Loading...
HomeMy WebLinkAboutR35- Economic Development Agency CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY FROM: Emil A.Marzullo SUBJECT: Inland Empire Concerned African American Interim Executive Director Churches (IECAAC), Development Agreement for 1519 West Virginia Street, San Bernardino, CA 92411 DATE: March 9,2010 —" — Svnoosis of Previous Commission/Council/Committee Action(s): On February 18, 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) Motion: That the Community Development Commission of the City of San Bernardino acknowledge the intent of Affordable Housing Solutions of San Bernardino, Inc., a California non-profit corporation, to enter into the Development Agreement for intermediary services with the Inland Empire Concerned African American Churches, a California 501(c)(3) public benefit corporation for the rehabilitation and resale of the property located at 1519 West Virginia Street,San Bernardino,California. Contact Person(s): Carey K.Jenkins Phone: (909)663-1044 Project Area(s): N/A Ward(s): 6% Supporting Data Attached: 2 Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s)0 Letter(s) Federal Neighborhood Stabilization Program FUNDING REQUIREMENTS: Amount: $ 134,627 Source: Funds Y4Lt,/ Budget Authority: FY 2008-2009 Agency Budget Signature: Fiscal Review: Emil A.Marzullo,Interim Executir Duector Lori P ino- eryL� m Ad 'dstrative Services Director Cummission/Council Notes: 6 P:Ugemlul =Dev Cam smZDC NIM3-15-10]E C Devebpmem A,zmem Same COMMISSION MEETING AGENDA Meeting Date: 03/15/2010 Agenda Item Number: ECONOMIC DEVELOPMENT AGENCY STAFF REPORT INLAND EMPIRE CONCERNED AFRICAN AMERICAN CHURCHES (IECAAC), DEVELOPMENT AGREEMENT FOR 1519 WEST VIRGINIA STREET SAN BERNARDINO, CA 92411 BACKGROUND: On January 4, 2010, the Community Development Commission of the City of San Bernardino ("Commission") approved a memorandum of understanding outlining the conditions by which the Inland Empire Concerned African American Churches ("IECAAC") would participate in the redevelopment of selected single family residences that the Redevelopment Agency of the City of San Bernardino's ("Agency") affiliated nonprofit, Affordable Housing Solutions ("AHS") would purchase. As a local non-profit organization, IECAAC has demonstrated an interest and capacity for developing affordable housing in the City. To this end, the Agency through AHS, has acquired a single family residence located at 1519 West Virginia Street, San Bernardino CA 92411 ("Subject Property"). The recently acquired residence was a former bank-owned property that has been a blighting influence in the neighborhood. The opportunity to rehabilitate the Subject Property is a step towards stabilization efforts the Agency has begun in this area as it is within one mile of the proposed catalytic senior housing development to be constructed at the southwest comer of Highland and Medical Center Drive. The Subject Property coupled with other single family redevelopment opportunities in the immediate vicinity of the proposed senior housing development will serve to revitalize the area. In addition, the redevelopment of the Subject Property provides an opportunity for a locally based non-profit housing developer to increase its organizational capacity for future development opportunities. CURRENT ISSUE: The Agency recommends that IECAAC serve as the intermediary to rehabilitate the Subject Property for the purpose of eventually reselling it to an income eligible household pursuant to Neighborhood Stabilization Program ("NSP") guidelines. Under the terms of the executed Memorandum of Understanding, the Agency has identified and acquired the Subject Property and is ready for the IECAAC to initiate its rehabilitation. The Agency shall retain ownership throughout the rehabilitation and sales period and contract with the IECAAC to manage the rehabilitation, property management, security and marketing of the Subject Property. During the marketing phase the IECAAC will be responsible for marketing the property to income eligible homebuyers and, if necessary, qualifying the eventual homebuyer for down payment assistance through the Agency's Down Payment Assistance Program. As compensation for its services, the IECAAC shall be paid a fee for performing the property management function, overseeing and managing the rehabilitation work, marketing the Subject Property and qualifying eligible homebuyers. The amount of this fee has been negotiated between the Agency and the IECAAC. At no time shall the IECAAC participate in the profit, if any, generated by P� &enGTomm Commmoa\ 20IM3.15-10 @CAAC Dwe W=M A@ mS$R COMMISSION MEETING AGENDA Meeting Date: 03/15/2010 Agenda Item Number: ASS' Economic Development Agency Staff Report Development Agreement—Inland Empire Concerned African American Churches Page 2 the sale of the property to a qualified homebuyer. The financial assistance provided by the Agency shall be derived from various affordable housing funding sources, including the NSP and the Agency's Housing Set-Aside Funds in the event a down payment assistance loan is eventually used. ENVIRONMENTAL IMPACT: The property acquisition and rehabilitation request is exempt under California Environmental Quality Act ("CEQA") per the Public Resource Code 21083 or CEQA Guidelines Section 15194 "Affordable Housing Exemption." FISCAL IMPACT: There is no City General Fund impact as a result of this Action. Funds used for the acquisition, rehabilitation and ultimate resale of the Subject Property are derived from the federal NSP allocation administered by the Agency. Account Budgeted Amount: $134,627 in Neighborhood Stabilization Program("NSP") Funds. Balance as of: March 9,2010 Balance after approval of this item: $2,506,580 in the Acquisition, Rehabilitation and Resale component of the overall NSP. RECOMMENDATION: That the Community Development Commission adopt the Motion. Emil A.Manullo, Interim xectitive Director P:\ASOOa Tommo CO ismonTM 201=3-15-10 MCA CUe J =m AWmmm SR COMMISSION MEETING AGENDA Meeting Date: 03/15/2010 Agenda Item Number: 93T AFFORDABLE HOUSING SOLUTIONS OF SAN BERNARDINO,INC. DEVELOPMENT AGREEMENT FOR INTERMEDIARY SERVICES [INLAND EMPIRE CONCERNED AFRICAN AMERICAN CHURCHES] This Development Agreement for Intermediary Services (the "Agreement") is made and entered into as of March 15, 2010, by and between Affordable Housing Solutions of San Bernardino, Inc. ("AHS"), a California 501(c)(3) public benefit corporation, and Inland Empire Concerned African American Churches, a California 501(c)(3) public benefit corporation, ("Consultant"). NOW, THEREFORE, IN CONSIDERATION OF THE COVENANTS AND MUTUAL PROMISES CONTAINED HEREIN AND FOR SUCH OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED, THE PARTIES HERETO AGREE AS FOLLOWS: 1. Supervision of Consultant. The AHS officers and or their assignee's designated in Exhibit"F" attached hereto (collectively, the "AHS Representatives") shall be responsible for the direction of any work to be performed by the Consultant and any other consultants or subconsultants to AHS under this Agreement. The Consultant shall not undertake any work under the terms of this Agreement, unless instructed to do so by any one of the AHS Representatives. No other AHS representative is authorized by AHS to request services from the Consultant, pursuant to this Agreement. Approval by any one of the AHS Representatives shall constitute approval by AHS. 2. Term of Agreement. The term of this Agreement shall commence on the date first appearing in this Agreement (the "Effective Date") and will terminate six (6) months after this date, unless earlier terminated as provided in this Agreement. AHS will have the option to extend the term of this Agreement at the sole option and discretion of AHS with the written consent of the Consultant. AHS reserves the right through the actions of the Chief Executive Officer or the Chief Operating Officer of AHS to terminate this Agreement at any time either with or without cause and at the sole convenience of AHS upon delivery of notice of termination to the Consultant; provided, however, that upon the effective date of any such termination, AHS shall be responsible to pay and/or reimburse the Consultant for all services, materials and supplies as may have been furnished to AHS prior to the date of the termination of this Agreement in accordance with the Scope of Services as referenced in Section 3. 3. Scope of Consultant Services. AHS hereby retains the Consultant to provide the professional consulting services set forth in the Scope of Services attached hereto as Exhibit "E" and incorporated herein by this reference. The Consultant hereby agrees to perform the work set forth in the Scope of Services, in accordance with the terms of this Agreement. The Consultant shall perform the services as set forth on said Scope of Services within the time periods to be identified by the appropriate AHS Representative. The Consultant shall comply with those laws, regulations or ordinances governing fair housing and equal opportunity practices and the -1- e:wseod.ay.�em.Arc clunrnuAgeM.A,.h...�,.�20IM3-1s10�MC A,11e..m-Fir drn abatement of lead-based paint, asbestos and mold practices as required under the Neighborhood Stabilization Program ("NHS") promulgated by the United States Department of Housing and Urban Development("HUD")pursuant to the provisions of the Housing and Economic Recovery Act of 2008, Public Law 110-289 — July 30, 2008, Title III — Emergency Assistance for the Redevelopment of Abandoned and Foreclosed Homes, Section 2301, et seq., as the same may be hereafter amended, restated or supplemented from time-to-time, and the Notice of Allocations, Application Procedures, Regulatory Waivers Granted to and Alternative Requirements for Emergency Assistance for Redevelopment of Abandoned and Foreclosed Homes Grantees under the Housing and Economic Recovery Act, 2008 issued by HUD and found at the Federal RegisterNol. 73, No. 194/Monday, October 6, 2008/Notices, as the same may be hereafter amended,restated or supplemented from time-to-time (collectively,the "NSP Regulations") 4. Payment by AHS for Work Performed by the Consultant. A. AHS shall compensate the Consultant for completion of the services described in the Scope of Services set forth in Exhibit "E", "Scope of Services", in accordance with the guidelines stipulated in Exhibit"H", "Consultant Payment and Reimbursement". B. The compensation designated in subsection 4.A. shall be the "Total Fee" for the performance of the work and the delivery of the final work product materials, as set forth in the Scope of Services for each property acquired directly or indirectly by AHS for which the services were provided by the Consultant in accordance with this Agreement. The Total Fee shall include, but not be limited to, the materials and salaries of all subcontractors and vendors retained by the Consultant and all employees of the Consultant to perform work pursuant to this Agreement and all general overhead expenses of the Consultant inclusive of all costs and expenses incurred for mileage, travel, graphics, telephone, printing, fax transmission, postage, copies and such other expenses related to completion of the work set forth in the Scope of Services. C. The Consultant shall invoice AHS for eligible predevelopment expenses and work performed by the Consultant under this Agreement through funds draw requests submitted by the Consultant in accordance with AHS's policies and procedures, and approved by AHS, on a monthly basis, or on a more frequent basis if requested by the Consultant and approved by AHS, with the first draw request occurring no earlier than two(2)weeks after the Effective Date. D. The Consultant shall submit draw requests under this Agreement to: Affordable Housing Solutions of San Bernardino, Inc. Attention: Chief Operating Officer 201 North`aE" Street, Suite 301 San Bernardino, California 92401 E. The Consultant's funds draw request shall set forth the cost of any direct labor and materials incurred in performance of the Scope of Services, the appropriate portion of fees described in Exhibit "H", as applicable, the cost of any permits or licenses required to perform -2- e�Mgeada nnaehmemwgenda 201=3-15-10 MenseD ebpmem AWE,-Fnw.d the Scope of Services, and any other costs approved by AHS. Each draw request submitted by the Consultant shall include copies of all third party invoices for any subcontractors or other consultants hired, any invoices for materials, any conditional and unconditional lien releases for invoices submitted by subcontractors or other consultants, and any forms or documents provided by AHS that AHS requires to be included as part of the Consultant's draw request. All funds draw requests shall be signed by the Consultant and approved and signed by an AHS Representative or an AHS designated agent. Upon receipt of the Consultant's draw request package, AHS shall review the draw request package and notify the Consultant whether it approves of the draw request within three (3) working days after receipt of the draw request. AHS shall issue a check or wire transfer to the Consultant equal to the total amount of those costs included in the draw request and approved by AHS. 5. Records Retention. Records, maps, field notes and supporting documents and all other records pertaining to the use of funds paid to the Consultant hereunder shall be retained by the Consultant and shall be made available to AHS for examination and for purposes of performing an audit for a period of five (5) years from the date of expiration or termination of this Agreement or for a longer period, as required by law. Such records shall be available to AHS and to appropriate county, state or federal agencies and officials for inspection during the regular business hours of the Consultant. If the Consultant does not maintain regular business hours, then such records shall be available for inspection between the hours of 9 a.m. and 5 p.m. Monday through Friday, excluding federal and state government holidays. In the event of litigation or an audit relating to this Agreement or funds paid to the Consultant by AHS under this Agreement, such records shall be retained by the Consultant until all such litigation or audit has been resolved. 6. Indemnification. The Consultant shall defend, indemnify and hold harmless AHS, its officers, employees, representatives, and agents (collectively, the "Indemnified Parties") from and against any and all actions, suits, proceedings, claims, demands, losses, costs and expenses, including audit fees and other audit related costs, legal costs and attorneys fees, for injury or damage of any type claimed as a result of the acts or omissions of the Consultant, its officers, employees, subcontractors and agents, arising from or related to performance by the Consultant of the work required under this Agreement; provided, however, in no event shall the Consultant be liable to the Indemnified Parties in the event that any such actions, suits, proceedings, claims, demands, losses, costs and expenses result from the gross negligence, fraudulent conduct or willful misconduct of the Indemnified Parties, or any one of them. Moreover, the Consultant shall not be liable to the Indemnified Parties for defects not normally identified. Notwithstanding the foregoing, under no circumstances shall the Consultant be liable to the Indemnified Parties as a result of the failure of AHS to provide to the Consultant any amounts due to the Consultant in accordance with this Agreement, unless such failure was the result of gross negligence, fraudulent conduct or willful misconduct on the part of the Consultant. -3- P\Agen"s\AgmdaAnxhmems4gcm A hmm,s\Ag to Am WIOW3-1}10@.CAACp Iopmem AWm mm,-Fir ,dm Notwithstanding anything to the contrary provided in this Agreement, it is specifically understood and agreed, such agreement being a primary consideration for the execution of this Agreement by the Consultant, that there shall be absolutely no personal liability on the part of any shareholder, director, officer, manager, member or employee of the Consultant with respect to any of the terms, covenants and conditions of this Agreement. The Agency hereby waives all claims, demands and causes of action against the shareholders, directors, officers, members or employees of the Consultant in the event of any breach by the Consultant of any of the terms, covenants and conditions of this Agreement. 7. Insurance. The Consultant shall maintain insurance, as set forth in Exhibit "G" to this Agreement, throughout the term of this Agreement, or in lieu of this insurance coverage, the Consultant shall require its designated General Contractor to maintain such insurance as set forth in Exhibit "G" and name the Consultant, AHS and the Redevelopment Agency of the City of San Bernardino ("Agency") as Additional Insureds under such insurance. The Consultant shall remain liable to AHS pursuant to Section 6 above to the extent the Consultant is not covered by applicable insurance for all losses and damages incurred by AHS that are caused directly or indirectly through the actions or inactions, willful misconduct or negligence of the Consultant in the performance of the duties incurred by the Consultant pursuant to this Agreement. AHS shall maintain insurance against loss or damage to real property under an "all risk" or "special form" property insurance policy, which shall include coverage against all risks of direct physical loss, including loss by fire, lightning, terrorism, ordinance or law, and other risks normally included in the standard ISO special form (which shall include flood insurance if the property is located within a flood hazard area and which shall include earthquake insurance if the property is located in an area where earthquake insurance is customarily maintained for similar residential property). Such insurance shall be in amounts sufficient to prevent the Consultant from becoming a co-insurer under the policy, and in any event, after application of deductible, in amounts not less than 100%of the full insurable replacement cost. 8. Press Releases. Press or news releases, including photographs or public announcements, or confirmation of the same related to the work to be performed by the Consultant under this Agreement shall only be made by the Consultant with the prior written consent of AHS, which consent shall not be unreasonably withheld. This Section 8 does not apply to the advertising or other promotional materials used by the Consultant to sell the Rehabilitated Home. 9. Default and Remedies. A. The occurrence of any of the events listed in Exhibit "J", Section A.(1) through (7), shall after the giving of any written notice described therein, constitutes a default by the Consultant hereunder("Event of Default"). B. Upon the occurrence of an Event of Default, AHS may, in its sole discretion, take any of the actions listed in Exhibit"J", Section B.(1)through(7). P\AgeMssUgeods AnacM1ments\AeMa AnechmemsWgrmis-Amend 301M-15-10 MCAACO elopmmAgmmem-FiW d. it C. Any failure or delay by a party in asserting any of its rights or remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a default. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties under this Agreement are cumulative and the exercise by any party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. D. The Consultant has the right to implement the remedies in Exhibit "J", Section C.(1) and (2), upon the default or failure of AHS to meet any of its obligations under this Agreement without curing such failure within thirty (30) calendar days after receipt of written notice of such failure from the Consultant specifying the nature of the event or deficiency giving rise to the default and the action required to cure such deficiency. 10. Termination. A. This Agreement may be terminated by either party for any reason by giving the other party fifteen (15) calendar days' prior written notice. AHS shall pay the Consultant for all work authorized by AHS and completed,prior to the effective termination date. B. In the event of a termination of this Agreement, the Consultant shall provide all documents, notes, maps, reports, data or other work product developed in performance of the Scope of Services of this Agreement to AHS within ten(10) calendar days after such termination and without additional charge to AHS. C. In the event of the expiration or early termination of this Agreement for any reason, AHS shall pay and/or reimburse the Consultant for all services, materials and supplies as may have been furnished to AHS prior to the date of the termination of this Agreement. 11. Notice. All notices given hereunder shall be in writing. Notices shall be presented in person or by certified or registered United States Mail, return receipt requested, postage prepaid or by overnight delivery by a nationally recognized delivery service to the addresses set forth below. Notice presented by United States Mail shall be deemed effective on the third (3`d) business day following the deposit of such Notice with the United States Postal Service. This Section 11 shall not prevent the parties hereto from giving notice by personal service or telephonically verified fax transmission, which shall be deemed effective upon actual receipt of such personal service or telephonic verification. Either party may change their address for receipt of written notice by notifying the other party in writing of a new address for delivering notice to such party. CONSULTANT: Inland Empire Concerned African American Churches Attention: President 1777 West Baseline Road San Bernardino, CA 92411 -5- PWgendmWgmdeAnnhmentMpe aAttechments\Ag trAmeM 2010\03-15-10 ff.CAACR Wp MAg mt -Pim.d AHS: Affordable Housing Solutions of San Bernardino, Inc. Attention: Carey K. Jenkins, Chief Operating Officer 201 North"E" Street, Suite 301 San Bernardino, California 92401 Phone: (909)663-1044 Fax: (909) 888-9413 12. Compliance with Law. The Consultant shall comply with all local, state and federal laws, including,but not limited to, environmental acts, rules and regulations applicable to the work to be performed by the Consultant under this Agreement. The Consultant shall maintain all necessary licenses and registrations for the lawful performance of the work required of the Consultant under this Agreement. 13. Nondiscrimination. The Consultant shall not discriminate against any person on the basis of race, color, creed, religion, natural origin, ancestry, sex, marital status or physical handicap in the performance of the Scope of Services of this Agreement. Without limitation,the Consultant hereby certifies that it will not discriminate against any employee or applicant for employment because of race, color, religion, sex, marital status or national origin. Further, the Consultant shall promote affirmative action in its hiring practices and employee policies for minorities and other designated classes in accordance with federal, state and local laws. Such action shall include,but not be limited to,the following: recruitment and recruitment advertising, employment, upgrading and promotion. In addition, the Consultant shall not exclude from participation under this Agreement any employee or applicant for employment on the basis of age,handicap or religion in compliance with state and federal laws. 14. Consultant and each Subcontractor are Independent Contractors. The Consultant shall at all times during the performance of any work described in the Scope of Services be deemed to be an independent contractor. Neither the Consultant nor any of its subcontractors shall at any time or in any manner represent that it or any of its employees are employees of AHS or any department, commission or subsidiary entity of AHS. AHS shall not be requested or ordered to assume any liability or expense for the direct payment of any salary, wage or benefit to any person employed by the Consultant or its subcontractors and vendors to perform any item of work described in the Scope of Services. The Consultant is entirely responsible for the immediate payment of all subcontractor liens. 15. Severability. Each and every section of this Agreement shall be construed as a separate and independent covenant and agreement. If any term or provision of this Agreement or the application thereof to certain circumstances shall be declared invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to circumstances other than those to which it is declared invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. -6- eugen".ugew A=hmem.vgen"n bmm sV�20IM3-15-10 MCC CD ebpmem AVe mm-Fir dm 16. Entire Agreement. This Agreement constitutes the entire agreement between the parties. This Agreement supersedes all prior negotiation, discussions and agreements between the parties concerning the subject matters covered herein. The parties intend this Agreement to be the final expression of their agreement with respect to the subjects covered herein and a complete and exclusive statement of such terms. 17. Amendment or Modification. This Agreement may only be modified or amended by written instrument duly approved and executed by each of the parties hereto. Any such modification or amendment shall be valid,binding and legally enforceable only if in written form and executed by each of the parties hereto, following all necessary approvals and authorizations for such execution. Any such amendment or modification to be effective as to AHS must be approved by its officers or designated representatives. 18. Governing Law. This Agreement shall be governed by the laws of the State of California. Any legal action arising from or related to this Agreement shall be brought in the Superior Court of the State of California in and for the County of San Bernardino. 19. Non-Waiver. Failure of either party to enforce any provision of this Agreement shall not constitute a waiver of the right to compel enforcement of the same provision or any remaining provisions of this Agreement. 20. Assignment. This Agreement shall be assignable by the Consultant only if the Consultant obtains the prior express written consent of AHS, which consent may be withheld by AHS in its sole discretion. Notwithstanding anything to the contrary in this Agreement, no purported assignment of this Agreement shall be effective if such assignment would violate the terms, conditions and restrictions of any applicable governmental restrictions. AHS' consent to such assignment shall be expressly conditioned upon (i) the assignee's execution of such documents as required by AHS in its sole discretion, including, without limitation, any and all documents deemed necessary by AHS to provide for said assignee's assumption of all of the obligations of the Consultant hereunder and under any documents executed by the Consultant in connection herewith, and (ii) AHS' approval of the financial and credit-worthiness of such proposed assignee and the assignee's ability to perform all of the Consultant's obligations under this Agreement and all documents executed in connection herewith, as may be determined by AHS at its sole discretion. 21. Representations of Persons Executing the Agreement. The persons executing this Agreement warrant that they are duly authorized to execute this Agreement on behalf of and bind the parties each purports to represent. 22. Execution in Counterparts. This Agreement may be executed in one (1) or more counterparts, each of which will constitute an original. 23. Effectiveness of the Agreement as to AHS. This Agreement shall not be binding on AHS until signed by an authorized representative of the Consultant, and approved and executed by the Chief Executive Officer of AHS or his designee. The Agency shall provide -7- P Ap Wgeode AnwhmenwUpn"ktwbmmuNgmu-AmeM 2010W3-1 SI0� COeve p=a A�-Fwl.doc the Consultant with written notice of the approval of this Agreement upon Community Development Commission of the City of San Bernardino ("Commission")action. 24. Conflicts of Interest. The Consultant hereby represents that it has no interests adverse to AHS or the Agency, at the time of execution of this Agreement. The Consultant hereby agrees that, during the term of this Agreement, the Consultant shall not enter into any agreement or acquire any interests detrimental or adverse to AHS or the Agency. Additionally, the Consultant hereby represents and warrants to AHS and the Agency that the Consultant and any partnerships, individual persons or any other party or parties comprising the Consultant, together with each subcontractor who may hereafter be designated to perform services pursuant to this Agreement, do not have and, during the term of this Agreement, shall not acquire any property ownership interest, business interests, professional employment relationships, contractual relationships of any nature or any other financial arrangements relating to AHS or the Agency, property over which AHS or the Agency have jurisdiction or any members or staff of AHS or the Agency that have not been previously disclosed in writing to AHS, and that any such property ownership interests, business interests, professional employment relationships, contractual relationships of any nature or any other financial arrangements will not adversely affect the ability of the Consultant to perform the services to AHS as set forth in this Agreement. AHS acknowledges and agrees that the foregoing shall not prohibit the Consultant or any affiliates thereof from managing or applying for funds granted by HUD pursuant to the NSP and allocated or awarded to jurisdictions outside of the City of San Bernardino, California, or from receiving a direct grant of funds from HUD pursuant to the NSP. 25. Non-Exclusivity. This Agreement shall not create an exclusive relationship between AHS and the Consultant for the services set forth in Exhibit "E" or any similar or related services. AHS may, during the term of this Agreement, contract with other consultants for the performance of the same, similar or related services as those that may be performed by the Consultant under this Agreement. AHS reserves the discretion and the right to determine the amount of services to be performed by the Consultant for AHS under this Agreement, including, not requesting any services at all. This Agreement sets forth the terms upon which any such services will be provided to AHS by the Consultant, if such services are requested by AHS, as set forth in this Agreement. 26. Consequential Damaees and Limitation of Liability. AHS and the Consultant agree that except as otherwise provided in this Section 26, in no event will either be liable to the other under this Agreement for any damages including, but not limited to, special damages, loss of revenue, loss of profit, operating costs or business interruption losses, regardless of cause, including, breach of contract, negligence, strict liability or otherwise. The limitations and exclusions of liability set forth in this Section 26 shall apply regardless of fault, breach of contract, tort, strict liability or otherwise of the Consultant and AHS, their employees or subconsultants. 27. Business Reeistration Certificate. The Consultant warrants that it possesses, or shall obtain immediately after the execution and delivery of this Agreement, and maintain during the period of time that this Agreement is in effect, a business registration certificate pursuant to _g_ P Vg d.,\A,e Albc m.\Agm,rA .d 201%0345-10 IECAAC Oev<lopment Afire .,-Finel.do Title 5 of the City of San Bernardino Municipal Code, together with any and all other licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to be maintained by the Consultant to conduct its business activities within the City. [SIGNATURES ON FOLLOWING PAGE] II -9- PUgeMasUpntlaAnachmeMt 4eMa Anachm=sVg teA 201010)-15-10@C CI Iopment Agmemem-Final doc IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date indicated next to the authorized signatures of the officers of each of them as appear below. AHS Affordable Housing Solutions of San Bernardino, Inc. a California 501(c)(3)public benefit corporation Dated: By: Emil A. Marzullo, Chief Executive Officer Approved as to Form: i I By: Timothy J. Sab4 Agency Counsel CONSULTANT Inland Empire Concerned African American Churches a California 501(c)(3)public benefit corporation Dated: By: Name: Title: -10- P:UgeMsWgcr Attee MsUgen"Attazh tstA®tnlo- W201 PA3-15-10 ML O Wpmrnt Agsament-FulAM Exhibit"A" Legal Description I - 11- PU4eWas tApnda AweW n ts SmaAtt mwU\A nt Amend 201003-15-I0 MCAAC Deelomem A�ent-Fiml dm Order Number: RRI-3420554 t - Page Number: 6 - LEGAL DESCRIPTION Real property In the Gty of San Bernardino,County of San Bernardino,State of California, described as follows: LOT 42,TRACT NO. 3538, IN THE CITY OF SAN BERNARDINO,COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,AS PER PLAT RECORDED IN BOOK 46 OF MAPS PAGE 56, RECORDS OF SAID COUNTY. APN: 0143-133-42 i I I RrstAmencan Title Exhibit `B" Total Development Cost Pro Forma i -12- P\AganiasWg—la Atla cntaUgeMa AaacluncnaA nnaa mard 2010\03-15-10@CAAC Development Ag nnean-Final.doc EXHIBIT B TO DEVELOPMENT AGREEMENT TOTAL DEVELOPMENT COST PRO FORMA Acouisiton Costs List Price 44,500 Appraisal value before rehab Discount 445 Amount of discount allowed by the seller Purchase Price 44,055 Difference between List Price and Discount Closing Costs 531 Escrow and Title Fees, etc. Subtotal Acquisition Costs 44,586 Rehabilitation Costs Direct Rehabilitation 54,460 Cost estimated to complete scope of work Contingency 5,446 Property Management Fee 1. 13,592 Intermediary fixed fee for managing property Subtotal Rehabilitation Costs 2. 73,498 Indirect Costs Property Taxes 175 Property taxes incurred during holding period Homebuyer Qualifying Fee 3. 800 Intermediary fixed fee per homebuyer General Contractor Fee/Olacy Co. 4. 8,568 Intermediary Fee: fixed % of Dir. Rehab.+ Contingency Sales Commission 5. 4,500 Intermediary Fee: % of EDA Final Price Sales Closing Costs 2,500 Escrow, title fees, taxes etc. at sale closing. Insurance Subtotal Indirect Costs 6. 16,543 Financing Costs Construction Loan Interest 7. C 0.'..Interest paid on construction/rehab loan Loan Origination Fee 8. 0 Fee for construction/rehab loan Subtotal Financing Costs 9. - TOTAL DEVELOPMENT COST 10 134,627 Sales Price Estimatd Rehabilitated Market Sales Price 75,000 Estimated value of home after rehabilitation Total Development Cost 11. 134,627 Total cost calculated above(No. 10) EDA FINAL SALES PRICE 12 EEE The lower of market sales price or tot. dev, cost Intermediary Proceeds Property Management Fee 13. 13,592 From No. 1 above General Contractor Fee/O.H. 14, 8,568 From No. 3 above Homebuyer Qualifying Fee 15, 800 From No.4 above Sales Commission Fee 16. 4,500 From No. 5 above Reimbursement Const. Loan Int. 17. - From No. 7 above Reimbursement Loan Orign. Fee 18. - From No. 8 above TOTAL INTERMEDIARY PROCEEDS 19 27,460 Total of 13 through 18 above Exhibit"C" Rehabilitation Scope of Work i I -13- PUgeMwt geWa AunhmentMgen"Aunhments\Agmtt-A 2010W3-1510 MCAAC Dw pmam AVe -Fwl.doc EXHIBIT "C" TO DEVELOPMENT AGREEMENT REHABILITATION SCOPE OF WORK CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY HOUSING AND COMMUNITY DEVELOPMENT DEPARTMENT COST ESTIMATE WORKSHEET Date: January 27, 2010 Time: Location: 1519 W. Virginia Street, San Bernardino, CA 92411 Job Duration: Estimator: 1 TEMPORARY FACILTIES 2 Remove Chain Line Fence 1 EA 180.00 3 EA 4 Other 5 SITE WORK 6 Final Cleaning 150.00 7 Exterior Demolition 8 Grading SF 9 Excavation SF 10 Remove damaged flat concrete in rear yard 1 EA 1,500.00 11 Approach: Remove and Install New SF 12 Sidewalk: Remove and Install New SF 13 Hazardous Waste Remidiation 14 15 New Wrought Iron Fence LF 16 New Chain Link Fence LF 17 New Wood Fence 210 EA 3,150.00 18 Remove/Install Block Wall LF 19 LANDSCAPING 20 Remove and/or Trim Trees 1 EA 700.00 21 Install Sprinkler System 1 EA 1,500.00 22 Hydro Seed Yard } SF 23 Level Front Yard 1 EA 100.00 24 INTERIOR DEMOLITION 25 Repair all damaged and removed Interior 1 EA 1,200.00 Plaster and Drywall 26 Removal of other items 27 HAZARDOUS COMPONENTS ABATEMENT 28 Lead 29 Asbestos 30 Mold 31 Other 32 33 FOUNDATIONS 34 35 Replace soffit, gable and crawlspace screens 1 ALL All line items will be performed according to City of San Bernardino Economic Development Stabilization Program Building Standards 36 Replace and Install New Access Door EA 100.00 37 Construct New Access Well with Door EA 100.00 38 Footings SF 39 Concrete SF 40 FRAMINGIWOOD 41 Studs LF 42 Other LF 43 EXTERIOR 44 Sandblast 1 SY 3,600.00 45 Colorcoat, repair all cracks, holes and } 1 46 damage areas SY 47 Wrap and Stucco SY 48 Insulation SF 49 EXTERIOR WINDOWS 50 Replace all windows with low-e 6 EA 2,040.00 51 Missing Putty EA 52 Install new screens EA 53 Replace broken glass panes EA 54 Remove and Install new aluminum EA 55 Block frame single hung or sliders 56 Replace front security door 1 EA 150.00 57 window EA 58 Aluminum -slider 4'x3' standard frame EA 59 Aluminum -slider 4'x3'block frame EA 60 Aluminum -slider hung 3'x4'standard EA 61 Aluminum -slider hung 3'x4' block EA 62 Aluminum -slider 5'x4'standard frame EA 63 Aluminum -slider 5'x4' block frame EA 64 Aluminum -single hung 3'x5' standard frame EA 65 Aluminum -single hung 3'x5' block EA 66 Aluminum -slider 3'x2'standard EA 67 Aluminum -slider 3'x2' block EA 68 Install vertical blinds on dining, LR& bedrooms 4 EA 300.00 69 EXTERIOR DOORS 70 Garage: Remove and Install ALL 650.00 71 Garage side door,jamg, casing &lockset 1 EA 325.00 72 Entry Door EA 325.00 Replace front door casing 1 EA 73 Replace mail boxt door 1 EA 74 ROOFING 75 Si. Complete tear off roof and sheathing 1 76 Installation of aluminized sheathe 1 77 Install compostion roof to code-30 Yr. 1 5,150.00 78 Replace all facia with new six inch fascia 1 450.00 79 Remove all Install gutter and 80 downspouts LF 180.00 81 INTERIOR CONSTRUCTION All line items will be performed according to City of San Bernardino Economic Development Stabilization Program Building Standards 82 Install R-30 Insulation in attic 1 EA 1,500.00 83 Drywall SF 84 Hollow-core interior door withhinges and 3 EA 465.00 Installation in an existing jamb. Hardboard wood-textured and embossed 85 Repair bedroom closet doors 1 EA 150.00 86 Shower doors EA 87 Tub Enclosure EA 88 Laundry door EA 89 Other EA 90 FLOORING 91 Carpet Allowance 1 SY 1,200.00 92 Ceramic Tile SF 93 Linoleum 1 SY 600.00 94 Hardwood SF 95 Other 96 PAINTING 97 Prep and paint interior complete two coats 1 EA 1,250.00 98 Stains(kitchen, bath and other cabinets) SF 99 Repair all damaged SF 100 Paint exterior wood 1 EA 850.00 101 CARPENTRY,CABINETS AND MILLWORK 102 Remove and Install new cabinets 1 2,850.00 103 Install and Replace Formica Counter tops 1 EA 650.00 104 Repair framing and plaster as necessary 1 EA 150.00 Repair hall closet doors&cabinets 1 EA 200.00 105 PLUMBING 106 Bathtub&Shower surround 1 EA 480.00 107 Lavatory 1 EA 250.00 108 Kitchen Sink 1 EA 160.00 109 Garbage Disposal 1 EA 80.00 110 Laundry Sink EA 50.00 111 Faucets kitchen, bath&shower 3 EA 350.00 112 Bathtubs EA 113 Tub Wall Kits EA 114 Shower EA 115 Water Heater 1 EA 400.00 116 Roto Root(clean)all drain lines to street ALL 150.00 117 Remove and Install new EA 150.00 118 Anti-syphon hose bibbs Replace cleanout cover at kitchen exterior 1 EA 50.00 Repair water leak at rear hose bib 1 EA 100.00 119 Interior water supply ball valve with 1 EA 150.00 pressure valve 120 HVAC 121 Install new system lincluding ducts& 1 EA 5,900.00 thermostat 122 Repair duct work LF All line items will be performed according to City of San Bernardino Economic Development Stabilization Program Building Standards 123 Repair HVAC Unit EA 124 Replace HVAC Unit EA 125 Remove wall heater 1 50.00 126 Other 127 ELECTRICAL 128 Remove and Install new light fixture 7 EA 3,700.00 129 Remove and Install new GFCI outlets EA 130 Remove and Install circuittoutlet EA 131 Install new GFCI outlet 3 EA 132 Remove and Install new circuit breaker EA 133 Remove and Install new wiring LF (included with Item#45) 134 Cover Plates EA 50.00 135 Smoke detectors EA 375.00 136 Other 137 138 MISCELLANEOUS 139 Install new medicine cabinet, mirror, towel 1 EA 100.00 140 & paper holders 141 Hood vent&fan, stove, dish washer, garbage 1,500.00 142 disposal and (ironing board cabinet-included in Item#49) 143 (allowance) 1 EA 162 Supervision 3,200.00 163 164 165 166 SUBTOTAL $48,960.00 Insurance Burden (General Liability&Workers Compenssation 2.5%) OVERHEAD& PROFIT (15%) $6,568.50 GRAND TOTAL GENERAL CONTRACTOR'S BASE BID $57,528.50 APPROVED OPTIONS 1 Remove Existing tile and Install Slate at Front Porch 650.00 2 Install Rear Yard Sprinklers 1,000.00 3 Repipe with Copper Plumbing 3,600.00 4 Replace Interior Base Moulding 250.00 OPTIONS TOTAL $5,500.00 All line items will be performed according to City of San Bernardino Economic Development Stabilization Program Building Standards Exhibit"D" Project Timeline -14- P:UgendaMgendeA=hmeMsWge a AtuchmemaUgnmsMaod 30IM-15-10 MCMCD lap mAgmemem-Fioal.dm O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O « N N N N N N N N N N N N N N N N N C V C W O O O O O O O O O O O O O O O O O r r r r r r r r r r r r r r r r y O O O O O O O O O O O O O O O O O C C C d fL F Z M N M O ap M O M O O O W v M M M 2 W o W m Q O F W Z Z M W CL U 0 H a_ J W U d x x WW d > W 0 - m m 0 > o 0 Q N F 3 m W v c m cE aci a m r Q aci s O E o v o m X F W N '> m d Q m a o 0 0 m c w >O co 9 Q N Q 'L O � C = J j O O W N Q E 9 0 O O N N N O "t C b1 ¢ E U 2 m 0 ul o c o W 0 C N` O (n O O d N O N a' N -O C U d O CL 'j O O N 0 E O O O 2 w in 3 a o a go 2 2 o coi , . W N w > L L d C C w C Y C > E C U N L N K K (n J 0] d U U 0 U rL d (n O d U O Z s N A F Exhibit"E" Scope of Services 1. Secure Property-Ensure that adequate locked fencing is installed on the perimeter of the site when necessary. Board up windows and outer doorways when necessary in order to prevent looting and vandalism of the Rehabilitated Home. 2. Property Management- Maintain utilities service, pay for monthly utilities bill(s) during the holding period (the Consultant will be reimbursed for this cost), interior and exterior appearance and marketability of the Rehabilitated Home as needed. 3. Approved Budget - The approved budget includes the estimate of the costs the Consultant expects to incur in order to complete the Scope of Work defined herein, provided in Exhibit "B" (the "Total Development Cost Pro Forma"). This budget estimate includes all costs associated with the rehabilitation of the Rehabilitated Home, including labor and materials for rehabilitation work, contingency, the Project Management Fee, the General Contractor Fee/Overhead, the Sales Commission Fee and the Homebuyer Qualifying Fee, includes the cost of enrolling the prospective buyer of the Rehabilitated Home deemed qualified by the Consultant under the conditions in this Agreement (the "Qualified Homebuyer") in a homebuyer education course administered by an AHS approved third party vendor or organization. 4. Project Timeline - The approved estimated timeline provided in Exhibit "D" sets forth the completion of the various steps involved in the acquisition, rehabilitation and resale of the Rehabilitated Home (the "Project Timeline"). The timeline starts from the point that the selected Consultant enters into the contract for the Rehabilitated Home with AHS through the close of sale to the Qualified Homebuyer. Major steps included in the timeline are construction period, completion of construction, issuance of the Certificate of Completion, start of marketing period for the home, projected number of weeks needed to identify a Qualified Homebuyer, escrow period and close of escrow. I i 5. Rehabilitation Scope of Work-The approved detailed, line item budget of the costs required to complete the rehabilitation scope of work agreed upon by AHS and the Consultant, provided in Exhibit "C" (the "Rehabilitation Scope of Work") serves as the Consultant's price bid for the Rehabilitation Scope of Work. 6. Manage Rehabilitation Work - Manage the rehabilitation of the Rehabilitated Home to include,but not be limited to: (i) ensuring that all tasks identified in the Rehabilitation Scope -15- P41geMes\AgeMaAnuhmems\AWe AnacMents\A mtsAmeM 3010\01-15-10 MC Development Ageemem-Final.dm of Work are completed on a timely basis and all work performed satisfies AHS' standards; (ii) conducting weekly on-site project inspections; (iii) managing relationships with all subcontractors and vendors; (iv) obtaining all necessary permits required to complete the Rehabilitation Scope of Work; (v) ensuring that all rehabilitation work complies with all applicable municipal codes; (vi) submitting funds draw requests to AHS in a timely and accurate manner; (vii) paying all sub-contractors hired by the Consultant and all vendors providing materials used in the performance of the Rehabilitation Scope of Work on a timely and accurate basis; and(viii)administering both conditional and unconditional lien releases. 7. Marketing — Market the Rehabilitated Home through advertising and published promotional materials. Adhere to AHS' Affirmative Marketing Guidelines (Please see Exhibit"IC'). 8. Identify Qualified Homebuyer- Identify and present prospective homebuyers to be approved by AHS in writing, facilitate adequate homebuyer training and facilitate financing of property which may include Down Payment Assistance from the Agency, pre-qualify the homebuyer for eligibility to purchase the Rehabilitated Home and collect those application documents from the Qualified Homebuyer identified in Exhibit"I", Section"A". In addition, the Consultant is required to make best efforts to ensure that a fixed rate permanent loan secured by a first trust deed ("First Mortgage Loan") is made available to the Qualified Homebuyer at the lowest commercially available rate and most favorable terms. 9. Escrow—Work with the AHS selected title company and manage the escrow process through closing on behalf of the Qualified Homebuyer, ensure that all AHS sale documents are executed,notarized and recorded as needed. 10. Files — Maintain adequate files for the Rehabilitated Home, ensuring compliance with all Neighborhood Stabilization Program requirements, files shall include, but not be limited to, all documents listed in Exhibit"I", and all documents required to verify compliance with the Affirmative Marketing Guidelines stated in Exhibit "K", such as homebuyer waiting lists, copies of advertisements published in local and community newspapers, etc. 11. Appraisal — Work with the AHS designated Appraiser to determine the sales price for the Rehabilitated Home. 12. Environmental - Ensure that all environmental mitigation measures recommended by AHS' Environmental Consultant are carried out as part of the Rehabilitation Scope of Work. Provide proof of completion of these mitigation measures. -16- P.\Agemas\4rn "mu emsU aAna cros4lgrmirAmeM 201OT3-15-10 MW ebP WAg &-FiWl 13. Closing Requirements: A. The Consultant shall cause the closing of the sale of the Rehabilitated Home by following the procedures and complying with the requirements set forth in Exhibit "P", Section A. B. The Consultant shall cause the closing of any Agency Down Payment Assistance Loans, if applicable, in accordance with the procedures and requirements established in Exhibit"P', Section B. 14. Building Standards: The Consultant shall adhere to the building standards stipulated in Exhibit "L" when performing any rehabilitation work on the Rehabilitated Home. i I a -17- P:UgeidasUgendeAne.W we \A end.AttacAmrntsUgmb-AmeM 201MI-15-10 @CMC Ayfeemem-F�.da Exhibit "F" AHS Representatives AHS Officers: Emil A. Marzullo, Chief Executive Officer Carey K. Jenkins, Chief Operating Officer Authorized AHS Representatives: Samuel Hughes, Consultant Fernando S. Portillo, Consultant -18- P4geMaaWge aAnazM1mewUgeMa AclecWOmuUgixrAmelq 201=3-15-10 NLAAC Development Apxmem-Final.doc EXHIBIT "G" Insurance Requirements The Consultant and its General Contractor shall maintain insurance policies issued by an insurance company or companies authorized to do business in the State of California and that maintain during the term of the policy a "General Policyholders Rating" of at least A(v), as set forth in the then most current edition of"Bests Insurance Guide," as follows: (1) Automobile Insurance. Comprehensive automobile liability insurance of not less than One Million Dollars ($1,000,000) combined single limit per occurrence for each vehicle leased or owned by the Consultant or its subcontractors and used in performing work under this Agreement. I (2) Worker's Compensation Insurance. Worker's compensation coverage in accordance with California workers' compensation laws for all workers under the Consultant's and/or subcontractor's employment performing work under this Agreement. (3) Liability Insurance. AHS requires comprehensive liability insurance, including coverage for personal injury, death,property damage and contractual liability, with a limit of at least One Million Dollars ($1,000,000), including products and completed operations coverage. Said insurance shall be primary insurance with respect to AHS and the Agency. The Consultant shall require and ensure that the Consultant's contractors include AHS and the Agency, as additional insureds on all general liability insurance covering work at the Rehabilitated Home. All insurance policies required of the Consultant or its contractors as provided herein, shall extend the subject insurance coverage to: "The City of San Bernardino, the Redevelopment Agency of the City of San Bernardino and Affordable Housing Solutions of San Bernardino, Inc., their officers officials,attorneys, agents, employees and volunteers" In lieu of directly obtaining the insurance coverage mentioned in this Exhibit"G", the Consultant can require its General Contractor to name the Consultant as an additional insured on the insurance policies obtained by the General Contractor for the purposes of satisfying the insurance requirements herein. Concurrent with the execution of this Agreement and prior to the commencement of any work by the Consultant, the Consultant shall deliver to AHS, copies of policies or certificates evidencing the existence of the insurance coverage required herein, which coverage shall remain in full force and effect continuously throughout the term of this Agreement. Each policy of insurance that the Consultant purchases in satisfaction of the insurance requirements of this Agreement shall name AHS, the Agency and if applicable, the Consultant as an additional insured and shall provide that the policy may not be i -19- P.UgmdesWgentle AnacM1m<nuNgenda AtmcM1mmuUgrnurAmeM 201UDJ-15-10 PCAAC Devdopmem Agrcemen[-Fivl doc cancelled, terminated or modified, except upon thirty (30) days prior written notice to AHS. Failure on the part of the Consultant to procure or maintain the insurance coverage required in this Exhibit "G" for fifteen (15) days or longer shall constitute a material breach of this Agreement pursuant to which AHS may exercise all rights and remedies set forth herein and, at its sole discretion, and without waiving such default or limiting the rights or remedies of AHS, procure or renew such insurance and pay any and all premiums in connection therewith and all monies so paid by AHS shall be reimbursed by the Consultant to AHS upon demand including interest thereon at the rate of ten percent (10%) per annum interest compounded annually from the date paid by AHS to the date reimbursed by the Consultant. The Agency shall have the right, at its election,to participate in and control any insurance claim adjustment or dispute with the insurance carrier. The Consultant's failure to assert or delay in asserting any claim shall not diminish or impair the rights of AHS against the Consultant or the insurance carrier. -20- P\AgeMss\A9eMaAnnhmems\ Wnda Anac kA@smsAmeM 2010\01-15-10 MCAACO dWmenl Agmemem-Fivl.dm Exhibit"H" Consultant Payment and Reimbursement The Consultant shall be paid four (4) different fees by AHS. The four (4) fees that the Consultant is eligible to receive are: 1. Project Management Fee; 2. General Contractor Fee/Overhead; 3. Homebuyer Qualifying Fee; and 4. Sales Commission Fee. The amount of the fees to be paid to the Consultant by AHS for completing the Scope of Services detailed in Exhibit "E" is recorded in the Development Pro Forma attached as Exhibit"B"to this Agreement. The costs contained in the Development Pro Forma serve as the budget for the project, and the Consultant will be required to complete the work in accordance with that budget. This budget must be approved by AHS Representative(s) prior to the start of any rehabilitation work by the Consultant. Project Management Fee-The Project Management Fee is the compensation received by the Consultant for securing, maintaining and marketing the property. Some of the tasks that might be included under this function are such things as, fencing the property, mowing the lawn, clearing debris from the lawn, removal of graffiti, etc. The Project Management Fee may also include any marketing costs incurred by the Consultant, such as online or print advertising and website design, as approved by AHS. The Consultant is eligible to receive fifty percent (50%) of this fee upon commencement of the Rehabilitation Scope of Work, to be invoiced by the Consultant in the fast funds draw request submitted by the Consultant to AHS. The remaining portion of this fee shall be payable to the Consultant after the rehabilitation work is completed, as evidenced by an AHS issued Certificate of Completion or a City issued Certificate of Occupancy, as applicable. The remaining portion of this fee shall be paid to the Consultant upon the close of the Rehabilitation Home Sales Escrow. General Contractor Fee/Overhead - The General Contractor Fee/Overhead is the total amount paid by AHS for management of the rehabilitation work as defined in Exhibit `B", Section 6. If the Consultant hires a General Contractor, then the Consultant is responsible for negotiating a fee structure with its hired General Contractor, but in no event, will AHS pay an amount above the General Contractor Fee/Overhead stated in this Agreement, nor will AHS pay a separate General Contractor Fee/Overhead to the General Contractor. The amount of this fee is a fixed fee for the rehabilitation work. The costs of the rehabilitation work shall include direct labor and materials involved in the performance of the Rehabilitation Scope of Work plus the budgeted contingency for this work. A portion of this fee commensurate with the percentage of completion of the Rehabilitation Scope of Work shall be paid with each funds draw request submitted by -21- PNgenEssWg<MaAnuh..,\A .&A,.h.e&Agmu-Amend 2010\03-15-10@C CDeveWpment Ag .e .-Firel.EOc the Consultant. Any additional costs arising from unexpected conditions on the site or other unexpected difficulties must be written up as a change order and AHS Representative(s) must sign and approve the change order at the discretion of the AHS Representative(s) in order for these costs to be included as part of the overall rehabilitation costs, which would then increase the absolute amount of the General Contractor Fee/Overhead. Homebuyer Qualifying Fee — This fee is paid to the Consultant for identifying and assisting AHS in qualifying the prospective homebuyer for the sale of the Rehabilitated Home. This is a one-time fixed fee. This fee will include the Consultant's reimbursement for any costs associated with the prospective homebuyer's "Homebuyer Education Training"and payments to third party service providers, such as Neighborhood Housing Services of the Inland Empire ("NHSIE"), or another such service provider. The Homebuyer Qualifying Fee shall be paid upon the close of the Rehabilitated Home Sales Escrow. Sales Commission Fee — The sales Commission Fee represents the payment received by the Consultant for managing the Rehabilitated Home Sale Escrow process on behalf of AHS to assist the Qualified Homebuyer through the Rehabilitated Home Sales Escrow process. The amount of this fee is calculated as a fixed percentage of the final sales price to the Qualified Homebuyer. The Sales Commission Fee shall be paid upon the close of the Rehabilitated Home Sales Escrow. .z2_ P 41p MgeM AnechmemsNpe Atmchmmts g -Amend 3010[01-15-10@CAAC Dw proem Agreement-Finel.doc Exhibit"I" Closing Requirements A. Sale of Rehabilitated Properties The Consultant shall initiate the sale of a Rehabilitated Property to a Qualified Homebuyer by submitting to the Agency a purchase/sale agreement executed by the prospective homebuyer, verifying documentation from the prospective buyer with respect to residency, income and the property condition as the Agency, or its designee, may reasonably request (collectively, "Homebuyer Application"). [NOTE: NSP regulations limit the income on NSP funded properties. The Agency should be involved in the negotiation of sales documents of the properties.] The Homebuyer Application shall consist of the following information in the form provided or approved by the Agency: i. Last Three (3) Years Tax Returns (State and Federal) (1040's) signed with W21s attached. Two (2) Current Pay Stubs for all household members who will reside in the home. ii. A California Association of Realtors California Residential Purchase Agreement fully executed by the prospective homebuyer (With Agency Addendum(s) attached). iii. Neighborhood Stabilization Program Homebuyer Application. iv. Income Certification. V. Application Affidavit— Completely filled out and signed by the prospective homebuyer. vi. Signed Lead-Base Paint Disclosure Form (for homes built prior to 1978). The Agency does not supply this form. vii. Copy of Employment Verification for each Homebuyer. viii. 2 Months of Current Bank Statements. ix. 3-Year Rental History. X. Homebuyer Education Certificate from NHSIE or another like service provider. Within seven (7) calendar days after the receipt of the Homebuyer Application by the Agency, Agency Staff will notify the Consultant of approval or denial of the prospective homebuyer's eligibility and confirmation of such eligibility by means of a Reservation -23- P41geM MtMa Mwh c r gcMa nn,=nm Wmtsn end 3010\03-I5-10@CMC Aga -Fioal.EOc Letter (all reservations will be automatically valid for sixty (60) calendar days from the date of confirmation) [NOTE: The Agency should execute the sales agreement]. Upon notification by Agency Staff of the prospective homebuyer's eligibility, the Consultant shall open an Escrow account with an Agency approved escrow company (the "Escrow Holder"). The Agency shall furnish the Escrow Holder with executed escrow instructions. The Consultant shall not permit any Escrow to close for the sale of a Rehabilitated Property until and unless the escrows instructions executed by the Agency (and countersigned, if requested by Agency Staff, by the First Trust Deed Lender) have been submitted to the Escrow Holder. As provided in the Agency escrow instructions, Escrow shall also not close unless and until: 1. The Escrow Holder holds the following documents : (1) Agency Notice of Affordability Restrictions executed by the Qualified Homebuyer and notarized; and (2) a grant deed with respect to the Rehabilitated Property purchased by the Qualified Homebuyer, executed and acknowledged by the selling entity; and 2. Proof of hazardous insurance for the full replacement cost of the Rehabilitated Property is provided to the Agency naming the Agency as additionally insured; and 3. Rehabilitation of the Rehabilitated Property shall have been completed in accordance with this Agreement and with all applicable City permits and ordinances, and the City shall have issued a final certificate of occupancy for the Rehabilitated Property; and 4. The Consultant's execution and delivery to the Agency of the Sub- agreement. No Event of Default shall exist under this Agreement or under any agreement or instrument relating to any financing for the Project or the Rehabilitated Property. Within seven (7) calendar days after the receipt of the Homebuyer Application by AHS, the AHS Representative(s) will notify the Consultant of approval or denial of the prospective homebuyer's eligibility and confirmation of such eligibility by means of a Reservation Letter (all reservations will be automatically valid for sixty (60) calendar days from the date of confirmation) [NOTE: AHS should execute the sales agreement]. Upon notification by the AHS Representative(s) of the prospective homebuyer's eligibility, the Consultant shall open the Rehabilitation Home Sales Escrow account with an AHS approved escrow company (the "Escrow Holder"). AHS shall furnish the Escrow Holder with executed escrow instructions. The Consultant shall not permit the Rehabilitation Home Sales Escrow to close until and unless the escrow instructions executed by AHS (and countersigned, if requested by AHS Representative(s), by the First Trust Deed Lender) have been submitted to the Escrow Holder. As provided in the AHS escrow instructions,Escrow shall also not close unless and until: -24- P:WgendaAAgeMaA hmmMgenda 301M.15-10 mcMc Dc+elopment A,,emem-Final da i y I i 1. The Escrow Holder holds the following documents : (1)Agency Notice of Affordability executed by the Qualified Homebuyer; and (2) a grant deed with respect to the Rehabilitated Home, executed and acknowledged by the selling entity(the "AHS Grant Deed"); and i 2. Proof of hazardous insurance for the full replacement cost of the Rehabilitated Home is provided to AHS naming AHS and the Agency as additionally insured; and I 3. The Rehabilitation Scope of Work shall have been completed in accordance with this Agreement and with all applicable City permits and ordinances, and AHS shall have issued a Certificate of Completion or the City shall have issued a Certificate of Occupancy for the Rehabilitated Home, as applicable; and No Event of Default shall exist under this Agreement or under any agreement or instrument relating to any financing for the Rehabilitated Home. B. Down Payment Assistance In the case where the Qualified Homebuyer needs down payment assistance to facilitate the purchase of the Rehabilitated Home, the Consultant shall assist the Qualified Homebuyer in applying for such assistance from the Redevelopment Agency of the City of San Bernardino's ("Agency") Homebuyer Assistance Program ("HAP"), at the Qualified Homebuyer's election. The requirements and the application process for obtaining such assistance are described fully in the Agency's HAP Program Manual, which can be obtained at the Agency's offices. The process for applying for such assistance is summarized below, but in the event that a conflict exists between the description of the HAP Program contained herein and the HAP Program Manual, the requirements and procedures described in the HAP Program Manual shall prevail. In order to reserve Agency Down Payment Assistance Loan assistance to facilitate the purchase of the Rehabilitated Home, the Consultant must include in the Homebuyer Application described in Section A, herein, the following information in the form provided or approved by AHS and the Agency: i. Verification for Applicant Eligibility, completely filled out and signed by the prospective homebuyer and the First Trust Deed Lender; ii. Copy of Credit Report. If the prospective homebuyer lacks credit history or scores are lower than 640, please provide secondary credit such as a landlord letter or utility statements; and iii. Agency Down Payment Assistance Loan Worksheet. -25- P:IAgeWasNgeMeAtt=F MgUge aAluc Is\Agrmv-Am[M MW3-15-10IECMC Nwv PmMAg =M-Fwl.a The obligation of the Agency to fund each Agency Down Payment Assistance Loan shall be subject to satisfaction of all of the conditions stated in Section A, herein, together with the following conditions (collectively, the"Closing Conditions"): (a) The Escrow Holder holds the following documents: 1) the Qualified Homebuyer Agency Down Payment Assistance Loan Agreement executed by the Qualified Homebuyer and the Agency; (2) the Agency Promissory Note executed by the Qualified Homebuyer in favor of the Agency in the same amount as the Agency Down Payment Assistance Loan; and (3) the Agency Subordinate Deed of Trust and Assignment of Rents acknowledged and executed by the Qualified Homebuyer in favor of the Agency; and (b) Any one of the following title companies whether (i) First American Title, (ii) North American Title, (iii) Chicago Title, (iv) Stewart Title or (v) another title insurer approved by the Agency ("Title Company") shall have assured the Agency in writing that with respect to each Agency Down Payment Assistance Loan, the Agency shall receive upon recordation of the Agency Subordinate Deed of Trust and Assignment of Rents a CLTA lenders policy of title insurance in the amount of the Agency Down Payment Assistance Loan Note (the "Agency Title Policy") insuring the priority of the Agency Subordinate Deed of Trust and Assignment of Rents, subject only to the First Mortgage Loan and other exceptions approved by the Agency following the Agency's prior review of a preliminary title report for the Rehabilitated Home, which preliminary title report must be received by the Agency no later than seven (7) calendar days after the approval by the Agency of the Homebuyer Application; and (d) The Agency shall have reviewed and approved the Qualified Homebuyer for the Agency Down Payment Assistance Loan in the Agency's sole discretion, and the eligibility conditions in the applicable sections of the HAP Manual shall have been satisfied. In accordance with the Neighborhood Stabilization Program, the Rehabilitated Home is not restricted for sale to first-time homebuyers; therefore, these properties are exempt from the requirements in Section H. B. 1. of the HAP Manual; and (e) No stop notice or mechanics' lien shall have been filed against the Rehabilitated Home unless discharged as provided by law. -26- PUge Ue SeM AuazhmeW.s 4cg aAuacM Ws Ms-A WWII-15-10IECMCO ebpv WAgre t-Fwl.Oc EXHIBIT "J" Events of Default and Remedies A. Events of Default The occurrence of any of the following shall, after the giving of any notice described therein, constitute a default by the Consultant hereunder("Event of Default'): (1) The failure of the Consultant to pay or perform any monetary covenant or obligation under the Agreement or any of the documents executed in connection herewith, without curing such failure within ten (10) calendar days after receipt of written notice of such default from AHS (or from any party authorized by AHS to deliver such notice as identified by AHS in writing to the Consultant); (2) The failure of the Consultant to perform any non-monetary covenant or obligation hereunder or any of the documents executed in connection herewith that results in a material adverse effect to AHS, without curing such failure within thirty (30) calendar days after receipt of written notice of such default from AHS (or from any party authorized by AHS to deliver such notice as identified by AHS in writing to the Consultant) specifying the nature of the event or deficiency giving rise to the default and the action required to cure such deficiency; provided, however, that if any default with respect to a non-monetary obligation is such that it cannot be cured within a thirty-day period, it shall be deemed cured if the Consultant commences the cure within said thirty-day period and diligently prosecutes such cure to completion thereafter. Notwithstanding anything herein to the contrary,the herein described notice requirements and cure periods shall not apply to any Event of Default described in Sections (3)through (6)below; (3) The falsity of any representation or breach of any warranty or covenant made by the Consultant under the terms of this Agreement or any documents executed in connection herewith; (4) The Consultant or any constituent member or partner, or majority shareholder, of the Consultant shall (a) apply for or consent to the appointment of a receiver, trustee, liquidator or custodian or the like of its property, (b) fail to pay or admit in writing its inability to pay its debts generally as they become due, (c) make a general assignment for the benefit of creditors, (d) be adjudicated a bankrupt or insolvent or (e) commence a voluntary case under the Federal bankruptcy laws of the United States of America or file a voluntary petition that is not withdrawn within ten (10) calendar days after the filing thereof or an answer seeking an arrangement with creditors or an order for relief or seeking to take advantage of any insolvency law or file an answer admitting the material allegations of a petition filed against it in any bankruptcy or insolvency proceeding; i .27_ P.UgeMn SeMaA mu cmAftenda AnuM1mems\A mtrA end MIM345-10@C CD Iopmem AWxment-Fiw dm �i i (5) If without the application, approval or consent of the Consultant, a proceeding shall be instituted in any court of competent jurisdiction, under any law relating to bankruptcy, in respect of the Consultant or any constituent member or partner, or majority shareholder, of the Consultant, for an order for relief or an adjudication in bankruptcy, a composition or arrangement with creditors, a readjustment of debts, the appointment of a trustee, receiver, liquidator or custodian or the like of the Consultant or j of all or any substantial part of the Consultant's assets, or other like relief in respect thereof under any bankruptcy or insolvency law, and, if such proceeding is being contested by the Consultant, in good faith, the same shall (a) result in the entry of an order for relief or any such adjudication or appointment, or (b) continue undismissed, or pending and unstayed,for any period of ninety(90)consecutive calendar days; (6) Voluntary cessation of the construction activities, active property management, or marketing activities related to the Rehabilitated Home for a continuous Iperiod of more than ten (10) calendar days or the involuntary cessation of the above named activities in accordance with this Agreement for a continuous period of more than thirty (30) calendar days; (7) A mechanic's lien or any other type of encumbrance on AHS' property resulting from the Consultant's failure to fulfill its financial or other contractual obligations with respect to any of its vendors or subcontractors is not removed within ten (10) calendar days after receipt of written notice of such default from AHS (or from any party authorized by AHS to deliver such notice as identified by AHS in writing to the Consultant). B. AHS Remedies: Upon the occurrence of an Event of Default hereunder, AHS may, in its sole discretion,take any one or more of the following actions: i (1) Withhold any payment of fees or reimbursement of eligible expenses to the Consultant unless and until the Event of Default (if curable) is cured or this Agreement is terminated in accordance with Section 9 of this Agreement; (2) Demand reimbursement from the Consultant for any payments made to it by AHS for which the contracted work product was not satisfactorily delivered r by the Consultant; i (3) Confiscate any material or other work product purchased or produced by the Consultant during the course of completing the Scope of Work indicated in this Agreement; i (4) Take any and all actions and do any and all things which are allowed, permitted or provided by law, in equity or by statute, in the sole discretion of AHS, to enforce performance and observance of any obligation, agreement or covenant of the Consultant under this Agreement or under any other document executed in -28- j P\AgcMeaNgeMa Anuhmems4Pg 2010W3.15-10 MCMCOevdopmmt Agr =M-Fin]doc connection herewith; (5) Upon the occurrence of an Event of Default which is occasioned by the Consultant's failure under this Agreement to pay money, AHS may, but shall not be obligated to, make such payment. If such payment is made by AHS, the Consultant shall deposit with AHS, upon written demand therefore, such sum plus interest at the rate of ten percent(10%) per annum with interest to be compounded annually. In either case, the Event of Default with respect to which any such payment has been made by AHS shall not be deemed cured until such repayment (as the case may be) has been made by the Consultant; (6) Upon the occurrence of an Event of Default described in Section A.(4) or A.(5) hereof, AHS shall be entitled and empowered by intervention in such proceedings or otherwise to file and prove a claim for any amount owing to AHS under this Agreement and unpaid and, in the case of commencement of any judicial proceedings, to file such proof of claim and other papers or documents as may be necessary or advisable in the judgment of AHS and its counsel to protect the interests of AHS and to collect and receive any monies or other property in satisfaction of its claim. C. AHS Default and Consultant Remedies: Upon fault or failure of AHS to meet any of its obligations under this Agreement without curing such failure within thirty (30) calendar days after receipt of written notice of such failure from the Consultant specifying the nature of the event or deficiency giving rise to the default and the action required to cure such deficiency, the Consultant may, as its sole and exclusive remedies: (1) Bring an action in equitable relief seeking the specific performance by AHS of the terms and conditions of this Agreement or seeking to enjoin any act by AHS which is prohibited hereunder; and/or (2) Bring an action for declaratory relief seeking judicial determination of the meaning of any provision of this Agreement. Without limiting the generality of the foregoing, the Consultant shall in no event be entitled to, and hereby waives, any right to seek indirect or consequential damages of any kind or nature from the Consultant arising out of or in connection with this Agreement, and in connection with such waiver the Consultant is familiar with and hereby waives the provisions of Section 1542 of the California Civil Code which provides as follows: "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR." -29- P:NgendasNgenda Auahmen&Agenda mnhm=MgrnJ eM 3UIW34- 10 MCAAC Ow proem Ag ern FimLda EXHIBIT "K" Affirmative Marketing Requirements In accordance with the California Fair Employment and Housing Act, the Consultant acting as agent for AHS,the owner and seller of the Rehabilitated Home, in marketing the sale of the Rehabilitated Home, must adhere to the following affirmative marketing guidelines in order to create awareness for the general public and certain community groups as to the availability of residential properties designated for lower- and/or moderate-income households. I. Provide an affirmative marketing plan and procedures for the sale of the Rehabilitated Home. Procedures to be used must identify how persons in the housing market area who are not likely to apply for the housing without special outreach shall be informed and made aware of available affordable housing opportunities. 2. The Consultant's Affirmative Marketing Plan shall consist of a written marketing strategy designed to provide information and to attract eligible persons in the housing market area to the Rehabilitated Home without regard to race, color, national origin, sex, religion, marital and familial status, disability, medical condition, sexual orientation, or ancestry. It shall describe initial advertising, outreach (community contacts) and other marketing activities, which will inform potential buyers of the availability of the Rehabilitated Home. It shall also outline an outreach program which includes special measures designed to attract those groups identified as least likely to apply without special outreach efforts (because of existing neighborhood racial or ethnic patterns, location of housing or other factors) and other efforts designed to attract persons from the total eligible population. 3. Insert Equal Housing Opportunity logotype, statement or slogan on all written outreach tools (i.e., signs, advertisements, brochures, direct mail solicitations, press releases, etc.) 4. In addition to the above, the Affirmative Fair Housing Marketing Plan shall outline: a. Commercial Media to be used (i.e., community newspapers and non-English language newspapers, radio, television, billboards, religious or local real estate publications, etc.). b. Marketing efforts to be used (i.e., brochures, letters, handouts, direct mail, signs,etc.) C. Community contacts to supplement formal communications media for the purpose of soliciting those groups least likely to purchase the available housing without special outreach efforts. They should be individuals or organizations (i.e., service agencies, community organizations, places of worship, etc.) that -30- P:WgeM WgcM AuaahmeMMVg a AllechvwolatAgadaA 20IM3-15-10 ME CD bpm Agreement-Fw dw have direct and frequent contact with those identified as least likely to apply. The contacts should also be chosen on the basis of their positions of influence within the general community and the particular target group. AHS and its designees must agree to establish and maintain contact with the identified contacts. 5. The Consultant shall maintain records of all prospective homebuyer applicants, including their race, ethnicity and gender, reasons for denial of application, placement on a waiting list, etc. 6. The Consultant shall also provide for the selection of applicants from a written waiting list in the chronological order of their application, insofar as is practicable, and provide prompt written notification to any rejected applicants of the grounds for any rejection. 7. The Consultant shall apply for first trust deed financing to be applied towards the purchase of the Rehabilitated Home from a lender listed on the Agency's or AHS' Approved Lender List. -31- P:U9c W90n"Aue ntsUWe aAlwU n(Mgmp A=e 3010W-15-10 SF C� pb A®xuwm-Fina EXHIBIT "L" Building Requirements _3z_ P4geM" ,Ma AnacM1mentsUgmda AftwO mtsUg trA 2010\03-15-10@C CD iopmem Agseemeot-Fiod.doc an erHar Ino ECONOMIC DEVELOPMENT AGENCY Neighborhood Stabilization Program "Minimum Building Standards" June 2009 Table of Contents 1000—General Requirements...................................................................................................................... 1 1010—General............................................................................................................................................ 1 1020 -Terminology.................................................................................................................................... 1 1030-General Quality Requirements..................................................................................................... 1 1040-Substitutions/Alternatives............................................................................................................ 2 1050-Optional Green Building Practices.............................................................................................. 3 1100-Temporary Facilities and Temporary Controls.............................................................................. 3 1110—Site Usage......................................................................................................................................3 1200 -Project Closeout.................................................................................................................................4 1210—Final Cleaning................................................................................................................................4 1220—Operations Manuals and Warranties.......................................................................................... 5 1230—Systems Startup............................................................................................................................5 2000 -Building Sitework I Site Preparation................................................................................................5 2010 -Site Clearing and Demolition........................................................................................................ 5 2020-Site Earthwork................................................................................................................................5 2040—Site Hazardous Waste Remediation ........................................................................................... 6 2100-Site Improvements.............................................................................................................................6 2110—Roadways, Driveways, and Walkways.......................................................................................6 2150—Fencing...........................................................................................................................................7 2150-Landscaping...................................................................................................................................8 2200 Site Civil I Site Utilities.........................................................................................................................8 2210 -Utilitie s.............................................................................................................................................8 3100 -Selective Demolition..........................................................................................................................8 3110-Building Elements Demolition......................................................................................................8 3120-Hazardous Components Abatement..........................................................................................10 4000-Foundations.......................................................................................................................................10 4010-Standard Foundations..................................................................................................................10 4030 -Slabs on Grade..............................................................................................................................11 5000 -Superstructure...................................................................................................................................11 5010—Framing I Wood ............................................................................................................................11 6100-Exterior Enclosure............................................................................................................................12 5110-Exterior Walls.................................................................................................................................12 6111 —Stucco/Plaster.........................................................................................................................12 6112—Exterior Insulation....................................................................................................................12 5113—Caulking and Joint Sealants...................................................................................................13 5120-Exterior Windows..........................................................................................................................13 5130-Exterior Dons/Garage Doors....................................................................................................14 6140-Flashing...........................................................................................................................................16 6200—Roofing ..............................................................................................................................................16 6210-Roof Coverings..............................................................................................................................16 5220—Gutters and Downspouts............................................................................................................16 6000-Interior Construction........................................................................................................................17 6010—Partitions/Collings......................................................................................................................17 6011 —Interior Insulation.....................................................................................................................17 6012-Drywall........................................................................................................................................17 6020-Interior Doors.................................................................................................................................18 7000-Finishes..............................................................................................................................................18 7010—Ceramic Tile..................................................................................................................................18 7020-Floor Finishes................................................................................................................................19 7030-Ceiling Finishes.............................................................................................................................20 7040-Painting...........................................................................................................................................20 8100—Furnishings.......................................................................................................................................24 8110—Carpentry,Cabinets,and Millwork.............................................................................................24 9000—Plumbing, Mechanical, Electrical...................................................................................................25 9010-Plumbing Fixtures.........................................................................................................................25 9020 -Domestic Water Distribution.......................................................................................................26 9030-Sanitary Waste...............................................................................................................................26 9100-Heating,Ventilating,and Air Conditioning (HVAC)......................................................................27 9110—Heating and Ventilating...............................................................................................................27 9200—Fire Protection Systems..................................................................................................................28 9210—Fire Protection Specialties..........................................................................................................28 9300-Electrical Systems.............................................................................................................................28 9310-Electrical Service and Distribution.............................................................................................28 City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 1 of 28 1000 — General Requirements 1010 — General .1. These Minimum Building Standards(Standards) have been developed by the City of San Bernardino Economic Development Agency(EDA) for use on the Neighborhood Stabilization Program (NSP). .2. These Standards shall apply to all properties covered by the NSP. .3. All materials, supplies, costs of permits, and labor to complete the specified rehabilitation or repairs, shall be the responsibility of the Builder/Developer unless specified otherwise by the EDA. .4. Any drawings or sketches which may be furnished by the EDA or required by the Builder/Developer are intended to clarify or further describe the propert. Should the Builder/Developer find discrepancies in, or omissions from, these drawings or sketches or should he/she be in doubt as to their meaning, they should contact the EDA for clarification. Because of the nature of work being done, some details of sketches or drawings may be"typical' and grades, dimensions and exact existing conditions must be verified at the property before commencing work. .5. Any additional work that EDA want the Builder/Developer to do should be done after completion of the Rehabilitation work, if at all possible. A separate contract will be signed between the EDA and Builder/Developer before the work is to start. 1020 -Terminology .1. When used in these Standards, the following definitions shall apply: A. Install -The item referred to shall be installed with all necessary hardware, trim, fittings, and material necessary to make ready for use. All material shall be new. B. Replace -The existing item referred to shall be removed prior to installation of the new item. C. Trim -When used in conjunction with painting, includes roof vents and pipes, eaves, molding, casing, underside of all doors, and any items other than walls and ceilings. D. Rehabilitation -All repairs to or replacement of present elements of an existing building, such as windows, stairs, flooring, or wiring; rearrangement of rooms by the relocation of partitions or by the installation of new bathrooms and kitchens; or the general replacement of the interior of a building. This may or may not include changes to structural elements such as floor systems, columns or load bearing interior or exterior walls. 1030 - General Quality Requirements .1. In order to establish standards of quality, the Standards may refer to certain products by name and/or catalog number. This procedure is not to be construed as eliminating from competition other products of equal or better quality by other manufacturers, at approximately the same cost. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 2 of 28 .2. All material and each part or detail of the work shall be subject at all times to inspection by the EDA, and the Builder/Developer will hold to the true intent of the Standards in regard to -quality of material, workmanship, and the diligent execution of the contract. .3. Materials installed shall be of such kind and quality to ensure that the dwelling will provide acceptable durability, economy of maintenance and adequate resistance to weather, moisture, corrosion and fire. The EDA may request evidence of a material's compliance with the requirements of the structure's plans and specifications and these Standards. Product labels are considered acceptable evidence. A. The EDA may require that the BuilderlDeveloper carry out a durability evaluation or conduct a building assessment to determine if the materials to be used comply with any green strategies. .4. All work shall be executed by skilled craftsman, experienced in their trade, and in accordance with accepted practices of their trade.All work shall be of the highest standards and methods. .5. Unless specifically noted otherwise, all construction methods and materials used shall conform to the California Building Code as adopted by the City of San Bernardino and shall be done in accordance with any other ordinances passed and adopted by the City of San Bernardino (i.e., zoning codes, fire codes, etc.). This includes all repairs, finishes, fixtures, and new work. .6. All plumbing and gas work shall be done in accordance with the Uniform Plumbing Code as adopted by the City of San Bernardino. .7. All heating and cooling work shall be done in accordance with the Uniform Mechanical Code as adopted by the City of San Bernardino. .8. All electrical work shall be done in accordance with the national Electric Code as adopted by the City of San Bernardino. .9. Where work involves colors, the Builder/Developer will provide the EDA with samples of all colors for the particular item (roofing, stucco, paint, stain, flooring, etc.), and the EDA will select the color and finish by initialing the color sample and state for what/where it will be used (exterior, interior, fascia, soffit, trim, doors, ceiling,walls, etc.). A maximum of three colors each may be selected for exterior and interior. .10. If the EDA has agreed to correct certain specified existing code violations,which are to be excluded from the work done by the Builder/Developer, the work on such violations, if done at the same time the Builder/Developer is on the job, shall be coordinated by the EDA and Builder/Developer so as to provide for a smooth flow of the work. 1040 - Substitutions/Alternatives .1. The Builder/Developer shall furnish a list of any proposed desired substitutions prior to the signing of the contract. .2. These standards are intended to encourage the use of new or innovative technologies, methods and materials. Alternatives and non-conventional or innovative methods and materials shall be equivalent to these standards in the areas of quality, durability, economy of maintenance, operation and usability. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 3 of 28 .3. Certain conditions in the geographic area or on the site may justify modification of specific standards, or make compliance with the standards impracticable or impossible. In these cases, approval by the EDA is required. 1050- Optional Green Building Practices .1. Builder/Developers are encouraged to incorporate any green building practice that offers an opportunity to create environmentally sound and resource-efficient buildings. .2. In an effort to encourage modern, green building, and energy-efficiency improvements, Builder/Developers are encouraged to incorporate HUD's healthy homes interventions including these seven steps ensuring housing is made and kept. A. Dry: Ensure proper drainage away from housing; clean repair gutters and downspouts, repair leaks seal roofs and windows. B. Safe: Install safety devices on doors, cabinets, window blinds and outlets, provide adequate storage for all poisonous items out of reach of children and labeled in the proper containers; install smoke detectors and carbon monoxide detectors; have appropriate fire extinguishers available. C. Well-ventilated., Service and maintain heating and cooling systems,provide exhaust fans for kitchens, bathroom and dryers to the outside to reduce mold, change furnace filters. D. Pest-free: Provide proper storage and disposal for food products, caulk and seal holes, use least toxic pest management methods. E. Contaminant-free: Remove lead based paint hazards properly,provide test kits for radon; reduce volatile organic compounds in paint, carpet, etc. F. Clean: Install dust walk-off systems in entry ways;provide smooth, cleanable surfaces;provide effective storage space and containers;choose flooring that is easy to clean. G. Well-maintained. Important maintenance calendar for inspecting, cleaning, repairing, replacing housing componentsrsystems. .3. Throughout these Standards, the EDA has inserted opportunities in which green huilding practices can be achieved 1100 -Temporary Facilities and Temporary Controls 1110 — Site Usage .1. All temporary facilities and controls required for the project shall be provided by the Builder/Developer. .2. The Builder/Developer will provide daily clean-up of all debris related to the work of the project as required. Provide a dumpster on site for the duration of construction for disposal of construction debris. All work area(s) shall be left broom clean at the end of each work day. .3. Immediately, at the end of the work, the Builder/Developer shall remove all of their debris, rubbish, refuse, and unused material from the property and street. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 4 of 28 .4. The Builder/Developer will provide all temporary 6-foot high chain link safety and security fencing for construction operations required for the work of this project. Fencing shall conform to the following specifications: A. 6-foot high chain link fence with 80% or greater green or black wind screen/mesh. B. Mesh shall be attached with hog rings. C. Includes man and vehicle gates where required. D. Gateposts shall be of size to accommodate the size of opening and its intended purpose. E. All gateposts shall be cored or driven into the ground. F. Core holes shall be filled with concrete once temporary fence is removed. Slurry seal all in A/C areas. G. Fencing shall be set back beyond site work improvements. .5. On-site materials pertaining to the project and partially completed roofs shall be temporarily protected during inclement weather. It is the responsibility of the Builder/Developer to maintain a watertight condition to prevent any water damage to the building once the roof has been removed until it has been completely patched. .6. The Builder/Developer shall provide temporary power as needed for the project. .7. Provide and maintain dust and erosion control throughout the duration of the work and as required for the work of the project. .8. The Builder/Developer shall provide protection, acceptable to the EDA, for any existing surfaces or equipment that have been selected to remain. .9. GREEN OPPORTUNITY. Minimize the site disturbance during construction. A. Control the impact area by designating vehicle parking farther from the site B. Store building materials inside a garage or protected area C. Protect all existing trees with fencing to include the drip tine in an effort to avoid over compaction of the soil around the trees. 1200 - Project Closeout 1210 — Final Cleaning .1. Prior to the final inspection, the Builder/Developer will provide final clean-up of the building and property. .2. Remove all plaster and paint smears and drops; clean all windows, screens, doors, finished hardware and plumbing fixtures; polish all chrome, clean and polish all countertops and floor covering; throughout entire house-new and/or old. Provide cleaning of all exterior surfaces including walls, windows, landscape areas, driveways, and walkways. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 5 of 28 1220—Operations Manuals and Warranties .1. The Builder/Developer will obtain and fill in all necessary information on all warranties where applicable, for manufactured products, materials and/or labor used in connection with the project. He/she shall deliver the original warranties to the EDA where appropriate copies will be made and the original will be delivered to the EDA upon completion of the work. Any sections that need to be sent to the manufacturer to validate the warranty, will be mailed as soon as possible. 2. GREEN OPPORTUNITY: Provide operation and maintenance manuals, and perform training of users to properly instruct them on the green features of the property and how to maintain them. 1230—Systems Startup .1. Prior to turnover of building, Builder/Developer will conduct testing and startup of all equipment new and/or old for verification of functionality. .2. Builder/Developer will ensure that all equipment components (such as filters, bulbs, batteries) are replaced prior to turn over. 2000 - Building Sitework/Site Preparation 2010 - Site Clearing and Demolition .1. This work shall be executed in a safe, orderly manner, and in accordance with all applicable codes. .2. The Builder/Developer shall protect all existing materials and apparatus from damage, and shall repair damage caused by workers at no cost to the EDA. .3. Remove trees and plant materials, with EDA's approval, from areas to be cleared. .4. Maintain protection of trees and plant materials which are to remain until completion of work. .5. Debris shall not be allowed to accumulate. .6. Remove all unsightly trash and dangerous material (wood, metal, etc.). 2020 - Site Earthwork .1. Placing of footings and foundations on earth fill will not be permitted. Fill excess cuts under footings and foundations with concrete, and under slabs with tamped gravel. .2. Excavations for footings shall be neat and accurately cut trenches to depths and grades shown on drawings/plans. In the absence of drawings/plans, code requirements shall govern. .3. All grading around any structures shall have high spots lowered and low spots raised to a minimum of 6" below top of floor slab; a minimum of Tout with a slight slope from structure. .4. Site grading shall accomplish the following: A. Allow drainage of surface water away from buildings and off-site. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 6 of 28 B. Minimize earth settlement problems. C. Avoid concentrating runoff onto neighboring properties where erosion or other damage would be caused. D. Minimize erosion. E. Minimize potential earth movement problems which might adversely affect completed construction. 5. GREEN OPPORTUNITY. Grades around structures shall maintain at least a 5%slope away from the foundation. 2040 —Site Hazardous Waste Remediation .1. The property shall be free of hazards which may adversely affect the health and safety of the occupants or the structural soundness of the improvements or which may impair the customary use and enjoyment of the property. These hazards include toxic chemicals, radioactive materials, other pollution, hazardous activities, subsidence, flood, erosion, expansive or compressible soils, inadequate drainage outfall, landslides or mudflows, and deposition of suspended solids or others located on or off site. Projects with potentially significant hazards may be acceptable if any such hazards are effectively mitigated. 2100 - Site Improvements 2110— Roadways, Driveways, and Walkways .1. Surfaces and base courses for roads, streets, parking areas and walks shall be durable materials. Their construction shall be in conformance with generally accepted local design practices. .2. Slabs for roadways, driveways, and walkways shall be designed and constructed in accordance with standards set forth by the American Concrete Institute, and as may be necessary to prevent slab damage due to potential soil movements. .3. Provide for repairs and/or repairs of existing surfaces to match existing. .4. These surfaces shall be installed with provisions for drainage. Adequate surface and underground drainage systems shall serve all paving and improvements so as to ensure continuing stable soil support for these improvements. .5. Minimum width for driveways shall be 10', and sidewalks 3', if installed new; or if replaced, to match existing if wider than 10'. .6. All exterior concrete surfaces shall be a light broom finish with expansion joints approximately every 12' (fiber material), with slope for drainage away from structure and property. .7. All flatwork expansion joints shall be filled with clear silicone sealant. .8. Where soil and/or concrete for porches, steps and other work is in contact with members, galvanized metal flashing, or solid sheathing and 15 lb. felt shall be installed, or wrap and scratch coat applied. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 7 of 28 .9. GREEN OPPORTUNITY., Limit water runoff and maximize infiltration by avoiding impervious surfaces and installing permeable drainage areas between sidewalks, driveways, walkways, patios, and pathways. A. Open matrix concrete grid pavers. B. Specialized honeycomb substrates for gravel or turf. C. Pervious mixes of concrete or asphalt. 2150— Fencing .1. Check all boundaries to ensure property lines are observed, and City Ordinances are not violated (front yard, side yard, and back yard maximum heights). .2. All post setting holes shall not be less than 24"deep and 6" diameter, at a maximum of 10' intervals. When adjacent to a foundation (walls), offset hole to obtain 24" depth, and fill in any space larger than 2" between wall and post. .3. Entrance walk gate shall be a minimum of 3'wide, and driveway gates a minimum of 12'wide; including all gate hinges and. padlock latch attachments. .4. Wrought Iron A. Posts to be 2" x2"x .090 (16 gauge). j B. Top and bottom rails to be 1 Y"x 1 '/2" (16 gauge). C. Pickets to be%"x%" (16 gauge),4" on center. .5. Chain Link A. All galvanized material. B. 2-3/8" O.D. end, corner, and gate posts. C. 1-5/8" O.D. line and corner diagonal posts. D. 1-3/8" O.D. top rail, with bottom tension wire. E. 11 gauge-2" mesh;to include all bands and wire ties. .6. Wood Fence A. All posts will be of galvanized material (unless otherwise specified). B. 2-3/8" O.D. end, corner, and gate posts. C. 1-5/8" O.D. line and corner diagonal posts. D. Two 2 x 4 horizontal support rails. E. Fencing as specified (redwood or cedar-minimum#2, two nails per rail). .7. Block Wall A. Shall be in accordance with the City of San Bernardino drawing on Garden & Retaining Wall Standards available from the Building & Safety Department. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 8 of 28 2150 - Landscaping .1. All trees and shrubbery identified to remain shall be trimmed. Trim to property line and a minimum of 4' above roofing or structure; removing all debris. .2. All trees and shrubs identified to be removed shall be cut to surface. Remove stump and roots a minimum of 8" below surface; removing all debris, and fill in hole with soil. .3. Natural site assets such as existing trees, shrubs, ground cover, must be preserved, maintained, and protected whenever possible. .4. Any existing assets lost due to the construction efforts and/or lack of protection will be replaced with like kind and size at the Builder/Developer's expense. .5. GREEN OPPORTUNITY: Create environmentally friendly lawns and landscaping by: A. Cover play areas with wood shavings. B. Limit the amount of lawn space by installing naturalized plantings. C. Provide alternative water sources. D. Plant drought-tolerant landscapes. E. Plant shade trees in an effort to reduce the cooling loads required in the house. F. Consider planting edible plants. G. Use water-conserving irrigation equipment where landscape irrigation is required. I. Drip Irrigation. ii. Advanced irrigation controls like rain sensors. 2200 Site Civil /Site Utilities 2210 - Utilities .1. Underground piping and related items shall be protected from corrosion. Underground mechanical and electrical systems shall be protectively coated to minimize corrosion where soil conditions warrant. Where applicable, sacrificial anodes may be used. .2. Sacrificial anodes may be used where soil resistivity does not exceed 15,000 ohm - centimeters. Otherwise, an impressed current system of corrosion prevention shall be used. .3. Utilities and other facilities shall be independent for the property, without dependence upon other properties. 3100 -Selective Demolition 3110 - Building Elements Demolition .1. This work shall be executed in a safe, orderly manner, and in accordance with all applicable codes. .2. The Builder/Developer shall protect existing materials and apparatus from damage, and shall repair damage caused by workers at no cost to the EDA. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 9 of 28 .3. Debris shall not be allowed to accumulate. .4. The Builder/Developer shall remove all flooring finishes identified to be removed or replaced. Including abatement of any materials designated as containing asbestos. .5. Provide all roofing membrane removal as required for the removal of existing and installation of new roof, equipment, and connections. .6. The Builder/Developer shall provide shoring of all existing beams/structures being modified prior to removing existing bearing walls. .7. Remove all interior and exterior doors and/or frames that are identified for removal. This activity shall be coordinated with the EDA in an effort to not leave any openings un-lockable. .8. Remove all window stops/putty, glass, glazing, and frames as required. Provide demolition of existing sliding glass doors scheduled to be replaced. .9. The Builder/Developer shall remove all structural and non-structural wood stud /gypsum sheathing or wood stud / plaster partition walls, wing walls or portion of walls determined to be removed. A. All appurtenances identified to be removed / demolished on walls scheduled to be removed/demolished shall be removed and disposed of by the Builder/Developer. B. Appurtenances identified to remain, shall be removed and re-installed by the Builder/Developer. .10. Any specific cutting and patching of drywall needed to install conduit or piping shall be done by the Builder/Developer. .11. The Builder/Developer shall remove all wall surface material or portions thereof from interior and exterior walls for new framed openings such as but not limited to doors, windows, recessed electrical panels, louvers, HVAC grills and ducts, backing, etc. .12. The Builder/Developer shall provide removal of all existing spayed on acoustical (popcorn) ceiling texture. Provide for asbestos abatement as necessary. .13. The Builder/Developer shall remove existing casework and countertops, backing, anchors, bases, shims, backsplash, etc. identified to be demolished and disposed of. .14. Doors and windows must be able to be locked at the end of each day, or provide a temporary secure panel (approved by the EDA) closing the opening at no additional cost to the EDA. This also includes providing a temporary secure panel at all wall, door or window openings scheduled to be removed. .15. Removal of Ceramic tile shall include removal and replacement of wall substrate and any existing mortar bed. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 10 of 26 3120 - Hazardous Components Abatement .1. The property shall be free of those hazards which may adversely affect the health and safety of the occupants or the structural soundness of the improvements or which may impair the customary use and enjoyment of the property. These hazards include toxic chemicals, radioactive materials, other pollution, hazardous activities, subsidence, food, erosion, expansive or compressible soils, inadequate drainage ouffall, landslides or mudflows, and deposition of suspended solids or others located on or off site. Projects with potentially significant hazards may be acceptable if any such hazards are effectively mitigated. .2. The Builder/Developer shall provide all labor, material and equipment required to complete the work related to the Hazardous Materials Abatement as required. A. Provide all labor, material and equipment required to abate and legally dispose of off-site all Asbestos Containing Materials (ACM) and Lead Containing Materials including but not limited to pipe fitting insulation (elbows/ends), roof mastic, flooring, flexible joints, doors, door frames, plaster walls, sinks, ceramic tile, etc. B. Provide for the proper removal and disposal of PCB Ballasts and Fluorescent Light Tubes: i. It is assumed that all ballasts not labeled "No PCBs" are considered to contain PCBs and therefore must be treated as hazardous waste. The Builder/Developer shall disconnect the ballasts (those not labeled "No PCB's')from the fixtures and is responsible for proper disposal/recycling. ii. Mercury is present in fluorescent light tubes, which may be present throughout the project areas. Mercury is considered a hazardous waste and will be disposed of properly by the Builder/Developer. 