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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 --------------------------------------------------------------------------- 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. -- ----------------------------------------------------------------------------------------------------- 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 -------------------------------------------------------—--------------------------------------------------------------------------------------------------------------------------------- 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 FAD Annexation 3067 _ Ry 18 oR ® See Footnote 1 �'W Toy DNT r 4, 5th Ward Q LYON LEVEE .,\ O r20 \L ORfHPARI "yY w m t 4th Ward K y QQ- r • 40TH ST 3 D AV Fa? OGDEN S h m N O H ARKDALE a THQ70 30 � yw 7th i v P R jUF _ 3 H War o � m DAB ST AIR oun y > o IEDMONT > 27TH T y TH DATEI rc i OR rQ w I H A PUMALO > — w 5 m yid O 1 HLA w F. S 1 ad U. w Z TH @ a BASELINE RD a Afth w m 0 ST r BASEL EST rd H 9TH ST 5TH ST FOOTHILL SHOD R 3rd Ward 2 RIALTO AVE., _ R V z O u~i O < w wU MERRILL AVE IL O1P M F OF m w W 3 MILL S F y CO n �2G ra CEP BA AVE t-Nln w 5 a P r z 5 BERNARDINO AVE = 02 BAN SHOt p ". O VALLEY BLVD O VAN ER BR\ER D =` LUGONIAAVE > t- f SLOVER AVE O INE m 3 a w z w z w N Footnote 1: ¢ = � w CiS p Annexation 3067(6 Parts)have been challenged in the r < pending pending Huke versus LAFCO City case,which was filed GTON 57 l2 i z G 'Ey QQ O in court on February 25,2010. Parcel and Cdy,LIMP,data owned y r I r the County of San Bernardino. ile. P'.\GISData\MXOS\Housing\ P5inaleFamllvHcmeOwner hloAnd Neiahborh dRevitalirarinnAn ATTACHMENT 1121? City of Bernardino • - • - • - • - • • • •• • • - • 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 0 18 R Legend i I - - - , Beautification Grant(51) -' Minor Repairs Grant(40) L * Mobile Home Grant(11) e r oyyo O SFR Rehabilitation Loan(1) y✓iy 'yD ro 4 6th Ward Annexation 3067 Po Ev`G oRrHPAReB ® See Footnote 1 `o ' 4th Ward z O° j M u 4TH ST 3 AV OGDENS t" Z ,, A <A °o 30 o TH 7th 8 ryA� War p at Y M p o Qy S�OF DAB ST r- Co ry PIfD Q AVF m 20TH DATE pNTDR p PITH T p HIGHLAND AVE 'P Z G — * 5 l; m �QACIRCST W i TH BASELINE RD J,L,-•�_ti� ASEL E rtP O w Indr a t T '^eIH ST * n HS O w 5TH ST r' FOOTHILLBLVD ------ 3rd Ward _LTO AvF RIALTO AVE RIALTO AVE w 3 w N = A MERRILLAVE ¢ MIL S" z a 1 7 S BERNARDINOAVE p O2 RAN SHp 2 VALLEY BLVD < GO ER VAN E BRI R LUGONIAAVE SLOVERAVE O INE 0 �+ 4 , ~ w Footnote 1: o > g m ITR I Annexation 3067(6 Pans)have been challenged in the w a " i pending Huke versus LAFCO City case,which was filed GTON 5T i i poo in court on February 25,2010. p r p IItt A S ate Rights: Street,Parcel and Ctiy Lint data owned by the County of San File:P.\GIS Data\M ATTACHMENT 13" v c� 3 L —o 0 L R . U U ca p p • s' ,L L u U U O `n O p OL 4- U U l e f}� w Q t a� ^� k W Qi 1 O LU J o O O w M m 4 ^ - 0 \ 2 o �\ @ . § \ 2 : / E 0 % Ln Ln s V v � \ * S \ 0 2 0 2 £ _0 0 m &° u LLJ ! m , / \ k § � Q_ A £ �J � - � °m o = 2 / ^ ° LU C) O CIO / U O L m 4J m O f6 bA C N - O 4J O O LA Q 4J U 3: " _I_—O O O W 4' U C O O o L � O QJ 4J -0 3 3 3 E m v v w o o zzz w U- .. Q n r L CO O cu W LO 0 IT-- W m 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 Legend ----- Beautification Grant (18) /GQ� Mobile Home Grant (5) hN ONT �: St Ward O SFR Rehabilitation Loan (1) E Q YON LENS ,. 4t EVIL° NORTH, AR BCV w w N o 44 O A a 40T ST 3 DAV �1MllfALEK uuumolllidl TM//< 30 OGDEN S N N y fiTH ¢ F Count °,P LL ¢ z Area a a 7th W A/L� o ai A V ONT G R`4/p DA B ST < Cou ¢ OR DATE rc i ti w IGHLA P 5 - ¢ 0 S 1 ST C ¢ 16TH rn z a County , CIFI T w w TH N 0 Aroa ° )BASELINE RD SELINE ST ASEL EST ST th ar ° �_ N TH S w L U TH w 3RD n STH ST 311 n FOOTHILLBLVD z 4TH ST E u Aroa - N RIALTO AVE ¢ RIALTO AVE a 3 a w Is Ward 0 - _ <. = A MERRILLAVE rc w MILL ST wa ¢x P M N ° > n N 0 r ¢ CENTRAL.AV $ 1 O a ~ 5 0�0 O?P 3 SA BERNARDINO AVE. O z OO OR;ER D w VALLEY BLVD VAN ER ¢ " LUGONIAAVE N OR ¢ � H SLOVER AVE O INE Z C N SSA RD w z w OOrGP Pm0 JPM GTON S i U w ATTACHMENT '12y) 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 $593,652.25 — pR 18 •, t Legend Beautification Grant (35) v °"G `. t Mobile Home Grant (8) TO" "rte 5th Ward f O SFR Rehabilitation Loan (1) aONLEVEE 4th C O✓ (p E`AA NORTH, R SCV o w z 4 ¢ O C<O Co A a 4nT RDA 2 O OGDENS ALEW TNCC( 33 6 p� Can _ TH 7th W C Rite DA B ST m ARB Y < °R L 8 H DATE O w ,Q O (� w HI HLAND R 5 HI HL F 15 1 16TH m w Wo K w County 1.tilt )BASELINE RD 2 B E t T H m Ana > ABEL E O th VYa r ° 3 S O eTHS rc ¢ � a 5TH ST FOOTHILL BLVD 41 H$T 30. 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