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Home My WebLink AboutR25-Economic Development ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FROM: Maggie Pacheco, Director SUBJECT: Housing and Community Development October 30, 2000 0 Fi i ~ I' ,'w'A L AMENDMENT TO THE COUNTY/AGENCY COOPERATIVE AGREEMENT - NEIGHBORHOOD INITIATIVE PROGRAM (NIP) DATE: -------------------------..---------.-----------------.-----------------.-------..---------------------------- SvnoDsis of Previous Commission/Council/Committee Action(s): On July 13 and August 10,2000, the Redevelopment Committee approved several changes to the Cooperative/Delegate Agreement between the Agency and the County of San Bernardino regarding the Neighborhood Initiative Program (NIP), including, but not limited to, authorizing the Agency to purchase all HUD Properties within the six (6) approved NIP Target Areas. (AKA: Asset Control Areas). Recommended Motion{s): (Community Develoomcnt Commission) MOTION A: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION APPROVING THE AMENDMENT NO.1 TO THE SEPTEMBER 7, 1999 COOPERATIVE/DELEGATE AGENCY AGREEMENT BETWEEN THE COUNTY OF SAN BERNARDINO AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FOR IMPLEMENTATION OF THE NEIGHBORHOOD INITIATIVE GRANT PROGRAM (NIP). MOTION B: That the Community Development Commission authorize (1) the purchase of all HUD Properties from County of San Bernardino by the Agency within the approved NIP Target Areas 1-6; and (2) the conveyancc of the HUD Properties to approved Acquisition, Rehabilitation and Resale (ARR) Participants, as selected by Staff, (except the 49th Street properties, and those noted in Attachment "C- I") at the Approved Purchase Price and (3) the appropriation of Agency Housing Funds in an amount not too exceed $300,000 to be uscd to assist the ARR Participants with the leveraging of private rchabilitation, reconstruction funds and gap acquisition, thus allowing for the successful purchase and rehabilitation of the HUD Properties. (Motion(sl Continued to Next Pal!e....l __________________ _______________________________ _____________________________. ___________________________________ ___________________________________n___. _________________________________.____ Contact Person(s): Gary Van Osdel/Maggie Pacheco Project Arca(s) Phone: 663-1044 Ward(s): 1-7 Supporting Data Attached: 0 Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Letter/Memo FUNDING REQUIREMENTS Amount: $ 760,000 Source: Agency Housing Funds SIGNATURE: Budget Authority: 2000-2001 /0L Gary V Osdel, Executive Dir tor Eco mic Development Agency M gie Pacheco, Director Housing and Community Development Commission/Council Notes: reVAJI ~ ;,-{,oo '" 12..3/ , GVO:MP:lag:ll-06-00 Amend 1 Coop COMMISSIC ~ 11 R~s. Agenda II /.2.-1/-00 REQUEST FOR COMMISSION/COUNCIL ACTION Amendment to Cooperative Agreement October 25, 2000 Page Number -2- -------------------------------------------------------------------------------------------------------------------------- Recommended Motion(s) Continued: (Communitv Development Commission) MOTION C: That the Community Development Commission authorize (1) the Agency Executive Director to execute all appropriate acquisition documents whereby the Agency will directly purchase the properties locatcd at 263, 271, 275, & 283 East 49'h Street, NIP #5, (the "Properties") from the County of San Bernardino and (2) appropriate the sum of $460,000 from the Agency's Housing fund for the acquisition of the Properties, demolition of the Properties and for the ac~uisition of any properties which become available for sale in the future on the East 49' Street block. GYO:MP:lag: 11-06-00 Amend 1 Coop COMMISSION MEETING AGENDA Meeting Date: 11106/2000 Agenda Item Number: ~ ECONOMIC DEVELOPMENT AGENCY STAFF REPORT --------------------------------------------------------------------------------------------------------------------- Amendment No.1 to the Redevelopment A2encv and Conntv of San Bernardino Nei2hborhood Initiative Pro Ham (NIP) September 7. 1999 A2reement BACKGROUND: On July 13 and August 10, 2000, Staff provided the Redevelopment Committee with an oral and written report on the status of the NIP Agreement between the County and the Ageucy at which time staff stated that they were seeking approval from the Committee on a series of outstanding matters related to the implementation of the NIP Agreement. Specifically, Staff and the Committee discussed allowing the Agency to take the lead on the implementation of all NIP Programs and the purchase of all HUD Properties rather than the County; however, these actions would have a fiscal impact on the Agency particularly as it relates the requirement to purchase HUD Properties. See attached Mayor Valles' letters dated July 27, and October 16, 2000 and Supervisor Jerry Eaves letter dated August 24, 2000. Consequently, among other items, Staff and the Redevelopment Committee discussed the following changes to the Agreement: (1) To allow the Agency to administer and implement all of the projects and programs depicted in Exhibit "2-1" of the Amendment No.1, commencing in NIP Target Area 1. (2) To Authorize and Require the Agency to buy all HUD Properties located within the NIP target areas, including NIP Target Area I. In return, the Agency will acquire the HUD Properties (except the four (4) 49th Street fourplexes and the properties noted in attached "C-l") and concurrently re-sell them to approved ARR Participants, as determined by Staff, who will rehabilitate the properties per the ARR Agreement. The fiscal impact to the Agency of this requirement is described below. (3) To Authorize the Agency to accept donation from the County for the HUD Properties located at: 1556 Mountain View & 1662 Sierra Way to utilize for Neighborhood Housing Services Youthbuild Program (as conditionally approved by the Commission on 10/2/00) and 1379 Arrowhead to be provided to Frazee Transitional Housing Program relative to their Arden Guthrie properties. GYO:MP:lag: 11-06-00 Amend 1 Coop COMMISSION MEETING AGENDA Meeting Date: 11/06/2000 Agenda Item Number: R "!,/ Economic Development Agency Staff Report Amendment to Cooperative Agreement October 25, 2000 Page Number -2- (4) To authorize the Agency to purchase directly the four (4) four-plexes located at 263, 271,275 & 293 East 49 Street for the reasons noted below. The following will further expand on the reasons prompting the Agreement changes and additional corresponding recommendations: Discussion on GaD Financine Needed for SDecific HUD ProDerties and 49th Street ProDerties to be Directlv Purchased bv the Aeencv: The Asset Control Agreement between the County and H UD requires the County to purchase ALL HUD Properties located within the approved NIP Target Areas of San Bernardino, Highland and Redlands. In order to accomplish