4000 - Foundations 4010 -Standard Foundations .1. Includes excavation, backfill, compaction, and installation of all foundations. .2. Concrete materials for foundations shall be in accordance with City of San Bernardino standards and shall be approved by the EDA prior to placement. .3. Includes all formwork and accessories for all cast-in place concrete and cement concrete pavement with shoring, bracing and anchorage, form accessories, form stripping, and proper layout, location. Provide proper temporary supporUshoring (as required and/or needed). .4. Furnish and install all reinforcing steel bars, welded steel wire fabric, fabricated steel bar, slip dowels, or rod mats for all on-site cast-in-place concrete and cement concrete pavement. Provide and install all necessary accessories as indicated. .5. All vertical reinforcing steel protection shall be installed in accordance with CAL OSHA codes and regulations. Maintain said protection throughout the duration of reinforcement installation and until enclosed by finish material. .6. When replacing existing concrete with new, the new concrete shall have at least the same reinforcement as the existing. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 11 of 28 .7. GREEN OPPORTUNITY. Provide foundation water management system. .8. GREEN OPPORTUNITY Use concrete that contains a percentage of fly ash in place of portland cement. 4030 -Slabs on Grade .1. Concrete mixture shall be made of a 1-2-3 mix with plastic cement, sand, and 3/4" rock. Ready mix will be a 5 sack. Minimum 2500 psi. .2. Slabs shall be constructed in accordance with ACI 302.1 R-80, Guide for Concrete Floor and Slab Construction, and as may be necessary to prevent slab damage due to potential soil movements. .3. Vapor retarders and base course shall be provided for all interior concrete slabs to which a finish Flooring is applied. A. Acceptable base course materials are gravel, slag, crushed rock, sand, cinders and certain types of earth when approved by the local EDA. See ASTM C-33-90, Table 2. B. Base course material shall be clean,washed and free from deleterious substances, consistent with ASTM C-33, with 100% of the material passing a 1" sieve and less than 2% passing a#4 sieve. .1. All concrete slabs shall be a minimum of 3 Y:"thick(additions, garages, driveways, sidewalks). .2. All interior surfaces shall be troweled smooth. .3. Includes excavation, backfill, compaction, and installation of all slabs. Completely furnish and install all concrete accessories, colors, finishes, forming, admixtures, reinforcement joint sealers, and curing compounds in accordance with the Specifications. 5000 -Superstructure 5010— Framing /Wood .1. Framing and wood construction shall be in accordance with the latest edition of the National Design Specification for Wood Construction. .2. A chemical barrier must be provided for structures built in those areas where termites are determined by the EDA to be a hazard. A physical barrier will also satisfy this requirement where the hazard is presented by subterranean termites only. .3. Where required by the EDA Field Office, protection against damage by decay shall be provided. A. GREEN OPPORTUNITY. Keep all untreated wood at least 12 inches above soil in lieu of the code required 8 inches. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 12 of 28 5100 - Exterior Enclosure 5110 - Exterior Walls 5111 —Stucco/ Plaster .1. The Builder/Developer shall investigate the condition of studs and ceiling joist to be sure framing members comply with appropriate code. .2. Install or reset all electrical boxes to new surface level. .3. Exterior angles shall be protected with woven or welded wire fabric of equivalent strength, or corner bead. .4. A surface inspection is required after sandblasting and before re-stuccoing by the EDA. .5. Application: A. Portland Cement plastering work shall be three-coat work when applied over metal and wire lath/wrap. B. Scratch (first) coat: Apply with sufficient material and pressure to fill solidly all openings in the lath/wrap, and to cover wall, and then scratch to rough surface. Allow to dry a minimum of two days. (Example: complete scratch coat Tuesday, start brown coat Friday). C. Brown (second) coat: Apply after scratch coat has set firm and hard, bring out to grounds, and straighten to a true surface with rod and darby; leave rough, ready to receive finish coat. Surface shall not have variation greater than Y4" in any direction under a five-foot straight edge. Allow to dry a minimum of seven full days before applying color coat. (Example: complete brown coat on Tues., color coat not to start until following Wed.). D. Finish (color) coats: Portland Cement and Lime Finish Coats-Apply over base coats which have set and surface-dry; lay on well, double back and fill out to a true, even surface. Thickness shall be 1/16"to 1/8", then texture as specified. E. When structure is to have lath/wrap and stucco over existing siding, the Builder/Developer is to remove door and window casing; trim out with metal edging or stucco molding, and seal. F. Exterior lath/wrap to be applied as per California Building Code. G. Stucco Color Coat: La Habra, Bauer, or equal. 5112— Exterior Insulation .1. Materials used for insulation shall be of proven effectiveness and adequate durability so as to ensure that required ratings concerning heat transmission, sound control and fire rating are attained. A. Manville, Owens/Corning, USG; or equal. B. Proper sound insulation shall be used at all walls. C. GREEN OPPORTUNITY: Use cellulose insulation. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 13 of 28 .2. Insulation in contact with the ground shall be installed so as not to be adversely affected by soil, vermin and water. .3. Shall be installed in accordance with Energy Conservation Standards administered by the Building & Safety Division of the City of San Bernardino. .4. Attics: A. If all exterior walls of house are not insulated, bring to R-38 rating (12"). B. If all exterior walls are insulated and/or new addition, insulate to R-30 rating (9"). C. GREEN OPPORTUNITY: All attic spaces are to receive insulation. .5. Walls: A. All exposed exterior walls and new addition, insulated to R-11 rating (3 '/z"). .6. Water Heater: A. If it has access from outside or in garage, install R-6 rating insulation blanket and wrap all exposed water lines with pipe insulation. B. GREEN OPPORTUNITY., Provide insulation at all water heaters 5113—Caulking and Joint Sealants .1. Materials used for caulking and sealants shall be suitable for the use intended, and shall be compatible with the materials to which they are applied and with any finish that may be applied over them. 5120 - Exterior Windows .1. When required shall be made easily openable, replace sash cords and weights or install spring loaded sash balances, as necessary. .2. Windows and operating hardware shall be installed in accordance with the recommendations of the manufacturer. .3. When aluminum single hung or slider window(s) is required and the frames are not to be taken out, use International Window Corporation, Keller, or equal (block frame), to fit existing opening. Caulk window frame before installing, including necessary trim. .4. When new aluminum slider or single hung window(s) installation is required, provide header(s), trimmers, flashing, International Window Corporation, Keller, or equal (standard frame). .5. Operating windows shall be manufactured units consisting of the frame, sill, sash, weather-stripping, and operating hardware. Job site assembled windows composed of frames and sashes made by different manufacturers are not acceptable. .6. Glazing: A. When replacing glass,thickness shall be as recommended by the manufacturer for the specific use. B. All bathroom windows shall be glazed with obscure glass. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 14 of 28 C. Glass set in wood shall be secured in place with springs or glazing points and face puttied, wood and putty to be primed and painted. D. Glass set in metal shall be secured in place with glazing clips, back and face puttied with appropriate material, metal and putty to be primed and painted. E. All glass shall be cleaned, with no cracks or rattles(new installation only). F. Re-putty shall mean to replace all damage, loose, and missing putty. .7. Weather-stripping shall be properly fitted to eliminate excessive infiltration of dust, snow, or rain. .8. Screens: A. Screens shall be installed on all openable windows. B. When re-screening or new screens are required, they shall be aluminum frames, aluminum screening; tight fitting and easily removed. C. Nylon screens on newly installed windows and combination doors may be acceptable, unless otherwise requested or stated. .9. If a window of any kind must be installed into the wet area of the tub or shower surround, it must: A. Contain a sill made of material that is water impermeable , such as marble or Corian, not tiled and grouted. B. Have a sill that is pan-flashed or sealed. C. Have frame made of moisture-tolerant material. 10. GREEN OPPORTUNITY. Replace existing windows and provide new windows with a high energy and low-e performance rating .11. GREEN OPPORTUNITY. Provide awnings, overhangs, or other shading devices on exterior windows. 5130 - Exterior Doors/ Garage Doors .1. All exterior doors will be wood or metal finish (no hardboard). Primed/painted or stained/varnished. .2. Doors shall be durable, installed in good operating condition, free of defects, latch readily and lock securely. .3. Doors shall fit opening and operate properly. .4. All new door installation shall include new hinges and all necessary trim. .5. Entry Doors: A. Exterior entry doors shall be side-hinged doors not less than 3 ft. in width and 6 ft. 8 in. in height. B. 1 %"solid core- Birch, Mahogany, Luan; unless existing jamb takes 1 3/8"door. C. 3 each -4"x 4" butt hinges, unless existing jamb takes 1 3/8"door, then 3-3'/"x 3 Y" butt hinges. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 15 of 28 D. Exterior door frames shall be treated against decay. E. Locks- Kwikset, Schlage, or equal. .6. Garage Doors: A. Steel frame construction. B. Installing new garage hardware or replacement hardware shall comply with the following safety notice: ... FOR YOUR SAFETY ... California State Assembly#772 directed the Commission of Housing and Community Development to change the appropriate rules and regulations in ways that, "ARE REASONABLY NECESSARY TO PREVENT THE DEATH OR INJURY OF PERSONS OR DAMAGE RESULTING FROM THE BREAKING OF GARAGE DOORS SPRINGS". (quoted from Assembly Bill#772) .7. Weather-stripping shall be applied to all exterior doors and interior garage door. .8. Weather-stripping shall be aluminum and vinyl. Install after surfaces are finished and dry. .9. Thresholds and door shoes shall be installed at all exterior doors and interior garage doors and shall be aluminum thresholds, and aluminum/vinyl with drip cap door shoes (channel type), sealed to be watertight. .10. Exterior jambs will be rabbet type (fit wall thickness) and to include new wood (pine) casing material. Replace stucco molding only if required. .11. A safety door check shall be provided on all outward opening doors, including storm and screen doors. .12. Locking devices at doors and windows shall be as follows: A. Each exterior doorway and each doorway leading to garage areas, terraces, balconies, or other areas affording easy access to the premises shall be protected by a door which, if not a sliding door, shall be equipped with a deadlock using either an interlocking vertical bolt and striker, a minimum of 1.2 in. throw dead bolt or a minimum 1/2 in. throw self-locking dead latch. Locks shall not require the use of a key for operation from the inside. B. All sliding doors, first floor and basement windows and windows opening onto stairways, fire escapes, porches, terraces, balconies or other areas affording easy access to the premises shall be equipped with a locking device. A sliding door used as a main or service entrance shall be equipped with a keyed locking device. .13. Screens shall be aluminum/satin finish with latch set and pneumatic closure or equal. .14. Security Screen —Jamb/frame will be 1' 1/4"x 1' 1/4" (18 gauge)with 3/4 x 3/4"center framing (18 gauge) and heavy gauge metal screening. Combination (Bel-Aire) - Solid core (no panels). 1 3/8" door, 3 - 3 1/"x 3 '/" butt hinges; 1 3/4" Locks- Kwikset, Schlage, or equal. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 16 of 28 5140- Flashing .1. Flashing shall have a service life at least equal to that of the assemblies into which it is built. .2. Counter flashing is considered exposed Flashing and shall be constructed of sheet metal. .3. Alternate products or systems of bitumen-impregnated plastic or elastomeric materials may be used for flashing if they are installed in accordance with the manufacturer's recommendations and are acceptable to the EDA. .4. All openings between wood or metal and masonry shall be caulked with a non- hardening caulking compound. 5200 — Roofing 5210 - Roof Coverings .1. Strip - Means to remove"all' roofing material to sheathing, with inspection of sheathing prior to installation of new roofing. .2. The Builder/Developer shall guarantee the owner to maintain the entire roofing, and counterflashing in a watertight condition for a period of fifteen years. .3. Shingles— A. Shall be fiberglass of 151b. felt. B. New metal 1 Y"drip edge and roof jacks (form over shingles, seal around all pipes). .4. Built-Up/ Roll Roofing Cap A. Roll roofing cap to be a minimum of 90 lb. roofing paper and must bear a class "C" UL listing. B. One 90 lb. cap sheet to be installed over two layers of 15 lb. felt paper, saturated with at least 20 lb. of hot mopped tar, between layers. C. All base sheets to be well nailed with approved galvanized nails providing a minimum 3/4" penetration into a firm solid sheathed surface. D. New metal 1/2"drip edge and roof jacks. .5. GREEN OPPORTUNITY. Provide reflective (high-albedo) roofing systems with an Energy Star rating 5220 — Gutters and Downspouts .1. Gutters and downspouts shall be provided at all projects. l .2. Gutters and downspouts-Shall be a minimum of 26 gauge galvanized metal, or vinyl material. .3. Gutters shall be sloped to downspout and supported a maximum of 3'apart. .4. End caps, corner joints, splices, outlet tubes shall be soldered or have watertight J joints. 1 City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 17 of 28 .5. Downspouts shall be fastened at top, bottom, and approximately every 6', and directed to drain away from the structure. .6. Downspouts shall be sized on the basis of 100 square feet of roof surface to 1 square inch of leader. More or less leader area may be required by the EDA. .7. Scuppers shall be installed at the ouffall end of a valley for special roof designs, such as"butterfly" roofs. .8. Scuppers shall be installed for overflow of all roofs enclosed by parapet walls. 9. GREEN OPPORTUNITY: Provide a simple rain water harvesting system for use on irrigation. 6000 - Interior Construction 6010— Partitions /Ceilings 6011 — Interior Insulation .1. Materials used for insulation shall be of proven effectiveness and adequate durability so as to ensure that required ratings concerning heat transmission, sound control and fire rating are attained. A. Manville, Owens/Corning, or equal. B. GREEN OPPORTUNITY: Use cellulose insulation. .2. Insulation in contact with the ground shall be installed so as not to be adversely affected by soil, vermin and water. .3. Shall be installed in accordance with Energy Conservation Standards administered by the Building &Safety Division of the City of San Bernardino. 6012 - Drywall .1. When installation of drywall is specified, provide 1/2" U.S. Gypsum wall board or equal, unless otherwise specified. 2. GREEN OPPRTUNITY: Select drywall products with a high recycled content and use taping materials and joint compound without hazardous additives that aid in drying and setting. .3. All joints and inside corners shall be taped; outside comers shall have corner bead troweled with joint compound (a minimum of three coats, and smoothly sanded or textured). .4. If kitchen base cabinets,toilet or lavatory are removed, and the drywall is to be replaced, it must be replaced with green board or equal. .5. If tub surrounding drywall is to be replaced, it must be replaced with wonder(cement) board. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 18 of 28 .6. All wall surfaces to receive ceramic tile shall receive wonder (cement) board or plaster in accordance with the following: A. Portland Cement plastering work shall be three-coat work when applied over metal and wire lath/wrap. B. Scratch (first) coat: Apply with sufficient material and pressure to fill solidly all openings in the lath/wrap, and to cover wall, and then scratch to rough surface. Allow to dry a minimum of two days(Example: complete scratch coat Tuesday, start brown coat Friday). C. Brown (second) coat: Apply after scratch coat has set firm and hard, bring out to grounds, and straighten to a true surface with rod and derby; leave rough, ready to receive finish coat. Surface shall not have variation greater than '/." in any direction under a five-foot straight edge. Allow to dry a minimum of seven full days before applying color coat(Example: complete brown coat on Tues., color coat not to start until following Wed.). 6020 - Interior Doors .1. Doors shall be durable, installed in good operating condition, free of defects, latch readily and close securely. .2. Doors shall fit opening and operate properly. .3. All new door installation shall include new hinges and all necessary trim and hardware. .4. Interior Hinged /Closet/Bathroom Doors: A. Shall be side-hinged doors not less than 1 3/8"thick. B. At least 2 each 3%"x 3 %" butt hinges. C. Locks- Kwikset, Schlage, or equal. .5. Shower Door/Tub Enclosure: A. Shower Doors—MAAX, Kohler, or equal. Seal around frame and walls. B. Tub Enclosure- MAAX, Kohler, or equal. Seal around frame and walls .6. Door stops installed at all swinging doors shall be solid (no coil springs). .7. Interiorjambs will be Flat type (fit wall thickness)and to include new wood (pine) material stop molding and casing (both sides). 7000 - Finishes 7010 — Ceramic Tile .1. Install ceramic tile where identified. .2. Ceramic tile to be American Olean, Dal-Tile, or equal. .3. GREEN OPPORTUNITY. Use ceramic file with high recycled content. .4. Submit a complete range of colors and types for the EDKs selection. One of each color of type selected shall be retained by the EDA. All materials placed in the building shall match such samples. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 19 of 28 .5. Applications and installation of adhesive, primer, caulking compound, and prepared grout when used, shall be as recommended by manufacturer of the tile and in accordance with these standard specifications. .6. Ceramic tile shall be applied over a water-proof surface only(cement or wonder (cement) board). .7. At showers, the top of step shall have slight slope into shower. 7020 - Floor Finishes .1. The Builder/Developer shall provide all necessary floor preparation of existing surfaces to properly receive new flooring material. .2. Sub-flooring shall be a minimum thickness of 3/4" plywood or 1x boards. .3. Underlayment shall have a maximum thickness 3/8" industrial particle board. .4. Install all flooring per manufacturer's recommendation. .5. Existing floor covering to be removed prior to installation of new floor. .6. Provide underlayment when sub-flooring is in such a condition to warrant replacement. Bathroom, kitchen, and laundry underlayment to be of water resistant material. .7. Surfaces to receive flooring shall be clean, dry, smooth, even, and without defects. .8. At Bathrooms, the toilet and lavatory cabinet shall be removed before flooring installed. Reinstall toilet and cabinets. .9. Install new baseboard or shoe after installation of flooring. If cove is required, it shall be formed integrally of matching sheet material. Adhesives shall be as recommended by manufacturer. .10. Coat all concrete floors on earth grade with concrete primer as recommended by manufacturer. .11. Leveling compound and crack filler-As manufactured by Aetna Manufacturing Company for concrete floors or equal. .12. Linoleum (sheet goods) - FHA base cushioned, Armstrong -Cambray or equal. .13. Vinyl Tile-Armstrong - Stylistic or equal. .14. Carpet-260z. A. Base, HUD/FHA bulletin UP-44c requirement. B. Pad -5/8" rebond high plush, HUD bulletin UP-72 requirement. .15. GREEN OPPORTUNITY: Provide greener carpeting such as: A. Products made from natural materials; B. Products that do not contain residues from dyes and finishes used in manufacturing; C. Products that do not have surface treatments to repel stains; D. Products with documented low VOC offgassing; City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 20 of 28 E. Products with high recycled contents. .16. Submit a complete range of colors and types for the EDA's selection. 7030 - Ceiling Finishes .1. Ceilings shall be drywalled and painted. No sprayed on acoustical ceilings (popcorn) will be allowed. 7040 - Painting .1. Lead Content: A. The definition states in part, .......with respect to paint which is manufactured after June 22, 1977, lead-based paint means any paint containing more than six one- hundredths of one percent lead by weight(calculated as lead metal) in total non- volatile content of the paint or the equivalent measure of lead in the dried film of paint already applied". B. All contractors and sub-contractors on rehabilitation activities will comply with the Lead-Base Paint Regulation under 24 CFR Part 35, requiring: I. The prohibition of the use of lead-based paint in the rehabilitation of properties; ii. The elimination of immediate lead-based paint hazards in residential structures. .2. All paint shall have low VOC levels. .3. If exterior painting is required, caulk all exterior door and window frames to seal completely. Remove all loose and deteriorated putty on windows and re-putty before painting. When painting of exterior trim is specified, this shall include doors, windows, all frames, eaves, soffits, porches and all appendages. .4. If a paint to be used on exterior surfaces is not inherently mold resistant, a suitable fungicide shall be included in the formulation. .5. If repair of exterior surfaces is indicated, remove all broken and loose material by raking out, scraping and sanding if necessary. Repair with proper material for area being repaired, blending in with texture of area being repaired. Prime the repaired area prior to painting. .6. If interior painting is indicated, repair all cracks by"V" scratch approximately 1/8"X 1/8" in walls and ceilings of all rooms being re-painted. Use proper type of patching material for areas being repaired. Fill all cracks and holes solid and blend in repaired areas with texture of surface being repaired. Prime cracked areas prior to painting. When painting of walls and ceilings of a room is specified, this shall include all trim, windows and door frames, closets, and cabinets (inside). .7. All surfaces to be painted shall be free of dirt, dust, grease before painting is started. All knots, pitch streaks, and sappy spots shall be first sealed with shellac or sealer approved for use with materials as specified, before subsequent coats are applied. Each coat shall be allowed to dry before subsequent coat is applied. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 21 of 28 .8. If it should become necessary, in order to give good coverage because of surface condition of the paint color(s), it is the obligation of the Builder/Developer to apply sufficient coats to obtain complete coverage. .9. All new drywall shall be primed with one coat of Drywall Sealer/Primer before the application of the finish coat, unless otherwise specified. .10. Paint to be Dunn-Edwards, Glidden, Sinclair or equal. EDA to select color(s) and finish. .11. Paint for kitchen, service area, bathroom(s)to be a durable and washable gloss finish (unless EDA requests a semi-gloss). .12. Stain— Exterior/interior application (Minwax, Behr, or equal). .13. Varnish - Exterior/interior application (Behr, Varathane Elite, or equal). .14. Spar gloss or satin, EDA to specify (Behr, Varathane Elite, or equal). .15. Spar gloss or satin, EDA to specify (Behr, Varathane Elite, or equal). .16. Paint application shall consist of two coats on old material, and three coats on bear wood or new material. The top and bottom edges of interior doors shall be sealed (painted or varnished)with one coat, exterior doors with two coats. .17. Application of paints, stains, or other coating systems shall be in strict accordance with manufacturer's directions and shall comply with the following: A. Exterior Wood Siding, Millwork and Trim L Knots, resinous wood, and nail holes shall be sealed with a prepared sealer or aluminum paint prior to puttying and priming. Any nail holes or cracks in surfaces to be painted shall be filled with putty. ii. A prime coat shall be applied to all surfaces to be painted before or immediately after installation. Primer shall be formulated specifically for application to unfinished wood. Finish coats formulated to serve as primers may be used. iii. One of the following finish systems shall be applied. Coverage shall be that which will provide at least the minimum thickness recommended by the manufacturer. a. Oil paint systems. b. Latex paint systems. c. Pigmented stains as per manufacturer's directions. d. Clear penetrating preservatives or water repellent finishing systems. iv. The top and bottom of exterior wood doors, casement sash, awning sash and the bottom of double hung sash shall receive two coats of paint or sealer. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 22 of 28 V. Prior to erection, all edges of vertical siding shall be sealed with a heavy coat of house paint primer, water repellent stain, exterior aluminum house paint or sealer. Wood batten strips shall be backed-primed or sealed. B. Wood Shingles, Shakes, Rough-sawn Siding. I. Two coats of oil stain, pigmented oil stain, or an oil shingle paint shall be applied. C. Hardboard and Softwood Plywood Siding. i. These sidings shall be finished in accordance with the manufacturer's direction. D. Wood Porch Floors and Decks. i. One coat of primer and two coats of Floor and deck enamel designed for exterior use shall be applied. Joints between Floor and wall shall be caulked. E. Unfinished Surfaces. I. Shingles and board siding of vertical grain cedar, redwood and bald cypress may be left unfinished. F. Exterior Concrete Masonry Units or Concrete Brick i. At least two coats of masonry paint shall be applied. ii. Concrete masonry units or concrete brick, except small areas of foundation walls, shall be painted to provide a water resistant finish. iii. High density concrete brick or solid split block forming the outer face of double unit walls (veneer, cavity walls, etc.) may be left unpainted when acceptable to the EDA. G. Exterior Galvanized Steel or Iron i. Field painting shall consist of two coats. One coat shall be a primer formulated specifically for galvanized surfaces, and the second coat shall be a finish coat. A finish coat formulated to serve as a primer may be used as the first coat. H. Exterior Steel, Iron or Terne Plate it. Steel or iron, except stainless steel,weathering steels, or steel treated with coatings to provide corrosion resistance, shall be painted. iii. A rust inhibitive primer and a finish coat shall be applied. I. Interior Millwork and Trim L All mill work and trim, including windows; interior doors; window, door and base trim; paneling and closet shelving and trim shall be finished by painting or natural finishing. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 23 of 28 ii. If the surface is open grain wood, it shall be filled or sealed to prevent the grain from rising. Surfaces shall be treated with a primer. One or more finish coats shall be applied to provide a smooth surface and good hiding. iii. Natural finishes include stain-wax, stain followed by one or more coats of varnish, clear coats of varnish with or without wiped paint undercoats or oil and wax finishes. J. Wood Floors L If flooring is open grain wood, one coat of filler shall be applied. All excess shall be wiped off. ii. Flooring shall be finished with: a. One or two coats of penetrating sealer and one coat of wax; or b. Two coats of varnish and one coat of wax; or c. Two coats of polyurethane; or d. One or more coats of factory-applied finish. K. Interior Plaster and Gypsum -Walls and Ceilings I. Plaster surfaces may be painted, covered or left unfinished, except for surfaces of kitchens and baths. If painted, a finished coat shall be applied over a primer-sealer, unless finish coats are of the self-priming type. ii. Gypsum wallboard shall be covered. If painted, one coat of wallboard sealer shall be applied unless finish coats are of the self-sealing type. Two finish coats shall be applied over the sealer. One finish coat, except in kitchen and baths, may be acceptable if good coverage is obtained. L. Interior Metal I. Non-ferrous metals or wrought iron may be painted or left unfinished. Other metals shall be painted in accordance with 609-3.4. M. Interior Concrete Floors L If painted, at least two coats of resin emulsion paint, a solvent rubber paint or a floor and deck enamel shall be applied. If oil paint is used, the surface shall be neutralized before painting. ii. A coat of wax shall be applied over paint, stain or an integral finish. N. Wall Coverings i. Covering material shall be secured to a suitable base in accordance with the manufacturer's directions. ii. All rooms that have new wall covering installed will include molding, trim, base, and painting (if required). City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 24 of 28 8100 — Furnishings 8110—Carpentry, Cabinets, and Millwork .1. All manufactured factory finished cabinets shall comply with ANSI A161.1-86, Recommended Minimum Construction and Performance for Kitchen and Vanity Cabinets, or with an equivalent standard. .2. Workmanship: All interior wood finish, cabinet and casework shall be smooth dressed, well sanded, and thoroughly cleaned before priming. All material showing machinery, sandpaper, or other defacing marks will be rejected. Interior wood finish or cabinet work shall not be installed on newly plastered walls until the plaster in that section is reasonable dry and approved by the EDA. .3. All interior wood finish, doors, frames, and other cabinet work or fixed wood equipment shall be properly installed, level plumb, and true. Members shall be neatly and accurately scribe in place, maintaining full lengths without splicing, except where the use of full lengths would be impractical or impossible, and then if joined, butt joints shall be beveled. Replacement and installation of new trim or molding shall match existing in size and profile or otherwise be reasonably appropriate upon finished installation. .4. All cabinets(kitchen base and wall, bathroom lavatory, etc.) shall be a minimum of birch plywood construction (stain grade quality), shop fabricated casework, with all necessary hardware. Shelving shall not be less than 3/4" pine, plywood, or particle board. Kitchen base cabinets shall have a built-in bread board. .5. All cabinets and trim shall be scribe to contacting surfaces and shall be straight, plumb level and in true alignment, closely fitted, and rigidly fastened in place. .6. Countertops: A. Top material shall be phenolic laminate, vinyl plastic covering, ceramic tile, stainless steel or other material suitable for its intended use. B. The top material shall be securely bonded to a reinforced steel core, to 5/8 in. plywood, or to any other equivalent material. C. At least a 3 in. back and end splash shall be provided against all abutting vertical surfaces which are not water and grease resistant. When a back splash is omitted,the joints at the juncture of the counter top and vertical surfaces shall be tight and sealed. D. All edges, including the sink and any built-in surface units, shall have a non- corrodible metal molding or other suitable edging. E. High Pressured Laminated Plastic(Formica or equal) - Shall be constructed with a bullnose front edge, minimum of a standard back splash where it abuts walls, and full length of cabinets. If laminated plastic ends at wall, provide end splash (material must be identical to counter top original color). Scribe and closely fitted to adjacent work, and securely anchored to cabinets. Installation of sinks shall have required mounting Flange and sealed against leaking. No butcher block unless otherwise requested or stated by the EDA. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 25 of 28 F. Ceramic Tile -Shall be applied over a plastic cement base secured to 3/4" exterior plywood secured to the cabinets. Raise front edge, minimum of a standard back splash, and sealed at edges of full length cabinets. (See Ceramic Tile Specification). G. GREEN OPPORTUNITY.. Countertops shall be made of natural stone (granite), tiles, or manufactured solid surfaces(Corian). .7. Interior woodwork: A. Trim (D.F.) "B or better". B. Shelving - Particle board or#2 shelving. 9000— Plumbing, Mechanical, Electrical 9010 - Plumbing Fixtures .1. All fixture installation is to include trap, vent, faucets, and all trim necessary to mount fixture in an approved manner, and to include repair of damaged areas affected by the installation.When kitchen or lavatory faucet is replaced, it will also include risers. Replace all angle stops. .2. Fixtures: A. Water closets- Deep bowl (round or elongated per EDA request). American Standard - Hydra; Eljer—Titan; Kohler; or equal. Handicap(17" high). Must be rated at no more than 1.6 gallons per flush. i. GREEN OPPORTUNITY: Use of a high-efficiency toilet that uses less than 1.6 gallons per flush is recommended. B. Bathtubs-5' pressed steel-American Standard; Kohler, or equal C. Lavatories—American Standard, Kohler, or equal. D. Kitchen Sinks-Single or double compartment enameled cast iron - Kohler or equal; Single or double compartment stainless steel (7" depth, 20 gauge minimum thickness) -Sterling or equal. E. Garbage Disposal- Insinkerator— Badger 2, '/ HP (3 year warranty) or equal. F. Laundry Sinks-American Shower& Bath, or equal. G. Faucets i. Lavatory- Delta, Peerless, Kohler, or equal. ii. Tub/Shower Diverter- Price Pfister, Kohler, or equal. iii. Shower- Price Pfister, Kohler, or equal. iv. GREEN OPPORTUNITY. Provide low flow faucets and shower heads or fit standard faucets with a flow reducing aerator. H. Bathtubs-5' Lasco; Hess Co; or equal. I. Tub Wall Kits- Plaskolite, Elite; Nova, Seville; or equal. J. Shower- Lasco, or equal. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 26 of 28 K. WATER HEATERS: i. Shall be Reliance; Galaxie; Whirlpool; or equal,with an eight(8) year warranty. Size shall be as required to service property. ii. All shall have pressure/temperature relief valve with a drain line to the outside; or if located on a concrete Floor in center of house - pressure/temperature relief valve and drain line shall be installed per Building and Safety requirements. ii. All units shall be secured to walls. iv. All units shall be insulated. v GREEN OPPORTUNITY. Water heater should have a high-efficiency rating. 9020 - Domestic Water Distribution .1. Each dwelling shall be provided with a continuing and sufficient supply of safe water under adequate pressure and of appropriate quality for all household uses, and one that will not impair the functioning or durability of the plumbing system or attachments. .2. Connection shall be made to a publicly owned or publicly controlled water supply system that is adequate to serve the demands of the project. .3. Provide all connections to risers or fixtures from top to mains so that the entire system can be drained at low point. .4. Provide hot water supply to all fixtures except water closets. .5. Support piping from the building structure by means of hangers to maintain required grading and pitching of lines and to prevent vibration. .6. GREEN OPPORTUNITY. All hot water lines shall be insulated. .7. GREEN OPPORTUNITY. Consider the use of PEX piping. 8 GREEN OPPORTUNITY Provide a single-throw shut-off valve at service to clothes washing machines. If machine located above a livable space, provide a floor drain and shower pan under the washing machine. 9030 - Sanitary Waste .1. Roto Root(clean) all drain lines to street through clean-out cap, roof vent, etc. .2. Each dwelling shall be provided with a water-carried system adequate to dispose of domestic wastes in a manner which will not create a nuisance or endanger the health of the occupants or the public. .3. Connection shall be made to a publicly owned or publicly controlled system that is adequate to serve the needs of the project. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 27 of 28 9100 - Heating, Ventilating, and Air Conditioning (HVAC) 9110 — Heating and Ventilating .1. Heating and ventilating equipment shall be Trane; Bryant; Carrier; or equal, as appropriate to the situation. .2. GREEN OPPORTUNITY., Equipment should be rated as high effleciency. .3. GREEN OPPORTUNITY: Evaluate existing heating and ventilation system and down size or reconfigure to be more efficient. Do not oversize equipment. .4. GREEN OPPORTUNITY., Consideration should be given to using equipment that provides alternatives to conventional refrigerant, such as non ozone depleting HFC refrigerants. 5. GREEN OPPORTUNITY: Provide ceiling fans in bed rooms and living spaces. .6. Provide wall thermostat with complete vent system, attic shield, roof jack, and gas piping/shut-off valve. .7. GREEN OPPORTUNITY., Install programmable thermostats with both daytime and nighttime setbacks. Separate control of different spaces into zones so that the unit works more efficiently. 8. GREEN OPPORTUNITY., Provide duct cleaning prior to turn over .9. Install in an approved manner and location. .10. Crawl Space Ventilation: A. The space between the bottom of the floor joists and the earth under any building (except such space as is occupied by a basement or cellar) shall be provided with a sufficient number of ventilating openings through foundation walls or exterior walls to ensure ample ventilation. Such openings shall be covered with a corrosion-resistant wire mesh with a mesh size not greater than 1/2 in. nor less than 1/4 in. in any dimension. The minimum net area of ventilating openings shall not be less than 1 sq. ft. for each 150 sq. ft. of crawl space area. B. One ventilating opening shall be within 3 ft. of each corner of each building where such openings are required. .11. Attic Space Ventilation A. Cross ventilation shall be provided for each separate space. Ventilation openings shall be protected against the entrance of rain and snow. B. The ratio of the total net free ventilation area to the area of ceiling shall be not less than 1/150, except that the ratio may be 1/300 if: i. A vapor retarder having a transmission rate not exceeding one perm is installed on the warm side of the ceiling; ii. Between 25 and 50 percent of the required ventilating area is provided by vents located in the eaves or cornices with the balance of the required ventilation provided by ventilators located at least T-0" above the vents in the eaves or cornices; or City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 28 of 28 iii. The attic space is accessible and suitable for future habitable rooms or walled-off storage spaces have at least 50% of the required ventilating area located in the upper part of the ventilated spaces as near the high point of the roof as practicable and above the probable level of any future ceiling. 9200 — Fire Protection Systems 9210— Fire Protection Specialties .1. Provide smoke detectors that are U.L. approved; First Alert SA150LT, or equal. Hard wire will have battery back-up. 2. GREEN OPPORTUNITY. Provide carbon monoxide detectors. 9300 - Electrical Systems 9310 - Electrical Service and Distribution .1. When required, provide a new electrical service box/meter. All existing circuits shall be checked out and split as required. All new loads, outlets, lights, etc., must be on additional circuits, unless prior approval is received from the EDA. .2. Electrical Service installed at location shall be as recommended by Edison Company. .3. Check all services and verify all electrical service, circuits (marking panel if not done); replacing all faulty outlets, switches, damage and missing cover plates; for house and garage. .4. When encountering non-complying wiring, it is to be removed in its entirety. This is to include boxes, lights, old panels(unless used for junction box), etc.; and to include repair, patching, and painting of all areas affected (to match existing) --ceilings, walls, etc. All new wiring shall be concealed within walls, ceilings unless approval from the EDA is obtained prior to installation. .5. GREEN OPPORTUNITY: All bulbs shall he fluorescent. No incandescent lighting will be allowed. 6. GREEN OPPORTUNITY. Avoid recessed lighting. When required use insulation- contact fixtures that seal tightly and allow insulation to be packed against them. 7. GREEN OPPORTUNITY. Install dimmer switches at all living areas. Restrooms shall have motion detector switches. .8. GREEN OPPORTUNITY. All low voltage (telephone, data, television) shall be run in conduits to provide for future expansion and/or replacement. AFFORDABLE HOUSING SOLUTIONS OF SAN BERNARDINO,INC. DEVELOPMENT AGREEMENT FOR INTERMEDIARY SERVICES [INLAND EMPIRE CONCERNED AFRICAN AMERICAN CHURCHES] This Development Agreement for Intermediary Services (the "Agreement") is made and entered into as of March 15, 2010, by and between Affordable Housing Solutions of San Bernardino, Inc. ("AHS"), a California 501(c)(3) public benefit corporation, and Inland Empire Concerned African American Churches, a California 501(c)(3) public benefit corporation, ("Consultant"). NOW, THEREFORE, IN CONSIDERATION OF THE COVENANTS AND MUTUAL PROMISES CONTAINED HEREIN AND FOR SUCH OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED, THE PARTIES HERETO AGREE AS FOLLOWS: 1. Supervision of Consultant. The AHS officers and or their assignee's designated in Exhibit 'IF" attached hereto (collectively, the "AHS Representatives") shall be responsible for the direction of any work to be performed by the Consultant and any other consultants or subconsultants to AHS under this Agreement. The Consultant shall not undertake any work under the terms of this Agreement, unless instructed to do so by any one of the AHS Representatives. No other AHS representative is authorized by AHS to request services from the Consultant, pursuant to this Agreement. Approval by any one of the AHS Representatives shall constitute approval by AHS. 2. Term of Agreement. The term of this Agreement shall commence on the date first appearing in this Agreement (the "Effective Date") and will terminate six (6) months after this date, unless earlier terminated as provided in this Agreement. AHS will have the option to extend the term of this Agreement at the sole option and discretion of AHS with the written consent of the Consultant. AHS reserves the right through the actions of the Chief Executive Officer or the Chief Operating Officer of AHS to terminate this Agreement at any time either with or without cause and at the sole convenience of AHS upon delivery of notice of termination to the Consultant; provided, however, that upon the effective date of any such termination, AHS shall be responsible to pay and/or reimburse the Consultant for all services, materials and supplies as may have been furnished to AHS prior to the date of the termination of this Agreement in accordance with the Scope of Services as referenced in Section 3. 3. Scope of Consultant Services. AHS hereby retains the Consultant to provide the professional consulting services set forth in the Scope of Services attached hereto as Exhibit"E" and incorporated herein by this reference. The Consultant hereby agrees to perform the work set forth in the Scope of Services, in accordance with the terms of this Agreement. The Consultant shall perform the services as set forth on said Scope of Services within the time periods to be identified by the appropriate AHS Representative. The Consultant shall comply with those laws, regulations or ordinances governing fair housing and equal opportunity practices and the - 1- PNgw ne geM An hmeMa4 aAnaeh=MsV erA 3010` .M10� COeve10g mAgr =-PiW,d abatement of lead-based paint, asbestos and mold practices as required under the Neighborhood Stabilization Program ("NHS") promulgated by the United States Department of Housing and Urban Development("HUD")pursuant to the provisions of the Housing and Economic Recovery Act of 2008, Public Law 110-289 — July 30, 2008, Title III — Emergency Assistance for the Redevelopment of Abandoned and Foreclosed Homes, Section 2301, et seq., as the same may be hereafter amended, restated or supplemented from time-to-time, and the Notice of Allocations, Application Procedures, Regulatory Waivers Granted to and Alternative Requirements for Emergency Assistance for Redevelopment of Abandoned and Foreclosed Homes Grantees under the Housing and Economic Recovery Act, 2008 issued by HUD and found at the Federal RegisterNol. 73, No. 194/Monday, October 6, 2008/Notices, as the same may be hereafter amended, restated or supplemented from time-to-time(collectively,the"NSP Regulations") 4. Payment by AHS for Work Performed by the Consultant. A. AHS shall compensate the Consultant for completion of the services described in the Scope of Services set forth in Exhibit "E", "Scope of Services", in accordance with the guidelines stipulated in Exhibit"IT', "Consultant Payment and Reimbursement". B. The compensation designated in subsection 4.A. shall be the "Total Fee" for the performance of the work and the delivery of the final work product materials, as set forth in the Scope of Services for each property acquired directly or indirectly by AHS for which the services were provided by the Consultant in accordance with this Agreement. The Total Fee shall include, but not be limited to, the materials and salaries of all subcontractors and vendors retained by the Consultant and all employees of the Consultant to perform work pursuant to this Agreement and all general overhead expenses of the Consultant inclusive of all costs and expenses incurred for mileage, travel, graphics, telephone, printing, fax transmission, postage, copies and such other expenses related to completion of the work set forth in the Scope of Services. C. The Consultant shall invoice AHS for eligible predevelopment expenses and work performed by the Consultant under this Agreement through funds draw requests submitted by the Consultant in accordance with AHS's policies and procedures, and approved by AHS, on a monthly basis, or on a more frequent basis if requested by the Consultant and approved by AHS, with the first draw request occurring no earlier than two (2)weeks after the Effective Date. D. The Consultant shall submit draw requests under this Agreement to: Affordable Housing Solutions of San Bernardino, Inc. Attention: Chief Operating Officer 201 North"E" Street, Suite 301 San Bernardino, California 92401 E. The Consultant's funds draw request shall set forth the cost of any direct labor and materials incurred in performance of the Scope of Services, the appropriate portion of fees described in Exhibit "H", as applicable, the cost of any permits or licenses required to perform -2- P:Ugen IAge AnacAmems�geMa AmchmemsV,"s-Am 2010W2-15-10 MCMCD Wpmem Agra -PIml.doc the Scope of Services, and any other costs approved by AHS. Each draw request submitted by the Consultant shall include copies of all third party invoices for any subcontractors or other consultants hired, any invoices for materials, any conditional and unconditional lien releases for invoices submitted by subcontractors or other consultants, and any forms or documents provided by AHS that AHS requires to be included as part of the Consultant's draw request. All funds draw requests shall be signed by the Consultant and approved and signed by an AHS Representative or an AHS designated agent. Upon receipt of the Consultant's draw request package, AHS shall review the draw request package and notify the Consultant whether it approves of the draw request within three (3) working days after receipt of the draw request. AHS shall issue a check or wire transfer to the Consultant equal to the total amount of those costs included in the draw request and approved by AHS. 5. Records Retention. Records,maps, field notes and supporting documents and all other records pertaining to the use of funds paid to the Consultant hereunder shall be retained by the Consultant and shall be made available to AHS for examination and for purposes of performing an audit for a period of five (5) years from the date of expiration or termination of this Agreement or for a longer period, as required by law. Such records shall be available to AHS and to appropriate county, state or federal agencies and officials for inspection during the regular business hours of the Consultant. If the Consultant does not maintain regular business hours, then such records shall be available for inspection between the hours of 9 a.m. and 5 p.m. Monday through Friday, excluding federal and state government holidays. In the event of litigation or an audit relating to this Agreement or funds paid to the Consultant by AHS under this Agreement, such records shall be retained by the Consultant until all such litigation or audit has been resolved. 6. Indemnification. The Consultant shall defend, indemnify and hold harmless AHS, its officers, employees, representatives, and agents (collectively, the "Indemnified Parties") from and against any and all actions, suits, proceedings, claims, demands, losses, costs and expenses, including audit fees and other audit related costs, legal costs and attorneys fees, for injury or damage of any type claimed as a result of the acts or omissions of the Consultant, its officers, employees, subcontractors and agents, arising from or related to performance by the Consultant of the work required under this Agreement; provided, however, in no event shall the Consultant be liable to the Indemnified Parties in the event that any such actions, suits, proceedings, claims, demands, losses, costs and expenses result from the gross negligence, fraudulent conduct or willful misconduct of the Indemnified Parties, or any one of them. Moreover, the Consultant shall not be liable to the Indemnified Parties for defects not normally identified. Notwithstanding the foregoing, under no circumstances shall the Consultant be liable to the Indemnified Parties as a result of the failure of AHS to provide to the Consultant any amounts due to the Consultant in accordance with this Agreement, unless such failure was the result of gross negligence, fraudulent conduct or willful misconduct on the part of the Consultant. -3- P:�AgeMUUgeMe AnachmenuUBenEa AtuclmmnUg.mwAmuB: lOb)-IS10�CMCDeWOpmem Agseen e Fmil Notwithstanding anything to the contrary provided in this Agreement, it is specifically understood and agreed, such agreement being a primary consideration for the execution of this Agreement by the Consultant, that there shall be absolutely no personal liability on the part of any shareholder, director, officer, manager, member or employee of the Consultant with respect to any of the terms, covenants and conditions of this Agreement. The Agency hereby waives all claims, demands and causes of action against the shareholders, directors, officers, members or employees of the Consultant in the event of any breach by the Consultant of any of the terms, covenants and conditions of this Agreement. 7. Insurance. The Consultant shall maintain insurance, as set forth in Exhibit "G" to this Agreement, throughout the term of this Agreement, or in lieu of this insurance coverage, the Consultant shall require its designated General Contractor to maintain such insurance as set forth in Exhibit "Gee and name the Consultant, AHS and the Redevelopment Agency of the City of San Bernardino ("Agency") as Additional Insureds under such insurance. The Consultant shall remain liable to AHS pursuant to Section 6 above to the extent the Consultant is not covered by applicable insurance for all losses and damages incurred by AHS that are caused directly or indirectly through the actions or inactions, willful misconduct or negligence of the Consultant in the performance of the duties incurred by the Consultant pursuant to this Agreement. AHS shall maintain insurance against loss or damage to real property under an "all risk" or "special form" property insurance policy, which shall include coverage against all risks of direct physical loss, including loss by fire, lightning, terrorism, ordinance or law, and other risks normally included in the standard ISO special form (which shall include flood insurance if the property is located within a flood hazard area and which shall include earthquake insurance if the property is located in an area where earthquake insurance is customarily maintained for similar residential property). Such insurance shall be in amounts sufficient to prevent the Consultant from becoming a co-insurer under the policy, and in any event, after application of deductible, in amounts not less than 100%of the full insurable replacement cost. 8. Press Releases. Press or news releases, including photographs or public announcements, or confirmation of the same related to the work to be performed by the Consultant under this Agreement shall only be made by the Consultant with the prior written consent of AHS, which consent shall not be unreasonably withheld. This Section 8 does not apply to the advertising or other promotional materials used by the Consultant to sell the Rehabilitated Home. 9. Default and Remedies. A. The occurrence of any of the events listed in Exhibit "J", Section A.(1) through (7), shall after the giving of any written notice described therein, constitutes a default by the Consultant hereunder("Event of Default"). B. Upon the occurrence of an Event of Default, AHS may, in its sole discretion, take any of the actions listed in Exhibit"J", Section B.(1)through(7). -4- P41gMes4l a Atuchmem,4en"Aftnm ,WI0mIS 30IM3-15-10 MCAACO Iop tAgee Fiwl.Eac C. Any failure or delay by a party in asserting any of its rights or remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a default. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties under this Agreement are cumulative and the exercise by any party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. D. The Consultant has the right to implement the remedies in Exhibit "J", Section C.(1) and (2), upon the default or failure of AHS to meet any of its obligations under this Agreement without curing such failure within thirty (30) calendar days after receipt of written notice of such failure from the Consultant specifying the nature of the event or deficiency giving rise to the default and the action required to cure such deficiency. 10. Termination. A. This Agreement may be terminated by either party for any reason by giving the other party fifteen (15) calendar days' prior written notice. AHS shall pay the Consultant for all work authorized by AHS and completed,prior to the effective termination date. B. In the event of a termination of this Agreement, the Consultant shall provide all documents, notes, maps, reports, data or other work product developed in performance of the Scope of Services of this Agreement to AHS within ten(10)calendar days after such termination and without additional charge to AHS. C. In the event of the expiration or early termination of this Agreement for any reason, AHS shall pay and/or reimburse the Consultant for all services, materials and supplies as may have been famished to AHS prior to the date of the termination of this Agreement. 11. Notice. All notices given hereunder shall be in writing. Notices shall be presented in person or by certified or registered United States Mail, return receipt requested, postage prepaid or by overnight delivery by a nationally recognized delivery service to the addresses set forth below. Notice presented by United States Mail shall be deemed effective on the third (3rd) business day following the deposit of such Notice with the United States Postal Service. This Section 11 shall not prevent the parties hereto from giving notice by personal service or telephonically verified fax transmission, which shall be deemed effective upon actual receipt of such personal service or telephonic verification. Either party may change their address for receipt of written notice by notifying the other party in writing of a new address for delivering notice to such party. CONSULTANT: Inland Empire Concerned African American Churches Attention: President 1777 West Baseline Road San Bernardino, CA 92411 -5- RWgeMU�Sg Avechmem�AgeM+MUnmmte\ W9 9-Me 201=3-15-Io MCMC➢eveIMp Age M=-Fire.A AHS: Affordable Housing Solutions of San Bernardino, Inc. Attention: Carey K. Jenkins, Chief Operating Officer 201 North"E" Street, Suite 301 San Bernardino, California 92401 Phone: (909)663-1044 Fax: (909) 888-9413 12. Compliance with Law. The Consultant shall comply with all local, state and federal laws, including, but not limited to, environmental acts, rules and regulations applicable to the work to be performed by the Consultant under this Agreement. The Consultant shall maintain all necessary licenses and registrations for the lawful performance of the work required of the Consultant under this Agreement. 13. Nondiscrimination. The Consultant shall not discriminate against any person on the basis of race, color, creed, religion, natural origin, ancestry, sex, marital status or physical handicap in the performance of the Scope of Services of this Agreement. Without limitation, the Consultant hereby certifies that it will not discriminate against any employee or applicant for employment because of race, color, religion, sex, marital status or national origin. Further, the Consultant shall promote affirmative action in its hiring practices and employee policies for minorities and other designated classes in accordance with federal, state and local laws. Such action shall include, but not be limited to,the following: recruitment and recruitment advertising, employment, upgrading and promotion. In addition, the Consultant shall not exclude from participation under this Agreement any employee or applicant for employment on the basis of age,handicap or religion in compliance with state and federal laws. 14. Consultant and each Subcontractor are Independent Contractors. The Consultant shall at all times during the performance of any work described in the Scope of Services be deemed to be an independent contractor. Neither the Consultant nor any of its subcontractors shall at any time or in any manner represent that it or any of its employees are employees of AHS or any department, commission or subsidiary entity of AHS. AHS shall not be requested or ordered to assume any liability or expense for the direct payment of any salary, wage or benefit to any person employed by the Consultant or its subcontractors and vendors to perform any item of work described in the Scope of Services. The Consultant is entirely responsible for the immediate payment of all subcontractor liens. 15. Severability. Each and every section of this Agreement shall be construed as a separate and independent covenant and agreement. If any term or provision of this Agreement or the application thereof to certain circumstances shall be declared invalid or unenforceable, the remainder of this Agreement, or the application of such tern or provision to circumstances other than those to which it is declared invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. -6- f'. s'[M�sUgeM�Attecl�memaUgeMa Atta<M1mmuU®miv-Amend 3olwAl-IS-IO�CMC➢evebpmeN/.®amen-Fivd.da 16. Entire Agreement. This Agreement constitutes the entire agreement between the parties. This Agreement supersedes all prior negotiation, discussions and agreements between the parties concerning the subject matters covered herein. The parties intend this Agreement to be the final expression of their agreement with respect to the subjects covered herein and a complete and exclusive statement of such tetras. 17. Amendment or Modification. This Agreement may only be modified or amended by written instrument duly approved and executed by each of the parties hereto. Any such modification or amendment shall be valid, binding and legally enforceable only if in written form and executed by each of the parties hereto, following all necessary approvals and authorizations for such execution. Any such amendment or modification to be effective as to AHS must be approved by its officers or designated representatives. 18. Governing Law. This Agreement shall be governed by the laws of the State of California. Any legal action arising from or related to this Agreement shall be brought in the Superior Court of the State of California in and for the County of San Bernardino. 19. Non-Waiver. Failure of either party to enforce any provision of this Agreement shall not constitute a waiver of the right to compel enforcement of the same provision or any remaining provisions of this Agreement. 20. Assignment. This Agreement shall be assignable by the Consultant only if the Consultant obtains the prior express written consent of AHS, which consent may be withheld by AHS in its sole discretion. Notwithstanding anything to the contrary in this Agreement, no purported assignment of this Agreement shall be effective if such assignment would violate the terms, conditions and restrictions of any applicable governmental restrictions. AHS' consent to such assignment shall be expressly conditioned upon (i) the assignee's execution of such documents as required by AHS in its sole discretion, including, without limitation, any and all documents deemed necessary by AHS to provide for said assignee's assumption of all of the obligations of the Consultant hereunder and under any documents executed by the Consultant in connection herewith, and (ii) AHS' approval of the financial and credit-worthiness of such proposed assignee and the assignee's ability to perform all of the Consultant's obligations under this Agreement and all documents executed in connection herewith, as may be determined by AHS at its sole discretion. 21. Representations of Persons Executing the Agreement. The persons executing this Agreement warrant that they are duly authorized to execute this Agreement on behalf of and bind the parties each purports to represent. 22. Execution in Counterparts. This Agreement may be executed in one (1) or more counterparts, each of which will constitute an original. 23. Effectiveness of the Agreement as to AHS. This Agreement shall not be binding on AHS until signed by an authorized representative of the Consultant, and approved and executed by the Chief Executive Officer of AHS or his designee. The Agency shall provide -7- PiAgenlaaUgeMaAnuM1menlaF Agerde AttecM1mems\A�Ameod 20103-1S10=C CO elopmem Agreement,Finaldm the Consultant with written notice of the approval of this Agreement upon Community Development Commission of the City of San Bernardino ("Commission")action. 24. Conflicts of Interest. The Consultant hereby represents that it has no interests adverse to AHS or the Agency, at the time of execution of this Agreement. The Consultant hereby agrees that, during the term of this Agreement, the Consultant shall not enter into any agreement or acquire any interests detrimental or adverse to AHS or the Agency. Additionally, the Consultant hereby represents and warrants to AHS and the Agency that the Consultant and any partnerships, individual persons or any other party or parties comprising the Consultant, together with each subcontractor who may hereafter be designated to perform services pursuant to this Agreement, do not have and, during the term of this Agreement, shall not acquire any property ownership interest, business interests, professional employment relationships, contractual relationships of any nature or any other financial arrangements relating to AHS or the Agency, property over which AHS or the Agency have jurisdiction or any members or staff of AHS or the Agency that have not been previously disclosed in writing to AHS, and that any such property ownership interests, business interests, professional employment relationships, contractual relationships of any nature or any other financial arrangements will not adversely affect the ability of the Consultant to perform the services to AHS as set forth in this Agreement. AHS acknowledges and agrees that the foregoing shall not prohibit the Consultant or any affiliates thereof from managing or applying for funds granted by HUD pursuant to the NSP and allocated or awarded to jurisdictions outside of the City of San Bernardino, California, or from receiving a direct grant of funds from HUD pursuant to the NSP. 25. Non-Exclusivity. This Agreement shall not create an exclusive relationship between AHS and the Consultant for the services set forth in Exhibit "E" or any similar or related services. AHS may, during the term of this Agreement, contract with other consultants for the performance of the same, similar or related services as those that may be performed by the Consultant under this Agreement. AHS reserves the discretion and the right to determine the amount of services to be performed by the Consultant for AHS under this Agreement, including, not requesting any services at all. This Agreement sets forth the terms upon which any such services will be provided to AHS by the Consultant, if such services are requested by AHS, as set forth in this Agreement. 26. Consequential Damages and Limitation of Liability. AHS and the Consultant agree that except as otherwise provided in this Section 26, in no event will either be liable to the other under this Agreement for any damages including, but not limited to, special damages, loss of revenue, loss of profit, operating costs or business interruption losses, regardless of cause, including, breach of contract, negligence, strict liability or otherwise. The limitations and exclusions of liability set forth in this Section 26 shall apply regardless of fault, breach of contract, tort, strict liability or otherwise of the Consultant and AHS, their employees or subconsultants. 27. Business Registration Certificate. The Consultant warrants that it possesses, or shall obtain immediately after the execution and delivery of this Agreement, and maintain during the period of time that this Agreement is in effect, a business registration certificate pursuant to -g- P\Apndv\Age m At1aclmews\&Mda AttacNnmtsU� M30IM3-15-10 MCAAC DerciWO Ageenem-Fw,A IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date indicated next to the authorized signatures of the officers of each of them as appear below. AHS Affordable Housing Solutions of San Bernardino, Inc. a California 501(c)(3)public benefit corporation Dated: By: Emil A. Marzullo, Chief Executive Officer Approved as to Form: By: Timothy J. gab Agency Counsel CONSULTANT Inland Empire Concerned African American Churches a California 501(c)(3)public benefit corporation Dated: By: Name: Title: -10- MAgendesUgeM AsuchmemsUgm &AnacgmmtsVgmm A=e 201M3-15-10]E CDe pn Agm=m -Fml.doc Exhibit"A" Legal Description -11 - PNgmMU Vnda Auacbmems\Agrde At ooudsM®rmsAmeod 201OW3-15-10 MCAACD elopmenl Agreement-Fin,d doe ordw Numbe .. RRI-3420554 Page Number: 6 - LEGAL DESCRIPTION Real property In the City of San Bernardino,County of San Bernardino,State of California, described as follows: LOT 42,TRACT NO. 3538,IN THE CITY OF SAN BERNARDINO,COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,AS PER PLAT RECORDED IN BOOK 46 OF MAPS PAGE 56, RECORDS OF SAID COUNTY. APN: 0143-133-42 fUstAmerican Title Exhibit "B" Total Development Cost Pro Forma -12- Agm&sNgeMeAt mmtslAgemla AffwhmemsVg tsAmmtl 2 010103-1 5-10IWC C Dmelopmem Ageemmt-Fiml.da EXHIBIT B TO DEVELOPMENT AGREEMENT TOTAL DEVELOPMENT COST PRO FORMA Acguisiton Costs List Price 44,500 Appraisal value before rehab Discount 445 Amount of discount allowed by the seller Purchase Price 44,055 Difference between List Price and Discount Closing Costs 531 Escrow and Title Fees, etc. Subtotal Acautsition Costs 44,586 Rehabilitation Costs Direct Rehabilitation 54,460 Cost estimated to complete scope of work Contingency 5,446 Property Management Fee 1 ' '143;592,.. Intermediary fixed fee for managing property Subtotal Rehabilitation Costs 2. 73,498 Indirect Costs Property Taxes 175 Property taxes incurred during holding period Homebuyer Qualifying Fee 3 %4800: Intermediary fixed fee per homebuyer General Contractor Fee101acy Co. 4 Intermediary Fee: fixed% of Dir. Rehab.+Contingency Sales Commission 5. s. :'="A)RD: Intermediary Fee: %of EDA Final Price Sales Closing Costs 2,500 Escrow, title fees,taxes etc. at sale closing. Insurance Subtotal Indirect Costs 6. 16,543 Financing Costs Construction Loan Interest 7 P r -,;+,A Interest paid on construction/rehab loan Loan Origination Fee 8. i?w`K <^•r0 Fee for construction/rehab loan Subtotal Financing Costs 9. - TOTAL DEVELOPMENT COST 10 734,627 Sales Price Estimatd Rehabilitated Market Sales Price 75,000 Estimated value of home after rehabilitation Total Development Cost 11. 134,627 Total cost calculated above (No. 10) EDA FINAL SALES PRICE 12 EHEIThe lower of market sales price or tot. dev. cost Intermediary Proceeds Property Management Fee 13. 13,592 From No. 1 above General Contractor Fee/O.H. 14. 8,568 From No. 3 above Homebuyer Qualifying Fee 15. 800 From No.4 above Sales Commission Fee 16. 4,500 From No. 5 above Reimbursement Const. Loan Int. 17. - From No.7 above Reimbursement Loan Orign. Fee 180 - From No. 8 above TOTAL INTERMEDIARY PROCEEDS 19 27,460 Total of 13 through 18 above Exhibit "C" Rehabilitation Scope of Work -13- P4geM geMa AnuM1mems4lgeMa AtucM1mmis\Agmt sMeod 301=3-15-10 MCAAC Deve10Pm Agmo.d-Fin6,. EXHIBIT "C' TO DEVELOPMENT AGREEMENT REHABILITATION SCOPE OF WORK CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY HOUSING AND COMMUNITY DEVELOPMENT DEPARTMENT COST ESTIMATE WORKSHEET Date: January 27, 2010 Time: Location: 1519 W. Virginia Street, San Bernardino, CA 92411 Job Duration: Estimator: 1 TEMPORARY FACILTIES 2 Remove Chain Line Fence 1 EA 180.00 3 EA 4 Other 5 SITE WORK 6 Final Cleaning 150.00 7 Exterior Demolition 8 Grading SF 9 Excavation SF 10 Remove damaged flat concrete in rear yard 1 EA 1,500.00 11 Approach: Remove and Install New SF 12 Sidewalk: Remove and Install New SF 13 Hazardous Waste Remidiation 14 15 New Wrought Iron Fence LF 16 New Chain Link Fence LF 17 New Wood Fence 210 EA 3,150.00 18 Remove/Install Block Wall LF 19 LANDSCAPING 20 Remove and/or Trim Trees 1 EA 700.00 21 Install Sprinkler System 1 EA 1,500.00 22 Hydro Seed Yard } SF 23 Level Front Yard 1 EA 100.00 24 INTERIOR DEMOLITION 25 Repair all damaged and removed Interior 1 EA 1,200.00 Plaster and Drywall 26 Removal of other items 27 HAZARDOUS COMPONENTS ABATEMENT 28 Lead 29 Asbestos 30 Mold 31 Other 32 33 FOUNDATIONS 34 35 Replace soffit, gable and crawlspace screens 1 ALL All line items will be performed according to City of San Bernardino Economic Development Stabilization Program Building Standards 36 Replace and Install New Access Door EA 100.00 37 Construct New Access Well with Door EA 100.00 38 Footings SF 39 Concrete SF 40 FRAMINGIWOOD 41 Studs LF 42 Other LF 43 EXTERIOR 44 Sandblast t 1 SY 3,600.00 45 Colorcoat, repair all cracks, holes and J 1 46 damage areas SY 47 Wrap and Stucco SY 48 Insulation SF 49 EXTERIOR WINDOWS 50 Replace all windows with low-e 6 EA 2,040.00 51 Missing Putty EA 52 Install new screens EA 53 Replace broken glass panes EA 54 Remove and Install new aluminum EA 55 Block frame single hung or sliders 56 Replace front security door 1 EA 150.00 57 window EA 58 Aluminum -slider 4'x3' standard frame EA 59 Aluminum -slider 4'x3' block frame EA 60 Aluminum -slider hung 3'x4'standard EA 61 Aluminum -slider hung 3'x4' block EA 62 Aluminum -slider 5'x4' standard frame EA 63 Aluminum -slider 5'x4' block frame EA 64 Aluminum -single hung 3'x5' standard frame EA 65 Aluminum -single hung 3'x5' block EA 66 Aluminum -slider 3'x2' standard EA 67 Aluminum -slider 3'x2' block EA 68 Install vertical blinds on dining, LR & bedrooms 4 EA 300.00 69 EXTERIOR DOORS 70 Garage: Remove and Install ALL 650.00 71 Garage side door,jamg, casing & lockset 1 EA 325.00 72 Entry Door EA 325.00 Replace front door casing 1 EA 73 Replace mail boxt door 1 EA 74 ROOFING 75 Si. Complete tear off roof and sheathing 1 76 Installation of aluminized sheathe 1 77 Install compostion roof to code-30 Yr. 1 5,150.00 78 Replace all facia with new six inch fascia 1 450.00 79 Remove all Install gutter and 80 downspouts LF 180.00 81 INTERIOR CONSTRUCTION All line items will be performed according to City of San Bernardino Economic Development Stabilization Program Building Standards 82 Install R-30 Insulation in attic 1 EA 1,500.00 83 Drywall SF 84 Hollow-core interior door withhinges and 3 EA 465.00 Installation in an existing jamb. Hardboard wood-textured and embossed 85 Repair bedroom closet doors 1 EA 150.00 86 Shower doors EA 87 Tub Enclosure EA 88 Laundry door EA 89 Other EA 90 FLOORING 91 Carpet Allowance 1 SY 1,200.00 92 Ceramic Tile SF 93 Linoleum 1 SY 600.00 94 Hardwood SF 95 Other 96 PAINTING 97 Prep and paint interior complete two coats 1 EA 1,250.00 98 Stains(kitchen, bath and other cabinets) SF 99 Repair all damaged SF 100 Paint exterior wood 1 EA 850.00 101 CARPENTRY, CABINETS AND MILLWORK 102 Remove and Install new cabinets 1 2,850.00 103 Install and Replace Formica Countertops 1 EA 650.00 104 Repair framing and plaster as necessary 1 EA 150.00 Repair hall closet doors&cabinets 1 EA 200.00 105 PLUMBING 106 Bathtub&Shower surround 1 EA 480.00 107 Lavatory 1 EA 250.00 108 Kitchen Sink 1 EA 160.00 109 Garbage Disposal 1 EA 80.00 110 Laundry Sink EA 50.00 111 Faucets kitchen, bath &shower 3 EA 350.00 112 Bathtubs EA 113 Tub Wall Kits EA 114 Shower EA 115 Water Heater 1 EA 400.00 116 Roto Root(clean)all drain lines to street ALL 150.00 117 Remove and Install new EA 150.00 118 Anti-syphon hose bibbs Replace cleanout cover at kitchen exterior 1 EA 50.00 Repair water leak at rear hose bib 1 EA 100.00 119 Interior water supply ball valve with 1 EA 150.00 pressure valve 120 HVAC 121 Install new system lincluding ducts& 1 EA 5,900.00 thermostat 122 Repair duct work LF All line items will be performed according to City of San Bernardino Economic Development Stabilization Program Building Standards 123 Repair HVAC Unit EA 124 Replace HVAC Unit EA 125 Remove wall heater 1 50.00 126 Other 127 ELECTRICAL 128 Remove and Install new light fixture 7 EA 3,700.00 129 Remove and Install new GFCI outlets EA 130 Remove and Install circuittoutlet EA 131 Install new GFCI outlet 3 EA 132 Remove and Install new circuit breaker EA 133 Remove and Install new wiring LF (included with Item#45) 134 Cover Plates EA 50.00 135 Smoke detectors EA 375.00 136 Other 137 138 MISCELLANEOUS 139 Install new medicine cabinet, mirror, towel 1 EA 100.00 140 & paper holders 141 Hood vent&fan, stove, dish washer, garbage 1,500.00 142 disposal and (ironing board cabinet-included in Item#49) 143 (allowance) 1 EA 162 Supervision 3,200.00 163 164 165 166 SUBTOTAL $48,960.00 Insurance Burden (General Liability&Workers Compenssation 2.5%) OVERHEAD &PROFIT (15%) $8,568.50 GRAND TOTAL GENERAL CONTRACTOR'S BASE BID $57,528.50 APPROVED OPTIONS 1 Remove Existing tile and Install Slate at Front Porch 650.00 2 Install Rear Yard Sprinklers 1,000.00 3 Repipe with Copper Plumbing 3,600.00 4 Replace Interior Base Moulding 250.00 OPTIONS TOTAL $5,500.00 All line items will be performed according to City of San Bernardino Economic Development Stabilization Program Building Standards Exhibit"Df5 Project Timeline - l4 PUgeMU\Agen&AVech ms\AWmaAttMm,:ntaUgmirAmmtl MIM-15-10 MCMC 1; ebp=M Agrecmrnt-Final doc 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 C C W O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N N N m N N N N th m M N th a V V � N C C C •m W f0 H LU W m W C W Ix q CD a o H W Z m W J d U O a > ~ d X W LU a m w D 'O o O F ix E a w d _ n 0 0 LU E o m E N > °= i cc o ,- ° m o E W o U R Q ° ° a° ` > s wo m o N .0 U) p` Q 2 d W Q v c d a c E d d d E O w v m Q E 6 m m ul 0 o c > > w m ` c E v O o °' m a o m m ` `o d E E ;o 0 ° 3 2 y y U c m ? m d W W N 3 a p a c d ° ,0 aNi m a a>i aLi "9 o `o N 0 m w o d 0 0 CO QfI m a v v o U a` � ol ELI p Z Y N A f Exhibit "E" Scope of Services 1. Secure Property—Ensure that adequate locked fencing is installed on the perimeter of the site when necessary. Board up windows and outer doorways when necessary in order to prevent looting and vandalism of the Rehabilitated Home. 2. Property Management— Maintain utilities service, pay for monthly utilities bill(s) during the holding period (the Consultant will be reimbursed for this cost), interior and exterior appearance and marketability of the Rehabilitated Home as needed. 3. Approved Budget — The approved budget includes the estimate of the costs the Consultant expects to incur in order to complete the Scope of Work defined herein, provided in Exhibit "B" (the "Total Development Cost Pro Forma"). This budget estimate includes all costs associated with the rehabilitation of the Rehabilitated Home, including labor and materials for rehabilitation work, contingency, the Project Management Fee, the General Contractor Fee/Overhead, the Sales Commission Fee and the Homebuyer Qualifying Fee, includes the cost of enrolling the prospective buyer of the Rehabilitated Home deemed qualified by the Consultant under the conditions in this Agreement (the "Qualified Homebuyer") in a homebuyer education course administered by an AHS approved third party vendor or organization. i 4. Project Timeline — The approved estimated timeline provided in Exhibit "D" sets forth the completion of the various steps involved in the acquisition, rehabilitation and resale of the Rehabilitated Home (the "Project Timeline"). The timeline starts from the point that the selected Consultant enters into the contract for the Rehabilitated Home with AHS through the close of sale to the Qualified Homebuyer. Major steps included in the timeline are construction period, completion of construction, issuance of the Certificate of Completion, start of marketing period for the home, projected number of weeks needed to identify a Qualified Homebuyer, escrow period and close of escrow. S. Rehabilitation Scope of Work—The approved detailed, line item budget of the costs required to complete the rehabilitation scope of work agreed upon by AHS and the Consultant, provided in Exhibit "C" (the "Rehabilitation Scope of Work") serves as the Consultant's price bid for the Rehabilitation Scope of Work. 6. Manage Rehabilitation Work — Manage the rehabilitation of the Rehabilitated Home to include,but not be limited to: (i)ensuring that all tasks identified in the Rehabilitation Scope -15- PUgerAeeUgmEeAvacM1mmUUgandaMuM1mmUUgmtaAmeetl30IM345-10MCMC Development Ag nnarn-Final.doc of Work are completed on a timely basis and all work performed satisfies AHS' standards; (ii) conducting weekly on-site project inspections; (iii) managing relationships with all subcontractors and vendors; (iv) obtaining all necessary permits required to complete the Rehabilitation Scope of Work; (v) ensuring that all rehabilitation work complies with all applicable municipal codes; (vi) submitting funds draw requests to AHS in a timely and accurate manner; (vii) paying all sub-contractors hired by the Consultant and all vendors providing materials used in the performance of the Rehabilitation Scope of Work on a timely and accurate basis; and(viii) administering both conditional and unconditional lien releases. 7. Marketing— Market the Rehabilitated Home through advertising and published promotional materials. Adhere to AHS' Affirmative Marketing Guidelines (Please see Exhibit"Ic). 8. Identify Qualified Homebuyer- Identify and present prospective homebuyers to be approved by AHS in writing, facilitate adequate homebuyer training and facilitate financing of property which may include Down Payment Assistance from the Agency, pre-qualify the homebuyer for eligibility to purchase the Rehabilitated Home and collect those application documents from the Qualified Homebuyer identified in Exhibit"I", Section"A". In addition, the Consultant is required to make best efforts to ensure that a fixed rate permanent loan secured by a first trust deed ("First Mortgage Loan") is made available to the Qualified Homebuyer at the lowest commercially available rate and most favorable terms. 9. Escrow—Work with the AHS selected title company and manage the escrow process through closing on behalf of the Qualified Homebuyer, ensure that all AHS sale documents are executed, notarized and recorded as needed. 10. Files — Maintain adequate files for the Rehabilitated Home, ensuring compliance with all Neighborhood Stabilization Program requirements, files shall include, but not be limited to, all documents listed in Exhibit"I", and all documents required to verify compliance with the Affirmative Marketing Guidelines stated in Exhibit "IC', such as homebuyer waiting lists, copies of advertisements published in local and community newspapers,etc. 11. Appraisal — Work with the AHS designated Appraiser to determine the sales price for the Rehabilitated Home. 12. Environmental - Ensure that all environmental mitigation measures recommended by AHS' Environmental Consultant are carried out as part of the Rehabilitation Scope of Work. Provide proof of completion of these mitigation measures. -16- P� pMasUgendaAnchmems\Aenda An¢hmmndAmmis-A NIM-15-10� "C Dmelopmem Ag menl-Final dw 13. Closing Requirements: A. The Consultant shall cause the closing of the sale of the Rehabilitated Home by following the procedures and complying with the requirements set forth in Exhibit "P", Section A. B. The Consultant shall cause the closing of any Agency Down Payment Assistance Loans, if applicable, in accordance with the procedures and requirements established in Exhibit"P', Section B. 14. Building Standards: The Consultant shall adhere to the building standards stipulated in Exhibit "L" when performing any rehabilitation work on the Rehabilitated Home. _17_ P Uge ae\Agent AnwhmentMpe &An mems\Ag tlr W30IM3-1S10N MC DumbpmaH Agr M-FW.d Exhibit"F" AHS Representatives AHS Officers: Emil A. Marzullo, Chief Executive Officer Carey K. Jenkins, Chief Operating Officer Authorized AHS Representatives: Samuel Hughes, Consultant Fernando S. Portillo, Consultant -18- PrApndaMn Alas .\Agende Amehmmts\Agrmte-Amend MIPA3-15-101ECAMO elopment Agreement-Final da EXHIBIT "G" Insurance Requirements The Consultant and its General Contractor shall maintain insurance policies issued by an insurance company or companies authorized to do business in the State of California and that maintain during the term of the policy a "General Policyholders Rating" of at least A(v), as set forth in the then most current edition of"Bests Insurance Guide," as follows: (1) Automobile Insurance. Comprehensive automobile liability insurance of not less than One Million Dollars ($1,000,000) combined single limit per occurrence for each vehicle leased or owned by the Consultant or its subcontractors and used in performing work under this Agreement. (2) Worker's Compensation Insurance. Worker's compensation coverage in accordance with California workers' compensation laws for all workers under the Consultant's and/or subcontractor's employment performing work under this Agreement. (3) Liability Insurance. AHS requires comprehensive liability insurance, including coverage for personal injury, death,property damage and contractual liability, with a limit of at least One Million Dollars ($1,000,000), including products and completed operations coverage. Said insurance shall be primary insurance with respect to AHS and the Agency. The Consultant shall require and ensure that the Consultant's contractors include AHS and the Agency, as additional insureds on all general liability insurance covering work at the Rehabilitated Home. All insurance policies required of the Consultant or its contractors as provided herein, shall extend the subject insurance coverage to: "The City of San Bernardino, the Redevelopment Agency of the City of San Bernardino and Affordable Housing Solutions of San Bernardino, Inc., their officers officials,attorneys, agents, employees and volunteers" In lieu of directly obtaining the insurance coverage mentioned in this Exhibit"G", the Consultant can require its General Contractor to name the Consultant as an additional insured on the insurance policies obtained by the General Contractor for the purposes of satisfying the insurance requirements herein. Concurrent with the execution of this Agreement and prior to the commencement of any work by the Consultant, the Consultant shall deliver to AHS, copies of policies or certificates evidencing the existence of the insurance coverage required herein, which coverage shall remain in full force and effect continuously throughout the term of this Agreement. Each policy of insurance that the Consultant purchases in satisfaction of the insurance requirements of this Agreement shall name AHS,the Agency and if applicable, the Consultant as an additional insured and shall provide that the policy may not be .19- PUgendutAgeMeA=hmemMgende Attmhmmts\A mtaMmd 20IM-15-10 MCAACD elopmem Ag mm-Fitml.dm cancelled, terminated or modified, except upon thirty (30) days prior written notice to AHS. Failure on the part of the Consultant to procure or maintain the insurance coverage required in this Exhibit "G" for fifteen (15) days or longer shall constitute a material breach of this Agreement pursuant to which AHS may exercise all rights and remedies set forth herein and, at its sole discretion, and without waiving such default or limiting the rights or remedies of AHS, procure or renew such insurance and pay any and all premiums in connection therewith and all monies so paid by AHS shall be reimbursed by the Consultant to AHS upon demand including interest thereon at the rate of ten percent (10%) per annum interest compounded annually from the date paid by AHS to the date reimbursed by the Consultant. The Agency shall have the right, at its election,to participate in and control any insurance claim adjustment or dispute with the insurance carrier. The Consultant's failure to assert or delay in asserting any claim shall not diminish or impair the rights of AHS against the Consultant or the insurance carrier. 0- PUgedaMgmtlaARtcM1memaNgenEa AnacM1mmtsUgmu-AmeM 201%0)-IS-1 CMCR IopmeM Agramem-Pirel.da Exhibit "H" Consultant Payment and Reimbursement The Consultant shall be paid four (4) different fees by AHS. The four (4) fees that the Consultant is eligible to receive are: 1. Project Management Fee; 2. General Contractor Fee/Overhead; 3. Homebuyer Qualifying Fee; and 4. Sales Commission Fee. The amount of the fees to be paid to the Consultant by AHS for completing the Scope of Services detailed in Exhibit "E" is recorded in the Development Pro Forma attached as Exhibit`B"to this Agreement. The costs contained in the Development Pro Forma serve as the budget for the project, and the Consultant will be required to complete the work in accordance with that budget. This budget must be approved by AHS Representative(s) prior to the start of any rehabilitation work by the Consultant. Project Management Fee-The Project Management Fee is the compensation received by the Consultant for securing, maintaining and marketing the property. Some of the tasks that might be included under this function are such things as, fencing the property, mowing the lawn, clearing debris from the lawn, removal of graffiti, etc. The Project Management Fee may also include any marketing costs incurred by the Consultant, such as online or print advertising and website design, as approved by AHS. The Consultant is eligible to receive fifty percent (50%) of this fee upon commencement of the Rehabilitation Scope of Work, to be invoiced by the Consultant in the first funds draw request submitted by the Consultant to AHS. The remaining portion of this fee shall be payable to the Consultant after the rehabilitation work is completed, as evidenced by an AHS issued Certificate of Completion or a City issued Certificate of Occupancy, as applicable. The remaining portion of this fee shall be paid to the Consultant upon the close of the Rehabilitation Home Sales Escrow. General Contractor Fee/Overhead - The General Contractor Fee/Overhead is the total amount paid by AHS for management of the rehabilitation work as defined in Exhibit "E", Section 6. If the Consultant hires a General Contractor, then the Consultant is responsible for negotiating a fee structure with its hired General Contractor, but in no event, will AHS pay an amount above the General Contractor Fee/Overhead stated in this Agreement, nor will AHS pay a separate General Contractor Fee/Overhead to the General Contractor. The amount of this fee is a fixed fee for the rehabilitation work. The costs of the rehabilitation work shall include direct labor and materials involved in the performance of the Rehabilitation Scope of Work plus the budgeted contingency for this work. A portion of this fee commensurate with the percentage of completion of the Rehabilitation Scope of Work shall be paid with each funds draw request submitted by -21- P:UVnd"\1ge aAtl mm Mpg &Mte mems\A m eM 20IM-15-10� CDevelopment Ag ment-Fir ,da the Consultant. Any additional costs arising from unexpected conditions on the site or other unexpected difficulties must be written up as a change order and AHS Representative(s) must sign and approve the change order at the discretion of the AHS Representative(s) in order for these costs to be included as part of the overall rehabilitation costs, which would then increase the absolute amount of the General Contractor Fee/Overhead. Homebuyer Qualifying Fee — This fee is paid to the Consultant for identifying and assisting AHS in qualifying the prospective homebuyer for the sale of the Rehabilitated Home. This is a one-time fixed fee. This fee will include the Consultant's reimbursement for any costs associated with the prospective homebuyer's "Homebuyer Education Training" and payments to third party service providers, such as Neighborhood Housing Services of the Inland Empire ("NHSIE"), or another such service provider. The Homebuyer Qualifying Fee shall be paid upon the close of the Rehabilitated Home Sales Escrow. Sales Commission Fee — The sales Commission Fee represents the payment received by the Consultant for managing the Rehabilitated Home Sale Escrow process on behalf of AHS to assist the Qualified Homebuyer through the Rehabilitated Home Sales Escrow process. The amount of this fee is calculated as a fixed percentage of the final sales price to the Qualified Homebuyer. The Sales Commission Fee shall be paid upon the close of the Rehabilitated Home Sales Escrow. -Z2_ PUgas\A,W&AffwM1 emsVAgenEa Atwhments UgmtrAmee030IM3-15-10 MCAACp elupmem Agrmw-Fioa] Exhibit"I" Closing Requirements A. Sale of Rehabilitated Properties The Consultant shall initiate the sale of a Rehabilitated Property to a Qualified Homebuyer by submitting to the Agency a purchase/sale agreement executed by the prospective homebuyer, verifying documentation from the prospective buyer with respect to residency, income and the property condition as the Agency, or its designee, may reasonably request (collectively, "Homebuyer Application"). [NOTE: NSP regulations limit the income on NSP funded properties. The Agency should be involved in the negotiation of sales documents of the properties.] The Homebuyer Application shall consist of the following information in the form provided or approved by the Agency: i. Last Three (3) Years Tax Returns (State and Federal) (1040's) signed with W2's attached. Two (2) Current Pay Stubs for all household members who will reside in the home. ii. A California Association of Realtors California Residential Purchase Agreement fully executed by the prospective homebuyer (With Agency Addendum(s)attached). iii. Neighborhood Stabilization Program Homebuyer Application. iv. Income Certification. V. Application Affidavit—Completely filled out and signed by the prospective homebuyer. vi. Signed Lead-Base Paint Disclosure Form (for homes built prior to 1978). The Agency does not supply this form. vii. Copy of Employment Verification for each Homebuyer. viii. 2 Months of Current Bank Statements. ix. 3-Year Rental History. X. Homebuyer Education Certificate from NHSIE or another like service provider. Within seven (7) calendar days after the receipt of the Homebuyer Application by the Agency, Agency Staff will notify the Consultant of approval or denial of the prospective homebuyer's eligibility and confirmation of such eligibility by means of a Reservation -23- 201M-1S10 Agrt .-Finel.doc Letter (all reservations will be automatically valid for sixty (60) calendar days from the date of confirmation) [NOTE: The Agency should execute the sales agreement]. Upon notification by Agency Staff of the prospective homebuyer's eligibility, the Consultant shall open an Escrow account with an Agency approved escrow company (the "Escrow Holder"). The Agency shall furnish the Escrow Holder with executed escrow instructions. The Consultant shall not permit any Escrow to close for the sale of a Rehabilitated Property until and unless the escrows instructions executed by the Agency (and countersigned, if requested by Agency Staff, by the First Trust Deed Lender) have been submitted to the Escrow Holder. As provided in the Agency escrow instructions, Escrow shall also not close unless and until: 1. The Escrow Holder holds the following documents : (1)Agency Notice of Affordability Restrictions executed by the Qualified Homebuyer and notarized; and (2) a grant deed with respect to the Rehabilitated Property purchased by the Qualified Homebuyer, executed and acknowledged by the selling entity; and 2. Proof of hazardous insurance for the full replacement cost of the Rehabilitated Property is provided to the Agency naming the Agency as additionally insured; and i 3. Rehabilitation of the Rehabilitated Property shall have been completed in accordance with this Agreement and with all applicable City permits and ordinances, and the City shall have issued a final certificate of occupancy for the Rehabilitated Property; and 4. The Consultant's execution and delivery to the Agency of the Sub- agreement. No Event of Default shall exist under this Agreement or under any agreement or instrument relating to any financing for the Project or the Rehabilitated Property. Within seven (7) calendar days after the receipt of the Homebuyer Application by AHS, the AHS Representative(s) will notify the Consultant of approval or denial of the prospective homebuyer's eligibility and confirmation of such eligibility by means of a Reservation Letter (all reservations will be automatically valid for sixty (60) calendar days from the date of confirmation) [NOTE: AHS should execute the sales agreement]. Upon notification by the AHS Representative(s) of the prospective homebuyer's eligibility, the Consultant shall open the Rehabilitation Home Sales Escrow account with an AHS approved escrow company (the "Escrow Holder"). AHS shall famish the Escrow Holder with executed escrow instructions. The Consultant shall not permit the Rehabilitation Home Sales Escrow to close until and unless the escrow instructions executed by AHS (and countersigned, if requested by AHS Representative(s),by the First Trust Deed Lender)have been submitted to the Escrow Holder. As provided in the AHS escrow instructions,Escrow shall also not close unless and until: -24- P1Ag<v4ulAge AnuLmwMUg"&Anachm kAgmlFA 301"3-15-10 MCAAC DweJO .Ag .W-FM 4l 1. The Escrow Holder holds the following documents : (1)Agency Notice of Affordability executed by the Qualified Homebuyer; and (2) a grant deed with respect to the Rehabilitated Home, executed and acknowledged by the selling entity(the"AHS Grant Deed"); and 2. Proof of hazardous insurance for the full replacement cost of the Rehabilitated Home is provided to AHS naming AHS and the Agency as additionally insured; and 3. The Rehabilitation Scope of Work shall have been completed in accordance with this Agreement and with all applicable City permits and ordinances, and AHS shall have issued a Certificate of Completion or the City shall have issued a Certificate of Occupancy for the Rehabilitated Home, as applicable; and No Event of Default shall exist under this Agreement or under any agreement or instrument relating to any financing for the Rehabilitated Home. B. Down Payment Assistance In the case where the Qualified Homebuyer needs down payment assistance to facilitate the purchase of the Rehabilitated Home, the Consultant shall assist the Qualified Homebuyer in applying for such assistance from the Redevelopment Agency of the City of San Bernardino's ("Agency") Homebuyer Assistance Program ("HAP"), at the Qualified Homebuyer's election. The requirements and the application process for obtaining such assistance are described fully in the Agency's HAP Program Manual, which can be obtained at the Agency's offices. The process for applying for such assistance is summarized below, but in the event that a conflict exists between the description of the HAP Program contained herein and the HAP Program Manual, the requirements and procedures described in the HAP Program Manual shall prevail. In order to reserve Agency Down Payment Assistance Loan assistance to facilitate the purchase of the Rehabilitated Home, the Consultant must include in the Homebuyer Application described in Section A, herein, the following information in the form provided or approved by AHS and the Agency: i. Verification for Applicant Eligibility, completely filled out and signed by the prospective homebuyer and the First Trust Deed Lender; ii. Copy of Credit Report. If the prospective homebuyer lacks credit history or scores are lower than 640, please provide secondary credit such as a landlord letter or utility statements; and iii. Agency Down Payment Assistance Loan Worksheet. -25- P:Ngcn sWgeaa AOechmeuU� aA[Uh sUgmgrAMe 2010 345.101 COeveb=W Ap t-FireL. The obligation of the Agency to fund each Agency Down Payment Assistance Loan shall be subject to satisfaction of all of the conditions stated in Section A,herein, together with the following conditions (collectively,the"Closing Conditions"): (a) The Escrow Holder holds the following documents: 1) the Qualified Homebuyer Agency Down Payment Assistance Loan Agreement executed by the Qualified Homebuyer and the Agency; (2) the Agency Promissory Note executed by the Qualified Homebuyer in favor of the Agency in the same amount as the Agency Down Payment Assistance Loan; and (3) the Agency Subordinate Deed of Trust and Assignment of Rents acknowledged and executed by the Qualified Homebuyer in favor of the Agency; and (b) Any one of the following title companies whether(i)First American Title, (ii) North American Title, (iii) Chicago Title, (iv) Stewart Title or(v) another title insurer approved by the Agency ("Title Company") shall have assured the Agency in writing that with respect to each Agency Down Payment Assistance Loan, the Agency shall receive upon recordation of the Agency Subordinate Deed of Trust and Assignment of Rents a CLTA lenders policy of title insurance in the amount of the Agency Down Payment Assistance Loan Note (the "Agency Title Policy") insuring the priority of the Agency Subordinate Deed of Trust and Assignment of Rents, subject only to the First Mortgage Loan and other exceptions approved by the Agency following the Agency's prior review of a preliminary title report for the Rehabilitated Home, which preliminary title report must be received by the Agency no later than seven (7) calendar days after the approval by the Agency of the Homebuyer Application; and (d) The Agency shall have reviewed and approved the Qualified Homebuyer for the Agency Down Payment Assistance Loan in the Agency's sole discretion, and the eligibility conditions in the applicable sections of the HAP Manual shall have been satisfied. In accordance with the Neighborhood Stabilization Program, the Rehabilitated Home is not restricted for sale to first-time homebuyets; therefore, these properties are exempt from the requirements in Section II. B. 1. of the HAP Manual; and I (e) No stop notice or mechanics' lien shall have been filed against the Rehabilitated Home unless discharged as provided by law. -26- PUVe sVgeMa AIIach=nlsVVMa Auazhm USV 9-Am 3010A3-15-10IEC CD ebpm tp ww-Fuot EXHIBIT "J" Events of Default and Remedies A. Events of Default The occurrence of any of the following shall, after the giving of any notice described therein, constitute a default by the Consultant hereunder("Event of Default ): (1) The failure of the Consultant to pay or perform any monetary covenant or obligation under the Agreement or any of the documents executed in connection herewith, without curing such failure within ten (10) calendar days after receipt of written notice of such default from AHS (or from any party authorized by AHS to deliver such notice as identified by AHS in writing to the Consultant); (2) The failure of the Consultant to perform any non-monetary covenant or obligation hereunder or any of the documents executed in connection herewith that results in a material adverse effect to AHS, without curing such failure within thirty (30) calendar days after receipt of written notice of such default from AHS (or from any party authorized by AHS to deliver such notice as identified by AHS in writing to the Consultant) specifying the nature of the event or deficiency giving rise to the default and the action required to cure such deficiency; provided, however, that if any default with respect to a non-monetary obligation is such that it cannot be cured within a thirty-day period, it shall be deemed cured if the Consultant commences the cure within said thirty-day period and diligently prosecutes such cure to completion thereafter. Notwithstanding anything herein to the contrary,the herein described notice requirements and cure periods shall not apply to any Event of Default described in Sections (3)through (6)below; (3) The falsity of any representation or breach of any warranty or covenant made by the Consultant under the terms of this Agreement or any documents executed in connection herewith; (4) The Consultant or any constituent member or partner, or majority shareholder, of the Consultant shall (a) apply for or consent to the appointment of a receiver, trustee, liquidator or custodian or the like of its property, (b) fail to pay or admit in writing its inability to pay its debts generally as they become due, (c) make a general assignment for the benefit of creditors, (d) be adjudicated a bankrupt or insolvent or (e) commence a voluntary case under the Federal bankruptcy laws of the United States of America or file a voluntary petition that is not withdrawn within ten (10) calendar days after the filing thereof or an answer seeking an arrangement with creditors or an order for relief or seeking to take advantage of any insolvency law or file an answer admitting the material allegations of a petition filed against it in any bankruptcy or insolvency proceeding; -27- P\A,Wee\Agenda AnechmemaUgeMe AnecA .\Ag m t AmeM 30103-1510 MCAAC Dev<lopmmt Agrcemem-Fi.0&, (5) If without the application, approval or consent of the Consultant, a proceeding shall be instituted in any court of competent jurisdiction, under any law relating to bankruptcy, in respect of the Consultant or any constituent member or partner, or majority shareholder, of the Consultant, for an order for relief or an adjudication in bankruptcy, a composition or arrangement with creditors, a readjustment of debts, the appointment of a trustee, receiver, liquidator or custodian or the like of the Consultant or of all or any substantial part of the Consultant's assets, or other like relief in respect thereof under any bankruptcy or insolvency law, and, if such proceeding is being contested by the Consultant, in good faith, the same shall (a) result in the entry of an order for relief or any such adjudication or appointment, or (b) continue undismissed, or pending and unstayed, for any period of ninety(90)consecutive calendar days; (6) Voluntary cessation of the construction activities, active property management, or marketing activities related to the Rehabilitated Home for a continuous period of more than ten (10) calendar days or the involuntary cessation of the above named activities in accordance with this Agreement for a continuous period of more than thirty(30)calendar days; (7) A mechanic's lien or any other type of encumbrance on AHS' property resulting from the Consultant's failure to fulfill its financial or other contractual obligations with respect to any of its vendors or subcontractors is not removed within ten (10) calendar days after receipt of written notice of such default from AHS (or from any party authorized by AHS to deliver such notice as identified by AHS in writing to the Consultant). B. AHS Remedies: Upon the occurrence of an Event of Default hereunder, AHS may, in its sole discretion,take any one or more of the following actions: (1) Withhold any payment of fees or reimbursement of eligible expenses to the Consultant unless and until the Event of Default (if curable) is cured or this Agreement is terminated in accordance with Section 9 of this Agreement; (2) Demand reimbursement from the Consultant for any payments made to it by AHS for which the contracted work product was not satisfactorily delivered by the Consultant; (3) Confiscate any material or other work product purchased or produced by the Consultant during the course of completing the Scope of Work indicated in this Agreement; (4) Take any and all actions and do any and all things which are allowed, permitted or provided by law, in equity or by statute, in the sole discretion of AHS, to enforce performance and observance of any obligation, agreement or covenant of the Consultant under this Agreement or under any other document executed in _2g_ P:UgeMa ge aArtachm"m Senda Aft chmems\Agem\s-Amend 2010b3-1S10�"CD el pm dAgrtemml-Finl connection herewith; (5) Upon the occurrence of an Event of Default which is occasioned by the Consultant's failure under this Agreement to pay money, AHS may, but shall not be obligated to, make such payment. If such payment is made by AHS, the Consultant shall deposit with AHS, upon written demand therefore, such sum plus interest at the rate of ten percent (10%) per annum with interest to be compounded annually. In either case, the Event of Default with respect to which any such payment has been made by AHS shall not be deemed cured until such repayment (as the case may be) has been made by the Consultant; (6) Upon the occurrence of an Event of Default described in Section A.(4) or A.(5) hereof, AHS shall be entitled and empowered by intervention in such proceedings or otherwise to file and prove a claim for any amount owing to AHS under this Agreement and unpaid and, in the case of commencement of any judicial proceedings, to file such proof of claim and other papers or documents as may be necessary or advisable in the judgment of AHS and its counsel to protect the interests of AHS and to collect and receive any monies or other property in satisfaction of its claim. C. AHS Default and Consultant Remedies: Upon fault or failure of AHS to meet any of its obligations under this Agreement without curing such failure within thirty (30) calendar days after receipt of written notice of such failure from the Consultant specifying the nature of the event or deficiency giving rise to the default and the action required to cure such deficiency, the Consultant may, as its sole and exclusive remedies: (1) Bring an action in equitable relief seeking the specific performance by AHS of the terms and conditions of this Agreement or seeking to enjoin any act by AHS which is prohibited hereunder; and/or (2) Bring an action for declaratory relief seeking judicial determination of the meaning of any provision of this Agreement. Without limiting the generality of the foregoing, the Consultant shall in no event be entitled to, and hereby waives, any right to seek indirect or consequential damages of any kind or nature from the Consultant arising out of or in connection with this Agreement, and in connection with such waiver the Consultant is familiar with and hereby waives the provisions of Section 1542 of the California Civil Code which provides as follows: "A GENERAL { RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR." a 29 P:UgeduWgnda AtlacbmemalAgenda Anachmwb\A9mo-Ameed MIOb1-15-10]CMCD In nnena Are in-Final.dm EXHIBIT "K" Affirmative Marketing Requirements In accordance with the California Fair Employment and Housing Act,the Consultant acting as agent for AHS,the owner and seller of the Rehabilitated Home, in marketing the sale of the Rehabilitated Home, must adhere to the following affirmative marketing guidelines in order to create awareness for the general public and certain community groups as to the availability of residential properties designated for lower- and/or moderate-income households. 1. Provide an affirmative marketing plan and procedures for the sale of the Rehabilitated Home. Procedures to be used must identify how persons in the housing market area who are not likely to apply for the housing without special outreach shall be informed and made aware of available affordable housing opportunities. 