Interest for ten (10) years
after the Execution Date of this Affordable Housing Covenants Agreement.
(b) Any provision or section of this Affordable Housing Covenants Agreement may
be terminated after the Execution Date upon the written agreement by the Agency and by the
Qualified Homeowner (or the Successor-In-Interest in the Home), if there shall have been
provided to the Agency an opinion of special legal counsel that such a termination under the
terms and conditions approved by the Agency in its reasonable discretion will not adversely
affect the affordable single family housing and development goals and obligations of the Agency
under the Program.
Section 9. Breach and Default and Enforcement.
(a) Failure or delay by the Qualified Homeowner to honor or to perform any material
term or provision of this Affordable Housing Covenants Agreement shall constitute a breach
hereunder and under the other Agency Loan Documents; provided however, that if the Qualified
Homeowner commences to cure, correct or remedy the alleged breach within thirty (30)
calendar days after the date of written notice specifying such breach and shall diligently
complete such cure, correction or remedy, the Qualified Homeowner shall not be deemed to be
in default hereunder or under any of the other Agency Loan Documents.
The Agency shall give the Qualified Homeowner written notice of breach specifying the
alleged breach which if uncured by the Qualified Homeowner within thirty (30) calendar days,
shall be deemed to be an event of default hereunder and under the other Agency Loan
Documents. Delay in giving such notice shall not constitute a waiver of any breach or event of
default nor shall it change the time of breach or event of default; provided, however, the Agency
shall not exercise any remedy for an event of default hereunder without first delivering the
written notice of breach as specified in this Section 9.
Except with respect to rights and remedies expressly declared to be exclusive in this
Affordable Housing Covenants Agreement, the rights and remedies of the Agency are
cumulative with any other right or power of the Agency or the City or other applicable law, and
the exercise of one or more of such rights or remedies shall not preclude the exercise by the
Agency at the same or different times, of any other right or remedy for the same breach or event
of default.
4835-4625-0244.3
21
In the event that a breach of the Qualified Homeowner may remain incurred for more
than thirty (30) calendar days following written notice, as provided above, an event of default
shall be deemed to have occurred hereunder and under the other Agency Loan Documents.
Upon the occurrence of any event of default, the Agency shall be entitled to seek any
appropriate remedy or damages by initiating legal proceedings as follows:
(i) by mandamus or other suit, action or proceeding at law or in equity, to require the
Qualified Homeowner to perform its obligations and covenants hereunder, or
enjoin any acts or things which may be unlawful or in violation of the rights of the
Agency; or
(ii) by other action at law or in equity as necessary or convenient to enforce the
obligations, covenants and agreements of the Qualified Homeowner to the
Agency.
(b) Except as set forth in the next sentence, no third party shall have any right or
power to enforce any provision of this Affordable Housing Covenants Agreement on behalf of
the Agency or to compel the Agency to enforce any provision of this Affordable Housing
Covenants Agreement against the Qualified Homeowner or the Home. The Agency may assign
the right and power to enforce the provision of this Affordable Housing Covenants Agreement
against the Qualified Homeowner or the Home as the successor administration agency of the
Program.
Section 10. Governina Law. This Affordable Housing Covenants Agreement and the
other Agency Loan Documents shall be governed by the laws of the State of California.
Section 11. Amendment. This Affordable Housing Covenants Agreement may be
amended after the Execution Date only by a written instrument executed by the Qualified
Homeowner (or the Successor-In-Interest, as applicable) and by the Agency.
Section 12. Attornevs' Fees. In the event that the Agency brings an action to enforce
any condition or covenant, representation or warranty in this Affordable Housing Covenants
Agreement or under any other Agency Loan Documents or otherwise arising out of this
Affordable Housing Covenants Agreement and/or out of the other Agency Loan Documents, the
prevailing party in such action shall be entitled to recover from the other party reasonable
attorneys' fees to be fixed by the court in which a judgment is entered, as well as the costs of
such suit. For the purposes of this Section 12, the words "reasonable attorneys' fees" in the
case of the Agency include the salaries, costs and overhead of lawyers employed in the Office
of the City Attorney of the City of San Bernardino.
Section 13. Severabilitv. If any provision of this Affordable Housing Covenants
Agreement shall be declared invalid, inoperative or unenforceable by a final judgment or decree
of a court of competent jurisdiction such invalidity or unenforceability of such provision shall not
affect the remaining parts of this Affordable Housing Covenants Agreement which are hereby
declared by the parties to be severable from any other part which is found by a court to be
invalid or unenforceable.
Section 14. Time is of the Essence. For each provision of this Affordable Housing
Covenants Agreement and/or of the other Agency Loan Documents which states a specific
4835-4625-0244.3
22
amount of time within which the requirements thereof are to be satisfied, time shail be deemed
to be of the essence.
Section 15. Notice. Any notice required to be given under this Affordable Housing
Covenants Agreement shall be given by the Agency or by the Qualified Homeowner, as
applicable, by personal delivery or by First Class United States mail at the addresses specified
below or at such other address as may be specified in writing by the parties hereto:
If to the Agency:
Redevelopment Agency of the
City of San Bernardino
201 North "E" Street, Suite 301
San Bernardino, CA 92401
Alln: Interim Executive Director
Phone: (909) 663-1044
Fax: (909) 888-9413
Ifto the
Qualified Homeowner:
San Bernardino, California_
Alln:
Phone: (_)_
Notice shall be deemed given five (5) calendar days after the date of mailing to the party, or, if
personally delivered, when received by the Interim Executive Director of the Agency or the
Qualified Homeowner, as applicable.
1111
1/1/
1/1/
1/1/
1/1/
1/1/
4835-4625-0244.3
23
IN WITNESS WHEREOF, the Qualified Homeowner and the Agency have caused this
Affordable Housing Covenants Agreement to be signed, acknowledged and attested on their
behalf by duly authorized representatives in counterpart original copies which shall upon
execution by all of the parties be deemed to be one original document. The recordation of this
Affordable Housing Covenants Agreement is authorized under Health and Safety Code Section
33334.3(g).
QUALIFIED HOMEOWNER
Date:
By:
Name:
By:
Name:
AGENCY
Redevelopment Agency of the City
of San Bernardino
Dated:
By:
Emil A. Marzullo, Interim Executive Director
[SIGNATURE(S) MUST BE ACCOMPANIED BY A NOTARY ACKNOWLEDGEMENT]
Approved as to Form:
By:
Agency Counsel
4835-4625-0244.3
24
EXHIBIT "A"
Legal Description of the Home
4835-4625-0244.3
25
SFR Rehabilitation Loan
Exhibit "C"
Scope of Services (attached to Loan Program Agreement)
SFR Rehabilitation Loan
Exhibit "D"
Application Review Committee Checklist
REHABILITATION LOAN APPLICATION APPROVAL CHECKLIST
Date of Review:
Homeownerlsl name:
PropertY Address:
Loan Amount:
NHS Due Diligence:
Qualified Homeowner Verification:
_ Resided at residence for at least one (1) year
Attended Maintenance Class on:
_ Maintenance Covenant Agreement complete
_ Affordable Housing Covenants complete (if necessary)
_Income eligibility verified
Subject Property Equity Determination:
_ Property profile I encumbrances - Debt I Equity Ratio:
_ Property appraisal conducted; appraisal amount: $
_ Loan amount percentage of appraised property value: %
,\ 'I, , ll'i' \, liif, il.".
_ Property Profile: Name(s) on grant application MUST match the one(s)
listed as "Owner" or "Co-owner" on property profile
_ Preliminary title report (or other pertinent documentation)
_ Legal owner & signatory on Covenant Agreement & Grant Agreement
Property Eligibility Verification:
_ Parcel Map ("Exhibit A")
_ Located within Target Area (if applicable)
_ Verification property located in City of San Bernardino
Eligible Improvements:
_ Scope of Work consistent with "Eligible Improvements" (see list on
reverse side)
Construction Bids:
1. Name of contractor:
2. Name of contractor:
3. Name of contractor:
High Bid Amount: $
Middle Bid Amount: $
Low Bid Amount: $
SFR Rehabilitation Loan
Exhibit "E"
General Contractor Agreement
NHSIE: Single Family Residence Rehabilitation Loan Program
GENERAL CONTRACTOR AGREEMENT
4846-3463-4756.1
~~~
. ~iJ NHSIE
NEIGHBORHOOD
HOUSING SERVICES
Of THE INUIO EMPIRE,INC
Neighborhood Housing
Senrices
ofthe
Inland Empire, Inc.
.~~b-_
SINGLE FAMILY RESIDENCE REHABILITATION LOAN PROGRAM
GENERAL CONTRACTOR AGREEMENT
File No: <<FileNo>>
Owner(sl:
Rehab Address:
THIS AGREEMENT is made this _ day of by and between
the "Owner(s)" hereinafter called the "Contractor".
hereinafter called
WITNESSETH, that the Contractor and the Owner(s) for the consideration stated herein agree
as follows:
1. RECITALS: This Agreement is made and entered into with respect to the following facts:
a) That the Redevelopment Agency of the City of San Bernardino (the "Agency") has a program to
help low-moderate income resident-owners of single family homes make certain improvements
to their homes, called the Single Family Residence Rehabifitation Loan Program; and,
b) Neighborhood Housing Services of the Inland Empire, Inc. (the "NHSIE') has contracted with
the Agency to administer said housing rehabilitation program, pursuant to applicable laws; and,
c) Owner has determined to participate in such program by causing certain improvements to be
made to hislher property, and has qualified for a loan to undertake such improvements; and,
d) Contractor attests that its company is properly licensed and fully qualified to perform the work
proposed to be accomplished in this Agreement, under terms and conditions hereinafter set
forth; and,
e) Owner and the Contractor acknowledge and agree that the NHSIE and the Agency are third
party beneficiaries of this Agreement, consistent with the NHSIE mission of housing
rehabilitation.
2. CONSIDERATION: THE UNDERSIGNED CONTRACTOR proposes to furnish labor and materials,
complete in accordance with the specifications attached hereto as Exhibit "A" and incorporated herein
by this reference for the sum of ($ I, with payments to be made
within ninety (90) calendar days from the completion of the work, subject to any additions and
deductions as provided herein.
3. WORK: Contractor agrees to complete all work in accordance with the contract documents, all
applicable laws, and in a workmanlike manner, according to generally acceptable, standard building
practices. Any alteration or deviation from the attached specifications will be executed only upon
written consent of the property Owner(s), the Contractor, and the NHSIE. Ail materials are guaranteed
to be as specified. No extra charges or costs will be paid. Contractor will be solely liable if helshe
has neglected to properiy evaluate the extent of the rehabilitation work. The performance under this
Agreement is subject to forced delays when due to strikes, accidents or acts of God.
NHSIE: Single Family Residence Rehabilitation Loan Program GENERAL CONTRACTOR AGREEMENT
4846-3463-4756.1
4. INDEMNIFICATION: The Contractor agrees to indemnify, defend and hold harmless the NHSIE,
the Agency and their authorized officers, members, directors, employees, agents, contractors,
subcontractors and volunteers (collectively, the "Indemnified Parties") from any and all claims, actions,
losses, damages, suits, fees (inciuding, without limitation, reasonable attorneys' fees, court costs,
expert witness fees and consultant fees), obligations and/or iiabilities (singularly, a "Claim" and
collectively, the "Claims"), now or hereafter arising out of this Agreement from any cause whatsoever,
including acts, errors or omissions of any person and for any costs or expenses incurred by the
NHSIE, by the Agency and/or by any of the other Indemnified Parties on account of any Claim
therefore, except where such indemnification is prohibited by law. This indemnification provision shall
survive the execution, the performance, the termination and the expiration of this Agreement.
5. INSURANCE: Without in anyway affecting the indemnity herein provided and in addition thereto,
the Contractor shall secure and maintain throughout the term of Agreement, and shall continue one (1)
year after the performance by the Contractor of the work under this Agreement, the following types of
insurance:
a. Workers' Compensation - a program of Workers' Compensation insurance or State-approved Self
Insurance Program in amount or form to meet all applicable requirements of the Labor Code of the
State of California, inciuding Employer's Liability with $1,000,000 limits, covering all persons
providing services on behalf of the Contractor and all risks to such persons under this Agreement.
b. Comprehensive General and Automobile Liability Insurance - This coverage to include, without
iimitation, comprehensive general liability policy of insurance with coverage at least as broad as
"Insurance Services Office Commercial General Liability Form (G0001), in the amount not less
than $1,000,000 combined single limit per occurrence, with said insurance covering
comprehensive general liability including, but not limited to, contractual liability, assumed
contractual iiabiiity under this Agreement, acts of subcontractors, premises-operations, explosion,
collapse and underground hazards, if applicable, broad form property damage, bodily injury and
personal injury including libel, slander and false arrest and automobile liability coverage on owned,
hired and non-owned vehicles.
c. Errors and Omissions Liability Insurance - Combined single iimits of $1 ,000,000 and $2,000,000 in
the aggregate or Professional Liability insurance with limits of at least $1,000,000 per claim or
occurrence.
6. ADDITIONAL NAMED INSURED, PRIMARY INSURANCE AND BEST'S KEY RATING: All
policies, except for the Workers' Compensation, the Errors and Omissions and the Professional
Liability policies shall contain additional endorsements naming the NHSIE, the Agency and the other
Indemnified Parties as additional named insured with respect to liabilities arising out of the
performance of the services hereunder. All insurance obtained by the Contractor shall be primary to
and shall not be contributing with any insurance carried by the NHSIE, by the Agency and/or by any of
the other Indemnified Parties. All insurance policies required under this Agreement shall be obtained
from insurance companies admitted in the State of California and rated at least A: XII in the most
current Best's Key Rating Insurance Guide.
7. WAIVER OF SUBROGATION OF RIGHTS: Except for Errors and Omissions Liability, the
Contractor shall require the insurance carriers of the above required coverage's to waive all rights of
subrogation against the NHSIE, against the Agency and against the other Indemnified Parties.
8. PROOF OF COVERAGE: Contractor shall immediately furnish certificates of insurance to the
NHSIE and to the Agency evidencing the insurance coverage, including endorsements, above
required prior to the commencement of performance of the services hereunder, which certificates shali
provide that such insurance shall not be terminated or expire without thirty (30) calendar days prior
written notice to the NHSIE and to the Agency, and the Contractor shall maintain such insurance from
the time the Contractor commences performance of services hereunder until one (1) year after the
completion of such services. Within sixty (60) calendar days after the commencement of this
NHSlE: Single Family Residence Rehabilitation Loan Program GENERAL CONTRACTOR AGREEMENT
4846-3463-4756.1
Agreement, the Contractor shall furnish the NHSIE and the Agency with certified copies of the policies
and all endorsements.
9. INSURANCE REVIEW: The above insurance requirements are subject to review by the NHSIE.
10. ACCEPTANCE & START: The bid and proposal shall be accepted by the Owner(s) and by the
NHSIE within sixty (60) calendar days from the date established by the NHSIE for its receipt, provided
that no work shall be commenced by the Contractor until a written Notice to Proceed has been issued
by the Owner(s). Work will begin no later than ten (10) calendar days after the Notice to Proceed is
issued. Contractor will not assign this Agreement without the prior written consent of the Owner(s)
and of the NHSIE. Any request for assignment shall be addressed to the NHSIE.
11. PERMITS: Contractor shall procure all City of San Bernardino and all other governing authority
permits and licenses, including a municipai business license, and shall pay all charges and fees for the
same, and shall give all notices necessary and incidental to the due and lawful prosecution of the work
as it separately pertains to each party. Permits and licenses required for corresponding elements of
the work to be performed shall be obtained prior to commencing such work and all associated costs
are specifically included in the contract amounts.
12. CHANGE ORDERS: No change in the work, as described in the Work Write-up, shall be made
except upon the mutual written consent of the Owner(s), the Contractor and the NHSIE. Contractor is
not authorized to deviate from the Work Write-up or specifications unless so directed in writing by the
NHSIE. Any Change Orders shall describe the nature of the additional work, the estimated time for
completion thereof, and the compensation to be paid to the Contractor for the performance of same.
13. OWNER(S) EXPECTATIONS: Owner(s) wili permit the Contractor to use existing utilities at no
cost, such as lighting, heating, power and water, as needed to carry out the work. Owner(s) will
cooperate with the Contractor to facilitate work performance, including the removal and replacement of
rugs, coverings, misceilaneous household goods and furniture as necessary, unless otherwise noted.
14. CONTRACTOR EXPECTATIONS: Contractor will keep the premises ciean and orderly during the
course of the daily work and will remove all debris at the completion of the work. Materials and
equipment which belong to the Contractor shall be removed from the premises. Work should be
planned so that the Owner(s) are not forced to relocate during the rehabilitation work, except under
unusual circumstances.
15. COMPLETION: Contractor agrees to satisfactorily complete all the work within forty-five (45)
calendar days from the noticed start date. The parties agree that time is of the essence in this
Agreement.
16. LI EN RELEASES: Contractor shall promptly pay all valid bills and charges for material, labor, or
otherwise in connection with or arising out of the construction, and shall hoid the Owner(s) of the
property free and harmless against all liens and claims of lien for labor and material, or either, filed
against the property or any part thereof, and from and against all expense and liability in connection
therewith, including, but not limited to, court costs and attorneys' fees resulting or arising there from.
Should any liens or claim of lien be filed for record against the property, or should the Owner(s)
receive notice of any unpaid bill or charge in connection with the construction, the Contractor shall
forthwith either pay and discharge the same and cause the same to be released of record, or shall
furnish the Owner(s) with proper indemnity either by satisfactory corporate surety bond or satisfactory
title policy, which indemnity shall also be subject to approval of the Lien Holder. Contractor shall
furnish the Owner(s) and the NHS/E with affidavits and satisfactory releases of liens or claims for any
liens from subcontractors, laborers and suppliers for completed work or installed materials.
NHSIE: Single Family Residence Rehabilitation Loan Program GENERAL CONTRACTOR AGREEMENT
4846-3463-4756.1
17. NON-EXECUTION: In the event that the Owner(s) will not execute the End of Project Work
Release, the NHSIE reserves the right to authorize payment to the Contractor for the work completed.
The NHSIE and the Contractor must certify that all of the Contractor's work has been performed in a
professional, workmanlike manner, and has adhered to the property specification standards. Upon the
written approval by the NHSIE, a payment request will be forwarded to the Agency for reiease of said
funds.
18. WARRANTY: Contractor will guarantee work for a period of one (1) year from the date of the final
written acceptance of all work required by the Agreement. Furthermore, the Contractor shall furnish
the Owner(s), in care of the NHSIE, with copies of all manufacturers' and suppliers' written guarantees
and warranties covering materials and equipment furnished under this Agreement. Contractor will
allow the NHSIE access to examine and to inspect all rehabilitation work. NHSIE shall have the right,
but not the obligation, at all reasonable times, to inspect the books and records of the Contractor
pertaining to the work and to the materiais which are the subject of this Agreement.
19. NOTICES: Notices pursuant to this Agreement shail be given by personal service to the person,
or by deposit in the custody of the US Postal Service, within a sealed envelope containing the notices,
postage pre-paid, and addressed as listed beiow. Such notice shall be deemed to be received within
forty-eight (48) hours from the time of mailing, if mailed as provided above. The following information
shall be used for maiied correspondence and communications reiated to this Agreement:
20. LEAD BASE PAINT ACKNOWLEDGEMENT AND LEAD BASE PAINT DISCLOSURE: Prior to
the commencement of the work: (i) the Contractor shall deliver to the Owner the Lead Base Paint
Disclosure and the Lead Base Paint Acknowledgement, (ii) the Owner shall execute and date the Lead
Base Paint Acknowledgement and the Lead Base Paint Disclosure, and (iii) the Contractor shall
deliver to both the NHSIE and to the Agency the Lead Base Paint Acknowledgement and the Lead
Base Paint Disclosure, as executed by the Owner.
OWNER INFORMATION:
CONTRACTOR DBA:
(Owner's Name)
(Contractor's Name)
(Rehab Address)
(Mailing Address)
(City)
(State)
(Zip Code)
(City) (State) (Zip Code)
(Telephone)
(FAX)
PROJECT ADMINISTRATOR: Neighborhood Housing Services (NHSIE)
1390 North "D" Street
San Bernardino, CA 92405
Telephone: (909) 884-6891
FAX: (909) 884-4085
-----------------------------------------------
ACCEPTANCE AND SIGNATURES
CONTRACTOR:
Date:
OWNER(S):
Date:
NHSIE: Single Family Residence Rehabilitation Loan Program
GENERAL CONTRACTOR AGREEMENT
4846-3463-4756.1
THE ABOVE AGREEMENT HAS BEEN REVIEWED AND APPROVED
For NHSIE:
Date:
NHSIE: Single Family Residence Rehabilitation Loan Program GENERAL CONTRACTOR AGREEMENT
4846-3463-4756.1
Exhibit "A"
Work Specifications
SFR Rehabilitation Loan
Exhibit "F"
Homeowner's Release and Waiver
~ '~SIE
NEIGHBORHOOD
HOUSING SERVICES
OF THE INLAND EMPIRE. INe
1390 North D Streett San Bernardino, CA 92405/ Phone 909-884-68911 Fax 909-884-8899/ www.nhsie.ore:
Neighborhood Housing
Services
of the
Inland Empire, Inc.
SINGLE FAMILY RESIDENCE REHABILITATION LOAN PROGRAM
HOMEOWNER'S RELEASE AND WAIVER
I, . OWNER of the property located at:
Print Your Name
_San Bernardino, CA do hereby approve and
Address
grant Neighborhood Housing Services of/he Inland Empire, Inc. (NHSIE) the following:
PERMISSION TO PHOTOGRAPH
I. PERMISSION TO PHOTOGRAPH OR VIDEO TAPE THE PROPERTY, RESIDENCE, AND OTHER OUT
BUILDINGS, SUCH AS GARAGES, SHEDS, ETC. FOR THE PURPOSE OF INSPECTION RECORDS, JOB
PROGRESS, BEFORE-AND-AFTER SHOTS, AND FOR FILE DOCUMENTATION. I UNDERSTAND AND
APPROVE THAT THIS MATERIAL MAY ALSO BE UTILIZED FOR PRESENT A TIONS, DISPLAYS,
ADVERTISEMENTS OR PUBLICITY TO FURTHER AGENCY AND/OR NHSIE HOUSING PROGRAMS.
2. I WAIVE ANY RIGHTS WITH RESPECT TO COMPENSATION OR DAMAGES FOR USE OF PHOTOGRAPHS,
MEDIA, AND VIDEOS RELATED TO THE PROPERTY.
Redevelopment Specialist
Owner's Signature
Date:
Date:
~ -6.
NelghboiWorks.
CHAItTI!..O MI!M.,,1t
4848-5581-8756.1
All rights reserved. No Part of this documentation may be reproduced or transmitted in any form, by any means without the prior
written permission of the publisher, Neighborhood Housing Services oftbe Inland Empire, Inc. Rev: 8/512009
SFR Rehabilitation Loan
Exhibit "G"
Lead Based Paint Acknowledgement
Lead Base Paint Pamphlet - Acknowledgement of Receipt
Conformation of Receipt of Lead Pamphlet
D I have received a copy of the pamphlet, Renovate Right: Important Lead Hazard Infonnation for
Families, Child Care Providers and Schools informing me of the potential risk of the lead hazard
exposure from renovation activity to be performed in my dwelling unit. I received this pamphlet
before the work began.
Printed name of recipient
Date
Signature of recipient
Self -Certification Option (for tenant-occupied dwellings only) -
If the lead pamphlet was delivered but a tenant signature was not obtainabie,
you may check the appropriate box below.
D Refusal to sign - I certify that I have made a good faith effort to deliver the pamphiet,
Renovate Right: Important Lead Hazard Information for Families, Child Care Providers,
and Schools, to the rental dwelling unit listed below at the date and time indicated and
that the occupant refused to sign the confirmation of receipt. I further certify that I have
left a copy of the pamphiet at the unit with the occupant.
D Unavailable for signature -I certify that I have made a good faith effort to deliver
the pamphlet, Renovate Right: Important Lead Hazard infonnation for Families, Child
Care providers and Schools, to the rental dwelling unit listed below and that the occupant
was unavailable to sign the confirmation or receipt. I further certify that I have left a
copy of the pamphlet at the unit by siiding it under the door.
Printed name of person certifying
Attempted delivery date; and
Time lead pamphlet delivery.
Signature of person certifying lead pamphlet delivery
Unit Address
Note Regarding Mailing Option - As an alternative to delivery in person, you may mail the lead
pamphlet to the owner and/or tenant. Pamphlet must be mailed at least 7 days before renovation
(Document with a certificate of mailing from the post office).
SFR Rehabilitation Loan
Exhibit "H"
Lead Based Paint Disclosure
""
~:,
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U.5_ Oepadnwm 01 Housing end Urba, Oe\oelapmenl . Office of Commonly Planning .Fld Oevelopmern
ONners. Tenatlls and Purcha5ef1 01 Housing COOSltuc1ion before 1978 Fie .
NOTIFICATION: WiNch QuI For lead-Bued Paint Poisoning Date
To:
lie:
I"'s ",ope<ty was eon51""'.d belo,. 1971. Th.,. is a possib.liIy. eo"'alll$le-"" pam. Plea.. ,e"'he '0_09 inlo""al/on
concerncn Ie.d-based . I . in.
SoU(C~$ 011 "..d Based Paint
The "',.,.." 01 01dE, Mmes'nd apanmenls "'.n """.Iay." oIlead.lJa..d painloolh. walls. ee'ings. ....cIow ,/IIs. doot, and doo<
fu",.s. lead b.,.. po... 'nd ",inet, may .Iso have been used <HI....ide po""",s. 'dogs. 51"'"90&. rue escape' and I."" ~S1S.
When 'h. pain' ehj>s. "oke, Of peel. 011. "'.... may be a ..al danger 10' bebie, and young ehiIdt.... Chid,"" mayea' p'ml eh". Of
chew on po/ne.. "/Mg.. window .ilIs Of o!he, .ems when _. ... l10l ........ Chld<en con .Iso Ingest lead even "hoy do no.
~"IC.a1ly eat painl cb;ps. For example, when children pfay h an area where there are base paint ~ or dust part5cles on Ihew
hands, put the.. hands info I.heir mou:Ihs, and irlgesr a dangerous _mounl of &ead.
!:;
Hi'1<I(ds ollC!OId-Based Pain!
l... pois<HI;"g i, claoge,ou. '- .specially 10 child..n onde, !he ag. of seven (7). II can ev.nlu.1Iy cau,. me"" '''''dal..n.
hlindne$S and even dealh.
SvInn.nm", at I 4!3d.R.aSM P.aint Po.isnninO
.... you, ehold be.n ..pecialty aanky .. irrilable? r, h. Of she ..ling nonnally? Doo. yo"' chid have stomach ach., ond vomi!;"g?
Do.. h. .. she e"""'a/n sho.. beadach.s? ,. you, clVld onwiling to pJay'/ n.e.e may be sign, olio.. poison;"g. Many 'ime.
'hougl' 'he.. a'. no .y""'..... at.... Beea... "'et. Of. no sY"l>toms doos IlOI .....n the. you .hould nOI b. eoncem.d ij you
believe you, child has been exposed to lead-based paint \
~~l!ld.Av.aaabilirv of Rf.........-( flAil LevAI ScrAAninn
· you 'u'pecl'ho, yo", chOd has .aten chj>s 01 pslnl .. someone IoId you .Ii.. you should lake YOut cltiId '0 ,h. doclor Of e'nic '0.
"'Iing. lI.h. 'e.. Shows thai you< chiIcl bos an -.... blood Ie'd Iovel. lteatmencls a_ ConI.., yo", doctor 0' loul heakh
de"'''''''nl... help .. mote """.....lion. lead saeening and lteatmelll Of. available "'''ough fie I.Iedic:.HI PfO\Il'"", for Ihose who
a,. ''goble. If you child Is i.....if..d os hav;"g an erev".d bfood lead Iov.~ you 'hoofd ImmOdatelty llOIiIy the Commun~y
o.v"opmen, .. o'h., agency '0 whiroh you .. \'OU< Iandotd Is applying "" _..ion "''''onc. .., th. fteCOS"'Y "<po can be
'aken '0 les' you, on~ '0. Iead-based pail1t hazanls. . yoU< unit does have lead.based paint. you may be .ligible for assistance to
abate IhM h.-'Zilrd. .
Precautitlt'lli: la Takp.lo Pr4tvlInll_ad.Rat:M Paint Poi~ni"S1
Vou can ovoid Ie.d.based ,,;"I_ing by perlOf";,,g some ",evene;,. main.enance. look ."he w.... coiIIl1gS. doo... do..
"ame. .nd wir>dow siU.. A,. 'h... pta..s wh... "'. pain. i. peel;"g. flfldng. c/Vppir>g. .. POwdering? . '0. _. a,. some th;"gs
you Cltn do immedialely 10 pt01ed your chad:
(.a) Cover ..a'umilure and' appliances:
(bl Dust c"'''''g lead can h. a health hOlatd. 00 NOT vacUUm loose...... Sweep.... cia"" mop: _
Ie) Sweep up .., piec.s 01 pslnl .... plas""nd pul.......;" a pope, bag .,....... them;" _...... P"'hese pad(ages ;" the ".sh
CO'll\. 00 NOT BURN THEM;
(dl On .... "'ove p..... ch.,s on 'be ftoo, or In wWldew we". Oa"" mop -. and window sills ill and at..... 'be WO<k a'.. '0
remove "n du51 an" PiWll panicles. IC"Ping fhese aroas dear of paint chips, dust and tirt is easy and very io~. and:
Ie) Do not "ow 100"" Paint.o '........ ""'''''' you,_.... 'each ''''.eNldron may pick loose palnI o/Ilho!owe< """ 0/ 'be w....
L~9'l!IW ~~~qn<tflC. :arvf -Tre.al.~ ()' I fI!-'.Fbc@(fP~Ha7.Rk:
As ....,..-.you ..~ .....tho. nee..."", st.ps tolcUpyo." IJome in ......'bePo. \I\I"ei~aks 1'....f~iMypl<i""""!l.
""""'.... '''''''.-.''''''''1' ".,....'~.'!Its may~"""'~~,,"""~~.""...,,,,y.,.,"""'.n.e.e~.~~
w"'s.'"'''' c,~ ~'~9U~:""',,,,,,,~,!'.:,,,ack''''''''':.'Thoi#~.........b!o,*'~ ......~eIty.. 8"'fl'O~In""!l."
.".""",~... '".'''!.'''9. ....~;,g..~.,Io.-.......1d be:~~!~"iOiIl1r""op;ng",. ",".Itin!l;~ ..........."""'".."....
"''''ee. .'."..,,,~!,,,~d,,'h l~~~l """" .......:..ad!>d"~'Iii$l..Od<i4'!<.ojliriU"d~ll.... ~..,.oy~~~'I1d...~
Olh,., "'''<'''''........s....,.,.,.;:~:'<l(~...Il....atii!l!al.wben:..ad,IWt~'P.....is'.........:by.sc~''':~...
d~.~I._..:;.t;;(_~..................w..'~.~..,.h. --.may '. .....liei.......J.i ':3!z.'~..'~/"'ltiO.., :;~..S1' '. (.ri.)._r~n.." 4,:;:~:IM.":<-."~. ..~-:~.'. :"";.~....."_',Ji;:".:~..'" ..,_....:.._.:O{;s~_.~. _' "'~.'.,.!T......~,V:M...-._"_,_QJ).e~l. -tJ;
.."'''..,,..........-.., ci."", ."...,9<~........"""'h.~......"......1Oli)i:liiliaJe<r~............,..~...... .WIoilii................
".,,"..""':~,. "'.'?J>.>s"!l...~..~\.>!<ii.Pi'o<~ .....,.l)tiio'...i;O ~...''iii..~...~........ 'on.he ...........:~PaiI1ting
..",.",.. '.." ~"'" "...... '-',u"oc.. <100. .... ..........h. ha'a<d.Remen'berlhal yo" as .n adult play . """'" to'" '" the
,tlo "'.'''0011.4 &"'.Id P')r.:"".~J YOUr ai:lfOM anij ,1W,UCfIf!S$ OOoullllC load PfOblem CM mako it big dIlre''''''e
!"""I"."..lti..qlll.'hU)"'ff1i'~JRf!I!blfdm1i
V,., .,."..,....."'....,.,Y "'''ily.... n.....g...."." "'I". 0<1110 agency fluough wI'eh you... pu.....,song youi homo illl.o un' h.s
'L"'''I. "~'~"""'~"'"'' ,.. "'''''''9 ".... W""" ....s h.", P......ng. .. a de'oc,....... You .....d e........,. wlh '10..01'".',
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.J 11,"IVl!f""ClW'!fllICopyafllll!N~lCeentlCltld :Protect Your Family From Lead in
Your Home.
.r
Homeowner's Siqnature
Date
NHSlE Rehab Specialist
n;lt-....
SFR Rehabilitation Loan
Exhibit "I"
Loan Application
For Office Use ONLY
Application Mailed out on: I
Redevelopment Agency of the City Of San Bernardino-
Single Family Residence Rehahilitation Loan Program Application
(NHSIE)
Neighhorhood Housing Services ofthe
Inland Empire Services, Inc.
Applicant's Name (Last, First, MI)
Applicant's Date of Birth
Applicant's Spouse's Name or Co-Applicant
Co-Applicant's Date of Birth
Street Address
Applicant's Phone Number
(Office Use Only)
Map Verification
Date: Initials:
City/Zip
DO YOU HAVE ANY NOTICE OF VIOLATION WITH THE CITY OF SAN BERNARDINO CODE ENFORCEMENT
OR ANY OTHER CITY AGENCIES YES IF YES PROVIDE COPY. NO
Years lived
in residence: List all nersons livinQ in residence other than vou:
Name Relationship Age Emnloved
Yes I No
;
I ...
.-- I
.-
-
Anv income must be shown in income section. Must show oroof of income to qualifY. Written verification must be forwarded with application.
MONTHLY HOUSEHOLD GROSS INCOME
AFDC If Social Securitv I ~ SSI/SSP I ~
Disabilitv I~ Emnlo'=ent I ~ Food Stamns I ~
Unemnlovment Ins If Pension/Retire I ~ Alimonv I ~
Child Sunnort I~ OtherlReal Pron. I ~
Total Monthly Income: $ Total Annual Income $
2009 Income Level Number of Persons Per Household
(Subject to annual change) I I 2 I 3 I 4 I 5 I 6 I 7 I 8
Household Annual Income May Not Exceed:
120% Median Income I 54,200 I 61,900 I 69,650 I 77,400 I 83,600 I 89,800 I 96,000 I 102,150
Ethnicity: (Please check all that apply) Optional
o Sf. Citizen(s)-60 or older
o Hispanic
o Black
[ Female Head of Household
[ AsianlPacific
[ White, Non-Hispanic
o Disabled One or More
o American Indian
o Other
I certify under penalty of perjury that the information provided above is correct to the best of my knowledge. I
understand that the inclusion of any willful misrepresentation on this form constitutes ground for rejection of this
application and recapture of any financial benefit I may have received. I authorize the NHSIE and or the
Redevelopment Agency of the City of San Bernardino to examine and to verify any and all information
provided in this application.
Date:
Signature
4823-1567-4116.1
SFR Rehabilitation Loan
Exhibit "J"
Loan Services Agreement
~~~
. L ~INHsIE
~EIGHBDRHDDD
HOUSING SERVICES
DFTHEIMUNDEMPIRE,IIIC
Neighborhood Housing Services
ofthe
Inland Empire, Inc.
1390 North D Street! San Bernardino, CA 92405/ Phone 909-884-6891/ Fax 909-884-8899/ www.nhsie.ore
Single Family Residence Rehabilitation Loan Program
LOAN SERVICES AGREEMENT
Owner Name(s)
Owner Address:
CONGRATULATIONS! You have been awarded the Single Family Residence
Rehabilitation Loan (the "Loan") under and pursuant to the Single Family Residence
Rehabilitation Loan Program (the "Program") from the Redevelopment Agency of the City of San
Bernardino (the "Agency") in concert with the Neighborhood Housing Services of the Inland
Empire, Inc. (the "NHSIE").
The Loan is deferred (meaning there are no payments); however it does accrue simple
interest at the rate of three (3) percent per annum, until the occurrence of a transfer of title to the
property securing the note, or if you refinance the original loan to use equity or if you sell the
property then repayment will become due and payable. The Loan is evidenced by the promissory
note (the "Note") and secured by the deed of trust with assignment of rents (the "Deed of Trust")
encumbering your home.
The Loan is being made by the Agency to you under the Single
Rehabilitation Loan Program and is in an amount not to exceed $
provided for in Section 5 of the Program Qualifications and Guidelines below).
Family Residence
(except as
NHSIE is authorized by the Agency to administer the Program. Priority is given on an as-
needed, first-come, first-served basis to applicants who have completed necessary paperwork.
However, in the case of an emergency, of an urgent need or of a life-threatening situation, the
NHSIE may process a Loan application (the "Loan Application") ahead of other Loan Applications.
Focus of the work will be to the exterior beautification (curb appeal) of the home and of the front
yard landscaping within limitations. Please be aware that with restricted funds it is not possible to
do everything that everyone wants and it is not possible to address all deficiencies, code and/or
safety items with this Loan. In order to serve as many homes as possible, work priorities will be
decided by the NHSIE on an individual basis. For example, appliance repairs, backyard patios, or
custom items are not covered; front landscaping, roof replacement, fences may be covered.
PROGRAM QUALIFICATIONS & GUIDELINES: Applicants must understand and agree to the
following:
1. Assistance is available to low-moderate income eligible owner-occupants who live in the
City of San Bernardino;
4821-3584-3844.2
SINGLE FAMILY RESIDENCE REHABILITATION LOAN AGREEMENT
2. Homeowner must complete the Loan Application and the Maintenance Needs Application
Document and must submit to the NHSIE the Loan Application, the Maintenance Needs
Application Document and necessary qualifying verifications, as requested;
3. Homeowners must own their home and occupy it as their principal residence for a
minimum of one (1) year prior to the submission of the Loan Application and of the
Maintenance Needs Application Document to the NHSIE;
4. Personal household Income level, adjusted for family size, during the twelve (12) months
preceding the date of submission of the Loan Application and the Maintenance Needs
Application Document must not exceed 120% of county median for low-moderate income
households (the "iow-moderate income"), as determined by the HUD income guidelines for
families, as adjusted from time to time; all household sources of income earned from
persons who are eighteen years and older and who reside in the household as their
principal residence shall be considered;
5. The Loan shall be evidenced by a Promissory Note Secured by Deed of Trust (the "Note")
in the amount of the Loan and secured by a Deed of Trust and Assignment of Rents (the
"Deed of Trust") encumbering the home. The Loan made by the Agency to the
homeowner may not exceed the lesser of: (i) $25,000 or (ii) twenty-five percent (25%) of
the then fair market value of the home as determined by a licensed appraiser approved by
the Agency. The Loan shall also be secured by the Affordable Housing Covenants
Agreement, of even date herewith, by and between the Agency and the Homeowner;
6. Final determination as to the Scope of Work (as defined below) rests with the NHSIE
Redevelopment Specialist, based upon need, extent of work, urgency of situation,
code violations, funding availability and other issues;
7. Homeowners must continue to upkeep their improved property after the work is done, and
show their commitment by signing the RESIDENTIAL PROPERTY MAINTENANCE
AGREEMENT CONTAINING COVENANTS AFFECTING REAL PROPERTY (Single
Family Residence Rehabilitation Loan Program) (the "Covenant Agreement");
8. Homeowners must execute and acknowledge all Loan Documents (as defined in the
Single Family Residence Rehabilitation Loan Program Agreement (the "Rehabilitation
Loan Program Agreement");
9. Homeowners must not have received a loan or grant from the Agency for the past ten (10)
years, all loans made by the Agency, if any, to the homeowner must be paid in full by the
homeowner, and the homeowner must have repaid all grant amounts owned by the
homeowner to the Agency under any prior grant program resulting from the homeowner's
breach under such grant program;
10. Homeowner must agree to attend and must attend a maintenance class conducted by the
NHSIE in connection with the maintenance and upkeep by the homeowner of the home;
11. Homeowners must promise to continue living in their home for ten (10) years after the date
that the Deed of Trust is recorded in the offcial records of the county recorder's office for
the County of San Bernardino, State of California (the "County Recorder's Office"). If the
home is sold or refinanced within ten (10) years after the recordation of the Deed of Trust
482].3584-3844.2
SINGLE FAMILY RESIDENCE REHABILITATION LOAN AGREEMENT
and the Covenant Agreement in the County Recorder's Office, or if the home is no longer
the primary residence of the homeowner, the homeowner at such time must pay the full
Loan amount to the Agency. A copy of your Covenant Agreement will be recorded in the
County Recorder's Office and sent to the Agency as a permanent record.
HIO Initials
SCOPE of WORK: NHSIE will schedule an appointment in your home. During the visit, the
NHSIE Redevelopment Specialist will inquire as to your needs, observe the outside of the
structure, and determine what work can best be accomplished under the Program. One or more
inspections may be necessary, depending on each situation. Photos of the property will be taken
and a Work Write-up (the "Scope of Work") will be prepared. You will be asked to sign a waiver
for the photos and to authorize placement of a NHSIE sign and an Agency sign in your front yard,
to remain during the construction. The work on your home will be scheduied in the coming
weeks.
Role of NHSIE
1. NON-PROFIT ADMINISTRATOR: NHSIE is a private, non-profit 501 (c)(3) corporation, which
provides down-payment and housing assistance programs, homeownership education, and is
committed to reducing neighborhood blight and improving the condition of local housing via
several beautification programs. NHSIE has contracted with the Agency to implement and to
administer the Agency's Program.
2. WORK PERFORMANCE: The Owner will enter into a general contractor agreement (the
"General Contractor Agreement") with a general contractor approved by the NHSIE (the
"General Contractor"). The General Contractor shall complete the Scope of Work in
accordance with the General Contractor Agreement. The General Contractor, without
limitation, shall hire one (1) or more subcontractors, arrange for materials or supply deliveries,
and/or initiate whatever is reasonably necessary to accomplish the Scope of Work in a timely
and professional manner.
3. MODIFICATIONS: The NHSIE Redevelopment Specialist may from time-to-time make
modifications in materials, labor or materials as deemed appropriate for the progress of the
Scope of Work.
4. AUTHORITY TO NHSIE: Homeowner authorizes the NHSIE staff to issue orders and/or
instructions as necessary to initiate and to continue the work, generally based upon the Work
Write-up. In the absence of the homeowner, the NHSIE will issue such instructions needed to
carry out the work and progress towards completion; to stop work when such work appears to
be in violation of code, health and safety matters, or when the work or situation could lead to
obvious injury of persons or property; to stop work that would significantly alter the Scope of
Work, or exceed the project budget or Program limits; and to make decisions considered in
the best interest of the homeowner and/or the Agency.
5. TECHNICAL SERVICES: NHSIE does not charge the homeowner for technical services and
will continue to provide in-progress inspections on site at no cost to the homeowner. The
NHSIE will make every effort to see that contractors, subcontractors and suppliers provide
appropriate materials and deliver services of good quality. The NHSIE can neither assume
liability for, nor guarantee contractor or subcontractor work quality, or failure to adequately
perform on site.
4821-3584-3844.2
SINGLE FAMILY RESIDENCE REHABILITATION LOAN AGREEMENT
6. RESOLUTION OF DISPUTES: Upon written notice from the homeowner or the contractor,
the NHSIE will arrange to meet with the contractor, the subcontractor or the supplier most
directly responsible for the work in question, as well as with the homeowner. The parties will
discuss, examine, decide upon, and approve the disputed issue before it proceeds further.
NHSIE will make reasonable efforts to help the parties resolve the matter. In the absence of
resolution, the Agency has the final determination as to outcome. H/O Initials
Homeowner/s') Responsibilities
1. COOPERATION: Homeowner agrees to cooperate fully with the NHSIE, the assigned
contractors, the sub-contractors and the suppliers during the construction process so that the
work may progress as scheduled.
2. PAPERWORK: It is the homeowner's responsibility to review, approve and sign various
documents (i.e. the Write-up, Scope-of-Work), major change-orders, job completion, and
invoices. Timeliness is of the essence.
3. UTILITIES & INSURANCE: Homeowner agrees to make electric, water and other utilities
available to support the construction activity without charge. Homeowner also agrees to
include the in-progress work and materials under their homeownership insurance policy.
4. ACCESS: Homeowner is responsible for providing regular, safe access to work site as
discussed and pre-arranged at the beginning of the project. The homeowner or a responsible
adult should be available during the work day to respond to questions. No work will be done
when children (under 18) are home alone at the site. The homeowner should provide for and
protect animals and pets by keeping them away from the work site. Aggressive or dangerous
animals should be chained or removed from site during construction. NHSIE is not responsible
to move furniture or owner's belongings. Small or personal items should be put away,
covered, and/or removed from the work site by the homeowner. NHSIE staff will be courteous
and treat homeowner's property with respect; however, the NHSIE accepts no liability for
broken, lost or damaged personal property, furniture, appliances, vehicles, plants, or animals.
H/O Initials
5. PROJECT DELAYS: NHSIE has the right to stop work and to move on to another client if
there are substantial, continued or unwarranted delays due to the homeowner involvement,
over-eagerness, or interference. Any financial liabilities incurred up to that point are those of
the homeowner alone.
6. CONCERNS: As Program administrator, the NHSIE is the homeowner's primary contact
during the job. Please direct any issues, concerns, or questions to the NHSIE Redevelopment
Specialist as soon as possible. NHSIE will contact contractors, subcontractors or suppliers to
address your stated concerns. However, once materials are installed in piace, the ability to
make changes, repairs or replacement is not likely, and could involve other direct costs to the
homeowner, which extend beyond the scope of the Loan.
4821-3584-3844.2
SINGLE FAMILY RESIDENCE REHABILITATION LOAN AGREEMENT
General Provisions
1. Homeowner agrees to hold harmless and indemnify the NHSIE, the Agency, and their
employees, members, officers, directors, agents, employees, contractors, sub-contactors and
consultants, in connection with acts performed by them or omissions that occur under this
Covenant Agreement and/or which would reasonably be associated with consultation,
technical advice, property inspection, and construction activities done in good faith.
2. Homeowner agrees and authorizes the NHSIE staff to obtain and/or to provide specific
reports, property title and tax searches, building code inspection reports, property appraisals,
termite reports, hazardous certifications, repair specifications, cost estimates, contractors
bids, and to initiate inspections and/or materials deemed necessary to adequately perform the
job. NHSIE provides regular progress reports to various agencies, such as the Agency.
3. Whenever the pronouns "I", "my", "me" are used in this Agreement, they shall mean "we",
"our", and "us" respectively, if more than one homeowner is responsible.
AUTHORIZATION AND ACCEPTANCE OF AGREEMENT
In connection with this Loan, in reference to proposed construction services, I hereby declare that
I (we) meet the Program qualifications, understand the guidelines, and accept the terms
described above. I (We) further support and authorize the NHSIE, the Agency and their
designated staff, contractors and/or subcontractors to access and to inspect my property during
normal business hours, to monitor, to supervise, to act as technical assistant, and to perform all
necessary construction activities, for the beautification of my property, which is located at: _
San Bernardino, CA
Owner Signature:
Co-Owner:
Date:
Date:
For: Neighborhood Housing Services of the In/and Empire, /nc,
By:
Date:
"c.... L',."
NelghboiWorks~
CHAItTERED MEM.I!III
4821-3584-3844.2
SFR Rehabilitation Loan
Exhibit "K"
Maintenance Agreement Covenant
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO;
Redevelopment Agency
of the City of San Bernardino
Attn.: Interim Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 9240 I
(Space Above Line Reserved For Use By Recorder)
Recording Fee Exempt Pursuant to Government Code Section 6103
RESIDENTIAL PROPERTY MAINTENANCE AGREEMENT
CONTAINING COVENANTS
AFFECTING REAL PROPERTY
Single Family Residence Rehabilitation Loan Program
THIS RESIDENTIAL PROPERTY MAINTENANCE AGREEMENT CONTAINING
COVENANTS AFFECTING REAL PROPERTY (the "Covenant") is made and entered into as
of ,_2009, by and between the REDEVELOPMENT AGENCY OF THE CITY OF
SAN BERNARDINO, a public body, corporate and politic (the "Agency") and (the
"Owner") and this Covenant relates to the following facts set forth in Recitals;
RECITALS:
WHEREAS, the undersigned is/are the Owner of that certain improved real property
located in the City of San Bernardino, State of California, and more particularly described in
Exhibit "A" attached hereto and incorporated herein by this reference (the "Property"); and
WHEREAS, the Agency and the Neighborhood Housing Services Of The Inland Empire,
Inc., a California non-profit corporation (the "Contractor") executed, delivered and entered into
the Single Family Residence Rehabilitation Loan Program Agreement (the "Rehabilitation Loan
Program Agreement"), dated , 2009; and
WHEREAS, pursuant to the Rehabilitation Loan Program Agreement the Agency has
agreed to make separate loans to Qualified Homeowners (as defined therein) in accordance with
and pursuant to the terms, covellll11ts and conditions of the Rehabilitation Loan Program
Agreement; and
WHEREAS, in accordance with and pursuant to the Rehabilitation Loan Program
Agreement and the Program (as defined in the Rehabilitation Loan Program Agreement), the
Agency has determined that the Owner is eligible to receive a Loan (as defined in the
Rehabilitation Loan Program Agreement) from the Agency to enable the Owner to construct, to
install, to perform and to complete the Improvements (as defined therein) at the Property; and
WHEREAS, as a conditiol\'tu the making of the Loan by the Agency to the Owner, the
Owner must execute and acknowledge, where appropriate, the Loan Documents (as defined in
4849-4026-0100.2
I
the Rehabilitation Loan Program Agreement) including the execution and acknowledgment by
the Owner of this Covenant which Covenant shall be recorded in the County Recorder's Office
(as defined below).
NOW, THEREFORE, IN CONSIDERATION OF THE RECITALS MENTIONED
ABOVE, FOR THE APPROVAL AND FOR THE MAKING OF THE LOAN BY THE
AGENCY TO THE OWNER AND FOR SUCH OTHER GOOD AND VALUABLE
CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY
ACKNOWLEDGED BY THE OWNER AND BY THE AGENCY, THE OWNER AND THE
AGENCY COVENANT AND AGREE AS FOLLOWS:
Section 1. Definitions of Certain Terms. As used in this Covenant, the following
words and terms shall have the meaning as provided in the Recitals or in this Section I unless the
specific context of usage of a particular word or term may otherwise require:
Adjusted Family Income. The words "Adjusted Family Income" mean the anticipated
total annual income (adjusted for family size) of each individualized or family residing or treated
as residing in the Property as calculated in accordance with Treasury Regulation 1.167(k) - 3
(b)(3) under the Code, as adjusted, based upon family size in accordance with the household
income adjustment factors adjusted and amended from time to time, pursuant to Section 8 of the
United States Housing Act of 1937, as amended.
County Recorder's Office. The words "County Recorder's Office" mean the official
records of the county recorder for the County of San Bernardino, State of California.
Covenant. The word "Covenant" means this "Residential Property Maintenance
Agreement Containing Maintenance Covenants Affecting Real Property" by and between the
Owner and the Agency.
Covenant Term. The words "Covenant Term" shall have the meaning set forth in
Section 5.
Low-Moderate Income Family. The words "Low-Moderate Income-Family" means
persons and families whose income does not exceed 120 percent of area median income,
adjusted for family size by the department in accordance with adjustment factors adopted and
amended from time to time by the United States Department of Housing and Urban Development
pursuant to Section 8 of the United States Housing Act of 1937.
Owner. The word "Owner" means the owner of the Property (e.g.: all persons identified
as having property ownership interest vested in the Property).
Successor-In-Interest. The words "Successor-In-Interest" mean and refer to the person
or household, which may acquire the Property from the Owner at any time during the Covenant
Term by purchase, assignment, transfer or otherwise. The Successor-In-Interest shall be bound
by each of the covenants, conditions and restrictions of this Covenant.
4849-4026-0100.2
2
The titles and headings of the sections of this Covenant have been inserted for convenience of
reference only and are not to be considered a part hereof and shall not in any way modify or
restrict the meaning of any of the terms or provisions hereof.
Section 2.
Acknowled!!ments and Representations of the Owner.
The Owner hereby acknowledges and represents that, as the date of execution of this
Covenant:
(a) the total household income for the Owner does not exceed the maximum amount
permitted as Adjusted Family Income for a Low-Moderate Income Family adjusted for family
size;
(b) the Owner intends to occupy the Property after the date of execution of this
Covenant as the principal place of residence for a term of at least ten (10) years following the
date of recordation of this Covenant in the County Recorder's Office and the Owner has not
entered into any arrangement and has no present intention to rent (without the prior written
consent of the Agency), sell, transfer or assign the Property to any third party during the
Covenant Term so as to frustrate the purpose of this Covenant;
(c) the Owner has no present intention to lease or rent any room or sublet or rent a
portion of the Property to any relative of the Owner or to any third person at any time during the
Covenant Term.
Section 3. Maintenance Condition of the Property. The Owner, for itself, its
successors and assigns, hereby covenants and agrees that:
(a) The exterior area of the Property, which are subject to public view (e.g.: all
improvements, paving, walkways, landscaping, and ornamentation) shall be maintained in good
repair and a neat, clean and orderly condition, ordinary wear and tear excepted. In the event that
at any time during the term of the Covenant Term, there is an occurrence of an adverse condition
on any area of the Property which is subject to public view in contravention of the general
maintenance standard described above (a "Maintenance Deficiency") then the Agency shall
notify the Owner in writing of the Maintenance Deficiency and give the Owner thirty (30)
calendar days from the date of such notice to cure the Maintenance Deficiency as identified in
the notice. The words "Maintenance Deficiency" include without limitation the following
inadequate or nonconforming property maintenance conditions and/or breaches of single family
dwelling residential property use restrictions:
. failure to properly maintain the windows, structural elements, and painted exterior
surface areas of the dwelling unit in a clean and presentable manner;
. failure to keep the front and side yard areas of the Property free of accumulated
debris, appliances, inoperable motor vehicles or motor vehicle parts, or free of
storage of lumber, building materials or equipment not regularly in use on the
Property;
48494026-0] 00.2 3
. failure to regularly mow lawn areas or permit grasses planted in lawn areas to
exceed nine inches (9") in height, or failure to otherwise maintain the landscaping
in a reasonable condition free of weed and debris;
. parking of any commercial motor vehicle in excess of 7,000 pounds gross weight
anywhere on the Property, or the parking of motor vehicles, boats, camper shells,
trailers, recreational vehicles and the like in any side yard or on any other parts of
the Property which are not covered by a paved and impermeable surface;
. the use of the garage area of the dwelling unit for purposes other than the parking
of motor vehicles and the storage of personal possessions and mechanical
equipment of persons residing in the Property.
In the event the Owner fails to cure or commence to cure the Maintenance Deficiency
within the time allowed, the Agency may thereafter conduct a public hearing following
transmittal of written notice thereof to the Owner ten (10) calendar days prior to the scheduled
date of such public hearing in order to verify whether a Maintenance Deficiency exists and
whether the Owner has failed to comply with the provision of this Section 3(a). If, upon the
conclusion of a public hearing, the Agency makes a finding that a Maintenance Deficiency exists
and that there appears to be non-compliance with the general maintenance standard, as described
above, thereafter the Agency shall have the right to enter the Property (exterior areas only) and
perform all acts necessary to cure the Maintenance Deficiency, or to take other action at law or
equity the Agency may then have to accomplish the abatement of the Maintenance Deficiency.
Any sum expended by the Agency for the abatement of a Maintenance Deficiency as authorized
by this Section 3(a) shall become a lien on the Property. If the amount of the lien is not paid
within thirty (30) calendar days after written demand for payment by the Agency to the Owner,
the Agency shall have the right to enforce the lien in the manner as provided in Section 3(c).
(b) Graffiti which is visible from any public right-of-way which is adjacent or
contiguous to the Property shall be removed by the Owner from any exterior surface of a
structure or improvement on the Property by either painting over the evidence of such vandalism
with a paint which has been color-matched to the surface on which the pain is applied, or graffiti
may be removed with solvents, detergents or water as appropriate. In the event that graffiti is
placed on the Property (exterior areas only) and such graffiti is visible from an adjacent or
contiguous public right-of-way and thereafter such graffiti is not removed within seventy-two
(72) hours following the time of its application; then in such event and without notice to the
Owner, the Agency shall have the right, but not the obligation, to enter the Property and to
remove the graffiti. Notwithstanding any provision of Section 3(a) to the contrary, any sum
expended by the Agency for the removal of graffiti from the Property as authorized by this
Section 3(b) shall become a lien on the Property. If the amount of the lien is not paid within
thirty (30) calendar days after written demand for payment by the Agency to the Owner, the
Agency shall have the right to enforce its lien in the manner as provided in Section 3( c).
(c) The parties hereto further mutually understand and agree that the rights conferred
upon the Agency under this Section 3 expressly include the power to establish and enforce a lien
or other encumbrance against the Property in the manner provided under Civil Code Sections
2924, 2924b and 2924c in the amount as reasonably necessary to restore the Property to the
4849.4026.0100.2
4
maintenance standard required under Section 3(a) or Section 3(b), including attorneys' fees and
costs of the Agency associated with the abatement of the Maintenance Deficiency or the removal
of graffiti and the collection of the costs of the Agency in connection with such action. In any
legal proceeding for enforcing such a lien against the Property, the prevailing party shall be
entitled to recover its attorneys' fees and costs of suit. The provisions of this Section 3 shall be a
covenant running with the land for the Covenant Term and shall be enforceable by the Agency in
its discretion, cumulative with any other rights or powers granted by the Agency under
applicable law. Nothing in the foregoing provisions of this Section 3 shall be deemed to
preclude the Owner from making any alterations, additions, or other changes to any structure or
improvement or landscaping on the Property, provided that such changes comply with the zoning
and development regulations of the City of San Bernardino and other applicable law.
(d) Any lien in favor ofthe Agency as may arise under this Section 3 will not become
effective until such time as the Agency records a "Notice of Lien" in the official records of San
Bernardino County which references this Section 3 of this Covenant. Any lien in favor of the
Agency created pursuant to this Section 3 shall be subject to the lien or charge of any mortgage,
deed of trust or other financing or security instrument made in good faith and for value in favor
of an institutional lender prior to the date of such Notice of Lien. In the event of a foreclosure of
such a deed of trust or other lien which predates such Notice of Lien, or in the event of an
acceptance of a deed in lieu of foreclosure, the Agency lien evidenced by such a Notice of Lien
which has accrued up to the date of foreclosure or the acceptance of a deed in lieu of foreclosure
shall be extinguished, and the foreclosure purchaser or deed in lieu grantee shall take title in the
Property free of the Agency lien evidenced by the Notice of Lien; provided however, any such
successor of a security interest in the Property during the Covenant Term shall be subject a new
lien of the Agency arising under of this Section 3 for all charges that may accrue under this
Section 3 subsequent to the foreclosure or deed given in lieu of foreclosure during the Covenant
Term.
Section 4. Covenants to Run With the Land. The Owner and the Agency hereby
declare their specific intent that the covenants, reservations and restrictions set forth herein are
part of a plan for the promotion and preservation of affordable single family housing within the
territorial jurisdiction of the Agency and that each shall be deemed covenants running with the
land and shall pass to and be binding upon the Property and each Successor-In-Interest of the
Owner in the Property for the Covenant Term. The Owner hereby expressly assumes the duty
and obligation to perform each of the covenants and to honor each of the reservations and
restrictions set forth in this Covenant. Each and every contract, deed or other instrument
hereafter executed covering or conveying the Property or any interest therein shall conclusively
be held to have been executed, delivered and accepted subject to such covenants, reservations,
and restrictions, regardless of whether such covenants, reservations and restrictions are set forth
in such contract, deed or other instrument.
Section 5. Covenant Term. The words "Covenant Term" mean and refer to the
period of time when this Covenant shall be in effect. Following its recordation, this Covenant
shall be in effect for ten (10) years thereafter. This Covenant shall run with land and shall be
enforceable by the Agency and by the City of San Bernardino, as the successor public agency to
the Agency.
4849-4026-0100.2
5
Section 6.
State of California.
Governin!! Law. This Covenant shall be governed by the laws of the
Section 7.
instrument executed
Agency.
Amendment. This Covenant may be amended only by a written
by the Owner (or the Successor- In- Interest, as applicable) and by the
Section 8. Attornevs' Fees. In the event that the Agency brings an action to enforce
any condition or covenant, representation or warranty in this Covenant or otherwise arising out
of this Covenant, the prevailing party in such action shall be entitled to recover from the other
party reasonable attorneys' fees to be fixed by the court in which a judgment is entered, as well
as the costs of such suit. For the purposes of this Section 8, the words "reasonable attorneys'
fees" in the case ofthe Agency include the salaries, costs and overhead of the lawyers employed
in the Office of the City Attorney of the City of San Bernardino.
Section 9. Severabilitv. If any provision of this Covenant shall be declared invalid,
inoperative or unenforceable by final judgment or decree of a court of competent jurisdiction
such invalidity or unenforceability of such provision shall not affect the remaining parts of this
Covenant which are hereby declared by the parties to be severable from any other part which is
found by a court to be invalid or unenforceable.
Section 10. Time is of the Essence. For each provision of this Covenant which states
a specific amount of time within which the requirements thereof are to be satisfied, time shall be
deemed to be of the essence.
Section 11. Notice. Any notice required to be given under this Covenant shall be
given by the Agency or by the Owner, as applicable, by personal delivery or by First Class
United States mail at the addresses specified below or at such other address as may be specified
in writing by the parties hereto:
If to the Agency:
Redevelopment Agency of the City of San Bernardino
Attention: Interim Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 9240 I
Phone: (909) 663-1044
If to the Owner:
San Bernardino. CA 9240
Phone #909
Notice shall be deemed given five (5) calendar days after the date of mailing to the party, or, if
personally delivered, when received by the Interim Executive Director of the Agency or the
Owner, as applicable. Each party may change its address by notifying the other party, in writing,
of the party's new address.
Section 12. Recitals. The Recitals set forth in this Covenant are true and correct and
are incorporated herein by this reference.
4849-4026-0100.2
6
IN WITNESS WHEREOF, the Owner and the Agency have caused this Covenant to be
signed, acknowledged and attested on their behalf by duly authorized representatives in
counterpart original copies which shall upon execution by all of the parties be deemed to be one
original document, all as of the date first written above.
OWNER
Date:
By:
Print:
By:
Print:
AGENCY
Redevelopment Agency
of the City of San Bernardino
Date:
By:
Carey K. Jenkins, Director of Housing and
Community Development
[ALL SIGNATURES MUST BE NOTARIZED]
Approved as to Form:
By:
Agency Counsel
4849-4026-0100.2
7
EXHIBIT "A"
Legal Description of the Property
4849-4026-0100.2
8
SFR Rehabilitation Loan
Exhibit "L"
Promissory Note
REDEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
PROMISSORY NOTE (the "Note")
SECURED BY DEED OF TRUST
(Deferred Loan - Single Family Residence Rehabilitation Loan Program)
NOTE: This Note requires repayment of the principal sum, plus interest, plus
attorneys' fees, court costs and other fees and amounts due under this Note
and the other Agency Loan Documents (as defined below) (the "Loan
Amount"), if certain events occur.
