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RESOLUTION(ID#2567) DOC ID: 2567 A 7
CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION
Annexation
From: Allen Parker NVCC Meeting Date: 07/15/2013
Prepared by: Lisa Connor, (909) 663-1044
Dept: City Manager Ward(s): All
Subject:
Resolution of the Mayor and Common Council of the City of San Bernardino Approving and
Authorizing the City Manager to Execute an Agreement by and Between the City of San
Bernardino and Neighborhood Housing Services of the Inland Empire, Inc., to Implement the
Single Family Housing Rehabilitation Program for the Area East of the 215 Freeway in the
Amount of$700,000 in Home Investment Partnership Act Funds. (At Meeting of July 1, 2013,
Item Continued to July 15, 2013) (#2567)
Current Business Registration Certificate: Yes
Financial Impact:
There is no fiscal impact to the City's General Fund. The $1,400,000 is available in HOME
Investment Partnership funds
Motion: Adopt the Resolution.
Synopsis of Previous Council Action:
May 3,2010 adopted Resolution 2010-100, approving the 2010-2015 Five Year Consolidated
Plan
May 7, 2012 adopted Resolution 2012-82 approving the 2012-2013 Annual Action Plan
June 17, 2013 adopted Resolution 2013-179 approvi g a substantial amendment to the 2010-
2015 Five Year Consolidated Plan allocating $1,400,000 for Single Family Housing
Rehabilitation
Background:
The Consolidated Plan is a comprehensive five-year �trategy that addresses how entitlement cities,
such as the City of San Bernardino, intend to use and leverage federal funds such as Community
Development Block Grant ("CDBG"), HOME Investment Partnership Act Grant ("HOME") and
Emergency Shelter Grant ("ESG"). On May 3, 2010, the Mayor and Common Council adopted the
Five-Year Consolidated Plan and Annual Action Plan that guides the City and identifies certain
needs to be addressed incrementally for the 2010-2015 period. The above referenced Plans and
Federal application for funds were subsequently submitted by the City and approved by the U.S.
Department of Housing and Urban Development Department ("HUD") on September 28, 2010. The
2012-2013 Annual Plan was approved by the Mayor and Common Council on May 7, 2012 for
submission and was approved by HUD on August 2,2012.
The intent of this process is to ensure that cities are eeting HUD mandates and are establishing
goals and objectives that provide decent housing, a suitable living environment and expanded
economic opportunities targeted primarily to low- and moderate-income persons. The 2012-2013
Action Plan depicts a year-to-year Plan outlining the goals, objectives and resources to be allocated
Updated: 7/2/2013 by Linda Sutherland A Packet Pg. 647
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2567
incrementally to address the needs identified in the Five-Year Consolidated Plan. Moreover, the
Five-Year Plan identifies community development, housing, infrastructure, homeless and public
service needs and how those needs will be addressed using anticipated resources from Federal
CDBG, HOME, and ESG funds, State,County and local resources.
Current Issue:
In order to continue carrying out the housing functions, and meet its goal statements in the
approved Five -Year Consolidated and 2012-2013 Action Plans and comply with the U. S.
Department of Housing and Urban Development (HUD) grant program requirements, the Mayor
and Common Council approved an amendment to th Consolidated Plan, staff is now requesting
authorization and consent to implement the follow g needed housing programs in accordance
with that amendment:
Single Family Housing Rehabilitation Program. he Owner-Occupied Housing Improvement
Program is a City-wide program that will provide low-income (80% AMI) households in single
family residences funds up to $30,000 to address health and safety and code violations on their
principal residence. If necessary to bring the property up to code, funding up to $50,000 maybe
provided with approval by the City Manager. The assistance is in the form of a loan at 0%
interest repayable at the time of sale, transfer of title, refinance with cash-out, if the property is
no longer owner-occupied or at the end of 30 years. Eligibility for HOME funds will be
determined on a per project basis. Ten Percent (1,0%) of the allocated fund will be use for
program administrative costs.
This Program was previously funded with Redeve opment Agency low and moderate income
housing funds, and proposed to be replaced with HOME Funds. RDA Low and Moderate income
housing funds is no longer available as a result of the dissolution of the Redevelopment Agency
pursuant to state law. The Program is administere by Neighborhood Housing Services of the
Inland Empire (NHSIE) for the areas east of e 215 Freeway ($700,000) and Inland
Development Corporation for area west of the 215 reeway ($700,000). The program activities
are very much needed as it has been used to success lly address code and deferred maintenance
issues on behalf of homeowners throughout the City.
In compliance with the substantial amendment defi 'tion of the Citizen Participation Plan in the
approved Five-Year Consolidated Plan, 24 CFR 91.105 HOME implementing regulation, the
general public were afforded the opportunity to review and provide oral and/or written comments
to the proposed substantial Plans amendment. Public notices announcing the amendment and
summary of proposed funding and activities were published in the San Bernardino Sun
Newspaper on April 17, 2013 and May 6, 2013 Any public comments received will be
incorporated into the Plan amendment; however, to date,no comments were received by staff.
Environmental Impact:
The requested action is exempt under Section 15332 of the California Environmental Quality Act
("CEQA") and 24 CFR 58.34(a)(3) of the National Environmental Protection Act ("NEPA")
guidelines because the proposed action is required for federal program administration and
compliance. Separate environmental clearances wi 1 be processed for each project as they are
identified and processed for funding.
Updated: 7/2/2013 by Linda Sutherland A Packet Pg. 648
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2567
City Attorney Review:
Supporting Documents:
Reso SF Rehab Program NHSIE (PDF)
Agmt SF Rehab Program NHSIE (PDF)
Exhibit 1 NHSIE SF Rehab (PDF)
Exhibit 2 NHSIE SF Rehab (PDF)
Exhibit 3 NHSIE SF Rehab (PDF)
Exhibit 4 NHSIE SF Rehab LBP Acknowledgment PDF)
Exhibit 5 NHSIE Rehab LBP Disclaimer (PDF)
Exhibit 6 NHSIE SF Rehab Application (PDF)
Exhibit 7 NHSIE SF Rehab Agreement (PDF)
Exhibit 8 NHSIE SF Rehab Covenants (PDF)
Exhibit 9 NHSIE SF Rehab Note (PDF)
Exhibit 10 NHSIE SF Rehab (PDF)
Exhibit 11 NHSIE SF Rehab (PDF)
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Updated:7/2/2013 by Linda Sutherland A Packet Pg. 649
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I RESOLUTION NO.
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN N
BERNARDINO APPROVING AND AUTHORIZING THE CITY MANAGER TO w
3 EXECUTE AN AGREEMENT BY AND BETWEEN THE CITY OF SAN BERNARDINO
4 AND NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE, INC., TO w
IMPLEMENT THE SINGLE FAMILY HOUSING REHABILITATION PROGRAM FOR w
5 THE AREA EAST OF THE 215 FREEWAY IN THE AMOUNT OF $700,000 IN HOME Fn
INVESTMENT PARTNERSHIP ACT FUNDS. Z
6 E
7 WHEREAS, the City of San Bernardino (the "City") is an entitlement jurisdiction and c
annually receives certain federal funds under the United States Department of Housing and Urban
8 R
Development's ("HUD") HOME Investment Partnership Act ("HOME") and Community
9
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Development Block Grant(CDBG)programs; and =
10
WHEREAS, on May 3, 2010, the Mayor and Common Council adopted Resolution 2010-
11 M
100,approving the City's 2010-2015 Consolidated Plan; and _
12
13
WHEREAS, on May 7, 2012, the Mayor and Common Council adopted Resolution 2012- in
,
82, approving the 2012-2013 Action Plan that is required to guide and identify needs the City
14 a
which will address incrementally for the 2010-2015 period; and m
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16
WHEREAS, on June 17, 2013, the Mayor and Common Council adopted Resolution 2013- 'o
179, approving and amendeding the City's 2010-2015 Consolidated Plan by allocating $1,400,000 0
17 v
of HOME funds for Single Family Housing Rehabilitation Program to be implemented it by
18 n par Ln
Neighborhood Housing Services of the Inland Empire, Inc. (NHSIE), for the area east of the 215 N.
19 w
20 Freeway; and z
WHEREAS, NHSIE is a non-profit organization that provides housing rehabilitation R
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services in the City and San Bernardino County; and °
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WHEREAS, under terms of the Single Family Housing Rehabilitation Agreement
23
("Agreement"), U.
24 ("A g }, NHSIE will assist the City in providing deferred rehabilitation loans to income �
eligible households to address code related deficiencies and bring the homes to habitable standards
25
meeting and exceeding the health and safety code. Rehabilitation work will include but will not be
26
27 limited to roof replacement, electrical and plumbing, heating and cooling system replacement,
replacement of windows and doors; and installation of new landscape; and a
28
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I WHEREAS, in compliance with the California Environmental Quality Act ("CEQA") and
2 the National Environmental Policy Act ("NEPA") guidelines, the authorization and execution of the
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3 Agreement is determined to be an exempt action pursuant to Section 15332 of the CEQA Guidelines °
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4 and 24 CFR 58.34(a)(3) of NEPA Guidelines because the proposed action is required for federal w
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5 programs administration and compliance. Cn
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6 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON E
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7 COUNCIL OF THE CITY OF SAN BERNARDINO,AS FOLLOWS: o
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8 Section 1. The Mayor and Common Council hereby approves $700,000 in HOME
9 funds for the Single Family Housing Rehabilitation Program Implementation Agreement with
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10 NHSIE and authorizes the City Manager to execute the Agreement, attached and incorporated 21
11 herein as Exhibit"A". E
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12 Section 2. The Mayor and Common Council finds and determines that authorization M
13 and execution of the Agreement is exempt,pursuant to Section 15332 of the CEQA Guidelines and co
14 24 CFR 58.34(a)(3) of the NEPA Guidelines because the proposed action is required for federal a
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15 programs administration and compliance. 2
16 Section 3. This Resolution shall take effect upon its adoption. N
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I RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO APPROVING AND AUTHORIZING THE CITY MANAGER TO
2 EXECUTE AN AGREEMENT BY AND BETWEEN THE CITY OF SAN BERNARDINO Ln
AND NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE, INC., TO N
3 IMPLEMENT THE SINGLE FAMILY HOUSING REHABILITATION PROGRAM FOR °
THE AREA EAST OF THE 215 FREEWAY IN THE AMOUNT OF $700,000 IN HOME a
4 INVESTMENT PARTNERSHIP ACT FUNDS. w
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6 1 HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and E
7 Common Council of the City of San Bernardino at a meeting thereof, o
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8 held on the day of ,2013, by the following vote to wit:
9 Council Members: Ayes Nays Abstain Absent
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10 MARQUEZ =
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11 JENKINS
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13 SHORETT =
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18 Georgeann Hanna, City Clerk to
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The foregoing resolution is hereby approved this day of
20 ,2013. Z
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22 Patrick J. Morris,Mayor s
23 City of San Bernardino c
Approved as to form:
24 James F. Penman, U-
City Attorney 0
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26 By: g' .