the acquisition of HUD Properties in the City of San Bernardino, the September 1999 Cooperation Agreement between the Agency and the County authorizes the County to buy and rehab HUD Properties in San Bernardino. Under the Cooperation Agreement, the Agency has the option, but not required, to buy HUD Properties from the County in all NIP areas, except NIP #1. However, due to a number of delays beyond the control of the Agency, staff has proposed, and County is in agreement, that it is in the best interest of the City, that the Agency be required to buy all HUD Properties in the NIP target areas as opposed to the County (see attached target area map). County Staff provided Agency Staff with a list of the HUD Properties that the County was scheduled to buy from HUD (it is important to note that other properties will more than likely be forth coming to the Agency). Many of these HUD Properties, particularly in NIP#I, have sat vacant in exccss of a year and have a variety of structural deficiencies and land use problems. Therefore, Staff enlisted the assistance of approved ARR Participants to inspect the HUD Properties and provide Staff with a written report on the condition of the property and the estimated costs to rehab the properties, etc. In several instances, it was evident that numerous properties had major code violations and are not in conformance with local and state building requirements. In fact, several of the properties lost their multiple family status and must eithcr be demolished or re-converted to single family. The majority of the properties have been vacant for longer than a year, have become targets for vandalism, squatters, and are an added unnecessary responsibility to Code Compliance; these underutilized and blighted HUD Properties have become a burden to our communities and these conditions have translated into increased maintenance and rehabilitation costs. Because the increased costs are in excess of what an ARR Participant may sell the property on the open market and what the ARR Participant is able to privately finance (ARR Participants are limited to a 10% profit per HUD regulations), it will be necessary for the Agency to financially assist some of the ARR Participants in the acquisition and rehabilitation of the HUD Properties the Agency will be required to buy from the County under Amendment No. 1. Under the Agency's traditional ARR Program, the Agency presently does not guarantee any construction loans or contribute financially to the ARR Participant's costs. ARR Participants finance 100% of all costs associated with the acquisition of .__.h___________________n______H__________________________~~____________________n__________________.nh______________n________________ GYO:MP:lag:II-06-00 Amend I Coop COMMISSION MEETING AGENDA Meeting Date: 11/06/2000 Agenda Item Number: ~ Economic Development Agency Staff Report Amendment to Cooperative Agreement October 25, 2000 Page Number -3- --------------------------------------------------------------------------------------------------------------------- HUD Properties. The Agency's contribution has been directly to the homebuyer in the form of a second 10% down payment assistance. Consequently, in the interest of eradicating these blighted influences and placing these HUD Properties back on the market in an expedient fashion, it is recommended that the Agency purchase ALL HUD Properties in the NIP Areas, with the understanding that the Agency may have to provide rehabilitation, reconstruction or acquisition gap funding to the lowest ARR Participant bidder. Therefore, Staff proposed to the Redevelopment Committee, and the Committee concurred, that the Agency appropriate $250,000 from the Agency's Housing Fund to assist in this endeavor. However, subsequent to the Redevelopment Committee's action, several other properties have been offered to the Agency that do not pencil economically. Accordingly, in the interest of moving forward, Staff is requesting that the Community Development Commission increase the appropriation to $300,000 Utilization of Agency Housing Funds is the most efficient and economical way to proceed because utilization of NIP funds to purchase the HUD Properties would complicate and delay the process. Four properties located at 263, 271,275 & 283 East 49th Street (the "Properties") in NIP #5, also located within the newly adopted 40th Redevelopment Project Area, (see Map of the Area), consisting offour (4) plexes, located in a cul-de-sac of a predominately single-family community are part of the HUD Properties the Agency will be required to purchase under Amendment No.1. Howcver, because this area has similar characteristics to the Arden Guthrie area were it has experienced a high turn over in renters, vacancies, blighted conditions are prevalent and have an impact on Code Compliance, staff proposes that rather than resell the Properties to ARR Participants, that the Agency purchase the Propertics directly, demolish them and hold the land for a future single-family development. To accomplish this, it is proposed that the Commission approve allocating the sum of $460,000 to purchase the Properties (approximately $250,000), demolish the units (approximately $60,000), and to provide funding for any future acquisitions (approximately $150,000). Staff presented this proposal to the 40th Street Project Area Committee (PAC) and they are in support of the single-family concept rather than perpetuate the deterioration and blight of area. When the acquisition plan for the East 49th Street cul-de-sac is completed, Staff will return to the Commission with a development concept and selection of a developer through the RFP process. FISCAL IMPACT: The Amendment No.1 to the Agreement will result in an Agency expenditure of approximately $760,000 during the next 6-12 months. These funds are available in the Agency's Housing Fund budget 2000-2001. GVO:MP:lag:ll-06-00 Amend 1 Coop COMMISSION MEETING AGENDA Meeting Date: 11/06/2000 Agenda Item Number: ~ Economic Development Agency Staff Report Amendment to Cooperative Agreement October 25, 2000 Page Number -4- --------------------------------------------------------------------------------------------------------------------- RECOMMENDATION: That the Community Development Commission adopt the attached Resolution and approve Motions Band C ab e. Maggie Pacheco, Director Housing and Commnnity Development GVO:MP:lag: 11-06-00 Amend 1 Coop COMMISSION MEETING AGENDA Meeting Date: 11106/2000 Agenda Item Number: R3.L OCTOBER 16, 2000 LETTER FROM MAYOR VALLES TO SUPERVISOR EAVES EXHIBIT "1" OFFICE OF THE MAYOR JUDITH VALLES 300 North "D" Street. San Bernardino' CA 92418-0001 909.384.5133. Fax: 909.384.5067 www.ci.san-bernardino.ca.us '" October 16,2000 Supervisor Jerry Eaves, Fifth District Board of Supervisors County Government Center 385 