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HomeMy WebLinkAbout2013-212 1 RESOLUTION NO. 2013-212 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING $100,000 IN COMMUNITY DEVELOPMENT BLOCK 3 GRANT FUNDS (CDBG) FOR THE SINGLE FAMILY BEAUTIFICATION 4 LOAN/GRANT PROGRAM IMPLEMENTATION AGREEMENT WITH INLAND HOUSING DEVELOPMENT CORPORATION, INC. (IHDC) AND AUTHORIZING THE 5 CITY MANAGER TO EXECUTE THE AGREEMENT. 6 WHEREAS, the City of San Bernardino (the "City") is an entitlement City and eligible to 7 participate in the United States Department of Housing and Urban Development's ("HUD") and 8 receive annual allocation HOME Investment Partnership Act Funds ("HOME") and Community 9 Development Block Grant; 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 on August 7, 2012, adopted Resolution 12 2012-82, approving the 2012-2013 Action Plan that is required to guide and identify needs the City 13 will address incrementally for the 2010-2015 period; and 14 WHEREAS, on June 17, 2013, the Common Council adopted Resolution 2013-179 15 approving and amending the City's 2010-2015 Consolidated Plan by allocating $100,000 of CDBG 16 funds for Single Family Beautification Loan/ Grant Program; and 17 WHEREAS, the Inland Housing Development Corporation, Inc., (IHDC) is a non- profit 18 organization that provides housing rehabilitation and beautification services in the City and in the 19 City and County of Riverside; and 20 WHEREAS, under terms of the Agreement, IHDC will assist the City in providing exterior 21 beautification loan / grant to eligible households for paint, replace window and doors, roof repair 22 and install new landscape to homeowners; and 23 WHEREAS, in compliance with the California Environmental Quality Act ("CEQA") and 24 the National Environmental Protection Act ("NEPA") guidelines, the authorization and execution of 25 this Agreement is determine to be an exempt actions pursuant to Section 15332 of the CEQA 26 Guidelines and 24 CFR 58. 34(a)(3) of NEPA Guidelines because the propose action is required for 27 federal programs administration and compliance. 28 1 C:\Documents and Settings\sbr loon\Local settingsv Temp AMinuteTraq\SanBernardinoCityCA aSanBernardinoCityCA.IQM2.com\Work\Attachments\ 5308.docx 2013-212 1 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL 2 OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 3 Section 1. The Mayor and Common Council hereby approves the Agreement (attached 4 as Exhibit A) allocating $100,000 in CDBG funds for the Single Family Beautification Loan/ Grant 5 Program Implementation Agreement with Inland Housing Development Corporation, Inc. and 6 authorizes the City Manager to execute the Agreement. 7 Section 2. The Mayor and Common Council finds and determines that authorization 8 and execution of the Agreement is exempt, pursuant to Section 15332 of the CEQA Guidelines and 9 24 CFR 58. 34(a)(3) of the NEPA Guidelines because the propose action is required for federal 10 programs administration and compliance. 11 Section 3. This Resolution shall take effect upon its adoption and execution in the 12 manner as required by the City Charter. 13 /// 14 /// 15 /// 16 /// 17 /// 18 /// 19 /// 20 /// 21 /// 22 /// 23 /// 24 /// 25 /// 26 /// 27 /// 28 2 C.\Documents and Settings\sbritton\Local Settings\Temp\MinuteTraq\SanBernardinoC ityCA @S anBernardinoCityCA.IQM2.com\Work\Attachments\ 5308.docx 2013-212 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING $100,000 IN COMMUNITY DEVELOPMENT BLOCK 2 GRANT FUNDS (CDBG) FOR THE SINGLE FAMILY BEAUTIFICATION LOAN/GRANT PROGRAM IMPLEMENTATION AGREEMENT WITH INLAND 3 HOUSING DEVELOPMENT CORPORATION, INC. (IHDC) AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT. 4 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 5 Common Council of the City of San Bernardino at a j oint regular meeting thereof, 6 held on the 15th day of July , 2013, by the following vote to wit: 7 Council Members: Ayes Nays Abstain Absent 8 MARQUEZ x 9 JENKINS x 10 VALDIVIA —X- 11 SHORETT x 12 KELLEY x 13 JOHNSON x 14 MC CAMMACK 15 16 ' .,/ / / GeorgeaHanna, City Clerk 17 18 The foregoing resolution is hereby approved this 1 day of Jul y , 2013. 19 20 'atrick J. Morris, May 21 CI ' • an Bernardino 22 23 Approved as to Form: 24 JAMES F. PENMAN, City Attorney 25 26 By: ' 24"`" ? &ivi)'"(-- 27 28 3 C:\Documents and Settings\sbritton\Local settings\Temp\MinuteTraq\SanBernardinoCityCA@ SanBernardinoCityCA.IQM2.com\Work\Attachments\ 5308.docx 2013-212 EXHIBIT A CITY OF SAN BERNARDINO SINGLE FAMILY BEAUTIFICATION LOAN/GRANT PROGRAM THIS AGREEMENT FOR THE SINGLE FAMILY BEAUTIFICATION LOAN/ GRANT PROGRAM is made and entered into this 15th day of July 2013, by and between the RIVERSIDE HOUSING DEVELOPMENT CORPORATION, INC., dba INLAND HOUSING DEVELOPMENT CORPORATION, INC., SERVICES OF THE INLAND EMPIRE, INC., a California non-profit corporation (the "CONTRACTOR") and THE CITY OF SAN BERNARDINO, a municipal corporation (the "City") and is related to the facts set forth in the following RECITALS: 1. The City has established a housing improvement program known as the "Single Family Beautification Loan/Grant Program" (the "Program"). 2. The purpose of the Program is to provide low-moderate-income homeowners (the "Qualified Homeowners") who reside in the City of San Bernardino (the "City"), with a special source of loan and grant funds of up to ten thousand ($10,000) to undertake certain housing rehabilitation and correction work (including asbestos and lead containing materials abatement work, handicap accessibility improvements, building code deficiency corrections and certain exterior landscape and structural beautification improvements of owner-occupied single family residential dwelling units. 3. The Program promotes and expands the supply of affordable housing in the City and fosters the elimination and prevention of blight. 4. In order to administer and operate the Program the City desires to extend to the CONTRACTOR Agreement for three (3) years, subject to annual funding availability and the City hereby allocates the total sum of One Hundred Thousand Dollars ($100,000) for the Single Family Beautification Loan/Grant Program to be funded from the City's Community Development Block Grant Funds (CDBG) Program Citywide. NOW, THEREFORE, IT IS MUTUALLY AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS: Section 1. DEFINITIONS OF CERTAIN TERMS. In addition to the words and phrases, which are defined in the Recitals of this Agreement, the following words and terms shall have the meaning set forth below: • "Program Boundaries" means and refers to specific neighborhoods or areas in the City, which the City has instructed CONTRACTOR to offer the Programs to Qualified Homeowners and also on a Citywide basis. During the term of this Agreement and until receipt of further instruction by CONTRACTOR from the City 1 C\Documents and Settings\jgrider\Local Settings\Temp\MinuteTraq\sanbernardinocityca @sanbernardinocityca.IQM2.corn\Work\Attachments\5309.docx 2013-212 Manager, or authorized representatives, all Program Loans and Grants shall be originated for Qualified Homeowners who reside in the City. • "City Manager" means and refers to the City Manager of the City and his or her authorized representatives. • "Home" means and refers to the land and the single family dwelling unit in which the Qualified Homeowner resides as its principal residence. • "Program Loan" means and refers to each single family home improvement loan/grant of up to $10,000 transaction by and between a Qualified Homeowner and the City under the Program, to be originated and serviced by the CONTRACTOR as set forth in this Agreement. Each Program Loan may include a component, which is repayable as a loan by the Qualified Homeowner to the City for the structural interior rehabilitation improvements to the Home, and a component, which is a grant for the eligible exterior aesthetic amenities and landscape improvements, if any. For the purposes hereof, in a particular instance, a Program Loan to a Qualified Homeowner may thus include both a loan and grant component under the Program, or a loan and/or beautification grant component only, depending on the specific Home and the Qualified Homeowner's needs. The terms and conditions of each Program Loan are described in the Scope of Services attached hereto as Exhibit "1" Each Program Loan shall be evidenced by the Program Loan Documents. • "Program Loan Applicant" means and refers to the written application for a Program Loan, which has been signed by the Qualified Homeowner and verified by the CONTRACTOR to be complete. • "Program Beautification Loan/Grant Application" means and refers to a completed written application for a Program Loan or Grant, which has been executed by a Qualified Homeowner. Each Program Beautification Loan/Grant Application shall contain the information relating to the Qualified Homeowner and the proposed use of the Program Loan or Grant proceeds by the Qualified Homeowner together with a current preliminary title report or other proof of title acceptable to the City for the Home. The CONTRACTOR shall require all Qualified Homeowners to complete the application for the Program similar to the application attached hereto and incorporated by reference as Exhibit"2." • "Program Loan Disbursement Account" means and refers to the custodial deposit account, which the CONTRACTOR shall establish with an FDIC-insured depository institution for the receipt and disbursement of all City Fund proceeds under a Program Loan. Such deposit account agreement among the CONTRACTOR, the City and such depository institution shall be in a form and substance as reasonably satisfactory to the City. No other funds of the CONTRACTOR shall be deposited or co-mingled in the Program Loan Disbursement Account. The CONTRACTOR shall serve as the trustee of the City in the administration of all City Funds or deposit in the Program Loan Disbursement Account, including any interest as may accrue thereon. 2 C\Documents and Settings\jgrider\Local Settings\Temp\MinuteTraq\sanbernardinocityca @Jsanbernardinocityca.IQM2.com\Work\Attachments\5309.docx 2013-212 • "Program Loan Documents" means and refers collectively to each of the following documents executed by the Qualified Homeowner: (i) the Program Loan Application; (ii) the Program Loan Agreement and the customary consumer loan term disclosure documentation; (iii) the promissory note of the Qualified Homeowner payable to the City and dated as of the date of initial disbursement of City Funds for the account of the Qualified Homeowner to the Program Loan Disbursement Account; (iv) the deed of trust on the Home which secures the repayment of the promissory note to the City; and (v) a policy of title insurance in favor of the City as lender insuring its security interest in the deed of trust. The general form of Program Loan Documents (ii), (iii), and (iv) which shall be completed and used in each Program Loan transaction are on file with the City and CONTRACTOR. • "Qualified Homeowner" means and refers to (1) a person or household which owns and occupies a single family resident dwelling unit (a "Home") as its principal residence within the City for at least twelve (12) continuous months preceding the date of submission of its Beautification Loan/Grant Program or Mobile Home Program Grant Application to the CONTRACTOR; (2) has a personal or household income level, adjusted for family size, during the twelve (12) months preceding the date of submission of its Program Loan and Beautification Grant Application to the City within the ranges of income for low- and moderate-income households, adjusted for family size, as set forth in Exhibit"3." • Community Development Block Grant ("CDBG PROGRAM") as set forth at 24 Code of Federal Regulations, part 570, et. Seq., which will be used by the City to fund this