$<<Amounb> Place: The Redevelopment Agency of
The City of San Bernardino
201 North "E" Street, Suite 301
San Bernardino, CA 92401
<<HusbandFirstName>> <<LastName>>
<<WifeFirstName>> <<LastName>>
<<Address1>>
<<City>> <<State>>, <<PostaICode>>
Date: <(Date>>
FOR VALUE RECEIVED, the undersigned maker ("Maker") jointly and severally
promise(s) to pay to the Redevelopment Agency of the City of San Bernardino, a public
body, corporate and politic (the "Agency"), or order, the principal sum of
<<Writtenamount>> ($<<Amount>>), to pay interest on the unpaid principal amount of this
Note and to pay attorneys' fees, court costs, fees and other amounts due under this Note
and the other Agency Loan Documents (the "Agency Loan"), as follows:
The Note shall have a term of years commencing on the date of
this Note and ending on (the "Maturity Date"). On the Maturity Date,
the Loan Amount shall be due and payable by the Maker to the Agency.
Interest on this Note shall accrue at the rate of Three Percent (3%) simple interest
per annum, commencing upon the date of this Note. All payments of principal and all
interest accruing thereon shall be deferred until the occurrence of one of the following
events: (i) a transfer of title to the property (the "Property") securing this Note (as
described in the Due on Sale Provisions below) (except for a transfer of title by the Maker
to an approved Successor-In-Interest (as defined in the Affordable Housing Covenants
Agreement, of even date herewith, by and between the Maker and the Agency (the
"Affordable Housing Covenants Agreement")), by the Maker, within ten (10) years after the
execution date of this Note, (ii) the Property is no longer the primary residence of the
Maker, and/or (iii) the Maker refinances the Agency Loan (the "Agency Loan Refinancing")
evidenced by this Note and secured by the deed of trust with assignment of rents, of even
date herewith, as executed and acknowledged by the Maker, as trustor, in favor of the
Agency, as beneficiary (the "Deed of Trust") and/or the Maker refinances the Senior Loan
4844-0083-9684.2
(as defined in the Affordable Housing Covenants Agreement) and secured by the Senior
Deed of Trust (as defined in the Affordable Housing Covenants Agreement) (the "Senior
Loan Refinancing").
Payments shall be made to the Agency in lawful money of the United States of
America at the principal office of the Agency, 201 North "E" Street, Suite 301, San
Bernardino, California 92401, or at such other place as may from time to time be
designated by the Agency. All payments on this Note shall be applied first to all attorneys'
fees, court costs, fees and other amounts due under this Note and under the Deed of
Trust, then to the accrued and unpaid interest due on the Note and then to the principal
due on this Note.
Principal may be prepaid in whole or in part at any time without penalty.
In no event shall the total interest and late charges, if any, payable hereunder
exceed the maximum amount of interest permitted under the usury laws of the State of
California.
Notwithstanding any provIsion in this Note to the contrary, the Loan Amount
evidenced by this Note and secured by the Deed of Trust shall be forgiven by the Agency
provided the Maker continuously resides at the Home as its primary residence for a
period often (10) years from and after the date of this Note.
This Note is secured by the Deed of Trust of even date signed by Maker naming the
Agency as Beneficiary, and duly filed for record in the office of the County Recorder of
the County of San Bernardino.
If this Note is not paid when due, whether at maturity or by acceleration, or if it is
collected through bankruptcy, probate, or other legal or quasi-legal proceeding whether
before or after maturity, the Maker agrees to pay all costs of collection, including, but not
limited to, reasonable attorneys' fees and court costs.
Should the Maker, at any time after the date of this Note, be in default or breach of
any of the terms or conditions of any of the following: (i) this Note, (ii) the Deed of Trust,
(iii) the Affordable Housing Covenants Agreement, (iv) the Residential Properly
Maintenance Agreement Containing Covenants Affecting Real Property (Single Family
Residence Rehabilitation Loan Program) (the "Maintenance Agreement"), executed and
acknowledged by and between the Maker and the Agency, (v) any other instruments,
documents or agreements evidencing, securing, guaranteeing or relating to the loan
evidenced by the Note and secured by the Deed of Trust encumbering the Properly
(collectively, the "Agency Loan Documents"), and/or (vi) the Senior Loan Documents (as
defined in the Affordable Housing Covenants Agreement), or anyone of them, the entire
unpaid principal balance of this Note, all accrued and unpaid interest thereon and all
attorneys' fees, court costs, fees and amounts due under this Note and the other Agency
Loan Documents (as defined in the Affordable Housing Covenants Agreement) shall, at
4844-0083-9684.2
9/28/2009
the option of the Agency, and without demand or notice, become immediately due and
payable.
Due on Sale Provisions:
in the event that the Maker should sell, transfer, or otherwise convey the real
property securing this Note, whether voluntarily or by operation of law, or as a result
of the death of the Maker, and whether by deed, contract of sale, or otherwise, or
the agreement to do so, at any time within the first ten (10) years after the execution
by the Maker of this Note, other than a sale, transfer or conveyance to a
Successor-in-Interest who has been approved in writing by the Agency, or the
refinancing by the Maker of the Agency Loan and/or of the Senior Loan, then all
obligations secured by this Note, irrespective of the maturity dates expressed
herein, shall, at the option of the Agency, immediately become due and payable.
In the event that the Property securing this Note which now or hereafter may be
encumbered by the Deed of Trust shall cease to be the Maker's primary residence,
then all obligations secured by this Note, irrespective of the maturity dates
expressed herein, shall, at the option of the Agency, immediately become due and
payable.
In the event that the Maker shall further encumber the Property securing this Note,
or otherwise cause a reduction in priority which the Deed of Trust securing this Note
enjoys as of the date of its recordation, then all obligations secured by this Note,
irrespective of the maturity dates expressed herein, shall, at the option of the
Agency, immediately become due and payable.
None of the provisions hereof and none of the Agency's rights or remedies hereunder on
account of any past or future default shall be deemed to have been waived by any
indulgence granted by the Agency to the Maker.
Maker hereby waives demand, protest, and notice of demand and protest, and the Maker
hereby waives, to the extent authorized by law, any and all homestead and other
exemption rights that otherwise would apply to the debt evidenced by this Note.
The Maker has executed this Note as of its date.
"Maker"
4844.0083-9684.2
9/28/2009
REDEVELOPMENT AGENCY OF THE CITY OF
SAN BERNARDINO
MOBILE HOME GRANT PROGRAM AGREEMENT
(HOME Funds)
THIS MOBILE HOME GRANT PROGRAM AGREEMENT (the "Agreement") is made
and entered into this 29th day of June, 2009 (the "Effective Date"), by and between the
NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE, INC., a California
non-profit corporation (the "Contractor") and the REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO (the "Agency"), a public body, corporate and politic. The
Agency and the Contractor agree as follows;
RECITALS
WHEREAS, the Agency and the Contractor have previously entered into the Single
Family Beautification Loan/Grant And Mobile Home Grant Programs (Low-Moderate Housing
Fund and HOME Fund), dated as of February 7, 2005, as modified by that certain Amendment
No. I To The Single-Family Beautification Loan/Grant And Mobile Home Grant Program, dated
as of June 4, 2007, by and between the Agency and the Contractor (collectively, the "Loan and
Grant Agreement"); and
WHEREAS, the Loan and Grant Agreement provides for the following; (i) loan funds
(the "Rehabilitation Loan Program") and grant funds (the "Beautification Grant Program") to
low-moderate income homeowners who reside in the City of San Bernardino (the "City"), in the
County of San Bernardino (the "County"), in the State of California (the "State") to permit such
homeowners to undertake certain housing rehabilitation and correction work, including, without
limitation, asbestos and lead containing materials abatement work, handicap accessibility
improvements and utility energy improvements as described in the Loan and Grant Agreement,
to single family residential dwelling units owned and occupied by such low-moderate
homeowners, and (ii) grant funds (the "Mobile Home Grant Program") to low-income owners of
mobile homes who reside in the City, in the County and in the State to permit, without limitation,
such low-income mobile home owners to make repairs and improvements to their mobile homes
in accordance with the Loan and Grant Agreement); and
WHEREAS, the Agency and the Contractor have previously entered into the Home
Agreement, dated June 4, 2007 (the "Homebuyer Education Program Agreement"), wherein the
Contractor, without limitation, administers, implements and conducts a Homebuyer Education
Program (as defined therein); and
WHEREAS, the Rehabilitation Loan Program, the Beautification Grant Program, the
Mobile Home Grant Program and the Homebuyer Education Program promote and expand the
supply of affordable housing in the City and foster the elimination and prevention of blight; and
WHEREAS, the Agency and the Contractor would like to amend the Homebuyer
Education Program Agreement pursuant to the First Amendment (as defined below) and to
execute, to deliver and to perform under a new and separate agreement for each of the
4812-7014-0931.4
I
Rehabilitation Loan Program, for the Beautification Grant Program and for the Mobile Home
Grant Program; and
WHEREAS, the Agency and the Contractor desire to terminate the Loan and Grant
Agreement and to replace the Loan and Grant Agreement with each of the following three (3)
new and separate agreements: (i) the Single Family Beautification Grant Program Agreement
(the "Beautification Grant Program Agreement") which provides grant funds to low-moderate
income homeowners who reside in the City, in the County and in the State to permit such
homeowners to undertake certain housing rehabilitation and correction work as described in the
Beautification Grant Program Agreement, to single family residential dwelling units owned and
occupied by such low-moderate homeowners, (ii) the Single Family Rehabilitation Loan
Program Agreement (the "Rehabilitation Loan Program Agreement") which provides loan funds
to low-moderate income homeowners who reside in the City, in the County and in the State to
permit such homeowners to undertake certain housing rehabilitation and correction work as
described therein, to single family residential dwelling units owned and occupied by such low-
moderate homeowners, and (iii) this Agreement which provides grant funds to low-income
owners of mobile homes who reside in the City, in the County and in the State to permit, without
limitation, such low-income mobile home owners to make repairs and improvements to their
mobile homes in accordance with this Agreement; and
WHEREAS, the Agency and the Contractor have determined that this Agreement, the
Rehabilitation Loan Program Agreement, the Beautification Grant Program Agreement and the
Homebuyer Education Program Agreement, as amended, will promote and expand the supply of
affordable housing in the City and will foster the elimination and prevention of blight; and
WHEREAS, the Loan and Grant Agreement shall not be terminated until the Agency and
the Contractor have entered into and executed this Agreement, the Rehabilitation Loan Program
Agreement, the Beautification Grant Program Agreement and the Amendment No. I (the "First
Amendment") to the Homebuyer Education Program Agreement.
NOW, THEREFORE, IN CONSIDERATION OF THE RECITALS
MENTIONED ABOVE, THE MUTUAL PROMISES OF THE AGENCY AND OF THE
CONTRACTOR IN THIS AGREEMENT AND FOR OTHER GOOD AND VALUABLE
CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY
ACKNOWLEDGED BY THE AGENCY AND BY THE CONTRACTOR, THE AGENCY
AND THE CONTRACTOR AGREE AS FOLLOWS:
Section 1. DEFINITIONS OF CERTAIN TERMS. In addition to the words and
phrases, which are defined in the Recitals of this Agreement and/or in this Agreement, the
following words and terms shall have the meaning set forth below:
"County Recorder's Office" means and refers to the county recorder's office for
the County of San Bernardino, State of California.
"Environmental Laws" mean and refer to all applicable federal, state, municipal
and local laws, statutes, codes, ordinances, rules, regulations, orders and
4812-7014-0931.4
2
4S12-7014-0931.4
judb'l11ents relating to the protection or clean-up of the environment, the use,
treatment, storage, transportation, generation, manufacture, processing,
distribution, handling or disposal of, or emission, discharge or other release or
threatened release of hazardous substances, the preservation or protection of
waterways, groundwater, drinking water, air, wildlife, plants or other natural
resources, the health and safety of persons, or the protection of the health and
safety of employees, now or hereafter existing, as the same may be amended,
modified or supplemented from time to time, including, without limitation: the
Clean Air Act, as amended, 42 U.S.C. Section 7401 et seq.; the Federal Water
Pollution Control Act, as amended, 33 U.S.C. Section 1251 et seq.; the Resource
Conservation and Recovery Act of 1976, as amended, 42 U.S.C. Section 6901 et
seq.; the Comprehensive Environment Response, Compensation and Liability Act
of 1980, as amended (including the Superfund Amendments and Reauthorization
Act of 1986, "CERCLA"), 42 U.S.C. Section 9601 et seq.; the Toxic Substances
Control Act, as amended, 15 U.S.C. Section 2601 et seq.; the Occupational Safety
and Health Act, as amended, 29 U.S.C. Section 651, the Emergency Planning and
Community Right-to-Know Act of 1986, 42 U.S.c. Section 11001 et seq.; the
Safe Drinking Water Act, as amended, 42 U.S.C. Section 300f et seq.; the
California Health and Safety Code (s 25100 et seq., S 25249.5 et seq., S 39000 et
seq.); the California Water Code (s 13000 et seq.); the California Environmental
Quality Act ("CEQA"); the California Public Resources Code; all comparable
state and local laws, laws of other jurisdictions or orders and regulations; and any
and all common law requirements, rules and bases of liability regulating, relating
to or imposing liability or standards of conduct concerning pollution or protection
of human health or the environment, as now or may at any time hereafter be in
effect.
"Executive Director" means and refers to the Interim Executive Director of the
Agency and his or her authorized representatives.
"General Contractor Agreement" means and refers to the Mobile Home Grant
Program General Contractor Agreement by and between the Qualified
Homeowner and the contractor identified therein (the "General Contractor") as
approved, in writing, by the Contractor. The General Contractor Agreement
relates, without limitation, to the construction, installation and completion by the
General Contractor of the Work described in the General Contractor Agreement.
The General Contractor Agreement shall be executed by and between the
Qualified Homeowner and the General Contractor and shall be accepted, in
writing, by the Contractor. The General Contractor Agreement shall be
substantially similar to the General Contractor Agreement attached hereto and
incorporated herein by this reference as Exhibit "ii".
"Grant" means and refers to each grant transaction approved, granted and made
by the Agency to or for the benefit of the Qualified Homeowner in accordance
with this Agreement. Each Grant made by the Agency to the Qualified
Homeowner may not exceed Five Thousand Dollars ($5,000). The Qualified
3
41\12-7014-093[.4
Homeowner shall pay all amounts that exceed the Grant Funds paid by the
Agency for the benefit of the Qualified Homeowner under the Program to enable
the Qualified Homeowner to complete the Improvements in connection with the
Qualified Homeowner's Mobile Home. For each year during the term of this
Agreement, the Contractor will attempt to approve, complete, process, conduct
and finalize a minimum of thirty-two (32) Grants.
"Grant Application" means and refers to the Mobile Home Grant Program
Application as fully completed and executed by the Qualified Homeowner. The
Grant Application shall be submitted by the Qualified Homeowner to the
Contractor and the Contractor shall verify that the Grant Application is complete.
Each Grant Application shall contain the information relating to the Qualified
Homeowner and the proposed use of the Grant Funds by the Qualified
Homeowner. The Contractor shall require all Qualified Homeowners to complete
the Grant Application substantially similar to the Grant Application attached
hereto and incorporated by reference as Exhibit "D."
"Grant Approval Agreement" means and refers to the Mobile Home Grant
Program Work Approval and Fund Release Agreement by and between the
Qualified Homeowner and the Contractor. The Grant Approval Agreement,
without limitation, notifies the Qualified Homeowner that the Agency has
awarded the Grant to the Qualified Homeowner. The Grant Approval Agreement
must be executed by the Qualified Homeowner and by the Contractor and must be
substantially similar to the Grant Approval Agreement attached hereto and
incorporated herein by this reference as Exhibit "E.".
"Grant Disbursement Account" means and refers to a separate custodial deposit
account, which the Contractor shall establish with an FDIC-insured depository
institution for the receipt and disbursement of the Grant Funds in connection with
the approval, granting and making by the Agency to the Qualified Homeowner of
the Grant under the Program in accordance with this Agreement. Such deposit
account agreement among the Contractor, the Agency and such depository
institution shall be in a form and substance as reasonably satisfactory to the
Agency. The Contractor shall create and maintain a separate Grant Disbursement
Account for each Grant approved, granted and made by the Agency for the benefit
of each Qualified Homeowner. No other funds of the Contractor shall be
deposited or co-mingled in the Grant Disbursement Account. The Contractor
shall serve as the trustee of the Agency in the administration of all of the Grant
Funds or deposit in each Grant Disbursement Account, including any interest as
may accrue thereon.
"Grant Documents" mean and refer to the following: (i) the Grant Application,
(ii) the Mobile Home Repairs Document, (iii) the Grant Approval Agreement, and
(iv) this Agreement and such other agreements, documents, instruments and/or
certifications relating to or in connection with the Grant to the Qualified
Homeowner, the Grant Funds and/or the Grant Disbursement Account.
4
4812-7014-0931.4
"Grant Funds" mean and refer to the funds delivered by the Agency to or for the
benefit of a Qualified Homeowner in connection with the Grant that the Agency
has approved and granted to the Qualified Homeowner in accordance with this
Agreement. Each Grant made by the Agency to the Qualified Homeowner may
not exceed Five Thousand Dollars ($5,000). The Qualified Homeowner shall
timely pay all amounts that exceed the Grant Funds paid by the Agency to or for
the benefit of the Qualified Homeowner under the Program in order to construct,
install, perform andlor complete the Improvements in connection with the
Qualified Homeowner's Mobile Home.
"Hazardous Substances" mean and refer to any pollutant, contaminant, waste and
any toxic, carcinogenic, reactive, corrosive, ignitable, flammable or infectious
chemical, chemical compound or substance or otherwise hazardous wastes, toxic
or contaminated substances or similar materials, including, without limitation, any
quantity of asbestos, urea formaldehyde, PCBs, radon gas, lead, lead-based paint,
crude oil or any fraction thereof, all forms of natural gas, petroleum products, by-
products or derivatives, radioactive substances, methane, hydrogen sulfide or
materials, pesticides, waste waters, or sludges, any of the above of which are
subject to regulation, control or remediation under any Environmental Laws.
"HOME Funds Program" means and refers to that certain Home Investment
Partnership Program as set forth at 24 Code of Federal Regulations, part 92, et
seq., from which the Agency will make and will fund the Grant to and for the
benefit of the Qualified Homeowner. The Agency and the Contractor will offer
the Grant to a Qualified Homeowner who earns not more than eighty percent
(80%) of the current annual median income for the San Bernardino County area,
adjusted for family size (as those terms are defined by California Health and
Safety Code Section 50053.5) as further illustrated in Exhibit "A" of this
Agreement (the "2009 Income Limits") and subject to annual adjustments.
"Improvements" mean and refer, without limitation, to the following types of
eligible improvements to the Qualified Homeowner's Mobile Home that will be
permitted under the Program: (i) roof replacement (metal aluminum, composition
shingle, including carport and awnings), and (ii) replacement of siding and
skirting, patios and porches, stair units (carpet and handrails), carport columns,
water heaters, HV AC, evaporative cooling units, ceilings paneling (interior), sub-
flooring repair and finished floors, retiigeration units and counter tops, handicap
fixtures and units, appliances (limited to stovetops, wall ovens, exhaust hoods),
doors and windows.
"Laws" mean and refer to all federal, state, municipal and local laws, statutes,
codes, ordinances, regulations, rules, orders or judgments, now or hereafter in
effect, as amended from time to time, including, without limitation, the
Environmental Laws, all applicable building, plumbing, mechanical, electrical
and health and safety codes and City ordinances.
5
4812-7014-0931,4
"Lead Based Paint Acknowledgment" means and refers to the "Lead Based Paint
Acknowledgment of Receipt" as executed by the Qualified Homeowner and the
General Contractor. The Lead Based Paint Acknowledgment acknowledges
receipt by the Qualified Homeowner of the Lead Based Paint Pamphlet from the
General Contractor. The Lead Based Paint Acknowledgment is attached hereto
and incorporated herein by this reference as Exhibit "r:".
"Lead Based Paint Disclosure" means and refers to the "Lead Based Paint
Disclosure" by and between the Qualified Homeowner and the General
Contractor. The Lead Based Paint Disclosure is to be executed by the General
Contractor and by the Qualified Homeowner and is attached hereto and
incorporated herein by this reference as Exhibit "Gl-".
"Low Income Housing Funds" mean and refer to the Low Income Housing Funds
that the Agency intends to use to make the Grant to or for the benefit of the
Qualified Homeowner in accordance with this Agreement. The Agency and the
Contractor will offer the Grant to a Qualified Homeowner who earns not more
than eighty percent (80%) of the current annual median income for the San
Bernardino County area, adjusted for family size (as those terms are defined by
California Health and Safety Code Section 50053.5) as further illustrated in
Exhibit "A" of this Agreement and subject to annual adjustments.
"Mobile Home" means and rcfcrs to the mobile home unit (the "Mobile Home
Unit") owned by the Qualified Homeowner and the land on which the Mobile
Home is located, whether such land is owned, leased or used by the Qualified
Homeowner. The Mobile Home Unit must be built on or after 1980, the Mobile
Home must be located in the City and the Qualified Homeowner must reside in
the Mobile Home as its principal residence.
"Mobile Home Repairs Document" means and refers to the Mobile Home Repairs
Document, as fully completed and executed by the Qualified Homeowner in
connection with the Program. The Mobile Home Repairs Document is attached
hereto and incorporated herein by this reference as Exhibit "R".
"Program" means and refers to the program created, administered and maintained
by or for the Agency in connection with the Grant, the disbursement by the
Agency to the Contractor of the Grant Funds to or for the benefit of each
Qualified Homeowner in accordance with this Agreement and the performance
and completion by the Contractor of the Services. Upon written notice from the
Agency, the Contractor shall offer the Program to Qualified Homeowners in the
specific Target Area or Targct Areas as may be designated, in writing, by the
Agency to the Contractor from time to time during the term of this Agreement. In
the absence of specific direction from the Executive Director of the Agency, the
Contractor shall offer the Program on an as-needed, first-come, first-served basis,
to Qualified Homeowners throughout the City for the term of this Agreement.
6
48]2-7014-0931.4
However, in case of an emergency, of an urgent need or of a life-threatening
situation, the Contractor may process a Grant Application ahead of other Grant
Applications subject to the approval by the Executive Director.
"Oualified Homeowner" means and refers to: (i) a person or household which
owns the Mobile Home Unit and occupies the Mobile Home as its principal
residence within the City or within a Target Area of the City, as may be
specifically designed, in writing, from time to time by the Agency for at least
twelve (12) continuous months preceding the date of submission of its Grant
Application and its Mobile Home Repairs Document to the Contractor, (ii) has a
personal or household income level, adjusted for family size, during the twelve
(12) months preceding the date of submission of its Grant Application and its
Mobile Home Repairs Document to the Contractor within the ranges of income
for low income households, adjusted for family size, as set forth in Exhibit "A",
(iii) must complete, execute and submit the Grant Application to the Contractor,
(iv) must agree to live in its Mobile Home, as its principal residence, for not less
than one (1) year after the execution by the Qualified Homeowner of the Grant
Documents, (v) must execute and acknowledge, where appropriate, all Grant
Documents, (vi) must have received written notice from the Agency, from the
City or from any other governmental authority, including, without limitation, the
City's Building and Safety Division, advising the Qualified Homeowner that the
Mobile Home Unit owned by the Qualified Homeowner is in violation of Title 25
of the Mobile Home Park Act and/or is in violation of any other applicable
legislation, local codes or other Laws, and (vii) must not be the recipient of a loan
or other grant from the Agency for the past ten (10) years. On a case-by-case
basis, the Executive Director of the Agency, in its sole and absolute discretion,
may waive this one (I) year residency requirement.
"Services" mean and refer, without limitation, to the Program ongmation, the
preparation, execution and delivery of the Grant Documents, the Grant Fund
disbursement control, related accounting, Work monitor (course of construction
builder contract) services and other services to be provided by the Contractor to or
for the benefit of the Agency in accordance with this Agreement. The various
elements of the Services are more fully set forth in the "Scope of Services"
attached hereto as Exhibit "C." For each year of the Agreement, the Contractor
will attempt to approve, complete, process, conduct and finalize thirty-two (32)
Grants to Qualified Homeowners.
"Target Area" or "Target Areas" mean and refer to the specific area, areas,
neighborhood or neighborhoods in the City in which the Agency has instructed
the Contractor to offer the Program to Qualified Homeowners to better maximize
the effectiveness of the Grant Funds, or in any other specific area, areas,
neighborhood or neighborhoods hereinafter created by the Agency and/or
throughout the City, excluding County territory, as amended from time to time by
the Agency in its sole and absolute discretion. Should the Agency request the
Contractor to offer the Program to a specific Target Area or Target Areas, the
7
Agency shall consult with and provide in writing the Target Area or Target Areas
to the Contractor. The Contractor shall then offer the Program to Qualified
Homeowners in the specific Target Area or Target Areas until the Contractor is
otherwise advised in writing from the Agency, as such Target Area or Target
Areas may be adjusted and amended from time by the Agency in its sole and
absolute discretion. In the absence of specific direction from the Executive
Director of the Agency, the Contractor shall offer the Program on an as-needed,
first-come, first-served basis, to Qualified Homeowners throughout the City.
However, in the case of an emergency, of an urgent need or of a life-threatening
situation, the Contractor may process a Grant Application ahead of other Grant
Applications subject to the approval of the Executive Director.
"Work" means and refers, without limitation, to the Improvements, or any part
thereof, to be constructed, installed, performed and/or completed by a state-
licensed General Contractor on, at or in connection with each Mobile Home
pursuant to the terms, covenants and conditions of the General Contractor
Agreement. Only the Improvements and/or the items of Work set forth in the
General Contractor Agreement shall be authorized for payment by the Contractor,
up to the maximum amount authorized under the terms of the Program for such
Improvements, or any part thereof. Any costs of Improvements and/or of the
Work in excess of the maximum amount of the Program which are not the fault of
such General Contractor shall be paid for by the Qualified Homeowner unless
approved in writing by the Executive Director.
Section 2. PERFORMANCE BY CONTRACTOR AND BY AGENCY. The
Contractor and the Agency shall perform the terms, covenants and conditions of this Agreement.
Section 3. SCOPE OF SERVICES. The Contractor agrees to provide the Services
to the Agency as set forth herein, as described in the Scope of Services. Promptly following the
date of approval of this Agreement by the goveming board of the Agency, the Contractor,
without limitation, shall or will continue to:
(A) cause the Grant Disbursement Account to be established, or maintained, and the
general form of an FDIC - insured deposit account agreement acceptable to the Agency to be
fully executed by the Contractor, by the depository institution and by the Agency within thirty
(30) calendar days following the date of approval of this Agreement;
(B) continue to use the general form of the Grant Application in connection with an
application by a Qualified Homeowner for the approval by the Agency to the Qualified
Homeowner of the Grant under the Program in accordance with this Agreement. The applicant
for the Grant must submit to the Contractor federal and state income tax returns filed by the
applicant with the appropriate taxing authorities for the past two (2) years which tax returns must
be acceptable to the Contractor in its sole and absolute discretion;
(C) subject to the completion of the tasks described in Section 3(A) and in Section
3(B) above, continue the process of receiving and reviewing Grant Applications and provide the
4812-7014-0931.4
8
Services as provided for in the Agreement. The Contractor shall offer the Program to Qualified
Homeowners in the Target Area or in the Target Areas specifically determined and designated by
the Agency or, if no Target Area is or no Target Areas are specifically determined and
designated by the Agency, then on an as-needed, first-come, first-served basis, to Qualified
Homeowners throughout the City; provided, however, in the case of an emergency, of an urgent
need or of a life-threatening situation, the Contractor may process a Grant Application ahead of
other Grant Applications subject to the approval of the Executive Director;
(D) transmit a copy of a completed set of the Grant Documents to the Executive
Director of the Agency, together with: (i) a recommendation from the Contractor to the Agency
to approve the Grant Application and the Grant to the Qualified Homeowner, and (ii) a request
from the Contractor to the Agency for a transfer of the Grant Funds by the Agency for the
account of the Qualified Homeowner. The Executive Director shall either authorize the funding
of such Grant or reject the request for funding on behalf of the Agency within ten (10) business
days of receipt from the Contractor. Any rejection of a Grant Application shall be in writing and
shall state the reasons for such action. Each acceptance of a Grant Application by the Agency
shall be evidenced by the signature of the Executive Director of the Grant Documents, where
designated. All Grant Documents shall be completed by the Qualified Homeowner and by the
Contractor, and the disbursement of Grant Funds by the Agency to or for the benefit of the
Qualified Homeowner shall occur within sixty (60) calendar days following the date of
submission by the Contractor to the Executive Director of the funding request, or the Grant
Documents shall be of no further force or effect;
(E) no fees, charges or expenses shall be payable by any applicant to the Contractor
or to the Agency for a Grant, except from the Grant Funds, nor shall the Contractor charge a
Qualified Homeowner for any cost or service in connection with the origination or subsequent
administration of the Grant during the time the Improvements and/or the Work is constructed,
installed, performed and/or completed at the Home, or as authorized under the Program by the
Executive Director;
(F) instruct the Executive Director to transfer the Grant Funds for the account of each
Qualified Homeowner to the Grant Disbursement Account as set forth in Section 3(0), above,
upon confirmation by the Contractor that the Grant Documents for the ProbTfam are executed,
acknowledged, where designated, and complete.
(G) deliver a fully executed and acknowledged, where designated, original set of the
Grant Documents for each Grant to the Agency upon request of funding and transfer of the Grant
Funds for the account of the Qualified Homeowner to the Grant Disbursement Account;
(H) verify that no Grant Funds are disbursed from the Grant Disbursement Account
for the account of a Qualified Homeowner except: (i) to pay a state-licensed General Contractor
and/or state-licensed subcontractor for the Improvements and/or for the Work constructed,
installed, performed and/or completed at the Mobile Home pursuant to the General Contractor
Agreement, less a ten percent (10%) retention pending completion of the Improvements and/or
of the Work and final executed written release of all mechanics and materials liens from the
General Contractor and/or from all subcontractors. No disbursement of the Grant Funds from
4S12-7014-0931.4
9
the Grant Disbursement Account shall be authorized for any building materials or equipment
items which are not physically delivered at the Mobile Home before the date of payment of such
Grant Funds to the General Contractor and/or to the subcontractor or (ii) to pay a Grant title fee
or cost amount expressly authorized in writing by the Executive Director;
(I) prepare and maintain a Grant Funds disbursement ledger for all payments
authorized and made by the Contractor to the General Contractors and/or to the subcontractors
for the account and debit to each Qualified Homeowner under each Grant made by the Agency to
or for the benefit of the Qualified Homeowner in accordance with this Agreement. Such ledger
shall show each payment by date and reference the particular Grant, Grant Documents and name
of the Qualified Homeowner to which it corresponds. Such ledger shall also include a monthly
starting and ending balance for the Grant Disbursement Account, a final reconciliation of the
adjusted balance of each Grant upon the completion of the Improvements and/or of the Work,
and such other accounting information as the Executive Director may request. A copy of such
ledger shall be submitted to the Executive Director each month with the first such monthly
submittal due on the first day of the next month following the date of the initial deposit of the
Grant Funds by the Contractor and/or by the Agency into the Grant Disbursement Account;
(J) No Improvements and/or Work shall be authorized for payment by the Contractor
unless the Grant Documents are complete and the Contractor has received a fully executed copy
of the General Contractor Agreement by and between the General Contractor and the Qualified
Homeowner. Once the Improvements and/or the Work has commenced on a particular Mobile
Home, neither the Qualified Homeowner, the General Contractor nor the subcontractor shall
authorize an amendment or modification of such contract to include any item of Work, which is
not eligible for payment using the Grant Funds under the terms and conditions of the Grant under
the Program. Each such contract by and between the General Contractor and the Qualified
Homeowner, the General Contractor and the subcontractor, and/or the subcontractor and the
Qualified Homeowner shall include a section, which recites the words of the first two (2)
sentences of this Section 3(1).
Section 4. TIME OF PERFORMANCE OF SERVICES. The Services to be
performed hereunder by the Contractor shall be undertaken and completed in such sequence as to
assure expeditious completion and to best carry out the purposes of the Program and this
Agreement. All Services required hereunder shall begin upon the execution of this Agreement.
Section 5. TERM OF AGREEMENT. This Agreement shall take effect upon
approval by the governing board of the Agency and the complete execution by the parties. The
Agreement shall remain in effect through June 30, 2010, subject to annual approval and
appropriation by the United States Department of Housing and Urban Development ("HUD").
Section 6.
COMPENSATION PAYABLE BY AGENCY TO CONTRACTOR.
(A) The Agency shall annually compensate the Contractor for the performance of the
Services using the Low Income Housing Funds in accordance with the following schedule:
4812-7014-0931.4
10
$40,000.00
Annual Program Administration Fee for
CONTRACTOR
$160,000.00
Annual Mobile Home Grant Program
$200.000.00
(8) From and after the Effective Date of this Agreement and for the remaining term of
this Agreement, the Program Administration Fee payable by the Agency to the Contractor as
compensation for Services performed by the Contractor under this Agreement shall be paid by
the Agency directly to the Contractor, payable in twelve (12) equal monthly installments of
$3,333.33 each during the Term of this Agreement, in the aggregate annual amount of $40,000.
The Contractor shall invoice the Agency monthly in equal installments of$3,333.33.
(C) Payment of each monthly installment in the amount of $3,333.33 for the
performance by the Contractor to the Agency of the Services will be made by the Agency to the
Contractor as of the first day of each calendar month with the first such payment due on the first
day of the next calendar month following the date of the complete execution of the Agreement
by the parties.
Section 7. PERSONNEL OF CONTRACTOR. The Contractor represents that it
has, or will secure at its own expense, all personnel required to perform the Services. All of the
Services required hereunder will be performed by persons who are either employed by or under
the supervision and control of the Contractor, and all personnel engaged in the Services shall be
fully competent and qualified to perform such Services.
Section 8. INDEPENDENT CONTRACTOR. All acts of the Contractor and all
others acting on behalf of the Contractor relating to the performance of this Agreement, shall be
performed as independent contractors and not as agents, officers, or employees of the Agency.
The Contractor has no authority to bind or incur any obligation on behalf of the Agency. The
Contractor has no authority or responsibility to exercise any right or power vested in the Agency.
No agent, officer, or employee of the Agency shall be considered an agent or employee of the
Contractor. It is understood by both the Contractor and the Agency that this Agreement shall not
under any circumstance be construed or considered to create an employer-employee relationship
or a joint venture as between the Contractor and the Agency. The Contractor is and at all times
during the Term of this Agreement shall represent and conduct itself as an independent
contractor and not as an agent or employee of the Agency. The Contractor shall be responsible
to the Agency only for the requirements and results specified in this Agreement, and except as
expressly provided in this Agreement, shall not be subject to control by the Agency with respect
to the physical action or activities of the Contractor in fulfillment of this Agreement. The
Contractor has control over the manner and means of performing the Services under this
Agreement so long as consistent with the requirements of the Program. The Contractor is
permitted to provide services to others during the same period Services are provided to the
Agency under this Agreement. If necessary, the Contractor has the responsibility for employing
other persons or firms to assist the Contractor in fulfilling the terms and obligations under this
Agreement. I f in the performance of this Agreement any third persons are retained as
4812-7014--(1931.4
II
subcontractors by the Contractor, such persons shall be entirely and exclusively under the
direction, supervision, and control of the Contractor. All terms of employment including hours,
wages, working conditions, discipline, hiring, and discharging or any other term of employment
or requirements of law shall be determined by the Contractor. The Contractor hereby agrees to
indemnify, defend (if requested by Agency), protect and hold the Agency harmless from any and
all claims that may be made against the Agency or based upon any contention by any employee
of the Contractor or by any third party that an employer-employee relationship or joint venture
exists between any individual or entity and the Agency, by reason of the performance of any of
the Services under this Agreement.
Section 9. PAYMENT OF AND TRANSFER OF GRANT FUNDS TO GRANT
DISBURSEMENT ACCOUNT. The Agency shall promptly honor each request by the
Contractor for the Agency to transfer Grant Funds to the Contractor who will in turn deposit the
Grant Funds to the Grant Disbursement Account to fund each approved Grant as submitted by
the Contractor to the Agency under Section 3(D). Within sixty (60) calendar days following
receipt of each request for remittance of the Grant Funds, the Agency shall transfer by bank
check to the Contractor such Grant Funds to use as provided herein.
Section 10. COMMERCIAL GENERAL LIABILITY INSURANCE. AUTOMOBILE
INSURANCE. WORKERS' COMPENSATION INSURANCE, EMPLOYER'S
LIABILITY INSURANCE. ERRORS AND OMISSIONS AND PROFESSIONAL
LIABILITY INSURANCE.
(A) The Contractor shall obtain and keep in force during the term of this Agreement,
at its sole cost and expense, the following insurance policies: (i) a commercial general liability
policy of insurance with coverage at least as broad as "Insurance Services Office Commercial
General Liability Form (GOOOI)", in the amount of One Million Dollars ($1,000,000) combined
single limit per occurrence, naming the Agency and the City and the elected officials, officers,
employees, attorneys and agents of each of them as additional insureds (collectively, the
"Additional Insureds") with said insurance covering comprehensive general liability including,
but not limited to, contractual liability, assumed contractual liability under this Agreement, acts
of subcontractors, premises-operations, explosion, collapse and underground hazards, if
applicable, broad form property damage, and personal injury including libel, slander and false
arrest, (ii) comprehensive automobile liability insurance covering owned, non-owned and hired
vehicles by or for the Contractor, combined single limit in the amount of One Million Dollars
($1,000,000) per occurrence, naming the Additional Insureds as additional insureds on each
automobile insurance policy, (Hi) workers' compensation insurance in such insurance coverage
amounts as statutorily required, or similar insurance in form and amounts required by law, and
employer's liability insurance, combined single limit in the amount of One Million Dollars
($1,000,000), and (iv) errors and omissions and professional liability, combined single limit in
the amount of One Million Dollars ($1,000,000) per occurrence.
(B) Any and all insurance policies required hereunder shall be obtained from
insurance companies admitted in the State of California and rated at least A: Xli in the most
current Best's Key Rating Insurance Guide. In no event shall the Contractor be permitted or
entitled to assign to any third party rights of action which the Contractor may have against the
48]2-70]4-09][.4
12
Agency. All said insurance policies shall provide that they may not be canceled unless the
Agency and the City receive written notice of cancellation at least thirty (30) calendar days prior
to the effective date of cancellation. Any and all insurance obtained by the Contractor shall be
primary to and shall not be contributing with any insurance carried by the Agency or by the City
whose insurance shall be considered excess insurance only. Any insurance which the Agency
and/or City may otherwise carry, including self insurance, for all purposes of this Agreement
shall be separate and apart from the requirements of this Agreement. Legal counsel for the
Agency must approve each insurance policy required in Section 10(A) of this Agreement. The
Contractor waives subrogation and agrees that the Contractor, the Agency and the City are co-
insured. The insurer shall have no right of subrogation against the Agency, against the City or
against any of the other Additional Insureds. The Additional Insureds shall be named as
additional insureds on each insurance policy.
(C) All insurance which the Contractor shall carry or maintain pursuant to this Section
10 shall be in such form, for such amounts, for such periods of time as the Agency may require
or approve.
(D) The Contractor shall deliver or cause to be delivered to the Agency concurrently
upon the execution of this Agreement an endorsement of the insurance policies required in this
Section IO(A) of this Agreement evidencing the existence of the insurance coverage required by
the Agency under Section IO(A) of this Agreement and shall also deliver, no later than thirty
(30) calendar days prior to the expiration of any insurance policy, a certificate of insurance
evidencing each renewal policy covering the same risks.
Section 11. INDEMNIFICATION.
(A) The Contractor agrees to indemnify, defend with legal counsel reasonably
acceptable to the Agency, protect and hold the City and the Agency, and their respective elected
officials, directors, officers, members, managers, consultants, contractors, employees, agents and
attorneys, and the successors and assigns of each of them (singularly and collectively, the
"Indemnified Parties" which defined term shall also include the City and the Agency), harmless
from and against all actions, causes of action, claims, demands, liabilities, damages, losses,
liabilities, obligations, judgments, suits, costs, expenses and fees (including, without limitation,
reasonable attorneys' fees, court costs and expert fees of any nature whatsoever), now or
hereafter arising from or related to: (i) any act or omission of the Contractor and/or of any of the
Contractor's directors, officers, members, managers, consultants, contractors, subcontractors,
materialmen, laborers, any other person or entity furnishing or supplying work, services, goods,
or supplies in connection with the performance of this Agreement, employees and agents, and the
successors and/or assigns of each of them (singularly and collectively, the "Indemnifying
Parties" which defined term shall also include the Contractor), in performing, or failing to
perform, its obligations hereunder, (ii) any default by the Contractor under this Agreement,
subject to any applicable cure period, (iii) any violation by any of the Indemnifying Parties of
any Laws, (iv) any warranty or representation made by the Contractor to the Agency in this
Agreement that is or becomes false and untrue, (v) death, bodily injury and/or personal injury to
any person, (vi) any destruction, loss or damage to real property or personal property, (vii) the
presence of any Hazardous Substances at, on, in, above, under or about any Mobile Home
41112-7014-0931.4
13
resulting, directly or indirectly, from the acts or omissions of any Indemnifying Parties and/or
(viii) the aggravation of any environmental condition by any Indemnifying Parties at, on, in,
above, under or about any Mobile Home. Without limiting the Contractor's indemnification of
the Indemnified Parties, the Contractor shall provide and maintain, at its sole cost and expense
during the term of this Agreement, the insurance described in Section 10(A) of this Agreement.
Such insurance shall be provided by insurer(s) satisfactory to the Agency and evidence of such
insurance satisfactory to the Agency shall be delivered to the Executive Director no later than the
Effective Date of this Agreement.
(B) The Agency shall indemnify, defend (if requested by the Contractor) and hold
harmless the Contractor, its agents, officers, and employees, from all claims, losses, demands
and liability for damages for bodily injury, personal injury, bodily injury or property damage
suffered by reason of any act or omission of the Agency or any of its officers or employees or
agents under this Agreement except where such action or omission giving rise to such a claim is
caused by or is the result of an action, omission or request of the Contractor and/or of any of the
other Indemnifying Parties, or is alleged to arise out of the execution of this Agreement. The
provisions of Section II (A) and Section II (B) shall survive the execution, delivery,
performance, expiration or early termination of this Agreement.
Section 12. DEFAULTS AND BREACH - GENERAL. The failure or delay by
either party to perform any material term or provision of this Agreement shall constitute a default
hereunder; provided, however, that if the party who is otherwise claimed to be in default by the
other party commences to cure, correct or remedy the alleged default within thirty (30) calendar
days after receipt of written notice specifying such default and shall diligently complete such
cure, correction or remedy, such party shall not be deemed to be in default hereunder. A default
shall also occur under this Agreement whenever a representation and/or warranty made in this
Agreement is or becomes false or untrue. A default shall also occur under this Agreement
whenever a party files, or has filed against it, a petition in bankruptcy, is or becomes insolvent, is
unable to pay its debts as they mature, assigns its assets for the benefit of creditors, or a receiver,
trustee or custodian is appointed by a court to exercise control over all or substantially all of the
assets of the party and such receiver, trustee or custodian is not dismissed or discharged by the
court within sixty (60) calendar days after said appointment date. The party which may claim
that a default has occurred shall give written notice of default to the party in default specifying
the alleged default. Delay in giving such notice shall not constitute a waiver of any default nor
shall it change the time of default; provided, however, the injured party shall have no right to
exercise any remedy for a default hereunder without delivering the written default notice as
specified herein. Any failure to delay by a party in asserting any of its rights and remedies as to
any default shall not operate as a waiver of any default or of any rights or remedies associated
with a default, and the rights and remedies of the parties are cumulative and the exercise by
either party of one or more of such rights or remedies shall not preclude the exercise by it, at the
same or different times, of any other rights or remedies for the same default or any other default
by the other party. In the event that a default of either party may remain uncured for more than
thirty (30) calendar days following written notice, as provided above, a "breach" shall be deemed
to have occurred. In the event of a breach, the party who is not in default shall be entitled to
terminate this Agreement and seek any appropriate remedy or damages by initiating legal
proceedings. If any action or proceeding is brought to enforce the terms hereof or declare rights
4812-7014-0931.4
14
hereunder, it shall be brought in the Superior Court of the County of San Bernardino, San
Bernardino District, State of California. The governing Laws to be applied in any such action or
proceeding shall be the Laws of the State of California. The prevailing party in any such legal
proceedings shall be entitled to recover as an element of its costs of bringing such suit, and not as
part of its damages, its reasonable attorneys' fees, court costs, expert witness fees and consultant
fees and costs. The costs, salary and expenses of the City Attorney and members of his office in
such action or proceeding on behalf of the Agency shall be considered as "attorneys' fees" for
purposes of this Section.
Section 13. NONDISCRIMINATION. During the Contractor's performance of the
Services, the Contractor shall not discriminate on the grounds of race, religion, creed, color,
national origin, age, ancestry, physical handicap, medical condition, marital status, sex, or sexual
orientation in the performance by the Contractor of the Services, including, without limitation, in
the selection and retention of employees, general contractors and subcontractors and the
procurement of materials and equipment, except as provided in Section 12940 of the California
Government Code.
Section 14. CONFLICT OF INTEREST. The Contractor warrants, by execution of
this Agreement, that it has no ioterest, present or contemplated, in the Program or in any Mobile
Home benefited thereby or Work performed on any Mobile Home using the Grant and the Grant
Funds. The Contractor further warrants that it owns or possesses no interest in real property,
business interests or owner of income, other than such amounts of compensation payable by the
Agency to the Contractor for the Services under this Agreement, that will be affected by the
Program or, alternatively, if such interest exists or arises the Contractor will promptly file with
the Agency an affidavit disclosing any such interest.
Section 15. AMENDMENTS. All amendments to this Agreement shall be subject to
the approval of both parties in the sole discretion of each of them, mutual and in writing. The
Executive Director of the Agency is authorized to make non-substantive changes, clarifications,
corrections to the Agreement, including budget line item adjustments, provided such actions are
approved by legal counsel for the Agency and do not increase the Agency's monetary annual
appropriation to the Contractor as approved by the governing board of the Agency.
Section 16. TERMINATION.
(A) This Agreement may be terminated for any reason by either party who is not then
in default upon ten (10) calendar days prior written notice to the other party. In such event, the
Contractor shall be entitled to receive compensation for the Services pro-rated through the date
of such termination, provided that the Services have been rendered.
(B) In the event of a termination of the Agreement as a result of a breach, the rights
and duties of the parties shall be as set forth in Section ]2.
(C) In the event of any termination of this Agreement, the Contractor shall promptly
return all Grant Funds that have been disbursed by the Agency to the Contractor with the
exception of any Grant Funds that have been paid by the Agency to the Contractor and that have
4812-70]4-0931 A
15
been properly disbursed by the Contractor to or for the benefit of the Qualified Homeowner
under this Agreement, without charge or expense to the Agency.
Section 17. ASSIGNMENT. It is mutually understood and agreed that this
Agreement shall be binding upon the Agency and its successors and assigns and upon the
Contractor and its successors and assigns. The Agency may assign this Agreement, without
obtaining the prior consent or approval of the Contractor. The Contractor may not assign this
Agreement without obtaining the prior written consent of the Agency, which written consent
may be given or withheld by the Agency in its sole and absolute discretion. Any assignment or
attempt to assign this Agreement by the Contractor shall be void.
Section IS. NOTICES. Communications, notices, bills, invoices or reports required
by this Agreement shall be in writing and shall be deemed to have been given when actually
delivered, if given by hand delivery or transmitted by overnight courier service, or if mailed,
three (3) business days after being deposited in the United States mail, postage prepaid, to the
address noted below:
Agencv
Economic Development Agency
of the City of San Bernardino
Attention: Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 9240 I
Phone: (909) 663-1044
Fax: (909) 888-9413
Contractor
Neighborhood Housing Services of
the Inland Empire, Inc.
Attention: Executive Director
1390 North "0" Street
San Bernardino, California 92405
Phone: (909) 884-6891
Fax: (909) 889-4085
Either party may change its address for receipt of written notice by notifying the other
party in writing of a new address for delivering notice to such party.
Section 19. REPRESENTATION AND WARRANTY OF CONTRACTOR. The
Contractor hereby represents and warrants to the Agency as follows:
(A) The Contractor is a California nonprofit corporation duly organized, existing, and
authorized to transact business in California;
(B) the corporate charter and by-laws of the Contractor authorize the Contractor to
provide the Services to the Agency and the governing board and membership of the Contractor
have previously taken all action necessary to authorize the execution of this Agreement by the
Contractor;
(C) the Contractor is qualified to perform the Services and shall timely perform and
complete the Services in a professional manner.
Section 20. CONDITIONS PRECEDENT. The validity and enforcement of this
Agreement is subject to the execution and delivery by the Agency and by the Contractor of the
following Agreements: (i) the Rehabilitation Loan Program Agreement, (ii) the Beautification
4812-7014-093].4
16
Grant Program Agreement, and (iii) the First Amendment to the Homebuyer Education Program
Agreement.
Section 21. OTHER PROGRAM REOUIREMENTS.
(A) The Contractor must carry out all activities in compliance with all federal laws
and regulations described in Subpart H of 24 CFR 92 and outlined hereinafter, except that the
Contractor does not assume the Agency's or the City's responsibility for environmental review
in Section 92.352 or the intergovernmental review process in Section 92.357. These federal laws
and regulations must be complied with as follows:
I. Equal Opportunity. No person shall be excluded nom participation in, be
denied the benefits ot: or be subjected to discrimination under any program or activity funded in
whole or in part with HOME funds. In addition, HOME funds must be made available in
accordance with all laws and regulations listed in Section 92.350(a).
2. Fair Housing. In accordance with the certification made with its housing
strategy, each participating jurisdiction must affirmatively further fair housing. Actions
described in Section 570.904(c) of Title Il of the Cranston-Gonzales National Affordable
Housing Act will satisfy this requirement.
3. Affirmative Marketing. The Contractor must adopt affirmative marketing
procedures and requirements for HOME-assisted housing projects of five (5) units or more, if
applicable. These must include:
1. Methods for informing the public;
11. Requirements and practices that the Contractor must adhere to in
order to carry out the affirmative marketing procedures and
requirements of the Agency and of the City;
111. Procedures used by the Contractor to inform and solicit
applications from persons in the housing market area who are not
likely to apply without special outreach;
IV. A description of how the Contractor will assess the success of
affirmative marketing actions and what corrective actions will be
taken where affirmative marketing requirements are not met.
4. Displacement. Relocation. and Acquisition. Consistent with the other
goals and objectives of this Subpart H of 24 CFR 92, the Contractor must ensure that it has taken
all reasonable steps to minimize the displacement of persons (families and individuals) as a result
of any project assisted with HOME funds. Moreover, the Contractor agrees that it will not
undertake any project activity that will cause displacement of any homeowner in accordance
with Section 92.353, without the approval of the City.
4S12-7014--0931A
17
5. Conflict of Interest. The Contractor will hereby comply with all
requirements set forth regarding conflict of interest provisions as they apply in Section 92.356.
6. Debarment and Suspension. As required in Section 92.357, the Contractor
will comply with all debarment and suspension certifications.
7. Flood Insurance. Under the Flood Disaster Protection Act of 1973,
HOME funds may not be used with respect to the acquisition or rehabilitation of a project
located in an area identified by the Federal Emergency Management Agency (FEMA) as having
special flood hazards, unless:
I. The community in which the area is situated is participating in the
National Flood Insurance Program, or less than a year has passed
since FEMA notification regarding such hazards; and
11. Flood insurance is obtained as a condition of approval of the
commitment. If the Mobile Home Unit is located in an area
identified by FEMA as having special flood hazards, upon
notification by the Agency or FEMA, the Contractor is responsible
for assuring that flood insurance under the National Flood
Insurance Program is obtained and maintained on each Mobile
Home Unit assisted with Grant Funds.
Section 22. GRANT FUNDS AND GRANT DOCUMENTS ARE THE
PROPERTY OF THE AGENCY. The Grant Documents for each Grant are the property and
asset of the Agency. The Contractor has no property interest in any such Grant Documents and
the Contractor shall not transfer, assign or pledge as collateral or claim any other security interest
in any such Grant Documents. All of the Grant Documents are the property of the Agency, and
the Contractor shall maintain all such Grant Documents in its possession as confidential
consumer business records of the Qualified Homeowner. All Grant Funds disbursed by the
Agency to the Contractor for the benefit of a Qualified Homeowner are the property of the
Agency until paid by the Contractor to the General Contractor upon the completion of the Work
at the Mobile Home for the account of the Qualified Homeowner under the applicable Grant
Documents.
Section 23. NON-ELIGIBILITY OF OUALIFIED HOMEOWNER. Once the
Agency has approved the Grant Application and the Mobile Home Repairs Document for the
Qualified Homeowner and has disbursed the Grant Funds to the Contractor for the benefit of the
Qualified Homeowner under this Agreement, the Qualified Homeowner now or hereafter shall
have no right to apply for and to receive any other grant or loan being offered by the Agency to
the general public under any grant or loan program, including, without limitation, any grant
being offered by the Agency under the Single-Family Beautification Grant Program Agreement
or any loan being offered by the Agency under the Single-Family Rehabilitation Loan Program
Agreement, until ten (10) years after the date that the Agency has paid the last installment of the
Grant Funds to the Contractor for the benefit of the Qualified Homebuyer under this Agreement.
4812-7014-0931.4
18
Section 24. GENERAL PROVISIONS. This Agreement constitutes the sole
agreement between the parties. All prior conversations, agreements or representations relating
hereto are integrated in this Agreement. No oral agreement, representation or warranty shall be
binding upon the parties. If any provision of this Agreement shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining portions of this
Agreement shall not in any way be affected or impaired thereby. Failure of any party to enforce
any provision of this Agreement shall not constitute a waiver of the right to compel enforcement
of the same provision or any remaining provisions of this Agreement. Headings at the beginning
of each section or subsection are solely for the convenience of the parties and are not a part of
this Agreement. Whenever required by the context of this Agreement, the singular shall include
the plural and the masculine shall include the feminine and vice versa. This Agreement shall not
be construed as if it had been prepared by one of the parties, but rather as if all parties had
prepared the same. Unless otherwise indicated, all references to sections are to this Agreement.
All exhibits referred to in this Agreement are attached hereto and incorporated herein by this
reference. If the date on which any action is required to be performed under the terms of this
Agreement is not a business day, the action shall be taken on the next succeeding business day.
This Agreement may be executed in one or more counterparts each of which shall be an original
but all of which together shall constitute but one original Agreement. This Agreement may be
executed by facsimile signatures, and each facsimile counterpart when taken together shall be
deemed an original Agreement. Time is of the essence in this Agreement.
4812-7014-0931.4
19
IN WITNESS WHEREOF, the Contractor and the Agency have caused this Agreement
to be duly executed on the date first above written.
AGENCY
Dated:
71417
Redevelopment Agency of the
City of San Bemardino,
a public body, corporate a
By:
Emil A. Marzu 0, n enm Executive Director
Approved as to Form and Content:
\/~~&U
Agency Coun
CONTRACTOR
Neighborhood Housing Services
of the Inland Empire, Inc.,
a California nonprofit corporation
Date:
((j dx9 -cC;
/l1-IA
/ "
i~: - /
N-am;;. .~. '. .: # (! 0/€-
Title: Executive Director
By:
Name:
Title:
Date:
4XI2-7014-0931.4
20
EXHIBIT "c"
SCOPE OF SERVICES
(Description of Program)
A. Contractor's Administration Annual Fee
The Agency shall annually compensate the Contractor the total sum of Forty Thousand Dollars
($40,000.00) for the administration and the implementation by the Contractor of the Program
herein and for the Services rendered under this Agreement. subject to the annual approval and
appropriation by the United States Department of Housing and Urban Development ("HUD").
The Contractor shall invoice the Agency monthly in equal installments of Three Thousand Three
Hundred Thirty-Three Dollars and 33/100 ($3,333.33), in the aggregate annual amount of Forty
Thousand Dollars ($40,000.00).
B. Mobile Home Grant Prol!ram (the "Prol!ram") ($200,000)
The Contractor shall accept the Grant Applications and the Mobile Home Repairs Document
from respective Qualified Homeowner applicants to determine income and improvement
eligibility (see Exhibit "A" to this Agreement), to determine equity in the Mobile Home and to
verify ownership and length of ownership. The Contractor shall offer the Program to Qualified
Homeowners in the Target Area or in the Target Areas specifically determined and designated by
the Agency or, if no Target Area is or no Target Areas are specifically determined and
designated by the Agency, then on an as-needed, first-come. first-served basis, to Qualified
Homeowners throughout the City of San Bernardino. However, in the case of an emergency, of
an urgent need or of a life-threatening situation, the Contractor may process a Grant Application
ahead of other Grant Applications subject to the approval by the Executive Director. The
Improvements allowed under the Program are described in Section "c" below of this Scope of
Services.
C. Elil!ible Improvements Permitted under the Prol!ram
The following types of Improvements, without limitation, are permitted in connection with the
Program: (i) roof replacement (metal aluminum, composition shingle, including carport and
awnings), and (ii) replacement of siding and skirting, patios and porches, stair units (carpet and
handrails), carport columns, water heaters, HV AC, evaporative cooling units, ceilings paneling
(interior), sub-flooring repair and finished floors, refrigeration units and counter tops, handicap
fixtures and units, appliances (limited to stovetops, wall ovens, exhaust hoods), doors and
windows.
The maximum amount of the Grant permitted under the Program is the sum of Five Thousand
Dollars ($5,000) per Mobile Home without the prior written approval of the Executive Director.
4812-70]4-0931.4
23
D. Applicant Eli!!ibilitv Requirements for the Pro!!ram
1. Qualified Homeowner must be an owner and occupant of the Mobile Home Unit, as its
principal residence, for a minimum period of one (1) year; on a case-by-case basis, and
depending on the circumstances, this one (I) year requirement may be waived by the Executive
Director or his/her designee; the Contractor shall obtain evidence of ownership and length of
ownership and residency. The Mobile Home Unit must be built on or after 1980.
2. Qualified Homeowner must execute and complete a Grant Application and a Mobile
Home Repairs Document and must deliver and submit the Grant Application and the Mobile
Home Repairs Document, as fully executed and completed, to the Contractor. The Contractor
shall receive, review, verify and approve or reject the Grant Application and the Mobile Home
Repairs Document. If the Grant Application and/or the Mobile Home Repairs Document is not
acceptable to the Contractor, the Contractor shall notify the applicant in writing within ten (10)
business days from the receipt by the Contractor of the Grant Application and/or of the Mobile
Home Repairs Document and the Contractor shall provide the applicant with the reasons for the
rejection by the Contractor.
3. Qualified Homeowner must have a personal or household income level, adjusted for
family size, during the twelve (12) months preceding the date of submission of the Grant
Application and the Mobile Home Repairs Document to the Contractor within the ranges of
income for low income households, adjusted for family size, as set forth in Exhibit "A" to this
Agreement, subject to annual adjustment.
4. Qualified Homeowner must agree to live in the Qualified Homeowner's Mobile Home, as
its principal residence, for not less than one (1) year after the execution by the Qualified
Homeowner of the Grant Documents.
5. Qualified Homeowner must execute and acknowledge, where designated, the Grant
Documents. The Qualified Homeowner, without limitation, shall execute and notarize all
recordable Grant Documents, if any, and the Contractor or the Agency shall record, or shall
cause the recordation of all such recordable Grant Documents, if any, in the County Recorder's
Office.
6. Qualified Homeowner must have received written notice from the Agency, from the City
or from any other governmental authority (including, without limitation, the City's Building and
Safety Division) advising the Qualified Homeowner that the Mobile Home Unit owned by the
Qualified Homeowner is in violation of Title 25 of the Mobile Home Park Act and/or is in
violation of any other applicable legislation, local codes or other Laws.
7. The Qualified Homeowner must not be the recipient of a grant or of a loan from the
Agency for the past ten (10) years.
4S12-7()]4-093IA
24
E. Guidelines:
The Contractor shall conduct, administer, implement, comply with and perform the following
guidelines in connection with the Program:
1. The Contractor shall administer and implement the Program herein and shall utilize the
applicable and pertinent sections of the Economic Development Agency's (the "EDA") Grant
Policies and Procedures Manual for guidance on processing and packaging all Grants under this
Agreement, if applicable, under the direction of the Executive Director.
2. The Contractor shall accept the Grant Applications from respective Qualified
Homeowner applicants to determine income and improvement eligibility, to determine equity in
the Mobile Home, and to verify ownership and length of ownership. The Contractor shall offer
the Program to Qualified Homeowners in the Target Area or Target Areas specifically
determined and designated by the Agency or, if no Target Area is or no Target Areas are
specifically determined and designated by the Agency, then on an as-needed, first-come, first-
served basis, to Qualified Homeowners throughout the City of San Bernardino. However, in the
case of an emergency, of an urgent need or of a life-threatening situation, the Contractor may
process a Grant Application on an urgent basis ahead of other Grant Applications subject to the
approval of the Executive Director.
3. A mobile home certified inspector for the City of San Bernardino, State of California
shall inspect eligible Mobile Homes and properties to determine the type of health and safety and
code violation repair work needed, including asbestos and lead-based paint removal, the age and
overall condition of the Mobile Home and to ensure that all Mobile Homes repaired or improved
under the Program when completed are aesthetically pleasing and in compliance with all Laws,
including, without limitation, Title 25 of the California Development Code, Chapter 2, Articles
1-11.
4. The Contractor shall prepare and complete Work write-ups, cost estimates, and bid
packages for the Improvements to be constructed, installed, performed and completed for each
Qualified Homeowner's Mobile Home.
5. The Contractor shall ensure that all Improvements and/or Work constructed, installed,
performed and/or completed in connection with the Qualified Homeowner's Mobile Home shall
be constructed, installed, performed and completed by pre-qualified State licensed General
Contractors and/or State licensed subcontractors. The Contractor shall also require that each
General Contractor and/or subcontractor constructing, installing, performing and/or completing
the Improvements and/or the Work in connection with the Qualified Homeowner's Mobile Home
under the Program shall possess a current business license in the City and shall possess a current
license with the State of California Contractor's License Board. The Contractor shall be
required, whenever feasible, to obtain a minimum of three (3) bids from General Contractors for
alllmprovernents and/or for all Work to be constructed, installed, performed and/or completed in
connection with the Qualified Homeowner's Mobile Home. All bids shall be made available by
the Contractor to the Qualified Homeowner for review. All Improvements and/or Work
constructed, installed, performed and/or completed by General Contractors and/or by
48]2-7014..{)931.4
25
subcontractors in connection with the Qualified Homeowner's Mobile Home shall be approved
and authorized by the Qualified Homeowner, and shall be completed within a specified
timeframe acceptable to the Qualified Homeowner and the General Contractors and/or the
subcontractors.
