HomeMy WebLinkAboutR32- Economic Development ECONOMICYDEOF SAN VELOPPMENITOAGENCY ORIGINAL
FROM: Emit A.Marzullo SUBJECT: Single-Family Residence Revitalization Program
Interim Executive Director Fourth Quarter (April 1, 2010 through June 30,
2010) and Annual Report (July 1, 2009 through
June 30,2010)
DATE: August 20,2010
Synopsis of Previous Commission/Council/Committee Action(s):
On August 19, 2010, Redevelopment Committee Members Johnson, Marquez 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 receive and file the Quarterly and
Annual Update Report of the Single-Family Residence Revitalization Program activities for the Redevelopment
Agency of the City of San Bernardino
Contact Person(s): Carey K.Jenkins Phone: (909)663-1044
Project Area(s): All Ward(s): All
Supporting Data Attached: Z Staff Report O Resolution(s)0 Agreements)/Contract(s)0 Map(s)0 Letter(s)
FUNDING REQUIREMENTS: Amount: $ -0- Source: N/A
Budget Authority: N/A
Signature: Fiscal Review:
Emil A. arzull G i Executive Director Lori 4o- ry,I Rmancial Officer
Commission/Council Notes:
i
i
euV�o= co ismomcac NIMw 40 Si4e.Fmly Q�yRgp samc COMMISSION MEETING AGENDA
Meeting Date: 09/07/2010
Agenda Item Number:
>�Z
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
SINGLE-FAMILY RESIDENCE REVITALIZATION PROGRAM FOURTH QUARTER
(APRIL 1,2010 THROUGH JUNE 30,2010)AND ANNUAL REPORT
(JULY 1,2009 THROUGH JUNE 30,2010)
BACKGROUND:
Since September of 1999, the Economic Development Agency of the City of San Bernardino
("Agency") has contracted with Neighborhood Housing Services of the Inland Empire ("NHSIE") to
perform certain functions associated with the Agency's various housing activities. These services
include implementing the Single-Family Beautification Loan/Grant Program, Mobile Home Chant
Program and the Homebuyer Education Program (collectively, "Programs").
In addition, since August of 2000, the Agency has contracted with the Oldtimer's Foundation (the
"Foundation") to perform certain functions associated with other Agency housing activities. These
services are aimed at assisting lower income senior citizen and special needs homeowners within the
City of San Bernardino ("City") and include implementing the Minor Grant Repair Program which
provides repair assistance to include, but is not limited to plumbing, heating, electrical, carpentry and
general minor repairs. .
On October 20, 2008, the Agency's Integrated Housing Strategy ("Strategy") was approved by the
Community Development Commission of the City of San Bernardino ("Commission"). Included in
this Strategy is a key component of single-family homeownership and neighborhood revitalization,
designed to enhance residential neighborhoods and promote home ownership. The activities
associated with the homeowner beautification grant and rehabilitation loan programs administered by
NHSIE and the minor repairs grant program administered by the Foundation are integral parts of this
component.
NHSIE
On June 30, 2010, NHSIE completed the final year of its recent three-year contract with the Agency.
In order to create a more efficient, goal oriented and cost effective program, the Agency and NHSIE
worked together to modify Program activities. The result of this collaborative effort was four amended
agreements to the original contract that were approved by the Commission on July 7, 2009. This
coincided with the final year of their 3-year contract cycle. Contained within these amendments were
four separate activities that included: 1) Mobile Home Grant Program; 2) Single-family Beautification
Program; 3) Single-family Rehabilitation Loan Program; and the 4) Homebuyer Education Program.
For FY 2009-2010, the Agency allocated to NHSIE activities, a budget of$2.18 million derived from
its Low and Moderate Income Housing Funds and HOME Funds for the implementation of the
Programs. The breakdown of funds was as follows:
P'\ApWaa\f:omm D Com Won\CSC 201=b -10 Si* Fwly Qunnly Report SR.doc COMMISSION MEETING AGENDA
Meeting Date: 09/07/2010
Agenda Item Number: 31-
Economic Development Agency Staff Report
Single-Family Quarterly Report
Page 2
ACTIVITY AMOUNT SOURCE
Program Administration—Grant and Loan $320,000 Low-Mod
Program Administration—Mobile Home $40,000 HOME
Mobile Home Grant Pro (agreement 1 $160,000 HOME
Beautification Grant Program (agreement 2 $1,080,000 Low/Mod
Rehabilitation Loan Program (agreement 3 $500,000 Low/Mod
Homebu er Education Pro (agreement 4 $80,000 HOME
TOTAL $2,180,000
Included within the FY 2009-2010 agreements, were identified numerical targets for the numbers of
transactions for each program. The table below details the previously agreed upon number of
transactions.