North Arrowhead Avenue, Fifth Floor San Bernardino, California 92415-0 II 0 RE: AMENDMENT NO. I TO AGREEMENT NO. 99-1154 WITH THE FEDERAL HOUSING ADMINISTRATION (FHA) FOR ACQUISITION OF HUD PROPERTIES I T E CITY OF SAN BERNARDINO / As a follow up to 0 ting of September 20, 2000, and recent phone conversations with EDA and ECD staff of October 10, 2000, I am requesting that the Board of Supervisors ("Board") consider rescinding the September 19, 2000 action, relative to Amendment No. I to Agreement No. 99-1154 with the Federal Housing Administration (FHA). As you may recall, the reason for this request is due to the fact that termination of the County/FHA Agreement would eliminate the City/Agency's guarantee to purchase all HUD units from the County within the City's approved ACA's. The County's arrangement with FHA has allowed the County and Agency exclusive rights to purchase all HUD properties within these approved ACA's. Without this exclusive arrangement, the City/Agency would have to compete with other non-profit or investors for purchase of HUD properties within these areas. Furthermore, discussions with HUD representatives tell us that in order for the City/ Agency to enter into a direct ACA contract with BUD, would require drastic modifications to the Agency's existing ARR Program which has won national recognition for its success in helping HUD decrease its inventory in San Bernardino. Moreover, for four years, the Agency's ARR Program has relied on experienced and credible partners who have the financial wherewithal, thus helping us leverage our limited resources and allowing us to buy HUD properties in volume. From July 1999 to the present, the ARR Program Partners have purchased over 300 BUD Properties from the Agency. CITY OF SAN BERNARDINO ADOPTED SHARED VALUES: Integrity. Accountability. Respect for Human Dignity. Honesty SUPERVISOR JERRY EAVES October 16, 2000 Page Number Two Toward this end, with the pending Amendment No. I to County and Agency Cooperation Agreement, the Agency will be required to purchase all HUD properties in the City of San Bernardino ACA's from the County; therefore, allowing the County the freedom to focus their valuable resources in the City of Redlands and Highland. I look forward to a favorable response from you on this request. cc: Executive Director, EDA Director, Housing and Community Development Tom Laurin, ECD Director JULY 27,2000 LETTER FROM MAYOR VALLES TO SUPERVISOR EAVES EXHIBIT "2" 1 OFFICE OF THE MAYOR JUDITH VALLFS ~ 300 North ''0'' Street. San Bernardino. CA92418-0001 909.384.5133 . Fax: 909.384.5067 www.cl.san-bernardino.ca.us July 27,2000 Supervisor Jerry Eaves, Fifth District Board of Supervisors County Government Center 385 North Arrowhead Avenue, Fifth Floor San Bernardino, CA 92415-0110 RE: Neighborhood Initiative Program - Redevelopment Agency of the City of San Bernardino and the Co~nty of San Bernardino Cooperation Agreement dated September 7, 1999 /' / As you know, t City f San Bernardino and the Economic Development Agency (Agency) Staff have held rous meetings with the Department of Economic and Community Development (ECD) Staff in an effort to obtain NIP fund releases and to reach resolution on the purchase/resale of a several HUD properties located within City NIP Areas but with no success. Because ofthe protracted delays, my staff has recommended that in order to move forward with NIP programs and acquisition of HUD properties, the most advantageous solution is for the Agency to purchase all HUD properties (via Agency's ARR Program) within the City's NIP Target Areas rather than the County of San Bernardino. In addition, my Staff wishes to take the lead on the implementation of the various NIP activities and programs contained within the Cooperation Agreement between the parties. Accordingly, based on the list of properties provided by the ECD Staff on July 17,2000 and as Chairman of the Community Development Commission, I plan to recommend to the Commission, that the Agency proceed to buy al HUD/County properties noted in the list provided by the ECD. I will also recommend to the Commission, changes to the Cooperation Agreement encompassing the following items, but not limited to: CITY OF SAN BERNARDINO 7 ERVISOR JERRY EA YES y 27,2000 ;ge Number -2- . County will donate and Agency will accept donation of the following properties: 1556 Mt. View, 1662 Sierra Way and 1379 Arrowhead. All properties are located in Target Area #1. Mt. View and Sierra Way will be donated by the Agency to Neighborhood Housing Services for the Y outhbuild Program and Arrowhead will be donated by the Agency to the Frazee Community Center Transitional Housing Program. . The Agency will agree to administer all rehabilitation programs (multi-family and single family) within the NIP Target Area #1, provided, there is resolution on environmental clearance from ECD and HUD. . Since the second year of funding is coming up in September 2000, I request that the County agree to allocate a minimum of $850,000 to address infrastructure deficiencies within Target Area NIP#1. The City has already identified $1.4 million in needed infrastructure improvements. . The County will agree to allocate $250,000 for stipends and operation costs for the Neighborhood Housing Services Y outhbuild Program. . The Agency will assume all responsibilities of ECD with respect to environmental clearances. . ECD will agree to provide an additional $100,000 for the administration of the NIP Program. . ECD will agree to provide an additional $60,000 for the hiring of a building inspector to oversee the acquisition and rehabilitation activities within NIP Target Area #1. If these items meet with your approval, I will direct my staff to prepare the Amendment to the Cooperation Agreement, and forward the Amendment for your Staffs review and subsequently for Commission approval. Thanks for your continued support and I look forward to a positive response. . . , r:tu--k alles, Mayor an Bernardino cc: Maggie Pacheco, Director Gary Van Osdel, Executive Director Tom Laurin, Director Julie Battey. Supervisor Representative 7 MAP OF NIP AREAS EXHIBIT "3" 7 I'T f-LU ~ I 1 1- 'H,ilim; - \ 1- ~ -/ .,,~ "="""'-"""",,6 ~ ~ ~III ~1((~ w -L~ , I' ,,' : I. 1 n ~ - r "- - oJ . ~ I i ~Ii:. ,~w.: - ~ II.. 1 . ~ ............ ~OTH I I , . ~'= ~ ~ ~~ J ..",,,,~~ PIc ~) ~ \.. '\ ~ ~ r~: "~~f-\rJ') ~):: . 'P 'I! ~ ~ r' ~ -=/ ~ w w W\ ~ \" <, \ ~ , w w . ~ ,'~ ~ t1 A :~t6H ~ : ~ "- .. ,: I ~" ,~: -""~~~ ~ 0')."', . '\ ~,\ ~ f;;;;;;-, ,I F. ,<, \ --J ~~~TE~ POATEA ,\ \ nil '" :'.~ ~1T-~' ,,:: \ ~~ He Ii ~ ,,~ - ^ r: ~ g~lsr.--i~ .....; 600DLETT I;'~ '3 -=~__ , f-:;;';1'::: \fl I~TH ~ ~~.. . ~ ; ~~I::: 16r~ '" T . "",nTH . ,... '" on, n h I ..~,~ '- LI.- '-' m,' leTH J! .5TH 15tHI '~T.. 16TIi r- .. 1'1 II' d '" --, == I I-- /-- ~VlN5 EVI.NS .,.. '" I ... ,$lH...1.2!!U.. 