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HomeMy WebLinkAbout2013-214 1 RESOLUTION NO. 2013-214 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING $880,000 IN HOME FUNDS FOR THE HOMEBUYER 3 ASSISTANCE ($800,000) AND HOMEBUYER EDUCATION SERVICES PROGRAM 4 ($80,000); AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT BY AND BETWEEN THE CITY OF SAN BERNARDINO AND 5 NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE FOR THE IMPLEMENTATION OF THE HOMEBUYER EDUCATION SERVICES PROGRAM. 6 WHEREAS, the City of San Bernardino (the "City") is an entitlement jurisdiction and 7 annually receives certain federal funds under the United States Department of Housing and Urban 8 Development's ("HUD") HOME Investment Partnership Act ("HOME") and Community 9 Development Block Grant(CDBG) programs; and 10 WHEREAS, on May 3, 2010, the Mayor and Common Council adopted Resolution 2010- 11 100, approving the City's 2010-2015 Consolidated Plan; and 12 WHEREAS, on May 7, 2012, the Mayor and Common Council adopted Resolution 2012- 13 82, approving the 2012-2013 Action Plan that is required to guide and identify needs the City will 14 address incrementally for the 2010-2015 period; and 15 WHEREAS, on June 17, 2013, the Mayor and Common Council adopted Resolution 2013- 16 179, approving and amendeding the City's 2010-2015 Consolidated Plan and the 2012-2013 Action 17 Plan by allocating $880,000 of HOME funds for the Homebuyer Assistance and Homebuyer 18 Education Program; and 19 WHEREAS, NHSIE Inc., is a non- profit organization that provides a Homebuyer Education 20 Services Program and has provided the services in the City and County in the past; and 21 WHEREAS, under terms of the Homebuyer Education Services Agreement ("Agreement"), 22 NHSIE will provide homebuyer education in home maintenance, homebuyer coaching and literacy 23 education, and foreclosure prevention for $80,000; and 24 WHEREAS, the homebuyer assistance program, which provides up to 10% of the home 25 purchase price in downpayment and closing cost assistance, for income eligible households will be 26 administered by Housing Department staff at a budget of$800,000; and 27 /// 28 1 C:\Documents and Settings\sbritton\Local Settings\Temp\MinuteTraq\SanBernardinoCityCA @ SanBernardinoCityCA.IQM2.coal\Work\Attachments\5296.docx 2013-214 1 WHEREAS, in compliance with the California Environmental Quality Act ("CEQA") and 2 the National Environmental Protection Act ("NEPA") guidelines, the authorization and execution of 3 this Agreement is determined to be an exempt action pursuant to Section 15332 of the CEQA 4 Guidelines and 24 CFR 58. 34(a)(3) of NEPA Guidelines because the propose action is required for 5 federal programs administration and compliance. 6 NOW, THEREFORE, BE RESOLVED BY THE MAYOR AND COMMON 7 COUNCIL OF THE CITY OF SAN BERNARDINO, AS FOLLOWS: 8 Section 1. The Mayor and Common Council hereby approves: $80,000 in 9 HOME funds for the Homebuyer Education Service Agreement with NHSIE, Inc. and authorize the 10 City Manager to execute the Agreement; and $800,000 in HOME funds for the Homebuyer 11 Downpayment Assistance Program to be administered through the City. 12 Section 2. The Mayor and Common Council finds and determines that 13 authorization and execution of the Agreement is exempt, pursuant to Section 15332 of the CEQA 14 Guidelines and 24 CFR 58. 34(a)(3) of the NEPA Guidelines because the propose action is required 15 for federal programs administration and compliance. 16 Section 3. This Resolution shall take effect upon its adoption. 17 /// 18 /// 19 /// 20 /// 21 /// 22 /// 23 /// 24 /// 25 /// 26 /// 27 /// 28 /// 2 C:\Documents and Settings\sbritton\Local Settings\Temp\MinuteTraq\SanBernardinoCityCA@ SanBernardinoCityCA.IQM2.com\Work\Attachments\5296.docx 2013-214 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SA 1 BERNARDINO APPROVING $880,000 IN HOME FUNDS FOR THE HOMEBUYE' 2 ASSISTANCE ($800,000) AND HOMEBUYER EDUCATION SERVICES PROGRA I ($80,000); AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMEN 3 BY AND BETWEEN THE CITY OF SAN BERNARDINO AND NEIGHBORHOOI HOUSING SERVICES OF THE INLAND EMPIRE FOR THE IMPLEMENTATION 0 4 THE HOMEBUYER EDUCATION SERVICES PROGRAM. 5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 6 Common Council of the City of San Bernardino at a joint rPvl l a r meeting 7 thereof, held on the 15th day of July , 2013, by the following vote to wit: 8 Council Members: Ayes Nays Abstain Absent 9 MARQUEZ x 10 JENKINS x 11 VALDIVIA x 12 SHORETT x 13 KELLEY x 14 JOHNSON x MCCAMMACK x 15 16 ;/Cdt_/z-(///t"'A")Ge•--- 17 Georgean6Hanna, City Clerk 18 19 The foregoing resolution is hereby approved this 1 1 day of July , 2013 20 21 'atri, J. Morris, e 22 •f San Bernardino 23 24 Approved as to Form: 25 JAMES F. PENMAN, City Attorney 26 By: ,,‘ G 27 28 3 C.\Documents and Settings\sbritton\Local Settings\Temp\MinuteTraq\SanBernardinoCityCA C SanBernardinoCityCA.IQM2.com\Work\Attachments\5296.docx 2013-214 EXHIBIT A HOME SUBRECIPIENT AGREEMENT FOR HOMEBUYER EDUCATION PROGRAM (Neighborhood Housing Services of the Inland Empire,Inc.) THIS HOME SUBRECIPIENT AGREEMENT FOR HOMEBUYER EDUCATION PROGRAM ("Agreement") is made and entered into this 15th day of July 2013, by and between the City San Bernardino, a municipal corporation (hereinafter referred to as "City"), and Neighborhood Housing Services of the Inland Empire, Inc. ("NHSIE") located at 1390 North "D" Street, San Bernardino, California 92405. The parties agree as follows: RECITALS WHEREAS, the City has received formula HOME Investment Partnership allocation annually from the federal Department of Housing and Urban Development ("HUD") to carry out eligible activities in accordance with federal program requirements at 24 CFR 92 (the "Program"), and WHEREAS, the City desires to allocate the sum of Eighty Thousand Dollars ($80,000) annually, of HOME Funds, for a period of three (3) years