Program Proposed
Numerical Target
Single-Family Beautification Grant 87
Single-Family Rehabilitation Loan 10
Mobile Home Grant 32
Homebuyer Education Program 1,200 potential homebuyers; at least
300 attendees to reside or work in
the City of San Bernardino
FOUNDATION
In November 2006, the Commission approved Amendment No. 1 to the Agreement between the
Agency and the Foundation in the amount of $100,000 with fifteen percent (15%) allowed for
administration, renewable annually for an additional three (3) years. The amount allocated to the
Foundation was increased from $75,000 to $100,000 due to the rising cost of materials. The grant
amount was also increased from$750 to $1,000 per household.
On June 30, 2010,the Foundation completed Amendment No. 2 to the Contractor Services Agreement,
amending and extending their previous agreement and authorized $102,655 be allocated to the
Foundation for the six-month term through June 30, 2010. The grant amount was also increased from
$1,000 to $1,600 per household. The breakdown of funds is as follows:
ACTIVITY AMOUNT SOURCE
Program Administration $15,398 Low/Mod
Minor Repairs Grant Program $87,257 Low/Mod
TOTAL $102,655
i PUVnd To=De mmisuon\ NIMM7-I0 Sinel Fa yQuu yFe SkA COMMISSION MEETING AGENDA
Meeting Date: 09/07/2010
r
t
Agenda Item Number:
Economic Development Agency Staff Report
Single-Family Quarterly Report
Page 3
CURRENT ISSUE:
NHSIEACTIVITIES
For the quarter ending June 30, 2010, NHSIE completed 14 beautification grants. There were no
rehabilitation loans or mobile home grants completed. This is equal to 14 separate transactions for the
quarter and 77 separate transactions for the full year.
From an expenditure standpoint, NHSIE expended a total of$154,931 for the quarter and $974,264
year-to-date in direct Program delivery activities. The table below details the number of completed
activities, levels of expenditures and the average cost per transaction, for the recent quarter and year-
to-date (April 1 through June 30)by Program type.
Program Completed Expenditure Avg.Transaction Cost
Activities
June 30 Qtr Full June 30 Qtr Full Year June 30 Qtr Full Year
Year
Beautification 14 65 $154,931 $869,956 $11,067 $13,384
Grant
Rehabilitation 0 1 $0 $50,000 $50,000 $50,000
Loan
Mobile Home 0 11 $0 $54,308 $4,977 $4,937
Grant
TOTAL 14 77 $154,931 $974,264 $11,067 1 $12,653
From a numerical target standpoint, NHSIE has reached 75% of the beautification grant, 10% of the
rehabilitation loan and 34% of the mobile home grant; falling short of meeting the originally agreed
upon numerical target numbers by 25% of the beautification grant, 90% of the rehabilitation loan and
66% of the mobile home grant. The table below details the percent to the proposed quota that was met
and the unmet target percentages for the full year.
% of Proposed Numerical % of Proposed Numerical
Target Met Target Not Met
Program Full Year Full Year
Beautification Grant 75% 25%
Beautification Loan 10% 90%
Mobile Home Grant 34% 66%
Please see Attachments I and 2 for the locations of program activities and approved funding indicated
by Ward. The maps identify this information for the most recently completed quarter and for the fiscal
year-to-date through June 30, 2010, respectively. Further examples of completed activities,
Attachment 3 includes before and after pictures of three representative Beautification Grant projects
conducted during the most recent quarter.
vwe:m.. == commis®onc 201MM7-10 Sin Ii F.mny Qu. yRe nSka COMMISSION MEETING AGENDA
Meeting Date: 09//0712010
Agenda Item Number: P-52—
Economic Development Agency Staff Report
Single-Family Quarterly Report
Page 4
Furthermore, for the recent quarter, 178 persons participated in the Homebuyer Education classes
administered by NHSIE at their San Bernardino office located at 1390 North "D" Street. From these
participants, 39 were residents of the City equating to 21% of the total persons who participated in the
classes during this reporting period.