Agreement, specifically, $100,000 annually for the Single Family Beautification Grant Program (the "City Loan and Grant Program"), to be offered by the CONTRACTOR to Qualified Homeowners who earn less than 80% of the current annual, median income for the San Bernardino County area, adjusted for family size as published by the U.S. Department of Housing and Urban Development (HUD) as further illustrated in Exhibit "3" of this Agreement ("2013 Income Limits") and are subject to annual adjustments. • "Services" means and refers to the Program Loan origination, City Fund disbursement control and related accounting and Work monitor (course of construction builder contract) services to be provided by the CONTRACTOR to the City. The various elements of the Services are more fully set forth in the "Scope of Services" attached hereto as Exhibit"1." • "Work" means and refers to the single family housing improvement and beautification or mobile home work to be performed by a state-licensed general CONTRACTOR on each Home pursuant to the terms of a written agreement by and between the Qualified Homeowner and such general CONTRACTOR. Only the items of Work set forth in such a contract shall be authorized for payment by the CONTRACTOR, up to the maximum amount authorized under the terms of the 3 C:\Documents and Settings\jgrider\Local Settings\Temp\MinuteTraq\sanbernardinocityca @sanbernardinocityca.IQM2.com\Work\Attachments\5309.docx 2013-212 Program Loan for such Work. Any costs of Work in excess of the maximum amount of the Program Loan (which are not the fault of such general CONTRACTOR) shall be paid for by the Qualified Homeowner unless approved in writing by the City Manager or authorized designee. Section 2. SERVICES OF CONTRACTOR. The City agrees to contract with the CONTRACTOR to perform the Services and the CONTRACTOR hereby agrees to accept such contract and to perform the Services as set forth herein. Section 3. SCOPE OF SERVICES. CONTRACTOR agrees to provide the Services to the City as set forth herein and as described in the Scope of Services attached as Exhibit "1" for the Program. Promptly following the date of approval of this Agreement by the governing board of the City the CONTRACTOR shall or will continue to: (1) cause the Program Loan Disbursement Account to be established, or maintained, and the general form of an FDIC - insured deposit account agreement acceptable to the City to be fully executed by the CONTRACTOR, the depository institution and the City within thirty (30) days following the date of approval of this Agreement; (2) continue to use the general form of a Program Beautification Loan/Grant Application for general use in connection with the Services and the origination of Program Beautification Loan/Grant as previously provided by the City. The CONTRACTOR shall designate a title insurance company acceptable to the City, which shall coordinate the issuance of a lender's policy of title insurance in favor of the City at the time of recordation of the deed of trust under each Program Loan; (3) subject to the completion of the tasks described in paragraphs (1) and (2) above, continue the process of receiving and reviewing Program Loan Applications and provide the Services in accordance with the Scope of Services; (4) transmit a copy of a completed set of Program Loan Documents, together with a recommendation of the CONTRACTOR to fund such Program Loan and a request for a transfer of City Funds for the account of the Qualified Homeowner, to the City Manager for authorization for funding. The City Manager shall either authorize the funding of such Program Loan or reject the request for funding on behalf of the City within ten (10) days of receipt from the CONTRACTOR. Any rejection of a Program Beautification Loan/Grant, Application shall be in writing and state the reasons for such action. Each acceptance of a Program Beautification Loan/Grant, Grant Application by the City shall be evidenced by the signature of the City Manager of the Program Loan Documents. All Program Loan Documents for each Program Loan shall be completed by the Qualified Homeowner and the CONTRACTOR, and the disbursement of City Funds on each Program Loan shall occur within sixty (60) days following the date of submission of the funding request to the City Manager, or the Program Loan Agreement shall be of no further force or effect; (5) no fees, charges or expenses shall be payable by any applicant for a Program Loan to the CONTRACTOR, except from City Funds, nor shall the CONTRACTOR charge a Qualified Homeowner for any cost or service in connection with the origination or 4 C\Documents and Settings\jgrider\Local Settings\Temp\MinuteTraq\sanbernardinoci tyca @sanbemardinocityca.IQM2.com\Work\Attachments\5309.docx 2013-212 subsequent administration of a Program Loan during the time Work is performed at the Home, except for the Maintenance Class fee; or as authorized under the Program by the City Manager; (6) instruct the City Manager to transfer City Funds for the account of each Qualified Homeowner to the Program Loan Disbursement Account as set forth in subparagraph (5), above, upon confirmation by the CONTRACTOR that Program Loan Documents for the Program Loan are complete and that the deed of trust is ready for recordation. The CONTRACTOR shall coordinate the issuance of the policy of title insurance in favor of the City by the title insurance copy with the recordation of the deed of trust;(7) deliver a fully executed original set of Program Loan Documents for each Program Loan (except for the original deed of trust) to the City upon request of funding and transfer of City Funds for the account of the Qualified Homeowner to the Program Loan Disbursement Account; (7) verify that no City Funds are disbursed from the Program Loan Disbursement Account for the account of a Qualified Homeowner except: (i) to pay a state-licensed general CONTRACTOR for Work performed at the Home pursuant to a written agreement between such CONTRACTOR and the Qualified Homeowner (less a 10% retention pending completion of the Work and final release of all mechanics and materials liens); and no disbursement of City Funds from the Program Loan Disbursement Account shall be authorized for any building materials or equipment items which are not physically delivered at the Home before the date of payment of such City Funds to the general CONTRACTOR; or (ii) to pay a Program Loan title fee or cost amount expressly authorized in writing by the City Manager; (8) prepare and maintain an City Funds disbursement ledger for all payments authorized and made by the CONTRACTOR to general CONTRACTORS for the account and debit to each Qualified Homeowner under each Program Loan. Such ledger shall show each payment by date and reference the particular Program Loan to which it corresponds. Such ledger shall also include a monthly starting and ending balance for the Program Loan Disbursement Account, a final reconciliation of the adjusted balance of each Program Loan upon the completion of the Work, and such other accounting information as City Manager may request. A copy of such ledger shall be submitted to the City Manager each month with the first such monthly submittal due on the first day of the next month following the date of the initial deposit of City Funds into the Program Loan Disbursement Account. (9) No Work shall be authorized for payment by the CONTRACTOR unless the Program Loan Documents are complete and the CONTRACTOR has received a fully executed copy of the contract by and between the general CONTRACTOR and the Qualified Homeowner. Once the Work has commenced on a particular Home, neither the Qualified Homeowner nor the general CONTRACTOR shall authorize an amendment or modification of such contract to include any item of Work, which is not eligible for payment using City Funds under the terms and conditions of the Program and the Program Loan. Each such contract by and between the general CONTRACTOR and the Qualified Homeowner shall include a section, which recites the words of the first two (2) sentences of this paragraph (9). 5 C:\Documents and Settings\jgrider\Local Settings\Temp\MinuteTraq\sanbernardinocityca @sanbernardinocityca.IQM2.com\Work\Attachments\5309.docx 2013-212 Section 4. TIME OF PERFORMANCE OF SERVICES. The Services to be performed hereunder by the CONTRACTOR shall be undertaken and completed in such sequence as to assure expeditious completion and best carry out the purposes of the Program and this Agreement. All Services required hereunder shall begin upon the execution of this Agreement. Section 5. TERM OF AGREEMENT. This Agreement shall take effect upon approval by the Mayor and Common Council and the complete execution by the parties. The Agreement shall remain in effect through June 30, 2016. Section 6. COMPENSATION PAYABLE BY CITY TO CONTRACTOR. (a) The City shall compensate CONTRACTOR for the performance of the Services using City funds in accordance with the following schedule: $15,000 Annual Program Administration Contractor $85,000 Single Family Beautification Program (CDBG Fund) $100,000 TOTAL (b) Program Administration sums payable by the City to the CONTRACTOR as compensation for Services shall be paid by the City directly to the CONTRACTOR, receipt by City of a corrected invoice and the Grant Funds Disbursement Ledger (the "Grant Funds Disbursement Ledger") which shows all Grant Fund payments authorized by City and disbursed by the Contractor to the General Contractors and/or to the subcontractors under this Agreement for which the Contractor has not been paid by City. City shall pay to the Contractor the correct amount identified on the invoice within thirty (30) calendar days after the receipt by City. The Program Administration Fee under this Agreement and shall not exceed Fifteen Thousand Dollars ($15,000) in the aggregate, for any given year, payable in twelve (12) equal monthly installments of$1,250.00 during the Term of this Agreement. (c) Payment for Services will be made by the City as of the first day of each calendar month with the first such payment due on the first day of the next calendar month following the date of the complete execution of the Agreement by the parties. Section 7. PERSONNEL OF CONTRACTOR. CONTRACTOR represents that it has, or will secure at its own expense, all personnel required to perform the Services. All of the Services required hereunder will be performed by persons who are either employed by or under the supervision and control of the CONTRACTOR, and all personnel engaged in the Services shall be fully qualified to perform such Services. Section 8. INDEPENDENT CONTRACTOR. All acts of CONTRACTOR and all others acting on behalf of CONTRACTOR relating to the performance of this Agreement, shall be performed as independent CONTRACTORS and not as agents, officers, or employees of City. CONTRACTOR has no authority to bind or incur any obligation on behalf of City. CONTRACTOR has no authority or responsibility to exercise any right or power vested in the City. No agent, officer, or employee of the City shall be considered an employee of CONTRACTOR. It is understood by both CONTRACTOR and City that this Agreement shall not under any 6 C.