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HomeMy WebLinkAboutR23- Economic Development Agency ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FROM: Maggie Pacheco,Director SUBJECT: HOME AGREEMENT TO Housing&Community Development NEIGHBORHOOD HOUSING SERVICES OF THE INLAND PIKE, DATE: January 19,2000 ORDINAL HOUSING II EVE OPINE T ITY --S—n—opsu oPr wu--s C—o-m--m—i-ssion/C—o-un—ciV—C-o—mi—tt-ee—Ac—tion - ORGANIZATION(CHDO) ii Recommended Motion(s): (Community Development Commission) MOTION: RESOLUTION OF THE MAYOR AND COMMON COUNCIL APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE THE HOME AGREEMENT BY AND BETWEEN THE CITY OF SAN BERNARDINO AND NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE, I INC.,(NHSIE)IN THE AMOUNT OF$80,000-COMMUNITY HOUSING DEVELOPMENT ORGANIZATION(CHDO)ACTIVITIES-HOME FEDERAL PROGRAM Contact Person(s): Gary Van Osdel/M.Pacheco Phone: 663-1044 Project Area(s) Ward(s): 1 -7 Supporting Data Attached: © Staff Report®Resolution(s)®Agreement(s)/Contract(s)0 Map(s)0 Letter/Memo FUNDING REQUIREMENTS Amount: $ 80,000 Source: Federal HOME Grant Fonds zc" Funds are available in the 99/00 Budget 4E=c0D Budget Authority: (IDISN478)a d Pro am Income SIGNATURE: /�/' h ec utive D' Maggie P eco,Director evelopment Agency Housing&Community Development Commission/Council Notes: GVO:MP:Iag:01-24-00 Home Agmt NHS COMMISSION MEETING AGENDA Meeting Date: 01/24/2000 Agenda Item Number: Az� ECONOMIC DEVELOPMENT AGENCY STAFF REPORT --------------------------------------------------------------------------------------------------------------------- HOME Community Housing Development Organization (CHDO) Agreement Neighborhood Housing Services of the Inland Empire,Inc. Current Issue: The City has been an entitlement city of federal HOME for numerous years. Under the HOME Investment Partnerships Program, HUD allocates funds by formula among eligible State and local governments to strengthen public-private partnerships to provide more affordable housing. State and local governments may use HOME funds to carry out multi-year housing strategies through acquisition, rehabilitation, new construction of housing and tenant-based rental assistance. More specifically, the intend of the HOME program is to expand the supply of decent, safe, sanitary and affordable housing,with primary emphasis in rental housing for very low and low-income persons. Typically states and local governments provide affordable housing by working in concert with eligible non-profit housing organizations. The federal HOME regulations allow cities to utilize up to 5% of the City's annual (approx $1.7 million) HOME allocation to approved community housing development organizations (CHDOs), which translates to approximately $85,000 annually. The funds allocated by the City to an approved CHDO can be used for operating expenses and capacity building costs of the CHDO directly related to the provision of affordable housing in the community. Since 1998, the City and Neighborhood Housing Services of the Inland Empire, Inc. have established a partnership in order to carry out housing services to the community, particularly in light of the down-sizing of the Agency housing division. These services have included, but are not limited to, administration of the Mobile Home Handyworker Program, the Owner Occupied Rehabilitation Program, development of the City's first Youthbuild housing project on Magnolia Avenue and operation of the City's Homebuyer Education Program. In addition, NHSIE owns and operates 216 affordable housing units along Baseline in San Bernardino (Royal Palms Apartments). NHSIE desires to use CHDO funds to strengthen their capacity in the area of real estate acquisition and development with the goal of acquiring additional housing units in the City. They propose to acquire additional capacity in property research, valuation and assessment so that they may implement a strategic plan that plots available properties and owners of record, assesses the potential for acquisition and completes development pro-formas for each property. Without these tools, NHSIE is limited to providing affordable housing opportunities for San Bernardino residents. ------------------------------------------------------------------------------------------------------------------------------------------- GVO:MP:Iag:01-24-00 Home Agmt NHS COMMISSION MEETING AGENDA Meeting Date: 01/24/2000 Agenda Item Number: Economic Development Agency Staff Report Home Agreement-NHS January 19, 2000 Page Number-2- --------------------------------------------------------------------------------------------------------------------- For this reason, staff is proposing to allocate $80,000 from 1998- 1999 unused set aside CHDO HOME funds. As previously stated above, these type of activities are eligible expenditures under the HOME Program and in fact are encouraged activities of the U.S. Department of Housing and Urban Development(HUD). FISCAL IMPACT Funds for this Agreement are available in the Economic Development Agency's 1999-2000 HOME Federal Grant budget in the amount of$80,000. RECOMMENDATION That the Mayor and Common Council adopt the attached Resolution. Maggi cheeo,Director Housi & Community Development -------------------------------------------------------------------------------------------------------------------------------------------- GVO:W:lag:01-24-00 Home Agmt NHS COMMISSION MEETING AGENDA Meeting Date: 01/24/2000 Agenda Item Number: —k�l P_ 02 Jan- 19-00 . 