In addition, from the 178 participants in the class, 39 City homeowners were created, equating to 22%
of the total persons who received home buyer training.
The table below details the number of prospective buyers completing homebuyer education and the
percentage completed based upon the agreed goal at the start of the fiscal year, which was a minimum
of 25%of participants that needed to live and/or work in the City.
Program Com leted Activities % To Quota
Participants SB Residents Participants SB Residents
June 30 Full June 30 Full Full Year Full Year
Qtr Year Qtr Year
Homebuyer Education 178 587 39 127 49% 42%
Program
Through June 30, NHSIE has trained 587 prospective homeowners, of which, 127 were San
Bernardino residents. The 587 participants represent approximately 49% of the 1,200 participants
NHSIE has contracted to train this year. Similarly, the 127 participants trained represent
approximately 42%of the 300 attendees that must currently live or work in the City.
FOUNDATIONACTIVITIES
As of June 30, 2010, the Foundation completed 27 minor repair grants. This equals 27 separate
transactions for the quarter and 67 separate transactions year-to-date.
From an expenditure standpoint, the Foundation expended a total of $19,629 for the quarter and
$50,996 year-to-date in direct Program delivery activities. The table below details the number of
completed activities, levels of expenditures and the average cost per transaction for the recent quarter
and full year(July 1, 2009 through June 30, 2010).
Program Completed Activities Ex enditore Avg. Transaction Cost
June 30 Qtr Full June 30 Qtr Full Year June 30 Qtr Full Year
Year
Minor Repairs 27 67 $19,629 $50,996 $727 $761
Grant
Please see Attachments 1 and 2 for the locations of program activities and approved funding indicated
by Ward. The maps identify this information for the most recently completed quarter and for the full
fiscal year through June 30,2010,respectively.
P\AgW \CommD Commisslon� DC 3glo` 7-10 SineeFmnily Qmttmly Report SKA COMMISSION MEETING AGENDA
Meeting Date: 09/07/2010
Agenda Item Number: -f_32
Economic Development Agency Staff Report
Single-Family Quarterly Report
Page 5
In total, both NHSIE and the Foundation have completed 41 separate transactions for the quarter and
144 for the year ending June 30, 2010.
From an expenditure standpoint, NHSIE and the Foundation collectively have expended a total of
$174,560 for the quarter and $1,025,260 for the year in direct Program delivery activities. The table
below details the number of completed activities, levels of expenditures and the average cost per
transaction, for the recent quarter and year-to-date(July 1 through June 30).
Program Completed Activities Expenditure Avg. Transaction Cost
Administrator
June 30 Qtr Y-to-D June 30 Qtr Y-to-D June 30 Qtr Y-to-D
NHSIE 14 77 $154,931 $974,264 $11,067 $12,653
The Foundation 27 67 $19,629 $50,996 $727 $761
TOTAL 41 144 $174,560 $1,025,260 $4,258 $7,120
Summarizing program activities for the year is a table that depicts proposed and actual outcomes for
both NHSIE and the Foundation for the period July 1,2009 through June 30, 2010.
Income Levels
The source of funds for program activities require the Agency, through NHSIE and the Foundation, to
assist Homeowners whose household income does not exceed certain levels. For HOME Funds, this
amount cannot exceed 80% of the Area Median Income ("AMP'), adjusted for family size. Similarly,
Housing Set-Aside Funds must be targeted to households at or below 120% of the AMI, also adjusted
for family size. Below is a chart that shows the number of households, by income level, assisted with
Agency Funds.
Income Level Very Low Low Moderate
<50%AMI 50-80%AMI 81-120%AMI
#of Households #of Households #of Households
June 30 Full June 30 Full June 30 Full
QTR Year QTR Year QTR Year
Fund Type
HOME 0 9 0 2 0 0
Set-Aside 12 52 15 57 14 25
TOTAL 12 61 1 15 59 1 14 25
Through June 30, 2010, a total of 61 very low-income families, 59 low-income families and 25
moderate-income families, for a total of 145 households,have been assisted with Agency Funds.
The difference between the 144 total households indicated earlier in the Current Issue section of this
report and the numbers indicated above is due to one household receiving both a Rehabilitation Loan
and Beautification Grant during the quarter ending December 31, 2009. Therefore, they were counted
as just one household in this section.