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EXHIBIT A
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CITY OF SAN BERNARDINO ,
SINGLE FAMILY RESIDENCE REHABILITATION LOAN PROGRAM HOME
SUBRECIPIENT AGREEMENT
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THIS SINGLE FAMILY RESIDENCE REHABILITATION LOAN PROGRAM HOME
SUBRECIPIENT AGREEMENT (the "Agreement") is made and entered into this day z
of June 2013 (the "Effective Date"), by and between the NEIGHBORHOOD HOUSING E
SERVICES OF THE INLAND EMPIRE (NHSIE) a California non-profit corporation (the
"Contractor") and the CITY OF SAN BERNARDINO (the "City"), a municipal corporation. a
The City and the Contractor agree as follows: a-
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RECITALS
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WHEREAS, the City administers a single family residence rehabilitation Ioan program >,
which loans funds (the "Rehabilitation Loan Program") to low-moderate income homeowners E
who reside in the City of San Bernardino (the "City"), in the County of San Bernardino (the Ui
"County"), in the State of California (the "State") to permit such homeowners to undertake 2 co
certain housing rehabilitation and correction work, including, without limitation, asbestos and S
lead containing materials abatement work, handicap accessibility improvements and utility N
energy improvements to single family residential dwelling units owned and occupied by such a
low-moderate homeowners; and a
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WHEREAS, the City desires to execute a three (3) year agreement with the Contractor, "a
renewable annually by the City in its sole discretion and subject to the appropriation by the 6
United States Department of Housing and Urban Development("HUD"); and o
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WHEREAS, the City desires to allocate an amount not to exceed the sum of Seven
Hundred Thousand Dollars ($700,000) annually of HOME Partnership Act Funds, in accordance N
with the terms, the covenants and the conditions of this Agreement, which amount may be w
increased by the City in the event the minimum number of required Loans is exceeded by the co
Contractor for any given year; and Z
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WHEREAS, the Rehabilitation Loan Program promotes and expands the supply of o
affordable housing in the City and fosters the elimination and prevention of blight in areas east of L
the 1-215 Freeway; and °-
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NOW, THEREFORE, IN CONSIDERATION OF THE RECITALS MENTIONED
ABOVE, THE MUTUAL PROMISES OF THE CITY AND OF THE CONTRACTOR IN THIS vi
AGREEMENT AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE E
RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY ACKNOWLEDGED BY THE
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CITY AND BY THE CONTRACTOR, THE CITY AND THE CONTRACTOR AGREE AS
FOLLOWS:
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Section 1.
DEFINITIONS OF CERTAIN TERMS. In addition to the words and
phrases, which are defined in the Recitals of this Agreement and/or in this Agreement, the N
following words and terms shall have the meaning set forth below: s
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"County Recorder's Office" means and refers to the County Recorder's Office for the
County of San Bernardino, State of California. w
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"Deed of Trust" means and refers to the Deed of Trust and Assignment of Rents securing z
the obligations of the Note and encumbering the Home. The Deed of Trust must be E
executed and acknowledged by the Qualified Homeowner and shall be recorded by or for
the City in the County Recorder's Office. The Deed of Trust shall be subordinate to the o
Senior Deed of Trust. The Deed of Trust must be substantially similar to the Deed of
Trust attached hereto and incorporated herein by this reference as Exhibit"1".
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"Environmental Laws"mean and refer to all applicable federal, state, municipal and local y
laws, statutes, codes, ordinances, rules, regulations, orders and judgments relating to the =
protection or clean-up of the environment, the use, treatment, storage, transportation,
generation, manufacture, processing, distribution, handling or disposal of, or emission,
discharge or other release or threatened release of hazardous substances, the preservation d
or protection of waterways, groundwater, drinking water, air, wildlife, plants or other c
natural resources, the health and safety of persons, or the protection of the health and N
safety of employees, now or hereafter existing, as the same may be amended, modified or
supplemented from time to time, including, without limitation: the Clean Air Act, as a
amended, 42 U.S.C. Section 7401 et seq.; the Federal Water Pollution Control Act, as
amended, 33 U.S.C. Section 1251 et seq.; the Resource Conservation and Recovery Act
of 1976, as amended, 42 U.S.C. Section 6901 et seq.; the Comprehensive Environment o
Response, Compensation and Liability Act of 1980, as amended (including the Superfund c
Amendments and Reauthorization Act of 1986, "CERCLA"), 42 U.S.C. Section 9601 et U
seq.; the Toxic Substances Control Act, as amended, 15 U.S.C. Section 2601 et seq.; the
Occupational Safety and Health Act, as amended, 29 U.S.C. Section 651, the Emergency N LO
Planning and Community Right-to-Know Act of 1986, 42 U.S.C. Section 11001 et seq.;
the Safe Drinking Water Act, as amended, 42 U.S.C. Section 300f et se the California w
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Health and Safety Code (Section 25100 et seq., § 25249.5 et seq., Section 39000 et se =
seq.); Z
the California Water Code (Section 13000 et seq.); the California Environmental Quality E
Act ("CEQA"); the California Public Resources Code; all comparable state and local
laws, laws of other jurisdictions or orders and regulations; and any and all common law 0-
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requirements, rules and bases of liability regulating, relating to or imposing liability or a
standards of conduct concerning pollution or protection of human health or the
environment, as now or may at any time hereafter be in effect.
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"City Manager" means and refers to the City Manager of the City and his or her n
authorized representatives. E
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"General Contractor Agreement" means and refers to the Single Family Residence
Rehabilitation Loan Program General Contractor Agreement by and between the .E
Qualified Homeowner and the contractor identified therein (the "General Contractor") as c
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a pp roved in writing, by the Contractor. The General Contractor Agreement relates,
without limitation, to the construction, the installation and the completion by the General r
Contractor of the Work described in the General Contractor Agreement. The General `''
Contractor Agreement shall be executed by and between the Qualified Homeowner and o
the General Contractor and shall be accepted, in writing, by the Contractor. The General
Contractor Agreement shall be substantially similar to the General Contractor Agreement w
attached hereto and incorporated herein by this reference as"Exhibit"2".
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"Hazardous Substances" mean and refer to any pollutant, contaminant, waste and any E
toxic, carcinogenic, reactive, corrosive, ignitable, flammable or infectious chemical,
chemical compound or substance or otherwise hazardous wastes, toxic or contaminated o
substances or similar materials, including, without limitation, any quantity of asbestos,
urea formaldehyde, PCBs, radon gas, lead, lead-based paint, crude oil or any fraction M
thereof, all forms of natural gas, petroleum products, by-products or derivatives,
radioactive substances, methane, hydrogen sulfide or materials, pesticides, waste waters, N
or sludges, any of the above of which are subject to regulation, control or remediation =
under any Environmental Laws.
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"Home" means and refers to the land and the single-family dwelling unit located thereon a
in the Target Area within the City, owned by the Qualified Homeowner and resided in by c
the Qualified Homeowner as its principal residence.
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"Homeowner's Release and Waiver" means and refers to the Homeowner's Release and a
Waiver, as executed by the Qualified Homeowner and the Contractor. The Homeowner's
Release and Waiver provides, without limitation, that the Contractor shall be permitted to
display yard signs at the Qualified Homeowner's Home and that the Contractor shall be -6
permitted to photograph or videotape the Qualified Homeowner's Home. The =
Homeowner's Release and Waiver shall be substantially similar to the Homeowner's c°�
Release and Waiver attached hereto and incorporated herein by this reference as Exhibit
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"Improvements" mean and refer to the following types of eligible improvements to the w
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Qualified Homeowner's Home that will be permitted under the Program: (i) roof repairs =
and re-roof or overlay, (ii) exterior and interior painting, including, without limitation, Z
lead testing, (iii) drought tolerant landscaping(irrigation system,with hydro seeds, sod or
artificial turf), (iv) window replacement, (v) carpet replacement and/or finished flooring o
replacement, (vi) HVAC system, (vii) electrical work, (viii) sewer repair or sewer a
installation (the "Sewer Repairs"), (ix) termite repairs, (x) exterior concrete hardscape M
such as sidewalks, driveways, curbs, gutters, hand railings or ramps, (xi) door or window
screens repairs or replacements, (xii) tub, shower, toilet repairs or replacements, (xiii) U.
foundation or structural repairs, (xiv) fencing or (xv) installation of alternative energy
sources, including, without limitation, solar panels. The Improvements must relate to rn
health and safety code violations (i.e.,blown sewer lines, septic tank destruction, etc.). a
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In connection with each Loan Application for Sewer Repairs, the City shall have the right E s
to determine whether or not such Sewer Repairs shall be made from funds disbursed by
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the City from Loan Funds under the Program o r from
grant funds disbursed by the City to -�
an applicant under the Single Family Beautification Grant Program, or under any other N
then-existing grant program. Should the City determine that the Sewer Repairs will need 4-
to be disbursed by the City from grant funds pursuant to the Single Family Beautification °
Grant Program, or any other then-existing grant program, the Contractor shall advise the w
applicant, in writing, that the applicant will need to prepare, to execute and to submit a
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new grant application to the Contractor under the Single Family Beautification Grant
Program, or under any other then-existing grant program, which grant application, Z
without limitation, shall request the City to make a grant to the applicant to permit the E
applicant to make and to complete the Sewer Repairs.
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"Laws" mean and refer to all federal, state, municipal and local laws, statutes, codes, a.
ordinances, regulations, rules, orders or judgments, now or hereafter in effect, as s
amended from time to time, including, without limitation, the Environmental Laws, all
applicable building, plumbing, mechanical, electrical and health and safety codes and N
City ordinances. _
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"Lead Based Paint Acknowledgment" means and refers to the "Lead Based Paint M
Acknowledgment of Receipt" as executed by the Qualified Homeowner and by the d
General Contractor. The Lead Based Paint Acknowledgment acknowledges receipt by c
the Qualified Homeowner of the Lead Based Paint Pamphlet from the General CO
Contractor. The Lead Based Paint Acknowledgment is attached hereto and incorporated
herein by this reference as Exhibit'W'. a
"Lead Based Paint Disclosure"means and refers to the"Lead Based Paint Disclosure"by M
and between the Qualified Homeowner and the General Contractor, The Lead Based o
Paint Disclosure is to be executed by the General Contractor and by the Qualified o
Homeowner and is attached hereto and incorporated herein by this reference as Exhibit U
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"Loan"means and refers to each loan transaction approved, granted and made by the City N'
to or for the benefit of the Qualified Homeowner in accordance with this Agreement. 55
Each Loan shall be evidenced by a Note and secured by a Deed of Trust encumbering the Z
Home owned by the Qualified Homeowner to whom the Loan has been made by the City. E
Each Loan made by the City to the Qualified Homeowner may not exceed the lesser of: M
(i)$30,000 or (ii)twenty-five percent(25%) of the then fair market value of the Home as o
determined by a licensed appraiser approved by the City (the "Loan Amount"), without 0.
the prior written approval of the City Manager. If necessary to bring the property to s
code, funding up to $50,000 may be provided with the approval of the City Manager or
designee. The Loan shall be subordinate to the Senior Loan. The Qualified Homeowner U.