10 :06A EXHIBIT "B" Q Neighborhood Housing Services JACK L.HILL President of the cneo-�n of Me am'v EDWARD F. MONCRIEF Inland Empire, Inc. Executive Director January 19, 2000 Maggie Pacheco Director, Housing & Community Development Economic Development Agency City of San Bernardino 201 No E Street San Bernardino, CA 92401-157 Dear Maggie, We are writing to outline NHSIE's proposed use of$80,000 in CHODO funding from the City of San Bernardino Economic Development Agency. During the coming year, NHSIE will initiate the following activities: 1) As you know, in 1996, NHSIE acquired the 216-unit Royal Palms Apartments in San Bernardino. We have previously upgraded this property and we will continue to maintain and upgrade it as a part of our neighborhood improvement efforts. We are presently looking for additional opportunities to acquire multi-family properties in need of rehabilitation, especially those located within the NIP areas. 2) NHSIE is actively seeking to acquire additional single-family lots, especially within NIP Area One, in order to develop these as Youthbuild sites. 3) NHSIE will work with the Agency to identify single and multi-family properties—especially FHA-foreclosed properties in the NIP areas—that need to be demolished, and might be appropriate for new construction of affordable housing. 4) NHSIE owns five single-family lots in West San Bernardino. We do not believe that it is viable to develop these lots unless we are able to acquire additional lots adjacent to or near these and can, thereby, exert some degree of control over needed neighborhood improvements . We will conduct feasibility studies to determine what surrounding properties P_ 03 Jan-19-00 • 10:06A EXHIBIT "B" 2 Maggie Pacheco Director, Housing &Community Development Economic Development Agency City of San Bernardino can be acquired; and attempt to acquire these in order to enhance the feasibility of development. We look forward to meeting with you to further define and implement these activities. Sje4rely, l Edwa F. M/oncrief Executive Director COPY ° 1 RESOLUTION NO: `.. z 3 RESOLUTION OF THE MAYOR AND COMMON COUNCIL APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE a THE HOME AGREEMENT BY AND BETWEEN THE CITY OF SAN 5 BERNARDINO AND NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE, INC., (NHSIE) IN THE AMOUNT OF $80,000 6 - COMMUNITY HOUSING DEVELOPMENT ORGANIZATION 7 (CHDO) ACTIVITIES-HOME FEDERAL PROGRAM s BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY 9 OF SAN BERNARDINO AS FOLLOWS: 10 11 SECTION 1. The Mayor is hereby authorized and directed to execute on behalf 12 of said City the Agreement by and between the City of San Bernardino and Neighborhood 13 Housing Services of the Inland Empire, Inc., (NHSIE)to carry out Community Housing 14 Development Organization(CHDO) activities pursuant to HUD federal regulations and 0 specifically as provided for in the Agreement; a copy of said Agreement is attached hereto, 16 marked Exhibit"A"and incorporated herein by reference as though fully set forth at length. 17 SECTION 2. The authorization to execute the above referenced Agreement is 1e rescinded if the parties to the Agreement fail to execute it within sixty (60) days of the passage of 19 this Resolution. 20 21 22 23 29 25 26 27 Page 1 of 2 irzvoo G1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE 2 THE HOME AGREEMENT BY AND BETWEEN THE CITY OF SAN 3 BERNARDINO AND NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE, INC., (NHSIE) IN THE AMOUNT OF $80,000 4 - COMMUNITY HOUSING DEVELOPMENT ORGANIZATION 5 (CHDO) ACTIVITIES - HOME FEDERAL PROGRAM 6 I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and 7 Common Council of the City of San Bernardino at a meeting thereof,held 8 on day of 2000 by the following vote,to wit: 9 10 COUNCIL MEMBERS: AYES NAYS ABSTAIN ABSENT 11 ESTRADA 12 LIEN MCGINNIS 13 SCHNETZ SUAREZ 19 ANDERSON C MILLER 16 17 City Clerk 18 The foregoing resolution is hereby approved this day of 2000. 19 20 Judith Valles, Mayor 21 City of San Bernardino 22 Approved as to form and Legal Content: 23 Q 29 By. 25 ()1 Attorney 26 27 Page 2 of 2 1/14 o0 I HOME AGREEMENT COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO) 2 (1997-1998 HOME Funds) 3 (Neighborhood Housing Services of the Inland Empire, Inc.) (NHSIE) 4 5 THIS AGREEMENT is made and entered into this 24th day of January 6 2000, by and between the City San Bernardino, a municipal corporation(hereinafter referred to 7 as "City"), located in the City of San Bernardino and in San Bernardino County, and the 8 Neighborhood Housing Services of the Inland Empire,Inc. (NHSIE), 1390 North"D" Street, 9 San Bernardino, California 92405, a community housing development organization(CHDO) 10 organized pursuant to Title 24 CFR Subpart"G", Section 92.300, et seq., acting herein duly 11 authorized by its Board of Directors. 