6. The Contractor shall solicit bids for the construction, installation, performance and/or the
completion of the Improvements and/or of the Work in connection with the Qualified
Homeowner's Mobile Home from a list of pre-approved General Contractors. The Contractor
shall assist the Qualified Homeowners with the selection of a General Contractor, and shall assist
the Qualified Homeowner in connection with the execution of the General Contractor
Agreement, including, without limitation, a determination as to the scope of the Improvements
and/or of the scope of Work to be constructed, installed, performed and/or completed by the
General Contractor, any schedule of performance, other schedules, conduct pre-construction and
walk-through conferences.
7. Prior to the execution of the General Contractor Agreement and prior to any funding by
the Contractor of any Grant Funds to the General Contractor for the proposed Improvements
and/or Work to be constructed, installed, performed and/or completed, the Contractor, the
Qualified Homeowner, the General Contractor and the members of the Agency application
review committee (the "Application Review Committee") appointed and assigned by the Agency
to approve, administer and oversee the construction, the installation, the performance and/or the
completion of the Improvements and/or of the Work shall meet on one or more occasions to
discuss the Improvements and/or the Work to be constructed, installed, performed and/or
completed in connection with the Qualified Homeowner's Mobile Home and the methodology
used or to be used to identify, quantify and assist the Qualified Homeowner.
8. The Agency and the Qualified Homeowner must review, approve, execute and
acknowledge, where designated, the Grant Documents. The General Contractor and/or any
subcontractor cannot commence the construction, the installation, the performance and/or the
completion of the Improvements and/or of the Work in connection with a Qualified
Homeowner's Mobile Home until: (i) the Grant Documents have been executed and
acknowledged, where appropriate, by the Agency and by the Qualified Homeowner, and (ii) all
other recordable Grant Documents in connection with the Grant, if any, have been recorded by or
for the Contractor or the Agency in the County Recorder's Office.
9. The General Contractor shall obtain one or more permits as required by applicable Laws
to construct, to install, to perform and/or to complete the Improvements and/or the Work at the
Qualified Homeowner's Mobile Home. At the time that the Contractor submits an invoice to the
Agency for payment of all or a portion of the Grant Funds in connection with the Grant made by
the Agency to the Qualified Homeowner, the Contractor shall provide the Agency with a copy of
each permit that is or will be required to construct, to install, to perform and/or to complete the
Improvements and/or the Work in connection with the Qualified Homeowner's Mobile Home.
The Agency shall have no obligation to pay any invoice submitted by the Contractor to the
Qualified Homeowner until the Agency has received and approved each permit issued for the
Improvements and/or for the Work completed by the General Contactor and/or by the
subcontractor and identified in the invoice.
48]2-7014-0931.4
26
10. The Contractor shall inspect and monitor the Improvements and/or the Work while in
progress and shall supervise the payment invoice procedures to ensure that all General
Contractors and subcontractors are meeting obligations and that progress payments and
retentions are paid in a timely manner. The Contractor shall approve all change orders relating
to and in connection with the construction and the completion of the Improvements at the Mobile
Home. All change orders must relate to the construction and to the completion of the
Improvements permitted under the Grant approved and made by the Agency in favor of the
Qualified Homeowner. Should the costs and fees in connection with the change order, in the
aggregate, exceed ten percent (10%) of the amount of the Grant Funds awarded by the Agency to
the Qualified Homeowner, the Agency will also need to approve, in writing, the change order.
11. The Contractor shall receive and collect from the General Contractors and/or from the
subcontractors an executed lien release under one of the following lien releases, as required by
the Agency: (i) an unconditional waiver and release upon progress payment, or (ii) an
unconditional waiver and release upon final payment. The Contractor shall not make the final
payment of the remaining Grant Funds to any General Contractor until the General Contractor
and/or all subcontractors have executed and the Contractor has received the conditional waiver
and release upon final payment or the unconditional waiver and release upon final payment.
12. The Contractor shall coordinate final inspection and payment of the General Contractor
Agreement retention with the Qualified Homeowner, with the General Contractor and with the
Agency. The contract retention shall not be paid by the Contractor to the General Contractors
and/or to the subcontractors until all time periods for filing liens have expired and no liens have
been filed under applicable Laws.
13. Prior to the payment by the Contractor of the Grant Funds, or any portion thereof, to the
General Contractor, for the construction, for the installation, for the performance and/or for the
completion of the Improvements and/or of the Work in connection with a Qualified
Homeowner's Mobile Home, the Contractor shall notify the Agency that the Contractor has
received an invoice for payment. Within ten (10) business days from receipt by the Contractor
of the invoice, the Contractor and the Agency shall inspect and approve the Improvements and/or
the Work identified in the invoice and constructed, installed, performed and/or completed by the
General Contractor and/or by any subcontractor. The Contractor shall not pay any such invoice
for the construction, installation, performance and/or completion of the Improvements and/or of
the Work until the Contractor and the Agency have inspected and approved, in writing, the
Improvements and/or the Work constructed, installed, performed and/or completed by the
General Contractor and/or by any subcontractors. The Agency reserves the right to approve
payment of an invoice in circumstances when no physical inspection is needed as determined by
the Agency in its sole and absolute discretion (i.e., fumigation for termites).
14. The Contractor shall maintain accurate records for inspection by the Agency concerning
income and program occupancy of all persons obtaining assistance from the Contractor pursuant
to this Agreement including, but not limited to, the Grant Application and the other Grant
Documents, proof of ownership, income verification, comparables or appraisals and/or Work
write-ups. The original Grant Documents shall be executed and acknowledged, where
48]2-7014-093[.4
27
appropriate, by the Agency and by the Qualified Homeowner, shall be for the benefit of the
Agency and shall be delivered by the Contractor to the Agency in connection with each Grant
made by the Agency to the Qualified Homeowner.
15. The Contractor shall also provide quarterly reports to the Agency, or as otherwise
required by the Agency, upon the request of the Executive Director to the Contractor.
16. From time to time, the Agency and the Contractor shall coordinate inspection of the
Improvements and/or of the Work at the Qualified Homeowner's Home to ensure that the
Improvements and/or the Work are performed, installed, constructed and completed in a good
workmanlike manner and in accordance with all applicable Laws.
17. The Contractor shall provide any and all services required by the Executive Director or
his/her designee, in order to effectively implement and complete the Services under this
Agreement.
4812-7014-093IA
28
Mobile Home Grant
Exhibit "A"
2009 Income Limits
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Mobile Home Grant
Exhibit "B"
General Contractor Agreement
NHSIE: Mobile Home Grant Program
GENERAL CONTACTOR AGREEMENT
4825-5611-5459.1
.t;-~~
\/1- f I NHSIE
~ NEIGHBORHOOD
HOUSING SERVICES
DFTHfINUNDEMPIRE,tNC
Neighborhood Housing
Services
ofthe
Inland Empire, Inc.
b. 6.
. NelghboiWorkso_
MOBILE HOME GRANT
GENERAL CONTRACTOR AGREEMENT
File No: <<FileNo>>
Owner(sl:
Rehab Address:
THIS AGREEMENT is made this _ day of by and between
the "Owner(s)" hereinafter calied the "Contractor".
hereinafter called
WITNESSETH, that the Contractor and the Owner(s) for the consideration stated herein agree
as foliows:
1. RECITALS: This Agreement is made and entered into with respect to the foliowing facts:
a) That the Redevelopment Agency of the City of San Bernardino (the "Agency") has a mobile
home grant program to help iow income resident-owners of mobile homes make certain
improvements to their mobile homes, calied the Mobile Home Grant Program; and,
b) Neighborhood Housing Services of the Inland Empire, Inc. (the "NHSIE') has contracted with
the Agency to administer said mobile home rehabili1ation program, pursuant to applicable laws;
and,
c) Owner has determined to participate in such program by causing certain improvements to be
made to hislher mobile home, and has qualified for a grant to undertake such improvements;
and,
d) Contractor attests that its company is properly licensed and fuliy qualified to perform the work
proposed to be accomplished in this Agreement, under terms and conditions hereinafter set
forth; and,
e) Owner and the Contractor acknowledge and agree that the NHSIE and the Agency are third
party beneficiaries of this Agreement, consistent with the NHSIE mission of housing
rehabilitation.
2. CONSIDERATION: THE UNDERSIGNED CONTRACTOR proposes to furnish labor and materials,
complete in accordance with the specifications attached hereto as Exhibit "A" and incorporated herein
by this reference for the sum of ($ I, with payments to be made
within ninety (90) calendar days from the completion of the work, subject to any additions and
deductions as provided herein.
3. WORK: Contractor agrees to complete ali work in accordance with the contract documents, ali
applicable laws, and in a workmanlike manner, according to generaliy acceptable, standard building
practices. Any alteration or deviation from the attached specifications will be executed only upon
written consent of the mobile home Owner(s), the Contractor, and the NHSIE. AIi materials are
guaranteed to be as specified. No extra charges or costs will be paid. Contractor will be solely
liable if helshe has neglected to properly evaluate the extent of the rehabilitation work. The
performance under this Agreement is subject to forced delays when due to strikes, accidents or acts of
God.
NHSIE: Mobile Home Grant Program
GENERAL CONTACTOR AGREEMENT
4825-5611-5459.1
4. INDEMNIFICATION: The Contractor agrees to indemnify, defend and hold harmless the NHSIE,
the Agency and their authorized officers, members, directors, employees, agents, contractors and
volunteers (collectively, the "Indemnified Parties") from any and all claims, actions, losses, damages,
suits, fees (including, without limitation, reasonable attorneys' fees, court costs, expert witness fees
and consuitant fees), obligations and/or liabilities (singularly, a "Claim" and collectively, the "Claims"),
now or hereafter arising out of this Agreement from any cause whatsoever, including acts, errors or
omissions of any person and for any costs or expenses incurred by the NHSIE, by the Agency and/or
by any of the other Indemnified Parties on account of any Claim therefore, except where such
indemnification is prohibited by law. This indemnification provision shall survive the execution, the
performance, the termination and the expiration of this Agreement.
5. INSURANCE: Without in anyway affecting the indemnity herein provided and in addition thereto,
the Contractor shall secure and maintain throughout the tenm of Agreement, and shall continue one (1)
year after the performance by the Contractor of the work under this Agreement, the following types of
insurance:
a. Workers' Compensation - a program of Workers' Compensation insurance or State-approved
Self Insurance Program in amount or form to meet all applicable requirements of the Labor
Code of the State of Caiifornia, including Employer's Liability with $1,000,000 limits, covering
all persons providing services on behalf of the Contractor and all risks to such persons under
this Agreement.
b. Comprehensive General and Automobile Liability Insurance - This coverage to include, without
limitation, comprehensive general liability policy of insurance with coverage at le.ast as broad
as "Insurance Services Office Commercial General Liability Form (G0001), in the amount not
less than $1,000,000 combined single limit per occurrence, with said insurance covering
comprehensive general liability including, but not limited to, contractual liability, assumed
contractual liability under this Agreement, acts of subcontractors, premises-operations,
explosion, collapse and underground hazards, if applicable, broad form property damage,
bodily injury and personal injury including libel, slander and false arrest and automobile liability
coverage on owned, hired and non-owned vehicles.
c. Errors and Omissions Liability Insurance - Combined single limits of $1,000,000 and
$2,000,000 in the aggregate or Professional Liability insurance with limits of at least
$1,000,000 per claim or occurrence.
6. ADDITIONAL NAMED INSURED, PRIMARY INSURANCE AND BEST'S KEY RATING: All
policies, except for the Workers' Compensation, the Errors and Omissions and the Professional
Liability policies shall contain additional endorsements naming the NHSIE, the Agency and the other
Indemnified Parties as additional named insureds with respect to liabilities arising out of the
performance of services hereunder. All insurance obtained by the Contractor shall be primary to and
shall not be contributing with any insurance carried by the NHSIE, by the Agency and/or by any of the
other Indemnified Parties. All insurance policies required under this Agreement shall be obtained from
insurance companies admitted in the State of California and rated at least A: XII in the most current
Best's Key Rating Insurance Guide.
7. WAIVER OF SUBROGATION OF RIGHTS: Except for Errors and Omissions Liability, the
Contractor shall require the insurance carriers of the above required coverage's to waive all rights of
subrogation against the NHSIE, against the Agency and against the other Indemnified Parties.
8. PROOF OF COVERAGE: Contractor shall immediately furnish certificates of insurance to the
NHSIE and to the Agency evidencing the insurance coverage, including endorsements, above
required prior to the commencement of performance of the services hereunder, which certificates shall
NHSIE: Mobile Home Grant Program
GENERAL CaNT ACTOR AGREEMENT
4825-5611-5459.1
provide that such insurance shall not be terminated or expire without thirty (30) calendar days prior
written notice to the NHSIE and to the Agency, and the Contractor shall maintain such insurance from
the time the Contractor commences performance of services hereunder until one (1) year after the
completion of such services. Within six1y (60) calendar days after the commencement of this
Agreement, the Contractor shall furnish the NHSIE and the Agency with certified copies of the policies
and all endorsements.
9. INSURANCE REVIEW: The above insurance requirements are subject to review by the NHSIE.
10. ACCEPTANCE & START: The bid and proposal shall be accepted by the Owner(s) and by the
NHSIE within six1y (60) calendar days from the date established by the NHSIE for its receipt, provided
that no work shall be commenced by the Contractor until a written Notice to Proceed has been issued
by the Owner(s). Work will begin no later than ten (10) calendar days after the Notice to Proceed is
issued. Contractor will not assign this Agreement without the prior written consent of the Owner(s)
and of the NHSIE. Any request for assignment shall be addressed to the NHSIE.
11. PERMITS: Contractor shall procure all City of San Bernardino and all other governing authority
permits and licenses, including a municipal business license, and shall pay all charges and fees for the
same, and shall give all notices necessary and incidental to the due and lawful prosecution of the work
as it separately pertains to each party. Permits and licenses required for corresponding elements of
the work to be performed shall be obtained prior to commencing such work and all associated costs
are specifically included in the contract amounts.
12. CHANGE ORDERS: No change in the work, as described in the Work Write-up, shall be made
except upon the mutual written consent of the Owner(s), the Contractor and the NHSJE. Contractor is
not authorized to deviate from the Work Write-up or specifications unless so directed in writing by the
NHSIE. Any Change Orders shall describe the nature of the additional work, the estimated time for
completion thereof, and the compensation to be paid to the Contractor for the performance of same.
13. OWNER(S) EXPECTATIONS: Owner(s) will permit the Contractor to use existing utilities at no
cost, such as lighting, heating, power and water, as needed to carry out the work. Owner(s) will
cooperate with the Contractor to facilitate work performance, including the removal and replacement of
rugs, coverings, miscellaneous household goods and furniture as necessary, unless otherwise noted.
14. CONTRACTOR EXPECTATIONS: Contractor will keep the mobile home and the premises clean
and orderly during the course of the daily work and will remove all debris at the completion of the work.
Materials and equipment which belong to the Contractor shall be removed from the mobile home and
from the premises. Work should be planned so that the Owner(s) are not forced to relocate during the
rehabilitation work, except under unusual circumstances.
15. COMPLETION: Contractor agrees to satisfactorily complete all the work within forty-five (45)
calendar days from the noticed start date. The parties agree that time is of the essence in this
Agreement.
16. LIEN RELEASES: Contractor shall promptly pay all valid bills and charges for material, labor, or
otherwise in connection with or arising out of the construction, and shall hold the Owner(s) of the
mobile home free and harmless against all liens and claims of lien for labor and material, or either,
filed against the mobile home and/or against the real property leased by the Owner(s) on which the
mobile home is located (the "Leased Premises"), or any part thereof, and from and against all expense
and liability in connection therewith, including, but not limited to, court costs and attorney's fees
resulting or arising there from. Should any liens or claim of lien be filed for record against the mobile
home and/or against the Leased Premises, or any part thereof, or should the Owner(s) receive notice
of any unpaid bill or charge in connection with the construction, the Contractor shall forthwith either
NHSIE: Mobile Home Grant Program
GENERAL CaNT ACTOR AGREEMENT
4825-5611-5459.1
pay and discharge the same and cause the same to be released of record, or shall furnish the
Owner(s) with proper indemnity either by satisfactory corporate surety bond or satisfactory title policy,
which indemnity shall also be subject to approval of the Lien Holder. Contractor shall furnish the
Owner(s) and the NHSIE with affidavits and satisfactory releases of liens or claims for any liens from
subcontractors, laborers and suppliers for completed work or installed materials.
17. NON-EXECUTION: In the event that the Owner(s) will not execute the End of Project Work
Release, the NHSIE reserves the right to authorize payment to the Contractor for the work completed.
The NHSIE and the Contractor must certify that all of the Contractor's work has been performed in a
professional, workmanlike manner, and has adhered to the mobile home and property specification
standards. Upon the written approval by the NHSIE, a payment request will be forwarded to the
Agency for release of said funds.
18. WARRANTY: Contractor will guarantee work for a period of one (1) year from the date of the final
written acceptance of all work required by the Agreement. Furthermore, the Contractor shall furnish
the Owner(s), in care of the NHSIE, with copies of all manufacturers' and suppliers' written guarantees
and warranties covering materials and equipment furnished under this Agreement. Contractor will
allow the NHSIE access to examine and to inspect all rehabilitation work. NHSIE shall have the right,
at all reasonable times, to inspect the books and records of the Contractor pertaining to the work and
to the materials which are the subject of this Agreement.
19. NOTICES: Notices pursuant to this Agreement shall be given by personal service to the person,
or by deposit in the custody of the US Postal Service, within a sealed envelope containing the notices,
postage pre-paid, and addressed as listed below. Such notice shall be deemed to be received within
forty-eight (48) hours from the time of mailing, if mailed as provided above. The following information
shall be used for mailed correspondence and communications related to this Agreement:
20. lEAD BASE PAINT ACKNOWLEDGEMENT AND lEAD BASE PAINT DISCLOSURE: Prior to
the commencement of the work: (i) the Contractor shall deliver to the Owner the lead Base Paint
Disclosure and the lead Base Paint Acknowledgement, (ii) the Owner shall execute and date the lead
Base Paint Acknowledgement and the lead Base Paint Disclosure, and (iii) the Contractor shall
deliver to both the NHSIE and to the Agency the lead Base Paint Acknowledgement and the lead
Base Paint Disclosure, as executed by the Owner.
OWNER INFORMATION:
CONTRACTOR DBA:
(Owner's Name)
(Contractor's Name)
(Mailing Address)
(Rehab Address)
(City)
(State)
(Zip Code)
(City) (State) (Zip Code)
(Telephone)
(FAX)
NHSIE: Mobile Home Grant Program
GENERAL CONT ACTOR AGREEMENT
4825-5611-5459.1
PROJECT ADMINISTRATOR: Neighborhood Housing Services (NHSIE)
1390 North "0" Street
San Bernardino, CA 92405
Telephone: (909) 884-6891
FAX: (909) 884-4085
-----------------------------------------------
ACCEPTANCE AND SIGNATURES
CONTRACTOR:
Date:
OWNER(S):
Date:
THE ABOVE AGREEMENT HAS BEEN REVIEWED AND APPROVED
For NHSIE:
Date:
NHSIE: Mobile Home Grant Program
Exhibit "A"
Work Specifications
GENERAL CONTACTOR AGREEMENT
4825-5611-5459. ]
Mobile Home Grant
Exhibit "C"
Scope of Services (attached to Grant Program Agreement)
Mobile Home Grant
Exhibit "D"
Grant Application
I"or Unite llse U~L Y
A lication Mailed out on"
City Of San Bernardino- Redevelopment Agency
Mobile Home Grant Program
Neighborbood Honsing Services of the
Inland Empire, Inc.
Applicant's Name (Last, First, MI)
Applicant's Date of Birth
Applicant's Spouse's Name or Co-Applicant
Co-Applicant's Date of Birth
Street Address
Space #
Applicant's Phone Number
City/Zip
DO YOU HAVE ANY NOTICE OF VIOLATION WITH THE CITY OF SAN BERNARDINO CODE ENFORCEMENT
OR ANY OTHER CITY AGENCIES YES IF YES PROVIDE COPY. NO
y
r d'
'd
L' all
r '
'd
h h
ears Ive In reSl ence: 1st l persons lvmg In reSl ence ot er t an vou:
Name Relationship Age Emiiloved
Yes No
Any income must be shown in income section. Must s ow proo 0 income to qua I . Wntten verification must e orwarded with application.
MONTHLY HOUSEHOLD GROSS INCOME
AFDC $ Social Security $ SSIISSP $
Disability $ Employment $ Food Stamps $
Unemployment Ins $ Pension/Retire $ Alimony $
Child Support $ Other/Real Prop, $
Total Monthly Income: $ Total Annual Income $
h
f f
l'J'y
b f
2009 Income Level Number of Persons Per Household
(Subject to annual change) I I 2 I 3 I 4 I 5 I 6 I 7 I 8
Honsehold Annual Gross Income May Not Exceed:
80% Median Income I 37,300 I 42,650 I 47,950 I 53,300 I 57,550 I 61,850 I 66,100 I 70,350
Ethnicity: (Please check all that apply) Optional
[J Sr, Citizen(s)-60 or older
[, Hispanic
[J Black
[j Female Head of Household
o Asian/Pacific
[J White, Non-Hispanic
o Disabled One or More
[ American Indian
C Other
I certify under penalty of perjury that the information provided above is correct to the best of my knowledge, I
understand that the inclusion of any willful misrepresentation on this form constitutes ground for rejection of this
application and recapture of any financial benefit I may have received, I authorize NHSIE and or The
Redevelopment Aeencv of the City of San Bernardino to examine and verify any and all information provided
in this application.
Date:
Signature
Date:
Signature
4819-8510-0291.1
Mobile Home Grant
Exhibit "E"
Grant Approval Agreement
t:~~
\01111 NHSIE
,. NEIGHBORHOOD
HOUSING SERVICES
OF THE INLAND EMPIRE, INe
1390 North D Street, San Bernardino, CA 92405 / Phone 909-884-6891 / Fax 909-884-8899 / www.nhsie.org
Neighborhood Housing Services of the Inland Empire, Inc.
Mobile Home Rehabilitation Grant Program
Work Approval and Fund Release Form
Congratulations! Your application has been processed and approved for a grant under the Redevelopment
Agency of the City of San Bernardino (Agency) Rehabilitation Grant Program for Mobile Homes. Neighborhood Housing
Services of the Inland Empire, Inc. (NHS/E) has been authorized by the Agency to manage and oversee this program.
The Grant Program is designed to assist low- income, senior, mobile home owners to make timely, necessary and/or
emergency repairs to abate deficiencies. Your property has been inspected and one or more conditions identified which
are in need of repair, or which represent a safety hazard, a violation of the Municipal Code (SBMC), and/or are contrary to
the California Code of Regulations (CCR).
Your application meets program guidelines; thus, you are eligible to have certain of the deficiencies corrected at
no cost to you. Program focus is on noted code violations, or major health and safety issues. Please understand that
funds are limited; in order to serve as many citizens as possible, work priorities must be decided on an individual basis.
Landscaping, outside patios, decks, concrete, walkways, appliance repairs, decorative, custom, or cosmetic items are
generally not covered. Maximum grant per mobile home resident is $5,000, but your amount of grant may likely be much
lower than that. The grant is accessible to individuals only once every ten years.
If your mobile home is sold within one year after work is completed, you (the original beneficiary) must reimburse
the full grant amount back to the Agency. A copy of this contract will be sent to the mobile home park manager to be kept
with your records. Should a conflict arise between the homeowner and the Agency, NHSIE, or subcontractor, the Agency
will be the final authority for the program.
Initial Approval of Work Proposed
Homeowner Name:
Site Address:
Park Name:
Mail Address (if different):
City-State-Zip:
Home Phone:
Work Phone:
Mobile Homeowner Signature:
Date:
City Representative:
Date:
Final ADDroval of Work Com Dieted
Authorization to Release Funds to Contractorfsl
Homeowner Signature:
Date:
NHSIE Representative:
Date:
~hborW"odls'
CHAU!IIDMfMUI
Mobile Home Grant
Exhibit "F"
Lead Based Paint Acknowledgement
Lead Base Paint Pamphlet - Acknowledgement of Receipt
Confirmation of Receipt of Lead Pamphlet
o I have received a copy of the pamphlet, Renovate Right: Important Lead Hazard information
information for Families, Child Care Providers and Schools intorming me of the potential risk
of lead hazard exposure trom renovation activity to be performed in my dwelling unit. I received
this pamphlet before the work began.
Date
Printed name of recipient
Signature of recipient
Self -Certification Optional (for tenant-occupied dwelling only)-
If the lead pamphlet was delivered but a tenant signature was not obtainable.
you may check the appropriate box below.
o Refusal to sign - I certify that I have made a good faith effort to deliver the pamphlet,
Renovate Right: Important Lead Hazard Information for Families, Child Care Providers
and Schools, to the rental dweiling until listed below at the date and time indicated and
that copy of the pamphlet at the unit with the occupant.
o Unavailable for signature -I certify that I have made a good faith effort to deliver
the pamphlet, Renovate Right: Important Lead Hazard information for Families, Child
Care providers and Schools, to the rental dwelling unit listed below and that the occupant
was unavailable to sign the conformation or receipt. I further certify that I have ieft a
copy of the pamphlet at the unit by sliding it under the door.
Attempted delivery date and
Time lead pamphlet delivery.
Printed name of person certifying
Signature of person certifying lead pamphlet delivery
Unit Address
Note Regarding Mailing Option - As an alternative to delivery in person, you may mail the lead
Pamphlet to the owners and/or tenant. Pamphlet must be mailed at least 7 days before renovation
(Document with a certificate of mailing from the post office).
4829-9177-9588.1
Mobile Home Grant
Exhibit "G"
Lead Based Paint Disclosure
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To:
Re:
V.S. Oepaltrtlenl of HoU3f1g and Urban Development _ Ofllce of CorJ'lI'OOn_v Pl&nl\ing llnd Oevelopmenl
Ownert. T enanf& and PtJrChasGr$ of Housing ConstJuctlon before: 1978 Fa., ,
NOTIFICATION: We!eh CuI For l.,ad.Bas~d Painl Poisoning Dale
Tills properly WI$ COllSlructed betor, IlJ7a. There It a p(tuibili{y il conlalns lead,baud paint. ease read lhe 'ollowing infonYlf.lion
coneerr1irt lead-basad 'nt lao' . .
500ftes 01 I'-Ad fb!t~
™ InleNots of older homes and apatCmenfS Offen have layers o( lead41aud palrlt on !h. walls, ceelinQs, window sirs, doot$ and door
lrames. lead,based pain( and primers may abo have ClitiA Uled On outside potef\ll:S, cai/ing$, garolges, lire escapes and lamp posts.
Whtll u.e pail\{ chips. ~.$ or peels off, there may be a rew dl!lnger lor b.bie, and young children. Children l"I\aY lac paln( chips or
chew on painl:ed railings, Window sills or OUI8r itOIn$ when p&lenfe .r. nolaround. Chlfcfr&n eRn .:i1tn It\ge.sUaad..t!.t8n.II...1fl~~
----Specj(iI;allv-.aLpainl.c.l:tf~H~fI1Ple;_when-chfldl.lI play iii 8tl art. Wher. ther. ar8 loose p8int clIips or dust P8fCk:les on Iheit
h"nd$. ~ Ihe" hands irUo '!liNr. mOf,lths, Md rngo$$1 B dangeroul amounc of reld.
Harmik III learl.R_en PaiN
t~ad poisoning is dangerovs n etlcpeclalfy 10 children undet lh. a~ of SlM!!n ei'J. II can ev~nhl!dfy cause rnenttll retard_lIoll,
binOnN$ and evan dealh.
SYITlDlorn.l; d l ead.n:u:ojWf PRM{ PlIl~onrn9 .
Has youI child b.en e:speci8fly Cf8nky or irritable? 1& ha 01 shs llallng nonnd'y? Does your ChadhlV4 slomach aett.. and vomiting?
Dot, ho or she co~ aboul headachll$1 ,. your child unwilling 10 Afay? TheiSS mey bII clgns 01 toad poisoning. Many Ilmes
lhougl\. Ih.l, 8/e no symptoms <<I aU. BecllUle Ihef8 <<ro noo tymploms does. ftOI mean thel you sbquld not be concerned if you
believe yaw child h8$ been elfpoud 10 lead.based' f)Ec1",'.
&trlabhilWlAVllllJ~v of Brood 1 Asd t "'\I'M ~""n"'9
J( yotI $uspec( lhl{ your chid has _.(en ch~ 01 pakll or ~omeoneloldyou Ihis, VOulihouldWee your chikl 10 the doclor 01' clWc lor
100011ng. If !he leS( SflOWS Shel your child has an elevalfd brood lead le.ve~ lrealmenl is avaiJ8b1e. ConI~1 )'<It/r doct~ or locaIl1eakll
depanmenl (or hOlp or mew. Infonnalion. load 6creehiog and lrsatmenl are lvaUabte lhocoetgh the Me<iicaid Program ror Ihole who
we eligibte. U you chIld Is klontiffed as havltl" an elevafed bfo~ lead level, you should inmec1al.ely nodfy th. Camnwnil:y
OcveJopm:m( or olfler agency 10 wIich you or your landlord Is ~ for rehabil'a-cron hSCslatlCG $0) Ihe nltUssary $:l.81?8 can be
cakon 10 les! YOut unO for Jead-bA8ed palnl huards, II your unit does haV$ rtad-based palnl, Y04lllUil'be eligible ror assistance 10
abtlle thai hnzetd.. .
Prl'!t':3ulion.t 10 TakA In PrMranl LeaJ..I\lIS(I!rl PaW POfr:nnflll1
You can avoid lead.baq paln! pofsonlng by p8rtonnng some Pl'eVfJhliva maintenance. lOOk 11 the WAIls, tailings, doors, door
'ran~s Md Window sills. At6lh.,. pl;:C81 where Ihe p.lnll~ p"lInv.lfaklng. cfWpplng, or pOWdq,inV1 It 50, !here ant some things
yotl can do lmmeclialely 10 j)lo1ec( yourelllfd: .
(a) Covor.1I rIHnilUro IiIld appHancea; .
(bJ Oust CllIll'oining read C~Q be a healUl hUard, 00 NOT VaeutlM loose pallll, SWeep Jnd datT9 mop:
(e' SwHp tip _If piece. of pain( and plasler and put !hem in 8 pa".,.bag 01 Wf;rp lbeRlfn nowsptlptl. PU4lh.,. paej(.s In tho Irash
CM. 00 NOT DUAN THEM;
Cd) 00 ~ lGavo paitll ddps on Iho 1I0or Olln windoW' wells. Oal1lp mop ffoor. and window ~1Is in and around the work .rea 10
l.r"0lI0 all W5f AItd pailll partkles. Keoping "Ieso aloas clear 0( pah( cNp$, d~ and dirI is easy alld very ~rtanl, and;
(ell 00 nOI :.lIow 'oos~ paint 10 romah within your children'" MItCh sMee children may pCk loose "ctilI olllhe Jewat' pad of the Vlalls.
~~Yf'!~.rM.rinlQ!!.~..st:e..uedPah1lH.:I'afd!: .
As. 3 hl)fIl~I!t". YI)U sl\OulQ bike the ncc~sary slops 10 keep your home in good shapo. Wat4r l..&k$ 110m faulty pfumbing,
ddlocllWllllols .and ltXlq,iOf' holes or bro..ks may ad/nil rain and danlpn81S I,Uo lhe mtedor oIyoUf hQrtle. These cqncfrllons damaga
W..lIbi. 11M e,!IbNjS .and causa paim to f)4el. crack Or 8ako. Thosl! COtIditions should be corrocltd iJnmedia<cl1. Belota repainling. all
sudm:('!i IIJilI :atq ,,,,,.'lrny, ctacking. cflipplng oc kloc.o should be lltotoughly d.$ftOd by sclapill9 or lwshiog lhe Ioos. paltll hom lho
Sllll:1C~. tru1fO "tl1.lInled wifh lwo (l) coal. of non.ktadod paint IMI." of $cnpng and npal~ the "",ac8 lTWIy be COVOted with
ClII>>:1 lllalulI;1I sur-h .tiS: wlllbOafd, IlYfl$lIm. 01 panelIng. Beware dial when read.b~sed pain! is 'atnovcd by scraping ot S,llRdfttg, a
tlu;u 1$ Cl'l.';ll<'d. whICh ""'V be hUafdoul. The dusl can entor Ihe body eilhllt by b'~ it Of ,walJowitlg fl. The us:. 6r hut 6,
P;}d\l I"nlt)\<~rs ':11,,.,,1 ChlMl) a \/apGf or rurne wflIeh III.IlV enu.. poiaoning If ""'.led OW( a Ion!) pO/lod 01 !i'M.. Wben~. POSSiI;"(!.
lh~ fl'rIlOV;rl "j lllOld b~d Pftw shoukf 18"(1 pillco wMnlhore Ite no chfJd/en or ptegNlnf womol\ on Ifta p!e1'IWs.e$. Simpt" Pillinllng
ov,;. ,"!I""IWo: ~.I<l b=-..lttl .Mint $lItlaClts docs nol elimitlMlt tho hatard, Retntltlbef Ihal v<ru 2' M adul playa mafor ,or. crt thu
1'/o'Y"llfmll ,,11~""'I"tir;ttnlh!' Yell' ac{ion!l: :J'~ ;)WOJtC~ss ;lbOUllhc Ie.:ad problem can milka n big dlHelenco.
r.,..."ll"lt.Jli''''k.''IIIYI"Iif>1fI~*~lli~
YlllI r.hllul'l.mllc.'dl.lf~"y MI.ty rho IllllOlIgalllt'1lt OItIC\) elr lho -.goney lhrough which you ilia (Xlldl3SIIIII YOUI hon'lO,i( 1110 Uln( h~s
IL.h.'1, d'~1J~hl. Ilutvd('flli!f (If ')I!'/llk'!l p:nnr, W':t!.,r lonh Irom plUlllbing. or a delecljyo roo! You &hollltlcooparalo With (h:1l orrIco Il
dll"rl', III "11,111 rf1~' 11.\11
.J Ih,lllen:X:(.'I\/I1"a~OfJYtlfllll!NIICIC()C!lt(llIl1d :Prot,ect YoUt Family From Lead in
Your Home.
Date
NaSIE Rehab SpeciRlist
nol'th..
Homeowner'~ Signature
Mobile Home Grant
Exhibit "H"
Mobile Home Repair Document
This document has been intentionally omitted at the request and approval of
NHSIE and the Agency
AMENDMENT NO. I
HOME AGREEMENT
(2007-2010 HOME Funds)
(Neighborhood Housing Services of the Inland Empire, Inc.)
THIS AMENDMENT NO.1 (the "First Amendment"), dated as of June 29, 2009, by and
between the Redevelopment Agency of the City of San Bernardino, a public body, corporate and
politic (the "Agency") and the Neighborhood Housing Services of the Inland Empire, Inc., a
California nonprofit corporation ("NHS" or NHSIE") amends the HOME Agreement, dated June
4, 2007 (the "Original Agreement"), by and between the Agency and "NHS". The Agency and
NHS agree as follows:
RECITALS
WHEREAS, the Agency and NHS have previously entered into the Original Agreement
(which Original Agreement includes Exhibit "A" attached thereto) wherein NHS has agreed,
without limitation, to develop, manage and support the Homebuyer Education Program for low-
and moderate-income households in the City of San Bernardino (the "City"), in the County of
San Bernardino (the "County"), in the State of California (the "State"), in accordance with and
pursuant to the terms, covenants and conditions of the Agreement; and
WHEREAS, the Agency and NHS desire to amend the Original Agreement pursuant to
the terms, covenants and conditions of this First Amendment (the Original Agreement, as
amended by this First Amendment shall collectively be referred to as the "Agreement"); and
WHEREAS, the Agency and NHS have determined and agreed that this First
Amendment benefits both the Agency and NHS.
NOW, THEREFORE, IN CONSIDERATION OF THE RECITALS MENTIONED
ABOVE, THE MUTUAL PROMISES OF THE AGENCY AND NHS IN THIS AGREEMENT
AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND
SUFFICIENCY OF WHICH ARE HEREBY ACKNOWLEDGED BY THE AGENCY AND
BY NHS, THE AGENCY AND NHS AGREE AS FOLLOWS:
1. Recitals. The above Recitals of this First Amendment shall be incorporated
herein by this reference.
2. Definitions. Initially capitalized terms in this First Amendment shall have the
meanings provided for in the Original Agreement except for those terms specifically defined in
this First Amendment.
3. Title of the Original Agreement. The title of the Original Agreement shall be
changed from: "2007 HOME AGREEMENT (2007-2010 HOME Fnnds)" to "2007
HOMEBUYER EDUCATION PROGRAM AGREEMENT (2007-2010 HOME Funds)."
4846-9953-4851.1
1
4. Introductorv Paragraph. In line one (I) on page one (I) of the introductory
paragraph to the Original Agreement, the words "THIS HOME AGREEMENT ("Agreement") is
made and entered into this 4th day of June 2007, by" shall be deleted in their entirety and
replaced by the following words: "THIS HOMEBUYER EDUCATION PROGRAM
AGREEMENT (the "Agreement") is made and entered into this 4th day of June 2007, by".
5. Hold Harmless. In Article II, Scope of Services and Compensation, Section C,
Other Program Requirements, Hold Harmless, Page 3 of the Original Agreement, the "Hold
Harmless" provision shall be deleted in its entirety and replaced by the following:
"Indemnification. NHS agrees to indemnify, defend with legal counsel reasonably
acceptable to the Agency, protect and hold the City and the Agency, and their respective
directors, officers, members, managers, consultants, contractors, employees, agents and
attorneys, and the successors and assigns of each of them (singularly and collectively, the
"Indemnified Parties" which defined term shall also includes the City and the Agency), harmless
from and against all actions, causes of action, claims, demands, liabilities, damages, losses,
liabilities, obligations, judgments, suits, costs, expenses and fees (including, without limitation,
reasonable attorneys' fees, court costs and expert fees of any nature whatsoever), now or
hereafter arising from or related to: (i) any act or omission of NHS and/or of any of NHS's
directors, officers, members, managers, consultants, contractors, subcontractors, materialmen,
laborers, any other person or entity furnishing or supplying work, services, goods, or supplies in
connection with the performance of this Agreement, employees and agents, and the successors
and/or assigns of each of them (singularly and collectively, the "Indemnifying Parties" which
defined term shall also include NHS), in performing, or failing to perform, its obligations
hereunder, (ii) any default by NHS under this Agreement, subject to any applicable cure period,
(iii) any violation by any of the Indemnifying Parties of any applicable federal, state, municipal
or local laws, statutes, codes, regulations, ordinances, rules, decrees, orders, or any requirements
of any government authority, now or hereafter in existence, as amended from time to time,
including, without limitation, any laws environmental laws (collectively, the "Laws"), (v) any
warranty or representation made in this Agreement that becomes false and untrue, (vi) death,
bodily injury and/or personal injury to any person, and/or (vii) any destruction, loss or damage to
real property or personal property. This indemnification provision shall survive the execution,
delivery, performance and/or termination of this Agreement. Without limiting NSH's
indemnification of the Indemnified Parties, NHS shall provide and maintain, at its sole cost and
expense during the during of this Agreement, the insurance described below covering, without
limitation, the operations ofNHS. Such insurance shall be provided by insurer(s) satisfactory to
the Agency and evidence of such insurance satisfactory to the Agency shall be delivered to the
Interim Executive Director of the Agency and/or to his designee no later than the effective date
ofthis Agreement."
6. General Liabilitv. In Article II, Scope of Services and Compensation, Section C,
Other Program Requirements, General Liability, Page 3 of the Original Agreement, the "General
Liability" provision shall be deleted in its entirety and replaced by the following:
4846-9953-4851.1
2
'"Insurance. No later than the effective date of this Agreement, NHS shall pay,
procure and maintain during the term of this Agreement the insurance policies and insurance
coverage provided for herein and shall furnish, or shall cause to be furnished, to the Agency
duplicate originals or appropriate certificates of the following insurance: (i) commercial
indemnity and liability insurance in the amount of One Million Dollars ($1,000,000.00)
combined single limit per occurrence, naming the Agency and the City and the elected officials,
officers, employees, attorneys and agents of each of them as additional insureds (collectively, the
'"Additional Insureds") with said insurance covering comprehensive general liability including,
but not limited to, contractual liability, acts of subcontractors, premises-operations, explosion,
collapse and underground hazards, if applicable, broad form property damage, and personal
injury including libel, slander and false arrest, (ii) comprehensive automobile liability insurance
covering owned, non-owned and hired vehicles, combined single limit in the amount of One
Million Dollars ($1,000,000.00) per occurrence, (iii) workers' compensation insurance in such
insurance coverage amounts as statutorily required and employer's liability insurance, combined
single limit in the amount of $1 ,000,000, and (iv) errors and omissions and professional liability
insurance, combined single limit in the amount of One Million Dollars ($1,000,000) per
occurrence. Any and all insurance policies required hereunder shall be obtained from insurance
companies admitted in the State of California and rated at least A: XII in the most current Best's
Key Rating Insurance Guide. All said insurance policies shall provide that they may not be
canceled unless the Agency and the City receive written notice of cancellation at least thirty (30)
calendar days prior to the effective date of cancellation. Any and all insurance obtained by NHS
shall be primary to any and all insurance which the Agency and/or City may otherwise carry,
including self insurance, which for all purposes of this Agreement shall be separate and apart
from the requirements of this Agreement. Appropriate insurance means those insurance policies
approved by Agency Counsel consistent with the foregoing. Any and all insurance required
hereunder shall be maintained and kept in force during the term of this Agreement. NHS waives
subrogation and agrees that NHS and the Agency and the City are co-insured. NHS will cause
each insurance carrier obtained by it to waive any subrogation claim. The insurer shall have no
right of subrogation against the Agency, against the City or against any other Additional
Insureds. The Agency, the City and the other Additional Insureds shall be named as additional
insureds on each insurance policy,"
7. Attorney's Fee. In Article III, Section D, Attorney's Fees, Page 5 of the Original
Agreement, all references to the word '"attorney's" shall be deleted in their entirety and replaced
with the following word: '"attorneys"'.
8. Exhibit '"A". In Article I, Section A, Page 7 of the Original Agreement the
number '"227" shall be deleted in its entirety and replaced by the number '"300".
9. Exhibit '"A". In Article I, Section B, Page 7 of the Original Agreement, the last
sentence in Section B shall be deleted in its entirety and replaced with the following last
sentence: '"A total of not less than nine (9) public or private businesses and/or organizations per
year will be targeted in the City of San Bernardino."
10. Exhibit '"A". In Article I, Section D, Page 7 of the Original Agreement, Section D
will be deleted in its entirety and replaced by the following: '"NHS shall train a minimum of one
4846-9953-4851.]
3
thousand two hundred (1,200) potential homebuyers per year. From this total a minimum of
three hundred (300) participants shall be trained who either reside in or work in the City of San
Bernardino,"
11. Exhibit "A". On Page 7 of the Original Agreement, the following new Section
"E" shall be added to Article I of Exhibit "A".
"Section E. NHS shall heavily target and market to San Bernardino residents and
shall regularly track the number of Homebuyer Education Program participants who eventually
become homeowners within the City of San Bernardino. NHS shall provide the City and the
Agency with monthly reports detailing, without limitation, the participants and the families
completing the Homebuyer Education Program and their current relationship to the City with
respect to their employment and/or to their residence within the City. Such monthly reports shall
be reasonably acceptable to the Agency and to the City and shall include, without limitation, the
number of families purchasing a home within the City."
12. Miscellaneous Provisions. This Agreement cancels and supersedes the HOME
Agreement (2000-2003), dated January 22,2001, as executed by and between the Agency and
NHS, as amended by the Amendment No.1 HOME Agreement (2000-2003), dated January 20,
2004, as executed by and between the Agency and NHS, as further amended by the Amendment
No.2 HOME Agreement (2000-2003), dated May 21, 2007, as executed by and between the
Agency and NHS. Further, the Agency and NHS restate and reaffirm the Original Agreement
except as modified by this First Amendment. All terms of the Original Agreement remain in full
force and effect except as modified by this First Amendment. In the event of any inconsistency,
contradiction or ambiguity in the Original Agreement and in the First Amendment, the
inconsistency, contradiction or ambiguity shall be resolved in favor of the First Amendment.
The Agency and NHS have the authority to execute, deliver and perform this First Amendment
and the parties executing this First Amendment on behalf of the Agency and NHS have the
authority to bind the Agency and NHS to this First Amendment.
IN WITNESS WHEREOF, the parties have caused this Amendment No. I to the Original
Agreement to be executed as of the day and year first written above.
NHS
Neighborhood Housing Services ofthe
Inland Empire, Inc.,
a California nonprofit corporation
Dated: Ic i< '7 ;G '7
I '
001'<2-
./ /1~Gcny--'
4846-9953-4851.[
4
. .
Dated:~
Approved As To Fo
Agency Atlorne
4846-9953-4851.\
and Content
AGENCY
Redevelopment Agency of the
City of San Bernardino,
a public body, corporate and politic
C-:A\
By: ~ ",.'
Emil A. Marzullo, Interim Executive Director
5
REDEVELOPMENT AGENCY OF THE CITY OF
SAN BERNARDINO
SINGLE F AMIL Y BEAUTIFICATION GRANT PROGRAM AGREEMENT
(Low-Moderate Housing Fund)
THIS SINGLE FAMILY BEAUTIFICATION GRANT PROGRAM AGREEMENT (the
"Agreement") is made and entered into this 29th day of June 2009 (the "Effective Date"), by and
between the NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE, INC., a
California non-profit corporation (the "Contractor") and the REDEVELOPMENT AGENCY OF
THE CITY OF SAN BERNARDINO (the "Agency"), a public body, corporate and politic. The
Agency and the Contractor agree as follows:
RECITALS
WHEREAS, the Agency and the Contractor have previously entered into the Single
Family Beautification Loan/Grant And Mobile Home Grant Programs (Low-Moderate Housing
Fund and HOME Fund), dated as of February 7, 2005, as modified by that certain Amendment
No. I To The Single-Family Beautification Loan/Grant And Mobile Home Grant Program, dated
as of June 4, 2007, by and between the Agency and the Contractor (collectively, the "Loan and
Grant Agreement"); and
WHEREAS, the Loan and Grant Agreement provides for the following: (i) loan funds
(the "Rehabilitation Loan Program") and grant funds (the "Beautification Grant Program") to
low-moderate income homeowners who reside in the City of San Bernardino (the "City"), in the
County of San Bernardino (the "County"), in the State of California (the "State") to permit such
homeowners to undertake certain housing rehabilitation and correction work, including, without
limitation, asbestos and lead containing materials abatement work, handicap accessibility
improvements and utility energy improvements as described in the Loan and Grant Agreement,
to one family dwellings owned and occupied by such low-moderate homeowners, and (ii) grant
funds (the "Mobile Home Grant Program") to low-income owners of mobile homes who reside
in the City, in the County and in the State to permit, without limitation, such low-income mobile
home owners to make repairs and improvements to their mobile homes in accordance with the
Loan and Grant Agreement); and
WHEREAS, the Agency and the Contractor have previously entered into the Home
Agreement, dated June 4, 2007 (the "Homebuyer Education Program Agreement"), wherein the
Contractor, without limitation, administers, implements and conducts a Homebuyer Education
Program (as defined therein); and
WHEREAS, the Rehabilitation Loan Program, the Beautification Grant Program, the
Mobile Home Grant Program and the Homebuyer Education Program promote and expand the
supply of affordable housing in the City and foster the elimination and prevention of blight; and
WHEREAS, the Agency and the Contractor would like to amend the Homebuyer
Education Program Agreement pursuant to the First Amendment (as defined below) and to
4825-1757-9267.1
I
SIXTH DRAFT - JUNE 23, 2009
execute, to deliver and to perform under a new and separate agreement for each of the
Rehabilitation Loan Program, for the Beautification Grant Program and for the Mobile Home
Grant Program; and
WHEREAS, the Agency and the Contractor desire to terminate the Loan and Grant
Agreement and to replace the Loan and Grant Agreement with the following three (3) new and
separate agreements: (i) this Agreement which provides grant funds to low-moderate income
homeowners who reside in the City, in the County and in the State to permit such homeowners to
undertake certain housing rehabilitation and correction work as described in this Agreement, to
one family dwellings owned and occupied by such low-moderate homeowners, (ii) the Single
Family Rehabilitation Loan Program Agreement (the "Rehabilitation Loan Program
Agreement") which provides loan funds to low-moderate income homeowners who reside in the
City, in the County and in the State to permit such homeowners to undertake certain housing
rehabilitation and correction work as described therein, to one family dwellings owned and
occupied by such low-moderate homeowners, and (iii) the Mobile Home Grant Program
Agreement (the "Mobile Home Grant Program Agreement") which provides grant funds to low-
income owners of mobile homes who reside in the City, in the County and in the State to permit,
without limitation, such low-income mobile home owners to make repairs and improvements to
their mobile homes in accordance with such Mobile Home Grant Program Agreement; and
WHEREAS, the Agency and the Contractor have determined that this Agreement, the
Rehabilitation Loan Program Agreement, the Mobile Home Grant Program Agreement and the
Homebuyer Education Program Agreement, as amended, will promote and expand the supply of
affordable housing in the City and will foster the elimination and prevention of blight; and
WHEREAS, the Loan and Grant Agreement shall not be terminated until the Agency and
the Contractor have entered into and executed this Agreement, the Rehabilitation Loan Program
Agreement, the Mobile Home Grant Program Agreement and the Amendment No. I (the "First
Amendment") to the Homebuyer Education Program Agreement.
NOW, THEREFORE, IN CONSIDERATION OF THE RECITALS
MENTIONED ABOVE, THE MUTUAL PROMISES OF THE AGENCY AND OF THE
CONTRACTOR IN THIS AGREEMENT AND FOR OTHER GOOD AND VALUABLE
CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY
ACKNOWLEDGED BY THE AGENCY AND BY THE CONTRACTOR, THE AGENCY
AND THE CONTRACTOR AGREE AS FOLLOWS:
Section 1. DEFINITIONS OF CERTAIN TERMS. In addition to the words and
phrases, which are defined in the Recitals of this Agreement and/or in this Agreement, the
following words and terms shall have the meaning set forth below:
"County Recorder's Office" means and refers to the county recorder's office for the
County of San Bernardino, State of California.
"Enviromnental Laws" mean and refer to all applicable federal, state, municipal and local
laws, statutes, codes, ordinances, rules, regulations, orders and judgments relating to the
4816-3465-1139.4
2
protection or clean-up of the environment, the use, treatment, storage, transportation,
generation, manufacture, processing, distribution, handling or disposal of, or emission,
discharge or other release or threatened release of hazardous substances, the preservation
or protection of waterways, groundwater, drinking water, air, wildlife, plants or other
natural resources, the health and safety of persons, or the protection of the health and
safety of employees, now or hereafter existing, as the same may be amended, modified or
supplemented from time to time, including, without limitation: the Clean Air Act, as
amended, 42 V.S.C. Section 7401 et seq.; the Federal Water Pollution Control Act, as
amended, 33 V.S.C. Section 1251 et seq.; the Resource Conservation and Recovery Act
of 1976, as amended, 42 V.S.C. Section 6901 et seq.; the Comprehensive Environment
Response, Compensation and Liability Act of 1980, as amended (including the Superfund
Amendments and Reauthorization Act of 1986, "CERCLA"), 42 V.S.C. Section 9601 et
seq.; the Toxic Substances Control Act, as amended, 15 V.S.C. Section 2601 et seq.; the
Occupational Safety and Health Act, as amended, 29 V.S.C. Section 651, the Emergency
Planning and Community Right-to-Know Act of 1986, 42 V.S.C. Section 11001 et seq.;
the Safe Drinking Water Act, as amended, 42 V.S.C. Section 300f et seq.; the California
Health and Safety Code (Section 25100 et seq., Section 25249.5 et seq., Section 39000 et
seq.); the California Water Code (Section 13000 et seq.); the California Environmental
Quality Act ("CEQA"); the California Public Resources Code; all comparable state and
local laws, laws of other jurisdictions or orders and regulations; and any and all common
law requirements, rules and bases of liability regulating, relating to or imposing liability
or standards of conduct concerning pollution or protection of human health or the
environment, as now or may at any time hereafter be in effect.
"Executive Director" means and refers to the Interim Executive Director of the Agency
and his or her authorized representatives, or designees.
"General Contractor Agreement" means and refers to the Single Family Beautification
Grant Program General Contractor Agreement by and between the Qualified Homeowner
and the contractor identified therein (the "General Contractor") as approved, in writing,
by the Contractor. The General Contractor Agreement relates, without limitation, to the
construction, installation and completion by the General Contractor of the Work
described in the General Contractor Agreement. The General Contractor Agreement
shall be executed by and between the Qualified Homeowner and the General Contractor
and shall be accepted, in writing, by the Contractor. The General Contractor Agreement
shall be substantially similar to the General Contractor Agreement attached hereto and
incorporated herein by this reference as "Exhibit "1'2. ".
"Grant" means and refers to each grant transaction approved, granted and made by the
Agency to or for the benefit of the Qualified Homeowner in accordance with this
Agreement. Each Grant made by the Agency to the Qualified Homeowner may not
exceed Ten Thousand Dollars ($10,000); provided, however, in connection with a Grant
in the amount of $10,000 made by the Agency to the Qualified Homeowner, for every
dollar paid by the Qualified Homeowner in excess of the $10,000 Grant Funds amount
that has been disbursed by the Agency and paid to the General Contractor or to any sub-
contactors in accordance with the Program to complete the Improvements, the Agency
4825~1757-9267. ]
3
shall provide a dollar-for-dollar match not to exceed an additional Five Thousand Dollars
($5,000), in the aggregate. In no event shall the Grant Funds paid by the Agency for the
benefit of the Qualified Homeowner to complete the Improvements in connection with
the Home exceed Fifteen Thousand Dollars ($15,000), in the aggregate, without the prior
written approval of the Executive Director. The Qualified Homeowner shall pay all
amounts that exceed the Grant Funds paid by the Agency for the benefit of the Qualified
Homeowner under the Program to enable the Qualified Homeowner to complete the
Improvements in connection with the Qualified Homeowner's Home. For each year
during the term of this Agreement, the Contractor will attempt to approve, complete,
process and finalize eighty-seventy (87) Grants.
"Grant Application" means and refers to the Single Family Beautification Grant Program
Application as fully completed and executed by the Qualified Homeowner. The Grant
Application shall be submitted by the Qualified Homeowner to the Contractor and the
Contractor shall verify that the Grant Application is complete. Each Grant Application
shall contain the information relating to the Qualified Homeowner and the proposed use
of the Grant Funds by the Qualified Homeowner together with a current preliminary title
report or other proof of title acceptable to the Agency for the Home. The Contractor shall
require all Qualified Homeowners to complete the Grant Application substantially similar
to the Grant Application attached hereto and incorporated by reference as Exhibit "fo."
"Grant Disbursement Account" means and refers to a separate custodial deposit account,
which the Contractor shall establish with an FDIC-insured depository institution for the
receipt and disbursement of the Grant Funds in connection with the approval, granting
and making by the Agency to the Qualified Homeowner of the Grant under the Program
in accordance with this Agreement. Such deposit account agreement among the
Contractor, the Agency and such depository institution shall be in a form and substance
as reasonably satisfactory to the Agency. The Contractor shall create and maintain a
separate Grant Disbursement Account for each Grant approved, granted and made by the
Agency for the benefit of each Qualified Homeowner. No other funds of the Contractor
shall be deposited or co-mingled in the Grant Disbursement Account. The Contractor
shall serve as the trustee of the Agency in the administration of all of the Grant Funds or
deposit in each Grant Disbursement Account, including any interest as may accrue
thereon.
"Grant Documents" mean and refer to the following: (i) the Grant Application, (ii) the
Maintenance Grant Needs Document, (iii) the Grant Disclosure, (iv) the Grant Services
Agreement, (v) the Maintenance Agreement Covenant, (vi) the Homeowner's Release
and Waiver, and (vii) this Agreement and such other agreements, documents, instruments
and/or certifications relating to or in connection with the Grant to the Qualified
Homeowner, the Grant Funds and/or the Grant Disbursement Account.
"Grant Funds" mean and refer to the funds delivered by the Agency to or for the benefit
of a Qualified Homeowner in connection with the Grant that the Agency has approved
and granted to the Qualified Homeowner in accordance with this Agreement. Each Grant
made by the Agency to the Qualified Homeowner may not exceed Ten Thousand Dollars
4825-1757-9267,]
4
($10,000); provided, however, in connection with a Grant in the amount of $1 0,000 made
by the Agency to the Qualified Homeowner, for every dollar paid by the Qualified
Homeowner in excess of the $10,000 Grant Funds amount that has been disbursed by the
Agency and paid to the General Contractor or to any subcontactors in accordance with
the Program to complete the Improvements, the Agency shall provide a dollar-for-dollar
match not to exceed an additional Five Thousand Dollars ($5,000), in the aggregate. In
no event shall the Grant Funds paid by the Agency for the benefit of the Qualified
Homeowner to complete and perform the Improvements in connection with the Qualified
Homeowner's Home exceed Fifteen Thousand Dollars ($15,000), in the aggregate,
without the prior written approval of the Executive Director. The Qualified Homeowner
shall timely pay all amounts that exceed the Grant Funds paid by the Agency to or for the
benefit of the Qualified Homeowner under the Program in order to construct, install,
perform and/or complete the Improvements in connection with the Qualified
Homeowner's Home.
"Grant Services Agreement" means and refers to the Single Family Beautification Grant
Program Grant Services Agreement by and between the Qualified Homeowner and the
Contractor. The Grant Services Agreement, without limitation, notifies the Qualified
Homeowner that the Agency has awarded the Grant to the Qualified Homeowner, restates
and certifies the Program qualifications and guidelines, identifies the role of the
Contractor and restates the Qualified Homeowner's duties and responsibilities under the
Program. The Grant Services Agreement must be executed by the Qualified Homeowner
and by the Contractor and must be substantially similar to the Grant Services Agreement
attached hereto and incorporated herein by this reference as Exhibit "F ".
"Hazardous Substances" mean and refer to any pollutant, contaminant, waste and any
toxic, carcinogenic, reactive, corrosive, ignitable, flammable or infectious chemical,
chemical compound or substance or otherwise hazardous wastes, toxic or contaminated
substances or similar materials, including, without limitation, any quantity of asbestos,
urea formaldehyde, PCBs, radon gas, lead, lead-based paint, crude oil or any fraction
thereof, all forms of natural gas, petroleum products, by-products or derivatives,
radioactive substances, methane, hydrogen sulfide or materials, pesticides, waste waters,
or sludges, any of the above of which are subject to regulation, control or remediation
under any Environmental Laws.
"Home" means and refers to the land and a one family dwelling located in the City,
owned by the Qualified Homeowner and resided in by the Qualified Homeowner as its
principal residence. For purposes of this Agreement, a Home shall not include any
duplex, triplex or four-plex dwelling located in the City.
"Homeowner's Release and Waiver" means and refers to the Homeowner's Release and
Waiver, as executed by the Qualified Homeowner and the Contractor. The Homeowner's
Release and Waiver provides, without limitation, that the Contractor shall be permitted to
display yard signs at the Qualified Homeowner's Home and that the Contractor shall be
permitted to photograph or videotape the Qualified Homeowner's Home. The
Homeowner's Release and Waiver shall be substantially similar to the Homeowner's
4825-1757-9267.1
5
Release and Waiver attached hereto and incorporated herein by this reference as Exhibit
"~".
"Improvements" mean and refer to the following types of eligible improvements
(primarily for non-health and safety code violations) to the Qualified Homeowner's
Home that will be permitted under the Program: (i) window and front door replacement,
(ii) driveway repairs, replacements or enhancements, (iii) garage door replacement, (iv)
exterior painting, (v) drought tolerant landscaping including automatic sprinklers, grass
seed, and planting materials (front yard only), (vi) replacement of existing fence with
wrought iron, vinyl, wood or block fencing (front yard only), (vii) parkway
enhancements such as stamped concrete, trees and landscape plantings, (viii) any roof
repairs or replacement, or (ix) any sewer repairs or sewer installation (the "Sewer
Repairs"). In connection with each Grant Application for Sewer Repairs, the Agency
shall have the right to determine whether or not such Sewer Repairs shall be made from
funds disbursed by the Agency from Grant Funds under the Program or from loan
proceeds disbursed by the Agency to an applicant under the Single Family Residence
Rehabilitation Loan Program, or under any other then existing loan program. Should the
Agency determine that the Sewer Repairs will need to be disbursed by the Agency from
loan proceeds pursuant to the Single Family Residence Rehabilitation Loan Program, or
any other then existing loan program, the Contractor shall advise the applicant, in writing,
that the applicant will need to prepare, to execute and to submit a new loan application to
the Contractor under the Single Family Residence Rehabilitation Loan Program, or under
any other then existing loan program, which loan application, without limitation, shall
request the Agency to make a loan to the applicant to permit the applicant to make and to
complete the Sewer Repairs.
"Laws" mean and refer to all federal, state, municipal and local laws, statutes, codes,
ordinances, regulations, rules, orders or judgments, now or hereafter in effect, as
amended from time to time, including, without limitation, the Environmental Laws, all
applicable building, plumbing, mechanical, electrical and health and safety codes and
City ordinances.
"Lead Based Paint Acknowled1ffi1cnt" means and refers to the "Lead Based Paint
Acknowledgment of Receipt" as executed by the Qualified Homeowner and the General
Contractor. The Lead Based Paint Acknowledgment acknowledges receipt by the
Qualified Homeowner of the Lead Based Paint Pamphlet from the General Contractor.
The Lead Based Paint Acknowledgment is attached hereto and incorporated herein by
this reference as Exhibit "a".
"Lead Based Paint Disclosure" means and refers to the "Lead Based Paint Disclosure" by
and between the Qualified Homeowner and the General Contractor. The Lead Based
Paint Disclosure is to be executed by the General Contractor and by the Qualified
Homeowner and is attached hereto and incorporated herein by this reference as Exhibit
":::1.".
4825-]757-9267.]
6
"Low-Moderate Income Housing Funds" mean and refer to the Low-Moderate Income
Housing Funds that the Agency intends to use to make the Grant to or for the benefit of
the Qualified Homeowner in accordance with this Agreement and with Health and Safety
Code Section 33334.3 et seq. The Agency and the Contractor will offer the Grant to a
Qualified Homeowner who earns not more than 120% of the current annual median
income for the San Bernardino County area, adjusted for family size (as those terms are
defined by California Health and Safety Code Section 50053.5) as further illustrated in
Exhibit "A" of this Agreement (the "2009 Income Limits") and are subject to annual
adjustments.