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shall pay all amounts that exceed the Loan Funds paid by the City to or for the benefit of
the Qualified Homeowner under the Program to enable the Qualified Homeowner to
complete the Improvements in connection with the a
P P Qualified Homeowner's Home. For
each year during the term of this Agreement, the Contractor will attempt to approve,
complete,process and finalize up to twenty-two (22)Loans, t
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"Loan Application" means and refers to the Single Family Residence Rehabilitation Loan --
Program Application as fully completed and executed by the Qualified Homeowner. The N
Loan Application shall be submitted by the Qualified Homeowner to the Contractor and
the Contractor shall verify that the Loan Application is complete. Each Loan Application °
shall contain the information relating to the Qualified Homeowner and the proposed use w
of the Loan Funds 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 Cn
require all Qualified Homeowners to complete the Loan Application substantially similar Z
to the Loan Application attached hereto and incorporated by reference as Exhibit"6." E
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"Loan Disbursement Account" means and refers to the reimbursement of cost associated °
with the rehabilitation work, which the Contractor shall present with receipt and 0
supporting documentation to the City for disbursement from the Loan Funds in
connection with the approval, granting and making of such loan by the City to the t
Qualified Homeowner under the Program, in accordance with this Agreement.
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"Loan Documents" mean and refer to the following: (i) the Loan Application (attached
hereto as Exhibit "6"), (ii) the Loan Services Agreement(attached hereto as Exhibit"T'), LL
(iii) the Maintenance Agreement Covenant (attached hereto as Exhibit "8"), (iv) the °
Homeowner's Release and Waiver(attached hereto as Exhibit"3", (v)the Note(attached c'
hereto as Exhibit "9"), (vi) the Deed of Trust (attached hereto as Exhibit "I"), (vii) the N
issuance of a title policy in favor of the City in the amount of the Loan Funds approved
by the City from a title company acceptable to the City, and (viii) this Agreement and a
w such other agreements, documents, instruments, guarantees and/or certifications
evidencing, securing, guaranteeing, relating to or in connection with the Loan to the
Qualified Homeowner, the Loan Funds and/or the Loan Disbursement Account. The o
Loan Documents shall be subordinate to the Senior Loan Documents. c
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"Loan Funds" mean and refer to the funds delivered by the City to or for the benefit of a r.
Qualified Homeowner in connection with the Loan that the City has approved and made N
to the Qualified Homeowner in accordance with this Agreement. Each Loan made by the
City to the Qualified Homeowner may not exceed the Loan Amount, without the prior co
written approval of the City Manager . The Qualified Homeowner shall timely pay all Z
amounts that exceed the Loan Funds paid by the City to or for the benefit of the Qualified E
Homeowner under the Program in order to construct, install,perform and/or complete the
Improvements in connection with the Qualified Homeowner's Home. L-
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"Low-Moderate Income Housing Funds" mean and refer to the HOME Funds that the
City intends to use to make the Loan to or for the benefit of the Qualified Homeowner in Ix
accordance with this Agreement and HOME regulation and guidelines. The City and the c-co
Contractor will offer the Loan to a Qualified Homeowner who earns not more than 80%
of the current annual median income for the San Bernardino County area, adjusted for a
family size (as those terms are defined by U. S. Department of Housing and Urban
Development("HUD")as further illustrated in Exhibit"10"of this Agreement(the"2013
Income Limits") and are subject to annual adjustments. E
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Maintenance Agreement Covenant means and refers to the Residential Property ^
Maintenance Agreement Containing Covenants Affecting Real Property (Single Family
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Residence Rehabilitation Loan Program) by and between the City and the Qualified ,-
Homeowner. The Maintenance Agreement Covenant provides, without limitation, for °
maintenance-related duties and obligations to be performed and completed by the w
Qualified Homeowner in connection with the Qualified Homeowner's Home. The w
Maintenance Agreement Covenant shall be executed and acknowledged by and between Cn
the City and the Qualified Homeowner, and must be in recordable form for recordation Z
by the Contractor or by the City in the County Recorder's Office. The Maintenance E
Agreement Covenant must be substantially similar to the Maintenance Agreement
Covenant attached hereto and incorporated herein by this reference as Exhibit"8 13
.
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"Maintenwnce Class" means and refers to the Maintenance Class provided by and 1°c
conducted by the Contractor pursuant to the Homebuyer Education Program Agreement,
dated as of , 2013, by and between the City and the Contractor. The Qualified
Homeowner is required to attend the Maintenance Class after the City has approved the =
Loan to a Qualified Homeowner. In the Maintenance Class, the Qualified Homeowner
shall learn, without limitation, to properly maintain the Qualified Homeowner's Home ti
and/or the Improvements to be constructed, installed,performed and completed thereon. d
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"Note"means and refers to the Promissory Note Secured by Deed of Trust in the amount N
of the Loan made by the City to and for the benefit of the Qualified Homeowner. The
Note shall be executed by the Qualified Homeowner and the obligations of the Note shall a
be secured by the Deed of Trust. The outstanding principal balance of the Note shall
accrue simple interest at the rate of three percent(3%)per annum. No periodic payments
of principal and interest, or of interest-only shall be due and payable by the Qualified .o
Homeowner to the City during the term of the Note. The outstanding principal amount of o
the Note, all accrued and unpaid interest and all other fees, charges and amounts due 0
under the Note, under the Deed of Trust and under the other Loan Documents (the"Loan
Payoff') shall be payable by the Qualified Homeowner to the City on the date that: (i) to
the Qualified Homeowner is in default under the Loan Documents, subject to any
applicable cure period, (ii) the Qualified Homeowner refinances the Loan, or (iii) on the
date that the Qualified Homeowner sells, conveys or transfers the Home to an =
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unauthorized third person in violation of the Loan Documents; provided, however, if the E
Qualified Homeowner remains the fee owner of the Home for a period of ten (10) years
from the date that the Deed of Trust is recorded in the County Recorder's Office, the
Loan shall be forgiven and discharged by the City, the City shall record a reconveyance
or release of the Deed of Trust in the County Recorder's Office and the Qualified _
Homeowner shall have no further duty or obligation to pay to the City the Loan Payoff.
The Note shall be substantially similar to the Note attached hereto and incorporated U_
herein by this reference as Exhibit"9".
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"Project" means and refers to the construction, the installation and/or the completion of
the Improvements from the use of the Loan Funds. a
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"Program' means and refers to the program created administered and maintained b or
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for the City in connection with the Loan, the disbursement by the City to the Contractor N
of the Loan Funds to or for the benefit of each Qualified Homeowner in accordance with
this Agreement and the performance and completion by the Contractor of the Services.
The Contractor shall offer the Program to Qualified Homeowners residing in the area east w
of the 1-215 freeway during the term of this Agreement. The Contractor shall offer the �—
Program on an as-needed, first-come, first-served basis, to Qualified Homeowners in this Cn
Area of the City for the term of this Agreement. However, in case of an emergency, of z
an urgent need or of a life-threatening situation, the Contractor may process a Loan E
Application ahead of other Loan Applications subject to the approval by the City
Manager. o
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"Qualified. Homeowner" means and refers to a person or household (i) which owns and
occupies its Home as its principal residence within the Target Area for at least twelve
(12) continuous months preceding the date of submission of its Loan Application to the
Contractor, (ii)has a personal or household income level, adjusted for family size, during =
2,
the twelve (12) months preceding the date of submission of its Loan Application to the
Contractor within the ranges of income for low-moderate income households, adjusted ti
for family size, as set forth in Exhibit 111011, (iii) must complete, execute and submit the 0
Loan Application to the Contractor, (iv) must agree to attend the Maintenance Class c
conducted by the Contractor,(v)must agree to live in its Home, as its principal residence, N
for not less than ten (10) years after the recordation of the Deed of Trust and the
Maintenance Agreement Covenant in the County Recorder's Office, (vi) must execute a.
and acknowledge, where appropriate, all Loan Documents, (vii) must agree to agree to
maintain its Home pursuant to the Maintenance Agreement Covenant for a period of ten
(10) years following the recordation of such Maintenance Agreement Covenant in the o
County Recorder's Office, and (viii) who must not have received any grant or any loan o
from the City for a period of ten (10) years prior to the submission by the Qualified U
Homeowner to the City and/or to the Contractor of the Loan Application. On a case-by-
case basis, the City Manager of the City, in its sole and absolute discretion, may waive N
this one 12-month residency requirement.
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"Senior Deed of Trust" means and refers to the senior deed of trust executed and =
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acknowledged by the Qualified Homeowner. The Senior Deed of Trust secures the E
obligations of the Senior Promissory Note and of the Senior Loan and encumbers the
Home. o
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"Senior Lender"means and refers to an institutional lender, including, without limitation,
any bank, savings bank, savings and loan association, insurance company, credit union or
other lender licensed to conduct business in the State of California, approved by the City N
in its sole and absolute discretion and making the Senior Loan to the Qualified
Homeowner.
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"Senior Loan" means and refers to the loan made by the Senior Lender to the Qualified
Homeowner, The Senior Loan is evidenced by the Senior Promissory Note and is =
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6.F.b
secured by the Senior Deed of Trust encumbering the Home owned by the Qualified
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Homeowner.
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"Senior Loan Documents" mean and refer to the Senior Promissory Note, the Senior
Deed of Trust and all other instruments, documents, agreements, guarantees and/or w
certificates evidencing, securing, guaranteeing or relating to the Senior Loan. w
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"Senior Promissory Note" means and refers to the Senior Promissory Note executed by Z
the Qualified Homeowner in favor of the Senior Lender. The Senior Promissory Note is E
secured by the Senior Deed of Trust, which Senior Deed of Trust encumbers the Home a,
owned by the Qualified Homeowner. o
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"Services" mean and refer, without limitation, to the Program origination, the Mc
preparation, execution and delivery of the Loan Documents,the Loan Fund disbursement W
control, related accounting, Work monitor (course of construction builder contract) ,tM
services and other services to be provided by the Contractor to or for the benefit of the =
City in accordance with this Agreement. The various elements of the Services are more
fully set forth in the "Scope of Services" attached hereto as Exhibit"1 l." For each year ti
of the Agreement, the Contractor will attempt to approve, complete, process and finalize as
up to ten (10)Loans to Qualified Homeowners in the Target Area. c
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"Target Area" means and refers to the area east of the 1-215 freeway, in which the City
has instructed the Contractor to offer the Program to Qualified Homeowners to better a.
maximize the effectiveness of the Loan Funds. In the absence of specific direction from w
the City Manager, the Contractor shall offer the Program on an as-needed, first-come,
first-served basis, to Qualified Homeowners within the Area. However, in the case of an o
emergency, of an urgent need or of a life-threatening situation, the Contractor may o
process a Loan Application subject to the approval of the City Manager. v
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"Work"means and refers, without limitation,to the Improvements, or any part thereof,to N
be constructed, installed, performed and/or completed by a state-licensed General w
Contractor on or in connection with a Home pursuant to the terms, covenants and rn
conditions of the General Contractor Agreement. Only the Improvements and/or the Z
items of Work set forth in the General Contractor Agreement shall be authorized for E
payment by the Contractor, up to the maximum amount authorized under the terms of the
Program for such Improvements, or any part thereof. Any costs of Improvements and/or °
of Work in excess of the maximum amount of the Program (which are not the fault of a
such General Contractor) shall be paid for by the Qualified Homeowner unless approved
in writing by the City Manager.