to NHSIE for the Homebuyer Education Program ("Program") operating expenses,per 24 CFR 92.208(a); and WHEREAS, the City desires to execute a three (3) year Program Agreement with NHSIE, renewable annually subject to the City receiving its annual Federal HOME Grant from HUD; and WHEREAS, NHSIE is desirous of participating in activities eligible under HOME, and further agrees that the beneficiaries of its activities under the program and this Agreement, are or will be individuals or families who meet the income eligibility guidelines at Title 24 CFR part 92.217; and WHEREAS, the City deems the activities to be provided by NHSIE as consistent with and supportive of the HOME Program and is consistent with the City's 2010-2015 Consolidated Plan and Housing Element; and WHEREAS, the City will monitor and administer NHSIE to ensure compliance with all HOME Program requirements, and that NHSIE will comply with all program requirements under 24 CFR 92. NOW, THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS: I. CERTIFYING THE NON-PROFIT: A. Legal Status. The non-profit organization is organized under state or local laws, as evidenced by a charter or articles of incorporation. No part of its net earnings inure to the benefit of any member, founder, contributor, or individual, as evidenced by the same. The non-profit organization must have a tax exemption ruling from the Internal Revenue Service ("IRS") under Section 501(c) of the Internal Revenue Code of 1986, as evidenced by a 501(c) 1 P:\Agendas\Agenda Attachments\Exhibits\07-01-13 Homebuyer Asst Education NHSIE.docx 2013-214 certificate from the IRS. Also, the non-profit organization has among its purposes the provision of decent housing that is affordable to low-and moderate-income people, as evidenced by a statement in the organization's charter, articles of incorporation, by-laws or resolutions. B. Capacity. The non-profit organization conforms to the financial accountability standards of 24 CFR 84.21, "Standards for Financial Management Systems", as evidenced by a notarized statement by the organization's CEO or president, a CPA or a HUD-approved audit summary. NHSIE has a demonstrated capacity for carrying out activities assisted with HOME Funds and affordable housing programs through the stated experience of key staff members or contract(s) with consultants who have experience with related projects to train key staff. Also, NHSIE has shown a history of serving the community. C. Relationship with For-Profit Entities. NHSIE is not controlled nor receives directions from individuals or entities seeking profit from the organization, as evidenced by the organization's by-laws or a memorandum of understanding. NHSIE may be sponsored or created by a for- profit entity, however: 1. The for-profit entity's primary purpose does not include the development or management of housing, as evidenced in its by-laws; and 2. NHSIE is free to contract for goods and services from vendor(s) of its own choosing, as evidenced in its by-laws, charter or articles of incorporation. II. SCOPE OF SERVICES AND COMPENSATION A. Amount of Grant: Pursuant to the conditions being met in Section I. above, the City agrees to pay Eighty Thousand Dollars ($80,000) (the "Funds") annually subject to federal HOME funds being available to the City for the Homebuyer Education Program, for a total compensation of Two Hundred Forty Thousand Dollars ($240,000), over a three (3) year period, subject to HOME funds approval by HUD and City Council. B. Use of Grant Funds: The Funds will be used to pay the operating expenses of NHSIE, including, but not limited to, the costs of salaries, wages, and other employee compensation and benefits; employee education, training; rent; utilities; taxes; insurance; equipment; materials and supplies and more specifically, to implement and administer the Homebuyer Education Program depicted in Exhibit"1"herein. 1. Tasks to be performed: NHSIE shall develop, manage and support the Homebuyer Education Program for low-and moderate-income households through projects that include, but are not limited to, assistance to eligible homebuyers, marketing and outreach services pertaining to the expansion, improvement, or preservation of low-and moderate-income housing (See Exhibit"1"). 2. Schedule for Completion of Tasks/Term of Agreement: Upon execution of this Agreement, NHSIE agrees to provide the services outlined in the body of this Agreement commencing on July 1, 2013 through June 30, 2016, subject to and conditioned upon the City receiving its annual allocation of federal HOME funds for the 2 C\Documents and Settings\sbritton\Local Settings\Temp\MinuteTraq\SanBernardinoCityCA @SanBernardinoCityCA.IQM2.com\Work\Attachments\5297.docx 2013-214 term of this Agreement. Should the City no longer receive federal HOME Funds, particularly during the term of this Agreement, then this Agreement shall terminate and the parties shall have no further obligation to each other relative to this Agreement. C. Other Program Requirements NHSIE must carry out each activity in compliance with all federal laws and regulations described in Subpart H of 24 CFR 92 and outlined hereinafter, except that NHSIE does not assume the City's responsibility for environmental review in Section 92.352 or the intergovernmental review process in Section 92.357. These federal laws and regulations must be complied with as follows: a. Equal Opportunity. No person shall be excluded from participation in, be denied the benefits of or be subjected to discrimination under any program or activity funded in whole or in part with HOME Funds. In addition, HOME Funds must be made available in accordance with all laws and regulations listed in Section 92.350(a). b. Fair Housing. In accordance with the certification made with its housing strategy, each participating jurisdiction must affirmatively further fair housing. Actions described in Section 570.904(c) of