HomeMy WebLinkAboutR37- Economic Development Agency ECONOMIC YDE ELO MAENTOAGENCY ORIGINAL
FROM: Emil A.Marzullo SUBJECT: Neighborhood Stabilization Program ("NSP")
Interim Executive Director Quarterly Report
DATE: March 25,2010
Synopsis of Previous Commission/Council/Committee Action(s):
On March 4, 2010, Redevelopment Committee Members Johnson, Brinker and alternate Shorett unanimously voted to
recommend that the Community Development Commission consider this action for approval.
Recommended Motion(s):
MOTION: That the Community Development Commission of the City of San Bernardino receive and file the quarterly
report of the Neighborhood Stabilization Program ("NSP") for the Redevelopment Agency of the City of San
Bernardino.
Contact Person(s): Carey K.Jenkins Phone: (909)663-1044
Project Area(s): N/A Ward(s): All
Supporting Data Attached: 0 Staff Report 0 Resolution(s) ❑Agreement(s)/Contract(s)O Map(s)O Letter(s)
FUNDING REQUIREMENTS: Amount: $ -0- Source: N/A
Budget Authority: N/A
Signature: Fiscal Review:
Emil A. arzu o,Intenm Executive Director LodYanzin of ill ry, im dministrative Services
Director (/
Commission/Council Notes:
e\AgroaaeTc a Co=WWnlCUC 2010 n.a540 NSPQ eyUpm WR COMMISSION MEETING AGENDA
Meeting Date: 04/05/2010
Agenda Item Number: i-3�
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
NEIGHBORHOOD STABILIZATION PROGRAM("NSP") QUARTERLY REPORT
BACKGROUND:
In August of 2008, the City of San Bernardino ("City" or "San Bernardino") received a funding
allocation of approximately $8.4 million from the United States Department of Housing and Urban
Development ("HUD") under the Neighborhood Stabilization Program ("NSP") to address the City's
foreclosure problem. On November 17, 2008, the Mayor and Common Council of the City of San
Bernardino ("Council") and the Community Development Commission of the City of San Bernardino
("Commission")jointly approved the proposal of its Redevelopment Agency and submission to HUD
for its$8.4 million NSP allocation.
Finally, on March 3, 2009, HUD approved the City's application which was followed by an April 23,
2009, City Council action to formally accept the funds.
The City's approved plan with HUD consists of the following four (4) Program activities plus an
administrative line item:
1. Acquisition, Rehabilitation and Resale of single-family residences - $3,700,000 (the
"Rehabilitation and Resale Program");
2. Acquisition and Demolition for future development-$920,000 (the"Demolition Program");
3. Down Payment Assistance - $920,000;
4. Housing Opportunities for Households at or below 50% of AMI—HUD Requirement - $2,100,000
(the "Rehabilitation and Rental Program); and
5. Administration($768,558).
On July 20, 2009, the Council and the Commission authorized the Agency to proceed with all five (5)
of the approved NSP program activities.
CURRENT ISSUE:
For the quarter ending December 31, 2009, the Agency either acquired or placed in escrow twelve (12)
properties since the initiation of its NSP housing programs, which represent a total of 27 units.
From an expenditure standpoint, the Agency committed a total of$2,730,471 in NSP funds as of the
end of the quarter. The table below details the number of completed activities, levels of expenditures
and average cost per transaction by Program type as of December 31, 2009.
P.Npn&sTo=Dv C=mmon\CDC N10 5.10 NSP QW yUpd Wfl COMMISSION MEETING AGENDA
Meeting Date: 04/052010
5/
Agenda Item Number: �`"' I
Economic Development Agency Staff Report
NSP Quarterly Update Report
Page 2
From a budget target standpoint, the Agency has successfully committed 32.5% of its original NSP
funding allocation.
The table below details the number of properties acquired or placed in escrow (`Encumbered"), the
number of units, levels of funds committed and the percent to the proposed goal for NSP (as of
December 31, 2009)by Program type.