"Maintenance Agreement Covenant" means and refers to the "Residential Property
Maintenance Agreement Containing Covenants Affecting Real Property (Single Family
Beautification Grant Program) by and between the Agency and the Qualified
Homeowner. The Maintenance Agreement Covenant provides, without limitation, for
maintenance-related duties and obligations to be performed and completed by the
Qualified Homeowner in connection with the Qualified Homeowner's Home. The
Maintenance Agreement Covenant shall be executed and acknowledged by and between
the Agency and the Qualified Homeowner, and must be in recordable form for
recordation by the Contractor or by the Agency in the County Recorder's Office. The
Maintenance Agreement Covenant must be substantially similar to the Maintenance
Agreement Covenant attached hereto and incorporated herein by this reference as Exhibit
"..J-".
"Maintenance Class" means and refers to the maintenance class conducted by the
Contractor and attended by the Qualified Homeowners after the Agency has approved the
Grant to a Qualified Homeowner. In the Maintenance Class, the Qualified Homeowner
shall learn, without limitation, to properly maintain the Qualified Homeowner's Home
and/or the Improvements to be constructed, installed, performed and completed thereon.
"Maintenance Grant Needs Document" means and refers to the Maintenance Grant Needs
Document, as fully completed and executed by the Qualified Homeowner in connection
with the Program. The Maintenance Grant Needs Document is attached hereto and
incorporated herein by this reference as Exhibit "L".
"Program" means and refers to the program created, administered and maintained by or
for the Agency in connection with the Grant, the disbursement by the Agency to the
Contractor of the Grant Funds to or for the benefit of each Qualified Homeowner in
accordance with this Agreement and the performance and completion by the Contractor
of the Services. Upon written notice trom the Agency, the Contractor shall offer the
Program to Qualified Homeowners in the specific Target Area or Target Areas as may be
designated, in writing, by the Agency to the Contractor from time to time during the term
of this Agreement. In the absence of specific direction from the Executive Director of the
Agency, the Contractor shall offer the Program on an as-needed, first-come, first-served
basis, to Qualified Homeowners throughout the City for the term of this Agreement.
However, in case of an emergency, of an urgent need or of a life-threatening situation, the
4825-1757-9267.1
7
Contractor may process a Grant Application ahead of other Grant Applications subject to
the approval by the Executive Director.
"Oualified Homeowner" means and refers to: (i) a person or household which owns and
occupies its Home as its principal residence within the City or within the Target Area or
the Target Areas of the City, as may be specifically designed, in writing, from time to
time by the Agency for at least twelve (12) continuous months preceding the date of
submission of its Grant Application and its Maintenance Needs Application Document to
the Contractor, (ii) has a personal or household income level, adjusted for family size,
during the twelve (12) months preceding the date of submission of its Grant Application
and its Maintenance Needs Application Document to the Contractor within the ranges of
income for low-moderate income households, adjusted for family size, as set forth in
Exhibit "A", (iii) must complete, execute and submit the Grant Application and the
Maintenance Needs Application Document to the Contractor, (iv) must agree to attend
the Maintenance Class conducted by the Contractor, (v) must agree to live in its Home, as
its principal residence, for not less than five (5) years after the recordation of the
Maintenance Agreement Covenant in the County Recorder's Office, (vi) must execute
and acknowledge, where appropriate, all Grant Documents, (vii) must agree to maintain
the Home pursuant to the Maintenance Agreement Covenant for a period of ten (10)
years following the recordation of such Maintenance Agreement Covenant in the County
Recorder's Office, and (viii) must not be the recipient of a loan or other grant from the
Agency for the past ten (10) years. On a case-by-case basis, the Executive Director of the
Agency, in its sole and absolute discretion, may waive this one (I) year residency
requirement.
"Services" mean and refer, without limitation, to the Program origination, the
preparation, execution and delivery of the Grant Documents, the Grant Fund
disbursement control, related accounting, Work monitor (course of construction builder
contract) services and other services to be provided by the Contractor to or for the benefit
of the Agency in accordance with this Agreement. The various elements of the Services
are more fully set forth in the "Scope of Services" attached hereto as Exhibit "C." For
each year of the Agreement, the Contractor will attempt to approve, complete, process
and finalize eighty-seventy (87) Grants to Qualified Homeowners.
"Target Area" or "Target Areas" mean and refer to the specific area, areas, neighborhood
or neighborhoods in the City in which the Agency has instructed the Contractor to offer
the Program to Qualified Homeowners to better maximize the effectiveness of the Grant
Funds, or in any other specific area, areas, neighborhood or neighborhoods hereinafter
created by the Agency and/or throughout the City (excluding County territory), as
amended from time to time by the Agency in its sole and absolute discretion. Should the
Agency request the Contractor to offer the Program to a specific Target Area or to
specific Target Areas, the Agency shall consult with and provide in writing the Target
Area or the Target Areas to the Contractor. The Contractor shall then offer the Program
to Qualified Homeowners in the specific Target Area or Target Areas until the Contractor
is otherwise advised in writing from the Agency, as such Target Area or Target Areas
4825-1757-9267.1
8
may be adjusted and amended from time by the Agency III its sole and absolute
discretion.
In the absence of specific direction from the Executive Director of the Agency,
the Contractor shall offer the Program on an as-needed, first-come, first-served basis, to
Qualified Homeowners throughout the City. However, in the case of an emergency, of
an urgent need or of a life-threatening situation, the Contractor may process a Grant
Application ahead of other Grant Applications subject to the approval of the Executive
Director.
"Work" means and refers, without limitation, to the Improvements, or any part thereof, to
be constructed, installed, performed and/or completed by a state-licensed General
Contractor on each Home pursuant to the terms, covenants and conditions of the General
Contractor Agreement. Only the Improvements and/or the items of Work set forth in the
General Contractor Agreement shall be authorized for payment by the Contractor, up to
the maximum amount authorized under the terms of the Program for such Improvements,
or any part thereof. Any costs of Improvements and/or of Work in excess of the
maximum amount of the Program (which are not the fault of such General Contractor)
shall be paid for by the Qualified Homeowner unless approved in writing by the
Executive Director.
Section 2.
Contractor and the
Agreement.
PERFORMANCE BY CONTRACTOR AND BY AGENCY. The
Agency agree to perform the terms, covenants and conditions of this
Section 3. SCOPE OF SERVICES. The Contractor agrees to provide the Services
to the Agency as set forth herein and as described in the Scope of Services attached hereto as
Exhibit "C" for the Program.. Promptly following the date of approval of this Agreement by the
governing board of the Agency, the Contractor, without limitation, shall or will continue to:
(A) cause the Grant Disbursement Account to be established, or maintained, and the
general form of an FDIC - insured deposit account agreement acceptable to the Agency to
be fully executed by the Contractor, by the depository institution and by the Agency
within thirty (30) calendar days following the date of approval of this Agreement;
(B) continue to use the general form of the Grant Application in connection with an
application by a Qualified Homeowner for the approval by the Agency to the Qualified
Homeowner of the Grant under the Program in accordance with this Agreement. The
applicant for the Grant must submit to the Contractor federal and state income tax returns
filed by the applicant with the appropriate taxing authorities for the past two (2) years
which tax returns must be acceptable to the Contractor in its sole and absolute discretion;
(C) subject to the completion of the tasks described in Section 3(A) and in Section
3(B) above, continue the process of receiving and reviewing Grant Applications and
provide the Services as provided for in the Agreement. The Contractor shall offer the
Program to Qualified Homeowners in the Target Area or the Target Areas specifically
4R25-1757-9267.!
9
determined and designated by the Agency or, if no Target Area is or no Target Areas are
specifically determined and designated by the Agency, then on an as needed, first-come,
first-served basis, to Qualified Homeowners throughout the City; provided, however, in
the case of an emergency, of an urgent need or of a life-threatening situation, the
Contractor may process a Grant Application ahead of other Grant Applications subject to
the approval of the Executive Director;
(D) transmit a copy of a completed set of the Grant Documents to the Executive
Director of the Agency, together with: (i) a recommendation from the Contractor to the
Agency to approve the Grant Application and the Grant to the Qualified Homeowner, and
(ii) a request from the Contractor to the Agency for a transfer of the Grant Funds by the
Agency for the account of the Qualified Homeowner. The Executive Director shall either
authorize the funding of such Grant or reject the request for funding on behalf of the
Agency within ten (10) business days of receipt from the Contractor. Any rejection ofa
Grant Application shall be in writing and shall state the reasons for such action. Each
acceptance of a Grant Application by the Agency shall be evidenced by the signature of
the Executive Director of the Grant Documents, where designated. All Grant Documents
shall be executed, acknowledged, where designated, and completed by the Qualified
Homeowner and by the Contractor, and the disbursement of Grant Funds by the Agency
to or for the benefit of the Qualified Homeowner shall occur within sixty (60) calendar
days following the date of submission by the Contractor to the Executive Director of the
funding request, or the Grant Documents shall be of no further force or effect;
(E) no fees, charges or expenses shall be payable by any applicant to the Contractor
or to the Agency for a Grant, except from the Grant Funds, nor shall the Contractor
charge a Qualified Homeowner for any cost or service in connection with the origination
or subsequent administration of the Grant during the time the Improvements and/or the
Work is constructed, installed, performed and/or completed at the Home, except for the
Maintenance Class fee, or as authorized under the Program by the Executive Director;
(F) instruct the Executive Director to transfer the Grant Funds for the account of each
Qualified Homeowner to the Grant Disbursement Account as set forth in Section 3(0),
above, upon confirmation by the Contractor that the Grant Documents for the Program
are executed and complete and the Maintenance Agreement Covenant (and any other
documents to be recorded in the County Recorder's Office) are ready for recordation;
(G) deliver a fully executed and acknowledged, where designated, original set of the
Grant Documents for each Grant (except for the Maintenance Agreement Covenant
which shall be recorded by the Contractor on behalf of the Agency in the County
Recorder's Office) to the Agency upon request of funding and transfer of the Grant Funds
for the account of the Qualified Homeowner to the Grant Disbursement Account;
(H) verify that no Grant Funds are disbursed from the Grant Disbursement Account
for the account of a Qualified Homeowner except: (i) to pay a state-licensed General
Contractor and/or state-licensed subcontractor for the Improvements and/or for the Work
constructed, installed, performed and/or completed at the Home pursuant to the General
4825-1757~9267.1
10
Contractor Agreement (less a ten percent (10%) retention pending completion of the
Improvements and/or of the Work and final executed written release of all mechanics and
materials liens from the General Contractor and/or from all subcontractors). No
disbursement of the Grant Funds from the Grant Disbursement Account shall be
authorized for any building materials or equipment items which are not physically
delivered at the Home before the date of payment of such Grant Funds to the General
Contractor and/or to the subcontractor or (ii) to pay a Grant title fee or cost amount
expressly authorized in writing by the Executive Director;
(I) prepare and maintain a Grant Funds disbursement ledger for all payments
authorized and made by the Contractor to the General Contractors and/or to the
subcontractors for the account and debit to each Qualified Homeowner under each Grant
made by the Agency to or for the benefit of the Qualified Homeowner in accordance with
this Agreement. Such ledger shall show each payment by date and reference the
particular Grant, Grant Documents and name of the Qualified Homeowner to which it
corresponds. Such ledger shall also include a monthly starting and ending balance for the
Grant Disbursement Account, a final reconciliation of the adjusted balance of each Grant
upon the completion of the Improvements and/or of the Work, and such other accounting
information as the Executive Director may request. A copy of such ledger shall be
submitted to the Executive Director each month with the first such monthly submittal due
on the first day of the next month following the date of the initial deposit of the Grant
Funds by the Contractor and/or by the Agency into the Grant Disbursement Account;
(1) No Improvements and/or Work shall be authorized for payment by the Contractor
unless the Grant Documents are complete and the Contractor has received a fully
executed copy of the General Contractor Agreement by and between the General
Contractor and the Qualified Homeowner. Once the Improvements and/or the Work has
commenced on a particular Home, neither the Qualified Homeowner, the General
Contractor nor the subcontractor shall authorize an amendment or modification of such
contract to include any item of Work, which is not eligible for payment using the Grant
Funds under the terms and conditions of the Grant under the Program. Each such
contract by and between the General Contractor and the Qualified Homeowner, the
General Contractor and the subcontractor, and/or the subcontractor and the Qualified
Homeowner shall include a section, which recites the words ofthe first two (2) sentences
of this Section 3(1).
Section 4. TIME OF PERFORMANCE OF SERVICES. The Services to be
performed hereunder by the Contractor shall be undertaken and completed in such sequence as to
assure expeditious completion and to best carry out the purposes of the Program and this
Agreement. All Services required hereunder shall begin upon the execution of this Agreement.
Section 5. TERM OF AGREEMENT. This Agreement shall take effect upon
approval by the governing board of the Agency and the complete execution by the parties. The
Agreement shall remain in effect through July I, 2010, subject to annual approval and
appropriation by the United States Department of Housing and Urban Development ("HUD").
4825-1757-9267,]
11
Section 6.
COMPENSATION PAYABLE BY AGENCY TO CONTRACTOR.
(A) The Agency shall annually compensate the Contractor for the performance of the
Services using the Low-Moderate Income Housing Funds in accordance with the following
schedule:
$270,400.00
Annual Program Administration Fee for
CONTRACTOR
$ I ,080,000
Beautification Grant Program
$ I 350.400
(B) From and after the Effective Date of this Agreement and for the remaining term of
this Agreement, the annual Program Administration Fee payable by the Agency to the Contractor
as compensation for the Services performed by the Contractor under this Agreement shall be
paid by the Agency directly to the Contractor, payable in twelve (12) equal monthly installments
of$22,533.33 each during the Term ofthis Agreement, in the aggregate amount of $270,400.00.
The Contractor shall invoice the Agency monthly in equal installments of $22,533.33, in the
aggregate annual amount of $270,400.00.
(C) Payment of each monthly installment in the amount of $22,533.33 for the
performance by the Contractor to the Agency of the Services will be made by the Agency to the
Contractor as of the first day of each calendar month with the first such payment due on the first
day of the next calendar month following the date of the complete execution of the Agreement
by the parties.
Section 7. PERSONNEL OF CONTRACTOR. The Contractor represents that it
has, or will secure at its own expense, all personnel required to perform the Services. All of the
Services required hereunder will be performed by persons who are either employed by or under
the supervision and control of the Contractor, and all personnel engaged in the Services shall be
competent and fully qualified to perform such Services.
Section 8. INDEPENDENT CONTRACTOR. All acts of the Contractor and all
others acting on behalf of the Contractor relating to the performance of this Agreement, shall be
performed as independent contractors and not as agents, officers, or employees of the Agency.
The Contractor has no authority to bind or incur any obligation on behalf of the Agency. The
Contractor has no authority or responsibility to exercise any right or power vested in the Agency.
No agent, officer, or employee of the Agency shall be considered an agent or employee of the
Contractor. It is understood by both the Contractor and the Agency that this Agreement shall not
under any circumstance be construed or considered to create an employer-employee relationship
or a joint venture as between the Contractor and the Agency. The Contractor is and at all times
during the Term of this Agreement shall represent and conduct itself as an independent
contractor and not as an agent or employee of the Agency. The Contractor shall be responsible
to the Agency only for the requirements and results specified in this Agreement, and except as
expressly provided in this Agreement, shall not be subject to control by the Agency with respect
4825-1757-9267.1
12
to the physical action or activities of the Contractor in fulfillment of this Agreement. The
Contractor has control over the manner and means of performing the Services under this
Agreement so long as consistent with the requirements of the Program. The Contractor is
permitted to provide services to others during the same period Services are provided to the
Agency under this Agreement. If necessary, the Contractor has the responsibility for employing
other persons or firms to assist the Contractor in fulfilling the terms and obligations under this
Agreement. If in the performance of this Agreement any third persons are retained as
subcontractors by the Contractor, such persons shall be entirely and exclusively under the
direction, supervision, and control of the Contractor. All terms of employment including hours,
wages, working conditions, discipline, hiring, and discharging or any other term of employment
or requirements of law shall be determined by the Contractor. The Contractor hereby agrees to
indemnify, defend (if requested by Agency), protect and hold the Agency harmless from any and
all claims that may be made against the Agency or based upon any contention by any employee
of the Contractor or by any third party that an employer-employee relationship or joint venture
exists between any person or entity and the Agency, by reason of the performance of any of the
Services under this Agreement.
Section 9. PAYMENT OF AND TRANSFER OF GRANT FUNDS TO GRANT
DISBURSEMENT ACCOUNT. The Agency shall promptly honor each request by the
Contractor for the Agency to transfer Grant Funds to the Contractor who will in turn deposit the
Grant Funds to the Grant Disbursement Account to fund each approved Grant as submitted by
the Contractor to the Agency under Section 3(D). Within sixty (60) calendar days following
receipt of each request for remittance of the Grant Funds, the Agency shall transfer by bank
check to the Contractor such Grant Funds to use as provided herein.
Section 10. COMMERCIAL GENERAL LIABILITY INSURANCE.
AUTOMOBILE INSURANCE. WORKERS' COMPENSATION INSURANCE.
EMPLOYER'S LIABILITY INSURANCE. ERRORS AND OMISSIONS AND
PROFESSIONAL LIABILITY INSURANCE.
(A) The Contractor shall obtain and keep in force during the term of this Agreement,
at its sole cost and expense, the following insurance policies: (i) a commercial general liability
policy of insurance with coverage at least as broad as "'Insurance Services Office Commercial
General Liability Form (GOOO1)", in the amount of One Million Dollars ($1,000,000) combined
single limit per occurrence, naming the Agency and the City and the elected officials, officers,
employees, attorneys and agents of each of them as additional insureds (collectively, the
"Additional Insureds") with said insurance covering comprehensive general liability including,
but not limited to, contractual liability, assumed contractual liability under this Agreement, acts
of subcontractors, premises-operations, explosion, collapse and underground hazards, if
applicable, broad form property damage, and personal injury including libel, slander and false
arrest, (ii) comprehensive automobile liability insurance covering owned, non-owned and hired
vehicles by or for the Contractor, combined single limit in the amount of One Million Dollars
($1,000,000) per occurrence, naming the Additional Insureds as additional insureds on each
automobile insurance policy, (iii) workers' compensation insurance in such insurance coverage
amounts as statutorily required, or similar insurance in form and amounts required by law, and
employer's liability insurance, combined single limit in the amount of One Million Dollars
4825-]757-9267.1
13
($1,000,000), and (iv) errors and omissions and professional liability, combined single limit in
the amount of One Million Dollars ($1,000,000) per occurrence.
(B) Any and all insurance policies required hereunder shall be obtained from
insurance companies admitted in the State of California and rated at least A: Xli in the most
current Best's Key Rating Insurance Guide. In no event shall the Contractor be permitted or
entitled to assign to any third party rights of action which the Contractor may have against the
Agency. All said insurance policies shall provide that they may not be canceled unless the
Agency and the City receive written notice of cancellation at least thirty (30) calendar days prior
to the effective date of cancellation. Any and all insurance obtained by the Contractor shall be
primary to and shall not be contributing with any insurance carried by the Agency or by the City
whose insurance shall be considered excess insurance only. Any insurance which the Agency
and/or City may otherwise carry, including self insurance, for all purposes of this Agreement
shall be separate and apart from the requirements of this Agreement. Legal counsel for the
Agency must approve each insurance policy required in Section 10(A) of this Agreement. The
Contractor waives subrogation and agrees that the Contractor, the Agency and the City are co-
insured. The insurer shall have no right of subrogation against the Agency, against the City or
against any of the other Additional Insureds. The Additional Insureds shall be named as
additional insureds on each insurance policy.
(C) All insurance which the Contractor shall carry or maintain pursuant to this Section
10 shall be in such form, for such amounts, for such periods of time as the Agency may require
or approve.
(D) The Contractor shall deliver or cause to be delivered to the Agency concurrently
upon the execution of this Agreement an endorsement of the insurance policies required in this
Section 10(A) of this Agreement evidencing the existence of the insurance coverage required by
the Agency under Section lO(A) of this Agreement and shall also deliver, no later than thirty
(30) calendar days prior to the expiration of any insurance policy, a certificate of insurance
evidencing each renewal policy covering the same risks.
Section 11. INDEMNIFICATION.
(A) The Contractor agrees to indemnify, defend with legal counsel reasonably
acceptable to the Agency, protect and hold the City and the Agency, and their respective elected
officials, directors, officers, members, managers, consultants, contractors, employees, agents and
attorneys, and the successors and assigns of each of them (singularly and collectively, the
"Indemnified Parties" which defined term shall also includes the City and the Agency), harmless
from and against all actions, causes of action, claims, demands, liabilities, damages, losses,
liabilities, obligations, judgments, suits, costs, expenses and fees (including, without limitation,
reasonable attorneys' fees, court costs and expert fees of any nature whatsoever), now or
hereafter arising from or related to: (i) any act or omission of the Contractor and/or of any of the
Contractor's directors, officers, members, managers, consultants, contractors, subcontractors,
materialmen, laborers, any other person or entity furnishing or supplying work, services, goods,
or supplies in connection with the performance of this Agreement, employees and agents, and the
successors and/or assigns of each of them (singularly and collectively, the "Indemnifying
4825-1757-9267.1
14
Parties" which defined term shall also include the Contractor), in performing, or failing to
perform, its obligations hereunder, (ii) any default by the Contractor under this Agreement,
subject to any applicable cure period, (iii) any violation by any of the Indemnifying Parties of
any Laws, (iv) any warranty or representation made by the Contractor to the Agency in this
Agreement that is or becomes false and untrue, (v) death, bodily injury and/or personal injury to
any person, (vi) any destruction, loss or damage to real property or personal property, (vii) the
presence of any Hazardous Substances at, on, in, above, under or about any Home owned by a
Qualified Homeowner resulting, directly or indirectly, from the acts or omissions of any
Indemnifying Parties, and/or (viii) the aggravation of any environmental condition by any
Indemnifying Parties at, on, in, above, under or about any Home owned by a Qualified
Homeowner. Without limiting the Contractor's indemnification of the Indemnified Parties, the
Contractor shall provide and maintain, at its sole cost and expense during the term of this
Agreement, the insurance described in Section 10(A) of this Agreement. Such insurance shall be
provided by insurer(s) satisfactory to the Agency and evidence of such insurance satisfactory to
the Agency shall be delivered to the Executive Director no later than the Effective Date of this
Agreement.
(B) The Agency shall indemnify, defend (if requested by the Contractor) and hold
harmless the Contractor, its agents, officers, and employees, from all claims, loss, demands and
liability for damages for personal injury, bodily injury or property damage suffered by reason of
any act or omission of the Agency or any of its officers or employees or agents under this
Agreement except where such action or omission giving rise to such a claim is caused by or is
the result of an action, omission or request of the Contractor and/or of any of the other
Indemnifying Parties, or is alleged to arise out of the execution of this Agreement. The
provisions of Section I I (A) and Section I I (B) shall survive the execution, delivery,
performance, expiration or early termination ofthis Agreement.
Section 12. DEFAULTS AND BREACH - GENERAL. The failure or delay by
either party to perform any material term or provision of this Agreement shall constitute a default
hereunder; provided, however, that if the party who is otherwise claimed to be in default by the
other party commences to cure, correct or remedy the alleged default within thirty (30) calendar
days after receipt of written notice specifying such default and shall diligently complete such
cure, correction or remedy, such party shall not be deemed to be in default hereunder. A default
shall also occur under this Agreement whenever a representation and/or warranty made in this
Agreement is or becomes false or untrue. A default shall also occur under this Agreement
whenever a party files, or has filed against it, a petition in bankruptcy, is or becomes insolvent, is
unable to pay its debts as they come due, assih'IlS its assets for the benefit of creditors, or a
receiver, trustee or custodian is appointed by a court to exercise control over all or substantially
all of the assets of the party and such receiver, trustee or custodian is not discharged by the court
within sixty (60) calendar days after said appointment date. The party which may claim that a
default has occurred shall give written notice of default to the party in default specifying the
alleged default. Delay in giving such notice shall not constitute a waiver of any default nor shall
it change the time of default; provided, however, the injured party shall have no right to exercise
any remedy for a default hereunder without delivering the written default notice as specified
herein. Any failure or delay by a party in asserting any of its rights and remedies as to any
default shall not operate as a waiver of any default or of any rights or remedies associated with a
4825-1757-9267.\
15
default, and the rights and remedies of the parties are cumulative and the exercise by either party
of one or more of such rights or remedies shall not preclude the exercise by it, at the same or
different times, of any other rights or remedies for the same default or any other default by the
other party. In the event that a default of either party may remain uncured for more than thirty
(30) calendar days following written notice, as provided above, a "breach" shall be deemed to
have occurred. In the event of a breach, the party who is not in default shall be entitled to
terminate this Agreement and seek any appropriate remedy or damages by initiating legal
proceedings. If any action or proceeding is brought to enforce the terms hereof or declare rights
hereunder, it shall be brought in the Superior Court of the County of San Bernardino, San
Bernardino District, State of California. The governing Laws to be applied in any such action or
proceeding shall be the Laws of the State of California. The prevailing party in any such legal
proceedings shall be entitled to recover as an element of its costs of bringing such suit, and not as
part of its damages, its reasonable attorneys' fees, court costs, expert witness fees and consultant
fees and costs. The costs, salary and expenses of the City Attorney and members of his office in
such action or proceeding on behalf of the Agency shall be considered as "attorneys' fees" for
purposes of this Section.
Section 13. NONDISCRIMINATION. During the Contractor's performance of the
Services, the Contractor shall not discriminate on the grounds of race, religion, creed, color,
national origin, age, ancestry, physical handicap, medical condition, marital status, sex, or sexual
orientation in the performance of the Services, including, without limitation, in the selection and
retention of employees, general contractors and subcontractors and the procurement of materials
and equipment, except as provided in Section 12940 of the California Government Code.
Section 14. CONFLICT OF INTEREST. The Contractor warrants, by execution of
this Agreement, that it has no interest, present or contemplated, in the Program or in any Home
benefited thereby or Work performed on any Home using the Grant and the Grant Funds. The
Contractor further warrants that it owns or possesses no interest in real property, business
interests or owner of income (other than such amounts of compensation payable by the Agency
to the Contractor for the Services under this Agreement) that will be affected by the Program or,
alternatively, if such interest exists or arises the Contractor will promptly file with the Agency an
affidavit disclosing any such interest.
Section 15. AMENDMENTS. All amendments to this Agreement shall be subject to
the approval of both parties in the sole discretion of each of them, mutual and in writing. The
Executive Director of the Agency is authorized to make non-substantive changes, clarifications,
corrections to the Agreement, including budget line item adjustments, provided such actions are
approved by legal counsel for the Agency and do not increase the Agency's monetary annual
appropriation to the Contractor as approved by the governing board ofthe Agency.
Section 16. TERMINATION.
(A) This Agreement may be terminated for any reason by either party who is not then
in default upon thirty (30) calendar days prior written notice to the other party. In such event, the
Contractor shall be entitled to receive compensation for Services pro-rated through the date of
such termination, provided that the Services have been rendered.
4825-]757-9267.]
16
(B) In the event of a termination of the Agreement as a result of a breach, the rights
and duties of the parties shall be as set forth in Section 12.
(C) In the event of any termination of this Agreement, the Contractor shall promptly
return all Grant Funds that have been disbursed by the Agency to the Contractor with the
exception of any Grant Funds that have been paid by the Agency to the Contractor and that have
been properly disbursed by the Contractor to or for the benefit of the Qualified Homeowner
under this Agreement, without charge or expense to the Agency.
Section 17. ASSIGNMENT. It is mutually understood and agreed that this
Agreement shall be binding upon the Agency and its successors and assigns and upon the
Contractor and its permitted successors and permitted assigns. The Agency may assign this
Agreement, without obtaining the prior consent or approval of the Contractor. The Contractor
may not assign this Agreement without obtaining the prior written consent of the Agency, which
written consent may be given or withheld by the Agency in its sole and absolute discretion. Any
assignment or attempt to assign this Agreement by the Contractor shall be void.
Section 18. NOTICES. Communications, notices, bills, invoices or reports required
by this Agreement shall be in writing and shall be deemed to have been given when actually
delivered, if given by hand delivery or transmitted by overnight courier service, or if mailed,
three (3) business days after being deposited in the United States mail, postage prepaid, to the
address noted below:
Agencv
Economic Development Agency
of the City of San Bernardino
Attention: Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 92401
Phone: (909) 663-1044
Fax: (909) 888-9413
Contractor
Neighborhood Housing Services of
the Inland Empire, Inc.
Attention: Executive Director
1390 North "0" Street
San Bernardino, California 92405
Phone: (909) 884-6891
Fax: (909) 889-4085
Either party may change its address for receipt of written notice by notifying the other
party in writing of a new address for delivering notice to such party.
Section 19. REPRESENTATION AND WARRANTY OF CONTRACTOR. The
Contractor hereby represents and warrants to the Agency as follows:
(A) the Contractor is a California nonprofit corporation duly organized, existing, and
authorized to transact business in California;
(B) the corporate charter and by-laws of the Contractor authorize the Contractor to
provide the Services to the Agency and the governing board and membership of the Contractor
have previously taken all action necessary to authorize the execution of this Agreement by the
Contractor;
4825.1757-9267.\
17
(C) the Contractor is qualified to perform the Services and shall timely perform and
complete the Services in a professional manner.
Section 20. CONDITIONS PRECEDENT. The validity and enforcement of this
Agreement is subject to the execution and delivery by the Agency and by the Contractor of the
following Agreements: (i) the Rehabilitation Loan Program Agreement, (ii) the Mobile Home
Grant Program Agreement, and (iii) the First Amendment to the Homebuyer Education Program
Agreement.
Section 21. GRANT FUNDS AND GRANT DOCUMENTS ARE THE
PROPERTY OF THE AGENCY. The Grant Documents for each Grant are the property and
asset of the Agency. The Contractor has no property interest in any such Grant Documents and
the Contractor shall not transfer, assign or pledge as collateral or claim any other security interest
in any such Grant Documents. All ofthe Grant Documents are the property of the Agency, and
the Contractor shall maintain all such Grant Documents in its possession as confidential
consumer business records of the Qualified Homeowner. All Grant Funds disbursed by the
Agency to the Contractor for the benefit of a Qualified Homeowner are the property of the
Agency until paid by the Contractor to the General Contractor upon the completion of the Work
at the Home for the account of the Qualified Homeowner under the applicable Grant Documents.
Section 22. NON-ELIGIBILITY OF HOMEOWNER. Once the Agency has
approved the Grant Application for the Qualified Homeowner and has disbursed the Grant Funds
to the Contactor for the benefit of the Qualified Homeowner under this Agreement, the Qualified
Homeowner now or hereafter shall have no right to apply for and to receive any other grant or
loan being offered by the Agency to the general public under any grant or loan program,
including, without limitation, any grant being offered by the Agency under the Mobile Home
Grant Program Agreement, or any loan being offered by the Agency under the Single Family
Rehabilitation Loan Program Agreement, until ten (10) years after the date that the Agency has
paid the last installment of the Grant Funds to the Contractor for the benefit of the Qualified
Homeowner under this Agreement.
Section 23. GENERAL PROVISIONS. This Agreement constitutes the sole
agreement between the parties. All prior conversations, agreements or representations relating
hereto are integrated in this Agreement. No oral agreement, representation or warranty shall be
binding upon the parties. If any provision of this Agreement shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining portions of this
Agreement shall not in any way be affected or impaired thereby. Failure of any party to enforce
any provision of this Agreement shall not constitute a waiver of the right to compel enforcement
of the same provision or any remaining provisions of this Agreement. Headings at the beginning
of each section or subsection are solely for the convenience of the parties and are not a part of
this Agreement. Whenever required by the context of this Agreement, the singular shall include
the plural and the masculine shall include the feminine and vice versa. This Agreement shall not
be construed as if it had been prepared by one of the parties, but rather as if all parties had
prepared the same. Unless otherwise indicated, all references to sections are to this Agreement.
All exhibits referred to in this Agreement are attached hereto and incorporated herein by this
4825-1757-9267.1
18
reference. If the date on which any action is required to be performed under the terms of this
Agreement is not a business day, the action shall be taken on the next succeeding business day.
This Agreement may be executed in one or more counterparts each of which shall be an original
but all of which together shall constitute but one original Agreement. This Agreement may be
executed by facsimile signatures, and each facsimile counterpart when taken together shall be
deemed an original Agreement. Time is of the essence in this Agreement.
IN WITNESS WHEREOF, the Contractor and the Agency have caused this Agreement
to be duly executed on the date first above written.
AGENCY
Dated:
7/;;;)J
Redevelopment Agency of the
City of San Bernardino,
""blkbW~~~
By: ~",' .../
Emil A. Marzul,u, xecutive Director
Approved as to Form:
\~
Agency Co un
CONTRACTOR
Date:
lp . if 7 ,,0 5
Neighborhood Housing Services
ofthe Inland Empire, Inc.,
a Cal1fo;?Jrofit corporation
BI~/ :f I4=;
Name: I/c.l~ . 4<:'1:0,- L
Title: Executive Director
Date:
By:
Name:
Title:
4825-1757-9267.1
19
EXHIBIT "A"
2009 Income Limits
4825-1757-9267.1
20
EXHIBIT "B"
4825-1757-9267.1
21
EXHIBIT "C"
SCOPE OF SERVICES
(Description of Program)
A. Contractor's Administration Annual Fee
The Agency shall annually compensate the Contractor in the total sum of Two Hundred Seventy
Thousand Four Hundred Dollars ($270,400.00) for the administration and the implementation by
the Contractor of the Program herein and for the Services rendered under this Agreement, subject
to the annual approval and appropriation by the United States Department of Housing and Urban
Development ("HUD"). The Contractor shall invoice the Agency monthly in equal installments
of Twenty-Two Thousand Five Hundred Thirty-Three Dollars and 33/100 ($22,533.33), in the
aggregate annual amount of Two Hundred Seventy Thousand Four Hundred Dollars
($270,400.00).
B. Sin!!le Familv Beautification Grant Pro!!ram (the "Pro!!ram") ($1,350,400)
The Contractor shall accept the Grant Applications and the Maintenance Grant Needs Document
from respective Qualified Homeowner applicants to determine income and improvement
eligibility (see Exhibit "A" to this Agreement), to determine equity in the Home and to verify
ownership and length of ownership by obtaining a preliminary title report or other pertinent
documentation from a reputable title company. The Contractor shall offer the Program to
Qualified Homeowners in the Target Area or in the Target Areas specifically determined and
designated by the Agency or, if no Target Area is or no Target Areas are specifically determined
and designated by the Agency, then on an as needed, first-come, first-served basis, to Qualified
Homeowners throughout the City of San Bernardino. However, in the case of an emergency, of
an urgent need or of a life-threatening situation, the Contractor may process a Grant Application
ahead of other Grant Applications subject to the approval by the Executive Director. The
Improvements allowed under the Program are described in Section "C" below of this Scope of
Services.
C. Eli!!ible Improvements Permitted under the Pro!!fam
The following types of Improvements are permitted in connection with the Program: (i)
window and front door replacement, (ii) driveway repairs, replacements or
enhancements, (iii) garage door replacement, (iv) exterior painting, (v) drought tolerant
landscaping including automatic sprinklers, grass seed, and planting materials (front yard
only) in accordance with the Agency Landscaping Guidelines, (vi) replacement of
existing fence with wrought iron, vinyl, wood or block fencing (front yard only), (vii)
parkway enhancements such as stamped concrete, trees and landscape plantings, (viii)
roofrepairs and replacement, or (ix) the Sewer Repairs. In connection with each Grant
Application for Sewer Repairs, the Agency shall have the right to determine whether or
not such Sewer Repairs shall be made from funds disbursed by the Agency from Grant
Funds under the Program or from loan proceeds disbursed by the Agency to an applicant
4825-1757-9267.1
22
under the Single Family Residence Rehabilitation Loan Program, or under any other then
existing loan program. Should the Agency determine that the Sewer Repairs will need to
be disbursed by the Agency from loan proceeds pursuant to the Single Family Residence
Rehabilitation Loan Program, or any other then existing loan program, the Contractor
shall advise the applicant, in writing, that the applicant will need to prepare, to execute
and to submit a new loan application to the Contractor under the Single Family Residence
Rehabilitation Loan Program, or under any other then existing loan program, which loan
application, without limitation, shall request the Agency to make a loan to the applicant
to permit the applicant to make and to complete the Sewer Repairs.
The maximum amount of the Grant permitted under the Program is the sum of Ten Thousand
Dollars ($10,000) per Home; provided, however, in connection with a Grant in the amount of
$10,000 made by the Agency to the Qualified Homeowner, for every dollar paid by the Qualified
Homeowner in excess of the $10,000 Grant Funds amount that has been disbursed by the Agency
and paid to the General Contractor or to any sub-contactors in accordance with the Program to
complete the Improvements, the Agency shall provide a dollar-for-dollar match not to exceed an
additional Five Thousand Dollars ($5,000), in the aggregate. In no event shall the Grant Funds
paid by the Agency to or for the benefit of the Qualified Homeowner to complete the
Improvements in connection with the Qualified Homeowner's Home exceed Fifteen Thousand
Dollars ($15,000), in the aggregate, without the prior written approval of the Executive Director.
D. Aoolicant Elicibilitv Reauirements for the Prol!ram
1. Qualified Homeowner must be an owner and occupant of the Home, as its principal
residence, for a minimum period of one (1) year; on a case-by-case basis, and depending on the
circumstances, this one (I) year requirement may be waived by the Executive Director or hislher
designee; the Contractor shall obtain evidence of ownership and length of ownership and
residency.
2. Qualified Homeowner must execute and complete a Grant Application and a
Maintenance Grant Needs Document and must deliver and submit the Grant Application and the
Maintenance Grant Needs Document, as fully executed and completed, to the Contractor. The
Contractor shall receive, review, verify and approve or reject the Grant Application and the
Maintenance Grant Needs Document. If the Grant Application and/or the Maintenance Grant
Needs Document is not acceptable to the Contractor, the Contractor shall notify the applicant in
writing within ten (10) business days from the receipt by the Contractor of the Grant Application
and/or of the Maintenance Grant Need Document and the Contractor shall provide the applicant
with the reasons for the rejection by the Contractor.
3. Qualified Homeowner must have a personal or household income level, adjusted for
family size, during the twelve (12) months preceding the date of submission of the Grant
Application and the Maintenance Grant Needs Document to the Contractor within the ranges of
income for low-moderate income households, adjusted for family size, as set forth in Exhibit "A"
to this Agreement.,
4825-1757-9267.1
23
4. Qualified Homeowner must agree to: (i) attend a Maintenance Class conducted by the
Contractor and (ii) live in the Qualified Homeowner's Home, as its principal residence, for not
less than five (5) years after the recordation of the Maintenance Agreement Covenant in the
County Recorder's Office.
5. Qualified Homeowner must execute and acknowledge, where appropriate, the Grant
Documents. The Qualified Homeowner, without limitation, shall execute and notarize the
Maintenance Agreement Covenant and the Contractor or the Agency shall record, or shall cause
the recordation of, the Maintenance Agreement Covenant in the County Recorder's Office. The
Maintenance Agreement Covenant shall provide, without limitation, that the Qualified
Homeowner shall maintain the Home as provided therein for a period of ten (10) years from the
date of the recordation of the Maintenance Agreement Covenant in the County Recorder's
Office.
6. Qualified Homeowner must not be the recipient of a grant or of a loan from the Agency
for the past ten (10) years.
E. Guidelines
The Contractor shall conduct, administer, implement, comply with and perform the following
guidelines in connection with the Program:
1. The Contractor shall administer and implement the Program herein and shall utilize the
applicable and pertinent sections of the Agency's Grant Policies and Procedures Manual for
guidance on processing and packaging all Grants under this Agreement, if applicable, under the
direction of the Executive Director.
2. The Contractor shall accept the Grant Applications and the Maintenance Grant Needs
Documents from respective Qualified Homeowner applicants to determine income and
improvement eligibility, to determine equity in the Home, and to verify ownership and length of
ownership by obtaining a preliminary title report or other pertinent documentation from a
reputable title company. The Contractor shall offer the Program to Qualified Homeowners in the
Target Area or the Target Areas specifically determined and designated by the Agency or, if no
Target Area or no Target Areas are specifically determined and designated by the Agency, then
on an as needed, first-come, first-served basis, to Qualified Homeowners throughout the City of
San Bernardino. However, in the case of an emergency, of an urgent need or of a life-
threatening situation, the Contractor may process a Grant Application on an urgent basis ahead
of other Grant Applications subject to the approval of the Executive Director.
3. The Contractor shall inspect eligible Homes and properties to determine the type of
health and safety and code violation repair work needed, including asbestos and lead-based paint
removal and/or remediation, the age and overall condition of the Home and to ensure that all
Homes repaired or improved under the Program when completed are aesthetically pleasing and
in compliance with all Laws. If the Contractor determines that the Improvements to be
completed are related more to health, safety and/or code violations, the Contractor shall advise
4825-1757-9267.1
24
the Qualified Homeowner applicant to complete, execute and deliver an application under the
Rehabilitation Loan Program.
4. The Contractor shall prepare and complete Work write-ups, cost estimates, and bid
packages for the Improvements to be constructed, installed, performed and completed for cach
Qualified Homeowner's Home.
5. The Contractor shall ensure that all Improvements and/or Work constructed, installed,
performed and/or completed in connection with the Qualified Homeowner's Home shall be
constructed, installed, performed and completed by pre-qualified State licensed General
Contractors and/or State licensed subcontractors. The Contractor shall also require that each
General Contractor and/or subcontractor constructing, installing, performing and/or completing
the Improvements and/or the Work in connection with the Qualified Homeowner's Home under
the Program shall possess a current business license in the City and shall possess a current
license with the State of California Contractor's License Board. The Contractor shall be
required, whenever feasible, to obtain a minimum of three (3) bids from General Contractors for
all Improvements and/or for all Work to be constructed, installed, performed and/or completed in
connection with the Qualified Homeowner's Home. All bids shall be made available by the
Contractor to the Qualified Homeowner for review. All Improvements and/or Work constructed,
installed, performed and/or completed by General Contractors and/or by subcontractors in
connection with the Qualified Homeowner's Home shall be approved and authorized by the
Qualified Homeowner, and shall be completed within a specified timeframe acceptable to the
Qualified Homeowner and the General Contractors and/or the subcontractors.
6. The Contractor shall solicit bids for the construction, installation, performance and/or the
completion of the Improvements and/or of the Work in connection with the Qualified
Homeowner's Home from a list of pre-approved General Contractors. The Contractor shall
assist the Qualified Homeowners with the selection of a General Contractor, and shall assist the
Qualified Homeowner in connection with the execution of the General Contractor Agreement,
including, without limitation, a determination as to the scope of the Improvements and/or ofthe
scope of Work to be constructed, installed, performed and/or completed by the General
Contractor, any schedule of performance, other schedules, conduct pre-construction and walk-
through conferences.
7. Prior to the execution of the General Contractor Agreement and prior to any funding by
the Contractor of any Grant Funds to the General Contractor for the proposed Improvements
and/or Work to be constructed, installed, performed and/or completed, the Contractor, the
Qualified Homeowner, the General Contractor and the members of the Agency application
review committee (the "Application Review Committee") appointed and assigned by the Agency
to approve, administer and oversee the construction, the installation, the performance and/or the
completion of the Improvements and/or of the Work shall meet at regular intervals to discuss the
Improvements and/or the Work to be constructed, installed, performed and/or completed in
connection with the Qualified Homeowner's Home and the methodology used or to be used to
identify, quantify and assist the Qualified Homeowner.
4825-1757-9267.1
25
8. The Agency and the Qualified Homeowner must review, approve, execute and
acknowledge, where designated, the Grant Documents. The Grant Documents shall include,
without limitation, the Maintenance Agreement Covenant which document must be executed and
acknowledged by the Agency and by the Qualified Homeowner and must be recorded by the
Contractor or by the Agency in the County Recorder's Office. The General Contractor and/or
any subcontractor cannot commence the construction, the installation, the performance and/or
the completion of the Improvements and/or of the Work in connection with a Qualified
Homeowner's Home until: (i) the Grant Documents have been executed and acknowledged,
where appropriate, by the Agency and by the Qualified Homeowner, and (ii) all recordable
instruments, documents and/or agreements in connection with the Grant, including, without
limitation, the Maintenance Agreement Covenant have been recorded by or for the Contractor or
the Agency in the County Recorder's Office.
9. The General Contractor shall obtain one or more permits as required by applicable Laws
to construct, to install, to perform and/or to complete the Improvements and/or the Work at the
Qualified Homeowner's Home. At the time that the Contractor submits an invoice to the Agency
for payment of all or a portion of the Grant Funds in connection with the Grant made by the
Agency to the Qualified Homeowner, the Contractor shall provide the Agency with a copy of
each permit that is or will be required to construct, to install, to perform and/or to complete the
Improvements and/or the Work in connection with the Qualified Homeowner's Home. The
Agency shall have no obligation to pay any invoice submitted by the Contractor to the Qualified
Homeowner until the Agency has received and approved each permit issued for the
Improvements and/or for the Work completed by the General Contactor and/or by the
subcontractor and identified in the invoice.
10. The Contractor shall inspect and monitor the Improvements and/or the Work while in
progress and shall supervise the payment invoice procedures to ensure that all General
Contractors and subcontractors are meeting obligations and that progress payments and
retentions are paid in a timely manner.
11. The Contractor shall receive and collect from the General Contractors and/or from the
subcontractors an executed lien release under one of the following lien releases, as appropriate:
(i) an unconditional waiver and release upon progress payment or (ii) an unconditional waiver
and release upon final payment. The Contractor shall not make the final payment of the
remaining Grant Funds to any General Contractor until the General Contractor and/or all
subcontractors have executed and the Contractor has received the conditional waiver and release
upon final payment or the unconditional waiver and release upon final payment.
12. The Contractor shall coordinate final inspection and payment of the General Contractor
Agreement retention with the Qualified Homeowner, with the General Contractor and with the
Agency. The contract retention shall not be paid by the Contractor to the General Contractors
and/or to the subcontractors until all time periods for filing liens have expired and no liens have
been filed under applicable Laws.
13. Prior to the payment by the Contractor of the Grant Funds, or any portion thereof, to the
General Contractor, for the construction, for the installation, for the performance and/or for the
4825-1757-9267.1
26
completion of the Improvements and/or of the Work in connection with a Qualified
Homeowner's Home, the Contractor shall notify the Agency that the Contractor has received an
invoice for payment. Within ten (10) business days from receipt by the Contractor of the
invoice, the Contractor and the Agency shall inspect and approve the Improvements and/or the
Work identified in the invoice and constructed, installed, performed and/or completed by the
General Contractor and/or by any subcontractor. The Contractor shall not pay any such invoice
for the construction, installation, performance and/or completion of the Improvements and/or of
the Work until the Contractor and the Agency have inspected and approved, in writing, the
Improvements and/or the Work constructed, installed, performed and/or completed by the
General Contractor and/or by any subcontractors. The Agency reserves the right to approve
payment of an invoice in circumstances when no physical inspection is needed as determined by
the Agency in its sole and absolute discretion (i.e., fumigation for termites).
14. The Contractor shall maintain accurate records for inspection by the Agency concerning
income and program occupancy of all persons obtaining assistance from the Contractor pursuant
to this Agreement including, but not limited to, the Grant Application and the other Grant
Documents, proof of ownership, income verification, comparables or appraisals and/or Work
write-ups. The original Grant Documents shall be executed and acknowledged, where
appropriate, by the Agency and by the Qualified Homeowner, shall be for the benefit of the
Agency and shall be delivered by the Contractor to the Agency in connection with each Grant
made by the Agency to the Qualified Homeowner.
15. The Contractor shall also provide quarterly reports to the Agency, or as otherwise
required by the Agency, upon the request of the Executive Director to the Contractor.
16. From time to time, the Agency and the Contractor shall coordinate inspection of the
Improvements and/or of the Work at the Qualified Homeowner's Home to ensure that the
Improvements and/or the Work are performed, installed, constructed and completed in a good
workmanlike manner and in accordance with all applicable Laws.
17. The Contractor shall provide any and all services required by the Executive Director in
order to effectively implement and complete the Services under this Agreement.
4825-]757-9267.1(
27
SFR Beautification Grant
Exhibit "A"
2009 Income Limits
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SFR Beautification Grant
Exhibit "B"
General Contractor Agreement
NHSIE: Single Family Beautification Grant Program
Neighborhood Housing
Senrices
ofthe
Inland Empire, Inc.
~~I ("--....
. L\LVNHSIE
NEIGHBORHOOD
HOUSING SERVICES
Of THE INU.NO EM'IRE,INC
SINGLE FAMILY BEAUTIFICATION GRANT PROGRAM
GENERAL CONTRACTOR AGREEMENT
'~~'-
File No: <<FileNo>>
Owner(sl:
Rehab Address:
THIS AGREEMENT is made this day of _by and between
the "Owner(s)" hereinafter called the "Contractor".
hereinafter called
WITNESSETH, that the Contractor and the Owner(s) for the consideration stated herein agree
as follows:
1. RECITALS: This Agreement is made and entered into with respect to the following facts:
a) That the Redevelopment Agency of the City of San Bernardino (the "Agency") has a program to
help low-moderate income resident-owners of single family homes (which shall not include any
duplex, triplex or four-plex dwellings) make certain improvements to their homes, called the
Single Family Beautificalion Grant Program; and,
b) Neighborhood Housing Services of the Inland Empire, Inc. (the "NHSIE'J has contracted with
the Agency to administer said housing beautification program, pursuant to applicable laws;
and,
c) Owner has determined to participate in such program by causing certain improvements to be
made to his/her property, and has qualified for a grant to undertake such improvements; and,
d) Contractor attests that its company is properly licensed and fully quaiified to perform the work
proposed to be accomplished in this Agreement, under terms and conditions hereinafter set
forth; and,
e) Owner and the Contractor acknowledge and agree that the NHSIE and the Agency are third
party beneficiaries of this Agreement, consistent with the NHSIE mission of housing
rehabilitation.
2. CONSIDERATION: THE UNDERSIGNED CONTRACTOR proposes to furnish labor and materials,
complete in accordance with the specifications attached hereto as Exhibit "A" and incorporated herein
by this reference for the sum of ($ I, with payments to be made
within ninety (90) calendar days from the completion of the work, subject to any additions and
deductions as provided herein.
3. WORK: Contractor agrees to complete all work in accordance with the contract documents, all
applicable laws, and in a workmanlike manner, according to generally acceptable, standard building
practices. Any alteration or deviation from the attached specifications will be executed only upon
written consent of the property Owner(s), the Contractor, and the NHSIE. All materials are guaranteed
to be as specified. No extra charges or costs will be paid. Contractor will be solely liable if he/she
has neglected to properly evaluate the extent of the rehabilitation work. The performance under this
Agreement is subject to forced delays when due to strikes, accidents or acts of God.
4847-9332-5572.2
NHSIE: Single Family Beautification Grant Program
4. INDEMNIFICATION: The Contractor agrees to indemnify, defend and hold harmless the NHSIE,
the Agency and their authorized officers, members, directors, employees, agents, contractors,
subcontractors and volunteers (collectively, the "Indemnified Parties") from any and all claims, actions,
losses, damages, suits, fees (including, without limitation, reasonable attorneys' fees, court costs,
expert witness fees and consultant fees), obligations and/or liabilities (singularly, a "Claim" and
collectively, the "Claims"), now or hereafter arising out of this Agreement from any cause whatsoever,
including acts, errors or omissions of any person and for any costs or expenses incurred by the
NHSIE, by the Agency and/or by any of the other Indemnified Parties on account of any Claim
therefore, except where such indemnification is prohibited by law. This indemnification provision shall
survive the execution, the performance, the termination and the expiration of this Agreement.
5. INSURANCE: Without in anyway affecting the indemnity herein provided and in addition thereto,
the Contractor shall secure and maintain throughout the term of Agreement, and shall continue one (1)
year after the performance by the Contractor of the work under this Agreement, the following types of
insurance:
a. Workers' Compensation - a program of Workers' Compensation insurance or State-approved Self
Insurance Program in amount or form to meet all applicable requirements of the Labor Code of the
State of California, including Employer's Liability with $1,000,000 limits, covering all persons providing
services on behalf of the Contractor and all risks to such persons under this Agreement.
b. Comprehensive General and Automobile Liability Insurance - This coverage to include, without
limitation, comprehensive general liability policy of insurance with coverage at least as broad as
"Insurance Services Office Commercial General Liability Form (G0001), in the amount not less than
$1,000,000 combined single limit per occurrence, with said insurance covering comprehensive general
liability including, but not limited to, contractual liability, assumed contractual liability under this
Agreement, acts of subcontractors, premises-operations, explosion, collapse and underground
hazards, if applicable, broad form property damage, bodily injury and personal injury including libel,
slander and false arrest and automobile liability coverage on owned, hired and non-owned vehicles.
c. Errors and Omissions Liability Insurance - Combined single limits of $1 ,000,000 and $2,000,000 in
the aggregate or Professional Liability insurance with limits of at least $1,000,000 per claim or
occurrence.
6. ADDITIONAL NAMED INSURED, PRIMARY INSURANCE AND BEST'S KEY RATING: All
policies, except for the Workers' Compensation, the Errors and Omissions and the Professional
Liability policies shall contain additional endorsements naming the NHSIE, the Agency and the other
I ndemnified Parties as additional named insureds with respect to liabilities arising out of the
performance of the services hereunder. All insurance obtained by the Contractor shall be primary to
and shall not be contributing with any insurance carried by the NHSIE, by the Agency and/or by any of
the other Indemnified Parties. All insurance policies required under this Agreement shall be obtained
from insurance companies admitted in the State of California and rated at least A: XII in the most
current Best's Key Rating Insurance Guide.
7. WAIVER OF SUBROGATION OF RIGHTS: Except for Errors and Omissions Liability, the
Contractor shall require the insurance carriers of the above required coverage's to waive all rights of
subrogation against the NHSIE, against the Agency and against the other Indemnified Parties.
8. PROOF OF COVERAGE: Contractor shall immediately furnish certificates of insurance to the
NHSIE and to the Agency evidencing the insurance coverage, including endorsements, above
required prior to the commencement of performance of the services hereunder, which certificates shall
provide that such insurance shall not be terminated or expire without thirty (30) calendar days prior
written notice to the NHSIE and to the Agency, and the Contractor shall maintain such insurance from
4847-9332-5572.2
NHSIE: Single Family Beautification Grant Program
the time the Contractor commences performance of services hereunder until one (1) year after the
completion of such services. Within sixty (60) calendar days after the commencement of this
Agreement, the Contractor shall furnish the NHSIE and the Agency with certified copies of the policies
and all endorsements.
9. INSURANCE REVIEW: The above insurance requirements are subject to review by the NHSIE.
10. ACCEPTANCE & START: The bid and proposal shall be accepted by the Owner(s) and by the
NHSIE within sixty (60) calendar days from the date established by the NHSIE for its receipt, provided
that no work shall be commenced by the Contractor until a written Notice to Proceed has been issued
by the Owner(s). Work will begin no later than ten (10) calendar days after the Notice to Proceed is
issued. Contractor will not assign this Agreement without the prior written consent of the Owner(s) and
of the NHSIE. Any request for assignment shall be addressed to the NHSIE.
11. PERMITS: Contractor shall procure all City of San Bernardino and all other governing authority
permits and licenses, including a municipal business license, and shall pay all charges and fees for the
same, and shall give all notices necessary and incidental to the due and lawful prosecution of the work
as it separately pertains to each party. Permits and licenses required for corresponding elements of
the work to be performed shall be obtained prior to commencing such work and all associated costs
are specifically included in the contract amounts.
12. CHANGE ORDERS: No change in the work, as described in the Work Write-up, shall be made
except upon the mutual written consent of the Owner(s), the Contractor and the NHSIE. Contractor is
not authorized to deviate from the Work Write-up or specifications unless so directed in writing by the
NHSIE. Any Change Orders shall describe the nature of the additional work, the estimated time for
completion thereof, and the compensation to be paid to the Contractor for the performance of same.
13. OWNER(S) EXPECTATIONS: Owner(s) will permit the Contractor to use existing utilities at no
cost, such as lighting, heating, power and water, as needed to carry out the work. Owner(s) will
cooperate with the Contractor to facilitate work performance, including the removal and replacement of
rugs, coverings, miscellaneous household goods and furniture as necessary, unless otherwise noted.
14. CONTRACTOR EXPECTATIONS: Contractor will keep the premises clean and orderly during the
course of the daily work and will remove all debris at the completion of the work. Materials and
equipment which belong to the Contractor shall be removed from the premises. Work should be
planned so that the Owner(s) are not forced to relocate during the rehabilitation work, except under
unusual circumstances.
15. COMPLETION: Contractor agrees to satisfactorily complete all the work within forty-five (45)
calendar days from the noticed start date. The parties agree that time is of the essence in this
Agreement.
16. LIEN RELEASES: Contractor shall promptly pay all valid bills and charges for material, labor, or
otherwise in connection with or arising out of the construction, and shall hold the Owner(s) of the
property free and harmless against all liens and claims of lien for labor and material, or either, filed
against the property or any part thereof, and from and against all expense and liability in connection
therewith, including, but not limited to, court costs and attorneys' fees resulting or arising there from.
Should any liens or claim of lien be filed for record against the property, or should the Owner(s)
receive notice of any unpaid bill or charge in connection with the construction, the Contractor shall
forthwith either pay and discharge the same and cause the same to be released of record, or shall
furnish the Owner(s) with proper indemnity either by satisfactory corporate surety bond or satisfactory
title policy, which indemnity shall also be subject to approval of the Lien Holder. Contractor shall
4847-9332-5572.2
NHSIE: Single Family Beautification Grant Program
furnish the Owner(s) and the NHSIE with affidavits and satisfactory releases of liens or claims for any
liens from subcontractors, laborers and suppliers for completed work or installed materials.
17. NON-EXECUTION: In the event that the Owner(s) will not execute the End of Project Work
Release, the NHSIE reserves the right to authorize payment to the Contractor for the work completed.
The NHSIE and the Contractor must certify that all of the Contractor's work has been performed in a
professional, workmanlike manner, and has adhered to the property specification standards. Upon the
written approval by the NHSIE, a payment request will be forwarded to the Agency for release of said
funds.
18. WARRANTY: Contractor will guarantee work for a period of one (1) year from the date of the final
written acceptance of all work required by the Agreement. Furthermore, the Contractor shall furnish
the Owner(s), in care of the NHSIE, with copies of all manufacturers' and suppliers' written guarantees
and warranties covering materials and equipment furnished under this Agreement. Contractor will
allow the NHSIE access to examine and to inspect all rehabilitation work. NHSIE shall have the right,
but not the obligation, at all reasonable times, to inspect the books and records of the Contractor
pertaining to the work and to the materials which are the subject of this Agreement.
19. NOTICES: Notices pursuant to this Agreement shall be given by personal service to the person,
or by deposit in the custody of the US Postal Service, within a sealed envelope containing the notices,
postage pre-paid, and addressed as listed below. Such notice shall be deemed to be received within
forty-eight (48) hours from the time of mailing, if mailed as provided above. The following information
shall be used for mailed correspondence and communications related to this Agreement:
20. lEAD BASE PAINT ACKNOWLEDGEMENT AND lEAD BASE PAINT DISCLOSURE: Prior to
the commencement of the work: (i) the Contractor shall deliver to the Owner the lead Base Paint
Disclosure and the lead Base Paint Acknowledgement, (ii) the Owner shall execute and date the lead
Base Paint Acknowledgement and the lead Base Paint Disclosure, and (iii) the Contractor shall
deliver to both the NHSIE and to the Agency the lead Base Paint Acknowledgement and the lead
Base Paint Disclosure, as executed by the Owner.
OWNER INFORMATION:
CONTRACTOR DBA:
(Contractor's Name)
(Owner's Name)
(Mailing Address)
(Rehab Address)
(State)
(Zip Code)
(City)
(State)
(Zip Code)
(City)
(Telephone)
(FAX)
PROJECT ADMINISTRATOR: Neighborhood Housing Services (NHSIE)
1390 North "0" Street
San Bernardino, CA 92405
Telephone: (909) 884-6891
FAX: (909) 884-4085
4847-9332-5572.2
NHSIE: Single Family Beautification Grant Program
-----------------------------------------------
ACCEPTANCE AND SIGNATURES
CONTRACTOR:
OWNER(S):
Date:
Date:
THE ABOVE AGREEMENT HAS BEEN REVIEWED AND APPROVED
For NHSIE:
4847-9332-5572.2
Date:
NHSIE: Single Family Beautification Grant Program
4847-9332-5572.2
Exhibit "A"
Work Specifications
SFR Beautification Grant
Exhibit "e"
Scope of Services (attached to Grant Program Agreement)
SFR Beautification Grant
Exhibit "D"
Checklist
BEAUTIFICATION GRANT APPLICATION APPROVAL CHECKLIST
Date of Review:
Homeowner!!} name:
Property Address:
Grant Amount:
NHS Due Diligence:
Qualified Homeowner Verification:
_ Resided at residence for at least one (1) year
Attended Maintenance Class on:
_ Maintenance Covenant Agreement complete
_ Income eligibility verified
Subject Property Equity Determination:
_ Property profile I encumbrances - Debt I Equity Ratio:
()'. ',I:" IlIp \ll'llirl ;11011:
_ Property Profile: Name(s) on grant application MUST match the one(s)
listed as "Owner" or "Co-owner" on property profile
_ Preliminary title report (or other pertinent documentation)
_ Legal owner & signatory on Covenant Agreement & Grant Agreement
Property Eligibility Verification:
_ Parcel Map ("Exhibit A")
_ Located within Target Area (if applicable)
_ Verification property located in City of San Bernardino
Eligible Improvements:
_ Scope of Work consistent with "Eligible Improvements" (see list on
reverse side)
Construction Bids:
1. Name of contractor:
2. Name of contractor:
3. Name of contractor:
High Bid Amount: $
Mid Bid Amount: $
High Bid Amoun: $
Amount of owner contribution: $
Eligible Improvements List:
_ Window and front door replacement
_ Driveway repairs, replacements, or enhancements
_ Garage door replacement
_ Exterior painting
_ Drought tolerant landscaping (front yard only): automatic
sprinklers, grass seed, planting materials
_ Replace existing fence (front yard only): wrought iron, vinyl, wood,
or block fencing
_ Parkway enhancements: stamped concrete, trees, landscape
plantings
_ Any roof repairs or replacement
_ Any sewer repairs or replacement (if equity in home and
homeowners financial situation qualifies them for grant monies as
determined by Application Review Committee)
SFR Beautification Grant
Exhibit "E"
Grant Application
For Office Use ONLY
Application Mailed out on: I
Redevelopment Agency of the City of San Bernardino-
Single Family Beautification Grant Program Application
Neighborhood Housing Services ofthe
Inland Empire, Inc. (NHSIE)
Applicant's Name (Last, First, MI)
Applicant's Date of Birth
Applicant's Spouse's Name or Co-Applicant
Co-Applicant's Date of Birth
Street Address
Applicant's Phone Number
(Office Use Only)
Map Verification
Date: Initials:
City/Zip
DO YOU HAVE ANY NOTICE OF VIOLATION WITH THE CITY OF SAN BERNARDINO CODE ENFORCEMENT
OR ANY OTHER CITY AGENCIES YES IF YES, PROVIDE COPY. NO
y
r d'
'd
L' 11
r '
'd
h h
ears 1ve m reS1 ence: 1st a l persons 1 vmg m reS1 ence ot er t an you: -I
Name Relationship Age Emploved
Yes No I
. I
-
Any income must be shown in income section. Must show proof of income to quality. Written verification must be fOf\varded with aoolication.