Title II of the Cranston-Gonzales National Affordable Housing Act will satisfy this requirement. c. Conflict of Interest. NHSIE will hereby comply with all requirements set forth regarding conflict of interest provisions as they apply in Section 92.356. d. Debarment and Suspension. As required in Section 92.357, NHSIE will comply with all debarment and suspension certifications. Hold Harmless. NHSIE agrees to indemnify, defend, and save harmless, the City, its officers, agents, and employees from any and all claims and losses accruing or resulting to NHSIE or any and all contractors, subcontractors, materialmen, laborers and any other person, firm, or corporation furnishing or supplying work, services or supplies in connection with the performance of this Agreement, and from any and all claims and losses accruing or resulting to any person, firm, or corporation who may be injured or damaged by NHSIE in the performance of this Agreement. Without limiting NHSIE's indemnification of the City, NHSIE shall provide and maintain, at its own expense during the term of this Agreement, the following program(s) of insurance covering its operation hereunder. Such insurance shall be provided by insurer(s) satisfactory to City and evidence of such programs satisfactory to City shall be delivered to the City Manager or designee within ten (10) days of the effective date of this Agreement. General Liability: A program including, but not limited to, comprehensive general liability with a combined single limit of not less than One Million Dollars ($1,000,000) per occurrence. Such insurance shall be primary to and not contributing with any other insurance maintained by the City, and shall name the City as an additional insured. Such insurance shall require the City be notified at least ten (10) days in advance of any change or cancellation of said insurance. D. Request for Disbursement of Funds 1. NHSIE may request the Funds monthly at the rate of$6,666.67, educating a minimum 3 C'\Documents and Settings\sbritton\Local Settings\Temp\MinuteTraq\SanBemardinoCityCA @SanBemardinoCityCA.IQM2.com\Work\Attachments\5297.docx 2013-214 of 23 homebuyers ($300 per homebuyer), on a reimbursement basis, for eligible costs, on a prorata basis, up to a maximum of Two Hundred Forty Thousand Dollars ($240,000) for the three (3) year term. The amount of each request will be limited to the amount substantiated in the invoices submitted for costs incurred operating the Homebuyer Education Program. E. Records and Reports. 1. The City will require that NHSIE maintain the following records and reports in order to assist the City in meeting its record keeping and reporting requirements: a. Records, including individual project and construction records and a running log demonstrating compliance with the applicable provisions of Section 92.508(2) of the HOME Investment Partnership Program; and b. Continuing compliance with the HOME Program shall be certified and reported to the City on a quarterly basis to comply with HOME reporting requirements; and c. Any other legal reports and/or records requested by the City to document the provisions of all affordable housing projects or programs. 2. NHSIE shall retain and provide access to all records for the period of five (5) years from the date of this Agreement in accordance with the requirements of Section 92.508(6)(c) and (d). III. GENERAL PROVISIONS: A. Enforcement of the Agreement. 1. The City, at its discretion, may terminate this Agreement, in whole or in part, by giving NHSIE written notice in accordance with 24 CFR 85.44, which provides in part that suspension or termination may occur if NHSIE materially fails to comply with any term of this Agreement. B. Monitoring 1. The City, is responsible for managing the day-to-day operations of the HOME program; for monitoring the performance of all entities receiving HOME Funds from the City to ensure compliance with the requirements of Subpart K, 24 CFR 92, and for taking appropriate action when performance problems arise. 2. Not less than annually, the City will review the activities of NHSIE, to assess compliance with the requirement of Subpart K, 24 CFR 92, as set forth in this Agreement. C. Notices. Any notice requirement set forth herein shall be deemed satisfied three (3) days after mailing of the notice first-class United States certified mail, postage prepaid, addressed to the appropriate party as follows: /// 4 C:\Documents and Settings\sbritton\Local Settings\Temp\MinuteTraq\SanBemardinoCityCA@ SanBernardinoCityCA.IQM2.com\Work\Attachments\5297.docx 2013-214 NHSIE: Neighborhood Housing Services of the Inland Empire, Inc. C/O Executive Director 1390 North"D" Street San Bernardino, CA 92405 CITY: City of San Bernardino City Manager 300 North D Street, San Bernardino, CA 92401 Such addresses may be changed by notice to the other party given in the same manner as provided above. D. Attorney's Fees. In addition to any other remedies provided hereunder or available pursuant to law, if either party brings an action or proceeding to enforce, protect or establish any right or remedy hereunder, the prevailing party shall be entitled to recover from the other party its costs of suit and reasonable attorney's fees. The costs, salary and expenses of the City Attorney and members of his office in enforcing the Agreement on behalf of the City shall be considered as "attorney's fees" for the purposes of this paragraph. E. No Third Parties Benefited. This Agreement is made and entered into for the sole protection and benefit of the City, its successors and assigns, and NHSIE, its permitted successors and assigns, and no other person or persons shall have any right of action hereon. F. City to File Notices. NHSIE irrevocably appoints, designates, and authorizes the City, as its agent (said City being coupled with an interest) to file at its option for record any notices of completion, cessation