12 RECITALS CWHEREAS, the City has received formula HOME Investment Partnership allocation for 14 Fiscal Years 1998 and 1999 from the federal Department of Housing and Urban Development 15 (HUD) to carry out eligible activities in accordance with federal program requirements at 24 16 CFR 92 (the"Program"), and the Economic Development Agency("Agency") is designated to 17 administer such Program on behalf of the City; and i 18 WHEREAS, not more than five percent(5%)of the above-mentioned grant amounts may 19 be set aside and made available to designated CHDOs for operating expenses, in accordance with 20 HUD guidelines, and those allowable expenses may include organizational support, 21 administrative expenses, and operating expenses,per 24 CFR 92.208(a); and 1 22 WHEREAS, NHSIE is desirous of participating in activities eligible under HOME, and { 23 further agrees that the beneficiaries of its activities under the program and this Agreement, are or 24 will be individuals or families who meet the income eligibility guidelines at Title 24 CFR part " 92.217; and -1- ^,I WHEREAS, the City deems the activities to be provided by NHSIE as consistent with V z and supportive of the HOME Program and is consistent with the City of San Bernardino 3 Comprehensive Housing Affordability Strategy (CHAS),the City's 1995-99 Consolidated Plan 4 and Housing Element, and that NHSIE requires the financial assistance of the City to implement 5 its activities; and 6 WHEREAS, the Agency, acting in the capacity of Administrator, will monitor and 7 administer NHSIE to ensure compliance with all HOME Program requirements, and that NHSIE, 8 in its capacity as a CHDO, will comply with all program requirements under 24 CFR 92. 9 NOW, THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS: 10 1. CERTIFYING THE NONPROFIT AS A CHDO: 11 NHSIE has satisfied the definition of a CHDO as stated in 24 CFR Subpart A, Section 12 92.2 of the HOME Final Rule. To qualify for receipt and use of federal HOME funds as a CHDO NHSIE has met the following requirements: 14 A. Legal Status. The nonprofit organization is organized under state or local laws, as 15 evidenced by a charter or articles of incorporation. No part of its net earnings inure to the benefit 16 i of any member, founder, contributor, or individual, as evidenced by the same. The nonprofit 17 organization must have a tax exemption ruling from the Internal Revenue Service (IRS)under 18 Section 501(c) of the Internal Revenue Code of 1986, as evidenced by a 501(c) certificate from 19 the IRS. Also, the nonprofit organization has among its purposes the provision of decent 20 housing that is affordable to low and moderate income people, as evidenced by a statement in the 21 organization's charter, articles of incorporation,by-laws or resolutions. 22 B. Capacity. The nonprofit organization conforms to the financial accountability 23 standards of 24 CFR 84.2 1, "Standards for Financial Management Systems", as evidenced by a 24 notarized statement by the organization CEO or president, a CPA or a HUD-approved audit summary. NHSIE has a demonstrated capacity for carrying out activities assisted with HOME -2- G1 funds and affordable housing programs through the stated experience of key staff members or 2 contract(s)with consultants who have experience with related projects to train key staff. Also 3 NHSIE has shown a history of serving the community where housing to be assisted with HOME 4 funds has been used by the attached statement that documents at least one year of experience in 5 serving the community as depicted in Exhibit"A"herein. 6 C. Organizational Structure. The governing board of NHSIE consists of at least 33 7 percent(33 1/6) residents of low-income neighborhoods, other low-income community residents, 8 or elected representatives of low-income neighborhood organizations as evidenced by charter, 9 by-laws or articles of incorporation. NHSIE provides a formal process for low-income,program 10 beneficiaries to advise the organization in all of its decisions regarding the design, development, 11 and management of all affordable housing projects, through its by-laws, resolutions or a written 12 statement of operating procedures approved by the governing body. While NHSIE may be '7 chartered by the state or a local government, the public body may not appoint more than one- 14 third of the membership of the organization's governing board and no more than one-third of the 15 governing board members are public officials as evidenced by charter, by-laws, or articles of 16 incorporation. Also, if NHSIE is sponsored or created by a for-profit entity,the for-profit entity 17 may not appoint more than one-third of the membership of NHSIE's governing body, and the 18 board members appointed by the for-profit entity may not, in turn, appoint the remaining two- 19 thirds of the board members, as evidenced by the same. 20 D. Relationship with For-Profit Entities. NHSIE is not controlled, nor receives 21 directions from individuals or entities seeking profit from the organization, as evidenced by the 22 organization's by-laws or a memorandum of understanding. NHSIE may be sponsored or 23 created by a for-profit entity, however: 24 1. The for-profit entity's primary purpose does not include the development or Cmanagement of housing, as evidenced in its by-laws; and 3 1 2. NHSIE is free to contract for goods and services from vendor(s)of its own choosing, ® 2 as evidenced in its by-laws, charter or articles of incorporation. 