MONTHLY HOUSEHOLD GROSS INCOME
AFDC ~ Social Security ~ SSIISSP ~
Disabilitv ~ Emnlovment ~ Food Stamns ~
Unemnlovment Ins ~ PensionlRetire ~ Alimonv ~
Child Sunnort ~ OtherIReal Pron, ~
Total Monthly Income: $ Total Annual Income $
2009 Income Level (Subject
to annual change)
Number of Persons Per Household
3 4 5 6
7
8
83,600
96.000 102,150
Ethnicity: (Please check all that apply) Optional
C, Sr. Citizen(s)-60 or older
o Hispanic
o Black
o Female Head of Household
o Asian/Pacific
o White, Non-Hispanic
o Disabled One or More
o American Indian
o Other
I certify under penalty of perjury that the information provided above is correct to the best of my knowledge, I
understand that the inclusloo of any willful misrepresentation on this form constitutes ground for rejection of this
application and recapture of any financial benefit I may have received, I authorize the NHSIE and/or the
Redevelopment Agency of the City of San Bernardmo to examine and to verify any and all information
provided in this application.
Date:
Signature
Date:
4840-6254-4643.1
SFR Beautification Grant
Exhibit "F"
Grant Services Agreement
~
NEIGHBORHOOD
HOUSING SERVICES
DFTHE INLAND EMPIRE,IIIC
Neighborhood Housing Services
of the
Inland Empire, Inc.
1390 North D Street! San Bernardino, CA 92405/ Phone 909-884-68911 Fax 909-884-8899/ www.nhsie.orl!
Single Family Beautification Grant Program
GRANT SERVICES AGREEMENT
Owner Name(s)
Owner Address:
CONGRATULATIONSI You have been awarded the Single Family Beautification Grant
(the "Grant") in accordance with the Single Family Beautification Grant Program (the "Program")
from the Redevelopment Agency of the City of San Bernardino (the "Agency") in concert with the
Neighborhood Housing Services of the Inland Empire, Inc. (the "NHSIE'? A Grant means
that you may have certain housing repairs, and/or improvement needs taken care of at no cost to
you. The Grant is being made by the Agency to you under the Single Family Beautification Grant
Program and is in an amount not to exceed $ (except as provided for in Section 5 of
the Program Qualifications and Guidelines below).
NHSIE is authorized by the Agency to administer the Program. Priority is given on an as-
needed, first-come, first-served basis to applicants who have completed necessary paperwork.
However, in the case of an emergency, of an urgent need or of a life-threatening situation, the
NHSIE may process a Grant application (the "Grant Application") ahead of other Grant
Applications. Focus of the work will be to the exterior beautification (curb appeal) of the home
and of the front yard landscaping within limitations. Please be aware that with restricted funds it is
not possible to do everything that everyone wants. Nor is it possible to address all deficiencies,
code and/or safety items with this minor Grant. In order to serve as many homes as possible,
work priorities will be decided by the NHSIE on an individual basis. For example, appliance
repairs, backyard patios, or custom items are not covered; front landscaping, roof replacement,
fences may be covered.
PROGRAM QUALIFICATIONS & GUIDELINES: Applicants must understand and agree to the
following:
1. Assistance is available to low-moderate income eligible owner-occupants who live in the
City of San Bernardino;
2. Homeowner must complete the Grant Application and the Maintenance Needs Application
Document and must submit to the NHSIE the Grant Application, the Maintenance Needs
Application Document and necessary qualifying verifications, as requested;
4849-8797-9267.1
SINGLE FAMILY BEAUTIFICATION GRANT SERVICES AGREEMENT
3. Homeowners must own their home and occupy it as their principal residence for a
minimum of one (1) year prior to the submission of the Grant Application and of the
Maintenance Needs Application Document to the NHSIE;
4. Personal household Income level, adjusted for family size, during the twelve (12) months
preceding the date of submission of the Grant Application and the Maintenance Needs
Application Document must not exceed 120% of county median for low-moderate income
households (the "low-moderate income"), as determined by the HUD income guidelines for
families, as adjusted from time to time; all household sources of income earned from
persons who are eighteen years and older and who reside in the household as their
principal residence shall be considered;
5. Up to $10,000 in Grant funds may be available per household for minor repairs; provided,
however, the actual amount of the Grant may be lower depending on the nature of repairs.
If the Grant from the Agency to the homeowner is in the amount of $10,000 and if the
Grant funds have been disbursed under the Program to pay for the work that has been
completed, the Agency will make a dollar-for-dollar match of an additional $5,000, in the
aggregate, for every dollar paid by the homeowner to complete the work. In no event shall
the Grant from the Agency to the homeowner under the Program exceed $15,000, in the
aggregate, unless specially agreed to in writing by the Agency;
6. Final determination as to the Scope of Work (as defined below) rests with the NHSIE
Redevelopment Specialist, based upon need, extent of work, urgency of situation,
code violations, funding availability and other issues;
7. Homeowners must continue to upkeep their improved property after the work is done, and
show their commitment by signing the RESIDENTIAL PROPERTY MAINTENANCE
AGREEMENT CONTAINING COVENANTS AFFECTING REAL PROPERTY (Single
Family Beautification Grant Program) (the "Covenant Agreement");
8. Homeowners must execute and acknowledge all Grant Documents (as defined in the
Single Family Beautification Grant Program Agreement (the "Beautification Grant Program
Agreement");
9. Homeowners must not have received a loan or grant from the Agency for the past ten (10)
years, all loans made by the Agency, if any, to the homeowner must be paid in full by the
homeowner, and the homeowner must have repaid all grant amounts owned by the
homeowner to the Agency under any prior grant program resulting from the homeowner's
breach under such grant program;
10. Homeowners must promise to continue living in their home for five (5) years after
completion of the work. If the home is sold within five years after the recordation of the
Covenant Agreement in the official records of the San Bernardino County Recorder's
Office, State of California (the "County Recorder's Office"), the homeowner (original
beneficiary) must reimburse the full Grant amount back to the Agency. A copy of your
Covenant Agreement will be recorded in the County Recorder's Office and sent to the
Agency as a permanent record. HIO Initials
SCOPE of WORK: NHSIE will schedule an appointment in your home. During the visit, the
NHSIE Redevelopment Specialist will inquire as to your needs, observe the outside of the
4849.8797-9267.1
SINGLE FAMILY BEAUTIFICA nON GRANT SERVICES AGREEMENT
sIructure, and determine what work can best be accomplished under the Program. One or more
inspections may be necessary, depending on each situation. Photos of the property will be taken
and a Work Write-up (the "Scope of Work") will be prepared. You will be asked to sign a waiver
for the photos and to authorize placement of a NHSIE sign and an Agency sign in your front yard,
to remain during the construction. The work on your home will be scheduled in the coming
weeks.
Role of NHSIE
1. NON-PROFiT ADMiNISTRATOR: NHSIE is a private, non-profit 501 (c) (3) corporation, which
provides down-payment and housing assistance programs, homeownership education, and is
committed to reducing neighborhood blight and improving the condition of local housing via
several beautification programs. NHSIE has contracted with the Agency to implement and to
administer the Agency's Program.
2. WORK PERFORMANCE: The Owner will enter into a general contractor agreement (the
"General Contractor Agreement") with a general contractor approved by the NHSIE (the
"General Contractor"). The General Contractor shall complete the Scope of Work in
accordance with the General Contractor Agreement. The General Contractor, without
limitation, shall hire one (1) or more subcontractors, arrange for materiais or supply deiiveries,
and/or initiate whatever is reasonably necessary to accomplish the Scope of Work in a timely
and professional manner.
3. MODIFICATIONS: The NHSIE Redevelopment Specialist may from time-to-time make
modifications in materials, labor or materials as deemed appropriate for the progress of the
Scope of Work.
4. AUTHORITY TO NHSIE: Homeowner authorizes the NHSIE staff to issue orders and/or
instructions as necessary to initiate and to continue the work, generally based upon the Work
Write-up. In the absence of the homeowner, the NHSIE will issue such instructions needed to
carry out the work and progress towards completion; to stop work when such work appears to
be in violation of code, health and safety matters, or when the work or situation could lead to
obvious injury of persons or property; to stop work that would significantly alter the Scope of
Work, or exceed the project budget or Program limits; and to make decisions considered in
the best interest of the homeowner and/or the Agency.
5. TECHNICAL SERVICES: NHSIE does not charge the homeowner for technical services and
will continue to provide in-progress inspections on site at no cost to the homeowner. The
NHSIE will make every effort to see that contractors, subcontractors and suppliers provide
appropriate materials and deliver services of good quality. The NHSIE can neither assume
liability for, nor guarantee contractor or subcontractor work quality, or failure to adequately
perform on site.
6. RESOLUTION OF DISPUTES: Upon written notice from the homeowner or the contractor,
the NHSIE will arrange to meet with the contractor, the subcontractor or the supplier most
directly responsible for the work in question, as well as with the homeowner. The parties will
discuss, examine, decide upon, and approve the disputed issue before it proceeds further.
NHSIE will make reasonable efforts to help the parties resolve the matter. In the absence of
resolution, the Agency has the final determination as to outcome.
HID Initials
4849-8797-9267.1
SINGLE FAMILY BEAUTIFICA nON GRANT SERVICES AGREEMENT
Homeowner/s)' Responsibilities
1. COOPERATION: Homeowner agrees to cooperate fully with the NHSIE, the assigned
contractors, the sub-contractors and the suppliers during the construction process so that the
work may progress as scheduled.
2. PAPERWORK: It is the homeowner's responsibility to review, approve and sign various
documents (i.e. the Write-up, Scope-of-Work), major change-orders, job completion, and
invoices. Timeliness is of the essence.
3. UTILITIES & INSURANCE: Homeowner agrees to make electric, water and other utilities
available to support the construction activity without charge. Homeowner also agrees to
include the in-progress work and materials under their homeownership insurance policy.
4. ACCESS: Homeowner is responsible for providing regular, safe access to work site as
discussed and pre-arranged at the beginning of the project. The homeowner or a responsible
adult should be available during the work day to respond to questions. No work will be done
when children (under 18) are home alone at the site. The homeowner should provide for and
protect animals and pets by keeping them away from the work site. Aggressive or dangerous
animals should be chained or removed from site during construction. NHSIE is not responsible
to move furniture or owner's belongings. Small or personal items should be put away,
covered, andlor removed from the work site by the homeowner. NHSIE staff will be courteous
and treat homeowner's property with respect; however, the NHSIE accepts no liability for
broken, lost or damaged personal property, furniture, appliances, vehicles, plants, or animals.
H/O Initials
5. PROJECT DELAYS: NHSIE has the right to stop work and to move on to another client if
there are substantial, continued or unwarranted delays due to the homeowner involvement,
over-eagerness, or interference. Any financial liabilities incurred up to that point are those of
the homeowner alone.
6. CONCERNS: As Program administrator, the NHSIE is the homeowner's primary contact
during the job. Please direct any issues, concerns, or questions to the NHSIE Redevelopment
Specialist as soon as possible. NHSIE will contact contractors, subcontractors or suppliers to
address your stated concerns. However, once materials are installed in place, the ability to
make changes, repairs or replacement is not likely, and could involve other direct costs to the
homeowner, which extend beyond the scope of the Grant.
General Provisions
1. Homeowner agrees to hold harmless and indemnify the NHSIE, the Agency, and their
employees, members, officers, directors, agents, employees, contractors, sub-contactors and
consultants, in connection with acts performed by them or omissions that occur under this
Covenant Agreement andlor which would reasonably be associated with consultation,
technical advice, property inspection, and construction activities done in good faith.
2. Homeowner agrees and authorizes the NHSIE staff to obtain andlor provide specific reports,
property title and tax searches, building code inspection reports, property appraisals, termite
reports, hazardous certifications, repair specifications, cost estimates, contractors bids, and to
4849-8797-9267.1
SINGLE FAMILY BEAUTIFICATION GRANT SERVICES AGREEMENT
initiate inspections andlor materials deemed necessary to adequately perform the job. NHSIE
provides regular progress reports to various agencies, such as the Agency.
3. Whenever the pronouns "I", "my", "me" are used in this Agreement, they shall mean "we",
"our", and "us" respectively, if more than one homeowner is responsible.
AUTHORIZATION AND ACCEPTANCE OF AGREEMENT
In connection with this Grant, in reference to proposed construction services, I hereby declare that
I (we) meet the Program qualifications, understand the guidelines, and accept the terms
described above. I (We) further support and authorize the NHSIE, the Agency and their
designated staff, contractors andlor subcontractors to access and to inspect my property during
normal business hours, to monitor, to supervise, to act as technical assistant, and to perform all
necessary construction activities, for the beautification of my property, which is located at: _
San Bernardino, CA
Owner Signature:
Co-Owner:
Date:
Date:
For: Neighborhood Housing Services of the Inland Empire, Inc.
By:
Date:
~ ~
NelghboiWorlcs~
CHAIITI!III!D MI!M.I!II
4849-8797-9267.1
SFR Beautification Grant
Exhibit "G"
Homeowner's Release and Waiver
J31~
:v," NHSIE
NEIGHBORHOOD
HOUSING SERVICES
OF THE INLAND EMPIRE. INe
1390 North D StreeU San Bernardino, CA 92405/ Phone 909-884-68911 Fax 909-884-8899 / www.nhsie.oft!
Neighborhood Housing
Services
of the
Inland Empire, Inc.
SINGLE FAMILY BEAUTIFICATION GRANT PROGRAM
HOMEOWNER'S RELEASE AND WAIVER
I, . OWNER of the property located at:
Print Your Name
_San Bernardino, CA do hereby approve and
Address
grant Neighborhood Housing Services of the Inland Empire, Inc. (NHSIE) the following:
PERMISSION TO PHOTOGRAPH
L PERMISSION TO PHOTOGRAPH OR VIDEO TAPE THE PROPERTY, RESIDENCE, AND OTHER OUT
BUILDINGS, SUCH AS GARAGES, SHEDS, ETC. FOR THE PURPOSE OF INSPECTION RECORDS, JOB
PROGRESS, BEFORE-AND-AFTER SHOTS, AND FOR FILE DOCUMENTATION. I UNDERSTAND AND
APPROVE THAT THIS MATERIAL MAY ALSO BE UTILIZED FOR PRESENT A TIONS, DISPLAYS,
ADVERTISEMENTS OR PUBLICITY TO FURTHER AGENCY AND/OR NHSIE HOUSING PROGRAMS.
2. I WAIVE ANY RIGHTS WITH RESPECT TO COMPENSATION OR DAMAGES FOR USE OF PHOTOGRAPHS,
MEDIA, AND VIDEOS RELATED TO THE PROPERTY.
Owner's Signature
Redevelopment Specialist
Date:
Date:
4823-7311-8468.1
/.0-.. ~
NelghboiWorks-
CHA.TI!.I!D MIMal!.
All rights reserved. No Part of this documentation may be reproduced or transmitted in any form, by any means without the prior
written permission of the publisher, Neighborhood Housing Services ofthe Inland Empire, Inc. Rev: 8/5/2009
SFR Beautification Grant
Exhibit "Boo
Lead Based Paint Pamphlet Acknowledgement
Lead Base Paint Pamphlet - Acknowledgement of Receipt
Confirmation of Receipt of Lead Pamphlet
D I have received a copy of the pamphlet, Renovate Right: Imporlant Lead Hazard information
information for Families, Child Care Providers and Schools informing me of the potential risk
of lead hazard exposure from renovation activity to be performed in my dwelling unit. I received
this pamphlet before the work began.
Printed name of recipient
Date
Signature of recipient
Self -Certification Optional (for tenant-occupied dwelling only)-
If the lead pamphlet was delivered but a tenant signature was not obtainable.
you may check the appropriate box below.
D Refusal to sign -I certify that I have made a good faith effort to deliver the pamphlet,
Renovate Right: Imporlant Lead Hazard Information for Families, Child Care Providers
and Schools, to the rental dwelling until listed below at the date and time indicated and
that copy of the pamphlet at the unit with the occupant.
D Unavailable for signature -I certify that I have made a good faith effort to deliver
the pamphlet, Renovate Right: Imporlant Lead Hazard information for Families, Child
Care providers and Schools, to the rental dwelling unit listed below and that the occupant
was unavailable to sign the conformation or receipt. I further certify that I have left a
copy of the pamphlet at the unit by sliding it under the door.
Printed name of person certifying
Attempted delivery date and
Time lead pamphlet delivery.
Signature of person certifying lead pamphlet delivery
Unit Address
Note Regarding Mailing Option - As an alternative to delivery in person, you may mail the lead
Pamphlet to the owners and/or tenant. Pamphlet must be mailed at least 7 days before renovation
(Document with a certificate of mailing from the post office).
4814-1504-8964.1
Single Family Beautification Grant Program
SFR Beautification Grant
Exhibit "I"
Lead Based Paint Disclosure
---.-.-----.
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u.s. OeplctmeN 01 Housing ~d ~ Oevtr<lpment . Off~ of Communily Planning and OevelopmenC
Owners. T enMls .and Purchasers 01 Housing ConaatucClon belOte 1178 Fie .
NOTIACATIQH: Walch Out For lead-Based Paint Poisoning Oal:e
a possbiiiY iI contains Itad-based palnl Please 'ead the 'clawing infOfrna4S0n
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To
Re:
SOUIC.S 01 Lud Bas.d PIIW
Th. ......" 01 old.. homo..nd apa"monl. ol1<n hov.lay... of/Oad.ba..d painl on... w.... c-lIS. _ .ib. doors .nd doc.
&omn l....b..ed PO" .nd primer. may.... have be.. used on o....ido POIdle.. raiings. 11"'_.". escape. and lamp pOSls
When ,he pam' chip.. 11ok.. 0< po'" 011. ...... may be . ..a1 dingo, lor Nbios Ind ~ _. Chlchn...y OI' pm Ch", 0<
chew on point.d ..~ings. window ... 0< olbO< II..... wh.n PI_' .. not _und. ~.. ..n .... '-' _...... Ilhey do nol
.....""1Iy II' pain, chip.. F", "'mp/o. when ell_ play it In .... wh... "'If. "'. ..... point chip. 0< du., p_/o. on IhoN
hinds. put Ihell h..nds into I!'ft'moulhs. and ingesI.. dangerous atnOurM.ol lead.
HII.1.atdo;: of 1@.ad.BuedPain'
le.. poisoning i. donge,o", .. ..pecially 10 child,.. undo, th. age 0' ..ven (7). neon ..entu.lIy ClU.. mont., '....dol..n.
blindness and eYfin dealll.
s..,mtom.o;: aI f ead-AII$ed Pain( Poi.ot^,,-,oo
.... rou, child be.n .specially ..anr.r 0< i-ril.b/O? I. he 0< .... ...-.g normaly'/ 0_ l"'''' child h... stomach Idle. and vom~in.?
Do.. h. Of she .......in aboUl headaclle'? f. VOW' child llnWIIIing 10 W'Y? The.. may be sign. 01 load poboning. Mony .<<"""
Ihough. Iher. ... no 'rmp10"" ., all Be..us...... ar. no &y\'ll>'oms does not mo.n th.1 II'" .hou/d nol b. ...cetnad ~ you
believe your child has been exposed to leld-based paint
I"
~md..A~ of Blond l@adl_.ISt-.r_ninn
" you '.spec' ""1 you, ch~.... "'.n ellips 01.... 0< .......... Iold I"'" .... you should lak. ....."'Od 10 lho clodo< 0' clnic I.,
I.st;ng. "the ,... shows lltal yoU< chid h.. In ....1Ied blood /old level. ".lImo..Is...-. Cont... your doctor 0< local ho.hh
dopa,"",,", for """ o. -'InIorma_ leld scroening.nd _me.. or. lVahable 1hO<ough", _.kI Provom'o< tho.. who
It. .'9ble. "you .hild is klantir..d.. hov-.g In -1I.d bIo4d /old Iovel.,... should _<llllely nolIy the Commun~y
O"'/apmenl '" 01'... .gency 10 -I"'" 0< yoU< la_Is Il'PIYing I<< rehabiirllion ........... so the .......'1' eIeps .In bo
I""en 10 ,... you, un~ (0< Iead~.sed poinl .....rds. "you. uniI _ hive /oad-basect P.... you may be o/igI>Io I<< ..."'.... 10
.abale 'hIII Ilanrd. .
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P,Bl:auliGns In Taka 10 Prt!!vAnl' I a.arl..A_.d Paint PoSonin'l'
You c.. '.0", 1e'..blSed painl P_ning by peri..m-.g SOme ",'vontiv. mIint...nce. look aI ... WII.. eellings. _'. doo,
lro",.. _._w siI.. Ara Ih... pl.... -..... paIn'is P"'ng. ffaJOng. dlWin.. 0< _Iring? . ".111... are some "'ings
you c.... do -tvnedialely to protee1 your child:
ea) Cover.. fumilure and .lppiances;
lbJ 0uSI conlainin9/oad.an b.. ....th h...... 00 NOT ...uum..... paine. Sweep Ind ~ _:
(e, s-.. up of...... of point and pia..., and pul!hem in . paper bag 0< "'ep lhem In newspaper. PUllhe.. pack.ges In ... l<ash
UI\. 00 NOr BURN THEM;
(dJ 0. noc Ie... paine. chips .on Iho Il0O< 0< In window...... 0..... mop _ ..d window siIs in and arOund 111. _ .... 10
r...... oil..... '"d I>anll -.. Keoping lhea...... cia.,. 01.... chips, dust.nd dirlls "SY and VOl\lln_._
(.) Do no, ._100.. p.inllo 'emain wk.... your ......n.. ""h ..... _an may '""'.......... oK the...... _ allho waR..
1_."..... M'!I1""..... .... 7..""'-! 011..0-0--. P,", HI,.... '.. .. . . ". ..' . .'
A. . """""'''''Ir. YOu .hould .....,h. .necessary _s ."'lwtlp:""".......lnilooo .hepc.~...,./o""s''''!''J,.,...y ~g;
.......... .ools .nd.....""It<ijO~"t"'.""'may a<lr1;l!~~~.......,...erioiol.\"1Ul'..... . The... ~."..darnioge
woOs "''I' ('''''''!IS and ....~..P.""'4*Cr.... "l!il<.:J~~~t<!:~';:"'~"""""Irld.~....~..'~~'!Ii>oinl;"g:"R
'urf."...... '.."ie....J.:....,~ing.~~'.~.~.lIii'~.~.llirjjQ~,;o:;g...~."""~..:~.'i,Ii........
.ud,,,,~. ""'...,.P~..-...'t":"l>"I~~oI_./o~if!ii!~. .~.i!o\i'..,,~Wi.i>a'intln8o".t"~~i'Iil>'~.d,...h
..... -r.".:fln..".~"'..'.~I........,s~._,I:l..;as.. ::~~. ", .'_'.'.(~..\.~. ..., :~.".' .-0,.. :p~.~~.' '~.",;:.T',eii.,... .J""'. )~!tMo::....a. :1M,~p~!~(ii)._. '--'-:'.' ,. 'bY.- -"#~.. ..';n~:,~'-&an.. _~. ,__ ~'~
.;.':::!~;~e~-;:r~hc;'~.~~~~~t~"'!4"~~~~~~~~~';.~j~~~~~:::,::
~~,..,..""". "1e.~I~.,,,"..... ~ildl", ",",,0 -rlhel,.", no dlildi", Or jIoogn... _ !'" Iha _.s: .~ P......g
...." .".~.~, ....., h.,..", ,.... ''''';><:.'' dca. noo ...-. 'No. .....nl.Aeme............ ,... IS an ......JIIaY . ....(Of '010 .. the
1M. v. ..,,1fWt .4 .....pl '.IISf)f1M'~' Yo)ut ,achons.antt aw..rcn~S:l abou( tf~ Ifad problem can """lice,, big cMIeteftl:e _ .
'...l...H.l!"'I....,....f1u)',.'Iit'~~~
Y... ""...., ...........,.., ""loIy lOO .....nagc....'" 011... 0< .te agency ""ougIt ......h you ... PU"'h:>song \'OU' home .. 'ho u", ha,
I....... '"'''*''' ,,,'w...,,,..,.,, ,"'...'lI"..... W",", leak. I.om pkombing. 0< . del..,;.. _ Yo" _old Coopo'''..wh .," 0.......
1.....I..ln..11."' Ih.! 111111
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.1 I h.lYe rc-r.c.'rv'~';l(:opy all'II'Mut.cettnl~d : Protect Your Family From. Lead in
Your Home.
,'.'
Homeowner's Signature
Datp.
NHSIE Rehab Specialist
n.__to,..
, - .",.; --~C';':,-.'.'_",'.-.
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SFR Beautification Grant
Exhibit "J"
Residential Property Maintenance Agreement Containing Covenants Affecting
Real Property
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
Redevelopment Agency
of the City of San Bernardino
Attn.: Interim Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 9240 I
(Space Above Line Reserved For Use By Recorder)
Recording Fee Exempt Pursuant to Government Code Section 6103
RESIDENTIAL PROPERTY MAINTENANCE AGREEMENT
CONTAINING COVENANTS
AFFECTING REAL PROPERTY
Single Family Beautification Grant Program
THIS RESIDENTIAL PROPERTY MAINTENANCE AGREEMENT CONTAINING
COVENANTS AFFECTING REAL PROPERTY (the "Covenan!") is made and entered into as
of , 2009, by and between the REDEVELOPMENT AGENCY OF THE CITY OF
SAN BERNARDINO, a public body, corporate and politic (the "Agency") and
(the "Owner") and this Covenant relates to the following facts set forth in Recitals:
RECITALS:
WHEREAS, the undersigned is/are the Owner of that certain improved real property
located iu the City of San Bernardino, State of California, and more particularly described in
Exhibit "A" attached hereto and incorporated herein by this reference (the "Property"); and
WHEREAS, the Agency and the Neighborhood Housing Services Of The Inland Empire,
Inc., a California non-profit corporation (the "Contractor") executed, delivered and entered into
the Single Family Beautification Grant Program Agreement (the "Beautification Grant Program
Agreement"), dated , 2009; and
WHEREAS, pursuant to the Beautification Grant Program Agreement the Agency has
agreed to make separate grants to Qualified Homeowners (as defined therein) in accordance with
and pursuant to the terms, covenants and conditions of the Beautification Grant Program
Agreement; and
WHEREAS, in accordance with and pursuant to the Beautification Grant Program
Agreement and the Program (as defined in the Beautification Grant Program Agreement), the
Agency has determined that the Owner is eligible to receive a Grant (as defined in the
Beautification Grant Program Agreement) from the Agency to enable the Owner to construct, to
install, to perform and to complete the Improvements (as defined therein) at the Property; and
WHEREAS, as a condition to the making of the Grant by the Agency to the Owner, the
Owner must execute and acknowledge, where appropriate, the Grant Documents (as defined in
4835-0790-1444.3
I
the Beautification Grant Program Agreement) including the execution and acknowledgment by
the Owner of this Covenant which Covenant shall be recorded in the County Recorder's Office
(as defined below).
NOW, THEREFORE, IN CONSIDERATION OF THE RECITALS MENTIONED
ABOVE, FOR THE APPROVAL AND FOR THE MAKING OF THE GRANT BY THE
AGENCY TO THE OWNER AND FOR SUCH OTHER GOOD AND VALUABLE
CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY
ACKNOWLEDGED BY THE OWNER AND BY THE AGENCY, THE OWNER AND THE
AGENCY COVENANT AND AGREE AS FOLLOWS:
Section 1. Definitions of Certain Terms. As used in this Covenant, the following
words and terms shall have the meaning as provided in the Recitals or in this Section I unless the
specific context of usage of a particular word or term may otherwise require:
Adjusted Family Income. The words "Adjusted Family Income" mean the anticipated
total annual income (adjusted for family size) of each individualized or family residing or treated
as residing in the Property as calculated in accordance with Treasury Regulation 1.167(k) - 3
(b)(3) under the Code, as adjusted, based upon family size in accordance with the household
income adjustment factors adjusted and amended from time to time, pursuant to Section 8 of the
United States Housing Act of] 937, as amended.
County Recorder's Office. The words "County Recorder's Office" mean the official
records of the county recorder for the County of San Bernardino, State of California.
Covenant. The word "Covenant" means this "Residential Property Maintenance
Agreement Containing Maintenance Covenants Affecting Real Property" by and between the
Owner and the Agency.
Covenant Term. The words "Covenant Term" shall have the meaning set forth in
Section 5.
Low-Moderate Income Family. The words "Low-Moderate Income-Family" means
persons and families whose income does not exceed 120 percent of area median income,
adjusted for family size by the department in accordance with adjustment factors adopted and
amended from time to time by the United States Department of Housing and Urban Development
pursuant to Section 8 of the United States Housing Act of ] 93 7.
Owner. The word "Owner" means the owner of the Property (e.g.: all persons identified
as having property ownership interest vested in the Property).
Successor-In-Interest. The words "Successor-In-Interest" mean and refer to the person
or household, which may acquire the Property from the Owner at any time during the Covenant
Term by purchase, assignment, transfer or otherwise. The Successor-In-Interest shall be bound
by each of the covenants, conditions and restrictions of this Covenant.
4835-0790-1444.3
2
The titles and headings of the sections of this Covenant have been inserted for convenience of
reference only and are not to be considered a part hereof and shall not in any way modify or
restrict the meaning of any of the terms or provisions hereof.
Section 2.
Acknowledements and Renresentations of the Owner.
The Owner hereby acknowledges and represents that, as the date of execution of this
Covenant:
(a) the total household income for the Owner does not exceed the maximum amount
permitted as Adjusted Family Income for a Low-Moderate Income Family adjusted for family
SIze;
(b) the Owner intends to occupy the Property after the date of execution of this
Covenant as the principal place of residence for a term of at least five (5) years following the
date of recordation of this Covenant in the County Recorder's Office and the Owner has not
entered into any arrangement and has no present intention to rent (without the prior written
consent of the Agency), sell, transfer or assign the Property to any third party during the
Covenant Term so as to frustrate the purpose ofthis Covenant;
(c) the Owner has no present intention to lease or rent any room or sublet or rent a
portion of the Property to any relative of the Owner or to any third person at any time during the
Covenant Term.
Section 3. Maintenance Condition of the Pronertv. The Owner, for itself, its
successors and assigns, hereby covenants and agrees that:
(a) The exterior area of the Property, which are subject to public view (e.g.: all
improvements, paving, walkways, landscaping, and ornamentation) shall be maintained in good
repair and a neat, clean and orderly condition, ordinary wear and tear excepted. In the event that
at any time during the term of the Covenant Term, there is an occurrence of an adverse condition
on any area of the Property which is subject to public view in contravention of the general
maintenance standard described above (a "Maintenance Deficiency") then the Agency shall
notify the Owner in writing of the Maintenance Deficiency and give the Owner thirty (30)
calendar days from the date of such notice to cure the Maintenance Deficiency as identified in
the notice. The words "Maintenance Deficiency" include without limitation the following
inadequate or nonconforming property maintenance conditions and/or breaches of single family
dwelling residential property use restrictions:
. failure to properly maintain the windows, structural elements, and painted exterior
surface areas of the dwelling unit in a clean and presentable manner;
. failure to keep the front and side yard areas of the Property free of accumulated
debris, appliances, inoperable motor vehicles or motor vehicle parts, or free of
storage of lumber, building materials or equipment not regularly in use on the
Property;
4835-0790-1444.3 3
. failure to regularly mow lawn areas or permit grasses planted in lawn areas to
exceed nine inches (9") in height, or failure to otherwise maintain the landscaping
in a reasonable condition free of weed and debris;
. parking of any commercial motor vehicle in excess of 7,000 pounds gross weight
anywhere on the Property, or the parking of motor vehicles, boats, camper shells,
trailers, recreational vehicles and the like in any side yard or on any other parts of
the Property which are not covered by a paved and impermeable surface;
. the use of the garage area of the dwelling unit for purposes other than the parking
of motor vehicles and the storage of personal possessions and mechanical
equipment of persons residing in the Property.
In the event the Owner fails to cure or commence to cure the Maintenance Deficiency
within the time allowed, the Agency may thereafter conduct a public hearing following
transmittal of written notice thereof to the Owner ten (10) calendar days prior to the scheduled
date of such public hearing in order to verify whether a Maintenance Deficiency exists and
whether the Owner has failed to comply with the provision of this Section 3(a). If, upon the
conclusion of a public hearing, the Agency makes a finding that a Maintenance Deficiency exists
and that there appears to be non-compliance with the general maintenance standard, as described
above, thereafter the Agency shall have the right to enter the Property (exterior areas only) and
perform all acts necessary to cure the Maintenance Deficiency, or to take other action at law or
equity the Agency may then have to accomplish the abatement of the Maintenance Deficiency.
Any sum expended by the Agency for the abatement of a Maintenance Deficiency as authorized
by this Section 3(a) shall become a lien on the Property. If the amount of the lien is not paid
within thirty (30) calendar days after written demand for payment by the Agency to the Owner,
the Agency shall have the right to enforce the lien in the manner as provided in Section 3(c).
(b) Graffiti which is visible from any public right-of-way which is adjacent or
contiguous to the Property shall be removed by the Owner from any exterior surface of a
structure or improvement on the Property by either painting over the evidence of such vandalism
with a paint which has been color-matched to the surface on which the pain is applied, or graffiti
may be removed with solvents, detergents or water as appropriate. In the event that graffiti is
placed on the Property (exterior areas only) and such graffiti is visible from an adjacent or
contiguous public right-of-way and thereafter such graffiti is not removed within seventy-two
(72) hours following the time of its application; then in such event and without notice to the
Owner, the Agency shall have the right, but not the obligation, to enter the Property and to
remove the graffiti. Notwithstanding any provision of Section 3(a) to the contrary, any sum
expended by the Agency for the removal of graffiti from the Property as authorized by this
Section 3(b) shall become a lien on the Property. If the amount of the lien is not paid within
thirty (30) calendar days after written demand for payment by the Agency to the Owner, the
Agency shall have the right to enforce its lien in the manner as provided in Section 3(c).
(c) The parties hereto further mutually understand and agree that the rights conferred
upon the Agency under this Section 3 expressly include the power to establish and enforce a lien
or other encumbrance against the Property in the manner provided under Civil Code Sections
2924, 2924b and 2924c in the amount as reasonably necessary to restore the Property to the
4835-0790-1444.3
4
maintenance standard required under Section 3(a) or Section 3(b), including attorneys' fees and
costs of the Agency associated with the abatement of the Maintenance Deficiency or the removal
of graffiti and the collection of the costs of the Agency in connection with such action. In any
legal proceeding for enforcing such a lien against the Property, the prevailing party shall be
entitled to recover its attorneys' fees and costs of suit. The provisions of this Section 3 shall be a
covenant running with the land for the Covenant Term and shall be enforceable by the Agency in
its discretion, cumulative with any other rights or powers granted by the Agency under
applicable law. Nothing in the foregoing provisions of this Section 3 shall be deemed to
preclude the Owner from making any alterations, additions, or other changes to any structure or
improvement or landscaping on the Property, provided that such changes comply with the zoning
and development regulations of the City of San Bernardino and other applicable law.
(d) Any lien in favor of the Agency as may arise under this Section 3 will not become
effective until such time as the Agency records a "Notice of Lien" in the official records of San
Bernardino County which references this Section 3 of this Covenant. Any lien in favor of the
Agency created pursuant to this Section 3 shall be subject to the lien or charge of any mortgage,
deed of trust or other financing or security instrument made in good faith and for value in favor
of an institutional lender prior to the date of such Notice of Lien. In the event of a foreclosure of
such a deed of trust or other lien which predates such Notice of Lien, or in the event of an
acceptance of a deed in lieu of foreclosure, the Agency lien evidenced by such a Notice of Lien
which has accrued up to the date of foreclosure or the acceptance of a deed in lieu of foreclosure
shall be extinguished, and the foreclosure purchaser or deed in lieu grantee shall take title in the
Property free of the Agency lien evidenced by the Notice of Lien; provided however, any such
successor of a security interest in the Property during the Covenant Term shall be subject a new
lien of the Agency arising under of this Section 3 for all charges that may accrue under this
Section 3 subsequent to the foreclosure or deed given in lieu of foreclosure during the Covenant
Term.
Section 4. Covenants to Run With the Land. The Owner and the Agency hereby
declare their specific intent that the covenants, reservations and restrictions set forth herein are
part of a plan for the promotion and preservation of affordable single family housing within the
territorial jurisdiction of the Agency and that each shall be deemed covenants running with the
land and shall pass to and be binding upon the Property and each Successor-In-Interest of the
Owner in the Property for the Covenant Term. The Owner hereby expressly assumes the duty
and obligation to perform each of the covenants and to honor each of the reservations and
restrictions set forth in this Covenant. Each and every contract, deed or other instrument
hereafter executed covering or conveying the Property or any interest therein shall conclusively
be held to have been executed, delivered and accepted subject to such covenants, reservations,
and restrictions, regardless of whether such covenants, reservations and restrictions are set forth
in such contract, deed or other instrument.
Section 5. Covenant Term. The words "Covenant Term" mean and refer to the
period of time when this Covenant shall be in effect. Following its recordation, this Covenant
shall be in effect for ten (10) years after the date of this Covenant. This Covenant shall run with
land and shall be enforceable by the Agency and by the City of San Bernardino, as the successor
public agency to the Agency.
4835-0790.1444.3
5
Section 6.
State of California.
Governinl! Law. This Covenant shall be governed by the laws of the
Section 7.
instrument executed
Agency.
Amendment. This Covenant may be amended only by a written
by the Owner (or the Successor-In-Interest, as applicable) and by the
Section 8. Attornevs' Fees. In the event that the Agency brings an action to enforce
any condition or covenant, representation or warranty in this Covenant or otherwise arising out
of this Covenant, the prevailing party in such action shall be entitled to recover from the other
party reasonable attorneys' fees to be fixed by the court in which a judgment is entered, as well
as the costs of such suit. For the purposes of this Section 8, the words "reasonable attorneys'
fees" in the case of the Agency include the salaries, costs and overhead of the lawyers employed
in the Office of the City Attorney of the City of San Bernardino.
Section 9. Severabilitv. If any provision of this Covenant shall be declared invalid,
inoperative or unenforceable by final judgment or decree of a court of competent jurisdiction
such invalidity or unenforceability of such provision shall not affect the remaining parts of this
Covenant which are hereby declared by the parties to be severable from any other part which is
found by a court to be invalid or unenforceable.
Section 10. Time is of the Essence. For each provision of this Covenant which states
a specific amount of time within which the requirements thereof are to be satisfied, time shall be
deemed to be of the essence.
Section 11. Notice. Any notice required to be given under this Covenant shall be
given by the Agency or by the Owner, as applicable, by personal delivery or by First Class
United States mail at the addresses specified below or at such other address as may be specified
in writing by the parties hereto:
Ifto the Agency:
Redevelopment Agency of the City of San Bernardino
Attention: Interim Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 92401
Phone: (909) 663-1044
If to the Owner:
San Bernardino. CA 9240
Phone #909
Notice shall be deemed given five (5) calendar days after the date of mailing to the party, or, if
personally delivered, when received by the Interim Executive Director of the Agency or the
Owner, as applicable. Each party may change its address by notifying the other party, in writing,
of the party's new address.
Section 12. Recitals. The Recitals set forth in this Covenant are true and correct and
are incorporated herein by this reference.
4835-0790-1444.3
6
IN WITNESS WHEREOF, the Owner and the Agency have caused this Covenant to be
signed, acknowledged and attested on their behalf by duly authorized representatives in
counterpart original copies which shall upon execution by all of the parties be deemed to be one
original document, all as of the date first written above.
OWNER
Date:
By;
Print:
By;
Print:
AGENCY
Redevelopment Agency
of the City of San Bernardino
Date;
By:
Carey K. Jenkins, Director of Housing
and Community Development
[ALL SIGNATURES MUST BE NOTARIZED]
Approved as to Form:
By:
Agency Counsel
4835-0790-1444.3
7
EXHIBIT "A"
Legal Description of the Property
4835-0790-1444.3
8
SFR Beautification Grant
Exhibit "K"
Maintenance Grant Needs Document
~~
HOUSING SERVICES
OF THE INLAIID EMPIRE, IMC
Neighborhood Housing
Services
oftbe
Inland Empire, Inc.
1390 North D Street! San Bernardino, CA 92405 / Phone 909-884-6891/ Fax 909-884-8899 / www.nhsie.ore
Maintenance Grant Needs Document
(Please Include with your Application)
Homeowner Name:
Address:
Telephone (Day):
(Eve):
City (*Mail Address): ZIP:
(' You must live in the City of San Bemardino to qualify for assistance)
ELIGIBLE IMPROVEMENTS: Please check items as needed. A NHSIE
Redevelopment Specialist will determine improvements based on loan funding, evident
need, program guidelines, and code health and safety issues. Priority consideration will
be given to most pressing items, but limited to items below as determined by NHSIE
assessment.
Exterior
Roof Renlacement Termite Inspection
Drivewav reDlacement Fencina
Exterior Paintina Doors/Securitv Doors
Window renlacement Garaae Door reolacement
Landscaninn/Hardscane Alternative EnerQV Sources
Securitv Linhtin" Other
Automatic SDrinklers Other
SIGNATURE:
DATE
~
CHARTERED MIMa'R
4848-9147-0340.1 All rights reserved. No Part of this documentation may be reproduced or transmitted in any form, by any
means without the prior written permission of the publisher, Neighborhood Housing Services of the Inland Empire. Inc.
Rev: 8/5/2009
CITY OF SAN BERNARDINO
Interoffice Memorandum
CITY CLERK'S OFFICE
FROM:
November 5, 2009
Margaret Fedor, Executive Assistant to the City Cle~
Agreements Associated with CDC/2009-33
DATE:
RE:
The attached agreements were superseded by agreemeuts received by the Economic
Development Agency on October 27,2009.
CDC/2009-33
REDEVELOPMENT AGENCY OF THE CITY OF
SAN BERNARDINO
SINGLE FAMILY RESIDENCE REHABILITATION LOAN PROGRAM AGREEMENT
(Low-Moderate Housing Fund)
THIS SINGLE F AMIL Y RESIDENCE REHABILITATION LOAN PROGRAM
AGREEMENT (the "Agreement") is made and entered into this 6th day of July, 2009 (the
"Effective Date"), by and between the NEIGHBORHOOD HOUSING SERVICES OF THE
INLAND EMPIRE, INC., a California non-profit corporation (the "Contractor") and the
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency"), a
public body, corporate and politic. The Agency and the Contractor agree as follows:
RECITALS
WHEREAS, the Agency and the Contractor have previously entered into the Single
Family Beautification Loan/Grant And Mobile Horne Grant Programs (Low-Moderate Housing
Fund and HOME Fund), dated as of February 7, 2005, as modified by that certain Amendment
No. I To The Single-Family Beautification Loan/Grant And Mobile Horne Grant Program, dated
as of June 4, 2007, by and between the Agency and the Contractor (collectively, the "Loan and
Grant Agreement"); and
WHEREAS, the Loan and Grant Agreement provides for the following: (i) loan funds
(the "Rehabilitation Loan Program") and grant funds (the "Beautification Grant Program") to
low-moderate income homeowners who reside in the City of San Bernardino (the "City"), in the
County of San Bernardino (the "County"), in the State of California (the "State") to permit such
homeowners to undertake certain housing rehabilitation and correction work, including, without
limitation, asbestos and lead containing materials abatement work, handicap accessibility
improvements and utility energy improvements as described in the Loan and Grant Agreement,
to single family residential dwelling units owned and occupied by such low-moderate
homeowners, and (ii) grant funds (the "Mobile Horne Grant Program") to low-income owners of
mobile homes who reside in the City, in the County and in the State to permit, without limitation,
such low-income mobile home owners to make repairs and improvements to their mobile homes
in accordance with the Loan and Grant Agreement); and
WHEREAS, the Agency and the Contractor have previously entered into the Horne
Agreement, dated June 4, 2007 (the "Homebuyer Education Program Agreement"), wherein the
Contractor, without limitation, administers, implements and conducts a Homebuyer Education
Program (as defined therein); and
WHEREAS, the Rehabilitation Loan Program, the Beautification Grant Program, the
Mobile Horne Grant Program and the Homebuyer Education Program promote and expand the
supply of affordable housing in the City and foster the elimination and prevention of blight; and
WHEREAS, the Agency and the Contractor would like to amend the Homebuyer
Education Program Agreement pursuant to the First Amendment (as defined below) and to
4813-0902-9891.1
CDC/2009-33
execute, to deliver and to perform under a new and separate agreement for each of the
Rehabilitation Loan Program, for the Beautification Grant Program and for the Mobile Home
Grant Program; and
WHEREAS, the Agency and the Contractor desire to terminate the Loan and Grant
Agreement and to replace the Loan and Grant Agreement with each of the following three (3)
new and separate agreements: (i) this Agreement which provides loan funds to low-moderate
income homeowners who reside in the City, in the County and in the State to permit such
homeowners to undertake certain housing rehabilitation and correction work as described in this
Agreement, to single family residential dwelling units owned and occupied by such low-
moderate homeowners, (ii) the Single Family Beautification Grant Program Agreement (the
"Beautification Grant Program Agreement") which provides grant funds to low-moderate income
homeowners who reside in the City, in the County and in the State to permit such homeowners to
undertake certain housing rehabilitation and correction work as described therein, to single
family residential dwelling units owned and occupied by such low-moderate homeowners, and
(iii) the Mobile Home Grant Program Agreement (the "Mobile Home Grant Program
Agreement") which provides grant funds to low-income owners of mobile homes who reside in
the City, in the County and in the State to permit, without limitation, such low-income mobile
home owners to make repairs and improvements to their mobile homes in accordance with such
Mobile Home Grant Program Agreement; and
WHEREAS, the Agency and the Contractor have determined that this Agreement, the
Beautification Grant Program Agreement, the Mobile Home Grant Program Agreement and the
Homebuyer Education Program Agreement, as amended by the First Amendment, will promote
and expand the supply of affordable housing in the City and will foster the elimination and
prevention ofbliglit; and
WHEREAS, the Loan and Grant Agreement shall not be terminated until the Agency and
the Contractor have entered into and executed this Agreement, the Beautification Grant Program
Agreement, the Mobile Home Grant Program Agreement and the Amendment No.1 (the "First
Amendment") to the Homebuyer Education Program Agreement.
NOW, THEREFORE, IN CONSIDERATION OF THE RECITALS
MENTIONED ABOVE, THE MUTUAL PROMISES OF THE AGENCY AND OF THE
CONTRACTOR IN THIS AGREEMENT AND FOR OTHER GOOD AND VALUABLE
CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY
ACKNOWLEDGED BY THE AGENCY AND BY THE CONTRACTOR, THE AGENCY
AND THE CONTRACTOR AGREE AS FOLLOWS:
Section 1. DEFINITIONS OF CERTAIN TERMS. In addition to the words and
phrases, which are defined in the Recitals of this Agreement and/or in this Agreement, the
following words and terms shall have the meaning set forth below:
"Countv Recorder's Office" means and refers to the county recorder's office for
the County of San Bernardino, State of California.
48]3-0902~989].1
2
4813-0902-9891.]
CDC/2009-33
"Deed of Trust" means and refers to the Deed of Trust and Assignment of Rents
securing the obligations of the Note and encumbering the Home. The Deed of
Trust must be executed and acknowledged by the Qualified Homeowner and shall
be recorded by or for the Agency in the County Recorder's Office. The Deed of
Trust shall be subordinate to the Senior Deed of Trust. The Deed of Trust must
be substantially similar to the Deed of Trust attached hereto and incorporated
herein by this reference as Exhibit "_".
"Environmental Laws" mean and refer to all applicable federal, state, municipal
and local laws, statutes, codes, ordinances, rules, regulations, orders and
judgments relating to the protection or clean-up of the environment, the use,
treatment, storage, transportation, generation, manufacture, processing,
distribution, handling or disposal of, or emission, discharge or other release or
threatened release of hazardous substances, the preservation or protection of
waterways, groundwater, drinking water, air, wildlife, plants or other natural
resources, the health and safety of persons, or the protection of the health and
safety of employees, now or hereafter existing, as the same may be amended,
modified or supplemented from time to time, including, without limitation: the
Clean Air Act, as amended, 42 V.S.C. Section 7401 et seq.; the Federal Water
Pollution Control Act, as amended, 33 V.S.C. Section 1251 et seq.; the Resource
Conservation and Recovery Act of 1976, as amended, 42 V.S.C. Section 6901 et
seq.; the Comprehensive Environment Response, Compensation and Liability Act
of 1980, as amended (including the Superfund Amendments and Reauthorization
Act of 1986, "CERCLA"), 42 V.S.C. Section 9601 et seq.; the Toxic Substances
Control Act, as amended, 15 V.S.C. Section 2601 et seq.; the Occupational Safety
and Health Act, as amended, 29 V.S.C. Section 651, the Emergency Planning and
Community Right-to-Know Act of 1986, 42 V.S.c. Section 11001 et seq.; the
Safe Drinking Water Act, as amended, 42 V.S.C. Section 300f et seq.; the
California Health and Safety Code (Section 25100 et seq., S 25249.5 et seq.,
Section 39000 et seq.); the California Water Code (Section 13000 et seq.); the
California Environmental Quality Act ("CEQA"); the California Public Resources
Code; all comparable state and local laws, laws of other jurisdictions or orders
and regulations; and any and all common law requirements, rules and bases of
liability reb'1llating, relating to or imposing liability or standards of conduct
concerning pollution or protection of human health or the environment, as now or
may at any time hereafter be in effect.
"'Executive Director" means and refers to the Interim Executive Director of the
Agency and his or her authorized representatives.
"General Contractor Agreement" means and refers to the Single Family
Residence Rehabilitation Loan Program General Contractor Agreement by and
between the Qualified Homeowner and the contractor identified therein (the
"General Contractor") as approved, in writing, by the Contractor. The General
Contractor Agreement relates, without limitation, to the construction, installation
and completion by the General Contractor of the Work described in the General
3
4813-0902-98911
CDC/2009-33
Contractor Agreement. The General Contractor Agreement shall be executed by
and between the Qualified Homeowner and the General Contractor and shall be
accepted, in writing, by the Contractor. The General Contractor Agreement shall
be substantially similar to the General Contractor Agreement attached hereto and
incorporated herein by this reference as "Exhibit "_".
"Hazardous Substances" mean and refer to any pollutant, contaminant, waste and
any toxic, carcinogenic, reactive, corrosive, ignitable, flammable or infectious
chemical, chemical compound or substance or otherwise hazardous wastes, toxic
or contaminated substances or similar materials, including, without limitation, any
quantity of asbestos, urea formaldehyde, PCBs, radon gas, lead, lead-based paint,
crude oil or any fraction thereof, all forms of natural gas, petroleum products, by-
products or derivatives, radioactive substances, methane, hydrogen sulfide or
materials, pesticides, waste waters, or sludges, any of the above of which are
subject to regulation, control or remediation under any Environmental Laws.
"Home" means and refers to the land and the single family dwelling unit located
thereon in the City, owned by the Qualified Homeowner and resided in by the
Qualified Homeowner as its principal residence.
"Homeowner's Release and Waiver" means and refers to the Homeowner's
Release and Waiver, as executed by the Qualified Homeowner and the
Contractor. The Homeowner's Release and Waiver provides, without limitation,
that the Contractor shall be permitted to display yard signs at the Qualified
Homeowner's Home and that the Contractor shall be permitted to photograph or
videotape the Qualified Homeowner's Home. The Homeowner's Release and
Waiver shall be substantially similar to the Homeowner's Release and Waiver
attached hereto and incorporated herein by this reference as Exhibit "_".
"Improvements" mean and refer to the following types of eligible improvements
to the Qualified Homeowner's Home that will be permitted under the Program:
(i) roof repairs and re-roof or overlay, (ii) exterior and interior painting, including,
without limitation, lead testing, (iii) drought tolerant landscaping (irrigation
system, with hydro seeds, sod or artificial turt), (iv) window replacement, (v)
carpet replacement and/or finished flooring replacement, (vi) HV AC system, (vii)
electrical work, (viii) sewer repair or sewer installation (the "Sewer Repairs"),
(ix) termite repairs, (x) exterior concrete hardscape such as sidewalks, driveways,
curbs, gutters, hand railings or ramps, (xi) door or window screens repairs or
replacements, (xii) tub, shower, toilet repairs or replacements, (xiii) foundation or
structural repairs, (xiv) fencing or (xv) installation of alternative energy sources,
including, without limitation, solar panels. The Improvements must relate to
health and safety code violations (i.e., blown sewer lines, septic tank destruction,
etc.).
In connection with each Loan Application for Sewer Repairs, the Agency shall
have the right to determine whether or not such Sewer Repairs shall be made from
4
4813-0902-9891.]
CDC/2009-33
funds disbursed by the Agency from Loan Funds under the Program or from grant
funds disbursed by the Agency to an applicant under the Single Family
Beautification Grant Program, or under any other then existing grant program.
Should the Agency determine that the Sewer Repairs will need to be disbursed by
the Agency from grant funds pursuant to the Single Family Beautification Grant
Program, or any other then existing grant program, the Contractor shall advise the
applicant, in writing, that the applicant will need to prepare, to execute and to
submit a new grant application to the Contractor under the Single Family
Beautification Grant Program, or under any other then existing grant program,
which grant application, without limitation, shall request the Agency to make a
grant to the applicant to permit the applicant to make and to complete the Sewer
Repairs.
"Laws" mean and refer to all federal, state, municipal and local laws, statutes,
codes, ordinances, regulations, rules, orders or judgments, now or hereafter in
effect, as amended from time to time, including, without limitation, the
Environmental Laws, all applicable building, plumbing, mechanical, electrical
and health and safety codes and City ordinances.
"Lead Based Paint Acknowledgment" means and refers to the "Lead Based Paint
Acknowledgment of Receipt" as executed by the Qualified Homeowner and by
the General Contractor. The Lead Based Paint Acknowledgment acknowledges
receipt by the Qualified Homeowner of the Lead Based Paint Pamphlet from the
General Contractor. The Lead Based Paint Acknowledgment is attached hereto
and incorporated herein by this reference as Exhibit "_".
"Lead Based Paint Disclosure" means and refers to the "Lead Based Paint
Disclosure" by and between the Qualified Homeowner and the General
Contractor. The Lead Based Paint Disclosure is to be executed by the General
Contractor and by the Qualified Homeowner and is attached hereto and
incorporated herein by this reference as Exhibit" ".
"Loan" means and refers to each loan transaction approved, granted and made by
the Agency to or for the benefit of the Qualified Homeowner in accordance with
this Agreement. Each Loan shall be evidenced by a Note and secured by a Deed
of Trust encumbering the Home owned by the Qualified Homeowner to whom the
Loan has been made by the Agency. Each Loan made by the Agency to the
Qualified Homeowner may not exceed the lesser of: (i) $25,000 or (ii) twenty-
five percent (25%) of the then fair market value of the Home as determined by a
licensed appraiser approved by the Agency (the "Loan Amount"), without the
prior written approval of the Executive Director. The Loan shall be subordinate
to the Senior Loan. The Qualified Homeowner shall pay all amounts that exceed
the Loan Funds paid by the Agency to or for the benefit of the Qualified
Homeowner under the Program to enable the Qualified Homeowner to complete
the Improvements in connection with the Qualified Homeowner's Home. For
5
4R 13-0902-9891.!
CDC/2009-33
each year during the term of this Agreement, the Contractor will attempt to
approve, complete, process and finalize up to ten (10) Loans.
"Loan Application" means and refers to the Single Family Residence
Rehabilitation Loan Program Application as fully completed and executed by the
Qualified Homeowner. The Loan Application shall be submitted by the Qualified
Homeowner to the Contractor and the Contractor shall verify that the Loan
Application is complete. Each Loan Application shall contain the information
relating to the Qualified Homeowner and the proposed use of the Loan Funds by
the Qualified Homeowner together with a current preliminary title report or other
proof of title acceptable to the Agency for the Home. The Contractor shall
require all Qualified Homeowners to complete the Loan Application substantially
similar to the Loan Application attached hereto and incorporated by reference as
Exhibit'" "
"Loan Disbursement Account" means and refers to a separate custodial deposit
account, which the Contractor shall establish with an FDIC-insured depository
institution for the receipt and disbursement of the Loan Funds in connection with
the approval, granting and making by the Agency to the Qualified Homeowner of
the Loan under the Program in accordance with this Agreement. Such deposit
account agreement among the Contractor, the Agency and such depository
institution shall be in a form and substance as reasonably satisfactory to the
Agency. The Contractor shall create and maintain a separate Loan Disbursement
Account for each Loan approved, granted and made by the Agency to or for the
benefit of each Qualified Homeowner. No other funds of the Contractor shall be
deposited or co-mingled in the Loan Disbursement Account. The Contractor shall
serve as the trustee of the Agency in the administration of all of the Loan Funds or
deposit in each Loan Disbursement Account, including any interest as may accrue
thereon.
"Loan Documents" mean and refer to the following: (i) the Loan Application, (ii)
the Loan Services Agreement, (iii) the Maintenance Agreement Covenant, (iv) the
Homeowner's Release and Waiver, (v) the Note, (vi) the Deed of Trust, (vii) the
issuance of a title policy in favor of the Agency in the amount of the Loan Funds
approved by the Agency from a title company acceptable to the Agency, and (viii)
this Agreement and such other agreements, documents, instruments, guarantees
and/or certifications evidencing, securing, guaranteeing, relating to or in
connection with the Loan to the Qualified Homeowner, the Loan Funds and/or the
Loan Disbursement Account. The Loan Documents shall be subordinate to the
Senior Loan Documents.
"Loan Funds" mean and refer to the funds delivered by the Agency to or for the
benefit of a Qualified Homeowner in connection with the Loan that the Agency
has approved and made to the Qualified Homeowner in accordance with this
Agreement. Each Loan made by the Agency to the Qualified Homeowner may
not exceed the Loan Amount, without the prior written approval of the Executive
6
4813-0902-9891.1
CDC/2009-33
Director. The Qualified Homeowner shall timely pay all amounts that exceed the
Loan Funds paid by the Agency to or for the benefit of the Qualified Homeowner
under the Program in order to construct, install, perform and/or complete the
Improvements in connection with the Qualified Homeowner's Home.
"Loan Services Agreement" means and refers to the Single Family Residence
Rehabilitation Loan Program Loan Services Agreement by and between the
Qualified Homeowner and the Contractor. The Loan Services Agreement,
without limitation, notifies the Qualified Homeowner that the Agency has made,
or has agreed to make, the Loan to the Qualified Homeowner, restates and
certifies the Program qualifications and guidelines, identifies the role of the
Contractor and restates the Qualified Homeowner's duties and responsibilities
under the Program. The Loan Services Agreement must be executed by the
Qualified Homeowner and by the Contractor and must be substantially similar to
the Loan Services Agreement attached hereto and incorporated herein by this
reference as Exhibit" "
"Low-Moderate Income Housing Funds" mean and refer to the Low-Moderate
Income Housing Funds that the Agency intends to use to make the Loan to or for
the benefit of the Qualified Homeowner in accordance with this Agreement and
with Health and Safety Code Section 33334.3 et seq. The Agency and the
Contractor will offer the Loan to a Qualified Homeowner who earns not more
than 120% of the current annual median income for the San Bernardino County
area, adjusted for family size (as those terms are defined by California Health and
Safety Code Section 50053.5) as further illustrated in Exhibit "A" of this
Agreement (the "2009 Income Limits") and are subject to annual adjustments.
"Maintenance Agreement Covenant" means and refers to the "Residential
Property Maintenance Agreement Containing Covenants Affecting Real Property
(Single Family Residence Rehabilitation Loan Program) by and between the
Agency and the Qualified Homeowner. The Maintenance Agreement Covenant
provides, without limitation, for maintenance-related duties and obligations to be
performed and completed by the Qualified Homeowner in connection with the
Qualified Homeowner's Home. The Maintenance Agreement Covenant shall be
executed and acknowledged by and between the Agency and the Qualified
Homeowner, and must be in recordable form for recordation by the Contractor or
by the Agency in the County Recorder's Office. The Maintenance Agreement
Covenant must be substantially similar to the Maintenance Agreement Covenant
attached hereto and incorporated herein by this reference as Exhibit" ".
"Maintenance Class" means and refers to the maintenance class conducted by the
Contractor and attended by the Qualified Homeowners after the Agency has
approved the Loan to a Qualified Homeowner. In the Maintenance Class, the
Qualified Homeowner shall learn, without limitation, to properly maintain the
Qualified Homeowner's Home and/or the Improvements to be constructed,
installed, performed and completed thereon.
7
4X] 3-0902-9891.1
CDC/2009-33
"Note" means and refers to the Promissory Note Secured by Deed of Trust in the
amount of the Loan made by the Agency to and for the benefit of the Qualified
Homeowner. The Note shall be executed by the Qualified Homeowner and the
obligations of the Note shall be secured by the Deed of Trust. The outstanding
principal balance of the Note shall accrue simple interest at the rate of three
percent (3%) per annum. No periodic payments of principal and interest, or of
interest-only shall be due and payable by the Qualified Homeowner to the Agency
during the term of the Note. The outstanding principal amount of the Note, all
accrued and unpaid interest and all other fees, charges and amounts due under the
Note, under the Deed of Trust and under the other Loan Documents (the "Loan
Payoff') shall be payable by the Qualified Homeowner to the Agency on the date
that: (i) the Qualified Homeowner is in default under the Loan Documents,
subject to any applicable cure period, (ii) the Qualified Homeowner refinances the
Loan, or (iii) on the date that the Qualified Homeowner sells, conveys or transfers
the Home to an unauthorized third person in violation of the Loan Documents;
provided, however, if the Qualified Homeowner remains the fee owner of the
Home for a period of ten (10) years from the date that the Deed of Trust is
recorded in the County Recorder's Office, the Loan shall be forgiven and
discharged by the Agency, the Agency shall record a reconveyance or release of
the Deed of Trust in the County Recorder's Office and the Qualified Homeowner
shall have no further duty or obligation to pay to the Agency the Loan Payoff.
The Note shall be substantially similar to the Note attached hereto and
incorporated herein by this reference as Exhibit "_".