of labor, or any other notice that the City deems necessary or desirable to protect its interest hereunder. G. Actions. The City shall have the right to commence, appear in, or defend any action or proceeding purporting to affect the rights, duties, or liabilities of the parties hereunder, or the disbursement of any proceeds of the City allocation of HOME Funds. H. Successors and Assigns. The terms hereof shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto; provided, however, that no assignment of NHSIE's rights hereunder shall be made, voluntarily or by operation of law, without the prior written consent of the City, and that any such assignment without said consent shall be void. I. Construction of Words. Except where the context otherwise requires, words imparting the singular number shall include the plural number and vice versa, words imparting persons shall include firms, associations, partnerships and corporations, and words of either gender shall include the other gender. J. Partial Invalidity. If any provision of this Agreement shall be declared invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions hereof shall not in any way be affected or impaired. K. Governing Law. This Agreement and any other instruments given pursuant hereto shall be construed in accordance with and be governed by the laws of the State of California and the 5 C:\Documents and Settings\sbritton\Local Settings\Temp\MinuteTraq\SanBernardinoCityCA @SanBernardinoCityCA.IQM2.com\Work\Attachments\5292 docx 2013-214 pertinent HOME regulations. L. Amendment. This Agreement may not be changed orally, but only by agreement in writing signed by NHSIE and the City. M. Approvals. Where an approval or submission is required under this Agreement, such approval or submission shall be valid for purposes of this Agreement only if made in writing. N. Captions and Headings. Captions and headings in this Agreement are for convenience of reference only, and are not to be considered in construing this Agreement. O. Entire Agreement. This Agreement shall be executed in triplicate, each of which is deemed to be an original. This Agreement is comprised of 7 pages inclusive of Exhibit "1", which constitutes the entire understanding and agreement of the parties. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements between the parties. P. Authority. The individuals executing this Agreement and the instruments referenced herein on behalf of NHSIE each represent and warrant that they have the legal power, right and actual authority to bind NHSIE to the terms and conditions hereof and thereof. IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed the day and year first above written. NHSIE Neighborhood Housing Services of the Inland Empire, Inc., a California non-profit corporation By: Dawn Lee, Executive Director CITY City of San Bernardino, a municipal corporation By: Allen Parker, City Manager Approved as to Form: JAMES F. PENMAN, City Attorney By: , 6 C.\Documents and Settings\sbritton\Local Settings\Temp\MinuteTraq\SanBernardinoCityCA@ SanBernardinoCityCA.IQM2.com\Work\Attachments\5297.docx 2013-214 Exhibit "1" 1. SCOPE OF WORK A. To provide homebuyer education classes for not less than 227 homebuyer per year as described and detailed in Section 2 below, and to provide homebuyer education classes to homebuyers referred by the City. B. To conduct off-site marketing and outreach of NHSIE's and the City's Homebuyer's Assistance Programs. NHSIE will provide outreach and marketing to both public and private sector entities. A total of not less than 9 businesses and/or organizations per year will be targeted. C. To provide City/City with monthly reports detailing participants and families completing the Homebuyer Education Program, and the number of families purchasing a home within the City of San Bernardino. D. To fund at least 2 loans per month utilizing the City's Homebuyer's Assistance Program and NHSIE's "Gimme 10" Program, or other programs available to qualified first time homebuyers to buy a home in the City of San Bernardino. 2. HOMEBUYER EDUCATION A. Real Estate,Title and Escrow E. Homeowner's Insurance • Explaining Real Estate Purchase Contract • Different Types of Insurance Companies • Contingencies and Counteroffers • Different Types of Insurance Policies • Title Report • Coverage Needed Before Closing: Basic Five • Escrow Disclosures • Additional Coverage: Medical, Liability, • Escrow Fees Homeowner's Policy, Earthquake and Flood Insurance,etc. B. The Mortgage Process • Types of Mortgage Loans F. Foreclosure Prevention • Getting Pre-qualified and Receiving a Loan • Avoiding Late Payments Commitment • Responding to Collection Letters • The 1003 Application • Repayment Plans,Forbearances and Loan • Good Faith Estimate Modifications • Alternatives to Foreclosure C. Home Inspections • What is a Home Inspection? G. Fair Housing and Predatory Lending • Difference between an Inspection Report • Predatory Lending and an Appraisal • Fair Housing: Know Your Rights • Selecting a Home Inspector • Addressing Health and Safety Issues H. Community Empowerment and Civic Participation • Getting Involved in Your Community D. Home Maintenance and Preventative Care • Community Involvement Activities • The Value of Home • Neighborhood Watch Programs Maintenance • Basic Tools and Equipment for Maintenance • Heat, Venting and Air Conditioning • Plumbing System, Water Supply, Drains • Home Cleaning Methods 7 C:\Documents and Settings\sbritton\Local Settings\Temp\MinuteTraq\SanBemardinoCityCA @SanBernardinoCityCA.IQM2.com\Work\Attachments\5297 docx 2013-214 EXHIBIT A HOME SUBRECIPIENT AGREEMENT FOR HOMEBUYER EDUCATION PROGRAM (Neighborhood Housing Services of the Inland Empire, Inc.) THIS HOME SUBRECIPIENT AGREEMENT FOR HOMEBUYER EDUCATION PROGRAM ("Agreement") is made and entered into this 15th day of July 2013, by and between the City San Bernardino, a municipal corporation (hereinafter