P 4e sTO De Commisswnl 201M�-10 Sirol F=Uy Qmaly Report Skd COMMISSION MEETING AGENDA
Meeting Date: 09/07/2010
Agenda Item Number: pl;Z
Economic Development Agency Staff Report
Single-Family Quarterly Report
Page 6
Program Outcomes for the Year
Actual Unallocated
Goal for for the Funds/ % of Unmet
the Year Year Unmet Goal Goal for the
for the Year Year
NHSIE
Grant/Loan Programs
Program Funds Expended $1,740,000 $974,264 $765,736 44%
Completed Activities 129 77 52 40%
Homeowner Contribution Dollar $18,684 N/A N/A N/A
Amount
Homebuyer Education Pro ram
Participants 1200 587 613 N/A
SB Residents 300 127 173 N/A
Oldtimers
Grant Pro ram
Program Funds Expended $87,257 $50,996 $36,261 42%
Completed Activities 85 67 18 21%
Income Levels Served
Very Low: <50%AMI 61 12 N/A N/A
Low: 50-80% 59 15 N/A N/A
Moderate: 81 — 120%AMI 25 14 N/A N/A
As evidenced in the table above, NHSIE completed 77 grant/loan activities for the year, but failed to
meet the original numerical target by 52 activities or 40%of their annual goal as per the agreement that
closed on June 30, 2010.
From an expenditure standpoint, NHSIE expended $974,264 during the fiscal year and fell short of
expending the entire amount of$1,740,000 by $765,736, or 44% of the budgeted funds for the year as
per the agreement that closed on June 30, 2010.
Administrative Update
An important change to the recent NHSIE Amendments includes reducing the Single-Family
Beautification Grant amount from $15,000 to $10,000 per property with an additional dollar-for-dollar
match from the Homeowner for repairs in excess of $10,000. This Homeowner match is capped at
$5,000. Based on the Homeowner's match, the total beautification activity could equal a maximum of
$20,000 per project($15,000 in Agency Funds plus $5,000 in Homeowner Funds).
P:1AgendulCO D Com ai nl 201010497-10 Sii [l Family Quu y Re ft Sk. COMMISSION MEETING AGENDA
Meeting Date: 09/07/2010
Agenda Item Number:
Economic Development Agency Staff Report
P:WgendaslComm Dev CommissionlCDC 2010109-07-10 Single-Family Quarterly Report SR.doc
Page 7
This Program change is based on the theory that an owner who is willing to allocate a portion of their
own capital to the overall beautification effort is more incentivized to maintain their property and be a
responsible homeowner for the long term. This is in contrast to the homeowner receiving the full grant
amount of$15,000 as was the previous design of the Program.
Since implementing the new amendments, a total of nine projects have been completed to-date, using
Homeowner Funds. One was completed in the first quarter in the amount of$731, one was completed
during the second quarter in the amount of $975, three were completed in the third quarter in the
amount of$6,377 and four were completed in the fourth quarter in the amount of$10,601 for a total
homeowner contribution amount of$18,684 for the full program year.
Since implementing the new amendments, NHSIE and Agency Staff have participated in thirteen
Application Review Committee meetings which consist of reviewing potential grant and loan
application packages; and continue to work together towards meeting the specified job numbers and
expenditure levels under the current Program Agreement.
In anticipation of completion of the FY 2009-2010 contract with NHSIE and the six-month contract
with the Foundation, Agency Staff released a Single-Family Homeownership and Revitalization
Program Services Request for Proposals on February 3, 2010.