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D~D""I A DI""\I""Ir"'\ _Initial Neighborhood MAP OF EAST 49TH STREET PROPERTIES NIP #5 40TH STREET REDEVELOPMENT PROJECT AREA EXHIBIT "4" 7 263 East 49th Street Back - Concrete - -. ,;~~ ..." ~'.- . ;:::::~ RMH -,~.,._-; 275 East 49th Street Back - Pool RMH ;,B;., _~_);pt\."" i",~~~'-'- 271 East 49th Street Back - Pool RMH .;; 283 East 49th Street Back - Grass RMH ft'f East 49th Street -I 1 RESOLUTION NO: 2 3 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION APPROVING THE AMENDMENT NO. I TO THE SEPTEMBER 7, 1999, COOPERATIVEIDELEGATE AGENCY AGREEMENT BETWEEN THE COUNTY OF SAN BERNARDINO AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FOR IMPLEMENTATION OF THE NEIGHBORHOOD INITIATIVE GRANT PROGRAM (NIP) 4 5 6 7 8 9 THE COMMUNITY DEVELOPMENT COMMISSION ACTING ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: 10 11 12 SECTION I. On September 7,1999, the Community Development Commission 13 and on September 21,1999, the County of San Bernardino Board of Supervisors each approved the Cooperative/Delegate Agreement between the County of San Bernardino ( the "County") and the Redevelopment Agency (the "Agency") for the implementation of the Neighborhood Initiative Program (NIP) within the Seven Target Areas ( the "Agreement"). 14 15 16 17 SECTION 2. An in effort to proceed with the implementation of the Agreement, 18 the parties desire to amend the Agreement ( the "Amendment No. I") to require and obligate the Agency to purchase all HUD Properties located within the NIP Target Areas, rather than the County. 19 20 21 SECTION 3. Amendment No. I will also enable the Agency to take the lead on 22 implementing and initiating NIP Programs and Projects within the NIP Target Areas as depicted in Exhibit "2-1" of the Amendment No.1, commencing with Target Area # I. In order to accomplish the acquisitions of the HUD Properties, it is necessary and appropriate for the Agency to allocate up $300,000 from the Agency's Housing Fund to be used to assist the ARR 23 24 25 26 Participants with the leveraging of private rehabilitation, reconstruction or gap acquisition financing of HUD Properties thereby preserving residential properties and making them available to first time low and moderate income homebuyers and assisting the Agency and City 27 28 Amendment NO.1 County Agmt 1 of 3 1 in accomplishing its housing goals and objectives as provided under the California Redevelopment Law and General Plan Housing Element. SECTION 4. As part of the acquisition by the Agency of all HUD Properties, the Community Development Commission authorizes the Agency to purchase directly the properties located at 263,271,275 & 283 East 49'h Street, NIP#5 (the "Properties"), appropriate the sum of$460,000 from the Agency's Housing Fund which will be used to acquire, demolish and allow for the future acquisition of additional properties and development of a single family concept in the respective East 49'h Street block. 2 3 4 5 6 7 8 9 SECTION 5. The Executive Director of the Agency is hereby authorized to 10 make minor corrections, additions, interpretations and clarifications to the Agreement and Amendment No. I, provided said changes, etc., are not substantive in nature and do not increase the monetary impact to the Agency. 11 12 13 SECTION 6. The Authorization to execute the above referenced Amendment 14 No.1 is rescinded if the parties to the Amendment No. I fail to execute it within sixty (60) days 15 of the passage of this Resolution. 16 IIII 17 IIII 18 IIII 19 IIII 20 IIII 21 IIII 22 IIII 23 IIII 24 IIII 25 IIII 26 IIII 27 IIII 28 IIII Amendment No.1 County Agmt 2 of 3 1 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION APPROVING THE AMENDMENT NO. I TO THE SEPTEMBER 7, 1999, COOPERATIVEJDELEGATE AGENCY AGREEMENT BETWEEN THE COUNTY OF SAN BERNARDINO AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FOR IMPLEMENTATION OF THE NEIGHBORHOOD INITIATIVE GRANT PROGRAM (NIP) 2 3 4 5 6 I HEREBY CERTIFY that the foregoing resolution was duly adopted by Community 7 Development Commission of the City of San Bernardino at a meeting 8 thereof, held on day of , 2000 by the following vote, 9 to wit: 10 COMMISSION MEMBERS: AYES 11 ESTRADA 12 LIEN MCGINNIS 13 SCHNETZ SUAREZ 14 ANDERSON 15 MCCAMMACK 16 NAYS ABSTAIN ABSENT 17 City Clerk The foregoing resolution is hereby approved this ,2000. day of 18 19 20 21 22 Judith Valles, Chairperson Community Development Commission 23 Approved as to form and Legal Content: 24 25 26 By: ^ /.-t; , ~ ~ Agency Counsel e;L.& 41 .,(,. Ot(;'t~J./~. , .J~ 27 28 Amendment NO.1- County Agmt 3 of 3 AMENDMENT NO. 1 TO THE COOPERATIVE/DELEGATE AGENCY AGREEMENT BETWEEN THE COUNTY OF SAN BERNARDINO AND THE 2 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FOR USE OF NEIGHBORHOOD INITIATIVE PROGRAM GRANT 3 4 This Amendment No. 1 to the Cooperative/Delegate Agency 5 Agreement ("Amendment No.1") is dated as of November 20, 2000, by 6 and between the County of San Bernardino (the "COUNTY") and the 7 Redevelopment Agency of the City of San Bernardino, a public body, 8 corporate and politic, (the "AGENCY"). This Amendment No. 1 is 9 entered into with respect to certain facts presented in the four 10 (4) paragraphs of the following Recitals: 11 --RECITALS-- 12 WHEREAS, as of September 7, 1999, the Community Development 13 Commission of the City of San Bernardino, as the governing board of 14 the AGENCY and on September 21, 1999, the County of San Bernardino 15 Board of Supervisors each approved the County and Agency 16 Cooperative/Delegate Agency Agreement, dated September 21, 1999 17 (the "Agreement") for use of Neighborhood Initiative Program Grant 18 Funds ("NIP Funds") within specific pre-approved target areas of 19 the City of San Bernardino, commonly referred to in the Agreement 20 as Neighborhood Initiative Target or Asset Control Areas ("ACAs"); 21 and 22 WHEREAS, the Agreement further authorized the COUNTY to 23 purchase certain U.S. Department of Housing and Urban Development 24 (HUD) housing units within the City of San Bernardino in accordance 25 with the provisions of the Agreement and a separate agreement 26 27 28 SBEO/0001/DOC/4176-2 11/14/00 230 jmm 1 1 between the COUNTY and HUD, dated December 7, 1999 Ithe "FHA Asset 2 Control Contract #99-736N); and 3 WHEREAS, in the interest of providing the AGENCY and the 4 COUNTY greater flexibility to complete the implementation of the 5 Agreement and the FHA Asset Control Agreement, the COUNTY and 6 AGENCY jointly desire to amend the Agreement as provided in this 7 Amendment No.1 to make certain modifications which: 8 9 10 11 12 13 (i) authorize the AGENCY to accept transfers or assignments of the interest of the COUNTY in certain properties described in Attachment "C-l", attached to this Amendment No.1; and Iii) to acquire all other HUD housing units