HomeMy WebLinkAboutCDC/2009-68
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(NOTE: COMPANION RESOLTUION 2009-384)
RESOLUTION NO. cDc/2009-68
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 AMENDMENT NO. 1 TO THE 2009
NEIGHBORHOOD STABILIZATION PROGRAM MASTER AGREEMENT
BY AND BETWEEN THE AGENCY AND MARY ERICKSON
COMMUNITY HOUSING, INC., A CALIFORNIA NONPROFIT PUBLIC
BENEFIT CORPORATION ("DEVELOPER"), AND AMENDMENT NO.1
TO THE 2009 NEIGHBORHOOD STABILIZATION PROGRAM SUB-
RECIPIENT AGREEMENT BY AND BETWEEN THE AGENCY AND
AFFORDABLE HOUSING SOLUTIONS OF SAN BERNARDINO, INC., A
CALIFORNIA NONPROFIT PUBLIC BENEFIT CORPORATION ("SUB-
RECIPIENT")
12 WHEREAS, on July 20,2009, the Community Development Commission of the City of San
13 Bernardino ("Commission") approved the 2009 Neighborhood Stabilization Program Developer
14 Master Agreement ("Master Agreement") between the Agency and the Developer; through which the
15 Developer was charged to implement the Neighborhood Stabilization Program ("NSP") activity
16 known as the Housing Opportunities for Households at or below 50% of AMI (the "Rehabilitation
17 and Rental Program"); and
18 WHEREAS, the Agency deems it desirable to enter into Amendment No. 1 to the Master
19 Agreement ("Master Amendment No.1") in the form as attached hereto as Exhibit "A" with the
20 Developer to provide an additional $520,000 in NSP funds and an additional $1,000,000 in Tax
21 Increment Housing Set-Aside Funds ("Low and Moderate Income Funds") for the purpose of
22 acquiring, rehabilitating and operating identified 4-plex, multi-family, residential properties within
23 the City in furtherance of the Rehabilitation and Rental Program as defined in the Master
24 Agreement; and
25 WHEREAS, the Agency is desirous of assisting the Developer in implementing the
26 Rehabilitation and Rental Program and has previously provided $2,100,000 in NSP funding and
27 $1,000,000 in Low and Moderate Income Funds in support of this program; and
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CDC/2009-68
1 WHEREAS, The Developer has obligated as of the effective date of this Resolution 58% of
2 the original funding provided by the Agency after having acquired four (4) of twenty-five (25)
3 targeted properties as identified in the Master Agreement; and
4 WHEREAS, on September 21, 2009 the Commission approved the 2009 Neighborhood
5 Stabilization Program Sub-Recipient Agreement ("Sub-Recipient Agreement"), through which the
6 Sub-recipient, Affordable Housing Solutions of San Bernardino, Inc, a California non-profit
7 corporation, was charged with acquiring properties in furtherance of the Neighborhood Stabilization
8 Program ("NSP") activity known as the Acquisition and Demolition Program for future
9 development (the "Demolition Program") and with acquiring properties that could not be purchased
10 with NSP funding for the purpose of demolishing them or rehabilitating them (the "Acquisition
11 Program"); and
12 WHEREAS, the Agency deems it desirable to enter into Amendment No. I to the Sub-
13 Recipient Agreement ("Sub-Recipient Amendment No. I") in the form as attached hereto as Exhibit
14 "B" with the Sub-Recipient to provide an additional $400,000 in NSP funds and an additional
15 $1,000,000 in Low and Moderate Income Funds for the purpose of acquiring and demolishing
16 identified 4-plex, multi-family, residential properties within the City in furtherance of the
17 Demolition Program, and an additional $500,000 in funding from the HOME Investment
18 Partnerships Program ("HOME") for the purpose of acquiring small residential properties m
19 furtherance of the Acquisition Program, as defined in the Sub-Recipient Agreement; and
20 WHEREAS, the Agency is desirous of working with the Sub-Recipient in acqumng
21 properties for the Demolition Program and the Acquisition Program and has previously provided
22 $600,000 in NSP funding, $1,000,000 in Low and Moderate Income Funds and $2,000,000 m
23 HOME Funds support of these programs; and
24 WHEREAS, the Sub-Recipient has obligated as of the effective date of this Resolution 37%
25 of the original NSP funding provided by the Agency after having acquired four (4) of forty (40)
26 blighted properties identified as eligible for acquisition and demolition, to date, by the Agency; and
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CDCj2009-68
1 WHEREAS, the expenditure rate for the Rehabilitation and Rental Program and the
2 Demolition Program as described above indicate that the Developer and the Sub-Recipient will need
3 additional funding in order to complete their respective programs; and
4 WHEREAS, the U.S. Department of Housing and Urban Development ("HUD") has
5 concurred that the Public Notice published by the Agency informing the public of the re-allocation
6 ofNSP funds as proposed in this Resolution, satisfies HUD noticing requirements, provided that the
7 Agency does not exceed the revised NSP funding levels stated in the Public Notice; and
8 WHEREAS, the Agency has determined that the execution of the Rehabilitation and Rental
9 Program pursuant to the Master Agreement and Master Amendment No. I and the fulfillment
10 generally of the purposes of the Master Agreement are in the vital and best interests of the City and
11 the Agency; and
12 WHEREAS, the Agency has determined that the execution of the Demolition Program and
13 the Acquisition Program pursuant to the Sub-Recipient Agreement and Sub-Recipient Amendment
14 No. I and the fulfillment generally of the purposes of the Sub-Recipient Agreement are in the vital
15 and best interests of the City and the Agency.