\Documents and Settings\jgrider\Local Settings\Temp\MinuteTraq\sanbernardinocityca@ sanbernardinocityca.IQM2.com\Work\Attachments\5309.docx 2013-212 circumstance be construed or considered to create an employer-employee relationship or a joint venture as between the CONTRACTOR and the City. CONTRACTOR is and at all times during the Term of this Agreement shall represent and conduct itself as an independent CONTRACTOR and not as an employee of the City. CONTRACTOR shall be responsible to the City only for the requirements and results specified in this Agreement, and except as expressly provided in this Agreement, shall not be subject to control by the City with respect to the physical action or activities of CONTRACTOR in fulfillment of this Agreement. CONTRACTOR has control over the manner and means of performing the Services under this Agreement so long as consistent with the requirements of the Program. CONTRACTOR is permitted to provide services to others during the same period Services are provided to the City under this Agreement. If necessary, CONTRACTOR has the responsibility for employing other persons or firms to assist CONTRACTOR in fulfilling the terms and obligations under this Agreement. If in the performance of this Agreement any third persons are retained as subcontractors by CONTRACTOR, such persons shall be entirely and exclusively under the direction, supervision, and control of CONTRACTOR. All terms of employment including hours, wages, working conditions, discipline, hiring, and discharging or any other term of employment or requirements of law shall be determined by the CONTRACTOR. CONTRACTOR hereby agrees to indemnify, defend (if requested by City), and hold the City harmless from any and all claims that may be made against the City or based upon any contention by any employee of CONTRACTOR or by any third party that an employer-employee relationship exists between person and the City, by reason of the performance of any of the Services under this Agreement. Section 9. PAYMENT OF AND TRANSFER OF CITY FUNDS TO PROGRAM LOAN DISBURSEMENT ACCOUNT. The City shall promptly honor each request by the CONTRACTOR for the City to transfer City Funds to CONTRACTOR who will in turn deposit City Funds to the Program Loan Disbursement Account to fund each completed Program Loan as submitted by the CONTRACTOR under Section 3(5). Within ten (10) days following receipt of each request for remittance of City Funds, the City shall transfer by bank check to the CONTRACTOR such City Funds to use as provided herein. Section 10. COMMERCIAL GENERAL LIABILITY INSURANCE AND WORKMANS' COMPENSATION INSURANCE. (a) The CONTRACTOR shall obtain and keep in force during the term of this Agreement a commercial general liability policy of insurance with coverage at least as broad as "Insurance Services Office Commercial General Liability Form (G0001)", including but not limited to insurance against assumed contractual liability under this Agreement protecting the City, its officers, attorneys, employees and agents, as additional insureds against claims for bodily injury, personal injury and property loss or damage based upon, involving or arising out of the Services provided by the CONTRACTOR. Such insurance shall be on occurrence basis providing single limit coverage in an amount not less than One Million Dollars ($1,000,000) in the event of bodily injury, personal injury and property loss or damage to any number of persons per occurrence. All insurance to be carried by the CONTRACTOR shall be primary to and not contributing to any single insurance carried by the City whose insurance shall be considered excess insurance only. (b) To the extent required by the law, the CONTRACTOR shall carry and maintain workers' compensation or similar insurance in form and amounts required by law. 7 C:\Documents and Settings\jgrider\Local Settings\Temp\MinuteTraq\sanbernardinocityca@ sanbernardinocityca.IQM2.com\Work\Attachments\5309.docx 2013-212 (c) All insurance which the CONTRACTOR shall carry or maintain pursuant to this Section 10 shall be in such form, for such amounts, for such periods of time as the City may require or approve and shall be issued by an insurance company or companies authorized to do business in California and which maintains during the term of the policy a "General Policy Holder's Rating" of at least A (v), as set forth in the most current edition of "Best's Insurance Guide". In no circumstance will the CONTRACTOR be entitled to assign to any third party rights of action, which the CONTRACTOR may have against the City. All policies or endorsements issued by the respective insurers for commercial general liability insurance will name the City, its officers, attorneys, employees and agents, as additional insureds and provide that: (i) any loss shall be notwithstanding any act or failure to act or negligence of the CONTRACTOR or the City or any other person; (ii) no cancellation, reduction in amount, or material change in coverage thereof shall be effective until at least thirty (30) days after receipt by the City of written notice thereof; and (iii) the insurer shall have no right of subrogation against the City, its officers, agents, attorneys, or employees. (d) The CONTRACTOR shall deliver or cause to be delivered to the City concurrently upon the execution of this Agreement an endorsement of its commercial general liability insurance policy evidencing the existence of the insurance coverage required by the City and shall also deliver, no later than thirty (30) days prior to the expiration of any such policy, a certificate of insurance evidencing each renewal policy covering the same risks. Section 11. INDEMNIFICATION. CONTRACTOR shall indemnify (if requested by City), defend and hold harmless the City, its officers, attorneys, agents and employees, from and against any and all claims, loss, demands and liability for damages for personal injury or property damage suffered by reason of any act or omission of CONTRACTOR or CONTRACTOR'S employees, volunteers, agents or CONTRACTORS. City shall indemnify, defend (if requested by CONTRACTOR) and hold harmless the CONTRACTOR, its officers, and employees, from all claims, loss, demands and liability for damages for personal injury or property damage suffered by reason of any act or omission of the City or any of its officers or employees or agents, except where such action or omission giving rise to such a claim is caused by or is the result of an action, omission or request of CONTRACTOR or CONTRACTOR'S officers, or employees, or is alleged to arise out of the execution of this Agreement. The provisions of Section 11 shall survive the expiration or early termination of this Agreement. Section 12. DEFAULTS AND BREACH - GENERAL. Failure or delay by either party to perform any material term or provision of this Agreement shall constitute a default hereunder; provided however, that if the party who is otherwise claimed to be in default by the other party commences to cure, correct or remedy the alleged default within thirty (30) calendar days after receipt of written notice specifying such default and shall diligently complete such cure, correction or remedy, such party shall not be deemed to be in default hereunder. The party, which may claim that a default has occurred, shall give written notice of default to the party in default, specifying the alleged default. Delay in giving such notice shall not constitute a waiver of any default nor shall it change the time of default; provided, however, the injured party shall have no right to exercise any remedy for a default hereunder without delivering the written default notice as specified herein. Any failure to delay by a party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a 8 C\Documents and Settings\jgrider\Local Settings\Temp\MinuteTraq\sanbernardinocityca@ sanbernardinocityca.IQM2.com\Work\Attachments\5309.docx 2013-212 default, and the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. In the event that a default of either party may remain uncured for more than thirty (30) calendar days following written notice, as provided above, a "breach" shall be deemed to have occurred. In the event of a breach, the party who is not in default shall be entitled to terminate this Agreement and seek any appropriate remedy or damages by initiating legal proceedings. If any action or proceeding is brought to enforce the terms hereof or declare rights hereunder, it shall be brought in the Superior Court of the County of San Bernardino, San Bernardino District, State of California. The governing law to be applied in any such action or proceeding shall be the law of the State of California. The prevailing party in any such legal proceedings shall be entitled to recover as an element of its costs of bringing such suit, and not as part of its damages, its reasonable attorneys' fees and costs. The costs, salary and expenses of the City Attorney and members of his office in such action or proceeding on behalf of the City shall be considered as "attorneys' fees" for purposes of this Section. Section 13. NONDISCRIMINATION. During CONTRACTOR'S performance of the Services, CONTRACTOR shall not discriminate on the grounds of race, religious creed, color, national origin, age, ancestry, physical handicap, medical condition, marital status, sex, or sexual orientation in the selection and retention of employees and subcontractors and the procurement of materials and equipment, except as provided in Section 12940 of the California Government Code. Section 14. CONFLICT OF INTEREST. CONTRACTOR warrants, by execution of this Agreement, that it has no interest, present or contemplated, in any Program Loan or Beautification or Mobile Home Grant or any Home benefited thereby or Work performed on any Home using a Program Loan. CONTRACTOR further warrants that it owns or possesses no interest in real property, business interests or owner of income (other than such amounts of compensation payable by the City to CONTRACTOR for the Services under this Agreement) that will be affected by the Program or, alternatively, if such interest exists or arises the CONTRACTOR will promptly file with the City an affidavit disclosing any such interest. Section 15. AMENDMENTS. All amendments to this Agreement shall be subject to the approval of both parties in the sole discretion of each of them, mutual and in writing. The City Manager is authorized to make non-substantive changes, clarifications, corrections to the Agreement, including budget line item adjustments, provided such actions are approved by City Attorney and do not increase the City's monetary annual appropriation to the CONTRACTOR as approved by the Mayor and City Council. Section 16. TERMINATION. (a) This Agreement may be terminated for any reason by either party who is not then in default upon ten (10) days prior written notice to the other party. In such event, the CONTRACTOR shall be entitled to receive compensation for Services pro-rated through the date of such termination, provided that the Services have been rendered. (b) In the event of a termination of the Agreement as a result of a breach, the rights and duties of the parties shall be as set forth in Section 12. 9 C:\Documents and Settings\jgrider\Local Settings\Temp\MinuteTraq\sanbernardinocityca @sanbernardinocityca.IQM2.com\Work\Attachments\5309.docx 2013-212 (c) In the event of any termination of this Agreement, CONTRACTOR shall promptly return all Program Loan Disbursements to the City without charge or expense to the City. Section 17. ASSIGNMENT. It is mutually understood and agreed that this Agreement shall be binding upon the City and its successors and upon the CONTRACTOR and its successors. Neither this Agreement, nor any part thereof, nor monies due or to become due thereunder, may be assigned by the CONTRACTOR without the prior written consent and approval of the City. The City and the CONTRACTOR hereby agree to the full performance of the covenants contained herein. Section 18. NOTICES. Delivery of any notice, bill, invoice or report required by this Agreement shall be sufficient if sent by one party to the other in the United States mail, postage prepaid,to the address noted below: City Contractor City of San Bernardino Inland Housing Development Attention: City Manager Corporation, Inc., Inc. 300 North D Street, 6th Floor Attention: Executive Director San Bernardino, California 92418 4250 Brockton Avenue Riverside, California 92501 Phone: (951) 341-0170 Fax: (951) 341-0171 Section 19. REPRESENTATION AND WARRANTY OF CONTRACTOR. The CONTRACTOR hereby represents and warrants to the City as follows: (i) CONTRACTOR is a California nonprofit corporation duly organized, existing, and authorized to transact business in California; (ii) the corporate charter and by-laws of the CONTRACTOR authorize the CONTRACTOR to provide the Services to the City and the governing board and membership of CONTRACTOR have previously taken all action necessary to authorize the execution of this Agreement by the CONTRACTOR; (iii) the CONTRACTOR is qualified to perform the Services. Section 20. OTHER PROGRAM REQUIREMENTS. 