HomeMy WebLinkAboutR31- Economic Development Agency CITY OF SAN BERNARDINO
ECONOMIC DEVELOPMENT AGENCY ORIGINAL
FROM: Emil A. Marzullo SUBJECT: Single-Family Homeownership and
Interim Executive Director Neighborhood Revitalization Quarterly Update
of Program Activities
DATE: May 28,2010
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Synopsis of Previous Commission/Council/Committee Action(s):
On May 20,2010, Redevelopment Committee Members Johnson, Brinker and Marquez unanimously voted to recommend that
the Community Development Commission of the City of San Bernardino("Commission")consider this action for approval.
On February 4,2010,Redevelopment Committee Members Johnson,Baxter and Brinker unanimously voted to recommend that
the Commission consider the Neighborhood Housing Services of the Inland Empire ("NHSIE") quarterly update of program
activities for approval.
--------- ------ -- -- - ----- ---------- ---------------
Recommended Motion(s):
(Community Development Commission)
MOTION A: That the Community Development Commission of the City of San Bernardino receive and file the Quarterly
Update of Single-Family Homeownership and Neighborhood Revitalization program activities through March
31,2010.
MOTION B: That the Community Development Commission of the City of San Bernardino receive and file the Quarterly
Update of the Neighborhood Housing Services of the Inland Empire program activities through December 31,
2009.
Contact Person(s): Carey K.Jenkins Phone: (909)663-1044
Project Area(s): N/A Ward(s): All
0 Staff Report❑ Resolution(s)❑Agreement(s)/Contract(s)0 Map(s) 0 2-04-10 NHSIE
Supporting Data Attached: Quarterly Report
Funding Requirements: Amount: $ -0- Source: N/A
Budget Authority: N/A
Signature's Fiscal Review:
Emil A.Marzul rim Executive Director Lori . le , ite ' s ative Services Director
Commission/Council Notes: --
PdAgenlasTmant Dev CommlasionTDC 2010106-07-10 Single-Family Homeownership Pnogmme QuMttly Repon SR doe COMMISSION MEETING AGENDA
Meeting Date: 06/07/2010
Agenda Item Number: �3 I
A - QUARTERLY REPORT THROUGH 3/31/2010
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
SINGLE-FAMILY HOMEOWNERSHIP AND NEIGHBORHOOD REVITALIZATION
QUARTERLY UPDATE OF PROGRAM ACTIVITIES
(QUARTER ENDING 3/31/10)
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 Grant 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 the Agency's various housing activities.
These services are aimed at assisting lower income senior citizen and special needs homeowners within
the 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 July 1, 2009, NHSIE entered into the final year of its current 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. Contained
within these amendments are four separate activities to include: 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 has 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 current breakdown of funds is as follows:
ACTIVITY AMOUNT SOURCE
Program Administration—Grant and Loan $320,000 Low-Mod
Program Administration—Mobile Home $40,000 HOME
Mobile Home Grant Program(agreement 1 $160,000 HOME
Beautification Grant Program(agreement 1) $1,080,000 Low/Mod
Rehabilitation Loan Program(agreement 3 $500,000 Low/Mod
Homebuyer Education Program(agreement 4) $80,000 HOME
TOTAL $2,180,000
P:Ugendu\Co=m vC=issionTDC201M&N-10Sin] FamilyHomrownerhtp Programs QuvMyRepoitSR.doc COMMISSION MEETING AGENDA
Meeting Date: 06/07//2009
Agenda Item Number: F`'vt
Economic Development Agency Staff Report
SFR Homeownership and Neighborhood Revitalization Quarterly Update Report
Page 2
Included within the recently approved amendments, are identified numerical targets for the numbers of
transactions for each program. The table below details the 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 an Amendment 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 in materials. The grant amount was also
increased from $750 to $1,000 per household.