referred to as "City"), and Neighborhood Housing Services of the Inland Empire, Inc. ("NHSIE") located at 1390 North "D" Street, San Bernardino, California 92405. The parties agree as follows: RECITALS WHEREAS, the City has received formula HOME Investment Partnership allocation annually from the federal Department of Housing and Urban Development ("HUD") to carry out eligible activities in accordance with federal program requirements at 24 CFR 92 (the"Program"), and WHEREAS, the City desires to allocate the sum of Eighty Thousand Dollars ($80,000) annually, of HOME Funds, for a period of three (3) years to NHSIE for the Homebuyer Education Program ("Program") operating expenses, per 24 CFR 92.208(a); and WHEREAS, the City desires to execute a three (3) year Program Agreement with NHSIE, renewable annually subject to the City receiving its annual Federal HOME Grant from HUD; and WHEREAS, NHSIE is desirous of participating in activities eligible under HOME, and further agrees that the beneficiaries of its activities under the program and this Agreement, are or will be individuals or families who meet the income eligibility guidelines at Title 24 CFR part 92.217; and WHEREAS, the City deems the activities to be provided by NHSIE as consistent with and supportive of the HOME Program and is consistent with the City's 2010-2015 Consolidated Plan and Housing Element; and WHEREAS, the City will monitor and administer NHSIE to ensure compliance with all HOME Program requirements, and that NHSIE will comply with all program requirements under 24 CFR 92. NOW, THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS: I. CERTIFYING THE NON-PROFIT: A. Legal Status. The non-profit organization is organized under state or local laws, as evidenced by a charter or articles of incorporation. No part of its net earnings inure to the benefit of any member, founder, contributor, or individual, as evidenced by the same. The non-profit organization must have a tax exemption ruling from the Internal Revenue Service ("IRS") under Section 501(c) of the Internal Revenue Code of 1986, as evidenced by a 501(c) 1 PAAgendas\Agenda Attachments\Exhibits\07-01-13 Homebuyer Asst Education NHSIE.docx 2013-214 certificate from the IRS. Also, the non-profit organization has among its purposes the provision of decent housing that is affordable to low-and moderate-income people, as evidenced by a statement in the organization's charter, articles of incorporation, by-laws or resolutions. B. Ca acit . The non-profit organization conforms to the financial accountability standards of 24 CFR 84.21, "Standards for Financial Management Systems", as evidenced by a notarized statement by the organization's CEO or president, a CPA or a HUD-approved audit summary. NHSIE has a demonstrated capacity for carrying out activities assisted with HOME Funds and affordable housing programs through the stated experience of key staff members or contract(s) with consultants who have experience with related projects to train key staff. Also, NHSIE has shown a history of serving the community. C. Relationship with For-Profit Entities. NHSIE is not controlled nor receives directions from individuals or entities seeking profit from the organization, as evidenced by the organization's by-laws or a memorandum of understanding. NHSIE may be sponsored or created by a for- profit entity, however: 1. The for-profit entity's primary purpose does not include the development or management of housing, as evidenced in its by-laws; and 2. NHSIE is free to contract for goods and services from vendor(s) of its own choosing, as evidenced in its by-laws, charter or articles of incorporation. 11. SCOPE OF SERVICES AND COMPENSATION A. Amount of Grant: Pursuant to the conditions being met in Section 1. above, the City agrees to pay Eighty Thousand Dollars ($80,000) (the "Funds") annually subject to federal HOME funds being available to the City for the Homebuyer Education Program, for a total compensation of Two Hundred Forty Thousand Dollars ($240,000), over a three (3) year period, subject to HOME funds approval by HUD and City Council. B. Use of Grant Funds: The Funds will be used to pay the operating expenses of NHSIE, including, but not limited to, the costs of salaries, wages, and other employee compensation and benefits; employee education, training; rent; utilities; taxes; insurance; equipment; materials and supplies and more specifically, to implement and administer the Homebuyer Education Program depicted in Exhibit"1" herein. I. Tasks to be performed: NHSIE shall develop, manage and support the Homebuyer Education Program for low-and moderate-income households through projects that include, but are not limited to, assistance to eligible homebuyers, marketing and outreach services pertaining to the expansion, improvement, or preservation of low-and moderate-income housing (See Exhibit"1"). 2. Schedule for Completion of Tasks/Term of Agreement: Upon execution of this Agreement, NHSIE agrees to provide the services outlined in the body of this Agreement commencing on July 1, 2013 through June 30, 2016, subject to and conditioned upon the City receiving its annual allocation of federal HOME funds for the 2 C:\Documents and Settings\sbritton\Local Settings\Temp\MinuteTraq\SanBernardinoCityCA a SanBernardinoCityCA.IQM2.com\Work\Attachments\5297.docx 2013-214 term of this Agreement. Should the City no longer receive federal HOME Funds, particularly during the term of this Agreement, then this Agreement shall terminate and the parties shall have no further obligation to each other relative to this Agreement. C. Other Program Requirements NHSIE must carry out each activity in compliance with all federal laws and regulations described in Subpart H of 24 CFR 92 and outlined hereinafter, except that NHSIE does not assume the City's responsibility for environmental review in Section 92.352 or the intergovernmental review