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17 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE
18 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS
19 FOLLOWS,
20 Section 1. The facts set forth in the Recitals to this Resolution are accurate and correct in all
21 respects.
22 Section 2. The Community Development Commission of the City of San Bernardino
23 ("Commission") hereby approves Master Amendment No.1 and Sub-Recipient Amendment No. I
24 and hereby authorizes the Interim Executive Director of the Redevelopment Agency of the City of
25 San Bernardino to execute both Master Amendment No. I and Sub-Recipient Amendment No. I on
26 behalf of the Agency together with such technical and conforming changes as may be recommended
27 by the Executive Director of the Agency and approved by the Agency Counsel.
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This Resolution shall take effect from and after its date of adoption by this
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CDC/2009-68
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 AMENDMENT NO. 1 TO THE 2009
NEIGHBORHOOD STABILIZATION PROGRAM MASTER AGREEMENT
BY AND BETWEEN THE AGENCY AND MARY ERICKSON
COMMUNITY HOUSING, INC., A CALIFORNIA NONPROFIT PUBLIC
BENEFIT CORPORATION ("DEVELOPER"), AND AMENDMENT NO.1
TO THE 2009 NEIGHBORHOOD STABILIZATION PROGRAM SUB-
RECIPIENT AGREEMENT BY AND BETWEEN THE AGENCY AND
AFFORDABLE HOUSING SOLUTIONS OF SAN BERNARDINO, INC., A
CALIFORNIA NONPROFIT PUBLIC BENEFIT CORPORATION ("SUB-
RECIPIENT")
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community
of the City of San Bernardino at a meeting thereof, held on the
, 2009, by the following vote to wit:
Aves Navs Abstain Absent
X
X
-
X
-1L-
X
X
~ X
21 sec'lry
22 The foregoing Resolution is hereby approved this 1-Y_dayof Decemher
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,2009.
,
atrick. orris, rperson
nity Development Commission
of the City of San Bernardino
Approved as to Form:
27 tIlJ-
28 By: \~~~se'i
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Pc\Agendas\Resolutions\Resolulions'.l009\12-21-09 Funding Reallocation - MECH AHS Substantial Amendment CDC Rew (Fio,l)_doc
1 EXHIBIT "A"
2 Master Amendment No.1
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CDC/2009-68
AMENDMENT NO.1
TO THE
NEIGHBORHOOD STABILIZATION PROGRAM
DEVELOPER MASTER AGREEMENT
BY AND BETWEEN
THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
AND
MARY ERICKSON COMMUNITY HOUSING, INC.
This Amendment No. I to the Neighborhood Stabilization Program Master Agreement (this
"Amendment No. I") is entered into on December 21, 2009, by and between the Redevelopment
Agency of the City of San Bernardino (the "Agency"), a public body, corporate and politic, and Mary
Erickson Community Housing, Inc., a California nonprofit public benefit corporation (the
"Developer"), and is entered into in consideration of the facts set forth in the following Recital
paragraphs:
-RECITALS-
A. The Developer and the Agency have previously entered into an agreement entitled
"Neighborhood Stabilization Program Developer Master Agreement", dated as of July 20, 2009 (the
"Master Agreement"), through which the Developer was charged to implement the Neighborhood
Stabilization Program ("NSP") activity known as the Housing Opportunities for Households at or
below 50% of AMI (the "Rehabilitation and Rental Program").
