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HomeMy WebLinkAboutR30- Economic Development Agency CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY ORIGINAL FROM: Emil A.Marzullo SUBJECT: Neighborhood Housing Services of the Inland Interim Executive Director Empire ("NHSIE^) annual update of program activities for the Fiscal Year ending June 30, 2009 DATE: August 27,2009 Synopsis of Previous Commission/Council/Committee Action(s): On August 20,2009,Redevelopment Committee Members Johnson, Baxter and Brinker unanimously voted to recommend that the Mayor and Common Council and/or 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 annual update of program activities provided by the Neighborhood Housing Services of the Inland Empire Contact Person(s): Carey K.Jenkins Phone: (909)663-1044 Project Area(s): N/A Ward(s): All Supporting Data Attached: 0 Staff Report❑Resolution(s)❑Agreement(s)/Contract(s)0 Map(s)❑Letter(s) Funding Requirements: Amount: $ -0- Source: N/A Budget Authority: N/A Signature: Fiscal Review. Emi Marzullo,Interlint Executive Director RNs DeJ sus Administrative Services Director --------- ----------------------------------------- ------- Commission/Council Notes: P:\Agendu\Comm Dev Commission\CDC2009\09-21-09 MSOS Mwal Updme FINAL SR dm COMMISSION MEETING AGENDA Meeting Date: 09/21/2009 Agenda Item Number: i � ECONOMIC DEVELOPMENT AGENCY STAFF REPORT NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE("NHSIE")ANNUAL UPDATE OF PROGRAM ACTIVITIES FOR THE FISCAL YEAR ENDING NNE 30,2009 BACKGROUND: Since September of 1999, the Redevelopment 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 housing program. These services include implementing the Single-Family Beautification Loan/Grant Program, Mobile Home Grant Program and the Homebuyer Education Program (collectively, "Programs"). 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 are an integral part of this component. Expenditures For FY2008-2009, the Agency allocated to NHSIE activities a budget of$2.1 million derived from its Low and Moderate Income Housing Fund and HOME Fund for the implementation of the Programs. The budgeted funding amounts for the year included: BUDGETED EXPENDITURES BY ACTIVITY SOURCE AMOUNT Program Administration- Single-Family Beautification Grant/Loan Low/Mod $320,000.00 Pro am Program Administration-Mobile Home Grant Program HOME $40,000.00 Pre-Development Costs* Low/Mod $5,000.00 Mobile Home Grant Program HOME $160,000.00 Single-Family Beautification Grant/Loan Program Low/Mod $1,575,000.00 TOTAL $2,100,000.00 *Includes costs such as cancelled title policies,architecture and engineering, lead-based paint testing and inspections, as necessary. This is compared to actual expenditures for the year by the same cate oriel: ACTUAL EXPENDITURES BY ACTIVITY SOURCE AMOUNT Program Administration- Single-Family Beautification Grant/Loan Low/Mod $320,000.00 Pro am Program Administration-Mobile Home Grant Program HOME $40,000.00 Pre-Development Costs Low/Mod $350.00 Mobile Home Grant Program HOME $54,985.00 Single-Family Beautification Grant/Loan Program Low/Mod $1,101,940.50 TOTAL $1517,275.50 PWgmdas\CommD Com ission\CDC20MN-21-09 NHSM Annual Updan MN Milne COMMISSION MEETING AGENDA Meeting Date: 099//211/22009 Aoonds, rtom Nnmha.r- 9.36 i Economic Development Agency Staff Report NHSIE Annual Update FINAL Page 2 i On an annualized basis, NHSIE under spent their contract by $582,724.50 for the recently completed fiscal year. This is detailed by the following categories: Program administration dollars for the Single-Family Beautification Grant/Loan Program and the Mobile Home Grant Program were fully spent; Pre-Development Costs were under spent by $4,650.00; Mobile Home Grant Program delivery activity costs were under spent by $105,015.00; and Single-Family Beautification Grant/Loan Program delivery activity costs were under spent by$473,059.50. On a quarterly basis, NHSIE expended a total of$364,444.00 for the April 1 through June 30 period. The breakout of expenditures by category are as follows: Single-Family Beautification Grant Program delivery activity costs totaled $359,944.00; Mobile Home Grant Program delivery activity costs totaled $4,500.00; there were no Single-Family Beautification Loan delivery costs. From an expenditure standpoint, NHSIE expended a total of$364,444.00 for the quarter ending June 30 and $1,156,925.50 year-to-date in direct Program delivery activities. Work Production For the quarter ending June 30, 2009,NHSIE completed 25 beautification grants, 0 beautification loans and 1 mobile home grant. This is equal to 26 separate transactions for the quarter. From July 1, 2008 through June 30, 2009, NHSIE completed 73 beautification grants, 1 beautification loan and 12 mobile home grants for a total of 86 separate transactions,year-to-date. Actual Production Numbers by Activity 4t Quarter Total Annual Total Single-Family Beautification Grant Program 25 73 Single-Family Singlc-Family Beautification Loan Program 0 1 Mobile Home Grant Program 1 12 TOTAL 26 86 Combined Production From a production standpoint for the final quarter and fiscal year combined, NHSIE completed 25 beautification grants in the final quarter and 73 beautification grants for the year; zero (0) beautification loans for the quarter and one (1) beautification loan for the year; and one (1)mobile home grant for the quarter and 12 mobile home grants for the year. From an expenditure standpoint, NHSIE expended a total of $359,944.00 in Single-Family Beautification Program delivery costs for the quarter and $1,051,940.50 for the year. This equated to an average transaction cost for the quarter of $14,397.76 and $14,410.14 for the year. The data reported for the Single-Family Beautification Loan Program shows that zero (0) dollars were expended on program delivery costs for the quarter and $50,000.00 was expended for the year; allowing for an average transaction cost of zero (0) dollars for the quarter and $50,000.00 for the year. For the Mobile Home Grant Program, $4,500.00 was expended during the final quarter and $54,985.00 for the year. This equates to an average transaction cost of$4,500.00 for the quarter and $4,582.08 for the year. The table below details the number of completed activities, levels of expenditures and average cost per transaction for the recent quarter and the full year by Program type. P:\AgendasTonunD ConunissionTDC20OM-21-W NHSD:Annual Update MAL SRdoc COMMISSION MEETING AGENDA Meeting Date: 099/211/2'009 Agenda Item Number: k ` i Economic Development Agency Staff Report NHSIE Annual Update FINAL Page 3 3 Completed Program Activities Expenditure Avg.Transaction Cost June 30 Y-to-D June 30 Otr Y-to-D June 30 Otr Y-to-D Q-tr Beautification 25 73 $359,944.00 $1,051,940.50 $14,397.76 $14,410.14 Grant Program Beautification 0 1 $0 $50,000.00 $0 $50,000.00 Loan Program Mobile Home 1 12 $4,500.00 $54,985.00 $4,500.00 $4,582.08 Grant Program TOTAL 1 26 86 1 $364,444.00 $1,156,925.50 $14,017.00 $13,452.62 Please see Attachments 1 and 2, respectively, for the locations of Programs activities and approved funding indicated by Ward. The two maps identify this information on a quarterly basis through June 30, 2009, and a fiscal year-to-date through June 30,2009. The location of these activities and selection of residences were selected by NHSIE on a first come-first served basis. Presently, NHSIE works from a list of property owners who have requested these services. Once an initial qualifying assessment is made by NHSIE, the property is placed on a waiting list. Because of the popularity of the program, representatives of NHSIE have confirmed the waiting list is backlogged by more than one year. For Fiscal Year 2008-2009, 1,071 persons participated in the Homebuyer Education classes administered by NHSIE at their San Bernardino office located at 1390 North "D" Street. From these participants, 78 San Bernardino City homeowners were created. This equates to 7% of the total persons who participated in the classes. Analysis and Findines Upon conducting an analysis of the funds spent for direct Programs activities