process in Section 92.357. These federal laws and regulations must be complied with as follows: a. Equal Opportunity. No person shall be excluded from participation in, be denied the benefits of or be subjected to discrimination under any program or activity funded in whole or in part with HOME Funds. In addition, HOME Funds must be made available in accordance with all laws and regulations listed in Section 92.350(a). b. Fair Housing. In accordance with the certification made with its housing strategy, each participating jurisdiction must affirmatively further fair housing. Actions described in Section 570.904(c) of Title Il of the Cranston-Gonzales National Affordable Housing Act will satisfy this requirement. c. Conflict of Interest. NHSIE will hereby comply with all requirements set forth regarding conflict of interest provisions as they apply in Section 92.356. d. Debarment and Suspension. As required in Section 92.357, NHSIE will comply with all debarment and suspension certifications. Hold Harmless. NHSIE agrees to indemnify, defend, and save harmless, the City, its officers, agents, and employees from any and all claims and losses accruing or resulting to NHSIE or any and all contractors, subcontractors, materialmen, laborers and any other person, firm, or corporation furnishing or supplying work, services or supplies in connection with the performance of this Agreement, and from any and all claims and losses accruing or resulting to any person, firm, or corporation who may be injured or damaged by NHSIE in the performance of this Agreement. Without limiting NHSIE's indemnification of the City, NHSIE shall provide and maintain, at its own expense during the term of this Agreement, the following program(s) of insurance covering its operation hereunder. Such insurance shall be provided by insurer(s) satisfactory to City and evidence of such programs satisfactory to City shall be delivered to the City Manager or designee within ten (10) days of the effective date of this Agreement. General Liability: A program including, but not limited to, comprehensive general liability with a combined single limit of not less than One Million Dollars ($1,000,000) per occurrence. Such insurance shall be primary to and not contributing with any other insurance maintained by the City, and shall name the City as an additional insured. Such insurance shall require the City be notified at least ten (10) days in advance of any change or cancellation of said insurance. D. Request for Disbursement of Funds 1. NHSIE may request the Funds monthly at the rate of$6,666.67, educating a minimum 3 CADocuments and Settings\sbritton\Local Settings\Temp\MinuteTraq\SanBernardinoCityCA @ SanBemardinoCityCA.IQM2.com\Work\Auachments\5297.docx 2013-214 of 23 homebuyers ($300 per homebuyer), on a reimbursement basis, for eligible costs, on a prorata basis, up to a maximum of Two Hundred Forty Thousand Dollars ($240,000) for the three (3) year term. The amount of each request will be limited to the amount substantiated in the invoices submitted for costs incurred operating the Homebuyer Education Program. E. Records and Reports. 1. The City will require that NHSIE maintain the following records and reports in order to assist the City in meeting its record keeping and reporting requirements: a. Records, including individual project and construction records and a running log demonstrating compliance with the applicable provisions of Section 92.508(2) of the HOME Investment Partnership Program; and b. Continuing compliance with the HOME Program shall be certified and reported to the City on a quarterly basis to comply with HOME reporting requirements; and c. Any other legal reports and/or records requested by the City to document the provisions of all affordable housing projects or programs. 2. NHSIE shall retain and provide access to all records for the period of five (5) years from the date of this Agreement in accordance with the requirements of Section 92.508(6)(c) and (d). I1I. GENERAL PROVISIONS: A. Enforcement of the Agreement. 1. The City, at its discretion, may terminate this Agreement, in whole or in part, by giving NHSIE written notice in accordance with 24 CFR 85.44, which provides in part that suspension or termination may occur if NHSIE materially fails to comply with any term of this Agreement. B. Monitoriniz 1. The City, is responsible for managing the day-to-day operations of the HOME program; for monitoring the performance of all entities receiving HOME Funds from the City to ensure compliance with the requirements of Subpart K, 24 CFR 92, and for taking appropriate action when performance problems arise. 2. Not less than annually, the City will review the activities of NHSIE, to assess compliance with the requirement of Subpart K, 24 CFR 92, as set forth in this Agreement. C. Notices. Any notice requirement set forth herein shall be deemed satisfied three (3) days after mailing of the notice first-class United States certified mail, postage prepaid, addressed to the appropriate party as follows: 4 C:\Documents and Settings\sbritton\Local Settings\Temp\MinuteTraq\SanBernardinoCityCA@ SanBemardinoCityCA.IQM2.com\Work\Attachments\5297.docx 2013-214 NHSIE: Neighborhood Housing Services of the Inland Empire, Inc. C/O Executive Director 1390 North"D" Street San Bernardino, CA 92405 CITY: City of San Bernardino City Manager 300 North D Street, San Bernardino, CA 92401 Such addresses may be changed by notice to the other party given in the same manner as provided above. D. Attorney's Fees. In addition to any other remedies provided hereunder or available pursuant to law, if either party brings an action or proceeding to enforce, protect or establish any right or remedy hereunder, the prevailing party shall be entitled to recover from the other party its costs of suit and reasonable attorney's fees. The costs, salary and expenses of the City Attorney and members of his