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HomeMy WebLinkAboutCDC/2009-71 r I 1 2 3 4 5 6 7 8 9 RESOLUTION NO. GDG/2009-71 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 THE 2009 MEMORANDUM OF UNDERSTANDING BY AND BETWEEN THE AGENCY AND ECCLESIA'S ECONOMIC & COMMUNITY DEVELOPMENT COLLABORATION (EECDC AFFORDABLE HOUSING PROGRAM) WHEREAS, it is one of the goals of the Redevelopment Agency of the City of San Bernardino ("Agency") to create affordable housing opportunities within the City of San Bernardino to ("City") for low and moderate income households; and 11 12 WHEREAS. it is also an Agency goal to build housing development capacity among local non-profit affordable housing developers; and 13 14 WHEREAS, the Agency has access to financial resources from several sources, including the Neighborhood Stabilization Program, tax-increment housing set-aside funds, and HOME funds 15 for the specific purpose of creating affordable housing opportunities for low and moderate income 16 households in the City; and 17 18 WHEREAS, Ecclesia's Economic & Community Development Collaboration ("EECDC") is a local non-profit public benefit corporation organized for the specific purpose of creating housing 19 and community development opportunities within the City; and 20 21 WHEREAS, EECDC is embarking on a program to acqmre residential properties and redevelop these properties into affordable housing for low and moderate income households (the 22 "EECDC Affordable Housing Program"); and 23 24 WHEREAS, EECDC has been designated a Community Housing Development Organization ("CHDO") by the United States Department of Housing and Urban Development 25 ("HUD"), and as such, it is eligible to receive HOME funding for specific housing developments; 26 and 27 28 P:\Al.lcndasIResolotionsIKewh'iinn.\:"O()')\12-:' I-O'l Ecdes;,'s - Memorandum ofl'nd."tandinH rDC Reso,doc CDC/2009-71 1 WHEREAS, the Agency and EECDC (collectively, the "Parties") recognize an opportunity 2 to acquire residential properties at a favorable price under current housing market conditions in the 3 City for the purpose of implementing the EECDC Affordable Housing Program; and 4 WHEREAS, the parties to the Memorandum of Understanding ("MOU") recognize that this 5 MOU is a statement of the present intent of the parties as to the subject matter hereof and that 6 subsequent agreements by and between one or more of the parties shall be required at later dates to 7 implement certain aspects of the EECDC Affordable Housing Program, and such subsequent 8 agreements shall be approved and entered into at the discretion of the parties prior to the 9 undertaking of acquisition of properties or otherwise entering into binding commitments to proceed 10 with any aspect of the EECDC Affordable Housing Program; and 11 WHEREAS, such future agreements, should they occur, shall require the approval of the 12 Community Development Commission of the City of San Bernardino ("Commission"). 13 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE 14 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS 15 FOLLOWS: 16 Section 1. The facts set forth in the Recitals to this Resolution are accurate and correct in all 17 respects. 18 Section 2. The Commission hereby approves the MOU and hereby authorizes the Interim 19 Executive Director of the Agency to execute the MOU on behalf of the Agency together with such 20 techuical and conforming changes as may be recommended by the Interim Executive Director of the 21 Agency and approved by the Agency Counsel. 22 Section 3. 23 Commission. 24 III 25 III 26 III 27 III 28 III This Resolution shall take effect from and after its date of adoption by this 2 P:\Agenda,\ResolulionslResolution,\2009\12-21...o9 Ecclesia's - Memorandum of Under SIan ding CDC Reso.doc 1 2 3 4 5 6 7 CDC/2009-71 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 THE 2009 MEMORANDUM OF UNDERSTANDING BY AND BETWEEN THE AGENCY AND ECCLESIA'S ECONOMIC & COMMUNITY DEVELOPMENT COLLABORATION (EECDC AFFORDABLE HOUSING PROGRAM) I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community 8 Development Commission of the City of San Bernardino at a joint regular meeting 9 thereof, held on the 21 s t day of DpC'pmhpr ,2009, by the following vote to wit: 10 Commission Members: Aves Navs Abstain Absent 11 ESTRADA --1L BAXTER X 12 BRINKER X 13 SHORETT X 14 KELLEY X 15 JOHNSON X 16 MC CAMMACK X 17 18 19 ~~ Secretary 20 21 The foregoing Resolution is hereby approved this J.-~ay of LJ.e<!en7be.