3 II. SCOPE OF SERVICES AND COMPENSATION 4 A. Amount of Grant: Pursuant to the conditions being met in Section I. Above, City 5 agrees to Grant Eighty Thousand dollars($80,000) (the "Grant") of the HOME Investment 6 Partnership funds for the operating expenses of NHSIE as a Community Housing Development 7 Organization(CHDO)pursuant to the HOME Investments Partnership Act. 8 B. Use of Grant Funds: The Grant funds will be used to pay the CHDO operating 9 expenses of NHSIE including but not limited to the costs of salaries,wages, and other employee 10 compensation and benefits; employee education,training; rent; utilities; taxes; insurance; 11 equipment; materials and supplies and more specifically to implement and administer housing 12 services and programs depicted in Exhibit`B"herein. The requirements and limitations on the dreceipts of these funds by CHDO's are set forth in CFR 92.300(e) and (f). 14 1. Projected Budget: i 15 The budget shall be substantially as projected in the budget statement which has been 16 submitted for the Scope of Services and which is attached hereto as Exhibit"C"and by this i 17 reference is incorporated herein. 18 2. Tasks to be performed: 19 NHSIE shall develop, manage and support affordable housing and/or homeownership 20 affordability projects for low and moderate income households through projects that include, but I 21 are not limited to, assistance to eligible homebuyers, new construction, reconstruction, or 22 rehabilitation of housing with suitable amenities, including real property acquisition, site 23 improvements, conversion, demolition, and other expenses, including financing costs, relocation 24 expenses of any displaced persons, families, businesses, or organizations,tenant-based rental -4- I assistance, marketing and outreach services pertaining to the expansion, improvement, or 2 preservation of low and moderate income housing (see Exhibit`B"). 3 3. Schedule for completion of tasks: 4 Upon execution of this Agreement,NHSIE agrees to provide the services outlined in the 5 body of this Agreement from January 24, 2000 through January 24, 2001. 6 C. Other Program Requirements 7 1. NHSIE must carry out each activity in compliance with all federal laws and 8 regulations described in Subpart H of 24 CFR 92 and outlined hereinafter, except that NHSIE 9 does not assume the Agency's/City's responsibility for environmental review in Section 92.352 10 or the intergovernmental review process in Section 92.357. These federal laws and regulations I t must be complied with as follows: 12 a. Equal Opportunity. No person shall be excluded from participation in, be denied the 13 benefits of or be subjected to discrimination under any program or activity funded in 14 whole or in part with HOME funds. In addition, HOME funds must be made available 15 in accordance with all laws and regulations listed in Section 92.350(a). 16 b. Fair Housing. In accordance with the certification made with its housing strategy, 17 each participating jurisdiction must affirmatively further fair housing. Actions 18 described in Section 570.904(c) of Title II of the Cranston-Gonzales National 19 Affordable Housing Act will satisfy this requirement. 20 c. Affirmative Marketing. NHSIE must adopt affirmative marketing procedures and 21 requirements for HOME-assisted housing projects of five (5) units or more. These 22 must include: 23 (1) Methods for informing the public; 24 (2) Requirements and practices that NHSIE must adhere to in order to carry out the ,5 City/Agency affirmative marketing procedures and requirements; -5- CI (3) Procedures used by NHSIE to inform and solicit applications from persons in the 2 housing market area who are not likely to apply without special outreach; 3 (4) Records that will be kept describing actions taken by NHSIE to affirmatively 4 market units and records to assess the results of these actions; and 5 (5) A description of how NHSIE will assess the success of affirmative marketing 6 actions and what corrective actions will be taken where affirmative marketing 7 requirements are not met. 8 d. Displacement, Relocation and Acquisition. Consistent with the other goals and 9 objectives of this Subpart H of 24 CFR 92,NHSIE must ensure that it has taken all 10 reasonable steps to minimize the displacement of persons(families, individuals, I 1 businesses,nonprofit organizations, and farms) as a result of any project assisted with 12 HOME funds. NHSIE agrees to minimize displacement in accordance with Section 0 92.353. 