office in enforcing the Agreement on behalf of the City shall be considered as "attorney's fees" for the purposes of this paragraph. E. No Third Parties Benefited. This Agreement is made and entered into for the sole protection and benefit of the City, its successors and assigns, and NHSIE, its permitted successors and assigns, and no other person or persons shall have any right of action hereon. F. City to File Notices. NHSIE irrevocably appoints, designates, and authorizes the City, as its agent (said City being coupled with an interest) to file at its option for record any notices of completion, cessation of labor, or any other notice that the City deems necessary or desirable to protect its interest hereunder. G. Actions. The City shall have the right to commence, appear in, or defend any action or proceeding purporting to affect the rights, duties, or liabilities of the parties hereunder, or the disbursement of any proceeds of the City allocation of HOME Funds. H. Successors and Assigns. The terms hereof shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto; provided, however, that no assignment of NHSIE's rights hereunder shall be made, voluntarily or by operation of law, without the prior written consent of the City, and that any such assignment without said consent shall be void. I. Construction of Words. Except where the context otherwise requires, words imparting the singular number shall include the plural number and vice versa, words imparting persons shall include firms, associations, partnerships and corporations, and words of either gender shall include the other gender. J. Partial Invalidity. If any provision of this Agreement shall be declared invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions hereof shall not in any way be affected or impaired. K. Governing Law. This Agreement and any other instruments given pursuant hereto shall be construed in accordance with and be governed by the laws of the State of California and the 5 C:\Documents and Settings\sbritton\Local Settings\Temp\MinuteTraq\SanBernardinoCityCA«SanBernardinoCityCA.IQM2.com\Work\Attachments\5297.docx 2013-214 pertinent HOME regulations. L. Amendment. This Agreement may not be changed orally, but only by agreement in writing signed by NHSIE and the City. M. Approvals. Where an approval or submission is required under this Agreement, such approval or submission shall be valid for purposes of this Agreement only if made in writing. N. Captions and Headings. Captions and headings in this Agreement are for convenience of reference only, and are not to be considered in construing this Agreement. O. Entire Agreement. This Agreement shall be executed in triplicate, each of which is deemed to be an original. This Agreement is comprised of 7 pages inclusive of Exhibit "I", which constitutes the entire understanding and agreement of the parties. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements between the parties. P. Authority. The individuals executing this Agreement and the instruments referenced herein on behalf of NHSIE each represent and warrant that they have the legal power, right and actual authority to bind NHSIE to the terms and conditions hereof and thereof. IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed the day and year first above written. NHSIE Neighborhood Housing Services of the Inland Empire, Inc., a California non-profit corporation By. Dawn Lee, Executive Director CITY City of San Bernardino, a municipal corporation By: A Parker, City Manager Approved as to Form: JAMES F. PENMAN, City Attorney By: 6 CADocuments and Settings\sbritton\Local Settings\Temp\MinuteTraq\SanBernardinoCityCA@ SanBernardinoCityCA.IQM2.com\Work\Attachments\5297.docx 2013-214 Exhibit "1" 1. SCOPE OF WORK A. To provide homebuyer education classes for not less than 227 homebuyer per year as described and detailed in Section 2 below, and to provide homebuyer education classes to homebuyers referred by the City. B. To conduct off-site marketing and outreach of NHSIE's and the City's Homebuyer's Assistance Programs. NHSIE will provide outreach and marketing to both public and private sector entities. A total of not less than 9 businesses and/or organizations per year will be targeted. C. To provide City/City with monthly reports detailing participants and families completing the Homebuyer Education Program, and the number of families purchasing a home within the City of San Bernardino. D. To fund at least 2 loans per month utilizing the City's Homebuyer's Assistance Program and NHSIE's "Gimme 10" Program, or other programs available to qualified first time homebuyers to buy a home in the City of San Bernardino. 2. HOMEBUYER EDUCATION A. Real Estate,Title and Escrow E. Homeowner's Insurance • Explaining Real Estate Purchase Contract N Different Types of Insurance Companies • Contingencies and Counteroffers ■ Different Types of Insurance Policies • Title Report ■ Coverage Needed Before Closing: Basic Five • Escrow Disclosures ■ Additional Coverage:Medical,Liability, • Escrow Fees Homeowner's Policy, Earthquake and Flood Insurance,etc. B. The Mortgage Process • Types of Mortgage Loans F. Foreclosure Prevention • Getting Pre-qualified and Receiving a Loan E Avoiding Late Payments Commitment E Responding to Collection Letters • The 1003 Application 0 Repayment Plans,Forbearances and Loan • Good Faith Estimate Modifications ■ Alternatives to Foreclosure C. Home Inspections • What is a Home Inspection? G. Fair Housing and Predatory Lending • Difference between an Inspection Report ■ Predatory Lending and an Appraisal ■ Fair Housing: Know Your Rights • Selecting a Home Inspector • Addressing Health and Safety Issues H. Community Empowerment and Civic Participation ■ Getting Involved in Your Community D. Home Maintenance and Preventative Care E Community Involvement Activities ■ The Value of Home ■ Neighborhood Watch Programs Maintenance ■ Basic Tools and Equipment