1. CONTRACTOR must carry out all activities in compliance with all federal laws and regulations and outlined hereinafter, except that CONTRACTOR does not assume the City's responsibility for environmental review. 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 10 C\Documents and Settings\jgrider\Local Settings\Temp\MinuteTraq\sanbernardinocityca @sanbernardinocityca.IQM2.com\Work\Attachments\5309.docx 2013-212 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. Displacement, Relocation, and Acquisition. Consistent with the other goals and objectives of this Subpart H of 24 CFR 92, CONTRACTOR must ensure that it has taken all reasonable steps to minimize the displacement of persons (families and individuals) as a result of any project assisted with HOME funds. Moreover, CONTRACTOR agrees that it will not undertake any project activity that will cause displacement of any homeowner in accordance with Section 92.353, without the approval of the City. d. Conflict of Interest. CONTRACTOR will hereby comply with all requirements set forth regarding conflict of interest provisions as they apply in Section 92.356. e. Debarment and Suspension. As required in Section 92.357, CONTRACTOR will comply with all debarment and suspension certifications. f. Flood Insurance. Under the Flood Disaster Protection Act of 1973, HOME funds may not be used with respect to the acquisition or rehabilitation of a project located in an area identified by the Federal Emergency Management City (FEMA) as having special flood hazards, unless: 1. The community in which the area is situated is participating in the National Flood Insurance Program, or less than a year has passed since FEMA notification regarding such hazards; and 2. Flood insurance is obtained as a condition of approval of the commitment. If the unit is located in an area identified by FEMA as having special flood hazards, upon notification by the City or FEMA, CONTRACTOR is responsible for assuring that flood insurance under the National Flood Insurance Program is obtained and maintained on each unit assisted with Grant Funds. Section 21. PROGRAM LOANS AND PROGRAM LOAN DOCUMENTS ARE THE PROPERTY OF THE CITY. Each Program Loan is the property and asset of the City. The CONTRACTOR has no property interest in any such Program Loan and the CONTRACTOR shall not transfer, assign or pledge as collateral or claim any other security interest in any such Program Loan. All of the Program Loan Documents are the property of the City, and the CONTRACTOR shall maintain all such Program Loan Documents in its possession as confidential consumer business records of the Qualified Homeowner and the City and upon the 11 C\Documents and Settings\jgrider\Local Settings\Temp\MinuteTraq\sanbernardinocityca @sanbernardinocityca.IQM2.com\Work\Attachments\5309.docx 2013-212 conclusion of this Agreement, all such Program Loan Documents shall be delivered by the CONTRACTOR to the City. All City Funds deposited with the CONTRACTOR who will deposit said funds to the Program Loan Disbursement Account are the property of the City until paid by the CONTRACTOR for the account of a Qualified Homeowner under the applicable Program Loan Documents. Section 22. GENERAL. This Agreement constitutes the sole agreement between the parties. All prior conversations, agreements or representations relating hereto are integrated in this Agreement. No oral agreement, representation or warranty shall be binding upon the parties. /// /// HI HI IH HI HI /// 12 C:\Documents and Settings\jgrider\Local Settings\Temp\MinuteTraq\sanbernardinocityca@ sanbernardinocityca.IQM2.com\Work\Attachments\5309.docx 2013-212 CITY OF SAN BERNARDINO SINGLE FAMILY BEAUTIFICATION LOAN/GRANT PROGRAM IN WITNESS WHEREOF, the CONTRACTOR and the City have caused this Agreement to be duly executed on the dates indicated below next to the authorized officers of each of them. This Agreement may be executed in counterparts, but this Agreement shall have no force or effect unless it has been fully executed by the parties. CITY City of San Bernardino Date: By: Allen Parker, City Manager Approved as to Form: JAMES F. PENMAN, City Attorney By: 7- -,---- CONTRACTOR Riverside Housing Development Corporation, Inc., a California nonprofit corporation, dba Inland Housing Development Corp. Date: By: Title: Executive Director Date: By: Title: 13 C:\Documents and Settings\jgrider\Local Settings\Temp\MinuteTraq\sanbernardinocityca@ sanbernardinoci tyca.IQM2.connWork\Attachments\5309.docx 2013-212 EXHIBIT "1" SCOPE OF SERVICES (Description of Program) A. CONTRACTOR'S Administration Costs The City shall compensate CONTRACTOR the total sum of $100,000 for the administration and implementation of the Program herein and for services rendered under this Agreement. CONTRACTOR shall bill the City monthly in equal installments of$1,250.00 up to the maximum amount of compensation stated herein. B. Single Family Beautification Loan/Grant Program (the "Program") ($100,000) The CONTRACTOR shall conduct the Program in accordance with the following guidelines: Loan /Grant Program: On a case by case basis and only as approved and directed by the City Manager,to utilize the funds herein to provide Beautification Grants up to a maximum of $10,000 per property to Qualified Homeowners. (NOTE: Refer to Section 6(a) of this Agreement for specific Budget Line Items on how these funds are to be used). On a case-by-case basis, subject to extenuating circumstances, the amounts herein may be exceeded, provided CONTRACTOR has obtained approval by the City Manager, or his/her authorized designee. The improvements allowed under the Program are described in "D" below of this Scope of Services. C. Eligible Improvements Permitted under the Program The following types of improvements are permitted, but not limited to: Loan/Grant Program: Roof replacement; exterior painting including lead remediation; landscaping including automatic sprinklers, grass seed and planting materials in accordance with City Landscaping Guidelines; parkway enhancements such as stamped concrete, trees and landscape plantings; window replacement; driveway repairs or replacements; garage door replacement; wrought iron, vinyl, wood or block fencing. The Maximum Beautification Grant permitted under the Program is $10,000 per property. D. Applicant Eligibility Requirements for the Program 1. Qualified Homeowner must be an owner occupant for a minimum period of one (1) year; on a case-by-case basis, and depending on the circumstances, this requirement may be waived by the City Manager or designee; CONTRACTOR shall obtain evidence of ownership and length of residency. 2. Qualified Homeowner must complete a Program Application (see Exhibit "2" to the Agreement), and meet the applicable income criteria (see Exhibit "3"to the Agreement). 1 2013-212 3. All Qualified Homeowners must agree to attend a Maintenance Class conducted by CONTRACTOR; to sign and notarize a Maintenance Covenant and agree to live in their home for not less than one (1) year following recordation of the Maintenance Covenant. E. Guidelines: The CONTRACTOR shall conduct the Program in accordance with the following guidelines: 1. CONTRACTOR shall administer and implement the Program herein and shall utilize the applicable and pertinent sections of the City's Rehabilitation Loan and Grant Policies and Procedures Manual for guidance on processing and packaging all loans and grants under this Agreement, if applicable under the direction of the City Manager. 2. The CONTRACTOR shall process Program Applications on a first-come, first-served basis. However, in case of emergency, or life threatening situation, the CONTRACTOR may process an application on an urgent basis subject to approval by the City Manager. 3. The CONTRACTOR shall inspect eligible properties to determine the type of health and safety and code violation repair work needed, including asbestos and lead based paint removal, the age and overall condition of the unit and to ensure that all units rehabilitated or improved under the Program when completed are aesthetically pleasing and in compliance with local, state and federal ordinances and laws. 4. The CONTRACTOR shall prepare and complete work write-ups, cost estimates, and bid packages for the improvements for each property. 5. The CONTRACTOR shall ensure that all work performed on the Qualified Homeowner's home is performed by pre-qualified State licensed contractors. The CONTRACTOR shall also require that any contractor performing work under the Program possess a current business license in the City of San Bernardino and has a current license with the State of California contractor's License Board. The CONTRACTOR shall be required, whenever feasible, to obtain a minimum of three (3) bids for all work performed. All work performed by contractors shall be approved and authorized by the Qualified Homeowner, and shall be completed within a specified timeframe acceptable to Qualified Homeowner and contractors. 6. The CONTRACTOR shall solicit bids for the rehabilitation work from a list of pre-approved general contractors and assisting Qualified Homeowners with the selection of a contractor, and the execution of the contract between owner and contractor, including the Scope of Work and Schedule of Performance; schedule and conduct pre-construction and walk-through conferences, etc. 7. The CONTRACTOR shall inspect and monitor the rehabilitation work while in progress and supervise the payment invoice procedures to ensure that all contractors and subcontractors are meeting obligations and that progress payments and retentions are paid in a timely manner. 8. The CONTRACTOR shall coordinate final inspection and payment of the contract retention with the Qualified Homeowner and contractor. 2013-212 9. The CONTRACTOR shall maintain accurate records for inspection by the City concerning income and program occupancy of all persons obtaining assistances from the CONTRACTOR pursuant to this Agreement including, but not limited to, application, proof of ownership, income verification, comparables or appraisals, work write-ups, contracts, promissory notes, deeds of trust, etc. The original promissory note and deed of trust shall be for the benefit of the City and shall be transmitted to City upon request for each loan. 10. The CONTRACTOR shall also provide quarterly reports to the City, or as necessary, upon the request of the City Manager. From time to time, the City and CONTRACTOR shall coordinate inspection site visits to ensure that the work being performed on a Qualified Homeowner's home is being performed in a good workmanlike manner and in accordance with applicable codes (UBC, UPC, UMC, NEC and Health and Safety) and City Ordinances. 