Program Properties Number of NSP Funds % To Goal
Encumbered Units Committed
Rehabilitation and Resale Program 5 5 $574,851 15.5%
Demolition Program 5 14 $498,820 37.8%
Rehabilitation and Rental Program 2 8 $888,242 33.9%
Down Payment Assistance 0 0 $0 0.0%
Program Administration N/AP N/AP $768,558 100.0%
TOTAL 12 27 $2,730,471 32.5%
Please see Attachment 1 for the complete quarterly update report for all NSP program activities.
ENVIRONMENTAL IMPACT:
This item does not meet the definition of a "project" under Section 15378 of the California
Environmental Quality Act(CEQA).
FISCAL IMPACT:
There is no General Fund impact to the City. The services provided under the NSP Program and the
associated administration costs will be funded either with NSP funds derived from 14UD or funds from
the Agency's Tax Increment Housing Set-Aside.
Account Budgeted Amount: $ 0 Balance as of: March 25.2010
Balance after approval of this item: $ 0
RECOMMENDATION:
That the Community Development Commission adopt the attached Motion.
Emil A. Marzullo,Interim Executive Director
PWgendnlCdum Dev COmmiv®oe\COC N1P 5-10 NSP Quulal,U,d Skd COMMISSION MEETING AGENDA
Meeting Date: 04//055/�/2010
Agenda Item Number: P-161
REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
NEIGHBORHOOD STABILIZATION PROGRAM
Quarterly Update Report as of 12/31/09
I. INTRODUCTION/BACKGROUND
In August of 2008, the City of San Bernardino ("City' or "San Bernardino')
received a funding allocation of approximately $8.4 million from the United States
Department of Housing and Urban Development ("HUD") under the
Neighborhood Stabilization Program ("NSP") to address the City's foreclosure
problem. On November 17, 2008, the Mayor and Common Council of the City of
San Bernardino ("Council") and the Community Development Commission of the
City of San Bernardino ("Commission") jointly approved the proposal of its
Redevelopment Agency and submission to HUD for its $8.4 million NSP
allocation.
Finally, on March 3, 2009, HUD approved the City's application which was
followed by an April 23, 2009, City Council action to formally accept the funds.
The City's approved plan with HUD consists of the following four Program
activities plus an administrative line item:
1. Acquisition, Rehabilitation and Resale of single-family residences
($3,700,000);
2. Acquisition and Demolition for future development ($920,000);
3. Down Payment Assistance ($920,000);
4. Housing Opportunities for Households at or below 50% of AMI — HUD
Requirement ($2,100,000); and
5. Administration ($768,558).
On July 20, 2009, the Council and the Commission authorized the Agency to
proceed with all four of the approved NSP program activities. In order to carry
out the acquisition, rehabilitation and resale of foreclosed single-family
residences under Activity No. 1 named above (the "Rehabilitation and Resale
Program"), within the HUD approved areas eligible for NSP funding (the "NSP
Target Zone'), the Agency selected five development firms ("Intermediaries')
through a competitive RFP process to implement the Rehabilitation and Resale
Program on behalf of the Agency. (Please refer to Attachment 1 for a map of the
NSP Target Zone.) The Intermediaries are charged with rehabilitating, managing
and reselling the foreclosed homes acquired by the Agency with NSP funds. The
Intermediaries, which consist of both for-profit and non-profit housing developers,
do not own the properties at any time during the course of the Rehabilitation and
REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
NEIGHBORHOOD STABILIZATION PROGRAM
Quarterly Update Report as of 12131/09
Resale Program. Instead, the Agency acquires and retains ownership of the
properties through an affiliated non-profit organization, Affordable Housing
Solutions of San Bernardino, Inc. ("AHS"), which the City authorized to acquire
properties on behalf of the Agency. Consequently, the Intermediaries do not
earn a profit from the sale of the rehabilitated homes. Instead, they are paid a
pre-negotiated fee by the Agency for performance of the rehabilitation,
management and selling services that they provide.
