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HomeMy WebLinkAboutR31- Economic Development Agency CITY OF SAN BERNARDINO O R I G { N A L ECONOMIC DEVELOPMENT AGENCY FROM: Emil A.Marzullo SUBJECT: California Housing Foundation, Inc., a non- Interim Executive Director profit 501(c)(3) organization - Amendment No. 1 to the 2008 Low and Moderate Income Housing Funds Loan and Grant Property Acquisition DATE: February 22,2010 Agreement Synopsis of Previous Commission/Council/Committee Action(s): On February 4,2010,Redevelopment Committee Members Johnson, Baxter and Brinker unanimously voted to recommend that the Community Development Commission consider this action for approval. ------------------------ -- - — ------- Recommended Motion(s): (Community Development Commission) Resolution of the Community Development Commission of the City of San Bernardino approving and authorizing the Interim Executive Director of the Redevelopment Agency of the City of San Bernardino ("Agency") to execute Amendment No. 1 to the 2008 Low and Moderate Income Housing Fonds Loan and Grant Property Acquisition Agreement by and between the Agency and California Housing Foundation,Inc. Contact Person(s): Musibau Arogundade Phone: (909)663-1044 Project Area(s): N/A Ward(s): 5ffi Supporting Data Attached: 171 Staff Report 0 Resolution(s)H Agreement(s)/Contract(s)❑Map(s) ❑Letter(s) FUNDING REQUIREMENTS: Amount: S 150,000 Source: Agency Housing Set-Aside Funds Budget Authority: 2009-2010 approved RDA Budget Signature: ` ) Fiscal Review. Emil A. Marzullo,Interim Executive Director R s sus,Intert Admi trative Services Director ------------------------------------ - ------------ --- ---- Com mission/Council Notes: e_'.SJ LIpLr/a.®gyp— // HWgeM.eWOmm DN COm vion\CDC SOIQ03-IS-Ig Califomia Homing FOUrdation,Im.-AmeMmmWoJ doc COMMISSION MEETING AGENDA Meeting Date: 03//15/2010 Agenda Item Number: 1-31 ECONOMIC DEVELOPMENT AGENCY STAFF REPORT CALIFORNIA HOUSING FOUNDATION,INC.,A NON-PROFIT 501(C)(3)ORGANIZATION- AMENDMENT NO. I TO THE 2008 LOW AND MODERATE INCOME HOUSING FUNDS LOAN AND GRANT PROPERTY AQCUISITION AGREEMENT BACKGROUND: California Housing Foundation, Inc. (the "Project Sponsor"), was established in 1998. The Project Sponsor is a California non-profit, public benefit corporation with a 501(c)(3) tax exemption affiliated with the Inland Regional Center ("IRC"). Located in Redlands, their mission is to acquire, develop and/or rehabilitate single-family homes for the benefit of developmentally disabled adults who are presently living in substandard housing or with family members who struggle with meeting the daily needs of these individuals. Not counting its recently acquired San Bemardino properties, the Project Sponsor currently owns and leases 14 homes in the cities of Redlands,Palm Desert, Beaumont, Hemet, Perris and Apple Valley. Based on a review of photographs and discussions with representatives of the IRC, all appear to be operating appropriately and are very well maintained. On November 3, 2008, the Community Development Commission of the City of San Bernardino ("Commission") approved the 2008 Low and Moderate Income Housing Funds Loan and Grant Property Acquisition Agreement ("Agreement") for the two properties located at 6538 North Jordan Lane and 6728 North Ofelia Drive in the City of San Bernardino ("City"). Since the approval of the Agreement, the Project Sponsor has closed escrow and acquired the property located at 6538 North Jordan Lane while the property located at 6728 North Ofelia Drive fell out of escrow. As an alternative site, the Project Sponsor acquired the property located at 6495 North Jordan Lane as a replacement property. Both properties have been rehabilitated. The 6538 North Jordan Lane property is occupied by four developmentally disabled adults while the 6495 North Jordan Lane property is awaiting the Fire Marshal's inspection and approval within a month. Four residents have been qualified to occupy the property. The