"PrOlITam" means and refers to the program created, administered and maintained
by or for the Agency in connection with the Loan, the disbursement by the
Agency to the Contractor of the Loan Funds to or for the benefit of each Qualified
Homeowner in accordance with this Agreement and the performance and
completion by the Contractor of the Services. Upon written notice from the
Agency, the Contractor shall offer the Program to Qualified Homeowners in the
specific Target Area or Target Areas as may be designated, in writing, by the
Agency to the Contractor from time to time during the term of this Agreement. In
the absence of specific direction from the Executive Director of the Agency, the
Contractor shall offer the Program on an as-needed, first-come, first-served basis,
to Qualified Homeowners throughout the City for the term of this Agreement.
However, in case of an emergency, of an urgent need or of a life-threatening
situation, the Contractor may process a Loan Application ahead of other Loan
Applications subject to the approval by the Executive Director.
"Qualified Homeowner" means and refers to: (i) a person or household which
owns and occupies its Home as its principal residence within the City or within
the Target Area or the Target Areas of the City, as may be specifically designed,
in writing, from time to time by the Agency for at least twelve (12) continuous
months preceding the date of submission of its Loan Application to the
Contractor, (ii) has a personal or household income level, adjusted for family size,
8
48[)-0902-9891.1
CDC12009-33
during the twelve (12) months preceding the date of submission of its Loan
Application to the Contractor within the ranges of income for low-moderate
income households, adjusted for family size, as set forth in Exhibit "A", (iii) must
complete, execute and submit the Loan Application to the Contractor, (iv) must
agree to attend the Maintenance Class conducted by the Contractor, (v) must
agree to live in its Home, as its principal residence, for not less than ten (10) years
after the recordation of the Deed of Trust and the Maintenance Agreement
Covenant in the County Recorder's Office, (vi) must execute and acknowledge,
where appropriate, all Loan Documents, (vii) must agree to agree to maintain its
Home pursuant to the Maintenance Agreement Covenant for a period of ten (10)
years following the recordation of such Maintenance Agreement Covenant in the
County Recorder's Office, and (viii) the Qualified Homeowner must not have
received any grant or any loan from the Agency for a period of ten (10) years
prior to the submission by the Qualified Homeowner to the Agency and/or to the
Contractor of the Loan Application. On a case-by-case basis, the Executive
Director of the Agency, in its sole and absolute discretion, may waive this one (I)
year residency requirement.
"Senior Deed of Trust" means and refers to the senior deed of trust executed and
acknowledged by the Qualified Homeowner. The Senior Deed of Trust secures
the obligations of the Senior Promissory Note and of the Senior Loan and
encumbers the Home.
"Senior Lender" means and refers to an institutional lender, including, without
limitation, any bank, savings bank, savings and loan association, insurance
company, credit union or other lender licensed to conduct business in the State of
California, approved by the Agency in its sole and absolute discretion and making
the Senior Loan to the Qualified Homeowner.
"Senior Loan" means and refers to the loan made by the Senior Lender to the
Qualified Homeowner. The Senior Loan is evidenced by the Senior Promissory
Note and is secured by the Senior Deed of Trust encumbering the Home owned
by the Qualified Homeowner.
"Senior Loan Documents" mean and refer to the Senior Promissory Note, the
Senior Deed of Trust and all other instruments, documents, agreements,
guarantees and/or certificates evidencing, securing, guaranteeing or relating to the
Senior Loan.
"Senior Promissory Note" means and refers to the Senior Promissory Note
executed by the Qualified Homeowner in favor of the Senior Lender. The Senior
Promissory Note is secured by the Senior Deed of Trust which Senior Deed of
Trust encumbers the Home owned by the Qualified Homeowner.
"Services" mean and refer, without limitation, to the Program origination, the
preparation, execution and delivery of the Loan Documents, the Loan Fund
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CDC/2009-33
disbursement control, related accounting, Work monitor (course of construction
builder contract) services and other services to be provided by the Contractor to or
for the benefit of the Agency in accordance with this Agreement. The various
elements of the Services are more fully set forth in the "Scope of Services"
attached hereto as Exhibit "C." For each year of the Agreement, the Contractor
will attempt to approve, complete, process and finalize up to ten (10) Loans to
Qualified Homeowners.
"Target Area" or '"Tanret Areas" mean and refer to the specific area, areas,
neighborhood or neighborhoods in the City in which the Agency has instructed
the Contractor to offer the Program to Qualified Homeowners to better maximize
the effectiveness of the Loan Funds, or in any other specific area, areas,
neighborhood or neighborhoods hereinafter created by the Agency and/or
throughout the City (excluding County territory), as amended from time to time
by the Agency in its sole and absolute discretion. Should the Agency request the
Contractor to offer the Program to a specific Target Area or to specific Target
Areas, the Agency shall consult with and provide in writing the Target Area or the
Target Areas to the Contractor. The Contractor shall then offer the Program to
Qualified Homeowners in the specific Target Area or Target Areas until the
Contractor is otherwise advised in writing from the Agency, as such Target Area
or Target Areas may be adjusted and amended from time by the Agency in its sole
and absolute discretion. In the absence of specific direction tram the Executive
Director of the Agency, the Contractor shall offer the Program on an as-needed,
first-come, first-served basis, to Qualified Homeowners throughout the City.
However, in the case of an emergency, of an urgent need or of a life-threatening
situation, the Contractor may process a Loan Application ahead of other Loan
Applications subject to the approval ofthe Executive Director.
"Work" means and refers, without limitation, to the Improvements, or any part
thereof, to be constructed, installed, performed and/or completed by a state-
licensed General Contractor on or in connection with a Home pursuant to the
terms, covenants and conditions of the General Contractor Agreement. Only the
Improvements and/or the items of Work set forth in the General Contractor
Agreement shall be authorized for payment by the Contractor, up to the maximum
amount authorized under the terms of the Program for such Improvements, or any
part thereof. Any costs of Improvements and/or of Work in excess of the
maximum amount of the Program (which are not the fault of such General
Contractor) shall be paid for by the Qualified Homeowner unless approved in
writing by the Executive Director.
Section 2.
Contractor and the
Agreement.
PERFORMANCE BY CONTRACTOR AND BY AGENCY. The
Agency agree to perform the terms, covenants and conditions of this
Section 3. SCOPE OF SERVICES. The Contractor agrees to provide the Services
to the Agency as set forth herein, as described in the Scope of Services. Promptly following the
4X] 3-0902-9891.]
10
CDC/2009-33
date of approval of this Agreement by the governing board of the Agency, the Contractor,
without limitation, shall or will continue to:
(A) cause the Loan Disbursement Account to be established, or maintained, and the
general form of an FDIC - insured deposit account agreement acceptable to the Agency to
be fully executed by the Contractor, by the depository institution and by the Agency
within thirty (30) calendar days following the date of approval of this Agreement;
(B) continue to use the general form of the Loan Application in connection with an
application by a Qualified Homeowner for the approval by the Agency to the Qualified
Homeowner of the Loan under the Program in accordance with this Agreement. The
applicant for the Loan must submit to the Contractor federal and state income tax returns
filed by the applicant with the appropriate taxing authorities for the past two (2) years
which tax returns must be acceptable to the Contractor in its sole and absolute discretion;
(C) subject to the completion of the tasks described in Section 3(A) and in Section
3(B) above, continue the process of receiving and reviewing Loan Applications and
provide the Services as provided for in the Agreement. The Contractor shall offer the
Program to Qualified Homeowners in the Target Area or the Target Areas specifically
determined and designated by the Agency or, if no Target Area is or no Target Areas are
specifically determined and designated by the Agency, then on an as-needed, first-come,
first-served basis, to Qualified Homeowners throughout the City; provided, however, in
the case of an emergency, of an urgent need or of a life-threatening situation, the
Contractor may process a Loan Application ahead of other Loan Applications subject to
the approval of the Executive Director;
(D) transmit a copy of a completed set of the Loan Documents to the Executive
Director of the Agency, together with: (i) a recommendation from the Contractor to the
Agency to approve the Loan Application and the Loan to the Qualified Homeowner, and
(ii) a request from the Contractor to the Agency for a transfer of the Loan Funds by the
Agency for the account of the Qualified Homeowner. The Executive Director shall either
authorize the funding of such Loan or reject the request for funding on behalf of the
Agency within ten (10) business days of receipt from the Contractor. Any rejection of a
Loan Application shall be in writing and shall state the reasons for such action. Each
acceptance of a Loan Application by the Agency shall be evidenced by the signature of
the Executive Director of the Loan Documents, where desib'l1ated. All Loan Documents
shall be executed, acknowledged, where designated, and completed by the Qualified
Homeowner and by the Contractor, and the disbursement of Loan Funds by the Agency
to or for the benefit of the Qualified Homeowner shall occur within sixty (60) calendar
days following the date of submission by the Contractor to the Executive Director of the
funding request, or the Loan Documents shall be of no further force or effect;
(E) no fees, charges or expenses shall be payable by any applicant to the Contractor
or to the Agency for a Loan, except from the Loan Funds, nor shall the Contractor charge
a Qualified Homeowner for any cost or service in connection with the origination or
subsequent administration of the Loan during the time the Improvements and/or the Work
4813-0902-9891.1
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CDC/2009-33
is constructed, installed, performed and/or completed at the Home, except for the
Maintenance Class fee, or as authorized under the Program by the Executive Director;
(F) instruct the Executive Director to transfer the Loan Funds for the account of each
Qualified Homeowner to the Loan Disbursement Account as set forth in Section 3(0),
above, upon confirmation by the Contractor that the Loan Documents for the Program are
executed and complete and that the Deed of Trust and the Maintenance Agreement
Covenant (and any other documents to be recorded in the County Recorder's Office) are
ready for recordation in the County Recorder's Office. The Contractor shall coordinate
the issuance ofthe policy of title insurance in favor of the Agency by the title insurance
company with the recordation of the Deed of Trust and of the Maintenance Agreement
Covenant;
(G) deliver a fully executed and acknowledged, where designated, original set of the
Loan Documents for each Loan (except for the Deed of Trust and for the Maintenance
Agreement Covenant which documents shall be recorded by the Contractor on behalf of
the Agency in the County Recorder's Office) to the Agency upon request of funding and
transfer of the Loan Funds for the account of the Qualified Homeowner to the Loan
Disbursement Account;
(H) verify that no Loan Funds are disbursed from the Loan Disbursement Account for
the account of a Qualified Homeowner except: (i) to pay a state-licensed General
Contractor and/or state-licensed subcontractor for the Improvements and/or for the Work
constructed, installed, performed and/or completed at the Home pursuant to the General
Contractor Agreement (less a ten percent (10%) retention pending completion of the
Improvements and/or of the Work and final executed written release of all mechanics and
materials liens from the General Contractor and/or from all subcontractors). No
disbursement of the Loan Funds from the Loan Disbursement Account shall be
authorized for any building materials or equipment items which are not physically
delivered at the Home before the date of payment of such Loan Funds to the General
Contractor and/or to the subcontractor; or (ii) to pay a Loan title fee or cost amount
expressly authorized in writing by the Executive Director;
(I) prepare and maintain a Loan Funds disbursement ledger for all payments
authorized and made by the Contractor to the General Contractors and/or to the
subcontractors for the account and debit to each Qualified Homeowner under each Loan
made by the Agency to or for the benefit of the Qualified Homeowner in accordance with
this Agreement. Such ledger shall show each payment by date and reference the
particular Loan, the Loan Documents and the name of the Qualified Homeowner to
which it corresponds. Such ledger shall also include a monthly starting and ending
balance for the Loan Disbursement Account, a final reconciliation of the adjusted balance
of each Loan upon the completion of the Improvements and/or of the Work, and such
other accounting information as the Executive Director may request. A copy of such
ledger shall be submitted to the Executive Director each month with the first such
monthly submittal due on the first day of the next month following the date of the initial
481)-0902-9X9J.1
12
CDC/2009-33
deposit of the Loan Funds by the Contractor and/or the Agency into the Loan
Disbursement Account;
(J) No Improvements and/or Work shall be authorized for payment by the Contractor
unless the Loan Documents are complete and the Contractor has received a fully
executed copy of the General Contractor Agreement by and between the General
Contractor and the Qualified Homeowner. Once the Improvements and/or the Work has
commenced on a particular Home, neither the Qualified Homeowner, the General
Contractor nor the subcontractor shall authorize an amendment or modification of such
contract to include any item of Work, which is not eligible for payment using the Loan
Funds under the terms and conditions of the Loan under the Program. Each such contract
by and between the General Contractor and the Qualified Homeowner, the General
Contractor and the subcontractor, and/or the subcontractor and the Qualified Homeowner
shall include a section, which recites the words of the first two (2) sentences of this
Section 3(J).
Section 4. TIME OF PERFORMANCE OF SERVICES. The Services to be
performed hereunder by the Contractor shall be undertaken and completed in such sequence as to
assure expeditious completion and to best carry out the purposes of the Program and this
Agreement. All Services required hereunder shall begin upon the execution of this Agreement.
Section 5. TERM OF AGREEMENT. This Agreement shall take effect upon the
approval by the governing board of the Agency and the complete execution by the parties. The
Agreement shall remain in effect through July I, 2010, subject to annual approval and
appropriation by the United States Department of Housing and Urban Development ("HUDn).
Section 6.
COMPENSATION PAYABLE BY AGENCY TO CONTRACTOR.
(A) The Agency shall annually compensate the Contractor for the performance of the
Services using the Low-Moderate Income Housing Funds in accordance with the following
schedule:
$50,000.00
Annual Program Administration Fee for
CONTRACTOR
$500,000.00
Single Family Residence Rehabilitation Loan Program
$550.000.00
(B) From and after the Effective Date of this Agreement and for the remaining term of
this Agreement, the Program Administration Fee payable by the Agency to the Contractor as
compensation for the Services performed by the Contractor under this Agreement shall be paid
by the Agency directly to the Contractor, payable in twelve (12) equal monthly installments of
$4,167.00 during the Term of this Agreement, in the aggregate amount of $50,000.00. The
Contractor shall invoice the Agency monthly in equal installments of$4,167.00.
4813-0902-9891 I
13
CDC/2009-33
(C) Payment for each monthly installment in the amount of $4,167.00 for the
performance by the Contractor of the Services will be made by the Agency to the Contractor as
of the first day of each calendar month with the first such payment due on the first day of the
next calendar month following the date of the complete execution of the Agreement by the
parties.
Section 7. PERSONNEL OF CONTRACTOR. The Contractor represents that it
has, or will secure at its own expense, all personnel required to perform the Services. All of the
Services required hereunder will be performed by persons who are either employed by or under
the supervision and control of the Contractor, and all personnel engaged in the Services shall be
fully competent and qualified to perform such Services.
Section 8. INDEPENDENT CONTRACTOR. All acts of the Contractor and all
others acting on behalf of the Contractor relating to the performance of this Agreement, shall be
performed as independent contractors and not as agents, officers, or employees of the Agency.
The Contractor has no authority to bind or incur any obligation on behalf of the Agency. The
Contractor has no authority or responsibility to exercise any right or power vested in the Agency.
No agent, officer, or employee of the Agency shall be considered an agent or employee of the
Contractor. It is understood by both the Contractor and the Agency that this Agreement shall not
under any circumstance be construed or considered to create an employer-employee relationship
or a joint venture as between the Contractor and the Agency. The Contractor is and at all times
during the Term of this Agreement shall represent and conduct itself as an independent
contractor and not as an agent or employee of the Agency. The Contractor shall be responsible
to the Agency only for the requirements and results specified in this Agreement, and except as
expressly provided in this Agreement, shall not be subject to control by the Agency with respect
to the physical action or activities of the Contractor in fulfillment of this Agreement. The
Contractor has control over the manner and means of performing the Services under this
Agreement so long as consistent with the requirements of the Program. The Contractor is
permitted to provide services to others during the same period Services are provided to the
Agency under this Agreement. If necessary, the Contractor has the responsibility for employing
other persons or firms to assist the Contractor in fulfilling the terms and obligations under this
Agreement. If in the performance of this Agreement any third persons are retained as
subcontractors by the Contractor, such persons shall be entirely and exclusively under the
direction, supervision, and control of the Contractor. All terms of employment including hours,
wages, working conditions, discipline, hiring, and discharging or any other term of employment
or requirements of law shall be determined by the Contractor. The Contractor hereby agrees to
indemniry, defend (if requested by Agency), protect and hold the Agency harmless from any and
all claims that may be made against the Agency or based upon any contention by any employee
of the Contractor or by any third party that an employer-employee relationship or joint venture
exists between any person or entity and the Agency, by reason of the performance of any of the
Services under this Agreement.
Section 9. PAYMENT OF AND TRANSFER OF LOAN FUNDS TO LOAN
DISBURSEMENT ACCOUNT. The Agency shall promptly honor each request by the
Contractor for the Agency to transfer Loan Funds to the Contractor who will in turn deposit the
Loan Funds to the Loan Disbursement Account to fund each approved Loan as submitted by the
48 [3-0902-9891.]
14
CDC/2009-33
Contractor to the Agency under Section 3(D). Within sixty (60) calendar days following receipt
of each request for remittance of the Loan Funds, the Agency shall transfer by bank check to the
Contractor such Loan Funds to use as provided herein.
Section 10. COMMERCIAL GENERAL LIABILITY INSURANCE.
AUTOMOBILE INSURANCE. WORKERS' COMPENSATION INSURANCE.
EMPLOYER'S LIABILITY INSURANCE. ERRORS AND OMISSIONS AND
PROFESSIONAL LIABILITY INSURANCE.
(A) The Contractor shall obtain and keep in force during the term of this Agreement,
at its sole cost and expense, the following insurance policies: (i) a commercial general liability
policy of insurance with coverage at least as broad as "Insurance Services Office Commercial
General Liability Form (GOOOI)", in the amount of One Million Dollars ($1,000,000) combined
single limit per occurrence, naming the Agency and the City and the elected officials, officers,
employees, attorneys and agents of each of them as additional insureds (collectively, the
"Additional Insureds") with said insurance covering comprehensive general liability including,
but not limited to, contractual liability, assumed contractual liability under this Agreement, acts
of subcontractors, premises-operations, explosion, collapse and underground hazards, if
applicable, broad form property damage, and personal injury including libel, slander and false
arrest, (ii) comprehensive automobile liability insurance covering owned, non-owned and hired
vehicles by or for the Contractor, combined single limit in the amount of One Million Dollars
($1,000,000) per occurrence, naming the Additional Insureds as additional insureds on each
automobile insurance policy, (iii) workers' compensation insurance in such insurance coverage
amounts as statutorily required, or similar insurance in form and amounts required by law, and
employer's liability insurance, combined single limit in the amount of One Million Dollars
($1,000,000), and (iv) errors and omissions and professional liability, combined single limit in
the amount of One Million Dollars ($1,000,000) per occurrence.
(B) Any and all insurance policies required hereunder shall be obtained from
insurance companies admitted in the State of California and rated at least A: XII in the most
current Best's Key Rating Insurance Guide. In no event shall the Contractor be permitted or
entitled to assign to any third party rights of action which the Contractor may have against the
Agency. All said insurance policies shall provide that they may not be canceled unless the
Agency and the City receive written notice of cancellation at least thirty (30) calendar days prior
to the effective date of cancellation. Any and all insurance obtained by the Contractor shall be
primary to and shall not be contributing with any insurance carried by the Agency or by the City
whose insurance shall be considered excess insurance only. Any insurance which the Agency
and/or City may otherwise carry, including self insurance, for all purposes of this Agreement
shall be separate and apart from the requirements of this Agreement. Legal counsel for the
Agency must approve each insurance policy required in Section 10(A) of this Agreement. The
Contractor waives subrogation and agrees that the Contractor, the Agency and the City are co-
insured. The insurer shall have no right of subrogation against the Agency, against the City or
against any of the other Additional Insureds. The Additional Insureds shall be named as
additional insureds on each insurance policy.
4813-0902-98911
15
CDC/2009-33
(C) All insurance which the Contractor shall carry or maintain pursuant to this Section
10 shall be in such form, for such amounts, for such periods of time as the Agency may require
or approve.
(D) The Contractor shall deliver or cause to be delivered to the Agency concurrently
upon the execution of this Agreement an endorsement of the insurance policies required in this
Section 10(A) of this Agreement evidencing the existence of the insurance coverage required by
the Agency under Section lO(A) of this Agreement and shall also deliver, no later than thirty
(30) calendar days prior to the expiration of any insurance policy, a certificate of insurance
evidencing each renewal policy covering the same risks.
Section 11, INDEMNIFICATION.
(A) The Contractor agrees to indemnify, defend with legal counsel reasonably
acceptable to the Agency, protect and hold the City and the Agency, and their respective elected
officials, directors, officers, members, managers, consultants, contractors, employees, agents and
attorneys, and the successors and assigns of each of them (singularly and collectively, the
"Indemnified Parties" which defined term shall also includes the City and the Agency), harmless
from and against all actions, causes of action, claims, demands, liabilities, damages, losses,
liabilities, obligations, judgments, suits, costs, expenses and fees (including, without limitation,
reasonable attorneys' fees, court costs and expert fees of any nature whatsoever), now or
hereafter arising from or related to: (i) any act or omission of the Contractor and/or of any of the
Contractor's directors, officers, members, managers, consultants, contractors, subcontractors,
materialmen, laborers, any other person or entity furnishing or supplying work, services, goods,
or supplies in connection with the performance ofthis Agreement, employees and agents, and the
successors and/or assigns of each of them (singularly and collectively, the "Indemnifying
Parties" which defined term shall also include the Contractor), in performing, or failing to
perform, its obligations hereunder, (ii) any default by the Contractor under this Agreement,
subject to any applicable cure period, (iii) any violation by any of the IndemnifYing Parties of
any Laws, (iv) any warranty or representation made by the Contractor to the Agency in this
Agreement that is or becomes false and untrue, (v) death, bodily injury and/or personal injury to
any person, (vi) any destruction, loss or damage to real property or personal property, (vii) the
presence of any Hazardous Substances at, on, in, above, under or about any Home owned by a
Qualified Homeowner resulting, directly or indirectly, from the acts or omissions of any
Indemnifying Parties, and/or (viii) the aggravation of any environmental condition by any
Indemnifying Parties at, on, in, above, under or about any Home owned by a Qualified
Homeowner. Without limiting the Contractor's indemnification of the Indemnified Parties, the
Contractor shall provide and maintain, at its sole cost and expense during the term of this
Agreement, the insurance described in Section 10(A) of this Agreement. Such insurance shall be
provided by insurer( s) satisfactory to the Agency and evidence of such insurance satisfactory to
the Agency shall be delivered to the Executive Director no later than the effective date of this
Agreement.
(B) The Agency shall indemnify, defend (if requested by the Contractor) and hold
harmless the Contractor, its agents, officers, and employees, from all claims, loss, demands and
liability for damages for personal injury, bodily injury or property damage suffered by reason of
4813-0902-9891.!
16
CDC/2009-33
any act or omission of the Agency or any of its officers or employees or agents under this
Agreement except where such action or omission giving rise to such a claim is caused by or is
the result of an action, omission or request of the Contractor and/or of any of the other
Indemnifying Parties, or is alleged to arise out of the execution of this Agreement. The
provisions of Section II(A) and Section II(B) shall survive the execution, delivery,
performance, expiration or early termination of this Agreement.
Section 12. DEFAULTS AND BREACH - GENERAL. The failure or delay by
either party to perform any material term or provision of this Agreement shall constitute a default
hereunder; provided, however, that if the party who is otherwise claimed to be in default by the
other party commences to cure, correct or remedy the alleged default within thirty (30) calendar
days after receipt of written notice specifying such default and shall diligently complete such
cure, correction or remedy, such party shall not be deemed to be in default hereunder. A default
shall also occur under this Agreement whenever a representation and/or warranty made in this
Agreement is or becomes false or untrue. A default shall also occur under this Agreement
whenever a party files, or has filed against it, a petition in bankruptcy, is or becomes insolvent, is
unable to pay its debts as they mature, assigns its assets for the benefit of creditors, or a receiver,
trustee or custodian is appointed by a court to exercise control over all or substantially all of the
assets of the party and such receiver, trustee or custodian is not discharged by the court within
sixty (60) calendar days after said appointment date. The party which may claim that a default
has occurred shall give written notice of default to the party in default specifying the alleged
default. Delay in giving such notice shall not constitute a waiver of any default nor shall it
change the time of default; provided, however, the injured party shall have no right to exercise
any remedy for a default hereunder without delivering the written default notice as specified
herein. Any failure or delay by a party in asserting any of its rights and remedies as to any
default shall not operate as a waiver of any default or of any rights or remedies associated with a
default, and the rights and remedies of the parties are cumulative and the exercise by either party
of one or more of such rights or remedies shall not preclude the exercise by it, at the same or
different times, of any other rights or remedies for the same default or any other default by the
other party. In the event that a default of either party may remain uncured for more than thirty
(30) calendar days following written notice, as provided above, a "breach" shall be deemed to
have occurred. In the event of a breach, the party who is not in default shall be entitled to
terminate this Agreement and seek any appropriate remedy or damages by initiating legal
proceedings. If any action or proceeding is brought to enforce the terms hereof or declare rights
hereunder, it shall be brought in the Superior Court of the County of San Bernardino, San
Bernardino District, State of California. The governing law to be applied in any such action or
proceeding shall be the law of the State of California. The prevailing party in any such legal
proceedings shall be entitled to recover as an element of its costs of bringing such suit, and not as
part of its damages, its reasonable attorneys' fees, court costs, expert witness fees and consultant
fees and costs. The costs, salary and expenses of the City Attorney and members of his office in
such action or proceeding on behalf of the Agency shall be considered as "attorneys' fees" for
purposes of this Section.
Section 13. NONDISCRIMINA nON. During the Contractor's performance of the
Services, the Contractor shall not discriminate on the grounds of race, religion, creed, color,
national origin, age, ancestry, physical handicap, medical condition, marital status, sex, or sexual
4813-0902-9891,1
17
CDC12009-33
orientation in the performance of the Services, including, without limitation, in the selection and
retention of employees, General Contractors and subcontractors and the procurement of materials
and equipment, except as provided in Section 12940 of the California Government Code.
Section 14. CONFLICT OF INTEREST. The Contractor warrants, by execution of
this Agreement, that it has no interest, present or contemplated, in the Program or in any Home
benefited thereby or Work performed on any Home using the Loan and the Loan Funds. The
Contractor further warrants that it owns or possesses no interest in real property, business
interests or owner of income (other than such amounts of compensation payable by the Agency
to the Contractor for the Services under this Agreement) that will be affected by the Program or,
alternatively, if such interest exists or arises the Contractor will promptly file with the Agency an
affidavit disclosing any such interest.
Section 15. AMENDMENTS. All amendments to this Agreement shall be subject to
the approval of both parties in the sole discretion of each of them, mutual and in writing. The
Executive Director of the Agency is authorized to make non-substantive changes, clarifications,
corrections to the Agreement, including budget line item adjustments, provided such actions are
approved by legal counsel for the Agency and do not increase the Agency's monetary annual
appropriation to the Contractor as approved by the governing board of the Agency.
Section 16. TERMINATION.
(A) This Agreement may be terminated for any reason by either party who is not then
in default upon ten (10) calendar days prior written notice to the other party. In such event, the
Contractor shan be entitled to receive compensation for Services pro-rated through the date of
such termination, provided that the Services have been rendered.
(B) In the event of a termination of the Agreement as a result of a breach, the rights
and duties of the parties shall be as set forth in Section 12.
(C) In the event of any termination of this Agreement, the Contractor shall promptly
return an Loan Funds that have been disbursed by the Agency to the Contractor with the
exception of any Loan Funds that have been properly disbursed by the Contractor to or for the
benefit of one or more Qualified Homeowners under this Agreement, without charge or expense
to the Agency.
Section 17. ASSIGNMENT. It is mutually understood and agreed that this
Agreement shall be binding upon the Agency and its successors and assigns and upon the
Contractor and its successors and assigns. The Agency may assign this Agreement, without
obtaining the prior consent or approval of the Contractor. The Contractor may not assign this
Agreement without obtaining the prior written consent of the Agency, which written consent
may be given or withheld by the Agency in its sole and absolute discretion. Any assignment or
attempt to assign this Agreement by the Contractor shall be void.
Section 18. NOTICES. Communications, notices, bills, invoices or reports required
by this Agreement shall be in writing and shall be deemed to have been given when actually
4813-0902-9891.1
18
CDC12009-33
delivered, if given by hand delivery or transmitted by overnight courier service, or if mailed,
three (3) business days after being deposited in the United States mail, postage prepaid, to the
address noted below:
Agencv
Economic Development Agency
of the City of San Bernardino
Attention: Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 92401
Phone: (909) 663-1044
Fax: (909) 888-9413
Contractor
Neighborhood Housing Services of
the Inland Empire, Inc.
Attention: Executive Director
1390 North "D" Street
San Bernardino, California 92405
Phone: (909) 884-6891
Fax: (909) 889-4085
Either party may change its address for receipt of written notice by notifYing the other
party in writing of a new address for delivering notice to such party.
Section 19. REPRESENTATION AND WARRANTY OF CONTRACTOR. The
Contractor hereby represents and warrants to the Agency as follows:
(A) The Contractor is a California nonprofit corporation duly organized, existing, and
authorized to transact business in California;
(B) the corporate charter and by-laws of the Contractor authorize the Contractor to
provide the Services to the Agency and the governing board and membership of the Contractor
have previously taken all action necessary to authorize the execution of this Agreement by the
Contractor;
(C) the Contractor is qualified to perform the Services and shall timely perform and
complete the Services in a professional manner.
Section 20. CONDITIONS PRECEDENT. The validity and enforcement of this
Ab'l'eement is subject to the execution and delivery by the Agency and by the Contractor of the
following Agreements: (i) the Beautification Grant Program Agreement, (ii) the Mobile Home
Grant Program Agreement, and (iii) the First Amendment to the Homebuyer Education Program
Agreement.
Section 21. LOAN FUNDS AND LOAN DOCUMENTS ARE THE PROPERTY
OF THE AGENCY. The Loan Documents for each Loan are the property and asset of the
Agency. The Contractor has no property interest in any such Loan Documents and the
Contractor shall not transfer, assign or pledge as collateral or claim any other security interest in
any such Loan Documents. All of the Loan Documents are the property of the Agency, and the
Contractor shall maintain all such Loan Documents in its possession as confidential consumer
business records of the Qualified Homeowner. All Loan Funds disbursed by the Agency to the
Contractor for the benefit of a Qualified Homeowner are the property of the Agency until paid by
the Contractor to the General Contractor upon the completion of the Work at the Home for the
account ofthe Qualified Homeowner under the applicable Loan Documents.
48 [3-0902-989].1
19
CDC/2009-33
Section 22. NON-ELIGIBILITY OF HOMEOWNER. Once the Agency has
approved the Loan Application for the Qualified Homeowner and has disbursed the Loan Funds
to the Contractor for the benefit of the Qualified Homeowner under this Agreement, the
Qualified Homeowner now or hereafter shall have no right to apply for and to receive any other
grant or loan being provided by the Agency to the general public under any grant or loan
program, including, without limitation, any grant being offered by the Agency under the Single
Family Beautification Grant Program or under the Mobile Home Grant Program or any loan
being offered by the Agency to the general public under the Single Family Rehabilitation Loan
Program until: (i) ten (10) years after the date that the Agency has paid the last installment of the
Loan Funds to the Contractor for the benefit of the Qualified Homeowner under this Agreement,
and (ii) the Qualified Homeowner has paid in full the Loan to the Agency in accordance with the
Loan Documents or the Agency has discharged and forgiven the Loan by the Qualified
Homeowner pursuant to the Loan Documents.
Section 23. GENERAL PROVISIONS. This Agreement constitutes the sole
agreement between the parties. All prior conversations, agreements or representations relating
hereto are integrated in this Agreement. No oral agreement, representation or warranty shall be
binding upon the parties. If any provision of this Agreement shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining portions of this
Agreement shall not in any way be affected or impaired thereby. Failure of any party to enforce
any provision of this Agreement shall not constitute a waiver of the right to compel enforcement
ofthe same provision or any remaining provisions of this Agreement. Headings at the beginning
of each section or subsection are solely for the convenience of the parties and are not a part of
this Agreement. Whenever required by the context of this Agreement, the singular shall include
the plural and the masculine shall include the feminine and vice versa. This Agreement shall not
be construed as if it had been prepared by one of the parties, but rather as if all parties had
prepared the same. Unless otherwise indicated, all references to sections are to this Agreement.
All exhibits referred to in this Agreement are attached hereto and incorporated herein by this
reference. If the date on which any action is required to be performed under the terms of this
Agreement is not a business day, the action shall be taken on the next succeeding business day.
This Agreement may be executed in one or more counterparts each of which shall be an original
but all of which together shall constitute but one original Agreement. This Agreement may be
executed by facsimile signatures, and each facsimile counterpart when taken together shall be
deemed an original Agreement.
48]3-0902-9891.1
20
CDC/2009-33
IN WITNESS WHEREOF, the Contractor and the Agency have caused this Agreement
to be duly executed on the date first above written.
AGENCY
Dated:
1-/~-07
Redevelopment Agency of the
City of San Bernardino,
a public body, corporate and politic
~.
By:
Emil A. Marzul 0, nterim Executive Director
Approved as to Form and Content:
\/~ ~tJ-
Agency nse
CONTRACTOR
Neighborhood Housing Services
of the Inland Empire, Inc.,
a California nonprofit corporation
Date: (f)' d.-C7 . c. '7
B'..~
N~o iV .. n n,~~
Title: Executive Director
Date:
By:
Name:
Title:
4813-0902-9891.1
21
CDC/2009-33
EXHIBIT "A"
2009 Income Limits
4813-0902-9891.]
22
CDC/2009-33
EXHIBIT "B"
48]3-0902-9891.]
23
CDC/2009-33
EXHIBIT "c"
SCOPE OF SERVICES
(Description of Program)
A. Contractor's Administration Annual Fee
The Agency shall annually compensate the Contractor the total sum of Fifty Thousand Dollars
($50.000.00) for the administration and the implementation of the Program herein and for the
Services rendered under this Agreement, subject to the annual approval and appropriation by the
United States Department of Housing and Urban Development ("HUD"). The Contractor shall
invoice the Agency monthly in equal installments of Four Thousand One Hundred Sixty-Seven
Dollars ($4,167.00), in the aggregate annual amount of$50.000.00).
B. Sinl1.le Familv Residence Rehabilitation Loan Prol1.ram (the "Prol1.ram")
($550.000.00)
The Contractor shall accept the Loan Applications from respective Qualified Homeowner
applicants to determine income and improvement eligibility (see Exhibit "A" to this Agreement),
to determine equity in the Home and to verify ownership and length of ownership by obtaining a
preliminary title report or other pertinent documentation from a reputable title company. The
Contractor shall offer the Program to Qualified Homeowners in the Target Area or in the Target
Areas specifically determined and designated by the Agency or, if no Target Area is or no Target
Areas are specifically determined and designated by the Agency, then on an as needed, first-
come, first-served basis, to Qualified Homeowners throughout the City of San Bernardino.
However, in the case of an emergency, of an urgent need or of a life-threatening situation, the
Contractor may process a Loan Application ahead of other Loan Applications subject to the
approval by the Executive Director. The Improvements allowed under the Program are
described in Section "c" below of this Scope of Services.
C. Elicible Improvements Permitted under the Prol1.ram
The following types of Improvements are permitted in connection with the Program: (i) roof
repairs and re-roof or overlay, (ii) exterior and interior painting, including, without limitation,
lead testing, (iii) drought tolerant landscaping (irrigation system. with hydro seeds. sod or
artificial turf), (iv) window replacement, (v) carpet replacement and/or finished flooring
replacement, (vi) HV AC system, (vii) electrical work, (viii) Sewer Repairs, (ix) termite repairs,
(x) exterior concrete hardscape such as sidewalks, driveways, curbs, gutters, hand railings or
ramps, (xi) door or window screens repairs or replacements, (xii) tub, shower, toilet repairs or
replacements, (xiii) foundation or structural repairs, (xiv) fencing or (xv) installation of
alternative energy sources, including, without limitation, solar panels. The Improvements must
relate to health and safety code violations (i.e., blown sewer lines, septic tank destruction, etc.).
In connection with each Loan Application for Sewer Repairs, the Agency shall have the right to
determine whether or not such Sewer Repairs shall be made from funds disbursed by the Agency
4813-0902-9X91 I
24
CDC/2009-33
from Loan Funds under the Program or from grant funds disbursed by the Agency to an applicant
under the Single Family Beautification Grant Program, or under any other then existing grant
program. Should the Agency determine that the Sewer Repairs will need to be disbursed by the
Agency from grant funds pursuant to the Single Family Beautification Grant Program, or any
other then existing grant program, the Contractor shall advise the applicant, in writing, that the
applicant will need to prepare, to execute and to submit a new grant application to the Contractor
under the Single Family Beautification Grant Program, or under any other then existing grant
program, which grant application, without limitation, shall request the Agency to make a grant to
the applicant to permit the applicant to make and to complete the Sewer Repairs.
The maximum amount of the Loan permitted under the Program is the Loan Amount per Home,
without the prior written approval ofthe Executive Director.
D. Applicant Elieibilitv Requirements for the Proeram
I. Qualified Homeowner must be an owner and occupant of the Home, as its principal
residence, for a minimum period of one (1) year; on a case-by-case basis, and depending on the
circumstances, this one (1) year requirement may be waived by the Executive Director or hislher
designee; the Contractor shall ohtain evidence of ownership and length of ownership and
residency.
2. Qualified Homeowner must execute and complete a Loan Application and must deliver
and submit the Loan Application, as fully executed and completed, to the Contractor. The
Contractor shall receive, review, verify and approve or reject the Loan Application. If the Loan
Application is not acceptable to the Contractor, the Contractor shall notify the applicant in
writing within ten (10) business days from the receipt by the Contractor of the Loan Application
and the Contractor shall provide the applicant with the reasons for the rejection hy the
Contractor.
3. Qualified Homeowner must have a personal or household income level, adjusted for
family size, during the twelve (12) months preceding the date of submission of the Loan
Application to the Contractor within the ranges of income for low-moderate income households,
adjusted for family size, as set forth in Exhibit "A" to this Agreement.
4. Qualified Homeowner must agree to: (i) attend a Maintenance Class conducted hy the
Contractor, (ii) live in the Qualified Homeowner's Home, as its principal residence, for not less
than ten (10) years after the recordation of the Maintenance Agreement Covenant in the County
Recorder's Office, and (iii) to maintain the Home in accordance with the Maintenance
Agreement Covenant for not less than ten (10) years after the recordation of the Maintenance
Agreement Covenant in the County Recorder's Office.
5. Qualified Homeowner must execute and acknowledge, where appropriate, the Loan
Documents. The Qualified Homeowner, without limitation, shall execute and notarize the Deed
of Trust and the Maintenance Agreement Covenant and the Contractor or the Agency shall
record, or shall cause the recordation of, the Deed of Trust and the Maintenance Agreement
Covenant in the County Recorder's Office.
48]3-0902-9891.]
25
CDC/2009-33
6. Qualified Homeowner must not have received any grant or loan from the Agency for a
period of ten (10) years prior to the submission by the Qualified Homeowner to the Contractor
andlor to the Agency of the Loan Application.
E. Guidelines
The Contractor shall conduct, administer, implement, comply with and perform the following
guidelines in connection with the Program:
I. The Contractor shall administer and implement the Program herein and shall utilize the
applicable and pertinent sections of the Agency's Loan Policies and Procedures Manual for
guidance on processing and packaging all Loans under this Agreement, if applicable, under the
direction of the Executive Director.
2. The Contractor shall accept the Loan Applications from respective Qualified Homeowner
applicants to determine income and improvement eligibility, to determine equity in the Home,
and to verify ownership and length of ownership by obtaining a preliminary title report or other
pertinent documentation from a reputable title company. The Contractor shall offer the Program
to Qualified Homeowners in the Target Area or the Target Areas specifically determined and
designated by the Agency or, if no Target Area or no Target Areas are specifically determined
and designated by the Agency, then on an as needed, first-come, first-served basis, to Qualified
Homeowners throughout the City of San Bernardino. However, in the case of an emergency, of
an urgent need or of a life-threatening situation, the Contractor may process a Loan Application
on an urgent basis ahead of other Loan Applications subject to the approval of the Executive
Director.
3. The Contractor shall inspect eligible Homes and properties to determine the type of
health and safety and code violation repair work needed, including asbestos and lead-based paint
removal, the age and overall condition of the Home and to ensure that all Homes repaired or
improved under the Program when completed are aesthetically pleasing and in compliance with
all Laws.
4. The Contractor shall prepare and complete Work write-ups, cost estimates, and bid
packages for the Improvements to be constructed, installed, performed and completed for each
Qualified Homeowner's Home.
5. The Contractor shall ensure that all Improvements andlor Work constructed, installed,
performed andlor completed in connection with the Qualified Homeowner's Home shall be
constructed, installed, performed and completed by pre-qualified State licensed General
Contractors andlor State licensed subcontractors. The Contractor shall also require that each
General Contractor andlor subcontractor constructing, installing, performing andlor completing
the Improvements andlor the Work in connection with the Qualified Homeowner's Home under
the Program shall possess a current business license in the City and shall possess a current
license with the State of California Contractor's License Board. The Contractor shall be
required, whenever feasible, to obtain a minimum of three (3) bids from General Contractors for
4813-0902-9891.]
26
CDC/2009-33
all Improvements and/or for all Work to be constructed, installed, performed and/or completed in
connection with the Qualified Homeowner's Home. All bids shall be made available by the
Contractor to the Qualified Homeowner for review. All Improvements and/or Work constructed,
installed, performed and/or completed by General Contractors and/or by subcontractors in
connection with the Qualified Homeowner's Home shall be approved and authorized by the
Qualified Homeowner, and shall be completed within a specified timeframe acceptable to the
Qualified Homeowner and the General Contractors and/or the subcontractors.
6. The Contractor shall solicit bids for the construction, installation, performance and/or the
completion of the Improvements and/or of the Work in connection with the Qualified
Homeowner's Home from a list of pre-approved General Contractors. The Contractor shall
assist the Qualified Homeowners with the selection of a General Contractor, and shall assist the
Qualified Homeowner in connection with the execution of the General Contractor Agreement,
including, without limitation, a determination as to the scope of the Improvements and/or of the
scope of Work to be constructed, installed, performed and/or completed by the General
Contractor, any schedule of performance, other schedules, conduct pre-construction and walk-
through conferences.
7. Prior to the execution of the General Contractor Agreement and prior to any funding by
the Contractor of any Loan Funds to the General Contractor for the proposed Improvements
and/or Work to be constructed, installed, performed and/or completed, the Contractor and the
members of the Agency application review committee (the "Application Review Committee")
appointed and assigned by the Agency to approve, administer and oversee the construction, the
installation, the performance and/or the completion of the Improvements and/or of the Work
shall meet on one or more occasions to discuss the Improvements and/or the Work to be
constructed, installed, performed and/or completed in connection with the Qualified
Homeowner's Home and the methodology used or to be used to identify, quantify and assist the
Qualified Homeowner.
8. The Contractor and the Qualified Homeowner must review, approve, execute and
acknowledge, where designated, the Loan Documents. The Loan Documents shall include,
without limitation, the following: (i) the Note, which shall be executed by the Qualified
Homeowner in favor of the Agency and (ii) the Deed of Trust and the Maintenance Agreement
Covenant which Deed of Trust and Maintenance Agreement Covenant must be executed and
acknowledged, where designated, by the Agency and by the Qualified Homeowner and each
must be recorded by the Contractor or by the Agency in the County Recorder's Office. The
General Contractor and/or any subcontractor cannot commence the construction, the installation,
the performance and/or the completion of the Improvements and/or of the Work in connection
with a Qualified Homeowner's Home until: (i) the Loan Documents have been executed and
acknowledged, where appropriate, by the Agency and by the Qualified Homeowner, and (ii) all
recordable instruments, documents and/or agreements in connection with the Loan, including,
without limitation, the Deed of Trust and the Maintenance Agreement Covenant have been
recorded by or for the Contractor or the Agency in the County Recorder's Office.
9. The General Contractor shall obtain one or more permits as required by applicable Laws
to construct, install, perform and/or complete the Improvements and/or the Work at the Qualified
4813-0902-9S91. ]
27
CDC/2009-33
Homeowner's Home. At the time that the Contractor submits an invoice to the Agency for
payment of all or a portion of the Loan Funds in connection with the Loan made by the Agency
to the Qualified Homeowner, the Contractor shall provide the Agency with a copy of each permit
that is or will be required to construct, to install, to perform and/or to complete the Improvements
and/or the Work in connection with the Qualified Homeowner's Home. The Agency shall have
no obligation to pay any invoice submitted by the Contractor to the Qualified Homeowner until
the Agency has received and approved each permit issued for the Improvements and/or for the
Work completed by the General Contactor and/or by the subcontractor and identified in the
mVOlce.
10. The Contractor shall inspect and monitor the Improvements and/or the Work while in
progress and shall supervise the payment invoice procedures to ensure that all General
Contractors and subcontractors are meeting obligations and that progress payments and
retentions are paid in a timely manner.
II. The Contractor shall receive and collect from the General Contractors and/or from the
subcontractors an executed lien release under one of the following lien releases, as appropriate:
(i) an unconditional waiver and release upon progress payment, or (ii) an unconditional waiver
and release upon final payment. The Contractor shall not make the final payment of the
remaining Loan Funds to any General Contractor until the General Contractor and/or all
subcontractors have executed and the Contractor has received the conditional waiver and release
upon final payment or the unconditional waiver and release upon tinal payment.
12. The Contractor shall coordinate final inspection and payment of the General Contractor
Agreement retention with the Qualified Homeowner, with the General Contractor and with the
Agency. The contract retention shall not be paid by the Contractor to the General Contractors
and/or to the subcontractors until all time periods for filing liens have expired and no liens have
been filed under applicable Laws.
13. Prior to the payment by the Contractor of the Loan Funds, or any portion thereof, to the
General Contractor, for the construction, for the installation, for the performance and/or for the
completion of the Improvements and/or of the Work in connection with a Qualified
Homeowner's Home, the Contractor shall notify the Agency that the Contractor has received an
invoice for payment. Within ten (10) business days from receipt by the Contractor of the
invoice, the Contractor and the Agency shall inspect and approve the Improvements and/or the
Work identified in the invoice and constructed, installed, pcrformed and/or completed by the
General Contractor and/or by any subcontractor. The Contractor shall not pay any such invoice
for the construction, installation, performance and/or completion of the Improvements and/or of
the Work until the Contractor and the Agency have inspected and approved, in writing, the
Improvements and/or the Work constructed, installed, performed and/or completed by the
General Contractor and/or by any subcontractors. The Agency reserves the right to approve
payment of an invoice in circumstances when no physical inspection is needed as determined by
the Agency in its sole and absolute discretion (i.e., fumigation for termites).
14. The Contractor shall maintain accurate records for inspection by the Agency concerning
income and program occupancy of all persons obtaining assistance from the Contractor pursuant
48[3-0902-989].1
28
CDC/2009-33
to this Agreement including, but not limited to, the Loan Application and the other Loan
Documents, proof of ownership, income verification, comparables or appraisals and/or Work
write-ups. The original Loan Documents shall be executed and acknowledged, where
appropriate, by the Agency and by the Qualified Homeowner, shall be for the benefit of the
Agency and shall be transmitted by the Contractor to Agency in connection with each Loan
made by the Agency to the Qualified Homeowner.
15. The Contractor shall also provide quarterly reports to the Agency, or as otherwise
required by the Agency, upon the request of the Executive Director to the Contractor.
16. From time to time, the Agency and the Contractor shall coordinate inspection of the
Improvements and/or of the Work at the Qualified Homeowner's Home to ensure that the
Improvements and/or the Work are performed, installed, constructed and completed in a good
workmanlike manner and in accordance with all applicable Laws.
17. The Contractor shall provide any and all services required by the Executive Director or
his/her designee, in order to effectively implement and complete the Services under this
Agreement.
18. Prior to the disbursement by the Agency of the Loan Funds, or any portion thereof, to, or
for the benefit of, the Qualified Homeowner pursuant to the Loan that has been awarded by the
Agency to the Qualified Homeowner, the Contractor must fully comply with, verify and confirm,
tel the satisfaction of the Agency, that all tasks, matters, items, events, and conditions listed on
the checklist (the "Checklist") have been fully performed and satisfied, unless specifically
waived in writing by the Agency in connection with such Loan. The Checklist shall not be
interpreted to limit or to restrict the Agreement, in any manner whatsoever. The Checklist is
attached hereto and incorporated herein by this reference as Exhibit "D".
4813-0902-9891.1
29
CDC/2009-33
REDEVELOPMENT AGENCY OF THE CITY OF
SAN BERNARDINO
MOBILE HOME GRANT PROGRAM AGREEMENT
(HOME Funds)
THIS MOBILE HOME GRANT PROGRAM AGREEMENT (the "Agreement") is made
and entered into this 6th day of July, 2009 (the "Effective Date"), by and between the
NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE, INC., a California
non-profit corporation (the "Contractor") and the REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO (the "Agency"), a public body, corporate and politic. The
Agency and the Contractor agree as follows:
RECITALS
WHEREAS, the Agency and the Contractor have previously entered into the Single
Family Beautification Loan/Grant And Mobile Home Grant Programs (Low-Moderate Housing
Fund and HOME Fund), dated as of February 7, 2005, as modified by that certain Amendment
No. I To The Single-Family Beautification Loan/Grant And Mobile Home Grant Program, dated
as of June 4, 2007, by and between the Agency and the Contractor (collectively, the "Loan and
Grant Agreement"); and
WHEREAS, the Loan and Grant Agreement provides for the following: (i) loan funds
(the "Rehabilitation Loan Program") and grant funds (the "Beautification Grant Program") to
low-moderate income homeowners who reside in the City of San Bernardino (the "City"), in the
County of San Bernardino (the "County"), in the State of California (the "State") to permit such
homeowners to undertake certain housing rehabilitation and correction work, including, without
limitation, asbestos and lead containing materials abatement work, handicap accessibility
improvements and utility energy improvements as described in the Loan and Grant Agreement,
to single family residential dwelling units owned and occupied by such low-moderate
homeowners, and (ii) grant funds (the "Mobile Home Grant Program") to low-income owners of
mobile homes who reside in the City, in the County and in the State to permit, without limitation,
such low-income mobile home owners to make repairs and improvements to their mobile homes
in accordance with the Loan and Grant Agreement); and
WHEREAS, the Agency and the Contractor have previously entered into the Home
Agreement, dated June 4, 2007 (the "Homebuyer Education Program Agreement"), wherein the
Contractor, without limitation, administers, implements and conducts a Homebuyer Education
Program (as defined therein); and
WHEREAS, the Rehabilitation Loan Program, the Beautification Grant Program, the
Mobile Home Grant Program and the Homebuyer Education Program promote and expand the
supply of affordable housing in the City and foster the elimination and prevention of blight; and
WHEREAS, the Agency and the Contractor would like to amend the Homebuyer
Education Program Agreement pursuant to the First Amendment (as defined below) and to
execute, to deliver and to perform under a new and separate agreement for each of the
4812-70]4-0931.4
CDC/2009-33
Rehabilitation Loan Program, for the Beautification Grant Program and for the Mobile Home
Grant Program; and
WHEREAS, the Agency and the Contractor desire to terminate the Loan and Grant
Agreement and to replace the Loan and Grant Agreement with each of the following three (3)
new and separate agreements: (i) the Single Family Beautification Grant Program Agreement
(the "Beautification Grant Program Agreement") which provides grant funds to low-moderate
income homeowners who reside in the City, in the County and in the State to permit such
homeowners to undertake certain housing rehabilitation and correction work as described in the
Beautification Grant Program Agreement, to single family residential dwelling units owned and
occupied by such low-moderate homeowners, (ii) the Single Family Rehabilitation Loan
Program Agreement (the "Rehabilitation Loan Program Agreement") which provides loan funds
to low-moderate income homeowners who reside in the City, in the County and in the State to
permit such homeowners to undertake certain housing rehabilitation and correction work as
described therein, to single family residential dwelling units owned and occupied by such low-
moderate homeowners, and (iii) this Agreement which provides grant funds to low-income
owners of mobile homes who reside in the City, in the County and in the State to permit, without
limitation, such low-income mobile home owners to make repairs and improvements to their
mobile homes in accordance with this Agreement; and
WHEREAS, the Agency and the Contractor have determined that this Agreement, the
Rehabilitation Loan Program Agreement, the Beautification Grant Program Agreement and the
Homebuyer Education Program Agreement, as amended, will promote and expand the supply of
affordable housing in the City and will foster the elimination and prevention of blight; and
WHEREAS, the Loan and Grant Agreement shall not be terminated until the Agency and
the Contractor have entered into and executed this Agreement, the Rehabilitation Loan Program
Agreement, the Beautification Grant Program Agreement and the Amendment No. I (the "First
Amendment") to the Homebuyer Education Program Agreement.
NOW, THEREFORE, IN CONSIDERATION OF THE RECITALS
MENTIONED ABOVE, THE MUTUAL PROMISES OF THE AGENCY AND OF THE
CONTRACTOR IN THIS AGREEMENT AND FOR OTHER GOOD AND VALUABLE
CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY
ACKNOWLEDGED BY THE AGENCY AND BY THE CONTRACTOR, THE AGENCY
AND THE CONTRACTOR AGREE AS FOLLOWS:
Section L DEFINITIONS OF CERTAIN TERMS, In addition to the words and
phrases, which are defined in the Recitals of this Agreement and/or in this Agreement, the
following words and terms shall have the meaning set forth below:
"Countv Recorder's Office" means and refers to the county recorder's office for
the County of San Bernardino, State of California.
"Environmental Laws" mean and refer to all applicable federal, state, municipal
and local laws, statutes, codes, ordinances, rules, regulations, orders and
4812-7014-0931.4
2
4812-7014-093].4
CDC12009- 33
judgments relating to the protection or clean-up of the environment, the use,
treatment, storage, transportation, generation, manufacture, processing,
distribution, handling or disposal of, or emission, discharge or other release or
threatened release of hazardous substances, the preservation or protection of
waterways, groundwater, drinking water, air, wildlife, plants or other natural
resources, the health and safety of persons, or the protection of the health and
safety of employees, now or hereafter existing, as the same may be amended,
modified or supplemented from time to time, including, without limitation: the
Clean Air Act, as amended, 42 V.S.C. Section 7401 et seq.; the Federal Water
Pollution Control Act, as amended, 33 V.S.C. Section 1251 et seq.; the Resource
Conservation and Recovery Act of 1976, as amended, 42 V.S.C. Section 6901 et
seq.; the Comprehensive Environment Response, Compensation and Liability Act
of 1980, as amended (including the Superfund Amendments and Reauthorization
Act of 1986, "CERCLA"), 42 V.S.C. Section 9601 et seq.; the Toxic Substances
Control Act, as amended, 15 V.S.C. Section 2601 et seq.; the Occupational Safety
and Health Act, as amended, 29 V.S.C. Section 651, the Emergency Planning and
Community Right-to-Know Act of 1986, 42 V.S.C. Section 11001 et seq.; the
Safe Drinking Water Act, as amended, 42 V.S.C. Section 300f et seq.; the
California Health and Safety Code (g 25100 et seq., * 25249.5 et seq., * 39000 et
seq.); the California Water Code (* 13000 et seq.); the California Environmental
Quality Act ("CEQA"); the California Public Resources Code; all comparable
state and local laws, laws of other jurisdictions or orders and regulations; and any
and all common law requirements, rules and bases of liability regulating, relating
to or imposing liability or standards of conduct concerning pollution or protection
of human health or the environment, as now or may at any time hereafter be in
effect.
"Executive Director" means and refers to the Interim Executive Director of the
Agency and his or her authorized representatives.
"General Contractor Agreement" means and refers to the Mobile Home Grant
Program General Contractor Agreement by and between the Qualified
Homeowner and the contractor identified therein (the "General Contractor") as
approved, in writing, by the Contractor. The General Contractor Agreement
relates, without limitation, to the construction, installation and completion by the
General Contractor ofthe Work described in the General Contractor Agreement.
The General Contractor Agreement shall be executed by and between the
Qualified Homeowner and the General Contractor and shall be accepted, in
writing, by the Contractor. The General Contractor Agreement shall be
substantially similar to the General Contractor Agreement attached hereto and
incorporated herein by this reference as Exhibit" ".
"Grant" means and refers to each grant transaction approved, granted and made
by the Agency to or for the benefit of the Qualified Homeowner in accordance
with this Agreement. Each Grant made by the Agency to the Qualified
Homeowner may not exceed Five Thousand Dollars ($5,000). The Qualified
3
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Homeowner shall pay all amounts that exceed the Grant Funds paid by the
Agency for the benefit of the Qualified Homeowner under the Program to enable
the Qualified Homeowner to complete the Improvements in connection with the
Qualified Homeowner's Mobile Horne. For each year during the term of this
Agreement, the Contractor will attempt to approve, complete, process, conduct
and finalize a minimum of thirty-two (32) Grants.
"Grant Aoolication" means and refers to the Mobile Horne Grant Program
Application as fully completed and executed by the Qualified Homeowner. The
Grant Application shall be submitted by the Qualified Homeowner to the
Contractor and the Contractor shall verify that the Grant Application is complete.
Each Grant Application shall contain the information relating to the Qualified
Homeowner and the proposed use of the Grant Funds by the Qualified
Homeowner. The Contractor shall require all Qualified Homeowners to complete
the Grant Application substantially similar to the Grant Application attached
hereto and incorporated by reference as Exhibit" ."
"Grant Aooroval Agreement" means and refers to the Mobile Horne Grant
Program Work Approval and Fund Release Agreement by and between the
Qualified Homeowner and the Contractor. The Grant Approval Agreement,
without limitation, notifies the Qualified Homeowner that the Agency has
awarded the Grant to the Qualified Homeowner. The Grant Approval Agreement
must be executed by the Qualified Homeowner and by the Contractor and must be
substantially similar to the Grant Approval Agreement attached hereto and
incorporated herein by this reference as Exhibit" ".
"Grant Disbursement Account" means and refers to a separate custodial deposit
account, which the Contractor shall establish with an FDIC-insured depository
institution for the receipt and disbursement of the Grant Funds in connection with
the approval, granting and making by the Agency to the Qualified Homeowner of
the Grant under the Program in accordance with this Agreement. Such deposit
account agreement among the Contractor, the Agency and such depository
institution shall be in a form and substance as reasonably satisfactory to the
Agency. The Contractor shall create and maintain a separate Grant Disbursement
Account for each Grant approved, granted and made by the Agency for the benefit
of each Qualified Homeowner. No other funds of the Contractor shall be
deposited or co-mingled in the Grant Disbursement Account. The Contractor
shall serve as the trustee of the Agency in the administration of all of the Grant
Funds or deposit in each Grant Disbursement Account, including any interest as
may accrue thereon.
"Grant Documents" mean and refer to the following: (i) the Grant Application,
(i1) the Mobile Home Repairs Document, (iii) the Grant Approval Agreement, and
(iv) this Agreement and such other agreements, documents, instruments and/or
certifications relating to or in connection with the Grant to the Qualified
Homeowner, the Grant Funds and/or the Grant Disbursement Account.
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"Grant Funds" mean and refer to the funds delivered by the Agency to or for the
benefit of a Qualified Homeowner in connection with the Grant that the Agency
has approved and granted to the Qualified Homeowner in accordance with this
Agreement. Each Grant made by the Agency to the Qualified Homeowner may
not exceed Five Thousand Dollars ($5,000). The Qualified Homeowner shall
timely pay all amounts that exceed the Grant Funds paid by the Agency to or for
the benefit of the Qualified Homeowner under the Program in order to construct,
install, perform and/or complete the Improvements in connection with the
Qualified Homeowner's Mobile Home.
"Hazardous Substances" mean and refer to any pollutant, contaminant, waste and
any toxic, carcinogenic, reactive, corrosive, ignitable, flammable or infectious
chemical, chemical compound or substance or otherwise hazardous wastes, toxic
or contaminated substances or similar materials, including, without limitation, any
quantity of asbestos, urea formaldehyde, PCBs, radon gas, lead, lead-based paint,
crude oil or any fraction thereof, all forms of natural gas, petroleum products, by-
products or derivatives, radioactive substances, methane, hydrogen sulfide or
materials, pesticides, waste waters, or sludges, any of the above of which are
subject to regulation, control or remediation under any Environmental Laws.
"HOME Funds Program" means and refers to that certain Home Investment
Partnership Program as set forth at 24 Code of Federal Regulations, part 92, et
seq., from which the Agency will make and will fund the Grant to and for the
benefit of the Qualified Homeowner. The Agency and the Contractor will offer
the Grant to a Qualified Homeowner who earns not more than eighty percent
(80%) of the current annual median income for the San Bernardino County area,
adjusted for family size (as those terms are defined by California Health and
Safety Code Section 50053.5) as further illustrated in Exhibit "A" of this
Agreement (the "2009 Income Limits") and subject to annual adjustments.
"Improvements" mean and refer, without limitation, to the following types of
eligible improvements to the Qualified Homeowner's Mobile Home that will be
permitted under the Program: (i) roof replacement (metal aluminum, composition
shingle, including carport and awnings), and (ii) replacement of siding and
skirting, patios and porches, stair units (carpet and handrails), carport columns,
water heaters, HV AC, evaporative cooling units, ceilings paneling (interior), sub-
flooring repair and finished floors, refrigeration units and counter tops, handicap
fixtures and units, appliances (limited to stovetops, wall ovens, exhaust hoods),
doors and windows.
"Laws" mean and refer to all federal, state, municipal and local laws, statutes,
codes, ordinances, regulations, rules, orders or judgments, now or hereafter in
effect, as amended from time to time, including, without limitation, the
Environmental Laws, all applicable building, plumbing, mechanical, electrical
and health and safety codes and City ordinances.
5
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"Lead Based Paint Acknowledgment" means and refers to the "Lead Based Paint
Acknowledgment of Receipt" as executed by the Qualified Homeowner and the
General Contractor. The Lead Based Paint Acknowledgment acknowledges
receipt by the Qualified Homeowner of the Lead Based Paint Pamphlet from the
General Contractor. The Lead Based Paint Acknowledgment is attached hereto
and incorporated herein by this reference as Exhibit" ".
"Lead Based Paint Disclosure" means and refers to the "Lead Based Paint
Disclosure" by and between the Qualified Homeowner and the General
Contractor. The Lead Based Paint Disclosure is to be executed by the General
Contractor and by the Qualified Homeowner and is attached hereto and
incorporated herein by this reference as Exhibit "_".
"Low Income Housing Funds" mean and refer to the Low Income Housing Funds
that the Agency intends to use to make the Grant to or for the benefit of the
Qualified Homeowner in accordance with this Agreement. The Agency and the
Contractor will offer the Grant to a Qualified Homeowner who earns not more
than eighty percent (80%) of the current annual median income for the San
Bernardino County area, adjusted for family size (as those terms are defined by
California Health and Safety Code Section 50053.5) as further illustrated in
Exhibit "A" of this Agreement and subject to annual adjustments.