AHS is also charged with acquiring the foreclosed properties identified for
demolition by the Agency under NSP program Activity No. 2 named above (the
"Demolition Program"). While the properties identified for demolition are acquired
and held by AHS, the actual demolition work is performed by demolition
contractors selected by the Agency through a competitive RFP process.
Activity No. 4, Housing Opportunities for Households at or below 50% of AMI
program activity (the "Rehabilitation and Rental Program") was implemented
through the approval of a Master Agreement by and between the Agency and a
non-profit housing developer, Mary Erickson Community Housing, Inc. ("MECH"),
which was selected through a competitive NOFA issued by the Agency in 2008.
Through this Master Agreement, MECH was authorized to utilize NSP funds
derived from the Housing Opportunities for Households at or below 50% of AMI
program activity for the purpose of acquiring, rehabilitating and renting eligible
four-plexes within the identified areas of the City to households whose total
income does not exceed 50% of AMI. Per the Agency's Master Agreement with
MECH, these funds will be utilized specifically for the rehabilitation and operation
of 25 four-plexes in the Sunrise Lane and 19`" Street area of the City, which is
further discussed below. Unlike the Demolition and the Rehabilitation and
Resale Programs, neither the Agency nor any assignee, such as AHS, holds title
to these properties at any time. Instead, MECH is responsible for owning and
operating the 25 four-plexes identified as a part of their development agreement
with the Agency.
Under the Agency's approved original Action Plan, the remainder of its NSP
allocation was designated for program administrative costs and homebuyer down
payment assistance. The use of administrative funds is ongoing; however, as
explained further in Section II, the Agency decided to discontinue its NSP Down
Payment Assistance Program and opt to use the one presently being
administered by Agency housing staff with the use of Housing Set-Aside Funds.
To better identify where NSP acquired properties are located, please refer to
Attachment 2, which maps the location of properties acquired or in escrow as of
December 31, 2009 within the NSP Target Zone and their proximity to key
Agency housing projects that are in various stages of development. It is the
Page 2 of 16
REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
NEIGHBORHOOD STABILIZATION PROGRAM
Quarterly Update Report as of 12/31/09
intent of the Agency to cluster various NSP and other housing resources around
these catalytic projects in order to leverage the significant resources dedicated to
their development. It will also serve to show the positive effects of the physical
change to the immediate area around these larger Agency investments brought
about by single family home rehabilitation efforts.
Separately, there are five catalytic projects that have been identified and thus
serve as potential targets for further NSP investment within '/4 mile up to 1 mile
from each of their respective locations. As additional catalytic housing projects
are identified they will be highlighted with the intent to target NSP and other
funding sources in close proximity to further leverage Agency resources.
II. PERFORMANCE AS OF 12/31/09
A. Overall
Since the inception of NSP housing programs through the quarter ending
December 31, 2009, the Agency obligated a total of $2,730,471 ($1,961,913
in program activities and $768,558 in administration) of its NSP funding
allocation. This represents a commitment of 32.5% of the total NSP funds
awarded to the City. The fully allocated program activities at the start of the
administration component will be drawn down over the next three years.
Thus far, the Agency either acquired or placed in escrow five foreclosed
single-family homes to be rehabilitated and eventually sold to low- to
moderate-income households by April of 2010. The Agency also acquired
three four-plexes and two houses that will be demolished and held for future
redevelopment opportunities. Funds were also obligated to MECH for the
purpose of financing the acquisition and rehabilitation of two four-plexes in the
Sunrise Lane and 19th Street area. In sum, the Agency either acquired or
placed in escrow 12 properties since the initiation of its NSP Program, which
represent a total of 27 units. The Agency's overall performance through
December 31, 2009 is summarized in Table 1, included herein as Attachment
3. For a listing of the properties acquired or placed in escrow as of December
31, 2009 under the Agency's NSP housing programs please see Attachment
4.