11. The CONTRACTOR shall provide any and all services required by the City Manager or designee, in order to effectively implement and complete the Services under this Agreement. /// /// /// /// /// /// /// /// HI HI /// IH 11/ 3 2013-912 EXHIBIT 2 For Office Use ONLY Application Mailed out on: City of San Bernardino-Inland Housing Development Corporation (IHDC) Single Family Beautification Grant Program Application Applicant's Name(Last, First, MI) Applicant's Date of Birth Applicant's Spouse's Name or Co-Applicant Co-Applicant's Date of Birth Street Address Applicant's Phone Number (Office Use Only) City/Zip Map Verification Date: Initials: DO YOU HAVE ANY NOTICE OF VIOLATION WITH THE CITY OF SAN BERNARDINO CODE ENFORCEMENT OR ANY OTHER CITY AGENCIES YES IF YES,PROVIDE COPY. NO Years lived in residence: List all persons living in residence other than you: Name Relationship Age Employed Yes No Any income must be shown in income section.Must show proof of income to qualify. Written verification must be forwarded with application. MONTHLY HOUSEHOLD GROSS INCOME AFDC $ Social Security $ SSI/SSP $ Disability $ Employment $ Food Stamps $ Unemployment Ins $ Pension/Retire $ Alimony $ Child Support . $ Other/Real Prop. $ Total Monthly Income: $ Total Annual Income $ 2013 Income Level (Subject Number of Persons Per Household to annual change) 1 2 3 4 5 6 7 8 Household Annual Income May Not Exceed: 80% Median Income 35,700 40,800 45,900 50,950 55,050 59,150 63,200 67,300 Ethnicity: (Please check all that apply) Optional ❑ Sr. Citizen(s)-60 or older ❑ Female Head of Household E. Disabled One or More ❑ Hispanic ❑ Asian/Pacific ❑ American Indian ❑ Black ❑ White,Non-Hispanic ❑ Other I certify under penalty of perjury that the information provided above is correct to the best of my knowledge. I understand that the inclusion of any willful misrepresentation on this form constitutes ground for rejection of this application and recapture of any financial benefit I may have received. I authorize the Riverside Housing Development Corporation dba Inland Housing Development Corporation (the "IHDC") and/or the City of San Bernardino to examine and to verify any and all information provided in this application. Date: Signature Date: P:\Agendas\Agenda Attachments\Exhibits\2010/7.19.10 IHDC Beautification Grant Program Application 2013-919 EXHIBIT 3 YEAR 2013 INCOME LIMITS RIVERSIDE & SAN BERNARDINO COUNTIES HOUSEHOLD 30% 50% 60% 80% SIZE MEDIAN MEDIAN MEDIAN MEDIAN INCOME INCOME INCOME INCOME FAMILY Extremely Very 60% Low SIZE Low Low Median 1 $13,400 $22,300 $26,760 $35,700 2 $15,300 $25,500 $30,600 $40,800 3 $17,200 $28,700 $34,440 $45,900 4 $19,100 $31,850 $38,220 $50,950 5 $20,650 $34,400 $41,280 $55,050 6 $22,200 $36,950 $44,340 $59,150 7 $23,700 $39,500 $47,400 $63,200 8 $25,250 $42,050 $50,460 $67,300 2013-212 EXHIBIT A CITY OF SAN BERNARDINO SINGLE FAMILY BEAUTIFICATION LOAN/GRANT PROGRAM THIS AGREEMENT FOR THE SINGLE FAMILY BEAUTIFICATION LOAN/ GRANT PROGRAM is made and entered into this t 5 th day of July 2013, by and between the RIVERSIDE HOUSING DEVELOPMENT CORPORATION, INC., dba INLAND HOUSING DEVELOPMENT CORPORATION, INC., SERVICES OF THE INLAND EMPIRE, INC., a California non-profit corporation (the "CONTRACTOR") and THE CITY OF SAN BERNARDINO, a municipal corporation (the "City") and is related to the facts set forth in the following RECITALS: 1. The City has established a housing improvement program known as the "Single Family Beautification Loan/Grant Program" (the "Program"). 2. The purpose of the Program is to provide low-moderate-income homeowners (the "Qualified Homeowners") who reside in the City of San Bernardino (the "City"), with a special source of loan and grant funds of up to ten thousand ($10,000) to undertake certain housing rehabilitation and correction work (including asbestos and lead containing materials abatement work, handicap accessibility improvements, building code deficiency corrections and certain exterior landscape and structural beautification improvements of owner-occupied single family residential dwelling units. 3. The Program promotes and expands the supply of affordable housing in the City and fosters the elimination and prevention of blight. 4. In order to administer and operate the Program the City desires to extend to the CONTRACTOR Agreement for three (3) years, subject to annual funding availability and the City hereby allocates the total sum of One Hundred Thousand Dollars ($100,000) for the Single Family Beautification Loan/Grant Program to be funded from the City's Community Development Block Grant Funds (CDBG) Program Citywide. NOW, THEREFORE, IT IS MUTUALLY AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS: Section 1. DEFINITIONS OF CERTAIN TERMS. In addition to the words and phrases, which are defined in the Recitals of this Agreement, the following words and terms shall have the meaning set forth below: • "Program Boundaries" means and refers to specific neighborhoods or areas in the City, which the City has instructed CONTRACTOR to offer the Programs to Qualified Homeowners and also on a Citywide basis. During the term of this Agreement and until receipt of further instruction by CONTRACTOR from the City 1 C:\Documents and Settings\jgider\Local Settings\Temp\MinuteTraq\sanbernardinocityca@ sanbernardinocityca IQM2.com\Work`,Attachments\5309 docx 2013-212 Manager, or authorized representatives, all Program Loans and Grants shall be originated for Qualified Homeowners who reside in the City. • "City Manager" means and refers to the City Manager of the City and his or her authorized representatives. • "Home" means and refers to the land and the single family dwelling unit in which the Qualified Homeowner resides as its principal residence. • "Program Loan" means and refers to each single family home improvement loan/grant of up to $10,000 transaction by and between a Qualified Homeowner and the City under the Program, to be originated and serviced by the CONTRACTOR as set forth in this Agreement. Each Program Loan may include a component, which is repayable as a loan by the Qualified Homeowner to the City for the structural interior rehabilitation improvements to the Home, and a component, which is a grant for the eligible exterior aesthetic amenities and landscape improvements, if any. For the purposes hereof, in a particular instance, a Program Loan to a Qualified Homeowner may thus include both a loan and grant component under the Program, or a loan and/or beautification grant component only, depending on the specific Home and the Qualified Homeowner's needs. The terms and conditions of each Program Loan are described in the Scope of Services attached hereto as Exhibit "1" Each Program Loan shall be evidenced by the Program Loan Documents. • "Program Loan Applicant" means and refers to the written application for a Program Loan, which has been signed by the Qualified Homeowner and verified by the CONTRACTOR to be complete. • "Program Beautification Loan/Grant Application" means and refers to a completed written application for a Program Loan or Grant, which has been executed by a Qualified Homeowner. Each Program Beautification Loan/Grant Application shall contain the information relating to the Qualified Homeowner and the proposed use of the Program Loan or Grant proceeds by the Qualified Homeowner together with a current preliminary title report or other proof of title acceptable to the City for the Home. The CONTRACTOR shall require all Qualified Homeowners to complete the application for the Program similar to the application attached hereto and incorporated by reference as Exhibit"2." • "Program Loan Disbursement Account" means and refers to the custodial deposit account, which the CONTRACTOR shall establish with an FDIC-insured depository institution for the receipt and disbursement of all City Fund proceeds under a Program Loan. Such deposit account agreement among the CONTRACTOR, the City and such depository institution shall be in a form and substance as reasonably satisfactory to the City. No other funds of the CONTRACTOR shall be deposited or co-mingled in the Program Loan Disbursement Account. The CONTRACTOR shall serve as the trustee of the City in the administration of all City Funds or deposit in the Program Loan Disbursement Account, including any interest as may accrue thereon. 2 C\Documents and Settings\jgrider\Local Settings\Temp\MinuteTraq\sanbernardinocitycaCsanbernardinocityca.IQM2.com\Work\Attachments\5309.docx 2013-212 • "Program Loan Documents" means and refers collectively to each of the following documents executed by the Qualified Homeowner: (i) the Program Loan Application; (ii) the Program Loan Agreement and the customary consumer loan term disclosure documentation; (iii) the promissory note of the Qualified Homeowner payable to the City and dated as of the date of initial disbursement of City Funds for the account of the Qualified Homeowner to the Program Loan Disbursement Account; (iv) the deed of trust on the Home which secures the repayment of the promissory note to the City; and (v) a policy of title insurance in favor of the City as lender insuring its security interest in the deed of trust. The general form of Program Loan Documents (ii), (iii), and (iv) which shall be completed and used in each Program Loan transaction are on file with the City and CONTRACTOR. • "Qualified Homeowner" means and refers to (1) a person or household which owns and occupies a single family resident dwelling unit (a "Home") as its principal residence within the City for at least twelve (12) continuous months preceding the date of submission of its Beautification Loan/Grant Program or Mobile Home Program Grant Application to the CONTRACTOR; (2) has a personal or household income level, adjusted for family size, during the twelve (12) months preceding the date of submission of its Program Loan and Beautification Grant Application to the City within the ranges of income for low- and moderate-income households, adjusted for family size, as set forth in Exhibit"3." • Community Development Block Grant ("CDBG PROGRAM") as set forth at 24 Code of Federal Regulations, part 570, et. Seq., which will be used by the City to fund this Agreement, specifically, $100,000 annually for the Single Family Beautification Grant Program (the "City Loan and Grant Program"), to be offered by the CONTRACTOR to Qualified Homeowners who earn less than 80% of the current annual, median income for the San Bernardino County area, adjusted for family size as published by the U.S. Department of Housing and Urban Development (HUD) as further illustrated in Exhibit "3" of this Agreement ("2013 Income Limits") and are subject to annual adjustments. • "Services" means and refers to the Program Loan origination, City Fund disbursement control and related accounting and Work monitor (course of construction builder contract) services to be provided by the CONTRACTOR to the City. The various elements of the Services are more fully set forth in the "Scope of Services" attached hereto as Exhibit"1." • "Work" means and refers to the single family housing improvement and beautification or mobile home work to be performed by a state-licensed general CONTRACTOR on each Home pursuant to the terms of a written agreement by and between the Qualified Homeowner and such general CONTRACTOR. Only the items of Work set forth in such a contract shall be authorized for payment by the CONTRACTOR, up to the maximum amount authorized under the terms of the 3 C:\Documents and Settings\jgrider\Local Settings\Temp\MinuteTraq\sanbernardinocityca n sanbernardinocnyca.IQM2.com\Work\Attachments\5309.docx 2013-212 Program Loan for such Work. Any costs of Work in excess of the maximum amount of the Program Loan (which are not the fault of such general CONTRACTOR) shall be paid for by the Qualified Homeowner unless approved in writing by the City Manager or authorized designee. Section 2. SERVICES OF CONTRACTOR. The City agrees to contract with the CONTRACTOR to perform the Services and the CONTRACTOR hereby agrees to accept such contract and to perform the Services as set forth herein. Section 3. SCOPE OF SERVICES. CONTRACTOR agrees to provide the Services to the City as set forth herein and as described in the Scope of Services attached as Exhibit "1" for the Program. Promptly following the date of approval of this Agreement by the governing board of the City the CONTRACTOR shall or will continue