"Mobile Home" means and refers to the mobile home unit (the "Mobile Home
Unit") owned by the Qualified Homeowner and the land on which the Mobile
Home is located, whether such land is owned, leased or used by the Qualified
Homeowner. The Mobile Home Unit must be built on or after 1980, the Mobile
Home must be located in the City and the Qualified Homeowner must reside in
the Mobile Home as its principal residence.
"Mobile Home Repairs Document" means and refers to the Mobile Home Repairs
Document, as fully completed and executed by the Qualified Homeowner in
connection with the Program. The Mobile Home Repairs Document is attached
hereto and incorporated herein by this reference as Exhibit "_".
"Program" means and refers to the program created, administered and maintained
by or for the Agency in connection with the Grant, the disbursement by the
Agency to the Contractor of the Grant Funds to or for the benefit of each
Qualified Homeowner in accordance with this Agreement and the performance
and completion by the Contractor of the Services. Upon written notice from the
Agency, the Contractor shall offer the Program to Qualified Homeowners in the
specific Target Area or Target Areas as may be designated, in writing, by the
Agency to the Contractor from time to time during the term of this Agreement. In
the absence of specific direction from the Executive Director of the Agency, the
Contractor shall offer the Program on an as-needed, first-come, first-served basis,
to Qualified Homeowners throughout the City for the term of this Agreement.
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However, in case of an emergency, of an urgent need or of a life-threatening
situation, the Contractor may process a Grant Application ahead of other Grant
Applications subject to the approval by the Executive Director.
"Qualified Homeowner" means and refers to: (i) a person or household which
owns the Mobile Home Unit and occupies the Mobile Home as its principal
residence within the City or within a Target Area of the City, as may be
specifically designed, in writing, from time to time by the Agency for at least
twelve (12) continuous months preceding the date of submission of its Grant
Application and its Mobile Home Repairs Document to the Contractor, (ii) has a
personal or household income level, adjusted for family size, during the twelve
(12) months preceding the date of submission of its Grant Application and its
Mobile Home Repairs Document to the Contractor within the ranges of income
for low income households, adjusted for family size, as set forth in Exhibit "A",
(iii) must complete, execute and submit the Grant Application to the Contractor,
(iv) must agree to live in its Mobile Home, as its principal residence, for not less
than one (I) year after the execution by the Qualified Homeowner of the Grant
Documents, (v) must execute and acknowledge, where appropriate, all Grant
Documents, (vi) must have received written notice from the Agency, from the
City or from any other governmental authority, including, without limitation, the
City's Building and Safety Division, advising the Qualified Homeowner that the
Mobile Home Unit owned by the Qualified Homeowner is in violation of Title 25
of the Mobile Home Park Act and/or is in violation of any other applicable
legislation, local codes or other Laws, and (vii) must not be the recipient of a loan
or other grant from the Agency for the past ten (10) years. On a case-by-case
basis, the Executive Director of the Agency, in its sole and absolute discretion,
may waive this one (1) year residency requirement.
"Services" mean and refer, without limitation, to the Program origination, the
preparation, execution and delivery of the Grant Documents, the Grant Fund
disbursement control, related accounting, Work monitor (course of construction
builder contract) services and other services to be provided by the Contractor to or
for the benefit of the Agency in accordance with this Agreement. The various
elements of the Services are more fully set forth in the "Scope of Services"
attached hereto as Exhibit "C." For each year of the Agreement, the Contractor
will attempt to approve, complete, process, conduct and finalize thirty-two (32)
Grants to Qualified Homeowners.
"Target Area" or "Target Areas" mean and refer to the specific area, areas,
neighborhood or neighborhoods in the City in which the Agency has instructed
the Contractor to offer the Program to Qualified Homeowners to better maximize
the effectiveness of the Grant Funds, or in any other specific area, areas,
neighborhood or neighborhoods hereinafter created by the Agency and/or
throughout the City, excluding County territory, as amended from time to time by
the Agency in its sole and absolute discretion. Should the Agency request the
Contractor to offer the Program to a specific Target Area or Target Areas, the
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CDC/2009-33
Agency shall consult with and provide in writing the Target Area or Target Areas
to the Contractor. The Contractor shall then offer the Program to Qualified
Homeowners in the specific Target Area or Target Areas until the Contractor is
otherwise advised in writing from the Agency, as such Target Area or Target
Areas may be adjusted and amended from time by the Agency in its sole and
absolute discretion. In the absence of specific direction from the Executive
Director of the Agency, the Contractor shall offer the Program on an as-needed,
first-come, first-served basis, to Qualified Homeowners throughout the City.
However, in the case of an emergency, of an urgent need or of a life-threatening
situation, the Contractor may process a Grant Application ahead of other Grant
Applications subject to the approval of the Executive Director.
"Work" means and refers, without limitation, to the Improvements, or any part
thereof, to be constructed, installed, performed and/or completed by a state-
licensed General Contractor on, at or in connection with each Mobile Home
pursuant to the terms, covenants and conditions of the General Contractor
Agreement. Only the Improvements and/or the items of Work set forth in the
General Contractor Agreement shall be authorized for payment by the Contractor,
up to the maximum amount authorized under the terms of the Program for such
Improvements, or any part thereof. Any costs of Improvements and/or of the
Work in excess of the maximum amount of the Program which are not the fault of
such General Contractor shall be paid for by the Qualified Homeowner unless
approved in writing by the Executive Director.
Section 2. PERFORMANCE BY CONTRACTOR AND BY AGENCY. The
Contractor and the Agency shall perform the terms, covenants and conditions of this Agreement.
Section 3. SCOPE OF SERVICES. The Contractor agrees to provide the Services
to the Agency as set forth herein, as described in the Scope of Services. Promptly following the
date of approval of this Agreement by the governing board of the Agency, the Contractor,
without limitation, shall or will continue to:
(A) cause the Grant Disbursement Account to be established, or maintained, and the
general form of an FDIC - insured deposit account agreement acceptable to the Agency to be
fully executed by the Contractor, by the depository institution and by the Agency within thirty
(30) calendar days following the date of approval of this Agreement;
(B) continue to use the general form of the Grant Application in connection with an
application by a Qualified Homeowner for the approval by the Agency to the Qualified
Homeowner of the Grant under the Program in accordance with this Agreement. The applicant
for the Grant must submit to the Contractor federal and state income tax returns filed by the
applicant with the appropriate taxing authorities for the past two (2) years which tax returns must
be acceptable to the Contractor in its sole and absolute discretion;
(C) subject to the completion of the tasks described in Section 3(A) and in Section
3(B) above, continue the process of receiving and reviewing Grant Applications and provide the
4812-7014-0931.4c
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CDC/2009-33
Services as provided for in the Agreement. The Contractor shall offer the Program to Qualified
Homeowners in the Target Area or in the Target Areas specifically determined and designated by
the Agency or, if no Target Area is or no Target Areas are specifically determined and
designated by the Agency, then on an as-needed, first-come, first-served basis, to Qualified
Homeowners throughout the City; provided, however, in the case of an emergency, of an urgent
need or of a life-threatening situation, the Contractor may process a Grant Application ahead of
other Grant Applications subject to the approval of the Executive Director;
(D) transmit a copy of a completed set of the Grant Documents to the Executive
Director of the Agency, together with: (i) a recommendation from the Contractor to the Agency
to approve the Grant Application and the Grant to the Qualified Homeowner, and (ii) a request
from the Contractor to the Agency for a transfer of the Grant Funds by the Agency for the
account of the Qualified Homeowner. The Executive Director shall either authorize the funding
of such Grant or reject the request for funding on behalf of the Agency within ten (10) business
days of receipt from the Contractor. Any rejection of a Grant Application shall be in writing and
shall state the reasons for such action. Each acceptance of a Grant Application by the Agency
shall be evidenced by the signature of the Executive Director of the Grant Documents, where
designated. All Grant Documents shall be completed by the Qualified Homeowner and by the
Contractor, and the disbursement of Grant Funds by the Agency to or for the benefit of the
Qualified Homeowner shall occur within sixty (60) calendar days following the date of
submission by the Contractor to the Executive Director of the funding request, or the Grant
Documents shall be of no further force or effect;
(E) no fees, charges or expenses shall be payable by any applicant to the Contractor
or to the Agency for a Grant, except from the Grant Funds, nor shall the Contractor charge a
Qualified Homeowner for any cost or service in connection with the origination or subsequent
administration of the Grant during the time the Improvements and/or the Work is constructed,
installed, performed and/or completed at the Home, or as authorized under the Program by the
Executive Director;
(F) instruct the Executive Director to transfer the Grant Funds for the account of each
Qualified Homeowner to the Grant Disbursement Account as set forth in Section 3(D), above,
upon confirmation by the Contractor that the Grant Documents for the Program arc executed,
acknowledged, where designated, and complete.
(G) deliver a fully executed and acknowledged, where designated, original set of the
Grant Documents for each Grant to the Agency upon request of funding and transfer of the Grant
Funds for the account of the Qualified Homeowner to the Grant Disbursement Account;
(H) verify that no Grant Funds are disbursed from the Grant Disbursement Account
for the account of a Qualified Homeowner except: (i) to pay a state-licensed General Contractor
and/or state-licensed subcontractor for the Improvements and/or for the Work constructed,
installed, performed and/or completed at the Mobile Home pursuant to the General Contractor
Agreement, less a ten percent (10%) retention pending completion of the Improvements and/or
of the Work and final executed written release of all mechanics and materials liens from the
General Contractor and/or from all subcontractors. No disbursement of the Grant Funds from
4812-7014-0931.4
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CDC/2009-33
the Grant Disbursement Account shall be authorized for any building materials or equipment
items which are not physically delivered at the Mobile Home before the date of payment of such
Grant Funds to the General Contractor and/or to the subcontractor or (ii) to pay a Grant title fee
or cost amount expressly authorized in writing by the Executive Director;
(I) prepare and maintain a Grant Funds disbursement ledger for all payments
authorized and made by the Contractor to the General Contractors and/or to the subcontractors
for the account and debit to each Qualified Homeowner under each Grant made by the Agency to
or for the benefit of the Qualified Homeowner in accordance with this Agreement. Such ledger
shall show each payment by date and reference the particular Grant, Grant Documents and name
of the Qualified Homeowner to which it corresponds. Such ledger shall also include a monthly
starting and ending balance for the Grant Disbursement Account, a final reconciliation of the
adjusted balance of each Grant upon the completion of the Improvements and/or of the Work,
and such other accounting information as the Executive Director may request. A copy of such
ledger shall be submitted to the Executive Director each month with the first such monthly
submittal due on the first day of the next month following the date of the initial deposit of the
Grant Funds by the Contractor and/or by the Agency into the Grant Disbursement Account;
(J) No Improvements and/or Work shall be authorized for payment by the Contractor
unless the Grant Documents are complete and the Contractor has received a fully executed copy
of the General Contractor Agreement by and between the General Contractor and the Qualified
Homeowner. Once the Improvements and/or the Work has commenced on a particular Mobile
Home, neither the Qualified Homeowner, the General Contractor nor the subcontractor shall
authorize an amendment or modification of such contract to include any item of Work, which is
not eligible for payment using the Grant Funds under the terms and conditions of the Grant under
the Program. Each such contract by and between the General Contractor and the Qualified
Homeowner, the General Contractor and the subcontractor, and/or the subcontractor and the
Qualified Homeowner shall include a section, which recites the words of the first two (2)
sentences of this Section 3(J).
Section 4. TIME OF PERFORMANCE OF SERVICES. The Services to be
performed hereunder by the Contractor shall be undertaken and completed in such sequence as to
assure expeditious completion and to best carry out the purposes of the Program and this
Agreement. All Services required hereunder shall begin upon the execution of this Agreement.
Section 5. TERM OF AGREEMENT. This Agreement shall take effect upon
approval by the governing board of the Agency and the complete execution by the parties. The
Agreement shall remain in effect through June 30, 2010, subject to annual approval and
appropriation by the United States Department of Housing and Urban Development ("HUD").
Section 6.
COMPENSATION PAYABLE BY AGENCY TO CONTRACTOR.
(A) The Agency shall annually compensate the Contractor for the performance of the
Services using the Low Income Housing Funds in accordance with the following schedule:
4812-7014-0931.4
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CDC/2009-33
$40,000.00
Annual Program Administration Fee for
CONTRACTOR
$160,000.00
Annual Mobile Home Grant Program
$200.000.00
(B) From and after the Effective Date of this Agreement and for the remaining term of
this Agreement, the Program Administration Fee payable by the Agency to the Contractor as
compensation for Services performed by the Contractor under this Agreement shall be paid by
the Agency directly to the Contractor, payable in twelve (12) equal monthly installments of
$3,333.33 each during the Term of this Agreement, in the aggregate annual amount of $40,000.
The Contractor shall invoice the Agency monthly in equal installments of$3,333.33.
(C) Payment of each monthly installment in the amount of $3,333.33 for the
performance by the Contractor to the Agency of the Services will be made by the Agency to the
Contractor as of the first day of each calendar month with the first such payment due on the first
day of the next calendar month following the date of the complete execution of the Agreement
by the parties.
Section 7. PERSONNEL OF CONTRACTOR. The Contractor represents that it
has, or will secure at its own expense, all personnel required to perform the Services. All of the
Services required hereunder will be performed by persons who are either employed by or under
the supervision and control of the Contractor, and all personnel engaged in the Services shall be
fully competent and qualified to perform such Services.
Section 8. INDEPENDENT CONTRACTOR. All acts of the Contractor and all
others acting on behalf of the Contractor relating to the performance of this Agreement, shall be
performed as independent contractors and not as agents, officers, or employees of the Agency.
The Contractor has no authority to bind or incur any obligation on behalf of the Agency. The
Contractor has no authority or responsibility to exercise any right or power vested in the Agency.
No agent, officer, or employee of the Agency shall be considered an agent or employee of the
Contractor. It is understood by both the Contractor and the Agency that this Agreement shall not
under any circumstance be construed or considered to create an employer-employee relationship
or a joint venture as between the Contractor and the Agency. The Contractor is and at all times
during the Term of this Agreement shall represent and conduct itself as an independent
contractor and not as an agent or employee of the Agency. The Contractor shall be responsible
to the Agency only for the requirements and results specified in this Agreement, and except as
expressly provided in this Agreement, shall not be subject to control by the Agency with respect
to the physical action or activities of the Contractor in fulfillment of this Agreement. The
Contractor has control over the manner and means of performing the Services under this
Agreement so long as consistent with the requirements of the Program. The Contractor is
permitted to provide services to others during the same period Services are provided to the
Agency under this Agreement. If necessary, the Contractor has the responsibility for employing
other persons or firms to assist the Contractor in fulfilling the terms and obligations under this
Agreement. If in the performance of this Agreement any third persons are retained as
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subcontractors by the Contractor, such persons shall be entirely and exclusively under the
direction, supervision, and control of the Contractor. All terms of employment including hours,
wages, working conditions, discipline, hiring, and discharging or any other term of employment
or requirements of law shall be determined by the Contractor. The Contractor hereby agrees to
indemnify, defend (if requested by Agency), protect and hold the Agency harmless from any and
all claims that may be made against the Agency or based upon any contention by any employee
of the Contractor or by any third party that an employer-employee relationship or joint venture
exists between any individual or entity and the Agency, by reason of the performance of any of
the Services under this Agreement.
Section 9. PAYMENT OF AND TRANSFER OF GRANT FUNDS TO GRANT
DISBURSEMENT ACCOUNT. The Agency shall promptly honor each request by the
Contractor for the Agency to transfer Grant Funds to the Contractor who will in turn deposit the
Grant Funds to the Grant Disbursement Account to fund each approved Grant as submitted by
the Contractor to the Agency under Section 3(D). Within sixty (60) calendar days following
receipt of each request for remittance of the Grant Funds, the Agency shall transfer by bank
check to the Contractor such Grant Funds to use as provided herein.
Section 10. COMMERCIAL GENERAL LIABILITY INSURANCE, AUTOMOBILE
INSURANCE, WORKERS' COMPENSATION INSURANCE. EMPLOYER'S
LIABILITY INSURANCE. ERRORS AND OMISSIONS AND PROFESSIONAL
LIABILITY INSURANCE.
(A) The Contractor shall obtain and keep in force during the term of this Agreement,
at its sole cost and expense, the following insurance policies: (i) a commercial general liability
policy of insurance with coverage at least as broad as "Insurance Services Office Commercial
General Liability Form (GOOOI)", in the amount of One Million Dollars ($1,000,000) combined
single limit per occurrence, naming the Agency and the City and the elected officials, officers,
employees, attorneys and agents of each of them as additional insureds (collectively. the
"Additional Insureds") with said insurance covering comprehensive general liability including,
but not limited to, contractual liability, assumed contractual liability under this Agreement, acts
of subcontractors, premises-operations, explosion, collapse and underground hazards, if
applicable, broad form property damage, and personal injury including libel, slander and false
arrest, (ii) comprehensive automobile liability insurance covering owned, non-owned and hired
vehicles by or for the Contractor, combined single limit in the amount of One Million Dollars
($1.000,000) per occurrence. naming the Additional Insureds as additional insureds on each
automobile insurance policy, (iii) workers' compensation insurance in such insurance coverage
amounts as statutorily required, or similar insurance in form and amounts required by law, and
employer's liability insurance, combined single limit in the amount of One Million Dollars
($1,000.000), and (iv) errors and omissions and professional liability, combined single limit in
the amount of One Million Dollars ($1,000.000) per occurrence.
(B) Any and all insurance policies required hereunder shall be obtained from
insurance companies admitted in the State of California and rated at least A: Xll in the most
current Best's Key Rating Insurance Guide. In no event shall the Contractor be permitted or
entitled to assign to any third party rights of action which the Contractor may have against the
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Agency. All said insurance policies shall provide that they may not be canceled unless the
Agency and the City receive written notice of cancellation at least thirty (30) calendar days prior
to the effective date of cancellation. Any and all insurance obtained by the Contractor shall be
primary to and shall not be contributing with any insurance carried by the Agency or by the City
whose insurance shall be considered excess insurance only. Any insurance which the Agency
and/or City may otherwise carry, including self insurance, for all purposes of this Agreement
shall be separate and apart from the requirements of this Agreement. Legal counsel for the
Agency must approve each insurance policy required in Section lO(A) of this Agreement. The
Contractor waives subrogation and agrees that the Contractor, the Agency and the City are co-
insured. The insurer shall have no right of subrogation against the Agency, against the City or
against any of the other Additional Insureds. The Additional Insureds shall be named as
additional insureds on each insurance policy.
(C) All insurance which the Contractor shall carry or maintain pursuant to this Section
10 shall be in such form, for such amounts, for such periods of time as the Agency may require
or approve.
(0) The Contractor shall deliver or cause to be delivered to the Agency concurrently
upon the execution of this Agreement an endorsement of the insurance policies required in this
Section 10(A) of this Agreement evidencing the existence of the insurance coverage required by
the Agency under Section lO(A) of this Agreement and shall also deliver, no later than thirty
(30) calendar days prior to the expiration of any insurance policy, a certificate of insurance
evidencing each renewal policy covering the same risks.
Section 11. INDEMNIFICATION.
(A) The Contractor agrees to indemnifY, defend with legal counsel reasonably
acceptable to the Agency, protect and hold the City and the Agency, and their respective elected
officials, directors, officers, members, managers, consultants, contractors, employees, agents and
attorneys, and the successors and assigns of each of them (singularly and collectively, the
"Indemnified Parties" which defined term shall also include the City and the Agency), harmless
from and against all actions, causes of action, claims, demands, liabilities, damages, losses,
liabilities, obligations, judgments, suits, costs, expenses and fees (including, without limitation,
reasonable attorneys' fees, court costs and expert fees of any nature whatsoever), now or
hereafter arising from or related to: (i) any act or omission of the Contractor and/or of any of the
Contractor's directors, officers, members, managers, consultants, contractors, subcontractors,
materialmen, laborers, any other person or entity furnishing or supplying work, services, goods,
or supplies in connection with the performance of this Agreement, employees and agents, and the
successors and/or assigns of each of them (singularly and collectively, the "Indemnifying
Parties" which defined term shall also include the Contractor), in performing, or failing to
perform, its obligations hereunder, (ii) any default by the Contractor under this Agreement,
subject to any applicable cure period, (iii) any violation by any of the Indemnifying Parties of
any Laws, (iv) any warranty or representation made by the Contractor to the Agency in this
Agreement that is or becomes false and untrue, (v) death, bodily injury and/or personal injury to
any person, (vi) any destruction, loss or damage to real property or personal property, (vii) the
presence of any Hazardous Substances at, on, in, above, under or about any Mobile Home
4812-70]4-0931.4
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resulting, directly or indirectly, from the acts or omissions of any Indemnifying Parties and/or
(viii) the aggravation of any environmental condition by any Indemnifying Parties at, on, in,
above, under or about any Mobile Home. Without limiting the Contractor's indemnification of
the Indemnified Parties, the Contractor shall provide and maintain, at its sole cost and expense
during the term of this Agreement, the insurance described in Section lO(A) of this Agreement.
Such insurance shall be provided by insurer(s) satisfactory to the Agency and evidence of such
insurance satisfactory to the Agency shall be delivered to the Executive Director no later than the
Effective Date of this Agreement.
(B) The Agency shall indemnify, defend (if requested by the Contractor) and hold
harmless the Contractor, its agents, officers, and employees, from all claims, losses, demands
and liability for damages for bodily injury, personal injury, bodily injury or property damage
suffered by reason of any act or omission of the Agency or any of its officers or employees or
agents under this Agreement except where such action or omission giving rise to such a claim is
caused by or is the result of an action, omission or request of the Contractor and/or of any of the
other Indemnifying Parties, or is alleged to arise out of the execution of this Agreement. The
provisions of Section II(A) and Section II(B) shall survive the execution, delivery,
performance, expiration or early termination of this Agreement.
Section 12. DEFAULTS AND BREACH - GENERAL. The failure or delay by
either party to perform any material term or provision of this Agreement shall constitute a default
hereunder; provided, however, that if the party who is otherwise claimed to be in default by the
other party commences to cure, correct or remedy the alleged default within thirty (30) calendar
days after receipt of written notice specifying such default and shall diligently complete such
cure, correction or remedy, such party shall not be deemed to be in default hereunder. A default
shall also occur under this Agreement whenever a representation and/or warranty made in this
Agreement is or becomes false or untrue. A default shall also occur under this Agreement
whenever a party files, or has filed against it, a petition in bankruptcy, is or becomes insolvent, is
unable to pay its debts as they mature, assigns its assets for the benefit of creditors, or a receiver,
trustee or custodian is appointed by a court to exercise control over all or substantially all of the
assets of the party and such receiver, trustee or custodian is not dismissed or discharged by the
court within sixty (60) calendar days after said appointment date. The party which may claim
that a default has occurred shall give written notice of default to the party in default specifying
the alleged default. Delay in giving such notice shall not constitute a waiver of any default nor
shall it change the time of default; provided, however, the injured party shall have no right to
exercise any remedy for a default hereunder without delivering the written default notice as
specified herein. Any failure to delay by a party in asserting any of its rights and remedies as to
any default shall not operate as a waiver of any default or of any rights or remedies associated
with a default, and the rights and remedies of the parties are cumulative and the exercise by
either party of one or more of such rights or remedies shall not preclude the exercise by it, at the
same or different times, of any other rights or remedies for the same default or any other default
by the other party. In the event that a default of either party may remain uncured for more than
thirty (30) calendar days following written notice, as provided above, a "breach" shall be deemed
to have occurred. In the event of a breach, the party who is not in default shall be entitled to
terminate this Agreement and seek any appropriate remedy or damages by initiating legal
proceedings. If any action or proceeding is brought to enforce the terms hereof or declare rights
48]2-70]4-09)].4
14
CDC12009-33
hereunder, it shall be brought in the Superior Court of the County of San Bernardino, San
Bernardino District, State of California. The governing Laws to be applied in any such action or
proceeding shall be the Laws of the State of California. The prevailing party in any such legal
proceedings shall be entitled to recover as an element of its costs of bringing such suit, and not as
part of its damages, its reasonable attorneys' fees, court costs, expert witness fees and consultant
fees and costs. The costs, salary and expenses of the City Attorney and members of his office in
such action or proceeding on behalf of the Agency shall be considered as "attorneys' fees" for
purposes of this Section.
Section 13. NONDlSCRIMINA TION. During the Contractor's performance of the
Services, the Contractor shall not discriminate on the grounds of race, religion, creed, color,
national origin, age, ancestry, physical handicap, medical condition, marital status, sex, or sexual
orientation in the performance by the Contractor of the Services, including, without limitation, in
the selection and retention of employees, general contractors and subcontractors and the
procurement of materials and equipment, except as provided in Section 12940 of the California
Government Code.
Section 14. CONFLICT OF INTEREST. The Contractor warrants, by execution of
this Agreement, that it has no interest, present or contemplated, in the Program or in any Mobile
Home benefited thereby or Work performed on any Mobile Home using the Grant and the Grant
Funds. The Contractor further warrants that it owns or possesses no interest in real property,
business interests or owner of income, other than such amounts of compensation payable by the
Agency to the Contractor for the Services under this Agreement, that will be affected by the
Program or, alternatively, if such interest exists or arises the Contractor will promptly file with
the Agency an affidavit disclosing any such interest.
Section 15. AMENDMENTS. All amendments to this Agreement shall be subject to
the approval of both parties in the sole discretion of each of them, mutual and in writing. The
Executive Director of the Agency is authorized to make non-substantive changes, clarifications,
corrections to the Agreement, including budget line item adjustments, provided such actions are
approved by legal counsel for the Agency and do not increase the Agency's monetary annual
appropriation to the Contractor as approved by the governing board of the Agency.
Section 16. TERMINATION.
(A) This Agreement may be terminated for any reason by either party who is not then
in default upon ten (10) calendar days prior written notice to the other party. In such event, the
Contractor shall be entitled to receive compensation for the Services pro-rated through the date
of such termination, provided that the Services have been rendered.
(B) In the event of a termination of the Agreement as a result of a breach, the rights
and duties of the parties shall be as set forth in Section 12.
(C) In the event of any termination of this Agreement, the Contractor shall promptly
return all Grant Funds that have been disbursed by the Agency to the Contractor with the
exception of any Grant Funds that have been paid by the Agency to the Contractor and that have
4812-70l4-0931.4
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CDC/2009-33
been properly disbursed by the Contractor to or for the benefit of the Qualified Homeowner
under this Agreement, without charge or expense to the Agency.
Section 17. ASSIGNMENT. It is mutually understood and agreed that this
Agreement shall be binding upon the Agency and its successors and assigns and upon the
Contractor and its successors and assigns. The Agency may assign this Agreement, without
obtaining the prior consent or approval of the Contractor. The Contractor may not assign this
Agreement without obtaining the prior written consent of the Agency, which written consent
may be given or withheld by the Agency in its sole and absolute discretion. Any assignment or
attempt to assign this Agreement by the Contractor shall be void.
Section IS. NOTICES. Communications, notices, bills, invoices or reports required
by this Agreement shall be in writing and shall be deemed to have been given when actually
delivered, if given by hand delivery or transmitted by overnight courier service, or if mailed,
three (3) business days after being deposited in the United States mail, postage prepaid, to the
address noted below:
Agency
Economic Development Agency
of the City of San Bemardino
Attention: Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 92401
Phone: (909) 663-1044
Fax: (909) 888-9413
Contractor
Neighborhood Housing Services of
the Inland Empire, Inc.
Attention: Executive Director
1390 North "D" Street
San Bernardino, California 92405
Phone: (909) 884-6891
Fax: (909) 889-4085
Either party may change its address for receipt of written notice by notifying the other
party in writing of a new address for delivering notice to such party.
Section 19. REPRESENTATION AND WARRANTY OF CONTRACTOR. The
Contractor hereby represents and warrants to the Agency as follows:
(A) The Contractor is a California nonprofit corporation duly organized, existing, and
authorized to transact business in California;
(B) the corporate charter and by-laws of the Contractor authorize the Contractor to
provide the Services to the Agency and the governing board and membership of the Contractor
have previously taken all action necessary to authorize the execution of this Agreement by the
Contractor;
(C) the Contractor is qualified to perform the Services and shall timely perform and
complete the Services in a professional manner.
Section 20. CONDITIONS PRECEDENT. The validity and enforcement of this
Agreement is subject to the execution and delivery by the Agency and by the Contractor of the
following Agreements: (i) the Rehabilitation Loan Program Agreement, (ii) the Beautification
48]2-7014-0931.4
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CDC/2009-33
Grant Program Agreement, and (iii) the First Amendment to the Homebuyer Education Program
Agreement.
Section 21. OTHER PROGRAM REOUlREMENTS.
(A) The Contractor must carry out all activities in compliance with all federal laws
and regulations described in Subpart H of 24 CFR 92 and outlined hereinafter, except that the
Contractor does not assume the Agency's or the City's responsibility for environmental review
in Section 92.352 or the intergovernmental review process in Section 92.357. These federal laws
and regulations must be complied with as follows:
1. Equal Opportunitv. No person shall be excluded from participation in, be
denied the benefits of, or be subjected to discrimination under any program or activity funded in
whole or in part with HOME funds. In addition, HOME funds must be made available in
accordance with all laws and regulations listed in Section 92.350(a).
2. Fair Housing. In accordance with the certification made with its housing
strategy, each participating jurisdiction must affirmatively further fair housing. Actions
described in Section 570.904(c) of Title II of the Cranston-Gonzales National Affordable
Housing Act will satisfy this requirement.
3. Affirmative Marketing. The Contractor must adopt affirmative marketing
procedures and requirements for HOME-assisted housing projects of five (5) units or more, if
applicable. These must include:
1. Methods for informing the public;
11. Requirements and practices that the Contractor must adhere to in
order to carry out the affirmative marketing procedures and
requirements of the Agency and of the City;
111. Procedures used by the Contractor to inform and solicit
applications from persons in the housing market area who are not
likely to apply without special outreach;
IV. A description of how the Contractor will assess the success of
affirmative marketing actions and what corrective actions will be
taken where affirmative marketing requirements are not met.
4. Displacement. Relocation. and Acquisition. Consistent with the other
goals and objectives of this Subpart H of 24 CFR 92, the Contractor must ensure that it has taken
all reasonable steps to minimize the displacement of persons (families and individuals) as a result
of any project assisted with HOME funds. Moreover, the Contractor agrees that it will not
undertake any project activity that will cause displacement of any homeowner in accordance
with Section 92.353, without the approval of the City.
4812-7014-0931.4
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5. Conflict of Interest. The Contractor will hereby comply with all
requirements set forth regarding conflict of interest provisions as they apply in Section 92.356.
6. Debarment and Suspension. As required in Section 92.357, the Contractor
will comply with all debarment and suspension certifications.
7. Flood Insurance. Under the Flood Disaster Protection Act of 1973,
HOME funds may not be used with respect to the acquisition or rehabilitation of a project
located in an area identified by the Federal Emergency Management Agency (FEMA) as having
special flood hazards, unless:
1. The community in which the area is situated is participating in the
National Flood Insurance Program, or less than a year has passed
since FEMA notification regarding such hazards; and
11. Flood insurance is obtained as a condition of approval of the
commitment. If the Mobile Home Unit is located in an area
identified by FEMA as having special flood hazards, upon
notification by the Agency or FEMA, the Contractor is responsible
for assuring that flood insurance under the National Flood
Insurance Program is obtained and maintained on each Mobile
Home Unit assisted with Grant Funds.
Section 22. GRANT FUNDS AND GRANT DOCUMENTS ARE THE
PROPERTY OF THE AGENCY. The Grant Documents for each Grant are the property and
asset of the Agency. The Contractor has no property interest in any such Grant Documents and
the Contractor shall not transfer, assign or pledge as collateral or claim any other security interest
in any such Grant Documents. All of the Grant Documents are the property of the Agency, and
the Contractor shall maintain all such Grant Documents in its possession as confidential
consumer business records of the Qualified Homeowner. All Grant Funds disbursed by the
Agency to the Contractor for the benefit of a Qualified Homeowner are the property of the
Agency until paid by the Contractor to the General Contractor upon the completion of the Work
at the Mobile Home for the account of the Qualified Homeowner under the applicable Grant
Documents.
Section 23. NON-ELIGIBILITY OF OUALlFIED HOMEOWNER. Once the
Agency has approved the Grant Application and the Mobile Home Repairs Document for the
Qualified Homeowner and has disbursed the Grant Funds to the Contractor for the benefit of the
Qualified Homeowner under this Agreement, the Qualified Homeowner now or hereafter shall
have no right to apply for and to receive any other grant or loan being offered by the Agency to
the general public under any grant or loan program, including, without limitation, any grant
being offered by the Agency under the Single-Family Beautification Grant Program Agreement
or any loan being offered by the Agency under the Single-Family Rehabilitation Loan Program
Agreement, until ten (10) years after the date that the Agency has paid the last installment of the
Grant Funds to the Contractor for the benefit of the Qualified Homebuyer under this Agreement.
4812-70]4-0931.4
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CDC/2009-33
Section 24. GENERAL PROVISIONS. This Agreement constitutes the sole
agreement between the parties. All prior conversations, agreements or representations relating
hereto are integrated in this Agreement. No oral agreement, representation or warranty shall be
binding upon the parties. If any provision of this Agreement shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining portions of this
Agreement shall not in any way be affected or impaired thereby. Failure of any party to enforce
any provision of this Agreement shall not constitute a waiver of the right to compel enforcement
of the same provision or any remaining provisions of this Agreement. Headings at the beginning
of each section or subsection are solely for the convenience of the parties and are not a part of
this Agreement. Whenever required by the context of this Agreement, the singular shall include
the plural and the masculine shall include the feminine and vice versa. This Agreement shall not
be construed as if it had been prepared by one of the parties, but rather as if all parties had
prepared the same. Unless otherwise indicated, all references to sections are to this Agreement.
All exhibits referred to in this Agreement are attached hereto and incorporated herein by this
reference. If the date on which any action is required to be performed under the terms of this
Agreement is not a business day, the action shall be taken on the next succeeding business day.
This Agreement may be executed in one or more counterparts each of which shall be an original
but all of which together shall constitute but one original Agreement. This Agreement may be
executed by facsimile signatures, and each facsimile counterpart when taken together shall be
deemed an original Agreement. Time is of the essence in this Agreement.
CDC/2009-33
IN WITNESS WHEREOF, the Contractor and the Agency have caused this Agreement
to be duly executed on the date first above written.
AGENCY
Redevelopment Agency ofthe
City of San Bernardino,
a public body, corporate and politic
J - f ~ - Or;
By: -cp: Oil(
Emil A. Marzullo, Interim Executive Director
Dated:
Approved as to Form and Content
\ ~ ~1J-
Agency Co ns I
CONTRACTOR
Neighborhood Housing Services
of the Inland Empire, Inc.,
a California nonprofit corporation
Date: ~.o< 9 -Qe;
C!-()('C-
Date:
By:
Name:
Title:
4812-7014-0931.4
20
CDC/2009-33
EXHIBIT "A"
2009 Income Limits
4812-7014..{)931.4
21
CDC/2009-33
EXHIBIT "B"
4812-7014-0931.4
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CDC/2009-33
EXHIBIT "Coo
SCOPE OF SERVICES
(Description of Program)
A. Contractor's Administration Annual Fee
The Agency shall annually compensate the Contractor the total sum of Forty Thousand Dollars
($40,000.00) for the administration and the implementation by the Contractor of the Program
herein and for the Services rendered under this Agreement, subject to the annual approval and
appropriation by the United States Department of Housing and Urban Development ("HUD'').
The Contractor shall invoice the Agency monthly in equal installments of Three Thousand Three
Hundred Thirty-Three Dollars and 33/100 ($3,333.33), in the aggregate annual amount of Forty
Thousand Dollars ($40,000.00).
B. Mobile Home Grant Pro!!ram (the "Pro!!ram") ($200.000)
The Contractor shall accept the Grant Applications and the Mobile Home Repairs Document
from respective Qualified Homeowner applicants to determine income and improvement
eligibility (see Exhibit "A" to this Agreement), to determine equity in the Mobile Home and to
verify ownership and length of ownership. The Contractor shall offer the Program to Qualified
Homeowners in the Target Area or in the Target Areas specifically determined and designated by
the Agency or, if no Target Area is or no Target Areas are specifically determined and
designated by the Agency, then on an as-needed, first-come, first-served basis, to Qualified
Homeowners throughout the City of San Bernardino. However, in the case of an emergency, of
an urgent need or of a life-threatening situation, the Contractor may process a Grant Application
ahead of other Grant Applications subject to the approval by the Executive Director. The
Improvements allowed under the Program are described in Section "C" below of this Scope of
Services.
C. Eli!!ible Imorovements Permitted under the Pro!!ram
The following types of Improvements, without limitation, are permitted in connection with the
Program: (i) roof replacement (metal aluminum, composition shingle, including carport and
awnings), and (ii) replacement of siding and skirting, patios and porches, stair units (carpet and
handrails), carport columns, water heaters, HV AC, evaporative cooling units, ceilings paneling
(interior), sub-flooring repair and finished floors, refrigeration units and counter tops, handicap
fixtures and units, appliances (limited to stovetops, wall ovens, exhaust hoods), doors and
windows.
The maximum amount of the Grant permitted under the Program is the sum of Five Thousand
Dollars ($5,000) per Mobile Home without the prior written approval of the Executive Director.
4812-7014-0931.4
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CDC/2009-33
D. Applicant Elil!ibilitv Requirements for the Prol!ram
1. Qualified Homeowner must be an owner and occupant of the Mobile Home Unit, as its
principal residence, for a minimum period of one (I) year; on a case-by-case basis, and
depending on the circumstances, this one (1) year requirement may be waived by the Executive
Director or hislher designee; the Contractor shall obtain evidence of ownership and length of
ownership and residency. The Mobile Home Unit must be built on or after 1980.
2. Qualified Homeowner must execute and complete a Grant Application and a Mobile
Home Repairs Document and must deliver and submit the Grant Application and the Mobile
Home Repairs Document, as fully executed and completed, to the Contractor. The Contractor
shall receive, review, verify and approve or reject the Grant Application and the Mobile Home
Repairs Document. If the Grant Application and/or the Mobile Home Repairs Document is not
acceptable to the Contractor, the Contractor shall notify the applicant in writing within ten (10)
business days from the receipt by the Contractor of the Grant Application and/or of the Mobile
Home Repairs Document and the Contractor shall provide the applicant with the reasons for the
rejection by the Contractor.
3. Qualified Homeowner must have a personal or household income level, adjusted for
family size, during the twelve (12) months preceding the date of submission of the Grant
Application and the Mobile Home Repairs Document to the Contractor within the ranges of
income for low income households, adjusted for family size, as set forth in Exhibit "A" to this
Agreement, subject to annual adjustment.
4. Qualified Homeowner must agree to live in the Qualified Homeowner's Mobile Home, as
its principal residence, for not less than one (I) year after the execution by the Qualified
Homeowner of the Grant Documents.
5. Qualified Homeowner must execute and acknowledge, where designated, the Grant
Documents. The Qualified Homeowner, without limitation, shall execute and notarize all
recordable Grant Documents, if any, and the Contractor or the Agency shall record, or shall
cause the recordation of all such recordable Grant Documents, if any, in the County Recorder's
Office.
6. Qualified Homeowner must have received written notice from the Agency, from the City
or from any other governmental authority (including, without limitation, the City's Building and
Safety Division) advising the Qualified Homeowner that the Mobile Home Unit owned by the
Qualified Homeowner is in violation of Title 25 of the Mobile Home Park Act andlor is in
violation of any other applicable legislation, local codes or other Laws.
7. The Qualified Homeowner must not be the recipient of a grant or of a loan from the
Agency for the past ten (10) years.
48]2-7014-093 [.4
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CDC/2009-33
E. Guidelines:
The Contractor shall conduct, administer, implement, comply with and perform the following
guidelines in connection with the Program:
1. The Contractor shall administer and implement the Program herein and shall utilize the
applicable and pertinent sections of the Economic Development Agency's (the "ED A") Grant
Policies and Procedures Manual for guidance on processing and packaging all Grants under this
Agreement, if applicable, under the direction of the Executive Director.
2. The Contractor shall accept the Grant Applications from respective Qualified
Homeowner applicants to determine income and improvement eligibility, to determine equity in
the Mobile Home, and to verify ownership and length of ownership. The Contractor shall offer
the Program to Qualified Homeowners in the Target Area or Target Areas specifically
determined and designated by the Agency or. if no Target Area is or no Target Areas are
specifically determined and designated by the Agency, then on an as-needed, first-come, first-
served basis, to Qualified Homeowners throughout the City of San Bernardino. However, in the
case of an emergency, of an urgent need or of a life-threatening situation, the Contractor may
process a Grant Application on an urgent basis ahead of other Grant Applications subject to the
approval of the Executive Director.
3. A mobile home certified inspector for the City of San Bernardino, State of California
shall inspect eligible Mobile Homes and properties to determine the type of health and safety and
code violation repair work needed, including asbestos and lead-based paint removal, the age and
overall condition of the Mobile Home and to ensure that all Mobile Homes repaired or improved
under the Program when completed are aesthetically pleasing and in compliance with all Laws,
including, without limitation, Title 25 of the California Development Code, Chapter 2, Articles
1-11.
4. The Contractor shall prepare and complete Work write-ups, cost estimates, and bid
packages for the Improvements to be constructed, installed, performed and completed for each
Qualified Homeowner's Mobile Home.
5. The Contractor shall ensure that all Improvements and/or Work constructed, installed,
performed and/or completed in connection with the Qualified Homeowner's Mobile Home shall
be constructed, installed, performed and completed by pre-qualified State licensed General
Contractors and/or State licensed subcontractors. The Contractor shall also require that each
General Contractor and/or subcontractor constructing, installing, performing and/or completing
the Improvements and/or the Work in connection with the Qualified Homeowner's Mobile Home
under the Program shall possess a current business license in the City and shall possess a current
license with the State of California Contractor's License Board. The Contractor shall be
required, whenever feasible, to obtain a minimum of three (3) bids from General Contractors for
all Improvements and/or for all Work to be constructed, installed, performed and/or completed in
connection with the Qualified Homeowner's Mobile Home. All bids shall be made available by
the Contractor to the Qualified Homeowner for review. All Improvements and/or Work
constructed, installed, performed and/or completed by General Contractors and/or by
4812-7014-0931.4
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CDC/2009-33
subcontractors in connection with the Qualified Homeowner's Mobile Home shall be approved
and authorized by the Qualified Homeowner, and shall be completed within a specified
timeframe acceptable to the Qualified Homeowner and the General Contractors and/or the
subcontractors.
6. The Contractor shall solicit bids for the construction, installation, performance and/or the
completion of the Improvements and/or of the Work in connection with the Qualified
Homeowner's Mobile Home from a list of pre-approved General Contractors. The Contractor
shall assist the Qualified Homeowners with the selection of a General Contractor, and shall assist
the Qualified Homeowner in connection with the execution of the General Contractor
Agreement, including, without limitation, a determination as to the scope of the Improvements
and/or of the scope of Work to be constructed, installed, performed and/or completed by the
General Contractor, any schedule of performance, other schedules, conduct pre-construction and
walk-through conferences.
7. Prior to the execution of the General Contractor Agreement and prior to any funding by
the Contractor of any Grant Funds to the General Contractor for the proposed Improvements
and/or Work to be constructed, installed, performed and/or completed, the Contractor, the
Qualified Homeowner, the General Contractor and the members of the Agency application
review committee (the "Application Review Committee") appointed and assigned by the Agency
to approve, administer and oversee the construction, the installation, the performance and/or the
completion of the Improvements and/or of the Work shall meet on one or more occasions to
discuss the Improvements and/or the Work to be constructed, installed, performed and/or
completed in connection with the Qualified Homeowner's Mobile Home and the methodology
used or to be used to identify, quantify and assist the Qualified Homeowner.
8. The Agency and the Qualified Homeowner must review, approve, execute and
acknowledge, where designated, the Grant Documents. The General Contractor and/or any
subcontractor cannot commence the construction, the installation, the performance and/or the
completion of the Improvements and/or of the Work in connection with a Qualified
Homeowner's Mobile Home until: (i) the Grant Documents have been executed and
acknowledged, where appropriate, by the Agency and by the Qualified Homeowner, and (ii) all
other recordable Grant Documents in connection with the Grant, if any, have been recorded by or
for the Contractor or the Agency in the County Recorder's Office.
9. The General Contractor shall obtain one or more permits as required by applicable Laws
to construct, to install, to perform and/or to complete the Improvements and/or the Work at the
Qualified Homeowner's Mobile Home. At the time that the Contractor submits an invoice to the
Agency for payment of all or a portion of the Grant Funds in connection with the Grant made by
the Agency to the Qualified Homeowner, the Contractor shall provide the Agency with a copy of
each permit that is or will be required to construct, to install, to perform and/or to complete the
Improvements and/or the Work in connection with the Qualified Homeowner's Mobile Home.
The Agency shall have no obligation to pay any invoice submitted by the Contractor to the
Qualified Homeowner until the Agency has received and approved each permit issued for the
Improvements and/or for the Work completed by the General Contactor and/or by the
subcontractor and identified in the invoice.
4812-7014-0931.4
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CDC/2009-33
10. The Contractor shall inspect and monitor the Improvements and/or the Work while in
progress and shall supervise the payment invoice procedures to ensure that all General
Contractors and subcontractors are meeting obligations and that progress payments and
retentions are paid in a timely manner. The Contractor shall approve all change orders relating
to and in connection with the construction and the completion of the Improvements at the Mobile
Home. All change orders must relate to the construction and to the completion of the
Improvements permitted under the Grant approved and made by the Agency in favor of the
Qualified Homeowner. Should the costs and fees in connection with the change order, in the
aggregate, exceed ten percent (10%) of the amount of the Grant Funds awarded by the Agency to
the Qualified Homeowner, the Agency will also need to approve, in writing, the change order.
II. The Contractor shall receive and collect from the General Contractors and/or from the
subcontractors an executed lien release under one of the following lien releases, as required by
the Agency: (i) an unconditional waiver and release upon progress payment, or (ii) an
unconditional waiver and release upon final payment. The Contractor shall not make the final
payment of the remaining Grant Funds to any General Contractor until the General Contractor
and/or all subcontractors have executed and the Contractor has received the conditional waiver
and release upon final payment or the unconditional waiver and release upon final payment.
12. The Contractor shall coordinate final inspection and payment of the General Contractor
Agreement retention with the Qualified Homeowner, with the General Contractor and with the
Agency. The contract retention shall not be paid by the Contractor to the General Contractors
and/or to the subcontractors until all time periods for filing liens have expired and no liens have
been filed under applicable Laws.
13. Prior to the payment by the Contractor of the Grant Funds, or any portion thereof, to the
General Contractor, for the construction, for the installation, for the performance and/or for the
completion of the Improvements and/or of the Work in connection with a Qualified
Homeowner's Mobile Home, the Contractor shall notify the Agency that the Contractor has
received an invoice for payment. Within ten (10) business days from receipt by the Contractor
of the invoice, the Contractor and the Agency shall inspect and approve the Improvements and/or
the Work identified in the invoice and constructed, installed, performed and/or completed by the
General Contractor and/or by any subcontractor. The Contractor shall not pay any such invoice
for the construction, installation, performance and/or completion of the Improvements and/or of
the Work until the Contractor and the Agency have inspected and approved, in writing, the
Improvements and/or the Work constructed, installed, performed and/or completed by the
General Contractor and/or by any subcontractors. The Agency reserves the right to approve
payment of an invoice in circumstances when no physical inspection is needed as determined by
the Agency in its sole and absolute discretion (i.e., fumigation for termites).
14. The Contractor shall maintain accurate records for inspection by the Agency concerning
income and program occupancy of all persons obtaining assistance from the Contractor pursuant
to this Agreement including, but not limited to, the Grant Application and the other Grant
Documents, proof of ownership, income verification, comparables or appraisals and/or Work
write-ups. The original Grant Documents shall be executed and acknowledged, where
410: 12-7014-093 1.4
27
CDC/2009-33
appropriate, by the Agency and by the Qualified Homeowner, shall be for the benefit of the
Agency and shall be delivered by the Contractor to the Agency in connection with each Grant
made by the Agency to the Qualified Homeowner.
J 5. The Contractor shall also provide quarterly reports to the Agency, or as otherwise
required by the Agency, upon the request of the Executive Director to the Contractor.
16. From time to time, the Agency and the Contractor shall coordinate inspection of the
Improvements and/or of the Work at the Qualified Homeowner's Home to ensure that the
Improvements and/or the Work are performed, installed, constructed and completed in a good
workmanlike manner and in accordance with all applicable Laws.
17. The Contractor shall provide any and all services required by the Executive Director or
his/her designee, in order to effectively implement and complete the Services under this
Agreement.
4812-70]4-093] .4
28
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CDC/2009-33
REDEVELOPMENT AGENCY OF THE CITY OF
SAN BERNARDINO
SINGLE FAMILY BEAUTIFICATION GRANT PROGRAM AGREEMENT
(Low-Moderate Housing Fund)
THIS SINGLE F AMIL Y BEAUTIFICATION GRANT PROGRAM AGREEMENT (the
"Agreement") is made and entered into this 6th day of July 2009 (the "Effective Date"), by and
between the NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE, INC., a
California non-profit corporation (the "Contractor") and the REDEVELOPMENT AGENCY OF
THE CITY OF SAN BERNARDINO (the "Agency"), a public body, corporate and politic. The
Agency and the Contractor agree as follows:
RECITALS
WHEREAS, the Agency and the Contractor have previously entered into the Single
Family Beautification Loan/Grant And Mobile Home Grant Programs (Low-Moderate Housing
Fund and HOME Fund), dated as of February 7, 2005, as modified by that certain Amendment
No. I To The Single-Family Beautification Loan/Grant And Mobile Home Grant Program, dated
as of June 4, 2007, by and between the Agency and the Contractor (collectively, the "Loan and
Grant Agreement"); and
WHEREAS, the Loan and Grant Agreement provides for the following: (i) loan funds
(the "Rehabilitation Loan Program") and grant funds (the "Beautification Grant Program") to
low-moderate income homeowners who reside in the City of San Bernardino (the "City"), in the
County of San Bernardino (the "County"), in the State of California (the "State") to permit such
homeowners to undertake certain housing rehabilitation and correction work, including, without
limitation, asbestos and lead containing materials abatement work, handicap accessibility
improvements and utility energy improvements as described in the Loan and Grant Agreement,
to one family dwellings owned and occupied by such low-moderate homeowners, and (ii) grant
funds (the "Mobile Home Grant Program") to low-income owners of mobile homes who reside
in the City, in the County and in the State to permit, without limitation, such low-income mobile
home owners to make repairs and improvements to their mobile homes in accordance with the
Loan and Grant Agreement); and
WHEREAS, the Agency and the Contractor have previously entered into the Home
Agreement, dated June 4, 2007 (the "Homebuyer Education Program Agreement"), wherein the
Contractor, without limitation, administers, implements and conducts a Homebuyer Education
Program (as defined therein); and
WHEREAS, the Rehabilitation Loan Program, the Beautification Grant Program, the
Mobile Home Grant Program and the Homebuyer Education Program promote and expand the
supply of affordable housing in the City and foster the elimination and prevention of blight; and
WHEREAS, the Agency and the Contractor would like to amend the Homebuyer
Education Program Agreement pursuant to the First Amendment (as defined below) and to
4825-]757-9267,]
CDC/2009-33
execute, to deliver and to perform under a new and separate agreement for each of the
Rehabilitation Loan Program, for the Beautification Grant Program and for the Mobile Home
Grant Program; and
WHEREAS, the Agency and the Contractor desire to terminate the Loan and Grant
Agreement and to replace the Loan and Grant Agreement with the following three (3) new and
separate agreements: (i) this Agreement which provides grant funds to low-moderate income
homeowners who reside in the City, in the County and in the State to permit such homeowners to
undertake certain housing rehabilitation and correction work as described in this Agreement, to
one family dwellings owned and occupied by such low-moderate homeowners, (ii) the Single
Family Rehabilitation Loan Program Agreement (the "Rehabilitation Loan Program
Agreement") which provides loan funds to low-moderate income homeowners who reside in the
City, in the County and in the State to permit such homeowners to undertake certain housing
rehabilitation and correction work as described therein, to one family dwellings owned and
occupied by such low-moderate homeowners, and (iii) the Mobile Home Grant Program
Agreement (the "Mobile Home Grant Program Agreement") which provides grant funds to low-
income owners of mobile homes who reside in the City, in the County and in the State to permit,
without limitation, such low-income mobile home owners to make repairs and improvements to
their mobile homes in accordance with such Mobile Home Grant Program Agreement; and
WHEREAS, the Agency and the Contractor have determined that this Agreement, the
Rehabilitation Loan Program Agreement, the Mobile Home Grant Program Agreement and the
Homebuyer Education Program Agreement, as amended, will promote and expand the supply of
affordable housing in the City and will foster the elimination and prevention of blight; and
WHEREAS, the Loan and Grant Agreement shall not be terminated until the Agency and
the Contractor have entered into and executed this Agreement, the Rehabilitation Loan Program
Agreement, the Mobile Horne Grant Program Agreement and the Amendment No. I (the "First
Amendment") to the Homebuyer Education Program Agreement.
NOW, THEREFORE, IN CONSIDERATION OF THE RECITALS
MENTIONED ABOVE, THE MUTUAL PROMISES OF THE AGENCY AND OF THE
CONTRACTOR IN THIS AGREEMENT AND FOR OTHER GOOD AND VALUABLE
CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY
ACKNOWLEDGED BY THE AGENCY AND BY THE CONTRACTOR, THE AGENCY
AND THE CONTRACTOR AGREE AS FOLLOWS:
Section 1. DEFINITIONS OF CERTAIN TERMS. In addition to the words and
phrases, which are defined in the Recitals of this Agreement and/or in this Agreement, the
following words and terms shall have the meaning set forth below:
"Countv Recorder's Office" means and refers to the county recorder's office for the
County of San Bernardino, State of California.
"Environmental Laws" mean and refer to all applicable federal, state, municipal and local
laws, statutes, codes, ordinances, rules, regulations, orders and judgments relating to the
4825-1757~9267.1
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CDC/2009-33
protection or clean-up of the environment, the use, treatment, storage, transportation,
generation, manufacture, processing, distribution, handling or disposal of, or emission,
discharge or other release or threatened release of hazardous substances, the preservation
Of protection of waterways, groundwater, drinking water, air, wildlife, plants or other
natural resources, the health and safety of persons, or the protection of the health and
safety of employees, now or hereafter existing, as the same may be amended, modified or
supplemented from time to time, including, without limitation: the Clean Air Act, as
amended, 42 U.S.C. Section 7401 et seq.; the Federal Water Pollution Control Act, as
amended, 33 U.S.C. Section 1251 et seq.; the Resource Conservation and Recovery Act
of 1976, as amended, 42 U.S.C. Section 6901 et seq.; the Comprehensive Environment
Response, Compensation and Liability Act of 1980, as amended (including the Superfund
Amendments and Reauthorization Act of 1986, "CERCLA"), 42 V.S.C. Section 9601 et
seq.; the Toxic Substances Control Act, as amended, 15 U.S.c. Section 2601 et seq.; the
Occupational Safety and Health Act, as amended, 29 U.S.C. Section 651, the Emergency
Planning and Community Right-to-Know Act of 1986, 42 U.S.C. Section 11001 et seq.;
the Safe Drinking Water Act, as amended, 42 V.S.C. Section 300f et seq.; the California
Health and Safety Code (Section 25100 et seq., Section 25249.5 et seq., Section 39000 et
seq.); the California Water Code (Section 13000 et seq.); the California Environmental
Quality Act ("CEQA"); the California Public Resources Code; all comparable state and
local laws, laws of other jurisdictions or orders and regulations; and any and all common
law requirements, rules and bases of liability regulating, relating to or imposing liability
or standards of conduct concerning pollution or protection of human health or the
environment, as now or may at any time hereafter be in effect.
"Executive Director" means and refers to the Interim Executive Director of the Agency
and his or her authorized representatives, or designees.
"General Contractor Agreement" means and refers to the Single Family Beautification
Grant Program General Contractor Agreement by and between the Qualified Homeowner
and the contractor identified therein (the "General Contractor") as approved, in writing,
by the Contractor. The General Contractor Agreement relates, without limitation, to the
construction, installation and completion by the General Contractor of the Work
described in the General Contractor Agreement. The General Contractor Agreement
shall be executed by and between the Qualified Homeowner and the General Contractor
and shall be accepted, in writing, by the Contractor. The General Contractor Agreement
shall be substantially similar to the General Contractor Agreement attached hereto and
incorporated herein by this reference as "Exhibit" ".
"Grant" means and refers to each grant transaction approved, granted and made by the
Agency to or for the benefit of the Qualified Homeowner in accordance with this
Agreement. Each Grant made by the Agency to the Qualified Homeowner may not
exceed Ten Thousand Dollars ($10,000); provided, however, in connection with a Grant
in the amount of $10,000 made by the Agency to the Qualified Homeowner, for every
dollar paid by the Qualified Homeowner in excess of the $10,000 Grant Funds amount
that has been disbursed by the Agency and paid to the General Contractor or to any sub-
contactors in accordance with the Program to complete the Improvements, the Agency
4825-1757-9267.1
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CDC/2009-33
shall provide a dollar-for-dollar match not to exceed an additional Five Thousand Dollars
($5,000), in the aggregate. In no event shall the Grant Funds paid by the Agency for the
benefit of the Qualified Homeowner to complete the Improvements in connection with
the Home exceed Fifteen Thousand Dollars ($15,000), in the aggregate, without the prior
written approval of the Executive Director. The Qualified Homeowner shall pay all
amounts that exceed the Grant Funds paid by the Agency for the benefit of the Qualified
Homeowner under the Program to enable the Qualified Homeowner to complete the
Improvements in connection with the Qualified Homeowner's Home. For each year
during the term of this Agreement, the Contractor will attempt to approve, complete,
process and finalize eighty-seventy (87) Grants.
"Grant Application" means and refers to the Single Family Beautification Grant Program
Application as fully completed and executed by the Qualified Homeowner. The Grant
Application shall be submitted by the Qualified Homeowner to the Contractor and the
Contractor shall verify that the Grant Application is complete. Each Grant Application
shall contain the information relating to the Qualified Homeowner and the proposed use
of the Grant Funds by the Qualified Homeowner together with a current preliminary title
report or other proof oftitle acceptable to the Agency for the Home. The Contractor shall
require all Qualified Homeowners to complete the Grant Application substantially similar
to the Grant Application attached hereto and incorporated by reference as Exhibit" ."
"Grant Disbursement Account" means and refers to a separate custodial deposit account,
which the Contractor shall establish with an FDIC-insured depository institution for the
receipt and disbursement of the Grant Funds in connection with the approval, granting
and making by the Agency to the Qualified Homeowner of the Grant under the Program
in accordance with this Agreement. Such deposit account agreement among the
Contractor, the Agency and such depository institution shall be in a form and substance
as reasonably satisfactory to the Agency. The Contractor shall create and maintain a
separate Grant Disbursement Account for each Grant approved, granted and made by the
Agency for the benefit of each Qualified Homeowner. No other funds of the Contractor
shall be deposited or co-mingled in the Grant Disbursement Account. The Contractor
shall serve as the trustee of the Agency in the administration of all of the Grant Funds or
deposit in each Grant Disbursement Account, including any interest as may accrue
thereon.
"Grant Documents" mean and refer to the following: (i) the Grant Application, (ii) the
Maintenance Grant Needs Document, (iii) the Grant Disclosure, (iv) the Grant Services
Agreement, (v) the Maintenance Agreement Covenant, (vi) the Homeowner's Release
and Waiver, and (vii) this Agreement and such other agreements, documents, instruments
and/or certifications relating to or in connection with the Grant to the Qualified
Homeowner, the Grant Funds and/or the Grant Disbursement Account.
"Grant Funds" mean and refer to the funds delivered by the Agency to or for the benefit
of a Qualified Homeowner in connection with the Grant that the Agency has approved
and granted to the Qualified Homeowner in accordance with this Agreement. Each Grant
made by the Agency to the Qualified Homeowner may not exceed Ten Thousand Dollars
4825-]757-9267.1
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CDC/2009-33
($10,000); provided, however, in connection with a Grant in the amount of $10,000 made
by the Agency to the Qualified Homeowner, for every dollar paid by the Qualified
Homeowner in excess of the $10,000 Grant Funds amount that has been disbursed by the
Agency and paid to the General Contractor or to any subcontactors in accordance with
the Program to complete the Improvements, the Agency shall provide a dollar-for-dollar
match not to exceed an additional Five Thousand Dollars ($5,000), in the aggregate. In
no event shall the Grant Funds paid by the Agency for the benefit of the Qualified
Homeowner to complete and perform the Improvements in connection with the Qualified
Homeowner's Home exceed Fifteen Thousand Dollars ($15,000), in the aggregate,
without the prior written approval of the Executive Director. The Qualified Homeowner
shall timely pay all amounts that exceed the Grant Funds paid by the Agency to or for the
benefit of the Qualified Homeowner under the Program in order to construct, install,
perform and/or complete the Improvements in connection with the Qualified
Homeowner's Home.
"Grant Services Agreement" means and refers to the Single Family Beautification Grant
Program Grant Services Agreement by and between the Qualified Homeowner and the
Contractor. The Grant Services Agreement, without limitation, notifies the Qualified
Homeowner that the Agency has awarded the Grant to the Qualified Homeowner, restates
and certifies the Program qualifications and guidelines, identifies the role of the
Contractor and restates the Qualified Homeowner's duties and responsibilities under the
Program. The Grant Services Agreement must be executed by the Qualified Homeowner
and by the Contractor and must be substantially similar to the Grant Services Agreement
attached hereto and incorporated herein by this reference as Exhibit" ".
"Hazardous Substances" mean and refer to any pollutant, contaminant, waste and any
toxic, carcinogenic, reactive, corrosive, ignitable, flammable or infectious chemical,
chemical compound or substance or otherwise hazardous wastes, toxic or contaminated
substances or similar materials, including, without limitation, any quantity of asbestos,
urea formaldehyde, PCBs, radon gas, lead, lead-based paint, crude oil or any fraction
thereof, all forms of natural gas, petroleum products, by-products or derivatives,
radioactive substances, methane, hydrogen sulfide or materials, pesticides, waste waters,
or sludges, any of the above of which are subject to regulation, control or remediation
under any Environmental Laws.
"Home" means and refers to the land and a one family dwelling located in the City,
owned by the Qualified Homeowner and resided in by the Qualified Homeowner as its
principal residence. For purposes of this Agreement, a Home shall not include any
duplex, triplex or four-plex dwelling located in the City.