-r- 22 23 24 25 ,2009. atric J. Morris, erson unity Development Commission of the City of San Bernardino 26 Approved as to Form: 27 t#- 28 By: ~ Agency Co sel 3 P:\AgendasIResol",ionsIRe,nlulion,\2009\12-21-09 Ecclesia', _ Memorandum of Under_'landing CDC Re<o.doc CDC/2009-71 2009 MEMORANDUM OF UNDERSTANDING BY AND BETWEEN ECCLESIA'S ECONOMIC & COMMUNITY DEVELOPMENT COLLABORATION AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (ACQUISITION AND REDEVELOPMENT OF RESIDENTIAL PROPERTIES) DATED AS OF DECEMBER 21, 2009 CDC/2009-71 2009 MEMORANDUM OF UNDERSTANDING (Acquisition and Redevelopment of Residential Properties) This 2009 Memorandum of Understanding (this "MOU") is dated as of December 21, 2009 (the "Effective Date"), and is entered into by and betwecn Ecclesia's Economic & Community Development Collaboration, a California 501(c)(3) public benefit corporation CEECDC") and the Redevelopment Agency of the City of San Bernardino (the "Agency"), a public body, corporate and politic, being a community redevelopment agency existing pursuant to the Health & Safety Code of the State of California, and this MOU is entered into with respect to the following facts set forth in the Recitals: -- RECITALS -- WHEREAS, it is one of the Agency's goals to create affordable housing opportunitics within the City of San Bernardino CCity") for low and moderate income households; and WHEREAS, it is also an Agency goal to build housing development capacity among local non-profit affordable housing developers; and WHEREAS, the Agency has access to financial resources from several sources, including the Neighborhood Stabilization Program, tax-increment housing set-aside funds, and HOME funds for the specific purpose of creating affordable housing opportunities for low and moderate income households in the City; and WHEREAS, EECDC is a local non-profit public benefit corporation organized for the specific purpose of creating housing and community development opportunities within the City; and WHEREAS, EECDC is embarking on a program to acquire residential properties and redevelop these properties into affordable housing for low and moderate income households (the "EECDC Affordable Housing Program"); and WHEREAS, EECDC has been designated a Community Housing Development Organization CCHDO") by the United States Department of Housing and Urban Development CHUD"), and as such, it is eligible to receive HOME funding for specillc housing developments; and WHEREAS, the parties to this MOU recognize an opportunity to acquire residential properties at a favorable price under current housing market conditions in the City for the purpose of implementing the EECDC Affordable Housing Program; and WHEREAS, the parties to this MOU recognize that this MOU is a statement of the present intent of the parties as to the subject matter hereof and that subsequent agreements by and between one or more of the parties shall be required at later dates to implement certain aspects of the EECDC Affordable Housing Program, and such subsequent agreements shall be approved and entered into at the discretion of the parties prior to the undertaking of acquisition 1 P:\Agenda,IAgeml" AllachmcnL<\Agcnda Att.chment.,\Agmm-Amelld 20mI12-21-09 Eccles;.', - Memorandum ofUnderstandil1g doc CDC/2009-71 of properties or otherwise entering into binding commitments to proceed with any aspect of the EECDC Affordable Housing Program; and WHEREAS, such future agreements, should they occur, shall require the approval of the Community Development Commission of the City of San Bernardino ("Commission"). NOW, THEREFORE, ECCLESIA'S ECONOMIC & COMMUNITY DEVELOPMENT COLLABORATION AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO DO HEREBY MUTUALLY AGREE AS FOLLOWS: Section 1. Recitals. The parties acknowledge and agree that the recitals as set forth above are accurate and correct in all respects. Section 2. Accomolishment of Public PUffioses. The parties acknowledge and agree that this MOU provides EECDC and the Agency with a means to identify and acquire certain eligible residential properties within the City and to create strategies to redevelop these properties as affordable housing for low and moderate income residents. The parties recognize the duties and responsibilities as provided in Sections 3 and 4 of this MOD. EECDC and the Agency shall jointly be responsible for identifying residential properties eligible for acquisition within the City. The Agency, in turn shall provide funding from the various funding sources named above for the acquisition of those properties identified by EECDC and the Agency for redevelopment as affordable housing. EECDC and the Agency shall work together to redevelop the acquired properties potentially involving third-party vendors, advisors and/or general contractors. Each potential redevelopment opportunity shall be subject to the approval of the Commission. Section 3. Duties and Resoonsibilities ofEECDC. (a) EECDC shall have the following primary responsibilities