Redevelopment Agency of the City of San Bernardino's ("Agency") 55-year Covenant Conditions and Restrictions (CC&R) and Deed of Trust securing a $200,000 Agency loan are recorded on each property. Both properties have been added to the Agency affordable housing inventory to address the housing needs identified in the approved Housing Implementation Plan and the General Plan housing element. On January 14, 2010, the Agency received a request for financial assistance from the Project Sponsor for another property. Specifically, the request called for funding support to acquire the property at 3333 West Elisabeth Avenue in the City's 5`h Ward (Attachment 1). Once acquired, the home will be refurbished, landscaped and equipped with furniture to provide permanent housing for developmentally disabled adults (the "Project"). PWg�q�COmm OCV COmmmionlCDC ZOIP03d5-IOCJit IaHwaingFwMabR�m nmmdmmn rvo.rm COMMISSION MEETING AGENDA Meeting Date: 03/125/2010 /x3 Agenda Item Number: f Economic Development Agency Staff Report Amendment No. I —California Housing Foundation, Inc. Page 2 CURRENT ISSUE: Based on a review of the proforma for the 3333 West Elisabeth Avenue property, the Project Sponsor recently submitted an offer to acquire the property for the appraised value of$276,000 which is well below the original May 31, 2006 purchase price of$402,392 paid by the current owner. An additional $122,500 would be used to refurbish, landscape, install new furniture, create a maintenance reserve and to pay for escrow expenses. This will create a total project cost of $398,500. With the IRC's 20% capital contribution of$78,500 and private capital provided by Guild Mortgage in the amount of$170,000, a gap of$150,000 exists which the Project Sponsor is requesting the Agency to fill. In order to identify the number of existing facilities in the immediate area of the Project that provide the same services, Agency Staff reviewed on-line data from the California Department of Social Services ("CDSS"), a community care licensing division that publishes the locations of Adult Residential Facilities and monitors their program activities. If approved, the Project would have to seek licensure through CDSS and their Community Care Licensing Division. When a search was completed, the following six addresses were identified: 6055 Olive Avenue, 6145 Olive Avenue, 4461 Bronson Street, 5110 Sierra Road, 2414 Ogden Street and 2790 Akron Street(Attachment 2). As for staffing, none of the personnel will reside in the home, but will have two or more staff rotating on- site 24 hours a day, 7 days a week to ensure the safety of the residents and the integrity of the home. The staffing requirements for the Project will include one General Manager with an annual salary of$48,000, a Manager,with an annual salary of$36,000 and support staff with average salaries of$10.00 per hour. ENVIRONMENTAL IMPACT: The property acquisition and rehabilitation request is exempt under the California Environmental Quality Act("CEQA")per Public Resource Code 21080.14. FISCAL IMPACT: An amount up to $150,000 would be used from the Agency's Housing Set-Aside Fund to finance the Project. Agency funds will be secured by a Deed of Trust and a Promissory Note and a 55-year affordability covenant will be recorded on the property. Account Budgeted Amount: $150,00 0 Balance as of: February 24, 2010 Balance after approval of this item: RECOMMENDATION: That the Community Development Commission adopt the attached Resolutions. /.a � � I it A. Marzullo,Interim Ez tie Director P\AgeMaa ..D COmminu Tl 201PID-15-10 U,P aHO ,F.o i..,1..-Am ..W EOC COMMISSION MEETING AGENDA Meeting Date: 03/115/2010 Agenda Item Number: l-3 1 Attachment 1 Property at 3333 West Elisabeth Avenue (5th Ward) .n� w _ "� r r.7- c l ♦ ✓ • F '� 1 � U d " .