"Homeowner's Release and Waiver" means and reters to the Homeowner's Release and
Waiver, as executed by the Qualified Homeowner and the Contractor. The Homeowner's
Release and Waiver provides, without limitation, that the Contractor shall be permitted to
display yard signs at the Qualified Homeowner's Home and that the Contractor shall be
permitted to photograph or videotape the Qualified Homeowner's Home. The
Homeowner's Release and Waiver shall be substantially similar to the Homeowner's
4825-1757-9267.1
5
CDC/2009-33
Release and Waiver attached hereto and incorporated herein by this reference as Exhibit
.. "
"Improvements" mean and refer to the following types of eligible improvements
(primarily for non-health and safety code violations) to the Qualified Homeowner's
Home that will be permitted under the Program: (i) window and front door replacement,
(ii) driveway repairs, replacements or enhancements, (iii) garage door replacement, (iv)
exterior painting, (v) drought tolerant landscaping including automatic sprinklers, grass
seed, and planting materials (front yard only), (vi) replacement of existing fence with
wrought iron, vinyl, wood or block fencing (front yard only), (vii) parkway
enhancements such as stamped concrete, trees and landscape plantings, (viii) any roof
repairs or replacement, or (ix) any sewer repairs or sewer installation (the "Sewer
Repairs"). In connection with each Grant Application for Sewer Repairs, the Agency
shall have the right to determine whether or not such Sewer Repairs shall be made from
funds disbursed by the Agency from Grant Funds under the Program or from loan
proceeds disbursed by the Agency to an applicant under the Single Family Residence
Rehabilitation Loan Program, or under any other then existing loan program. Should the
Agency determine that the Sewer Repairs will need to be disbursed by the Agency from
loan proceeds pursuant to the Single Family Residence Rehabilitation Loan Program, or
any other then existing loan program, the Contractor shall advise the applicant, in writing,
that the applicant will need to prepare, to execute and to submit a new loan application to
the Contractor under the Single Family Residence Rehabilitation Loan Program, or under
any other then existing loan program, which loan application, without limitation, shall
request the Agency to make a loan to the applicant to permit the applicant to make and to
complete the Sewer Repairs.
"Laws" mean and refer to all federal, state, municipal and local laws, statutes, codes,
ordinances, regulations, rules, orders or judgments, now or hereafter in effect, as
amended from time to time, including, without limitation, the Environmental Laws, all
applicable building, plumbing, mechanical, electrical and health and safety codes and
City ordinances.
"Lead Based Paint Acknowledgment" means and refers to the "Lead Based Paint
Acknowledgment of Receipt" as executed by the Qualified Homeowner and the General
Contractor. The Lead Based Paint Acknowledgment acknowledges receipt by the
Qualified Homeowner of the Lead Based Paint Pamphlet from the General Contractor.
The Lead Based Paint Acknowledgment is attached hereto and incorporated herein by
this reference as Exhibit" "
"Lead Based Paint Disclosure" means and refers to the "Lead Based Paint Disclosure" by
and between the Qualified Homeowner and the General Contractor. The Lead Based
Paint Disclosure is to be executed by the General Contractor and by the Qualified
Homeowner and is attached hereto and incorporated herein by this reference as Exhibit
" "
4825-]757-9267.1
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CDC/2009-33
"Low-Moderate Income Housing Funds" mean and refer to the Low-Moderate Income
Housing Funds that the Agency intends to use to make the Grant to or for the benefit of
the Qualified Homeowner in accordance with this Agreement and with Health and Safety
Code Section 33334.3 et seq. The Agency and the Contractor will offer the Grant to a
Qualified Homeowner who earns not more than 120% of the current annual median
income for the San Bernardino County area, adjusted for family size (as those terms are
defined by California Health and Safety Code Section 50053.5) as further illustrated in
Exhibit "A" of this Agreement (the "2009 Income Limits") and are subject to annual
adjustments.
"Maintenance Agreement Covenant" means and refers to the "Residential Property
Maintenance Agreement Containing Covenants Affecting Real Property (Single Family
Beautification Grant Program) by and between the Agency and the Qualified
Homeowner. The Maintenance Agreement Covenant provides, without limitation, for
maintenance-related duties and obligations to be performed and completed by the
Qualified Homeowner in connection with the Qualified Homeowner's Home. The
Maintenance Agreement Covenant shall be exeeuted and acknowledged by and between
the Ageney and the Qualified Homeowner, and must be in recordable form for
recordation by the Contraetor or by the Agency in the County Recorder's Office. The
Maintenance Agreement Covenant must be substantially similar to the Maintenance
Agreement Covenant attached hereto and incorporated herein by this reference as Exhibit
'" "
"Maintenanee Class" means and refers to the maintenance class conducted by the
Contractor and attended by the Qualified Homeowners after the Ageney has approved the
Grant to a Qualified Homeowner. In the Maintenance Class, the Qualified Homeowner
shall learn, without limitation, to properly maintain the Qualified Homeowner's Home
and/or the Improvements to be constructed, installed, performed and completed thereon.
"Maintenance Grant Needs Document" means and refers to the Maintenance Grant Needs
Document, as fully completed and executed by the Qualified Homeowner in connection
with the Pro6'fam. The Maintenance Grant Needs Document is attached hereto and
incorporated herein by this reference as Exhibit "_".
"Program" means and refers to the program created, administered and maintained by or
for the Agency in connection with the Grant, the disbursement by the Agency to the
Contractor of the Grant Funds to or for the benefit of each Qualified Homeowner in
accordance with this Agreement and the performance and completion by the Contractor
of the Services. Upon written notice from the Agency, the Contractor shall offer the
Program to Qualified Homeowners in the specific Target Area or Target Areas as may be
designated, in writing, by the Agency to the Contractor from time to time during the term
of this Agreement. In the absence of specific direction from the Executive Director of the
Agency, the Contractor shall offer the Program on an as-needed, first-come, first-served
basis, to Qualified Homeowners throughout the City for the term of this Agreement.
However, in case of an emergency, of an urgent need or of a life-threatening situation, the
4R25-1757-9267,]
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CDC/2009-33
Contractor may process a Grant Application ahead of other Grant Applications subject to
the approval by the Executive Director.
"Oualified Homeowner" means and refers to: (i) a person or household which owns and
occupies its Home as its principal residence within the City or within the Target Area or
the Target Areas of the City, as may be specifically designed, in writing, from time to
time by the Agency for at least twelve (12) continuous months preceding the date of
submission of its Grant Application and its Maintenance Needs Application Document to
the Contractor, (ii) has a personal or household income level, adjusted for family size,
during the twelve (12) months preceding the date of submission of its Grant Application
and its Maintenance Needs Application Document to the Contractor within the ranges of
income for low-moderate income households, adjusted for family size, as set forth in
Exhibit "A", (iii) must complete, execute and submit the Grant Application and the
Maintenance Needs Application Document to the Contractor, (iv) must agree to attend
the Maintenance Class conducted by the Contractor, (v) must agree to live in its Home, as
its principal residence, for not less than five (5) years after the recordation of the
Maintenance Agreement Covenant in the County Recorder's Office, (vi) must execute
and acknowledge, where appropriate, all Grant Documents, (vii) must agree to maintain
the Home pursuant to the Maintenance Agreement Covenant for a period of ten (10)
years following the recordation of such Maintenance Agreement Covenant in the County
Recorder's Office, and (viii) must not be the recipient of a loan or other grant from the
Agency for the past ten (10) years. On a case-by-case basis, the Executive Director of the
Agency, in its sole and absolute discretion, may waive this one (1) year residency
requirement.
"Services" mean and refer, without limitation, to the Program origination, the
preparation, execution and delivery of the Grant Documents, the Grant Fund
disbursement control, related accounting, Work monitor (course of construction builder
contract) services and other services to be provided by the Contractor to or for the benefit
of the Agency in accordance with this Agreement. The various elements of the Services
are more fully set forth in the "Scope of Services" attached hereto as Exhibit "c." For
each year of the Agreement, the Contractor will attempt to approve, complete, process
and finalize eighty-seventy (87) Grants to Qualified Homeowners.
"Target Area" or "Target Areas" mean and refer to the specific area, areas, neighborhood
or neighborhoods in the City in which the Agency has instructed the Contractor to offer
the Program to Qualified Homeowners to better maximize the effectiveness of the Grant
Funds, or in any other specific area, areas, neighborhood or neighborhoods hereinafter
created by the Agency and/or throughout the City (excluding County territory), as
amended from time to time by the Agency in its sole and absolute discretion. Should the
Agency request the Contractor to offer the Program to a specific Target Area or to
specific Target Areas, the Agency shall consult with and provide in writing the Target
Area or the Target Areas to the Contractor. The Contractor shall then offer the Program
to Qualified Homeowners in the specific Target Area or Target Areas until the Contractor
is otherwise advised in writing from the Agency, as such Target Area or Target Areas
4S25-1757-9267,1
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CDC/2009-33
may be adjusted and amended from time by the Agency in its sole and absolutc
discretion.
In the absence of specific direction from the Executive Director of the Agency,
the Contractor shall offer the Program on an as-needed, first-come, first-served basis, to
Qualified Homeowners throughout the City. However, in the case of an emergency, of
an urgent need or of a life-threatening situation, the Contractor may process a Grant
Application ahead of other Grant Applications subject to the approval of the Executive
Director.
"Work" means and refers, without limitation, to the Improvements, or any part thereof, to
be constructed, installed, performed and/or completed by a state-licensed General
Contractor on each Home pursuant to the terms, covenants and conditions of the General
Contractor Agreement. Only the Improvements and/or the items of Work set forth in the
General Contractor Agreement shall be authorized for payment by the Contractor, up to
the maximum amount authorized under the terms of the Program for such Improvements,
or any part thereof. Any costs of Improvements and/or of Work in excess of the
maximum amount of the Program (which are not the fault of such General Contractor)
shall be paid for by the Qualified Homeowner unless approved in writing by the
Executive Director.
Section 2.
Contractor and the
Agreement.
PERFORMANCE BY CONTRACTOR AND BY AGENCY. The
Agency agree to perform the terms, covenants and conditions of this
Section 3. SCOPE OF SERVICES. The Contractor agrees to provide the Services
to the Agency as set forth herein and as described in the Scope of Services attached hereto as
Exhibit "c" for the Program.. Promptly following the date of approval of this Agreement by the
governing board of the Agency, the Contractor, without limitation, shall or will continue to:
(A) cause the Grant Disbursement Account to be established, or maintained, and the
general form of an FDIC - insured deposit account agreement acceptable to the Agency to
be fully executed by the Contractor, by the depository institution and by the Agency
within thirty (30) calendar days following the date of approval of this Agreement;
(B) continue to use the general form of the Grant Application in connection with an
application by a Qualified Homeowner for the approval by the Agency to the Qualified
Homeowner of the Grant under the Program in accordance with this Agreement. The
applicant for the Grant must submit to the Contractor federal and state income tax returns
filed by the applicant with the appropriate taxing authorities for the past two (2) years
which tax returns must be acceptable to the Contractor in its sole and absolute discrction;
(C) subject to the completion of the tasks described in Section 3(A) and in Section
3(B) above, continue the process of receiving and reviewing Grant Applications and
provide the Services as provided for in the Agreement. The Contractor shall offer the
Program to Qualified Homeowners in the Target Area or the Target Areas specifically
4825-]757-9267.1
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CDC/2009-33
determined and designated by the Agency or, if no Target Area is or no Target Areas are
specifically determined and designated by the Agency, then on an as needed, first-come,
first-served basis, to Qualified Homeowners throughout the City; provided, however, in
the case of an emergency, of an urgent need or of a life-threatening situation, the
Contractor may process a Grant Application ahead of other Grant Applications subject to
the approval of the Executive Director;
(D) transmit a copy of a completed set of the Grant Documents to the Executive
Director of the Agency, together with: (i) a recommendation from the Contractor to the
Agency to approve the Grant Application and the Grant to the Qualified Homeowner, and
(ii) a request from the Contractor to the Agency for a transfer of the Grant Funds by the
Agency for the account of the Qualified Homeowner. The Executive Director shall either
authorize the funding of such Grant or reject the request for funding on behalf of the
Agency within ten (10) business days of receipt from the Contractor. Any rejection of a
Grant Application shall be in writing and shall state the reasons for such action. Each
acceptance of a Grant Application by the Agency shall be evidenced by the signature of
the Executive Director of the Grant Documents, where designated. All Grant Documents
shall be executed, acknowledged, where designated, and completed by the Qualified
Homeowner and by the Contractor, and the disbursement of Grant Funds by the Agency
to or for the benefit of the Qualified Homeowner shall occur within sixty (60) calendar
days following the date of submission by the Contractor to the Executive Director of the
funding request, or the Grant Documents shall be of no further force or effect;
(E) no fees, charges or expenses shall be payable by any applicant to the Contractor
or to the Agency for a Grant, except from the Grant Funds, nor shall the Contractor
charge a Qualified Homeowner for any cost or service in connection with the origination
or subsequent administration of the Grant during the time the Improvements and/or the
Work is constructed, installed, performed and/or completed at the Home, except for the
Maintenance Class fee, or as authorized under the Program by the Executive Director;
(F) instruct the Executive Director to transfer the Grant Funds for the account of each
Qualified Homeowner to the Grant Disbursement Account as set forth in Section 3(D),
above, upon confirmation by the Contractor that the Grant Documents for the Program
are executed and complete and the Maintenance Agreement Covenant (and any other
documents to be recorded in the County Recorder's Office) are ready for recordation;
(G) deliver a fully executed and acknowledged, where designated, original set of the
Grant Documents for each Grant (except for the Maintenance Agreement Covenant
which shall be recorded by the Contractor on behalf of the Agency in the County
Recorder's Office) to the Agency upon request of funding and transfer of the Grant Funds
for the account of the Qualified Homeowner to the Grant Disbursement Account;
(H) verify that no Grant Funds are disbursed from the Grant Disbursement Account
for the account of a Qualified Homeowner except: (i) to pay a state-licensed General
Contractor and/or state-licensed subcontractor for the Improvements and/or for the Work
constructed, installed, performed and/or completed at the Home pursuant to the General
4825-]757-9267,]
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CDC/2009-33
Contractor Agreement (less a ten percent (10%) retention pending completion of the
Improvements and/or of the Work and final executed written release of all mechanics and
materials liens from the General Contractor and/or from all subcontractors). No
disbursement of the Grant Funds from the Grant Disbursement Account shall be
authorized for any building materials or equipment items which are not physically
delivered at the Home before the date of payment of such Grant Funds to the General
Contractor and/or to the subcontractor or (ii) to pay a Grant title fee or cost amount
expressly authorized in writing by the Executive Director;
(I) prepare and maintain a Grant Funds disbursement ledger for all payments
authorized and made by the Contractor to the General Contractors and/or to the
subcontractors for the account and debit to each Qualified Homeowner under each Grant
made by the Agency to or for the benefit of the Qualified Homeowner in accordance with
this Agreement. Such ledger shall show each payment by date and reference the
particular Grant, Grant Documents and name of the Qualified Homeowner to which it
corresponds. Such ledger shall also include a monthly starting and ending balance for the
Grant Disbursement Account, a final reconciliation of the adjusted balance of each Grant
upon the completion of the Improvements and/or of the Work, and such other accounting
information as the Executive Director may request. A copy of such ledger shall be
submitted to the Executive Director each month with the first such monthly submittal due
on the first day of the next month following the date of the initial deposit of the Grant
Funds by the Contractor and/or by the Agency into the Grant Disbursement Account;
(J) No Improvements and/or Work shall be authorized for payment by the Contractor
unless the Grant Documents are complete and the Contractor has received a fully
executed copy of the General Contractor Agreement by and between the General
Contractor and the Qualified Homeowner. Once the Improvements and/or the Work has
commenced on a particular Home, neither the Qualified Homeowner, the General
Contractor nor the subcontractor shall authorize an amendment or modification of such
contract to include any item of Work, which is not eligible for payment using the Grant
Funds under the terms and conditions of the Grant under the Program. Each such
contract by and between the General Contractor and the Qualified Homeowner, the
General Contractor and the subcontractor, and/or the subcontractor and the Qualified
Homeowner shall include a section, which recites the words of the first two (2) sentences
of this Section 3(J).
Section 4. TIME OF PERFORMANCE OF SERVICES. The Services to be
performed hereunder by the Contractor shall be undertaken and completed in such sequence as to
assure expeditious completion and to best carry out the purposes of the Program and this
Agreement. All Services required hereunder shall begin upon the execution of this Agreement.
Section 5. TERM OF AGREEMENT. This Agreement shall take effect upon
approval by the governing board of the Agency and the complete execution by the parties. The
Agreement shall remain in effect through July I, 2010, subject to annual approval and
appropriation by the United States Department of Housing and Urban Development ("HUD").
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Section 6.
COMPENSATION PAYABLE BY AGENCY TO CONTRACTOR.
(A) The Agency shall annually compensate the Contractor for the performance of the
Services using the Low-Moderate Income Housing Funds in accordance with the following
schedule:
$270,400.00
Annual Program Administration Fee for
CONTRACTOR
$ I ,080,000
Beautification Grant Program
$1.350.400
(B) From and after the Effective Date of this Agreement and for the remaining term of
this Agreement, the annual Program Administration Fee payable by the Agency to the Contractor
as compensation for the Services performed by the Contractor under this Agreement shall be
paid by the Agency directly to the Contractor, payable in twelve (12) equal monthly installments
of$22,533.33 each during the Term of this Agreement, in the aggregate amount of $270,400.00.
The Contractor shall invoice the Agency monthly in equal installments of $22,533.33, in the
aggregate annual amount of $270,400.00.
(C) Payment of each monthly installment in the amount of $22,533.33 for the
performance by the Contractor to the Agency of the Services will be made by the Agency to the
Contractor as of the first day of each calendar month with the first such payment due on the first
day of the next calendar month following the date of the complete execution of the Agreement
by the parties.
Section 7. PERSONNEL OF CONTRACTOR. The Contractor represents that it
has, or will secure at its own expense, all personnel required to perform the Services. All of the
Services required hereunder will be performed by persons who are either employed by or under
the supervision and control of the Contractor, and all personnel engaged in the Services shall be
competent and fully qualified to perform such Services.
Section 8. INDEPENDENT CONTRACTOR. All acts of the Contractor and all
others acting on behalf of the Contractor relating to the performance of this Agreement, shall be
performed as independent contractors and not as agents, officers, or employees of the Agency.
The Contractor has no authority to bind or incur any obligation on behalf of the Agency. The
Contractor has no authority or responsibility to exercise any right or power vested in the Agency.
No agent, officer, or employee of the Agency shall be considered an agent or employee of the
Contractor. It is understood by both the Contractor and the Agency that this Agreement shall not
under any circumstance be construed or considered to create an employer-employee relationship
or a joint venture as between the Contractor and the Agency. The Contractor is and at all times
during the Term of this Agreement shall represent and conduct itself as an independent
contractor and not as an agent or employee of the Agency. The Contractor shall be responsible
to the Agency only for the requirements and results specified in this Agreement, and except as
expressly provided in this Agreement, shall not be subject to control by the Agency with respect
4825-1757-9267.]
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to the physical action or activities of the Contractor in fulfillment of this Agreement. The
Contractor has control over the manner and means of performing the Services under this
Agreement so long as consistent with the requirements of the Program. The Contractor is
permitted to provide services to others during the same period Services are provided to the
Agency under this Agreement. If necessary, the Contractor has the responsibility for employing
other persons or firms to assist the Contractor in fulfilling the terms and obligations under this
Agreement. If in the pertormance of this Agreement any third persons are retained as
subcontractors by the Contractor, such persons shall be entirely and exclusively under the
direction, supervision, and control of the Contractor. All terms of employment including hours,
wages, working conditions, discipline, hiring, and discharging or any other term of employment
or requirements of law shall be determined by the Contractor. The Contractor hereby agrees to
indemnify, defend (if requested by Agency), protect and hold the Agency harmless from any and
all claims that may be made against the Agency or based upon any contention by any employee
of the Contractor or by any third party that an employer-employee relationship or joint venture
exists between any person or entity and the Agency, by reason of the performance of any of the
Services under this Agreement.
Section 9. PAYMENT OF AND TRANSFER OF GRANT FUNDS TO GRANT
DISBURSEMENT ACCOUNT. The Agency shall promptly honor each request by the
Contractor for the Agency to transfer Grant Funds to the Contractor who will in turn deposit the
Grant Funds to the Grant Disbursement Account to fund each approved Grant as submitted by
the Contractor to the Agency under Section 3(D). Within sixty (60) calendar days following
receipt of each request tor remittance of the Grant Funds, the Agency shall transfer by bank
check to the Contractor such Grant Funds to use as provided herein.
Section 10. COMMERCIAL GENERAL LIABILITY INSURANCE.
AUTOMOBILE INSURANCE. WORKERS' COMPENSATION INSURANCE.
EMPLOYER'S LIABILITY INSURANCE. ERRORS AND OMISSIONS AND
PROFESSIONAL LIABILITY INSURANCE.
(A) The Contractor shall obtain and keep in force during the term of this Agreement,
at its sole cost and expense, the following insurance policies: (i) a commercial general liability
policy of insurance with coverage at least as broad as '"Insurance Services Office Commercial
General Liability Form (GOOOI)", in the amount of One Million Dollars ($1,000,000) combined
single limit per occurrence, naming the Agency and the City and the elected officials, officers,
employees, attorneys and agents of each of them as additional insureds (collectively, the
"Additional Insureds") with said insurance covering comprehensive general liability including,
but not limited to, contractual liability, assumed contractual liability under this Agreement, acts
of subcontractors, premises-operations, explosion, collapse and underground hazards, if
applicable, broad form property damage, and personal injury including libel, slander and false
arrest, (ii) comprehensive automobile liability insurance covering owned, non-owned and hired
vehicles by or tor the Contractor, combined single limit in the amount of One Million Dollars
($1,000,000) per occurrence, naming the Additional Insureds as additional insureds on each
automobile insurance policy, (iii) workers' compensation insurance in such insurance coverage
amounts as statutorily required, or similar insurance in form and amounts required by law, and
employer's liability insurance, combined single limit in the amount of One Million Dollars
4825-[757-9267.]
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($1,000,000), and (iv) errors and omissions and professional liability, combined single limit in
the amount of One Million Dollars ($1,000,000) per occurrence.
(B) Any and all insurance policies required hereunder shall be obtained from
insurance companies admitted in the State of California and rated at least A: XII in the most
current Best's Key Rating Insurance Guide. In no event shall the Contractor be permitted or
entitled to assign to any third party rights of action which the Contractor may have against the
Agency. All said insurance policies shall provide that they may not be canceled unless the
Agency and the City receive written notice of cancellation at least thirty (30) calendar days prior
to the effective date of cancellation. Any and all insurance obtained by the Contractor shall be
primary to and shall not be contributing with any insurance carried by the Agency or by the City
whose insurance shall be considered excess insurance only. Any insurance which the Agency
and/or City may otherwise carry, including self insurance, for all purposes of this Agreement
shall be separate and apart from the requirements of this Agreement. Legal counsel for the
Agency must approve each insurance policy required in Section 10(A) of this Agreement. The
Contractor waives subrogation and agrees that the Contractor, the Agency and the City are co-
insured. The insurer shall have no right of subrogation against the Agency, against the City or
against any of the other Additional Insureds. The Additional Insureds shall be named as
additional insureds on each insurance policy.
(C) All insurance which the Contractor shall carry or maintain pursuant to this Section
10 shall be in such form, for such amounts, for such periods of time as the Agency may require
or approve.
(D) The Contractor shall deliver or cause to be delivered to the Agency concurrently
upon the execution of this Agreement an endorsement of the insurance policies required in this
Section lO(A) oftms Agreement evidencing the existence of the insurance coverage required by
the Agency under Section lO(A) of this Agreement and shall also deliver, no later than thirty
(30) calendar days prior to the expiration of any insurance policy, a certificate of insurance
evidencing each renewal policy covering the same risks.
Section 11. INDEMNIFICATION.
(A) The Contractor agrees to indemnify, defend with legal counsel reasonably
acceptable to the Agency, protect and hold the City and the Agency, and their respective elected
officials, directors, officers, members, managers, consultants, contractors, employees, agents and
attorneys, and the successors and assigns of each of them (singularly and collectively, the
"Indemnified Parties" which defined term shall also includes the City and the Agency), harmless
from and against all actions, causes of action, claims, demands, liabilities, damages, losses,
liabilities, obligations, judgments, suits, costs, expenses and fees (including, without limitation,
reasonable attorneys' fees, court costs and expert fees of any nature whatsoever), now or
hereafter arising from or related to: (i) any act or omission of the Contractor and/or of any of the
Contractor's directors, officers, members, managers, consultants, contractors, subcontractors,
materialmen, laborers, any other person or entity furnishing or supplying work, services, goods,
or supplies in connection with the performance of this Agreement, employees and agents, and the
successors and/or assigns of each of them (singularly and collectively, the "Indemnifying
4S25-1757-9267.1
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CDC/2009-33
Parties" which defined term shall also include the Contractor), in performing, or failing to
perform, its obligations hereunder, (ii) any default by the Contractor under this Agreement,
subject to any applicable cure period, (iii) any violation by any of the Indemnifying Parties of
any Laws, (iv) any warranty or representation made by the Contractor to the Agency in this
Agreement that is or becomes false and untrue, (v) death, bodily injury and/or personal injury to
any person, (vi) any destruction, loss or damage to real property or personal property, (vii) the
presence of any Hazardous Substances at, on, in, above, under or about any Home owned by a
Qualified Homeowner resulting, directly or indirectly, from the acts or omissions of any
Indemnifying Parties, and/or (viii) the aggravation of any environmental condition by any
Indemnifying Parties at, on, in, above, under or about any Home owned by a Qualified
Homeowner. Without limiting the Contractor's indemnification of the Indemnified Parties, the
Contractor shall provide and maintain, at its sole cost and expense during the term of this
Agreement, the insurance described in Section 10(A) of this Agreement. Such insurance shall be
provided by insurer(s) satisfactory to the Agency and evidence of such insurance satisfactory to
the Agency shall be delivered to the Executive Director no later than the Effective Date of this
Agreement.
(B) The Agency shall indemnify, defend (if requested by the Contractor) and hold
harmless the Contractor, its agents, officers, and employees, from all claims, loss, demands and
liability for damages for personal injury, bodily injury or property damage suffered by reason of
any act or omission of the Agency or any of its officers or employees or agents under this
Agreement except where such action or omission giving rise to such a claim is caused by or is
the result of an action, omission or request of the Contractor and/or of any of the other
Indemnifying Parties, or is alleged to arise out of the execution of this Agreement. The
provisions of Section II (A) and Section II (B) shall survive the execution, delivery,
performance, expiration or early termination of this Agreement.
Section 12. DEFAULTS AND BREACH - GENERAL. The failure or delay by
either party to perform any material term or provision of this Agreement shall constitute a default
hereunder; provided, however, that if the party who is otherwise claimed to be in default by the
other party commences to cure, correct or remedy the alleged default within thirty (30) calendar
days after receipt of written notice specifying such default and shall diligently complete such
cure, correction or remedy, such party shall not be deemed to be in default hereunder. A default
shall also occur under this Agreement whenever a representation and/or warranty made in this
Agreement is or becomes false or untrue. A default shall also occur under this Agreement
whenever a party files, or has filed against it, a petition in bankruptcy, is or becomes insolvent, is
unable to pay its debts as they come due, assigns its assets for the benefit of creditors, or a
receiver, trustee or custodian is appointed by a court to exercise control over all or substantially
all of the assets of the party and such recei vcr, trustee or custodian is not discharged by the court
within sixty (60) calendar days after said appointment date. The party which may claim that a
default has occurred shall give written notice of default to the patty in default specifying the
alleged default. Delay in giving such notice shall not constitute a waiver of any default nor shall
it change the time of default; provided, however, the injured party shall have no right to exercise
any remedy for a default hereunder without delivering the written default notice as specified
herein. Any failure or delay by a party in asserting any of its rights and remedies as to any
default shall not operate as a waiver of any default or of any rights or remedies associated with a
4825-1757-9267.1
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default, and the rights and remedies of the parties are cumulative and the exercise by either party
of one or more of such rights or remedies shall not preclude the exercise by it, at the same or
different times, of any other rights or remedies for the same default or any other default by the
other party. In the event that a default of either party may remain uncured for more than thirty
(30) calendar days following written notice, as provided above, a "breach" shall be deemed to
have occurred. In the event of a breach, the party who is not in default shall be entitled to
terminate this Agreement and seek any appropriate remedy or damages by initiating legal
proceedings. If any action or proceeding is brought to enforce the terms hereof or declare rights
hereunder, it shall be brought in the Superior Court of the County of San Bernardino, San
Bernardino District, State of California. The governing Laws to be applied in any such action or
proceeding shall be the Laws of the State of California. The prevailing party in any such legal
proceedings shall be entitled to recover as an element of its costs of bringing such suit, and not as
part of its damages, its reasonable attorneys' fees, court costs, expert witness fees and consultant
fees and costs. The costs, salary and expenses of the City Attorney and members of his office in
such action or proceeding on behalf of the Agency shall be considered as "attorneys' fees" for
purposes of this Section.
Section 13. NONDISCRIMINATION. During the Contractor's performance of the
Services, the Contractor shall not discriminate on the grounds of race, religion, creed, color,
national origin, age, ancestry, physical handicap, medical condition, marital status, sex, or sexual
orientation in the performance of the Services, including, without limitation, in the selection and
retention of employees, general contractors and subcontractors and the procurement of materials
and equipment, except as provided in Section i2940 of the California Government Code.
Section 14. CONFLICT OF INTEREST. The Contractor warrants, by execution of
this Agreement, that it has no interest, present or contemplated, in the Program or in any Home
benefited thereby or Work performed on any Home using the Grant and the Grant Funds. The
Contractor further warrants that it owns or possesses no interest in real property, business
interests or owner of income (other than such amounts of compensation payable by the Agency
to the Contractor for the Services under this Agreement) that will be affected by the Program or,
alternatively, if such interest exists or arises the Contractor will promptly file with the Agency an
affidavit disclosing any such interest.
Section 15. AMENDMENTS. All amendments to this Agreement shall be subject to
the approval of both parties in the sole discretion of each of them, mutual and in writing. The
Executive Director of the Agency is authorized to make non-substantive changes, clarifications,
corrections to the Agreement, including budget line item adjustments, provided such actions are
approved by legal counsel for the Agency and do not increase the Agency's monetary annual
appropriation to the Contractor as approved by the governing board of the Agency.
Section 16. TERMINATION.
(A) This Agreement may be terminated for any reason by either party who is not then
in default upon thirty (30) calendar days prior written notice to the other party. In such event, the
Contractor shall be entitled to receive compensation for Services pro-rated through the date of
such termination, provided that the Services have been rendered.
4R25-1757-9267.!
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(B) In the event of a termination of the Agreement as a result of a breach, the rights
and duties of the parties shall be as set forth in Section 12.
(C) In the event of any termination of this Agreement, the Contractor shall promptly
return all Grant Funds that have been disbursed by the Agency to the Contractor with the
exception of any Grant Funds that have been paid by the Agency to the Contractor and that have
been properly disbursed by the Contractor to or for the benefit of the Qualified Homeowner
under this Agreement, without charge or expense to the Agency.
Section 17. ASSIGNMENT. It is mutually understood and agreed that this
Agreement shall be binding upon the Agency and its successors and assigns and upon the
Contractor and its permitted successors and permitted assigns. The Agency may assign this
Agreement, without obtaining the prior consent or approval of the Contractor. The Contractor
may not assign this Agreement without obtaining the prior written consent of the Agency, which
written consent may be given or withheld by the Agency in its sole and absolute discretion. Any
assignment or attempt to assign this Agreement by the Contractor shall be void.
Section 18. NOTICES. Communications, notices, bills, invoices or reports required
by this Agreement shall be in writing and shall be deemed to have been given when actually
delivered, if given by hand delivery or transmitted by overnight courier service, or if mailed,
three (3) business days after being deposited in the United States mail, postage prepaid, to the
address noted below:
Agencv
Economic Development Agency
of the City of San Bernardino
Attention: Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 92401
Phone: (909) 663-1044
Fax: (909) 888-9413
Contractor
Neighborhood Housing Services of
the Inland Empire, Inc.
Attention: Executive Director
1390 North "D" Street
San Bernardino, California 92405
Phone: (909) 884-6891
Fax: (909) 889-4085
Either party may change its address for receipt of written notice by notifying the other
party in writing of a new address for delivering notice to such party.
Section 19. REPRESENTATION AND WARRANTY OF CONTRACTOR. The
Contractor hereby represents and warrants to the Agency as follows:
(A) the Contractor is a California nonprofit corporation duly organized, existing, and
authorized to transact business in California;
(B) the corporate charter and by-laws of the Contractor authorize the Contractor to
provide the Services to the Agency and the governing board and membership of the Contractor
have previously taken all action necessary to authorize the execution of this Agreement by the
Contractor;
4825-1757-9267.1
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CDC/2009-33
(C) the Contractor is qualified to perform the Services and shall timely perform and
complete the Services in a professional manner.
Section 20. CONDITIONS PRECEDENT. The validity and enforcement of this
Agreement is subject to the execution and delivery by the Agency and by the Contractor of the
following Agreements: (i) the Rehabilitation Loan Program Agreement, (ii) the Mobile Home
Grant Program Agreement, and (iii) the First Amendment to the Homebuyer Education Program
Agreement.
Section 21. GRANT FUNDS AND GRANT DOCUMENTS ARE THE
PROPERTY OF THE AGENCY. The Grant Documents for each Grant are the property and
asset of the Agency. The Contractor has no property interest in any such Grant Documents and
the Contractor shall not transfer, assign or pledge as collateral or claim any other security interest
in any such Grant Documents. All of the Grant Documents are the property of the Agency. and
the Contractor shall maintain all such Grant Documents in its possession as confidential
consumer business records of the Qualified Homeowner. All Grant Funds disbursed by the
Agency to the Contractor for the benefit of a Qualified Homeowner are the property of the
Agency until paid by the Contractor to the General Contractor upon the completion of the Work
at the Home for the account of the Qualified Homeowner under the applicable Grant Documents.
Section 22. NON-ELIGIBILITY OF HOMEOWNER. Once the Agency has
approved the Grant Application for the Qualified Homeowner and has disbursed the Grant Funds
to the Contactor for the benefit of the Qualified Homeowner under this Agreement, the Qualified
Homeowner now or hereafter shall have no right to apply for and to receive any other grant or
loan being offered by the Agency to the general public under any grant or loan program,
including, without limitation, any grant being offered by the Agency under the Mobile Home
Grant Program Agreement, or any loan being offered by the Agency under the Single Family
Rehabilitation Loan Program Agreement, until ten (l0) years after the date that the Agency has
paid the last installment of the Grant Funds to the Contractor for the benefit of the Qualified
Homeowner under this Agreement.
Section 23. GENERAL PROVISIONS. This Agreement constitutes the sole
agreement between the parties. All prior conversations, agreements or representations relating
hereto are integrated in this Agreement. No oral agreement, representation or warranty shall be
binding upon the parties. If any provision of this Agreement shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining portions of this
Agreement shall not in any way be affected or impaired thereby. Failure of any party to enforce
any provision of this Agreement shall not constitute a waiver of the right to compel enforcement
of the same provision or any remaining provisions of this Agreement. Headings at the beginning
of each section or subsection are solely for the convenience of the parties and are not a part of
this Agreement. Whenever required by the context of this Agreement, the singular shall include
the plural and the masculine shall include the feminine and vice versa. This Agreement shall not
be construed as if it had been prepared by one of the parties, but rather as if all parties had
prepared the same. Unless otherwise indicated, all references to sections are to this Agreement.
All exhibits referred to in this Agreement are attached hereto and incorporated herein by this
4S25-1757-9267,]
18
CDC/2009-33
reference. If the date on which any action is required to be performed under the terms of this
Agreement is not a business day, the action shall be taken on the next succeeding business day.
This Agreement may be executed in one or more counterparts each of which shall be an original
but all of which together shall constitute but one original Agreement. This Agreement may be
executed by facsimile signatures, and each facsimile counterpart when taken together shall be
deemed an original Agreement. Time is of the essence in this Agreement.
IN WITNESS WHEREOF, the Contractor and the Agency have caused this Agreement
to be duly executed on the date first above written.
AGENCY
Dated:
1-/~ '0 '7
Redevelopment Agency of the
City of San Bernardino,
a public body, corporate and politic
Z;~
By: 0 ~ . ...
Emil A. Marzullo, Intenm xecutive Director
Approved as to Form:
A~~~U-
CONTRACTOR
Date:
00 'cX.9~oc;
Neighborhood Housing Services
of the Inland Empire, Inc.,
a califo~i~ll nprofit corporation
;J '/I / .r?-
ByL----- ,/ I . 1/
Name: l/c/t:;, (j,. /! 0 Or "-
Title: Executive Director
Date:
By:
Name:
Title:
4825-]757-9267.]
19
CDC/2009-33
EXHIBIT "A"
2009 Income Limits
4825-1757-9267,]
20
CDC/2009-33
EXHIBIT "B"
4825~1757-9267.1
21
CDC12009-33
EXHIBIT "c"
SCOPE OF SERVICES
(Description of Program)
A. Contractor's Administration Annual Fee
The Agency shall annually compensate the Contractor in the total sum of Two Hundred Seventy
Thousand Four Hundred Dollars ($270,400.00) for the administration and the implementation by
the Contractor of the Program herein and for the Services rendered under this Agreement, subject
to the annual approval and appropriation by the United States Department of Housing and Urban
Development ("HUD"). The Contractor shall invoice the Agency monthly in equal installments
of Twenty-Two Thousand Five Hundred Thirty-Three Dollars and 33/100 ($22,533.33), in the
aggregate annual amount of Two Hundred Seventy Thousand Four Hundred Dollars
($270,400.00).
B. SiDlde Familv Beautification Grant Prol!ram (the "Prol!ram") ($1.350.400)
The Contractor shall accept the Grant Applications and the Maintenance Grant Needs Document
from respective Qualified Homeowner applicants to determine income and improvement
eligibility (see Exhibit "A" to this Agreement), to determine equity in the Home and to verify
ownership and length of ownership by obtaining a preliminary title report or other pertinent
documentation from a reputable title company. The Contractor shall offer the Program to
Qualified Homeowners in the Target Area or in the Target Areas specifically determined and
designated by the Agency or, if no Target Area is or no Target Areas are specifically determined
and designated by the Agency, then on an as needed, first-come, first-served basis, to Qualified
Homeowners throughout the City of San Bernardino. However, in the case of an emergency, of
an urgent need or of a life-threatening situation, the Contractor may process a Grant Application
ahead of other Grant Applications subject to the approval by the Executive Director. The
Improvements allowed under the Program are described in Section "c" below of this Scope of
Services.
C. Eligible Improvements Permitted under the Program
The following types of Improvements are permitted in connection with the Program: (i)
window and front door replacement, (ii) driveway repairs, replacements or
enhancements, (iii) garage door replacement, (iv) exterior painting, (v) drought tolerant
landscaping including automatic sprinklers, grass seed, and planting materials (front yard
only) in accordance with the Agency Landscaping Guidelines, (vi) replacement of
existing fence with wrought iron, vinyl, wood or block fencing (front yard only), (vii)
parkway enhancements such as stamped concrete, trees and landscape plantings, (viii)
roof repairs and replacement, or (ix) the Sewer Repairs. In connection with each Grant
Application for Sewer Repairs, the Agency shall have the right to determine whether or
not such Sewer Repairs shall be made from fimds disbursed by the Agency from Grant
Funds under the Program or from loan proceeds disbursed by the Agency to an applicant
4X25-]757-9267,]
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CDC/2009-33
under the Single Family Residence Rehabilitation Loan Program, or under any other then
existing loan program. Should the Agency determine that the Sewer Repairs will need to
be disbursed by the Agency from loan proceeds pursuant to the Single Family Residence
Rehabilitation Loan Program, or any other then existing loan program, the Contractor
shall advise the applicant, in writing, that the applicant will need to prepare, to execute
and to submit a new loan application to the Contractor under the Single Family Residence
Rehabilitation Loan Program, or under any other then existing loan program, which loan
application, without limitation, shall request the Agency to make a loan to the applicant
to permit the applicant to make and to complete the Sewer Repairs.
The maximum amount of the Grant permitted under the Program is the sum of Ten Thousand
Dollars ($10,000) per Home; provided, however, in connection with a Grant in the amount of
$10,000 made by the Agency to the Qualified Homeowner, for every dollar paid by the Qualified
Homeowner in excess of the $10,000 Grant Funds amount that has been disbursed by the Agency
and paid to the General Contractor or to any sub-contactors in accordance with the Program to
complete the Improvements, the Agency shall provide a dollar-for-dollar match not to exceed an
additional Five Thousand Dollars ($5,000), in the aggregate. In no event shall the Grant Funds
paid by the Agency to or for the benefit of the Qualified Homeowner to complete the
Improvements in connection with the Qualified Homeowner's Home exceed Fifteen Thousand
Dollars ($15,000), in the aggregate, without the prior written approval of the Executive Director.
D. Applicant Eli!!ibilitv Requirements for the Pro!!ram
I. Qualified Homeowner must be an owner and occupant of the Home, as its principal
residence, for a minimum period of one (I) year; on a case-by-case basis, and depending on the
circumstances, this one (1) year requirement may be waived by the Executive Director or his/her
designee; the Contractor shall obtain evidence of ownership and length of ownership and
residency.
2. Qualified Homeowner must execute and complete a Grant Application and a
Maintenance Grant Needs Document and must deliver and submit the Grant Application and the
Maintenance Grant Needs Document, as fully executed and completed, to the Contractor. The
Contractor shall receive, review, verify and approve or reject the Grant Application and the
Maintenance Grant Needs Document. If the Grant Application and/or the Maintenance Grant
Needs Document is not acceptable to the Contractor, the Contractor shall notify the applicant in
writing within ten (10) business days from the receipt by the Contractor of the Grant Application
and/or of the Maintenance Grant Need Document and the Contractor shall provide the applicant
with the reasons for the rejection by the Contractor.
3. Qualified Homeowner must have a personal or household income level, adjusted for
family size, during the twelve (12) months preceding the date of submission of the Grant
Application and the Maintenance Grant Needs Document to the Contractor within the ranges of
income for low-moderate income households, adjusted for family size, as set forth in Exhibit "A"
to this Agreement.
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CDC/2009-33
4. Qualified Homeowner must agree to: (i) attend a Maintenance Class conducted by the
Contractor and (ii) live in the Qualified Homeowner's Home, as its principal residence, for not
less than five (5) years after the recordation of the Maintenance Agreement Covenant in the
County Recorder's Office.
5. Qualified Homeowner must execute and acknowledge, where appropriate, the Grant
Documents. The Qualified Homeowner, without limitation, shall execute and notarize the
Maintenance Agreement Covenant and the Contractor or the Agency shall record, or shall cause
the recordation of, the Maintenance Agreement Covenant in the County Recorder's Office. The
Maintenance Agreement Covenant shall provide, without limitation, that the Qualified
Homeowner shall maintain the Home as provided therein for a period of ten (10) years from the
date of the recordation of the Maintenance Agreement Covenant in the County Recorder's
Office.
6. Qualified Homeowner must not be the recipient of a grant or of a loan from the Agency
for the past ten (10) years.
E. Guidelines
The Contractor shall conduct, administer, implement, comply with and perform the following
guidelines in connection with the Program:
1. The Contractor shall administer and implement the Program herein and shall utilize the
applicable and pertinent sections of the Agency's Grant Policies and Procedures Manual for
f,'1Iidance on processing and packaging all Grants under this Agreement, if applicable, under the
direction of the Executive Director.
2. The Contractor shall accept the Grant Applications and the Maintenance Grant Needs
Documents from respective Qualified Homeowner applicants to determine income and
improvement eligibility, to determine equity in the Home, and to verify ownership and length of
ownership by obtaining a preliminary title report or other pertinent documentation from a
reputable title company. The Contractor shall offer the Program to Qualified Homeowners in the
Target Area or the Target Areas specifically determined and designated by the Agency or, if no
Target Area or no Target Areas are specifically determined and designated by the Agency, then
on an as needed, first-come, first-served basis, to Qualified Homeowners throughout the City of
San Bernardino. However, in the case of an emergency, of an urgent need or of a life-
threatening situation, the Contractor may process a Grant Application on an urgent basis ahead
of other Grant Applications subject to the approval of the Executive Director.
3. The Contractor shall inspect eligible Homes and properties to determine the type of
health and safety and code violation repair work needed, including asbestos and lead-based paint
removal and/or remediation, the age and overall condition of the Home and to ensure that all
Homes repaired or improved under the Program when completed are aesthetically pleasing and
in compliance with all Laws. If the Contractor determines that the Improvements to be
completed are related more to health, safety and/or code violations, the Contractor shall advise
4825~ 1757-9267.1
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CDC/2009-33
the Qualified Homeowner applicant to complete, execute and deliver an application under the
Rehabilitation Loan Program.
4. The Contractor shall prepare and complete Work write-ups, cost estimates, and bid
packages for the Improvements to be constructed, installed, performed and completed for each
Qualified Homeowner's Home.
5. The Contractor shall ensure that all Improvements and/or Work constructed, installed,
performed and/or completed in connection with the Qualified Homeowner's Home shall be
constructed, installed, performed and completed by pre-qualified State licensed General
Contractors and/or State licensed subcontractors. The Contractor shall also require that each
General Contractor and/or subcontractor constructing, installing, performing and/or completing
the Improvements and/or the Work in connection with the Qualified Homeowner's Home under
the Program shall possess a current business license in the City and shall possess a current
license with the State of California Contractor's License Board. The Contractor shall be
required, whenever feasible, to obtain a minimum of three (3) bids from General Contractors for
all Improvements and/or for all Work to be constructed, installed, performed and/or completed in
connection with the Qualified Homeowner's Home. All bids shall be made available by the
Contractor to the Qualified Homeowner for review. All Improvements and/or Work constructed,
installed, performed and/or completed by General Contractors and/or by subcontractors in
connection with the Qualified Homeowner's Home shall be approved and authorized by the
Qualified Homeowner, and shall be completed within a specified timeframe acceptable to the
Qualified Homeowner and the General Contractors and/or the subcontractors.
6. The Contractor shall solicit bids for the construction, installation, performance and/or the
completion of the Improvements and/or of the Work in connection with the Qualified
Homeowner's Home from a list of pre-approved General Contractors. The Contractor shall
assist the Qualified Homeowners with the selection of a General Contractor, and shall assist the
Qualified Homeowner in connection with the execution of the General Contractor Agreement,
including, without limitation, a determination as to the scope of the Improvements and/or of the
scope of Work to be constructed, installed, performed and/or completed by the General
Contractor, any schedule of performance, other schedules, conduct pre-construction and walk-
through conferences.
7. Prior to the execution of the General Contractor Agreement and prior to any funding by
the Contractor of any Grant Funds to the General Contractor for the proposed Improvements
and/or Work to be constructed, installed, performed and/or completed, the Contractor, the
Qualified Homeowner, the General Contractor and the members of the Agency application
review committee (the "Application Review Committee") appointed and assigned by the Agency
to approve, administer and oversee the construction, the installation, the performance and/or the
completion of the Improvements and/or of the Work shall meet at regular intervals to discuss the
Improvements and/or the Work to be constructed, installed, performed and/or completed in
connection with the Qualified Homeowner's Home and the methodology used or to be used to
identify, quantify and assist the Qualified Homeowner.
4825-1757-9267]
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CDC/2009-33
8. The Agency and the Qualified Homeowner must review, approve, execute and
acknowledge, where designated, the Grant Documents. The Grant Documents shall include,
without limitation, the Maintenance Agreement Covenant which document must be executed and
acknowledged by the Agency and by the Qualified Homeowner and must be recorded by the
Contractor or by the Agency in the County Recorder's Office. The General Contractor and/or
any subcontractor cannot commence the construction, the installation, the performance and/or
the completion of the Improvements and/or of the Work in connection with a Qualified
Homeowner's Home until: (i) the Grant Documents have been executed and acknowledged,
where appropriate, by the Agency and by the Qualified Homeowner, and (ii) all recordable
instruments, documents and/or agreements in connection with the Grant, including, without
limitation, the Maintenance Agreement Covenant have been recorded by or for the Contractor or
the Agency in the County Recorder's Office.
9. The General Contractor shall obtain one or more permits as required by applicable Laws
to construct, to install, to perform and/or to complete the Improvements and/or the Work at the
Qualified Homeowner's Home. At the time that the Contractor submits an invoice to the Agency
for payment of all or a portion of the Grant Funds in connection with the Grant made by the
Agency to the Qualified Homeowner, the Contractor shall provide the Agency with a copy of
each permit that is or will be required to construct, to install, to perform and/or to complete the
Improvements and/or the Work in connection with the Qualified Homeowner's Home. The
Agency shall have no obligation to pay any invoice submitted by the Contractor to the Qualified
Homeowner until the Agency has received and approved each permit issued for the
Improvements and/or for the Work completed by the General Contactor and/or by the
subcontractor and identified in the invoice.
10. The Contractor shall inspect and monitor the Improvements and/or the Work while in
progress and shall supervise the payment invoice procedures to ensure that all General
Contractors and subcontractors are meeting obligations and that progress payments and
retentions are paid in a timely manner.
11. The Contractor shall receive and collect from the General Contractors and/or from the
subcontractors an executed lien release under one of the following lien releases, as appropriate:
(i) an unconditional waiver and release upon progress payment or (ii) an unconditional waiver
and release upon final payment. The Contractor shall not make the final payment of the
remaining Grant Funds to any General Contractor until the General Contractor and/or all
subcontractors have executed and the Contractor has received the conditional waiver and release
upon final payment or the unconditional waiver and release upon final payment.
12. The Contractor shall coordinate final inspection and payment of the General Contractor
Agreement retention with the Qualified Homeowner, with the General Contractor and with the
Agency. The contract retention shall not be paid by the Contractor to the General Contractors
and/or to the subcontractors until all time periods for filing liens have expired and no liens have
been filed under applicable Laws.
13. Prior to the payment by the Contractor of the Grant Funds, or any portion thereof, to the
General Contractor, for the construction, for the installation, for the performance and/or for the
4825-]757-9267.\
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CDC/2009-33
completion of the Improvements and/or of the Work in connection with a Qualified
Homeowner's Home, the Contractor shall notify the Agency that the Contractor has received an
invoice for payment. Within ten (10) business days from receipt by the Contractor of the
invoice, the Contractor and the Agency shall inspect and approve the Improvements and/or the
Work identified in the invoice and constructed, installed, performed and/or completed by the
General Contractor and/or by any subcontractor. The Contractor shall not pay any such invoice
for the construction, installation, performance and/or completion of the Improvements and/or of
the Work until the Contractor and the Agency have inspected and approved, in writing, the
Improvements and/or the Work constructed, installed, performed and/or completed by the
General Contractor and/or by any subcontractors. The Agency reserves the right to approve
payment of an invoice in circumstances when no physical inspection is needed as determined by
the Agency in its sole and absolute discretion (i.e., fumigation for termites).
14. The Contractor shall maintain accurate records for inspection by the Agency concerning
income and program occupancy of all persons obtaining assistance from the Contractor pursuant
to this Agreement including, but not limited to, the Grant Application and the other Grant
Documents, proof of ownership, income verification, comparables or appraisals and/or Work
write-ups. The original Grant Documents shall be executed and acknowledged, where
appropriate, by the Agency and by the Qualified Homeowner, shall be for the benefit of the
Agency and shall be delivered by the Contractor to the Agency in connection with each Grant
made by the Agency to the Qualified Homeowner.
15. The Contractor shall also provide quarterly reports to the Agency, or as otherwise
required by the Agency, upon the request of the Executive Director to the Contractor.
16. From time to time, the Agency and the Contractor shall coordinate inspection of the
Improvements and/or of the Work at the Qualified Homeowner's Home to ensure that the
Improvements and/or the Work are performed, installed, constructed and completed in a good
workmanlike manner and in accordance with all applicable Laws.
17. The Contractor shall provide any and all services required by the Executive Director in
order to effectively implement and complete the Services under this Agreement.
4825-1757-9267.1
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CDC/2009-33
AMENDMENT NO.1
HOME AGREEMENT
(2007-2010 HOME Funds)
(Neighborhood Housing Services of the Inland Empire, Inc.)
THIS AMENDMENT NO.1 (the "First Amendment"), dated as of July 6, 2009, by and
between the Redevelopment Agency of the City of San Bernardino, a public body, corporate and
politic (the "Agency") and the Neighborhood Housing Services of the Inland Empire, Inc., a
California nonprofit corporation ("NHS" or NHSIE") amends the HOME Agreement, dated June
4, 2007 (the "Original Agreement"), by and between the Agency and "NHS". The Agency and
NHS agree as follows:
RECITALS
WHEREAS, the Agency and NHS have previously entered into the Original Agreement
(which Original Agreement includes Exhibit "A" attached thereto) wherein NHS has agreed,
without limitation, to develop, manage and support the Homebuyer Education Program for low-
and moderate-income households in the City of San Bernardino (the "City"), in the County of
San Bernardino (the "County"), in the State of California (the "State"), in accordance with and
pursuant to the terms, covenants and conditions of the Agreement; and
WHEREAS, the Agency and NHS desire to amend the Original Agreement pursuant to
the terms, covenants and conditions of this First Amendment (the Original Agreement, as
amended by this First Amendment shall collectively be referred to as the "Agreement"); and
WHEREAS, the Agency and NHS have determined and agreed that this First
Amendment benefits both the Agency and NHS.
NOW, THEREFORE, IN CONSIDERATION OF THE RECITALS MENTIONED
ABOVE, THE MUTUAL PROMISES OF THE AGENCY AND NHS IN THIS AGREEMENT
AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND
SUFFICIENCY OF WHICH ARE HEREBY ACKNOWLEDGED BY THE AGENCY AND
BY NHS, THE AGENCY AND NHS AGREE AS FOLLOWS:
1. Recitals. The above Recitals of this First Amendment shall be incorporated
herein by this reference.
2. Definitions. Initially capitalized terms in this First Amendment shall have the
meanings provided for in the Original Agreement except for those terms specifically defined in
this First Amendment.
3. Title of the Original Agreement. The title of the Original Agreement shall be
changed from: "2007 HOME AGREEMENT (2007-2010 HOME Funds)" to "2007
HOMEBUYER EDUCATION PROGRAM AGREEMENT (2007-2010 HOME Funds)."
4846-9953-4851.1 1
CDC/2009-33
4. Introductorv Paragraoh. In line one (I) on page one (I) of the introductory
paragraph to the Original Agreement, the words "THIS HOME AGREEMENT ("Agreement") is
made and entered into this 4th day of June 2007, by" shall be deleted in their entirety and
replaced by the following words: "THIS HOMEBUYER EDUCATION PROGRAM
AGREEMENT (the "Agreement") is made and entered into this 4th day of June 2007, by".
5. Hold Harmless. In Article II, Scope of Services and Compensation, Section C,
Other Program Requirements, Hold Harmless, Page 3 of the Original Agreement, the "Hold
Harmless" provision shall be deleted in its entirety and replaced by the following:
"Indemnification. NHS agrees to indemnify, defend with legal counsel reasonably
acceptable to the Agency, protect and hold the City and the Agency, and their respective
directors, officers, members, managers, consultants, contractors, employees, agents and
attorneys, and the successors and assigns of each of them (singularly and collectively, the
"Indemnified Parties" which defined term shall also includes the City and the Agency), harmless
from and against all actions, causes of action, claims, demands, liabilities, damages, losses,
liabilities, obligations, judgments, suits, costs, expenses and fees (including, without limitation,
reasonable attorneys' fees, court costs and expert fees of any nature whatsoever), now or
hereafter arising from or related to: (i) any act or omission of NHS and/or of any of NHS's
directors, officers, members, managers, consultants, contractors, subcontractors, materialmen,
laborers, any other person or entity furnishing or supplying work, services, goods, or supplies in
connection with the performance of this Agreement, employees and agents, and the successors
and/or assigns of each of them (singularly and collectively, the "Indemnifying Parties" which
defined term shall also include NHS), in performing, or failing to perform, its obligations
hereunder, (ii) any default by NHS under this Agreement, subject to any applicable cure period,
(iii) any violation by any of the Indemnifying Parties of any applicable federal, state, municipal
or local laws, statutes, codes, regulations, ordinances, rules, decrees, orders, or any requirements
of any government authority, now or hereafter in existence, as amended from time to time,
including, without limitation, any laws environmental laws (collectively, the "Laws"), (v) any
warranty or representation made in this Agreement that becomes false and untrue, (vi) death,
bodily injury and/or personal injury to any person, and/or (vii) any destruction, loss or damage to
real property or personal property. This indemnification provision shall survive the execution,
delivery, performance and/or termination of this Agreement. Without limiting NSH's
indemnification of the Indemnified Parties, NHS shall provide and maintain, at its sole cost and
expense during the during of this Agreement, the insurance described below covering, without
limitation, the operations ofNHS. Such insurance shall be provided by insurer(s) satisfactory to
the Agency and evidence of such insurance satisfactory to the Agency shall be delivered to the
Interim Executive Director of the Agency and/or to his designee no later than the effective date
of this Agreement."
6. General Liabilitv. In Article 11, Scope of Services and Compensation, Section C,
Other Program Requirements, General Liability, Page 3 of the Original Agreement, the "General
Liability" provision shall be deleted in its entirety and replaced by the following:
4846-9953-4851 I
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CDC/2009-33
"Insurance. No later than the effective date of this Agreement, NHS shall pay,
procure and maintain during the term of this Agreement the insurance policies and insurance
coverage provided for herein and shall furnish, or shall cause to be furnished, to the Agency
duplicate originals or appropriate certificates of the following insurance: (i) commercial
indemnity and liability insurance in the amount of One Million Dollars ($1,000,000.00)
combined single limit per occurrence, naming the Agency and the City and the elected officials,
officers, employees, attorneys and agents of each of them as additional insureds (collectively, the
"Additional Insureds") with said insurance covering comprehensive general liability including,
but not limited to, contractual liability, acts of subcontractors, premises-operations, explosion,
collapse and underground hazards, if applicable, broad form property damage, and personal
injury including libel, slander and false arrest, (ii) comprehensive automobile liability insurance
covering owned, non-owned and hired vehicles, combined single limit in the amount of One
Million Dollars ($1,000,000.00) per occurrence, (iii) workers' compensation insurance in such
insurance coverage amounts as statutorily required and employer's liability insurance, combined
single limit in the amount of $1,000,000, and (iv) errors and omissions and professional liability
insurance, combined single limit in the amount of One Million Dollars ($1,000,000) per
occurrence. Any and all insurance policies required hereunder shall be obtained trom insurance
companies admitted in the State of California and rated at least A: XII in the most current Best's
Key Rating Insurance Guide. All said insurance policies shall provide that they may not be
canceled unless the Agency and the City recei ve written notice of cancellation at least thirty (30)
calendar days prior to the effective date of cancellation. Any and all insurance obtained by NHS
shall be primary to any and all insurance which the Agency and/or City may otherwise carry,
including self insurance, which for all purposes of this Agreement shall be separate and apart
trom the requirements of this Agreement. Appropriate insurance means those insurance policies
approved by Agency Counsel consistent with the foregoing. Any and all insurance required
hereunder shall be maintained and kept in force during the term of this Agreement. NHS waives
subrogation and agrees that NHS and the Agency and the City are co-insured. NHS will cause
each insurance carrier obtained by it to waive any subrogation claim. The insurer shall have no
right of subrogation against the Agency, against the City or against any other Additional
Insureds. The Agency, the City and the other Additional Insureds shall be named as additional
insureds on each insurance policy,"
7. Attornev's Fee. In Article I1I, Section D, Attorney's Fees, Page 5 of the Original
Agreement, all references to the word "attorney's" shall be deleted in their entirety and replaced
with the following word: "attorneys"'.
8. Exhibit "A". In Article I, Section A, Page 7 of the Original Agreement the
number "227" shall be deleted in its entirety and replaced by the number "300".
9. Exhibit "A". In Article I, Section B, Page 7 of the Original Agreement, the last
sentence in Section B shall be deleted in its entirety and replaced with the following last
sentence: "A total of not less than nine (9) public or private businesses and/or organizations per
year will be targeted in the City of San Bernardino."
10. Exhibit "A". In Article I, Section D, Page 7 of the Original Agreement, Section D
will be deleted in its entirety and replaced by the following: "NHS shall train a minimum of one
4846-9953-4851.1
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CDC/2009-33
thousand two hundred (1,200) potential homebuyers per year. From this total a minimum of
three hundred (300) participants shall be trained who either reside in or work in the City of San
Bernardino. "
II. Exhibit "A". On Page 7 of the Original Agreement, the following new Section
"E" shall be added to Article I of Exhibit "A".
"Section E. NHS shall heavily target and market to San Bemardino residents and
shall regularly track the number of Homebuyer Education Program participants who eventually
become homeowners within the City of San Bernardino. NHS shall provide the City and the
Agency with monthly reports detailing, without limitation, the participants and the families
completing the Homebuyer Education Program and their current relationship to the City with
respect to their employment and/or to their residence within the City. Such monthly reports shall
be reasonably acceptable to the Agency and to the City and shall include, without limitation, the
number of families purchasing a home within the City."
12. Miscellaneous Provisions. This Agreement cancels and supersedes the HOME
Agreement (2000-2003), dated January 22,2001, as executed by and between the Agency and
NHS, as amended by the Amendment No. I HOME Agreement (2000-2003), dated January 20,
2004, as executed by and between the Agency and NHS, as further amended by the Amendment
No.2 HOME Agreement (2000-2003), dated May 21, 2007, as executed by and between the
Agency and NHS. Further, the Agency and NHS restate and reaffirm the Original Agreement
except as modified by this First Amendment. All terms of the Original Agreement remain in full
force and effect except as modified by this First Amendment. In the event of any inconsistency,
contradiction or ambiguity in the Original Agreement and in the First Amendment, the
inconsistency, contradiction or ambiguity shall be resolved in favor of the First Amendment.
The Agency and NHS have the authority to execute, deliver and perform this First Amendment
and the parties executing this First Amendment on behalf of the Agency and NHS have the
authority to bind the Agency and NHS to this First Amendment.
IN WITNESS WHEREOF, the parties have caused this Amendment No. I to the Original
Agreement to be executed as of the day and year first written above.
NHS
Dated/p ~ q luc;
,
Neighborhood Housing Services of the
Inland Empire, Inc.,
a California nonprofit corporation
B" / ~----
Name://e: .. .-7. I-(CVtfL
Its: C.:ur~I,J<- Pf/,"'Cfcr
4846-9953-4851.1
4
Dated: /} -t~ -07
Approved As To Form and Content
\/~
Agency Alfu y
4&46-9953-485].1
CDC/2009-33
AGENCY
Redevelopment Agency of the
City of San Bernardino,
a public body, corporate and politic
By: ~~ ~.
Emil A. Marzullo, Interim Executive Director
5