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ECONOMICYDEVELOPPMENTOAGENCY ORIGINAL
FROM: Emil A.Marzullo SUBJECT: Single-Family Residence Revitalization Program
Interim Executive Director First Quarter Report (July 1, 2010 through
September 30,2010)
DATE: November 23,2010
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Svnoosis of Previous Commission/Council/Committee Action(s):
On November 4, 2010, Redevelopment Committee Members Johnson, Brinker and Alternate Shorett unanimously voted to
recommend that the Community Development Commission consider this action for approval.
——----- ---------------------------------- --------- —------
Recommended Motion(s):
(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 (July 1, 2010 through
September 30,2010)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: El Staff Report❑Resolution(s) ❑Agreement(s)/Contract(s)❑ Map(s)❑Letter(s)
FUNDING REQUIREMENTS: Amount: $ -0- Source: N/A
Budget Authority: N/A
Signature: Fiscal Review:
Emil A. o Inte ' ecutive Director Lori mo illery, 1V Chief Financial Officer
Commission/Council Notes
PAAger&s\Co=D Co=ission\CM 2010\12-06-10 Singlo-Femily Firm Qmmedy Report Wdon COMMISSION MEETING AGENDA
Meeting Date: 12/06/2010
Agenda Item Number:l�//�
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ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
SINGLE-FAMILY RESIDENCE REVITALIZATION PROGRAM
FIRST QUARTER REPORT (JULY 1,2010 THROUGH SEPTEMBER 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 Grant and Rehabilitation Loan Programs, 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 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 Elderly/Special Needs Minor Grant Repair Program
which provides repair assistance to include,but is not limited to plumbing,heating, electrical,carpentry and
general minor repairs.
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, 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 NHSIE,
the Agency and the Foundation and the Agency and Inland Housing Development Corporation ("IHDC")
(referred to collectively as"the Contractors") to take effect July 1,2010:
1. 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 $90,000 from the Agency's HOME Admin Fund for the administration
of the Homebuyer Education Program, all subject to annual funding availability
I
3
j 2. 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
1 Income Housing Fund,all subject to annual funding availability
1
3. The Foundation for the administration of the Mobile Home Grant Program for an amount of
1 $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.
PMgendaa\Comm De Commiuion\CDC 2010\1A 10 SingbFamily Fim Qwm Iy Report SR dm COMMISSION MEETING AGENDA
11 Meeting Date: 12//06/2010
i Agenda Item Number: /02y
Economic Development Agency Staff Report
Single-Family First Quarter Report
Page 2
The table below details the breakdown of FY 2010-2011 funds:
Responsible Program(s) Program Numerical Compensation Funding
Organization Area Targets Source
Prog.Delivery: $682,500
Beautification City area 65 *Prog.Admin: $10L375 Low-Mod
Grant located Total Allocation:$784,875
east of the Prog. Delivery: $250,000
Rehabilitation 215 10 *Prog.Admin: $37,500 Low-Mod
NHSIE
Loan Freeway Total Allocation: $287,500
300 attendees that
Homebuyer reside or work in
Education Citywide City of Total Allocation: $90,000 Admm
Program San Bernardino @
$300 each
Beautification Prog.Delivery: $525,000
Grant City area 50 *Prog.Admin: $78,750 Low-Mod
located Total Allocation: $603,750
IHDC west of the
Prog.Delivery: $250,000
Rehabilitation 215 10 *Prog.Admin: $37,500 Low-Mod
Loan Freeway Total Allocation: $287,500
Mobile Home Prog.Delivery: $160,000
Grant 32 *Prog.Admin: 2$ 4.000 HOME
The Foundation Citywide Total Allocation: $184,000
Elderly/Special Prog.Delivery: $80,000
Needs Minor 50 *Prog Admin: $12,000 Low-Mod
Repair Grant I Total Allocation: $92,000
*Program Admin Fee is 15%of the Program Delivery Costs
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
Single- Family Residence Revitalization Program administered by NHSIE, IHDC and the Foundation are
integral parts of this component.