2. The Consultant's Affirmative Marketing Plan shall consist of a written marketing strategy designed to provide information and to attract eligible persons in the housing market area to the Rehabilitated Home without regard to race, color, national origin, sex, religion, marital and familial status, disability, medical condition, sexual orientation, or ancestry. It shall describe initial advertising, outreach (community contacts) and other marketing activities, which will inform potential buyers of the availability of the Rehabilitated Home. It shall also outline an outreach program which includes special measures designed to attract those groups identified as least likely to apply without special outreach efforts (because of existing neighborhood racial or ethnic patterns, location of housing or other factors)and other efforts designed to attract persons from the total eligible population. 3. Insert Equal Housing Opportunity logotype, statement or slogan on all written outreach tools (i.e., signs, advertisements, brochures, direct mail solicitations, press releases, etc.) 4. In addition to the above,the Affirmative Fair Housing Marketing Plan shall outline: a. Commercial Media to be used (i.e., community newspapers and non-English language newspapers, radio, television, billboards, religious or local real estate publications, etc.). b. Marketing efforts to be used (i.e., brochures, letters, handouts, direct mail, signs,etc.) c. Community contacts to supplement formal communications media for the purpose of soliciting those groups least likely to purchase the available housing without special outre, 'i efforts. They should be individuals or organizations (i.e., service agencies , ommunity organizations, places of worship, etc.) that -30- P:Apc lAgrn AuCh mMgcnda AaKhmmiMgM-AV. 3010b3-15-10IECAAC@ bpmcnl Agmcmcnb Fiml have direct and frequent contact with those identified as least likely to apply. The contacts should also be chosen on the basis of their positions of influence within the general community and the particular target group. AHS and its designees must agree to establish and maintain contact with the identified contacts. 5. The Consultant shall maintain records of all prospective homebuyer applicants, including their race, ethnicity and gender, reasons for denial of application, placement on a waiting list, etc. 6. The Consultant shall also provide for the selection of applicants from a written waiting list in the chronological order of their application, insofar as is practicable, and provide prompt written notification to any rejected applicants of the grounds for any rejection. 7. The Consultant shall apply for first trust deed financing to be applied towards the purchase of the Rehabilitated Home from a lender listed on the Agency's or AHS' Approved Lender List. z -31- PUgerdess pg NtacM1 msl genda Atte mcm6Ugr Am 301M.15-10�CDc p=M Agsamem-FioLL&c EXHIBIT"L" Building Requirements 32 PWgendasW,Ma A=hmentsW Wa Anatlu MAAVr s-AmeM 3010\03-15-10 MCAACO v C Pm "=a- \ '% 1 KV1'1 % 1'1 0 M ^ ECONOMIC DEVELOPMENT AGENCY Neighborhood Stabilization Program "Minimum Building Standards" June 2009 Table of Contents 1000—General Requirements...................................................................................................................... 1 1010—General............................................................................................................................................ 1 1020-Terminology.................................................................................................................................... 1 1030-General Quality Requirements..................................................................................................... i 1040-Substitutions/Alternatives............................................................................................................ 2 1050-Optional Green Building Practices..............................................................................................3 1100-Temporary Facilities and Temporary Controls.............................................................................. 3 1110—Site Usage......................................................................................................................................3 1200 -Project Closeout.................................................................................................................................4 1210—Final Cleaning................................................................................................................................4 1220—Operations Manuals and Warranties..........................................................................................5 1230—Systems Startup............................................................................................................................ 5 2000-Building Sitework/Site Preparation................................................................................................ 5 2010-Site Clearing and Demolition........................................................................................................ 5 2020-Site Earthwork................................................................................................................................ 5 2040—Site Hazardous Waste Remediation ...........................................................................................6 2100 -Site Improvements.............................................................................................................................6 2110—Roadways, Driveways, and Walkways.......................................................................................6 2150—Fencing...........................................................................................................................................7 2150-Landscaping...................................................................................................................................8 2200 Site Civil/Site Utilities.........................................................................................................................8 2210-Utilities.............................................................................................................................................8 3100-Selective Demolit ion..........................................................................................................................8 3110 -Building Elements Demolition......................................................................................................8 3120 .Hazardous Components Abatement..........................................................................................10 4000 -Foundations.......................................................................................................................................10 4010-Standard Foundations..................................................................................................................10 4030-Slabs on Grade..............................................................................................................................11 5000 -Superstructure...................................................................................................................................11 5010—Framing/Wood............................................................................................................................11 5100-Exterior Enclosure............................................................................................................................12 6110-Exterior Walls.................................................................................................................................12 5111 —Stucco/Plaster.........................................................................................................................12 6112—Exterior Insulation....................................................................................................................12 5113—Caulking and Joint Sealants...................................................................................................13 6120 -Exterior Windows..........................................................................................................................13 6130 -Exterior Doors/Garage Doors....................................................................................................14 5140-Flashing...........................................................................................................................................16 5200—Roofing ..............................................................................................................................................16 5210 -Roof Coverings..............................................................................................................................16 5220—Gutters and Downspouts............................................................................................................16 6000-Interior Construction ........................................................................................................................17 6010—Partitions/Ceilings......................................................................................................................17 6011 —Interior Insulation.....................................................................................................................17 6012-Drywall........................................................................................................................................17 6020 -Interior Doors.................................................................................................................................18 7000-Finishes..............................................................................................................................................18 7010—Ceramic Tile..................................................................................................................................18 7020-Floor Finishes................................................................................................................................19 7030-Ceiling Finishes.............................................................................................................................20 7040-Painting...........................................................................................................................................20 8100—Furnishings.......................................................................................................................................24 8110—Carpentry,Cabinets,and Millwork.............................................................................................24 9000—Plumbing, Mechanical, Electrical...................................................................................................25 9010-Plumbing Fixtures.........................................................................................................................25 9020 -Domestic Water Distribution .......................................................................................................26 9030 -Sanitary Waste...............................................................................................................................26 9100 -Heating,Ventilating, and Air Conditioning(HVAC)......................................................................27 9110—Heating and Ventilating...............................................................................................................27 9200—Fire Protection Systems..................................................................................................................28 9210—Fire Protection Specialties..........................................................................................................28 9300 -Electrical Systems.............................................................................................................................28 9310-Electrical Service and Distribution.................................................................... .....................28 City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 1 of 28 1000 — General Requirements 1010 —General .1. These Minimum Building Standards (Standards) have been developed by the City of San Bernardino Economic Development Agency (EDA)for use on the Neighborhood Stabilization Program (NSP). .2. These Standards shall apply to all properties covered by the NSP. .3. All materials, supplies, costs of permits, and labor to complete the specified rehabilitation or repairs, shall be the responsibility of the Builder/Developer unless specified otherwise by the EDA. .4. Any drawings or sketches which may be furnished by the EDA or required by the Builder/Developer are intended to clarify or further describe the propert. Should the Builder/Developer find discrepancies in, or omissions from, these drawings or sketches or should he/she be in doubt as to their meaning, they should contact the EDA for clarification. Because of the nature of work being done, some details of sketches or drawings may be "typical' and grades, dimensions and exact existing conditions must be verified at the property before commencing work. .5. Any additional work that EDA want the Builder/Developer to do should be done after completion of the Rehabilitation work, if at all possible. A separate contract will be signed between the EDA and Builder/Developer before the work is to start. 1020 - Terminology .1. When used in these Standards, the following definitions shall apply: A. Install -The item referred to shall be installed with all necessary hardware, trim, fittings, and material necessary to make ready for use. All material shall be new. B. Replace -The existing item referred to shall be removed prior to installation of the new item. C. Trim -When used in conjunction with painting, includes roof vents and pipes, eaves, molding, casing, underside of all doors, and any items other than walls and ceilings. D. Rehabilitation -All repairs to or replacement of present elements of an existing building, such as windows, stairs, flooring, or wiring; rearrangement of rooms by the relocation of partitions or by the installation of new bathrooms and kitchens; or the general replacement of the interior of a building. This may or may not include changes to structural elements such as floor systems, columns or load bearing interior or exterior walls. 1030 - General Quality Requirements .1. In order to establish standards of quality, the Standards may refer to certain products by name and/or catalog number. This procedure is not to be construed as eliminating from competition other products of equal or better quality by other manufacturers, at approximately the same cost. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 2 of 28 .2. All material and each part or detail of the work shall be subject at all times to inspection by the EDA, and the Builder/Developer will hold to the true intent of the Standards in regard to -quality of material, workmanship, and the diligent execution of the contract. .3. Materials installed shall be of such kind and quality to ensure that the dwelling will provide acceptable durability, economy of maintenance and adequate resistance to weather, moisture, corrosion and fire. The EDA may request evidence of a material's compliance with the requirements of the structure's plans and specifications and these Standards. Product labels are considered acceptable evidence. A. The EDA may require that the Builder/Developer carry out a durability evaluation or conduct a building assessment to determine if the materials to be used comply with any green strategies .4. All work shall be executed by skilled craftsman, experienced in their trade, and in accordance with accepted practices of their trade. All work shall be of the highest standards and methods. .5. Unless specifically noted otherwise, all construction methods and materials used shall conform to the California Building Code as adopted by the City of San Bernardino and shall be done in accordance with any other ordinances passed and adopted by the City of San Bernardino (i.e., zoning codes, fire codes, etc.). This includes all repairs, finishes, fixtures, and new work. .6. All plumbing and gas work shall be done in accordance with the Uniform Plumbing Code as adopted by the City of San Bernardino. .7. All heating and cooling work shall be done in accordance with the Uniform Mechanical Code as adopted by the City of San Bernardino. .8. All electrical work shall be done in accordance with the national Electric Code as adopted by the City of San Bernardino. .9. Where work involves colors, the Builder/Developer will provide the EDA with samples of all colors for the particular item (roofing, stucco, paint, stain, flooring, etc.), and the EDA will select the color and finish by initialing the color sample and state for what/where it will be used (exterior, interior, fascia, soffit, trim, doors, ceiling, walls, etc.). A maximum of three colors each may be selected for exterior and interior. .10. If the EDA has agreed to correct certain specified existing code violations, which are to be excluded from the work done by the Builder/Developer, the work on such violations, if done at the same time the Builder/Developer is on the job, shall be coordinated by the EDA and Builder/Developer so as to provide for a smooth flow of the work. 1040 • Substitutions/Alternatives .1. The Builder/Developer shall furnish a list of any proposed desired substitutions prior to the signing of the contract. .2. These standards are intended to encourage the use of new or innovative technologies, methods and materials. Alternatives and non-conventional or innovative methods and materials shall be equivalent to these standards in the areas of quality, durability, economy of maintenance, operation and usability. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 3 of 28 .3. Certain conditions in the geographic area or on the site may justify modification of specific standards, or make compliance with the standards impracticable or impossible. In these cases, approval by the EDA is required. 1050- Optional Green Building Practices 1. Builder/Developers are encouraged to incorporate any green building practice that offers an opportunity to create environmentally sound and resource-efficient buildings. .2. In an effort to encourage modem, green building, and energy-efficiency improvements, BuildenDevelopers are encouraged to incorporate HUD's healthy homes interventions including these seven steps ensuring housing is made and kept: A. Dry. Ensure proper drainage away from housing; clean repair gutters and downspouts, repair leaks seal roofs and windows. & Safe: Install safety devices on doors, cabinets, window blinds and outlets; provide adequate storage for all poisonous items out of reach of children and labeled in the proper containers, install smoke detectors and carbon monoxide detectors, have appropriate fire extinguishers available. C. Well-ventilated Service and maintain heating and cooling systems,provide exhaust fans for kitchens, bathroom and dryers to the outside to reduce mold; change furnace filters. D. Pest-free: Provide proper storage and disposal for food products, caulk and seal holes, use least toxic pest management methods. E. Contaminant-free: Remove lead based paint hazards properly,provide test kits for radon, reduce volatile organic compounds in paint, carpet, etc. P Clean: Install dust walk-off systems in entry ways,provide smooth, cleanable surfaces;provide effective storage space and containers; choose flooring that is easy to clean. G. Well-maintained. Important maintenance calendar for inspecting, cleaning, repairing, replacing housing components/systems. 3 Throughout these Standards, the EDA has inserted opportunities in which green building practices can be achieved. 1100 -Temporary Facilities and Temporary Controls 1110—Site Usage .1. All temporary facilities and controls required for the project shall be provided by the Builder/Developer. .2. The Builder/Developer will provide daily clean-up of all debris related to the work of the project as required. Provide a dumpster on site for the duration of construction for disposal of construction debris. All work area(s) shall be left broom clean at the end of each work day. .3. Immec i�: ply, at the end of the work, the Builder/Developer shall remove all of their debris, r J bish, refuse, and unused material from the property and street. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 4 of 28 .4. The Builder/Developer will provide all temporary 6-foot high chain link safety and security fencing for construction operations required for the work of this project. Fencing shall conform to the following specifications: A. 6-foot high chain link fence with 80% or greater green or black wind screen/mesh. B. Mesh shall be attached with hog rings. C. Includes man and vehicle gates where required. D. Gateposts shall be of size to accommodate the size of opening and its intended purpose. E. All gateposts shall be cored or driven into the ground. F. Core holes shall be filled with concrete once temporary fence is removed. Slurry seal all in A/C areas. G. Fencing shall be set back beyond site work improvements. .5. On-site materials pertaining to the project and partially completed roofs shall be temporarily protected during inclement weather. It is the responsibility of the Builder/Developer to maintain a watertight condition to prevent any water damage to the building once the roof has been removed until it has been completely patched. .6. The Builder/Developer shall provide temporary power as needed for the project. .7. Provide and maintain dust and erosion control throughout the duration of the work and as required for the work of the project. .8. The Builder/Developer shall provide protection, acceptable to the EDA, for any existing surfaces or equipment that have been selected to remain. .9. GREEN OPPORTUNITY. Minimize the site disturbance during construction A. Control the impact area by designating vehicle parking farther from the site. B. Store building materials inside a garage or protected area. C Protect all existing trees with fencing to include the drip line in an effort to avoid over compaction of the soil around the trees. 1200 - Project Closeout 1210— Final Cleaning .1. Prior to the final inspection,the Builder/Developer will provide final clean-up of the building and property. .2. Remove all plaster and paint smears and drops; clean all windows, screens, doors, finished hardware and plumbing fixtures; polish all chrome, clean and polish all countertops and floor covering;throughout entire house - new and/or old. Provide cleaning of all exterior surfaces including walls, windows, landscape areas, driveways, and walkways. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 5 of 28 1220 —Operations Manuals and Warranties .1. The Builder/Developer will obtain and fill in all necessary information on all warranties where applicable, for manufactured products, materials and/or labor used in connection with the project. He/she shall deliver the original warranties to the EDA where appropriate copies will be made and the original will be delivered to the EDA upon completion of the work. Any sections that need to be sent to the manufacturer to validate the warranty, will be mailed as soon as possible. 2. GREEN OPPORTUNITY: Provide operation and maintenance manuals, and perform training of users to properly instruct them on the green features of the property and how to maintain them. 1230 — Systems Startup .1. Prior to turnover of building, Builder/Developer will conduct testing and startup of all equipment new and/or old for verification of functionality. .2. Builder/Developer will ensure that all equipment components (such as filters, bulbs, batteries) are replaced prior to turn over. 2000 - Building Sitework/ Site Preparation 2010 - Site Clearing and Demolition .1. This work shall be executed in a safe, orderly manner, and in accordance with all applicable codes. .2. The Builder/Developer shall protect all existing materials and apparatus from damage, and shall repair damage caused by workers at no cost to the EDA. .3. Remove trees and plant materials, with EDA's approval, from areas to be cleared. .4. Maintain protection of trees and plant materials which are to remain until completion of work. .5. Debris shall not be allowed to accumulate. .6. Remove all unsightly trash and dangerous material (wood, metal, etc.). 2020 - Site Earthwork .1. Placing of footings and foundations on earth fill will not be permitted. Fill excess cuts under footings and foundations with concrete, and under slabs with tamped gravel. .2. Excavations for footings shall be neat and accurately cut trenches to depths and grades shown on drawings/plans. In the absence of drawings/plans, code requirements shall govern. .3. All grading around any structures shall have high spots lowered and low spots raised to a minimum of 6" below top of floor slab; a minimum of 2' out with a slight slope from structure. .4. Site grading shall accomplish the following: A. Allow drainage of surface water away from buildings and off-site. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 6 of 28 B. Minimize earth settlement problems. C. Avoid concentrating runoff onto neighboring properties where erosion or other damage would be caused. D. Minimize erosion. E. Minimize potential earth movement problems which might adversely affect completed construction. 5 GREEN OPPORTUNITY. Grades around structures shall maintain at least a 5%slope away from the foundation. 2040—Site Hazardous Waste Remediation .1. The property shall be free of hazards which may adversely affect the health and safety of the occupants or the structural soundness of the improvements or which may impair the customary use and enjoyment of the property. These hazards include toxic chemicals, radioactive materials, other pollution, hazardous activities, subsidence, flood, erosion, expansive or compressible soils, inadequate drainage outfall, landslides or mudflows, and deposition of suspended solids or others located on or off site. Projects with potentially significant hazards may be acceptable if any such hazards are effectively mitigated. 2100 - Site Improvements 2110— Roadways, Driveways, and Walkways .1. Surfaces and base courses for roads, streets, parking areas and walks shall be durable materials. Their construction shall be in conformance with generally accepted local design practices. .2. Slabs for roadways, driveways, and walkways shall be designed and constructed in accordance with standards set forth by the American Concrete Institute, and as may be necessary to prevent slab damage due to potential soil movements. .3. Provide for repairs and/or repairs of existing surfaces to match existing. .4. These surfaces shall be installed with provisions for drainage. Adequate surface and underground drainage systems shall serve all paving and improvements so as to ensure continuing stable soil support for these improvements. .5. Minimum width for driveways shall be 10', and sidewalks 3', if installed new; or if replaced, to match existing if wider than 10'. .6. All exterior concrete surfaces shall be a light broom finish with expansion joints approximately every 12' (fiber material), with slope for drainage away from structure and property. .7. All flatwork expansion joints shall be filled with clear silicone sealant. .8. Where soil and/or concrete for porches, steps and other work is in contact with members, galvanized metal flashing, or solid sheathing and 15 lb. felt shall be installed, or wrap and scratch coat applied. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 7 of 28 9 GREEN OPPORTUNITY Limit water runoff and maximize infiltration by avoiding impervious surfaces and installing permeable drainage areas between sidewalks, driveways, walkways, patios, and pathways. A. Open matrix concrete grid pavers. S. Specialized honeycomb substrates for gravel or turf. C Pervious mixes of concrete or asphalt. 2150— Fencing .1. Check all boundaries to ensure property lines are observed, and City Ordinances are not violated (front yard, side yard, and back yard maximum heights). .2. All post setting holes shall not be less than 24"deep and 6"diameter, at a maximum of 10' intervals. When adjacent to a foundation (walls), offset hole to obtain 24"depth, and fill in any space larger than 2" between wall and post. .3. Entrance walk gate shall be a minimum of 3'wide, and driveway gates a minimum of 12'wide; including all gate hinges and. padlock latch attachments. .4. Wrought Iron A. Posts to be 2"x2" x .090 (16 gauge). B. Top and bottom rails to be 1 ''/2'x 1 Y" (16 gauge). C. Pickets to be%"x%"(16 gauge), 4"on center. .5. Chain Link A. All galvanized material. B. 2-3/8" O.D. end, corner, and gate posts. C. 1-5/8" O.D. line and corner diagonal posts. D. 1-3/8" O.D. top rail, with bottom tension wire. E. 11 gauge-2" mesh; to include all bands and wire ties. .6. Wood Fence A. All posts will be of galvanized material (unless otherwise specified). B. 2-3/8" O.D. end, corner, and gate posts. C. 1-5/8"O.D. line and corner diagonal posts. D. Two 2 x 4 horizontal support rails. E. Fencing as specified (redwood or cedar- minimum#2, two nails per rail). .7. Block Wall A. Shall be in accordance with the City of San Bernardino drawing on Garden & Retaining Wall Standards available from the Building & Safety Department. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 8 of 28 2150 - Landscaping .1. All trees and shrubbery identified to remain shall be trimmed. Trim to property line and a minimum of 4' above roofing or structure; removing all debris. .2. All trees and shrubs identified to be removed shall be cut to surface. Remove stump and roots a minimum of 8" below surface; removing all debris, and fill in hole with soil. .3. Natural site assets such as existing trees, shrubs, ground cover, must be preserved, maintained, and protected whenever possible. .4. Any existing assets lost due to the construction efforts and/or lack of protection will be replaced with like kind and size at the Builder/Developer's expense. .5. GREEN OPPORTUNITY, Create environmentally friendly lawns and landscaping by. A. Cover play areas with wood shavings. B. Limit the amount of lawn space by installing naturalized plantings. C. Provide alternative water sources. D. Plant drought-tolerant landscapes E. Plant shade trees in an effort to reduce the cooling loads required in the house. F. Consider planting edible plants. G. Use water-conserving irrigation equipment where landscape irrigation is required. i. Drip Irrigation. ii Advanced irrigation controls like rain sensors. 2200 Site Civil /Site Utilities 2210 - Utilities .1. Underground piping and related items shall be protected from corrosion. Underground mechanical and electrical systems shall be protectively coated to minimize corrosion where soil conditions warrant. Where applicable, sacrificial anodes may be used. 1. Sacrificial anodes may be used where soil resistivity does not exceed 15,000 ohm - centimeters. Otherwise, an impressed current system of corrosion prevention shall be used. .3. Utilities and other facilities shall be independent for the property, without dependence upon other properties. 3100 -Selective Demolition 3110 - Building Elements Demolition .1. This work shall be executed in a safe, orderly manner, and in accordance with all applicable codes. .2. The Builder/Developer shall protect existing materials and apparatus from damage, and shall repair damage caused by workers at no cost to the EDA. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 9 of 28 .3. Debris shall not be allowed to accumulate. .4. The Builder/Developer shall remove all flooring finishes identified to be removed or replaced. Including abatement of any materials designated as containing asbestos. .5. Provide all roofing membrane removal as required for the removal of existing and installation of new roof, equipment, and connections. .6. The Builder/Developer shall provide shoring of all existing beams/structures being modified prior to removing existing bearing walls. .7. Remove all interior and exterior doors and/or frames that are identified for removal. This activity shall be coordinated with the EDA in an effort to not leave any openings un-lockable. .8. Remove all window stops/putty, glass, glazing, and frames as required. Provide demolition of existing sliding glass doors scheduled to be replaced. .9. The Builder/Developer shall remove all structural and non-structural wood stud /gypsum sheathing or wood stud / plaster partition walls, wing walls or portion of walls determined to be removed. A. All appurtenances identified to be removed / demolished on walls scheduled to be removed/demolished shall be removed and disposed of by the Builder/Developer. B. Appurtenances identified to remain, shall be removed and re-installed by the Builder/Developer. .10. Any specific cutting and patching of drywall needed to install conduit or piping shall be done by the Builder/Developer. .11. The Builder/Developer shall remove all wall surface material or portions thereof from interior and exterior walls for new framed openings such as but not limited to doors, windows, recessed electrical panels, louvers, HVAC grills and ducts, backing, etc. .12. The Builder/Developer shall provide removal of all existing spayed on acoustical (popcorn) ceiling texture. Provide for asbestos abatement as necessary. .13. The Builder/Developer shall remove existing casework and countertops, backing, anchors, bases, shims, backsplash, etc. identified to be demolished and disposed of. .14. Doors and windows must be able to be locked at the end of each day, or provide a temporary secure panel (approved by the EDA) closing the opening at no additional cost to the EDA. This also includes providing a temporary secure panel at all wall, door or window openings scheduled to be removed. .15. Removal of Ceramic tile shall include removal and replacement of wall substrate and any existing mortar bed. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 10 of 28 3120 - Hazardous Components Abatement .1. The property shall be free of those hazards which may adversely affect the health and safety of the occupants or the structural soundness of the improvements or which may impair the customary use and enjoyment of the property. These hazards include toxic chemicals, radioactive materials, other pollution, hazardous activities, subsidence, flood, erosion, expansive or compressible soils, inadequate drainage outfall, landslides or mudflows, and deposition of suspended solids or others located on or off site. Projects with potentially significant hazards may be acceptable if any such hazards are effectively mitigated. .2. The Builder/Developer shall provide all labor, material and equipment required to complete the work related to the Hazardous Materials Abatement as required. A. Provide all labor, material and equipment required to abate and legally dispose of off-site all Asbestos Containing Materials (ACM) and Lead Containing Materials including but not limited to pipe fitting insulation (elbows/ends), roof mastic, flooring, flexible joints, doors, door frames, plaster walls, sinks, ceramic tile, etc. B. Provide for the proper removal and disposal of PCB Ballasts and Fluorescent Light Tubes: I. It is assumed that all ballasts not labeled "No PCBs" are considered to contain PCBs and therefore must be treated as hazardous waste. The Builder/Developer shall disconnect the ballasts (those not labeled "No PCB's") from the fixtures and is responsible for proper disposal/recycling. ii. Mercury is present in fluorescent light tubes, which may be present throughout the project areas. Mercury is considered a hazardous waste and will be disposed of properly by the Builder/Developer. 4000 - Foundations 4010 -Standard Foundations .1. Includes excavation, backfill, compaction, and installation of all foundations. .2. Concrete materials for foundations shall be in accordance with City of San Bernardino standards and shall be approved by the EDA prior to placement. .3. Includes all formwork and accessories for all cast-in place concrete and cement concrete pavement with shoring, bracing and anchorage, form accessories, form stripping, and proper layout, location. Provide proper temporary support/shoring (as required and/or needed). .4. Furnish and install all reinforcing steel bars, welded steel wire fabric, fabricated steel bar, slip dowels, or rod mats for all on-site cast-in-place concrete and cement concrete pavement. Provide and install all necessary accessories as indicated. .5. All vertical reinforcing steel protection shall be installed in accordance with CAL OSHA codes and regulations. Maintain said protection throughout the duration of reinforcement installation and until enclosed by finish material. .6. When replacing existing concrete with new, the new concrrt shall have at least the same reinforcement as the existing City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 11 of 28 .7 GREEN OPPORTUNITY. Provide foundation water management system. 8. GREEN OPPORTUNITY., Use concrete that contains a percentage of fly ash in place of portland cement. 4030 -Slabs on Grade .1. Concrete mixture shall be made of a 1-2-3 mix with plastic cement, sand, and 3/4" rock. Ready mix will be a 5 sack. Minimum 2500 psi. .2. Slabs shall be constructed in accordance with ACI 302AR-80, Guide for Concrete Floor and Slab Construction, and as may be necessary to prevent slab damage due to potential soil movements. .3. Vapor retarders and base course shall be provided for all interior concrete slabs to which a finish flooring is applied. A. Acceptable base course materials are gravel, slag, crushed rock, sand, cinders and certain types of earth when approved by the local EDA. See ASTM C-33-90, Table 2. B. Base course material shall be clean, washed and free from deleterious substances, consistent with ASTM C-33, with 100%of the material passing a 1" sieve and less than 2% passing a#4 sieve. .1. All concrete slabs shall be a minimum of 3 '/2"thick(additions, garages, driveways, sidewalks). .2. All interior surfaces shall be troweled smooth. .3. Includes excavation, backfill, compaction, and installation of all slabs. Completely furnish and install all concrete accessories, colors, finishes, forming, admixtures, reinforcement joint sealers, and curing compounds in accordance with the Specifications. 5000 -Superstructure 5010— framing f Wood .1. Framing and wood construction shall be in accordance with the latest edition of the National Design Specification for Wood Construction. .2. A chemical barrier must be provided for structures built in those areas where termites are determined by the EDA to be a hazard. A physical barrier will also satisfy this requirement where the hazard is presented by subterranean termites only. .3. Where required by the EDA Field Office, protection against damage by decay shall be provided. .4. GREEN OPPORTUNITY. Keep all untreated wood at least 12 inches above soil in lieu of the code required 8 inches. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 12 of 28 5100 - Exterior Enclosure 5110 - Exterior Walls 5111 —Stucco/ Plaster .1. The Builder/Developer shall investigate the condition of studs and ceiling joist to be sure framing members comply with appropriate code. .2. Install or reset all electrical boxes to new surface level. .3. Exterior angles shall be protected with woven or welded wire fabric of equivalent strength, or corner bead. .4. A surface inspection is required after sandblasting and before re-stuccoing by the EDA. .5. Application: A. Portland Cement plastering work shall be three-coat work when applied over metal and wire lath/wrap. B. Scratch (first) coat: Apply with sufficient material and pressure to fill solidly all openings in the lath/wrap, and to cover wall, and then scratch to rough surface. Allow to dry a minimum of two days. (Example: complete scratch coat Tuesday, start brown coat Friday). C. Brown (second) coat: Apply after scratch coat has set firm and hard, bring out to grounds, and straighten to a true surface with rod and derby; leave rough, ready to receive finish coat. Surface shall not have variation greater than %" in any direction under a five-foot straight edge.Allow to dry a minimum of seven full days before applying color coat. (Example: complete brown coat on Tues., color coat not to start until following Wed.). D. Finish (color) coats: Portland Cement and Lime Finish Coats -Apply over base coats which have set and surface-dry; lay on well, double back and fill out to a true, even surface. Thickness shall be 1/16"to 1/8", then texture as specified. E. When structure is to have lath/wrap and stucco over existing siding, the Builder/Developer is to remove door and window casing; trim out with metal edging or stucco molding, and seal. F. Exterior lath/wrap to be applied as per California Building Code. G. Stucco Color Coat: La Habra, Bauer, or equal. 5112— Exterior Insulation .1. Materials used for insulation shall be of proven effectiveness and adequate durability so as to ensure that required ratings concerning heat transmission, sound control and fire rating are attained. A. Manville, Owens/Corning, USG; or equal. B. Proper sound insulation shall be used at all walls. C. GREEN OPPORTUNITY. Use cellulose insulation. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 13 of 28 .2. Insulation in contact with the ground shall be installed so as not to be adversely affected by soil, vermin and water. .3. Shall be installed in accordance with Energy Conservation Standards administered by the Building & Safety Division of the City of San Bernardino. .4. Attics: A. If all exterior walls of house are not insulated, bring to R-38 rating (12"). B. If all exterior walls are insulated and/or new addition, insulate to R-30 rating (9"). C. GREEN OPPORTUNITY. All attic spaces are to receive insulation_ .5. Walls: A. All exposed exterior walls and new addition, insulated to R-11 rating (3 1/2"). .6. Water Heater: A. If it has access from outside or in garage, install R-8 rating insulation blanket and wrap all exposed water lines with pipe insulation. B GREEN OPPORTUNITY. Provide insulation at all water heaters. 5113—Caulking and Joint Sealants .1. Materials used for caulking and sealants shall be suitable for the use intended, and shall be compatible with the materials to which they are applied and with any finish that may be applied over them. 5120 - Exterior Windows .1. When required shall be made easily openable, replace sash cords and weights or install spring loaded sash balances, as necessary. .2. Windows and operating hardware shall be installed in accordance with the recommendations of the manufacturer. .3. When aluminum single hung or slider window(s) is required and the frames are not to be taken out, use International Window Corporation, Keller, or equal (block frame), to fit existing opening. Caulk window frame before installing, including necessary trim. .4. When new aluminum slider or single hung window(s) installation is required, provide header(s), trimmers, flashing, International Window Corporation, Keller, or equal (standard frame). .5. Operating windows shall be manufactured units consisting of the frame, sill, sash, weather-stripping, and operating hardware. Job site assembled windows composed of frames and sashes made by different manufacturers are not acceptable. .6. Glazing: A. When replacing glass, thickness shall be as recommended by the manufacturer for the specific use. B. All bathroom windows shall be glazed with obscure glass. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 14 of 28 C. Glass set in wood shall be secured in place with springs or glazing points and face puttied, wood and putty to be primed and painted. D. Glass set in metal shall be secured in place with glazing clips, back and face puttied with appropriate material, metal and putty to be primed and painted. E. All glass shall be cleaned, with no cracks or rattles (new installation only). F. Re-putty shall mean to replace all damage, loose, and missing putty. .7. Weather-stripping shall be properly fitted to eliminate excessive infiltration of dust, snow, or rain. .8. Screens: A. Screens shall be installed on all openable windows. B. When re-screening or new screens are required,they shall be aluminum frames, aluminum screening; tight fitting and easily removed. C. Nylon screens on newly installed windows and combination doors may be acceptable, unless otherwise requested or stated. .9. If a window of any kind must be installed into the wet area of the tub or shower surround, it must: A. Contain a sill made of material that is water impermeable , such as marble or Corian, not tiled and grouted. B. Have a sill that is pan-flashed or sealed. C. Have frame made of moisture-tolerant material. .10. GREEN OPPORTUNITY: Replace existing windows and provide new windows with a high energy and low-e performance rating 11. GREEN OPPORTUNITY. Provide awnings, overhangs, or other shading devices on exterior windows. 5130 - Exterior Doors /Garage Doors .1. All exterior doors will be wood or metal finish (no hardboard). Primed/painted or stained/varnished. .2. Doors shall be durable, installed in good operating condition, free of defects, latch readily and lock securely. .3. Doors shall fit opening and operate properly. .4. All new door installation shall include new hinges and all necessary trim. .5. Entry Doors: A. Exterior entry doors shall be side-hinged doors not less than 3 ft. in width and 6 ft. 8 in. in height. B. 1 %" solid core- Birch, Mahogany, Luan; unless existing jamb takes 1 318"door. C. 3 each -4"x 4" butt hinges, unless existing jamb takes 1 3/8" door, then 3-3'/2"x 31/2" butt hinges. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 15 of 28 D. Exterior door frames shall be treated against decay. E. Locks- Kwikset, Schlage, or equal. .6. Garage Doors: A. Steel frame construction. B. Installing new garage hardware or replacement hardware shall comply with the following safety notice: ... FOR YOUR SAFETY ... California State Assembly#772 directed the Commission of Housing and Community Development to change the appropriate rules and regulations in ways that, "ARE REASONABLY NECESSARY TO PREVENT THE DEATH OR INJURY OF PERSONS OR DAMAGE RESULTING FROM THE BREAKING OF GARAGE DOORS SPRINGS". (quoted from Assembly Bill#772) 7 Weather-stripping shall be applied to all exterior doors and interior garage door. .8. Weather-stripping shall be aluminum and vinyl. Install after surfaces are finished and dry. .9. Thresholds and door shoes shall be installed at all exterior doors and interior garage doors and shall be aluminum thresholds, and aluminum/vinyl with drip cap door shoes (channel type), sealed to be watertight. .10. Exterior jambs will be rabbet type (fit wall thickness) and to include new wood (pine) casing material. Replace stucco molding only if required. .11. A safety door check shall be provided on all outward opening doors, including storm and screen doors. .12. Locking devices at doors and windows shall be as follows: A. Each exterior doorway and each doorway leading to garage areas, terraces, balconies, or other areas affording easy access to the premises shall be protected by a door which, if not a sliding door, shall be equipped with a deadlock using either an interlocking vertical bolt and striker, a minimum of 1.2 in. throw dead bolt or a minimum 1/2 in. throw self-locking dead latch. Locks shall not require the use of a key for operation from the inside. B. All sliding doors, first floor and basement windows and windows opening onto stairways, fire escapes, porches, terraces, balconies or other areas affording easy access to the premises shall be equipped with a locking device. A sliding door used as a main or service entrance shall be equipped with a keyed locking device. .13. Screens shall be aluminum/satin finish with latch set and pneumatic closure or equal. .14. Security Screen—Jamb/frame will be 1' 1/4"x 1' 1/4" (18 gauge)with 3/4 x 3/4"center framing (18 gauge) and heavy gauge metal screening. Combination (Bel-Aire) -Solid core (no panels). 1 3/8"door, 3 - 3 'W x 3 'W butt hinges; 1 %" Locks- Kwikset, Schlage, or equal. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 16 of 28 5140- Flashing .1. Flashing shall have a service life at least equal to that of the assemblies into which it is built. .2. Counter flashing is considered exposed flashing and shall be constructed of sheet metal. .3. Alternate products or systems of bitumen-impregnated plastic or elastomeric materials may be used for flashing if they are installed in accordance with the manufacturer's recommendations and are acceptable to the EDA. .4. All openings between wood or metal and masonry shall be caulked with a non- hardening caulking compound. 5200 — Roofing 5210 - Roof Coverings .1. Strip- Means to remove"all" roofing material to sheathing, with inspection of sheathing prior to installation of new roofing. .2. The Builder/Developer shall guarantee the owner to maintain the entire roofing, and counterflashing in a watertight condition for a period of fifteen years. .3. Shingles— A. Shall be fiberglass of 151b. felt. B. New metal 1 1/2" drip edge and roof jacks(form over shingles, seal around all pipes). .4. Built- Up/Roll Roofing Cap A. Roll roofing cap to be a minimum of 90 lb. roofing paper and must bear a class "C" UL listing. B. One 90 lb. cap sheet to be installed over two layers of 15 lb. felt paper, saturated with at least 20 lb. of hot mopped tar, between layers. C. All base sheets to be well nailed with approved galvanized nails providing a minimum 3/4" penetration into a firm solid sheathed surface. D. New metal 1/2"drip edge and roof jacks. .5. GREEN OPPORTUNITY. Provide reflective (high-albedo) roofing systems with an Energy Star rating 5220—Gutters and Downspouts .1. Gutters and downspouts shall be provided at all projects. .2. Gutters and downspouts -Shall be a minimum of 26 gauge galvanized metal, or vinyl material. .3. Gutters shall be sloped to downspout and supported a maximum of 3' apart. A. End caps, corner joints, splices, outlet tubes shall be soldered or have watertight joints. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 17 of 28 5. Downspouts shall be fastened at top, bottom, and approximately every 6', and directed to drain away from the structure. .6. Downspouts shall be sized on the basis of 100 square feet of roof surface to 1 square inch of leader. More or less leader area may be required by the EDA. .7. Scuppers shall be installed at the outfall end of a valley for special roof designs, such as"butterfly" roofs. .8. Scuppers shall be installed for overflow of all roofs enclosed by parapet walls. 9. GREEN OPPORTUNITY: Provide a simple rain water harvesting system for use on irrigation. 6000 - Interior Construction 6010 — Partitions / Ceilings 6011 — Interior Insulation .1. Materials used for insulation shall be of proven effectiveness and adequate durability so as to ensure that required ratings concerning heat transmission, sound control and fire rating are attained. A. Manville, Owens/Corning, or equal. B. GREEN OPPORTUNITY Use cellulose insulation .2. Insulation in contact with the ground shall be installed so as not to be adversely affected by soil, vermin and water. .3. Shall be installed in accordance with Energy Conservation Standards administered by the Building & Safety Division of the City of San Bernardino. 6012 - Drywall .1. When installation of drywall is specified, provide '/" U.S. Gypsum wall board or equal, unless otherwise specified. .2. GREEN OPPRTUNITY Select drywall products with a high recycled content and use taping materials and joint compound without hazardous additives that aid in drying and setting. " .3. All joints and inside corners shall be taped; outside comers shall have corner bead troweled with joint compound (a minimum of three coats, and smoothly sanded or textured). .4. If kitchen base cabinets, toilet or lavatory are removed, and the drywall is to be replaced, it must be replaced with green board or equal. .5. If tub surrounding drywall is to be replaced, it must be replaced with wonder(cement) board. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 18 of 28 .6. All wall surfaces to receive ceramic tile shall receive wonder (cement) board or plaster in accordance with the following: A. Portland Cement plastering work shall be three-coat work when applied over metal and wire lath/wrap. B. Scratch (first) coat: Apply with sufficient material and pressure to fill solidly all openings in the lath/wrap, and to cover wall, and then scratch to rough surface. Allow to dry a minimum of two days(Example: complete scratch coat Tuesday, start brown coat Friday). C. Brown (second) coat: Apply after scratch coat has set firm and hard, bring out to grounds, and straighten to a true surface with rod and darby; leave rough, ready to receive finish coat. Surface shall not have variation greater than '/;' in any direction under a five-foot straight edge. Allow to dry a minimum of seven full days before applying color coat(Example: complete brown coat on Tues., color coat not to start until following Wed.). 6020 - Interior Doors .1. Doors shall be durable, installed in good operating condition, free of defects, latch readily and close securely. .2. Doors shall fit opening and operate properly. .3. All new door installation shall include new hinges and all necessary trim and hardware. .4. Interior Hinged /Closet/Bathroom Doors: A. Shall be side-hinged doors not less than 1 3/8"thick. B. At least 2 each 3 '/s"x 3 Y°butt hinges. C. Locks- Kwikset, Schlage, or equal. .5. Shower Door/Tub Enclosure: A. Shower Doors—MAAX, Kohler, or equal. Seal around frame and walls. B. Tub Enclosure- MAAX, Kohler, or equal. Seal around frame and walls .6. Door stops installed at all swinging doors shall be solid (no coil springs). .7. Interior jambs will be Flat type (fit wall thickness) and to include new wood (pine) material stop molding and casing (both sides). 7000 - Finishes 7010— Ceramic Tile .1. Install ceramic tile where identified. .2. Ceramic tile to be American Olean, Dal-Tile, or equal. 3. GREEN OPPORTUNITY Use ceramic tile with high recycled content .4. Submit a complete range of colors and types for the EDA's selection. One of each color of type selected shall be retained by the EDA. All materials placed in the building shall match such samples. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 19 of 28 .5. Applications and installation of adhesive, primer, caulking compound, and prepared grout when used, shall be as recommended by manufacturer of the tile and in accordance with these standard specifications. .6. Ceramic tile shall be applied over a water-proof surface only(cement or wonder (cement) board). .7. At showers, the top of step shall have slight slope into shower. 7020 - Floor Finishes .1. The Builder/Developer shall provide all necessary floor preparation of existing surfaces to properly receive new flooring material. .2. Sub-flooring shall be a minimum thickness of 3/4" plywood or 1x boards. .3. Underlayment shall have a maximum thickness 3/8"industrial particle board. .4. Install all flooring per manufacturer's recommendation. .5. Existing floor covering to be removed prior to installation of new floor. .6. Provide underlayment when sub-flooring is in such a condition to warrant replacement. Bathroom, kitchen, and laundry underlayment to be of water resistant material. .7. Surfaces to receive flooring shall be clean, dry, smooth, even, and without defects. .8. At Bathrooms, the toilet and lavatory cabinet shall be removed before flooring installed. Reinstall toilet and cabinets. .9. Install new baseboard or shoe after installation of flooring. If cove is required, it shall be formed integrally of matching sheet material. Adhesives shall be as recommended by manufacturer. .10. Coat all concrete floors on earth grade with concrete primer as recommended by manufacturer. .11. Leveling compound and crack filler-As manufactured by Aetna Manufacturing Company for concrete floors or equal. .12. Linoleum (sheet goods) - FHA base cushioned, Armstrong -Cambray or equal. .13. Vinyl Tile-Armstrong -Stylistic or equal. .14. Carpet-260z. A. Base, HUD/FHA bulletin UP-44c requirement. B. Pad -5/8" rebond high plush, HUD bulletin UP-72 requirement. .15. GREEN OPPORTUNITY.., Provide greener carpeting such as: A. Products made from natural materials, B. Products that do not contain residues from dyes and finishes used in manufacturing, C. Products that do not have surface treatments to repel stains; D. Products with documented low VOC offgassing; City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 20 of 28 E Products with high recycled contents .16. Submit a complete range of colors and types for the EDA's selection. 7030 - Ceiling Finishes .1. Ceilings shall be drywalled and painted. No sprayed on acoustical ceilings (popcorn) will be allowed. 7040 - Painting .1. Lead Content: A. The definition states in part, ....... with respect to paint which is manufactured after June 22, 1977, lead-based paint means any paint containing more than six one- hundredths of one percent lead by weight(calculated as lead metal) in total non- volatile content of the paint or the equivalent measure of lead in the dried film of paint already applied". B. All contractors and sub-contractors on rehabilitation activities will comply with the Lead-Base Paint Regulation under 24 CFR Part 35, requiring: i. The prohibition of the use of lead-based paint in the rehabilitation of properties; ii. The elimination of immediate lead-based paint hazards in residential structures. .2. All paint shall have low VOC levels. .3. If exterior painting is required, caulk all exterior door and window frames to seal completely. Remove all loose and deteriorated putty on windows and re-putty before painting. When painting of exterior trim is specified, this shall include doors, windows, all frames, eaves, soffits, porches and all appendages. .4. If a paint to be used on exterior surfaces is not inherently mold resistant, a suitable fungicide shall be included in the formulation. .5. If repair of exterior surfaces is indicated, remove all broken and loose material by raking out, scraping and sanding if necessary. Repair with proper material for area being repaired, blending in with texture of area being repaired. Prime the repaired area prior to painting. .6. If interior painting is indicated, repair all cracks by "V"scratch approximately 1/8"X 1/8" in walls and ceilings of all rooms being re-painted. Use proper type of patching material for areas being repaired. Fill all cracks and holes solid and blend in repaired areas with texture of surface being repaired. Prime cracked areas prior to painting. When painting of walls and ceilings of a room is specified, this shall include all trim, windows and door frames, closets, and cabinets (inside). .7. All surfaces to be painted shall be free of dirt, dust, grease before painting is started. All knots, pitch streaks, and sappy spots shall be first sealed with shellac or sealer approved for use with materials as specified, before subsequent coats are applied. Each coat shall be allowed to dry before subseque t coat is applied. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 21 of 28 .8. If it should become necessary, in order to give good coverage because of surface condition of the paint color(s), it is the obligation of the Builder/Developer to apply sufficient coats to obtain complete coverage. .9. All new drywall shall be primed with one coat of Drywall Sealer/Primer before the application of the finish coat, unless otherwise specified. .10. Paint to be Dunn-Edwards, Glidden, Sinclair or equal. EDA to select color(s) and finish. .11. Paint for kitchen, service area, bathroom(s)to be a durable and washable gloss finish (unless EDA requests a semi-gloss). .12. Stain—Exterior/interior application (Minwax, Behr, or equal). .13. Varnish - Exterior/interior application (Behr,Varathane Elite, or equal). .14. Spar gloss or satin, EDA to specify (Behr, Varathane Elite, or equal). .15. Spar gloss or satin, EDA to specify (Behr, Varathane Elite, or equal). .16. Paint application shall consist of two coats on old material, and three coats on bear wood or new material. The top and bottom edges of interior doors shall be sealed (painted or varnished)with one coat, exterior doors with two coats. .17. Application of paints, stains, or other coating systems shall be in strict accordance with manufacturer's directions and shall comply with the following: A. Exterior Wood Siding, Millwork and Trim L Knots, resinous wood, and nail holes shall be sealed with a prepared sealer or aluminum paint prior to puttying and priming. Any nail holes or cracks in surfaces to be painted shall be filled with putty. ii. A prime coat shall be applied to all surfaces to be painted before or immediately after installation. Primer shall be formulated specifically for application to unfinished wood. Finish coats formulated to serve as primers may be used. iii. One of the following finish systems shall be applied. Coverage shall be that which will provide at least the minimum thickness recommended by the manufacturer. a. Oil paint systems. b. Latex paint systems. c. Pigmented stains as per manufacturer's directions. d. Clear penetrating preservatives or water repellent finishing systems. iv. The top and bottom of exterior wood doors, casement sash, awning sash and the bottom of double hung sash shall receive two coats of paint or sealer. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 22 of 28 V. Prior to erection, all edges of vertical siding shall be sealed with a heavy coat of house paint primer, water repellent stain, exterior aluminum house paint or sealer. Wood batten strips shall be backed-primed or sealed. B. Wood Shingles, Shakes, Rough-sawn Siding. i. Two coats of oil stain, pigmented oil stain, or an oil shingle paint shall be applied. C. Hardboard and Softwood Plywood Siding. i. These sidings shall be finished in accordance with the manufacturer's direction. D. Wood Porch Floors and Decks. i. One coat of primer and two coats of floor and deck enamel designed for exterior use shall be applied. Joints between floor and wall shall be caulked. E. Unfinished Surfaces. L Shingles and board siding of vertical grain cedar, redwood and bald cypress may be left unfinished. F. Exterior Concrete Masonry Units or Concrete Brick i. At least two coats of masonry paint shall be applied. ii. Concrete masonry units or concrete brick, except small areas of foundation walls, shall be painted to provide a water resistant finish. iii. High density concrete brick or solid split block forming the outer face of double unit walls (veneer, cavity walls, etc.) may be left unpainted when acceptable to the EDA. G. Exterior Galvanized Steel or Iron L Field painting shall consist of two coats. One coat shall be a primer formulated specifically for galvanized surfaces, and the second coat shall be a finish coat. A finish coat formulated to serve as a primer may be used as the first coat. H. Exterior Steel, Iron or Terne Plate ii. Steel or iron, except stainless steel,weathering steels, or steel treated with coatings to provide corrosion resistance, shall be painted. iii. A rust inhibitive primer and a finish coat shall be applied. I. Interior Millwork and Trim i. All mill work and trim, including windows; interior doors; window, door and base trim; paneling and closet shelving and trim shall be finished by painting or natural finishing. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 23 of 28 ii. If the surface is open grain wood, it shall be filled or sealed to prevent the grain from rising. Surfaces shall be treated with a primer. One or more finish coats shall be applied to provide a smooth surface and good hiding. iii. Natural finishes include stain-wax, stain followed by one or more coats of varnish, clear coats of varnish with or without wiped paint undercoats or oil and wax finishes. J. Wood Floors L If flooring is open grain wood, one coat of filler shall be applied. All excess shall be wiped off. ii. Flooring shall be finished with: a. One or two coats of penetrating sealer and one coat of wax; or b. Two coats of varnish and one coat of wax; or c. Two coats of polyurethane; or d. One or more coats of factory-applied finish. K. Interior Plaster and Gypsum -Walls and Ceilings L Plaster surfaces may be painted, covered or left unfinished, except for surfaces of kitchens and baths. If painted, a finished coat shall be applied over a primer-sealer, unless finish coats are of the self-priming type. ii. Gypsum wallboard shall be covered. If painted, one coat of wallboard sealer shall be applied unless finish coats are of the self-sealing type. Two finish coats shall be applied over the sealer. One finish coat, except in kitchen and baths, may be acceptable if good coverage is obtained. L. Interior Metal L Non-ferrous metals or wrought iron may be painted or left unfinished. Other metals shall be painted in accordance with 609-3.4. M. Interior Concrete Floors L If painted, at least two coats of resin emulsion paint, a solvent rubber paint or a floor and deck enamel shall be applied. If oil paint is used, the surface shall be neutralized before painting. ii. A coat of wax shall be applied over paint, stain or an integral finish. N. Wall Coverings 1. Covering material shall be secured to a suitable base in accordance with the manufacturer's directions. ii. All rooms that have new wall covering installed will include molding, trim, base, and painting (if required). City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 24 of 28 8100— Furnishings 8110 —Carpentry, Cabinets, and Millwork .1. All manufactured factory finished cabinets shall comply with ANSI A161.1-86, Recommended Minimum Construction and Performance for Kitchen and Vanity Cabinets, or with an equivalent standard. .2. Workmanship: All interior wood finish, cabinet and casework shall be smooth dressed, well sanded, and thoroughly cleaned before priming. All material showing machinery, sandpaper, or other defacing marks will be rejected. Interior wood finish or cabinet work shall not be installed on newly plastered walls until the plaster in that section is reasonable dry and approved by the EDA. .3. All interior wood finish, doors, frames, and other cabinet work or fixed wood equipment shall be properly installed, level plumb, and true. Members shall be neatly and accurately scribe in place, maintaining full lengths without splicing, except where the use of full lengths would be impractical or impossible, and then if joined, butt joints shall be beveled. Replacement and installation of new trim or molding shall match existing in size and profile or otherwise be reasonably appropriate upon finished installation. .4. All cabinets(kitchen base and wall, bathroom lavatory, etc.) shall be a minimum of birch plywood construction (stain grade quality), shop fabricated casework, with all necessary hardware. Shelving shall not be less than 3/4" pine, plywood, or particle board. Kitchen base cabinets shall have a built-in bread board. .5. All cabinets and trim shall be scribe to contacting surfaces and shall be straight, plumb level and in true alignment, closely fitted, and rigidly fastened in place. .6. Countertops: A. Top material shall be phenolic laminate, vinyl plastic covering, ceramic tile, stainless steel or other material suitable for its intended use. B. The top material shall be securely bonded to a reinforced steel core, to 5/8 in. plywood, or to any other equivalent material. C. At least a 3 in. back and end splash shall be provided against all abutting vertical surfaces which are not water and grease resistant. When a back splash is omitted, the joints at the juncture of the counter top and vertical surfaces shall be tight and sealed. D. All edges, including the sink and any built-in surface units, shall have a non- corrodible metal molding or other suitable edging. E. High Pressured Laminated Plastic(Formica or equal)-Shall be constructed with a bullnose front edge, minimum of a standard back splash where it abuts walls, and full length of cabinets. If laminated plastic ends at wall, provide end splash (material must be identical to counter top original color). Scribe and closely fitted to adjacent work, and securely anchored to cabinets. Installation of sinks shall have required mounting flange and sealed against leaking. No butcher block unless otherwise requested or stated by the EDA. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 25 of 28 F. Ceramic Tile -Shall be applied over a plastic cement base secured to 3/4" exterior plywood secured to the cabinets. Raise front edge, minimum of a standard back splash, and sealed at edges of full length cabinets. (See Ceramic Tile Specification). G. GREEN OPPORTUNITY. Countertops shall be made of natural stone (granite), tiles, or manufactured solid surfaces (Corian). .7. Interior woodwork: A. Trim (D.F.) "B or better". B. Shelving - Particle board or#2 shelving. 9000— Plumbing, Mechanical, Electrical 9010 - Plumbing Fixtures .1. All fixture installation is to include trap, vent, faucets, and all trim necessary to mount fixture in an approved manner, and to include repair of damaged areas affected by the installation. When kitchen or lavatory faucet is replaced, it will also include risers. Replace all angle stops. .2. Fixtures: A. Water closets- Deep bowl (round or elongated per EDA request).American Standard - Hydra; Eljer—Titan; Kohler; or equal. Handicap (17" high). Must be rated at no more than 1.6 gallons per flush. GREEN OPPOR7 UNITY Use of a high-efficiency toilet that uses less than 1.6 gallons per flush is recommended. B. Bathtubs- 5' pressed steel-American Standard; Kohler, or equal C. Lavatories—American Standard, Kohler, or equal. D. Kitchen Sinks-Single or double compartment enameled cast iron - Kohler or equal; Single or double compartment stainless steel (7"depth, 20 gauge minimum thickness) - Sterling or equal. E. Garbage Disposal- Insinkerator— Badger 2, Y2 HP (3 year warranty) or equal. F. Laundry Sinks-American Shower& Bath, or equal. G. Faucets i. Lavatory- Delta, Peerless, Kohler, or equal. ii. Tub/Shower Diverter- Price Pfister, Kohler, or equal. iii. Shower- Price Pfister, Kohler, or equal. iv. GREEN OPPORTUNITY. Provide low flow faucets and shower heads or fit standard faucets with a Now reducing aerator. H. Bathtubs-5' Lasco; Hess Co; or equal. I. Tub Wall Kits- Plaskolite, Elite; Nova, Seville, or equal. J. Shower- Lasco, or equal. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 26 of 28 K. WATER HEATERS: i. Shall be Reliance; Galaxie; Whirlpool; or equal, with an eight(8) year warranty. Size shall be as required to service property. ii. All shall have pressure/temperature relief valve with a drain line to the outside; or if located on a concrete floor in center of house - pressure/temperature relief valve and drain line shall be installed per Building and Safety requirements. iii. All units shall be secured to walls. iv. All units shall be insulated. V. GREEN OPPORTUNITY Water heater should have a high-efficiency rating. 9020 - Domestic Water Distribution .1. Each dwelling shall be provided with a continuing and sufficient supply of safe water under adequate pressure and of appropriate quality for all household uses, and one that will not impair the functioning or durability of the plumbing system or attachments. .2. Connection shall be made to a publicly owned or publicly controlled water supply system that is adequate to serve the demands of the project. .3. Provide all connections to risers or fixtures from top to mains so that the entire system can be drained at low point. .4. Provide hot water supply to all fixtures except water closets. .5. Support piping from the building structure by means of hangers to maintain required grading and pitching of lines and to prevent vibration. .6. GREEN OPPORTUNITY: All hot water lines shall be insulated. 7. GREEN OPPORTUNITY: Consider the use of PEX piping. .8. GREEN OPPORTUNITY Provide a single-throw shut-off valve at service to clothes washing machines. If machine located above a livable space, provide a floor drain and shower pan under the washing machine. 9030 - Sanitary Waste .1. Roto Root(clean) all drain lines to street through clean-out cap, roof vent, etc. .2. Each dwelling shall be provided with a water-carried system adequate to dispose of domestic wastes in a manner which will not create a nuisance or endanger the health of the occupants or the public. .3. Connection shall be made to a publicly owned or publicly controlled system that is adequate to serve the needs of the project. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 27 of 28 9100 - Heating, Ventilating, and Air Conditioning (HVAC) 9110— Heating and Ventilating .1. Heating and ventilating equipment shall be Trans; Bryant; Carrier; or equal, as appropriate to the situation. .2. GREEN OPPORTUNITY: Equipment should be rated as high effieciency. .3. GREEN OPPORTUNITY: Evaluate existing heating and ventilation system and down size or reconfigure to be more efficient. Do not oversize equipment. .4. GREEN OPPORTUNITY. Consideration should be given to using equipment that provides alternatives to conventional refrigerant, such as non ozone depleting HFC refrigerants. 5. GREEN OPPORTUNITY. Provide ceiling fans in bed rooms and living spaces. .6. Provide wall thermostat with complete vent system, attic shield, roof jack, and gas piping/shut-off valve. 7. GREEN OPPORTUNITY Install programmable thermostats with both daytime and nighttime setbacks. Separate control of different spaces into zones so that the unit works more efficiently. 8. GREEN OPPORTUNITY. Provide duct cleaning prior to turn over .9. Install in an approved manner and location. .10. Crawl Space Ventilation: A. The space between the bottom of the floor joists and the earth under any building (except such space as is occupied by a basement or cellar) shall be provided with a sufficient number of ventilating openings through foundation walls or exterior walls to ensure ample ventilation. Such openings shall be covered with a corrosion-resistant wire mesh with a mesh size not greater than 1/2 in. nor less than 1/4 in. in any dimension. The minimum net area of ventilating openings shall not be less than 1 sq. ft. for each 150 sq. ft. of crawl space area. B. One ventilating opening shall be within 3 ft. of each corner of each building where such openings are required. .11. Attic Space Ventilation A. Cross ventilation shall be provided for each separate space. Ventilation openings shall be protected against the entrance of rain and snow. B. The ratio of the total net free ventilation area to the area of ceiling shall be not less than 1/150, except that the ratio may be 1/300 if: i. A vapor retarder having a transmission rate not exceeding one perm is installed on the warm side of the ceiling; ii. Between 25 and 50 percent of the required ventilating area is provided by vents located in the eaves or cornices with the balance of the required ventilation provided by ventilators located at least 3'-0" above the vents in the eaves or cornices; or City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 28 of 28 iii. The attic space is accessible and suitable for future habitable rooms or walled-off storage spaces have at least 50%of the required ventilating area located in the upper part of the ventilated spaces as near the high point of the roof as practicable and above the probable level of any future ceiling. 9200 — Fire Protection Systems 9210 — Fire Protection Specialties Provide smoke detectors that are U.L. approved; First Alert SAI50LT, or equal. Hard wire will have battery back-up. 2. GREEN OPPORTUNITY. Provide carbon monoxide detectors. 9300 - Electrical Systems 9310 - Electrical Service and Distribution .1. When required, provide a new electrical service box/meter. All existing circuits shall be checked out and split as required. All new loads, outlets, lights, etc., must be on additional circuits, unless prior approval is received from the EDA. .2. Electrical Service installed at location shall be as recommended by Edison Company. .3. Check all services and verify all electrical service, circuits (marking panel if not done); replacing all faulty outlets, switches, damage and missing cover plates; for house and garage. .4. When encountering non-complying wiring, it is to be removed in its entirety. This is to include boxes, lights, old panels(unless used for junction box), etc.; and to include repair, patching, and painting of all areas affected (to match existing)--ceilings,walls, etc.All new wiring shall be concealed within walls, ceilings unless approval from the EDA is obtained prior to installation. 5. GREEN OPPORTUNITY. All bulbs shall be fluorescent. No incandescent lighting will be allowed. - 6 GREEN OPPORTUNITY. Avoid recessed lighting. When required use insulation- contact fixtures that seal tightly and allow insulation to be packed against them. .7. GREEN OPPORTUNITY., Install dimmer switches at all living areas. Restmoms shall have motion detector switches. .8. GREEN OPPORTUNITY All low voltage (telephone, data, television) shall be run in conduits to provide for future expansion and/or replacement. n AFFORDABLE HOUSING SOLUTIONS OF SAN BERNARDINO, INC. DEVELOPMENT AGREEMENT FOR INTERMEDIARY SERVICES [INLAND EMPIRE CONCERNED AFRICAN AMERICAN CHURCHES] This Development Agreement for Intermediary Services (the "Agreement") is made and entered into as of March 15, 2010, by and between Affordable Housing Solutions of San Bernardino, Inc. ("AHS"), a California 501(c)(3) public benefit corporation, and Inland Empire Concerned African American Churches, a California 501(c)(3) public benefit corporation, ("Consultant"). NOW, THEREFORE, IN CONSIDERATION OF THE COVENANTS AND MUTUAL PROMISES CONTAINED HEREIN AND FOR SUCH OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED, THE PARTIES HERETO AGREE AS FOLLOWS: 1. Supervision of Consultant. The AHS officers and or their assignee's designated in Exhibit "F" attached hereto (collectively, the "AHS Representatives") shall be responsible for the direction of any work to be performed by the Consultant and any other consultants or subconsultants to AHS under this Agreement. The Consultant shall not undertake any work under the terms of this Agreement, unless instructed to do so by any one of the AHS Representatives. No other AHS representative is authorized by AHS to request services from the Consultant, pursuant to this Agreement. Approval by any one of the AHS Representatives shall constitute approval by AHS. 2. Term of Agreement. The term of this Agreement shall commence on the date first appearing in this Agreement (the "Effective Date") and will terminate six (6) months after this date, unless earlier terminated as provided in this Agreement. AHS will have the option to extend the term of this Agreement at the sole option and discretion of AHS with the written consent of the Consultant. AHS reserves the right through the actions of the Chief Executive Officer or the Chief Operating Officer of AHS to terminate this Agreement at any time either with or without cause and at the sole convenience of AHS upon delivery of notice of termination to the Consultant; provided, however, that upon the effective date of any such termination, AHS shall be responsible to pay and/or reimburse the Consultant for all services, materials and supplies as may have been furnished to AHS prior to the date of the termination of this Agreement in accordance with the Scope of Services as referenced in Section 3. 3. Scope of Consultant Services. AHS hereby retains the Consultant to provide the professional consulting services set forth in the Scope of Services attached hereto as Exhibit "E" and incorporated herein by this reference. The Consultant hereby agrees to perform the work set forth in the Scope of Services, in accordance with the terms of this Agreement. The Consultant shall perform the services as set forth on said Scope of Services within the time periods to be identified by the appropriate AHS Representative. The Consu nt shall comply with those laws, regulations or ordinances governing fair housing and equal pportunity practices and the • 1- P'.NgendeaUgede AnuAmemeWgcMa AnecMieouUgmicAmmtl 3010�0J-111!`ffA".MC Development Agreemeno FiuI.E : abatement of lead-based paint, asbestos and mold practices as required under the Neighborhood Stabilization Program ("NHS") promulgated by the United States Department of Housing and Urban Development("HUD")pursuant to the provisions of the Housing and Economic Recovery Act of 2008, Public Law 110-289 — July 30, 2008, Title III — Emergency Assistance for the Redevelopment of Abandoned and Foreclosed Homes, Section 2301, et seq., as the same may be hereafter amended, restated or supplemented from time-to-time, and the Notice of Allocations, Application Procedures, Regulatory Waivers Granted to and Alternative Requirements for Emergency Assistance for Redevelopment of Abandoned and Foreclosed Homes Grantees under the Housing and Economic Recovery Act, 2008 issued by HUD and found at the Federal RegisterNol. 73, No. 194/Monday, October 6, 2008/Notices, as the same may be hereafter amended, restated or supplemented from time-to-time(collectively,the"NSP Regulations") 4. Payment by AHS for Work Performed by the Consultant. A. AHS shall compensate the Consultant for completion of the services described in the Scope of Services set forth in Exhibit `E", "Scope of Services", in accordance with the guidelines stipulated in Exhibit"H", "Consultant Payment and Reimbursement". B. The compensation designated in subsection 4.A. shall be the "Total Fee" for the performance of the work and the delivery of the final work product materials, as set forth in the Scope of Services for each property acquired directly or indirectly by AHS for which the services were provided by the Consultant in accordance with this Agreement. The Total Fee shall include, but not be limited to, the materials and salaries of all subcontractors and vendors retained by the Consultant and all employees of the Consultant to perform work pursuant to this Agreement and all general overhead expenses of the Consultant inclusive of all costs and expenses incurred for mileage, travel, graphics, telephone, printing, fax transmission, postage, copies and such other expenses related to completion of the work set forth in the Scope of Services. C. The Consultant shall invoice AHS for eligible predevelopment expenses and work performed by the Consultant under this Agreement through funds draw requests submitted by the Consultant in accordance with AHS's policies and procedures, and approved by AHS, on a monthly basis, or on a more frequent basis if requested by the Consultant and approved by AHS, with the first draw request occurring no earlier than two(2)weeks after the Effective Date. D. The Consultant shall submit draw requests under this Agreement to: Affordable Housing Solutions of San Bernardino, Inc. Attention: Chief Operating Officer 201 North"E" Street, Suite 301 San Bernardino, California 92401 E. The Consultant's funds draw request shall set forth the cost of any direct labor and materials incurred in performance of the Scope of Services, the appropriate portion of fees described in Exhibit "H", as applicable, the cost of any permits or licenses required to perform -2- F.4lgendas\Agenda Anac cae UVe Anachmmo\Agmla-Amaod20IM3-1510 MCAAC Dewla=M Agw -FinaAm the Scope of Services, and any other costs approved by AHS. Each draw request submitted by the Consultant shall include copies of all third party invoices for any subcontractors or other consultants hired, any invoices for materials, any conditional and unconditional lien releases for invoices submitted by subcontractors or other consultants, and any forms or documents provided by AHS that AHS requires to be included as part of the Consultant's draw request. All funds draw requests shall be signed by the Consultant and approved and signed by an AHS Representative or an AHS designated agent. Upon receipt of the Consultant's draw request package, AHS shall review the draw request package and notify the Consultant whether it approves of the draw request within three (3) working days after receipt of the draw request. AHS shall issue a check or wire transfer to the Consultant equal to the total amount of those costs included in the draw request and approved by AHS. 5. Records Retention. Records, maps, field notes and supporting documents and all other records pertaining to the use of funds paid to the Consultant hereunder shall be retained by the Consultant and shall be made available to AHS for examination and for purposes of performing an audit for a period of five (5) years from the date of expiration or termination of this Agreement or for a longer period, as required by law. Such records shall be available to AHS and to appropriate county, state or federal agencies and officials for inspection during the regular business hours of the Consultant. If the Consultant does not maintain regular business hours, then such records shall be available for inspection between the hours of 9 a.m. and 5 p.m. Monday through Friday, excluding federal and state government holidays. In the event of litigation or an audit relating to this Agreement or funds paid to the Consultant by AHS under this Agreement, such records shall be retained by the Consultant until all such litigation or audit has been resolved. 6. Indemnification. The Consultant shall defend, indemnify and hold harmless AHS, its officers, employees, representatives, and agents (collectively, the "Indemnified Parties") from and against any and all actions, suits, proceedings, claims, demands, losses, costs and expenses, including audit fees and other audit related costs, legal costs and attorneys fees, for injury or damage of any type claimed as a result of the acts or omissions of the Consultant, its officers, employees, subcontractors and agents, arising from or related to performance by the Consultant of the work required under this Agreement; provided, however, in no event shall the Consultant be liable to the Indemnified Parties in the event that any such actions, suits, proceedings, claims, demands, losses, costs and expenses result from the gross negligence, fraudulent conduct or willful misconduct of the Indemnified Parties, or any one of them. Moreover, the Consultant shall not be liable to the Indemnified Parties for defects not normally identified. Notwithstanding the foregoing, under no circumstances shall the Consultant be liable to the Indemnified Parties as a result of the failure of AHS to provide to the Consultant any amounts due to the Consultant in accordance with this Agreement, unless such failure was the result of gross negligence, fraudulent conduct or willful misconduct on the part of the Consultant. -3- P:W4rasWgendaAYacdmenuApndaAM nn Ma\Ag FAra M201OM-15-10 IECAAC Oevelopmem Agmemem-Finaldoc Notwithstanding anything to the contrary provided in this Agreement, it is specifically understood and agreed, such agreement being a primary consideration for the execution of this Agreement by the Consultant, that there shall be absolutely no personal liability on the part of any shareholder, director, officer, manager, member or employee of the Consultant with respect to any of the terms, covenants and conditions of this Agreement. The Agency hereby waives all claims, demands and causes of action against the shareholders, directors, officers, members or employees of the Consultant in the event of any breach by the Consultant of any of the terms, covenants and conditions of this Agreement. 7. Insurance. The Consultant shall maintain insurance, as set forth in Exhibit "G" to this Agreement, throughout the term of this Agreement, or in lieu of this insurance coverage, the Consultant shall require its designated General Contractor to maintain such insurance as set forth in Exhibit "G" and name the Consultant, AHS and the Redevelopment Agency of the City of San Bernardino ("Agency") as Additional Insureds under such insurance. The Consultant shall remain liable to AHS pursuant to Section 6 above to the extent the Consultant is not covered by applicable insurance for all losses and damages incurred by AHS that are caused directly or indirectly through the actions or inactions, willful misconduct or negligence of the Consultant in the performance of the duties incurred by the Consultant pursuant to this Agreement. AHS shall maintain insurance against loss or damage to real property under an "all risk" or "special form" property insurance policy, which shall include coverage against all risks of direct physical loss, including loss by fire, lightning, terrorism, ordinance or law, and other risks normally included in the standard ISO special form (which shall include flood insurance if the property is located within a flood hazard area and which shall include earthquake insurance if the property is located in an area where earthquake insurance is customarily maintained for similar residential property). Such insurance shall be in amounts sufficient to prevent the Consultant from becoming a co-insurer under the policy, and in any event, after application of deductible, in amounts not less than 100%of the full insurable replacement cost. 8. Press Releases. Press or news releases, including photographs or public announcements, or confirmation of the same related to the work to be performed by the Consultant under this Agreement shall only be made by the Consultant with the prior written consent of AHS, which consent shall not be unreasonably withheld. This Section 8 does not apply to the advertising or other promotional materials used by the Consultant to sell the Rehabilitated Home. 9. Default and Remedies. A. The occurrence of any of the events listed in Exhibit "J", Section A.(1) through (7), shall after the giving of any written notice described therein, constitutes a default by the Consultant hereunder("Event of Default"). J. Upon the occurrence of an Event of Default,AHS may, in its sole discretion,take any of tl e actions listed in Exhibit'J", Section B.(I)through(7). -4- P?A,m ee p ,L AVecM1menuUgenEa Anxhm<nta\Agnola-AmeM 201NLI-15.10 @CAAC Devebpmem Agrtemem-Fiml.EOc C. Any failure or delay by a party in asserting any of its rights or remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a default. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties under this Agreement are cumulative and the exercise by any party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. D. The Consultant has the right to implement the remedies in Exhibit 4eJ", Section C.(1) and (2), upon the default or failure of AHS to meet any of its obligations under this Agreement without curing such failure within thirty (30) calendar days after receipt of written notice of such failure from the Consultant specifying the nature of the event or deficiency giving rise to the default and the action required to cure such deficiency. 10. Termination. A. This Agreement may be terminated by either party for any reason by giving the other party fifteen (15) calendar days' prior written notice. AHS shall pay the Consultant for all work authorized by AHS and completed, prior to the effective termination date. B. In the event of a termination of this Agreement, the Consultant shall provide all documents, notes, maps, reports, data or other work product developed in performance of the Scope of Services of this Agreement to AHS within ten(10)calendar days after such termination and without additional charge to AHS. C. In the event of the expiration or early termination of this Agreement for any reason, AHS shall pay and/or reimburse the Consultant for all services, materials and supplies as may have been furnished to AHS prior to the date of the termination of this Agreement. 11. Notice. All notices given hereunder shall be in writing. Notices shall be presented in person or by certified or registered United States Mail, return receipt requested, postage prepaid or by overnight delivery by a nationally recognized delivery service to the addresses set forth below. Notice presented by United States Mail shall be deemed effective on the third (3`d) business day following the deposit of such Notice with the United States Postal Service. This Section 11 shall not prevent the parties hereto from giving notice by personal service or telephonically verified fax transmission, which shall be deemed effective upon actual receipt of such personal service or telephonic verification. Either party may change their address for receipt of written notice by notifying the other party in writing of a new address for delivering notice to such party. CONSULTANT: Inland Empire Concerned African American Churches Attention: President 1777 West Baseline Road San Bernardino, CA 9241);, -5- P:UgendaeNgeMaA &memsUpMe Atl mms\A mts-Ammd 2010101-15-10 MCAACD Iopn lAgmmmt-Fiml dm AHS: Affordable Housing Solutions of San Bernardino, Inc. Attention: Carey K. Jenkins, Chief Operating Officer 201 North"E" Street, Suite 301 San Bernardino, California 92401 Phone: (909) 663-1044 Fax: (909) 888-9413 12. Comntiance with Law. The Consultant shall comply with all local, state and federal laws, including,but not limited to, environmental acts, rules and regulations applicable to the work to be performed by the Consultant under this Agreement. The Consultant shall maintain all necessary licenses and registrations for the lawful performance of the work required of the Consultant under this Agreement. 13. Nondiscrimination. The Consultant shall not discriminate against any person on the basis of race, color, creed, religion, natural origin, ancestry, sex, marital status or physical handicap in the performance of the Scope of Services of this Agreement. Without limitation, the Consultant hereby certifies that it will not discriminate against any employee or applicant for employment because of race, color, religion, sex, marital status or national origin. Further, the Consultant shall promote affirmative action in its hiring practices and employee policies for minorities and other designated classes in accordance with federal, state and local laws. Such action shall include, but not be limited to,the following: recruitment and recruitment advertising, employment, upgrading and promotion. In addition, the Consultant shall not exclude from participation under this Agreement any employee or applicant for employment on the basis of age,handicap or religion in compliance with state and federal laws. 14. Consultant and each Subcontractor are Independent Contractors. The Consultant shall at all times during the performance of any work described in the Scope of Services be deemed to be an independent contractor. Neither the Consultant nor any of its subcontractors shall at any time or in any manner represent that it or any of its employees are employees of AHS or any department, commission or subsidiary entity of AHS. AHS shall not be requested or ordered to assume any liability or expense for the direct payment of any salary, wage or benefit to any person employed by the Consultant or its subcontractors and vendors to perform any item of work described in the Scope of Services. The Consultant is entirely responsible for the immediate payment of all subcontractor liens. 15. Severability. Each and every section of this Agreement shall be construed as a separate and independent covenant and agreement. If any term or provision of this Agreement or the application thereof to certain circumstances shall be declared invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to circumstances other than those to which it is declared invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. •6- e.Upe \Agm "admefflMVMe Mwhm u\Apmu-A 20IOb5-15-10 Q•C D bpm mAereemem-Fim dM 16. Entire Agreement. This Agreement constitutes the entire agreement between the parties. This Agreement supersedes all prior negotiation, discussions and agreements between the parties concerning the subject matters covered herein. The parties intend this Agreement to be the final expression of their agreement with respect to the subjects covered herein and a complete and exclusive statement of such terms. 17. Amendment or Modification. This Agreement may only be modified or amended by written instrument duly approved and executed by each of the parties hereto. Any such modification or amendment shall be valid,binding and legally enforceable only if in written form and executed by each of the parties hereto, following all necessary approvals and authorizations for such.execution. Any such amendment or modification to be effective as to AHS must be approved by its officers or designated representatives. 18. Governing Law. This Agreement shall be governed by the laws of the State of California. Any legal action arising from or related to this Agreement shall be brought in the Superior Court of the State of California in and for the County of San Bernardino. 19. Non-Waiver. Failure of either party to enforce any provision of this Agreement shall not constitute a waiver of the right to compel enforcement of the same provision or any remaining provisions of this Agreement. 20. Assip_,nment. This Agreement shall be assignable by the Consultant only if the Consultant obtains the prior express written consent of AHS, which consent may be withheld by AHS in its sole discretion. Notwithstanding anything to the contrary in this Agreement, no purported assignment of this Agreement shall be effective if such assignment would violate the terms, conditions and restrictions of any applicable governmental restrictions. AHS' consent to such assignment shall be expressly conditioned upon (i) the assignee's execution of such documents as required by AHS in its sole discretion, including, without limitation, any and all documents deemed necessary by AHS to provide for said assignee's assumption of all of the obligations of the Consultant hereunder and under any documents executed by the Consultant in connection herewith, and (ii) AHS' approval of the financial and credit-worthiness of such proposed assignee and the assignee's ability to perform all of the Consultant's obligations under this Agreement and all documents executed in connection herewith, as may be determined by AHS at its sole discretion. 21. Representations of Persons Executing the Agreement. The persons executing this Agreement warrant that they are duly authorized to execute this Agreement on behalf of and bind the parties each purports to represent. 22. Execution in Counterparts. This Agreement may be executed in one (1) or more counterparts, each of which will constitute an original. 23. Effectiveness of the Agreement as to AHS. This Agreement shall not be binding on AHS until signed by an authorized representative of the Consultant, and approved and executed by the Chief Executive Officer of AHS or his designee. The Agency shall provide -7- PUgeM XAM"AlNChmeMM nde Att¢60mmtsV ma-Amend 39IOW3-15-10 MCAAC Development Agmemem-Firo doc the Consultant with written notice of the approval of this Agreement upon Community Development Commission of the City of San Bernardino("Commission")action. 24. Conflicts of Interest. The Consultant hereby represents that it has no interests adverse to AHS or the Agency, at the time of execution of this Agreement. The Consultant hereby agrees that, during the term of this Agreement, the Consultant shall not enter into any agreement or acquire any interests detrimental or adverse to AHS or the Agency. Additionally, the Consultant hereby represents and warrants to AHS and the Agency that the Consultant and any partnerships, individual persons or any other party or parties comprising the Consultant, together with each subcontractor who may hereafter be designated to perform services pursuant to this Agreement, do not have and, during the term of this Agreement, shall not acquire any property ownership interest, business interests, professional employment relationships, contractual relationships of any nature or any other financial arrangements relating to AHS or the Agency, property over which AHS or the Agency have jurisdiction or any members or staff of AHS or the Agency that have not been previously disclosed in writing to AHS, and that any such property ownership interests, business interests, professional employment relationships, contractual relationships of any nature or any other financial arrangements will not adversely affect the ability of the Consultant to perform the services to AHS as set forth in this Agreement. AHS acknowledges and agrees that the foregoing shall not prohibit the Consultant or any affiliates thereof from managing or applying for funds granted by HUD pursuant to the NSP and allocated or awarded to jurisdictions outside of the City of San Bernardino, California, or from receiving a direct grant of funds from HUD pursuant to the NSP. 25. Non-Exclusivity. This Agreement shall not create an exclusive relationship between AHS and the Consultant for the services set forth in Exhibit `B" or any similar or related services. AHS may, during the term of this Agreement, contract with other consultants for the performance of the same, similar or related services as those that may be performed by the Consultant under this Agreement. AHS reserves the discretion and the right to determine the amount of services to be performed by the Consultant for AHS under this Agreement, including, not requesting any services at all. This Agreement sets forth the terms upon which any such services will be provided to AHS by the Consultant, if such services are requested by AHS, as set forth in this Agreement. 26. Consequential Damages and Limitation of Liability. AHS and the Consultant agree that except as otherwise provided in this Section 26, in no event will either be liable to the other under this Agreement for any damages including, but not limited to, special damages, loss of revenue, loss of profit, operating costs or business interruption losses, regardless of cause, including, breach of contract, negligence, strict liability or otherwise. The limitations and exclusions of liability set forth in this Section 26 shall apply regardless of fault, breach of contract, tort, strict liability or otherwise of the Consultant and AHS, their employees or subconsultants. 27. Business Registration Certificate. The Consultant warrants that it possesses, or shall obtain immediately after the execution and delivery of this Agreement, and maintain during the period of time that this Agreement is in effect, a business registration certificate pursuant to •8- PUgend \Age aAuachmmtMge z wU ema�eed 30IM3-15-10MCAACO Iopmem Ageement-Fiml doc Title 5 of the City of San Bernardino Municipal Code, together with any and all other licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to be maintained by the Consultant to conduct its business activities within the City. [SIGNATURES ON FOLLOWING PAGE] -9- PIApndss�g6 aAffnh rnMgce aAttwhmrntaU6mm-Amend"IOW3-15-101ECAAC Development Ag 1.11-Fii doc IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date indicated next to the authorized signatures of the officers of each of them as appear below. AHS Affordable Housing Solutions of San Bernardino, Inc. a California 501(c)(3)public benefit corporation Dated: By: Emil A. Marzullo, Chief Executive Officer Approved as to Form: By: Timothy J. SabI4 Agency Counsel CONSULTANT Inland Empire Concerned African American Churches a California 501(c)(3)public benefit corporation Dated: By: Name: Title: -10- P:AgeoNS Ig AliachmentsU6emla At.hmems ,.r AmeW 20IM-15-10I C CDercbpmem Ag .c I-Fml.Cac Exhibit"A" Legal Description -11- P1AVe . Benda AnuhmemsUgaMe AtuchmmuUgmneAmwdZOtObI-IS-IO�CMCUwdopmem Ageement-Firel.doc s; orduhumW.. PJU-3420554 Page Wm0 : 6 LEGAL DESCRIPTION Real property In the City of San Bernardino,County of San Bernardino,State of California, described as follows: LOT 42,TRACT NO. 3538,IN THE CITY OF SAN BERNARDINO,COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,AS PER PLAT RECORDED IN BOOK 46 OF MAPS PAGE 56, RECORDS OF SAID COUNTY. APN: 0143-133-42 i RistAmerlon Tit/e Exhibit°Bf5 Total Development Cost Pro Forma -12- P Age s4lgeMa Anechm t S VMe AnacM1mmtsUgmn-Amend 20IM3-15.10IHC C 10pmem Ag Mt-Fivl.dpc EXHIBIT B TO DEVELOPMENT AGREEMENT TOTAL DEVELOPMENT COST PRO FORMA Acquisitor, Costs List Price 44,500 Appraisal value before rehab Discount 445 Amount of discount allowed by the seller Purchase Price 44,055 Difference between List Price and Discount Closing Costs 531 Escrow and Title Fees, etc. Subtotal Acouisition Costs 44,586 Rehabilitation Costs Direct Rehabilitation 54,460 Cost estimated to complete scope of work Contingency 5,446 Property Management Fee 1. ':'13;592` Intermediary fixed fee for managing property Subtotal Rehabilitation Costs 2. 73,498 Indirect Costs Property Taxes 175 Property taxes incurred during holding period Homebuyer Qualifying Fee 3 .x$00 Intermediary fixed fee per homebuyer General Contractor Fee101acy Co. 4. Intermediary Fee: fixed % of Dir. Rehab.+ Contingency Sales Commission 5. �``,4500 Intermediary Fee: % of EDA Final Price Sales Closing Costs 2,500 Escrow, title fees,taxes etc. at sale closing. Insurance Subtotal Indirect Costs 6. 16,543 Financing Costs Construction Loan Interest 7. i - -:,0 Interest paid on construction/rehab loan Loan Origination Fee 8 `7— 0 Fee for construction/rehab loan Subtotal Financing Costs 9. - TOTAL DEVELOPMENT COST 10 134,627 Sales Price Estimatd Rehabilitated Market Sales Price 75,000 Estimated value of home after rehabilitation Total Development Cost 11. 134,627 Total cost calculated above (No. 10) EDA FINAL SALES PRICE 12 75,000 The lower of market sales price or tot. dev. cost Intermediary Proceeds Property Management Fee 13. 13,592 From No. 1 above General Contractor Fee/O.H. 14. 8,568 From No. 3 above Homebuyer Qualifying Fee 15. 800 From No. 4 above Sales Commission Fee 16. 4,500 From No. 5 above Reimbursement Comet. Loan Int. 17. - From No. 7 above Reimbursement Loan Orign. Fee 18. - From No. 8 above TOTAL INTERMEDIARY PROCEEDS 19 27,460 Total of 13 through 18 above Exhibit "C" Rehabilitation Scope of Work -13- P:VAg sUpe "=hma sUpMa Atu mmtsUo�A 201"3-1S10=F CD"gmem Ag M-Fiml.dac EXHIBIT "C" TO DEVELOPMENT AGREEMENT REHABILITATION SCOPE OF WORK CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY HOUSING AND COMMUNITY DEVELOPMENT DEPARTMENT COST ESTIMATE WORKSHEET Date: January 27, 2010 Time: Location: 1519 W. Virginia Street, San Bernardino, CA 92411 Job Duration: Estimator: 1 TEMPORARY FACILTIES 2 Remove Chain Line Fence 1 EA 180.00 3 EA 4 Other 5 SITE WORK 6 Final Cleaning 150.00 7 Exterior Demolition 8 Grading SF 9 Excavation SF 10 Remove damaged flat concrete in rear yard 1 EA 1,500.00 11 Approach: Remove and Install New SF 12 Sidewalk: Remove and Install New SF 13 Hazardous Waste Remidiation 14 15 New Wrought Iron Fence LF 16 New Chain Link Fence LF 17 New Wood Fence 210 EA 3,150.00 18 Remove/Install Block Wall LF 19 LANDSCAPING 20 Remove and/or Trim Trees 1 EA 700.00 21 Install Sprinkler System 1 EA 1,500.00 22 Hydro Seed Yard } SF 23 Level Front Yard 1 EA 100.00 24 INTERIOR DEMOLITION 25 Repair all damaged and removed Interior 1 EA 1,200.00 Plaster and Drywall 26 Removal of other items 27 HAZARDOUS COMPONENTS ABATEMENT 28 Lead 29 Asbestos 30 Mold 31 Other 32 33 FOUNDATIONS 34 35 Replace soffit, gable and crawlspace screens 1 ALL All line items will be performed according to City of San Bernardino Economic Development Stabilization Program Building Standards 36 Replace and Install New Access Door EA 100.00 37 Construct New Access Well with Door EA 100.00 38 Footings SF 39 Concrete SF 40 FRAMINGIWOOD 41 Studs LF 42 Other LF 43 EXTERIOR 44 Sandblast 1 SY 3,600.00 45 Colorcoat, repair all cracks, holes and } 1 46 damage areas BY 47 Wrap and Stucco BY 48 Insulation SF 49 EXTERIOR WINDOWS 50 Replace all windows with low-e 6 EA 2,040.00 51 Missing Putty EA 52 Install new screens EA 53 Replace broken glass panes EA 54 Remove and Install new aluminum EA 55 Block frame single hung or sliders 56 Replace front security door 1 EA 150.00 57 window EA 58 Aluminum-slider 4'x3' standard frame EA 59 Aluminum-slider 4'x3'block frame EA 60 Aluminum-slider hung 3'x4'standard EA 61 Aluminum-slider hung 3'x4' block EA 62 Aluminum-slider 5'x4' standard frame EA 63 Aluminum-slider 5'x4' block frame EA 64 Aluminum -single hung 3'x5' standard frame EA 65 Aluminum-single hung 3'x5' block EA 66 Aluminum-slider 3'x2' standard EA 67 Aluminum -slider 3'x2' block EA 68 Install vertical blinds on dining, LR & bedrooms 4 EA 300.00 69 EXTERIOR DOORS 70 Garage: Remove and Install ALL 650.00 71 Garage side door,jamg, casing & lockset 1 EA 325.00 72 Entry Door EA 325.00 Replace front door casing 1 EA 73 Replace mail boxt door 1 EA 74 ROOFING 75 Si. Complete tear off roof and sheathing 1 76 Installation of aluminized sheathe 1 77 Install compostion roof to code-30 Yr. 1 5,150.00 78 Replace all facia with new six inch fascia 1 450.00 79 Remove all Install gutter and 80 downspouts LF 180.00 81 INTERIOR CONSTRUCTION All line items will be performed according to City of San Bernardino Economic Development Stabilization Program Building Standards 82 Install R-30 Insulation in attic 1 EA 1,500.00 83 Drywall SF 84 Hollow-core interior door withhinges and 3 EA 465.00 Installation in an existing jamb. Hardboard wood-textured and embossed 85 Repair bedroom closet doors 1 EA 150.00 86 Shower doors EA 87 Tub Enclosure EA 88 Laundry door EA 89 Other EA 90 FLOORING 91 Carpet Allowance 1 BY 1,200.00 92 Ceramic Tile SF 93 Linoleum 1 SY 600.00 94 Hardwood SF 95 Other 96 PAINTING 97 Prep and paint interior complete two coats 1 EA 1,250.00 98 Stains(kitchen, bath and other cabinets) SF 99 Repair all damaged SF 100 Paint exterior wood 1 EA 850.00 101 CARPENTRY,CABINETS AND MILLWORK 102 Remove and Install new cabinets 1 2,850.00 103 Install and Replace Formica Counter tops 1 EA 650.00 104 Repair framing and plaster as necessary 1 EA 150.00 Repair hall closet doors&cabinets 1 EA 200.00 105 PLUMBING 106 Bathtub&Shower surround 1 EA 480.00 107 Lavatory 1 EA 250.00 108 Kitchen Sink 1 EA 160.00 109 Garbage Disposal 1 EA 80.00 110 Laundry Sink EA 50.00 111 Faucets kitchen, bath &shower 3 EA 350.00 112 Bathtubs EA 113 Tub Wall Kits EA 114 Shower EA 115 Water Heater 1 EA 400.00 116 Roto Root(clean)all drain lines to street ALL 150.00 117 Remove and Install new EA 150.00 118 Anti-syphon hose bibbs Replace cleanout cover at kitchen exterior 1 EA 50.00 Repair water leak at rear hose bib 1 EA 100.00 119 Interior water supply ball valve with 1 EA 150.00 pressure valve 120 HVAC 121 Install new system lincluding ducts& 1 EA 5,900.00 thermostat 122 Repair duct work LF All line items will be performed according to City of San Bernardino E, gomic Development Stabilization Program Building Standards 123 Repair HVAC Unit EA 124 Replace HVAC Unit EA 125 Remove wall heater 1 50.00 126 Other 127 ELECTRICAL 128 Remove and Install new light fixture 7 EA 3,700.00 129 Remove and Install new GFCI outlets EA 130 Remove and Install circuittoutlet EA 131 Install new GFCI outlet 3 EA 132 Remove and Install new circuit breaker EA 133 Remove and Install new wiring LF (included with Item#45) 134 Cover Plates EA 50.00 135 Smoke detectors EA 375.00 136 Other 137 138 MISCELLANEOUS 139 Install new medicine cabinet, mirror, towel 1 EA 100.00 140 & paper holders 141 Hood vent&fan, stove, dish washer, garbage 1,500.00 142 disposal and (ironing board cabinet-included in Item#49) 143 (allowance) 1 EA 162 Supervision 3,200.00 163 164 165 166 SUBTOTAL $48,960.00 Insurance Burden (General Liability&Workers Compenssation 2.5%) OVERHEAD& PROFIT (15%) $8,568.50 GRAND TOTAL GENERAL CONTRACTOR'S BASE BID $57,528.50 APPROVED OPTIONS 1 Remove Existing tile and Install Slate at Front Porch 650.00 2 Install Rear Yard Sprinklers 1,000.00 3 Repipe with Copper Plumbing 3,600.00 4 Replace Interior Base Moulding 250.00 OPTIONS TOTAL $5,500.00 All line items will be performed according to City of San Bernardino Economic Development Stabilization Program Building Standards Exhibit"D" Project Timeline -14- PUpMes\AgeM Aaech=eN ge aAttechmen[sUgmLL-Amm41010N3-15-10 WF CDewlapmenl Agree -FiuI 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 m N N N N M M � N V V N O u'1 tD fp C a C W O O O O O O O O O O O O O O O O O y O O O O O O O O O O O O O O O O O N N N N � •- •- � � � � N N N � N C C •m d LO Z M N M O O M O M M O O W m W o W Q O I.