B. The Agency is desirous of assisting the Developer in implementing the Rehabilitation
and Rental Program and has previously provided $2,100,000 in NSP funding and $1,000,000 in Tax
Increment Housing Set-Aside Funds ("Low and Moderate Income Funds") for the purpose of
acquiring, rehabilitating and operating identified 4-plex, multi-family, residential properties within the
City as stipulated in the Master Agreement.
C. The Developer has obligated as of the effective date of this Amendment No. I a
majority of the original funding provided by the Agency after having acquired four (4) of twenty-five
(25) targeted properties as identified in the Master Agreement. Specifically, the Developer has
obligated 41 % of its original NSP funding allocation and 93% of its original Low and Moderate
Income Funds, which represents a combined average of 58% of its total original funding.
D. The expenditure rate for the Rehabilitation and Rental Program as described in Recital
C above indicates that the Developer will need additional funding in order to complete this program.
E. The Agency has determined that the execution ofthe Rehabilitation and Rental Program
pursuant to the Master Agreement and this Amendment No. I and the fulfillment generally of the
purposes of the Master Agreement are in the vital and best interests of the City and the Agency.
I
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NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND
CONDITIONS CONTAINED HEREIN, THE AGENCY AND THE DEVELOPER AGREE AS
FOLLOWS:
Section 1. References to the Master Al!reement: Defined Terms. (a) Unless the context
of the usage of a term or phrase in this Amendment No. 1 may otherwise require, the meaning of
words and phrases as contained in this Amendment No.1, which are indicated by an initially
capitalized letter, shall be the same as set forth in the Master Agreement.
(b) The information contained in the Recitals as set forth in this Amendment No. I is true and
correct in all respects.
Section 2. Specific Amendments to the Master Al!reement. (a) The Master Agreement
is hereby amended by this Amendment No. 1 in the manner as indicated in this Section 2 and which
changes and amendments shall be effective from and after the date of approval of this Amendment No.
I by the Developer and the Agency and execution hereofby the parties.
(b) Section 4.C. of the Master Agreement is hereby amended by adding the following
paragraph at the end of said Section:
"If deemed necessary for the continuation of the Project, the Agency may, in its sole discretion,
provide additional NSP funding equal to $520,000 and Low and Moderate Income Funds equal to
$1,000,000 to the Developer pursuant to this Agreement."
Section 3. Effect of Amendment No.1. Except as modified or amended by this
Amendment No. I, all of the provisions of the Master Agreement shall remain in full force and effect
following the effective date of this Amendment No. I.
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CDC/2009-68
IN WITNESS WHEREOF, the parties hereto have accepted and made and executed this
Amendment No. I upon the terms and conditions and with the provisions as set forth above and as of
the date first written above.
AGENCY
Redevelopment Agency of the City of San Bernardino,
a public body, corporate and politic
;f~CjP
Date: d/;h//O
By:
Emil A. Marzullo, Interim Executive Director
Approved as to Form and Legal Content:
By:
,,~~~~
Agency ounse
DEVELOPER
Mary Erickson Community Housing, Inc.,
a California nonprofit public benefit corporation
Date:
1/2.6/10
~ (flU
By:
Title: f'Ycl,lti,e Dr!'th>r
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EXHIBIT "B"
Sub-Recipient Amendment No. I
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CDC/2009-68
AMENDMENT NO.1
TO THE
NEIGHBORHOOD STABILIZATION PROGRAM
SUB-RECIPIENT AGREEMENT
BY AND BETWEEN
THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
AND
AFFORDABLE HOUSING SOLUTIONS OF SAN BERNARDINO, INC.