14 e. Conflict of Interest. NHSIE will hereby comply with all requirements set forth 15 regarding conflict of interest provisions as they apply in Section 92.356. 16 f. Debarment and Suspension As required in Section 92.357,NHSIE will comply with 17 all debarment and suspension certifications. 18 g. Flood Insurance. Under the Flood Disaster Protection Act of 1973, HOME funds 19 may not be used with respect to the acquisition or rehabilitation of a project located in 20 an area identified by the Federal Emergency Management Agency(FEMA) as having 21 special flood hazards, unless: 22 (1) The community in which the area is situated is participating in the National 23 Flood Insurance Program, or less than a year has passed since FEMA 24 notification regarding such hazards; and -6- �1 (2) Flood insurance is obtained as a condition of approval of the commitment. If 2 the Agency is located in an area identified by FEMA as having special flood 3 hazards, upon notification by the Agency or FEMA,NHSIE is responsible for 4 assuring that flood insurance under the National Flood Insurance Program is 5 obtained and maintained. 6 2. Labor. Any contract for the construction or rehabilitation of affordable housing with 7 twelve (12)or more units assisted with funds made available under Subpart H of 24 8 CFR 92 must contain a provision requiring that not less than the wages prevailing in 9 the locality, as predetermined by the Secretary of Labor pursuant to the Davis-Bacon 10 Act(40 U.S.C. 2761-5), will be paid to all laborers and mechanics employed in the I I development of affordable housing involved, and such contractors must also be 12 subject to the overtime provisions, as applicable, of the Contract Work Hours and '3 Safety Standards Act(40 U.S.C. 327-332). The NHSIE contractors, subcontractors, 14 and other participants must comply with regulations issued under these Acts and with 15 other federal applicable federal laws. The NHSIE will require certifications as to 16 compliance with the provisions of Section 92.354 before making any payment under 17 such contract. 18 3 Hold Harmless. NHSIE agrees to indemnify, defend, and save harmless the City and 19 Agency, its officers, agents, and employees from any and all claims and losses 20 accruing or resulting to NHSIE or any and all contractors, subcontractors, 21 materialmen, laborers and any other person, firm, or corporation furnishing or 22 supplying work, services or supplies in connection with the performance of this 23 Agreement, and from any and all claims and losses accruing or resulting to any 24 person, firm, or corporation who may be injured or damaged by NHSIE in the performance of this Agreement. Without limiting NHSIE's indemnification of -7- I Agency,NHSIE shall provide and maintain at its own expense during the term of this 2 Agreement the following program(s)of insurance covering its operation hereunder. 3 Such insurance shall be provided by insurer(s) satisfactory to Agency and evidence of 4 such programs satisfactory to Agency shall be delivered to the Executive Director of 5 the Agency or his designee within ten(10)days of the effective date of this 6 Agreement. 7 General Liability: A program including, but not limited to, comprehensive general 8 liability with a combined single limit of not less than one million dollars ($1,000,000) 9 per occurrence. Such insurance shall be primary to and not contributing with any to other insurance maintained by the City/Agency, and shall name the City and Agency II as an additional insured. Such insurance shall require the Agency be notified at least 12 ten (10) days in advance of any change or cancellation of said insurance. D. Request for Disbursement of Funds 14 15 I. NHSIE may request grant funds monthly, on a reimbursement basis, for eligible costs, 16 on a prorata basis, up to maximum of$80,000. The amount of each request will be limited to the V amount substantiated in the invoices submitted for costs incurred operating as a CHDO. E. Records and Reports 18 19 1. The City/Agency will require that NHSIE maintain the following records and reports zo in order to assist the City/Agency in meeting its record keeping and reporting requirements: (a) Records, including individual project and construction records and a running log 21 22 demonstrating compliance with the applicable provisions of Section 92.508(2) of the HOME 23 Investment Partnership Program; and 24 (b) Continuing compliance with the HOME Program shall be certified and reported to © the Agency on a quarterly basis to comply with HOME reporting requirements. -8- 101 (c) Any other legal reports and/or records requested by the City/Agency to document the 2 provisions of all affordable housing projects or programs. 3 2. NHSIE shall retain and provide access to all records for the period of three (3)years 4 from the date of this Agreement in accordance with the requirements of Section 92.508(6)(c) and 5 (d). 