� Z U N • � ,� � A J Q Q r ti 41t r ` _ IL a 0 0 S d w 't x ( i 'VI / 'a � i f m ° a 1 C c . a y A W C O 0 �« LL MM O � r z � Z � r J pmAEc ' L§m° , r���u Attachment 2 California Housing Foundation, Inc. Project Properties O c v ^-\j r �tlQ�AlIN3$ \� g L 7 Vtltl31 q MWANIM — J - 311 'J�L1031 D O U = 0 m W C l LITTLE MOUN7AM OR F � n O = ff a> y O s�. L Ea IL / z. O m 3a K O a�yA o� 3 ��u LL O y g O � w U 1 RESOLUTION NO. COPY 2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE 3 INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY 4 OF THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE AMENDMENT NO. 1 TO THE 2008 LOW AND MODERATE INCOME 5 HOUSING FUNDS LOAN AND GRANT PROPERTY ACQUISITION AGREEMENT BY AND BETWEEN THE AGENCY AND CALIFORNIA 6 HOUSING FOUNDATION, INC. 7 WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency") is a 8 public body, corporate and politic, organized and existing under California Community 9 Redevelopment Law(the "CRL"), as found at Health and Safety Code section 33000, et seq.; and 10 WHEREAS, the Community Development Commission of the City of San Bernardino (the 11 "Commission") is the governing board of the Agency; and 12 WHEREAS, California Housing Foundation, Inc. ("CHF"), was formed in 1998 and 13 incorporated within the State of California as a non-profit organization with the mission of acquiring y 14 and leasing residential properties to licensed operators of facilities that house and care for 15 developmentally disabled adults; and 16 WHEREAS, on November 3, 2008, the Commission approved the 2008 Low and Moderate 17 Income Housing Funds Loan and Grant Property Acquisition Agreement for the acquisition of the 18 properties located at 6538 and 6495 North Jordan Lane residences within the City of San 19 Bernardino; and 20 WHEREAS, CHF has rehabilitated both properties with the 6538 North Jordan Lane 21 property occupied by four disabled individuals and the 6495 North Jordan Lane property is awaiting 22 the Fire Marshal's inspection and approval within a month, and shortly thereafter will be occupied 23 by four approved disabled individuals; and 24 WHEREAS, on January 14, 2010, the Agency received a request for financial assistance 25 from CHF to acquire the property located at 3333 West Elisabeth Avenue; and 26 WHEREAS, CHF will rehabilitate the property with $78,500 of private funds and has O27 secured a private loan in the amount of $170,000 from Guild Mortgage towards the property 28 1 1 acquisition leaving a financial gap of$150,000 (the"Project"); and 2 WHEREAS, the Agency desires to assist CHF with an amount not to exceed $150,000 in 3 Low and Moderate Income Housing Funds loan and grant towards the acquisition of the property 4 in order to further the CHF's mission of providing housing opportunities to developmentally 5 disabled adults; and 6 WHEREAS, the Agency grant and loan financial assistance will be secured with a Deed of 7 Trust and a 55-year Covenant, Conditions and Restrictions recorded on the property; and 8 WHEREAS, the Project is exempt under the California Environmental Quality Act 9 ("CEQA")per Public Resource Code 21080.14; and 10 WHEREAS, it is appropriate for the Commission to take action with respect to approving 11 and entering into Amendment No. 1 to the 2008 Low and Moderate Income Housing Funds Loan 12 and Grant Property Acquisition Agreement ("Agreement") with CHF in the form as attached 13 hereto. 14 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE 15 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS 16 FOLLOWS: 17 Section 1. The Commission hereby approves the Agreement with CHF for the purpose 18 of acquiring and rehabilitating the property located at 3333 West Elisabeth Avenue in the City of 19 San Bernardino and hereby authorizes the Interim Executive Director of the Agency to execute the 20 Agreement on behalf of the Agency together with such technical and conforming changes as may be 21 recommended by the Interim Executive Director of the Agency and approved by the Agency 22 Counsel. 23 Section 2. This Resolution shall take effect from and after its date of adoption. 