CURRENT ISSUE:
NHSIE ACTIVITIES
For the quarter ending September 30, 2010,NHSIE completed 17 beautification grants and 1 rehabilitation
loan was completed. This is equal to 18 separate transactions for the quarter. From an expenditure
standpoint, NHSIE expended a total of$194,493 for the quarter in direct Program delivery activities. Of
the 17 beautification grants completed, 7 included homeowner contributions for a total amount of$26,383,
which represents 14%of the total expenditures for the quarter.
The table below details the number of completed activities, levels of expenditures and the average cost per
transaction, for the recent quarter(July 1,2010 through September 30, 20 10)by Program type.
PMgeMu\Coven De Conwiuin\CDC 2010\12-0610 Singlo-F.ily Fim Quumly Report SKd. COMMISSION MEETING AGENDA
Meeting Date: 12/06/'2010
Agenda Item Number: A /
Economic Development Agency Staff Report
Single-Family First Quarter Report
Page 3
Program Completed Activities Expenditure Avg. Transaction Cost
September 30 Qtr September 30 Qtr September 30 Qtr
Beautification Grant 17 $180,368 $10,610
Rehabilitation Loan 1 $14,125 $14,125
TOTAL 18 $194,493 $10,805
From a numerical target standpoint, NHSIE has reached 26% of the beautification grant and 10% of the
rehabilitation loan annual numerical target numbers. The table below details the percent to the proposed
annual quota that was met thus far in the program year.
Program % of Proposed Numerical Target Met
Y-to-D
Beautification Grant 26%
Beautification Loan 10%
Furthermore, for the recent quarter, 82 persons participated in the Homebuyer Education classes
administered by NHSIE at their San Bernardino office located at 1390 North "D" Street. From these
participants, 32 were residents and/or employed within the City equating to 39% of the total persons who
participated in the classes during this reporting period.
In addition, from the 82 participants in the class, 4 City homeowners were created, equating to 5% 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
300 participants that needed to live and/or work in the City.
Program Contractual Target Completed Activities %To Quota
SB Residents: SB Residents:September SB Residents: Y-
FY 10-11 30 Qtr to-D
Homebuyer Education Program 300 32 11%
IHDCACTIVITIES
As a new administrator of the beautification grant and rehabilitation loan programs, it was anticipated that
IHDC would require a ramping up period in order to familiarize themselves with and market the program
within their target area in order to create a pipeline of potential grant and loan recipients. Thus far their
records show a pipeline of 18 active applicants and 14 more applicants waiting for an initial meeting with
IHDC staff. To date12 grants have been approved by Agency staff. Of these grants, 1 will include
homeowner contribution funds and 2 will include additional loan funds. Of the 12 jobs already approved,
it's anticipated that approximately 5 will be completed and the remaining 7 under construction by
December 31,2010.
P:NApWu\Comm De Com m..\CDC 2010\1b0 105inglo-F.HyFU QUW.1y Report SRd. COMMISSION MEETING AGENDA
Meeting Date: 12//06/2010
Agenda Item Number: DZ
Economic Development Agency Staff Report
Single-Family First Quarter Report
Page 4
The table below details the number of completed activities, levels of expenditures and the average cost per
transaction, for the recent quarter(July 1,2010 through September 30, 20 10)by Program type.
Program Completed Activities Expenditure Avg. Transaction Cost
September 30 Qtr September 30 Qtr September 30 Qtr
Beautification Grant 0 0 0
Rehabilitation Loan 0 0 0
TOTAL 0 0 0
From a numerical target standpoint, IHDC has reached 0% of the beautification grant and 0% of the
rehabilitation loan annual numerical target numbers. The table below details the percent to the proposed
annual quota that was met thus far in the program year.
Program % of Proposed Numerical Target Met
Y-to-D
Beautification Grant 0
Beautification Loan 0
FOUNDATIONACTIVITIES
As of September 30, 2010, The Foundation completed 17 minor repair grants and no mobile home grants.
This equals 17 separate transactions for the quarter. From an expenditure standpoint, the Foundation
expended a total of$19,257 for the quarter in direct Program delivery activities.
As a new administrator of the mobile home grant program, it was anticipated that The Foundation would
require a ramping up period in order to staff-up, market the program and create a pipeline of potential grant
recipients. As a result, it is further anticipated that approximately 6 completed jobs will be reported next
quarter.
The table below details the number of completed activities, levels of expenditures and the average cost per
transaction for the recent quarter. (July 1, 2010 through September 30, 2010).