to: (1) cause the Program Loan Disbursement Account to be established, or maintained, and the general form of an FDIC - insured deposit account agreement acceptable to the City to be fully executed by the CONTRACTOR, the depository institution and the City within thirty(30) days following the date of approval of this Agreement; (2) continue to use the general form of a Program Beautification Loan/Grant Application for general use in connection with the Services and the origination of Program Beautification Loan/Grant as previously provided by the City. The CONTRACTOR shall designate a title insurance company acceptable to the City, which shall coordinate the issuance of a lender's policy of title insurance in favor of the City at the time of recordation of the deed of trust under each Program Loan; (3) subject to the completion of the tasks described in paragraphs (1) and (2) above, continue the process of receiving and reviewing Program Loan Applications and provide the Services in accordance with the Scope of Services; (4) transmit a copy of a completed set of Program Loan Documents, together with a recommendation of the CONTRACTOR to fund such Program Loan and a request for a transfer of City Funds for the account of the Qualified Homeowner, to the City Manager for authorization for funding. The City Manager shall either authorize the funding of such Program Loan or reject the request for funding on behalf of the City within ten (10) days of receipt from the CONTRACTOR. Any rejection of a Program Beautification Loan/Grant, Application shall be in writing and state the reasons for such action. Each acceptance of a Program Beautification Loan/Grant, Grant Application by the City shall be evidenced by the signature of the City Manager of the Program Loan Documents. All Program Loan Documents for each Program Loan shall be completed by the Qualified Homeowner and the CONTRACTOR, and the disbursement of City Funds on each Program Loan shall occur within sixty (60) days following the date of submission of the funding request to the City Manager, or the Program Loan Agreement shall be of no further force or effect; (5) no fees, charges or expenses shall be payable by any applicant for a Program Loan to the CONTRACTOR, except from City Funds, nor shall the CONTRACTOR charge a Qualified Homeowner for any cost or service in connection with the origination or 4 C.\Documents and Settings\jgrider\Local Settings\Temp\MinuteTraq\sanbernardinocityca @sanbernardinocityca.lQM2.corn\Work\Attachments\5309.docx • 2013-212 subsequent administration of a Program Loan during the time Work is performed at the Home, except for the Maintenance Class fee; or as authorized under the Program by the City Manager; (6) instruct the City Manager to transfer City Funds for the account of each Qualified Homeowner to the Program Loan Disbursement Account as set forth in subparagraph (5), above, upon confirmation by the CONTRACTOR that Program Loan Documents for the Program Loan are complete and that the deed of trust is ready for recordation. The CONTRACTOR shall coordinate the issuance of the policy of title insurance in favor of the City by the title insurance copy with the recordation of the deed of trust;(7) deliver a fully executed original set of Program Loan Documents for each Program Loan (except for the original deed of trust) to the City upon request of funding and transfer of City Funds for the account of the Qualified Homeowner to the Program Loan Disbursement Account; (7) verify that no City Funds are disbursed from the Program Loan Disbursement Account for the account of a Qualified Homeowner except: (i) to pay a state-licensed general CONTRACTOR for Work performed at the Home pursuant to a written agreement between such CONTRACTOR and the Qualified Homeowner (less a 10% retention pending completion of the Work and final release of all mechanics and materials liens); and no disbursement of City Funds from the Program Loan Disbursement Account shall be authorized for any building materials or equipment items which are not physically delivered at the Home before the date of payment of such City Funds to the general CONTRACTOR; or (ii) to pay a Program Loan title fee or cost amount expressly authorized in writing by the City Manager; (8) prepare and maintain an City Funds disbursement ledger for all payments authorized and made by the CONTRACTOR to general CONTRACTORS for the account and debit to each Qualified Homeowner under each Program Loan. Such ledger shall show each payment by date and reference the particular Program Loan to which it corresponds. Such ledger shall also include a monthly starting and ending balance for the Program Loan Disbursement Account, a final reconciliation of the adjusted balance of each Program Loan upon the completion of the Work, and such other accounting information as City Manager may request. A copy of such ledger shall be submitted to the City Manager each month with the first such monthly submittal due on the first day of the next month following the date of the initial deposit of City Funds into the Program Loan Disbursement Account. (9) No Work shall be authorized for payment by the CONTRACTOR unless the Program Loan Documents are complete and the CONTRACTOR has received a fully executed copy of the contract by and between the general CONTRACTOR and the Qualified Homeowner. Once the Work has commenced on a particular Home, neither the Qualified Homeowner nor the general CONTRACTOR shall authorize an amendment or modification of such contract to include any item of Work, which is not eligible for payment using City Funds under the terms and conditions of the Program and the Program Loan. Each such contract by and between the general CONTRACTOR and the Qualified Homeowner shall include a section, which recites the words of the first two (2) sentences of this paragraph (9). 5 C:\Documents and Settings\jgrider\Local Settings\Temp\MinuteTraq\sanbernardinocityca @sanbernardinocityca IQM2.com\Work\Attachments\5309.docx 2013-212 Section 4. TIME OF PERFORMANCE OF SERVICES. The Services to be performed hereunder by the CONTRACTOR shall be undertaken and completed in such sequence as to assure expeditious completion and best carry out the purposes of the Program and this Agreement. All Services required hereunder shall begin upon the execution of this Agreement. Section 5. TERM OF AGREEMENT. This Agreement shall take effect upon approval by the Mayor and Common Council and the complete execution by the parties. The Agreement shall remain in effect through June 30, 2016. Section 6. COMPENSATION PAYABLE BY CITY TO CONTRACTOR. (a) The City shall compensate CONTRACTOR for the performance of the Services using City funds in accordance with the following schedule: $15,000 Annual Program Administration Contractor $85,000 Single Family Beautification Program (CDBG Fund) $100,000 TOTAL (b) Program Administration sums payable by the City to the CONTRACTOR as compensation for Services shall be paid by the City directly to the CONTRACTOR, receipt by City of a corrected invoice and the Grant Funds Disbursement Ledger (the "Grant Funds Disbursement Ledger") which shows all Grant Fund payments authorized by City and disbursed by the Contractor to the General Contractors and/or to the subcontractors under this Agreement for which the Contractor has not been paid by City. City shall pay to the Contractor the correct amount identified on the invoice within thirty (30) calendar days after the receipt by City. The Program Administration Fee under this Agreement and shall not exceed Fifteen Thousand Dollars ($15,000) in the aggregate, for any given year, payable in twelve (12) equal monthly installments of$1,250.00 during the Term of this Agreement. (c) Payment for Services will be made by the City as of the first day of each calendar month with the first such payment due on the first day of the next calendar month following the date of the complete execution of the Agreement by the parties. Section 7. PERSONNEL OF CONTRACTOR. CONTRACTOR represents that it has, or will secure at its own expense, all personnel required to perform the Services. All of the Services required hereunder will be performed by persons who are either employed by or under the supervision and control of the CONTRACTOR, and all personnel engaged in the Services shall be fully qualified to perform such Services. Section 8. INDEPENDENT CONTRACTOR. All acts of CONTRACTOR and all others acting on behalf of CONTRACTOR relating to the performance of this Agreement, shall be performed as independent CONTRACTORS and not as agents, officers, or employees of City. CONTRACTOR has no authority to bind or incur any obligation on behalf of City. CONTRACTOR has no authority or responsibility to exercise any right or power vested in the City. No agent, officer, or employee of the City shall be considered an employee of CONTRACTOR. It is understood by both CONTRACTOR and City that this Agreement shall not under any 6 C:\Documents and Settings\jgrider\Local Settings\Temp\MinuteTraq\sanbernardinocityca@ sanbernardinocityca.IQM2.com\Work\Attachments\5309.docx 2013-212 circumstance be construed or considered to create an employer-employee relationship or a joint venture as between the CONTRACTOR and the City. CONTRACTOR is and at all times during the Term of this Agreement shall represent and conduct itself as an independent CONTRACTOR and not as an employee of the City. CONTRACTOR shall be responsible to the City only for the requirements and results specified in this Agreement, and except as expressly provided in this Agreement, shall not be subject to control by the City with respect to the physical action or activities of CONTRACTOR in fulfillment of this Agreement. CONTRACTOR has control over the manner and means of performing the Services under this Agreement so long as consistent with the requirements of the Program. CONTRACTOR is permitted to provide services to others during the same period Services are provided to the City under this Agreement. If necessary, CONTRACTOR has the responsibility for employing other persons or firms to assist CONTRACTOR in fulfilling the terms and obligations under this Agreement. If in the performance of this Agreement any third persons are retained as subcontractors by CONTRACTOR, such persons shall be entirely and exclusively under the direction, supervision, and control of CONTRACTOR. All terms of employment including hours, wages, working conditions, discipline, hiring, and discharging or any other term of employment or requirements of law shall be determined by the CONTRACTOR. CONTRACTOR hereby agrees to indemnify, defend (if requested by City), and hold the City harmless from any and all claims that may be made against the City or based upon any contention by any employee of CONTRACTOR or by any third party that an employer-employee relationship exists between person and the City, by reason of the performance of any of the Services under this Agreement. Section 9. PAYMENT OF AND TRANSFER OF CITY FUNDS TO PROGRAM LOAN DISBURSEMENT ACCOUNT. The City shall promptly honor each request by the CONTRACTOR for the City to transfer City Funds to CONTRACTOR who will in turn deposit City Funds to the Program Loan Disbursement Account to fund each completed Program Loan as submitted by the CONTRACTOR under Section 3(5). Within ten (10) days following receipt of each request for remittance of City Funds, the City shall transfer by bank check to the CONTRACTOR such City Funds to use as provided herein. Section 10. COMMERCIAL GENERAL LIABILITY INSURANCE AND WORKMANS' COMPENSATION INSURANCE. (a) The CONTRACTOR shall obtain and keep in force during the term of this Agreement a commercial general liability policy of insurance with coverage at least as broad as "Insurance Services Office Commercial General Liability Form (G0001)", including but not limited to