In December 2009 the Commission approved Amendment No. 2 to the Contractor Services Agreement,
amending and extending the agreement and authorizing the amount to be allocated to the Foundation to be
increased from $100,000 to $102,655 for a six (6) month term through June 30, 2010. The grant amount
was also increased from $1,000 to $1,600 per household. The current breakdown of funds is as follows:
ACTIVITY AMOUNT SOURCE
Program Administration—Grant $15,398 Low/Mod
Minor Repairs Grant Program (agreement 2) $87,257 Low/Mod
TOTAL $102,655
CURRENT ISSUE:
NHSIEACTIVITIES
For the quarter ending March 31, 2010, NHSIE completed 15 beautification grants and 3 mobile home
grants. There were no rehabilitation loans completed. This is equal to 18 separate transactions for the
quarter and 63 separate transactions year-to-date.
From an expenditure standpoint, NHSIE expended a total of$210,681 for the quarter and $819,333 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 (July 1
through March 31)by Program type.
Program Completed Activities Expenditure Avg.Transaction Cost
Mar 31 Qtr Y-to-D Mar 31 Qtr Y-to-D Mar 31 Qtr Y-to-D
Beautification Grant 15 51 $195,751 $715,025 $13,050 $14,020
Rehabilitation Loan 0 1 $0 $50,000 $50,000 $50,000
Mobile Home Grant 3 11 $14,930 $54,308 $4,977 $4,937
TOTAL 18 63 $210,681 $819,333 $11,705 $13,005
P:\Agendes\Comm Dev Commission\CDC 2010\06-07-10 Single-Family H=m mrahip Programs Quenedy Repon SR.doe COMMISSION MEETING AGENDA
Meeting Date: 06//07/211010
Agenda Item Number: P l
Economic Development Agency Staff Report
SFR Homeownership and Neighborhood Revitalization Quarterly Update Report
Page 3
From a numerical target standpoint, NHSIE has reached 59% of the beautification grant, 10% of the
rehabilitation loan and 34%of the mobile home grant. The table below details the percent to the proposed
quota for the year-to-date.
Program % of Proposed Numerical Target Y-to-D
Beautification Grant 59%
j Beautification Loan 10%
Mobile Home Grant 34%
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 fiscal year-
to-date through March 31, 2010, respectively. Further examples of completed activities, Attachment 3
includes before and after pictures of three (3) representative Beautification Grant projects conducted
during the most recent quarter.
Please note, in the NHSIE Quarterly update approved by the Redevelopment Committee on February 4,
2010, it was reported that 2 Rehabilitation Loans were conducted and $100,000 program dollars
expended for year-to-date. After further investigation into the Program numbers, it was discovered the
actual number of loans conducted and program dollars expended was lower than the total originally
reported. The actual number of loans conducted was only 1 and only $50,000 program dollars were
expended year-to-date; equating to 10% of the contracted quota for the year-to-date, not 20% as
originally reported. This discrepancy has been clarified and accounted for in the numbers represented
above.
For the recent quarter, 160 persons participated in the Homebuyer Education classes administered by
NHSIE at their San Bernardino office located at 1390 North "D" Street. From these participants, 33 are
residents of the City equating to 21% of the total persons who participated in the classes during this
reporting period.
In addition, from the 160 participants in the class, 12 San Bernardino City homeowners were created,
equating to 8%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 of San Bernardino.
Program Completed Activities % To Quota
Participants SB Residents Participants SB Residents
March 31 Y-to-D March 31 Y-to-D Y-to-D Y-to-D
Otr Or
Homebuyer Education 160 409 33 88 34% 29%
Program
P:Ugevde ToC D Commission\CDC 2010\0607-10 Singlo-Fmily Homw mnhip Programs Qmrtaly Report SRdoc COMMISSION MEETING AGENDA
Meeting Date: 06//07/2010
V
Agenda Item Number:
Economic Development Agency Staff Report
SFR Homeownership and Neighborhood Revitalization Quarterly Update Report
Page 4
Through March 31, NHSIE has trained 409 prospective homeowners, of which, 88 were San Bernardino
residents. The 409 participants represent 34% of the 1,200 participants NHSIE has contracted to train this
year. Similarly, the 88 participants trained represent 29% of the 300 attendees that must currently live or
work in the City.