it would appear NHSIE did not completely spend their allocated resources for the year. This is counter to their expenditure of administrative funds which were fully expended as of June 30, 2009. These figures are more fully detailed in the information provided below. Of the $1,575,000.00 allocated for use with the Beautification Grant/Loan Program, only $1,101,940.50 was evidenced as being used for completed projects. This left a balance of $473,059.50 remaining for an equivalent of 32 additional households to address. Similarly, of the $160,000.00 allocated for use with the Mobile Home Grant Program, a total amount of $54,985.00 was used for completed projects; leaving a remaining balance of$105,015.00, or the equivalent of 21 additional households that could have been completed. Pre-Development Costs were also under-spent by $4,650.00, though funds for this activity vary based on need and circumstances and are often tied to the Rehabilitation Loan component of NHSIE activities. In total, of the $1,740,000.00 allocated for direct Programs activities, NHSIE spent $1,157,275.50; leaving a balance of$582,724.50, or an average equivalent of 53 additional projects that could have been completed with these available funds. P:\AVndes\Comm De Commission\CDC2009\09-21-09 NHSIE Amal Updaw FINAL SRdm COMMISSION MEETING AGENDA Meeting Date: 099/21/22009 Agenda item Number. n Jo i Economic Development Agency Staff Report NHSIE Annual Update FINAL Page 4 ' Allocated Remaining Additional { Program Amount Amount Spent Balance Projects Beautification Grant/Loan Program $1,575,000.00 $1,101,940.50 $473,059.50 32 j Mobile Home Grant Program $160,000.00 $54,985.00 $105,015.00 21 Pre-Development Costs $5,000.00 $350.00 $4,650.00 N/A TOTAL $1,740,000.00 $1,157,275.50 $582,724.50 53 CURRENT ISSUE: In July of 2009, N14SIE entered into the final year of a three-year contract. In anticipation of this, and as a way to start shaping general policy goals and objectives for the next funding cycle, Agency Staff amended the NHSIE Program contract. The goal of such an amendment is to begin the process of improving the ease of contract management and stress more performance based measures. The amended agreements received Commission approval on July 6, 2009. As a result of a combined effort between Agency and NHSIE staff, four separate goal oriented program activities were created. The programmatic modifications that are encompassed in each include the following: • Separate agreements to include the Single-Family Beautification Grant Program, Single-Family Rehabilitation Loan Program, Mobile Home Grant Program and the Amendment No. 1 to the 2007 HOME Agreement(Homebuyer Education Program). • The ability for the Agency to work with Council members to specify areas of greatest need within their individual Wards to target the Programs and better maximize the effectiveness of funds through the direct alignment with other Agency resources. Should the Agency request this targeting in specific areas, Agency Staff would provide them to NHSIE for implementation. This would occur only after formal approval by the Commission is granted. • Implementation of an Application Review Committee, consisting of NHSIE and Agency Staff, to review and mutually approve each grant or loan application prior to award and execution. • The addition of a ten(10)-year Homeowner Maintenance Covenant to the Eligibility Requirements. • Inclusion of certain language within the new loan and grant agreement prohibiting the joint and simultaneous use of grant and loan funds. • The requirement that all applicable maintenance and affordability covenants and other grant documentation be reviewed and signed by Agency Staff and recorded by the San Bernardino County Recorder's Office prior to work being started. • The requirement that NHSIE contact Agency Staff to complete project inspection (within 10 business days after such a request) prior to payment of all invoices. No payments will be made until final inspection is approved and signed off by Agency Staff. • A modified dollar amount and allocation formula. P1Agendm\Co=Dm Commission\CDC2009\09-21-09 NNSM Annual Update FINAL SKdm COMMISSION MEETING AGENDA Meeting Date: 09//211/�/2200,09 Auenda item Nnmhere lsC...