24 25 26 27 28 ��� I RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE 2 INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE 3 AMENDMENT NO. 1 TO THE 2008 LOW AND MODERATE INCOME HOUSING FUNDS LOAN AND GRANT PROPERTY ACQUISITION 4 AGREEMENT BY AND BETWEEN THE AGENCY AND CALIFORNIA 5 HOUSING FOUNDATION, INC. 6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community 7 Development Commission of the City of San Bernardino at a meeting 8 thereof,held on the day of 2010, by the following vote to wit: Commission Members: Ayes Nays Abstain Absent 9 10 MARQUEZ DESJARDINS 11 BRINKER 12 — DERRY 13 - KELLEY _ 14 JOHNSON 15 MC CAMMACK 16 — 17 18 Secretary 19 20 The foregoing Resolution is hereby approved this day of 2010. 21 Patrick J. Moms, Chairperson 22 Community Development Commission 23 of the City of San Bernardino 24 Approved as to Form: 25 By: 26 Agency C sel 27 28 9 AMENDMENT NO. 1 TO THE 2008 LOW AND MODERATE INCOME HOUSING FUNDS LOAN AND GRANT PROPERTY ACQUISITION AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND CALIFORNIA HOUSING FOUNDATION, INC. This Amendment No. 1 to the 2008 Low and Moderate Income Housing Funds Loan and Grant Property Acquisition Agreement (this "Amendment No. I") is entered into on March 15, 2010, by and between the Redevelopment Agency of the City of San Bernardino (the "Agency"), a public body, corporate and politic, and California Housing Foundation, Inc., a California non-profit public benefit corporation (the "Developer"), and is entered into in consideration of the facts set forth in the following Recital paragraphs: -RECITALS- A. The Developer and the Agency have previously entered into an agreement entitled "2008 Low and Moderate Income Housing Funds Loan and Grant Property Acquisition Agreement", dated November 3, 2008 (the"2008 Agreement'). B. Under the 2008 Agreement, the Developer acquired and rehabilitated properties located at 6538 and 6495 North Jordan Lane within the City of San Bernardino for the benefit of individuals with mental disabilities. C. The Developer is desirous to acquire and rehabilitate the property located at 3333 West Elisabeth Avenue, and seeking Agency assistance in providing One Hundred Fifty Thousand Dollars ($150,000) as gap financing towards the property acquisition(the "Project'). D. The Agency is desirous of assisting the Developer in the acquisition of the Project and provide an amount not to exceed One Hundred Fifty Thousand' Dollars ($150,000) in Low and Moderate Income Housing Funds under this Amendment No. 1 for the Project. F. The Agency has determined that the acquisition of the property pursuant to the 2008 Agreement and this Amendment No. 1 and the fulfillment generally of the purposes of the 2008 Agreement are in the vital and best interests of the City and the Agency. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND CONDITIONS CONTAINED HEREIN, THE AGENCY AND THE DEVELOPER AGREE AS FOLLOWS: Section 1. References to the 2008 Agreement: Defined Terms. (a) Unless the context of the usage of a term or phrase in this Amendment No. 1 may otherwise require, the meaning of words 1 a No or a=deenda Avachments Aaenda Attad,menis Amm s-{mend 30100}L-I0 Cal,fomla Hoo ny Foundaion -Ameadmem No I A,,eemeot docx and phrases as contained in this Amendment No. 1, which are indicated by an initially capitalized letter, shall be the same as set forth in the 2008 Agreement. (b)The information contained in the Recitals as set forth in this Amendment No. 1 is true and correct in all respects. Section 2. Specific Amendments to the 2008 Agreement. (a) The 2008 Agreement is hereby amended by this Amendment No. 1 in the manner as indicated in this Section 2 and which changes and amendments shall be effective from and after the date of approval of this Amendment No. 1 by the Developer and the Agency and execution hereof by the parties. (b) Section 102 of the 2008 Agreement is hereby amended by substituting the property at 6495 North Jordan Lane to replace the property at 6728 North Ofelia Drive in the 2008 Agreement as approved by the Community Development Commission Resolution CDC/2009-31 on July 6, 2009, and adding the 3333 West Elisabeth Avenue property to said Section 102 together with the appropriate update to the"Legal Description of Sites" attached as Exhibit"A"to the 2008 Agreement. (c) Section 402 of the 2008 Agreement is hereby amended by substituting the following chart in place of that as is presently provided in the 2008 Agreement: Acquisition Financing for the Site Developer's Contribution $ 908, 500 Amount of Agency Loan/Grant $ 550. 