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Section 2. PERFORMANCE BY CONTRACTOR AND BY CITY. The
Contractor and the City agree to perform the terms,covenants and conditions of this Agreement.
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Section 3. SCOPE OF SERVICES. The Contractor agrees to provide the Services
to the City as set forth herein, as described in the Scope of Services, attached hereto as Exhibit
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11» Promptly following the date of approval of this Agreement by the governing board of the ^
City,the Contractor,without limitation, shall or will continue to: N
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(A) use the general form of the Loan Application in connection with an application by w
a Qualified Homeowner for the approval by the City to the Qualified Homeowner of the w
Loan under the Program in accordance with this Agreement. The applicant for the Loan co
must submit to the Contractor federal and state income tax returns filed by the applicant Z
with the appropriate taxing authorities for the past two (2) years which tax returns must E
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be acceptable to the Contractor in its sole and absolute discretion;
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(B) subject to the completion of the tasks described in Section 3(A) above, continue 0.
the process of receiving and reviewing Loan Applications and provide the Services as 1°c
provided for in the Agreement. The Contractor shall offer the Program to Qualified
Homeowners on an as-needed, first-come, first-served basis; provided, however, in the N
case of an emergency, of an urgent need or of a life-threatening situation, the Contractor =
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may process a Loan Application ahead of other Loan Applications subject to the approval E
of the City Manager; ti
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(C) transmit a copy of a completed set of the Loan Documents to the City, together c
with a recommendation from the Contractor to the City to approve the Loan Application
and the Loan to the Qualified Homeowner. Each acceptance of a Loan Application by
the City shall be evidenced by the signature of the City Manager of the Loan Documents, a.
where designated. All Loan Documents shall be executed, acknowledged, where d
designated,and completed by the Qualified Homeowner and by the Contractor;
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(D) no fees, charges or expenses shall be payable by any applicant to the Contractor =
or to the City for a Loan, nor shall the Contractor charge a Qualified Homeowner for any v
cost or service in connection with the origination or subsequent administration of the ti
Loan during the time the Improvements and/or the Work is constructed, installed, N
performed and/or completed at the Home, except for the Maintenance Class fee payable w
to the Contractor, or as authorized under the Program by the City Manager; N
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(E) upon confirmation by the Contractor that the Loan Documents for the Program E
are executed and complete and that the Deed of Trust and the Maintenance Agreement
Covenant (and any other documents to be recorded in the County Recorder's Office) are
ready for recordation in the County Recorder's Office. The Contractor shall coordinate 0-
the issuance of the policy of title insurance in favor of the City by the title insurance
company with the recordation of the Deed of Trust and of the Maintenance Agreement W
Covenant; U_
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(F) deliver a fully executed and acknowledged, where designated, original set of the
Loan Documents for each Loan (except for the Deed of Trust and for the Maintenance Q
Agreement Covenant which documents shall be recorded by the Contractor on behalf of
the City in the County Recorder's Office)to the City upon request for reimbursement;
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(G) verify that Loan Funds are used to pay a state-licensed General Contractor and/or ^
state-licensed subcontractor for the Improvements and/or for the Work constructed,
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installed, performed and/or completed at the Home pursuant to the General Contractor
Agreement (less a ten percent (10%) retention pending completion of the Improvements
and/or of the Work and final executed written release of all mechanics and materials liens
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from the General Contractor and/or from all subcontractors); w
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(H) prepare and maintain a Loan Funds reimbursement ledger for all payments z
authorized and made by the Contractor to the General Contractors and/or to the E
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subcontractors for the account and debit to each Qualified Homeowner under each Loan
made by the City to or for the benefit of the Qualified Homeowner in accordance with °
this Agreement. Such ledger shall show each payment by date and reference the 0.
particular Loan, the Loan Documents and the name of the Qualified Homeowner to c
which it corresponds. Such ledger shall also include a monthly starting and ending W
balance for the Loan, a final reconciliation of the adjusted balance of each Loan upon the
completion of the Improvements and/or of the Work, and such other accounting �,
information as the 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 ,M
of the next month following the date of the initial Loan Funds approval by the Contractor 2
and/or the City;
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(I) No Improvements and/or Work shall be authorized for payment by the Contractor
unless the Loan Documents are complete and the Contractor has received a fully a.
executed copy of the General Contractor Agreement by and between the General a
Contractor and the Qualified Homeowner. Once the Improvements and/or the Work has -Ma
commenced on a particular Home, neither the Qualified Homeowner, the General o
Contractor nor the subcontractor shall authorize an amendment or modification of such o
contract to include any item of Work, which is not eligible for payment using the Loan v
Funds under the terms and conditions of the Loan under the Program. Each such contract ti
by and between the General Contractor and the Qualified Homeowner, the General N
Contractor and the subcontractor, and/or the subcontractor and the Qualified Homeowner w
shall include a section, which recites the words of the first two (2) sentences of this co
Section 3(l). z
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(J) Contractor at its expense shall provide a dedicated and trained staff member to
administer the Services and the Program described in this Agreement for the term of this °
Agreement; a
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(K) The Contractor represents, warrants and covenants that the Contractor shall W
reserve membership on the Contractor's board of directors to one(l) or more individuals U_
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who reside in the City of San Bernardino, County of San Bernardino, State of California,
as required by applicable Laws,City, or as necessary, for the term of this Agreement. Q
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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 C
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I
assure expeditious completion and to best carry out the purposes of the Program and this �
Agreement. All Services required hereunder shall begin upon the execution of this Agreement. N
4-
Section 5. TERM OF AGREEMENT. This Agreement shall take effect upon the °
approval by the governing board of the City and the complete execution by the parties (the
"Effective Date"). The Agreement shall remain in effect through June 30, 2016, subject to w
annual approval by the City in its sole discretion and the appropriation by the United States co
Department of Housing and Urban Development("HUD"). Z
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Section 6. COMPENSATION PAYABLE BY CITY TO CONTRACTOR. t°
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(A) The City shall annually compensate the Contractor for the performance of the a.
Services using the HOME Funds in accordance with the following schedule: �
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10%of the Loan Funds disbursed Annual Program Administration Fee for N
by the Contractor not to exceed an CONTRACTOR =
annual amount of $70,000
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$630,000 Single Family Residence Rehabilitation Loan as
Program =
70 000
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(B) From and after the Effective Date of this Agreement and for the remaining term of a.
this Agreement, the Program Administration Fee payable by the City to the Contractor as
compensation for Services performed by the Contractor under this Agreement shall be paid by
the City directly to the Contractor upon receipt by the City of a corrected invoice and the Loan o
Funds disbursement ledger(the"Loan Funds Disbursement Ledger")which shows all Loan Fund o
payments authorized by the City and disbursed by the Contractor to the General Contractors v
and/or to the subcontractors under this Agreement for which the Contractor has not been paid by
the City. The Contractor may not invoice the City more than once per month for the Loan Funds
disbursed by the Contractor under this Agreement and the City shall pay to the Contractor the
w
correct amount identified on the invoice within thirty (30) calendar days after the receipt by the N
City of the following: (i)a corrected invoice, and (ii)the Loan Funds Disbursement Ledger. The Z
Program Administration Fee shall be 10% of the Loan Funds disbursed by the Contractor under E
this Agreement and shall not exceed Seventy Thousand Dollars ($70, 000), in the aggregate, for
any given year. o
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(C) Notwithstanding the foregoing, in the event the Contractor exceeds twenty -two c
(22) Loans in any given year, additional Loan Funds will need to be procured in order to fund
any additional Loans made by the Contractor under this Agreement. The City will exercise its Cn
reasonable efforts to amend this Agreement, in writing, and to obtain additional Loan Funds to E
fund additional Loans, in excess of twenty-two (22) Loans, by the Contractor for that year. The
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City makes no warranty, no representation and no covenant to the Contractor that the City will
be able to obtain any additional Loan Funds to fund any additional Loans under this Agreement.
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Section 7. PERSONNEL OF CONTRACTOR. The Contractor represents that it LO
has, or will secure at its own expense, all personnel required to perform the Services. All of the N
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 competent and qualified to perform such Services. w
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Section 8. INDEPENDENT CONTRACTOR. All acts of the Contractor and all in
others acting on behalf of the Contractor relating to the performance of this Agreement, shall be z
performed as independent contractors and not as agents, officers, or employees of the City. The E
Contractor has no authority to bind or incur any obligation on behalf of the City. The Contractor a,
has no authority or responsibility to exercise any right or power vested in the City. No agent, °
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officer, or employee of the City shall be considered an agent or employee of the Contractor. It is
understood by both the Contractor and the City that this Agreement shall not under any
circumstance be construed or considered. to create an employer-employee relationship or a joint
venture as between the Contractor and the City. The Contractor is and at all times during the v°>'
Term of this Agreement shall represent and conduct itself as an independent contractor and not �,
as an agent or employee of the City. The Contractor shall be responsible to the City only for the
requirements and results specified in this Agreement, and except as expressly provided in this Ui
Agreement, shall not be subject to control by the City with respect to the physical action or
activities of the Contractor in fulfillment of this Agreement. The Contractor has control over the
manner and means of performing the Services under this Agreement so long as consistent with N
the requirements of the Program. The Contractor is permitted to provide services to others
during the same period Services are provided to the City under this Agreement. If necessary,the a
Contractor has the responsibility for employing other persons or firms to assist the 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 the Contractor, such persons shall N
be entirely and exclusively under the direction, supervision, and control of the Contractor. All
terms of employment including hours, wages, working conditions, discipline, hiring, and v
discharging or any other term of employment or requirements of law shall be determined by the
Contractor. The Contractor hereby agrees to indemnify, defend (if requested by City), protect N LO
and hold the City harmless from any and all claims that may be made against the City or based w
upon any contention by any employee of the Contractor or by any third party that an employer- Fn
employee relationship or joint venture exists between any person or entity and the City, by Z
reason of the performance of any of the Services under this Agreement. E
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Section 9. COMMERCIAL GENERAL LIABILITY INSURANCE °
AUTOMOBILE INSURANCE, WORKERS' COMPENSATION INSURANCE
EMPLOYER'S LIABILITY INSURANCE, ERRORS AND OMISSIONS AND
PROFESSIONAL LIABILITY INSURANCE.