- W Z Z W J Lu a O U J H n Lu X W W m W m m a O_ - N c O a LLI U O m d n E > m r ¢ = m E N O w O O U 3 W °' 0 0 0 0 m e w` >0 c E c - o ` W a N E O O L C N E 1/1 C7 Q J O C C N d Z �+ d o r a 0 a 0 "5 w Q E 0 u o` c m x w a C (n t O w'3 a m ° c °U - `v `' 0 d-E o o mo .'E. w o Q ' N O O E N w y a c 0 0 0 2 N N E > t n = c c o n ` o � i ' ° a iaf co a v o o U a v O a O O 2 Y N A f Exhibit aaE" Scope of Services 1. Secure Property-Ensure that adequate locked fencing is installed on the perimeter of the site when necessary. Board up windows and outer doorways when necessary in order to prevent looting and vandalism of the Rehabilitated Home. 2. Property Management-Maintain utilities service, pay for monthly utilities bill(s) during the holding period (the Consultant will be reimbursed for this cost), interior and exterior appearance and marketability of the Rehabilitated Home as needed. 3. Approved Budget - The approved budget includes the estimate of the costs the Consultant expects to incur in order to complete the Scope of Work defined herein, provided in Exhibit "B" (the "Total Development Cost Pro Forma"). This budget estimate includes all costs associated with the rehabilitation of the Rehabilitated Home, including labor and materials for rehabilitation work, contingency, the Project Management Fee, the General Contractor i Fee/Overhead, the Sales Commission Fee and the Homebuyer Qualifying Fee, includes the j cost of enrolling the prospective buyer of the Rehabilitated Home deemed qualified by the Consultant under the conditions in this Agreement (the "Qualified Homebuyer") in a homebuyer education course administered by an AHS approved third party vendor or organization. 4. Project Timeline - The approved estimated timeline provided in Exhibit "D" sets forth the completion of the various steps involved in the acquisition, rehabilitation and resale of the Rehabilitated Home (the "Project Timeline"). The timeline starts from the point that the selected Consultant enters into the contract for the Rehabilitated Home with AHS through the close of sale to the Qualified Homebuyer. Major steps included in the timeline are construction period, completion of construction, issuance of the Certificate of Completion, start of marketing period for the home, projected number of weeks needed to identify a Qualified Homebuyer,escrow period and close of escrow. 5. Rehabilitation Scope of Work-The approved detailed, line item budget of the costs required to complete the rehabilitation scope of work agreed upon by AHS and the Consultant, provided in Exhibit "C" (the "Rehabilitation Scope of Work") serves as the Consultant's price bid for the Rehabilitation Scope of Work. 6. Manage Rehabilitation Work - Manage the rehabilitation of the Rehabilitated Home to include, but not be limited to: (i)ensuring that all tasks identified in the Rehabilitation Scope -15- P:lMdaMgmda AYaehmemsUgmda A=hmemsV�ASmod 301NA3-15-10 MCMC Ow pmem Agmmem-Fimldm of Work are completed on a timely basis and all work performed satisfies AHS' standards; (ii) conducting weekly on-site project inspections; (iii) managing relationships with all subcontractors and vendors; (iv) obtaining all necessary permits required to complete the Rehabilitation Scope of Work; (v) ensuring that all rehabilitation work complies with all applicable municipal codes; (vi) submitting funds draw requests to AHS in a timely and accurate manner; (vii) paying all sub-contractors hired by the Consultant and all vendors providing materials used in the performance of the Rehabilitation Scope of Work on a timely and accurate basis; and(viii) administering both conditional and unconditional lien releases. 7. Marketing— Market the Rehabilitated Home through advertising and published promotional materials. Adhere to AHS' Affirmative Marketing Guidelines (Please see Exhibit"K"). 8. Identify Qualified Homebuyer- Identify and present prospective homebuyers to be approved by AHS in writing, facilitate adequate homebuyer training and facilitate financing of property which may include Down Payment Assistance from the Agency, pre-qualify the homebuyer for eligibility to purchase the Rehabilitated Home and collect those application documents from the Qualified Homebuyer identified in Exhibit"I", Section"A". In addition, the Consultant is required to make best efforts to ensure that a fixed rate permanent loan secured by a first trust deed ("First Mortgage Loan") is made available to the Qualified Homebuyer at the lowest commercially available rate and most favorable terns. 9. Escrow—Work with the AHS selected title company and manage the escrow process through closing on behalf of the Qualified Homebuyer, ensure that all AHS sale documents are executed, notarized and recorded as needed. 10. Files — Maintain adequate files for the Rehabilitated Home, ensuring compliance with all Neighborhood Stabilization Program requirements, files shall include, but not be limited to, all documents listed in Exhibit "I", and all documents required to verify compliance with the Affirmative Marketing Guidelines stated in Exhibit "K", such as homebuyer waiting lists, copies of advertisements published in local and community newspapers, etc. 11. Appraisal — Work with the AHS designated Appraiser to determine the sales price for the Rehabilitated Home. 12. Environmental - Ensure that all environmental mitigation measures recommended by AHS' Environmental Consultant are carried out as part of the Rehabilitation Scope of Work. Provide proof of completion of these mitigation measures. -16- P4lgendssUgWaAtuchmenlM W.ANChmentsUQnms-Amatl 201=34- 10 MCMC Dm p.Agrtemmt-Fieel.EOc 13. Closing Requirements: A. The Consultant shall cause the closing of the sale of the Rehabilitated Home by following the procedures and complying with the requirements set forth in Exhibit "P", Section A. B. The Consultant shall cause the closing of any Agency Down Payment Assistance Loans, if applicable, in accordance with the procedures and requirements established in Exhibit"I", Section B. 14. Building Standards: The Consultant shall adhere to the building standards stipulated in Exhibit "L" when performing any rehabilitation work on the Rehabilitated Home. -17- PUgnMas\AgeMa AmcM1mennUgeMa AnazhmennUgrmWAmmd 2010\03-15-10@CAACD Iopmai Agramenn Final doc Exhibit"F" ARS Representatives AHS Officers: Emil A. Marzullo, Chief Executive Officer Carey K.Jenkins, Chief Operating Officer Authorized AHS Representatives: Samuel Hughes, Consultant Fernando S. Portillo, Consultant - 18- eugeadm. geamauenmem,wgeadakmenmentsyp ,,nftead WIM3-1s-lDWu CDmWpm, %V�t-FimU< EXHIBIT"G" Insurance Requirements The Consultant and its General Contractor shall maintain insurance policies issued by an insurance company or companies authorized to do business in the State of California and that maintain during the term of the policy a "General Policyholders Rating" of at least A(v), as set forth in the then most current edition of"Bests Insurance Guide," as follows: (1) Automobile Insurance. Comprehensive automobile liability insurance of not less than One Million Dollars ($1,000,000) combined single limit per occurrence for each vehicle leased or owned by the Consultant or its subcontractors and used in performing work under this Agreement. (2) Worker's Compensation Insurance. Worker's compensation coverage in accordance with California workers' compensation laws for all workers under the Consultant's and/or subcontractor's employment performing work under this Agreement. (3) Liability Insurance. AHS requires comprehensive liability insurance, including coverage for personal injury,death,property damage and contractual liability, with a limit of at least One Million Dollars ($1,000,000), including products and completed operations coverage. Said insurance shall be primary insurance with respect to AHS and the Agency. The Consultant shall require and ensure that the Consultant's contractors include AHS and the Agency, as additional insureds on all general liability insurance covering work at the Rehabilitated Home. All insurance policies required of the Consultant or its contractors as provided herein, shall extend the subject insurance coverage to: "The City of San Bernardino, the Redevelopment Agency of the City of San Bernardino and Affordable Housing Solutions of San Bernardino, Inc., their officers officials, attorneys, agents, employees and volunteers" In lieu of directly obtaining the insurance coverage mentioned in this Exhibit"G", the Consultant can require its General Contractor to name the Consultant as an additional insured on the insurance policies obtained by the General Contractor for the purposes of satisfying the insurance requirements herein. Concurrent with the execution of this Agreement and prior to the commencement of any work by the Consultant, the Consultant shall deliver to AHS, copies of policies or certificates evidencing the existence of the insurance coverage required herein, which coverage shall remain in full force and effect continuously throughout the term of this Agreement. Each policy of insurance that the Consultant purchases in satisfaction of the insurance requirements of this Agreement shall name AHS,the Agency and if applicable, the Consultant as an additional insured and shall provide that the policy may not be -19- PV,peM ge AO fflsUre &Att bMMSVg" CM"INOMMO MCAAC 491Wm Ag =Mm Fml cancelled, terminated or modified, except upon thirty (30) days prior written notice to AHS. Failure on the part of the Consultant to procure or maintain the insurance coverage required in this Exhibit "G" for fifteen (15) days or longer shall constitute a material breach of this Agreement pursuant to which AHS may exercise all rights and remedies set forth herein and, at its sole discretion, and without waiving such default or limiting the rights or remedies of AHS, procure or renew such insurance and pay any and all premiums in connection therewith and all monies so paid by AHS shall be reimbursed by the Consultant to AHS upon demand including interest thereon at the rate of ten percent (10%) per annum interest compounded annually from the date paid by AHS to the date reimbursed by the Consultant. The Agency shall have the right, at its election, to participate in and control any insurance claim adjustment or dispute with the insurance carrier. The Consultant's failure to assert or delay in asserting any claim shall not diminish or impair the rights of AHS against the Consultant or the insurance carrier. •20- P:Ugen \Age Me cu sUpe aAtuc ts\Ag ts-Ame 2010\03-15-10 MCMC DevetWg Ag mem-Fiml.doc Exhibit"H" Consultant Payment and Reimbursement The Consultant shall be paid four (4) different fees by AHS. The four (4) fees that the Consultant is eligible to receive are; 1. Project Management Fee; 2. General Contractor Fee/Overhead; 3. Homebuyer Qualifying Fee; and 4. Sales Commission Fee. The amount of the fees to be paid to the Consultant by AHS for completing the Scope of Services detailed in Exhibit "E" is recorded in the Development Pro Forma attached as Exhibit `B"to this Agreement. The costs contained in the Development Pro Forma serve as the budget for the project, and the Consultant will be required to complete the work in accordance with that budget. This budget must be approved by AHS Representative(s) prior to the start of any rehabilitation work by the Consultant. Project Management Fee—The Project Management Fee is the compensation received by the Consultant for securing, maintaining and marketing the property. Some of the tasks that might be included under this function are such things as, fencing the property, mowing the lawn, clearing debris from the lawn, removal of graffiti, etc. The Project Management Fee may also include any marketing costs incurred by the Consultant, such as online or print advertising and website design, as approved by AHS. The Consultant is eligible to receive fifty percent (50%) of this fee upon commencement of the Rehabilitation Scope of Work, to be invoiced by the Consultant in the first funds draw request submitted by the Consultant to AHS. The remaining portion of this fee shall be payable to the Consultant after the rehabilitation work is completed, as evidenced by an AHS issued Certificate of Completion or a City issued Certificate of Occupancy, as applicable. The remaining portion of this fee shall be paid to the Consultant upon the close of the Rehabilitation Home Sales Escrow. General Contractor Fee/Overhead — The General Contractor Fee/Overhead is the total amount paid by AHS for management of the rehabilitation work as defined in Exhibit "E", Section 6. If the Consultant hires a General Contractor, then the Consultant is responsible for negotiating a fee structure with its hired General Contractor, but in no event, will AHS pay an amount above the General Contractor Fee/Overhead stated in this Agreement, nor will AHS pay a separate General Contractor Fee/Overhead to the General Contractor. The amount of this fee is a fixed fee for the rehabilitation work. The costs of the rehabilitation work shall include direct labor and materials involved in the performance of the Rehabilitation Scope of Work plus the budgeted contingency for this work. A portion of this fee commensurate with the percentage of completion of the Rehabilitation Scope of Work shall be paid with each funds draw request submitted by -21- P\Ag asUpMa AnnhmemMgma Mt mansUgrmlA 301M1-15-10� CD Wpm Aga -Fi Am the Consultant. Any additional costs arising from unexpected conditions on the site or other unexpected difficulties must be written up as a change order and AHS Representative(s) must sign and approve the change order at the discretion of the AHS Representative(s) in order for these costs to be included as part of the overall rehabilitation costs, which would then increase the absolute amount of the General Contractor Fee/Overhead. Homebuyer Qualifying Fee — This fee is paid to the Consultant for identifying and assisting AHS in qualifying the prospective homebuyer for the sale of the Rehabilitated Home. This is a one-time fixed fee. This fee will include the Consultant's reimbursement for any costs associated with the prospective homebuyer's "Homebuyer Education Training" and payments to third party service providers, such as Neighborhood Housing Services of the Inland Empire ("NHSIE"), or another such service provider. The Homebuyer Qualifying Fee shall be paid upon the close of the Rehabilitated Home Sales Escrow. Sales Commission Fee — The sales Commission Fee represents the payment received by the Consultant for managing the Rehabilitated Home Sale Escrow process on behalf of AHS to assist the Qualified Homebuyer through the Rehabilitated Home Sales Escrow process. The amount of this fee is calculated as a fixed percentage of the final sales price to the Qualified Homebuyer. The Sales Commission Fee shall be paid upon the close of the Rehabilitated Home Sales Escrow. .22- P:WgendesVgenda AnuM1menbUgende All.h.en,M,m,aA 20iW3-15-10 MCMCDevelopmem A,r -Fwl.doc Exhibit"I" Closing Requirements A. Sale of Rehabilitated Properties The Consultant shall initiate the sale of a Rehabilitated Property to a Qualified Homebuyer by submitting to the Agency a purchase/sale agreement executed by the prospective homebuyer, verifying documentation from the prospective buyer with respect to residency, income and the property condition as the Agency, or its designee, may reasonably request (collectively, "Homebuyer Application"). [NOTE: NSP regulations limit the income on NSP funded properties. The Agency should be involved in the negotiation of sales documents of the properties.] The Homebuyer Application shall consist of the following information in the form provided or approved by the Agency: i. Last Three (3) Years Tax Returns (State and Federal) (1040's) signed with W2's attached. Two (2) Current Pay Stubs for all household members who will reside in the home. ii. A California Association of Realtors California Residential Purchase Agreement fully executed by the prospective homebuyer (With Agency Addendum(s) attached). iii. Neighborhood Stabilization Program Homebuyer Application. iv. Income Certification. V. Application Affidavit—Completely filled out and signed by the prospective homebuyer. vi. Signed Lead-Base Paint Disclosure Form (for homes built prior to 1978). The Agency does not supply this form. i vii. Copy of Employment Verification for each Homebuyer. i viii. 2 Months of Current Bank Statements. ix. 3-Year Rental History. X. Homebuyer Education Certificate from NHSIE or another like service provider. Within seven (7) calendar days after the receipt of the Homebuyer Application by the Agency, Agency Staff will notify the Consultant of approval or denial of the prospective homebuyer's eligibility and confirmation of such eligibility by means of a Reservation -23- PUgendasUgeMaMu emsWgenda Mtac MMgrmssA "1=34 10�MC DeveIWm Agmemem-Fid Letter (all reservations will be automatically valid for sixty (60) calendar days from the date of confirmation) [NOTE: The Agency should execute the sales agreement]. Upon notification by Agency Staff of the prospective homebuyer's eligibility, the Consultant shall open an Escrow account with an Agency approved escrow company (the "Escrow Holder"). The Agency shall fiimish the Escrow Holder with executed escrow instructions. The Consultant shall not permit any Escrow to close for the sale of a Rehabilitated Property until and unless the escrows instructions executed by the Agency (and countersigned, if requested by Agency Staff, by the First Trust Deed Lender) have been submitted to the Escrow Holder. As provided in the Agency escrow instructions, Escrow shall also not close unless and until: 1. The Escrow Holder holds the following documents : (1)Agency Notice of Affordability Restrictions executed by the Qualified Homebuyer and notarized; and (2) a grant deed with respect to the Rehabilitated Property purchased by the Qualified Homebuyer, executed and acknowledged by the selling entity; and 2. Proof of hazardous insurance for the full replacement cost of the Rehabilitated Property is provided to the Agency naming the Agency as additionally insured; and 3. Rehabilitation of the Rehabilitated Property shall have been completed in accordance with this Agreement and with all applicable City permits and ordinances, and the City shall have issued a final certificate of occupancy for the Rehabilitated Property; and 4. The Consultant's execution and delivery to the Agency of the Sub- agreement. No Event of Default shall exist under this Agreement or under any agreement or instrument relating to any financing for the Project or the Rehabilitated Property. Within seven (7) calendar days after the receipt of the Homebuyer Application by AHS, the AHS Representative(s) will notify the Consultant of approval or denial of the prospective homebuyer's eligibility and confirmation of such eligibility by means of a Reservation Letter (all reservations will be automatically valid for sixty (60) calendar days from the date of confirmation) [NOTE: AHS should execute the sales agreement]. Upon notification by the AHS Representative(s) of the prospective homebuyer's eligibility, the Consultant shall open the Rehabilitation Home Sales Escrow account with an AHS approved escrow company (the "Escrow Holder"). AHS shall famish the Escrow Holder with executed escrow instructions. The Consultant shall not permit the Rehabilitation Home Sales Escrow to close until and unless the escrow instructions executed by AHS (and countersigned, if requested by AHS Representative(s), by the First Trust Deed Lender) have been submitted to the Escrow Holder. As provided in the AHS escrow instructions, Escrow shall also not close unless and until: -24- P V Wg s\4eoda Aftwhme=aU nda Att cA s\A�s-Amend 201MM1 1012 C Development Agrtemmn-Fire)dao 1. The Escrow Holder holds the following documents : (1)Agency Notice of Affordability executed by the Qualified Homebuyer; and (2) a grant deed with respect to the Rehabilitated Home, executed and acknowledged by the selling entity(the"AHS Grant Deed"); and 2. Proof of hazardous insurance for the full replacement cost of the Rehabilitated Home is provided to AHS naming AHS and the Agency as additionally insured; and 3. The Rehabilitation Scope of Work shall have been completed in accordance with this Agreement and with all applicable City permits and ordinances, and AHS shall have issued a Certificate of Completion or the City shall have issued a Certificate of Occupancy for the Rehabilitated Home, as applicable; and No Event of Default shall exist under this Agreement or under any agreement or instrument relating to any financing for the Rehabilitated Home. B. Down Payment Assistance In the case where the Qualified Homebuyer needs down payment assistance to facilitate the purchase of the Rehabilitated Home, the Consultant shall assist the Qualified Homebuyer in applying for such assistance from the Redevelopment Agency of the City of San Bernardino's ("Agency") Homebuyer Assistance Program ("HAP"), at the Qualified Homebuyer's election. The requirements and the application process for jobtaining such assistance are described fully in the Agency's HAP Program Manual, which can be obtained at the Agency's offices. The process for applying for such assistance is summarized below, but in the event that a conflict exists between the description of the HAP Program contained herein and the HAP Program Manual, the requirements and procedures described in the HAP Program Manual shall prevail. In order to reserve Agency Down Payment Assistance Loan assistance to facilitate the purchase of the Rehabilitated Home, the Consultant must include in the Homebuyer Application described in Section A, herein, the following information in the form provided or approved by AHS and the Agency: i. Verification for Applicant Eligibility, completely filled out and signed by the prospective homebuyer and the First Trust Deed Lender; ii. Copy of Credit Report. If the prospective homebuyer lacks credit history or scores are lower than 640, please provide secondary credit such as a landlord letter or utility statements; and iii. Agency Down Payment Assistance Loan Worksheet. .25- P:UgcMUUgende AluchmmleUgeMe AllxhmmuV®��uaAmend 201003-IS-IO IECMC Developmcm Agcemeni-Fivl.doc The obligation of the Agency to fund each Agency Down Payment Assistance Loan shall be subject to satisfaction of all of the conditions stated in Section A,herein,together with the following conditions (collectively, the"Closing Conditions"): (a) The Escrow Holder holds the following documents: 1) the Qualified Homebuyer Agency Down Payment Assistance Loan Agreement executed by the Qualified Homebuyer and the Agency; (2) the Agency Promissory Note executed by the Qualified Homebuyer in favor of the Agency in the same amount as the Agency Down Payment Assistance Loan; and (3) the Agency Subordinate Deed of Trust and Assignment of Rents acknowledged and executed by the Qualified Homebuyer in favor of the Agency; and (b) Any one of the following title companies whether(i)First American Title, (ii) North American Title, (iii) Chicago Title, (iv) Stewart Title or(v) another title insurer approved by the Agency ("Title Company") shall have assured the Agency in writing that with respect to each Agency Down Payment Assistance Loan, the Agency shall receive upon recordation of the Agency Subordinate Deed of Trust and Assignment of Rents a CLTA lenders policy of title insurance in the amount of the Agency Down Payment Assistance Loan Note (the "Agency Title Policy') insuring the priority of the Agency Subordinate Deed of Trust and Assignment of Rents, subject only to the First Mortgage Loan and other exceptions approved by the Agency following the Agency's prior review of a preliminary title report for the Rehabilitated Home, which preliminary title report must be received by the Agency no later than seven (7) calendar days after the approval by the Agency of the Homebuyer Application; and (d) The Agency shall have reviewed and approved the Qualified Homebuyer for the Agency Down Payment Assistance Loan in the Agency's sole discretion, and the eligibility conditions in the applicable sections of the HAP Manual shall have been satisfied. In accordance with the Neighborhood Stabilization Program, the Rehabilitated Home is not restricted for sale to first-time homebuyers; therefore, these properties are exempt from the requirements in Section II. B. 1. of the HAP Manual; and (e) No stop notice or mechanics' lien shall have been filed against the Rehabilitated Home unless discharged as provided by law. •26- PU6eMesUgcndaAttnhm &AUMa Attw mo S\AgM.v-Am NI=34I 10 IF CDevebpmM Agm -FL Ll EXHIBIT"J" Events of Default and Remedies A. Events of Default The occurrence of any of the following shall, after the giving of any notice described therein, constitute a default by the Consultant hereunder("Event of Default"): (1) The failure of the Consultant to pay or perform any monetary covenant or obligation under the Agreement or any of the documents executed in connection herewith, without curing such failure within ten (10) calendar days after receipt of written notice of such default from AHS (or from any party authorized by AHS to deliver such notice as identified by AHS in writing to the Consultant); (2) The failure of the Consultant to perform any non-monetary covenant or obligation hereunder or any of the documents executed in connection herewith that results in a material adverse effect to AHS, without curing such failure within thirty (30) calendar days after receipt of written notice of such default from AHS (or from any party authorized by AHS to deliver such notice as identified by AHS in writing to the Consultant) specifying the nature of the event or deficiency giving rise to the default and the action required to cure such deficiency;provided, however, that if any default with respect to a non-monetary obligation is such that it cannot be cured within a thirty-day period, it shall be deemed cured if the Consultant commences the cure within said thirty-day period and diligently prosecutes such cure to completion thereafter. Notwithstanding anything herein to the contrary,the herein described notice requirements and cure periods shall not apply to any Event of Default described in Sections (3)through (6) below; (3) The falsity of any representation or breach of any warranty or covenant made by the Consultant under the terms of this Agreement or any documents executed in connection herewith; (4) The Consultant or any constituent member or partner, or majority shareholder, of the Consultant shall (a) apply for or consent to the appointment of a receiver,trustee, liquidator or custodian or the like of its property, (b)fail to pay or admit in writing its inability to pay its debts generally as they become due, (c) make a general assignment for the benefit of creditors, (d) be adjudicated a bankrupt or insolvent or (e) commence a voluntary case under the Federal bankruptcy laws of the United States of America or file a voluntary petition that is not withdrawn within ten (10) calendar days after the filing thereof or an answer seeking an arrangement with creditors or an order for relief or seeking to take advantage of any insolvency law or file an answer admitting the material allegations of a petition filed against it in any bankruptcy or insolvency proceeding; _27_ F.41geM s\Agc Anachme=NSeMa Anachmmo�A 20M345-10 MCC CDe ]Wmem Ag mcm-Fir ,A (5) If without the application, approval or consent of the Consultant, a proceeding shall be instituted in any court of competent jurisdiction, under any law relating to bankruptcy, in respect of the Consultant or any constituent member or partner, or majority shareholder, of the Consultant, for an order for relief or an adjudication in bankruptcy, a composition or arrangement with creditors, a readjustment of debts, the appointment of a trustee, receiver, liquidator or custodian or the like of the Consultant or of all or any substantial part of the Consultant's assets, or other like relief in respect thereof under any bankruptcy or insolvency law, and, if such proceeding is being contested by the Consultant, in good faith, the same shall (a) result in the entry of an order for relief or any such adjudication or appointment, or (b) continue undismissed, or pending and unstayed,for any period of ninety(90)consecutive calendar days; (6) Voluntary cessation of the construction activities, active property management, or marketing activities related to the Rehabilitated Home for a continuous period of more than ten (10) calendar days or the involuntary cessation of the above named activities in accordance with this Agreement for a continuous period of more than thirty(30)calendar days; (7) A mechanic's lien or any other type of encumbrance on AHS' property resulting from the Consultant's failure to fulfill its financial or other contractual obligations with respect to any of its vendors or subcontractors is not removed within ten (10) calendar days after receipt of written notice of such default from AHS (or from any party authorized by AHS to deliver such notice as identified by AHS in writing to the Consultant). B. AHS Remedies: Upon the occurrence of an Event of Default hereunder, AHS may, in its sole discretion,take any one or more of the following actions: (1) Withhold any payment of fees or reimbursement of eligible expenses to the Consultant unless and until the Event of Default (if curable) is cured or this Agreement is terminated in accordance with Section 9 of this Agreement; (2) Demand reimbursement from the Consultant for any payments made to it by AHS for which the contracted work product was not satisfactorily delivered by the Consultant; (3) Confiscate any material or other work product purchased or produced by the Consultant during the course of completing the Scope of Work indicated in this Agreement; (4) Take any and all actions and do any and all things which are allowed, permitted or provided by law. in equity or by statute, in the sole discretion of AHS, to enforce performance and obsec^ ance of any obligation, agreement or covenant of the Consultant under this Agreerne t or under any other document executed in _2g_ P UgentlaetAgentla AtucM1mewUgenda AH.h. ,VU ts-A 2010K -10 WC C d,.entV...-Fir .d. connection herewith; (5) Upon the occurrence of an Event of Default which is occasioned by the Consultant's failure under this Agreement to pay money, AHS may, but shall not be obligated to, make such payment. If such payment is made by AHS, the Consultant shall deposit with AHS, upon written demand therefore, such sum plus interest at the rate of ten percent(10%) per annum with interest to be compounded annually. In either case, the Event of Default with respect to which any such payment has been made by AHS shall not be deemed cured until such repayment (as the case may be) has been made by the Consultant; (6) Upon the occurrence of an Event of Default described in Section A.(4) or A.(5) hereof, AHS shall be entitled and empowered by intervention in such proceedings or otherwise to file and prove a claim for any amount owing to AHS under this Agreement and unpaid and, in the case of commencement of any judicial proceedings, to file such proof of claim and other papers or documents as may be necessary or advisable in the judgment of AHS and its counsel to protect the interests of AHS and to collect and receive any monies or other property in satisfaction of its claim. C. AHS Default and Consultant Remedies: Upon fault or failure of AHS to meet any of its obligations under this Agreement without curing such failure within thirty (30) calendar days after receipt of written notice of such failure from the Consultant specifying the nature of the event or deficiency giving rise to the default and the action required to cure such deficiency,the Consultant may, as its sole and exclusive remedies: (1) Bring an action in equitable relief seeking the specific performance by AHS of the terms and conditions of this Agreement or seeking to enjoin any act by AHS which is prohibited hereunder; and/or (2) Bring an action for declaratory relief seeking judicial determination of the meaning of any provision of this Agreement. Without limiting the generality of the foregoing, the Consultant shall in no event be entitled to, and hereby waives, any right to seek indirect or consequential damages of any kind or nature from the Consultant arising out of or in connection with this Agreement, and in connection with such waiver the Consultant is familiar with and hereby waives the provisions of Section 1542 of the California Civil Code which provides as follows: "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR." -29- PUge Mgende AnazhmfflMWMa AnuhmmnV4e -Amend 101=3.15.101E CD elopmnm Agramen-Fhml.dIX EXHIBIT "K" Affirmative Marketing Requirements In accordance with the California Fair Employment and Housing Act,the Consultant acting as agent for AHS, the owner and seller of the Rehabilitated Home, in marketing the sale of the Rehabilitated Home, must adhere to the following affirmative marketing guidelines in order to create awareness for the general public and certain community groups as to the availability of residential properties designated for lower- and/or moderate-income households. 1. Provide an affirmative marketing plan and procedures for the sale of the Rehabilitated Home. Procedures to be used must identify how persons in the housing market area who are not likely to apply for the housing without special outreach shall be informed and made aware of available affordable housing opportunities. 2. The Consultant's Affmnative Marketing Plan shall consist of a written marketing strategy designed to provide information and to attract eligible persons in the housing market area to the Rehabilitated Home without regard to race, color, national origin, sex, religion, marital and familial status, disability, medical condition, sexual orientation, or ancestry. It shall describe initial advertising, outreach (community contacts) and other marketing activities, which will inform potential buyers of the availability of the Rehabilitated Home. It shall also outline an outreach program which includes special measures designed to attract those groups identified as least likely to apply without special outreach efforts (because of existing neighborhood racial or ethnic patterns, location of housing or other factors) and other efforts designed to attract persons from the total eligible population. 3. Insert Equal Housing Opportunity logotype, statement or slogan on all written outreach tools (i.e., signs, advertisements, brochures, direct mail solicitations, press releases, etc.) 4. In addition to the above, the Affirmative Fair Housing Marketing Plan shall outline: a. Commercial Media to be used (i.e., community newspapers and non-English language newspapers, radio, television, billboards, religious or local real estate publications, etc.). b. Marketing efforts to be used (i.e, brochures, letters, handouts, direct mail, signs, etc.) c. Community contacts to supplement formal communications media for the purpose of soliciting those groups least likely to purchase the available housing without special outreach efforts. They should be individuals or organizations (i.e., service agencies, community organizations, places of worship, etc.) that -30- P:UgcMaMpg AuvAm M s fteMa Attnh=taUge Amcnd 3010\03-15-10 IECAAC Mnlopmcnt Ag==m FwlGc have direct and frequent contact with those identified as least likely to apply. The contacts should also be chosen on the basis of their positions of influence within the general community and the particular target group. AHS and its designees must agree to establish and maintain contact with the identified contacts. 5. The Consultant shall maintain records of all prospective homebuyer applicants, including their race, ethnicity and gender, reasons for denial of application, placement on a waiting list,etc. 6. The Consultant shall also provide for the selection of applicants from a written waiting list in the chronological order of their application, insofar as is practicable, and provide prompt written notification to any rejected applicants of the grounds for any rejection. 7. The Consultant shall apply for first trust deed financing to be applied towards the purchase of the Rehabilitated Home from a lender listed on the Agency's or AHS' Approved Lender List. -31- P:WgeMas4lgrnda AtiachmentMgenda AIIaclM1mem9kAgrmle-Am<nG 3010`03-15-10IECMC Owclopmcm Agreement-Final.doe EXHIBIT "Lee Building Requirements -32- P Ngndas\Agenda AnwhmennUgenda Aron amen\Agmis-AmmM 30IM3-15-10IECAAC Oevelopmens Agmemenl Final.doc ou,ll T11drumu ECONOMIC DEVELOPMENT AGENCY Neighborhood Stabilization Program "Minimum Building Standards" June 2009 Table of Contents 1000—General Requirements...................................................................................................................... 1 1010—General............................................................................................................................................ 1 1020-Terminology....................................................................................................................................l 1030-General Quality Requirements..................................................................................................... 1 1040-Substitutions/Alternatives............................................................................................................2 1050-Optional Green Building Practices..............................................................................................3 1100-Temporary Facilities and Temporary Controls..............................................................................3 1110—Site Usage......................................................................................................................................3 1200 -Project Closeout.................................................................................................................................4 1210—Final Cleaning................................................................................................................................4 1220—Operations Manuals and Warranties..........................................................................................5 1230—Systems Startup............................................................................................................................5 2000-Building Sitework/Site Preparat ion................................................................................................ 5 2010-Site Clearing and Demolition........................................................................................................ 5 2020 -Site Earthwork................................................................................................................................5 2040—Site Hazardous Waste Remediation...........................................................................................6 2100-Site Improvements.............................................................................................................................6 2110—Roadways, Driveways, and Walkways.......................................................................................6 2150—Fencing...........................................................................................................................................7 2150-Landscaping...................................................................................................................................8 2200 Site Civil/Site Utilities.........................................................................................................................e 2210-Utilities.............................................................................................................................................8 3100-Selective Demolition..........................................................................................................................8 3110-Building Elements Demolition......................................................................................................8 3120-Hazardous Components Abatement..........................................................................................10 4000 -Foundations.......................................................................................................................................10 4010-Standard Foundat ions..................................................................................................................10 4030-Slabs on Grade..............................................................................................................................11 5000-Superstructure...................................................................................................................................11 5010—Framing I Wood ............................................................................................................................11 5100-Exterior Enclosure............................................................................................................................12 5110-Exterior Walls.................................................................................................................................12 5111-Stucco/Plaster.........................................................................................................................12 5112-Exterior Insulation....................................................................................................................12 5113-Caulking and Joint Sealants...................................................................................................13 6120-Exterior Windows..........................................................................................................................13 5130-Exterior Doom/Garage Doors....................................................................................................14 6140-Flashing...........................................................................................................................................16 5200-Rooflng..............................................................................................................................................16 5210-Roof Coverings..............................................................................................................................16 5220-Gutters and Downspouts............................................................................................................16 6000-Interior Construction........................................................................................................................17 6010-Partitions/Callings......................................................................................................................17 6011-Interior Insulation.....................................................................................................................17 6012-Drywall........................................................................................................................................17 6020-Interior Doom.................................................................................................................................18 7000-Finishes...............................................................................................................................................16 7010-Ceramic Tile..................................................................................................................................18 7020-Floor Finishes................................................................................................................................19 7030-Ceiling Finishes.............................................................................................................................20 7040-Painting...........................................................................................................................................20 8100-Furnishings.......................................................................................................................................24 8110-Carpentry,Cabinets,and Millwork.............................................................................................24 9000-Plumbing,Mechanical,Electrical...................................................................................................25 9010-Plumbing Fixtures.........................................................................................................................25 9020-Domestic Water Distribution.......................................................................................................26 9030-Sanitary Wast e...............................................................................................................................26 9100-Heating,Ventilating,and Air Conditioning(HVAC)......................................................................27 9110-Heating and Ventilating...............................................................................................................27 9200-Fire Protection Systems..................................................................................................................28 9210-Fire Protection Specialties..........................................................................................................28 9300-Electrical Systems.............................................................................................................................28 9310-Electrical Service and Distribution.............................................................................................26 City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 1 of 28 1000 — General Requirements 1010 — General .1. These Minimum Building Standards (Standards) have been developed by the City of San Bernardino Economic Development Agency (EDA) for use on the Neighborhood Stabilization Program (NSP). .2. These Standards shall apply to all properties covered by the NSP. .3. All materials, supplies, costs of permits, and labor to complete the specified rehabilitation or repairs, shall be the responsibility of the Builder/Developer unless specified otherwise by the EDA. .4. Any drawings or sketches which may be furnished by the EDA or required by the Builder/Developer are intended to clarify or further describe the propert. Should the Builder/Developer find discrepancies in, or omissions from, these drawings or sketches or should he/she be in doubt as to their meaning, they should contact the EDA for clarification. Because of the nature of work being done, some details of sketches or drawings may be"typical" and grades, dimensions and exact existing conditions must be verified at the property before commencing work. .5. Any additional work that EDA want the Builder/Developer to do should be done after completion of the Rehabilitation work, if at all possible. A separate contract will be signed between the EDA and Builder/Developer before the work is to start. 1020 -Terminology .1. When used in these Standards, the following definitions shall apply: A. Install -The item referred to shall be installed with all necessary hardware, trim, fittings, and material necessary to make ready for use. All material shall be new. B. Replace -The existing item referred to shall be removed prior to installation of the new item. C. Trim -When used in conjunction with painting, includes roof vents and pipes, eaves, molding, casing, underside of all doors, and any items other than walls and ceilings. D. Rehabilitation -All repairs to or replacement of present elements of an existing building, such as windows, stairs, flooring, or wiring; rearrangement of rooms by the relocation of partitions or by the installation of new bathrooms and kitchens; or the general replacement of the interior of a building. This may or may not include changes to structural elements such as floor systems, columns or load bearing interior or exterior walls. 1030 -General Quality Requirements .1. In order to establish standards of quality, the Standards may refer to certain products by name and/or catalog number. This procedure is not to be construed as eliminating from competition other products of equal or better quality by other manufacturers, at approximately a same cost. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 2 of 28 .2. All material and each part or detail of the work shall be subject at all times to inspection by the EDA, and the Builder/Developer will hold to the true intent of the Standards in regard to -quality of material, workmanship, and the diligent execution of the contract. .3. Materials installed shall be of such kind and quality to ensure that the dwelling will provide acceptable durability, economy of maintenance and adequate resistance to weather, moisture, corrosion and fire. The EDA may request evidence of a material's compliance with the requirements of the structure's plans and specifications and these Standards. Product labels are considered acceptable evidence. A. The EDA may require that the Builder/Developer carry out a durability evaluation or conduct a building assessment to determine if the materials to be used comply with any green strategies .4. All work shall be executed by skilled craftsman, experienced in their trade, and in accordance with accepted practices of their trade. All work shall be of the highest standards and methods. .5. Unless specifically noted otherwise, all construction methods and materials used shall conform to the California Building Code as adopted by the City of San Bernardino and shall be done in accordance with any other ordinances passed and adopted by the City of San Bernardino (i.e., zoning codes, fire codes, etc.). This includes all repairs, finishes, fixtures, and new work. .6. All plumbing and gas work shall be done in accordance with the Uniform Plumbing Code as adopted by the City of San Bernardino. .7. All heating and cooling work shall be done in accordance with the Uniform Mechanical Code as adopted by the City of San Bernardino. .8. All electrical work shall be done in accordance with the national Electric Code as adopted by the City of San Bernardino. .9. Where work involves colors, the Builder/Developer will provide the EDA with samples of all colors for the particular item (roofing, stucco, paint, stain, flooring, etc.), and the EDA will select the color and finish by initialing the color sample and state for what/where it will be used (exterior, interior, fascia, soffit, trim, doors, ceiling,walls, etc.). A maximum of three colors each may be selected for exterior and interior. .10. If the EDA has agreed to correct certain specified existing code violations,which are to be excluded from the work done by the Builder/Developer, the work on such violations, if done at the same time the Builder/Developer is on the job, shall be coordinated by the EDA and Builder/Developer so as to provide for a smooth flow of the work. 1040 -Substitutions/Alternatives .1. The Builder/Developer shall furnish a list of any proposed desired substitutions prior to the signing of the contract. .2. These standards are intended to encourage the use of new or innovative technologies, methods and materials. Alternatives and non-conventional or innovative methods and materials shall be equivalent to these standards in the areas of quality, durability, economy of maintenance, operation and usability. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 3 of 28 .3. Certain conditions in the geographic area or on the site may justify modification of specific standards, or make compliance with the standards impracticable or impossible. In these cases, approval by the EDA is required. 1050- Optional Green Building Practices 1. Builder/Developers are encouraged to incorporate any green building practice that offers an opportunity to create environmentally sound and resource-efficient buildings. .2. In an effort to encourage modem, green building, and energy-efficiency improvements, BuildedDevelopers are encouraged to incorporate HUD's healthy homes interventions including these seven steps ensuring housing is made and kept., A. Dry. Ensure proper drainage away from housing; clean repair gutters and downspouts, repair leaks seal roofs and windows. B. Safe: Install safety devices on doors, cabinets, window blinds and outlets; provide adequate storage for all poisonous items out of reach of children and labeled in the proper containers;install smoke detectors and carbon monoxide detectors; have appropriate fire extinguishers available. C. Well-ventilated Service and maintain heating and cooling systems;provide exhaust fans for kitchens, bathroom and dryers to the outside to reduce mold, change furnace filters. D. Past-free: Provide proper storage and disposal for food products, caulk and seal holes; use least toxic pest management methods. E. Contaminant-free: Remove lead based paint hazards properly,provide test kits for radon, reduce volatile organic compounds in paint, carpet, etc., F. Clean. Install dust walk-off systems in entry ways;provide smooth, cleanable surfaces,provide effective storage space and containers;choose flooring that is easy to clean. G. Well-maintained.' Important maintenance calendar for inspecting, cleaning, repairing, replacing housing components/systems. .3. Throughout these Standards, the EDA has inserted opportunities in which green building practices can be achieved. 1100 -Temporary Facilities and Temporary Controls 1110— Site Usage .1. All temporary facilities and controls required for the project shall be provided by the Builder/Developer. .2. The Builder/Developer will provide daily clean-up of all debris related to the work of the project as required. Provide a dumpster on site for the duration of construction for disposal of construction debris. All work area(s) shall be left broom clean at the end of each work day. .3. Immediately, at the end of the work, the Builder/Developer shall remove all of their debris, rubbish, refuse, and unused material from the property and street. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 4 of 28 .4. The Builder/Developer will provide all temporary 6-foot high chain link safety and security fencing for construction operations required for the work of this project. Fencing shall conform to the following specifications: A. 6-foot high chain link fence with 80% or greater green or black wind screen/mesh. B. Mesh shall be attached with hog rings. C. Includes man and vehicle gates where required. D. Gateposts shall be of size to accommodate the size of opening and its intended purpose. E. All gateposts shall be cored or driven into the ground. F. Core holes shall be filled with concrete once temporary fence is removed. Slurry seal all in A/C areas. G. Fencing shall be set back beyond site work improvements. .5. On-site materials pertaining to the project and partially completed roofs shall be temporarily protected during inclement weather. It is the responsibility of the Builder/Developer to maintain a watertight condition to prevent any water damage to the building once the roof has been removed until it has been completely patched. .6. The Builder/Developer shall provide temporary power as needed for the project. 7. Provide and maintain dust and erosion control throughout the duration of the work and as required for the work of the project. 8. The Builder/Developer shall provide protection, acceptable to the EDA, for any existing surfaces or equipment that have been selected to remain. .9. GREEN OPPORTUNITY: Minimize the site disturbance during construction. A. Control the impact area by designating vehicle parking farther from the site B. Store building materials inside a garage or protected area. C. Protect all existing trees with fencing to include the drip line in an effort to avoid nve, compaction of the soil around the trees. 1200 - Project Closeout 1210 — Final Cleaning .1. Prior to the final inspection, the Builder/Developer will provide final clean-up of the building and property. .2. Remove all plaster and paint smears and drops; clean all windows, screens, doors, finished hardware and plumbing fixtures; polish all chrome, clean and polish all countertops and floor covering; throughout entire house -new and/or old. Provide cleaning of all exterior surfaces including walls, windows, landscape areas, driveways, and walkways. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 5 of 28 1220 — Operations Manuals and Warranties .1. The Builder/Developer will obtain and fill in all necessary information on all warranties where applicable, for manufactured products, materials and/or labor used in connection with the project. He/she shall deliver the original warranties to the EDA where appropriate copies will be made and the original will be delivered to the EDA upon completion of the work. Any sections that need to be sent to the manufacturer to validate the warranty,will be mailed as soon as possible. 2. GREEN OPPORTUNITY: Provide operation and maintenance manuals, and perform training of users to properly instruct them on the green features of the property and how to maintain them. 1230—Systems Startup .1. Prior to turnover of building, Builder/Developer will conduct testing and startup of all equipment new and/or old for verification of functionality. .2. Builder/Developer will ensure that all equipment components (such as filters, bulbs, batteries) are replaced prior to turn over. 2000 - Building Sitework 1 Site Preparation 2010 - Site Clearing and Demolition .1. This work shall be executed in a safe, orderly manner, and in accordance with all applicable codes. .2. The Builder/Developer shall protect all existing materials and apparatus from damage, and shall repair damage caused by workers at no cost to the EDA. .3. Remove trees and plant materials, with EDA's approval, from areas to be cleared. .4. Maintain protection of trees and plant materials which are to remain until completion of work. .5. Debris shall not be allowed to accumulate. .6. Remove all unsightly trash and dangerous material (wood, metal, etc.). 2020 -Site Earthwork .1. Placing of footings and foundations on earth fill will not be permitted. Fill excess cuts under footings and foundations with concrete, and under slabs with tamped gravel. .2. Excavations for footings shall be neat and accurately cut trenches to depths and grades shown on drawings/plans. In the absence of drawings/plans, code requirements shall govern. .3. All grading around any structures shall have high spots lowered and low spots raised to a minimum of 6" below top of floor slab; a minimum of 2' out with a slight slope from structure. .4. Site grading shall accomplish the following: A. Allow drainage of surface water away from buildings and off-site. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 6 of 28 B. Minimize earth settlement problems. C. Avoid concentrating runoff onto neighboring properties where erosion or other damage would be caused. D. Minimize erosion. E. Minimize potential earth movement problems which might adversely affect completed construction. 5. GREEN OPPORTUNITY. Grades around structures shall maintain at least a 5% slope away from the found':?Nn"' 2040—Site Hazardous Waste Remediation .1. The property shall be free of hazards which may adversely affect the health and safety of the occupants or the structural soundness of the improvements or which may impair the customary use and enjoyment of the property. These hazards include toxic chemicals, radioactive materials, other pollution, hazardous activities, subsidence, flood, erosion, expansive or compressible soils, inadequate drainage outfall, landslides or muciflows, and deposition of suspended solids or others located on or off site. Projects with potentially significant hazards may be acceptable if any such hazards are effectively mitigated. 2100 - Site Improvements 2110— Roadways, Driveways, and Walkways .1. Surfaces and base courses for roads, streets, parking areas and walks shall be durable materials. Their construction shall be in conformance with generally accepted local design practices. .2. Slabs for roadways, driveways, and walkways shall be designed and constructed in accordance with standards set forth by the American Concrete Institute, and as may be necessary to prevent slab damage due to potential soil movements. .3. Provide for repairs and/or repairs of existing surfaces to match existing. .4. These surfaces shall be installed with provisions for drainage. Adequate surface and underground drainage systems shall serve all paving and improvements so as to ensure continuing stable soil support for these improvements. .5. Minimum width for driveways shall be 10', and sidewalks 3', if installed new; or if replaced, to match existing if wider than 10'. .6. All exterior concrete surfaces shall be a light broom finish with expansion joints approximately every 12' (fiber material), with slope for drainage away from structure and property. .7. All flatwork expansion joints shall be filled with clear silicone sealant. .8. Where soil and/or concrete for porches, steps and other work is in contact with members, galvanized metal flashing, or solid sheathing and 15 lb. felt shall be installed, or wrap and scratch coat applied. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 7 of 28 9. GREEN OPPORTUNITY. Limit water runoff and maximize infiltration by avoiding impervious surfaces and installing permeable drainage areas between sidewalks, driveways, walkways, patios, and pathways. A. Open matrix concrete grid pavers. B. Specialized honeycomb substrates for gravel or turf. C- Pervious mixes of concrete or asphalt. 2150— Fencing .1. Check all boundaries to ensure property lines are observed, and City Ordinances are not violated (front yard, side yard, and back yard maximum heights). .2. All post setting holes shall not be less than 24"deep and 6"diameter, at a maximum of 10' intervals. When adjacent to a foundation (walls), offset hole to obtain 24" depth, and fill in any space larger than 2" between wall and post. .3. Entrance walk gate shall be a minimum of 3'wide, and driveway gates a minimum of 12'wide; including all gate hinges and. padlock latch attachments. .4. Wrought Iron A. Posts to be 2"x2"x.090 (16 gauge). B. Top and bottom rails to be 1 Y:"x 1 ''%" (16 gauge). C. Pickets to be%"x%"(16 gauge), 4"on center. .5. Chain Link A. All galvanized material. B. 2-3/8" O.D. end, corner, and gate posts. C. 1-5/8" O.D. line and corner diagonal posts. D. 1-3/8"O.D. top rail, with bottom tension wire. E. 11 gauge-2" mesh; to include all bands and wire ties. .6. Wood Fence A. All posts will be of galvanized material (unless otherwise specified). B. 2-3/8"O.D. end, corner, and gate posts. C. 1-5/8"O.D. line and comer diagonal posts. D. Two 2 x 4 horizontal support rails. E. Fencing as specified (redwood or cedar- minimum#2, two nails per rail). .7. Block Wall A. Shall be in accordance with the City of San Bernardino drawing on Garden & Retaining Wall Standards available from the Building &Safety Department. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 8 of 28 2150 - Landscaping .1. All trees and shrubbery identified to remain shall be trimmed. Trim to property line and a minimum of 4' above roofing or structure; removing all debris. .2. All trees and shrubs identified to be removed shall be cut to surface. Remove stump and roots a minimum of B" below surface; removing all debris, and fill in hole with soil. .3. Natural site assets such as existing trees, shrubs, ground cover, must be preserved, maintained, and protected whenever possible. .4. Any existing assets lost due to the construction efforts and/or lack of protection will be replaced with like kind and size at the Builder/Developer's expense. .5. GREEN OPPORTUNITY. Create environmentally hiendly lawns and landscaping by. A. Cover play areas with wood shavings. B. Limit the amount of lawn space by installing naturalized plantings. C. Provide alternative water sources. D. Plant drought-tolerant landscapes E. Plant shade trees in an effort to reduce the cooling loads required in the house. F. Consider planting edible plants. G. Use water-conserving irrigation equipment where landscape irrigation is required. i, Drip Irrigation. ii. Advanced irrigation controls like rain sensors. 2200 Site Civil f Site Utilities 2210 - Utilities .1. Underground piping and related items shall be protected from corrosion. Underground mechanical and electrical systems shall be protectively coated to minimize corrosion where soil conditions warrant. Where applicable, sacrificial anodes may be used. .2. Sacrificial anodes may be used where soil resistivity does not exceed 15,000 ohm - centimeters. Otherwise, an impressed current system of corrosion prevention shall be used. .3. Utilities and other facilities shall be independent for the property,without dependence upon other properties. 3100 -Selective Demolition 3110 - Building Elements Demolition .1. This work shall be executed in a safe, orderly manner, and in accordance with all applicable codes. .2. The Builder/Developer shall protect existing materials and apparatu from damage, and shall repair damage caused by workers at no cost to the EDA. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 9 of 28 .3. Debris shall not be allowed to accumulate. .4. The Builder/Developer shall remove all flooring finishes identified to be removed or replaced. Including abatement of any materials designated as containing asbestos. .5. Provide all roofing membrane removal as required for the removal of existing and installation of new roof, equipment, and connections. .6. The Builder/Developer shall provide shoring of all existing beams/structures being modified prior to removing existing bearing walls. .7. Remove all interior and exterior doors and/or frames that are identified for removal. This activity shall be coordinated with the EDA in an effort to not leave any openings un-lockable. .8. Remove all window stops/putty, glass, glazing, and frames as required. Provide demolition of existing sliding glass doors scheduled to be replaced. .9. The Builder/Developer shall remove all structural and non-structural wood stud /gypsum sheathing or wood stud / plaster partition walls, wing walls or portion of walls determined to be removed. A. All appurtenances identified to be removed / demolished on walls scheduled to be removed/demolished shall be removed and disposed of by the Builder/Developer. B. Appurtenances identified to remain, shall be removed and re-installed by the Builder/Developer. .10. Any specific cutting and patching of drywall needed to install conduit or piping shall be done by the Builder/Developer. 11. The Builder/Developer shall remove all wall surface material or portions thereof from interior and exterior walls for new framed openings such as but not limited to doors, windows, recessed electrical panels, louvers, HVAC grills and ducts, backing, etc. .12. The Builder/Developer shall provide removal of all existing spayed on acoustical (popcorn) ceiling texture. Provide for asbestos abatement as necessary. .13. The Builder/Developer shall remove existing casework and countertops, backing, anchors, bases, shims, backsplash, etc. identified to be demolished and disposed of. .14. Doors and windows must be able to be locked at the end of each day, or provide a temporary secure panel (approved by the EDA) closing the opening at no additional cost to the EDA. This also includes providing a temporary secure panel at all wall, door or window openings scheduled to be removed. .15. Removal of Ceramic tile shall include removal and replacement of wall substrate and any existing mortar bed. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 10 of 28 3120 - Hazardous Components Abatement .1. The property shall be free of those hazards which may adversely affect the health and safety of the occupants or the structural soundness of the improvements or which may impair the customary use and enjoyment of the property. These hazards include toxic chemicals, radioactive materials, other pollution, hazardous activities, subsidence, flood, erosion, expansive or compressible soils, inadequate drainage outfall, landslides or muciflows, and deposition of suspended solids or others located on or off site. Projects with potentially significant hazards may be acceptable if any such hazards are effectively mitigated. .2. The Builder/Developer shall provide all labor, material and equipment required to complete the work related to the Hazardous Materials Abatement as required. A. Provide all labor, material and equipment required to abate and legally dispose of off-site all Asbestos Containing Materials (ACM) and Lead Containing Materials including but not limited to pipe fitting insulation (elbows/ends), roof mastic, flooring, flexible joints, doors, door frames, plaster walls, sinks, ceramic tile, etc. B. Provide for the proper removal and disposal of PCB Ballasts and Fluorescent Light Tubes: i. It is assumed that all ballasts not labeled "No PCBs" are considered to contain PCBs and therefore must be treated as hazardous waste. The Builder/Developer shall disconnect the ballasts (those not labeled "No PCB's")from the fixtures and is responsible for proper disposal/recycling- ii. Mercury is present in fluorescent light tubes, which may be present throughout the project areas. Mercury is considered a hazardous waste and will be disposed of properly by the Builder/Developer. 4000 - Foundations 4010 -Standard Foundations .1. Includes excavation, backfill, compaction, and installation of all foundations. .2. Concrete materials for foundations shall be in accordance with City of San Bernardino standards and shall be approved by the EDA prior to placement. .3. Includes all formwork and accessories for all cast-in place concrete and cement concrete pavement with shoring, bracing and anchorage, form accessories, form stripping, and proper layout, location. Provide proper temporary support/shoring (as required and/or needed). .4. Furnish and install all reinforcing steel bars, welded steel wire fabric, fabricated steel bar, slip dowels, or rod mats for all on-site cast-in-place concrete and cement concrete pavement. Provide and install all necessary accessories as indicated. .5. All vertical reinforcing steel protection shall be installed in accordance with CAL OSHA codes and regulations. Maintain said protection throughout the duration of reinforcement installation and until enclosed by finish material. .6. When replacing existing concrete with new, the new concrete shall have at least the same reinforcement as the existing. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 11 of 28 7. GREEN OPPORTUNITY. Provide foundation water management system. 8. GREEN OPPORTUNITY. Use concrete that contains a percentage of fly ash in place of portland cement. 4030 - Slabs on Grade .1. Concrete mixture shall be made of a 1-2-3 mix with plastic cement, sand, and 3/4" rock. Ready mix will be a 5 sack. Minimum 2500 psi. .2. Slabs shall be constructed in accordance with ACI 302.1 R-80, Guide for Concrete Floor and Slab Construction, and as may be necessary to prevent slab damage due to potential soil movements. .3. Vapor retarders and base course shall be provided for all interior concrete slabs to which a finish flooring is applied. A. Acceptable base course materials are gravel, slag, crushed rock, sand, cinders and certain types of earth when approved by the local EDA. See ASTM C-33-90, Table 2. B. Base course material shall be clean, washed and free from deleterious substances, consistent with ASTM C-33, with 100% of the material passing a 1" sieve and less than 2% passing a#4 sieve. .1. All concrete slabs shall be a minimum of 3 '/d'thick(additions, garages, driveways, sidewalks). .2. All interior surfaces shall be troweled smooth. .3. Includes excavation, backfill, compaction, and installation of all slabs. Completely furnish and install all concrete accessories, colors, finishes, forming, admixtures, reinforcement joint sealers, and curing compounds in accordance with the Specifications. 5000 -Superstructure 5010— Framing f Wood .1. Framing and wood construction shall be in accordance with the latest edition of the National Design Specification for Wood Construction. .2. A chemical barrier must be provided for structures built in those areas where termites are determined by the EDA to be a hazard. A physical barrier will also satisfy this requirement where the hazard is presented by subterranean termites only. .3. Where required by the EDA Field Office, protection against damage by decay shall be provided. .4. GREEN OPPORTUNITY Keep all untreated wood at least 12 inches above soil in lieu of the code required 8 inches City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 12 of 28 5100 - Exterior Enclosure 5110 - Exterior Walls 5111 —Stucco/ Plaster .1. The Builder/Developer shall investigate the condition of studs and ceiling joist to be sure framing members comply with appropriate code. .2. Install or reset all electrical boxes to new surface level. .3. Exterior angles shall be protected with woven or welded wire fabric of equivalent strength, or corner bead. .4. A surface inspection is required after sandblasting and before re-stuccoing by the EDA. .5. Application: A. Portland Cement plastering work shall be three-coat work when applied over metal and wire lath/wrap. B. Scratch (first) coat: Apply with sufficient material and pressure to fill solidly all openings in the lath/wrap, and to cover wall, and then scratch to rough surface. Allow to dry a minimum of two days. (Example: complete scratch coat Tuesday, start brown coat Friday). C. Brown (second) coat: Apply after scratch coat has set firm and hard, bring out to grounds, and straighten to a true surface with rod and derby; leave rough, ready to receive finish coat. Surface shall not have variation greater than %" in any direction under a five-foot straight edge. Allow to dry a minimum of seven full days before applying color coat. (Example: complete brown coat on Tues., color coat not to start until following Wed.). D. Finish (color) coats: Portland Cement and Lime Finish Coats-Apply over base coats which have set and surface-dry; lay on well, double back and fill out to a true, even surface. Thickness shall be 1/16"to 1/8", then texture as specified. E. When structure is to have lath/wrap and stucco over existing siding,the Builder/Developer is to remove door and window casing; trim out with metal edging or stucco molding, and seal. F. Exterior lath/wrap to be applied as per California Building Code. G. Stucco Color Coat: La Habra, Bauer, or equal. 5112— Exterior Insulation .1. Materials used for insulation shall be of proven effectiveness and adequate durability so as to ensure that required ratings concerning heat transmission, sound control and fire rating are attained. A. Manville, Owens/Corning, USG; or equal. B. Proper sound insulation shall be used at all walls. C. GREEN OPPORTUNITY: Use cellulose insulation. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 13 of 28 .2. Insulation in contact with the ground shall be installed so as not to be adversely affected by soil, vermin and water. .3. Shall be installed in accordance with Energy Conservation Standards administered by the Building & Safety Division of the City of San Bernardino. .4. Attics: A. If all exterior walls of house are not insulated, bring to R-38 rating (12"). B. If all exterior walls are insulated and/or new addition, insulate to R-30 rating (9"). C GREEN OPPORTUNITY. All attic spaces are to receive insulation. .5. Walls: A. All exposed exterior walls and new addition, insulated to R-11 rating (3 '/"). .6. Water Heater: A. If it has access from outside or in garage, install R-6 rating insulation blanket and wrap all exposed water lines with pipe insulation. 8 GREEN OPPORTUNITY: Provide insulation at all water heaters 5113—Caulking and Joint Sealants .1. Materials used for caulking and sealants shall be suitable for the use intended, and shall be compatible with the materials to which they are applied and with any finish that may be applied over them. 5120 - Exterior Windows .1. When required shall be made easily openable, replace sash cords and weights or install spring loaded sash balances, as necessary. .2. Windows and operating hardware shall be installed in accordance with the recommendations of the manufacturer. .3. When aluminum single hung or slider window(s) is required and the frames are not to be taken out, use International Window Corporation, Keller, or equal (block frame), to fit existing opening. Caulk window frame before installing, including necessary trim. .4. When new aluminum slider or single hung window(s) installation is required, provide header(s), trimmers, flashing, International Window Corporation, Keller, or equal (standard frame). .5. Operating windows shall be manufactured units consisting of the frame, sill, sash, weather-stripping, and operating hardware. Job site assembled windows composed of frames and sashes made by different manufacturers are not acceptable. .6. Glazing: A. When replacing glass, thickness shall be as recommended by the manufacturer for the specific use. B. All bathroom windows shall be glazed with obscure glass. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 14 of 28 C. Glass set in wood shall be secured in place with springs or glazing points and face puttied, wood and putty to be primed and painted. D. Glass set in metal shall be secured in place with glazing clips, back and face puttied with appropriate material, metal and putty to be primed and painted. E. All glass shall be cleaned, with no cracks or rattles (new installation only). F. Re-putty shall mean to replace all damage, loose, and missing putty. .7. Weather-stripping shall be properly fitted to eliminate excessive infiltration of dust, snow, or rain. .8. Screens: A. Screens shall be installed on all openable windows. B. When re-screening or new screens are required, they shall be aluminum frames, aluminum screening; tight fitting and easily removed. C. Nylon screens on newly installed windows and combination doors may be acceptable, unless otherwise requested or stated. .9. If a window of any kind must be installed into the wet area of the tub or snower surround, it must: A. Contain a sill made of material that is water impermeable , such as marble or Corian, not tiled and grouted. B. Have a sill that is pan-flashed or sealed. C. Have frame made of moisture-tolerant material. .10. GREEN OPPORTUNITY: Replace existing windows and provide new windows with a high energy and low-e performance rating .11. GREEN OPPORTUNITY Provide awnings, overhangs, or other shading devices on exterior windows. 5130 - Exterior Doors /Garage Doors .1. All exterior doors will be wood or metal finish (no hardboard). Primed/painted or stained/varnished. .2. Doors shall be durable, installed in good operating condition, free of defects, latch readily and lock securely. .3. Doors shall fit opening and operate properly. .4. All new door installation shall include new hinges and all necessary trim. .5. Entry Doors: A. Exterior entry doors shall be side-hinged doors not less than 3 ft. in width and 6 ft. 8 in. in height. B. 1 3/4"solid core- Birch, Mahogany, Luan; unless existing jamb takes 1 3/8" door. C. 3 each -4"x 4" butt hinges, unless existing jamb takes 1 3/8" door, then 3-3'/l"x 3 'F" butt hinges. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 15 of 28 D. Exterior door frames shall be treated against decay. E. Locks - Kwikset, Schlage, or equal. .6. Garage Doors: A. Steel frame construction. B. Installing new garage hardware or replacement hardware shall comply with the following safety notice: ... FOR YOUR SAFETY ... California State Assembly#772 directed the Commission of Housing and Community Development to change the appropriate rules and regulations in ways that, "ARE REASONABLY NECESSARY TO PREVENT THE DEATH OR INJURY OF PERSONS OR DAMAGE RESULTING FROM THE BREAKING OF GARAGE DOORS SPRINGS". (quoted from Assembly Bill#772) .7. Weather-stripping shall be applied to all exterior doors and interior garage door. .8. Weather-stripping shall be aluminum and vinyl. Install after surfaces are finished and dry. .9. Thresholds and door shoes shall be installed at all exterior doors and interior garage doors and shall be aluminum thresholds, and aluminum/vinyl with drip cap door shoes (channel type), sealed to be watertight. .10. Exterior jambs will be rabbet type (fit wall thickness) and to include new wood (pine) casing material. Replace stucco molding only if required. .11. A safety door check shall be provided on all outward opening doors, including storm and screen doors. .12. Locking devices at doors and windows shall be as follows: A. Each exterior doorway and each doorway leading to garage areas, terraces, balconies, or other areas affording easy access to the premises shall be protected by a door which, if not a sliding door, shall be equipped with a deadlock using either an interlocking vertical bolt and striker, a minimum of 1.2 in. throw dead bolt or a minimum 1/2 in. throw self-locking dead latch. Locks shall not require the use of a key for operation from the inside. B. All sliding doors, first floor and basement windows and windows opening onto stairways, fire escapes, porches, terraces, balconies or other areas affording easy access to the premises shall be equipped with a locking device. A sliding door used as a main or service entrance shall be equipped with a keyed locking device. .13. Screens shall be aluminum/satin finish with latch set and pneumatic closure or equal. .14. Security Screen—Jamb/frame will be 1' 1/4"x 1' 1/4" (18 gauge)with 3/4 x 3/4"center framing (18 gauge) and heavy gauge metal screening. Combination (Bel-Aire) -Solid core (no panels). 1 3/8"door, 3 - 3%"x 3 Y2" butt hinges; 1 %" Locks- Kwikset, Schlage, or equal. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 16 of 26 5140- Flashing .1. Flashing shall have a service life at least equal to that of the assemblies into which it is built. .2. Counter flashing is considered exposed flashing and shall be constructed of sheet metal. .3. Alternate products or systems of bitumen-impregnated plastic or elastomeric materials may be used for flashing if they are installed in accordance with the manufacturer's recommendations and are acceptable to the EDA. .4. All openings between wood or metal and masonry shall be caulked with a non- hardening caulking compound. 5200— Roofing 5210 - Roof Coverings .1. Strip- Means to remove "all" roofing material to sheathing, with inspection of sheathing prior to installation of new roofing. .2. The Builder/Developer shall guarantee the owner to maintain the entire roofing, and counterflashing in a watertight condition for a period of fifteen years. .3. Shingles— A. Shall be fiberglass of 151b. felt. B. New metal 1 '/2" drip edge and roof jacks (form over shingles, seal around all pipes). .4. Built- Up/ Roll Roofing Cap A. Roll roofing cap to be a minimum of 90 lb. roofing paper and must bear a class "C" UL listing. B. One 90 lb. cap sheet to be installed over two layers of 15 lb. felt paper, saturated with at least 20 lb. of hot mopped tar, between layers. C. All base sheets to be well nailed with approved galvanized nails providing a minimum 3/4" penetration into a firm solid sheathed surface. D. New metal 1/2"drip edge and roof jacks. .5. GREEN OPPORTUNITY. Provide reflective (high-albedo) roofing systems with an Energy Star rating. 5220—Gutters and Downspouts .1. Gutters and downspouts shall be provided at all projects. .2. Gutters and downspouts- Shall be a minimum of 26 gauge galvanized metal, or vinyl material. .3. Gutters shall be sloped to downspout and supported a maximum of 3'apart. .4. End caps, corner joints, splices, outlet tubes shall be soldered or have watertight joints. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 17 of 28 .5. Downspouts shall be fastened at top, bottom, and approximately every 6', and directed to drain away from the structure. .6. Downspouts shall be sized on the basis of 100 square feet of roof surface to 1 square inch of leader. More or less leader area may be required by the EDA. .7. Scuppers shall be installed at the outfall end of a valley for special roof designs, such as"butterfly" roofs. .8. Scuppers shall be installed for overflow of all roofs enclosed by parapet walls. 9. GREEN OPPORTUNITY Provide a simple rain water harvesting system for use on irrigation. 6000 -Interior Construction 6010 — Partitions I Ceilings 6011 — Interior Insulation .1. Materials used for insulation shall be of proven effectiveness and adequate durability so as to ensure that required ratings concerning heat transmission, sound control and fire rating are attained. A. Manville, Owens/Corning, or equal. B. GREEN OPPORTUNITY Use cellulose insulation. .2. Insulation in contact with the ground shall be installed so as not to be adversely affected by soil, vermin and water. .3. Shall be installed in accordance with Energy Conservation Standards administered by the Building &Safety Division of the City of San Bernardino. 6012 - Drywall .1. When installation of drywall is specified, provide %" U.S. Gypsum wall board or equal, unless otherwise specified. 2. GREEN OPPRTUNITY., Select drywall products with a high recycled content and use taping materials and joint compound without hazardous additives that aid in drying and setting. .3. All joints and inside corners shall be taped; outside comers shall have corner bead troweled with joint compound (a minimum of three coats, and smoothly sanded or textured). .4. If kitchen base cabinets, toilet or lavatory are removed, and the drywall is to be replaced, it must be replaced with green board or equal. .5. If tub surrounding drywall is to be replaced, it must be replaced with wonder (cement) board. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 18 of 28 6. All wall surfaces to receive ceramic tile shall receive wonder (cement) board or plaster in accordance with the following: A. Portland Cement plastering work shall be three-coat work when applied over metal and wire lath/wrap. B. Scratch (first) coat:Apply with sufficient material and pressure to fill solidly all openings in the lath/wrap, and to cover wall, and then scratch to rough surface. Allow to dry a minimum of two days (Example: complete scratch coat Tuesday, start brown coat Friday). C. Brown (second) coat: Apply after scratch coat has set firm and hard, bring out to grounds, and straighten to a true surface with rod and derby; leave rough, ready to receive finish coat. Surface shall not have variation greater than %" in any direction under a five-foot straight edge. Allow to dry a minimum of seven full days before applying color coat(Example: complete brown coat on Tues., color coat not to start until following Wed.). 6020 - Interior Doors .1. Doors shall be durable, installed in good operating condition, free of defects, latch readily and close securely. .2. Doors shall fit opening and operate properly. .3. All new door installation shall include new hinges and all necessary trim and hardware. .4. Interior Hinged /Closet/Bathroom Doors: A. Shall be side-hinged doors not less than 1 3/8"thick. B. At least 2 each 3 '/2" x 3 Y" butt hinges. C. Locks- Kwikset, Schlage, or equal. .5. Shower Door/Tub Enclosure: A. Shower Doors—MAAX, Kohler, or equal. Seal around frame and walls. B. Tub Enclosure- MAAX, Kohler, or equal. Seal around frame and walls .6. Door stops installed at all swinging doors shall be solid (no coil springs). .7. Interior jambs will be flat type (fit wall thickness) and to include new wood (pine) material stop molding and casing (both sides). 7000 - Finishes 7010—Ceramic Tile .1. Install ceramic tile where identified. .2. Ceramic tile to be American Olean, Dal-Tile, or equal. 3 GREEN OPPORTUNITY Use ceramic tile with high recycled content .4. Submit a complete range of colors and types for the EW ,selection. One of each color of type selected shall be retained by the EDA. All m a )rials placed in the building shall match such samples. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 19 of 28 .5. Applications and installation of adhesive, primer, caulking compound, and prepared grout when used, shall be as recommended by manufacturer of the tile and in accordance with these standard specifications. .6. Ceramic tile shall be applied over a water-proof surface only(cement or wonder (cement) board). .7. At showers,the top of step shall have slight slope into shower. 7020 - Floor Finishes .1. The Builder/Developer shall provide all necessary floor preparation of existing surfaces to properly receive new flooring material. .2. Sub-flooring shall be a minimum thickness of 3/4" plywood or lx boards. .3. Underlayment shall have a maximum thickness 3/8" industrial particle board. .4. Install all flooring per manufacturer's recommendation. .5. Existing floor covering to be removed prior to installation of new floor. .6. Provide underlayment when sub-flooring is in such a condition to warrant replacement. Bathroom, kitchen, and laundry underlayment to be of water resistant material. .7. Surfaces to receive flooring shall be clean, dry, smooth, even, and without defects. .8. At Bathrooms, the toilet and lavatory cabinet shall be removed before flooring installed. Reinstall toilet and cabinets. .9. Install new baseboard or shoe after installation of flooring. If cove is required, it shall be formed integrally of matching sheet material. Adhesives shall be as recommended by manufacturer. .10. Coat all concrete floors on earth grade with concrete primer as recommended by manufacturer. .11. Leveling compound and crack filler-As manufactured by Aetna Manufacturing Company for concrete floors or equal. .12. Linoleum (sheet goods) - FHA base cushioned, Armstrong -Cambray or equal. .13. Vinyl Tile-Armstrong - Stylistic or equal. .14. Carpet-260z. ' A. Base, HUD/FHA bulletin UP-44c requirement. B. Pad -5/8" rebond high plush, HUD bulletin UP-72 requirement. .15. GREEN OPPORTUNITY: Provide greener carpeting such as: A. Products made from natural materials; B. Products that do not contain residues from dyes and finishes used in manufacturing; C. Products that do not have surface treatments to repel stains; D. Products with documented low VOC ofigassing; a` City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 20 of 28 E. Products with high recycled content, .16. Submit a complete range of colors and types for the EDA's selection. 7030 -Ceiling Finishes .1. Ceilings shall be drywalled and painted. No sprayed on acoustical ceilings (popcorn) will be allowed. 7040 - Painting .1. Lead Content: A. The definition states in part, ....... with respect to paint which is manufactured after June 22, 1977, lead-based paint means any paint containing more than six one- hundredths of one percent lead by weight(calculated as lead metal) in total non- volatile content of the paint or the equivalent measure of lead in the dried film of paint already applied". B. All contractors and sub-contractors on rehabilitation activities will comply with the Lead-Base Paint Regulation under 24 CFR Part 35, requiring: i. The prohibition of the use of lead-based paint in the rehabilitation of properties; ii. The elimination of immediate lead-based paint hazards in residential structures. .2. All paint shall have low VOC levels. .3. If exterior painting is required, caulk all exterior door and window frames to seal completely. Remove all loose and deteriorated putty on windows and re-putty before painting. When painting of exterior trim is specified, this shall include doors, windows, all frames, eaves, soffits, porches and all appendages. .4. If a paint to be used on exterior surfaces is not inherently mold resistant, a suitable fungicide shall be included in the formulation. .5. If repair of exterior surfaces is indicated, remove all broken and loose material by raking out, scraping and sanding if necessary. Repair with proper material for area being repaired, blending in with texture of area being repaired. Prime the repaired area prior to painting. .6. If interior painting is indicated, repair all cracks by W"scratch approximately 1/8"X 1/8" in walls and ceilings of all rooms being re-painted. Use proper type of patching material for areas being repaired. Fill all cracks and holes solid and blend in repaired areas with texture of surface being repaired. Prime cracked areas prior to painting. When painting of walls and ceilings of a room is specified, this shall include all trim, windows and door frames, closets, and cabinets(inside). .7. All surfaces to be painted shall be free of dirt, dust, grease before painting is started. All knots, pitch streaks, and sappy spots shall be first sealed with shellac or sealer approved for use with materials as specified, before subsequent coats are applied. Each coat shall be allowed to dry before subsequent coat is applied. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 21 of 28 .8. If it should become necessary, in order to give good coverage because of surface condition of the paint color(s), it is the obligation of the Builder/Developer to apply sufficient coats to obtain complete coverage. .9. All new drywall shall be primed with one coat of Drywall Sealer/Primer before the application of the finish coat, unless otherwise specified. .10. Paint to be Dunn-Edwards, Glidden, Sinclair or equal. EDA to select color(s) and finish. .11. Paint for kitchen, service area, bathroom(s)to be a durable and washable gloss finish (unless EDA requests a semi-gloss). .12. Stain— Exteriorrinterior application (Minwax, Behr, or equal). .13. Varnish - Exterior/interior application (Behr, Varathane Elite, or equal). .14. Spar gloss or satin, EDA to specify (Behr, Varathane Elite, or equal). .15. Spar gloss or satin, EDA to specify (Behr, Varathane Elite, or equal). .16. Paint application shall consist of two coats on old material, and three coats on bear wood or new material. The top and bottom edges of interior doors shall be sealed (painted or varnished) with one coat, exterior doors with two coats. .17. Application of paints, stains, or other coating systems shall be in strict accordance with manufacturer's directions and shall comply with the following: A. Exterior Wood Siding, Millwork and Trim i. Knots, resinous wood, and nail holes shall be sealed with a prepared sealer or aluminum paint prior to puttying and priming. Any nail holes or cracks in surfaces to be painted shall be filled with putty. ii. A prime coat shall be applied to all surfaces to be painted before or immediately after installation. Primer shall be formulated specifically for application to unfinished wood. Finish coats formulated to serve as primers may be used. iii. One of the following finish systems shall be applied. Coverage shall be that which will provide at least the minimum thickness recommended by the manufacturer. a. Oil paint systems. b. Latex paint systems. c. Pigmented stains as per manufacturer's directions. d. Clear penetrating preservatives or water repellent finishing systems. iv. The top and bottom of exterior wood doors, casement sash, awning sash and the bottom of double hung sash shall receive two coats of paint or sealer. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 22 of 28 V. Prior to erection, all edges of vertical siding shall be sealed with a heavy coat of house paint primer,water repellent stain, exterior aluminum house paint or sealer. Wood batten strips shall be backed-primed or sealed. B. Wood Shingles, Shakes, Rough-sawn Siding. L Two coats of oil stain, pigmented oil stain, or an oil shingle paint shall be applied. C. Hardboard and Softwood Plywood Siding. I. These sidings shall be finished in accordance with the manufacturer's direction. D. Wood Porch Floors and Decks. L One coat of primer and two coats of floor and deck enamel designed for exterior use shall be applied. Joints between floor and wall shall be caulked. E. Unfinished Surfaces. I. Shingles and board siding of vertical grain cedar, redwood and bald cypress may be left unfinished. F. Exterior Concrete Masonry Units or Concrete Brick I. At least two coats of masonry paint shall be applied. ii. Concrete masonry units or concrete brick, except small areas of foundation walls, shall be painted to provide a water resistant finish. iii. High density concrete brick or solid split block forming the outer face of double unit walls(veneer, cavity walls, etc.) may be left unpainted when acceptable to the EDA. G. Exterior Galvanized Steel or Iron L Field painting shall consist of two coats. One coat shall be a primer formulated specifically for galvanized surfaces, and the second coat shall be a finish coat. A finish coat formulated to serve as a primer may be used as the first coat. H. Exterior Steel, Iron or Terne Plate ii. Steel or iron, except stainless steel, weathering steels, or steel treated with coatings to provide corrosion resistance, shall be painted. iii. A rust inhibitive primer and a finish coat shall be applied. I. Interior Millwork and Trim L All mill work and trim, including windows; interior doors; window, door and base trim; paneling and closet shelving and trim shall be finished by painting or natural finishing. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 23 of 28 ii. If the surface is open grain wood, it shall be filled or sealed to prevent the grain from rising. Surfaces shall be treated with a primer. One or more finish coats shall be applied to provide a smooth surface and good hiding. iii. Natural finishes include stain-wax, stain followed by one or more coats of varnish, clear coats of varnish with or without wiped paint undercoats or oil and wax finishes. J. Wood Floors L If Flooring is open grain wood, one coat of filler shall be applied. All excess shall be wiped off. ii. Flooring shall be finished with: a. One or two coats of penetrating sealer and one coat of wax; or b. Two coats of varnish and one coat of wax; or c. Two coats of polyurethane; or d. One or more coats of factory-applied finish. K. Interior Plaster and Gypsum -Walls and Ceilings L Plaster surfaces may be painted, covered or left unfinished, except for surfaces of kitchens and baths. If painted, a finished coat shall be applied over a primer-sealer, unless finish coats are of the self-priming type. ii. Gypsum wallboard shall be covered. If painted, one coat of wallboard sealer shall be applied unless finish coats are of the self-sealing type. Two finish coats shall be applied over the sealer. One finish coat, except in kitchen and baths, may be acceptable if good coverage is obtained. L. Interior Metal L Non-ferrous metals or wrought iron may be painted or left unfinished. Other metals shall be painted in accordance with 609-3.4. M. Interior Concrete Floors i. If painted, at least two coats of resin emulsion paint, a solvent rubber paint or a Floor and deck enamel shall be applied. If oil paint is used, the surface shall be neutralized before painting. ii. A coat of wax shall be applied over paint, stain or an integral finish_ N. Wall Coverings L Covering material shall be secured to a suitable base in accordance with the manufacturer's directions. ii. All rooms that have new wall covering installed will include molding, trim, base, and painting (if required). City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 24 of 28 8100— Furnishings 8110 —Carpentry, Cabinets, and Millwork .1. All manufactured factory finished cabinets shall comply with ANSI A161.1-86, Recommended Minimum Construction and Performance for Kitchen and Vanity Cabinets, or with an equivalent standard. .2. Workmanship: All interior wood finish, cabinet and casework shall be smooth dressed, well sanded, and thoroughly cleaned before priming. All material showing machinery, sandpaper, or other defacing marks will be rejected. Interior wood finish or cabinet work shall not be installed on newly plastered walls until the plaster in that section is reasonable dry and approved by the EDA. .3. All interior wood finish, doors, frames, and other cabinet work or fixed wood equipment shall be properly installed, level plumb, and true. Members shall be neatly and accurately scribe in place, maintaining full lengths without splicing, except where the use of full lengths would be impractical or impossible, and then if joined, butt joints shall be beveled. Replacement and installation of new trim or molding shall match existing in size and profile or otherwise be reasonably appropriate upon finished installation. .4. All cabinets(kitchen base and wall, bathroom lavatory, etc.) shall be a minimum of birch plywood construction (stain grade quality), shop fabricated casework, with all necessary hardware. Shelving shall not be less than 3/4" pine, plywood, or particle board. Kitchen base cabinets shall have a built-in bread board. .5. All cabinets and trim shall be scribe to contacting surfaces and shall be straight, plumb level and in true alignment, closely fitted, and rigidly fastened in place. .6. Countertops: A. Top material shall be phenolic laminate, vinyl plastic covering, ceramic tile, stainless steel or other material suitable for its intended use. B. The top material shall be securely bonded to a reinforced steel core, to 5/8 in. plywood, or to any other equivalent material. C. At least a 3 in. back and end splash shall be provided against all abutting vertical surfaces which are not water and grease resistant. When a back splash is omitted, the joints at the juncture of the counter top and vertical surfaces shall be tight and sealed. D. All edges, including the sink and any built-in surface units, shall have a non- corrodible metal molding or other suitable edging. E. High Pressured Laminated Plastic (Formica or equal)-Shall be constructed with a bullnose front edge, minimum of a standard back splash where it abuts walls, and full length of cabinets. If laminated plastic ends at wall, provide end splash (material must be identical to counter top original color). Scribe and closely fitted to adjacent work, and securely anchored to cabinets. Installation of sinks shall have required mounting flange and sealed against leaking. No butcher block unless otherwise requested or stated by the EDA. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 25 of 28 F. Ceramic Tile - Shall be applied over a plastic cement base secured to 3/4" exterior plywood secured to the cabinets. Raise front edge, minimum of a standard back splash, and sealed at edges of full length cabinets. (See Ceramic Tile Specification). G. GREEN OPPORTUNITY. Countertops shall be made of natural stone (granite), tiles, or manufactured solid surfaces (Corian), .7. Interior woodwork: A. Trim (D.F.) "B or better". B. Shelving - Particle board or#2 shelving. 9000—Plumbing, Mechanical, Electrical 9010 - Plumbing Fixtures .1. All fixture installation is to include trap, vent, faucets, and all trim necessary to mount fixture in an approved manner, and to include repair of damaged areas affected by the installation. When kitchen or lavatory faucet is replaced, it will also include risers. Replace all angle stops. .2. Fixtures: A. Water closets- Deep bowl (round or elongated per EDA request). American Standard - Hydra; Eljer—Titan; Kohler; or equal. Handicap(17" high). Must be rated at no more than 1.6 gallons per flush. GREEN OPPORTUNITY Use of a high-efficiency toilet that uses less than 1.6 gallons per flush is recommended. B. Bathtubs - 5' pressed steel-American Standard; Kohler, or equal C. Lavatories—American Standard, Kohler, or equal. D. Kitchen Sinks-Single or double compartment enameled cast iron - Kohler or equal; Single or double compartment stainless steel (7" depth, 20 gauge minimum thickness) - Sterling or equal. E. Garbage Disposal- Insinkerator—Badger 2, 1/2 HP (3 year warranty) or equal. F. Laundry Sinks-American Shower& Bath, or equal. G. Faucets i. Lavatory- Delta, Peerless, Kohler, or equal. ii. Tub/Shower Diverter- Price Pfister, Kohler, or equal. iii. Shower- Price Pfister, Kohler, or equal. iv. GREEN OPPORTUNITY: Provide low flow faucets and shower heads or fit standard faucets with a Flow reducing aerator. H. Bathtubs- 5' Lasco; Hess Co; or equal. I. Tub Wall Kits- Plaskolite, Elite; Nova, Seville; or equal. J. Shower- Lasco, or equal. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 26 of 28 K. WATER HEATERS: L Shall be Reliance; Galaxie; Whirlpool; or equal, with an eight(8) year warranty. Size shall be as required to service property. ii. All shall have pressure/temperature relief valve with a drain line to the outside; or if located on a concrete floor in center of house- pressure/temperature relief valve and drain line shall be installed per Building and Safety requirements. iii. All units shall be secured to walls. iv. All units shall be insulated. V. GREEN OPPORTUNITY: Water heater should have a high-efficiency rating. 9020 - Domestic Water Distribution .1. Each dwelling shall be provided with a continuing and sufficient supply of safe water under adequate pressure and of appropriate quality for all household uses, and one that will not impair the functioning or durability of the plumbing system or attachments. .2. Connection shall be made to a publicly owned or publicly controlled water supply system that is adequate to serve the demands of the project. .3. Provide all connections to risers or fixtures from top to mains so that the entire system can be drained at low point. .4. Provide hot water supply to all fixtures except water closets. .5. Support piping from the building structure by means of hangers to maintain required grading and pitching of lines and to prevent vibration. .6. GREEN OPPORTUNITY: All hot water lines shall be insulated. .7. GREEN OPPORTUNITY: Consider the use of PEX piping. 8. GREEN OPPORTUNITY Provide a single-throw shut-off valve at service to clothes washing machines. If machine located above a livable space, provide a floor drain and shower pan under the washing machine. 9030 -Sanitary Waste .1. Roto Root(clean) all drain lines to street through clean-out cap, roof vent, etc. .2. Each dwelling shall be provided with a water-carried system adequate to dispose of domestic wastes in a manner which will not create a nuisance or endanger the health of the occupants or the public. .3. Connection shall be made to a publicly owned or publicly controlled system that is adequate to serve the needs of the project. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 27 of 28 9100 - Heating, Ventilating, and Air Conditioning (HVAC) 9110— Heating and Ventilating .1. Heating and ventilating equipment shall be Trans; Bryant; Carrier; or equal, as appropriate to the situation. .2. GREEN OPPORTUNITY: Equipment should be rated as high effieciency. .3. GREEN OPPORTUNITY. Evaluate existing heating and ventilation system and down size or reconfigure to be more efficient. Do not oversize equipment. .4. GREEN OPPORTUNITY: Consideration should be given to using equipment that provides alternatives to conventional refrigerant, such as non ozone depleting HFC refrigerants. 5. GREEN OPPORTUNITY Provide ceiling fans in bed rooms and living spaces. .6. Provide wall thermostat with complete vent system, attic shield, roof jack, and gas piping/shut-off valve. 7. GREEN OPPORTUNITY Install programmable thermostats with both daytime and nighttime setbacks. Separate control of different spaces into zones so that the unit works more efficiently. 