for Maintenance ■ Heat,Venting and Air Conditioning ■ Plumbing System,Water Supply,Drains ■ Home Cleaning Methods 7 CADocuments and Settings\sbrittonTocal Settings\Temp\MinuteTraq\SanBernardinoCityCA C SanBernardinoCityCA.IQM2.com\Work\Attachments\5297.docx DA=(MWDDNYYY)Aco CERTIFICATE OF LIABILITY INSURANCE 4/ THIS CERTIFICATE IS ISSUED AS A EOR NEGATIVELY AMENDYEX AND CONFERS NO END OR ALT RTIHE COVERAGE AFFORDEDABY THE POLICIES CERTIFICATE DOES NOT AFFIRMAT VELY BELOW. THIS CERTIFICATE OF INSURANCE PRODUCER,AND THE DOES NOT HOLDER. A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED RESEN RTANT: If the certificate holder is an ADDITIONAL INSURED,the policy(tes)must be endorsed. .1-S, 513 ROGATION IS WAIVED,subject o t terms and conditions of the policy,certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). coNracr Carole Nix PRODUCER NAME: FAX PHONE (9Q9)792-8950 A/C No•(909)792-2030 Caldwell & Moreland Insurance Services DBA E-MAIL .carolen @arroyoins.com Arroyo Insurance Services ADDRE INSURERS AFFORDING COVERAGE NAIC M 1654 Plum Lane Redlands CA 92374-4532 INSURER A:Philadel hia Indemnit Ins Co INSURER B,. INSURED Neighborhood Housing Services of the Inland INSURER C: 1390 North D Street INSURERD: INSURER E San Bernardino CA 92405 INSURERF: REVISION NUMBER: COVERAGES CERTIFICATE NUMBER:CL134101961 THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD CERTIFICATE MAYIBESSSUED ORNWIgYEPERIEANETHE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN S SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN R PO CeD BY PPOu Y EXPS LIMITS ADOL BR POLICY NUMBER MMIDDY/YYYY MM/DD/YYYY 1,000,000 INSR TYPE OF INSURANCE LTR EACH OCCURRENCE $ GENERAL LIABILITY DAMA T D 1,000,000 PREMISES Ea occurrence $ X COMMERCIAL GENERAL LIABILITY /17/2013 /17/2014 MED EXP(Any one arson) $ 20,000 A CLAIMS-MADE FX OCCUR X HPK980126 1,000,000 PERSONAL 8 ADV INJURY $ GENERAL AGGREGATE $ 3,0001000 PRODUCTS-COMP/OPAGG $ 3,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: $ X POLICY PRO LOC COMBINED SINGLE LIMIT Ea accident —. TOMOBILE LIABILITY BODILY INJURY(Per person) $ ANY AUTO BODILY INJURY(Per accident) $ ALL OWNED SCHEDULED AUTOS AUTOS PROPERTY DAMAGE $ NON-OWNED Per accident HIRED AUTOS AUTOS $ EACH OCCURRENCE $ UMBRELLA LIAB OCCUR $ AGGREGATE EXCESS LIAB CLAIMS-MADE $ DED RETENTION$ WC STATU- OTH- WORKERS COMPENSATION AND EMPLOYERS'LIABILITY YIN E.L.EACH ACCIDENT $ ANY PROPRIETOR/PARTNER/EXECUTIVE❑ N/A E.L.DISEASE-EA EMPLOYE $ OFFICER/MEMBER EXCLUDED? (Mandatory in NH) E.L.DISEASE-POLICY LIMIT $ If yes,describe under DESCRIPTION OF OPERATIONS below HPK960126 Blanket Be Personal Property $120,000 A Property section /17/2013 /17/2014 Deductible $1,000 DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES (Attach ACORD 101,Additional Remarks Schedule,if more space is required) RE: Allworx Phone System - Loan # 24989 Property coverage - Special form, Replacement Cost including theft. "Baytree National Bank Trust is & hereby recognized as Additional Insured/Loss payee" CANCELLATION CERTIFICATE HOLDER SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. aytree National Bank & Trust 5325 SE 30th Place # ZOO AUTHORIZED REPRESENTATIVE Bellevue, WA 98007-6597 Carole Nix/CAROLS ©1988-2010 ACORD CORPORATION. All rights reserved. ACORD 25(2010/05) The ACORD name and logo are registered marks of ACORD INS025(201005)01 =5/23/2013 Y) A� CERTIFICATE OF LIABILITY INSURANCE THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED,the policy(fes)must be endorsed. If SUBROGATION IS WAIVED,subject to the terms and conditions of the policy,certain policies may require an endorsement A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). cON Ac Carole Nix PRODUCER - NAM FAX PHONE (909)792-8950 .190 91 792-2030 Kellogg & Moreland Agency, Inc. DBA EMAIL carolen @arroyoins.com Arroyo Insurance Services , NAIC0 1654 plum Lane INSURER(N AFFORDING COVERAGE Redlands CA 92374-4532 INSURERA:Phlladel hia Indemnit Ins Co INSURED INSURER 8: Neighborhood Housing Services of the Inland INSURER C: 1390 North D Street INSURER D: INSURER E: San Bernardino CA 92405 INSURERF: COVERAGES CERTIFICATE NUMBER:CL1352302048 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PER INDICATED. NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS WI CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. LIMITS POUCY EF LIMITS F PMUCY EXP INSR TYPE OF INSURANCE POLICY NUMBER MM/DD LTR EACH OCCURRENCE $ GENERALLJABIUTY S PREMISES E cw n COMMERCIAL GENERAL LIABILITY MED EXP An one arson) $ CLAIMS-MADE OCCUR PERSONAL&ADV INJURY S GENERAL AGGREGATE $ PRODUCTS-COMP/OP AGG S GEN'L AGGREGATE LIMIT APPLIES PER: S PRO- LOC COMBINED SINGLE LIMIT Me accident) POLICY AUTOMOBILE LIABILITY BODILY INJURY(Per person) $ ANY AUTO BODILY INJURY(Per accident) $ ALL OWNED SCHEDULED PROPERTY DAMAGE AUTOS AUTOS $ NON-OWNED P accident) HIRED AUTOS AUTOS $ . EACH OCCURRENCE $ :MC.FRELLA LIAR OCCUR $ AGGREGATE UAB CLAIMS-MADE $ RETENTION S WC ST MIT OTH- WORKERS COMPENSATION AND EMPLOYERS'UABIUTY E.L.EACH ACCIDENT S ANY PROPRIETORIPARTNERIEXECUTIVE Y� NIA E.L.DISEASE-EA EMPLOYE S OFFICERIMEMBER EXCLUDED? (Mandatory in NH) E.L DISEASE-POLICY LIMIT S If yes,describe under DESCRIPTION OF OPERATIONS below 250,000 HPK980126 /17/2013 /17/2014 Limit of Coverage A Employee Dishonesty Deductible 2,500 DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (Attach ACORD 101,Additional Remarks Schedule,If more space Is required) Verification of coverage - Certificate holder is hereby recognized as lose payee 30 days notice of cancellation except 10 days notice of cancellation for non payment of premum. CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. NeighborWorks America 1325 G Street, NW AUTHORIZED REPRESENTATIVE Suite # 800 Washington, DC 20005 Carole Nix/CAROLS �•��� (9)1988-2010 ACORD CORPORATION. All rights reserved. ACORD 25(2010/05) INS025(201005)01 The ACORD name and logo are registered marks of ACORD