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(A) The Contractor shall obtain and keep in force during the term of this Agreement,
at its sole cost and expense, the following insurance policies: 0) a commercial general liability a'
Q
policy of insurance with coverage at least as broad as "Insurance Services Office Commercial
General Liability Form (G0001)", in the amount of One Million Dollars ($1,000,000) combined
single limit per occurrence, naming the City and the City and the elected officials, officers,
employees, attorneys and agents of each of them as additional insureds (collectively, the 0
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Additional Insureds ) with said insurance covering comprehensive general liability including, --
but not limited to, contractual liability, assumed contractual liability under this Agreement, acts N
of subcontractors, premises-operations, explosion, collapse and underground hazards, if
applicable, broad form property damage, and personal injury including libel, slander and false °4.
arrest, (ii) comprehensive automobile liability insurance covering owned, non-owned and hired
vehicles by or for the Contractor, combined single limit in the amount of One Million Dollars w
w
($1,000,000) per occurrence, naming the Additional Insureds as additional insureds an each �
automobile insurance policy, (iii) workers' compensation insurance in such insurance coverage z
amounts as statutorily required, or similar insurance in form and amounts required by law, and E
employer's liability insurance, combined single limit in the amount of One Million Dollars
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($1,000,000), and (iv) errors and omissions and professional liability, combined single limit in o
the amount of One Million Dollars ($1,000,000)per occurrence. °-
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(B) Any and all insurance policies required hereunder shall be obtained from
insurance companies admitted in the State of California and rated at least A: XII in the most °!
current Best's Key Rating Insurance Guide. In no event shall the Contractor be permitted or =
entitled to assign to any third party rights of action, which the Contractor may have against the
City. All said insurance policies shall provide that they may not be canceled unless the City LL
receive written notice of cancellation at least thirty (30) calendar days prior to the effective date as
of cancellation. Any and all insurance obtained by the Contractor shall be primary to and shall c
not be contributing with any insurance carried by the City or by the City whose insurance shall co
be considered excess insurance only. Any insurance which the City and/or City may otherwise
carry, including self insurance, for all purposes of this Agreement shall be separate and apart a
from the requirements of this Agreement. Legal counsel for the City must approve each
insurance policy required in Section 10(A) of this Agreement. The Contractor waives
subrogation and agrees that the Contractor, the City are co-insured. The insurer shall have no 6
right of subrogation, against the City or against any of the other Additional Insureds. The c
Additional Insureds shall be named as additional insureds on each insurance policy. v
n.
(C) All insurance which the Contractor shall carry or maintain pursuant to this Section to
10 shall be in such form, for such amounts, for such periods of time as the City may require or
i approve.
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(D) The Contractor shall deliver or cause to be delivered to the City concurrently E
upon the execution of this Agreement an endorsement of the insurance policies required in this M
Section I O(A) of this Agreement evidencing the existence of the insurance coverage required by 0-
0
the City under Section 10(A) of this Agreement and shall also deliver, no later than thirty (30) a.
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calendar days prior to the expiration of any insurance policy, a certificate of insurance =
evidencing each renewal policy covering the same risks. The City may request the Contractor to
provide, and the Contractor shall immediately provide, additional or greater insurance, in such
amounts and with such deductibles as reasonably determined by the City,at the cost and expense
of the Contractor. E
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Section 10. INDEMNIFICATION. c
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6.F.b
(A) The Contractor agrees to indemnify, defend with legal counsel reasonably
acceptable to the City, protect and hold the City and their respective elected officials, directors,
N
officers, members, managers, consultants, contractors, employees, agents and attorneys, and the
successors and assigns of each of them (singularly and collectively, the "Indemnified Parties" °
which defined term shall also includes the City), harmless from and against all actions, causes of w
action, claims, demands, liabilities, damages, losses, liabilities, obligations, judgments, suits,
costs, expenses and fees (including, without limitation, reasonable attorneys' fees, court costs CO
and expert fees of any nature whatsoever), now or hereafter arising from or related to: (i) any act z
or omission of the Contractor and/or of any of the Contractor's directors, officers, members, E
managers, consultants, contractors, subcontractors, materialmen, laborers, any other person or la
entity furnishing or supplying work, services, goods, or supplies in connection with the °
performance of this Agreement, employees and agents, and the successors and/or assigns of each 0
of them (singularly and collectively, the "Indemnifying Parties" which defined term shall also .c
include the Contractor), in performing, or failing to perform, its obligations hereunder, (ii) any W
default by the Contractor under this Agreement, subject to any applicable cure period, (iii) any N
violation by any of the Indemnifying Parties of any Laws, (iv) any warranty or representation =
made b the Contractor to the City �'
y y in this Agreement that is or becomes false and untrue, (v)
death, bodily injury and/or personal injury to any person, (vi) any destruction, loss or damage to LL
real property or personal property, (vii) the presence of any Hazardous Substances at, on, in, °
above, under or about any Home owned by a Qualified Homeowner resulting, directly or c
indirectly, from the acts or omissions of any Indemnifying Parties, and/or (viii) the aggravation
of any environmental condition by any Indemnifying Parties at, on, in,above, under or about any
Home owned by a Qualified Homeowner. Without limiting the Contractor's indemnification of a
the Indemnified Parties, the Contractor shall provide and maintain, at its sole cost and expense d
during the term of this Agreement, the insurance described in Section 10(A) of this Agreement.
Such insurance shall be provided by insurer(s) satisfactory to the City and evidence of such o
insurance satisfactory to the City shall be delivered to the City Manager no later than the o
effective date of this Agreement. v
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(B) The City shall indemnify, defend (if requested by the Contractor) and hold N
harmless the Contractor, its agents, officers, and employees, from all claims, loss, demands and
liability for damages for personal injury, bodily injury or property damage suffered by reason of w
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any act or omission of the City or any of its officers or employees or agents under this =
Agreement except where such action or omission giving rise to such a claim is caused by or is E
the result of an action, omission or request of the Contractor and/or of any of the other
Indemnifying Parties, or is alleged to arise out of the execution of this Agreement. The
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provisions of Section l l(A) and Section 1 l(B) shall survive the execution, delivery,
performance, expiration or early termination of this Agreement.
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Section 11. DEFAULTS AND BREACH - GENERAL. The failure or delay by y
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
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other party commences to cure, correct or remedy the alleged default within thirty(30) calendar Q
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. A default
shall also occur under this Agreement whenever a representation and/or warranty made in this w
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Agreement is or becomes false or untrue. A default shall also occur under this Agreement
whenever a party files, or has filed against it,a petition in bankruptcy, is or becomes insolvent, is N
unable to pay its debts as they mature, assigns its assets for the benefit of creditors, or a receiver,
trustee or custodian is appointed by a court to exercise control over all or substantially all of the °
assets of the party and such receiver, trustee or custodian is not discharged by the court within w
sixty (60) calendar days after said appointment date. The party which may claim that a default w
has occurred shall give written notice of default to the party in default specifying the alleged rn
default. Delay in giving such notice shall not constitute a waiver of any default nor shall it z
change the time of default; provided, however, the injured party shall have no right to exercise E
any remedy for a default hereunder without delivering the written default notice as specified
herein. Any failure or delay by a party in asserting any of its rights and remedies as to any o&-
default shall not operate as a waiver of any default or of any rights or remedies associated with a CL
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 W
different times, of any other rights or remedies for the same default or any other default by the y
other party. In the event that a default of either party may remain uncured for more than thirty M,
(30) calendar days following written notice, as provided above, a "breach" shall be deemed to •9
have occurred. In the event of a breach, the party who is not in default shall be entitled to ,M
terminate this Agreement and seek any appropriate remedy or damages by initiating legal Q
proceedings. If any action or proceeding is brought to enforce the terms hereof or declare rights c
hereunder, it shall be brought in the Superior Court of the County of San Bernardino, San CO
0 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 Iegal a
proceedings shall be entitled to recover as an element of its costs of bringing such suit,and not as a
part of its damages, its reasonable attorneys' fees, court costs, expert witness fees and consultant a
fees and costs. The costs, salary and expenses of the City Attorney and members of his office in o
such action or proceeding on behalf of the City shall be considered as "attorneys' fees" for
purposes of this Section. 0
Section 12. NONDISCRIMINATION. During the Contractor's performance of the LO
Services, the Contractor shall not discriminate on the grounds of race, religion, creed, color,
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national origin, g , ry,physical handicap, medical condition, marital status, sex, or sexual CO
orientation in the performance of the Services, including, without limitation, in the selection and z
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retention of employees, General Contractors and subcontractors and the procurement of materials E
and equipment, except as provided in Section 12940 of the California Government Code.
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Section 13. CONFLICT OF INTEREST. The Contractor warrants, by execution of CL
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this Agreement, that it has no interest, present or contemplated, in the Program or in any Home c
benefited thereby or Work performed on any Home using the Loan and the Loan Funds. The
Contractor further warrants that it owns or possesses no interest in real property, business U)
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interests or owner of income (other than such amounts of compensation payable by the City to E
the 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 a
affidavit disclosing any such interest.
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Section 14. 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 r
City Manager of the City is authorized to make non-substantive changes, clarifications, N
corrections to the Agreement, including budget line item adjustments, provided such actions are °
approved by legal counsel for the City and do not increase the City's monetary annual w
appropriation to the Contractor as approved by the governing board of the City. --
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Section 15. TERMINATION. z
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(A) This Agreement may be terminated for any reason by either party who is not then
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in default upon ten (10) calendar 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. _
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(B) In the event of a termination of the Agreement as a result of a breach, the rights °1
and duties of the parties shall be as set forth in Section 12. _
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(C) In the event of any termination of this Agreement, the Contractor shall promptly LL
return all Loan Funds that have been disbursed by the City to the Contractor with the exception m
of any Loan Funds that have been properly disbursed by the Contractor to or for the benefit of c
one or more Qualified Homeowners under this Agreement, without charge or expense to the rn
City. _
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Section 16. ASSIGNMENT. It is mutually understood and agreed that this �
Agreement shall be binding upon the City and its successors and assigns and upon the Contractor
and its successors and assigns. The City may assign this Agreement, without obtaining the prior .o
consent or approval of the Contractor. The Contractor may not assign this Agreement without c
obtaining the prior written consent of the City, which written consent may be given or withheld 0
by the City in its sole and absolute discretion. Any assignment or attempt to assign this t,
Agreement by the Contractor shall be void.
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Section 17. NOTICES. Communications, notices, bills, invoices or reports required CO
by this Agreement shall be in writing and shall be deemed to have been given when actually =
delivered, if given by hand delivery or transmitted by overnight courier service, or if mailed, Z
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three (3) business days after being deposited in the United States mail, postage prepaid, to the
address noted below: c
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City Contractor R
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City of San Bernardino Neighborhood Housing Services of
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Attention: City Manager the Inland Empire, Inc.