6 III. GENERAL PROVISIONS: 7 A. Enforcement of the Agreement 8 1. The City or Agency shall have the right, by prior written notice to NHSIE, to enforce 9 by deed restriction,the affordability requirements in Section 92.254, or any other such violation, 10 as is brought to the attention of the City or Agency regarding the property(ies) being developed 11 with the use of HOME funds pursuant to this Agreement, if any. In the event of a breach of any 12 condition or provision hereof, the Agency shall have the right,by prior written notice to NHSIE, V /^'t3 to suspend or terminate this Agreement if NHSIE materially fails to comply with any of its 14 terms. 15 2. The City or Agency, at its discretion, may terminate this Agreement, in whole or in 16 part, by giving NHSIE written notice in accordance with 24 CFR 85.44, which provides in part 17 that suspension or termination may occur if NHSIE materially fails to comply with any term of 18 this Agreement. 19 B. Monitoring 20 1. The Agency, is responsible for managing the day-to-day operations of the HOME 21 program; for monitoring the performance of all entities receiving HOME funds from the Agency 22 to ensure compliance with the requirements of Subpart K, 24 CFR 92, and for taking appropriate 23 action when performance problems arise. 24 2. Not less than annually, the Agency will review the activities of NHSIE, to assess compliance with the requirement of Subpart K, 24 CFR 92, as set forth in this Agreement. 9 ^I C. Notices. Any notice requirement set forth herein shall be deemed satisfied three(3) 2 days after mailing of the notice first-class United States certified mail,postage prepaid, 3 addressed to the appropriate party as follows: 4 CHDO: Neighborhood Housing Services of the Inland Empire, Inc. 5 1390 North"D" Street 6 San Bernardino, CA 92405 Agency: City of San Bernardino 7 Redevelopment Agency 201 North"E" Street, Suite 301 8 San Bernardino, CA 92401 9 Such addresses may be changed by notice to the other party given in the same manner as 10 provided above. 11 D. Attorney's Fees. In addition to any other remedies provided hereunder or available 12 pursuant to law, if either party brings an action or proceeding to enforce, protect or establish any right or remedy hereunder, the prevailing party shall be entitled to recover from the other party 14 its costs of suit and reasonable attorney's fees. The costs, salary ary and expenses of the City 15 Attorney and members of his office in enforcing the Agreement on behalf of the City or Agency 16 shall be considered as "attorney's fees" for the purposes of this paragraph. 17 E. No Third Parties Benefited. This Agreement is made and entered into for the sole 18 protection and benefit of the City A P y and Agency,y, its successors and assigns, and NHSIE, its 19 permitted successors and assigns, and no other person or persons shall have any right of action 20 hereon. 21 F. Agency to File Notices. NHSIE irrevocably appoints, designates, and authorizes the 22 Agency as its agent(said agency being coupled with an interest)to file at its option for record 23 any notices of completion, cessation of labor, or any other notice that the Agency deems 24 /r5 necessary or desirable to protect its interest hereunder. V -10- C1 G. Actions. The City or Agency shall have the right to commence, appear in, or defend 2 any action or proceeding purporting to affect the rights, duties, or liabilities of the parties 3 hereunder, or the disbursement of any proceeds of the Agency allocation of HOME funds. 4 H. Successors and Assigns. The terms hereof shall be binding upon and inure to the 5 benefit of the successors and assigns of the parties hereto; provided, however,that no assignment 6 of NHSIE's rights hereunder shall be made, voluntarily or by operation of law, without the prior 7 written consent of the City or Agency, and that any such assignment without said consent shall 8 be void. 9 I. Construction of Words. Except where the context otherwise requires, words imparting 10 the singular number shall include the plural number and vice versa, words imparting persons 11 shall include firms, associations, partnerships and corporations, and words of either gender shall 12 include the other gender. Loll J. Partial Invalidity. If any provision of this Agreement shall be declared invalid, illegal, 14 or unenforceable, the validity, legality, and enforceability of the remaining provisions hereof 15 shall not in any way be affected or impaired. 16 K. Governing Law. This Agreement and any other instruments given pursuant hereto 17 shall be construed in accordance with and be governed by the laws of the State of California and 18 the pertinent HOME regulations. 19 L. Amendment. This Agreement may not be changed orally,but only by agreement in 20 writing signed by NHSIE and the City. 21 M. Approvals. Where an approval or submission is required under this Agreement, such 22 approval or submission shall be valid for purposes of this Agreement only if made in writing. 