FOUNDATIONACTIVITIES
As of March 31, 2010, the Foundation completed 20 minor repair grants. This equals 20 separate
transactions for the quarter and 40 separate transactions year-to-date.
From an expenditure standpoint, the Foundation expended a total of$15,685 for the quarter and $31,367
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 (July 1 through March 31).
Pro ram Completed Activities Es enditure Avg.Transaction Cost
Mar 31 Qtr Y-to-D Mar 31 Qtr Y-to-D I Mar 31 Qtr I Y-to-D
Minor Repairs Grant 20 1 40 1 $15,685 $31,367 1 $784 1 $784
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 fiscal year-
to-date through March 31, 2010,respectively.
In total, both NHSIE and the Foundation have completed 38 separate transactions for the quarter and 103
year-to-date through March 31, 2010.
From an expenditure standpoint, NHSIE and the Foundation collectively have expended a total of
$226,366 for the quarter and $850,700 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 (July 1 through March 31).
Program Completed Activities Expenditure Avg.Transaction Cost
Administrator
Mar 31 Qtr Y-to-D Mar 31 Qtr Y-to-D Mar 31 Qtr Y-to-D
NHSIE 18 63 $210,681 $819,333 $11,705 $13,005
The Foundation 20 40 $15,685 $31,367 $784 $784
TOTAL 38 103 $226,366 $850,700 $5,957 $8,259
Income Levels
The funding sources 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.
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P:UWndss\Comm Dev Commission\CDC 2010\0607-10 Sing]eFmnily Homeovmemhip Programs Qm edy Report SR doe COMMISSION MEETING AGENDA
Meeting Date: 06//07/2010
Agenda Item Number: n 'la 1
Economic Development Agency Staff Report
SFR Homeownership and Neighborhood Revitalization Quarterly Update Report
Page 5
Income Level Very Low Low Moderate
<50%AMI 50-80%AMI 81-120%AMI
#of Households #of Households #of Households
Mar. 31 Y-to-D Mar.31 Y-to-D Mar. 31 Y-to-D
TR TR QTR
Fund Type
HOME 2 9 1 2 0 0
Set-Aside 14 40 19 42 2 9
TOTAL 16 49 20 44 2 9
Through March 31, 2010, a total of 49 very low-income families, 44 low-income families and 9
moderate-income families, for a total of 102 households, have been assisted with Agency Funds.
The difference between the 103 total households indicated earlier in the Current Issue section of this
report and the numbers indicated above is due to one (1) household receiving both a Rehabilitation Loan
and Beautification Grant during the quarter ending December 31, 2009. Therefore, they were counted as
just one (1)household in this section.
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).
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 five (5) projects have been completed to-date, using
Homeowner Funds. One was completed in the first quarter in the amount of$731, one (1) was completed
during the second quarter in the amount of$975 and three (3) were completed in the third quarter in the
amount of$6,377 for a total homeowner contribution amount of$8,083 for the Program, thus far.
In addition to the five (5) completed projects indicated above, four (4) other projects were recently started
that include homeownership contributions totaling $12,397 under the new program design. It is estimated
that these projects will be completed and reported in the next quarterly update report.
Since implementing the new amendments, NHSIE and Agency Staff have participated in eight (8)
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.
F: gn skCo=De CommissionTDC3010\06-0]-10 Single-Family Homm nhipPrograms Qusn yReponSR&c COMMISSION MEETING AGENDA
Meeting Date: 06/07/2010
Agenda Item Number:
Economic Development Agency Staff Report
SFR Homeownership and Neighborhood Revitalization Quarterly Update Report
Page 6
In anticipation of completion of the current three-year contract with NHSIE and the current six-month
contract with the Foundation, Agency Staff recently released a Single-Family Homeownership and
Revitalization Program Services Request for Proposal to a list of approximately 50 recipients. As a result,
five (5) responses were received. Agency Staff is currently in the process of reviewing and scoring the
responses, and anticipates reaching an award decision prior to the start of FY 2010-2011.