8. GREEN OPPORTUNITY Provide duct cleaning prior to turn over .9. Install in an approved manner and location. .10. Crawl Space Ventilation: A. The space between the bottom of the floor joists and the earth under any building (except such space as is occupied by a basement or cellar) shall be provided with a sufficient number of ventilating openings through foundation walls or exterior walls to ensure ample ventilation. Such openings shall be covered with a corrosion-resistant wire mesh with a mesh size not greater than 1/2 in. nor less than 1/4 in. in any dimension. The minimum net area of ventilating openings shall not be less than 1 sq. ft. for each 150 sq. ft. of crawl space area. B. One ventilating opening shall be within 3 ft. of each corner of each building where such openings are required. .11. Attic Space Ventilation A. Cross ventilation shall be provided for each separate space. Ventilation openings shall be protected against the entrance of rain and snow. B. The ratio of the total net free ventilation area to the area of ceiling shall be not less than 1/150, except that the ratio may be 1/300 if: L A vapor retarder having a transmission rate not exceeding one perm is installed on the warm side of the ceiling; ii. Between 25 and 50 percent of the required ventilating area is provided by vents located in the eaves or cornices with the balance of the required ventilation provided by ventilators located at least 3'-0" above the vents in the eaves or cornices; or City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 28 of 28 iii. The attic space is accessible and suitable for future habitable rooms or walled-off storage spaces have at least 50% of the required ventilating area located in the upper part of the ventilated spaces as near the high point of the roof as practicable and above the probable level of any future ceiling. 9200 — Fire Protection Systems 9210— Fire Protection Specialties .1. Provide smoke detectors that are U.L. approved; First Alert SA150LT, or equal. Hard wire will have battery back-up. 2. GREEN OPPORTUNITY Provide carbon monoxide detectors. 9300 - Electrical Systems 9310 - Electrical Service and Distribution .1. When required, provide a new electrical service box/meter. All existing circuits shall be checked out and split as required. All new loads, outlets, lights, etc., must be on additional circuits, unless prior approval is received from the EDA. .2. Electrical Service installed at location shall be as recommended by Edison Company. .3. Check all services and verify all electrical service, circuits (marking panel if not done); replacing all faulty outlets, switches, damage and missing cover plates; for house and garage. .4. When encountering non-complying wiring, it is to be removed in its entirety. This is to include boxes, lights, old panels (unless used for junction box), etc.; and to include repair, patching, and painting of all areas affected (to match existing)--ceilings,walls, etc. All new wiring shall be concealed within walls, ceilings unless approval from the EDA is obtained prior to installation. 5. GREEN OPPORTUNITY All bulbs shall be fluorescent. No incandescent lighting will be allowed. 6. GREEN OPPORTUNITY: Avoid recessed lighting. When required use insulation- contact fixtures that seal tightly and allow insulation to be packed against them. T GREEN OPPORTUNITY. Install dimmer switches at all living areas. Restrooms shall have motion detector switches. .8. GREEN OPPORTUNITY. All low voltage (telephone, data, television) shall be run in conduits to provide for future expansion and/or replacement. AFFORDABLE HOUSING SOLUTIONS OF SAN BERNARDINO,INC. DEVELOPMENT AGREEMENT FOR INTERMEDIARY SERVICES [INLAND EMPIRE CONCERNED AFRICAN AMERICAN CHURCHES] This Development Agreement for Intermediary Services (the "Agreement") is made and entered into as of March 15, 2010, by and between Affordable Housing Solutions of San Bernardino, Inc. ("AHS"), a California 501(c)(3) public benefit corporation, and Inland Empire Concerned African American Churches, a California 501(c)(3) public benefit corporation, ("Consultant"). NOW, THEREFORE, IN CONSIDERATION OF THE COVENANTS AND MUTUAL PROMISES CONTAINED HEREIN AND FOR SUCH OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED, THE PARTIES HERETO AGREE AS FOLLOWS: 1. Supervision of Consultant. The AHS officers and or their assignee's designated in Exhibit "F"attached hereto (collectively, the "AHS Representatives") shall be responsible for the direction of any work to be performed by the Consultant and any other consultants or subconsultants to AHS under this Agreement. The Consultant shall not undertake any work under the terms of this Agreement, unless instructed to do so by any one of the AHS Representatives. No other AHS representative is authorized by AHS to request services from the Consultant, pursuant to this Agreement. Approval by any one of the AHS Representatives shall constitute approval by AHS. 2. Term of Agreement. The term of this Agreement shall commence on the date first appearing in this Agreement (the "Effective Date") and will terminate six (6) months after this date, unless earlier terminated as provided in this Agreement. AHS will have the option to extend the term of this Agreement at the sole option and discretion of AHS with the written consent of the Consultant. AHS reserves the right through the actions of the Chief Executive Officer or the Chief Operating Officer of AHS to terminate this Agreement at any time either with or without cause and at the sole convenience of AHS upon delivery of notice of termination to the Consultant; provided, however, that upon the effective date of any such termination, AHS shall be responsible to pay and/or reimburse the Consultant for all services, materials and supplies as may have been furnished to AHS prior to the date of the termination of this Agreement in accordance with the Scope of Services as referenced in Section 3. 3. Scope of Consultant Services. AHS hereby retains the Consultant to provide the professional consulting services set forth in the Scope of Services attached hereto as Exhibit"E" and incorporated herein by this reference. The Consultant hereby agrees to perform the work set forth in the Scope of Services, in accordance with the terms of this Agreement. The Consultant shall perform the services as set forth on said Scope of Services within the time periods to be identified by the appropriate AHS Representative. The Consultant shall comply with those laws, regulations or ordinances governing fair housing and equal opportunity practices and the - I- P VgentlesVIgm MnhmeMMgrM Atmchm<melAgrmu-AmcM 3010103.15-10�MC Devebgmcm AVm -FM.&I abatement of lead-based paint, asbestos and mold practices as required under the Neighborhood Stabilization Program ("NHS") promulgated by the United States Department of Housing and Urban Development("HUD")pursuant to the provisions of the Housing and Economic Recovery Act of 2008, Public Law 110-289 — July 30, 2008, Title III — Emergency Assistance for the Redevelopment of Abandoned and Foreclosed Homes, Section 2301, et seq., as the same may be hereafter amended, restated or supplemented from time-to-time, and the Notice of Allocations, Application Procedures, Regulatory Waivers Granted to and Alternative Requirements for Emergency Assistance for Redevelopment of Abandoned and Foreclosed Homes Grantees under the Housing and Economic Recovery Act, 2008 issued by HUD and found at the Federal RegisterNol. 73, No. 194/Monday, October 6, 2008/Notices, as the same may be hereafter amended,restated or supplemented from time-to-time(collectively,the"NSP Regulations") 4. Payment by AHS for Work Performed by the Consultant. A. AHS shall compensate the Consultant for completion of the services described in the Scope of Services set forth in Exhibit "E", "Scope of Services", in accordance with the guidelines stipulated in Exhibit"H","Consultant Payment and Reimbursement". B. The compensation designated in subsection 4.A. shall be the "Total Fee" for the performance of the work and the delivery of the final work product materials, as set forth in the Scope of Services for each property acquired directly or indirectly by AHS for which the services were provided by the Consultant in accordance with this Agreement. The Total Fee shall include, but not be limited to, the materials and salaries of all subcontractors and vendors retained by the Consultant and all employees of the Consultant to perform work pursuant to this Agreement and all general overhead expenses of the Consultant inclusive of all costs and expenses incurred for mileage, travel, graphics, telephone, printing, fax transmission, postage, copies and such other expenses related to completion of the work set forth in the Scope of Services. C. The Consultant shall invoice AHS for eligible predevelopment expenses and work performed by the Consultant under this Agreement through funds draw requests submitted by the Consultant in accordance with AHS's policies and procedures, and approved by AHS, on a monthly basis, or on a more frequent basis if requested by the Consultant and approved by AHS, with the first draw request occurring no earlier than two(2)weeks after the Effective Date. D. The Consultant shall submit draw requests under this Agreement to: Affordable Housing Solutions of San Bernardino, Inc. Attention: Chief Operating Officer 201 North"E" Street, Suite 301 San Bernardino, California 92401 E. The Consultant's funds draw request shall set forth the cost of any direct labor and materials incurred in performance of the Scope of Services, the appropriate portion of fees described in Exhibit "H", as applicable, the cost of any permits or licenses required to perform -2- P M.hm.,\Agrn¢r .d 201MA3-15-10 VKA CO 1.p.Ag mrnn Fi-1 the Scope of Services, and any other costs approved by AHS. Each draw request submitted by the Consultant shall include copies of all third party invoices for any subcontractors or other consultants hired, any invoices for materials, any conditional and unconditional lien releases for invoices submitted by subcontractors or other consultants, and any forms or documents provided by AHS that AHS requires to be included as part of the Consultant's draw request. All funds draw requests shall be signed by the Consultant and approved and signed by an AHS Representative or an AHS designated agent. Upon receipt of the Consultant's draw request package, AHS shall review the draw request package and notify the Consultant whether it approves of the draw request within three (3) working days after receipt of the draw request. AHS shall issue a check or wire transfer to the Consultant equal to the total amount of those costs included in the draw request and approved by AHS. 5. Records Retention. Records,maps, field notes and supporting documents and all other records pertaining to the use of funds paid to the Consultant hereunder shall be retained by the Consultant and shall be made available to AHS for examination and for purposes of performing an audit for a period of five (5) years from the date of expiration or termination of this Agreement or for a longer period, as required by law. Such records shall be available to AHS and to appropriate county, state or federal agencies and officials for inspection during the regular business hours of the Consultant. If the Consultant does not maintain regular business hours, then such records shall be available for inspection between the hours of 9 a.m. and 5 p.m. Monday through Friday, excluding federal and state government holidays. In the event of litigation or an audit relating to this Agreement or funds paid to the Consultant by AHS under this Agreement, such records shall be retained by the Consultant until all such litigation or audit has been resolved. 6. Indemnification. The Consultant shall defend, indemnify and hold harmless AHS, its officers, employees, representatives, and agents (collectively, the "Indemnified Parties") from and against any and all actions, suits, proceedings, claims, demands, losses, costs and expenses, including audit fees and other audit related costs, legal costs and attorneys fees, for injury or damage of any type claimed as a result of the acts or omissions of the Consultant, its officers, employees, subcontractors and agents, arising from or related to performance by the Consultant of the work required under this Agreement; provided, however, in no event shall the Consultant be liable to the Indemnified Parties in the event that any such actions, suits, proceedings, claims, demands, losses, costs and expenses result from the gross negligence, fraudulent conduct or willful misconduct of the Indemnified Parties, or any one of them. Moreover, the Consultant shall not be liable to the Indemnified Parties for defects not normally identified. Notwithstanding the foregoing, under no circumstances shall the Consultant be liable to the Indemnified Parties as a result of the failure of AHS to provide to the Consultant any amounts due to the Consultant in accordance with this Agreement, unless such failure was the result of gross negligence, fraudulent conduct or willful misconduct on the part of the Consultant. -3- PV.;: Agreement-Final.dm Notwithstanding anything to the contrary provided in this Agreement, it is specifically understood and agreed, such agreement being a primary consideration for the execution of this Agreement by the Consultant, that there shall be absolutely no personal liability on the part of any shareholder, director, officer, manager, member or employee of the Consultant with respect to any of the terms, covenants and conditions of this Agreement. The Agency hereby waives all claims, demands and causes of action against the shareholders, directors, officers, members or employees of the Consultant in the event of any breach by the Consultant of any of the terms, covenants and conditions of this Agreement. 7. Insurance. The Consultant shall maintain insurance, as set forth in Exhibit "G" to this Agreement, throughout the term of this Agreement, or in lieu of this insurance coverage, the Consultant shall require its designated General Contractor to maintain such insurance as set forth in Exhibit "G" and name the Consultant, AHS and the Redevelopment Agency of the City of San Bernardino ("Agency") as Additional Insureds under such insurance. The Consultant shall remain liable to AHS pursuant to Section 6 above to the extent the Consultant is not covered by applicable insurance for all losses and damages incurred by AHS that are caused directly or indirectly through the actions or inactions, willful misconduct or negligence of the Consultant in the performance of the duties incurred by the Consultant pursuant to this Agreement. AHS shall maintain insurance against loss or damage to real property under an "all risk" or "special form" property insurance policy, which shall include coverage against all risks of direct physical loss, including loss by fire, lightning, terrorism, ordinance or law, and other risks normally included in the standard ISO special form (which shall include flood insurance if the property is located within a flood hazard area and which shall include earthquake insurance if the property is located in an area where earthquake insurance is customarily maintained for similar residential property). Such insurance shall be in amounts sufficient to prevent the Consultant from becoming a co-insurer under the policy, and in any event, after application of deductible, in amounts not less than 100% of the full insurable replacement cost. 8. Press Releases. Press or news releases, including photographs or public announcements, or confirmation of the same related to the work to be performed by the Consultant under this Agreement shall only be made by the Consultant with the prior written consent of AHS, which consent shall not be unreasonably withheld. This Section 8 does not apply to the advertising or other promotional materials used by the Consultant to sell the Rehabilitated Home. 9. Default and Remedies. A. The occurrence of any of the events listed in Exhibit "J", Section A.(1) through (7), shall after the giving of any written notice described therein, constitutes a default by the Consultant hereunder("Event of Default"). B. Upon the occurrence of an Event of Default, AHS may, in its sole discretion,take any of the actions listed in Exhibit"J", Section B.(1)through(7). -4- PU,WaM\ nde Anach tsWgenda Anachmm[sUgrmis W1010b1-15-10 MCAACD elapmmt Ag mmt-Ftvl doc C. Any failure or delay by a party in asserting any of its rights or remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a default. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties under this Agreement are cumulative and the exercise by any party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. D. The Consultant has the right to implement the remedies in Exhibit "J", Section C.(1) and (2), upon the default or failure of AHS to meet any of its obligations under this Agreement without curing such failure within thirty (30) calendar days after receipt of written notice of such failure from the Consultant specifying the nature of the event or deficiency giving rise to the default and the action required to cure such deficiency. 10. Termination. A. This Agreement may be terminated by either party for any reason by giving the other party fifteen(15) calendar days' prior written notice. AHS shall pay the Consultant for all work authorized by AHS and completed, prior to the effective termination date. B. In the event of a termination of this Agreement, the Consultant shall provide all documents, notes, maps, reports, data or other work product developed in performance of the Scope of Services of this Agreement to AHS within ten(10) calendar days after such termination and without additional charge to AHS. C. In the event of the expiration or early termination of this Agreement for any reason, AHS shall pay and/or reimburse the Consultant for all services, materials and supplies as may have been furnished to AHS prior to the date of the termination of this Agreement. 11. Notice. All notices given hereunder shall be in writing. Notices shall be presented in person or by certified or registered United States Mail, return receipt requested, postage prepaid or by overnight delivery by a nationally recognized delivery service to the addresses set forth below. Notice presented by United States Mail shall be deemed effective on the third (3rd) business day following the deposit of such Notice with the United States Postal Service. This Section 11 shall not prevent the parties hereto from giving notice by personal service or telephonically verified fax transmission, which shall be deemed effective upon actual receipt of such personal service or telephonic verification. Either party may change their address for receipt of written notice by notifying the other party in writing of a new address for delivering notice to such parry. CONSULTANT: Inland Empire Concerned African American Churches Attention: President 1777 West Baseline Road San Bernardino, CA 92411 -5- PUpWaMwn&A aamc,lMgc da Ntachm \Ag trA c"2010\D3-15-10�MC Dw6W=m AVe -Firel.dac AHS: Affordable Housing Solutions of San Bernardino, Inc. Attention: Carey K. Jenkins, Chief Operating Officer 201 North'IF' Street, Suite 301 San Bernardino, California 92401 Phone: (909)663-1044 Fax: (909) 888-9413 12. Compliance with Law. The Consultant shall comply with all local, state and federal laws, including, but not limited to, environmental acts, rules and regulations applicable to the work to be performed by the Consultant under this Agreement. The Consultant shall maintain all necessary licenses and registrations for the lawful performance of the work required of the Consultant under this Agreement. 13. Nondiscrimination. The Consultant shall not discriminate against any person on the basis of race, color, creed, religion, natural origin, ancestry, sex, marital status or physical handicap in the performance of the Scope of Services of this Agreement. Without limitation, the Consultant hereby certifies that it will not discriminate against any employee or applicant for employment because of race, color, religion, sex, marital status or national origin. Further, the Consultant shall promote affirmative action in its hiring practices and employee policies for minorities and other designated classes in accordance with federal, state and local laws. Such action shall include, but not be limited to,the following: recruitment and recruitment advertising, employment, upgrading and promotion. In addition, the Consultant shall not exclude from participation under this Agreement any employee or applicant for employment on the basis of age,handicap or religion in compliance with state and federal laws. 14. Consultant and each Subcontractor are Independent Contractors. The Consultant shall at all times during the performance of any work described in the Scope of Services be deemed to be an independent contractor. Neither the Consultant nor any of its subcontractors shall at any time or in any manner represent that it or any of its employees are employees of AHS or any department, commission or subsidiary entity of AHS. AHS shall not be requested or ordered to assume any liability or expense for the direct payment of any salary, wage or benefit to any person employed by the Consultant or its subcontractors and vendors to perform any item of work described in the Scope of Services. The Consultant is entirely responsible for the immediate payment of all subcontractor liens. 15. Severability. Each and every section of this Agreement shall be construed as a separate and independent covenant and agreement. If any term or provision of this Agreement or the application thereof to certain circumstances shall be declared invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to circumstances other than those to which it is declared invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. -6- PUgeMasUSedaAunhmntstWndaAtta cM1mm[aNgmta-Mead 303PA3-15-10@CAACD tlb ent AWx M-Fire dm 16. Entire Agreement. This Agreement constitutes the entire agreement between the parties. This Agreement supersedes all prior negotiation, discussions and agreements between the parties concerning the subject matters covered herein. The parties intend this Agreement to be the final expression of their agreement with respect to the subjects covered herein and a complete and exclusive statement of such terms. 17. Amendment or Modification. This Agreement may only be modified or amended by written instrument duly approved and executed by each of the parties hereto. Any such modification or amendment shall be valid, binding and legally enforceable only if in written form and executed by each of the parties hereto, following all necessary approvals and authorizations for such execution. Any such amendment or modification to be effective as to AHS must be approved by its officers or designated representatives. 18. Governine Law. This Agreement shall be governed by the laws of the State of California. Any legal action arising from or related to this Agreement shall be brought in the Superior Court of the State of California in and for the County of San Bernardino. 19. Non-Waiver. Failure of either party to enforce any provision of this Agreement shall not constitute a waiver of the right to compel enforcement of the same provision or any remaining provisions of this Agreement. 20. Assignment. This Agreement shall be assignable by the Consultant only if the Consultant obtains the prior express written consent of AHS, which consent may be withheld by AHS in its sole discretion. Notwithstanding anything to the contrary in this Agreement, no purported assignment of this Agreement shall be effective if such assignment would violate the terms, conditions and restrictions of any applicable governmental restrictions. AHS' consent to such assignment shall he expressly conditioned upon (i) the assignee's execution of such documents as required by AHS in its sole discretion, including, without limitation, any and all documents deemed necessary by AHS to provide for said assignee's assumption of all of the obligations of the Consultant hereunder and under any documents executed by the Consultant in connection herewith, and (ii) AHS' approval of the financial and credit-worthiness of such proposed assignee and the assignee's ability to perform all of the Consultant's obligations under this Agreement and all documents executed in connection herewith, as may be determined by AHS at its sole discretion. 21. Representations of Persons Executing the Agreement. The persons executing this Agreement warrant that they are duly authorized to execute this Agreement on behalf of and bind the parties each purports to represent. 22. Execution in Counterparts. This Agreement may be executed in one (1) or more counterparts, each of which will constitute an original. 23. Effectiveness of the Aereement as to AHS. This Agreement shall not be binding on AHS until signed by an authorized representative of the Consultant, and approved and executed by the Chief Executive Officer of AHS or his designee. The Agency.shall provide 7 P.Uge as a Att hmeMMl nde ktne enu\A�3010b1-15-10 MCMCDevelopmen t ASrtemCM-Finl dac the Consultant with written notice of the approval of this Agreement upon Community Development Commission of the City of San Bernardino ("Commission') action. 24. Conflicts of Interest. The Consultant hereby represents that it has no interests adverse to AHS or the Agency, at the time of execution of this Agreement. The Consultant hereby agrees that, during the term of this Agreement, the Consultant shall not enter into any agreement or acquire any interests detrimental or adverse to AHS or the Agency. Additionally, the Consultant hereby represents and warrants to AHS and the Agency that the Consultant and any partnerships, individual persons or any other party or parties comprising the Consultant, together with each subcontractor who may hereafter be designated to perform services pursuant to this Agreement, do not have and, during the term of this Agreement, shall not acquire any property ownership interest, business interests, professional employment relationships, contractual relationships of any nature or any other financial arrangements relating to AHS or the Agency, property over which AHS or the Agency have jurisdiction or any members or staff of AHS or the Agency that have not been previously disclosed in writing to AHS, and that any such property ownership interests, business interests, professional employment relationships, contractual relationships of any nature or any other financial arrangements will not adversely affect the ability of the Consultant to perform the services to AHS as set forth in this Agreement. AHS acknowledges and agrees that the foregoing shall not prohibit the Consultant or any affiliates thereof from managing or applying for funds granted by HUD pursuant to the NSP and allocated or awarded to jurisdictions outside of the City of San Bernardino, California, or from receiving a direct grant of funds from HUD pursuant to the NSP. 25. Non-Exclusivity. This Agreement shall not create an exclusive relationship between AHS and the Consultant for the services set forth in Exhibit "E" or any similar or related services. AHS may, during the term of this Agreement, contract with other consultants for the performance of the same, similar or related services as those that may be performed by the Consultant under this Agreement. AHS reserves the discretion and the right to determine the amount of services to be performed by the Consultant for AHS under this Agreement, including, not requesting any services at all. This Agreement sets forth the terms upon which any such services will be provided to AHS by the Consultant, if such services are requested by AHS, as set forth in this Agreement. 26. Consequential Damages and Limitation of Liability. AHS and the Consultant agree that except as otherwise provided in this Section 26, in no event will either be liable to the other under this Agreement for any damages including, but not limited to, special damages, loss of revenue, loss of profit, operating costs or business interruption losses, regardless of cause, including, breach of contract, negligence, strict liability or otherwise. The limitations and exclusions of liability set forth in this Section 26 shall apply regardless of fault, breach of contract, tort, strict liability or otherwise of the Consultant and AHS, their employees or subconsultants. 27. Business Registration Certificate. The Consultant warrants that it possesses, or shall obtain immediately after the execution and delivery of this Agreement, and maintain during the period of time that this Agreement is in effect, a business registration certificate pursuant to -8- P4gm as\Agende Ana memMgenda AOachm ems\Agmn-Arad 20IM-1540 WMC Uwelop Ag mM-Final dm Title 5 of the City of San Bernardino Municipal Code, together with any and all other licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to be maintained by the Consultant to conduct its business activities within the City. [SIGNATURES ON FOLLOWING PAGE] -9- PUSe asUpnde Amc cm s4gende AMdmenlsWgnmo-Amend WIM-ISId@ C�IoVmem Ag mem-FiW doc IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date indicated next to the authorized signatures of the officers of each of them as appear below. AHS Affordable Housing Solutions of San Bernardino, Inc. a California 501(c)(3)public benefit corporation Dated: By: Emil A. Marzullo, Chief Executive Officer Approved as to Form: By: Timothy J. Sab6j Agency Counsel CONSULTANT Inland Empire Concerned African American Churches a California 501(c)(3)public benefit corporation Dated: By: Name: Title: . 10- P:Ugen sU$eM Alluh=aMg"a Atlaeh lstA®n Am 301M3-15-10IECAACD cw p cm AG—m-F mLdO Exhibit"A" Legal Description -11- PS4eMaeS Vg aAuuc ewlpnda AtucM1mmuUgmne-Anwnd 2010503-15-10� Developvrm Alm.-Fir A. order Nuer. mb RRI-3420334 Page Number: 6 i LEGAL DESCRIPTION Real property In the City of San Bernardino, County of San Bernardino,State of California, described as follows: LOT 42,TRACT NO. 3538, IN THE CITY OF SAN BERNARDINO,COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,AS PER PLAT RECORDED IN BOOK 46 OF MAPS PAGE 56,RECORDS OF SAID COUNTY. APN: 0143-133-42 RrstAmerican Title Exhibit"B" Total Development Cost Pro Forma -12- P4pg s4pnda AnechmmteUgenda Attnhmmle Vns-A 201MI-15-10 MCAACD WWment Agreement-Fiml do EXHIBIT B TO DEVELOPMENT AGREEMENT TOTAL DEVELOPMENT COST PRO FORMA Acguisiton Costs List Price 44,500 Appraisal value before rehab Discount 445 Amount of discount allowed by the seller Purchase Price 44,055 Difference between List Price and Discount Closing Costs 531 Escrow and Title Fees, etc. Subtotal Acquisition Costs 44,586 Rehabilitation Costs Direct Rehabilitation 54,460 Cost estimated to complete scope of work Contingency 5,446 Property Management Fee 1. 13,592 Intermediary fixed fee for managing property Subtotal Rehabilitation Costs 2. 73,498 Indirect Costs Property Taxes 175 Property taxes incurred during holding period Homebuyer Qualifying Fee 3. 800 Intermediary fixed fee per homebuyer General Contractor Fee/Olacy Co. 4. 8,568 Intermediary Fee: fixed % of Dir. Rehab.+ Contingency Sales Commission 5. 4,500 Intermediary Fee: % of EDA Final Price Sales Closing Costs 2,500 Escrow, title fees,taxes etc. at sale closing. Insurance Subtotal Indirect Costs 6. 16,543 Financing Costs Construction Loan Interest 7. I. 0 Interest paid on construction/rehab loan Loan Origination Fee 8. 0 Fee for construction/rehab loan Subtotal Financing Costs 9. - TOTAL DEVELOPMENT COST 10 134,627 Sales Price Estimatd Rehabilitated Market Sales Price 75,000 Estimated value of home after rehabilitation Total Development Cost 11. 134,627 Total cost calculated above (No. 10) EDA FINAL SALES PRICE 12 75,000 The lower of market sales price or tot. dev. cost Intermediary Proceeds Property Management Fee 13. 13,592 From No. 1 above General Contractor Fee/O.H. 14. 8,568 Frum No. 3 above Homebuyer Qualifying Fee 15. 800 From No. 4 above Sales Commission Fee 16. 4,500 From No 5 above Reimbursement Const Loan Int. 17. - From No above Reimbursement Loan Orign. Fee 18. - From No c above TOTAL INTERMEDIARY PROCEEDS 19 27,460 Total of vough 18 above Exhibit "C1e Rehabilitation Scope of Work - 13- PUgendas\Agenda AtmamevtMwnda At=hmmts\Agents-AmeM 301Ub3-15-10 IECAAC Development Age mem-fire)dw EXHIBIT "C" TO DEVELOPMENT AGREEMENT REHABILITATION SCOPE OF WORK CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY HOUSING AND COMMUNITY DEVELOPMENT DEPARTMENT COST ESTIMATE WORKSHEET Date: January 27, 2010 Time: Location: 1519 W. Virginia Street, San Bernardino, CA 92411 Job Duration: Estimator: 1 TEMPORARY FACILTIES 2 Remove Chain Line Fence 1 EA 180.00 3 EA 4 Other 5 SITE WORK 6 Final Cleaning 150.00 7 Exterior Demolition 8 Grading SF 9 Excavation SF 10 Remove damaged flat concrete in rear yard 1 EA 1,500.00 11 Approach: Remove and Install New SF 12 Sidewalk: Remove and Install New SF 13 Hazardous Waste Remidiation 14 15 New Wrought Iron Fence LF 16 New Chain Link Fence LF 17 New Wood Fence 210 EA 3,150.00 18 Remove/Install Block Wall LF 19 LANDSCAPING 20 Remove and/or Trim Trees 1 EA 700.00 21 Install Sprinkler System 1EA 1,500.00 22 Hydro Seed Yard } SF 23 Level Front Yard 1 EA 100.00 24 INTERIOR DEMOLITION 25 Repair all damaged and removed Interior 1 EA 1,200.00 Plaster and Drywall 26 Removal of other items 27 HAZARDOUS COMPONENTS ABATEMENT 28 Lead 29 Asbestos 30 Mold 31 Other 32 33 FOUNDATIONS 34 35 Replace soffit, gable and crawlspace screens 1 ALL All line items will be performed according to City of San Bernardino Economic Development Stabilization Program Building Standards 36 Replace and Install New Access Door EA 100.00 37 Construct New Access Well with Door EA 100.00 38 Footings SF 39 Concrete SF 40 FRAMINGIWOOD 41 Studs LF 42 Other LF 43 EXTERIOR 44 Sandblast 1 SY 3,600.00 45 Colorcoat, repair all cracks, holes and } 1 46 damage areas SY 47 Wrap and Stucco SY 48 Insulation SF 49 EXTERIOR WINDOWS 50 Replace all windows with low-e 6 EA 2,040.00 51 Missing Putty EA 52 Install new screens EA 53 Replace broken glass panes EA 54 Remove and Install new aluminum EA 55 Block frame single hung or sliders 56 Replace front security door 1 EA 150.00 57 window EA 58 Aluminum -slider 4'x3' standard frame EA 59 Aluminum -slider 4'x3' block frame EA 60 Aluminum-slider hung 3'x4' standard EA 61 Aluminum-slider hung 3'x4' block EA 62 Aluminum-slider 5'x4' standard frame EA 63 Aluminum-slider 5'x4' block frame EA 64 Aluminum-single hung 3'x5' standard frame EA 65 Aluminum-single hung 3'x5' block EA 66 Aluminum-slider 3'x2'standard EA 67 Aluminum -slider 3'x2' block EA 68 Install vertical blinds on dining, LR & bedrooms 4 EA 300.00 69 EXTERIOR DOORS 70 Garage: Remove and Install ALL 650.00 71 Garage side door,jamg, casing & lockset 1 EA 325.00 72 Entry Door EA 325.00 Replace front door casing 1 EA 73 Replace mail boxt door 1 EA 74 ROOFING 75 Si. Complete tear off roof and sheathing 1 76 Installation of aluminized sheathe 1 77 Install compostion roof to code-30 Yr. 1 5,150.00 78 Replace all facia with new six inch fascia 1 450.00 79 Remove all Install gutter and 80 downspouts LF 180.00 81 INTERIOR CONSTRUCTION All line i!ams will be performed according to City of San Bernardino Economic Development Stabilization Program Building Standards 82 Install R-30 Insulation in attic 1 EA 1,500.00 83 Drywall SF 84 Hollow-core interior door withhinges and 3 EA 465.00 Installation in an existing jamb. Hardboard wood-textured and embossed 85 Repair bedroom closet doors 1 EA 150.00 86 Shower doors EA 87 Tub Enclosure EA 88 Laundry door EA 89 Other EA 90 FLOORING 91 Carpet Allowance 1 BY 1,200.00 92 Ceramic Tile SF 93 Linoleum 1 SY 600.00 94 Hardwood SF 95 Other 96 PAINTING 97 Prep and paint interior complete two coats 1 EA 1,250.00 98 Stains(kitchen, bath and other cabinets) SF 99 Repair all damaged SF 100 Paint exterior wood 1 EA 850.00 101 CARPENTRY, CABINETS AND MILLWORK 102 Remove and Install new cabinets 1 2,850.00 103 Install and Replace Formica Counter tops 1 EA 650.00 104 Repair framing and plaster as necessary 1 EA 150.00 Repair hall closet doors&cabinets 1 EA 200.00 105 PLUMBING 106 Bathtub&Shower surround 1 EA 480.00 107 Lavatory 1 EA 250.00 108 Kitchen Sink 1 Fes. 160.00 109 Garbage Disposal 1 EA 80.00 110 Laundry Sink EA 50.00 111 Faucets kitchen, bath&shower 3 EA 350.00 112 Bathtubs EA 113 Tub Wall Kits EA 114 Shower EA 115 Water Heater 1 EA 400.00 116 Roto Root(clean) all drain lines to street ALL 150.00 117 Remove and Install new EA 150.00 118 Anti-syphon hose bibbs Replace cleanout cover at kitchen exterior 1 EA 50.00 Repair water leak at rear hose bib 1 EA 100.00 119 Interior water supply ball valve with 1 EA 150.00 pressure valve 120 HVAC 121 Install new system lincluding ducts& 1 EA 5,900.00 thermostat 122 Repair duct work LF All line items will be performed according to City of San Bernardino Economic Development Stabilization Program Building Standards 123 Repair HVAC Unit EA 124 Replace HVAC Unit EA I'I 125 Remove wall heater 1 50.00 j 126 Other j 127 ELECTRICAL 128 Remove and Install new light fixture 7 EA 3,700.00 129 Remove and Install new GFCI outlets EA 130 Remove and Install circuit/outlet EA 131 Install new GFCI outlet 3 EA 132 Remove and Install new circuit breaker EA 133 Remove and Install new wiring LF (included with Item#45) 134 Cover Plates EA 50.00 135 Smoke detectors EA 375.00 136 Other 137 138 MISCELLANEOUS 139 Install new medicine cabinet, mirror, towel 1 EA 100.00 140 & paper holders 141 Hood vent&fan, stove, dish washer, garbage 1,500.00 142 disposal and (ironing board cabinet- included in Item#49) 143 (allowance) 1 EA 162 Supervision 3,200.00 163 164 165 166 SUBTOTAL $48,960.00 Insurance Burden (General Liability&Workers Compenssation 2.5%) OVERHEAD& PROFIT (15%) $8,568.50 GRAND TOTAL GENERAL CONTRACTOR'S BASE BID $57,528.50 APPROVED OPTIONS 1 Remove Existing tile and Install Slate at Front Porch 650.00 2 Install Rear Yard Sprinklers 1,000.00 3 Repipe with Copper Plumbing 3,600.00 4 Replace Interior Base Moulding 250.00 OPTIONS TOTAL $5,500.00 All line items will be performed according to City of San Bernardino Economic Development Stabilization Program Building Standards Exhibit"D" Project Timeline -14- PUSMesUgeMeA Chment44em aAtucnmwts gWmisAmmtl 2010\03-I5-10 MCMCO Oe mem Agmemem-Piml.Emc 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 C_ 9 C W O O O O O O O O O O O O O O O O O y O O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N N N C C d O] F z M M O of M O M O O O yJ v M M M m W C W Q' m a o I.- w z z ML W IL U 0 F �_ W F- L x W W n m W O Q' c o ° F— d Q L o 111 o 3 r w E v w 0 d Z m r Q ac E ° W .> m m Q m a o 4 0 ° m w 'o c .� m d U ry O U U C d UC N @ W Q E U v cl E co Q °v c p °— `° o ° E E o ° o m ° c E v °� d m' = x° m m w U m E m 3 a co a c v ' 2 `o ° � _ v •• w w w r a m d c c 0 0 0 0 0 Of m m m' a' U U o U a` m O a` U N M V N t0 1� of m O N M V N O r O Z Y N A f Exhibit"E" Scope of Services 1. Secure Property-Ensure that adequate locked fencing is installed on the perimeter of the site when necessary. Board up windows and outer doorways when necessary in order to prevent looting and vandalism of the Rehabilitated Home. 2. Property Management-Maintain utilities service, pay for monthly utilities bill(s) during the holding period (the Consultant will be reimbursed for this cost), interior and exterior appearance and marketability of the Rehabilitated Home as needed. 3. Approved Budget - The approved budget includes the estimate of the costs the Consultant expects to incur in order to complete the Scope of Work defined herein, provided in Exhibit "B" (the "Total Development Cost Pro Forma"). This budget estimate includes all costs associated with the rehabilitation of the Rehabilitated Home, including labor and materials for rehabilitation work, contingency, the Project Management Fee, the General Contractor Fee/Overhead, the Sales Commission Fee and the Homebuyer Qualifying Fee, includes the cost of enrolling the prospective buyer of the Rehabilitated Home deemed qualified by the Consultant under the conditions in this Agreement (the "Qualified Homebuyer") in a homebuyer education course administered by an AHS approved third party vendor or organization. 4. Project Timeline - The approved estimated timeline provided in Exhibit "D" sets forth the completion of the various steps involved in the acquisition, rehabilitation and resale of the Rehabilitated Home (the "Project Timeline"). The timeline starts from the point that the selected Consultant enters into the contract for the Rehabilitated Home with AHS through the close of sale to the Qualified Homebuyer. Major steps included in the timeline are construction period, completion of construction, issuance of the Certificate of Completion, start of marketing period for the home, projected number of weeks needed to identify a Qualified Homebuyer,escrow period and close of escrow. 5. Rehabilitation Scope of Work-The approved detailed, line item budget of the costs required to complete the rehabilitation scope of work agreed upon by AHS and the Consultant, provided in Exhibit "C" (the "Rehabilitation Scope of Work") serves as the Consultant's price bid for the Rehabilitation Scope of Work. 6. Manage Rehabilitation Work - Manage the rehabilitation of the Rehabilitated Home to include, but not be limited to: (i) ensuring that all tasks identified in the Rehabilitation Scope -15- PUgendasNgendaAnachments\Agenda AttuhmemMN u-Amend]01NU1-15-10 MCAAC OwaloFmem Agrzemem.Fi.14. of Work are completed on a timely basis and all work performed satisfies AHS' standards; (ii) conducting weekly on-site project inspections; (iii) managing relationships with all subcontractors and vendors; (iv) obtaining all necessary permits required to complete the Rehabilitation Scope of Work; (v) ensuring that all rehabilitation work complies with all applicable municipal codes; (vi) submitting funds draw requests to AHS in a timely and accurate manner; (vii) paying all sub-contractors hired by the Consultant and all vendors providing materials used in the performance of the Rehabilitation Scope of Work on a timely and accurate basis; and(viii) administering both conditional and unconditional lien releases. 7. Marketing— Market the Rehabilitated Home through advertising and published promotional materials. Adhere to AHS' Affirmative Marketing Guidelines (Please see Exhibit"K"). 8. Identify Qualified Homebuyer- Identify and present prospective homebuyers to be approved by AHS in writing, facilitate adequate homebuyer training and facilitate financing of property which may include Down Payment Assistance from the Agency, pre-qualify the homebuyer for eligibility to purchase the Rehabilitated Home and collect those application documents from the Qualified Homebuyer identified in Exhibit"I", Section"A". In addition, the Consultant is required to make best efforts to ensure that a fixed rate permanent loan secured by a first trust deed ("First Mortgage Loan") is made available to the Qualified Homebuyer at the lowest commercially available rate and most favorable terms. 9. Escrow—Work with the AHS selected title company and manage the escrow process through closing on behalf of the Qualified Homebuycr, ensure that all AHS sale documents are executed,notarized and recorded as needed. 10. Files — Maintain adequate files for the Rehabilitated Home, ensuring compliance with all Neighborhood Stabilization Program requirements, files shall include, but not be limited to, all documents listed in Exhibit "I", and all documents required to verify compliance with the Affirmative Marketing Guidelines stated in Exhibit "K", such as homebuyer waiting lists, copies of advertisements published in local and community newspapers,etc. 11. Appraisal — Work with the AHS designated Appraiser to determine the sales price for the Rehabilitated Home. 12. Environmental - Ensure that all environmental mitigation measures recommended by AHS' Environmental Consultant are carried out as part of the Rehabilitation Scope of Work. Provide proof of completion of these mitigation measures. - 16- PVpMlsVpg AffcM1 effls grnda AttuhmenuWgnMSAmcM 201M-1510 MCMCD Iopmcnt Ag c=nt-Fimldoc 13. Closing Requirements: A. The Consultant shall cause the closing of the sale of the Rehabilitated Home by following the procedures and complying with the requirements set forth in Exhibit "P", Section A. B. The Consultant shall cause the closing of any Agency Down Payment Assistance Loans, if applicable, in accordance with the procedures and requirements established in Exhibit"I", Section B. 14. Building Standards: The Consultant shall adhere to the building standards stipulated in Exhibit "L" when performing any rehabilitation work on the Rehabilitated Home. -17- PMgt .assApe AUwhmeMsUV aAMcAmnts\AA to Am 2DIM3-15-101 MCD lopmal A�m-Fiml.dm Exhibit"F" AHS Representatives AHS Officers: Emil A. Maraullo, Chief Executive Officer Carey K. Jenkins, Chief Operating Officer Authorized AHS Re resentatives: Samuel Hughes, Consultant Fernando S. Portillo, Consultant -18- P4lgerdes\Agenda M.hmema\Agmda AnachmmuUgsmtsAmeM"1=3-15-10 NL CDwel1p A®eemed-Ftv d. EXHIBIT "G" Insurance Requirements The Consultant and its General Contractor shall maintain insurance policies issued by an insurance company or companies authorized to do business in the State of California and that maintain during the term of the policy a "General Policyholders Rating" of at least A(v), as set forth in the then most current edition of"Bests Insurance Guide," as follows: (1) Automobile Insurance. Comprehensive automobile liability insurance of not less than One Million Dollars ($1,000,000) combined single limit per occurrence for each vehicle leased or owned by the Consultant or its subcontractors and used in performing work under this Agreement. (2) Worker's Compensation Insurance. Worker's compensation coverage in accordance with California workers' compensation laws for all workers under the Consultant's and/or subcontractor's employment performing work under this Agreement. (3) Liability Insurance. AHS requires comprehensive liability insurance, including coverage for personal injury, death, property damage and contractual liability, with a limit of at least One Million Dollars ($1,000,000), including products and completed operations coverage. Said insurance shall be primary insurance with respect to AHS and the Agency. The Consultant shall require and ensure that the Consultant's contractors include AHS and the Agency, as additional insureds on all general liability insurance covering work at the Rehabilitated Home. All insurance policies required of the Consultant or its contractors as provided herein, shall extend the subject insurance coverage to: "The City of San Bernardino, the Redevelopment Agency of the City of San Bernardino and Affordable Housing Solutions of San Bernardino, Inc., their officers officials, attorneys, agents,employees and volunteers" In lieu of directly obtaining the insurance coverage mentioned in this Exhibit"G", the Consultant can require its General Contractor to name the Consultant as an additional insured on the insurance policies obtained by the General Contractor for the purposes of satisfying the insurance requirements herein. Concurrent with the execution of this Agreement and prior to the commencement of any work by the Consultant, the Consultant shall deliver to AHS, copies of policies or certificates evidencing the existence of the insurance coverage required herein, which coverage shall remain in full force and effect continuously throughout the term of this Agreement. Each policy of insurance that the Consultant purchases in satisfaction of the insurance requirements of this Agreement shall name AHS, the Agency and if applicable, the Consultant as an additional insured and shall provide that the policy may not be .19- P: geneaswgenaa anarnmemsugema Atm mm,Ugim.� zoim 15.10 MCn CD doVmem Agreement-rinei.aoe cancelled, terminated or modified, except upon thirty (30) days prior written notice to AHS. Failure on the part of the Consultant to procure or maintain the insurance coverage required in this Exhibit "G" for fifteen (15) days or longer shall constitute a material breach of this Agreement pursuant to which AHS may exercise all rights and remedies set forth herein and, at its sole discretion, and without waiving such default or limiting the rights or remedies of AHS, procure or renew such insurance and pay any and all premiums in connection therewith and all monies so paid by AHS shall be reimbursed by the Consultant to AHS upon demand including interest thereon at the rate of ten percent (10%) per annum interest compounded annually from the date paid by AHS to the date reimbursed by the Consultant. The Agency shall have the right, at its election,to participate in and control any insurance claim adjustment or dispute with the insurance carrier. The Consultant's failure to assert or delay in asserting any claim shall not diminish or impair the rights of AHS against the Consultant or the insurance carrier. -20- P.N asWgendaA a6men,M nda M.hmemaU®mtsA 20IM3-15-10@C CD elop=M A�mem-Fi U,dm Exhibit°H" Consultant Payment and Reimbursement The Consultant shall be paid four (4) different fees by AHS. The four (4) fees that the Consultant is eligible to receive are: 1. Project Management Fee; 2. General Contractor Fee/Overhead; 3. Homebuyer Qualifying Fee; and 4. Sales Commission Fee. The amount of the fees to be paid to the Consultant by AHS for completing the Scope of Services detailed in Exhibit `E" is recorded in the Development Pro Forma attached as Exhibit eB"to this Agreement. The costs contained in the Development Pro Forma serve as the budget for the project, and the Consultant will be required to complete the work in accordance with that budget. This budget must be approved by AHS Representative(s) prior to the start of any rehabilitation work by the Consultant. Project Management Fee—The Project Management Fee is the compensation received by the Consultant for securing, maintaining and marketing the property. Some of the tasks that might be included under this function are such things as, fencing the property, mowing the lawn, clearing debris from the lawn, removal of graffiti, etc. The Project Management Fee may also include any marketing costs incurred by the Consultant, such as online or print advertising and website design, as approved by AHS. The Consultant is eligible to receive fifty percent (50%) of this fee upon commencement of the Rehabilitation Scope of Work, to be invoiced by the Consultant in the first funds draw request submitted by the Consultant to AHS. The remaining portion of this fee shall be payable to the Consultant after the rehabilitation work is completed, as evidenced by an AHS issued Certificate of Completion or a City issued Certificate of Occupancy, as applicable. The remaining portion of this fee shall be paid to the Consultant upon the close of the Rehabilitation Home Sales Escrow. General Contractor Fee/Overhead — The General Contractor Fee/Overhead is the total amount paid by AHS for management of the rehabilitation work as defined in Exhibit "eE", Section 6. If the Consultant hires a General Contractor, then the Consultant is responsible for negotiating a fee structure with its hired General Contractor, but in no event, will AHS pay an amount above the General Contractor Fee/Overhead stated in this Agreement, nor will AHS pay a separate General Contractor Fee/Overhead to the General Contractor. The amount of this fee is a fixed fee for the rehabilitation work. The costs of the rehabilitation work shall include direct labor and materials involved in the performance of the Rehabilitation Scope of Work plus the budgeted contingency for this work. A portion of this fee commensurate with the percentage of completion of the Rehabilitation Scope of Work shall be paid with each funds draw request submitted by -21- P\ pndesVgeM Anxhmems\Apnda Anachments\Ag trA eM 201=3-15-10 MCMC Me pment Agreemem-Fin dm the Consultant. Any additional costs arising from unexpected conditions on the site or other unexpected difficulties must be written up as a change order and AHS Representative(s) must sign and approve the change order at the discretion of the AHS Representative(s) in order for these costs to be included as part of the overall rehabilitation costs, which would then increase the absolute amount of the General Contractor Fee/Overhead. Homebuyer Qualifying Fee — This fee is paid to the Consultant for identifying and assisting AHS in qualifying the prospective homebuyer for the sale of the Rehabilitated Home. This is a one-time fixed fee. This fee will include the Consultant's reimbursement for any costs associated with the prospective homebuyer's "Homebuyer Education Training" and payments to third party service providers, such as Neighborhood Housing Services of the Inland Empire ("NHSIE"), or another such service provider. The Homebuyer Qualifying Fee shall be paid upon the close of the Rehabilitated Home Sales Escrow. Sales Commission Fee — The sales Commission Fee represents the payment received by the Consultant for managing the Rehabilitated Home Sale Escrow process on behalf of AHS to assist the Qualified Homebuyer through the Rehabilitated Home Sales Escrow process. The amount of this fee is calculated as a fixed percentage of the final sales price to the Qualified Homebuyer. The Sales Commission Fee shall be paid upon the close of the Rehabilitated Home Sales Escrow. -ZZ_ PUge as\Agenda Aaec em:\Agma AnuhmmtiUV�M 20IM-I5-10 MCMCD 4fflem Ageemam-Fiml.a Exhibit"I" Closing Requirements A. Sale of Rehabilitated Properties The Consultant shall initiate the sale of a Rehabilitated Property to a Qualified Homebuyer by submitting to the Agency a purchase/sale agreement executed by the prospective homebuyer, verifying documentation from the prospective buyer with respect to residency, income and the property condition as the Agency, or its designee, may reasonably request (collectively, "Homebuyer Application"). [NOTE: NSP regulations limit the income on NSP funded properties. The Agency should be involved in the negotiation of sales documents of the properties] The Homebuyer Application shall consist of the following information in the form provided or approved by the Agency: i. Last Three (3) Years Tax Returns (State and Federal) (1040's) signed with W2's attached. Two (2) Current Pay Stubs for all household members who will reside in the home. ii. A California Association of Realtors California Residential Purchase Agreement fully executed by the prospective homebuyer (With Agency Addendum(s) attached). iii. Neighborhood Stabilization Program Homebuyer Application. iv. Income Certification. V. Application Affidavit—Completely filled out and signed by the prospective homebuyer. vi. Signed Lead-Base Paint Disclosure Form (for homes built prior to 1978). The Agency does not supply this form. vii. Copy of Employment Verification for each Homebuyer. viii. 2 Months of Current Bank Statements. ix. 3-Year Rental History. X. Homebuyer Education Certificate from NHSIE or another like service provider. Within seven (7) calendar days after the receipt of the Homebuyer Application by the Agency, Agency Staff will notify the Consultant of approval or denial of the prospective homebuyer's eligibility and confirmation of such eligibility by means of a Reservation -23- eUWndss Vndn AneAunems4lgeMa Aftwmcros\AFms-Amrnd 20IM3-15-10 MCMC Dm pmem Ag em-Fin do Letter (all reservations will be automatically valid for sixty (60) calendar days from the date of confirmation) [NOTE: The Agency should execute the sales agreement]. Upon notification by Agency Staff of the prospective homebuyer's eligibility, the Consultant shall open an Escrow account with an Agency approved escrow company (the "Escrow Holder"). The Agency shall furnish the Escrow Holder with executed escrow instructions. The Consultant shall not permit any Escrow to close for the sale of a Rehabilitated Property until and unless the escrows instructions executed by the Agency (and countersigned, if requested by Agency Staff, by the First Trust Deed Lender) have been submitted to the Escrow Holder. As provided in the Agency escrow instructions, Escrow shall also not close unless and until: 1. The Escrow Holder holds the following documents : (1)Agency Notice of Affordability Restrictions executed by the Qualified Homebuyer and notarized; and (2) a grant deed with respect to the Rehabilitated Property purchased by the Qualified Homebuyer, executed and acknowledged by the selling entity; and 2. Proof of hazardous insurance for the full replacement cost of the Rehabilitated Property is provided to the Agency naming the Agency as additionally insured; and i 3. Rehabilitation of the Rehabilitated Property shall have been completed in accordance with this Agreement and with all applicable City permits and ordinances, and the City shall have issued a final certificate of occupancy for the Rehabilitated Property; and 4. The Consultant's execution and delivery to the Agency of the Sub- agreement. No Event of Default shall exist under this Agreement or under any agreement or instrument relating to any financing for the Project or the Rehabilitated Property. Within seven (7) calendar days after the receipt of the Homebuyer Application by AHS, the AHS Representative(s) will notify the Consultant of approval or denial of the prospective homebuyer's eligibility and confirmation of such eligibility by means of a Reservation Letter (all reservations will be automatically valid for sixty (60) calendar days from the date of confirmation) [NOTE: AHS should execute the sales agreement]. Upon notification by the AHS Representative(s) of the prospective homebuyer's eligibility, the Consultant shall open the Rehabilitation Home Sales Escrow account with an AHS approved escrow company (the "Escrow Holder"). AHS shall famish the Escrow Holder with executed escrow instructions. The Consultant shall not permit the Rehabilitation Home Sales Escrow to close until and unless the escrow instructions executed by AHS (and countersigned, if requested by AHS Representative(s), by the First Trust Deed Lender) have been submitted to the gcrow Holder. As provided in the AHS escrow instructions,Escrow shall also not close :a less and until: -24- P Ugcd sU4e a Anud muUgenda Mt mlaUgmu-Amend 301=3-15-10�( vdo mem Agmmem-RMI dM 1. The Escrow Holder holds the following documents : (1) Agency Notice of Affordability executed by the Qualified Homebuyer; and (2) a grant deed with respect to the Rehabilitated Home, executed and acknowledged by the selling entity(the"AHS Grant Deed"); and 2. Proof of hazardous insurance for the full replacement cost of the Rehabilitated Home is provided to AHS naming AHS and the Agency as additionally insured; and 3. The Rehabilitation Scope of Work shall have been completed in accordance with this Agreement and with all applicable City permits and ordinances, and AHS shall have issued a Certificate of Completion or the City shall have issued a Certificate of Occupancy for the Rehabilitated Home, as applicable; and No Event of Default shall exist under this Agreement or under any agreement or instrument relating to any financing for the Rehabilitated Home. B. Down Payment Assistance In the case where the Qualified Homebuyer needs down payment assistance to facilitate the purchase of the Rehabilitated Home, the Consultant shall assist the Qualified Homebuyer in applying for such assistance from the Redevelopment Agency of the City of San Bernardino's ("Agency") Homebuyer Assistance Program ("HAP"), at the Qualified Homebuyer's election. The requirements and the application process for obtaining such assistance are described fully in the Agency's HAP Program Manual, which can be obtained at the Agency's offices. The process for applying for such assistance is summarized below, but in the event that a conflict exists between the description of the HAP Program contained herein and the HAP Program Manual, the requirements and procedures described in the HAP Program Manual shall prevail. In order to reserve Agency Down Payment Assistance Loan assistance to facilitate the purchase of the Rehabilitated Home, the Consultant must include in the Homebuyer Application described in Section A, herein, the following information in the form provided or approved by AHS and the Agency: i. Verification for Applicant Eligibility, completely filled out and signed by the prospective homebuyer and the First Trust Deed Lender; ii. Copy of Credit Report. If the prospective homebuyer lacks credit history or scores are lower than 640, please provide secondary credit such as a landlord letter or utility statements; and iii. Agency Down Payment Assistance Loan Worksheet. -25- P.WgcMMgeMaAI=h=WMVMaA[Iec=Ms gmaeAm 30IM3-15.10IE CD bpm Agrtemem-Fml.O The obligation of the Agency to fund each Agency Down Payment Assistance Loan shall be subject to satisfaction of all of the conditions stated in Section A, herein, together with the following conditions (collectively,the"Closing Conditions"): (a) The Escrow Holder holds the following documents: 1) the Qualified Homebuyer Agency Down Payment Assistance Loan Agreement executed by the Qualified Homebuyer and the Agency; (2) the Agency Promissory Note executed by the Qualified Homebuyer in favor of the Agency in the same amount as the Agency Down Payment Assistance Loan; and (3) the Agency Subordinate Deed of Trust and Assignment of Rents acknowledged and j executed by the Qualified Homebuyer in favor of the Agency; and I (b) Any one of the following title companies whether(i) First American Title, (ii) North American Title, (iii) Chicago Title, (iv) Stewart Title or(v) another title insurer approved by the Agency ("Title Company") shall have assured the Agency in writing that with respect to each Agency Down Payment Assistance Loan, the Agency shall receive upon recordation of the Agency Subordinate Deed of Trust and Assignment of Rents a CLTA lenders policy of title insurance in the amount of the Agency Down Payment Assistance Loan Note (the "Agency Title Policy") insuring the priority of the Agency Subordinate Deed of Trust and Assignment of Rents, subject only to the First Mortgage Loan and other exceptions approved by the Agency following the Agency's prior review of a preliminary title report for the Rehabilitated Home, which preliminary title report must be received by the Agency no later than seven (7) calendar days after the approval by the Agency of the Homebuyer Application; and (d) The Agency shall have reviewed and approved the Qualified Homebuyer for the Agency Down Payment Assistance Loan in the Agency's sole discretion, and the eligibility conditions in the applicable sections of the HAP Manual shall have been satisfied. In accordance with the Neighborhood Stabilization Program, the Rehabilitated Home is not restricted for sale to first-time homebuyers; therefore, these properties are exempt from the requirements in Section II. B. 1. of the HAP Manual; and (e) No stop notice or mechanics' lien shall have been filed against the Rehabilitated Home unless discharged as provided by law. -26- F:Ifte &\Ayp AtirMSnlMguds AUechmMelApoYe-AmeM 10IM3-15-10IE CRv pm Ag =M-F� EXHIBIT "J" Events of Default and Remedies A. Events of Default The occurrence of any of the following shall, after the giving of any notice described therein, constitute a default by the Consultant hereunder("Event of Default'): (1) The failure of the Consultant to pay or perform any monetary covenant or obligation under the Agreement or any of the documents executed in connection herewith, without curing such failure within ten (10) calendar days after receipt of written notice of such default from AHS (or from any party authorized by AHS to deliver such notice as identified by AHS in writing to the Consultant); (2) The failure of the Consultant to perform any non-monetary covenant or obligation hereunder or any of the documents executed in connection herewith that results in a material adverse effect to AHS, without curing such failure within thirty (30) calendar days after receipt of written notice of such default from AHS (or from any party authorized by AHS to deliver such notice as identified by AHS in writing to the Consultant) specifying the nature of the event or deficiency giving rise to the default and the action required to cure such deficiency; provided, however,that if any default with respect to a non-monetary obligation is such that it cannot be cured within a thirty-day period, it shall be deemed cured if the Consultant commences the cure within said thirty-day period and diligently prosecutes such cure to completion thereafter. Notwithstanding anything herein to the contrary,the herein described notice requirements and cure periods shall not apply to any Event of Default described in Sections (3)through (6)below; (3) The falsity of any representation or breach of any warranty or covenant made by the Consultant under the terms of this Agreement or any documents executed in connection herewith; (4) The Consultant or any constituent member or partner, or majority shareholder, of the Consultant shall (a) apply for or consent to the appointment of a receiver, trustee, liquidator or custodian or the like of its property, (b) fail to pay or admit in writing its inability to pay its debts generally as they become due, (c) make a general assignment for the benefit of creditors, (d) be adjudicated a bankrupt or insolvent or (e) commence a voluntary case under the Federal bankruptcy laws of the United States of America or file a voluntary petition that is not withdrawn within ten (10) calendar days after the filing thereof or an answer seeking an arrangement with creditors or an order for relief or seeking to take advantage of any insolvency law or file an answer admitting the material allegations of a petition filed against it in any bankruptcy or insolvency proceeding; -27 P4 pg s\Ag Ann ewMpnde AnaehmemsV�nd W103-15-10 MCMCOevelopm<m Ag mmt-FiW.dm (5) If without the application, approval or consent of the Consultant, a proceeding shall be instituted in any court of competent jurisdiction, under any law relating to bankruptcy, in respect of the Consultant or any constituent member or partner, or majority shareholder, of the Consultant, for an order for relief or an adjudication in bankruptcy, a composition or arrangement with creditors, a readjustment of debts, the appointment of a trustee, receiver, liquidator or custodian or the like of the Consultant or of all or any substantial part of the Consultant's assets, or other like relief in respect thereof under any bankruptcy or insolvency law, and, if such proceeding is being contested by the Consultant, in good faith, the same shall (a) result in the entry of an order for relief or any such adjudication or appointment, or (b) continue undismissed, or pending and unstayed, for any period of ninety(90) consecutive calendar days; (6) Voluntary cessation of the construction activities, active property management, or marketing activities related to the Rehabilitated Home for a continuous period of more than ten (10) calendar days or the involuntary cessation of the above named activities in accordance with this Agreement for a continuous period of more than thirty (30)calendar days; (7) A mechanic's lien or any other type of encumbrance on AHS' property resulting from the Consultant's failure to fulfill its financial or other contractual obligations with respect to any of its vendors or subcontractors is not removed within ten (10) calendar days after receipt of written notice of such default from AHS (or from any parry authorized by AHS to deliver such notice as identified by AHS in writing to the Consultant). B. AHS Remedies: Upon the occurrence of an Event of Default hereunder, AHS may, in its sole discretion,take any one or more of the following actions: (1) Withhold any payment of fees or reimbursement of eligible expenses to the Consultant unless and until the Event of Default (if curable) is cured or this Agreement is terminated in accordance with Section 9 of this Agreement; (2) Demand reimbursement from the Consultant for any payments made to it by AHS for which the contracted work product was not satisfactorily delivered by the Consultant; (3) Confiscate any material or other work product purchased or produced by the Consultant during the course of completing the Scope of Work indicated in this Agreement; (4) Take any and all actions and do any and all things which are allowed, permitted or provided by law, in equity or by statute, in the sole discretion of AHS, to enforce performance and observance of any obligation, agreement or covenant of the Consultant under this Agreement or under any other document executed in •28- PUgeMesUgeMeAnxM1memnUgendeAttuM1mmtaU®mts-Amend 201MD3-15-10 D: CDwel =a ApeenpM-Fi dw connection herewith; (5) Upon the occurrence of an Event of Default which is occasioned by the Consultant's failure under this Agreement to pay money, AHS may, but shall not be obligated to, make such payment. If such payment is made by AHS, the Consultant shall deposit with AHS, upon written demand therefore, such sum plus interest at the rate of ten percent (10 1/o) per annum with interest to be compounded annually. In either case, the Event of Default with respect to which any such payment has been made by AHS shall not be deemed cured until such repayment (as the case may be) has been made by the Consultant; (6) Upon the occurrence of an Event of Default described in Section A.(4) or A.(5) hereof, AHS shall be entitled and empowered by intervention in such proceedings or otherwise to file and prove a claim for any amount owing to AHS under this Agreement and unpaid and, in the case of commencement of any judicial proceedings, to file such proof of claim and other papers or documents as may be necessary or advisable in the judgment of AHS and its counsel to protect the interests of AHS and to collect and receive any monies or other property in satisfaction of its claim. C. AHS Default and Consultant Remedies: Upon fault or failure of AHS to meet any of its obligations under this Agreement without curing such failure within thirty (30) calendar days after receipt of written notice of such failure from the Consultant specifying the nature of the event or deficiency giving rise to the default and the action required to cure such deficiency, the Consultant may, as its sole and exclusive remedies: (1) Bring an action in equitable relief seeking the specific performance by AHS of the terms and conditions of this Agreement or seeking to enjoin any act by AHS which is prohibited hereunder; and/or (2) Bring an action for declaratory relief seeking judicial determination of the meaning of any provision of this Agreement. Without limiting the generality of the foregoing, the Consultant shall in no event be entitled to, and hereby waives, any right to seek indirect or consequential damages of any kind or nature from the Consultant arising out of or in connection with this Agreement, and in connection with such waiver the Consultant is familiar with and hereby waives the provisions of Section 1542 of the California Civil Code which provides as follows: "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR." -29- P:\ApM US RtucM1mentsUgeMa Attschm=tsUgmcrA 20IM3-15-10� MC M )Wmem Agn m-FinO dM EXHIBIT "K" Affirmative Marketing Requirements In accordance with the California Fair Employment and Housing Act,the Consultant acting as agent for AHS, the owner and seller of the Rehabilitated Home, in marketing the sale of the Rehabilitated Home, must adhere to the following affirmative marketing guidelines in order to create awareness for the general public and certain community groups as to the availability of residential properties designated for lower- and/or moderate-income households. 1. Provide an affirmative marketing plan and procedures for the sale of the Rehabilitated Home. Procedures to be used must identify how persons in the housing market area who are not likely to apply for the housing without special outreach shall be informed and made aware of available affordable housing opportunities. 2. The Consultant's Affirmative Marketing Plan shall consist of a written marketing strategy designed to provide information and to attract eligible persons in the housing market area to the Rehabilitated Home without regard to race, color, national origin, sex, religion, marital and familial status, disability, medical condition, sexual orientation, or ancestry. It shall describe initial advertising, outreach (community contacts) and other marketing activities, which will inform potential buyers of the availability of the Rehabilitated Home. It shall also outline an outreach program which includes special measures designed to attract those groups identified as least likely to apply without special outreach efforts (because of existing neighborhood racial or ethnic patterns, location of housing or other factors) and other efforts designed to attract persons from the total eligible population. 3. Insert Equal Housing Opportunity logotype, statement or slogan on all written outreach tools (i.e., signs, advertisements, brochures, direct mail solicitations, press releases, etc.) 4. In addition to the above, the Affirmative Fair Housing Marketing Plan shall outline: a. Commercial Media to be used (i.e., community newspapers and non-English language newspapers, radio, television, billboards, religious or local real estate publications,etc.). b. Marketing efforts to be used (i.e., brochures, letters, handouts, direct mail, signs, etc.) c. Community contacts to supplement formal communications media for the purpose of soliciting those groups least likely to purchase the available housing without special outreach efforts. They should be individuals or organizations (i.e., service agencies, community organizations, places of worship, etc.) that -30- P.�gcWasUgcr AIIwh=wMgco AnwM1m Mg= Am 2010`03-15.101EC CDerabpmcm Ap m-FigWd have direct and frequent contact with those identified as least likely to apply. The contacts should also be chosen on the basis of their positions of influence within the general community and the particular target group. AHS and its designees must agree to establish and maintain contact with the identified contacts. 5. The Consultant shall maintain records of all prospective homebuyer applicants, including their race, ethnicity and gender, reasons for denial of application, placement on a waiting list,etc. 6. The Consultant shall also provide for the selection of applicants from a written waiting list in the chronological order of their application, insofar as is practicable, and provide prompt written notification to any rejected applicants of the grounds for any rejection. 7. The Consultant shall apply for first trust deed financing to be applied towards the purchase of the Rehabilitated Home from a lender listed on the Agency's or AHS' Approved Lender List. -31- P WgeodesU,.e AII.,h e.IM,p nde Ai�M1memsU® A.nd NIU3-15-10 MH CD bp.Agrt -FinL EXHIBIT "L" Building Requirements 1 1 -32- P:Wgeode�Ugeod�AvechmeaMgeod�Mech %Ag�A 3IM-15-10 WCA O CWP ft Agree -Finaldx MR D uril a ti1111U, ECONOMIC DEVELOPMENT AGENCY Neighborhood Stabilization Program "Minimum Building Standards" June 2009 Table of Contents 1000-General Requirements...................................................................................................................... 1 1010-General............................................................................................................................................1 1020-Terminology....................................................................................................................................1 1030-General Quality Requirements..................................................................................................... 1 1040-Substitutions/Aitematives............................................................................................................2 1050-Optional Green Building Practices..............................................................................................3 1100-Temporary Facilities and Temporary Controls..............................................................................3 1110-Site Usage......................................................................................................................................3 i., 1200-Project Closeout.................................................................................................................................4 1210-Final Cleaning................................................................................................................................4 1220-Operations Manuals and Warranties..........................................................................................5 1230-Systems Startup............................................................................................................................5 2000-Building Sitswork/Site Preparation................................................................................................5 2010-Site Clearing and Demolition........................................................................................................5 2020-Site Earthwork................................................................................................................................5 2040-Site Hazardous Waste Remediatlon...........................................................................................6 2100-Site Improvements.............................................................................................................................6 2110-Roadways.Driveways,and Walkways.......................................................................................6 2150-Fencing...........................................................................................................................................7 2150-Landscaping...................................................................................................................................8 2200 Site Civil/Site Utilities.........................................................................................................................8 2210-Utilities.............................................................................................................................................a 3100-Selective Demolition..........................................................................................................................8 3110-Building Elements Demolition......................................................................................................a 3120-Hazardous Components Abatement..........................................................................................10 4000-Foundations.......................................................................................................................................10 4010-Standard Foundations..................................................................................................................to 4030-Slabs on Grade..............................................................................................................................11 6000-Superstructure...................................................................................................................................11 5010-Framing/Wood............................................................................................................................11 6100-Exterior Enclosure............................................................................................................................12 5110-Exterior Walls.................................................................................................................................22 5111 —Stucco/Plaster.........................................................................................................................12 5112—Exterior Insulation....................................................................................................................12 5113—Caulking and Joint Sealants...................................................................................................13 5120-Exterior Windows..........................................................................................................................13 5130-Exterior Doors/Garage Doors....................................................................................................14 5140-Flashing...........................................................................................................................................16 5200—Roofing ..............................................................................................................................................16 5210-Roof Coverings..............................................................................................................................16 5220—Gutters and Downspouts............................................................................................................16 6000-Interior Construction ........................................................................................................................17 6010—Partitions/Ceilings......................................................................................................................17 6011 —Interior Insulation.....................................................................................................................17 6012-Drywall........................................................................................................................................17 6020-Interior Doors.................................................................................................................................18 7000-Finishes..............................................................................................................................................18 7010—Ceramic Tile..................................................................................................................................18 7020-Floor Finishes................................................................................................................................19 7030-Ceiling Finishes.............................................................................................................................20 7040-Painting...........................................................................................................................................20 8100—Furnishings.......................................................................................................................................24 8110—Carpentry,Cabinets,and Millwork.............................................................................................24 9000—Plumbing, Mechanical,Electrical...................................................................................................25 9010-Plumbing Fixtures.........................................................................................................................25 9020-Domestic Water Distribution.......................................................................................................26 9030-Sanitary Waste...............................................................................................................................26 9100-Heating,Ventilating,and Air Conditioning(HVAC)......................................................................27 9110—Heating and Ventilating...............................................................................................................27 9200—Fire Protection Systems..................................................................................................................28 9210—Fire Protection Specialties..........................................................................................................28 9300-Electrical Systems.............................................................................................................................28 9310-Electrical Service and Distribution.............................................................................................28 City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 1 of 28 1000—General Requirements 1010 —General .1. These Minimum Building Standards (Standards) have been developed by the City of San Bernardino Economic Development Agency (EDA) for use on the Neighborhood Stabilization Program (NSP). .2. These Standards shall apply to all properties covered by the NSP. .3. All materials, supplies, costs of permits, and labor to complete the specified rehabilitation or repairs, shall be the responsibility of the Builder/Developer unless specified otherwise by the EDA. .4. Any drawings or sketches which may be furnished by the EDA or required by the Builder/Developer are intended to clarify or further describe the propert. Should the Builder/Developer find discrepancies in, or omissions from, these drawings or sketches or should he/she be in doubt as to their meaning, they should contact the EDA for clarification. Because of the nature of work being done, some details of sketches or drawings may be"typical'and grades, dimensions and exact existing conditions must be verified at the property before commencing work. .5. Any additional work that EDA want the Builder/Developer to do should be done after completion of the Rehabilitation work, if at all possible. A separate contract will be signed between the EDA and Builder/Developer before the work is to start. 1020 -Terminology .1. When used in these Standards, the following definitions shall apply: A. Install -The item referred to shall be installed with all necessary hardware, trim, fittings, and material necessary to make ready for use. All material shall be new. B. Replace -The existing item referred to shall be removed prior to installation of the new item. C. Trim -When used in conjunction with painting, includes roof vents and pipes, eaves, molding, casing, underside of all doors, and any items other than walls and ceilings. D. Rehabilitation -All repairs to or replacement of present elements of an existing building, such as windows, stairs, flooring, or wiring; rearrangement of rooms by the relocation of partitions or by the installation of new bathrooms and kitchens; or the general replacement of the interior of a building. This may or may not include changes to structural elements such as floor systems, columns or load bearing interior or exterior walls. 1030 -General Quality Requirements .1. In order to establish standards of quality, the Standards may refer to certain products by name and/or catalog number. This procedure is not to be construed as eliminating from competition other products of equal or better quality by other manufacturers, at approximately the same cost. City of San Bernardino Economic Development Agency - Neighborhood Stabilization Program Minimum Building Standards Page 2 of 28 .2. All material and each part or detail of the work shall be subject at all times to inspection by the EDA, and the Builder/Developer will hold to the true intent of the Standards in regard to-quality of material, workmanship, and the diligent execution of the contract. .3. Materials installed shall be of such kind and quality to ensure that the dwelling will provide acceptable durability, economy of maintenance and adequate resistance to weather, moisture, corrosion and fire. The EDA may request evidence of a material's compliance with the requirements of the structure's plans and specifications and these Standards. Product labels are considered acceptable evidence. A. The EDA may require that the BuilderlDeveloper carry out a durability evaluation or conduct a building assessment to determine it the materials to be used comply with any green strategies .4. All work shall be executed by skilled craftsman, experienced in their trade, and in accordance with accepted practices of their trade. All work shall be of the highest standards and methods. .5. Unless specifically noted otherwise, all construction methods and materials used shall conform to the California Building Code as adopted by the City of San Bernardino and shall be done in accordance with any other ordinances passed and adopted by the City of San Bernardino (i.e., zoning codes, fire codes, etc.). This includes all repairs, finishes, fixtures, and new work. .6. All plumbing and gas work shall be done in accordance with the Uniform Plumbing Code as adopted by the City of San Bernardino. .7. All heating and cooling work shall be done in accordance with the Uniform Mechanical Code as adopted by the City of San Bernardino. .8. All electrical work shall be done in accordance with the national Electric Code as adopted by the City of San Bernardino. .9. Where work involves colors, the Builder/Developer will provide the EDA with samples of all colors for the particular item (roofing, stucco, paint, stain, flooring, etc.), and the EDA will select the color and finish by initialing the color sample and state for whattwhere it will be used (exterior, interior, fascia, soffit, trim, doors, ceiling, walls, etc.). A maximum of three colors each may be selected for exterior and interior. .10. If the EDA has agreed to correct certain specified existing code violations,which are to be excluded from the work done by the Builder/Developer, the work on such violations, if done at the same time the Builder/Developer is on the job, shall be coordinated by the EDA and Builder/Developer so as to provide for a smooth flow of the work. 1040 -Substitutions/Alternatives .1. The Builder/Developer shall furnish a list of any proposed desired substitutions prior to the signing of the contract. .2. These standards are intended to encourage the use of new or innovative technologies, methods and materials. Alternatives and non-conventional or innovative methods and materials shall be equivalent to these standards in the areas of quality, durability, economy of maintenance, operation and usability. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 3 of 28 .3. Certain conditions in the geographic area or on the site may justify modification of specific standards, or make compliance with the standards impracticable or impossible. In these cases, approval by the EDA is required. 1050- Optional Green Building Practices 1. Builder/Developers are encouraged to incorporate any green building practice that offers an opportunity to create environmentally sound and resource-efficient buildings. .2. In an effort to encourage modern, green building, and energy-efficiency improvements, Builder/Developers are encouraged to incorporate HUD's healthy homes interventions including these seven steps ensuring housing is made and kept: A. Dry. Ensure proper drainage away from housing; clean repair gutters and downspouts, repair leaks seal roofs and windows. B. Safe: Install safety devices on doors, cabinets, window blinds and outlets; provide adequate storage for all poisonous items out of reach of children and labeled in the proper containers;install smoke detectors and carbon monoxide detectors, have appropriate fire extinguishers available. C Well-ventilated Service and maintain heating and cooling systems;provide exhaust fans for kitchens, bathroom and dryers to the outside to reduce mold; change furnace filters. D. Pest-free: Provide proper storage and disposal for food products, caulk and seal holes; use least toxic pest management methods. E Contaminant-free: Remove lead based paint hazards property;provide test kits for radon; reduce volatile organic compounds in paint, carpet, etc F. Clean: Install dust walk-off systems in entry ways,provide smooth, cleanable surfaces;provide effective storage space and containers;choose flooring that is easy to clean. G. Well-maintained Important maintenance calendar for inspecting, cleaning, repairing, replacing housing componentsrsystems. 3 Throughout these Standards, the EDA has inserted opportunities in which green building practices can be achieved 1100 -Temporary Facilities and Temporary Controls 1110—Site Usage .1. All temporary facilities and controls required for the project shall be provided by the Builder/Developer. .2. The Builder/Developer will provide daily clean-up of all debris related to the work of the project as required. Provide a dumpster on site for the duration of construction for disposal of construction debris. All work area(s) shall be left broom clean at the end of each work day. .3. Immediately, at the end of the work, the Builder/Developer shall remove all of their debris, rubbish, refuse, and unused material from the property and street. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 4 of 28 .4. The Builder/Developer will provide all temporary 6-foot high chain link safety and security fencing for construction operations required for the work of this project. Fencing shall conform to the following specifications: A. 6-foot high chain link fence with 80% or greater green or black wind screen/mesh. B. Mesh shall be attached with hog rings. C. Includes man and vehicle gates where required. D. Gateposts shall be of size to accommodate the size of opening and its intended purpose. E. All gateposts shall be cored or driven into the ground. F. Core holes shall be filled with concrete once temporary fence is removed. Slurry seal all in A/C areas. G. Fencing shall be set back beyond site work improvements. .5. On-site materials pertaining to the project and partially completed roofs shall be temporarily protected during inclement weather. It is the responsibility of the Builder/Developer to maintain a watertight condition to prevent any water damage to the building once the roof has been removed until it has been completely patched. .6. The Builder/Developer shall provide temporary power as needed for the project. .7. Provide and maintain dust and erosion control throughout the duration of the work and as required for the work of the project. .8. The Builder/Developer shall provide protection, acceptable to the EDA, for any existing surfaces or equipment that have been selected to remain. .9. GREEN OPPORTUNITY. Minimize the site disturbance during construction. A. Control the impact area by designating vehicle parking farther from the site B. Store building materials inside a garage or protected area. C Protect all existing frees with fencing to include the drip line in an effort to avoid over compaction of the soil around the trees. 1200 - Project Closeout 1210— Final Cleaning .1. Prior to the final inspection, the Builder/Developer will provide final clean-up of the building and property. .2. Remove all plaster and paint smears and drops; clean all windows, screens, doors, finished hardware and plumbing fixtures; polish all chrome, clean and polish all countertops and Floor covering; throughout entire house - new and/or old. Provide cleaning of all exterior surfaces including walls,windows, landscape areas, driveways, and walkways. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 5 of 28 1220 — Operations Manuals and Warranties .1. The Builder/Developer will obtain and fill in all necessary information on all warranties where applicable, for manufactured products, materials and/or labor used in connection with the project. He/she shall deliver the original warranties to the EDA where appropriate copies will be made and the original will be delivered to the EDA upon completion of the work. Any sections that need to be sent to the manufacturer to validate the warranty, will be mailed as soon as possible. .2 GREEN OPPORTUNITY, operation and maintenance manuals, and perform training of users to properly instruct them on the green features of the property and how to maintain them. 1230—Systems Startup .1. Prior to turnover of building, Builder/Developer will conduct testing and startup of all equipment new and/or old for verification of functionality. .2. Builder/Developer will ensure that all equipment components (such as filters, bulbs, batteries) are replaced prior to turn over. 2000 - Building Sitework/ Site Preparation 2010 - Site Clearing and Demolition .1. This work shall be executed in a safe, orderly manner, and in accordance with all applicable codes. .2. The Builder/Developer shall protect all existing materials and apparatus from damage, and shall repair damage caused by workers at no cost to the EDA. .3. Remove trees and plant materials, with EDA's approval, from areas to be cleared. .4. Maintain protection of trees and plant materials which are to remain until completion of work. .5. Debris shall not be allowed to accumulate. .6. Remove all unsightly trash and dangerous material (wood, metal, etc.). 2020 - Site Earthwork .1. Placing of footings and foundations on earth fill will not be permitted. Fill excess cuts under footings and foundations with concrete, and under slabs with tamped gravel. .2. Excavations for footings shall be neat and accurately cut trenches to depths and grades shown on drawings/plans. In the absence of drawings/plans, code requirements shall govern. .3. All grading around any structures shall have high spots lowered and low spots raised to a minimum of 6" below top of floor slab; a minimum of 2' out with a slight slope from structure. .4. Site grading shall accomplish the following: A. Allow drainage of surface water away from buildings and off-site. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 6 of 28 B. Minimize earth settlement problems. C. Avoid concentrating runoff onto neighboring properties where erosion or other damage would be caused. D. Minimize erosion. E. Minimize potential earth movement problems which might adversely affect completed construction. .5. GREEN OPPORTUNITY. Grades around structures shall maintain at least a 5% slope away from the foundation. 2040—Site Hazardous Waste Remediation .1. The property shall be free of hazards which may adversely affect the health and safety of the occupants or the structural soundness of the improvements or which may impair the customary use and enjoyment of the property. These hazards include toxic chemicals, radioactive materials, other pollution, hazardous activities, subsidence, flood, erosion, expansive or compressible soils, inadequate drainage outfall, landslides or mudflows, and deposition of suspended solids or others located on or off site. Projects with potentially significant hazards may be acceptable if any such hazards are effectively mitigated. 2100 - Site Improvements 2110— Roadways, Driveways, and Walkways .1. Surfaces and base courses for roads, streets, parking areas and walks shall be durable materials. Their construction shall be in conformance with generally accepted local design practices. .2. Slabs for roadways, driveways, and walkways shall be designed and constructed in accordance with standards set forth by the American Concrete Institute, and as may be necessary to prevent slab damage due to potential soil movements. .3. Provide for repairs and/or repairs of existing surfaces to match existing. .4. These surfaces shall be installed with provisions for drainage. Adequate surface and underground drainage systems shall serve all paving and improvements so as to ensure continuing stable soil support for these improvements. .5. Minimum width for driveways shall be 10', and sidewalks 3', if installed new; or if replaced, to match existing if wider than 10'. .6. All exterior concrete surfaces shall be a light broom finish with expansion joints approximately every 12' (fiber material), with slope for drainage away from structure and property. .7. All flatwork expansion joints shall be filled with clear silicone sealant. .8. Where soil and/or concrete for porches, steps and other work is in contact with members, galvanized metal flashing, or solid sheathing and 15 lb. felt shall be installed, or wrap and scratch coat applied. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 7 of 28 9. GREEN OPPORTUNITY Limit water runoff and maximize infiltration by avoiding impervious surfaces and installing permeable drainage areas between sidewalks, driveways, walkways, patios, and pathways. A. Open matrix concrete grid pavers. B. Specialized honeycomb substrates for gravel or turf. C Pervious mixes of concrete or asphalt. 2150— Fencing .1. Check all boundaries to ensure property lines are observed, and City Ordinances are not violated (front yard, side yard, and back yard maximum heights). .2. All post setting holes shall not be less than 24" deep and 6"diameter, at a maximum of 10' intervals. When adjacent to a foundation (walls), offset hole to obtain 24" depth, and fill in any space larger than 2" between wall and post. .3. Entrance walk gate shall be a minimum of 3'wide, and driveway gates a minimum of 12'wide; including all gate hinges and. padlock latch attachments. .4. Wrought Iron A. Posts to be 2"x 2"x .090 (16 gauge). B. Top and bottom rails to be 1 '/"x 1 ''/2" (16 gauge). C. Pickets to be %"x%"(16 gauge), 4"on center. .5. Chain Link A. All galvanized material. B. 2-3/8" O.D. end, corner, and gate posts. C. 1-5/8" O.D. line and corner diagonal posts. D. 1-3/8"O.D. top rail, with bottom tension wire. E. 11 gauge -2" mesh;to include all bands and wire ties. .6. Wood Fence A. All posts will be of galvanized material (unless otherwise specified). B. 2-3/8"O.D. end, corner, and gate posts. C. 1-5/8"O.D. line and corner diagonal posts. D. Two 2 x 4 horizontal support rails. E. Fencing as specified (redwood or cedar- minimum#2, two nails per rail). .7. Block Wall A. Shall be in accordance with the City of San Bernardino drawing on Garden & Retaining Wall Standards available from the Building & Safety Department. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 8 of 28 2150 - Landscaping .1. All trees and shrubbery identified to remain shall be trimmed. Trim to property line and a minimum of 4' above roofing or structure; removing all debris. .2. All trees and shrubs identified to be removed shall be cut to surface. Remove stump and roots a minimum of 8" below surface; removing all debris, and fill in hole with soil. .3. Natural site assets such as existing trees, shrubs, ground cover, must be preserved, maintained, and protected whenever possible. .4. Any existing assets lost due to the construction efforts and/or lack of protection will be replaced with like kind and size at the Builder/Developer's expense. 5 GREEN OPPORTUNITY Create environmentally friendly lawns and landscaping by A. Cover play areas with wood shavings. B. Limit the amount of lawn space by installing naturalized plantings. C. Provide alternative water sources. D. Plant drought-tolerant landscapes E. Plant shade trees in an effort to reduce the cooling loads required in the house. * Consider planting edible plants. G. Use water-conserving irrigation equipment where landscape irrigation is required. i. Drip Irrigation. ii Advanced irrigation controls like rain sensors 2200 Site Civil /Site Utilities 2210 - Utilities .1. Underground piping and related items shall be protected from corrosion. Underground mechanical and electrical systems shall be protectively coated to minimize corrosion where soil conditions warrant. Where applicable, sacrificial anodes may be used. .2. Sacrificial anodes may be used where soil resistivity does not exceed 15,000 ohm - centimeters. Otherwise, an impressed current system of corrosion prevention shall be used. .3. Utilities and other facilities shall be independent for the property, without dependence upon other properties. 3100 -Selective Demolition 3110 - Building Elements Demolition .1. This work shall be executed in a safe, orderly manner, and in accordance with all applicable codes. .2. The Builder/Developer shall protect existing materials and apparatus from damage, and shall repair damage caused by workers at no cost to the EDA. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 9 of 28 .3. Debris shall not be allowed to accumulate. .4. The Builder/Developer shall remove all flooring finishes identified to be removed or replaced. Including abatement of any materials designated as containing asbestos. .5. Provide all roofing membrane removal as required for the removal of existing and installation of new roof, equipment, and connections. .6. The Builder/Developer shall provide shoring of all existing beams/structures being modified prior to removing existing bearing walls. .7. Remove all interior and exterior doors and/or frames that are identified for removal. This activity shall be coordinated with the EDA in an effort to not leave any openings un-lockable. .8. Remove all window stops/putty, glass, glazing, and frames as required. Provide demolition of existing sliding glass doors scheduled to be replaced. .9. The Builder/Developer shall remove all structural and non-structural wood stud /gypsum sheathing or wood stud / plaster partition walls, wing walls or portion of walls determined to be removed. A. All appurtenances identified to be removed / demolished on walls scheduled to be removed/demolished shall be removed and disposed of by the Builder/Developer. B. Appurtenances identified to remain, shall be removed and re-installed by the Builder/Developer. .10. Any specific cutting and patching of drywall needed to install conduit or piping shall be done by the Builder/Developer. .11. The Builder/Developer shall remove all wall surface material or portions thereof from interior and exterior walls for new framed openings such as but not limited to doors, windows, recessed electrical panels, louvers, HVAC grills and ducts, backing, etc. .12. The Builder/Developer shall provide removal of all existing spayed on acoustical (popcorn) ceiling texture. Provide for asbestos abatement as necessary. .13. The Builder/Developer shall remove existing casework and countertops, backing, anchors, bases, shims, backsplash, etc. identified to be demolished and disposed of. .14. Doors and windows must be able to be locked at the end of each day, or provide a temporary secure panel (approved by the EDA) closing the opening at no additional cost to the EDA. This also includes providing a temporary secure panel at all wall, door or window openings scheduled to be removed. .15. Removal of Ceramic tile shall include removal and replacement of wall substrate and any existing mortar bed. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 10 of 28 3120 - Hazardous Components Abatement .1. The property shall be free of those hazards which may adversely affect the health and safety of the occupants or the structural soundness of the improvements or which may impair the customary use and enjoyment of the property. These hazards include toxic chemicals, radioactive materials, other pollution, hazardous activities, subsidence, flood, erosion, expansive or compressible soils, inadequate drainage outfall, landslides or mudflows, and deposition of suspended solids or others located on or off site. Projects with potentially significant hazards may be acceptable if any such hazards are effectively mitigated. .2. The Builder/Developer shall provide all labor, material and equipment required to complete the work related to the Hazardous Materials Abatement as required. A. Provide all labor, material and equipment required to abate and legally dispose of off-site all Asbestos Containing Materials (ACM) and Lead Containing Materials including but not limited to pipe fitting insulation (elbows/ends), roof mastic, flooring, flexible joints, doors, door frames, plaster walls, sinks, ceramic tile, etc. B. Provide for the proper removal and disposal of PCB Ballasts and Fluorescent Light Tubes: I. It is assumed that all ballasts not labeled "No PCBs" are considered to contain PCBs and therefore must be treated as hazardous waste. The Builder/Developer shall disconnect the ballasts (those not labeled "No PCB's")from the fixtures and is responsible for proper disposal/recycling. ii. Mercury is present in fluorescent light tubes, which may be present throughout the project areas. Mercury is considered a hazardous waste and will be disposed of properly by the Builder/Developer. 4000 - Foundations 4010 -Standard Foundations .1. Includes excavation, backfill, compaction, and installation of all foundations. .2. Concrete materials for foundations shall be in accordance with City of San Bernardino standards and shall be approved by the EDA prior to placement. .3. Includes all formwork and accessories for all cast-in place concrete and cement concrete pavement with shoring, bracing and anchorage, form accessories, form stripping, and proper layout, location. Provide proper temporary support/shoring (as required and/or needed). .4. Furnish and install all reinforcing steel bars, welded steel wire fabric, fabricated steel bar, slip dowels, or rod mats for all on-site cast-in-place concrete and cement concrete pavement. Provide and install all necessary accessories as indicated. .5. All vertical reinforcing steel protection shall be installed in accordance with CAL OSHA codes and regulations. Maintain said protection throughout the duration of reinforcement installation and until enclosed by finish material. .6. When replacing existing concrete with new, the new concrete shall have at least the same reinforcement as the existing. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 11 of 28 7 GREEN OPPORTUNITY: Provide foundation water management system. 8. GREEN OPPORTUNITY. Use concrete that contains a percentage of fly ash in place of portland cement. 4030 -Slabs on Grade .1. Concrete mixture shall be made of a 1-2-3 mix with plastic cement, sand, and 3/4" rock. Ready mix will be a 5 sack. Minimum 2500 psi. .2. Slabs shall be constructed in accordance with ACI 302.1 R-60, Guide for Concrete Floor and Slab Construction, and as may be necessary to prevent slab damage due to potential soil movements. .3. Vapor retarders and base course shall be provided for all interior concrete slabs to which a finish flooring is applied. A. Acceptable base course materials are gravel, slag, crushed rock, sand, cinders and certain types of earth when approved by the local EDA. See ASTM C-33-90, Table 2. B. Base course material shall be clean, washed and free from deleterious substances, consistent with ASTM C-33, with 100% of the material passing a 1" sieve and less than 2% passing a#4 sieve. .1. All concrete slabs shall be a minimum of 3 '/d'thick(additions, garages, driveways, sidewalks). .2. All interior surfaces shall be troweled smooth. .3. Includes excavation, backfill, compaction, and installation of all slabs. Completely furnish and install all concrete accessories, colors, finishes, forming, admixtures, reinforcement joint sealers, and curing compounds in accordance with the Specifications. 