23 N. Captions and Headings. Captions and headings in this Agreement are for 24 convenience of reference only, and are not to be considered in construing the Agreement. -11- Q1 O. Entire Agreement. This Agreement shall be executed in triplicate, each of which is 2 deemed to be an original. This Agreement includes 13 pages and Exhibits A, B and C which 3 constitute the entire understanding and agreement of the parties. 4 This Agreement integrates all of the terms and conditions mentioned herein or incidental 5 hereto, and supersedes all negotiations or previous agreements between the parties with respect 6 to the CHDO operations. 7 P. Authority. The individuals executing this Agreement and the instruments referenced 8 herein on behalf of NHSIE each represent and warrant that they have the legal power, right and 9 actual authority to bind NHSIE to the terms and conditions hereof and thereof. 10 11 12 1 14 15 16 17 18 19 20 21 22 23 24 0 -12- G1 IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed 2 the day and year first above written. 3 4 CITY OF SAN BERNARDINO CHDO NEIGHBORHOOD HOUSING SERVICES 5 OF THE INLAND EMPIRE, INC., A California Nonprofit Co ration 6 7 Judith Valles, Mayor s 9 Attest: 10 11 Rachel Clark, City Clerk 12 Approved as to Form and Legal Content: 14 1s 16 City omey 17 18 19 20 21 22 23 24 P:TF s0ousing F=sMOW FomisMONE AGREEh1ENT-97-98.dm Dale 0,aad: 01/18/00 13_ EXHIBIT "A" Neighborhood Housing Services JACK LHILL President, of the Cnai man or the Se rd EDWARD F. MONCRIEF Inland Empire, Inc. Executive Director verve w NHSIE is a non-profit 501(c)(3) housing and neighborhood development corporation established in 1982. The corporation's mission is to revitalize j neighborhoods through housing rehabilitation, down payment assistance, homebuyer education, and neighborhood fix-up/clean-up programs. NHSIE is a NeighborWorksO Organization chartered by the congressionally established Neighborhood Reinvestment Corporation. The organization's prime target area is comprised of a number of communities in the Inland Empire of Southern California, which includes communities in both San Bemardino and Riverside Counties. NHSIE developed the HomeStart Down Payment Assistance Program, designed to help qualified low- and moderate-income homebuyers. HomeStart is funded through contributions from private enterprise. HomeStart is available through a variety of mortgage companies and builders in selected communities throughout the United States. The corporation also administers its Gimme-Five Down Payment Assistance Grant Program funded through the Federal Home Loan Bank and through other public sources. The program provides a grant of up to five thousand dollars to low- and very-low income homebuyers. Qualified buyers may receive additional support in the form of a silent second loan. NHSIE administers down payment assistance programs for the cities of Redlands, Rancho Cucamonga, and Highland. These programs are funded primarily through the jurisdictions' Re-development agencies. Generally, they target families with incomes between 100% and 115% of the area median income. Other NHSIE activities include the acquisition, rehabilitation, and resale of FHA-foreclosed single-family homes, the acquisition and rehabilitation of multi- family units in blighted, low-income neighborhoods, and coordination of residents and volunteers around neighborhood improvement projects. NHSIE has established the HomeOwnership Center a "school for homeownership." The purpose of the center is to support the corporation's commitment to Full-Cycle Lending. The two thousand square foot facility is located adjacent to NHSIE's corporate offices in San demardino. Among the its features are classrooms for group meetings, a counseling room for individual credit-counseling sessions, and a resource library with training materials, periodicals, and videos on issues of credit clean-up and debt reduction, home ownership and home maintenance. The center serves as a central location for pre and post-purchase homebuyer education and down payment assistance. HomeOwnership Center participants attend at least eight hours of homebuyer education classes prior to loan closing. The center's staff and volunteer instructors from the lender community conduct formal homebuyer education `►r classes. Staff also coordinate with a variety of first mortgage lenders in processing Lvinl payment assistance grant and loan documents, and guide families through sing process. (909) 884-6891 •Fax (909) 884.6893 •1390 North •D" Rt -Ann Rornnr 4nn rtn o-dns EXHIBIT "d" Neighborhood Housing Services JACK LHILL President, of the chaimen of(he acaro EDWARD F. MONCRIEt Inland Empire, Inc. E,e<"livs Director Programs and Products NHSIE provides down payment assistance to qualified low- and moderate- income homebuyers through its HomeStart Down Payment Assistance Program, which is funded through contributions from the builder and lender industries. The organization also administers down payment assistance programs for the