Environmental Impact:
This item does not meet the definition of a"project' under Section 15378 of the California Environmental
Quality Act (CEQA).
i
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 2009-2010 Agency Budget, and is
derived from the Agency Housing Set-Aside Funds and HOME Funds.
Account Budgeted Amount: $ -0-
Balance as of: May 28, 2010
Balance after approval of this item:$ 0-
RECOMMENDATION:
That the Community Development Commission adopt the Motion.
4f��W
Emil A. Marzullo, Interim Executive Director
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PW gendas\Co mmD.vCo mmiWon\CDC2010Wb07-10SinglaFwilyHom..w hipP,.,.sQu.MttyReportS0.&o COMMISSION MEETING AGENDA
Meeting Date: 06//07/2010
Agenda Item Number: P 1
ATTACHMENT "1"
City of Bernardino
Single Family Home Ownership : Neighborhood Revitalization Activities • Quarter Ending March 31, 2010
Ward Beautification Grant Mobile Home Grant Minor Repairs Grant Total
Number Amount Number Amount Number Amount Number Amount Legend
1 8 $6,286.45 8 $6,286.45
2 1 $12,575.00 1 $869.75 2 $13,444.75
3 3 $14,930.00 1 $699.17 4 $15,629.17 Beautification Grant (15)
4 4 $51,248.00 1 $846.58 5 $5 094.58
5 1 $15,000.00 $0.00 1 $15,000.00 Minor Repairs Grant (20)
6 4 $47,175.00 8 $6,153.00 12 $53,328.00
7 5 $69,75100 1 $829.98 6 $70,582.98 Mobile Home Grant (3)
Total 15 $195,751.00 3 $14,930.00 20 $15,684.93 38 $226,365.93
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• - • - • - • - • • • •• • • - • Ill 1 1
Ward Beautification Grant Mobile Home Grant Minor Repairs Grant SFR Rehabilitation Loan Total
Number Amount Number Amount Number Amount Number Amount Number I Amount
1 3 $44,990.00 12 $10,064.86 15 $55,054.86
2 3 $42,556.00 2 $1,850.60 5 $44,406.60
3 2 $30,000.00 10 $49,818.00 4 $3,265.83 16 $83,083.83
4 7 $87,223.00 1 $4,490.00 2 $1,506.70 10 $93,219.70
5 8 $119,209.00 1 $551.09 9 $119,760.09
6 18 $246,544.25 18 $13,298.10 36 $259,842.35
7 10 $144,503.00 1 $829.98 1 $50,000.00 12 $195,332.98
Total 1 51 1 $715,025.251 11 $54,308.001 40 $31,367.16 1 $50,000.00 103 1$850,700.41
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B - QUARTERLY REPORT THROUGH 12/31/2009
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE ("NHSIE")
QUARTERLY UPDATE OF PROGRAM ACTIVITIES
(QUARTER ENDING 12/31/09)
This quarterly report for the NHSIE Program Activities through 1213112009 was recommended for
approval by the Redevelopment Committee on 210412010 but a motion for the Community Development
Commission to receive and file the quarterly update of activities was not previously submitted. Therefore
a motion is being recommended today to receive and file this quarterly report.
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 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.
On July 1, 2009, NHSIE entered into the final year of its current 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. Contained
within these amendments are four separate activities to include: 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 has 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 current breakdown of funds is as follows:
ACTIVITY AMOUNT SOURCE
Program Administration—Grant and Loan $320,000 Low-Mod
Program Administration—Mobile Home $40,000 HOME
Mobile Home Grant Program (agreement 1 $160,000 HOME
Beautification Grant Program (agreement 2 $1,080,000 Low/Mod
Rehabilitation Loan Program (agreement 3 $500,000 Low/Mod
Homebuyer Education Program (agreement 4) $80,000 HOME
TOTAL $2,180,000
P:WgendasTomm Dev CommissionTM 2010\0607-10 N SM Quarterly Update(Motion R)to Single-Fan ily SR doe
Economic Development Agency Staff Report
NHSIE Quarterly Update Report
Page 2
Included within the recently approved amendments, are identified numerical targets for the numbers of
transactions for each program. The table below details the agreed upon number of transactions.