B. Homebuyer Down Payment Assistance
On December 21, 2009, the Agency received approval from the Mayor and
City Council to re-allocate the NSP funding originally designated for the
Homebuyer Down Payment Assistance Program to other NSP related
Page 3 of 16
REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
NEIGHBORHOOD STABILIZATION PROGRAM
Quarterly Update Report as of 12131/09
housing components. Of the $920,000 originally allocated for down payment
assistance, $520,000 was transferred to the City's Rental Housing
Opportunities for 50% AMI Households Program, and the remaining $400,000
was redirected to the City's Acquisition/Demolition Program. Given the lack
of demand for the Homebuyer Down Payment Assistance Program, due to
current depressed housing market conditions in San Bernardino, the Agency
determined that the community would benefit more from investing these
dollars in other programs that were experiencing greater success, such as the
Rental Housing Opportunities Program and the Acquisition/Demolition
Program named above. This seemed especially prudent in light of the
possibility that these funds would be lost if the Agency were not to invest
them by the HUD imposed deadline of September 2010.
C. Rehabilitation and Resale
During the period covered by this report the Agency obligated $574,851 to the
Rehabilitation and Resale Program. This represents 15.5% of the total NSP
funding originally allocated for this activity. The total obligated amount
includes commitments made by the Agency for properties that are in escrow
or in some other stage of acquisition.
The Agency utilized these funds to acquire five foreclosed single-family
homes during the quarter. These homes are currently being rehabilitated,
and they are expected to be sold to low- to moderate-income households by
April of 2010. Please see Attachment 3, Table 1 for a summary of this
activity.
D. Rehabilitation and Rental
Two properties have been acquired by the developer selected and approved
by the Agency, Mary Erickson Community Housing ("MECH"), in furtherance
of the Agency's Rental Housing Opportunities for 50% AM] Households
Program. A total of $888,242 was committed by the Agency to fund the
acquisition and rehabilitation costs for these two four-plexes. This
commitment level represents approximately 34% of the total funds allocated
towards this housing category. This percentage is taken after adjusting the
funding allocation for this program by the amount that was transferred over
from the Agency's Homebuyer Down Payment Assistance Program, which
was $520,000 (please see Attachment 3, Table 1).
In addition, MECH has also opened escrow on two additional four-plex
properties that will be used for this program and will eventually be purchased
using Tax Increment Low-Mod Housing Set-Aside Funds. This is part of the
Page 4 of 16
REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
NEIGHBORHOOD STABILIZATION PROGRAM
Quarterly Update Report as of 12/31/09
Agency's strategy of leveraging its NSP funding with other sources to make a
significant redevelopment impact in some of the most blighted areas in the
City. In the case of the Rental Housing Opportunities for 50% AMI
Households Program the Agency is combining its NSP funding with NSP
funding for the Acquisition/Demolition Program, Tax Increment Low-Mod
Housing Set-Aside Funds and funding from local banks to redevelop a highly
blighted section of the City, known as the Sunrise Lane and 19th Street Target
Area, that has a high crime rate and absorbs significant City tax revenues and
other resources due to the higher level of attention from police and other City
departments required for this area. Please refer to Attachment 5 for a map of
the Sunrise Lane and 19th Street Target Area showing the location of the
properties encumbered by MECH or the Agency/AHS as of December 31,
2009.
E. Acquisition and Demolition
The Agency obligated approximately $499,000 for its Acquisition/Demolition
Program. This represents 38% of the total NSP funding allocated for this
activity. This percentage is taken after adjusting the funding allocation for this
program by the amount that was transferred over from the Agency's
Homebuyer Down Payment Assistance Program, which was $400,000. The
total obligated amount stated in this narrative includes commitments made by
the Agency for properties that are in escrow or in some formal stage of
acquisition.
With these funds, the Agency acquired three four-plexes and two houses
during the quarter that will be demolished and held for future redevelopment
opportunities.