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300 North"D" Street, Sixth floor Attention: Director E
San Bernardino, California 92401 1.390 North"D" Street a
Phone: (909)663-1044 San Bernardinoe, California
Fax: (909) 888-9413 92405Phone: (909) 884-6891
Fax: (909) 884-6893
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Either party may change its address for receipt of written notice by notifying the other --
party in writing of a new address for delivering notice to such party.
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Section 18. REPRESENTATION AND WARRANTY OF CONTRACTOR The 0
Contractor hereby represents and warrants to the City as follows:
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(A) The Contractor is a California nonprofit corporation duly organized, existing, and
authorized to transact business in California; Z
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(B) 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 the Contractor have o
previously taken all action necessary to authorize the execution of this Agreement by the a.
Contractor; M
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(C) the Contractor is qualified to perform the Services and shall timely perform and
complete the Services in a professional manner. _
Section 19. LOAN FUNDS AND LOAN DOCUMENTS ARE THE PROPERTY E
OF THE CITY. The Loan Documents for each Loan are the property and asset of the City. 0
The Contractor has no property interest in any such Loan Documents and the Contractor shall c
not transfer, assign or pledge as collateral or claim any other security interest in any such Loan rn
Documents. All of the Loan Documents are the property of the City, and the Contractor shall
maintain all such Loan Documents in its possession as confidential consumer business records of a
the Qualified Homeowner. All Loan Funds disbursed by the City to the Contractor for the
benefit of a Qualified Homeowner are the property of the City until paid by the Contractor to the a
General Contractor upon the completion of the Work at the Home for the account of the .o
Qualified Homeowner under the applicable Loan Documents. c
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Section 20. NON-ELIGIBILITY OF HOMEOWNER. The Qualified Homeowner must file a ti
Loan Application with the Contractor should the Qualified Homeowner intend to construct, to N
install and/or to complete the Project with Loan Funds. Once the City has approved the Loan
Application for the Qualified Homeowner and for the benefit of the Qualified Homeowner under w co
this Agreement, the Qualified Homeowner now or hereafter shall have no right to apply for and =
to receive any other loan offered by the City to the general public under any loan program, until E
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ten (10) years after the date that the City has been paid the last of the loan Funds to the
Contractor for the benefit of the Qualified Homeowner under this Agreement. o
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Section 21. GENERAL PROVISIONS. This Agreement constitutes the sole
agreement between the parties. All prior conversations, agreements or representations relating X
hereto are integrated in this Agreement. No oral agreement, representation or warranty shall be U_
binding upon the parties. If any provision of this Agreement shall be invalid, illegal or y
unenforceable, the validity, legality and enforceability of the remaining portions of this 0
Agreement shall not in any way be affected or impaired thereby. Failure of any party to enforce
any provision of this Agreement shall not constitute a waiver of the right to compel enforcement d
of the same provision or any remaining provisions of this Agreement. Headings at the beginning
of each section or subsection are solely for the convenience of the parties and are not a part of c
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this Agreement. Whenever required by the context of this Agreement, the singular shall include
the plural and the masculine shall include the feminine and vice versa. This Agreement shall not N
be construed as if it had been prepared by one of the parties, but rather as if all parties had
prepared the same. Unless otherwise indicated, all references to sections are to this Agreement. °
All exhibits referred to in this Agreement are attached hereto and incorporated herein by this w
reference. If the date on which any action is required to be performed under the terms of this w
Agreement is not a business day, the action shall be taken on the next succeeding business day.
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This Agreement may be executed in one or more counterparts each of which shall be an original Z
but all of which together shall constitute but one original Agreement. This Agreement may be E
executed by facsimile signatures, and each facsimile counterpart when taken together shall be
deemed an original Agreement. o
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CITY OF SAN BERNARDINO
SINGLE FAMILY RESIDENCE REHABILITATION LOAN PROGRAM HOME r
SUBRECIPIENT AGREEMENT N
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IN WITNESS WHEREOF,the Contractor and the City have caused this Agreement to be w
duly executed on the date first above written.
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City of San Bernardino, a
a municipal corporation
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Allen Parker, City Manager
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JAMES F. PENMAN,City Attorney in
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Neighborhood Housing Services of the Inland �•
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EXHIBIT 1
Recording Requested By:
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When Recorded Mail To: N
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City Of San Bernardino, Acting as the
Successor Housing Agency w
to the Redevelopment Agency of the w_
City of San Bernardino N
300 North D Street z
San Bernardino, CA 92418 E
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ATTN: Housing Division a
DEED OF TRUST WITH ASSIGINMENTS OF RENTS
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THIS DEED OF TRUST, made « ate» between, «PirmarysFirstName»
«Pirma sLastName» and «JointFirstName» « ointLastName» herein called TRUSTOR, E
whose address is«Address1» ((City)), «State» ((Pc stalCode», in which First American Title , Ui
herein called TRUSTEE, and the City of San Bernardino, a municipal corporation, herein d
called BENEFICIARY, Trustor irrevocably grants, transfers and assigns to Trustee in Trust, with
Power of Sale that property in City of San Berna dino, County of San Bernardino, State of T
California, described as: c
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«LotDiscribtion». The legal description of the property is attached hereto and
incorporated herein by this reference as Exhibit "A".
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Together with the rents, issues and profits thereof, SUBJECT, HOWEVER, to the right, _
power and authority given to and conferred upon Beneficiary to collect and apply such rents, v
issues and profits.
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For the Purpose of Securing: 1. Payment f the sum of $ «Amount» with interest
thereon according to the terms of a promissory note or notes of even date herewith made by
Trustor, payable to order of the Beneficiary, and extensions or renewals thereof (singularly and
collectively, the "Note"); 2. The Performance of each agreement of Trustor incorporated by W
reference or contained herein or reciting it is so secured; 3. Payment of additional sums and N
interest thereon which may hereafter be loaned to Trustor, or his or her successors or assigns, w
when evidenced by a promissory note or notes reci ing that they are secured by this Deed of =
Trust. z
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To protect the security of this Deed of Trust, and with respect to the property above
described, Trustor agrees: x
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(1) To keep said property in good condit on and repair; not to remove or demolish d
any building thereon; to complete or restore promptly and in good and workmanlike manner any
building which may be constructed, damaged or destroyed thereon and to pay when due all r
claims for labor performed and materials furnished therefore; to comply with all laws affected a
said property or requiring any alterations or improvements to be made thereon; not to commit or
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permit waste thereof; not to commit, suffer or permit any act upon said property in violation of
law; to cultivate, irrigate, fertilize, fumigate, prune and do all other acts which from the character
or use of said property may be reasonably necessary, the specific enumerations herein not
excluding the general.
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(2) To provide, maintain and deliver to Beneficiary fire insurance satisfactory to and o
with loss payable to Beneficiary. The amount collected under any fire or other insurance policy y
may be applied by Beneficiary upon any indebtedness secured hereby and in such order as w
Beneficiary may determine, or at option of Beneficiary the entire amount so collected or any part w
thereof may be released to Trustor. Such application or release shall not cure or waive any N
default or notice of default hereunder or invalidate any act done pursuant to such notice. z
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(3) To appear in and defend any action or proceeding purporting to affect the
security hereof or the rights or powers of Beneficiary or Trustee; and to pay all costs and °
expenses, including cost of evidence of title and attorneys' fees in a reasonable sum, in any
such action or proceeding in which Beneficiary or Trustee may appear, and in any suit brought
by Beneficiary to foreclose this Deed of Trust. W
(4) To pay: at least ten days before delinquency all taxes and assessments affecting =
said property, including assessments on appurtenant water stock; when due, all encumbrances,
charges and liens, with interest, on said property or any part thereof, which appear to be prior or
superior hereto; all costs, fees and expenses of this Deed of Trust. U.
Should Trustor fail to make any payment or to do any act as herein provided, then CO
Beneficiary or Trustee, but without obligation so to do and without notice to or demand upon =
Trustor and without releasing Trustor from any obligation hereof, may: make or do the same in 2
such manner and to such extent as either may deem necessary to protect the security hereof, "0
Beneficiary or Trustee being authorized to enter upon said property for such purposes; appear
in and defend any action or proceeding purporting to affect the security hereof or the rights or
powers of Beneficiary or Trustee; pay, purchase, contest or compromise any encumbrance,
charge or lien which in the judgment of either appears to be prior or superior hereto; and, in o
exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable
fees. The costs, salary and expenses of the City Attorney and members of his office in
enforcing this deed of trust on behalf of the Beneficiary shall be considered as "attorneys' fees" N
for the purposes of this paragraph. —�
(5) To pay immediately and without demand all sums so expended by Beneficiary or
Trustee, with interest from date of expenditure at the amount allowed by law in effect at the date U-
hereof, and to pay for any statement provided for by law in effect at the date hereof regarding w
the obligation secured hereby any amount demanded by the Beneficiary not to exceed the 0)
maximum allowed by law at the time when said statement is demanded. 1:
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(6) That any award of damages in connection with any condemnation for public use
of or injury to said property or any part thereof is hereby assigned and shall be paid to X
Beneficiary who may apply or release such moneys received by him in the same manner and W
with the same effect as above provided for disposition of proceeds of fire or other insurance.
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(7) That by accepting payment of any sum secured hereby after its due date, 0
Beneficiary does not waive his right either to require prompt payment when due of all other a
sums so secured or to declare default for failure so to pay.
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(8) That at any time or from time to time, without liability therefore and without notice,
upon written request of Beneficiary and presentatipn of this Deed of Trust and said note for
endorsement, and without affecting the personal ((liability of any person for payment of the
indebtedness secured hereby, Trustee may: reconvey any part of said property; consent to the LO
making of any map or plat thereof; join in granting any easement thereon; or join any extension N
agreement or any agreement subordinating the lien or charge hereof. o
(9) That upon written request of Benefi iary stating that all sums secured hereby w
have been paid, and upon surrender of this Deed a d said note to Trustee for cancellation and _w
retention and upon payment of its fees, Trustee shall reconvey, without warranty, the property N
then held hereunder. The recitals in such reconveyance of any matters or facts shall be z
conclusive proof of the truthfulness thereof. The grantee in such reconveyance may be E
described as "the person or persons legally entitled thereto." Five years after issuance of such
full reconveyance, Trustee may destroy said note and this Deed of Trust (unless directed in a
such request to retain them).