Program Proposed Numerical Tan'Be--a-rdin
Single-Family Beautification Grant 87
Single-Family Rehabilitation Loan 10
Mobile Home Grant 32
Homebuyer Education Program 1,200 potential homebuyers;
attendees to reside in the City of San-
CURRENT ISSUE:
For the quarter ending December 31, 2009, NHSIE completed 18 beautification grants, 1 rehabilitation
loan and 5 mobile home grants. This is equal to 24 separate transactions for the quarter and 45 separate
transactions year-to-date.
From an expenditure standpoint, NHSIE expended a total of$329,481 for the quarter and $643,652 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 (July 1
through December 31) by Program type.
Pro ram Com leted Activities Expenditure Avg. Transaction Cost
Dec 31 Qtr Y-to-D Dec 31 Qtr Y-to-D Dec 31 Qtr Y-to-D
Beautification 18 35 $255,078 $504,274 $14,171 $14,408
Grant
Beautification 1 2 $50,000 $100,000 $50,000 $50,000
Loan
Mobile Home 5 8 $24,403 $39,378 $4,881 $4,922
Grant
TOTAL 24 1 45 $329,481 1 $643,652 1 $13,728 1 $14,303
From a numerical target standpoint, NHSIE has reached 40% of the beautification grant, 20% of the
rehabilitation loan and 25% of the mobile home grant. The table below details the percent to the proposed
quota for the year-to-date.
Program % of Proposed Numerical Tar et Y-to-D
Beautification Grant 40%
Beautification Loan 20%
Mobile Home Grant 25%
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 fiscal year-
to-date through December 31, 2009, respectively. Further examples of completed activities, Attachment 3
includes before and after pictures of 3 representative Beautification Grant projects and I Rehabilitation
Loan project conducted during the most recent quarter.
i
Economic Development Agency Staff Report
NHSIE Quarterly Update Report
Page 3
l For the recently past quarter, 106 persons participated in the Homebuyer Education classes administered
by NHSIE at their San Bernardino office located at 1390 North "D" Street. From these participants, 22
are residents of the City; equating to 21% of the total persons who participated in the classes during this
reporting period.
In addition, from the 106 participants in the class, 9 San Bernardino City homeowners were created,
equating to 8% of the total persons who received home buyer training.
The table below details the number of prospective buyers completing home buyer education and the
percentage completed based upon the agreed goal at the start of the fiscal year. .
Program Com leted Activities % To Quota
Participants SB Residents Participants SB Residents
Dec. 31 Y-to-D Dec. 31 Y-to-D Y-to-D Y-to-D
Qtr Qtr
Homebuyer Education 106 249 22 55 21% 18%
Program
Through December 31, NHSIE has trained 249 prospective homeowners, of which, 55 were San
Bernardino residents. The 249 participants represent 21% of the 1,200 participants NHSIE has contracted
to train this year. Similarly, the 55 participants trained represent 18% of the 300 attendees that must
currently live in the City.
Please note, in the NHSIE Quarterly update adopted by the Community Development Commission on
1210712009, it was reported that 82 of the 143 Participants in the Homebuyer Education Program were
San Bernardino residents; equating to 27% of the required number of attendees that must currently live in
the City. After further investigation into the Program numbers, it was discovered the actual number of
attendees who live in the City was much lower than the total originally reported. The actual number of
SB residents was only 33; equating to 18% of the total persons who participated in the classes. This
discrepancy has been clarified and accounted for in the numbers represented above.