The NSP funding used for the Agency's Acquisition/Demolition Program is
being used to leverage funding from other sources to make a significant
redevelopment impact in some of the most blighted areas in the City. In the
case of the Acquisition/Demolition Program the Agency is combining this
funding with NSP funding for the Rental Housing Opportunities for 50% AMI
Households Program, Tax Increment Low-Mod Housing Set-Aside Funds and
funding from local banks to redevelop the Sunrise and 19th Project.
F. Program Administration
The Agency has obligated $768,558 for Program Administration during the
period covered by this report. This represents 100% of the total NSP funding
originally allocated for this activity. The Agency utilizes these funds to pay for
such costs as program advertising, project management consultants, and
Page 5 of 16
REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
NEIGHBORHOOD STABILIZATION PROGRAM
Quarterly Update Report as of 12131109
other miscellaneous administrative tasks. Much of the work performed by
Agency Staff and consultants hired to work on NSP housing programs has
been classified as program delivery costs for specific housing programs, and
thus has resulted in a lower utilization of NSP Program Administration funds
than originally anticipated. It is anticipated that as additional staff time is
required for various program activities, the administration line item will be
expended more rapidly.
III. PROJECTED PROGRAM ACTIVITY
Since January 1, 2010 through February 28, 2010 the Agency has made
additional progress acquiring foreclosed properties in furtherance of its various
NSP housing programs. As of the end of February 2010, the Agency had
committed $3,405,744 in NSP funding, which represents approximately 41% of
its total NSP allocation. This funding commitment was used to either acquire or
encumber a total of 27 properties, representing 51 units. For a listing of the
properties acquired or placed in escrow as of February 28, 2010 under the
Agency's NSP housing programs please see Attachment 6. At this expenditure
rate, the Agency is well on track to obligate its entire NSP funding allocation by
the HUD imposed deadline of September 2010, thereby preventing the need to
return any of this funding to the federal government.
As of February 28, 2010, the Agency had obligated $1,193,420 for its
Acquisition/Rehab/Resale Program. This represents approximately 32% of the
total NSP funding originally allocated for this activity. In addition, to encumbering
the five foreclosed homes previously mentioned, the Agency used these funds to
encumber another twelve homes, which are currently in escrow. These homes
will also be rehabilitated and sold to low- to moderate-income households at an
affordable housing cost. This activity increases the number of foreclosed, single-
family homes acquired by the Agency or placed in some form of acquisition
escrow, under this program, to seventeen.
No additional properties have been acquired by MECH, using NSP dollars, in
furtherance of the Agency's Rehabilitation and Rental Program since December
31, 2009. While MECH has not acquired any additional properties using NSP
funds, MECH has opened escrow on two additional four-plex properties that will
be used for the Rehabilitation and Rental Program. However these two
properties will be purchased using Tax Increment Low-Mod Housing Set-Aside
Funds. Unfortunately, these two four-plexes could not be acquired with NSP
funds due to sale terms and conditions that were nonconforming to NSP
guidelines. The addition of these two four-plexes would bring the total number of
properties acquired by MECH to four. This represents 16% of the 25 properties
Page 6 of 16
REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
NEIGHBORHOOD STABILIZATION PROGRAM
Quarterly Update Report as of 12/31/09
that MECH was contracted to acquire, rehabilitate and manage as part of the
Sunrise and 19th Street Project. It is anticipated that under the next NSP Report
for the period ending March 31, 2010, MECH will be able to demonstrate an
expenditure level of up to 90% of NSP Funds. This is based on current
acquisition negotiation with various banks for as many as four additional
properties.
Since the end of the last quarter, the Agency has committed an additional
$57,000 in NSP funding to its Acquisition/Demolition Program, bringing the total
allocated to this activity to $555,000. This represents 42% of the total NSP
funding allocated for this activity. With the additional funding, the Agency
encumbered another single-family home that will also be demolished but is now
in escrow. All of these properties will be held for future redevelopment
opportunities.