This Amendment No. I to the Neighborhood Stabilization Program Sub-Recipient Agreement
(this "Amendment No. I") is entered into on December 21,2009, by and between the Redevelopment
Agency of the City of San Bernardino (the "Agency"), a public body, corporate and politic, and
Affordable Housing Solutions of San Bernardino, Inc., a California non-profit public benefit
corporation (the "Sub-Recipient"), and is entered into in consideration of the facts set forth in the
following Recital paragraphs:
-RECIT ALS-
A. The Sub-Recipient and the Agency have previously entered into an agreement entitled
"Neighborhood Stabilization Program Sub-Recipient Agreement", dated as of September 21,2009 (the
"Sub-Recipient Agreement"), through which the Sub-Recipient was charged with acquiring properties
in furtherance of the Neighborhood Stabilization Program ("NSP") activity known as the Acquisition
and Demolition for future development program (the "Demolition Program") and with acquiring
properties that could not be purchased with NSP funding for the purpose of demolishing them or
rehabilitating them (the "Acquisition Program").
B. The Agency is desirous of working with the Sub-Recipient in acquiring properties for
the Demolition Program and has previously provided $600,000 in NSP funding and $1,000,000 in Tax
Increment Housing Set-Aside Funds ("Low and Moderate Income Funds") for the purpose of acquiring
and demolishing identified 4-plex, multi-family. residential properties within the City as stipulated in
the Sub-Recipient Agreement.
C. The Sub-Recipient has obligated as of the effective date of this Amendment No. I a
significant portion ofthe original NSP funding provided by the Agency after having acquired four (4)
of forty (40) properties identified as eligible for acquisition and demolition, to date, by the Agency.
This translates to an expenditure of 37% of the Agency's original NSP funding allocation, and there
still remains abundant opportunity for the Agency to acquire and demolish blighted properties in the
City.
D. The expenditure rate for the Demolition Program as described in Recital C above
indicates that the Sub-Recipient will need additional funding in order to complete the Demolition
Program.
I
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E. The Agency is desirous of working with the Sub-Recipient in acquiring properties for
the Acquisition Program and has previously provided $2,000,000 in funding from the HOME
Investment Partnerships Program ("HOME") for the purpose of acquiring and demolishing or
rehabilitating small residential properties throughout the City of San Bernardino that are in a state of
disrepair and are not eligible for acquisition using NSP funding.
F. The Agency has determined that the execution of the Demolition Program and the
Acquisition Program pursuant to the Sub-Recipient Agreement and tms Amendment No. I and the
fulfillment generally of the purposes of the Sub-Recipient Agreement are in the vital and best interests
of the City and the Agency.
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND
CONDITIONS CONTAINED HEREIN, THE AGENCY AND THE SUB-RECIPIENT AGREE AS
FOLLOWS:
Section 1. References to the Sub-Redoient Aereement; Defined Terms. (a) Unless the
context of the usage of a term or phrase in this Amendment No. I may otherwise require, the meaning
of words and phrases as contained in this Amendment No. I, which are indicated by an initially
capitalized letter, shall be the same as set forth in the Sub-Recipient Agreement.
(b) The information contained in the Recitals as set forth in this Amendment No. I is true and
correct in all respects.
Section 2. Soedfic Amendments to the Sub-Redoient Aereement. (a) The Sub-
Recipient Agreement is hereby amended by this Amendment No. I in the manner as indicated in this
Section 2 and which changes and amendments shall be effective from and after the date of approval of
this Amendment No. I by the Sub-Recipient and the Agency and execution hereof by the parties.
(b) Section 5.B. of the Sub-Recipient Agreement is hereby amended by adding the following
at the end of said Section:
Additional amounts allocated to Sub-Redoient as of 12/21/09:
Source of Funds:
Dollar Amouut:
Low and Moderate Income Housing Fuuds
(acquisition ofnon-NSP properties and
demolition)
$1,000,000
NSP (Demolition)
$400,000
HOME
$500,000
Section 3. Effect of Amendment No.1. Except as modified or amended by this
Amendment No. I, all of the provisions of the Sub-Recipient Agreement shall remain in full force and
effect following the effective date oftms Amendment No. I.
III
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IN WITNESS WHEREOF, the parties hereto have accepted and made and executed this
Amendment No. I upon the terms and conditions and with the provisions as set forth above and as of
the date first written above.
AGENCY
Redevelopment Agency of the City of San Bernardino,
a public body, corporate and politic
Date:
4--&-10
By:
Emil A. Marzullo, Interim Executive Director
~<-~
Approved as to Form and Legal Content:
By: \/'~
Agency Co sel
SUB-RECIPIENT
Affordable Housing Solutions of San Bernardino, Inc.,
a California non-profit public benefit corporation
Date:
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