Income Levels
The funding sources for program activities requires the Agency, through NHSIE, to assist Homeowners
whose income does not exceed certain income 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 120% of the AMI, also adjusted for family size. Below is a chart that shows the household,
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
Dec. 31 Y-to- Dec. 31 Y-to- Dec. 31 Y-to-D
QTR D QTR D QTR
Fund Type
HOME 4 7 1 1 0 0
Set-Aside 9 17 7 12 3 7
TOTAL 13 24 8 13 3 7
Economic Development Agency Staff Report
NHSIE Quarterly Update Report
Page 4
Through December 31, 2009, a total of 24 very low-income families, 13 low-income families and 7
moderate-income families, for a total of 44 households, have been assisted with Agency Funds. The
difference between the 45 total households indicated earlier in the Current Issue section of this report and
the numbers indicated above is due to 1 household receiving both a Rehabilitation Loan and
i
Beautification Grant. Therefore, they were counted as just 1 household in this section.
Administrative Update
An important change to the recent 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).
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 2 projects have been completed to-date, using
Homeowner Funds. One was completed in the first quarter in the amount of$731 and 1 was completed
during the 2nd quarter in the amount of$975 for a total homeowner contribution amount of$1,706 for the
Program,thus far.
In addition to the 2 completed projects indicated above, 4 other projects were recently started that include
homeownership contributions totaling $8,423 under the new program design. It is estimated that these
projects will be completed and reported in the next quarterly update report.
Since implementing the new amendments, NHSIE and Agency Staff have participated in 6 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. Within the next 4 weeks, Agency Staff will arrange to meet with each
Council member to discuss specific residential beautification needs within their particular Ward to
determine if targeting Program funds in conjunction with other Agency activities and resources is a viable
option.
In anticipation of completion of the current three-year contract with NHSIE, Agency Staff is presently
finalizing a Single-Family Homeownership and Revitalization Program Services Request for Proposal.
It's anticipated that the document will be released to prospective for profit and non-profit organizations
within the next week.
ENVIRONMENTAL IMPACT:
This item does not meet the definition of a"project" under Section 15378 of the California Environmental
Quality Act(CEQA).
k
{
Economic Development Agency Staff Report
NHSIE Quarterly Update Report
Page 5
FISCAL IMPACT:
I
There is no General Fund impact to the City. The contract between the Agency and NHSIE has been
funded for by the FY 2009-2010 Agency Budget, and is derived from the Agency Housing Set-Aside
Funds and HOME Funds.
Account Budgeted Amount: $ -0-
Balance as of: May 28, 2010
Balance after approval of this item:$ 0_
RECOMMENDATION:
That the Community Development Commission adopt the Motion.
Emil A. Marzullo, Interim Executive Director
ATTACHMENT "1"
City of I Bernardino
NHSIE Activities for • • December 009
Beautification Grant Mobile Home Grant SFR Rehabilitation Loan Total
Ward
Number Amount Number Amount Number Amount Number I Amount
1 1 $15,000.00 1 $15,000.00
3 2 $30,000.00 4 $19,913.00 6 $49,913.00
4 3 $35,975.00 1 $4,490.00 4 $40,465.00
5 3 $44,859.00 3 $44,859.00
6 5 $69,494.00 5 $69,494.00
7 4 $59,750.00 1 $50,000.00 5 $109,750.00
Total 18 $255,078.00 5 $24,403.001 1 $50,000.001 24 1$329,481.00
oRY,
18
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City of Bernardino
Activities NHSIE • r Fiscal Year 2009-2010
Mobile Home Grant Beautification Grant 1 SFR Rehabilitation Loan 1 Total
Ward
Number Amount Number Amount Number Amount Number Amount
1 3 $44,990.00 3 $44,990.00
2 2 $29,981.00 2 $29,981.00
3 7 $34,888.00 2 $30,000.00 9 $64,888.00
4 1 $4,490.00 3 $35,975.00 4 $40,465.00
5 6 $89,209.00 6 $89,209.00 »
6 14 $199,369.25 14 $199,369.25
7 5 $74,750.00 1 $50,000.00 6 $124,750.00
Total 8 $39,378.001 35 1 $504,274.251 1 $50,000.00 44 $593,652.25
— pR
18
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