(10) That as additional security, Trustor hereby gives to and confers upon Beneficiary
the right, power and authority, during the default by Trustor in payment of any indebtedness
secured hereby or in performance of any agreeme it hereunder, to collect and retain either in =
person, by agent, or by a receiver to be appointed by a court, and without regard to the
adequacy of any security for the indebtedness hereby secured, enter upon and take possession
of said property or any part thereof, in his own name sue for or otherwise collect such, rents,
issues, and profits, including those past due and u paid, and apply the same, less costs and
expenses of operation and collection, including reasonable attorneys' fees, upon any U)
indebtedness secured hereby, and in such order as eneficiary application thereof as aforesaid, _
shall not cure or waive any default hereunder or invalidate any act done pursuant to such notice. f°
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(11) That upon default by Trustor in paym ant of any indebtedness secured hereby or !
in performance of any agreement hereunder, Benefi iary may declare all sums secured hereby
immediately due and payable by delivery to Trustee of written declaration of default and
demand for sale and or written notice of default and of election to cause to be sold said o
property, which notice Trustee shall cause to be file J for record. Beneficiary also shall deposit
with Trustee this Deed of Trust, said note and all d cuments evidencing expenditures secured
hereby. After the lapse of such time as may then be required by law following the recordation of N
said notice of default, and notice of sale having been given as then required by law, Trustee,
without demand on Trustor, shall sell said property at the time and place fixed by it in said notice
of sale, either as a whole or in separate parcels, and in such order as it may determine, at public
auction to the highest bidder for cash of lawful money of the United States, payable at time of U-
sale. Trustee may postpone sale of all or any portion of said property b y public announcement CO
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at such time and place of sale, and from time to time thereafter may postpone such sale by cn
public announcement at the time fixed by the proceeding postponement. Trustee shall deliver z
to such purchaser its deed conveying the property so sold, but without any covenant or r
warranty, express, or implied. The recitals in such deed of any matters or facts shall be a
conclusive proof of the truthfulness thereof. Any person, including Trustor, Trustee, or x
Beneficiary as hereinafter defined, may purchase at such sale. After deducting all costs, fees w
and expenses of Trustee and of this Deed of Tr st, including cost of evidence of title in
connection with sale, Trustee shall apply the procee s of sale to payment of: all sums expended E
under the terms hereof, not then repaid, with accrued interest at the amount allowed by law in
effect at the date hereof; all other sums then secured hereby; and the remainder, if any, to the Q
person or persons legally entitled thereto.
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(12) Beneficiary, or any successor in ownership of any indebtedness secured hereby,
may from time to time, by instrument in writing, substitute a successor or successors to any
Trustee named herein or acting hereunder, which instrument, executed by the Beneficiary and
duly acknowledged and recorded in the office of the recorder of the county or counties where
said property is situated, shall be conclusive proof of proper substitution of such successor N
Trustee or Trustees, who shall, without conveyance from the Trustee predecessor, succeed to 0
all its title, estate, rights, powers and duties. Said instrument must contain the name of the N
original Trustor, Trustee and Beneficiary hereunder, the book and pages where this Deed of w
Trust is recorded and the name and address of the new Trustee. W
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(13) That this Deed of Trust applies to inure to the benefit of, and binds all parties z
hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The E
term Beneficiary shall mean the owner and holder, including pledges, of the note secured
hereby, whether or not named as Beneficiary herein. In this Deed of Trust, whenever the a
context so requires, the masculine gender includes the feminine and/or neuter, and the singular a.
number includes the plural.
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(14) That Trustee accepts this Deed of Trust when this Deed of Trust, duly executed
and acknowledged, is made a public record as provided by law. Trustee is not obligated to =
notify any party hereto of pending sale under any other Deed of Trust or of any action or 21
proceeding in which Trustor, Beneficiary or Trustee shall be a party unless brought by Trustee. LL
Beneficiary may charge for a statement regarding the obligation secured hereby,
provided the charge thereof does not exceed the maximum allowed by laws. N
The undersigned Trustor, requests that a copy of any notice of default and any notice of
sale hereunder be mailed to him or her at his or her address hereinbefore set forth. a
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STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO
ON 20 , before me, Ln
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personally appeared o
«SignaturePrimarysname»
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«Signaturejointname» w
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) _
is/are subscribed to the within instrument and acknowledged to me that he/she/they executed Z
the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the M
instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the o
instrument. L
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I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal. _
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REQUEST FOR FULL RECONVEYANCE `�
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TO: FIRST AMERICAN TITLE TRUSTEE:
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The undersigned is the legal owner and holder of all indebtedness secured by the within W
Deed of Trust. All sums secured by said Deed of Trust have been fully paid and satisfied; and i
you are hereby requested and directed, on payment to you of any sums owing to you under the Z
terms of said Deed of Trust, to cancel all evidences of indebtedness, secured by said Deed of E
Trust, delivered to you herewith, together with the said Deed of Trust, and to reconvey, without o
warranty, to the parties designated by the terms of said Deed of Trust, all the estate now held by a
you under the same.
Dated
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By:
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Please mail Reconveyance to: a.
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Do not lose or destroy this Deed of Trust OR THE NOTE which it secures. Both originals must
be delivered to the Trustee for cancellation before reconveyance will be made. 0
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Provisions for Deed of Trust
(Due on Sale Provisions) ,.
In the event that the Trustor should sell, transfer, or otherwise convey the real property `"
securing the Note, whether voluntarily or by operation of law, or as a result of the death of the o
Trustor, and whether by deed, contract of sale, or otherwise, or the agreement to do so, at any
time within the first ten (10) years after the execution by the Trustor of the Note, or the W_
refinancing by the Maker of the loan evidenced by the Note and secured by this Deed of Trust W
or of a note and deed of trust encumbering the property described in Exhibit "A" and senior to =
the Note and to the Deed of Trust, then all obligations secured by the Note, irrespective of the z
maturity dates expressed therein, shall, at the option of the Beneficiary become immediately E
due and payable. o
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In the event that the real property securing the Note which is now or hereafter may be
encumbered by this Deed of Trust shall cease to be the Trustor's primary residence, irrespective
of the maturity dates expressed in the Note, shall, at the option of the Beneficiary, immediately
become due and payable.
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In the event that the Trustor shall further encumber the real property securing the Note,
or otherwise cause a reduction in priority which this Deed of Trust securing the Note enjoys as
of the date of its recordation, then all obligations secured by the Note, irrespective of the
maturity dates express therein, shall, at the option of the Beneficiary, immediately become due
and payable.
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Legal Description
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Single Family Rehabilitation Loan Program
EXHIBIT 2
Neighborhood Housing Services of U3
the Inland Empire 4-
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SINGLE FAMILY REHABILITATION LOAN PROGRAM w
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GENERAL CONTRACTOR AGREEMENT
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File No: «FileNo» Z
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Owner(s): IM
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Rehab Address: a.
THIS AGREEMENT is made this day of by and between hereinafter called
the "Owner(s)" hereinafter called the "Contractor". a,
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WITNESSETH, that the Contractor and the Owner(s) for the consideration stated herein agree
as follows: R
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1. RECITALS: This Agreement is made and entered into with respect to the following facts:
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a) That the City of San Bernardino (the "City") has a program to help low-moderate income c
resident-owners of single family homes (which shall not include any duplex, triplex or four-plex a
dwellings) make certain improvements to their homes, called the Single Family Rehabilitation 0
Loan Program; and,
b) Neighborhood Housing Services of the Inland Empire (the "NHSIE') has contracted with the
City to administer said rehabilitation loan program, pursuant to applicable laws; and,
c) Owner has determined to participate in such program by causing certain improvements to be cc
made to his/her property, and has qualified for a grant to undertake such improvements; and,
d) Contractor attests that its company is properly licensed and fully qualified to perform the work o
proposed to be accomplished in this Agreement, under terms and conditions hereinafter set N,
forth; and, .0
e) Owner and the Contractor acknowledge and agree that the NHSIE and the City are third party 2
beneficiaries of this Agreement, consistent with the NHSIE mission of housing rehabilitation. W
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2. CONSIDERATION: THE UNDERSIGNED CONTRACTOR proposes to furnish labor and materials, w
complete in accordance with the specifications attached hereto as Exhibit 'A"and incorporated herein =
by this reference for the sum of ($ ), with payments to be made z
within ninety (90) calendar days from the completion of the work, subject to any additions and C4
deductions as provided herein. :a
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3. WORK: Contractor agrees to complete all work in accordance with the contract documents, all
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applicable laws, and in a workmanlike manner, according to generally acceptable, standard building d
practices. Any alteration or deviation from the attached specifications will be executed only upon E
written consent of the property Owner(s), the Contractor, and the NHSIE. All materials are guaranteed @
to be as specified. No extra charges or costs will be paid. Contractor will be solely liable if he/she a
has neglected to properly evaluate the extent of the rehabilitation work. The performance under this
Agreement is subject to forced delays when due to strikes, accidents or acts of God.
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Single Family Rehabilitation Loan Program
4. INDEMNIFICATION: The Contractor agrees to indemnify, defend and hold harmless the NHSIE,
the City and their authorized officers, members, directors, employees, agents, contractors,
subcontractors and volunteers (collectively, the "Indemnified Parties") from any and all claims, actions,
losses, damages, suits, fees (including, without limitation, reasonable attorneys' fees, court costs,
expert witness fees and consultant fees), obligations and/or liabilities (singularly, a "Claim" and `•'
collectively, the "Claims"), now or hereafter arising out of this Agreement from any cause whatsoever, o
including acts, errors or omissions of any person and for any costs or expenses incurred by the
NHSIE, by the City and/or by any of the other Indemnified Parties on account of any Claim therefore, w
except where such indemnification is prohibited by law. This indemnification provision shall survive w_
the execution, the performance, the termination and the expiration of this Agreement. rn
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5. INSURANCE: Without in anyway affecting the indemnity herein provided and in addition thereto, E
the Contractor shall secure and maintain throughout the term of Agreement, and shall continue one (1) c,
year after the performance by the Contractor of the work under this Agreement, the following types of a
insurance:
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a. Workers' Compensation — a program of Workers' Compensation insurance or State- 02,
approved Self Insurance Program in amount or form to meet all applicable requirements of the 0
Labor Code of the State of California, including Employer's Liability with $1,000,000 limits,
covering all persons providing services on behalf of the Contractor and all risks to such
persons under this Agreement.
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b. Comprehensive General and Automobile Liability Insurance — This coverage to include, c
without limitation, comprehensive general liability policy of insurance with coverage at least as 65
broad as "Insurance Services Office Commercial General Liability Form (G0001), in the amount =
not less than $1,000,000 combined single limit per occurrence, with said insurance covering a
comprehensive general liability including, but not limited to, contractual liability, assumed
contractual liability under this Agreement, acts of subcontractors, premises-operations,
explosion, collapse and underground hazards, if applicable, broad form property damage,
bodily injury and personal injury including libel, slander and false arrest and automobile liability
coverage on owned, hired and non-owned vehicles. c
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c. Errors and Omissions Liability Insurance — Combined single limits of $1,000,000 and
$2,000,000 in the aggregate or Professional Liability insurance with limits of at least N
$1,000,000 per claim or occurrence.