In addition to investing in the housing programs originally identified at the
inception of the Neighborhood Stabilization Program, the Agency is investing
NSP dollars in other areas. For example, the Agency is currently working with "A
Time for Change Foundation", a local non-profit organization that assists women
who are homeless and formerly incarcerated or recovering from substance abuse
or domestic violence to eventually live a healthy, independent and drug or
alcohol-free lifestyle. This non-profit recently approached the Agency with a
request for financing to acquire housing that it would use to provide permanent
residential opportunities for its clients. After studying this organization's needs
further, the Agency realized that it could probably use funding from one of its
NSP housing programs to help this organization acquire a suitable, multi-family
building that it could use for this purpose, especially given the vast supply of
foreclosed residential properties currently on the market. The Agency has now
identified one potential property that could be acquired and rehabilitated using
NSP funds to permanently house some of these program participants, typically
women and their children. The Agency is currently in escrow to acquire this
building, and it plans to negotiate a Development Agreement with "A Time for
Change Foundation" in April 2010. Agency Staff will report further progress on
this project in upcoming activity reports.
Finally, the Agency is contracting with local faith-based non-profit housing
developers to rehabilitate and sell some of the properties acquired with NSP
funds. The Agency has executed MOU's with two groups, the Inland Empire
Concerned African American Churches ("IECAAC") and Ecclesia's Economic and
Community Development Collaboration ("EECDC"), from San Bernardino, to
explore opportunities to acquire and rehabilitate properties under the Agency's
NSP housing programs. The Agency will initially hold title to these properties,
leaving the organizations to only act as intermediaries responsible for
Page 7 of 16
REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
NEIGHBORHOOD STABILIZATION PROGRAM
Quarterly Update Report as of 12/31/09
rehabilitating and selling the properties to an income eligible buyer. However, as
these local groups work on more units and develop their capacity and skill sets,
the Agency intends to expand its program with these developers, to allow them to
eventually manage the entire development process, from acquisition to
disposition. These programs benefit the community by increasing the capacity of
local organizations that are capable of developing affordable housing and by
helping the Agency to reach out to a wider client base.
As of the writing of this report, the Agency was negotiating with IECAAC to
acquire, rehabilitate and resell one foreclosed home in the City. The Agency
plans to report on the progress of these negotiations within the next NSP
quarterly report.
IV. CHALLENGES AND OBSTACLES
A. NSP2 APPLICATION DECLINED BY HUD
The Agency's application to the U.S. Department of Housing and Urban
Development ("HUD") for funding from the second round of NSP was declined
in January of 2010. The Agency had hoped to receive approximately $9
million in additional NSP funding through this application. It was expected
that this funding would help pay for the continuation of housing programs
initiated under the first round of NSP funds, such as the Sunrise and 19'"
Project, and the future implementation of other major housing projects
clustered around the five major target areas identified in the map included
herein as Attachment 2.
While the absence of NSP2 funding represents a setback to the Agency,
plans for the development of the five major target areas still remain in effect.
The Agency expects to offset the lack of NSP2 funding with other sources,
such as the Agency's tax-increment housing set-aside funds and HOME
Investment Partnerships Program ("HOME") funding. In addition, there is a
strong possibility that HUD will issue a third round of NSP funding, which will
be allocated on an entitlement basis to pre-designated jurisdictions. Since
the City is a pre-designated entitlement city under HUD, the City would most
likely be guaranteed an additional allocation of NSP funding should the third
round of NSP funding be enacted by HUD.
Page 8 of 16
REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
NEIGHBORHOOD STABILIZATION PROGRAM
Quarterly Update Report as of 12/31109
B. INTERMEDIARY ATTRITION
Since the inception of the Agency's NSP housing programs two of the five
developers selected to provide intermediary services under the Rehabilitation
and Resale Program ("Intermediaries") have opted out of the NSP program.