III implementing the EECDC Affordable Housing Program: (i) to identify residential properties within the City that can be redeveloped as affordable housing for low and moderate income households in cooperation with the Agency; (ii) to present and seek approval from the Agency for any residential properties that it has identified as potential acquisition candidates under the EECDC Affordable Housing Program; (iii) to manage the escrow process and fulfill any documentation requirements needed to acquire those properties approved for acquisition by the Agency; (iv) to be the owner of record for any properties identified for acquisition under the EECDC Affordable Housing Program; and (v) to work jointly with the Agency to formulate a plan for the redevelopment of the acquired properties, and to execute the redevelopment of the acquired properties. 2 1';\Agend.i\Allenda Auachmenls\Agenda AtlachmemslAgrmls-Amend 2009\12-21-09 Ecclesi.', - Memorandum of Under SIan ding, doc CDC/2009-71 (b) It is intended that EECDC will likely retain the ownership of all properties acquired under the EECDC Affordable Housing Program. After a property has been acquired, it is intended that EECDC will manage the redevelopment of the properties and either re-sell the property in the case of for-sale single family projects or arrange for the professional management of the acquired property in the case of rental projects. It is further intended that EECDC will be paid a developer's fee for each rehabilitated property that it redevelops and re- sells or manages. The amount and terms of such developer's fee shall be a function of that certain project to be determined by both parties at a future date. Section 4. Duties and Resoonsibilities of the Agencv. (a) The Agency shall have the following primary responsibilities in implementing the EECDC Affordable Housing Program: (i) to identifY residential properties within the City that can be redeveloped as affordable housing for low and moderate income households in cooperation with EECDC; (ii) to be the primary source of financing for the properties within the City identified for acquisition by EECDC and the Agency jointly; (iii) to work jointly with EECDC in formulating a rehabilitation plan and executing the redevelopment of the properties acquired under the EECDC Affordable Housing Program; and (iv) to make itself available to EECDC for the purposes of providing technical assistance on any aspect ofthe acquisition and redevelopment process utilized for acquiring properties under the EECDC Affordable Housing Program; and (v) to work with EECDC on the third party vendor, advisor, general contractor selection process. (b) The Agency intends to impose affordability covenants and other covenants and restrictions upon the properties acquired as a result of the EECDC Affordable Housing Program. The specific covenant terms and restrictions shall be determined to some extent by the funding sources used to acquire the property. Furthermore, the Agency intends to regularly monitor compliance as to the various properties with the Agency's covenants and restrictions. Section 5. Notices. Formal notices, demands and communications between EECDC and the Agency shall be deemed sufficiently given if (i) dispatched registered or certified mail via United State Postal Service, postage prepaid, return receipt requested, as designated in this Section 5, (ii) by personal delivery, (iii) express delivery service with written verification of delivery, or (iv) by electronic transmittal including fax transmissions with telephonic verification of receipt. Such written notices, demands and communications may be sent in the same marmer to such other addresses as any party may from time to time designate by written notice to the other parties. 3 P:\AgendasIAgenda Attachment'lAgenda AttachmentsIAgrml!;..Amend 2009\12-21-09 Eccles;a', - Memorandum of Understanding. doc CDC/2009-71 Copies of all notices, demands and communications shall be sent as follows: EECDC: Ecclesia's Economic & Community Development Collaboration Attention: Executive Director 1314 Date Street San Bernardino, CA 92404 Agency: Redevelopment Agency of the City of San Bernardino Attention: Interim Executive Director 201 North "E" Street, Suite 301 San Bernardino, California 92401 With a copy to: Redevelopment Agency of the City of San Bernardino Attention: Director of Housing and Community Development 201 North "E" Street, Suite 301 San Bernardino, California 92401 Notices which are dispatched by registered or certified mail through the United States Postal Service shall be deemed to be given three (3) business days after deposit with the United States Postal Service, and notices which are given by personal delivery shall