insurance against assumed contractual liability under this Agreement protecting the City, its officers, attorneys, employees and agents, as additional insureds against claims for bodily injury, personal injury and property loss or damage based upon, involving or arising out of the Services provided by the CONTRACTOR. Such insurance shall be on occurrence basis providing single limit coverage in an amount not less than One Million Dollars ($1,000,000) in the event of bodily injury, personal injury and property loss or damage to any number of persons per occurrence. All insurance to be carried by the CONTRACTOR shall be primary to and not contributing to any single insurance carried by the City whose insurance shall be considered excess insurance only. (b) To the extent required by the law, the CONTRACTOR shall carry and maintain workers' compensation or similar insurance in form and amounts required by law. 7 C:\Documents and Settings\jgrider\Local Settings\Temp\MinuteTraq\sanbernardinocityca @sanbernardinocityca.IQM2.corn\Work\Attachments\5309.docx 2013-212 (c) All insurance which the CONTRACTOR shall carry or maintain pursuant to this Section 10 shall be in such form, for such amounts, for such periods of time as the City may require or approve and shall be issued by an insurance company or companies authorized to do business in California and which maintains during the term of the policy a"General Policy Holder's Rating" of at least A (v), as set forth in the most current edition of "Best's Insurance Guide". In no circumstance will the CONTRACTOR be entitled to assign to any third party rights of action, which the CONTRACTOR may have against the City. All policies or endorsements issued by the respective insurers for commercial general liability insurance will name the City, its officers, attorneys, employees and agents, as additional insureds and provide that: (i) any loss shall be notwithstanding any act or failure to act or negligence of the CONTRACTOR or the City or any other person; (ii) no cancellation, reduction in amount, or material change in coverage thereof shall be effective until at least thirty (30) days after receipt by the City of written notice thereof; and (iii) the insurer shall have no right of subrogation against the City, its officers, agents, attorneys, or employees. (d) The CONTRACTOR shall deliver or cause to be delivered to the City concurrently upon the execution of this Agreement an endorsement of its commercial general liability insurance policy evidencing the existence of the insurance coverage required by the City and shall also deliver, no later than thirty (30) days prior to the expiration of any such policy, a certificate of insurance evidencing each renewal policy covering the same risks. Section 11. INDEMNIFICATION. CONTRACTOR shall indemnify (if requested by City), defend and hold harmless the City, its officers, attorneys, agents and employees, from and against any and all claims, loss, demands and liability for damages for personal injury or property damage suffered by reason of any act or omission of CONTRACTOR or CONTRACTOR'S employees, volunteers, agents or CONTRACTORS. City shall indemnify, defend (if requested by CONTRACTOR) and hold harmless the CONTRACTOR, its officers, and employees, from all claims, loss, demands and liability for damages for personal injury or property damage suffered by reason of any act or omission of the City or any of its officers or employees or agents, except where such action or omission giving rise to such a claim is caused by or is the result of an action, omission or request of CONTRACTOR or CONTRACTOR'S officers, or employees, or is alleged to arise out of the execution of this Agreement. The provisions of Section 11 shall survive the expiration or early termination of this Agreement. Section 12. DEFAULTS AND BREACH - GENERAL. Failure or delay by either party to perform any material term or provision of this Agreement shall constitute a default hereunder; provided however, that if the party who is otherwise claimed to be in default by the other party commences to cure, correct or remedy the alleged default within thirty (30) calendar days after receipt of written notice specifying such default and shall diligently complete such cure, correction or remedy, such party shall not be deemed to be in default hereunder. The party, which may claim that a default has occurred, shall give written notice of default to the party in default, specifying the alleged default. Delay in giving such notice shall not constitute a waiver of any default nor shall it change the time of default; provided, however, the injured party shall have no right to exercise any remedy for a default hereunder without delivering the written default notice as specified herein. Any failure to delay by a party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a 8 C.\Documents and Settings\jgrider\Local Settings\Temp\MinuteTraq\sanbernardinocityca rJsanbernardinocityca.IQM2.com\Work\Attachments\5309.docx • 2013-212 default, and the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. In the event that a default of either party may remain uncured for more than thirty (30) calendar days following written notice, as provided above, a "breach" shall be deemed to have occurred. In the event of a breach, the party who is not in default shall be entitled to terminate this Agreement and seek any appropriate remedy or damages by initiating legal proceedings. If any action or proceeding is brought to enforce the terms hereof or declare rights hereunder, it shall be brought in the Superior Court of the County of San Bernardino, San Bernardino District, State of California. The governing law to be applied in any such action or proceeding shall be the law of the State of California. The prevailing party in any such legal proceedings shall be entitled to recover as an element of its costs of bringing such suit, and not as part of its damages, its reasonable attorneys' fees and costs. The costs, salary and expenses of the City Attorney and members of his office in such action or proceeding on behalf of the City shall be considered as "attorneys' fees" for purposes of this Section. Section 13. NONDISCRIMINATION. During CONTRACTOR'S performance of the Services, CONTRACTOR shall not discriminate on the grounds of race, religious creed, color, national origin, age, ancestry, physical handicap, medical condition, marital status, sex, or sexual orientation in the selection and retention of employees and subcontractors and the procurement of materials and equipment, except as provided in Section 12940 of the California Government Code. Section 14. CONFLICT OF INTEREST. CONTRACTOR warrants, by execution of this Agreement, that it has no interest, present or contemplated, in any Program Loan or Beautification or Mobile Home Grant or any Home benefited thereby or Work performed on any Home using a Program Loan. CONTRACTOR further warrants that it owns or possesses no interest in real property, business interests or owner of income (other than such amounts of compensation payable by the City to CONTRACTOR for the Services under this Agreement) that will be affected by the Program or, alternatively, if such interest exists or arises the CONTRACTOR will promptly file with the City an affidavit disclosing any such interest. Section 15. AMENDMENTS. All amendments to this Agreement shall be subject to the approval of both parties in the sole discretion of each of them, mutual and in writing. The City Manager is authorized to make non-substantive changes, clarifications, corrections to the Agreement, including budget line item adjustments, provided such actions are approved by City Attorney and do not increase the City's monetary annual appropriation to the CONTRACTOR as approved by the Mayor and City Council. Section 16. TERMINATION. (a) This Agreement may be terminated for any reason by either party who is not then in default upon ten (10) days prior written notice to the other party. In such event, the CONTRACTOR shall be entitled to receive compensation for Services pro-rated through the date of such termination, provided that the Services have been rendered. (b) In the event of a termination of the Agreement as a result of a breach, the rights and duties of the parties shall be as set forth in Section 12. 9 C:\Documents and Settings\jgrider\Local Settings\Temp\MinuteTraq\sanbernardinocityca a sanbernardinocityca.IQM2.com\Work\Attachments\5309.docx 2013-212 (c) In the event of any termination of this Agreement, CONTRACTOR shall promptly return all Program Loan Disbursements to the City without charge or expense to the City. Section 17. ASSIGNMENT. It is mutually understood and agreed that this Agreement shall be binding upon the City and its successors and upon the CONTRACTOR and its successors. Neither this Agreement, nor any part thereof, nor monies due or to become due thereunder, may be assigned by the CONTRACTOR without the prior written consent and approval of the City. The City and the CONTRACTOR hereby agree to the full performance of the covenants contained herein. Section 18. NOTICES. Delivery of any notice, bill, invoice or report required by this Agreement shall be sufficient if sent by one party to the other in the United States mail, postage prepaid,to the address noted below: City Contractor City of San Bernardino Inland Housing Development Attention: City Manager Corporation, Inc., Inc. 300 North D Street, 6th Floor Attention: Executive Director San Bernardino, California 92418 4250 Brockton Avenue Riverside, California 92501 Phone: (951) 341-0170 Fax: (951) 341-0171 Section 19. REPRESENTATION AND WARRANTY OF CONTRACTOR. The CONTRACTOR hereby represents and warrants to the City as follows: (i) CONTRACTOR is a California nonprofit corporation duly organized, existing, and authorized to transact business in California; (ii) the corporate charter and by-laws of the CONTRACTOR authorize the CONTRACTOR to provide the Services to the City and the governing board and membership of CONTRACTOR have previously taken all action necessary to authorize the execution of this Agreement by the CONTRACTOR; (iii) the CONTRACTOR is qualified to perform the Services. Section 20. OTHER PROGRAM REQUIREMENTS. 1. CONTRACTOR must carry out all activities in compliance with all federal laws and regulations and outlined hereinafter, except that CONTRACTOR does not assume the City's responsibility for environmental review. 