from the COUNTY as may otherwise be made available to the COUNTY within the 14 ACAs under the FHA Asset Control Contract #99-736; and 15 (iii) to acknowledge certain adjustments in the budgeted 16 17 18 19 amounts in line items of the original Two Million Dollars ($2,000,000.00) budget for the administration and implementation of the NI Programs set forth in the attached Exhibit "2-lN. 20 NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS 21 HEREIN SET FORTH AND THE MUTUAL BENEFITS TO BE DERIVED THEREFROM, 22 THE AGENCY AND THE COUNTY HEREBY AGREE AS FOLLOWS: 23 Section 1. The meaning of defined terms and phrases as 24 used in this Amendment No. I shall be the same as set forth in the 25 Agreement, unless the specific context of usage of a term or phrase 26 in this Amendment No. 1 may otherwise require. The Agreement, 27 28 SBEO!OOOl/DOC/4176-2 11/14/00 230 jrnm 2 \9 20 2\ 22 23 24 25 26 27 \ including each accompanying Exhibit and Attachment to the 2 Agreement, is incorporated into this Amendment No. 1 by this 3 reference. 4 Section 2. The COUNTY and the AGENCY hereby acknowledge 5 and declare that the Agreement is in full force and effect and that 6 no breach or default has occurred or exists under the Agreement as 7 of the date of this Amendment No.1. 8 Section 3. The fourth (4'h) paragraph of Section 1 of the 9 Agreement is hereby amended to read as follows: 10 "In an effort to reduce HUD's inventory of residential 1\ properties (the "HUD PropertyR) and to create affordable \2 homeownership opportunities principally for low and 13 \4 \5 \6 17 moderate income persons within the City of San Bernardino, and to stabilize and reverse the decline of residential neighborhoods, all HUD Property located within the ACAs of the City of San Bernardino purchased by the COUNTY from HUD shall be transferred by the COUNTY 18 to the AGENCY at the "Purchase PriceR, as this term is defined in the FHA Asset Control Contract for each such HUD Property. The COUNTY shall give the AGENCY an opportunity to review appraisals for each HUD Property in the ACAs of the City of San Bernardino, and the AGENCY shall be afforded an opportunity to confirm the valuation of each HUD Property and the amount of the applicable discount indicated under Section 4.2 of the FHA Asset Control Contract for each such HUD Property. Except for SBEO/OOOl/DOC/4176-2 28 11/14/00 230 jrnm 3 I 2 3 4 5 6 7 8 9 10 II 12 13 14 15 16 the HUD Property identified as "exceptions" in Attachment ~C-l", within ten (10) days following submissi0n by the COUNTY to the AGENCY of the -Designation Notice-, as this term is defined in the FHA Asset Control Contract the AGENCY, shall accept the transfer of all of the right, title and interest of the COUNTY in each HUD Property designated in such notice. The COUNTY shall cause HUD to initiate and close the appropriate HUD Property escrow transaction under the FHA Asset Control Contract for such HUD Property the at applicable Purchase Price. Concurrently upon the close of each such escrow and acceptance by the COUNTY of such HUD Property, the COUNTY shall transfer such HUD Property to the AGENCY under a deed in the form described in Section 3.2 of the FHA Asset Control Contract, and the AGENCY shall pay to the COUNTY the Purchase Price, plus all related escrow costs I7 18 19 20 21 22 23 24 25 26 and title insurance charges otherwise payable by COUNTY to HUD under the terms of the FHA Asset Control Contract for each such HUD Property transferred to the AGENCY. The AGENCY shall cause each such HUD Property to be rehabilitated in accordance with applicable -MPR- standards, and resold to "Eligible Buyers" as this term is defined in Section 5.2 of the FHA Asset Control Contract; provided however, that nothing in this paragraph shall be deemed to prevent the AGENCY from imposing more restrictive income-eligibility requirements 27 28 SBEO/OOOl/DOC/4176-Z 11/14/00 230 jmm 4 or restrictive residency more owner-occupancy 2 3 4 requirements on an Eligible Buyer than is otherwise permi tted under the FHA Asset Control Contract. The process by which the HUD Property shall be acquired by 5 6 7 8 9 10 11 12 the AGENCY from the COUNTY 1S also set forth in Attachment "C-l" (also referenced to as "Procedures"). Upon its acceptance of title in each such HUD Property, the AGENCY shall be responsible for complying with all applicable provisions of FHA Asset Control Contract and the AGENCY shall provide COUNTY with the information necessary for the COUNTY to submit the reports as described in Section 6.1 and 6.2 of the FHA Asset Control 13 14 15 16 17 18 19 20 21 22 Contract to HUD when due. In the event of termination of this Agreement by either party, the AGENCY shall remain responsible to the COUNTY for the delivery of all reports and information on HUD Property transferred to the AGENCY prior to such date. The Director of the Department of Economic and Community Development ("ECD") of the COUNTY shall have the authority to cause the of HUD Property to be transferred to the AGENCY as set forth in this paragraph." Section 4. The fifth (5~) paragraph of Section 1 of the 23 Agreement 15 hereby amended to read as follows: 24 "COUNTY shall transfer its ownership interest in each of 25 the following properties to the AGENCY for the sum of 26 27 SBEO(OOOl/DOC!4176-2 28 11/14/00 230 jnun 5 I 2 3 4 5 6 7 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 $1.00 per property, subject to the conditions set forth ~n subparagraphs Ii), Iii) and liii) below: 1556 Mountain View 1662 Sierra Way 1379 Arrowhead Avenue Ii) each such property shall be rehabilitated and reserved for use and occupancy by persons and households whose annual income does not exceed 115% of median income of the area; provided however, that the AGENCY may transfer each such property to one non-profit housing or more community development organizations in consideration of the sum of $1. 