5000 -Superstructure 5010 - Framing /Wood .1. Framing and wood construction shall be in accordance with the latest edition of the National Design Specification for Wood Construction. .2. A chemical barrier must be provided for structures built in those areas where termites are determined by the EDA to be a hazard. A physical barrier will also satisfy this requirement where the hazard is presented by subterranean termites only. .3. Where required by the EDA Field Office, protection against damage by decay shall be provided. 4 GREEN OPPORTUNITY. Keep all untreated wood at least 12 inches above soil in lieu of the code required 8 inches. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 12 of 28 5100 - Exterior Enclosure 5110 - Exterior Walls 5111 —Stucco/ Plaster .1. The Builder/Developer shall investigate the condition of studs and ceiling joist to be sure framing members comply with appropriate code. .2. Install or reset all electrical boxes to new surface level. .3. Exterior angles shall be protected with woven or welded wire fabric of equivalent strength, or corner bead. .4. A surface inspection is required after sandblasting and before re-stuccoing by the EDA. .5. Application: A. Portland Cement plastering work shall be three-coat work when applied over metal and wire lath/wrap. B. Scratch (first) coat: Apply with sufficient material and pressure to fill solidly all openings in the lath/wrap, and to cover wall, and then scratch to rough surface. Allow to dry a minimum of two days. (Example: complete scratch coat Tuesday, start brown coat Friday). C. Brown (second) coat: Apply after scratch coat has set firm and hard, bring out to grounds, and straighten to a true surface with rod and derby; leave rough, ready to receive finish coat. Surface shall not have variation greater than W in any direction under a five-foot straight edge. Allow to dry a minimum of seven full days before applying color coat. (Example: complete brown coat on Tues., color coat not to start until following Wed.). D. Finish (color) coats: Portland Cement and Lime Finish Coats-Apply over base coats which have set and surface-dry; lay on well, double back and fill out to a true, even surface. Thickness shall be 1/16"to 1/8", then texture as specified. E. When structure is to have lath/wrap and stucco over existing siding,the Builder/Developer is to remove door and window casing; trim out with metal edging or stucco molding, and seal. F. Exterior lath/wrap to be applied as per California Building Code. G. Stucco Color Coat: La Habra, Bauer, or equal. 5112 — Exterior Insulation .1. Materials used for insulation shall be of proven effectiveness and adequate durability so as to ensure that required ratings concerning heat transmission, sound control and fire rating are attained. A. Manville, Owens/Corning, USG; or equal. ! B. Proper sound insulation shall be used at all walls. C. GREEN OPPORTUNITY. Use cellulose insulation. i City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 13 of 28 .2. Insulation in contact with the ground shall be installed so as not to be adversely affected by soil, vermin and water. .3. Shall be installed in accordance with Energy Conservation Standards administered by the Building & Safety Division of the City of San Bernardino. .4. Attics: A. If all exterior walls of house are not insulated, bring to R-38 rating (12"). B. If all exterior walls are insulated and/or new addition, insulate to R-30 rating (9"). C. GREEN OPPORTUNITY. All attic spaces are to receive insulation. .5. Walls: A. All exposed exterior walls and new addition, insulated to R-11 rating (3 '/2"). .6. Water Heater: A. If it has access from outside or in garage, install R-6 rating insulation blanket and wrap all exposed water lines with pipe insulation. B. GREEN OPPORTUNITY: Provide insulation at all water heaters. 5113—Caulking and Joint Sealants .1. Materials used for caulking and sealants shall be suitable for the use intended, and shall be compatible with the materials to which they are applied and with any finish that may be applied over them. 5120 - Exterior Windows .1. When required shall be made easily openable, replace sash cords and weights or install spring loaded sash balances, as necessary. .2. Windows and operating hardware shall be installed in accordance with the recommendations of the manufacturer. .3. When aluminum single hung or slider window(s) is required and the frames are not to be taken out, use International Window Corporation, Keller, or equal (block frame), to fit existing opening. Caulk window frame before installing, including necessary trim. .4. When new aluminum slider or single hung window(s) installation is required, provide header(s),trimmers, flashing, International Window Corporation, Keller, or equal (standard frame). .5. Operating windows shall be manufactured units consisting of the frame, sill, sash, weather-stripping, and operating hardware. Job site assembled windows composed of frames and sashes made by different manufacturers are not acceptable. .6. Glazing: A. When replacing glass, thickness shall be as recommended by the manufacturer for the specific use. B. All bathroom windows shall be glazed with obscure glass. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 14 of 28 C. Glass set in wood shall be secured in place with springs or glazing points and face puttied, wood and putty to be primed and painted. D. Glass set in metal shall be secured in place with glazing clips, back and face puttied with appropriate material, metal and putty to be primed and painted. E. All glass shall be cleaned, with no cracks or rattles (new installation only). F. Re-putty shall mean to replace all damage, loose, and missing putty. 7. Weather-stripping shall be properly fitted to eliminate excessive infiltration of dust, snow, or rain. .8. Screens: A. Screens shall be installed on all openable windows. B. When re-screening or new screens are required, they shall be aluminum frames, aluminum screening; tight fitting and easily removed. C. Nylon screens on newly installed windows and combination doors may be acceptable, unless otherwise requested or stated. .9. If a window of any kind must be installed into the wet area of the tub or shower surround, it must: A. Contain a sill made of material that is water impermeable , such as marble or Corian, not tiled and grouted. B. Have a sill that is pan-flashed or sealed. C. Have frame made of moisture-tolerant material. .10. GREEN OPPORTUNITY. Replace existing windows and provide new windows with a high energy and low-e performance rating 11, GREEN OPPORTUNITY. Provide awnings, overhangs, or other shading devices on exterior windows. 5130 - Exterior Doors/Garage Doors .1. All exterior doors will be wood or metal finish (no hardboard). Primed/painted or stained/varnished. .2. Doors shall be durable, installed in good operating condition, free of defects, latch readily and lock securely. .3. Doors shall fit opening and operate properly. .4. All new door installation shall include new hinges and all necessary trim. .5. Entry Doors: A. Exterior entry doors shall be side-hinged doors not less than 3 ft. in width and 6 ft. 8 in. in height. B. 1 %"solid core- Birch, Mahogany, Luan; unless existing jamb takes 1 3/8" door. C. 3 each -4"x 4" butt hinges, unless existing jamb takes 1 3/8 '.00r, then 3-3'/"x 3 '/:" butt hinges. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 15 of 28 D. Exterior door frames shall be treated against decay. E. Locks- Kwikset, Schlage, or equal. .6. Garage Doors: A. Steel frame construction. B. Installing new garage hardware or replacement hardware shall comply with the following safety notice: ... FOR YOUR SAFETY ... California State Assembly#772 directed the Commission of Housing and Community Development to change the appropriate rules and regulations in ways that, "ARE REASONABLY NECESSARY TO PREVENT THE DEATH OR INJURY OF PERSONS OR DAMAGE RESULTING FROM THE BREAKING OF GARAGE DOORS SPRINGS". (quoted from Assembly Bill#772) 7. Weather-stripping shall be applied to all exterior doors and interior garage door. .8. Weather-stripping shall be aluminum and vinyl. Install after surfaces are finished and dry. .9. Thresholds and door shoes shall be installed at all exterior doors and interior garage doors and shall be aluminum thresholds, and aluminum/vinyl with drip cap door shoes (channel type), sealed to be watertight. .10. Exterior jambs will be rabbet type(ft wall thickness) and to include new wood (pine) casing material. Replace stucco molding only if required. .11. A safety door check shall be provided on all outward opening doors, including storm and screen doors. .12. Locking devices at doors and windows shall be as follows: A. Each exterior doorway and each doorway leading to garage areas, terraces, balconies, or other areas affording easy access to the premises shall be protected by a door which, if not a sliding door, shall be equipped with a deadlock using either an interlocking vertical bolt and striker, a minimum of 1.2 in. throw dead bolt or a minimum 112 in. throw self-locking dead latch. Locks shall not require the use of a key for operation from the inside. B. All sliding doors, first floor and basement windows and windows opening onto stairways, fire escapes, porches, terraces, balconies or other areas affording easy access to the premises shall be equipped with a locking device. A sliding door used as a main or service entrance shall be equipped with a keyed locking device. .13. Screens shall be aluminum/satin finish with latch set and pneumatic closure or equal. .14. Security Screen—Jamb/frame will be 1' 1/4"x 1' 1/4" (18 gauge)with 3/4 x 3/4" center framing (18 gauge) and heavy gauge metal screening. Combination (Bel-Aire) - Solid core (no panels). 1 3/8"door, 3 -3%"x 3 Y:" butt hinges; 1 %" Locks- Kwikset, Schlage, or equal. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 16 of 28 5140- Flashing .1. Flashing shall have a service life at least equal to that of the assemblies into which it is built. .2. Counter flashing is considered exposed flashing and shall be constructed of sheet metal. .3. Alternate products or systems of bitumen-impregnated plastic or elastomeric materials may be used for flashing if they are installed in accordance with the manufacturer's recommendations and are acceptable to the EDA. .4. All openings between wood or metal and masonry shall be caulked with a non- hardening caulking compound. 5200 — Roofing 5210 - Roof Coverings .1. Strip- Means to remove "all" roofing material to sheathing, with inspection of sheathing prior to installation of new roofing. .2. The Builder/Developer shall guarantee the owner to maintain the entire roofing, and counterflashing in a watertight condition for a period of fifteen years. .3. Shingles— A. Shall be fiberglass of 151b. felt. B. New metal 1 Y:" drip edge and roof jacks (form over shingles, seal around all pipes). .4. Built- Up/ Roll Roofing Cap A. Roll roofing cap to be a minimum of 90 lb. roofing paper and must bear a class "C" UL listing. B. One 90 lb. cap sheet to be installed over two layers of 15 lb. felt paper, saturated with at least 20 lb. of hot mopped tar, between layers. C. All base sheets to be well nailed with approved galvanized nails providing a minimum 3/4" penetration into a firm solid sheathed surface. D. New metal M."drip edge and roof jacks. 5 GREEN OPPORTUNITY. Provide reflective (high-albedo) roofing systems with an Energy Star rating. 5220—Gutters and Downspouts .1. Gutters and downspouts shall be provided at all projects. .2. Gutters and downspouts- Shall be a minimum of 26 gauge galvanized metal, or vinyl material. .3. Gutters shall be sloped to downspout and supported a maximum of 3' apart. .4. End caps, corner joints, splices, outlet tubes shall be soldered or have watertight joints. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 17 of 28 .5. Downspouts shall be fastened at top, bottom, and approximately every 6', and directed to drain away from the structure. .6. Downspouts shall be sized on the basis of 100 square feet of roof surface to 1 square inch of leader. More or less leader area may be required by the EDA. .7. Scuppers shall be installed at the outfall end of a valley for special roof designs, such as"butterfly" roofs. .8. Scuppers shall be installed for overflow of all roofs enclosed by parapet walls. 9. GREEN OPPORTUNITY Provide a simple rainwater harvesting system for use on irrigation. 6000 - Interior Construction 6010— Partitions/ Ceilings 6011 — Interior Insulation .1. Materials used for insulation shall be of proven effectiveness and adequate durability so as to ensure that required ratings concerning heat transmission, sound control and fire rating are attained. A. Manville, Owens/Corning, or equal. B. GREEN OPPORTUNITY Use cellulose insulation .2. Insulation in contact with the ground shall be installed so as not to be adversely affected by soil, vermin and water. .3. Shall be installed in accordance with Energy Conservation Standards administered by the Building & Safety Division of the City of San Bernardino. 6012 - Drywall .1. When installation of drywall is specified, provide%" U.S. Gypsum wall board or equal, unless otherwise specified. .2. GREEN OPPRTUNITY Select drywall products with a high recycled content and use taping materials and joint compound without hazardous additives that aid in drying and setting. .3. All joints and inside corners shall be taped; outside comers shall have corner bead troweled with joint compound (a minimum of three coats, and smoothly sanded or textured). .4. If kitchen base cabinets, toilet or lavatory are removed, and the drywall is to be replaced, it must be replaced with green board or equal. .5. If tub surrounding drywall is to be replaced, it must be replaced with wonder(cement) board. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 18 of 28 .6. All wall surfaces to receive ceramic tile shall receive wonder (cement) board or plaster in accordance with the following: A. Portland Cement plastering work shall be three-coat work when applied over metal and wire lath/wrap. B. Scratch (first) coat: Apply with sufficient material and pressure to fill solidly all openings in the lath/wrap, and to cover wall, and then scratch to rough surface. Allow to dry a minimum of two days (Example: complete scratch coat Tuesday, start brown coat Friday). C. Brown (second) coat: Apply after scratch coat has set firm and hard, bring out to grounds, and straighten to a true surface with rod and derby; leave rough, ready to receive finish coat. Surface shall not have variation greater than Y." in any direction under a five-foot straight edge. Allow to dry a minimum of seven full days before applying color coat(Example: complete brown coat on Tues., color coat not to start until following Wed.). 6020 -Interior Doors .1. Doors shall be durable, installed in good operating condition, free of defects, latch readily and close securely. .2. Doors shall fit opening and operate properly. .3. All new door installation shall include new hinges and all necessary trim and hardware. .4. Interior Hinged/Closet/ Bathroom Doors: A. Shall be side-hinged doors not less than 1 3/8"thick. B. At least 2 each 3 Y"x 3 Y:"butt hinges. C. Locks- Kwikset, Schlage, or equal. .5. Shower Door/Tub Enclosure: A. Shower Doors— MAAX, Kohler, or equal. Seal around frame and walls. B. Tub Enclosure - MAAX, Kohler, or equal. Seal around frame and walls .6. Door stops installed at all swinging doors shall be solid (no coil springs). .7. Interior jambs will be flat type (fit wall thickness) and to include new wood (pine) material stop molding and casing (both sides). 7000 - Finishes 7010—Ceramic Tile .1. Install ceramic tile where identified. .2. Ceramic tile to be American Olean, Dal-Tile, or equal. 3 GREEN OPPORTUNITY Use ceramic the with high recycled content .4. Submit a complete range of colors and types for the EDA's selection. One of each color of type selected shall be retained by the EDA. All materials placed in the building shall match such samples. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 19 of 28 .5. Applications and installation of adhesive, primer, caulking compound, and prepared grout when used, shall be as recommended by manufacturer of the tile and in accordance with these standard specifications. .6. Ceramic tile shall be applied over a water-proof surface only(cement or wonder (cement) board). .7. At showers, the top of step shall have slight slope into shower. 7020 - Floor Finishes .1. The Builder/Developer shall provide all necessary floor preparation of existing surfaces to properly receive new flooring material. .2. Sub-flooring shall be a minimum thickness of 3/4"plywood or lx boards. .3. Underlayment shall have a maximum thickness 318"industrial particle board. .4. Install all flooring per manufacturer's recommendation. .5. Existing floor covering to be removed prior to installation of new floor. .6. Provide underlayment when sub-flooring is in such a condition to warrant replacement. Bathroom, kitchen, and laundry underlayment to be of water resistant material. .7. Surfaces to receive flooring shall be clean, dry, smooth, even, and without defects. .8. At Bathrooms, the toilet and lavatory cabinet shall be removed before flooring installed. Reinstall toilet and cabinets. .9. Install new baseboard or shoe after installation of flooring. If cove is required, it shall be formed integrally of matching sheet material. Adhesives shall be as recommended by manufacturer. .10. Coat all concrete floors on earth grade with concrete primer as recommended by manufacturer. .11. Leveling compound and crack filler-As manufactured by Aetna Manufacturing Company for concrete floors or equal. .12. Linoleum (sheet goods) - FHA base cushioned,Armstrong -Cambray or equal. .13. Vinyl Tile -Armstrong-Stylistic or equal. .14. Carpet-260z. A. Base, HUD/FHA bulletin UP-44c requirement. B. Pad -5/8" rebond high plush, HUD bulletin UP-72 requirement. .15. GREEN OPPORTUNITY: Provide greener carpeting such as: A. Products made from natural materials; B. Products that do not contain residues from dyes and finishes used in manufacturing; C. Products that do not have surface treatments to repel stains; D. Products with documented low VOC offgassing; City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 20 of 28 E. Products with high recycled contents. .16. Submit a complete range of colors and types for the EDA's selection. 7030 - Ceiling Finishes .1. Ceilings shall be drywalled and painted. No sprayed on acoustical ceilings (popcorn) will be allowed. 7040 - Painting .1. Lead Content: A. The definition states in part, "..... with respect to paint which is manufactured after June 22, 1977, lead-based paint means any paint containing more than six one- hundredths of one percent lead by weight(calculated as lead metal) in total non- volatile content of the paint or the equivalent measure of lead in the dried film of paint already applied". B. All contractors and sub-contractors on rehabilitation activities will comply with the Lead-Base Paint Regulation under 24 CFR Part 35, requiring: i. The prohibition of the use of lead-based paint in the rehabilitation of properties; ii. The elimination of immediate lead-based paint hazards in residential structures. .2. All paint shall have low VOC levels. .3. If exterior painting is required, caulk all exterior door and window frames to seal completely. Remove all loose and deteriorated putty on windows and re-putty before painting. When painting of exterior trim is specified, this shall include doors, windows, all frames, eaves, soffits, porches and all appendages. .4. If a paint to be used on exterior surfaces is not inherently mold resistant, a suitable fungicide shall be included in the formulation. .5. If repair of exterior surfaces is indicated, remove all broken and loose material by raking out, scraping and sanding if necessary. Repair with proper material for area being repaired, blending in with texture of area being repaired. Prime the repaired area prior to painting. .6. If interior painting is indicated, repair all cracks by W"scratch approximately 1/8"X 1/8" in walls and ceilings of all rooms being re-painted. Use proper type of patching material for areas being repaired. Fill all cracks and holes solid and blend in repaired areas with texture of surface being repaired. Prime cracked areas prior to painting. When painting of walls and ceilings of a room is specified, this shall include all trim, windows and door frames, closets, and cabinets(inside). .7. All surfaces to be painted shall be free of dirt, dust, grease before painting is started. All knots, pitch streaks, and sappy spots shall be first sealed with shellac or sealer approved for use with materials as specified, before subsequent coats are applied. Each coat shall be allowed to dry before subsequent coat is applied. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 21 of 28 .8. If it should become necessary, in order to give good coverage because of surface condition of the paint color(s), it is the obligation of the Builder/Developer to apply sufficient coats to obtain complete coverage. .9. All new drywall shall be primed with one coat of Drywall Sealer/Primer before the application of the finish coat, unless otherwise specified. .10. Paint to be Dunn-Edwards, Glidden, Sinclair or equal. EDA to select color(s) and finish. 11. Paint for kitchen, service area, bathroom(s) to be a durable and washable gloss finish (unless EDA requests a semi-gloss). .12. Stain— Exterior/interior application (Minwax, Behr, or equal). .13. Varnish - Exterior/interior application (Behr, Varathane Elite, or equal). .14. Spar gloss or satin, EDA to specify (Behr, Varathane Elite, or equal). .15. Spar gloss or satin, EDA to specify (Behr, Varathane Elite, or equal). .16. Paint application shall consist of two coats on old material, and three coats on bear wood or new material. The top and bottom edges of interior doors shall be sealed (painted or varnished)with one coat, exterior doors with two coats. .17. Application of paints, stains, or other coating systems shall be in strict accordance with manufacturer's directions and shall comply with the following: A. Exterior Wood Siding, Millwork and Trim i. Knots, resinous wood, and nail holes shall be sealed with a prepared sealer or aluminum paint prior to puttying and priming. Any nail holes or cracks in surfaces to be painted shall be filled with putty. ii. A prime coat shall be applied to all surfaces to be painted before or immediately after installation. Primer shall be formulated specifically for application to unfinished wood. Finish coats formulated to serve as primers may be used. iii. One of the following finish systems shall be applied. Coverage shall be that which will provide at least the minimum thickness recommended by the manufacturer. a. Oil paint systems. b. Latex paint systems. c. Pigmented stains as per manufacturer's directions. d. Clear penetrating preservatives or water repellent finishing systems. iv. The top and bottom of exterior wood doors, casement sash, awning sash and the bottom of double hung sash shall receive two coats of paint or sealer. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 22 of 28 V. Prior to erection, all edges of vertical siding shall be sealed with a heavy coat of house paint primer, water repellent stain, exterior aluminum house paint or sealer. Wood batten strips shall be backed-primed or sealed. B. Wood Shingles, Shakes, Rough-sawn Siding. I. Two coats of oil stain, pigmented oil stain, or an oil shingle paint shall be applied. C. Hardboard and Softwood Plywood Siding. L These sidings shall be finished in accordance with the manufacturer's direction. D. Wood Porch Floors and Decks. L One coat of primer and two coats of floor and deck enamel designed for exterior use shall be applied. Joints between floor and wall shall be caulked. E. Unfinished Surfaces. L Shingles and board siding of vertical grain cedar, redwood and bald cypress may be left unfinished. F. Exterior Concrete Masonry Units or Concrete Brick I. At least two coats of masonry paint shall be applied. ii. Concrete masonry units or concrete brick, except small areas of foundation walls, shall be painted to provide a water resistant finish. iii. High density concrete brick or solid split block forming the outer face of double unit walls(veneer, cavity walls, etc.) may be left unpainted when acceptable to the EDA. G. Exterior Galvanized Steel or Iron L Field painting shall consist of two coats. One coat shall be a primer formulated specifically for galvanized surfaces, and the second coat shall be a finish coat. A finish coat formulated to serve as a primer may be used as the first coat. H. Exterior Steel, Iron or Terns Plate ii. Steel or iron, except stainless steel, weathering steels, or steel treated with coatings to provide corrosion resistance, shall be painted. iii. A rust inhibitive primer and a finish coat shall be applied. I. Interior Millwork and Trim L All mill work and trim, including windows; interior doors; window, door and base trim; paneling and closet shelving and trim shall be finished by painting or natural finishing. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 23 of 28 ii. If the surface is open grain wood, it shall be filled or sealed to prevent the grain from rising. Surfaces shall be treated with a primer. One or more finish coats shall be applied to provide a smooth surface and good hiding. iii. Natural finishes include stain-wax, stain followed by one or more coats of varnish, clear coats of varnish with or without wiped paint undercoats or oil and wax finishes. J. Wood Floors i. If Flooring is open grain wood, one coat of filler shall be applied. All excess shall be wiped off. ii. Flooring shall be finished with: a. One or two coats of penetrating sealer and one coat of wax; or b. Two coats of varnish and one coat of wax; or c. Two coats of polyurethane; or d. One or more coats of factory-applied finish. K. Interior Plaster and Gypsum -Walls and Ceilings L Plaster surfaces may be painted, covered or left unfinished, except for surfaces of kitchens and baths. If painted, a finished coat shall be applied over a primer-sealer, unless finish coats are of the self-priming type. ii. Gypsum wallboard shall be covered. If painted, one coat of wallboard sealer shall be applied unless finish coats are of the self-sealing type. Two finish coats shall be applied over the sealer. One finish coat, except in kitchen and baths, may be acceptable if good coverage is obtained. L. Interior Metal L Non-ferrous metals or wrought iron may be painted or left unfinished. Other metals shall be painted in accordance with 609-3.4. M. Interior Concrete Floors L If painted, at least two coats of resin emulsion paint, a solvent rubber paint or a floor and deck enamel shall be applied. If oil paint is used, the surface shall be neutralized before painting. ii. A coat of wax shall be applied over paint, stain or an integral finish. N. Wall Coverings L Covering material shall be secured to a suitable base in accordance with the manufacturer's directions. ii. All rooms that have new wall covering installed will include molding, trim, base, and painting (if required). City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 24 of 28 8100— Furnishings 8110—Carpentry, Cabinets, and Millwork .1. All manufactured factory finished cabinets shall comply with ANSI A161.1-86, Recommended Minimum Construction and Performance for Kitchen and Vanity Cabinets, or with an equivalent standard. .2. Workmanship: All interior wood finish, cabinet and casework shall be smooth dressed, well sanded, and thoroughly cleaned before priming. All material showing machinery, sandpaper, or other defacing marks will be rejected. Interior wood finish or cabinet work shall not be installed on newly plastered walls until the plaster in that section is reasonable dry and approved by the EDA. .3. All interior wood finish, doors, frames, and other cabinet work or fixed wood equipment shall be properly installed, level plumb, and true. Members shall be neatly and accurately scribe in place, maintaining full lengths without splicing, except where the use of full lengths would be impractical or impossible, and then if joined, butt joints shall be beveled. Replacement and installation of new trim or molding shall match existing in size and profile or otherwise be reasonably appropriate upon finished installation. .4. All cabinets (kitchen base and wall, bathroom lavatory, etc.) shall be a minimum of birch plywood construction (stain grade quality), shop fabricated casework, with all necessary hardware. Shelving shall not be less than 3/4" pine, plywood, or particle board. Kitchen base cabinets shall have a built-in bread board. .5. All cabinets and trim shall be scribe to contacting surfaces and shall be straight, plumb level and in true alignment, closely fitted, and rigidly fastened in place. .6. Countertops: A. Top material shall be phenolic laminate, vinyl plastic covering, ceramic tile, stainless steel or other material suitable for its intended use. B. The top material shall be securely bonded to a reinforced steel core, to 5/8 in. plywood, or to any other equivalent material. C. At least a 3 in. back and end splash shall be provided against all abutting vertical surfaces which are not water and grease resistant. When a back splash is omitted, the joints at the juncture of the counter top and vertical surfaces shall be tight and sealed. D. All edges, including the sink and any built-in surface units, shall have a non- corrodible metal molding or other suitable edging. E. High Pressured Laminated Plastic(Formica or equal) - Shall be constructed with a bullnose front edge, minimum of a standard back splash where it abuts walls, and full length of cabinets. If laminated plastic ends at wall, provide end splash (material must be identical to counter top original color). Scribe and closely fitted to adjacent work, and securely anchored to cabinets. Installation of sinks shall have required mounting Flange and sealed agains' 3aking. No butcher block unless otherwise requested or stated by the EDA. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 25 of 28 F. Ceramic Tile- Shall be applied over a plastic cement base secured to 3/4" exterior plywood secured to the cabinets. Raise front edge, minimum of a standard back splash, and sealed at edges of full length cabinets. (See Ceramic Tile Specification). G. GREEN OPPORTUNITY. Countertops shall be made of natural stone (granite), tiles, or manufactured solid surfaces (Corian). .7. Interior woodwork: A. Trim (D.F.) "B or better". B. Shelving - Particle board or#2 shelving. 9000— Plumbing, Mechanical, Electrical 9010 - Plumbing Fixtures .1. All fixture installation is to include trap, vent, faucets, and all trim necessary to mount fixture in an approved manner, and to include repair of damaged areas affected by the installation. When kitchen or lavatory faucet is replaced, it will also include risers. Replace all angle stops. .2. Fixtures: A. Water closets- Deep bowl (round or elongated per EDA request). American Standard - Hydra; Eljer—Titan; Kohler; or equal. Handicap (17" high). Must be rated at no more than 1.6 gallons per flush. i GREEN OPPORTUNITY: Use of a high-efficiency toilet that uses less than 1.6 gallons per flush is recommended. B. Bathtubs- 5' pressed steel-American Standard; Kohler, or equal C. Lavatories—American Standard, Kohler, or equal. D. Kitchen Sinks-Single or double compartment enameled cast iron - Kohler or equal; Single or double compartment stainless steel (7" depth, 20 gauge minimum thickness) -Sterling or equal. E. Garbage Disposal- Insinkerator— Badger 2, 1/2 HP (3 year warranty) or equal. F. Laundry Sinks-American Shower& Bath, or equal. G. Faucets i. Lavatory - Delta, Peerless, Kohler, or equal. ii. Tub/Shower Diverter- Price Pfister, Kohler, or equal. iii. Shower- Price Pfister, Kohler, or equal. iv. GREEN OPPORTUNITY: Provide low flow faucets and shower heads or fit standard faucets with a flow reducing aerator. H. Bathtubs-5' Lasco; Hess Co; or equal. I. Tub Wall Kits- Plaskolite, Elite; Nova, Seville; or equal. J. Shower- Lasco, or equal. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 26 of 28 K. WATER HEATERS: i. Shall be Reliance; Galaxie; Whirlpool; or equal, with an eight(8) year warranty. Size shall be as required to service property. ii. All shall have pressure/temperature relief valve with a drain line to the outside; or if located on a concrete floor in center of house- pressure/temperature relief valve and drain line shall be installed per Building and Safety requirements. iii. All units shall be secured to walls. iv. All units shall be insulated. V, GREEN OPPORTUNITY. Water heater should have a high-efficiency rating. 9020 - Domestic Water Distribution .1. Each dwelling shall be provided with a continuing and sufficient supply of safe water under adequate pressure and of appropriate quality for all household uses, and one that will not impair the functioning or durability of the plumbing system or attachments. .2. Connection shall be made to a publicly owned or publicly controlled water supply system that is adequate to serve the demands of the project. .3. Provide all connections to risers or fixtures from top to mains so that the entire system can be drained at low point. .4. Provide hot water supply to all fixtures except water closets. .5. Support piping from the building structure by means of hangers to maintain required grading and pitching of lines and to prevent vibration. 6. GREEN OPPORTUNITY: All hot water lines shall be insulated. 7. GREEN OPPORTUNITY: Consider the use of PEX piping. 8. GREEN OPPORTUNITY. Provide a single-throw shut-off valve at service to clothes washing machines. If machine located above a livable space, provide a floor drain and shower pan under the washing machine. 9030 - Sanitary Waste .1. Roto Root(clean) all drain lines to street through clean-out cap, roof vent, etc. .2. Each dwelling shall be provided with a water-carried system adequate to dispose of domestic wastes in a manner which will not create a nuisance or endanger the health of the occupants or the public. .3. Connection shall be made to a publicly owned or publicly controlled system that is adequate to serve the needs of the project. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 27 of 28 9100 - Heating, Ventilating, and Air Conditioning (HVAC) 9110— Heating and Ventilating .1. Heating and ventilating equipment shall be Trans; Bryant; Carrier; or equal, as appropriate to the situation. .2. GREEN OPPORTUNITY: Equipment should be rated as high effieciency. .3. GREEN OPPORTUNITY. Evaluate existing heating and ventilation system and down size or reconfigure to be more efficient. Do not oversize equipment. .4. GREEN OPPORTUNITY: Consideration should be given to using equipment that provides alternatives to conventional refrigerant, such as non ozone depleting HFC refrigerants. 5 GREEN OPPORTUNITY Provide ceiling fans in bed rooms and living spaces. .6. Provide wall thermostat with complete vent system, attic shield, roof jack, and gas piping/shut-off valve. 7 GREEN OPPORTUNITY. Install programmable thermostats with both daytime and nighttime setbacks. Separate control of different spaces into zones so that the unit works more efficiently. 8. GREEN OPPORTUNITY Provide duct cleaning prior to turn over .9. Install in an approved manner and location. .10. Crawl Space Ventilation: A. The space between the bottom of the floor joists and the earth under any building (except such space as is occupied by a basement or cellar) shall be provided with a sufficient number of ventilating openings through foundation walls or exterior walls to ensure ample ventilation. Such openings shall be covered with a corrosion-resistant wire mesh with a mesh size not greater than 1/2 in. nor less than 1/4 in. in any dimension. The minimum net area of ventilating openings shall not be less than 1 sq. ft. for each 150 sq. ft. of crawl space area. B. One ventilating opening shall be within 3 ft. of each corner of each building where such openings are required. .11. Attic Space Ventilation A. Cross ventilation shall be provided for each separate space. Ventilation openings shall be protected against the entrance of rain and snow. B. The ratio of the total net free ventilation area to the area of ceiling shall be not less than 1/150, except that the ratio may be 1/300 if: I. A vapor retarder having a transmission rate not exceeding one perm is installed on the warm side of the ceiling; ii. Between 25 and 50 percent of the required ventilating area is provided by vents located in the eaves or cornices with the balance of the required ventilation provided by ventilators located at least 3'-0" above the vents in the eaves or cornices; or City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 28 of 28 iii. The attic space is accessible and suitable for future habitable rooms or walled-off storage spaces have at least 50% of the required ventilating area located in the upper part of the ventilated spaces as near the high point of the roof as practicable and above the probable level of any future ceiling. 9200 - Fire Protection Systems 9210- Fire Protection Specialties 1. Provide smoke detectors that are U.L. approved; First Alert SA1501-T, or equal. Hard wire will have battery back-up. 2. GREEN OPPORTUNITY Provide carbon monoxide detectors. 9300 - Electrical Systems 9310 - Electrical Service and Distribution .1. When required, provide a new electrical service box/meter. All existing circuits shall be checked out and split as required. All new loads, outlets, lights, etc., must be on additional circuits, unless prior approval is received from the EDA. .2. Electrical Service installed at location shall be as recommended by Edison Company. .3. Check all services and verify all electrical service, circuits (marking panel if not done); replacing all faulty outlets, switches, damage and missing cover plates; for house and garage. .4. When encountering non-complying wiring, it is to be removed in its entirety. This is to include boxes, lights, old panels(unless used for junction box), etc.; and to include repair, patching, and painting of all areas affected (to match existing)--ceilings, walls, etc. All new wiring shall be concealed within walls, ceilings unless approval from the EDA is obtained prior to installation. 5. GREEN OPPORTUNITY, All bulbs shall be fluorescent No incandescent lighting will be allowed 6. GREEN OPPORTUNITY. Avoid recessed lighting. When required use insulation- contact fixtures that seal tightly and allow insulation to be packed against them. 7. GREEN OPPORTUNITY Install dimmer switches at all living areas. Restrooms shall have motion detector switches 8. GREEN OPPORTUNITY All low voltage (telephone, data, television) shall be run in conduits to provide for future expansion andlor replacement. AFFORDABLE HOUSING SOLUTIONS OF SAN BERNARDINO,INC. DEVELOPMENT AGREEMENT FOR INTERMEDIARY SERVICES [INLAND EMPIRE CONCERNED AFRICAN AMERICAN CHURCHES] This Development Agreement for Intermediary Services (the "Agreement") is made and entered into as of March 15, 2010, by and between Affordable Housing Solutions of San Bernardino, Inc. ("AHS"), a California 501(c)(3) public benefit corporation, and Inland Empire Concerned African American Churches, a California 501(c)(3) public benefit corporation, ("Consultant"). NOW, THEREFORE, IN CONSIDERATION OF THE COVENANTS AND MUTUAL PROMISES CONTAINED HEREIN AND FOR SUCH OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED, THE PARTIES HERETO AGREE AS FOLLOWS: 1. Supervision of Consultant. The AHS officers and or their assignee's designated in Exhibit "F" attached hereto (collectively, the "AHS Representatives") shall be responsible for the direction of any work to be performed by the Consultant and any other consultants or subconsultants to AHS under this Agreement. The Consultant shall not undertake any work under the terms of this Agreement, unless instructed to do so by any one of the AHS Representatives. No other AHS representative is authorized by AHS to request services from the Consultant, pursuant to this Agreement. Approval by any one of the AHS Representatives shall constitute approval by AHS. 2. Term of Agreement. The term of this Agreement shall commence on the date first appearing in this Agreement (the "Effective Date") and will terminate six (6) months after this date, unless earlier terminated as provided in this Agreement. AHS will have the option to extend the term of this Agreement at the sole option and discretion of AHS with the written consent of the Consultant. AHS reserves the right through the actions of the Chief Executive Officer or the Chief Operating Officer of AHS to terminate this Agreement at any time either with or without cause and at the sole convenience of AHS upon delivery of notice of termination to the Consultant; provided, however, that upon the effective date of any such termination, AHS shall be responsible to pay and/or reimburse the Consultant for all services, materials and supplies as may have been furnished to AHS prior to the date of the termination of this Agreement in accordance with the Scope of Services as referenced in Section 3. 3. Scope of Consultant Services. AHS hereby retains the Consultant to provide the professional consulting services set forth in the Scope of Services attached hereto as Exhibit"E" and incorporated herein by this reference. The Consultant hereby agrees to perform the work set forth in the Scope of Services, in accordance with the terms of this Agreement. The Consultant shall perform the services as set forth on said Scope of Services within the time periods to be identified by the appropriate AHS Representative. The Consultant shall comply with those laws, regulations or ordinances governing fair housing and equal opportunity practices and the -I- P UgmdaMUgr Aftac a Mgenda AmchmeMSWgmis-Amend 20IM3.15-10@C CD elopmem Ageemmt-Ftm dM abatement of lead-based paint, asbestos and mold practices as required under the Neighborhood Stabilization Program ("NHS") promulgated by the United States Department of Housing and Urban Development("HUD")pursuant to the provisions of the Housing and Economic Recovery Act of 2008, Public Law 110-289 — July 30, 2008, Title IH — Emergency Assistance for the Redevelopment of Abandoned and Foreclosed Homes, Section 2301, et seq., as the same may be hereafter amended, restated or supplemented from time-to-time, and the Notice of Allocations, Application Procedures, Regulatory Waivers Granted to and Alternative Requirements for Emergency Assistance for Redevelopment of Abandoned and Foreclosed Homes Grantees under the Housing and Economic Recovery Act, 2008 issued by HUD and found at the Federal RegisterNol. 73, No. 194/Monday, October 6, 2008/Notices, as the same may be hereafter amended, restated or supplemented from time-to-time (collectively,the"NSP Regulations") 4. Payment by AHS for Work Performed by the Consultant. A. AHS shall compensate the Consultant for completion of the services described in the Scope of Services set forth in Exhibit "E", "Scope of Services", in accordance with the guidelines stipulated in Exhibit"H","Consultant Payment and Reimbursement". B. The compensation designated in subsection 4.A. shall be the "Total Fee" for the performance of the work and the delivery of the final work product materials, as set forth in the Scope of Services for each property acquired directly or indirectly by AHS for which the services were provided by the Consultant in accordance with this Agreement. The Total Fee shall include, but not be limited to, the materials and salaries of all subcontractors and vendors retained by the Consultant and all employees of the Consultant to perform work pursuant to this Agreement and all general overhead expenses of the Consultant inclusive of all costs and expenses incurred for mileage, travel, graphics, telephone, printing, fax transmission, postage, copies and such other expenses related to completion of the work set forth in the Scope of Services. C. The Consultant shall invoice AHS for eligible predevelopment expenses and work performed by the Consultant under this Agreement through funds draw requests submitted by the Consultant in accordance with AHS's policies and procedures, and approved by AHS, on a monthly basis, or on a more frequent basis if requested by the Consultant and approved by AHS, with the first draw request occurring no earlier than two (2)weeks after the Effective Date. D. The Consultant shall submit draw requests under this Agreement to: Affordable Housing Solutions of San Bernardino, Inc. Attention: Chief Operating Officer 201 North"E" Street, Suite 301 San Bernardino, California 92401 E. The Consultant's funds draw request shall set forth the cost of any direct labor and materials incurred in performance of the Scope of Services, the appropriate portion of fees described in Exhibit "H", as applicable, the cost of any permits or licenses required to perform -2- PUgenEUNgmtlaAnnhmems\AgeMaAna chmmn\AgmtsAmend 20103-15-10 MCAACD iapmmn Agmmem-Final.tloc the Scope of Services, and any other costs approved by AHS. Each draw request submitted by the Consultant shall include copies of all third party invoices for any subcontractors or other consultants hired, any invoices for materials, any conditional and unconditional lien releases for invoices submitted by subcontractors or other consultants, and any forms or documents provided by AHS that AHS requires to be included as part of the Consultant's draw request. All funds draw requests shall be signed by the Consultant and approved and signed by an AHS Representative or an AHS designated agent. Upon receipt of the Consultant's draw request package, AHS shall review the draw request package and notify the Consultant whether it approves of the draw request within three (3) working days after receipt of the draw request. AHS shall issue a check or wire transfer to the Consultant equal to the total amount of those costs included in the draw request and approved by AHS. 5. Records Retention. Records, maps, field notes and supporting documents and all other records pertaining to the use of funds paid to the Consultant hereunder shall be retained by the Consultant and shall be made available to AHS for examination and for purposes of performing an audit for a period of five (5) years from the date of expiration or termination of this Agreement or for a longer period, as required by law. Such records shall be available to AHS and to appropriate county, state or federal agencies and officials for inspection during the regular business hours of the Consultant. If the Consultant does not maintain regular business hours, then such records shall be available for inspection between the hours of 9 a.m. and 5 p.m. Monday through Friday, excluding federal and state government holidays. In the event of litigation or an audit relating to this Agreement or funds paid to the Consultant by AHS under this Agreement, such records shall be retained by the Consultant until all such litigation or audit has been resolved. 6. Indemnification. The Consultant shall defend, indemnify and hold harmless AHS, its officers, employees, representatives, and agents (collectively, the "Indemnified Parties") from and against any and all actions, suits, proceedings, claims, demands, losses, costs and expenses, including audit fees and other audit related costs, legal costs and attorneys fees, for injury or damage of any type claimed as a result of the acts or omissions of the Consultant, its officers, employees, subcontractors and agents, arising from or related to performance by the Consultant of the work required under this Agreement; provided, however, in no event shall the Consultant be liable to the Indemnified Parties in the event that any such actions, suits, proceedings, claims, demands, losses, costs and expenses result from the gross negligence, fraudulent conduct or willful misconduct of the Indemnified Parties, or any one of them. Moreover, the Consultant shall not be liable to the Indemnified Parties for defects not normally identified. Notwithstanding the foregoing, under no circumstances shall the Consultant be liable to the Indemnified Parties as a result of the failure of AHS to provide to the Consultant any amounts due to the Consultant in accordance with this Agreement, unless such failure was the result of gross negligence, fraudulent conduct or willful misconduct on the part of the Consultant. -3- P:UgerdaaUgeMaAnmhmentMgmdeNoR MskAgtmis OA WIM-15.10@C C Development Agreemem-flo .dw Notwithstanding anything to the contrary provided in this Agreement, it is specifically understood and agreed, such agreement being a primary consideration for the execution of this Agreement by the Consultant, that there shall be absolutely no personal liability on the part of any shareholder, director, officer, manager, member or employee of the Consultant with respect to any of the terms, covenants and conditions of this Agreement. The Agency hereby waives all claims, demands and causes of action against the shareholders, directors, officers, members or employees of the Consultant in the event of any breach by the Consultant of any of the terms, covenants and conditions of this Agreement. 7. Insurance. The Consultant shall maintain insurance, as set forth in Exhibit "G" to this Agreement, throughout the term of this Agreement, or in lieu of this insurance coverage, the Consultant shall require its designated General Contractor to maintain such insurance as set forth in Exhibit "G" and name the Consultant, AHS and the Redevelopment Agency of the City of San Bernardino ("Agency") as Additional Insureds under such insurance. The Consultant shall remain liable to AHS pursuant to Section 6 above to the extent the Consultant is not covered by applicable insurance for all losses and damages incurred by AHS that are caused directly or indirectly through the actions or inactions, willful misconduct or negligence of the Consultant in the performance of the duties incurred by the Consultant pursuant to this Agreement. AHS shall maintain insurance against loss or damage to real property under an "all risk" or "special form" property insurance policy, which shall include coverage against all risks of direct physical loss, including loss by fire, lightning, terrorism, ordinance or law, and other risks normally included in the standard ISO special form (which shall include flood insurance if the property is located within a flood hazard area and which shall include earthquake insurance if the property is located in an area where earthquake insurance is customarily maintained for similar residential property). Such insurance shall be in amounts sufficient to prevent the Consultant from becoming a co-insurer under the policy, and in any event, after application of deductible, in amounts not less than 100% of the full insurable replacement cost. 8. Press Releases. Press or news releases, including photographs or public announcements, or confirmation of the same related to the work to be performed by the Consultant under this Agreement shall only be made by the Consultant with the prior written consent of AHS, which consent shall not be unreasonably withheld. This Section 8 does not apply to the advertising or other promotional materials used by the Consultant to sell the Rehabilitated Home. 9. Default and Remedies. A. The occurrence of any of the events listed in Exhibit "J", Section A.(1) through (7), shall after the giving of any written notice described therein, constitutes a default by the Consultant hereunder("Event of Default"). B. Upon the occurrence of an Event of Default, AHS may, in its sole discretion, take any of the actions listed in Exhibit'7,Section B.(1)through(7). -4- PUVndas\Agenda AM mMpMa 2010\01-1510@ "C Dwelopm Agnes -Final dw C. Any failure or delay by a party in asserting any of its rights or remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a default. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties under this Agreement are cumulative and the exercise by any party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. D. The Consultant has the right to implement the remedies in Exhibit "P', Section C.(1) and (2), upon the default or failure of AHS to meet any of its obligations under this Agreement without curing such failure within thirty (30) calendar days after receipt of written notice of such failure from the Consultant specifying the nature of the event or deficiency giving rise to the default and the action required to cure such deficiency. 10. Termination. A. This Agreement may be terminated by either party for any reason by giving the other party fifteen (15) calendar days' prior written notice. AHS shall pay the Consultant for all work authorized by AHS and completed,prior to the effective termination date. B. In the event of a termination of this Agreement, the Consultant shall provide all documents, notes, maps, reports, data or other work product developed in performance of the Scope of Services of this Agreement to AHS within ten(10) calendar days after such termination and without additional charge to AHS. C. In the event of the expiration or early termination of this Agreement for any reason, AHS shall pay and/or reimburse the Consultant for all services, materials and supplies as may have been furnished to AHS prior to the date of the termination of this Agreement. 11. Notice. All notices given hereunder shall be in writing. Notices shall be presented in person or by certified or registered United States Mail, return receipt requested, postage prepaid or by overnight delivery by a nationally recognized delivery service to the addresses set forth below. Notice presented by United States Mail shall be deemed effective on the third (3`d) business day following the deposit of such Notice with the United States Postal Service. This Section 11 shall not prevent the parties hereto from giving notice by personal service or telephonically verified fax transmission, which shall be deemed effective upon actual receipt of such personal service or telephonic verification. Either party may change their address for receipt of written notice by notifying the other party in writing of a new address for delivering notice to such party. CONSULTANT: Inland Empire Concerned African American Churches Attention: President 1777 West Baseline Road San Bernardino, CA 92411 i_ P:41gmWu\Agenda AnachmemaUgeMa AnuFmenuUgoHS-Amend 301Ybl-IS-IOIECM �welopmrntAgeemrnt-Fireldrc AHS: Affordable Housing Solutions of San Bernardino, Inc. Attention: Carey K. Jenkins, Chief Operating Officer 201 North"E" Street, Suite 301 San Bernardino, California 92401 Phone: (909)663-1044 Fax: (909) 888-9413 12. Compliance with Law. The Consultant shall comply with all local, state and federal laws, including, but not limited to, environmental acts,rules and regulations applicable to the work to be performed by the Consultant under this Agreement. The Consultant shall maintain all necessary licenses and registrations for the lawful performance of the work required of the Consultant under this Agreement. 13. Nondiscrimination. The Consultant shall not discriminate against any person on the basis of race, color, creed, religion, natural origin, ancestry, sex, marital status or physical handicap in the performance of the Scope of Services of this Agreement. Without limitation, the Consultant hereby certifies that it will not discriminate against any employee or applicant for employment because of race, color, religion, sex, marital status or national origin. Further, the Consultant shall promote affirmative action in its hiring practices and employee policies for minorities and other designated classes in accordance with federal, state and local laws. Such action shall include, but not be limited to,the following: recruitment and recruitment advertising, employment, upgrading and promotion. In addition, the Consultant shall not exclude from participation under this Agreement any employee or applicant for employment on the basis of age,handicap or religion in compliance with state and federal laws. 14. Consultant and each Subcontractor are Independent Contractors. The Consultant shall at all times during the performance of any work described in the Scope of Services be deemed to be an independent contractor. Neither the Consultant nor any of its subcontractors shall at any time or in any manner represent that it or any of its employees are employees of AHS or any department, commission or subsidiary entity of AHS. AHS shall not be requested or ordered to assume any liability or expense for the direct payment of any salary, wage or benefit to any person employed by the Consultant or its subcontractors and vendors to perform any item of work described in the Scope of Services. The Consultant is entirely responsible for the immediate payment of all subcontractor liens. 15. Severabilitv. Each and every section of this Agreement shall be construed as a separate and independent covenant and agreement. If any term or provision of this Agreement or the application thereof to certain circumstances shall be declared invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to circumstances other than those to which it is declared invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. •6- PUgerAa 4U aAn=hnumsUge a"=u ensXA mis-Amend 2010A3-15-10@C CDne]Vp Affe -FiW.d 16. Entire Agreement. This Agreement constitutes the entire agreement between the parties. This Agreement supersedes all prior negotiation, discussions and agreements between the parties concerning the subject matters covered herein. The parties intend this Agreement to be the final expression of their agreement with respect to the subjects covered herein and a complete and exclusive statement of such terms. 17. Amendment or Modification. This Agreement may only be modified or amended by written instrument duly approved and executed by each of the parties hereto. Any such modification or amendment shall be valid, binding and legally enforceable only if in written form and executed by each of the parties hereto, following all necessary approvals and authorizations for such execution. Any such amendment or modification to be effective as to AHS must be approved by its officers or designated representatives. 18. Governing Law. This Agreement shall be governed by the laws of the State of California. Any legal action arising from or related to this Agreement shall be brought in the Superior Court of the State of California in and for the County of San Bernardino. 19. Non-Waiver. Failure of either party to enforce any provision of this Agreement shall not constitute a waiver of the right to compel enforcement of the same provision or any remaining provisions of this Agreement. 20. Assignment. This Agreement shall be assignable by the Consultant only if the Consultant obtains the prior express written consent of AHS, which consent may be withheld by AHS in its sole discretion. Notwithstanding anything to the contrary in this Agreement, no purported assignment of this Agreement shall be effective if such assignment would violate the terms, conditions and restrictions of any applicable governmental restrictions. AHS' consent to such assignment shall be expressly conditioned upon (i) the assignee's execution of such documents as required by AHS in its sole discretion, including, without limitation, any and all documents deemed necessary by AHS to provide for said assignee's assumption of all of the obligations of the Consultant hereunder and under any documents executed by the Consultant in connection herewith, and (ii) AHS' approval of the financial and credit-worthiness of such proposed assignee and the assignee's ability to perform all of the Consultant's obligations under this Agreement and all documents executed in connection herewith, as may be determined by AHS at its sole discretion. 21. Representations of Persons Executing the Agreement. The persons executing this Agreement warrant that they are duly authorized to execute this Agreement on behalf of and bind the parties each purports to represent. 22. Execution in Counterparts. This Agreement may be executed in one (1) or more counterparts, each of which will constitute an original. 23. Effectiveness of the Agreement as to AHS. This Agreement shall not be binding on AHS until signed by an authorized representative of the Consultant, and approved and executed by the Chief Executive Officer of AHS or his designee. The Agency shall provide -7- eUge aMpe AtuchmmtMgmda MI M3-is-10� Cu e4MM A® em-Mul.doc the Consultant with written notice of the approval of this Agreement upon Community Development Commission of the City of San Bernardino ("Commission")action. 24. Conflicts of Interest. The Consultant hereby represents that it has no interests adverse to AHS or the Agency, at the time of execution of this Agreement. The Consultant hereby agrees that, during the tern of this Agreement, the Consultant shall not enter into any agreement or acquire any interests detrimental or adverse to AHS or the Agency. Additionally, the Consultant hereby represents and warrants to AHS and the Agency that the Consultant and any partnerships, individual persons or any other party or parties comprising the Consultant, together with each subcontractor who may hereafter be designated to perform services pursuant to this Agreement, do not have and, during the term of this Agreement, shall not acquire any property ownership interest, business interests, professional employment relationships, contractual relationships of any nature or any other financial arrangements relating to AHS or the Agency, property over which AHS or the Agency have jurisdiction or any members or staff of AHS or the Agency that have not been previously disclosed in writing to AHS, and that any such property ownership interests, business interests, professional employment relationships, contractual relationships of any nature or any other financial arrangements will not adversely affect the ability of the Consultant to perform the services to AHS as set forth in this Agreement. AHS acknowledges and agrees that the foregoing shall not prohibit the Consultant or any affiliates thereof from managing or applying for funds granted by HUD pursuant to the NSP and allocated or awarded to jurisdictions outside of the City of San Bernardino, California, or from receiving a direct grant of funds from HUD pursuant to the NSP. 25. Non-Exclusivity. This Agreement shall not create an exclusive relationship between AHS and the Consultant for the services set forth in Exhibit "E" or any similar or related services. AHS may, during the term of this Agreement, contract with other consultants for the performance of the same, similar or related services as those that may be performed by the Consultant under this Agreement. AHS reserves the discretion and the right to determine the amount of services to be performed by the Consultant for AHS under this Agreement, including, not requesting any services at all. This Agreement sets forth the terms upon which any such services will be provided to AHS by the Consultant, if such services are requested by AHS, as set forth in this Agreement. 26. Consequential Damages and Limitation of Liability. AHS and the Consultant agree that except as otherwise provided in this Section 26, in no event will either be liable to the other under this Agreement for any damages including, but not limited to, special damages, loss of revenue, loss of profit, operating costs or business interruption losses, regardless of cause, including, breach of contract, negligence, strict liability or otherwise. The limitations and exclusions of liability set forth in this Section 26 shall apply regardless of fault, breach of contract, tort, strict liability or otherwise of the Consultant and AHS, their employees or subconsultants. 27. Business Registration Certificate. The Consultant warrants that it possesses, or shall obtair mmediately after the execution and delivery of this Agreement, and maintain during the period i time that this Agreement is in effect, a business registration certificate pursuant to -8- PUgendu Wnda Ail nentsNgenda 3010A3-15-10 MCMC IkvelWp Ag nffl-Find dnc Title 5 of the City of San Bernardino Municipal Code, together with any and all other licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to be maintained by the Consultant to conduct its business activities within the City. [SIGNATURES ON FOLLOWING PAGE] u -9- P'Ngendaa4lgendaA bm Mgende AnuhMMAAgm Am 3010M-15-10 MCMCO dog uA�-Fioaldm IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date indicated next to the authorized signatures of the officers of each of them as appear below. AHS Affordable Housing Solutions of San Bernardino, Inc. a California 501(c)(3)public benefit corporation Dated: By: Emil A. Marzullo,Chief Executive Officer Approved as to Form: By: Timothy J. Sab6i Agency Counsel CONSULTANT Inland Empire Concerned African American Churches a California 501(c)(3)public benefit corporation Dated: By: Name: Title: -10- PMgeMes FA aAuac nlsUsc aA11+o s\Agml Am NIM3-15.10 IE(;AACIMVebp� Ag =M-Fi Idm Exhibit°A" Legal Description -11- PUgendes\Ag WaAtbchmentsWgends AtuchmemsWgmnAmeod 201=3-15-10@ MCU Iopmem Agr nt-Fiml dm Order Number: IW-3420550 Page Number. 6 l; LEGAL DESCRIPTION Real property In the City of San Bernardino, County of San Bemardino,State of Califomla, described as follows: LOT 42,TRACT NO. 3536, IN THE CITY OF SAN BERNARDINO,COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,AS PER PLAT RECORDED IN BOOK 46 OF MAPS PAGE 56, RECORDS OF SAID COUNTY. i APN: 0143-133-42 I fbstAme ican Tide Exhibit `B" Total Development Cost Pro Forma -12- PbVnftMpadaA ehmm MpMa AttachmmtsVl s-Ammd 301P03-15-101FAAACD dopmem Ag cre-Fiml doe EXHIBIT B TO DEVELOPMENT AGREEMENT TOTAL DEVELOPMENT COST PRO FORMA Acouistton Costs List Price 44,500 Appraisal value before rehab Discount 445 Amount of discount allowed by the seller Purchase Price 44,055 Difference between List Price and Discount Closing Costs 531 Escrow and Title Fees, etc. Subtotal Acquisition Costs 44,586 Rehabilitation Costs Direct Rehabilitation 54,460 Cost estimated to complete scope of work Contingency 5,446 Property Management Fee I. 13,S92 Intermediary fixed fee for managing property Subtotal Rehabilitation Costs 2. 73,498 Indirect Costs Property Taxes 175 Property taxes incurred during holding period Homebuyer Qualifying Fee 3. 800 Intermediary fixed fee per homebuyer General Contractor Fee/Olacy Co. 4. '8,568 Intermediary Fee: fixed % of Dir. Rehab.+ Contingency Sales Commission 5. '.4,500 Intermediary Fee: %of EDA Final Price Sales Closing Costs 2,500 Escrow, title fees, taxes etc. at sale closing. Insurance Subtotal Indirect Costs 6. 16,543 Financing Costs Construction Loan Interest 7. 0 Interest paid on construction/rehab loan Loan Origination Fee 8. ` 0 Fee for construction/rehab loan Subtotal Financing Costs 9. TOTAL DEVELOPMENT COST 10 134,627 Sales Price Estimatd Rehabilitated Market Sales Price 75,000 Estimated value of home after rehabilitation Total Development Cost 11. 134,627 Total cost calculated above(No. 10) EDA FINAL SALES PRICE 12 75,000 The lower of market sales price or tot. dev. cost Intermediary Proceeds Property Management Fee 13. 13,592 From No. 1 above General Contractor Fee/O.H. 14. 8,568 From No. 3 above Homebuyer Qualifying Fee 15, 800 From No.4 above Sales Commission Fee 16. 4,500 From No. 5 above Reimbursement Const. Loan Int. 17. - From No. 7 above Reimbursement Loan Orign. Fee 18. - From No. 8 above TOTAL INTERMEDIARY PROCEEDS 19 27,460 Total of 13 through 18 above Exhibit"C" Rehabilitation Scope of Work -13- P\Agendaa\Agent... cbmmsW,< aAtmcF =,\AgmtsAmand 30IM3-15-10�CDw pmM Ag mm.FwO,drc EXHIBIT "C" TO DEVELOPMENT AGREEMENT REHABILITATION SCOPE OF WORK CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY HOUSING AND COMMUNITY DEVELOPMENT DEPARTMENT COST ESTIMATE WORKSHEET Date: January 27, 2010 Time: Location: 1519 W. Virginia Street, San Bernardino, CA 92411 Job Duration: Estimator: 1 TEMPORARY FACILTIES 2 Remove Chain Line Fence 1 EA 180.00 3 EA 4 Other 5 SITE WORK 6 Final Cleaning 150.00 7 Exterior Demolition 8 Grading SF 9 Excavation SF 10 Remove damaged flat concrete in rear yard 1 EA 1,500.00 11 Approach: Remove and Install New SF 12 Sidewalk: Remove and Install New SF 13 Hazardous Waste Remidiation 14 15 New Wrought Iron Fence LF 16 New Chain Link Fence LF 17 New Wood Fence 210 EA 3,150.00 18 Remove/Install Block Wall LF 19 LANDSCAPING 20 Remove and/or Trim Trees 1 EA 700.00 21 Install Sprinkler System 1 EA 1,500.00 22 Hydro Seed Yard } SF 23 Level Front Yard 1 EA 100.00 24 INTERIOR DEMOLITION 25 Repair all damaged and removed Interior 1 EA 1,200.00 Plaster and Drywall 26 Removal of other items 27 HAZARDOUS COMPONENTS ABATEMENT 28 Lead 29 Asbestos 30 Mold 31 Other 32 33 FOUNDATIONS 34 35 Replace soffit, gable and crawlspace screens 1 ALL All line items will be performed according to City of San Bernardino Economic Development Stabilization Program Building Standards 36 Replace and Install New Access Door EA 100.00 37 Construct New Access Well with Door EA 100.00 38 Footings SF 39 Concrete SF 40 FRAMINGIWOOD 41 Studs LF 42 Other LF 43 EXTERIOR 44 Sandblast 1 SY 3,600.00 45 Colorcoat, repair all cracks, holes and } 1 46 damage areas SY 47 Wrap and Stucco SY 48 Insulation SF 49 EXTERIOR WINDOWS 50 Replace all windows with low-e 6 EA 2,040.00 51 Missing Putty EA 52 Install new screens EA 53 Replace broken glass panes EA 54 Remove and Install new aluminum EA 55 Block frame single hung or sliders 56 Replace front security door 1 EA 150.00 57 window EA 58 Aluminum- slider 4'x3'standard frame EA 59 Aluminum -slider 4'x3' block frame EA 60 Aluminum -slider hung 3'x4' standard EA 61 Aluminum -slider hung 3'x4' block EA 62 Aluminum -slider 5'x4' standard frame EA 63 Aluminum -slider 5'x4' block frame EA 64 Aluminum -single hung 3'x5' standard frame EA 65 Aluminum -single hung 3'x5' block EA 66 Aluminum -slider 3'x2' standard EA 67 Aluminum -slider 3'x2' block EA 66 Install vertical blinds on dining, LR & bedrooms 4 EA 300.00 69 EXTERIOR DOORS 70 Garage: Remove and Install ALL 650.00 71 Garage side door,jamg, casing & lockset 1 EA 325.00 72 Entry Door EA 325.00 Replace front door casing 1 EA 73 Replace mail boxt door 1 EA 74 ROOFING 75 Si. Complete tear off roof and sheathing 1 76 Installation of aluminized sheathe 1 77 Install compostion roof to code-30 Yr. 1 5,150.00 78 Replace all facia with new six inch fascia 1 450.00 79 Remove all Install gutter and 80 downspouts LF 180.00 81 INTERIOR CONSTRUCTION All line items will be performed according to City of San Bernardino Economic Development Stabilization Program Building Standards 82 Install R-30 Insulation in attic 1 EA 1,500.00 83 Drywall SF 84 Hollow-core interior door withhinges and 3 EA 465.00 Installation in an existing jamb. Hardboard wood-textured and embossed 85 Repair bedroom closet doors 1 EA 150.00 86 Shower doors EA 87 Tub Enclosure EA 88 Laundry door EA 89 Other EA 90 FLOORING 91 Carpet Allowance 1 SY 1,200.00 92 Ceramic Tile SF 93 Linoleum 1 SY 600.00 94 Hardwood SF 95 Other 96 PAINTING 97 Prep and paint interior complete two coats 1 EA 1,250.00 98 Stains(kitchen, bath and other cabinets) SF 99 Repair all damaged SF 100 Paint exterior wood 1 EA 850.00 101 CARPENTRY, CABINETS AND MILLWORK 102 Remove and Install new cabinets 1 2,850.00 103 Install and Replace Formica Counter tops 1 EA 650.00 104 Repair framing and plaster as necessary 1 Fro 150.00 Repair hall closet doors & cabinets 1 EA 200.00 105 PLUMBING 106 Bathtub&Shower surround 1 EA 480.00 107 Lavatory 1 EA 250.00 108 Kitchen Sink 1 EA 160.00 109 Garbage Disposal 1 EA 80.00 110 Laundry Sink EA 50.00 111 Faucets kitchen, bath &shower 3 EA 350.00 112 Bathtubs EA 113 Tub Wall Kits EA 114 Shower EA 115 Water Heater 1 EA 400.00 116 Roto Root(clean)all drain lines to street ALL 150.00 117 Remove and Install new FA 150.00 118 Anti-syphon hose bibbs } Replace cleanout cover at kitchen exterior 1 EA 50.00 Repair water leak at rear hose bib 1 EA 100.00 119 Interior water supply ball valve with 1 EA 150.00 pressure valve 120 HVAC 121 Install new system lincluding ducts& 1 EA 5,900.00 thermostat 122 Repair duct work LF All line items will be performed according to City of San Bernardino Economic Development Stabilization Program Building Standards 123 Repair HVAC Unit EA 124 Replace HVAC Unit EA 125 Remove wall heater 1 50.00 126 Other 127 ELECTRICAL 128 Remove and Install new light fixture 7 EA 3,700.00 129 Remove and Install new GFCI outlets EA 130 Remove and Install circuit/outlet EA 131 Install new GFCI outlet 3 EA 132 Remove and Install new circuit breaker EA 133 Remove and Install new wiring LF (included with Item#45) 134 Cover Plates EA 50.00 135 Smoke detectors EA 375.00 136 Other 137 138 MISCELLANEOUS 139 Install new medicine cabinet, mirror, towel 1 EA 100.00 140 & paper holders 141 Hood vent&fan, stove, dish washer, garbage 1,500.00 142 disposal and (ironing board cabinet-included in Item#49) 143 (allowance) 1 EA 162 Supervision 3,200.00 163 164 165 166 SUBTOTAL $48,960.00 Insurance Burden (General Liability&Workers Compensation 2.5%) OVERHEAD& PROFIT (15%) $8,568.50 GRAND TOTAL GENERAL CONTRACTOR'S BASE BID $57,528.50 APPROVED OPTIONS 1 Remove Existing tile and Install Slate at Front Porch 650.00 2 Install Rear Yard Sprinklers 1,000.00 3 Repipe with Copper Plumbing 3,600.00 4 Replace Interior Base Moulding 250.00 OPTIONS TOTAL $5,500.00 All line items will be performed according to City of San Bernardino Economic Development Stabilization Program Building Standards Exhibit "D" Project Timeline -14- P.UgmMnstAgen"Atmchm Mgen"A mmtMp� s-Amend 20IM3-15-10� C Development Ag�ment-Fiml dm O O O O O O O O O O O O O O O O O r r r r r r r r r r r r r r r r r O O O O O O O O O O O O O O O O O C 'O C W O O O O O O O O O O O O O O O O O r 0 0 0 0 0 r 0 r r 0 0 0 0 y O O O O 0 O O O O a O O O O O O O a O O ++ N N N N N N N N N N N N N N N N N @ W N ilJ N T m O r O m m N N N M N � N C C •m d co WM N M O M 0 M O O M 2 W a W A Q 0 F— W Z Z W J dLLI U 0 H a W x U W W m w � m D O � o � O � - F a a aE E CL a 0 r w - m c E C N E U N S W a m Q 0 4 0 ° m = w 'o O O O w U U C ) N urOi Q ` = w N N C 0 d C N E N CJ Q a O J O N N N = N V N 0 -p 0 � w Q E U m a o c > > d c to N o m o c m v O a` o `o E E o 0 0 o m c p 'E v m m = S u�i 10 m c 3 a o a c a`� 2 2 `o v � _ .a -• w m w o m > a M d d =9 o a a o c No c m r d E =d 0 M � N) m ELI ol U D U 2 ° aCL,v N 0 � O U N M V LO O 2 Y N t0 f Exhibit"E" Scope of Services 1. Secure Property-Ensure that adequate locked fencing is installed on the perimeter of the site when necessary. Board up windows and outer doorways when necessary in order to prevent looting and vandalism of the Rehabilitated Home. 2. Property Management- Maintain utilities service, pay for monthly utilities bill(s) during the holding period (the Consultant will be reimbursed for this cost), interior and exterior appearance and marketability of the Rehabilitated Home as needed. 3. Approved Budget - The approved budget includes the estimate of the costs the Consultant expects to incur in order to complete the Scope of Work defined herein, provided in Exhibit "B" (the "Total Development Cost Pro Forma"). This budget estimate includes all costs associated with the rehabilitation of the Rehabilitated Home, including labor and materials for rehabilitation work, contingency, the Project Management Fee, the General Contractor Fee/Overhead, the Sales Commission Fee and the Homebuyer Qualifying Fee, includes the cost of enrolling the prospective buyer of the Rehabilitated Home deemed qualified by the Consultant under the conditions in this Agreement (the "Qualified Homebuyer") in a homebuyer education course administered by an AHS approved third party vendor or organization. 4. Project Timeline - The approved estimated timeline provided in Exhibit "D" sets forth the completion of the various steps involved in the acquisition, rehabilitation and resale of the Rehabilitated Home (the "Project Timeline"). The timeline starts from the point that the selected Consultant enters into the contract for the Rehabilitated Home with AHS through the close of sale to the Qualified Homebuyer. Major steps included in the timeline are construction period, completion of construction, issuance of the Certificate of Completion, start of marketing period for the home, projected number of weeks needed to identify a Qualified Homebuyer,escrow period and close of escrow. 5. Rehabilitation Scope of Work-The approved detailed, line item budget of the costs required to complete the rehabilitation scope of work agreed upon by AHS and the Consultant, provided in Exhibit "C" (the "Rehabilitation Scope of Work") serves as the Consultant's price bid for the Rehabilitation Scope of Work. 6. Man: ge Rehabilitation Work - Manage the rehabilitation of the Rehabilitated Home to includ . but not be limited to: (i) ensuring that all tasks identified in the Rehabilitation Scope -15- P'.UgendaeWgr. I .nuhmemsUgeMa AnazM1mansUgmna-Amend 301NW-15-10�CMC Devdopmem Agcemrnt-Fiulda of Work are completed on a timely basis and all work performed satisfies AHS' standards; (ii) conducting weekly on-site project inspections; (iii) managing relationships with all subcontractors and vendors; (iv) obtaining all necessary permits required to complete the Rehabilitation Scope of Work; (v) ensuring that all rehabilitation work complies with all applicable municipal codes; (vi) submitting funds draw requests to AHS in a timely and accurate manner; (vii) paying all sub-contractors hired by the Consultant and all vendors providing materials used in the performance of the Rehabilitation Scope of Work on a timely and accurate basis; and(viii)administering both conditional and unconditional lien releases. 7. Marketing — Market the Rehabilitated Home through advertising and published promotional materials. Adhere to AHS' Affirmative Marketing Guidelines (Please see Exhibit"IC'). 8. Identify Qualified Homebuyer- Identify and present prospective homebuyers to be approved by AHS in writing, facilitate adequate homebuyer training and facilitate financing of property which may include Down Payment Assistance from the Agency, pre-qualify the homebuyer for eligibility to purchase the Rehabilitated Home and collect those application documents from the Qualified Homebuyer identified in Exhibit"I", Section"A". In addition, the Consultant is required to make best efforts to ensure that a fixed rate permanent loan secured by a first trust deed("First Mortgage Loan") is made available to the Qualified Homebuyer at the lowest commercially available rate and most favorable terms. 9. Escrow—Work with the AHS selected title company and manage the escrow process through closing on behalf of the Qualified Homebuyer, ensure that all AHS sale documents are executed, notarized and recorded as needed. 10. Files — Maintain adequate files for the Rehabilitated Home, ensuring compliance with all Neighborhood Stabilization Program requirements, files shall include, but not be limited to, all documents listed in Exhibit "I", and all documents required to verify compliance with the Affirmative Marketing Guidelines stated in Exhibit "K", such as homebuyer waiting lists, copies of advertisements published in local and community newspapers, etc. 11. Appraisal — Work with the AHS designated Appraiser to determine the sales price for the Rehabilitated Home. 12. Environmental - Ensure that all environmental mitigation measures recommended by AHS' Environmental Consultant are carried out as part of the Rehabilitation Scope of Work. Provide proof of completion of these mitigation measures. ade -16- p.UgeMas�geM AnachmentsUgetMa NtechmewWgmus-AmeM"IM-15-10ICAACD elopmem Agreement-Fire &c 13. Closing Requirements: A. The Consultant shall cause the closing of the sale of the Rehabilitated Home by following the procedures and complying with the requirements set forth in Exhibit "P", Section A. B. The Consultant shall cause the closing of any Agency Down Payment Assistance Loans, if applicable, in accordance with the procedures and requirements established in Exhibit"I", Section B. 14. Building Standards: The Consultant shall adhere to the building standards stipulated in Exhibit "Lee when performing any rehabilitation work on the Rehabilitated Home. - 17- P UBendvWgende AucM1memsUgeiMe AttuM1mems\AgmtrAmeM]AIOAI-ISl01ECMC Oevclo0mem ABrament-Fiml doc Exhibit"F" AHS Representatives AHS Officers: Emil A. Marzullo, Chief Executive Officer Carey K.Jenkins, Chief Operating Officer Authorized AHS Representatives: Samuel Hughes, Consultant Fernando S. Portillo, Consultant i i -18- PWgentlasUgenEaAluchm.M,."M.hmmLLlAFmtlsA M10IM3.15-10@CMC Dw1.p A�-Fiped. EXHIBIT "G" Insurance Requirements The Consultant and its General Contractor shall maintain insurance policies issued by an insurance company or companies authorized to do business in the State of California and that maintain during the term of the policy a "General Policyholders Rating" of at least A(v), as set forth in the then most current edition of"Bests Insurance Guide," as follows: (1) Automobile Insurance. Comprehensive automobile liability insurance of not less than One Million Dollars ($1,000,000) combined single limit per occurrence for each vehicle leased or owned by the Consultant or its subcontractors and used in performing work under this Agreement. (2) Worker's Compensation Insurance. Worker's compensation coverage in accordance with California workers' compensation laws for all workers under the Consultant's and/or subcontractor's employment performing work under this Agreement. (3) Liability Insurance. AHS requires comprehensive liability insurance, including coverage for personal injury, death,property damage and contractual liability, with a limit of at least One Million Dollars ($1,000,000), including products and completed operations coverage. Said insurance shall be primary insurance with respect to AHS and the Agency. The Consultant shall require and ensure that the Consultant's contractors include AHS and the Agency, as additional insureds on all general liability insurance covering work at the Rehabilitated Home. All insurance policies required of the Consultant or its contractors as provided herein, shall extend the subject insurance coverage to: "The City of San Bernardino, the Redevelopment Agency of the City of San Bernardino and Affordable Housing Solutions of San Bernardino, Inc., their officers officials, attorneys, agents, employees and volunteers" In lieu of directly obtaining the insurance coverage mentioned in this Exhibit"G", the Consultant can require its General Contractor to name the Consultant as an additional insured on the insurance policies obtained by the General Contractor for the purposes of satisfying the insurance requirements herein. Concurrent with the execution of this Agreement and prior to the commencement of any work by the Consultant, the Consultant shall deliver to AHS, copies of policies or certificates evidencing the existence of the insurance coverage required herein, which coverage shall remain in full force and effect continuously throughout the term of this Agreement. Each policy of insurance that the Consultant purchases in satisfaction of the insurance requirements of this Agreement shall name AHS, the Agency and if applicable, the Consultant as an additional insured and shall provide that the policy may not be -19- P.Upe \Agm a AuUhm<nm\ApMa AttnhmemMge ft- 3010\03-15-10�MCD v C proem A�CM-FiW da cancelled, terminated or modified, except upon thirty (30) days prior written notice to AHS. Failure on the part of the Consultant to procure or maintain the insurance coverage required in this Exhibit LeG" for fifteen (15) days or longer shall constitute a material breach of this Agreement pursuant to which AHS may exercise all rights and remedies set forth herein and, at its sole discretion, and without waiving such default or limiting the rights or remedies of AHS, procure or renew such insurance and pay any and all premiums in connection therewith and all monies so paid by AHS shall be reimbursed by the Consultant to AHS upon demand including interest thereon at the rate of ten percent (10%) per annum interest compounded annually from the date paid by AHS to the date reimbursed by the Consultant. The Agency shall have the right, at its election,to participate in and control any insurance claim adjustment or dispute with the insurance carrier. The Consultant's failure to assert or delay in asserting any claim shall not diminish or impair the rights of AHS against the Consultant or the insurance carrier. -20- P.NgendasVApendaMtt bmentsUg"aAbmmnsUgmts-A 20IM3.15-10MCAACDeveWmem Agreement-FiWdo Exhibit"H" Consultant Payment and Reimbursement The Consultant shall be paid four (4) different fees by AHS. The four (4) fees that the Consultant is eligible to receive are: 1. Project Management Fee; 2. General Contractor Fee/Overhead; 3. Homebuyer Qualifying Fee; and 4. Sales Commission Fee. The amount of the fees to be paid to the Consultant by AHS for completing the Scope of Services detailed in Exhibit `B" is recorded in the Development Pro Forma attached as Exhibit"B"to this Agreement. The costs contained in the Development Pro Forma serve as the budget for the project, and the Consultant will be required to complete the work in accordance with that budget. This budget must be approved by AHS Representative(s) prior to the start of any rehabilitation work by the Consultant. Project Management Fee-The Project Management Fee is the compensation received by the Consultant for securing, maintaining and marketing the property. Some of the tasks that might be included under this function are such things as, fencing the property, mowing the lawn, clearing debris from the lawn, removal of graffiti, etc. The Project Management Fee may also include any marketing costs incurred by the Consultant, such as online or print advertising and website design, as approved by AHS. The Consultant is eligible to receive fifty percent (50%) of this fee upon commencement of the Rehabilitation Scope of Work, to be invoiced by the Consultant in the first funds draw request submitted by the Consultant to AHS. The remaining portion of this fee shall be payable to the Consultant after the rehabilitation work is completed, as evidenced by an AHS issued Certificate of Completion or a City issued Certificate of Occupancy, as applicable. The remaining portion of this fee shall be paid to the Consultant upon the close of the Rehabilitation Home Sales Escrow. General Contractor Fee/Overhead - The General Contractor Fee/Overhead is the total amount paid by AHS for management of the rehabilitation work as defined in Exhibit "E", Section 6. If the Consultant hires a General Contractor, then the Consultant is responsible for negotiating a fee structure with its hired General Contractor, but in no event, will AHS pay an amount above the General Contractor Fee/Overhead stated in this Agreement, nor will AHS pay a separate General Contractor Fee/Overhead to the General Contractor. The amount of this fee is a fixed fee for the rehabilitation work. The costs of the rehabilitation work shall include direct labor and materials involved in the performance of the Rehabilitation Scope of Work plus the budgeted contingency for this work. A portion of this fee commensurate with the percentage of completion of the Rehabilitation Scope of Work shall be paid with each funds draw request submitted by -21- P\Agendas 4en"A memsUge Anmhmmts\A mt mmd 20IM3-15-10 MCMC Development Agsmmmt-Finel.dm the Consultant. Any additional costs arising from unexpected conditions on the site or other unexpected difficulties must be written up as a change order and AHS Representative(s) must sign and approve the change order at the discretion of the AHS Representative(s) in order for these costs to be included as part of the overall rehabilitation costs, which would then increase the absolute amount of the General Contractor Fee/Overhead. Homebuyer Qualifying Fee — This fee is paid to the Consultant for identifying and assisting AHS in qualifying the prospective homebuyer for the sale of the Rehabilitated Home. This is a one-time fixed fee. This fee will include the Consultant's reimbursement for any costs associated with the prospective homebuyer's "Homebuyer Education Training"and payments to third party service providers, such as Neighborhood Housing Services of the Inland Empire ("NHSIE"), or another such service provider. The Homebuyer Qualifying Fee shall be paid upon the close of the Rehabilitated Home Sales Escrow. Sales Commission Fee — The sales Commission Fee represents the payment received by the Consultant for managing the Rehabilitated Home Sale Escrow process on behalf of AHS to assist the Qualified Homebuyer through the Rehabilitated Home Sales Escrow process. The amount of this fee is calculated as a fixed percentage of the final sales price to the Qualified Homebuyer. The Sales Commission Fee shall be paid upon the close of the Rehabilitated Home Sales Escrow. -22- P41gen1aa VnEa Ana<bmetO\ cMa A=h=nu\Ag -MeM 3 111 010 1-Ii10@C Clk WM .grt nt-Fi ]dac Exhibit"I" Closing Requirements A. Sale of Rehabilitated Properties The Consultant shall initiate the sale of a Rehabilitated Property to a Qualified Homebuyer by submitting to the Agency a purchase/sale agreement executed by the prospective homebuyer, verifying documentation from the prospective buyer with respect to residency, income and the property condition as the Agency, or its designee, may reasonably request (collectively, "Homebuyer Application'). [NOTE: NSP regulations limit the income on NSP funded properties. The Agency should be involved in the negotiation of sales documents of the properties.] The Homebuyer Application shall consist of the following information in the form provided or approved by the Agency: i. Last Three (3) Years Tax Returns (State and Federal) (1040's) signed with W2's attached. Two (2) Current Pay Stubs for all household members who will reside in the home. ii. A California Association of Realtors California Residential Purchase Agreement fully executed by the prospective homebuyer (With Agency Addendum(s) attached). iii. Neighborhood Stabilization Program Homebuyer Application. iv. Income Certification. V. Application Affidavit—Completely filled out and signed by the prospective homebuyer. vi. Signed Lead-Base Paint Disclosure Form (for homes built prior to 1978). The Agency does not supply this form. vii. Copy of Employment Verification for each Homebuyer. viii. 2 Months of Current Bank Statements. ix. 3-Year Rental History. X. Homebuyer Education Certificate from NHSIE or another like service provider. Within seven (7) calendar days after the receipt of the Homebuyer Application by the Agency, Agency Staff will notify the Consultant of approval or denial of the prospective homebuyer's eligibility and confirmation of such eligibility by means of a Reservation -23- P:\A,M A,e AnuhmenlM,g A�\Aglmt ..d 30IM3-15-10 PCMCI3crdopment Agr .e nl-Fi.[drc Letter (all reservations will be automatically valid for sixty (60) calendar days from the date of confirmation) [NOTE: The Agency should execute the sales agreement]. Upon notification by Agency Staff of the prospective homebuyer's eligibility, the Consultant shall open an Escrow account with an Agency approved escrow company (the "Escrow Holder"). The Agency shall famish the Escrow Holder with executed escrow instructions. The Consultant shall not permit any Escrow to close for the sale of a Rehabilitated Property until and unless the escrows instructions executed by the Agency (and countersigned, if requested by Agency Staff, by the First Trust Deed Lender) have been submitted to the Escrow Holder. As provided in the Agency escrow instructions, Escrow shall also not close unless and until: 1. The Escrow Holder holds the following documents : (1)Agency Notice of Affordability Restrictions executed by the Qualified Homebuyer and notarized; and (2) a grant deed with respect to the Rehabilitated Property purchased by the Qualified Homebuyer, executed and acknowledged by the selling entity; and 2. Proof of hazardous insurance for the full replacement cost of the Rehabilitated Property is provided to the Agency naming the Agency as additionally insured; and 3. Rehabilitation of the Rehabilitated Property shall have been completed in accordance with this Agreement and with all applicable City permits and ordinances, and the City shall have issued a final certificate of occupancy for the Rehabilitated Property; and 4. The Consultant's execution and delivery to the Agency of the Sub- agreement. hall exist under this Agreement or under an agreement or No Event of Defaults gr y gr instrument relating to any financing for the Project or the Rehabilitated Property. Within seven (7) calendar days after the receipt of the Homebuyer Application by AHS, the AHS Representative(s) will notify the Consultant of approval or denial of the prospective homebuyer's eligibility and confirmation of such eligibility by means of a Reservation Letter (all reservations will be automatically valid for sixty (60) calendar days from the date of confirmation) [NOTE: AHS should execute the sales agreement]. Upon notification by the AHS Representative(s) of the prospective homebuyer's eligibility, the Consultant shall open the Rehabilitation Home Sales Escrow account with an AHS approved escrow company (the "Escrow Holder"). AHS shall furnish the Escrow Holder with executed escrow instructions. The Consultant shall not permit the Rehabilitation Home Sales Escrow to close until and unless the escrow instructions executed by AHS (and countersigned, if requested by AHS Representative(s), by the First Trust Deed Lender) have been submitted to the Escrow Holder. As provided in the AHS escrow instructions,Escrow shall also not close unless and until: -24- PUge sWgeode M=i eMs\Apn aA hmm \Ag trAmerd 20IM-I5-10� CD IoPmcm Ag mcm-Fulda 1. The Escrow Holder holds the following documents : (1)Agency Notice of Affordability executed by the Qualified Homebuyer; and (2) a grant deed with respect to the Rehabilitated Home, executed and acknowledged by the selling entity(the "AHS Grant Deed"); and 2. Proof of hazardous insurance for the full replacement cost of the Rehabilitated Home is provided to AHS naming AHS and the Agency as additionally insured; and 3. The Rehabilitation Scope of Work shall have been completed in accordance with this Agreement and with all applicable City permits and ordinances, and AHS shall have issued a Certificate of Completion or the City shall have issued a Certificate of Occupancy for the Rehabilitated Home, as applicable; and No Event of Default shall exist under this Agreement or under any agreement or instrument relating to any financing for the Rehabilitated Home. B. Down Payment Assistance In the case where the Qualified Homebuyer needs down payment assistance to facilitate the purchase of the Rehabilitated Home, the Consultant shall assist the Qualified Homebuyer in applying for such assistance from the Redevelopment Agency of the City of San Bernardino's ("Agency") Homebuyer Assistance Program ("HAP"), at the Qualified Homebuyer's election. The requirements and the application process for obtaining such assistance are described fully in the Agency's HAP Program Manual, which can be obtained at the Agency's offices. The process for applying for such assistance is summarized below, but in the event that a conflict exists between the description of the HAP Program contained herein and the HAP Program Manual, the requirements and procedures described in the HAP Program Manual shall prevail. In order to reserve Agency Down Payment Assistance Loan assistance to facilitate the purchase of the Rehabilitated Home, the Consultant must include in the Homebuyer Application described in Section A, herein, the following information in the form provided or approved by AHS and the Agency: i. Verification for Applicant Eligibility, completely filled out and signed by the prospective homebuyer and the First Trust Deed Lender; ii. Copy of Credit Report. If the prospective homebuyer lacks credit history or scores are lower than 640, please provide secondary credit such as a landlord letter or utility statements; and iii. Agency Down Payment Assistance Loan Worksheet. 25 PMpndu\AgeM Awc6mm PV.S d MtrM1 s�2010W3-1S10IEC CDm pm A®xmen-Fiwl.w The obligation of the Agency to fund each Agency Down Payment Assistance Loan shall be subject to satisfaction of all of the conditions stated in Section A, herein, together with the following conditions (collectively,the"Closing Conditions"): (a) The Escrow Holder holds the following documents: 1) the Qualified Homebuyer Agency Down Payment Assistance Loan Agreement executed by the Qualified Homebuyer and the Agency; (2) the Agency Promissory Note executed by the Qualified Homebuyer in favor of the Agency in the same amount as the Agency Down Payment Assistance Loan; and (3) the Agency Subordinate Deed of Trust and Assignment of Rents acknowledged and executed by the Qualified Homebuyer in favor of the Agency; and (b) Any one of the following title companies whether(i) First American Title, (ii) North American Title, (iii) Chicago Title, (iv) Stewart Title or (v) another title insurer approved by the Agency ("Title Company") shall have assured the Agency in writing that with respect to each Agency Down Payment Assistance Loan, the Agency shall receive upon recordation of the Agency Subordinate Deed of Trust and Assignment of Rents a CLTA lenders policy of title insurance in the amount of the Agency Down Payment Assistance Loan Note (the "Agency Title Policy") insuring the priority of the Agency Subordinate Deed of Trust and Assignment of Rents, subject only to the First Mortgage Loan and other exceptions approved by the Agency following the Agency's prior review of a preliminary title report for the Rehabilitated Home, which preliminary title report must be received by the Agency no later than seven (7) calendar days after the approval by the Agency of the Homebuyer Application; and (d) The Agency shall have reviewed and approved the Qualified Homebuyer for the Agency Down Payment Assistance Loan in the Agency's sole discretion, and the eligibility conditions in the applicable sections of the HAP Manual shall have been satisfied. In accordance with the Neighborhood Stabilization Program, the Rehabilitated Home is not restricted for sale to first-time homebuyers; therefore, these properties are exempt from the requirements in Section II. B. 1. of the HAP Manual; and (e) No stop notice or mechanics' lien shall have been filed against the Rehabilitated Home unless discharged as provided by law. -26- P:Agendas Agenda Allach—WaAgcMa AIIacWncnlsUgnas-Amend 301=3-15-10IECMC Ocvftp Agrsmenl-Final.doe i EXHIBIT"J" Events of Default and Remedies A. Events of Default The occurrence of any of the following shall, after the giving of any notice described therein, constitute a default by the Consultant hereunder("Event of Defaulf): (1) The failure of the Consultant to pay or perform any monetary covenant or obligation under the Agreement or any of the documents executed in connection herewith, without curing such failure within ten (10) calendar days after receipt of written notice of such default from AHS (or from any party authorized by AHS to deliver such notice as identified by AHS in writing to the Consultant); (2) The failure of the Consultant to perform any non-monetary covenant or obligation hereunder or any of the documents executed in connection herewith that results in a material adverse effect to AHS, without curing such failure within thirty (30) calendar days after receipt of written notice of such default from AHS (or from any party authorized by AHS to deliver such notice as identified by AHS in writing to the Consultant) specifying the nature of the event or deficiency giving rise to the default and the action required to cure such deficiency; provided, however, that if any default with respect to a non-monetary obligation is such that it cannot be cured within a thirty-day period, it shall be deemed cured if the Consultant commences the cure within said thirty-day period and diligently prosecutes such cure to completion thereafter. Notwithstanding anything herein to the contrary,the herein described notice requirements and cure periods shall not apply to any Event of Default described in Sections (3)through (6)below; (3) The falsity of any representation or breach of any warranty or covenant made by the Consultant under the terms of this Agreement or any documents executed in connection herewith; (4) The Consultant or any constituent member or partner, or majority shareholder, of the Consultant shall (a) apply for or consent to the appointment of a receiver, trustee, liquidator or custodian or the like of its property, (b) fail to pay or admit in writing its inability to pay its debts generally as they become due, (c) make a general assignment for the benefit of creditors, (d) be adjudicated a bankrupt or insolvent or (e) commence a voluntary case under the Federal bankruptcy laws of the United States of America or file a voluntary petition that is not withdrawn within ten (10) calendar days after the filing thereof or an answer seeking an arrangement with creditors or an order for relief or seeking to take advantage of any insolvency law or file an answer admitting the material allegations of a petition filed against it in any bankruptcy or insolvency proceeding; -27- P43pe s\Age &Aslechments\AeMa Atlnhmems\Agrmtv-AmeM ZOM34I 10 MCAACll elopment Agmemem-FiM,dm (5) If without the application, approval or consent of the Consultant, a proceeding shall be instituted in any court of competent jurisdiction, under any law relating to bankruptcy, in respect of the Consultant or any constituent member or partner, or majority shareholder, of the Consultant, for an order for relief or an adjudication in bankruptcy, a composition or arrangement with creditors, a readjustment of debts, the appointment of a trustee, receiver, liquidator or custodian or the like of the Consultant or of all or any substantial part of the Consultant's assets, or other like relief in respect thereof under any bankruptcy or insolvency law, and, if such proceeding is being contested by the Consultant, in good faith, the same shall (a) result in the entry of an order for relief or any such adjudication or appointment, or (b) continue undismissed, or pending and unstayed, for any period of ninety(90)consecutive calendar days; (6) Voluntary cessation of the construction activities, active property management, or marketing activities related to the Rehabilitated Home for a continuous period of more than ten (10) calendar days or the involuntary cessation of the above named activities in accordance with this Agreement for a continuous period of more than thirty (30)calendar days; (7) A mechanic's lien or any other type of encumbrance on AHS' property resulting from the Consultant's failure to fulfill its financial or other contractual obligations with respect to any of its vendors or subcontractors is not removed within ten (10) calendar days after receipt of written notice of such default from AHS (or from any party authorized by AHS to deliver such notice as identified by AHS in writing to the Consultant). B. AHS Remedies: Upon the occurrence of an Event of Default hereunder, AHS may, in its sole discretion, take any one or more of the following actions: (1) Withhold any payment of fees or reimbursement of eligible expenses to the Consultant unless and until the Event of Default (if curable) is cured or this Agreement is terminated in accordance with Section 9 of this Agreement; (2) Demand reimbursement from the Consultant for any payments made to it by AHS for which the contracted work product was not satisfactorily delivered by the Consultant; (3) Confiscate any material or other work product purchased or produced by the Consultant during the course of completing the Scope of Work indicated in this Agreement; (4) Take any and all actions and do any and all things which are allowed, permitted or provided by law, in equity or by statute, in the sole discretion of AHS, to enforce performance and observance of any obligation, agreement or covenant of the Consultant under this Agreement or under any other document executed in .2g_ P\AWndastAgenda Aft=metsUgende A mhmems\AVmn-Amend MIM-15-10� CDe.eb nt Agreement-F1.0 do connection herewith; (5) Upon the occurrence of an Event of Default which is occasioned by the Consultant's failure under this Agreement to pay money, AHS may, but shall not be obligated to, make such payment. If such payment is made by AHS, the Consultant shall deposit with AHS, upon written demand therefore, such sum plus interest at the rate of ten percent (10%)per annum with interest to be compounded annually. In either case, the Event of Default with respect to which any such payment has been made by AHS shall not be deemed cured until such repayment (as the case may be) has been made by the Consultant; (6) Upon the occurrence of an Event of Default described in Section A.(4) or A.(5) hereof, AHS shall be entitled and empowered by intervention in such proceedings or otherwise to file and prove a claim for any amount owing to AHS under this Agreement and unpaid and, in the case of commencement of any judicial proceedings, to file such proof of claim and other papers or documents as may be necessary or advisable in the judgment of AHS and its counsel to protect the interests of AHS and to collect and receive any monies or other property in satisfaction of its claim. C. AHS Default and Consultant Remedies: Upon fault or failure of AHS to meet any of its obligations under this Agreement without curing such failure within thirty (30) calendar days after receipt of written notice of such failure from the Consultant specifying the nature of the event or deficiency giving rise to the default and the action required to cure such deficiency,the Consultant may, as its sole and exclusive remedies: (1) Bring an action in equitable relief seeking the specific performance by AHS of the terms and conditions of this Agreement or seeking to enjoin any act by AHS which is prohibited hereunder; and/or (2) Bring an action for declaratory relief seeking judicial determination of the meaning of any provision of this Agreement. Without limiting the generality of the foregoing, the Consultant shall in no event be entitled to, and hereby waives, any right to seek indirect or consequential damages of any kind or nature from the Consultant arising out of or in connection with this Agreement, and in connection with such waiver the Consultant is familiar with and hereby waives the provisions of Section 1542 of the California Civil Code which provides as follows: "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR." -29- PUgetMaUpniaAtl nienWkpnde 20IOt03-15-10@f:AAC Developnmt Agreement-Final doc EXHIBIT"K" Affirmative Marketing Requirements In accordance with the California Fair Employment and Housing Act, the Consultant acting as agent for AHS, the owner and seller of the Rehabilitated Home, in marketing the sale of the Rehabilitated Home, must adhere to the following affirmative marketing guidelines in order to create awareness for the general public and certain community groups as to the availability of residential properties designated for lower- and/or moderate-income households. 1. Provide an affirmative marketing plan and procedures for the sale of the Rehabilitated Home. Procedures to be used must identify how persons in the housing market area who are not likely to apply for the housing without special outreach shall be informed and made aware of available affordable housing opportunities. 2. The Consultant's Affirmative Marketing Plan shall consist of a written marketing strategy designed to provide information and to attract eligible persons in the housing market area to the Rehabilitated Home without regard to race, color, national origin, sex, religion, marital and familial status, disability, medical condition, sexual orientation, or ancestry. It shall describe initial advertising, outreach (community contacts) and other marketing activities, which will inform potential buyers of the availability of the Rehabilitated Home. It shall also outline an outreach program which includes special measures designed to attract those groups identified as least likely to apply without special outreach efforts (because of existing neighborhood racial or ethnic patterns, location of housing or other factors) and other efforts designed to attract persons from the total eligible population. 3. Insert Equal Housing Opportunity logotype, statement or slogan on all written outreach tools (i.e., signs, advertisements, brochures, direct mail solicitations, press releases, etc.) 4. In addition to the above, the Affirmative Fair Housing Marketing Plan shall outline: a. Commercial Media to be used (i.e., community newspapers and non-English language newspapers, radio, television, billboards, religious or local real estate publications, etc.). b. Marketing efforts to be used (i.e., brochures, letters, handouts, direct mail, signs, etc.) c. Community contacts to supplement formal communications media for the purpose of soliciting those groups least likely to purchase the available housing without special outreach efforts. They should be individuals or organizations (i.e., service agencies, community organizations, places of worship, etc.) that -30- P:UgeMUI Sg AYSMrMa\Age &AtivA skAVmg A=M 3010Ag-15101 CD bpi Agrt a.FioJA have direct and frequent contact with those identified as least likely to apply. The contacts should also be chosen on the basis of their positions of influence within the general community and the particular target group. AHS and its designees must agree to establish and maintain contact with the identified contacts. 5. The Consultant shall maintain records of all prospective homebuyer applicants, including their race, ethnicity and gender, reasons for denial of application, placement on a waiting list, etc. 6. The Consultant shall also provide for the selection of applicants from a written waiting list in the chronological order of their application, insofar as is practicable, and provide prompt written notification to any rejected applicants of the grounds for any rejection. 