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 10 C:\Documents and Settings\jgrider\Local Settings\Temp\MinuteTraq\sanbernardinocityca@ sanbernardinocityca.IQM2.com\Work\Attachments\5309.docx 2013-212 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. Displacement, Relocation, and Acquisition. Consistent with the other goals and objectives of this Subpart H of 24 CFR 92, CONTRACTOR must ensure that it has taken all reasonable steps to minimize the displacement of persons (families and individuals) as a result of any project assisted with HOME funds. Moreover, CONTRACTOR agrees that it will not undertake any project activity that will cause displacement of any homeowner in accordance with Section 92.353, without the approval of the City. d. Conflict of Interest. CONTRACTOR will hereby comply with all requirements set forth regarding conflict of interest provisions as they apply in Section 92.356. e. Debarment and Suspension. As required in Section 92.357, CONTRACTOR will comply with all debarment and suspension certifications. f. Flood Insurance. Under the Flood Disaster Protection Act of 1973, HOME funds may not be used with respect to the acquisition or rehabilitation of a project located in an area identified by the Federal Emergency Management City (FEMA) as having special flood hazards, unless: 1. The community in which the area is situated is participating in the National Flood Insurance Program, or less than a year has passed since FEMA notification regarding such hazards; and 2. Flood insurance is obtained as a condition of approval of the commitment. If the unit is located in an area identified by FEMA as having special flood hazards, upon notification by the City or FEMA, CONTRACTOR is responsible for assuring that flood insurance under the National Flood Insurance Program is obtained and maintained on each unit assisted with Grant Funds. Section 21. PROGRAM LOANS AND PROGRAM LOAN DOCUMENTS ARE THE PROPERTY OF THE CITY. Each Program Loan is the property and asset of the City. The CONTRACTOR has no property interest in any such Program Loan and the CONTRACTOR shall not transfer, assign or pledge as collateral or claim any other security interest in any such Program Loan. All of the Program Loan Documents are the property of the City, and the CONTRACTOR shall maintain all such Program Loan Documents in its possession as confidential consumer business records of the Qualified Homeowner and the City and upon the 11 C:\Documents and Settings\jgrider\Local Settings\Temp\MinuteTraq\sanbernardinoci tyca @sanbernardinocityca.IQM2.com\Work\Attachments\5309.docx 2013-212 conclusion of this Agreement, all such Program Loan Documents shall be delivered by the CONTRACTOR to the City. All City Funds deposited with the CONTRACTOR who will deposit said funds to the Program Loan Disbursement Account are the property of the City until paid by the CONTRACTOR for the account of a Qualified Homeowner under the applicable Program Loan Documents. Section 22. GENERAL. This Agreement constitutes the sole agreement between the parties. All prior conversations, agreements or representations relating hereto are integrated in this Agreement. No oral agreement, representation or warranty shall be binding upon the parties. HI HI HI HI 12 C:\Documents and Settings\jgrider\Local Settings\Temp\MinuteTraq\sanbernardinocityca@ sanbernardinocityca.IQM2.com\Work\Attachments\5309.docx 2013-212 CITY OF SAN BERNARDINO SINGLE FAMILY BEAUTIFICATION LOAN/GRANT PROGRAM IN WITNESS WHEREOF, the CONTRACTOR and the City have caused this Agreement to be duly executed on the dates indicated below next to the authorized officers of each of them. This Agreement may be executed in counterparts, but this Agreement shall have no force or effect unless it has been fully executed by the parties. CITY City of San Bernardino Date: "J �(/f 2 2o� By. All arker, City Manager Approved as to Form: JAMES F. PENMAN, City Attorney By - m- -• : CONTRACTOR Riverside Housing Development Corporation, Inc., a California nonprofit corporation, dba Inland Housing Development Corp. Date: 7/2 V%3 By: ---- Title: Executive Director Date: By: Title: 13 C\Documents and Settings\jgrider\Local Settings\Temp\MinuteTraq\sanbernardinocityca@ sanbernardinocityca.IQM2.com\WorkWttachments\5309.docx 2013-212 EXHIBIT "1" SCOPE OF SERVICES (Description of Program) A. CONTRACTOR'S Administration Costs The City shall compensate CONTRACTOR the total sum of $100,000 for the administration and implementation of the Program herein and for services rendered under this Agreement. CONTRACTOR shall bill the City monthly in equal installments of$1,250.00 up to the maximum amount of compensation stated herein. B. Single Family Beautification Loan/Grant Program (the "Program") ($100,000) The CONTRACTOR shall conduct the Program in accordance with the following guidelines: Loan /Grant Program: On a case by case basis and only as approved and directed by the City Manager,to utilize the funds herein to provide Beautification Grants up to a maximum of $10,000 per property to Qualified Homeowners. (NOTE: Refer to Section 6(a) of this Agreement for specific Budget Line Items on how these funds are to be used). On a case-by-case basis, subject to extenuating circumstances, the amounts herein may be exceeded, provided CONTRACTOR has obtained approval by the City Manager, or his/her authorized designee. The improvements allowed under the Program are described in "D" below of this Scope of Services. C. Eligible Improvements Permitted under the Program The following types of improvements are permitted, but not limited to: Loan/Grant Program: Roof replacement; exterior painting including lead remediation; landscaping including automatic sprinklers, grass seed and planting materials in accordance with City Landscaping Guidelines; parkway enhancements such as stamped concrete, trees and landscape plantings; window replacement; driveway repairs or replacements; garage door replacement; wrought iron, vinyl, wood or block fencing. The Maximum Beautification Grant permitted under the Program is $1 0,000 per property. D. Applicant Eligibility Requirements for the Program 1. Qualified Homeowner must be an owner occupant for a minimum period of one (1) year; on a case-by-case basis, and depending on the circumstances, this requirement may be waived by the City Manager or designee; CONTRACTOR shall obtain evidence of ownership and length of residency. 2. Qualified Homeowner must complete a Program Application (see Exhibit "2" to the Agreement), and meet the applicable income criteria (see Exhibit "3"to the Agreement). 1 2013-212 3. All Qualified Homeowners must agree to attend a Maintenance Class conducted by CONTRACTOR; to sign and notarize a Maintenance Covenant and agree to live in their home for not less than one (1) year following recordation of the Maintenance Covenant. E. Guidelines: The CONTRACTOR shall conduct the Program in accordance with the following guidelines: 1. CONTRACTOR shall administer and implement the Program herein and shall utilize the applicable and pertinent sections of the City's Rehabilitation Loan and Grant Policies and Procedures Manual for guidance on processing and packaging all loans and grants under this Agreement, if applicable under the direction of the City Manager. 2. The CONTRACTOR shall process Program Applications on a first-come, first-served basis. However, in case of emergency, or life threatening situation, the CONTRACTOR may process an application on an urgent basis subject to approval by the City Manager. 3. The CONTRACTOR shall inspect eligible properties to determine the type of health and safety and code violation repair work needed, including asbestos and lead based paint removal, the age and overall condition of the unit and to ensure that all units rehabilitated or improved under the Program when completed are aesthetically pleasing and in compliance with local, state and federal ordinances and laws. 4. The CONTRACTOR shall prepare and complete work write-ups, cost estimates, and bid packages for the improvements for each property. 5. The CONTRACTOR shall ensure that all work performed on the Qualified Homeowner's home is performed by pre-qualified State licensed contractors. The CONTRACTOR shall also require that any contractor performing work under the Program possess a current business license in the City of San Bernardino and has a current license with the State of California contractor's License Board. The CONTRACTOR shall be required, whenever feasible, to obtain a minimum of three (3) bids for all work performed. All work performed by contractors shall be approved and authorized by the Qualified Homeowner, and shall be completed within a specified timeframe acceptable to Qualified Homeowner and contractors. 6. The CONTRACTOR shall solicit bids for the rehabilitation work from a list of pre-approved general contractors and assisting Qualified Homeowners with the selection of a contractor, and the execution of the contract between owner and contractor, including the Scope of Work and Schedule of Performance; schedule and conduct pre-construction and walk-through conferences, etc. 7. The CONTRACTOR shall inspect and monitor the rehabilitation work while in progress and supervise the payment invoice procedures to ensure that all contractors and subcontractors are meeting obligations and that progress payments and retentions are paid in a timely manner. 8. The CONTRACTOR shall coordinate final inspection and payment of the contract retention with the Qualified Homeowner and contractor. 2 2013-212 9. The CONTRACTOR shall maintain accurate records for inspection by the City concerning income and program occupancy of all persons obtaining assistances from the CONTRACTOR pursuant to this Agreement including. but not limited to, application, proof of ownership, income verification, comparables or appraisals, work write-ups, contracts, promissory notes, deeds of trust, etc. The original promissory note and deed of trust shall be for the benefit of the City and shall be transmitted to City upon request for each loan. 10. The CONTRACTOR shall also provide quarterly reports to the City, or as necessary, upon the request of the City Manager. From time to time, the City and CONTRACTOR shall coordinate inspection site visits to ensure that the work being performed on a Qualified Homeowner's home is being performed in a good workmanlike manner and in accordance with applicable codes (UBC, UPC, UMC, NEC and Health and Safety) and City Ordinances. 11. The CONTRACTOR shall provide any and all services required by the City Manager or designee, in order to effectively implement and complete the Services under this Agreement. /// /// /// /// 3 2013-2 2 EXHIBIT 2 For Office Use ONLY Application Mailed out on: City of San Bernardino-Inland Housing Development Corporation (IHDC) Single Family Beautification Grant Program Application Applicant's Name(Last, First, MI) Applicant's Date of Birth Applicant's Spouse's Name or Co-Applicant Co-Applicant's Date of Birth Street Address Applicant's Phone Number (Office Use Only) City/Zip Map Verification Date: Initials: DO YOU HAVE ANY NOTICE OF VIOLATION WITH THE CITY OF SAN BERNARDINO CODE ENFORCEMENT OR ANY OTHER CITY AGENCIES YES IF YES,PROVIDE COPY. NO Years lived in residence: List all persons living in residence other than you: Name Relationship Age Employed Yes No Any income must be shown in income section.Must show proof of income to qualify. Written verification must be forwarded with application. MONTHLY HOUSEHOLD GROSS INCOME AFDC $ Social Security $ SSI/SSP $ Disability $ Employment $ Food Stamps $ Unemployment Ins $ Pension/Retire $ Alimony $ Child Support $ Other/Real Prop. $ Total Monthly Income: $ Total Annual Income $ 2013 Income Level (Subject Number of Persons Per Household to annual change) 1 2 3 4 5 6 7 8 Household Annual Income May Not Exceed: 80% Median Income 35,700 40,800 45,900 50,950 55,050 59,150 63,200 67,300 Ethnicity: (Please check all that apply) Optional ❑ Sr. Citizen(s)-60 or older ❑ Female Head of Household ❑ Disabled One or More ❑ Hispanic ❑ Asian/Pacific ❑ American Indian ❑ Black ❑ White,Non-Hispanic ❑ Other I certify under penalty of perjury that the information provided above is correct to the best of my knowledge. I understand that the inclusion of any willful misrepresentation on this form constitutes ground for rejection of this application and recapture of any financial benefit I may have received. I authorize the Riverside Housing Development Corporation dba Inland Housing Development Corporation (the "IHDC") and/or the City of San Bernardino to examine and to verify any and all information provided in this application. Date: Signature Date: P:\Agendas\Agenda Attachments\Exhibits\2010/7.19.10 IHDC Beautification Grant Program Application 20 3-217 EXHIBIT 3 YEAR 2013 INCOME LIMITS RIVERSIDE & SAN BERNARDINO COUNTIES HOUSEHOLD 30% 50% 60% 80% SIZE MEDIAN MEDIAN MEDIAN MEDIAN INCOME INCOME INCOME INCOME FAMILY Extremely Very 60% Low SIZE Low Low Median 1 $13,400 $22,300 $26,760 $35,700 2 $15,300 $25,500 $30,600 $40,800 3 $17,200 $28,700 $34,440 $45,900 4 $19,100 $31,850 $38,220 $50,950 5 $20,650 $34,400 $41,280 $55,050 6 $22,200 $36,950 $44,340 $59,150 7 $23,700 $39,500 $47,400 $63,200 8 $25,250 $42,050 $50,460 $67,300