00 for such purposes, subject to the customary terms of affordable housing an development regulatory agreement which contains the general provisions described at 24 CFR Part 92.224, by and between the AGENCY and such non-profit community organization and which also satisfies the minimum standards set forth In the FHA Asset Control Contract; and (ii) each affordable housing regulatory agreement shall SBEO/OOOl/DOC/4176-2 11/14/00 230 jrnm provide that net proceeds realized by any such non- profit organization from its disposition of such property shall be used and applied by such non- profit organization for affordable housing 6 1 2 3 4 development activities in an ACA of the City of San Bernardino; and (iii) the AGENCY shall cause each such property to be transferred to a non-profit community housing 5 6 7 8 9 10 11 development organization by a date not later than December 31, 2001, and each such affordable housing development regulatory agreement shall require the non-profit organization to place the property in service as affordable housing within eighteen (18) months following its acquisition of title thereto. The Director of the EDC of the COUNTY shall have 12 the authority to cause each of the properties 13 14 15 described in the preceding paragraph to be transferred to the AGENCY as set forth above." Section 5. Section 7 of the Agreement is hereby amended by 16 this Amendment No.1 to read as follows: 17 18 19 20 21 22 23 24 "SECTION 7. DISBURSEMENT OF FUNDS: All NIP Funds allocated to the AGENCY for Agency Projects shall come from COUNTY and HUD under HR 2158. The COUNTY EDC Director shall allocate and distribute the NIP Funds to the AGENCY for the Program activities and make adjustments among the budgeted line items identified in Exhibit "2-1", attached hereto as deemed appropriate by the EDC Director to implement this Agreement; provided 25 26 27 however, that the total amount of funds allocated for all the NIP Programs identified in Exhibit "2-1" shall not SBEO/OOOl/DOC/4176-2 28 11/14100 230 jmm 7 2 3 4 5 6 7 8 9 10 11 12 exceed the sum of $2,000,000 without first obtaining the approval of the governing board of the COUNTY. ECD will disburse such NIP Funds to the AGENCY on a monthly cost reimbursement basis unless delineated by the AGENCY as a lump sum amount in a duly executed request submitted in the form of Attachment "AU and/or Attachment "B" of the Agreement and approved by the COUNTY. Billing shall be accompanied by all pertinent documentation to be submitted to ECD by AGENCY. ECD shall make payment to the AGENCY within 30 days of receipt from the AGENCY of such reimbursement request." Section 6. The following exhibit and attachment are hereby 13 added to the Agreement by this Amendment No.1: 14 15 16 17 18 19 20 21 22 23 24 25 26 27 (i) Exhibit "2-1" [substitutes and replaces Exhibit "2"]; and (ii) Attachment "C-IH [substitutes and replaces Attachment "C"]. SBEO/OOOl/DOC/4176-2 28 11/14/00 230 jrnm 8 1 IN WITNESS WHEREOF, the parties have caused this Amendment No. 2 1 to be executed as of the day and year first written above. 3 COUNTY OF SAN BERNARDINO REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 4 5 By: By: JUDITH VALLES Agency Chair JON D. MIKELS 6 Chairman, Board of Supervisors 7 8 Dated: SIGNED AND CERTIFIED THAT A COPY 9 OF THIS DOCUMENT HAS BEEN DELIVERED TO THE CHAIRMAN OF 10 THE BOARD By: GARY VAN OSDEL Agency Secretary and Executive Director 11 12 EARLENE SPROAT Clerk of the Board of Supervisors 13 of the County of San Bernardino ATTEST: 14 By: 15 Deputy By: Dated: Dated: 16 APPROVED AS TO FORM, THE TERMS 17 AND PROVISIONS OF THIS AGREEMENT ARE FULLY AUTHORIZED UNDER STATE 18 AND LOCAL LAW AND THIS AGREEMENT PROVIDES FULL LEGAL AUTHORITY 19 FOR COUNTY TO UNDERTAKE OR ASSIST IN UNDERTAKING ESSENTIAL 20 NEIGHBORHOOD INITIATIVE PROGRAM ACTIVITIES APPROVED AS TO FORM By: City Attorney Dated: 21 APPROVED AS TO FORM AND LEGAL CONTENT 22 By: 23 MICHELLE BLAKEMORE Deputy County Counsel By: 24 Dated: Dated: 25 26 27 28 SBEO/OOOl/DOC/4176-2 11/14/00 230 jrnm 9 2 AMENDMENT NO. 1 TO THE COOPERATIVE/DELEGATE AGENCY AGREEMENT BETWEEN THE COUNTY OF SAN BERNARDINO AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FOR USE OF NEIGHBORHOOD INITIATIVE PROGRAM GRANT 3 4 This Amendment No. 1 to the Cooperative/Delegate Agency Agreement ("Amendment No.1") is dated as of October 1, 2000, by and between the County of San Bernardino (the "COUNTY") and the Redevelopment Agency of the City of San Bernardino, a public 7 body, corporate and politic, (the "AGENCY"). This Amendment No. 5 6 8 1 is entered into with respect to certain facts presented in the 9 four (4) paragraphs of the following Recitals: 10 --RECITALS-- 11 WHEREAS, as of September 7, 1999, the Community Development 12 Commission of the City of San Bernardino, as the governing board 13 of the AGENCY and on September 21, the County of San 1999, 14 Bernardino Board of Supervisors each approved the County and 15 Agency Cooperative/Delegate Agency Agreement, dated September 16 21, 1999 (the "Agreement") for use of Neighborhood Initiative 17 Program Grant Funds ("NIP Funds") within specific pre-approved 18 target areas of the City of San Bernardino, commonly referred to 19 in the Agreement as Neighborhood Initiative Target or Asset 20 Control Areas ("ACAs"); and 21 WHEREAS, the Agreement further authorized the COUNTY to 22 purchase Urban certain U.S. Department of Housing and 23 Development San (HUD) housing units within the City of 24 Bernardino in accordance with the provisions of the Agreement 25 and a separate agreement between the COUNTY and HUD, dated December 7, 1999 (the "FHA Asset Control Contract #99-736"); and -1- 2 3 4 5 6 7 8 9 10 II WHEREAS, in the interest of providing the AGENCY and the COUNTY greater flexibility to complete the implementation of the Agreement and the FHA Asset Control Agreement, the COUNTY and AGENCY jointly desire to amend the Agreement as provided in this Amendment No. 1 to make certain modifications which: (i) authorize the AGENCY to accept transfers or assignments of the interest of the COUNTY in certain properties described in Attachment "C-l", attached to this Amendment No.1; and to acquire all other HUD housing units from the COUNTY as may otherwise be made available to the (ii) 12 COUNTY within the ACAs under the FHA Asset Control 13 Contract #99-736; and 14 (iii) to provide for the AGENCY to administer and implement 15 the NI Programs set forth in the attached Exhibit "2- 16 1" (referred to as the "Agency Program") approved by 17 this Amendment No.1, Exhibit "2-1" and Attachment "C- 18 1" NIP Funds. 19 NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS 20 HEREIN SET FORTH AND THE MUTUAL BENEFITS TO BE DERIVED 21 THEREFROM, THE AGENCY AND THE COUNTY HEREBY AGREE AS FOLLOWS: 22 Section 1. The meaning of defined terms and phrases as 23 used in this Amendment No. 1 shall be the same as set forth in 24 the Agreement, unless the specific context of usage of a term or 25 phrase in this Amendment No. 1 may otherwise require. The -2- Agreement, including each accompanying Exhibit and Attachment to 2 the Agreement, is incorporated into this Amendment No. 1 by this 3 reference. 4 Section 2 . The COUNTY and the AGENCY hereby acknowledge 5 and declare that the Agreement is in full force and effect and 6 that no breach or default has occurred or exists under the 7 Agreement as of the date of this Amendment No. l. 8 Section 3. Section 1 of the Agreement is hereby amended 9 to read as follows: 10 "1 PURPOSE II A. Subject to the terms and conditions of this Section 12 1.A., the COUNTY hereby authorizes and directs the AGENCY 13 to undertake, administer and implement certain NI Program 14 projects and activities (the "Agency Program") described in 15 Exhibit "2-1" the procedures set forth in Attachment "C-l". 