7. The Consultant shall apply for first trust deed financing to be applied towards the purchase of the Rehabilitated Home from a lender listed on the Agency's or AHS' Approved Lender List. -31- P:UgervWUgenEe AiucM1nsnu�AgeMa AiucM1men�eUgmtrAVwM MI=34 10 IECAAC Dewbpmuiu A,..n-Fiml&. EXHIBIT"L° Building Requirements 3. P UgentlasUgenda MacM1menhWgentla MacM1men�sUgemtaAmeM 2010`ID-IS-104 sAC Develapmem Agemwnt-Firel.tloc r...ta CI n X-115, �. MR DurildiwU1110 ECONOMIC DEVELOPMENT AGENCY Neighborhood Stabilization Program "Minimum Building Standards" June 2009 Table of Contents 1000—General Requirement s...................................................................................................................... 1 1010—General............................................................................................................................................l 1020-Terminology....................................................................................................................................1 1030-General Quality Requirements.....................................................................................................I 1040-Substitutions/Alternatives............................................................................................................2 1050-Optional Green Building Practices..............................................................................................3 1100-Temporary Facilities and Temporary Controls..............................................................................3 1110—Site Usage......................................................................................................................................3 1200-Project Closeout.................................................................................................................................4 1210—Final Cleaning................................................................................................................................4 1220—Operations Manuals and Warranties..........................................................................................5 1230—Systems Startup............................................................................................................................5 2000-Building Sitework/Site Preparation................................................................................................5 2010-Site Clearing and Demolition........................................................................................................5 2020-Site Earthwork................................................................................................................................5 2040—Site Hazardous Waste Remedlatlon...........................................................................................6 2100-Site Improvements.............................................................................................................................6 2110—Roadways, Driveways,and Walkways.......................................................................................6 2160—Fencing...........................................................................................................................................7 2150-Landscaping...................................................................................................................................8 2200 Site Civil/SRO Utilities.........................................................................................................................8 2210-Utilities.............................................................................................................................................8 3100-Selective Demolition..........................................................................................................................8 3110-Building Elements Demolition......................................................................................................8 3120-Hazardous Components Abatement..........................................................................................10 4000-Foundations.......................................................................................................................................10 4010-Standard Foundations..................................................................................................................10 4030-Slabs on Grade..............................................................................................................................11 5000-Superstructure...................................................................................................................................11 5010—Framing/Wood............................................................................................................................ti i i 6100-Exterior Enclosure............................................................................................................................12 5110-Exterior Walls.................................................................................................................................12 5111 -Stucco/Plaster.........................................................................................................................12 5112-Exterior Insulation....................................................................................................................12 5113-Caulking and Joint Sealants...................................................................................................13 5120-Exterior Windows..........................................................................................................................13 5130-Exterior Doors/Garage Doors....................................................................................................14 5140-Flashing...........................................................................................................................................16 5200-Roofing ..............................................................................................................................................16 5210 -Roof Coverings..............................................................................................................................16 5220-Gutters and Downspouts............................................................................................................16 6000-Interior Construction ........................................................................................................................17 6010-Partitions I Ceilings......................................................................................................................17 6011 -Interior Insulation.....................................................................................................................17 6012-Drywall........................................................................................................................................17 6020-Interior Doors.................................................................................................................................18 7000 -Finishes..............................................................................................................................................18 7010-Ceramic Tile..................................................................................................................................18 7020-Floor Finishes................................................................................................................................19 7030-Ceiling Finishes.............................................................................................................................20 7040-Painting...........................................................................................................................................20 8100-Fumishings.......................................................................................................................................24 8110-Carpentry,Cabinets,and Millwork.............................................................................................24 9000-Plumbing, Mechanical,Electrical...................................................................................................25 9010-Plumbing Fixtures.........................................................................................................................25 9020 .Domestic Water Distribution.......................................................................................................26 9030 -Sanitary Waste...............................................................................................................................26 9100-Heating,Ventilating,and Air Conditioning(HVAC)......................................................................27 9110-Heating and Ventilating...............................................................................................................27 9200-Fire Protection Systems..................................................................................................................28 9210-Fire Protection Specialties..........................................................................................................28 9300-Electrical Systems.............................................................................................................................28 9310-Electrical Service and Distribution.............................................................................................28 City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 1 of 28 1000 —General Requirements 1010 —General .1. These Minimum Building Standards (Standards) have been developed by the City of San Bernardino Economic Development Agency (EDA) for use on the Neighborhood Stabilization Program (NSP). .2. These Standards shall apply to all properties covered by the NSP. .3. All materials, supplies, costs of permits, and labor to complete the specified rehabilitation or repairs, shall be the responsibility of the Builder/Developer unless specified otherwise by the EDA. .4. Any drawings or sketches which may be furnished by the EDA or required by the Builder/Developer are intended to clarify or further describe the propert. Should the Builder/Developer find discrepancies in, or omissions from, these drawings or sketches or should he/she be in doubt as to their meaning, they should contact the EDA for clarification. Because of the nature of work being done, some details of sketches or drawings may be "typical" and grades, dimensions and exact existing conditions must be verified at the property before commencing work. .5. Any additional work that EDA want the Builder/Developer to do should be done after completion of the Rehabilitation work, if at all possible. A separate contract will be signed between the EDA and Builder/Developer before the work is to start. 1020 -Terminology .1. When used in these Standards, the following definitions shall apply: A. Install -The item referred to shall be installed with all necessary hardware, trim, fittings, and material necessary to make ready for use. All material shall be new. B. Replace-The existing item referred to shall be removed prior to installation of the new item. C. Trim -When used in conjunction with painting, includes roof vents and pipes, eaves, molding, casing, underside of all doors, and any items other than walls and ceilings. D. Rehabilitation -All repairs to or replacement of present elements of an existing building, such as windows, stairs, flooring, or wiring; rearrangement of rooms by the relocation of partitions or by the installation of new bathrooms and kitchens; or the general replacement of the interior of a building. This may or may not include changes to structural elements such as floor systems, columns or load bearing interior or exterior walls. 1030 -General Quality Requirements .1. In order to establish standards of quality, the Standards may refer to certain products by name and/or catalog number. This procedure is not to be construed as eliminating from competition other products of equal or better quality by other manufacturers, at approximately the same cost. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 2 of 28 .2. All material and each part or detail of the work shall be subject at all times to inspection by the EDA, and the Builder/Developer will hold to the true intent of the Standards in regard to-quality of material, workmanship, and the diligent execution of the contract. .3. Materials installed shall be of such kind and quality to ensure that the dwelling will provide acceptable durability, economy of maintenance and adequate resistance to weather, moisture, corrosion and fire. The EDA may request evidence of a material's compliance with the requirements of the structure's plans and specifications and these Standards. Product labels are considered acceptable evidence. A. The EDA may require that the BuildedDeveloper carry out a durability evaluation or conduct a building assessment to determine if the materials to be used comply with any green strategies. .4. All work shall be executed by skilled craftsman, experienced in their trade, and in accordance with accepted practices of their trade. All work shall be of the highest standards and methods. .5. Unless specifically noted otherwise, all construction methods and materials used shall conform to the California Building Code as adopted by the City of San Bernardino and shall be done in accordance with any other ordinances passed and adopted by the City of San Bernardino (i.e., zoning codes, fire codes, etc.). This includes all repairs, finishes, fixtures, and new work. .6. All plumbing and gas work shall be done in accordance with the Uniform Plumbing Code as adopted by the City of San Bernardino. .7. All heating and cooling work shall be done in accordance with the Uniform Mechanical Code as adopted by the City of San Bernardino. .8. All electrical work shall be done in accordance with the national Electric Code as adopted by the City of San Bernardino. .9. Where work involves colors, the Builder/Developer will provide the EDA with samples of all colors for the particular item (roofing, stucco, paint, stain, flooring, etc.), and the EDA will select the color and finish by initialing the color sample and state for what/where it will be used (exterior, interior, fascia, soffit, trim, doors, ceiling,walls, etc.). A maximum of three colors each may be selected for exterior and interior. .10. If the EDA has agreed to correct certain specified existing code violations, which are to be excluded from the work done by the Builder/Developer, the work on such violations, if done at the same time the Builder/Developer is on the job, shall be coordinated by the EDA and Builder/Developer so as to provide for a smooth flow of the work. 1040 -Substitutions/Alternatives .1. The Builder/Developer shall furnish a list of any proposed desired substitutiors prior to the signing of the contract. .2. These standards are intended to encourage the use of new or innovative technologies, methods and materials. Alternatives and non-conventional or innovative methods�id materials shall be equivalent to these standards in the dreas of quality, durability, economy of maintenance, operation and usability. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 3 of 28 .3. Certain conditions in the geographic area or on the site may justify modification of specific standards, or make compliance with the standards impracticable or impossible. In these cases, approval by the EDA is required. 1050- Optional Green Building Practices .1. Builder/Developers are encouraged to incorporate any green building practice that offers an opportunity to create environmentally sound and resource-efficient buildings. .2. In an effort to encourage modern, green building, and energy-efficiency improvements, Builder/Developers are encouraged to incorporate HUD's healthy homes interventions including these seven steps ensuring housing is made and kept. A. Dry. Ensure proper drainage away from housing; clean repair gutters and downspouts, repair leaks seal roofs and windows. S. Safe: Install safety devices on doors, cabinets, window blinds and outlets; provide adequate storage for all poisonous items out of reach of children and labeled in the proper containers; install smoke detectors and carbon monoxide detectors, have appropriate fire extinguishers available. C Well-ventilated Service and maintain heating and cooling systems:provide exhaust fans for kitchens, bathroom and dryers to the outside to reduce mold; change furnace filters. D. Pest-free: Provide proper storage and disposal for food products, caulk and seat holes, use least toxic pest management methods. E. Contaminant-free: Remove lead based paint hazards properly,provide test kits for radon; reduce volatile organic compounds in paint, carpet, etc. F. Clean Install dust walk-off systems in entry ways,provide smooth, cleanable surfaces;provide effective storage space and containers; choose flooring that is easy to clean. G. Well-maintained. Important maintenance calendar for inspecting, cleaning, repairing, replacing housing components/systems. .3 Throughout these Standards: the EDA has inserted opportunities in which green building practices can be achieved 1100 -Temporary Facilities and Temporary Controls 1110—Site Usage .1. All temporary facilities and controls required for the project shall be provided by the Builder/Developer. .2. The Builder/Developer will provide daily clean-up of all debris related to the work of the project as required. Provide a dumpster on site for the duration of construction for disposal of construction debris. All work area(s) shall be left broom clean at the end of each work day. .3. Immediately, at the end of the work, the Builder/Developer shall remove all of their debris, rubbish, refuse, and unused material from the property and street. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 4 of 28 .4. The Builder/Developer will provide all temporary 6-foot high chain link safety and security fencing for construction operations required for the work of this project. Fencing shall conform to the following specifications: A. 6-foot high chain link fence with 80% or greater green or black wind screen/mesh. B. Mesh shall be attached with hog rings. C. Includes man and vehicle gates where required. D. Gateposts shall be of size to accommodate the size of opening and its intended purpose. E. All gateposts shall be cored or driven into the ground. F. Core holes shall be filled with concrete once temporary fence is removed. Slurry seal all in A/C areas. G. Fencing shall be set back beyond site work improvements. .5. On-site materials pertaining to the project and partially completed roofs shall be temporarily protected during inclement weather. It is the responsibility of the Builder/Developer to maintain a watertight condition to prevent any water damage to the building once the roof has been removed until it has been completely patched. .6. The Builder/Developer shall provide temporary power as needed for the project. .7. Provide and maintain dust and erosion control throughout the duration of the work and as required for the work of the project. .8. The Builder/Developer shall provide protection, acceptable to the EDA, for any existing surfaces or equipment that have been selected to remain. .9. GREEN OPPORTUNITY: Minimize the site disturbance during construction A. Control the impact area by designating vehicle parking farther from the site. B. Store building materials inside a garage or protected area. C. Protect all existing trees with fencing to include the drip line in an effort to avoid over compaction of the soil around the trees. 1200 - Project Closeout 1210— Final Cleaning .1. Prior to the final inspection, the Builder/Developer will provide final clean-up of the building and property. .2. Remove all plaster and paint smears and drops; clean all windows, screens, doors, finished hardware and plumbing fixtures; polish all chrome, clean and polish all countertops and Floor covering; throughout entire house - new and/or old. Provide cleaning of all exterior surfaces including walls,windows, landscape areas, driveways, and walkways. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 5 of 28 1220 —Operations Manuals and Warranties .1. The Builder/Developer will obtain and fill in all necessary information on all warranties where applicable, for manufactured products, materials and/or labor used in connection with the project. He/she shall deliver the original warranties to the EDA where appropriate copies will be made and the original will be delivered to the EDA upon completion of the work. Any sections that need to be sent to the manufacturer to validate the warranty, will be mailed as soon as possible. .2. GREEN OPPORTUNITY.. Provide operation and maintenance manuals, and perform training of users to properly instruct them on the green features of the property and how to maintain them. 1230 — Systems Startup .1. Prior to turnover of building, Builder/Developer will conduct testing and startup of all equipment new and/or old for verification of functionality. .2. Builder/Developer will ensure that all equipment components (such as filters, bulbs, batteries) are replaced prior to turn over. 2000 - Building Sitework I Site Preparation 2010 - Site Clearing and Demolition .1. This work shall be executed in a safe, orderly manner, and in accordance with all applicable codes. .2. The Builder/Developer shall protect all existing materials and apparatus from damage, and shall repair damage caused by workers at no cost to the EDA. .3. Remove trees and plant materials, with EDA's approval, from areas to be cleared. .4. Maintain protection of trees and plant materials which are to remain until completion of work. .5. Debris shall not be allowed to accumulate. .6. Remove all unsightly trash and dangerous material (wood, metal, etc.). 2020 - Site Earthwork .1. Placing of footings and foundations on earth fill will not be permitted. Fill excess cuts under footings and foundations with concrete, and under slabs with tamped gravel. .2. Excavations for footings shall be neat and accurately cut trenches to depths and grades shown on drawings/plans. In the absence of drawings/plans, code requirements shall govern. .3. All grading arcund any structures shall have high spots lowered and low spots raised to a minimum of 6" below top of floor slab; a minimum of 2'out with a slight slope from structure. .4. Site grading shall ar omplish the following: A. Allow drainagr c I surface water away from buildings and off-site. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 6 of 28 B. Minimize earth settlement problems. C. Avoid concentrating runoff onto neighboring properties where erosion or other damage would be caused. D. Minimize erosion. E. Minimize potential earth movement problems which might adversely affect completed construction. 5. GREEN OPPORTUNITY Grades around structures shall maintain at least a.5%slope away from the foundation. 2040 —Site Hazardous Waste Remediation .1. The property shall be free of hazards which may adversely affect the health and safety of the occupants or the structural soundness of the improvements or which may impair the customary use and enjoyment of the property. These hazards include toxic chemicals, radioactive materials, other pollution, hazardous activities, subsidence, flood, erosion, expansive or compressible soils, inadequate drainage ouffall, landslides or mudflows, and deposition of suspended solids or others located on or off site. Projects with potentially significant hazards may be acceptable if any such hazards are effectively mitigated. 2100 -Site Improvements 2110 — Roadways, Driveways, and Walkways .1. Surfaces and base courses for roads, streets, parking areas and walks shall be durable materials. Their construction shall be in conformance with generally accepted local design practices. .2. Slabs for roadways, driveways, and walkways shall be designed and constructed in accordance with standards set forth by the American Concrete Institute, and as may be necessary to prevent slab damage due to potential soil movements. .3. Provide for repairs and/or repairs of existing surfaces to match existing. .4. These surfaces shall be installed with provisions for drainage. Adequate surface and underground drainage systems shall serve all paving and improvements so as to ensure continuing stable soil support for these improvements. .5. Minimum width for driveways shall be 10', and sidewalks 3', if installed new; or if replaced, to match existing if wider than 10'. .6. All exterior concrete surfaces shall be a light broom finish with expansion joints approximately every 12' (fiber material), with slope for drainage away from structure and property. .7. All flatwork expansion joints shall be filled with clear silicone sealant. .8. Where soil and/or concrete for porches, steps and other work is in contact with members, galvanized metal flashing, or solid sheathing and 15 lb. felt shall be installed, or wrap and scratch coat applied. _e o City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 7 of 28 9. GREEN OPPORTUNITY. Limit water runoff and maximize infiltration by avoiding impervious surfaces and installing permeable drainage areas between sidewalks, driveways, walkways, patios, and pathways. A. Open matrix concrete grid pavers. B. Specialized honeycomb substrates for gravel or turf. C Pervious mixes of concrete or asphalt. 2150 — Fencing .1. Check all boundaries to ensure property lines are observed, and City Ordinances are not violated (front yard, side yard, and back yard maximum heights). .2. All post setting holes shall not be less than 24" deep and 6" diameter, at a maximum of 10' intervals. When adjacent to a foundation (walls), offset hole to obtain 24" depth, and fill in any space larger than 2" between wall and post. .3. Entrance walk gate shall be a minimum of 3'wide, and driveway gates a minimum of 12'wide; including all gate hinges and. padlock latch attachments. .4. Wrought Iron A. Posts to be 2"x 2"x .090(16 gauge). B. Top and bottom rails to be 1 '/"x 1 '/" (16 gauge). C. Pickets to be 3/4"x 3/4" (16 gauge), 4"on center. .5. Chain Link A. All galvanized material. B. 2-3/8" O.D. end, corner, and gate posts. C. 1-5/8" O.D. line and corner diagonal posts. D. 1-3/8" O.D. top rail, with bottom tension wire. E. 11 gauge-2" mesh; to include all bands and wire ties. .6. Wood Fence A. All posts will be of galvanized material (unless otherwise specified). B. 2-3/8"O.D. end, corner, and gate posts. C. 1-5/8"O.D. line and corner diagonal posts. D. Two 2 x 4 horizontal support rails. E. Fencing as specified (redwood or cedar- minimum#2, two nails per rail). .7. Block Wall A. Shall be in accordance with the City of San Bernardino drawing on Garden & Retaining Wall Standards available from the Building &Safety Department. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 8 of 28 2150 - Landscaping A. All trees and shrubbery identified to remain shall be trimmed. Trim to property line and a minimum of 4' above roofing or structure; removing all debris. .2. All trees and shrubs identified to be removed shall be cut to surface. Remove stump and roots a minimum of 8" below surface; removing all debris, and fill in hole with soil. .3. Natural site assets such as existing trees, shrubs, ground cover, must be preserved, maintained, and protected whenever possible. .4. Any existing assets lost due to the construction efforts and/or lack of protection will be replaced with like kind and size at the Builder/Developer's expense. 5 GREEN OPPORTUNITY Create environmentally friendly lawns and landscaping by A. Cover play areas with wood shavings. B. Limit the amount of lawn space by installing naturalized plantings. C. Provide alternative water sources. D. Plant drought-tolerant landscapes E. Plant shade trees in an effort to reduce the cooling loads required in the house. F. Consider planting edible plants. G. Use water-conserving irrigation equipment where landscape irrigation is required. I. Drip Irrigation. 1. Advanced irrigation controls like rain sensors. 2200 Site Civil /Site Utilities 2210 - Utilities .1. Underground piping and related items shall be protected from corrosion. Underground mechanical and electrical systems shall be protectively coated to minimize corrosion where soil conditions warrant. Where applicable, sacrificial anodes may be used. .2. Sacrificial anodes may be used where soil resistivity does not exceed 15,000 ohm - centimeters. Otherwise, an impressed current system of corrosion prevention shall be used. .3. Utilities and other facilities shall be independent for the property, without dependence upon other properties. 3100 -Selective Demolition 3110 - Building Elements Demolition .1. This work shall be executed in a safe, orderly manner, and in accordance with all applicable codes. .2. The Builder/Developer shall protect existing materials and apparatus from damage, and shall repair damage caused by workers at no cost to the EDA. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 9 of 28 .3. Debris shall not be allowed to accumulate. .4. The Builder/Developer shall remove all flooring finishes identified to be removed or replaced. Including abatement of any materials designated as containing asbestos. .5. Provide all roofing membrane removal as required for the removal of existing and installation of new roof, equipment, and connections. .6. The Builder/Developer shall provide shoring of all existing beams/structures being modified prior to removing existing bearing walls. .7. Remove all interior and exterior doors and/or frames that are identified for removal. This activity shall be coordinated with the EDA in an effort to not leave any openings un-lockable. .8. Remove all window stops/putty, glass, glazing, and frames as required. Provide demolition of existing sliding glass doors scheduled to be replaced. .9. The Builder/Developer shall remove all structural and non-structural wood stud /gypsum sheathing or wood stud / plaster partition walls, wing walls or portion of walls determined to be removed. A. All appurtenances identified to be removed / demolished on walls scheduled to be removed/demolished shall be removed and disposed of by the Builder/Developer. B. Appurtenances identified to remain, shall be removed and re-installed by the Builder/Developer. .10. Any specific cutting and patching of drywall needed to install conduit or piping shall be done by the Builder/Developer. .11. The Builder/Developer shall remove all wall surface material or portions thereof from interior and exterior walls for new framed openings such as but not limited to doors, windows, recessed electrical panels, louvers, HVAC grills and ducts, backing, etc. .12. The Builder/Developer shall provide removal of all existing spayed on acoustical (popcorn) ceiling texture. Provide for asbestos abatement as necessary. .13. The Builder/Developer shall remove existing casework and countertops, backing, anchors, bases, shims, backsplash, etc. identified to be demolished and disposed of. .14. Doors and windows must be able to be locked at the end of each day, or provide a temporary secure panel (approved by the EDA) closing the opening at no additional cost to the EDA. This also includes providing a temporary secure panel at all wall, door or window openings scheduled to be removed. .15. Removal of Ceramic tile shall include removal and replacement of wall substrate and any existing mortar bed. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 10 of 28 3120 - Hazardous Components Abatement .1. The property shall be free of those hazards which may adversely affect the health and safety of the occupants or the structural soundness of the improvements or which may impair the customary use and enjoyment of the property. These hazards include toxic chemicals, radioactive materials, other pollution, hazardous activities, subsidence, flood, erosion, expansive or compressible soils, inadequate drainage outfall, landslides or mudflows, and deposition of suspended solids or others located on or off site. Projects with potentially significant hazards may be acceptable if any such hazards are effectively mitigated. .2. The Builder/Developer shall provide all labor, material and equipment required to complete the work related to the Hazardous Materials Abatement as required. A. Provide all labor, material and equipment required to abate and legally dispose of off-site all Asbestos Containing Materials (ACM) and Lead Containing Materials including but not limited to pipe fitting insulation (elbows/ends), roof mastic, flooring, flexible joints, doors, door frames, plaster walls, sinks, ceramic tile, etc. B. Provide for the proper removal and disposal of PCB Ballasts and Fluorescent Light Tubes: i. It is assumed that all ballasts not labeled "No PCBs" are considered to contain PCBs and therefore must be treated as hazardous waste. The Builder/Developer shall disconnect the ballasts (those not labeled "No PCB's") from the fixtures and is responsible for proper disposal/recycling. ii. Mercury is present in fluorescent light tubes, which may be present throughout the project areas. Mercury is considered a hazardous waste and will be disposed of properly by the Builder/Developer. 4000 - Foundations 4010 -Standard Foundations .1. Includes excavation, backfill, compaction, and installation of all foundations. .2. Concrete materials for foundations shall be in accordance with City of San Bernardino standards and shall be approved by the EDA prior to placement. .3. Includes all formwork and accessories for all cast-in place concrete and cement concrete pavement with shoring, bracing and anchorage, form accessories, form stripping, and proper layout, location. Provide proper temporary support/shoring (as required and/or needed). .4. Furnish and install all reinforcing steel bars, welded steel wire fabric, fabricated steel bar, slip dowels, or rod mats for all on-site cast-in-place concrete and cement concrete pavement. Provide and install all necessary accessories as indicated. .5. All vertical reinforcing steel protection shall be installed in accordance with CAL OSHA codes and regulations. Maintain said protection throughout the duration of reinforcement installation and until enclosed by finish material. .6. When replacing existing concrete with new, the new concrete shall have at least the same reinforcement as the existing. i City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 11 of 28 7 GREEN OPPORTUNITY. Provide foundation water management system. 8. GREEN OPPORTUNITY Use concrete that contains a percentage of fly ash in place of portland cement. 4030 -Slabs on Grade .1. Concrete mixture shall be made of a 1-2-3 mix with plastic cement, sand, and 3/4" rock. Ready mix will be a 5 sack. Minimum 2500 psi. .2. Slabs shall be constructed in accordance with ACI 3021 R-80, Guide for Concrete Floor and Slab Construction, and as may be necessary to prevent slab damage due to potential soil movements. .3. Vapor retarders and base course shall be provided for all interior concrete slabs to which a finish flooring is applied. A. Acceptable base course materials are gravel, slag, crushed rock, sand, cinders and certain types of earth when approved by the local EDA. See ASTM C-33-90, Table 2. B. Base course material shall be clean, washed and free from deleterious substances, consistent with ASTM C-33, with 100%of the material passing a 1" sieve and less than 2% passing a#4 sieve. .1. All concrete slabs shall be a minimum of 3 '/"thick(additions, garages, driveways, sidewalks). .2. All interior surfaces shall be troweled smooth. .3. Includes excavation, backfill, compaction, and installation of all slabs. Completely furnish and install all concrete accessories, colors, finishes, forming, admixtures, reinforcement joint sealers, and curing compounds in accordance with the Specifications. 5000 -Superstructure 5010— Framing /Wood .1. Framing and wood construction shall be in accordance with the latest edition of the National Design Specification for Wood Construction. .2. A chemical barrier must be provided for structures built in those areas where termites are determined by the EDA to be a hazard. A physical barrier will also satisfy this requirement where the hazard is presented by subterranean termites only. .3. Where required by the EDA Field Office, protection against damage by decay shall be provided. .4. GREEN OPPORTUNITY Keep all untreated wood at least 12 inches above soil in lieu of the code required 8 inches. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 12 of 28 5100 - Exterior Enclosure 5110 - Exterior Walls 5111 —Stucco/ Plaster .1. The Builder/Developer shall investigate the condition of studs and ceiling joist to be sure framing members comply with appropriate code. .2. Install or reset all electrical boxes to new surface level. .3. Exterior angles shall be protected with woven or welded wire fabric of equivalent strength, or corner bead. .4. A surface inspection is required after sandblasting and before re-stuccoing by the EDA. .5. Application: A. Portland Cement plastering work shall be three-coat work when applied over metal and wire lath/wrap. B. Scratch (first) coat: Apply with sufficient material and pressure to fill solidly all openings in the lath/wrap, and to cover wall, and then scratch to rough surface. Allow to dry a minimum of two days. (Example: complete scratch coat Tuesday, start brown coat Friday). C. Brown (second) coat: Apply after scratch coat has set firm and hard, bring out to grounds, and straighten to a true surface with rod and darby; leave rough, ready to receive finish coat. Surface shall not have variation greater than Y4" in any direction under a five-foot straight edge. Allow to dry a minimum of seven full days before applying color coat. (Example: complete brown coat on Tues., color coat not to start until following Wed.). D. Finish (color) coats: Portland Cement and Lime Finish Coats-Apply over base coats which have set and surface-dry; lay on well, double back and fill out to a true, even surface. Thickness shall be 1/16"to 1/8", then texture as specified. E. When structure is to have lath/wrap and stucco over existing siding, the Builder/Developer is to remove door and window casing; trim out with metal edging or stucco molding, and seal. F. Exterior lath/wrap to be applied as per California Building Code. G. Stucco Color Coat: La Habra, Bauer, or equal. 5112— Exterior Insulation .1. Materials used for insulation shall be of proven effectiveness and adequate durability so as to ensure that required ratings concerning heat transmission, sound control and fire rating are attained. A. Manville, Owens/Corning, USG; or equal. B. Proper sound insulation shall be used at all walls. C. GREEN OPPORTUNITY: Use cellulose insulation. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 13 of 28 .2. Insulation in contact with the ground shall be installed so as not to be adversely affected by soil, vermin and water. .3. Shall be installed in accordance with Energy Conservation Standards administered by the Building &Safety Division of the City of San Bernardino. .4. Attics: A. If all exterior walls of house are not insulated, bring to R-38 rating (12"). B. If all exterior walls are insulated and/or new addition, insulate to R-30 rating (9"). C. GREEN OPPORTUNITY, All attic spaces are to receive insulation. .5. Walls: A. All exposed exterior walls and new addition, insulated to R-11 rating (3 Y"). .6. Water Heater: A. If it has access from outside or in garage, install R-8 rating insulation blanket and wrap all exposed water lines with pipe insulation. B GREEN OPPORTUNITY Provide insulation at all water heaters. 5113—Caulking and Joint Sealants .1. Materials used for caulking and sealants shall be suitable for the use intended, and shall be compatible with the materials to which they are applied and with any finish that may be applied over them. 5120 - Exterior Windows .1. When required shall be made easily openable, replace sash cords and weights or install spring loaded sash balances, as necessary. .2. Windows and operating hardware shall be installed in accordance with the recommendations of the manufacturer. .3. When aluminum single hung or slider window(s) is required and the frames are not to be taken out, use International Window Corporation, Keller, or equal (block frame), to fit existing opening. Caulk window frame before installing, including necessary trim. .4. When new aluminum slider or single hung window(s) installation is required, provide header(s), trimmers, flashing, International Window Corporation, Keller, or equal (standard frame). .5. Operating windows shall be manufactured units consisting of the frame, sill, sash, weather-stripping, and operating hardware. Job site assembled windows composed of frames and sashes made by different manufacturers are not acceptable. .6. Glazing: A. When replacing glass, thickness shall be as recommended by the manufacturer for the specific use. B. All bathroom windows shall be glazed with obscure glass. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 14 of 28 C. Glass set in wood shall be secured in place with springs or glazing points and face puttied, wood and putty to be primed and painted. D. Glass set in metal shall be secured in place with glazing clips, back and face puttied with appropriate material, metal and putty to be primed and painted. E. All glass shall be cleaned, with no cracks or rattles (new installation only). F. Re-putty shall mean to replace all damage, loose, and missing putty. .7. Weather-stripping shall be properly fitted to eliminate excessive infiltration of dust, snow or rain. .8. Screens: A. Screens shall be installed on all openable windows. B. When re-screening or new screens are required, they shall be aluminum frames, aluminum screening; tight fitting and easily removed. C. Nylon screens on newly installed windows and combination doors may be acceptable, unless otherwise requested or stated. .9. If a window of any kind must be installed into the wet area of the tub or shower surround, it must: A. Contain a sill made of material that is water impermeable , such as marble or Corian, not tiled and grouted. B. Have a sill that is pan-flashed or sealed. C. Have frame made of moisture-tolerant material. 10. GREEN OPPORTUNITY. Replace existing windows and provide new windows with a high energy and low-e performance rating 11. GREEN OPPORTUNITY. Provide awnings, overhangs, or other shading devices on exterior windows. 5130 - Exterior Doors / Garage Doors .1. All exterior doors will be wood or metal finish (no hardboard). Primed/painted or stained/varnished. .2. Doors shall be durable, installed in good operating condition, free of defects, latch readily and lock securely. .3. Doors shall fit opening and operate properly. .4. All new door installation shall include new hinges and all necessary trim. .5. Entry Doors: A. Exterior entry doors shall be side-hinged doors not less than 3 ft. in width and 6 ft. 8 in. in height. B. 1 %" solid core - Birch, Mahogany, Luan; unless existing jamb takes 1 3/8"door. C. 3 each -4" x 4" butt hinges, unless existing jamb takes 1 3/8" door, then 3-3 Yz'x 3 1/2' butt hinges. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 15 of 28 D. Exterior door frames shall be treated against decay. E. Locks- Kwikset, Schlage, or equal. .6. Garage Doors: A. Steel frame construction. B. Installing new garage hardware or replacement hardware shall comply with the following safety notice: ... FOR YOUR SAFETY ... California State Assembly#772 directed the Commission of Housing and Community Development to change the appropriate rules and regulations in ways that, "ARE REASONABLY NECESSARY TO PREVENT THE DEATH OR INJURY OF PERSONS OR DAMAGE RESULTING FROM THE BREAKING OF GARAGE DOORS SPRINGS". (quoted from Assembly Bill#772) 7 Weather-stripping shall be applied to all exterior doors and interior garage door. .8. Weather-stripping shall be aluminum and vinyl. Install after surfaces are finished and dry. .9. Thresholds and door shoes shall be installed at all exterior doors and interior garage doors and shall be aluminum thresholds, and aluminum/vinyl with drip cap door shoes (channel type), sealed to be watertight. .10. Exteriorjambs will be rabbet type (fit wall thickness) and to include new wood (pine) casing material. Replace stucco molding only if required. .11. A safety door check shall be provided on all outward opening doors, including storm and screen doors. .12. Locking devices at doors and windows shall be as follows: A. Each exterior doorway and each doorway leading to garage areas, terraces, balconies, or other areas affording easy access to the premises shall be protected by a door which, if not a sliding door, shall be equipped with a deadlock using either an interlocking vertical bolt and striker, a minimum of 1.2 in. throw dead bolt or a minimum 1/2 in. throw self-locking dead latch. Locks shall not require the use of a key for operation from the inside. B. All sliding doors, first Floor and basement windows and windows opening onto stairways, fire escapes, porches, terraces, balconies or other areas affording easy access to the premises shall be equipped with a locking device. A sliding door used as a main or service entrance shall be equipped with a keyed locking device. .13. Screens shall be aluminum/satin finish with latch set and pneumatic closure or equal. .14. Security Screen—Jamb/frame will be 1' 1/4"x V 1/4"(18 gauge) with 3/4 x 3/4"center framing (18 gauge) and heavy gauge metal screening. Combination (Bel-Aire)-Solid core (no panels). 1 3/8"door, 3 - 3 Y:"x 3 '/" butt hinges; 1 W Locks- Kwikset, Schlage, equal. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 16 of 28 5140- Flashing .1. Flashing shall have a service life at least equal to that of the assemblies into which it is built. .2. Counter flashing is considered exposed flashing and shall be constructed of sheet metal. .3. Alternate products or systems of bitumen-impregnated plastic or elastomeric materials may be used for flashing if they are installed in accordance with the manufacturer's recommendations and are acceptable to the EDA. .4. All openings between wood or metal and masonry shall be caulked with a non- hardening caulking compound. 5200— Roofing 5210 - Roof Coverings .1. Strip- Means to remove"all" roofing material to sheathing, with inspection of sheathing prior to installation of new roofing. .2. The Builder/Developer shall guarantee the owner to maintain the entire roofing, and counterflashing in a watertight condition for a period of fifteen years. .3. Shingles— A. Shall be fiberglass of 1511b. felt. B. New metal 1 '/2"drip edge and roof jacks (form over shingles, seal around all pipes). .4. Built- Up /Roll Roofing Cap A. Roll roofing cap to be a minimum of 90 lb. roofing paper and must bear a class "C" UL listing. B. One 90 lb. cap sheet to be installed over two layers of 15 Ib. felt paper, saturated with at least 20 lb. of hot mopped tar, between layers. C. All base sheets to be well nailed with approved galvanized nails providing a minimum 3/4" penetration into a firm solid sheathed surface. D. New metal M."drip edge and roof jacks. .5. GREEN OPPORTUNITY. Provide reflective (high-albedo) roofing systems with an Energy Star rating. 5220—Gutters and Downspouts 1. Gutters and downspouts shall be provided at all projects. .2. Gutters and downspouts -Shall be a minimum of 26 gauge galvanized metal, or vinyl material. .3. Gutters shall be sloped to downspout and supported a maximum of 3'apart. .4. End caps, corner joints, splices, outlet tubes shall be soldered or have watertight joints. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 17 of 28 .5. Downspouts shall be fastened at top, bottom, and approximately every 6% and directed to drain away from the structure. .6. Downspouts shall be sized on the basis of 100 square feet of roof surface to 1 square inch of leader. More or less leader area may be required by the EDA. .7. Scuppers shall be installed at the outfall end of a valley for special roof designs, such as"butterfly" roofs. .8. Scuppers shall be installed for overflow of all roofs enclosed by parapet walls. 9. GREEN OPPORTUNITY Provide a simple rainwater harvesting system for use on irrigation. 6000 - Interior Construction 6010— Partitions I Ceilings 6011 — Interior Insulation .1. Materials used for insulation shall be of proven effectiveness and adequate durability so as to ensure that required ratings concerning heat transmission, sound control and fire rating are attained. A. Manville, Owens/Corning, or equal. B. GREEN OPPORTUNITY Use cellulose insulation .2. Insulation in contact with the ground shall be installed so as not to be adversely affected by soil, vermin and water. .3. Shall be installed in accordance with Energy Conservation Standards administered by the Building & Safety Division of the City of San Bernardino. 6012 - Drywall .1. When installation of drywall is specified, provide Y" U.S. Gypsum wall board or equal, unless otherwise specified. 2. GREEN OPPRTUNITY. Select drywall products with a high recycled content and use taping materials and joint compound without hazardous additives that aid in drying and setting. .3. All joints and inside corners shall be taped; outside comers shall have corner bead troweled with joint compound (a minimum of three coats, and smoothly sanded or textured). .4. If kitchen base cabinets, toilet or lavatory are removed, and the drywall is to be replaced, it must be replaced with green board or equal. .5. If tub surrounding drywall is to be replaced, it must be replaced with wonder (cement) board. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program - Minimum Building Standards Page 18 of 28 .6. All wall surfaces to receive ceramic tile shall receive wonder (cement) board of plaster in accordance with the following: A. Portland Cement plastering work shall be three-coat work when applied over metal and wire lath/wrap. B. Scratch (first) coat: Apply with sufficient material and pressure to fill solidly all openings in the lath/wrap, and to cover wall, and then scratch to rough surface. Allow to dry a minimum of two days (Example: complete scratch coat Tuesday, start brown coat Friday). C. Brown (second) coat: Apply after scratch coat has set firm and hard, bring out to grounds, and straighten to a true surface with rod and derby; leave rough, ready to receive finish coat. Surface shall not have variation greater than Y:' in any direction under a five-foot straight edge. Allow to dry a minimum of seven full days before applying color coat(Example: complete brown coat on Tues., color coat not to start until following Wed.). 6020 - Interior Doors .1. Doors shall be durable, installed in good operating condition, free of defects, latch readily and close securely. .2. Doors shall fit opening and operate properly. .3. All new door installation shall include new hinges and all necessary trim and hardware. .4. Interior Hinged/Closet/Bathroom Doors: A. Shall be side-hinged doors not less than 1 3/8" thick. B. At least 2 each 3 Yz'x 3 Y:" butt hinges. C. Locks- Kwikset, Schlage, or equal. .5. Shower Door/Tub Enclosure: A. Shower Doors— MAAX, Kohler, or equal. Seal around frame and walls. B. Tub Enclosure - MAAX, Kohler, or equal. Seal around frame and walls .6. Door stops installed at all swinging doors shall be solid (no coil springs). .7. Interior jambs will be flat type (fit wall thickness)and to include new wood (pine) material stop molding and casing (both sides). 7000 - Finishes 7010— Ceramic Tile .1. Install ceramic tile where identified. .2. Ceramic tile to be American Olean, Dal-Tile, or equal. 3 GREEN OPPORTUNITY Use ceramic tile with high recycled content .4. Submit a complete range of colors and types for the EDA's selection. One of each color of type selected shall be retained by the EDA.All materials placed in the building shall match such samples. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 19 of 28 .5. Applications and installation of adhesive, primer, caulking compound, and prepared grout when used, shall be as recommended by manufacturer of the tile and in accordance with these standard specifications. .6. Ceramic tile shall be applied over a water-proof surface only(cement or wonder (cement) board). .7. At showers, the top of step shall have slight slope into shower. 7020 - Floor Finishes .1. The Builder/Developer shall provide all necessary floor preparation of existing surfaces to properly receive new flooring material. .2. Sub-flooring shall be a minimum thickness of 3/4" plywood or 1x boards. .3. Underlayment shall have a maximum thickness 3/8" industrial particle board. .4. Install all flooring per manufacturer's recommendation. .5. Existing floor covering to be removed prior to installation of new floor. .6. Provide underlayment when sub-flooring is in such a condition to warrant replacement. Bathroom, kitchen, and laundry underlayment to be of water resistant material. .7. Surfaces to receive flooring shall be clean, dry, smooth, even, and without defects. .8. At Bathrooms, the toilet and lavatory cabinet shall be removed before flooring installed. Reinstall toilet and cabinets. .9. Install new baseboard or shoe after installation of flooring. If cove is required, it shall be formed integrally of matching sheet material. Adhesives shall be as recommended by manufacturer. .10. Coat all concrete floors on earth grade with concrete primer as recommended by manufacturer. .11. Leveling compound and crack filler-As manufactured by Aetna Manufacturing Company for concrete floors or equal. .12. Linoleum (sheet goods) - FHA base cushioned,Armstrong -Cambray or equal. .13. Vinyl Tile -Armstrong -Stylistic or equal. .14. Carpet-260z. A. Base, HUD/FHA bulletin UP-44c requirement. B. Pad -5/8" rebond high plush, HUD bulletin UP-72 requirement. 15. GREEN OPPORTUNITY. Provide greener carpeting such as A. Products made from natural materials, B. Products that do not contain residues from dyes and finishes used in manufacturing, C. Products that do not have surface treatments to repel stains, D. Products with documented low VOC offgassing; City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 20 of 28 E. Products with high recycled contents .16. Submit a complete range of colors and types for the EDA's selection. 7030 - Ceiling Finishes .1. Ceilings shall be drywalled and painted. No sprayed on acoustical ceilings(popcorn) will be allowed. 7040 - Painting .1. Lead Content: A. The definition states in part, ....... with respect to paint which is manufactured after June 22, 1977, lead-based paint means any paint containing more than six one- hundredths of one percent lead by weight(calculated as lead metal) in total non- volatile content of the paint or the equivalent measure of lead in the dried film of paint already applied". B. All contractors and sub-contractors on rehabilitation activities will comply with the Lead-Base Paint Regulation under 24 CFR Part 35, requiring: i. The prohibition of the use of lead-based paint in the rehabilitation of properties; ii. The elimination of immediate lead-based paint hazards in residential structures. .2. All paint shall have low VOC levels. .3. If exterior painting is required, caulk all exterior door and window frames to seal completely. Remove all loose and deteriorated putty on windows and re-putty before painting. When painting of exterior trim is specified, this shall include doors, windows, all frames, eaves, soffits, porches and all appendages. .4. If a paint to be used on exterior surfaces is not inherently mold resistant, a suitable fungicide shall be included in the formulation. .5. If repair of exterior surfaces is indicated, remove all broken and loose material by raking out, scraping and sanding if necessary. Repair with proper material for area being repaired, blending in with texture of area being repaired. Prime the repaired area prior to painting. .6. If interior painting is indicated, repair all cracks by W"scratch approximately 1/8"X 1/8" in walls and ceilings of all rooms being re-painted. Use proper type of patching material for areas being repaired. Fill all cracks and holes solid and blend in repaired areas with texture of surface being repaired. Prime cracked areas prior to painting. When painting of walls and ceilings of a room is specified, this shall include all trim, windows and door frames, closets, and cabinets (inside). .7. All surfaces to be painted shall be free of dirt, dust, grease before painting is started. All knots, pitch streaks, and sappy spots shall be first sealed with shellac or sealer approved for use with materials as specified, before subsequent coats are applied. Each coat shall be allowed to dry before subsequent coat is applied. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 21 of 28 .8. If it should become necessary, in order to give good coverage because of surface condition of the paint color(s), it is the obligation of the Builder/Developer to apply sufficient coats to obtain complete coverage. .9. All new drywall shall be primed with one coat of Drywall Sealer/Primer before the application of the finish coat, unless otherwise specified. .10. Paint to be Dunn-Edwards, Glidden, Sinclair or equal. EDA to select color(s) and finish. .11. Paint for kitchen, service area, bathroom(s) to be a durable and washable gloss finish (unless EDA requests a semi-gloss). .12. Stain—Exterior/interior application (Minwax, Behr, or equal). .13. Varnish - Exterior/interior application (Behr, Varathane Elite, or equal). .14. Spar gloss or satin, EDA to specify (Behr, Varathane Elite, or equal). .15. Spar gloss or satin, EDA to specify (Behr, Varathane Elite, or equal). .16. Paint application shall consist of two coats on old material, and three coats on bear wood or new material. The top and bottom edges of interior doors shall be sealed (painted or varnished)with one coat, exterior doors with two coats. .17. Application of paints, stains, or other coating systems shall be in strict accordance with manufacturer's directions and shall comply with the following: A. Exterior Wood Siding, Millwork and Trim I. Knots, resinous wood, and nail holes shall be sealed with a prepared sealer or aluminum paint prior to puttying and priming. Any nail holes or cracks in surfaces to be painted shall be filled with putty. ii. A prime coat shall be applied to all surfaces to be painted before or immediately after installation. Primer shall be formulated specifically for application to unfinished wood. Finish coats formulated to serve as primers may be used. iii. One of the following finish systems shall be applied. Coverage shall be that which will provide at least the minimum thickness recommended by the manufacturer. a. Oil paint systems. b. Latex paint systems. c. Pigmented stains as per manufacturer's directions. d. Clear penetrating preservatives or water repellent finishing systems. iv. The top and bottom of exterior wood doors, casement sash, awning sash and the bottom of double hung sash shall receive two coats of paint or sealer. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 22 of 28 V. Prior to erection, all edges of vertical siding shall be sealed with a heavy coat of house paint primer, water repellent stain, exterior aluminum house paint or sealer. Wood batten strips shall be backed-primed or sealed. B. Wood Shingles, Shakes, Rough-sawn Siding. L Two coats of oil stain, pigmented oil stain, or an oil shingle paint shall be applied. C. Hardboard and Softwood Plywood Siding. i. These sidings shall be finished in accordance with the manufacturer's direction. D. Wood Porch Floors and Decks. I. One coat of primer and two coats of floor and deck enamel designed for exterior use shall be applied. Joints between floor and wall shall be caulked. E. Unfinished Surfaces. L Shingles and board siding of vertical grain cedar, redwood and bald cypress may be left unfinished. F. Exterior Concrete Masonry Units or Concrete Brick I. At least two coats of masonry paint shall be applied. ii. Concrete masonry units or concrete brick, except small areas of foundation walls, shall be painted to provide a water resistant finish. iii. High density concrete brick or solid split block forming the outer face of double unit walls (veneer, cavity walls, etc.) may be left unpainted when acceptable to the EDA. G. Exterior Galvanized Steel or Iron L Field painting shall consist of two coats. One coat shall be a primer formulated specifically for galvanized surfaces, and the second coat shall be a finish coat. A finish coat formulated to serve as a primer may be used as the first coat. H. Exterior Steel, Iron or Terne Plate ii. Steel or iron, except stainless steel,weathering steels, or steel treated with coatings to provide corrosion resistance, shall be painted. iii. A rust inhibitive primer and a finish coat shall be applied. I. Interior Millwork and Trim i. All mill work and trim, including windows; interior doors; window, door and base trim; paneling and closet shelving and trim shall be finished by painting or natural finishing. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 23 of 28 ii. If the surface is open grain wood, it shall be filled or sealed to prevent the grain from rising. Surfaces shall be treated with a primer. One or more finish coats shall be applied to provide a smooth surface and good hiding. iii. Natural finishes include stain-wax, stain followed by one or more coats of varnish, clear coats of varnish with or without wiped paint undercoats or oil and wax finishes. J. Wood Floors L If flooring is open grain wood, one coat of filler shall be applied. All excess shall be wiped off. ii. Flooring shall be finished with: a. One or two coats of penetrating sealer and one coat of wax; or b. Two coats of varnish and one coat of wax; or c. Two coats of polyurethane; or d. One or more coats of factory-applied finish. K. Interior Plaster and Gypsum -Walls and Ceilings L Plaster surfaces may be painted, covered or left unfinished, except for surfaces of kitchens and baths. If painted, a finished coat shall be applied over a primer-sealer, unless finish coats are of the self-priming type. ii. Gypsum wallboard shall be covered. If painted, one coat of wallboard sealer shall be applied unless finish coats are of the self-sealing type. Two finish coats shall be applied over the sealer. One finish coat, except in kitchen and baths, may be acceptable if good coverage is obtained. L. Interior Metal I. Non-ferrous metals or wrought iron may be painted or left unfinished. Other metals shall be painted in accordance with 609-3.4. M. Interior Concrete Floors L If painted, at least two coats of resin emulsion paint, a solvent rubber paint or a floor and deck enamel shall be applied. If oil paint is used,the surface shall be neutralized before painting. ii. A coat of wax shall be applied over paint, stain or an integral finish. N. Wall Coverings L Covering material shall be secured to a suitable base in accordance with the manufacturer's directions. ii. All rooms that have new wall covering installed will include molding,trim, base, and painting (if required). City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 24 of 28 8100— Furnishings 8110 —Carpentry, Cabinets, and Millwork .1. All manufactured factory finished cabinets shall comply with ANSI A161.1-86, Recommended Minimum Construction and Performance for Kitchen and Vanity Cabinets, or with an equivalent standard. .2. Workmanship: All interior wood finish, cabinet and casework shall be smooth dressed, well sanded, and thoroughly cleaned before priming. All material showing machinery, sandpaper, or other defacing marks will be rejected. Interior wood finish or cabinet work shall not be installed on newly plastered walls until the plaster in that section is reasonable dry and approved by the EDA. .3. All interior wood finish, doors, frames, and other cabinet work or fixed wood equipment shall be properly installed, level plumb, and true. Members shall be neatly and accurately scribe in place, maintaining full lengths without splicing, except where the use of full lengths would be impractical or impossible, and then if joined, butt joints shall be beveled. Replacement and installation of new trim or molding shall match existing in size and profile or otherwise be reasonably appropriate upon finished installation. .4. All cabinets(kitchen base and wall, bathroom lavatory, etc.) shall be a minimum of birch plywood construction (stain grade quality), shop fabricated casework, with all necessary hardware. Shelving shall not be less than 3/4" pine, plywood, or particle board. Kitchen base cabinets shall have a built-in bread board. .5. All cabinets and trim shall be scribe to contacting surfaces and shall be straight, plumb level and in true alignment, closely fitted, and rigidly fastened in place. .6. Countertops: A. Top material shall be phenolic laminate, vinyl plastic covering, ceramic tile, stainless steel or other material suitable for its intended use. B. The top material shall be securely bonded to a reinforced steel core, to 5/8 in. plywood, or to any other equivalent material. C. At least a 3 in. back and end splash shall be provided against all abutting vertical surfaces which are not water and grease resistant. When a back splash is omitted, the joints at the juncture of the counter top and vertical surfaces shall be tight and seated. D. All edges, including the sink and any built-in surface units, shall have a non- corrodible metal molding or other suitable edging. E. High Pressured Laminated Plastic(Formica or equal)-Shall be constructed with a bullnose front edge, minimum of a standard back splash where it abuts walls, and full length of cabinets. If laminated plastic ends at wall, provide end splash (material must be identical to counter top original color). Scribe and closely fitted to adjacent work, and securely anchored to cabinets. Installation of sinks shall have required mounting flange and sealed against leaking. No butcher block unless otherwise requested or stated by the EDA. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 25 of 28 F. Ceramic Tile- Shall be applied over a plastic cement base secured to 3/4" exterior plywood secured to the cabinets. Raise front edge, minimum of a standard back splash, and sealed at edges of full length cabinets. (See Ceramic Tile Specification). G. GREEN OPPORTUNITY. Countertops shall be made of natural stone (granite), tiles, or manufactured solid surfaces (Conan). .7. Interior woodwork: A. Trim (D.F.) "B or better". B. Shelving - Particleboard or#2 shelving. 9000— Plumbing, Mechanical, Electrical 9010 - Plumbing Fixtures .1. All fixture installation is to include trap, vent, faucets, and all trim necessary to mount fixture in an approved manner, and to include repair of damaged areas affected by the installation. When kitchen or lavatory faucet is replaced, it will also include risers. Replace all angle stops. .2. Fixtures: A. Water closets- Deep bowl (round or elongated per EDA request). American Standard - Hydra; Eljer—Titan; Kohler; or equal. Handicap (17" high). Must be rated at no more than 1.6 gallons per Flush. i GREEN OPPORTUNITY. Use of a high-efficiency toilet that uses less than 1.6 gallons per flush is recommended. B. Bathtubs - 5' pressed steel-American Standard; Kohler, or equal C. Lavatories—American Standard, Kohler, or equal. D. Kitchen Sinks-Single or double compartment enameled cast iron - Kohler or equal; Single or double compartment stainless steel (7" depth, 20 gauge minimum thickness) - Sterling or equal. E. Garbage Disposal- Insinkerator—Badger 2, '%HP (3 year warranty) or equal. F. Laundry Sinks-American Shower& Bath, or equal. G. Faucets i. Lavatory- Delta, Peerless, Kohler, or equal. ii. Tub/Shower Diverter- Price Pfister, Kohler, or equal. iii. Shower-Price Pfister, Kohler, or equal. IV GREEN OPPORTUNITY. Provide low flow faucets and shower heads or fit standard faucets with a flow reducing aerator. H. Bathtubs- 5' Lasco; Hess Cc; or equal. I. Tub Wall Kits- Plaskolite, Elite; Nova, Seville; or equal. J. Shower- Lasco, or equal. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 26 of 28 K. WATER HEATERS: i. Shall be Reliance; Galaxie; Whirlpool; or equal, with an eight(8) year warranty. Size shall be as required to service property. ii. All shall have pressure/temperature relief valve with a drain line to the outside; or if located on a concrete floor in center of house- pressurettemperature relief valve and drain line shall be installed per Building and Safety requirements. iii. All units shall be secured to walls. iv. All units shall be insulated. V. GREEN OPPORTUNITY: Water heater should have a high-efficiency rating. 9020 - Domestic Water Distribution .1. Each dwelling shall be provided with a continuing and sufficient supply of safe water under adequate pressure and of appropriate quality for all household uses, and one that will not impair the functioning or durability of the plumbing system or attachments. .2. Connection shall be made to a publicly owned or publicly controlled water supply system that is adequate to serve the demands of the project. .3. Provide all connections to risers or fixtures from top to mains so that the entire system can be drained at low point. .4. Provide hot water supply to all fixtures except water closets. .5. Support piping from the building structure by means of hangers to maintain required grading and pitching of lines and to prevent vibration. 6 GREEN OPPORTUNITY: All hot water lines shall be insulated. 7. GREEN OPPORTUNITY. Consider the use of PEX piping. 8. GREEN OPPORTUNITY. Provide a single-throw shut-off valve at service to clothes washing machines. If machine located above a livable space, provide a floor drain and shower pan under the washing machine. 9030 -Sanitary Waste .1. Roto Root(clean) all drain lines to street through clean-out cap, roof vent, etc. .2. Each dwelling shall be provided with a water-carried system adequate to dispose of domestic wastes in a manner which will not create a nuisance or endanger the health of the occupants or the public. .3. Connection shall be made to a publicly owned or publicly controlled system that is adequate to serve the needs of the project. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 27 of 28 9100 - Heating, Ventilating, and Air Conditioning (HVAC) 9110— Heating and Ventilating .1. Heating and ventilating equipment shall be Trans; Bryant; Carrier; or equal, as appropriate to the situation. 2. GREEN OPPORTUNITY: Equipment should be rated as high effieciency. .3. GREEN OPPORTUNITY., Evaluate existing healing and ventilation system and down size or reconfigure to be more efficient. Do not oversize equipment. .4. GREEN OPPORTUNITY., Consideration should be given to using equipment that provides alternatives to conventional refrigerant, such as non ozone depleting HFC refrigerants. 5. GREEN OPPORTUNITY. Provide ceiling fans in bed rooms and living spaces. .6. Provide wall thermostat with complete vent system, attic shield, roof jack, and gas piping/shut-off valve. 7 GREEN OPPORTUNITY Install programmable thermostats with both daytime and nighttime setbacks. Separate control of different spaces into zones so that the unit works more efficiently. 8. GREEN OPPORTUNITY Provide duct cleaning prior to turn over .9. Install in an approved manner and location. .10. Crawl Space Ventilation: A. The space between the bottom of the floor joists and the earth under any building (except such space as is occupied by a basement or cellar) shall be provided with a sufficient number of ventilating openings through foundation walls or exterior walls to ensure ample ventilation. Such openings shall be covered with a corrosion-resistant wire mesh with a mesh size not greater than 1/2 in. nor less than 1/4 in. in any dimension. The minimum net area of ventilating openings shall not be less than 1 sq. ft. for each 150 sq. ft. of crawl space area. B. One ventilating opening shall be within 3 ft. of each corner of each building where such openings are required. .11. Attic Space Ventilation A. Cross ventilation shall be provided for each separate space. Ventilation openings shall be protected against the entrance of rain and snow. B. The ratio of the total net free ventilation area to the area of ceiling shall be not less than 1/150, except that the ratio may be 1/300 if: i. A vapor retarder having a transmission rate not exceeding one perm is installed on the warm side of the ceiling; ii. Between 25 and 50 percent of the required ventilating area is provided by vents located in the eaves or cornices with the balance of the required ventilation provided by ventilators located at least T-0" above the vents in the eaves or cornices; or City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 28 of 28 iii. The attic space is accessible and suitable for future habitable rooms or walled-off storage spaces have at least 50%of the required ventilating area located in the upper part of the ventilated spaces as near the high point of the roof as practicable and above the probable level of any future ceiling. 9200 — Fire Protection Systems 9210 — Fire Protection Specialties i Provide smoke detectors that are U.L. approved; First Alert SA1501-T, or equal. Hard wire will have battery back-up. 2 GREEN OPPORTUNITY Provide carbon monoxide detectors. 9300 - Electrical Systems 9310 - Electrical Service and Distribution .1. When required, provide a new electrical service box/meter. All existing circuits shall be checked out and split as required. All new loads, outlets, lights, etc., must be on additional circuits, unless prior approval is received from the EDA. .2. Electrical Service installed at location shall be as recommended by Edison Company. .3. Check all services and verify all electrical service, circuits (marking panel if not done); replacing all faulty outlets, switches, damage and missing cover plates; for house and garage. .4. When encountering non-complying wiring, it is to be removed in its entirety. This is to include boxes, lights, old panels (unless used for junction box), etc.; and to include repair, patching, and painting of all areas affected (to match existing)-- ceilings,walls, etc.All new wiring shall be concealed within walls, ceilings unless approval from the EDA is obtained prior to installation. .5. GREEN OPPORTUNITY All bulbs shall be fluorescent. No incandescent lighting will be allowed. 6. GREEN OPPORTUNITY Avoid recessed lighting. When required use insulation- contact fixtures that seal tightly and allow insulation to be packed against them. T GREEN OPPORTUNITY.., Install dimmer switches at all living areas. Restrooms shall have motion detector switches. 8 GREEN OPPORTUNITY., All low voltage (telephone, data, television) shall be run in conduits to provide for future expansion and/or replacement. AFFORDABLE HOUSING SOLUTIONS OF SAN BERNARDINO,INC. DEVELOPMENT AGREEMENT FOR INTERMEDIARY SERVICES [INLAND EMPIRE CONCERNED AFRICAN AMERICAN CHURCHES] This Development Agreement for Intermediary Services (the "Agreement") is made and entered into as of March 15, 2010, by and between Affordable Housing Solutions of San Bernardino, Inc. ("AHS"), a California 501(c)(3) public benefit corporation, and Inland Empire Concerned African American Churches, a California 501(c)(3) public benefit corporation, ("Consultant"). NOW, THEREFORE, IN CONSIDERATION OF THE COVENANTS AND MUTUAL PROMISES CONTAINED HEREIN AND FOR SUCH OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED, THE PARTIES HERETO AGREE AS FOLLOWS: 1. Supervision of Consultant. The AHS officers and or their assignee's designated in Exhibit "F"attached hereto (collectively, the "AHS Representatives") shall be responsible for the direction of any work to be performed by the Consultant and any other consultants or subconsultants to AHS under this Agreement. The Consultant shall not undertake any work under the terms of this Agreement, unless instructed to do so by any one of the AHS Representatives. No other AHS representative is authorized by AHS to request services from the Consultant, pursuant to this Agreement. Approval by any one of the AHS Representatives shall constitute approval by AHS. 2. Term of Agreement. The term of this Agreement shall commence on the date first appearing in this Agreement (the "Effective Date") and will terminate six (6) months after this date, unless earlier terminated as provided in this Agreement. AHS will have the option to extend the term of this Agreement at the sole option and discretion of AHS with the written consent of the Consultant. AHS reserves the right through the actions of the Chief Executive Officer or the Chief Operating Officer of AHS to terminate this Agreement at any time either with or without cause and at the sole convenience of AHS upon delivery of notice of termination to the Consultant; provided, however, that upon the effective date of any such termination, AHS shall be responsible to pay and/or reimburse the Consultant for all services, materials and supplies as may have been furnished to AHS prior to the date of the termination of this Agreement in accordance with the Scope of Services as referenced in Section 3. 3. Scope of Consultant Services. AHS hereby retains the Consultant to provide the professional consulting services set forth in the Scope of Services attached hereto as Exhibit"E" and incorporated herein by this reference. The Consultant hereby agrees to perform the work set forth in the Scope of Services, in accordance with the terms of this Agreement. The Consultant shall perform the services as set forth on said Scope of Services within the time periods to be identified by the appropriate AHS Representative. The Consultant shall comply with those laws, regulations or ordinances governing fair housing and equal opportunity practices and the - 1- P�4geMeeUgenEaAnachmemeWgentlaAne<M1m<ma�AgmtrAmnW 201M-1S10�"C0... p.Agmemem-Fil abatement of lead-based paint, asbestos and mold practices as required under the Neighborhood Stabilization Program ("NHS") promulgated by the United States Department of Housing and Urban Development("HUD")pursuant to the provisions of the Housing and Economic Recovery Act of 2008, Public Law 110-289 — July 30, 2008, Title III — Emergency Assistance for the Redevelopment of Abandoned and Foreclosed Homes, Section 2301, et seq., as the same may be hereafter amended, restated or supplemented from time-to-time, and the Notice of Allocations, Application Procedures, Regulatory Waivers Granted to and Alternative Requirements for Emergency Assistance for Redevelopment of Abandoned and Foreclosed Homes Grantees under the Housing and Economic Recovery Act, 2008 issued by HUD and found at the Federal RegisterNol. 73, No. 194/Monday, October 6, 2008/Notices, as the same may be hereafter amended, restated or supplemented from time-to-time(collectively, the"NSP Regulations") 4. Payment by AHS for Work Performed by the Consultant. A. AHS shall compensate the Consultant for completion of the services described in the Scope of Services set forth in Exhibit "E", "Scope of Services", in accordance with the guidelines stipulated in Exhibit"H", "Consultant Payment and Reimbursement". B. The compensation designated in subsection 4.A. shall be the "Total Fee" for the performance of the work and the delivery of the final work product materials, as set forth in the Scope of Services for each property acquired directly or indirectly by AHS for which the services were provided by the Consultant in accordance with this Agreement. The Total Fee shall include, but not be limited to, the materials and salaries of all subcontractors and vendors retained by the Consultant and all employees of the Consultant to perform work pursuant to this Agreement and all general overhead expenses of the Consultant inclusive of all costs and expenses incurred for mileage, travel, graphics, telephone, printing, fax transmission, postage, copies and such other expenses related to completion of the work set forth in the Scope of Services. C. The Consultant shall invoice AHS for eligible pedevelopment expenses and work performed by the Consultant under this Agreement through funds draw requests submitted by the Consultant in accordance with AHS's policies and procedures, and approved by AHS, on a monthly basis, or on a more frequent basis if requested by the Consultant and approved by AHS, with the first draw request occurring no earlier than two(2)weeks after the Effective Date. D. The Consultant shall submit draw requests under this Agreement to: Affordable Housing Solutions of San Bernardino, Inc. Attention: Chief Operating Officer 201 North"E" Street, Suite 301 San Bernardino,California 92401 E. The Consultant's funds draw request shall set forth the cost of any direct labor and materials incurred in performance of the Scope of Services, the appropriate portion of fees described in Exhibit "H", as applicable, the cost of any permits or licenses required to perform -2- P.UWn"MgendaAn MemMgenda AnnhMMSVgnms-amend I0IM3-15.Io IECAAC[kv[Wp Agrtemem-Fiv dM the Scope of Services, and any other costs approved by AHS. Each draw request submitted by the Consultant shall include copies of all third party invoices for any subcontractors or other consultants hired, any invoices for materials, any conditional and unconditional lien releases for invoices submitted by subcontractors or other consultants, and any forms or documents provided by AHS that AHS requires to be included as part of the Consultant's draw request. All funds draw requests shall be signed by the Consultant and approved and signed by an AHS Representative or an AHS designated agent. Upon receipt of the Consultant's draw request package, AHS shall review the draw request package and notify the Consultant whether it approves of the draw request within three (3) working days after receipt of the draw request. AHS shall issue a check or wire transfer to the Consultant equal to the total amount of those costs included in the draw request and approved by AHS. 5. Records Retention. Records, maps, field notes and supporting documents and all other records pertaining to the use of funds paid to the Consultant hereunder shall be retained by the Consultant and shall be made available to AHS for examination and for purposes of perforating an audit for a period of five (5) years from the date of expiration or termination of this Agreement or for a longer period, as required by law. Such records shall be available to AHS and to appropriate county, state or federal agencies and officials for inspection during the regular business hours of the Consultant. If the Consultant does not maintain regular business hours, then such records shall be available for inspection between the hours of 9 a.m. and 5 p.m. Monday through Friday, excluding federal and state government holidays. In the event of litigation or an audit relating to this Agreement or funds paid to the Consultant by AHS under this Agreement, such records shall be retained by the Consultant until all such litigation or audit has been resolved. 6. Indemnification. The Consultant shall defend, indemnify and hold harmless AHS, its officers, employees, representatives, and agents (collectively, the "Indemnified Parties") from and against any and all actions, suits, proceedings, claims, demands, losses, costs and expenses, including audit fees and other audit related costs, legal costs and attorneys fees, for injury or damage of any type claimed as a result of the acts or omissions of the Consultant, its officers, employees, subcontractors and agents, arising from or related to performance by the Consultant of the work required under this Agreement; provided, however, in no event shall the Consultant be liable to the Indemnified Parties in the event that any such actions, suits, proceedings, claims, demands, losses, costs and expenses result from the gross negligence, fraudulent conduct or willful misconduct of the Indemnified Parties, or any one of them. Moreover, the Consultant shall not be liable to the Indemnified Parties for defects not normally identified. Notwithstanding the foregoing, under no circumstances shall the Consultant be liable to the Indemnified Parties as a result of the failure of AHS to provide to the Consultant any amounts due to the Consultant in accordance with this Agreement, unless such failure was the result of gross negligence, fraudulent conduct or willful misconduct on the part of the Consultant. -3- P:UgeM I.d. 20IM03-15-10@ C Affi ..-Fiw d« Notwithstanding anything to the contrary provided in this Agreement, it is specifically understood and agreed, such agreement being a primary consideration for the execution of this Agreement by the Consultant, that there shall be absolutely no personal liability on the part of any shareholder, director, officer, manager, member or employee of the Consultant with respect to any of the terms, covenants and conditions of this Agreement. The Agency hereby waives all claims, demands and causes of action against the shareholders, directors, officers, members or employees of the Consultant in the event of any breach by the Consultant of any of the terms, covenants and conditions of this Agreement. 7. Insurance. The Consultant shall maintain insurance, as set forth in Exhibit "G" to this Agreement, throughout the term of this Agreement, or in lieu of this insurance coverage, the Consultant shall require its designated General Contractor to maintain such insurance as set forth in Exhibit "G" and name the Consultant, AHS and the Redevelopment Agency of the City of San Bernardino ("Agency") as Additional Insureds under such insurance. The Consultant shall remain liable to AHS pursuant to Section 6 above to the extent the Consultant is not covered by applicable insurance for all losses and damages incurred by AHS that are caused directly or indirectly through the actions or inactions, willful misconduct or negligence of the Consultant in the performance of the duties incurred by the Consultant pursuant to this Agreement. AHS shall maintain insurance against loss or damage to real property under an "all risk" or "special form" property insurance policy, which shall include coverage against all risks of direct physical loss, including loss by fire, lightning, terrorism, ordinance or law, and other risks normally included in the standard ISO special form (which shall include flood insurance if the property is located within a flood hazard area and which shall include earthquake insurance if the property is located in an area where earthquake insurance is customarily maintained for similar residential property). Such insurance shall be in amounts sufficient to prevent the Consultant from becoming a co-insurer under the policy, and in any event, after application of deductible, in amounts not less than 100%of the full insurable replacement cost. 8. Press Releases. Press or news releases, including photographs or public announcements, or confirmation of the same related to the work to be performed by the Consultant under this Agreement shall only be made by the Consultant with the prior written consent of AHS, which consent shall not be unreasonably withheld. This Section 8 does not apply to the advertising or other promotional materials used by the Consultant to sell the Rehabilitated Home. 9. Default and Remedies. A. The occurrence of any of the events listed in Exhibit "J", Section A.(1) through (7), shall after the giving of any written notice described therein, constitutes a default by the Consultant hereunder("Event of Default"). B. Upon the occurrence of an Event of Default, AHS may, in its sole discretion,take any of the actions listed in Exhibit"J", Section B.(1)through (7). -4- PNgeM"\AgeM Att hmems\Age Attac UkAgsmis- W3 010 01-1 510 ICAAC Ag mrn-Fis dm C. Any failure or delay by a party in asserting any of its rights or remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a default. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties under this Agreement are cumulative and the exercise by any party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. D. The Consultant has the right to implement the remedies in Exhibit "J", Section C.(1) and (2), upon the default or failure of AHS to meet any of its obligations under this Agreement without curing such failure within thirty (30) calendar days after receipt of written notice of such failure from the Consultant specifying the nature of the event or deficiency giving rise to the default and the action required to cure such deficiency. 10. Termination. A. This Agreement may be terminated by either party for any reason by giving the other party fifteen(15) calendar days' prior written notice. AHS shall pay the Consultant for all work authorized by AHS and completed,prior to the effective termination date. B. In the event of a termination of this Agreement, the Consultant shall provide all documents, notes, maps, reports, data or other work product developed in performance of the Scope of Services of this Agreement to AHS within ten(10) calendar days after such termination and without additional charge to AHS. C. In the event of the expiration or early termination of this Agreement for any reason, AHS shall pay and/or reimburse the Consultant for all services, materials and supplies as may have been furnished to AHS prior to the date of the termination of this Agreement. 11. Notice. All notices given hereunder shall be in writing. Notices shall he presented in person or by certified or registered United States Mail, return receipt requested, postage prepaid or by overnight delivery by a nationally recognized delivery service to the addresses set forth below. Notice presented by United States Mail shall be deemed effective on the third (3`d) business day following the deposit of such Notice with the United States Postal Service. This Section 11 shall not prevent the parties hereto from giving notice by personal service or telephonically verified fax transmission, which shall be deemed effective upon actual receipt of such personal service or telephonic verification. Either party may change their address for receipt of written notice by notifying the other party in writing of a new address for delivering notice to such party. CONSULTANT: Inland Empire Concerned African American Churches Attention: President 1777 West Baseline Road San Bernardino, CA 92411 -5- P.Ngmdas\Age a AftnhmentMgenda Att.cmems\Ag -Amend 1010W)-IMO CDwftp Ageemem-FinLL AHS: Affordable Housing Solutions of San Bernardino, Inc. Attention: Carey K. Jenkins, Chief Operating Officer 201 North`B" Street, Suite 301 San Bernardino, California 92401 Phone: (909) 663-1044 Fax: (909) 888-9413 12. Compliance with Law. The Consultant shall comply with all local, state and federal laws, including,but not limited to, environmental acts,rules and regulations applicable to the work to be performed by the Consultant under this Agreement. The Consultant shall maintain all necessary licenses and registrations for the lawful performance of the work required of the Consultant under this Agreement. 13. Nondiscrimination. The Consultant shall not discriminate against any person on the basis of race, color, creed, religion, natural origin, ancestry, sex, marital status or physical handicap in the performance of the Scope of Services of this Agreement. Without limitation, the Consultant hereby certifies that it will not discriminate against any employee or applicant for employment because of race, color, religion, sex, marital status or national origin. Further, the Consultant shall promote affirmative action in its hiring practices and employee policies for minorities and other designated classes in accordance with federal, state and local laws. Such action shall include, but not be limited to,the following: recruitment and recruitment advertising, employment, upgrading and promotion. In addition, the Consultant shall not exclude from participation under this Agreement any employee or applicant for employment on the basis of age,handicap or religion in compliance with state and federal laws. 14. Consultant and each Subcontractor are Independent Contractors. The Consultant shall at all times during the performance of any work described in the Scope of Services be deemed to be an independent contractor. Neither the Consultant nor any of its subcontractors shall at any time or in any manner represent that it or any of its employees are employees of AHS or any department, commission or subsidiary entity of AHS. AHS shall not be requested or ordered to assume any liability or expense for the direct payment of any salary, wage or benefit to any person employed by the Consultant or its subcontractors and vendors to perform any item of work described in the Scope of Services. The Consultant is entirely responsible for the immediate payment of all subcontractor liens. 15. Severability. Each and every section of this Agreement shall be construed as a separate and independent covenant and agreement. If any term or provision of this Agreement or the application thereof to certain circumstances shall be declared invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to circumstances other than those to which it is declared invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. -6- P:Ugm s\Apnde IsA hmmutA� 201M3-15-10 WP CDw pment Agmmem-Fim,dm 16. Entire Agreement. This Agreement constitutes the entire agreement between the parties. This Agreement supersedes all prior negotiation, discussions and agreements between the parties concerning the subject matters covered herein. The parties intend this Agreement to be the final expression of their agreement with respect to the subjects covered herein and a complete and exclusive statement of such terms. 17. Amendment or Modification. This Agreement may only be modified or amended by written instrument duly approved and executed by each of the parties hereto. Any such modification or amendment shall be valid, binding and legally enforceable only if in written form and executed by each of the parties hereto, following all necessary approvals and authorizations for such execution. Any such amendment or modification to be effective as to AHS must be approved by its officers or designated representatives. 18. Governing Law. This Agreement shall be governed by the laws of the State of California. Any legal action arising from or related to this Agreement shall be brought in the Superior Court of the State of California in and for the County of San Bernardino. 19. Non-Waiver. Failure of either party to enforce any provision of this Agreement shall not constitute a waiver of the right to compel enforcement of the same provision or any remaining provisions of this Agreement. 20. Assignment. This Agreement shall be assignable by the Consultant only if the Consultant obtains the prior express written consent of AHS, which consent may be withheld by AHS in its sole discretion. Notwithstanding anything to the contrary in this Agreement, no purported assignment of this Agreement shall be effective if such assignment would violate the terms, conditions and restrictions of any applicable governmental restrictions. AHS' consent to such assignment shall be expressly conditioned upon (i) the assignee's execution of such documents as required by AHS in its sole discretion, including, without limitation, any and all documents deemed necessary by AHS to provide for said assignee's assumption of all of the obligations of the Consultant hereunder and under any documents executed by the Consultant in connection herewith, and (ii) AHS' approval of the financial and credit-worthiness of such proposed assignee and the assignee's ability to perform all of the Consultant's obligations under this Agreement and all documents executed in connection herewith, as may be determined by AHS at its sole discretion. 21. Representations of Persons Executing the Agreement. The persons executing this Agreement warrant that they are duly authorized to execute this Agreement on behalf of and bind the parties each purports to represent. 22. Execution in Counterparts. This Agreement may be executed in one (1) or more counterparts, each of which will constitute an original. 23. Effectiveness of the Agreement as to AHS. This Agreement shall not be binding on AHS until signed by an authorized representative of the Consultant, and approved and executed by the Chief Executive Officer of AHS or his designee. The Agency shall provide -7- P,Upe aa\Agmda At hmemsl4 &Attnhmmu\AgmnsAmmd WIM03-15-10 IE CO dopmem Agnew -Fire doa the Consultant with written notice of the approval of this Agreement upon Community Development Commission of the City of San Bernardino ("Commission') action. 24. Conflicts of Interest. The Consultant hereby represents that it has no interests adverse to AHS or the Agency, at the time of execution of this Agreement. The Consultant hereby agrees that, during the term of this Agreement, the Consultant shall not enter into any agreement or acquire any interests detrimental or adverse to AHS or the Agency. Additionally, the Consultant hereby represents and warrants to AHS and the Agency that the Consultant and any partnerships, individual persons or any other party or parties comprising the Consultant, together with each subcontractor who may hereafter be designated to perform services pursuant to this Agreement, do not have and, during the term of this Agreement, shall not acquire any property ownership interest, business interests, professional employment relationships, contractual relationships of any nature or any other financial arrangements relating to AHS or the Agency, property over which AHS or the Agency have jurisdiction or any members or staff of AHS or the Agency that have not been previously disclosed in writing to AHS, and that any such property ownership interests, business interests, professional employment relationships, contractual relationships of any nature or any other financial arrangements will not adversely affect the ability of the Consultant to perform the services to AHS as set forth in this Agreement. AHS acknowledges and agrees that the foregoing shall not prohibit the Consultant or any affiliates thereof from managing or applying for funds granted by HUD pursuant to the NSP and allocated or awarded to jurisdictions outside of the City of San Bernardino, California, or from receiving a direct grant of funds from HUD pursuant to the NSP. 25. Non-Exclusivity. This Agreement shall not create an exclusive relationship between AHS and the Consultant for the services set forth in Exhibit "E" or any similar or related services. AHS may, during the term of this Agreement, contract with other consultants for the performance of the same, similar or related services as those that may be performed by the Consultant under this Agreement. AHS reserves the discretion and the right to determine the amount of services to be performed by the Consultant for AHS under this Agreement, including, not requesting any services at all. This Agreement sets forth the terms upon which any such services will be provided to AHS by the Consultant, if such services are requested by AHS, as set forth in this Agreement. 26. Consequential Damages and Limitation of Liability. AHS and the Consultant agree that except as otherwise provided in this Section 26, in no event will either be liable to the other under this Agreement for any damages including, but not limited to, special damages, loss of revenue, loss of profit, operating costs or business interruption losses, regardless of cause, including, breach of contract, negligence, strict liability or otherwise. The limitations and exclusions of liability set forth in this Section 26 shall apply regardless of fault, breach of contract, tort, strict liability or otherwise of the Consultant and AHS, their employees or subconsultants. 27. Business Registration Certificate. The Consultant warrants that it possesses, or shall obtain immediately after the execution and delivery of this Agreement, and maintain during the period of time that this Agreement is in effect, a business registration certificate pursuant to -g- PUgaMa4pMaAttdwmsVg da Mu mi\Ag� aW 3010b3-15-10 MCAACD bp=k Agrc M-FinaUM Title 5 of the City of San Bernardino Municipal Code, together with any and all other licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to be maintained by the Consultant to conduct its business activities within the City. [SIGNATURES ON FOLLOWING PAGE] -9- PM,Was\Age a AnachmcwMgnnda At amems�Amm NIOb3-15-10 MCMC De.a[o wAgrro -Fire.dm IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date indicated next to the authorized signatures of the officers of each of them as appear below. AHS Affordable Housing Solutions of San Bernardino, Inc. a California 501(c)(3)public benefit corporation Dated: By: Emil A. Marzullo, Chief Executive Officer Approved as to Form: By: Timothy J. Sab6j Agency Counsel CONSULTANT Inland Empire Concerned African American Churches a California 501(c)(3)public benefit corporation Dated: By: Name: Title: -10- P:V.geMMgeMaAWCh ts\ApMa Annc n(MU -AmeM 201"3-1540IE CD bpmem Agmx -Fiml.doc Exhibit"A" Legal Description -11- eWgenaas\AVWann.cnmermw¢maeAnach s\"s-nmana 201=3-13-10�MC n.v.wvmnm AA mend FlreLauc Order Number. RRI-3420554 Page Number. 6 LEGAL DESCRIPTION Real property In the City of San Bernardino,County of San Bernardino,State of California, described as follows: LOT 42,TRACT NO. 3538, IN THE CITY OF SAN BERNARDINO,COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,AS PER PLAT RECORDED IN BOOK 46 OF MAPS PAGE 56, RECORDS OF SAID COUNTY. APN: 0143-133-42 i i RrstAmerkan Title Exhibit°B" Total Development Cost Pro Forma -12- PIAV< s\ApnEe Ma whmMsVg LISA 301OU-1540 MCD [apm Agccmca Fiml Eoc EXHIBIT B TO DEVELOPMENT AGREEMENT TOTAL DEVELOPMENT COST PRO FORMA Acgusstton Costs List Price 44,500 Appraisal value before rehab Discount 445 Amount of discount allowed by the seller Purchase Price 44,055 Difference between List Price and Discount Closing Costs 531 Escrow and Title Fees, etc. Subtotal Acquisition Costs 44,586 Rehabilitation Costs Direct Rehabilitation 54,460 Cost estimated to complete scope of work Contingency 5,446 Property Management Fee 1. [ '13;592 Intermediary fixed fee for managing property Subtotal Rehabilitation Costs 2. 73,498 Indirect Costs Property Taxes 175 Property taxes incurred during holding period Homebuyer Qualifying Fee 3. 1.800 Intermediary fixed fee per homebuyer General Contractor Fee/Olacy Co. 4. 1: : ..:8,568 Intermediary Fee: fixed% of Dir. Rehab.+ Contingency Sales Commission 5. ' '.4,600 Intermediary Fee: % of EDA Final Price Sales Closing Costs 2,500 Escrow, title fees,taxes etc+ at sale closing. Insurance Subtotal Indirect Costs 6. 16,543 Financing Costs Construction Loan Interest 7. . 0 Interest paid on construction/rehab loan Loan Origination Fee 8. ` 0 Fee for construction/rehab loan Subtotal Financing Costs 9. TOTAL DEVELOPMENT COST 10 r 134,627 Sales Price Estimatd Rehabilitated Market Sales Price 75,000 Estimated value of home after rehabilitation Total Development Cost 11. 134,627 Total cost calculated above (No. 10) EDA FINAL SALES PRICE 12 75,000 The lower of market sales price or tot. dev. cost Intermediary Proceeds Property Management Fee 13. 13,592 From No. 1 above General Contractor Fee/O.H. 14. 8,568 From No. 3 above Homebuyer Qualifying Fee 15. 800 From No.4 above Sales Commission Fee 16. 4,500 From No. 5 above Reimbursement Const. Loan Int. 17. - From No. 7 above Reimbursement Loan Orign. Fee 18. - From No. 8 above TOTAL INTERMEDIARY PROCEEDS 19 27,460 Total of 13 through 18 above Exhibit"C" Rehabilitation Scope of Work - 13- P\AVMU SrAa A=hmen"\Agn"Anad ems\AgnYSAmmd 201=3-1510� CD OW=M Ag ent-Finil.doc EXHIBIT "C" TO DEVELOPMENT AGREEMENT REHABILITATION SCOPE OF WORK CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY HOUSING AND COMMUNITY DEVELOPMENT DEPARTMENT COST ESTIMATE WORKSHEET Date: January 27, 2010 Time: Location: 1519 W. Virginia Street, San Bernardino, CA 92411 Job Duration: Estimator: 1 TEMPORARY FACILTIES 2 Remove Chain Line Fence 1 EA 180.00 3 EA 4 Other 5 SITE WORK 6 Final Cleaning 150.00 7 Exterior Demolition 8 Grading SF 9 Excavation SF 10 Remove damaged flat concrete in rear yard 1 EA 1,500.00 11 Approach: Remove and Install New SF 12 Sidewalk: Remove and Install New SF 13 Hazardous Waste Remidiation 14 15 New Wrought Iron Fence LF 16 New Chain Link Fence LF 17 New Wood Fence 210 EA 3,150.00 18 Remove/Install Block Wall LF 19 LANDSCAPING 20 Remove and/or Trim Trees 1 EA 700.00 21 Install Sprinkler System 1 EA 1,500.00 22 Hydro Seed Yard } SF 23 Level Front Yard 1 EA 100.00 24 INTERIOR DEMOLITION 25 Repair all damaged and removed Interior 1 EA 1,200.00 Plaster and Drywall 26 Removal of other items 27 HAZARDOUS COMPONENTS ABATEMENT 28 Lead 29 Asbestos 30 Mold 31 Other 32 33 FOUNDATIONS 34 35 Replace soffit, gable and crawlspace screens 1 ALL All line items will be performed according to City of San Bernardino Economic Development Stabilization Program Building Standards 36 Replace and Install New Access Door EA 100.00 37 Construct New Access Well with Door EA 100.00 38 Footings SF 39 Concrete SF 40 FRAMING/WOOD 41 Studs LF 42 Other LF 43 EXTERIOR 44 Sandblast 1 BY 3,600.00 45 Colorcoat, repair all cracks, holes and } 1 46 damage areas BY 47 Wrap and Stucco SY 48 Insulation SF 49 EXTERIOR WINDOWS 50 Replace all windows with low-e 6 EA 2,040.00 51 Missing Putty EA 52 Install new screens EA 53 Replace broken glass panes EA 54 Remove and Install new aluminum EA 55 Block frame single hung or sliders 56 Replace front security door 1 EA 150.00 57 window EA 58 Aluminum -slider 4'x3' standard frame EA 59 Aluminum -slider 4'x3' block frame EA 60 Aluminum-slider hung 3'x4'standard EA 61 Aluminum-slider hung 3'x4' block EA 62 Aluminum-slider 5'x4'standard frame EA 63 Aluminum-slider 5'x4' block frame EA 64 Aluminum -single hung 3'x5' standard frame EA 65 Aluminum-single hung 3'x5' block EA 66 Aluminum-slider 3'x2'standard EA 67 Aluminum-slider 3'x2' block EA 68 Install vertical blinds on dining, LR &bedrooms 4 EA 300.00 69 EXTERIOR DOORS 70 Garage: Remove and Install ALL 650.00 71 Garage side door,jamg, casing & lockset 1 EA 325.00 72 Entry Door EA 325.00 Replace front door casing 1 EA 73 Replace mail boxt door 1 EA 74 ROOFING 75 Si. Complete tear off roof and sheathing 1 76 Installation of aluminized sheathe 1 77 Install compostion roof to code-30 Yr. 1 5,150.00 78 Replace all facia with new six inch fascia 1 450.00 79 Remove all Install gutter and 80 downspouts LF 180.00 81 INTERIOR CONSTRUCTION All line items will be performed according to City of San Bernardino Economic Development Stabilization Program Building Standards 82 Install R-30 Insulation in attic 1 EA 1,500.00 83 Drywall SF 84 Hollow-core interior door withhinges and 3 EA 465.00 Installation in an existing jamb. Hardboard wood-textured and embossed 85 Repair bedroom closet doors 1 FA 150.00 86 Shower doors EA 87 Tub Enclosure FA 88 Laundry door EA 89 Other EA 90 FLOORING 91 Carpet Allowance 1 SY 1,200.00 92 Ceramic Tile SF 93 Linoleum 1 SY 600.00 94 Hardwood SF 95 Other 96 PAINTING 97 Prep and paint interior complete two coats 1 EA 1,250.00 98 Stains(kitchen, bath and other cabinets) SF 99 Repair all damaged SF 100 Paint exterior wood 1 EA 850.00 101 CARPENTRY, CABINETS AND MILLWORK 102 Remove and Install new cabinets 1 2,850.00 103 Install and Replace Formica Counter tops 1 EA 650.00 104 Repair framing and plaster as necessary 1 FA 150.00 Repair hall closet doors&cabinets 1 EA 200.00 105 PLUMBING 106 Bathtub&Shower surround 1 EA 480.00 107 Lavatory 1 EA 250.00 108 Kitchen Sink 1 FA 160.00 109 Garbage Disposal 1 EA 80.00 110 Laundry Sink EA 50.00 111 Faucets kitchen, bath &shower 3 EA 350.00 112 Bathtubs EA 113 Tub Wall Kits EA 114 Shower EA 115 Water Heater 1 EA 400.00 116 Roto Root(clean)all drain lines to street ALL 150.00 117 Remove and Install new EA 150.00 118 Anti-syphon hose bibbs Replace cleanout cover at kitchen exterior 1 EA 50.00 Repair water leak at rear hose bib 1 EA 100.00 119 Interior water supply ball valve with 1 EA 150.00 pressure valve 120 HVAC 121 Install new system lincluding ducts& 1 FA 5,900.00 thermostat 122 Repair duct work LF All line items will be performed according to City of San Bernardino Economic Development Stabilization Program Building Standards 123 Repair HVAC Unit EA 124 Replace HVAC Unit EA 125 Remove wall heater 1 50.00 126 Other 127 ELECTRICAL 128 Remove and Install new light fixture 7 EA 3,700.00 129 Remove and Install new GFCI outlets EA 130 Remove and Install circuit/outlet EA 131 Install new GFCI outlet 3 EA 132 Remove and Install new circuit breaker EA 133 Remove and Install new wiring LF (included with Item#45) 134 Cover Plates EA 50.00 135 Smoke detectors EA 375.00 136 Other 137 138 MISCELLANEOUS 139 Install new medicine cabinet, mirror, towel 1 EA 100.00 140 &paper holders 141 Hood vent&fan, stove, dish washer, garbage 1,500.00 142 disposal and (ironing board cabinet-included in Item#49) 143 (allowance) 1 EA 162 Supervision 3,200.00 163 164 165 166 SUBTOTAL $48,960.00 Insurance Burden (General Liability&Workers Compenssation 2.5%) OVERHEAD & PROFIT (15%) $6,568.50 GRAND TOTAL GENERAL CONTRACTOR'S BASE BID $57,528.50 APPROVED OPTIONS 1 Remove Existing tile and Install Slate at Front Porch 650.00 2 Install Rear Yard Sprinklers 1,000.00 3 Repipe with Copper Plumbing 3,600.00 4 Replace Interior Base Moulding 250.00 OPTIONS TOTAL $5,500.00 All line items will be performed according to City of San Bernardino Economic Development Stabilization Program Building Standards Exhibit"D" Project Timeline - 14- P:UgetW"UgeeEeAnwh waUgeala 2010103-15-1, I MCU clupmem Agreement-Final ii: 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 C 9 C W O O O O O O O O O O O O O O O O O d O O O O O O O O O O O O O O O O O C C C •m d fG F cW V M M M G W G W ce % CD Q 0 H W Z Z W J m W IL U O F a W U `d t x W ' w w 0 m m O N ° d CL E 3 w U N = c d E d 2 > `0 r Q ro o d d W N '� m Q m o 0 0 0 m w 0 `o E `o _ -6 o o. d'o .0 0 - 0 — o LU J . E N c3 w Q O J O d N d U N O @ Q E U0 o w --o ' U Nw O O "O a d C d o "S ° o E E O (0 C -Fo Q 'V U m d m = O U N U = N N 3 a p a a C d O U 0 w W w ro —° c c ..Cc > E c u o a ° 210 O Z Y N A f I Exhibit"E" it Scope of Services I. Secure Property-Ensure that adequate locked fencing is installed on the perimeter of the site when necessary. Board up windows and outer doorways when necessary in order to prevent looting and vandalism of the Rehabilitated Home. 2. Property Management-Maintain utilities service, pay for monthly utilities bill(s) during the holding period (the Consultant will be reimbursed for this cost), interior and exterior appearance and marketability of the Rehabilitated Home as needed. 