As a result, on August 2, 2010, the Commission approved and authorized the Interim Executive
Director of the Agency to execute separate three (3) year Agreements, renewable annually, by and
between the Agency and the following organizations:
1. Neighborhood Housing Services of the Inland Empire ("NHSIE") for the administration of
the Single-Family Beautification Grant Program for an amount of$784,875 from the Agency's
Low and Moderate Income Housing Fund, the Single-Family Rehabilitation Loan Program for
an amount of $287,500 from the Agency's Low and Moderate Income Housing Fund and the
Homebuyer Education Services for an amount of Three Hundred Dollars ($300) for each
participant who resides or who works in the City who completes the Homebuyer Education
Program from the Agency's HOME Funds, all subject to annual funding availability
2. Inland Housing Development Corporation ("IHDC") for the administration of the Single-
Family Beautification Grant Program for an amount of$603,750 from the Agency's Low and
Moderate Income Housing Fund and the Single-Family Rehabilitation Loan Program for an
amount of$287,500 from the Agency's Low and Moderate Income Housing Fund, all subject
to annual funding availability
3. The Oldtimers Foundation for the administration of the Mobile Home Grant Program for an
amount of $184,000, from the Agency's HOME Funds and the Elderly/Special Needs Minor
Repair Grant Program for an amount of$92,000 from the Agency's Low and Moderate Income
Housing Fund, all subject to annual funding availability
PUgodu\Comm nev Commivloa\C 20HW9-07-10 SiiyIo-Family Qmn yRepot Sk& COMMISSION MEETING AGENDA
Meeting Date: 09/07/2010
Agenda Item Number: R'3 Z
Economic Development Agency Staff Report
P:WgendaslComm Dev CommissionlCDC 2010109-07-10 Single-Family Quarterly Report SR.doc
Page 8
The Foundation completed 67 grant activities for the year, but failed to meet the original numerical
target by 18 activities or 21%of their annual goal as per the agreement that closed on June 30,2010.
From an expenditure standpoint, the Foundation expended $50,996 during the fiscal year and fell short
of expending the entire amount of$87,257 by $36,261, or 42% of the budgeted funds for the year as
per the agreement that closed on June 30, 2010.
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 respective contracts between the Agency and
NHSIE and the Agency and the Foundation have been funded through the FY 2010-2011 Agency
Budget, and is derived from the Agency Housing Set-Aside Funds and HOME Funds.
Account Budgeted Amount: $ 0- Balance as of: August 23,2010
Balance after approval of this item: N/A
RECOMMENDATION:
That the Community Development Commission adopt the Motion.
:E0 -
Emil A.Marzullo,In Brim Executive Director
P.w¢aad Tatum no.Commismon Cmi�-10 Side-Pmily Qaancly Reel SK aoc COMMISSION MEETING AGENDA
Meeting Date: 09/07/2010
Agenda Item Number:
ATTACHMENT 1
City of Bernardino
Single Family Residence • •• Activities for Quarter • • June 30, 2010
Ward Beautification Grant Mobile Home Grant Minor Re pairs Grant Total
Number Amount Number Amount Number Amount Number Amount Legend
1 1 $10,000.00 2 $2,033.60 3 $12,035.60
2 2 $30,000.00 3 $2,304.13 5 $32,304.13 Beautification Grant (14)
3 1 $10,000.00 3 $1,898.48 4 $11,898.48
4 1 $10,800.00 2 $1,209.26 3 $11,209.26 Minor Repairs Grant (27)
5 3 $30,400.00 1 $751.40 4 $31,151.40 1
6 2 $19,825.00 14 $10,364.55 16 $30,189.55 78 Mobile Home Grant (0)
7 4 $44,706.00 2 $1,067.81 6 $45,773.51 Annexation 3067
total 14 $154,931.00 0 $0.001 27 1 $19,629.23 41 $174,560.23
See Footnote 1
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Annexation 3067(6 Parts)have been challenged in the INE z g
pending Hake versus LAFCO City case,which was filed o z �' TR
in court on February 25,2010. �0P PC`
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ATTACHMENT
City of Bernardino
Single Family Residence Revitalization Program for -ar 2009-2010
Ward Beautification Grant Mobile Home Grant Ntinor Repairs Grant AFR Rehabilitation Loan Total
Number Amount Number Amount Number Amount Number Amount Number Amount
1 4 $54,990.00 14 $12,098.46 18 $67,038.46
2 5 $72,556.00 5 $4,154.73 10 $76,710.73
3 3 $40000.00 SO $49,818.00 7 $5,164.31 20 $94,982.31
4 8 $97223.00 1 $4,490.00 4 $2715.96 13 $104,428.96
5 11 $149,609.00 2 $1,302.49 13 $150,911.49
6 20 $266,369.25 32 $23,662.65 52 $290,031.90
7 14 $189,209.00 3 $1,897.79 1 $50,000.00 18 $241,106.79
Total 65 $869,956.25 11 $54,30&001 67 $50,996.39 1 $50,000.00 144 $1,025,260.64
RF°O�rl
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Beautification Grant(65)
�4
Mobile Home Grant(11)
Minor Repairs Grant(67)
1 O SFR Rehabilitation Loan(1)
Annexation 3067
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