16 The AGENCY shall implement the Agency Program only within 17 the areas depicted in Exhibit "1" over the term of the 18 Agreement as set forth in Section 2. The COUNTY shall 19 allocate NIP Funds to the AGENCY for the purpose of 20 carrying out the Agency Program solely from NIP Funds 21 allocated to the COUNTY from HUD. No other source of funds 22 of the COUNTY is available for such purposes. Said NIP 23 Fund amounts are shown on Exhibit "2-1". The COUNTY also 24 agrees that upon the expenditure by the AGENCY of the 25 budgeted amount set forth in Exhibit "2-1" for the Agency -3- . 2 Program the consider the COUNTY will upon the request of allocation of additional NIP Funds AGENCY, to the 3 AGENCY to assist the AGENCY to undertake new initiatives or 4 qualifying activities under the Agency Program in Target 5 Area 1 and any of the remaining six (6) Target Areas. In 6 such case, the AGENCY shall provide the COUNTY with a 7 suitably detailed description of the additional Agency 8 Programs which the AGENCY may then propose to undertake and 9 the AGENCY shall also submit a corresponding supplemental 10 budget in support of such application to the COUNTY for 11 approval in the discretion of the COUNTY. 12 The AGENCY agrees to substantially complete the Agency 13 Program within Target Area 1 within twenty-four (24) months 14 following the date of approval of Agreement using the 15 proceeds of NIP Funds disbursed by the COUNTY for such 16 purposes, in accordance with Section 2 through Section 25, 17 inclusive of the Agreement, as amended. Upon completion of 18 the Agency Program as authorized by Amendment No.1, 19 Exhibit "2-1", the AGENCY agrees to consider the initiation 20 of specific elements of the Agency Program in the remaining 21 Target Areas depicted in Exhibit 1 of the Agreement, 22 provided the COUNTY has first approved such additional 23 activities and has allocated additional NIP Funds to the 24 AGENCY, as necessary to implement further installation of 25 the Agency Program. -4- B. In an effort to reduce HUD's inventory of residential 2 properties (the "HUD Property") and to create affordable 3 homeownership opportunities principally for low and 4 moderate income persons within the City of San Bernardino, 5 and to stabilize and reverse the decline of residential 6 neighborhoods, all HUD Property located within the ACAs of 7 the City of San Bernardino shall be purchased by the COUNTY 8 from HUD for transfer by the COUNTY to the AGENCY at the 9 agreed Approved Purchase Price set forth under the 10 COUNTY/FHA Asset Control Contract #99-736. Except for the 11 Hun Property identified as llexceptions" in Attachment lie-I" I 12 the AGENCY, upon submission by the COUNTY of a written list 13 of any HUD Property in City of San Bernardino, together 14 with the Approved Purchase Price a.nd applicable discount 15 shall acquire such units. The COUNTY shall cause HUD to 16 initiate and close the appropriate HUD Property escrow 17 transaction under the COUNTY/FHA Asset Contract #99-736 for 18 such HUD Property at the Approved Purchase Price. The 19 COUNTY shall give the AGENCY an opportunity to r~view 20 appraisals for any HUD Property in question and the AGENCY 21 shall be afforded an opportunity to dispute the valuation 22 of the HUD Property. Concurrently upon the close of such 23 escrow and acceptance by the COUNTY of such HUD Property, 24 the COUNTY shall transfer such HUD Property to the AGENCY 25 for disposition by the AGENCY to any AGENCY-approved non -5- profit or for profit housing developer which shall be 2 obligated to rehabilitate the HUD Property to Agency 3 Rehabilitation Standards and hold such HUD Property for 4 resale to an income eligible buyer. The AGENCY shall be 5 responsible for paying HUD the amount of the account of the 6 COUNTY for each such HUD Property transferred to the 7 AGENCY. The process by which the HUD Property shall be 8 acquired by the AGENCY from the COUNTY is also set forth in 9 Attachment lie_II! (also referenced to as uProcedures"). 10 All HUD Properties acquired by the AGENCY from the II COUNTY under this Section LB. (including such HUD 12 Properties transferred by the AGENCY to its ARR 13 Participants within the ACAs) shall be sold to eligible 14 homebuyers whose incomes do not exceed one hundred fifteen 15 (115%) of the median income for San Bernardino County. 16 C. The Purpose of the Agreement and Amendment No. 1 will ]7 be accomplished pursuant to the requirements of applicable 18 regulations and other federal, local, state and COUNTY laws 19 and policies in the manner herein set forth. Unless 20 specified otherwise, the Department of Economic and 21 Community Development ("ECD") of the COUNTY shall have the 22 authority to represent COUNTY regarding the terms and 23 conditions of the Agreement and Amendment No. 1 and the 24 administration thereof, including without limitation the 25 transfer of HUD Property to the AGENCY." .6- 2 3 4 5 6 7 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 Section 4. Section 7 of the Agreement is hereby amended by this Amendment NO.1 to read as follows: "SECTION 7. DISBURSEMENT OF FUNDS: All NIP Funds allocated to the AGENCY for Agency Projects shall come from COUNTY and HUD under HR 2158. The COUNTY Economic & Community Development Director shall allocate and distribute the NIP Funds to the AGENCY for the Program activities and make any changes to the budget line items identified in Exhibit "2-1", attached hereto as deemed necessary to implement this Amendment No.1. ECD will disburse such NIP Funds to the AGENCY on a monthly cost reimbursement basis unless delineated by the AGENCY as a lump sum amount in Attachment HAll and/or Attachment uB" of the Agreement and approved by the COUNTY. Billing shall be accompanied by all pertinent documentation to be submitted to ECD by AGENCY. ECD shall make payment to. the AGENCY within 30days of receipt from the AGENCY of such reimbursement request." Section 5. The following exhibit and attachment are hereby added to the Agreement by this Amendment No.1: (i) Exhibit "2-1" [substitutes and replaces Exhibit "2"]; and (ii) Attachment "C-1" [substitutes and replaces Attachment "e"] . fill 24 fill 25 fill -7- IN WITNESS WHEREOF, the parties have caused this Amendment 2 NO.1 to be executed as of the day and year first written above. 