One of the former Intermediaries, The Nunez Team, decided to resign from
the program due to problems with its general contractor. The other
Intermediary that has opted out, Mercy Housing California, Inc., determined
that it could not compete on a cost basis with other Intermediaries in the
program. This in turn would diminish the number of properties assigned to
them by the Agency, to a level where it would no longer be profitable for them
to participate. Currently, another Intermediary, Jamboree Housing, Inc., is
considering whether it will continue to participate in the Agency's
Rehabilitation and Resale Program. While they want to participate in the
program, their organizational structure poses some legal issues with respect
to the NSP requirements that they might not be able to resolve. Agency Staff
is monitoring this issue and will apprise the Council of any further changes in
intermediary participation.
In spite of the attrition in the Agency's Intermediary pool, enough
Intermediaries still participate in the Agency's NSP housing programs to carry
out the City's NSP activities through completion. Two of the original
Intermediaries selected, ANR Industries, Inc. and GFR Enterprises, Inc., still
remain in the program, and they have the experience and capacity to
compensate for any loss in production capability incurred from the absence of
The Nunez Team and Mercy Housing, Inc. In addition, on January 4, 2010,
the Agency added Inland Empire Affordable Housing Organization, LLC
("IEAHO") as an Intermediary under the Rehabilitation and Resale Program.
As one of the original developers selected as a finalist for participation in the
Rehabilitation and Resale Program, IEAHO had previously demonstrated that
it had the experience, resources and capacity to serve as an Intermediary, but
had scored lower than the firms that were originally selected. IEAHO, applied
under a different name, Omni International, Inc., at the beginning of the
Rehabilitation and Resale Program. Both IEAHO and Omni International, Inc.
are managed by Jian Torkan.
C. FINDING ACQUISITION OPPORTUNITIES AROUND THE FIVE MAJOR
TARGET AREAS
While the Agency receives many listings of foreclosed residential properties
within the City of San Bernardino, many, if not most, of these properties do
not conform to the acquisition requirements imposed by the NSP Program.
Most of the foreclosed properties offered by the banks that the Agency deals
Page 9 of 16
REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
NEIGHBORHOOD STABILIZATION PROGRAM
Quarterly Update Report as of 12/31/09
with are located outside the NSP eligible area, otherwise known as the NSP
Target Zone. Therefore, the Agency must pass on these properties. Of the
properties offered for sale that are located within the NSP Target Zone, many
cannot be acquired by the Agency due to various reasons. Frequently the
Agency is not able to get the one percent (1%) discount on price that is
required by the NSP Program, or the Agency is outbid by private investors.
Also, many times the Agency is not able to submit a bid for a property within
the escrow period required by the seller. These are just some of the reasons
limiting the Agency's acquisition opportunities under the NSP Program. The
impact of these limiting factors is that the Agency has had difficulty acquiring
a critical mass of properties around the five major target areas.
The Agency is working to cultivate other sources of eligible properties for
purchase, such as establishing a direct relationship with Fannie Mae, and
utilizing sources of financing other than NSP that are not as restrictive, in
order to accumulate a significant number of properties around the five major
target areas.