[/ Economic Development Agency Staff Report NHSIE Annual Update FINAL Page 5 o Identified specific numerical targets for the numbers of transactions and the administrative costs associated with each transaction. The table below details the number of transactions and the administrative costs on a per unit basis. Program Proposed Proposed administrative cost Numerical Target er unit Single-Family Beautification 87 $3,108 Grant Single-Family Rehabilitation 10* $5,000 Loan Mobile Home Grant 32 $1,238 1200 potential homebuyers; Homebuyer Education at least 300 attendees to $67 reside or work in the City of San Bernardino *Funding for this activity is$500,000 which,with the new loan not-to-exceed amount,would potentially allow for a doubling of required outcomes. Over the next Fiscal Year (FY2009-2010), it is the Agency's intent to use the new amendments to closely monitor Programs activities and continue to analyze the effective use of funds as compared to the number of completed activities. The purpose in doing so will be to determine any necessary changes to be made to the Programs' structure, funding amount and allocation formula. i In anticipation of these possible changes, it is the Agency's intent to utilize this information for the purpose of issuing a Request for Proposals in January of 2010. The purpose of doing so is to identify the overall market of organizations providing these services, seek out possible new solutions for managing the City's single- family revitalization efforts and accurately gauge the administrative costs for conducting these Programs. ENVIRONMENTAL IMPACT: This action 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 contract between the Agency and NHSIE has been funded for FY2009-2010, and is derived from the Agency Housing Set Aside Fund and HOME Fund,respectively. RECOMMENDATION: That the Community Development Commission adopt the Motion. Emil A. Marza lo, Interim Executive Director ------ --------------------------------------- — ---- ----------------- P Npndas\Co=m Con ission\CDC2009\09-21A MSM A=W Updeh M¢ SRdm COMMISSION MEETING AGENDA Meeting Date: 09/2111/2009 Ampnda Tfnm IVnmhpr• 1 2-,) ® City of San Bernardino _ -Ward Seau0lkatlon Grant Mobile Home Grant Total ATTACHMENT 1 No Amount No Amount No Amount 1 3 $45,000.00 3 $45,000.00 2 2 $29,850.00 2 $29850.00 3 5 $67,036.00 5 $87036.00 4 1 $15000.00 1 $15000.00 S 5 2 $29174.00 2 $29174.00 8 7 $104039.00 1 $4500.00 8 $108539.00 7 5 $69845.00 5 $69845.00 obi 26 S ,944.00 1 y ' 04 y� i } 6 l 4 a 4 >` AWea e ,l a ao 5 AowE ` F a 45 8 Y j i yl 1*gs FY 1 a RRmmERD L tl ! d nsaurvEs ramxrtLervD � rx 3a wuionvE 1 ..LL RYE IC X g 1 3� enw Ot e F o 141 7 �i ��� Dino �� �P� f _ � 9cx EERXFRDixo AVE 0 S WM ..f vaLw fi< � I/Fa €� wcoxiRRYE 9LOVERPVE 3 8 9 h CM. _ EP \yp0.D � '\� BPRiON M �00�9p B Legendr 1 f Beautification Grant(25 j x a `� 9� i Mobile Home Grant 1 Clry of San eermrano EDA I1 City of San NHSIE Activities for Fiscal Year ;,• L [r WAN eau cation Gmat [ Mablk Han,;Goant wn TKO1 No Aount No Amount No Amount No m Aount ME ATTACHNT 2 1 m ] $10500000 1 1 $500000 0 1 $0.00 a 1 $110,000.00 2 8 $11846000 1 0 $000 2 1 $000 8 $11846050 3 11 $1469]050 2 85.03000 0 000 13 $152808.50 4 7 $10143500 1 2 $9.500.00 1 1 S50 00000 I 0 1 .160.835.00 5 8 $116840.00 1 0 $0.00 0 I $0.00 I 8 1 $11684000 6 21 $304532.00 1 6 $29]15.00 0 $000 2] $33424700 7 ii $158695.00 1 $494000 0 $0.00 12 $163635.00 Tool 3 1,01,940.5 965.00 0,000.00 66 ,156,93s.50 A „ r _� �� .wf4 + •�. r1r_.^1,r.rr_ +._�. I � r ` ♦ lla ---' 18 \ © LL d 11 q 1 a.. 1 � 1 2 � � 7l r BABEVIERO BPSEIIXES 11SdmE V. ' _ q '16 $ NPIiOPYE ..LL PVF = Gi Y 41 .m nw Ot m a� Al �� 8PN 6ERXPPUINO J �Yd Legend 5 , a i 4 9 v � lRV * Beautification Grant(73 AaT..R. * Loan (1) l' R BAR a., (�O i Mobile Home Grant (12) ,f 0 3,5007,000 14,000 21,00 ee Gram aad Loan 81x6 RaWt JORe 2009 and eMOlsan Bara.rdoEOA