Program Completed Activities Expenditure Avg. Transaction Cost
September 30 Qtr September 30 Qtr September 30 Qtr
Minor Repairs Grant 17 $19,257 $1,133
From a numerical target standpoint, The Foundation has reached 34% of the elderly/special needs grant
requirement and 0% for the mobile home grant target completion numbers. The table below details the
percent to the proposed annual quota that has been met thus far in the program year.
Program % of Proposed Numerical Target Met
Y-to-D
Elden /Special Needs Grant 34%
Mobile Home Grant 0%
R: SendaWommDe Commission\CDC101012-0610Si* FemilyFiWQu edyhwnSKdoc COMMISSION MEETING AGENDA
Meeting Date: 12/06/2010
Agenda Item Number:
Economic Development Agency Staff Report
Single-Family First Quarter Report
Page 5
AGGREGATE PROGRAM TOTALS
In total, the Contractors have completed 35 separate transactions for the quarter ending September 30,
2010.
From an expenditure standpoint, the Contractors collectively have expended a total of $213,750 for the
quarter 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 (July 1, 2010 through
September 30,2010).
Program Completed Activities Expenditure Avg. Transaction Cost
Administrator
September 30 Qtr September 30 Qtr September 30 Qtr
NHSIE 18 $194,493 $10,805
IHDC 0 0 0
The Foundation 17 $19,257 $1,133
TOTAL 35 1 213,750 1 $6,107
Please see Attachment 1 for the locations of program activities and approved funding indicated by Ward.
The map identifies this information for the most recently completed quarter through September 30, 2010.
Further examples of completed activities, Attachment 2 includes before and after pictures of 3
representative Beautification Grant projects conducted during the most recent quarter.
Income Levels
The source of funds for program activities require the Agency, through the Contractors 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.
Very Low Low Moderate
<50%AMI 50-80%AMI 81-120%AMI
Income Level #of Households #of Households #of Households
September 30 QTR September 30 QTR September 30 QTR
Fund Type
HOME 0 0 0
Set-Aside 19 1 13 3
TOTAL 19 1 13 3
Through September 30, 2010, a total of 19 very low-income families, 13 low-income families and 3
moderate-income families, for a total of 35 households,have been assisted with Agency Funds.
R\Agevdas\Coo Dev Coo issioe\CDC 2010\12-0610Sieglo-FamilyFir#Q clyReportSR.dm COMMISSION MEETING AGENDA
Meeting Date: 12/06/2010
Agenda Item Number: AZV
• Economic Development Agency Staff Report
Single-Family First Quarter Report
Page 6
Program Imulementation Strateeies:
In an attempt to target housing resources and make a more effective program, Agency staff has been
interacting with various Council members in an attempt to identify specific target areas for these resources.
Over the next 3 years it is the intent of the Agency to address specific single family beautification and/or
rehabilitation needs in each of the 7 Council Wards. Thus far Agency staff has met with Council Ward 1
member Marquez to map out a strategy to target a portion of citywide funds in a specific area to include the
boundaries between 9t' Street to the north, Spruce Street to the south, Mt Vernon Avenue to the west and
the 215 Freeway to the east. This component to the strategy includes targeting beautification and
rehabilitation funds to homeowners and separately attempts acquire foreclosed and abandoned properties in
the same immediate area. The overall intent of the program is to create more homeownership opportunities
and to beautify this area of Ward 1.
Thus far the Agency, through IHDC, has been successful in identifying 7 homeowners qualified for the
beautification / rehabilitation program. Furthermore, agency staff is working to identify properties to
acquire and should have them identified by the end of the next reporting period.
ENVIRONMENTAL IMPACT:
This does not meet the definition of a "project" under Section 15378 of the California Environmental
Quality Act ("CEQA"), which states that a "Project" means the whole of an action, which has a potential
for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect
physical change in the environment.
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.
RECOMMENDATION:
That the Community Development Commission adopt the Motion.
-:� Q
Emil A. arzullo, ' Executive Director
P\Agendas\Comm Ue CommissionWDC 2010\12-610 Single-Family Finn Quarterly Report SR,doe COMMISSION MEETING AGENDA
Meeting Date: 12106/2010
Agenda Item Number: Al