3 COUNTY OF SAN BERNARDINO 4 By: 5 JON D. MIKELS Chairman, Board of Supervisors 6 7 SIGNED AND CERTIFIED THAT A COPY OF THIS DOCUMENT HAS BEEN DELIVERED TO THE CHAIRMAN OF THE BOARD 8 9 10 EARLENE SPROAT Clerk of the Board of II Supervisors of the County Of San Bernardino 12 13 By: Deputy 14 Dated: 15 16 APPROVED AS TO FORM, THE TERMS AND PROVISIONS OF THIS AGREEMENT ARE FULLY AUTHORIZED UNDER STATE AND LOCAL LAW AND THIS AGREEMENT PROVIDES FULL LEGAL AUTHORITY FOR COUNTY TO UNDERTAKE OR ASSIST IN UNDERTAKING ESSENTIAL NEIGHBORHOOD INITIATIVE PROGRAM ' ACTIVITIES 17 18 19 20 21 By: 22 MICHELLE BLAKEMORE Deputy County Counsel 23 Dated: 24 25 P:\Forms\Housing Fo~s\Housing Misc\Amendment 1 Coop.doc REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: JUDITH VALLES Agency Chair Dated: By: GARY VAN OSDEL Agency Secretary an Executive Director ATTEST: By: Dated: APPROVED AS TO FORM By: City Attorney Dated: APPROVED AS TO FORM AND LEGAL CONTENT By: Dated: -8- REVISED EXHIBIT "2-1" NEIGHBORHOOD INITIATIVE PROGRAM (NIP) ACTION PLAN The Agency shall implement, administer and manage the following programs/projects: PROGRAMIPROJECTS NIP FUND AMOUNT 1. Single Family Owner Occupied Rehabilitation Loan and Grant $600,000 Beautification Program 2. Multi-Family Rehabilitation Loan and Grant Beautification Program $800,000 3. Mortgage Assistance Program to Homebuyers $100,000 4. Code Enforcement Operations/Program a. Demolition of Blighted Structures $150,000 b. Salary for NIP Code Comoliance Officer Assigned to NIP $50,000 5. NHS Y outhBuild Operations/Stipends and Preservation or $250,000 Reconstruction of Housing Units in Target Area I 6. Infrastructure Improvements for Target Area I $850,000 Total cost is estimated at $1.4 Million 7. Agency Administration Costs for NIP Areas $200,000 Includes $IOO,OOO[or Year Two (2) 99/2000 TOTAL FUNDS $2,950,000* *When Agency exhausts its share of the NIP Program Funds above, additional funds may be added at the request of Agency with written authorization accomplished when Attachments A (Request to Initiate Project/Activity) and B (Project/Activity Description) of this Agreement have been completed and signed by Agency and countersigned by ECD. Any such authorized project or activity shall hereinafter be referred to as an AUTHORIZED PROJECT. P;\Clerical Services Dept\Maggie\Misc\REVISED EXHIBIT 2.doc ATTACHMENT "C-I" COUNTY OF SAN BERNARDINO DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT DELEGATE AGENCY COORDINATION PROCEDURES 1. INTRODUCTION The following procedures identify the actions, responsibilities, and sequence of events for Neighborhood Initiative (NI) Program funded Programs being administered by the San Bernardino County Department of Economic and Community Development, hereinafter referred to as "ECD", and being implemented by the REDEVELOPMENT AGENCY of the City of San Bernardino, hereinafter referred to as "AGENCY". Each action or event listed in Section II & III of this Exhibit, list the entity responsible for carrying out that action or implementing such action. Section 17 of this Cooperative Agreement contains regulations and statutes applicable to NI Program funded activities. 11. AUTHORlZA TION TO PROCEED The AGENCY is not authorized to expend funds nor to initiate NI Program projects and activities until authorized to do so in writing by ECD. Continued authorization is contingent upon adequate progress and timely submission of Ouarterlv Proiect Status Reoorts covering all current AUTHORIZED PROJECTS. Contract procurement shall be governed by all Federal regulations and statutes, as amended (See listed in Section 18 of this Agreement). ECD paymcnts of AGENCY Requests for Reimbursement will be subject to a submittal of a complete reimbursement report package. A. Proiect/ Activitv Budget Each project or activity is initiated by submittal of a Request to Initiate Project/Activity Form (Attachment A) when Environmental Clearance is completed bv the Countv. and funds have been released bv HUD. Attachment A specifies the total funding allocation for the project/activity which is consistent with Exhibit 2, the portions currently released and available to expend, the budget categories for the allocation, and the entity responsible for implementation and operation of the project/program. B. Activity Descriotion The activity description shall be forwarded to the COUNTY in the form specified in Attachment B. The description should be consistent with the budget items on Exhibit 2. It will contain a description of all work to be completed by the Agency. Approval to change the project/activity description will come from ECD in the form of a revised Attachment B (and corresponding Attachment A, if applicable). ECD will complete the Attachments A and B and will send two copies each to AGENCY for signature. Once signed and fully completed, they must be returned to ECD for the Director's signature. A copy of each will be returned to AGENCY signifying Authorization to Proceed with actions outlined in the following section, if applicable. III. ACTIONS AND RESPONSIBILITIES: All Federal Housing Administration (FHA) HUD Owned Property Located within ACA's shall be handled as follows: I. COUNTY shall transfer at no cost to the Agency the following HUD Property for the following purpose: 1556 Mountain View and 1662 Sierra Wav- the Agency shall transfer these two properties to Neighborhood Housing Services of the Inland Empire, Inc. (NHS) who will rehabilitate the homes under the Y outhbuild Program and subsequently resell the homes to eligible low and moderate-income homebuyers. 1379 Arrowhead A venue- the Agency shall transfer this property to Frazee Community Center, or a comparable non-profit organization, to use the property for transitional housing for homeless families. 2. COUNTY shall sell all other HUD Property to the AGENCY at the Approved Purchase Price, consistent with the provisions of Section I of the Amendment No. I to the Agreement, and more specifically as per Section 4.2; the Determination of Approved Purchase Price is, as defined in the Asset Control Contract #99-736 between the COUNTY and HUD. Since the Agency is required to purchase all HUD Property, from the COUNTY pursuant to this Amendment No.1 to the Agreement, the COUNTY will not be required to obtain Environmental Review Approval from HUD. This will expedite the acquisition process for the parties and allow the closing of escrow. COUNTY immediately, but no later than three (3) days from receipt of the HUD Property list, shall forward such list to the AGENCY. The list shall contain the address of the HUD Property, Approved Purchase Price, and the applicable discount price. AGENCY shall have seven (7) days in which to submit a Written Response to the COUNTY disputing the Approved Purchase Price, if necessary. Should the AGENCY have no Approved Purchase Price disputes, the AGENCY shall be required to purchase all HUD property in ACA's. Should the Agency fail to purchase any HUD Property from the County, the County shall have the right to terminate this Agreement. COUNTY shall immediately prepare HUD Sales Contracts and deliver such Sales Contract to HUD's designated Escrow Agent ("Open Escrow"). The AGENCY shall close escrow ("Close Escrow") no later than 45 days from the opening escrow date. P:\FonnslHousing Fonns\Housing Misc\Exhibit c-Coop.doc