000 Total Estimated Cost $1,458, 500 (d) The term "Agency Grant" as defined and as used in the 2008 Agreement shall be in an amount equal to Five Hundred Fifty Thousand Dollars ($550,000)pursuant to this Amendment No. 1. Section 3. Effect of Amendment No. 1. Except as modified or amended by this Amendment No. 1, all of the provisions of the 2008 Agreement shall remain in full force and effect following the effective date of this Amendment No. 1. 2 P:aemdas Agenda AmeM1mems:AeendaAmchments Agmms-Amend]010`OI-IS-IO hlifomia HOU ne FOUndaion Amendmem>o IAm emdmx IN WITNESS WHEREOF, the parties hereto have accepted and executed this Amendment No. v 1 upon the terms and conditions and with the provisions as set forth above and as of the date first written above. AGENCY Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic Date: By: Emil A. Marzullo, Interim Executive Director Approved as to Form and Legal Content: By: Agency-Cot4sel DEVELOPER California Housing Foundation, Inc., a California non-profit public benefit corporation Date: By: Title: O 3 P.Aeendan Agenda AnuM1mentl Aimuda Anaelu mas`.Agmus-Meud!010'03-I5-10 Cali forma Hounina Foundation-Amendment No 1 Atonement Eon EXHIBIT"A" LEGAL DESCRIPTIONS OF SITE 1) 6795 NORTH JORDAN LANE, SAN BERNARDINO, CALIFORNIA 92407 LOT 82 OF TRACT NO. 16443, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 300 OF MAPS, AT PAGE 67 THROUGH 72 INCLUSIVE, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPTING THEREFROM ONE-HALF OF ALL OIL CONTAINED IN OR WHICH MAY BE DEVELOPED ON THE PROPERTY HEREIN CONVEYED, AS RESERVED BY HERMAN J. MEYER AND CLARA M. MEYER, IN DEED RECORDED MAY 15, 1953, IN BOOK 3169, PAGE 133 OF THE OFFICIAL RECORDS OF SAN BERNARDINO COUNTY, CALIFORNIA. ALSO EXCEPTING THEREFROM ALL OIL, GAS AND KINDRED SUBSTANCES LYING BELOW A DEPTH OF 500 FEET, BUT WITHOUT THE RIGHT OF SURFACE ENTRY, AS GRANTED IN THE DEED FROM RURAL LAND CO., TO NATIONAL RESOURCES EQUITIES CORPORATION, A CALIFORNIA CORPORATION, RECORDED OCTOBER 20, 1969, IN BOOK 7323 PAGE 356 OF OFFICIAL RECORDS. APN: 0261-661-46-0000 2) 6538 NORTH JORDAN LANE, SAN BERNARDINO, CALIFORNIA 92407 LOT 96 OF TRACT NO. 16443, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS SHOWN BY MAP ON FILE IN BOOK 300 PAGE 67, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 0261-671-48-0000 3) 3333 WEST ELISABETH AVENUE, SAN BERNARDINO, CALIFORNIA 92407 LOT 16 OF TRACT NO. 16443, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 300 OF MAPS, AT PAGE 67 THROUGH 72 INCLUSIVE, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPTING THEREFROM ONE-HALF OF ALL OIL CONTAINED IN OR WHICH MAY BE DEVELOPED ON THE PROPERTY HEREIN CONVEYED, AS RESERVED BY HERMAN J. MEYER AND CLARA M. MEYER, IN DEED RECORDED MAY 15, 1953, IN 4 P agenda:dp<oaz avacemmts kunda nvammem.wc,m s->m.oe 2010 03-1s.10 Corrom„xoo:mg ro-mmion-Amendm>m No i A�em,m do,. BOOK 3169, PAGE 133 OF THE OFFICIAL RECORDS OF SAN BERNARDINO COUNTY, CALIFORNIA. ALSO EXCEPTING THEREFROM ALL OIL, GAS AND KINDRED SUBSTANCES LYING BELOW A DEPTH OF 500 FEET, BUT WITHOUT THE RIGHT OF SURFACE ENTRY, AS GRANTED IN THE DEED FROM RURAL LAND CO., TO NATIONAL RESOURCES EQUITIES CORPORATION, A CALIFORNIA CORPORATION, RECORDED OCTOBER 20, 1969, IN BOOK 7323 PAGE 356 OF OFFICIAL RECORDS. APN: 0261-661-16-0000 O a 5 e-.>aeoea,Agenda Anammmeiaemda An¢hmeoti Ammea-.ameoa201003-15.10 Caerorm:xoo -Founeatloo-A—dmem No IAg mem me.