be deemed given upon such personal deliver. Notices dispatched by express delivery service shall be deemed to have been given upon receipt by the party receiving such notice and execution of the delivery receipt, and notices dispatched through electronic transmittals shall be deemed to have given upon telephonic verification of receipt. Section 6. Indemnification and Hold Harmless. EECDC and the Agency hereby agree to indemnify, defend and hold harmless each of the other parties to this MOU and each of their officers, officials and employees from any and all loss, liability, claim, cost, expense or judgment, including attorney's fees, that may result from the implementation of this MOU by each of the respective parties for their actions and those actions or inactions as may be the direct or indirect results occasioned by each of the parties. In the event there is any legal challenge filed against one or more of the parties to this MOU based upon the approval and execution of this MOU by such party, the party named in such action, and each such additional party to this MOU if named in a such lawsuit, shall pay their own costs to defend such legal challenge as to their approval and execution of this MOU. Section 7. Term ofMOU. The Effective Date of this MOU shall commence as of the date set forth in the introductory paragraph hereof which shall be the date of the final execution and delivery of this MOU by both parties. This MOU shall continue in full force and effect for three (3) years from and after the Effective Date (the "Term") unless the Term shall have been amended to either shorten or extend the Term by the parties hereto. The Term of this MOU shall automatically terminate upon such date when either party hereto terminates participation in this MOU pursuant to Section 8 hereof. Section 8. Termination of Participation bv a Party. Either party to this MOU may terminate their participation in this MOU and their respective duties and obligations effective upon the delivery of notice to the other party. Such notice shall specify an effective date for such 4 P:\Agendas\Agenda AttachmentslAgenda Attachmenl<\Agrmts-Amend 2009\lZ_21_09 Ecclesia's - Memorandum of Understanding. doc COC/2009-71 termination of participation in this MOD which date shall be not less than thirty (30) calendar days following the receipt of written notice by the other party to this MOD, as provided in Section 5 above. No such voluntary termination by a party shall relieve such party of the obligations incurred pursuant to Section 7 for indemnification, defense and hold harmless oblations to the other party for actions or events which arose prior to the effective date of any termination by a party. Section 9. Entire Agreement of the Parties. This MOD represents the entire agreement by both EECDC and the Agency with respect to the EECDC Affordable Housing Program as set forth herein. Section 10. Governing Law: Invaliditv of Anv Provision of MOD. This MOD shall be governed by the laws of the State of California. If any provision of this MOD is determined by a court of competent jurisdiction to be invalid or unenforceable as among the parties, the remaining provisions will continue in full force and effect. Section 11. Amendments. This MOU may only be amended, changed, modified or altered by a writing signed by each of the parties and approved by the respective governing boards thereof in the manner as required by applicable law. Section 12. Aooroval and Effective Date of MOD. This MOD has been duly approved and authorized for execution and delivery by the governing board of EECDC and by the Commission on behalf of the Agency, and this MOU has been duly executed and delivered by the parties hereto. This MOD may be executed in counterparts and when fully executed by the parties it shall be effective for all purposes as of the date set forth in the introductory paragraph as defined and set forth therein as the Effective Date. 1// 1// 1// /1/ /1/ 1// 1// 1// 1// /1/ 5 P,\Agenda,IAgenda Allachrnent'V\genda Auachments\Agrmls-Arnend 2009\12-21-09 Eccle,ia', - Memorandum of Under SIan ding, doc CDC/2009-71 THIS MEMORANDUM OF UNDERSTANDING HAS BEEN DULY EXECUTED BY THE AUTHORIZED REPRESENTATIVES OF THE PARTIES HERETO AS SET FORTH BELOW. EECDC Ecclesia's Economic & Community Development Collaboration, a 501c(3) public benefit organization Date: / - 3 0 -~ 0/0 By: QJJ3 JiPIJM-M Paul Williams, President AGENCY Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic ~ Date:' 'III/Ie By: Emil A. Marzullo, Interim Executive Director Approved as to Form and Legal Content: By: Timothy J. Sa ,Agency Counsel 6 P"',Agendas\Agcnda Auachments\i\genda Al1achment,\Agrmt3-Amend 200'!\12.21_0'J E(c1",;a',. Memorandum ofLnd."landing dnc