cities of Redlands, Highland, and Rancho Cucamonga. In 1998, NHSIE provided 256 HomeStart grants and silent second loans totaling $1,260,570 and leveraging $30,267,058 in first mortgage loans. NHSIE closed 41 city-funded grants totaling $315,099 and leveraging $4,225,600 in first mortgage loans. During the same period, the organization's HomeOwnership Training Center provided 24 classes and educated or counseled 356 participants. In addition, NHSIE has recently received approval for a grant in the amount of $500,000 from the Federal Home Loan Bank Affordable Housing Program. The funds will be used exclusively to provide down payment grants to low- and very low-income homebuyers residing in the Inland Empire. First-time homebuyers will receive up to five-thousand dollars toward the purchase of their home. NHSIE is an approved contractor under the City of San Bernardino's Acquisition, Rehabilitation, and Resale (ARR) Program. As an ARR contractor, the organization acquires an average of two FHA-foreclosed properties per month, fully rehabilitates these, and sells them to qualified first-time homebuyers. NHSIE also operates the city's Mobile Home Repair and Owner-Occupied Housing Rehabilitation Programs. The corporation has also acquired, rehabilitated, and now owns and manages (through a property management company) two hundred fifteen units of multi-family housing located in the City of San Bernardino. (909) 884-6891 -Fax (909) 884-6893 01390 North "D" St. •San Bernardino, CA 92405 Y..I.I. A.. Page 2 Jan-19-00 10 . 05A P-02 EXHIBIT "B Neighborhood Housing Services JACK L.HILL r P esidenl, of the Chairmen a,the Board EDWARD F. MONCRIEF Inland Empire, Inc. Eaecutive Direcro( January 19, 2000 Maggie Pacheco Director, Housing & Community Development Economic Development Agency City of San Bernardino 201 No E Street San Bernardino, CA 92401-157 Dear Maggie, We are writing to outline NHSIE's proposed use of$80,000 in CHODO funding from the City of San Bernardino Economic Development Agency. During the coming year, NHSIE will initiate the following activities: 1) As you know, in 1996, NHSIE acquired the 216-unit Royal Palms Apartments in San Bernardino. We have previously upgraded this property and we will continue to maintain and upgrade it as a part of our neighborhood improvement efforts. We are presently looking for additional opportunities to acquire multi-family properties in need of rehabilitation, especially those located within the NIP areas. 2) NHSIE is actively seeking to acquire additional single-family lots, especially within NIP Area One, in order to develop these as Youthbuild sites. 3) NHSIE will work with the Agency to identify single and multi-family properties--especially FHA-foreclosed properties in the NIP areas—that need to be demolished, and might be appropriate for new construction of affordable housing. 4) NHSIE owns five single-family lots in West San Bernardino. We do not believe that it is viable to develop these lots unless we are able to acquire additional lots adjacent to or near these and can, thereby, exert some degree of control over needed neighborhood improvements . We will conduct feasibility studies to determine what surrounding properties Jan-19-00 10 :06A P_03 EXHIBIT "B" Maggle Pacheco 2 Director,Housing d Community Development Economic Development Agency City of San Bernardino can be acquired; and attempt to acquire these in order to enhance the feasibility of development. We look forward to meeting with you to further define and implement these activities. Si rely, o J /Edward F. Moncrief Executive Director Neighborhood Housing Services of the Inland Empire, Inc. Capacity Building Budget 2000 Sources: City of San Bernardino 80,000.00 Total Sources 80,000.00 Uses: Program: Personnel: Director of Construction & Rehabilitation (10%) 6,000.00 Rehabilitation/Development Specialist(50%) 20,000.00 Rehab. Constr. Program Assistant(10%) 3,000.00 Youthbuild Construction Manager(10%) 4,300.00 Executive Director(10%) 8,640.00 Program Development Specialist (15%) 6,480.00 Secretary/Receptionist (15%) 3,240.00 Subtotal 51,660.00 Fringe Benefits @ 22% 11,365.20 Total Program Personnel 63,025.20 Nonpersonnel: ` Mileage 635.00 Training 500.00 Travel 500.00 Total Program Nonpersonnel 1,635.00 Total Program 64,660.20 Administrative: Personnel: Executive Director(5%) 4,320.00 Fiscal Officer(5%) 2,700.00 Executive Assistant (5%) 1,620.00 Secretary/Receptionist(5%) 1,080.00 Subtotal 9,720.00 Fringe Benefits @ 22% 2,138.40 Total Administrative Personnel 11,858.40 Nonpersonnel: Office Space, Utilities, Phone, Janitorial, Rep. & Maint. 2,000.00 Supplies, Printing, Postage, Equipment 1,025.00 Insurance, License, Permits 456.40 Total Administrative Nonpersonnel 3,481.40 Total Administrative 15,339.80 Total Uses 80,000.00 V.r Exhibit "C" / ° ° : * ( 77 §§ 7») § § /»)¥«)¥ ! ! , §) ) 000 - _ , aoEEE � � . ■ . ■ ) /| }} } ( w #\/ | | | { e! | 33 (; *! f | 7kE ; | |7| | |! ! |) \| , � ; EF / @¥ � !{ ¥ 3 330 BO ! \ � » ; ! ! 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