3. Approved Budget - The approved budget includes the estimate of the costs the Consultant expects to incur in order to complete the Scope of Work defined herein, provided in Exhibit aB" (the "Total Development Cost Pro Forma"). This budget estimate includes all costs associated with the rehabilitation of the Rehabilitated Home, including labor and materials for rehabilitation work, contingency, the Project Management Fee, the General Contractor Fee/Overhead, the Sales Commission Fee and the Homebuyer Qualifying Fee, includes the cost of enrolling the prospective buyer of the Rehabilitated Home deemed qualified by the Consultant under the conditions in this Agreement (the "Qualified Homebuyer") in a homebuyer education course administered by an AHS approved third party vendor or organization. 4. Project Timeline - The approved estimated timeline provided in Exhibit "D" sets forth the completion of the various steps involved in the acquisition, rehabilitation and resale of the Rehabilitated Home (the "Project Timeline"). The timeline starts from the point that the selected Consultant enters into the contract for the Rehabilitated Home with AHS through the close of sale to the Qualified Homebuyer. Major steps included in the timeline are construction period, completion of construction, issuance of the Certificate of Completion, start of marketing period for the home, projected number of weeks needed to identify a Qualified Homebuyer,escrow period and close of escrow. 5. Rehabilitation Scope of Work-The approved detailed, line item budget of the costs required to complete the rehabilitation scope of work agreed upon by AHS and the Consultant, provided in Exhibit "C" (the "Rehabilitation Scope of Work") serves as the Consultant's price bid for the Rehabilitation Scope of Work. 6. Manage Rehabilitation Work - Manage the rehabilitation of the Rehabilitated Home to include, but not be limited to: (i) ensuring that all tasks identified in the Rehabilitation Scope -15- PVge as44"a A hmmm4ge aAttac =s\ gmtrMUM WIOb3.15.10 MCMCOevelPomml Ag meni-Fiv]dm of Work are completed on a timely basis and all work performed satisfies AHS' standards; (ii) conducting weekly on-site project inspections; (iii) managing relationships with all subcontractors and vendors; (iv) obtaining all necessary permits required to complete the Rehabilitation Scope of Work; (v) ensuring that all rehabilitation work complies with all applicable municipal codes; (vi) submitting funds draw requests to AHS in a timely and accurate manner; (vii) paying all sub-contractors hired by the Consultant and all vendors providing materials used in the performance of the Rehabilitation Scope of Work on a timely and accurate basis; and(viii)administering both conditional and unconditional lien releases. 7. Marketing— Market the Rehabilitated Home through advertising and published promotional materials. Adhere to AHS' Affirmative Marketing Guidelines (Please see Exhibit 1c'). 8. Identify Qualified Homebuyer- Identify and present prospective homebuyers to be approved by AHS in writing, facilitate adequate homebuyer training and facilitate financing of property which may include Down Payment Assistance from the Agency, pre-qualify the homebuyer for eligibility to purchase the Rehabilitated Home and collect those application documents from the Qualified Homebuyer identified in Exhibit"I", Section"A". In addition, the Consultant is required to make best efforts to ensure that a fixed rate permanent loan secured by a first trust deed ("First Mortgage Loan") is made available to the Qualified Homebuyer at the lowest commercially available rate and most favorable terms. 9. Escrow—Work with the AHS selected title company and manage the escrow process through closing on behalf of the Qualified Homebuyer, ensure that all AHS sale documents are executed, notarized and recorded as needed. 10. Files — Maintain adequate files for the Rehabilitated Home, ensuring compliance with all Neighborhood Stabilization Program requirements, files shall include, but not be limited to, all documents listed in Exhibit"I", and all documents required to verify compliance with the Affirmative Marketing Guidelines stated in Exhibit "K", such as homebuyer waiting lists, copies of advertisements published in local and community newspapers,etc. 11. Appraisal — Work with the AHS designated Appraiser to determine the sales price for the Rehabilitated Home. 12. Environmental - Ensure that all environmental mitigation measures recommended by AHS' Environmental Consultant are carved out as part of the Rehabilitation Scope of Work. Provide proof of completion of these mitigation measures. -16- PVgenlas\Age aAncbmemsV,maANdunmU\AgnWaAmeM 1010\03.15.10 JEEAC�elogmem Ag manna-Finaldoc 13. Closing Requirements: A. The Consultant shall cause the closing of the sale of the Rehabilitated Home by following the procedures and complying with the requirements set forth in Exhibit "P", Section A. B. The Consultant shall cause the closing of any Agency Down Payment Assistance Loans, if applicable, in accordance with the procedures and requirements established in Exhibit"I", Section B. 14. Building Standards: The Consultant shall adhere to the building standards stipulated in Exhibit "L" when performing any rehabilitation work on the Rehabilitated Home. •17- P41geMedAgmdeAnechmen[eUgenda Atte -,.\Agm A.W 30101Y3-15-10 MCAAC Development Agrxmem-Fiwl d., Exhibit "F" AHS Representatives AHS Officers: Emil A. Marzullo, Chief Executive Officer Carey K.Jenkins, Chief Operating Officer Authorized AHS Representatives: Samuel Hughes, Consultant Fernando S. Portillo, Consultant -18- PWendaMge aAttIcI ennUgenda AtmchmeM]V1grmlLAmaM 30IM-1L10�MCIkvelopment Ag mw.Fiml Eac EXHIBIT "G" Insurance Requirements The Consultant and its General Contractor shall maintain insurance policies issued by an insurance company or companies authorized to do business in the State of California and that maintain during the term of the policy a "General Policyholders Rating" of at least A(v), as set forth in the then most current edition of"Bests Insurance Guide," as follows: (1) Automobile Insurance. Comprehensive automobile liability insurance of not less than One Million Dollars ($1,000,000) combined single limit per occurrence for each vehicle leased or owned by the Consultant or its subcontractors and used in performing work under this Agreement. (2) Worker's Compensation Insurance. Worker's compensation coverage in accordance with California workers' compensation laws for all workers under the Consultant's and/or subcontractor's employment performing work under this Agreement. (3) Liability Insurance. AHS requires comprehensive liability insurance, including coverage for personal injury, death,property damage and contractual liability, with a limit of at least One Million Dollars ($1,000,000), including products and completed operations coverage. Said insurance shall be primary insurance with respect to AHS and the Agency. The Consultant shall require and ensure that the Consultant's contractors include AHS and the Agency, as additional insureds on all general liability insurance covering work at the Rehabilitated Home. All insurance policies required of the Consultant or its contractors as provided herein, shall extend the subject insurance coverage to: "The City of San Bernardino, the Redevelopment Agency of the City of San Bernardino and Affordable Housing Solutions of San Bernardino, Inc., their officers officials, attorneys, agents, employees and volunteers" In lieu of directly obtaining the insurance coverage mentioned in this Exhibit"G", the Consultant can require its General Contractor to name the Consultant as an additional insured on the insurance policies obtained by the General Contractor for the purposes of satisfying the insurance requirements herein. Concurrent with the execution of this Agreement and prior to the commencement of any work by the Consultant, the Consultant shall deliver to AHS, copies of policies or certificates evidencing the existence of the insurance coverage required herein, which coverage shall remain in full force and effect continuously throughout the term of this Agreement. Each policy of insurance that the Consultant purchases in satisfaction of the insurance requirements of this Agreement shall name AHS,the Agency and if applicable, the Consultant as an additional insured and shall provide that the policy may not be -19- P:W¢eMaaU¢eotla AnxluvenbWmde A�Amped 2010b3-15-10 WE COeveW— A¢rwme. Vml drc cancelled, terminated or modified, except upon thirty (30) days prior written notice to AHS. Failure on the part of the Consultant to procure or maintain the insurance coverage required in this Exhibit "G" for fifteen (15) days or longer shall constitute a material breach of this Agreement pursuant to which AHS may exercise all rights and remedies set forth herein and, at its sole discretion, and without waiving such default or limiting the rights or remedies of AHS, procure or renew such insurance and pay any and all premiums in connection therewith and all monies so paid by AHS shall be reimbursed by the Consultant to AHS upon demand including interest thereon at the rate of ten percent (10%) per annum interest compounded annually from the date paid by AHS to the date reimbursed by the Consultant. The Agency shall have the right, at its election,to participate in and control any insurance claim adjustment or dispute with the insurance carrier. The Consultant's failure to assert or delay in asserting any claim shall not diminish or impair the rights of AHS against the Consultant or the insurance carrier. •20- PSS...n.nse..A.�rc.amemsUnmtl.M.chmmm\Amm�sAmW M10bI-15-10�CAAC Oevdoemem Amema wdm Exhibit "H" Consultant Payment and Reimbursement The Consultant shall be paid four (4) different fees by AHS. The four (4) fees that the Consultant is eligible to receive are: 1. Project Management Fee; 2. General Contractor Fee/Overhead; 3. Homebuyer Qualifying Fee; and 4. Sales Commission Fee. The amount of the fees to be paid to the Consultant by AHS for completing the Scope of Services detailed in Exhibit "E" is recorded in the Development Pro Forma attached as Exhibit"B"to this Agreement. The costs contained in the Development Pro Forma serve as the budget for the project, and the Consultant will be required to complete the work in accordance with that budget. This budget must be approved by AHS Representative(s) prior to the start of any rehabilitation work by the Consultant. Project Management Fee—The Project Management Fee is the compensation received by the Consultant for securing, maintaining and marketing the property. Some of the tasks that might be included under this function are such things as, fencing the property, mowing the lawn, clearing debris from the lawn, removal of graffiti, etc. The Project Management Fee may also include any marketing costs incurred by the Consultant, such as online or print advertising and website design, as approved by AHS. The Consultant is eligible to receive fifty percent (50%) of this fee upon commencement of the Rehabilitation Scope of Work, to be invoiced by the Consultant in the first funds draw request submitted by the Consultant to AHS. The remaining portion of this fee shall be payable to the Consultant after the rehabilitation work is completed, as evidenced by an AHS issued Certificate of Completion or a City issued Certificate of Occupancy, as applicable. The remaining portion of this fee shall be paid to the Consultant upon the close of the Rehabilitation Home Sales Escrow. General Contractor Fee/Overhead — The General Contractor Fee/Overhead is the total amount paid by AHS for management of the rehabilitation work as defined in Exhibit "E", Section 6. If the Consultant hires a General Contractor, then the Consultant is responsible for negotiating a fee structure with its hired General Contractor, but in no event, will AHS pay an amount above the General Contractor Fee/Overhead stated in this Agreement, nor will AHS pay a separate General Contractor Fee/Overhead to the General Contractor. The amount of this fee is a fixed fee for the rehabilitation work. The costs of the rehabilitation work shall include direct labor and materials involved in the performance of the Rehabilitation Scope of Work plus the budgeted contingency for this work. A portion of this fee commensurate with the percentage of completion of the Rehabilitation Scope of Work shall be paid with each funds draw request submitted by 21 P.Ueendas\AaWa Aftnh=ntstr Ma nhM1 nn\Aesmte- eM 3010b1-15.10 WO CDevelo0mmt Agrtemem-HM d. the Consultant. Any additional costs arising from unexpected conditions on the site or other unexpected difficulties must be written up as a change order and AHS Representative(s) must sign and approve the change order at the discretion of the AHS Representative(s) in order for these costs to be included as part of the overall rehabilitation costs, which would then increase the absolute amount of the General Contractor Fee/Overhead. Homebuyer Qualifying Fee — This fee is paid to the Consultant for identifying and assisting AHS in qualifying the prospective homebuyer for the sale of the Rehabilitated Home. This is a one-time fixed fee. This fee will include the Consultant's reimbursement for any costs associated with the prospective homebuyer's "Homebuyer Education Training"and payments to third party service providers, such as Neighborhood Housing Services of the Inland Empire ("NHSIE"), or another such service provider. The Homebuyer Qualifying Fee shall be paid upon the close of the Rehabilitated Home Sales Escrow. Sales Commission Fee — The sales Commission Fee represents the payment received by the Consultant for managing the Rehabilitated Home Sale Escrow process on behalf of AHS to assist the Qualified Homebuyer through the Rehabilitated Home Sales Escrow process. The amount of this fee is calculated as a fixed percentage of the final sales price to the Qualified Homebuyer. The Sales Commission Fee shall be paid upon the close of the Rehabilitated Home Sales Escrow. -ZZ_ P UgeM Agenda Anwc ente Benda At hmentMgMSAmend 301PD3-1}10I MC Development Agreement-Fim A. Exhibit"I" Closing Requirements A. Sale of Rehabilitated Properties The Consultant shall initiate the sale of a Rehabilitated Property to a Qualified Homebuyer by submitting to the Agency a purchase/sale agreement executed by the prospective homebuyer, verifying documentation from the prospective buyer with respect to residency, income and the property condition as the Agency, or its designee, may reasonably request (collectively, "Homebuyer Application"). [NOTE: NSP regulations limit the income on NSP funded properties. The Agency should be involved in the negotiation of sales documents of the properties.] The Homebuyer Application shall consist of the following information in the form provided or approved by the Agency: i. Last Three (3) Years Tax Returns (State and Federal) (1040's) signed with W2's attached. Two (2) Current Pay Stubs for all household members who will reside in the home. ii. A California Association of Realtors California Residential Purchase Agreement fully executed by the prospective homebuyer (With Agency Addendum(s)attached). iii. Neighborhood Stabilization Program Homebuyer Application. iv. Income Certification. V. Application Affidavit— Completely filled out and signed by the prospective homebuyer. vi. Signed Lead-Base Paint Disclosure Form (for homes built prior to 1978). The Agency does not supply this form. vii. Copy of Employment Verification for each Homebuyer. viii. 2 Months of Current Bank Statements. ix. 3-Year Rental History. X. Homebuyer Education Certificate from NHSIE or another like service provider. V thin seven (7) calendar days after the receipt of the Homebuyer Application by the Ae ncy, Agency Staff will notify the Consultant of approval or denial of the prospective ho iebuyer's eligibility and confirmation of such eligibility by means of a Reservation -23- P. ndu\Age Amchmemskfte A[mc s\Agnnb-A WM10 3-15-10 MCAAC Development Agreement-Fimldm Letter (all reservations will be automatically valid for sixty (60) calendar days from the date of confirmation) [NOTE: The Agency should execute the sales agreement]. Upon notification by Agency Staff of the prospective homebuyer's eligibility, the Consultant shall open an Escrow account with an Agency approved escrow company (the "Escrow Holder"). The Agency shall famish the Escrow Holder with executed escrow instructions. The Consultant shall not permit any Escrow to close for the sale of a Rehabilitated Property until and unless the escrows instructions executed by the Agency (and countersigned, if requested by Agency Staff, by the First Trust Deed Lender) have been submitted to the Escrow Holder. As provided in the Agency escrow instructions, Escrow shall also not close unless and until: 1. The Escrow Holder holds the following documents : (1) Agency Notice of Affordability Restrictions executed by the Qualified Homebuyer and notarized; and (2) a grant deed with respect to the Rehabilitated Property purchased by the Qualified Homebuyer, executed and acknowledged by the selling entity; and 2. Proof of hazardous insurance for the full replacement cost of the Rehabilitated Property is provided to the Agency naming the Agency as additionally insured; and 3. Rehabilitation of the Rehabilitated Property shall have been completed in accordance with this Agreement and with all applicable City permits and ordinances, and the City shall have issued a final certificate of occupancy for the Rehabilitated Property; and 4. The Consultant's execution and delivery to the Agency of the Sub- agreement. No Event of Default shall exist under this Agreement or under any agreement or instrument relating to any financing for the Project or the Rehabilitated Property. Within seven (7) calendar days after the receipt of the Homebuyer Application by AHS, the AHS Representative(s) will notify the Consultant of approval or denial of the prospective homebuyer's eligibility and confirmation of such eligibility by means of a Reservation Letter (all reservations will be automatically valid for sixty (60) calendar days from the date of confirmation) [NOTE: AHS should execute the sales agreement]. Upon notification by the ABS Representative(s) of the prospective homebuyer's eligibility, the Consultant shall open the Rehabilitation Home Sales Escrow account with an AHS approved escrow company (the "Escrow Holder"). AHS shall furnish the Escrow Holder with executed escrow instructions. The Consultant shall not permit the Rehabilitation Home Sales Escrow to close until and unless the escrow instructions executed by AHS (and countersigned, if requested by AHS Representative(s), by the First Trust Deed Lender) have been submitted to the Escrow Holder. As provided in the AHS escrow instructions, Escrow shall also not close unless and until: -24- PWgeMasVgeM A mMOs ndaA nhmemsUgrmt>AmeM 201M-15-10 MCAAC Oe ftmem Agrsmmi-Fiml dam 1. The Escrow Holder holds the following documents : (1)Agency Notice of Affordability executed by the Qualified Homebuyer; and (2) a grant deed with respect to the Rehabilitated Home, executed and acknowledged by the selling entity(the"AHS Grant Deed"); and 2. Proof of hazardous insurance for the full replacement cost of the Rehabilitated Home is provided to AHS naming AHS and the Agency as additionally insured; and 3. The Rehabilitation Scope of Work shall have been completed in accordance with this Agreement and with all applicable City permits and ordinances, and AHS shall have issued a Certificate of Completion or the City shall have issued a Certificate of Occupancy for the Rehabilitated Home, as applicable; and No Event of Default shall exist under this Agreement or under any agreement or instrument relating to any financing for the Rehabilitated Home. B. Down Payment Assistance In the case where the Qualified Homebuyer needs down payment assistance to facilitate the purchase of the Rehabilitated Home, the Consultant shall assist the Qualified Homebuyer in applying for such assistance from the Redevelopment Agency of the City of San Bernardino's ("Agency") Homebuyer Assistance Program ("HAP"), at the Qualified Homebuyer's election. The requirements and the application process for obtaining such assistance are described fully in the Agency's HAP Program Manual, which can be obtained at the Agency's offices. The process for applying for such assistance is summarized below, but in the event that a conflict exists between the description of the HAP Program contained herein and the HAP Program Manual, the requirements and procedures described in the HAP Program Manual shall prevail. In order to reserve Agency Down Payment Assistance Loan assistance to facilitate the purchase of the Rehabilitated Home, the Consultant must include in the Homebuyer Application described in Section A, herein, the following information in the form provided or approved by AHS and the Agency: i. Verification for Applicant Eligibility, completely filled out and signed by the prospective homebuyer and the First Trust Deed Lender; ii. Copy of Credit Report. If the prospective homebuyer lacks credit history or scores are lower than 640, please provide secondary credit such as a landlord letter or utility statements; and iii. Agency Down Payment Assistance Loan Worksheet. .25- ?MpnE \AgcM At�\ApMn All=l tsl gmgaA 2010W1-15-10IECMCD Dv Pmnt A®eement-Fi"I.&C The obligation of the Agency to fund each Agency Down Payment Assistance Loan shall be subject to satisfaction of all of the conditions stated in Section A,herein, together with the following conditions (collectively,the"Closing Conditions"): (a) The Escrow Holder holds the following documents: 1) the Qualified Homebuyer Agency Down Payment Assistance Loan Agreement executed by the Qualified Homebuyer and the Agency; (2) the Agency Promissory Note executed by the Qualified Homebuyer in favor of the Agency in the same amount as the Agency Down Payment Assistance Loan; and (3) the Agency Subordinate Deed of Trust and Assignment of Rents acknowledged and executed by the Qualified Homebuyer in favor of the Agency; and (b) Any one of the following title companies whether(i)First American Title, (ii) North American Title, (iii) Chicago Title, (iv) Stewart Title or(v) another title insurer approved by the Agency ("Title Company") shall have assured the Agency in writing that with respect to each Agency Down Payment Assistance Loan, the Agency shall receive upon recordation of the Agency Subordinate Deed of Trust and Assignment of Rents a CLTA lenders policy of title insurance in the amount of the Agency Down Payment Assistance Loan Note (the "Agency Title Policy") insuring the priority of the Agency Subordinate Deed of Trust and Assignment of Rents, subject only to the First Mortgage Loan and other exceptions approved by the Agency following the Agency's prior review of a preliminary title report for the Rehabilitated Home, which preliminary title report must be received by the Agency no later than seven (7) calendar days after the approval by the Agency of the i Homebuyer Application; and 1 (d) The Agency shall have reviewed and approved the Qualified Homebuyer for the Agency Down Payment Assistance Loan in the Agency's sole discretion, and the eligibility conditions in the applicable sections of the HAP Manual shall have been satisfied. In accordance with the Neighborhood Stabilization Program, the Rehabilitated Home is not restricted for sale to first-time homebuyers; therefore, these properties are exempt from the requirements in Section II. B. 1. of the HAP Manual; and (e) No stop notice or mechanics' lien shall have been filed against the Rehabilitated Home unless discharged as provided by law. •26- P:I pg s4geMa ALLee WSVge RAtWh=nlsUg tl AmcMN IU3-1S10 IECAACO ebpmM Agce W-FimLdac EXHIBIT "J" Events of Default and Remedies A. Events of Default The occurrence of any of the following shall, after the giving of any notice described therein, constitute a default by the Consultant hereunder("Event of Defaulf): (1) The failure of the Consultant to pay or perform any monetary covenant or obligation under the Agreement or any of the documents executed in connection herewith, without curing such failure within ten (10) calendar days after receipt of written notice of such default from AHS (or from any party authorized by AHS to deliver such notice as identified by AHS in writing to the Consultant); (2) The failure of the Consultant to perform any non-monetary covenant or obligation hereunder or any of the documents executed in connection herewith that results in a material adverse effect to AHS, without curing such failure within thirty (30) calendar days after receipt of written notice of such default from AHS (or from any party authorized by AHS to deliver such notice as identified by AHS in writing to the Consultant) specifying the nature of the event or deficiency giving rise to the default and the action required to cure such deficiency; provided, however, that if any default with respect to a non-monetary obligation is such that it cannot be cured within a thirty-day period, it shall be deemed cured if the Consultant commences the cure within said thirty-day period and diligently prosecutes such cure to completion thereafter. Notwithstanding anything herein to the contrary, the herein described notice requirements and cure periods shall not apply to any Event of Default described in Sections (3)through (6)below; (3) The falsity of any representation or breach of any warranty or covenant made by the Consultant under the terms of this Agreement or any documents executed in connection herewith; (4) The Consultant or any constituent member or partner, or majority shareholder, of the Consultant shall (a) apply for or consent to the appointment of a receiver, trustee, liquidator or custodian or the like of its property, (b) fail to pay or admit in writing its inability to pay its debts generally as they become due, (c) make a general assignment for the benefit of creditors, (d) be adjudicated a bankrupt or insolvent or (e) commence a voluntary case under the Federal bankruptcy laws of the United States of America or file a voluntary petition that is not withdrawn within ten (10) calendar days after the filing thereof or an answer seeking an arrangement with creditors or an order for relief or seeking to take advantage of any insolvency law or file an answer admitting the material allegations of a petition filed against it in any bankruptcy or insolvency proceeding; -27- P.UgendastAgeMa Aflchmentmgende Atmcmmt5� gmtvAeM 301MA3-15-10 MCAAC Derelopmem Ag ment-Fire.dm (5) If without the application, approval or consent of the Consultant, a proceeding shall be instituted in any court of competent jurisdiction, under any law relating to bankruptcy, in respect of the Consultant or any constituent member or partner, or majority shareholder, of the Consultant, for an order for relief or an adjudication in bankruptcy, a composition or arrangement with creditors, a readjustment of debts, the appointment of a trustee, receiver, liquidator or custodian or the like of the Consultant or of all or any substantial part of the Consultant's assets, or other like relief in respect thereof under any bankruptcy or insolvency law, and, if such proceeding is being contested by the Consultant, in good faith, the same shall (a) result in the entry of an order for relief or any such adjudication or appointment, or (b) continue undismissed, or pending and unstayed, for any period of ninety(90) consecutive calendar days; (6) Voluntary cessation of the construction activities, active property management, or marketing activities related to the Rehabilitated Home for a continuous period of more than ten (10) calendar days or the involuntary cessation of the above named activities in accordance with this Agreement for a continuous period of more than thirty (30) calendar days; (7) A mechanic's lien or any other type of encumbrance on AHS' property resulting from the Consultant's failure to fulfill its financial or other contractual obligations with respect to any of its vendors or subcontractors is not removed within ten (10) calendar days after receipt of written notice of such default from AHS (or from any party authorized by AHS to deliver such notice as identified by AHS in writing to the Consultant). B. AHS Remedies: Upon the occurrence of an Event of Default hereunder, AHS may, in its sole discretion,take any one or more of the following actions: (1) Withhold any payment of fees or reimbursement of eligible expenses to the Consultant unless and until the Event of Default (if curable) is cured or this Agreement is terminated in accordance with Section 9 of this Agreement; (2) Demand reimbursement from the Consultant for any payments made to it by AHS for which the contracted work product was not satisfactorily delivered by the Consultant; (3) Confiscate any material or other work product purchased or produced by the Consultant during the course of completing the Scope of Work indicated in this Agreement; (4) Take any and all actions and do any and all things which are allowed, permitted or provided by law, in equity or by statute, in the sole discretion of AHS, to enforce performance and observance of any obligation, agreement or covenant of the Consultant under this Agreement or under any other document executed in _2g_ PU,M. ,M.AnsOme.m,.de AnecM1memsUgmms-Ammtl 201M05-15-10 D:CAAC Developmem A,—.-Fin da connection herewith; (5) Upon the occurrence of an Event of Default which is occasioned by the Consultant's failure under this Agreement to pay money, AHS may, but shall not be obligated to, make such payment. If such payment is made by AHS, the Consultant shall deposit with AHS, upon written demand therefore, such sum plus interest at the rate of ten percent (10%) per annum with interest to be compounded annually. In either case, the Event of Default with respect to which any such payment has been made by AHS shall not be deemed cured until such repayment (as the case may be) has been made by the Consultant; (6) Upon the occurrence of an Event of Default described in Section A.(4) or A.(5) hereof, AHS shall be entitled and empowered by intervention in such proceedings or otherwise to file and prove a claim for any amount owing to AHS under this Agreement and unpaid and, in the case of commencement of any judicial proceedings, to file such proof of claim and other papers or documents as may be necessary or advisable in the judgment of AHS and its counsel to protect the interests of AHS and to collect and receive any monies or other property in satisfaction of its claim. C. AHS Default and Consultant Remedies: Upon fault or failure of AHS to meet any of its obligations under this Agreement without curing such failure within thirty(30) calendar days after receipt of written notice of such failure from the Consultant specifying the nature of the event or deficiency giving rise to the default and the action required to cure such deficiency,the Consultant may, as its sole and exclusive remedies: (1) Bring an action in equitable relief seeking the specific performance by AHS of the terms and conditions of this Agreement or seeking to enjoin any act by AHS which is prohibited hereunder; and/or (2) Bring an action for declaratory relief seeking judicial determination of the meaning of any provision of this Agreement. Without limiting the generality of the foregoing, the Consultant shall in no event be entitled to, and hereby waives, any right to seek indirect or consequential damages of any kind or nature from the Consultant arising out of or in connection with this Agreement, and in connection with such waiver the Consultant is familiar with and hereby waives the provisions of Section 1542 of the California Civil Code which provides as follows: "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR." -29- P:UVnduUgendaA hnnewiWcMa A=lnnientaV rAneai20IM-15-10]CMC➢eveinpmena Agnaaam-Final.doc EXHIBIT "K" Affirmative Marketing Requirements In accordance with the California Fair Employment and Housing Act,the Consultant acting as agent for AHS, the owner and seller of the Rehabilitated Home, in marketing the sale of the Rehabilitated Home, must adhere to the following affirmative marketing guidelines in order to create awareness for the general public and certain community groups as to the availability of residential properties designated for lower- and/or moderate-income households. 1. Provide an affirmative marketing plan and procedures for the sale of the Rehabilitated Home. Procedures to be used must identify how persons in the housing market area who are not likely to apply for the housing without special outreach shall be informed and made aware of available affordable housing opportunities. 2. The Consultant's Affirmative Marketing Plan shall consist of a written marketing strategy designed to provide information and to attract eligible persons in the housing market area to the Rehabilitated Home without regard to race, color, national origin, sex, religion, marital and familial status, disability, medical condition, sexual orientation, or ancestry. It shall describe initial advertising, outreach (community contacts) and other marketing activities, which will inform potential buyers of the availability of the Rehabilitated Home. It shall also outline an outreach program which includes special measures designed to attract those groups identified as least likely to apply without special outreach efforts (because of existing neighborhood racial or ethnic patterns, location of housing or other factors) and other efforts designed to attract persons from the total eligible population. 3. Insert Equal Housing Opportunity logotype, statement or slogan on all written outreach tools (i.e., signs, advertisements, brochures, direct mail solicitations, press releases, etc.) 4. In addition to the above, the Affirmative Fair Housing Marketing Plan shall outline: a. Commercial Media to be used (i.e., community newspapers and non-English language newspapers, radio, television, billboards, religious or local real estate publications, etc.). b. Marketing efforts to be used (i.e., brochures, letters, handouts, direct mail, signs, etc.) c. Community contacts to supplement formal communications media for the purpose of soliciting those groups least likely to purchase the available housing without special outreach efforts. They should be individuals or organizations (i.e., service agencies, community organ zations, places of worship, etc.) that -30- P;WgcM \A,gm aAttuh=msUpe RAttwhm tsVg s-Am 2010W3-15-10�CD . .roam Agrte -FmLd have direct and frequent contact with those identified as least likely to apply. The contacts should also be chosen on the basis of their positions of influence within the general community and the particular target group. AHS and its designees must agree to establish and maintain contact with the identified contacts. 5. The Consultant shall maintain records of all prospective homebuyer applicants, including their race, ethnicity and gender, reasons for denial of application, placement on a waiting list,etc. 6. The Consultant shall also provide for the selection of applicants from a written waiting list in the chronological order of their application, insofar as is practicable, and provide prompt written notification to any rejected applicants of the grounds for any rejection. 7. The Consultant shall apply for first trust deed financing to be applied towards the purchase of the Rehabilitated Home from a lender listed on the Agency's or AHS' Approved Lender List. -31- P:4lgu asUgeMa Atuchmmta pg aAlu h=W, WWrAmeoE MIU3-15101ECAAC Dm pm tAg =N-Fl c EXHIBIT "Lf5 Building Requirements -32- PWgendas\ASMaM hmems\A da Mnhmm1s41ynaYA 20IM-15-10 MCMCO elop MAC and-Fis ,dm 1 \ ' 11 fn'► "1 1 I 1� I � i 1 "dU �l Ul l�U1 111110 ECONOMIC DEVELOPMENT AGENCY Neighborhood Stabilization Program "Minimum Building Standards" June 2009 Table of Contents 1000—General Requirements...................................................................................................................... 1 1010—General............................................................................................................................................ 1 1020-Terminology.................................................................................................................................... 1 1030-General Quality Requirement s..................................................................................................... i 1040-Substitutions/Alternatives............................................................................................................ 2 1050-Optional Green Building Practices..............................................................................................3 1100-Temporary Facilities and Temporary Controls..............................................................................3 1110—Site Usage......................................................................................................................................3 1200-Project Closeout.................................................................................................................................4 1210—Final Cleaning................................................................................................................................4 1220—Operations Manuals and Warranties..........................................................................................5 1230—Systems Startup............................................................................................................................5 2000-Building Sitework/Site Preparation................................................................................................5 2010-Site Clearing and Demolition........................................................................................................5 2020-Site Earthwork................................................................................................................................5 2040—Site Hazardous Waste Remediation ...........................................................................................6 2100 -Site Improvements.............................................................................................................................6 2110—Roadways, Driveways,and Walkways.......................................................................................6 2150—Fencing...........................................................................................................................................7 2150 -Landscaping...................................................................................................................................8 2200 Site Civil/Site Utilities.........................................................................................................................8 2210 -Utilities.............................................................................................................................................8 3100-Selective Demolition..........................................................................................................................8 3110-Building Elements Demolition......................................................................................................8 3120 -Hazardous Components Abatement..........................................................................................10 4000-Foundations.......................................................................................................................................10 4010-Standard Foundations..................................................................................................................10 4030-Slabs on Grade..............................................................................................................................11 5000-Superstructure...................................................................................................................................11 5010—Framing/Wood............................................................................................................................11 5100-Exterior Enclosure............................................................................................................................12 5110-Exterior Walls.................................................................................................................................12 5111 -Stucco I Plaster.........................................................................................................................12 5112- Exterior Insulation....................................................................................................................12 5113-Caulking and Joint Sealants...................................................................................................13 5120 - Exterior Windows..........................................................................................................................13 5130 - Exterior Doors/Garage Doors....................................................................................................14 5140-Flashing...........................................................................................................................................16 5200-Roofing ..............................................................................................................................................16 5210 - Roof Coverings..............................................................................................................................16 5220-Gutters and Downspouts............................................................................................................16 6000- Interior Construction ........................................................................................................................17 6010- Partitions/Ceilings......................................................................................................................17 6011 -Interior Insulation.....................................................................................................................17 6012 -Drywall........................................................................................................................................17 6020 -Interior Doors.................................................................................................................................18 7000-Finishes..............................................................................................................................................18 7010-Ceramic Tile..................................................................................................................................18 7020- Floor Finishes................................................................................................................................19 7030-Ceiling Finishes.............................................................................................................................20 7040 -Painting...........................................................................................................................................20 8100-Furnishings.......................................................................................................................................24 8110-Carpentry,Cabinets, and Millwork.............................................................................................24 9000-Plumbing, Mechanical,Electrical...................................................................................................25 9010-Plumbing Fixtures.........................................................................................................................25 9020-Domestic Water Distribution.......................................................................................................26 9030-Sanitary Waste...............................................................................................................................26 9100-Heating,Ventilating,and Air Conditioning(HVAC)......................................................................27 9110-Heating and Ventilating...............................................................................................................27 9200-Fire Protection Systems..................................................................................................................28 9210-Fire Protection Specialties..........................................................................................................28 9300-Electrical Systems.............................................................................................................................28 9310-Electrical Service and Distribution.............................................................................................28 City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 1 of 28 1000 —General Requirements 1010 —General .1. These Minimum Building Standards (Standards) have been developed by the City of San Bernardino Economic Development Agency(EDA)for use on the Neighborhood Stabilization Program (NSP). .2. These Standards shall apply to all properties covered by the NSP. .3. All materials, supplies, costs of permits, and labor to complete the specified rehabilitation or repairs, shall be the responsibility of the Builder/Developer unless specified otherwise by the EDA. .4. Any drawings or sketches which may be furnished by the EDA or required by the Builder/Developer are intended to clarify or further describe the propert. Should the Builder/Developer find discrepancies in, or omissions from, these drawings or sketches or should he/she be in doubt as to their meaning, they should contact the EDA for clarification. Because of the nature of work being done, some details of sketches or drawings may be"typical' and grades, dimensions and exact existing conditions must be verified at the property before commencing work. .5. Any additional work that EDA want the Builder/Developer to do should be done after completion of the Rehabilitation work, if at all possible. A separate contract will be signed between the EDA and Builder/Developer before the work is to start. 1020 -Terminology .1. When used in these Standards, the following definitions shall apply: A. Install -The item referred to shall be installed with all necessary hardware, trim, fittings, and material necessary to make ready for use. All material shall be new. B. Replace -The existing item referred to shall be removed prior to installation of the new item. C. Trim -When used in conjunction with painting, includes roof vents and pipes, eaves, molding, casing, underside of all doors, and any items other than walls and ceilings. D. Rehabilitation -All repairs to or replacement of present elements of an existing building, such as windows, stairs, flooring, or wiring; rearrangement of rooms by the relocation of partitions or by the installation of new bathrooms and kitchens; or the general replacement of the interior of a building. This may or may not include changes to structural elements such as floor systems, columns or load bearing interior or exterior walls. 1030 -General Quality Requirements .1. In order to establish standards of quality, the Standards may refer to certain products by name and/or catalog number. This procedure is not to be construed as eliminating from competition other products of equal or better quality by other manufacturers, at approximately the same cost. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 2 of 28 .2. All material and each part or detail of the work shall be subject at all times to inspection by the EDA, and the Builder/Developer will hold to the true intent of the Standards in regard to-quality of material, workmanship, and the diligent execution of the contract. .3. Materials installed shall be of such kind and quality to ensure that the dwelling will provide acceptable durability, economy of maintenance and adequate resistance to weather, moisture, corrosion and fire. The EDA may request evidence of a material's compliance with the requirements of the structure's plans and specifications and these Standards. Product labels are considered acceptable evidence. A. The EDA may require that the Builder/Developer carry out a durability evaluation or conduct a building assessment to determine if the materials to be used comply with any green strategies. .4. All work shall be executed by skilled craftsman, experienced in their trade, and in accordance with accepted practices of their trade. All work shall be of the highest standards and methods. .5. Unless specifically noted otherwise, all construction methods and materials used shall conform to the California Building Code as adopted by the City of San Bernardino and shall be done in accordance with any other ordinances passed and adopted by the City of San Bernardino (i.e., zoning codes, fire codes, etc.). This includes all repairs, finishes, fixtures, and new work. .6. All plumbing and gas work shall be done in accordance with the Uniform Plumbing Code as adopted by the City of San Bernardino. .7. All heating and cooling work shall be done in accordance with the Uniform Mechanical Code as adopted by the City of San Bernardino. .8. All electrical work shall be done in accordance with the national Electric Code as adopted by the City of San Bernardino. .9. Where work involves colors, the Builder/Developer will provide the EDA with samples of all colors for the particular item (roofing, stucco, paint, stain, flooring, etc.), and the EDA will select the color and finish by initialing the color sample and state for whaUwhere it will be used (exterior, interior, fascia, soffit,trim, doors, ceiling, walls, etc.). A maximum of three colors each may be selected for exterior and interior. .10. If the EDA has agreed to correct certain specified existing code violations,which are to be excluded from the work done by the Builder/Developer, the work on such violations, if done at the same time the Builder/Developer is on the job, shall be coordinated by the EDA and Builder/Developer so as to provide for a smooth flow of the work. 1040 -Substitutions/Alternatives .1. The Builder/Developer shall furnish a list of any proposed desired substitutions prior to the signing of the contract. .2. These standards are intended to encourage the use of new or innovative technologies, methods and materials. Alternatives and non-conventional or innovative methods and materials shall be equivalent to these standards in the areas of quality, durability, economy of maintenance, operation and usability. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 3 of 28 .3. Certain conditions in the geographic area or on the site may justify modification of specific standards, or make compliance with the standards impracticable or impossible. In these cases, approval by the EDA is required. 1050- Optional Green Building Practices .1. Builder/Developers are encouraged to incorporate any green building practice that offers an opportunity to create environmentally sound and resource-efficient buildings. .2. In an effort to encourage modem, green building, and energy-efficiency improvements, Builder/Developers are encouraged to incorporate HUD's healthy homes interventions including these seven steps ensuring housing is made and kept: A. Dry. Ensure proper drainage away from housing, clean repair gutters and downspouts, repair leaks seal roofs and windows. B. Safe: Install safety devices on doors, cabinets, window blinds and outlets, provide adequate storage for all poisonous items out of reach of children and labeled in the proper containers; install smoke detectors and carbon monoxide detectors; have appropriate fire extinguishers available. C Well-ventilated Service and maintain heating and cooling systems;provide exhaust fans for kitchens, bathroom and dryers to the outside to reduce mold, change furnace filters. D. Pest-free: Provide proper storage and disposal for food products, caulk and seat holes, use least toxic pest management methods. E. Contaminant-free. Remove lead based paint hazards properly;provide test kits for radon, reduce volatile organic compounds in paint, carpet, etc. F. Clean Install dust walk-off systems in entry ways;provide smooth, cleanable surfaces;provide effective storage space and containers; choose flooring that is easy to clean. G. Well-maintained Important maintenance calendar for inspecting, cleaning, repairing, replacing housing components/systems. .3. Throughout these Standards, the EDA has inserted opportunities in which green building practices can be achieved. 1100 -Temporary Facilities and Temporary Controls 1110— Site Usage .1. All temporary facilities and controls required for the project shall be provided by the Builder/Developer. .2. The Builder/Developer will provide daily clean-up of all debris related to the work of the project as required. Provide a dumpster on site for the duration of construction for disposal of construction debris. All work area(s) shall be left broom clean at the end of each work day. .3. Immediately, at the end of " e work, the Builder/Developer shall remove all of their debris, rubbish, refuse, an nused material from the property and street. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 4 of 28 .4. The Builder/Developer will provide all temporary 6-foot high chain link safety and security fencing for construction operations required for the work of this project. Fencing shall conform to the following specifications: A. 6-foot high chain link fence with 80% or greater green or black wind screen/mesh. i B. Mesh shall be attached with hog rings. C. Includes man and vehicle gates where required. D. Gateposts shall be of size to accommodate the size of opening and its intended purpose. E. All gateposts shall be cored or driven into the ground. F. Core holes shall be filled with concrete once temporary fence is removed. Slurry seal all in A/C areas. G. Fencing shall be set back beyond site work improvements. .5. On-site materials pertaining to the project and partially completed roofs shall be temporarily protected during inclement weather. It is the responsibility of the Builder/Developer to maintain a watertight condition to prevent any water damage to the building once the roof has been removed until it has been completely patched. .6. The Builder/Developer shall provide temporary power as needed for the project. 7. Provide and maintain dust and erosion control throughout the duration of the work and as required for the work of the project. .8. The Builder/Developer shall provide protection, acceptable to the EDA, for any existing surfaces or equipment that have been selected to remain. .9. GREEN OPPORTUNITY. Minimize the site disturbance during construction. A. Control the impact area by designating vehicle parking farther from the site B. Store building materials inside a garage or protected area. C Protect all existing trees with fencing to include the drip line in an effort to avoid over compaction of the soil around the trees. 1200 - Project Closeout 1210 — Final Cleaning .1. Prior to the final inspection, the Builder/Developer will provide final clean-up of the building and property. .2. Remove all plaster and paint smears and drops; clean all windows, screens, doors, finished hardware and plumbing fixtures; polish all chrome, clean and polish all countertops and floor covering; throughout entire house - new and/or old. Provide cleaning of all exterior surfaces including walls,windows, landscape areas, driveways, and walkways. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 5 of 28 1220—Operations Manuals and Warranties .1. The Builder/Developer will obtain and fill in all necessary information on all warranties where applicable, for manufactured products, materials and/or labor used in connection with the project. He/she shall deliver the original warranties to the EDA where appropriate copies will be made and the original will be delivered to the EDA upon completion of the work. Any sections that need to be sent to the manufacturer to validate the warranty,will be mailed as soon as possible. .2 GREEN OPPORTUNITY Provide operation and maintenance manuals, and perform training of users to properly instruct them on the green features of the property and how to maintain them. 1230—Systems Startup .1. Prior to turnover of building, Builder/Developer will conduct testing and startup of all equipment new and/or old for verification of functionality. .2. Builder/Developer will ensure that all equipment components (such as filters, bulbs, batteries) are replaced prior to turn over. 2000 - Building Sitework/ Site Preparation 2010 -Site Clearing and Demolition .1. This work shall be executed in a safe, orderly manner, and in accordance with all applicable codes. .2. The Builder/Developer shall protect all existing materials and apparatus from damage, and shall repair damage caused by workers at no cost to the EDA. .3. Remove trees and plant materials, with EDA's approval, from areas to be cleared. .4. Maintain protection of trees and plant materials which are to remain until completion of work. .5. Debris shall not be allowed to accumulate. .6. Remove all unsightly trash and dangerous material (wood, metal, etc.). 2020 -Site Earthwork .1. Placing of footings and foundations on earth fill will not be permitted. Fill excess cuts under footings and foundations with concrete, and under slabs with tamped gravel. .2. Excavations for footings shall be neat and accurately cut trenches to depths and grades shown on drawings/plans. In the absence of drawings/plans, code requirements shall govern. .3. All grading around any structures shall have high spots lowered and low spots raised to a minimum of 6" below top of floor slab; a minimum of 2'out with a slight slope from structure. .4. Site grading shall accomplish the following: A. Allow drainage of surface water away from buildings and off-site. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 6 of 28 B. Minimize earth settlement problems. C. Avoid concentrating runoff onto neighboring properties where erosion or other damage would be caused. D. Minimize erosion. E. Minimize potential earth movement problems which might adversely affect completed construction. .5. GREEN OPPORTUNITY Grades around structures shall maintain at least a 5% slope away from the foundation. 2040 — Site Hazardous Waste Remediation .1. The property shall be free of hazards which may adversely affect the health and safety of the occupants or the structural soundness of the improvements or which may impair the customary use and enjoyment of the property. These hazards include toxic chemicals, radioactive materials, other pollution, hazardous activities, subsidence, flood, erosion, expansive or compressible soils, inadequate drainage outfall, landslides or mudflows, and deposition of suspended solids or others located on or off site. Projects with potentially significant hazards may be acceptable if any such hazards are effectively mitigated. 2100 -Site Improvements 2110 — Roadways, Driveways, and Walkways .1. Surfaces and base courses for roads, streets, parking areas and walks shall be durable materials. Their construction shall be in conformance with generally accepted local design practices. .2. Slabs for roadways, driveways, and walkways shall be designed and constructed in accordance with standards set forth by the American Concrete Institute, and as may be necessary to prevent slab damage due to potential soil movements. .3. Provide for repairs and/or repairs of existing surfaces to match existing. .4. These surfaces shall be installed with provisions for drainage. Adequate surface and underground drainage systems shall serve all paving and improvements so as to ensure continuing stable soil support for these improvements. .5. Minimum width for driveways shall be 10', and sidewalks 3', if installed new; or if replaced, to match existing if wider than 10'. .6. All exterior concrete surfaces shall be a light broom finish with expansion joints approximately every 12' (fiber material), with slope for drainage away from structure and property. .7. All flatwork expansion joints shall be filled with clear silicone sealant. .8. Where soil and/or concrete for porches, steps and other work is in contact with members, galvanized metal flashing, or solid sheathing and 15 lb. felt shall be installed, or wrap and scratch coat applied. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 7 of 28 9, GREEN OPPORTUNITY. Limit water runoff and maximize infiltration by avoiding impervious surfaces and installing permeable drainage areas between sidewalks, driveways, walkways, patios, and pathways. A. Open matrix concrete grid pavers. B. Specialized honeycomb substrates for gravel or turf. C. Pervious mixes of concrete or asphalt. 2150— Fencing .1. Check all boundaries to ensure property lines are observed, and City Ordinances are not violated (front yard, side yard, and back yard maximum heights). .2. All post setting holes shall not be less than 24" deep and 6"diameter, at a maximum of 10' intervals. When adjacent to a foundation (walls), offset hole to obtain 24"depth, and fill in any space larger than 2" between wall and post. .3. Entrance walk gate shall be a minimum of 3'wide, and driveway gates a minimum of 12'wide; including all gate hinges and. padlock latch attachments. .4. Wrought Iron A. Posts to be 2" x 2"x .090 (16 gauge). B. Top and bottom rails to be 1 %"x 1 Y" (16 gauge). C. Pickets to be%"x W (16 gauge), 4"on center. .5. Chain Link A. All galvanized material. B. 2-3/8" O.D. end, corner, and gate posts. C. 1-5/8" O.D. line and corner diagonal posts. D. 1-3/8" O.D. top rail, with bottom tension wire. E. 11 gauge -2" mesh; to include all bands and wire ties. .6. Wood Fence A. All posts will be of galvanized material(unless otherwise specified). B. 2-3/8" O.D. end, corner, and gate posts. C. 1-5/8" O.D. line and corner diagonal posts. D. Two 2 x 4 horizontal support rails. E. Fencing as specified (redwood or cedar-minimum#2, two nails per rail). .7. Block Wall A. Shall be in accordance with the City of San Bernardino drawing on Garden & Retaining Wall Standards available from the Building &Safety Department. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 8 of 28 2150 - Landscaping .1. All trees and shrubbery identified to remain shall be trimmed. Trim to property line and a minimum of 4' above roofing or structure; removing all debris. .2. All trees and shrubs identified to be removed shall be cut to surface. Remove stump and roots a minimum of 8" below surface; removing all debris, and fill in hole with soil. .3. Natural site assets such as existing trees, shrubs, ground cover, must be preserved, maintained, and protected whenever possible. .4. Any existing assets lost due to the construction efforts and/or lack of protection will be replaced with like kind and size at the Builder/Developer's expense. .5. GREEN OPPORTUNITY Create environmentally friendly lawns and landscaping by A. Cover play areas with wood shavings. 8 Limit the amount of lawn space by installing naturalized plantings. C Provide alternative water sources. D. Plant drought-tolerant landscapes E Plant shade trees in an effort to reduce the cooling loads required in the house * Consider planting edible plants. G. Use water-conserving irrigation equipment where landscape irrigation is required I. Drip Irrigation ii. Advanced irrigation controls like rain sensors. 2200 Site Civil /Site Utilities 2210 - Utilities .1. Underground piping and related items shall be protected from corrosion. Underground mechanical and electrical systems shall be protectively coated to minimize corrosion where soil conditions warrant. Where applicable, sacrificial anodes may be used. .2. Sacrificial anodes may be used where soil resistivity does not exceed 15,000 ohm - centimeters. Otherwise, an impressed current system of corrosion prevention shall be used. .3. Utilities and other facilities shall be independent for the property, without dependence upon other properties. 3100 -Selective Demolition 3110 - Building Elements Demolition .1. This work shall be executed in a safe, orderly manner, and in accordance with all applicable codes. .2. The Builder/Developer shall protect existing materials and apparatus from damage, and shall repair damage caused by workers at no cost to the EDA. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 9 of 28 .3. Debris shall not be allowed to accumulate. .4. The Builder/Developer shall remove all flooring finishes identified to be removed or replaced. Including abatement of any materials designated as containing asbestos. .5. Provide all roofing membrane removal as required for the removal of existing and installation of new roof, equipment, and connections. .B. The Builder/Developer shall provide shoring of all existing beams/structures being modified prior to removing existing bearing walls. .7. Remove all interior and exterior doors and/or frames that are identified for removal. This activity shall be coordinated with the EDA in an effort to not leave any openings un-lockable. .8. Remove all window stops/putty, glass, glazing, and frames as required. Provide demolition of existing sliding glass doors scheduled to be replaced. .9. The Builder/Developer shall remove all structural and non-structural wood stud /gypsum sheathing or wood stud / plaster partition walls, wing walls or portion of walls determined to be removed. A. All appurtenances identified to be removed / demolished on walls scheduled to be removed/demolished shall be removed and disposed of by the Builder/Developer. B. Appurtenances identified to remain, shall be removed and re-installed by the Builder/Developer. .10. Any specific cutting and patching of drywall needed to install conduit or piping shall be done by the Builder/Developer. 11. The Builder/Developer shall remove all wall surface material or portions thereof from interior and exterior walls for new framed openings such as but not limited to doors, windows, recessed electrical panels, louvers, HVAC grills and ducts, backing, etc. .12. The Builder/Developer shall provide removal of all existing spayed on acoustical (popcorn) ceiling texture. Provide for asbestos abatement as necessary. .13. The Builder/Developer shall remove existing casework and countertops, backing, anchors, bases, shims, backsplash, etc. identified to be demolished and disposed of. .14. Doors and windows must be able to be locked at the end of each day, or provide a temporary secure panel (approved by the EDA) closing the opening at no additional cost to the EDA. This also includes providing a temporary secure panel at all wall, door or window openings scheduled to be removed. .15. Removal of Ceramic tile shall include removal and replacement of wall substrate and any existing mortar bed. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 10 of 28 3120 - Hazardous Components Abatement .1. The property shall be free of those hazards which may adversely affect the health and safety of the occupants or the structural soundness of the improvements or which may impair the customary use and enjoyment of the property. These hazards include toxic chemicals, radioactive materials, other pollution, hazardous activities, subsidence, flood, erosion, expansive or compressible soils, inadequate drainage outfall, landslides or mudflows, and deposition of suspended solids or others located on or off site. Projects with potentially significant hazards may be acceptable if any such hazards are effectively mitigated. .2. The Builder/Developer shall provide all labor, material and equipment required to complete the work related to the Hazardous Materials Abatement as required. A. Provide all labor, material and equipment required to abate and legally dispose of off-site all Asbestos Containing Materials (ACM) and Lead Containing Materials including but not limited to pipe fitting insulation (elbows/ends), roof mastic, flooring, flexible joints, doors, door frames, plaster walls, sinks, ceramic tile, etc. B. Provide for the proper removal and disposal of PCB Ballasts and Fluorescent Light Tubes: i. It is assumed that all ballasts not labeled "No PCBs" are considered to contain PCBs and therefore must be treated as hazardous waste. The Builder/Developer shall disconnect the ballasts (those not labeled "No PCB's") from the fixtures and is responsible for proper disposal/recycling. ii. Mercury is present in fluorescent light tubes, which may be present throughout the project areas. Mercury is considered a hazardous waste and will be disposed of properly by the Builder/Developer. 4000 - Foundations 4010 - Standard Foundations .1. Includes excavation, backfill, compaction, and installation of all foundations. .2. Concrete materials for foundations shall be in accordance with City of San Bernardino standards and shall be approved by the EDA prior to placement. .3. Includes all formwork and accessories for all cast-in place concrete and cement concrete pavement with shoring, bracing and anchorage, form accessories, form stripping, and proper layout, location. Provide proper temporary support/shoring (as required and/or needed). .4. Furnish and install all reinforcing steel bars, welded steel wire fabric, fabricated steel bar, slip dowels, or rod mats for all on-site cast-in-place concrete and cement concrete pavement. Provide and install all necessary accessories as indicated. .5. All vertical reinforcing steel protection shall be installed in accordance with CAL OSHA codes and regulations. Maintain said protection throughout the duration of reinforcement installation and u '1 enclosed by finish material. .6. When replacing existing concre : with new, the new concrete shall have at least the sarno re inforcement as the axis City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 11 of 28 7 GREEN OPPORTUNITY. Provide foundation water management system. 8. GREEN OPPORTUNITY Use concrete that contains a percentage of fly ash in place of portland cement 4030 -Slabs on Grade .1. Concrete mixture shall be made of a 1-2-3 mix with plastic cement, sand, and 3/4" rock. Ready mix will be a 5 sack. Minimum 2500 psi. .2. Slabs shall be constructed in accordance with ACI 302.1 R-80, Guide for Concrete Floor and Slab Construction, and as may be necessary to prevent slab damage due to potential soil movements. .3. Vapor retarders and base course shall be provided for all interior concrete slabs to which a finish flooring is applied. A. Acceptable base course materials are gravel, slag, crushed rock, sand, cinders and certain types of earth when approved by the local EDA. See ASTM C-33-90, Table 2. B. Base course material shall be clean, washed and free from deleterious substances, consistent with ASTM C-33,with 100%of the material passing a 1" sieve and less than 2% passing a#4 sieve. .1. All concrete slabs shall be a minimum of 31/"thick(additions, garages, driveways, sidewalks). .2. All interior surfaces shall be troweled smooth. .3. Includes excavation, backfill, compaction, and installation of all slabs. Completely furnish and install all concrete accessories, colors, finishes, forming, admixtures, reinforcement joint sealers, and curing compounds in accordance with the Specifications. 5000 - Superstructure 5010— Framing /Wood .1. Framing and wood construction shall be in accordance with the latest edition of the National Design Specification for Wood Construction. .2. A chemical barrier must be provided for structures built in those areas where termites are determined by the EDA to be a hazard. A physical barrier will also satisfy this requirement where the hazard is presented by subterranean termites only. .3. Where required by the EDA Field Office, protection against damage by decay shall be provided. 4. GREEN OPPORTUNITY. Keep all untreated wood at least 12 inches above soil in lieu of the code required 6 inches. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 12 of 28 5100 - Exterior Enclosure 5110 - Exterior Walls 5111 —Stucco / Plaster .1. The Builder/Developer shall investigate the condition of studs and ceiling joist to be sure framing members comply with appropriate code. .2. Install or reset all electrical boxes to new surface level. .3. Exterior angles shall be protected with woven or welded wire fabric of equivalent strength, or corner bead. .4. A surface inspection is required after sandblasting and before re-stuccoing by the EDA. .5. Application: A. Portland Cement plastering work shall be three-coat work when applied over metal and wire lath/wrap. B. Scratch (first) coat: Apply with sufficient material and pressure to fill solidly all openings in the lath/wrap, and to cover wall, and then scratch to rough surface. Allow to dry a minimum of two days. (Example: complete scratch coat Tuesday, start brown coat Friday). C. Brown (second) coat: Apply after scratch coat has set firm and hard, bring out to grounds, and straighten to a true surface with rod and derby; leave rough, ready to receive finish coat. Surface shall not have variation greater than %" in any direction under a five-foot straight edge. Allow to dry a minimum of seven full days before applying color coat. (Example: complete brown coat on Tues., color coat not to start until following Wed.). D. Finish (color) coats: Portland Cement and Lime Finish Coats-Apply over base coats which have set and surface-dry; lay on well, double back and fill out to a true, even surface. Thickness shall be 1/16"to 1/8", then texture as specified. E. When structure is to have lath/wrap and stucco over existing siding, the Builder/Developer is to remove door and window casing; trim out with metal edging or stucco molding, and seal. F. Exterior lath/wrap to be applied as per California Building Code. G. Stucco Color Coat: La Habra, Bauer, or equal. 5112— Exterior Insulation .1. Materials used for insulation shall be of proven effectiveness and adequate durability so as to ensure that required ratings concerning heat transmission, sound control and fire rating are attained. A. Manville, Owens/Corning, USG; or equal. B. Proper sound insulation shall be used at all walls. C. GREEN OPPORTUNITY. Use cellulose insulation. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 13 of 28 .2. Insulation in contact with the ground shall be installed so as not to be adversely affected by soil, vermin and water. .3. Shall be installed in accordance with Energy Conservation Standards administered by the Building & Safety Division of the City of San Bernardino. .4. Attics: A. If all exterior walls of house are not insulated, bring to R-38 rating (12"). B. If all exterior walls are insulated and/or new addition, insulate to R-30 rating (9"). GREEN OPPORTUNITY. All attic spaces are to receive insulation. .5. Walls: A. All exposed exterior walls and new addition, insulated to R-11 rating (3 '/z"). 6. Water Heater: A. If it has access from outside or in garage, install R-6 rating insulation blanket and wrap all exposed water lines with pipe insulation. B. GREEN OPP01 (UNITY. Provide insulation at all water heaters. 5113—Caulking and Joint Sealants .1. Materials used for caulking and sealants shall be suitable for the use intended, and shall be compatible with the materials to which they are applied and with any finish that may be applied over them. 5120 - Exterior Windows .1. When required shall be made easily openable, replace sash cords and weights or install spring loaded sash balances, as necessary. .2. Windows and operating hardware shall be installed in accordance with the recommendations of the manufacturer. .3. When aluminum single hung or slider window(s) is required and the frames are not to be taken out, use International Window Corporation, Keller, or equal (block frame), to fit existing opening. Caulk window frame before installing, including necessary trim. .4. When new aluminum slider or single hung window(s) installation is required, provide header(s), trimmers, flashing, International Window Corporation, Keller, or equal (standard frame). .5. Operating windows shall be manufactured units consisting of the frame, sill, sash, weather-stripping, and operating hardware. Job site assembled windows composed of frames and sashes made by different manufacturers are not acceptable. .6. Glazing: A. When replacing glass, thickness shall be as recommended by the manufacturer for the specific use. B. All bathroom windows shall be glazed with obscure glass. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 14 of a C. Glass set in wood shall be secured in place with springs or glazing points and face puttied, wood and putty to be primed and painted. D. Glass set in metal shall be secured in place with glazing clips, back and face puttied with appropriate material, metal and putty to be primed and painted. E. All glass shall be cleaned, with no cracks or rattles (new installation only). F. Re-putty shall mean to replace all damage, loose, and missing putty. .7. Weather-stripping shall be properly fitted to eliminate excessive infiltration of dust, snow, or rain. .8. Screens: A. Screens shall be installed on all openable windows. B. When re-screening or new screens are required, they shall be aluminum frames, aluminum screening; tight fitting and easily removed. C. Nylon screens on newly installed windows and combination doors may be acceptable, unless otherwise requested or stated. .9. If a window of any kind must be installed into the wet area of the tub or shower surround, it must: A. Contain a sill made of material that is water impermeable , such as marble or Corian, not tiled and grouted. B. Have a sill that is pan-flashed or sealed. C. Have frame made of moisture-tolerant material. .10. GREEN OPPORTUNITY. Replace existing windows and provide new windows with a high energy and low-e performance rating 11. GREEN OPPORTUNITY: Provide awnings, overhangs, or other shading devices on exterior windows. 5130 - Exterior Doors /Garage Doors .1. All exterior doors will be wood or metal finish (no hardboard). Primed/painted or stained/varnished. .2. Doors shall be durable, installed in good operating condition, free of defects, latch readily and lock securely. .3. Doors shall fit opening and operate properly. .4. All new door installation shall include new hinges and all necessary trim. .5. Entry Doors: A. Exterior entry doors shall be side-hinged doors not less than 3 ft. in width and 6 ft. 8 in. in height. B. 1 %" solid core - Birch, Mahogany, Luan; unless existing jamb takes 1 3/8" door. C. 3 each -4"x 4" butt hinges, unless existing jamb takes 1 3/8" door, then 3-3 '/2"x 3 Y" butt hinges. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 15 of 28 D. Exterior door frames shall be treated against decay. E. Locks - Kwikset, Schlage, or equal. .6. Garage Doors: A. Steel frame construction. B. Installing new garage hardware or replacement hardware shall comply with the following safety notice: ... FOR YOUR SAFETY ... California State Assembly#772 directed the Commission of Housing and Community Development to change the appropriate rules and regulations in ways that, "ARE REASONABLY NECESSARY TO PREVENT THE DEATH OR INJURY OF PERSONS OR DAMAGE RESULTING FROM THE BREAKING OF GARAGE DOORS SPRINGS". (quoted from Assembly Bill#772) 7 Weather-stripping shall be applied to all exterior doors and interior garage door. .8. Weather-stripping shall be aluminum and vinyl. Install after surfaces are finished and dry. .9. Thresholds and door shoes shall be installed at all exterior doors and interior garage doors and shall be aluminum thresholds, and aluminum/vinyl with drip cap door shoes (channel type), sealed to be watertight. .10. Exterior jambs will be rabbet type (fit wall thickness) and to include new wood (pine) casing material. Replace stucco molding only if required. .11. A safety door check shall be provided on all outward opening doors, including storm and screen doors. .12. Locking devices at doors and windows shall be as follows: A. Each exterior doorway and each doorway leading to garage areas, terraces, balconies, or other areas affording easy access to the premises shall be protected by a door which, if not a sliding door, shall be equipped with a deadlock using either an interlocking vertical bolt and striker, a minimum of 1.2 in. throw dead bolt or a minimum 1/2 in. throw self-locking dead latch. Locks shall not require the use of a key for operation from the inside. B. All sliding doors, first floor and basement windows and windows opening onto stairways, fire escapes, porches,terraces, balconies or other areas affording easy access to the premises shall be equipped with a locking device. A sliding door used as a main or service entrance shall be equipped with a keyed locking device. .13. Screens shall be aluminum/satin finish with latch set and pneumatic closure or equal. .14. Security Screen—Jamb/frame will be 1' 1/4"x 1' 1/4" (18 gauge)with 3/4 x 3/4"center framing (18 gauge) and heavy gauge metal screening. Combination (Bel-Aire) -Solid core (no panels). 1 3/8" door, 3 - 3'/z"x 3 '/" butt hinges; 1 W Locks- Kwikset, Schlage, or equal. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 16 of 28 5140- Flashing .1. Flashing shall have a service life at least equal to that of the assemblies into which it is built. .2. Counter flashing is considered exposed flashing and shall be constructed of sheet metal. .3. Alternate products or systems of bitumen-impregnated plastic or elastomeric materials may be used for flashing if they are installed in accordance with the manufacturer's recommendations and are acceptable to the EDA. .4. All openings between wood or metal and masonry shall be caulked with a non- hardening caulking compound. 6200 — Roofing 5210 - Roof Coverings A. Strip - Means to remove "all" roofing material to sheathing, with inspection of sheathing prior to installation of new roofing. .2. The Builder/Developer shall guarantee the owner to maintain the entire roofing, and counterflashing in a watertight condition for a period of fifteen years. .3. Shingles— A. Shall be fiberglass of 151b. felt. B. New metal 1 ''/z" drip edge and roof jacks (form over shingles, seal around all pipes). .4. Built- Up/ Roll Roofing Cap A. Roll roofing cap to be a minimum of 90 lb. roofing paper and must bear a class "C" UL listing. B. One 90 lb. cap sheet to be installed over two layers of 15 lb. felt paper, saturated with at least 20 lb. of hot mopped tar, between layers. C. All base sheets to be well nailed with approved galvanized nails providing a minimum 3/4" penetration into a firm solid sheathed surface. D. New metal 'W drip edge and roof jacks. 5 GREEN OPPORTUNITY. Provide reflective (high-albedo) roofing systems with an Energy Star ratin,q 5220— Gutters and Downspouts .1. Gutters and downspouts shall be provided at all projects. .2. Gutters and downspouts- Shall be a minimum of 26 gauge galvanized metal, or vinyl material. .3. Gutters shall be sloped to downspout and supported a maximum of 3' apart. .4. End caps, corner joints, splices, outlet tubes shall be soldered or have watertight joints. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 17 of 28 .5. Downspouts shall be fastened at top, bottom, and approximately every 6', and directed to drain away from the structure. .6. Downspouts shall be sized on the basis of 100 square feet of roof surface to 1 square inch of leader. More or less leader area may be required by the EDA. .7. Scuppers shall be installed at the outfall end of a valley for special roof designs, such as "butterfly" roofs. .8. Scuppers shall be installed for overflow of all roofs enclosed by parapet walls. 9. GREEN OPPORTUNITY Provide a simple rain water harvesting system for use on irrigation. 6000 - Interior Construction 6010— Partitions /Ceilings 6011 —Interior Insulation .1. Materials used for insulation shall be of proven effectiveness and adequate durability so as to ensure that required ratings concerning heat transmission, sound control and fire rating are attained. A. Manville, Owens/Corning, or equal. B. GREEN OPPORTUNITY Use cellulose insulation .2. Insulation in contact with the ground shall be installed so as not to be adversely affected by soil, vermin and water. .3. Shall be installed in accordance with Energy Conservation Standards administered by the Building & Safety Division of the City of San Bernardino. 6012 - Drywall .1. When installation of drywall is specified, provide 1/2" U.S. Gypsum wall board or equal, unless otherwise specified. 2. GREEN OPPRTUNITY. Select drywalt products with a high recycled content and use taping materials and joint compound without hazardous additives that aid in drying and setting. .3. All joints and inside corners shall be taped; outside comers shall have corner bead troweled with joint compound (a minimum of three coats, and smoothly sanded or textured). .4. If kitchen base cabinets, toilet or lavatory are removed, and the drywall is to be replaced, it must be replaced with green board or equal. .5. If tub surrounding drywall is to be replaced, it must be replaced with wonder(cament) board. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 18 of 28 6. All wall surfaces to receive ceramic tile shall receive wonder (cement) board or plaster in accordance with the following: A. Portland Cement plastering work shall be three-coat work when applied over metal and wire lath/wrap. B. Scratch (first) coat: Apply with sufficient material and pressure to fill solidly all openings in the lath/wrap, and to cover wall, and then scratch to rough surface. Allow to dry a minimum of two days (Example: complete scratch coat Tuesday, start brown coat Friday). C. Brown (second) coat: Apply after scratch coat has set firm and hard, bring out to grounds, and straighten to a true surface with rod and derby; leave rough, ready to receive finish coat. Surface shall not have variation greater than '/:' in any direction under a five-foot straight edge. Allow to dry a minimum of seven full days before applying color coat (Example: complete brown coat on Tues., color coat not to start until following Wed.). 6020 - Interior Doors .1. Doors shall be durable, installed in good operating condition,free of defects, latch readily and close securely. .2. Doors shall fit opening and operate properly. .3. All new door installation shall include new hinges and all necessary trim and hardware. .4. Interior Hinged /Closet/ Bathroom Doors: A. Shall be side-hinged doors not less than 1 3/8"thick. B. At least 2 each 3 '/:"x 3 'W butt hinges. C. Locks - Kwikset, Schlage, or equal. .5. Shower Door/Tub Enclosure: A. Shower Doors— MAAX, Kohler, or equal. Seal around frame and walls. B. Tub Enclosure - MAAX, Kohler, or equal. Seal around frame and walls .6. Door stops installed at all swinging doors shall be solid (no coil springs). .7. Interior jambs will be flat type (fit wall thickness)and to include new wood (pine) material stop molding and casing (both sides). 7000 - Finishes 7010— Ceramic Tile .1. Install ceramic tile where identified. .2. Ceramic tile to be American Olean, Dal-Tile, or equal. 3 GREEN OPPORTUNITY Use ceramic tile with high recycled content .4. Submit a complete range of colors and types for the EDA's selection. One of each color of type selected shall be retained by the EDA. All materials placed in the building shall match such samples. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 19 of 28 .5. Applications and installation of adhesive, primer, caulking compound, and prepared grout when used, shall be as recommended by manufacturer of the tile and in accordance with these standard specifications. .6. Ceramic tile shall be applied over a water-proof surface only (cement or wonder (cement) board). .7. At showers, the top of step shall have slight slope into shower. 7020 - Floor Finishes .1. The Builder/Developer shall provide all necessary floor preparation of existing surfaces to properly receive new flooring material. .2. Sub-flooring shall be a minimum thickness of 3/4" plywood or 1x boards. .3. Underlayment shall have a maximum thickness 3/8" industrial particle board. .4. Install all flooring per manufacturer's recommendation. .5. Existing floor covering to be removed prior to installation of new floor. .6. Provide underlayment when sub-flooring is in such a condition to warrant replacement. Bathroom, kitchen, and laundry underlayment to be of water resistant material. .7. Surfaces to receive flooring shall be clean, dry, smooth, even, and without defects. .8. At Bathrooms, the toilet and lavatory cabinet shall be removed before flooring installed. Reinstall toilet and cabinets. .9. Install new baseboard or shoe after installation of flooring. If cove is required, it shall be formed integrally of matching sheet material. Adhesives shall be as recommended by manufacturer. .10. Coat all concrete floors on earth grade with concrete primer as recommended by manufacturer. .11. Leveling compound and crack filler-As manufactured by Aetna Manufacturing Company for concrete floors or equal. .12. Linoleum (sheet goods) - FHA base cushioned, Armstrong -Cambray or equal. 13. Vinyl Tile-Armstrong - Stylistic or equal. .14. Carpet-260z. A. Base, HUD/FHA bulletin UP-44c requirement. B. Pad -5/8" rebond high plush, HUD bulletin UP-72 requirement. .15. GREEN OPPORTUNITY: Provide greener carpeting such as: A. Products made from natural materials; B. Products that do not contain residues from dyes and finishes used in manufacturing; C. Products that do not have surface treatments to repel stains, D. Products with documented low VOC offgassing; City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 20 of 28 E. Products with high recycled contents .16. Submit a complete range of colors and types for the EDA's selection. 7030 - Ceiling Finishes .1. Ceilings shall be drywalled and painted. No sprayed on acoustical ceilings(popcorn) will be allowed. 7040 - Painting .1. Lead Content: A. The definition states in part, ....... with respect to paint which is manufactured after June 22, 1977, lead-based paint means any paint containing more than six one- hundredths of one percent lead by weight(calculated as lead metal) in total non- volatile content of the paint or the equivalent measure of lead in the dried film of paint already applied". B. All contractors and sub-contractors on rehabilitation activities will comply with the Lead-Base Paint Regulation under 24 CFR Part 35, requiring: i. The prohibition of the use of lead-based paint in the rehabilitation of properties; ii. The elimination of immediate lead-based paint hazards in residential structures. .2. All paint shall have low VOC levels. .3. If exterior painting is required, caulk all exterior door and window frames to seal completely. Remove all loose and deteriorated putty on windows and re-putty before painting. When painting of exterior trim is specified, this shall include doors, windows, all frames, eaves, soffits, porches and all appendages. .4. If a paint to be used on exterior surfaces is not inherently mold resistant, a suitable fungicide shall be included in the formulation. .5. If repair of exterior surfaces is indicated, remove all broken and loose material by raking out, scraping and sanding if necessary. Repair with proper material for area being repaired, blending in with texture of area being repaired. Prime the repaired area prior to painting. .6. If interior painting is indicated, repair all cracks by "V"scratch approximately 1/8"X 1/8" in walls and ceilings of all rooms being re-painted. Use proper type of patching material for areas being repaired. Fill all cracks and holes solid and blend in repaired areas with texture of surface being repaired. Prime cracked areas prior to painting. When painting of walls and ceilings of a room is specified, this shall include all trim, windows and door frames, closets, and cabinets (inside). .7. All surfaces to be painted shall be free of dirt, dust, grease before painting is started. All knots, pitch streaks, and sappy spots shall be first sealed with shellac or sealer approved for use with materials as specified, before subsequent coats are applied. Each coat shall be al' pied to dry before subsequent coat is applied. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 21 of 28 .8. If it should become necessary, in order to give good coverage because of surface condition of the paint color(s), it is the obligation of the Builder/Developer to apply sufficient coats to obtain complete coverage. .9. All new drywall shall be primed with one coat of Drywall Sealer/Primer before the application of the finish coat, unless otherwise specified. .10. Paint to be Dunn-Edwards, Glidden, Sinclair or equal. EDA to select color(s) and finish. 11 Paint for kitchen, service area, bathroom(s) to be a durable and washable gloss finish (unless EDA requests a semi-gloss). .12. Stain—Exteriorfinterior application (Minwax, Behr, or equal). .13. Varnish - Exteriodrnterior application (Behr, Varathane Elite, or equal). 14. Spar gloss or satin, EDA to specify (Behr, Varathane Elite, or equal). n EDA to specify Behr Varathane Elite orequal). 15. Spar gloss or sat p fy ( .16. Paint application shall consist of two coats on old material, and three coats on bear wood or new material. The top and bottom edges of interior doors shall be sealed (painted or varnished)with one coat, exterior doors with two coats. .17. Application of paints, stains, or other coating systems shall be in strict accordance with manufacturer's directions and shall comply with the following: A. Exterior Wood Siding, Millwork and Trim i. Knots, resinous wood, and nail holes shall be sealed with a prepared sealer or aluminum paint prior to puttying and priming. Any nail holes or cracks in surfaces to be painted shall be filled with putty. ii. A prime coat shall be applied to all surfaces to be painted before or immediately after installation. Primer shall be formulated specifically for application to unfinished wood. Finish coats formulated to serve as primers may be used. iii. One of the following finish systems shall be applied. Coverage shall be that which will provide at least the minimum thickness recommended by the manufacturer. a. Oil paint systems. b. Latex paint systems. c. Pigmented stains as per manufacturer's directions. d. Clear penetrating preservatives or water repellent finishing systems. iv. The top and bottom of exterior wood doors, casement sash, awning sash and the bottom of double hung sash shall receive two coats of paint or sealer. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 22 of 28 V. Prior to erection, all edges of vertical siding shall be sealed with a heavy coat of house paint primer, water repellent stain, exterior aluminum house paint or sealer. Wood batten strips shall be backed-primed or sealed. B. Wood Shingles, Shakes, Rough-sawn Siding. L Two coats of oil stain, pigmented oil stain, or an oil shingle paint shall be applied. C. Hardboard and Softwood Plywood Siding. L These sidings shall be finished in accordance with the manufacturer's direction. D. Wood Porch Floors and Decks. I. One coat of primer and two coats of Floor and deck enamel designed for exterior use shall be applied. Joints between floor and wall shall be caulked. E. Unfinished Surfaces. L Shingles and board siding of vertical grain cedar, redwood and bald cypress may be left unfinished. F. Exterior Concrete Masonry Units or Concrete Brick L At least two coats of masonry paint shall be applied. ii. Concrete masonry units or concrete brick, except small areas of foundation walls, shall be painted to provide a water resistant finish. iii. High density concrete brick or solid split block forming the outer face of double unit walls(veneer, cavity walls, etc.) may be left unpainted when acceptable to the EDA. G. Exterior Galvanized Steel or Iron L Field painting shall consist of two coats. One coat shall be a primer formulated specifically for galvanized surfaces, and the second coat shall be a finish coat. A finish coat formulated to serve as a primer may be used as the first coat. H. Exterior Steel, Iron or Terns Plate ii. Steel or iron, except stainless steel, weathering steels, or steel treated with coatings to provide corrosion resistance, shall be painted. iii. A rust inhibitive primer and a finish coat shall be applied. I. Interior Millwork and Trim i. All mill work and trim, including windows; interior doors; window, door and base trim; paneling and closet shelving and trim shall be finished by painting or natural finishing. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 23 of 28 ii. If the surface is open grain wood, it shall be filled or sealed to prevent the grain from rising. Surfaces shall be treated with a primer. One or more finish coats shall be applied to provide a smooth surface and good hiding. iii. Natural finishes include stain-wax, stain followed by one or more coats of varnish, clear coats of varnish with or without wiped paint undercoats or oil and wax finishes. J. Wood Floors L If flooring is open grain wood, one coat of filler shall be applied. All excess shall be wiped off. ii. Flooring shall be finished with: a. One or two coats of penetrating sealer and one coat of wax; or b. Two coats of varnish and one coat of wax; or c. Two coats of polyurethane; or d. One or more coats of factory-applied finish. K. Interior Plaster and Gypsum -Walls and Ceilings L Plaster surfaces may be painted, covered or left unfinished, except for surfaces of kitchens and baths. If painted, a finished coat shall be applied over a primer-sealer, unless finish coats are of the self-priming type. ii. Gypsum wallboard shall be covered. If painted, one coat of wallboard sealer shall be applied unless finish coats are of the self-sealing type. Two finish coats shall be applied over the sealer. One finish coat, except in kitchen and baths, may be acceptable if good coverage is obtained. L. Interior Metal L Non-ferrous metals or wrought iron may be painted or left unfinished. Other metals shall be painted in accordance with 609-3.4. M. Interior Concrete Floors L If painted, at least two coats of resin emulsion paint, a solvent rubber paint or a floor and deck enamel shall be applied. If oil paint is used, the surface shall be neutralized before painting. ii. A coat of wax shall be applied over paint, stain or an integral finish. N. Wall Coverings L Covering material shall be secured to a suitable base in accordance with the manufacturer's directions. ii. All rooms that have new wall covering installed will include molding, trim, base, and painting (if required). City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 24 of 28 8100— Furnishings 8110—Carpentry, Cabinets, and Millwork .1. All manufactured factory finished cabinets shall comply with ANSI A161.1-86, Recommended Minimum Construction and Performance for Kitchen and Vanity Cabinets, or with an equivalent standard. .2. Workmanship: All interior wood finish, cabinet and casework shall be smooth dressed, well sanded, and thoroughly cleaned before priming. All material showing machinery, sandpaper, or other defacing marks will be rejected. Interior wood finish or cabinet work shall not be installed on newly plastered walls until the plaster in that section is reasonable dry and approved by the EDA. .3. All interior wood finish, doors, frames, and other cabinet work or fixed wood equipment shall be properly installed, level plumb, and true. Members shall be neatly and accurately scribe in place, maintaining full lengths without splicing, except where the use of full lengths would be impractical or impossible, and then if joined, butt joints shall be beveled. Replacement and installation of new trim or molding shall match existing in size and profile or otherwise be reasonably appropriate upon finished installation. .4. All cabinets (kitchen base and wall, bathroom lavatory, etc.) shall be a minimum of birch plywood construction (stain grade quality), shop fabricated casework, with all necessary hardware. Shelving shall not be less than 3/4" pine, plywood, or particle board. Kitchen base cabinets shall have a built-in bread board. .5. All cabinets and trim shall be scribe to contacting surfaces and shall be straight, plumb level and in true alignment, closely fitted, and rigidly fastened in place. .6. Countertops: A. Top material shall be phenolic laminate, vinyl plastic covering, ceramic tile, stainless steel or other material suitable for its intended use. B. The top material shall be securely bonded to a reinforced steel core, to 5/8 in. plywood, or to any other equivalent material. C. At least a 3 in. back and end splash shall be provided against all abutting vertical surfaces which are not water and grease resistant. When a back splash is omitted, the joints at the juncture of the counter top and vertical surfaces shall be tight and sealed. D. All edges, including the sink and any built-in surface units, shall have a non- corrodible metal molding or other suitable edging. E. High Pressured Laminated Plastic(Formica or equal) - Shall be constructed with a bullnose front edge, minimum of a standard back splash where it abuts walls, and full length of cabinets. If laminated plastic ends at wall, provide end splash (material must be identical to counter top original color). Scribe and closely fitted to adjacent work, and securely anchored to cabinets. Installation of sinks shall have required mounting Flange and sealed against leaking. No butcher block unless otherwise requested or stated by the EDA. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 25 of 28 F. Ceramic Tile - Shall be applied over a plastic cement base secured to 3/4" exterior plywood secured to the cabinets. Raise front edge, minimum of a standard back splash, and sealed at edges of full length cabinets. (See Ceramic Tile Specification). G. GREEN OPPORTUNITY. Countertops shall be made of natural stone (granite), tiles, or manufactured solid surfaces (Conan). .7. Interior woodwork: A. Trim (D.F.)"B or better". B. Shelving - Particle board or#2 shelving. 9000— Plumbing, Mechanical, Electrical 9010 - Plumbing Fixtures .1. All fixture installation is to include trap, vent, faucets, and all trim necessary to mount fixture in an approved manner, and to include repair of damaged areas affected by the installation. When kitchen or lavatory faucet is replaced, it will also include risers. Replace all angle stops. .2. Fixtures: A. Water closets- Deep bowl (round or elongated per EDA request). American Standard - Hydra; Eljer—Titan; Kohler; or equal. Handicap (17" high). Must be rated at no more than 1.6 gallons per flush. GREEN OPPORTUNITY Use of a high-efficiency toilet that uses less than 1.6 gallons per flush is recommended. B. Bathtubs-5' pressed steel-American Standard; Kohler, or equal C. Lavatories—American Standard, Kohler, or equal. D. Kitchen Sinks-Single or double compartment enameled cast iron - Kohler or equal; Single or double compartment stainless steel (7"depth, 20 gauge minimum thickness) -Sterling or equal. E. Garbage Disposal- Insinkerator— Badger 2, '/ HP (3 year warranty) or equal. F. Laundry Sinks-American Shower& Bath, or equal. G. Faucets i. Lavatory- Delta, Peerless, Kohler, or equal. ii. Tub/Shower Diverter- Price Pfister, Kohler, or equal. ill. Shower-Price Pfister, Kohler, or equal. iv GREEN OPPORTUNITY Provide low flow faucets and shower heads or fit standard faucets with a flow reducing aerator. H. Bathtubs - 5' Lasco; Hess Cc; or equal. I. Tub Wall Kits- Plaskolite, Elite; Nova, Seville; or equal. J. Shower- Lasco, or equal. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 26 of 28 K. WATER HEATERS: i. Shall be Reliance; Galaxie; Whirlpool; or equal, with an eight(8) year warranty. Size shall be as required to service property. ii. All shall have pressure/temperature relief valve with a drain line to the outside; or if located on a concrete floor in center of house - pressure/temperature relief valve and drain line shall be installed per Building and Safety requirements. iii. All units shall be secured to walls. iv. All units shall be insulated. V, GREEN OPPORTUNITY. Water heater should have a high-efficiency rating. 9020 - Domestic Water Distribution .1. Each dwelling shall be provided with a continuing and sufficient supply of safe water under adequate pressure and of appropriate quality for all household uses, and one that will not impair the functioning or durability of the plumbing system or attachments. .2. Connection shall be made to a publicly owned or publicly controlled water supply system that is adequate to serve the demands of the project. .3. Provide all connections to risers or fixtures from top to mains so that the entire system can be drained at low point. .4. Provide hot water supply to all fixtures except water closets. .5. Support piping from the building structure by means of hangers to maintain required grading and pitching of lines and to prevent vibration. .6. GREEN OPPORTUNITY. All hot water lines shall be insulated. 7. GREEN OPPORTUNITY: Consider the use of PEX piping. 8. GREEN OPPORTUNITY. Provide a single-throw shut-off valve at service to clothes washing machines. If machine located above a livable space, provide a floor drain and shower pan under the washing machine. 9030 - Sanitary Waste .1. Roto Root(clean) all drain lines to street through clean-out cap, roof vent, etc. .2. Each dwelling shall be provided with a water-carried system adequate to dispose of domestic wastes in a manner which will not create a nuisance or endanger the health of the occupants or the public. .3. Connection shall be made to a publicly owned or publicly controlled system that is adequate to serve the needs of the project. City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 27 of 28 9100 - Heating, Ventilating, and Air Conditioning (HVAC) 9110— Heating and Ventilating .1. Heating and ventilating equipment shall be Trans; Bryant; Carrier; or equal, as appropriate to the situation. .2. GREEN OPPORTUNITY. Equipment should be rated as high effieciency. .3. GREEN OPPORTUNITY: Evaluate existing heating and ventilation system and down size or reconfigure to be more efficient. Do not oversize equipment. .4. GREEN OPPORTUNITY: Consideration should be given to using equipment that provides alternatives to conventional refrigerant, such as non ozone depleting HFC refrigerants. 5. GREEN OPPORTUNITY; Provide ceiling fans in bedrooms and living spaces. .6. Provide wall thermostat with complete vent system, attic shield, roof jack, and gas piping/shut-off valve. 7. GREEN OPPORTUNITY. Install programmable thermostats with both daytime and nighttime setbacks Separate control of different spaces into zones so that the unit works more efficiently. .8. GREEN OPPORTUNITY.., Provide duct cleaning prior to turn over. .9. Install in an approved manner and location. .10. Crawl Space Ventilation: A. The space between the bottom of the floor joists and the earth under any building (except such space as is occupied by a basement or cellar) shall be provided with a sufficient number of ventilating openings through foundation walls or exterior walls to ensure ample ventilation. Such openings shall be covered with a corrosion-resistant wire mesh with a mesh size not greater than 112 in. nor less than 1/4 in. in any dimension. The minimum net area of ventilating openings shall not be less than 1 sq. ft. for each 150 sq. ft. of crawl space area. B. One ventilating opening shall be within 3 ft. of each corner of each building where such openings are required. .11. Attic Space Ventilation A. Cross ventilation shall be provided for each separate space. Ventilation openings shall be protected against the entrance of rain and snow. B. The ratio of the total net free ventilation area to the area of ceiling shall be not less than 1/150, except that the ratio may be 1/300 if: L A vapor retarder having a transmission rate not exceeding one perm is installed on the warm side of the ceiling; ii. Between 25 and 50 percent of the required ventilating area is provided by vents located in the eaves or cornices with the balance of thf required ventilation provided by ventilators located at least T-0" abovt , is vents in the eaves or cornices; or City of San Bernardino Economic Development Agency Neighborhood Stabilization Program Minimum Building Standards Page 28 of 28 iii. The attic space is accessible and suitable for future habitable rooms or walled-off storage spaces have at least 50% of the required ventilating area located in the upper part of the ventilated spaces as near the high point of the roof as practicable and above the probable level of any future ceiling. 9200 —Fire Protection Systems 9210— Fire Protection Specialties 1. Provide smoke detectors that are U.L. approved; First Alert SA1501LT, or equal. Hard wire will have battery back-up. 2 GREEN OPPORTUNITY. Provide carbon monoxide defectors. 9300 - Electrical Systems 9310 - Electrical Service and Distribution .1. When required, provide a new electrical service box/meter. All existing circuits shall be checked out and split as required. All new loads, outlets, lights, etc., must be on additional circuits, unless prior approval is received from the EDA. .2. Electrical Service installed at location shall be as recommended by Edison Company. .3. Check all services and verify all electrical service, circuits(marking panel if not done); replacing all faulty outlets, switches, damage and missing cover plates; for house and garage. .4. When encountering non-complying wiring, it is to be removed in its entirety. This is to include boxes, lights, old panels(unless used for junction box), etc.; and to include repair, patching, and painting of all areas affected (to match existing) --ceilings, walls, etc. All new wiring shall be concealed within walls, ceilings unless approval from the EDA is obtained prior to installation. 5. GREEN OPPORTUNITY All bulbs shall be fluorescent No incandescent lighting will be allowed. 6 GREEN OPPORTUNITY. Avoid recessed lighting. When required use insulation- contact fixtures that seal tightly and allow insulation to be packed against them. .7. GREEN OPPORTUNITY. Install dimmer switches at all living areas. Restrooms shall have motion detector switches. 8. GREEN OPPORTUNITY. All low voltage (telephone, data, television) shall be run in conduits to provide for future expansion and/or replacement. a r;