Page 10 of 16
REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
NEIGHBORHOOD STABILIZATION PROGRAM
Quarterly Update Report as of 12/31/09
ATTACHMENT
NSP TARGET ZONE MAP
Page 11 of 16
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NEIGHBORHOOD STABILIZATION PROGRAM
Quarterly Update Report as of 12/31109
ATTACHMENT 2
MAJOR TARGET AREAS MAP
Page 12 of 16
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REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
NEIGHBORHOOD STABILIZATION PROGRAM
Quarterly Update Report as of 12/31/09
ATTACHMENT
NSP PROGRAM PERFORMANCE MEASURES
AS OF DECEMBER 31, 2009
Page 13 of 16
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REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
NEIGHBORHOOD STABILIZATION PROGRAM
Quarterly Update Report as of 12131/09
ATTACHMENT 4
NSP PROPERTIES ENCUMBERED
AS OF DECEMBER 31, 2009
Page 14 of 16
ECONOMIC DEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
NEIGHBORHOOD STABILIZATION PROGRAM
PROPERTIES ACQUIRED OR IN ESCROW AS OF 12/31/09
AHS Properties- Rehab/Resale Program
Number Purchase
No. Address of Units Price
1 1605 Guthrie Street 1 $98,000
2 1725 Mountain View Avenue 1 $37,320
3 2036 E. 17th Street 1 $93,500
4 1519 W.Virginia Avenue 1 $44,055
5 2091 Sepulveda Blvd. 1 $70,000
Sub-total 5 $342,875
AHS Properties- Demolition Program
Number Purchase
No. Address of Units Price
1 2044 Sunrise Lane 4 $140,000
2 2165 E. 19th Street 4 $147,500
3 1058 Sierra Way 1 $45,000
4 1888 Argyle Street 4 $153,450
5 202 E. 19th Street 1 4 900
Sub-total 14 $490,850
MECH Properties- Rehab/Rental Program
Number Purchase
No. Address of Units Price
1 2194 E. 19th Street 4 $145,500
2 2030 E. 19th Street 4 $148,500
Sub-total 8 $294,000
TOTAL 27 $1,127,725
REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
NEIGHBORHOOD STABILIZATION PROGRAM
Quarterly Update Report as of 12/31/09
ATTACHMENT
SUNRISE AND 19TH STREET TARGET AREA MAP
Page 15 of 16
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REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
NEIGHBORHOOD STABILIZATION PROGRAM
Quarterly Update Report as of 12/31109
ATTACHMENT
NSP PROPERTIES ENCUMBERED
AS OF FEBRUARY 28, 2010
Page 16 of 16
ECONOMIC DEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
NEIGHBORHOOD STABILIZATION PROGRAM
PROPERTIES ACQUIRED OR IN ESCROW AS OF 2/28/10
AHS Properties- Rehab/Resale Program
Number Purchase
No. Address of Units Price
1 1605 Guthrie Street 1 $98,000
2 1725 Mountain View Avenue 1 $37,320
3 2036 E. 17th Street 1 $93,500
4 1519 W. Virginia Avenue 1 $44,055
5 2091 Sepulveda Blvd. 1 $70,000
6 1138 E. 38th Street 1 $155,304
7 545 Mikalor Avenue 1 $78,000
8 1218 Blackstone Avenue 1 $43,476
9 2177 E. 18th Street 1 $83,000
10 1804 W. 20th Street 1 $82,665
11 2314 Pennsylvania Avenue 1 $48,000
12 3645 Mountain Avenue 1 $97,000
13 1551 Wall Avenue 1 $67,320
14 1873 Gilbert Avenue 1 $122,000
15 1659 Dumbarton 1 $98,000
16 568 Mikalor Avenue 1 $89,900
17 2104 E. 18th Street 1 $96,000
Sub-total 17 $1,403,540
AHS Properties - Demolition Program
Number Purchase
No. Address of Units Price
1 2044 Sunrise Lane 4 $140,000
2 2165 E. 19th Street 4 $147,500
3 1058 Sierra Way Avenue 1 $45,000
4 1888 Argyle Street 4 $153,450
5 202 E. 19th Street 1 4 900
Sub-total 14 $490,850
1
ECONOMIC DEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
NEIGHBORHOOD STABILIZATION PROGRAM
PROPERTIES ACQUIRED OR IN ESCROW AS OF 2/28/10
MECH Properties- Rehab/Rental Program
Number Purchase
No. Address of Units Price
1 2118 East 19th Street 4 $133,500
2 2082 E. 19th Street 4 $180,000
3 2205 Sunrise Lane 4 $150,480
4 2104 East 19th Street 4 $133,500
5 2285 Sunrise Lane 4 $126,507
Sub-total 20 $723,987
TOTAL 51 $2,618,377
2