6. ADDITIONAL NAMED INSURED, PRIMARY INSURANCE AND BEST'S KEY RATING: All
policies, except for the Workers' Compensation, the Errors and Omissions and the Professional u-
Liability policies shall contain additional endorsements naming the NHSIE, the City and the other W
Indemnified Parties as additional named insureds with respect to liabilities arising out of the in
performance of the services hereunder. All insurance obtained by the Contractor shall be primary to z
and shall not be contributing with any insurance carried by the NHSIE, by the City and/or by any of the N
other Indemnified Parties. All insurance policies required under this Agreement shall be obtained from
insurance companies admitted in the State of California and rated at least A: XII in the most current X
Best's Key Rating Insurance Guide. W
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7. WAIVER OF SUBROGATION OF RIGHTS: Except for Errors and Omissions Liability, the E
Contractor shall require the insurance carriers of the above required coverage's to waive all rights of
subrogation against the NHSIE, against the City and against the other Indemnified Parties. a
8. PROOF OF COVERAGE: Contractor shall immediately furnish certificates of insurance to the
NHSIE and to the City evidencing the insurance coverage, including endorsements, above required
2
Packet Pg. 681'
6.F.d
Single Family Rehabilitation Loan Program
prior to the commencement of performance of the services hereunder, which certificates shall provide
that such insurance shall not be terminated or expire without thirty (30) calendar days prior written
notice to the NHSIE and to the City, and the Contractor shall maintain such insurance from the time
the Contractor commences performance of services hereunder until one (1) year after the completion
of such services. Within sixty (60) calendar days fter the commencement of this Agreement, the N
Contractor shall furnish the NHSIE and the City with certified copies of the policies and all 4o-
endorsements.
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9. INSURANCE REVIEW: The above insurance requirements are subject to review by the NHSIE, w
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10. ACCEPTANCE & START: The bid and propo al shall be accepted by the Owner(s) and by the Z
NHSIE within sixty (60) calendar days from the date established by the NHSIE for its receipt, provided E
that no work shall be commenced by the Contractor until a written Notice to Proceed has been issued `0-
by the Owner(s). Work will begin no later than ten 10) calendar days after the Notice to Proceed is a
issued. Contractor will not assign this Agreement wit hout the prior written consent of the Owner(s) and
of the NHSIE. Any request for assignment shall be a dressed to the NHSIE.
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11. PERMITS: Contractor shall procure all City of San Bernardino and all other governing authority y
permits and licenses, including a municipal business license, and shall pay all charges and fees for the =
same, and shall give all notices necessary and incidental to the due and lawful prosecution of the work
as it separately pertains to each party. Permits and licenses required for corresponding elements of M
the work to be performed shall be obtained prior to commencing such work and all associated costs
are specifically included in the contract amounts.
12. CHANGE ORDERS: No change in the work, s described in the Work Write-up, shall be made
except upon the mutual written consent of the Owner(s), the Contractor and the NHSIE. Contractor is
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not authorized to deviate from the Work Write-up or specifications unless so directed in writing by the -a
NHSIE. Any Change Orders shall describe the nature of the additional work, the estimated time for
completion thereof, and the compensation to be paid to the Contractor for the performance of same.
6
13. OWNER(S) EXPECTATIONS: Owner(s) will p rmit the Contractor to use existing utilities at no 0
cost, such as lighting, heating, power and water, as needed to carry out the work. Owner(s) will
cooperate with the Contractor to facilitate work performance, including the removal and replacement of o
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rugs, coverings, miscellaneous household goods anc furniture as necessary, unless otherwise noted.
14. CONTRACTOR EXPECTATIONS: Contractor v4I keep the premises clean and orderly during the s
course of the daily work and will remove all debris at the completion of the work. Materials and W
equipment which belong to the Contractor shall be removed from the premises. Work should be N
planned so that the Owner(s) are not forced to relocate during the rehabilitation work, except under w
unusual circumstances.
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15. COMPLETION: Contractor agrees to satisfactorily complete all the work within forty-five (45)
calendar days from the noticed start date. The parties agree that time is of the essence in this :Q
Agreement. w
16. LIEN RELEASES: Contractor shall promptly pay all valid bills and charges for material, labor, or
otherwise in connection with or arising out of the construction, and shall hold the Owner(s) of the E
s
property free and harmless against all liens and clE ims of lien for labor and material, or either, filed
against the property or any part thereof, and from and against all expense and liability in connection a
therewith, including, but not limited to, court costs and attorneys' fees resulting or arising there from.
Should any liens or claim of lien be filed for reco d against the property, or should the Owner(s)
receive notice of any unpaid bill or charge in conn ction with the construction, the Contractor shall
3
Packet Pg. 682
GF.d
Single Family Rehabilitation Loan Program
forthwith either pay and discharge the same and cause the same to be released of record, or shall
furnish the Owner(s) with proper indemnity either by satisfactory corporate surety bond or satisfactory
title policy, which indemnity shall also be subject to approval of the Lien Holder. Contractor shall
furnish the Owner(s) and the NHSIE with affidavits and satisfactory releases of liens or claims for any
liens from subcontractors, laborers and suppliers for completed work or installed materials. `?
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17. NON-EXECUTION: In the event that the Owner(s) will not execute the End of Project Work R
Release, the NHSIE reserves the right to authorize payment to the Contractor for the work completed. w
The NHSIE and the Contractor must certify that all of the Contractor's work has been performed in a w
professional, workmanlike manner, and has adhered to the property specification standards. Upon the =
written approval by the NHSIE, a payment request will be forwarded to the City for release of said z
funds.
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18. WARRANTY: Contractor will guarantee work for a period of one (1) year from the date of the final A-
written acceptance of all work required by the Agreement. Furthermore, the Contractor shall furnish
the Owner(s), in care of the NHSIE, with copies of all manufacturers' and suppliers' written d
guarantees and warranties covering materials and equipment furnished under this Agreement.
Contractor will allow the NHSIE access to examine and to inspect all rehabilitation work. NHSIE shall =
have the right, but not the obligation, at all reasonable times, to inspect the books and records of the ?
Contractor pertaining to the work and to the materials which are the subject of this Agreement.
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19. NOTICES: Notices pursuant to this Agreement shall be given by personal service to the person,
or by deposit in the custody of the US Postal Service, within a sealed envelope containing the notices, 5
postage pre-paid, and addressed as listed below. Such notice shall be deemed to be received within
forty-eight (48) hours from the time of mailing, if mailed as provided above. The following information
shall be used for mailed correspondence and communications related to this Agreement: a
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20. LEAD BASE PAINT ACKNOWLEDGEMENT AND LEAD BASE PAINT DISCLOSURE: Prior to
the commencement of the work: (i) the Contractor shall deliver to the Owner the Lead Base Paint o
Disclosure and the Lead Base Paint Acknowledgement, (ii)the Owner shall execute and date the Lead c
Base Paint Acknowledgement and the Lead Base Paint Disclosure, and (iii) the Contractor shall v
deliver to both the NHSIE and to the City the Lead Base Paint Acknowledgement and the Lead Base ti
Paint Disclosure, as executed by the Owner.
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OWNER INFORMATION: CONTRACTOR DBA:
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(Owner's Name) (Contractor's Name) vi
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(Rehab Address) (Mailing Address) Z
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(City) (State) (Zip Code) (City) (State) (Zip Code) w
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(Telephone) E
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(FAX) a
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Packet Pg.683
s.F.a
Single Family Rehabilitation Loan Program
PROJECT ADMINISTRATOR: Neighborhood Housing Services of the Inland Empire (NHSIE)
1390 North D Street
San Bernardino, CA 92405
Telephone: (951) 341-6511 LO
FAX: (951) 341-6514 N
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - O
ACCEPTANCE AND SIGNATURES
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CONTRACTOR: Date: w
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OWNER(S): Date: z
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THE ABOVE AGREEMENT HAS BEEN REVIEWED AND APPROVED
For NHSIE: Date:
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Single Family Rehabilitation Loan Program
Exhibit "A"
Work Specifications
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NEIGHBORHOOD
HOUSING SERVICES
OF THE INLAND EMPIRE,INC
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Neighborhood Housing Services of the Inland Empire N
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1390 North D Street San Bernardino, CA 92405/Phone (909) 884-6891/Fax(909) 884-8899/ w
www.NHSIE.or� w
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SINGLE FAMILY RESIDENCE REHABILIATION LOAN PROGRAM 0
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HOMEOWNER'S RELEASE AND WAIVER
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Owner of the property located at: _
Print Your Name '
San Bernardino, California do hereby approve and -
Address a,
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grant Inland Housing Development Corporation (NHSIE) the following: N
PERMISSION TO PHOTOGRAPH a
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1. The undersigned hereby grants Permission to NHSIE to photograph or video tape the property, o
residence, and other out buildings, such as garages, sheds, etc. for the purpose of inspection records, o
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job progress, before-and-after shots, and for file documentation. I understand and approve that this ti
material may also be utilized for presentations, displays, advertisements or publicity to further CNI
Agency and/or NHSIE housing programs. M
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2. I waive any rights with respect to compensation or damages for use of photographs, media and videos 0:
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related to the property. W
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Owner's Signature Redevelopment Specialist :a
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Date: Date:
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EXHIBIT 4
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Lead Base Paint Pamphlet —Acknowledgement of Receipt w co
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Confirmation of Receipt of Lead Pamphlet 0
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• 1 have received a copy of the pamphlet, Renovate Right. Important Lead Hazard Information for
Families, Child Care Providers and Schools informing me of the potential risk of the lead hazard
exposure from renovation activity to be performed in my dwelling unit. I received this pamphlet
before the work began. _
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Printed name of recipient Date L
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Signature of recipient C
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Self—Certification Option (for tenant-occupied dwellings only)-
If the lead pamphlet was delivered but a tenant signature was not obtainable,
you may check the appropriate box below. o
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• Refusal to sign • I certify that I have made a good faith effort to deliver the pamphlet, 0
Renovate Right. Important Lead Hazard Information for Families, Child Care Providers,
and Schools, to the rental dwelling unit listed below at the date and time indicated and
that the occupant refused to sign the confirmation of receipt. I further certify that I have Ln
left a copy of the pamphlet at the unit with the occupant. _
• Unavailable for signature• I certify that I have made a good faith effort to deliver E
the pamphlet, Renovate Right.'Important Lead Hazard information for Families, Child �
Care providers and Schools,to the rental dwelling unit listed below and that the occupant o
was unavailable to sign the confirmation or receipt. I further certify that I have left a Y
copy of the pamphlet at the unit by sliding it under the door. a
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Printed name of person certifying Attempted delivery date; and M
Time lead pamphlet delivery. W
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Signature of person certifying lead pamphlet delivery W
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Unit Address w
Note Regarding Mailing Option • As an alternative to delivery in person, you may mail the lead
pamphlet to the owner and/or tenant. Pamphlet must be mailed at least 7 days before renovation
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6:F.g
EXHIBIT 5 LO
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To: Owners, Tenants and Purchasers of Housing Construction before 1978 w
Re: NOTIFICATION: Watch Out For Lead-Based Paint Poisoning co
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This property was constructed before 1978. There is,a possibility it contains lead-based paint. E
I Please read the following information concerning lead-based paint poisoning.
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Sources of Lead Based Paint
The interiors of older homes and apartments often have layers of lead-based paint on the walls,
ceilings, window sills, doors and door frames. Lead- ased paint and primers may also have been
used on outside porches, railings, garages, fire escapes and lamp posts. When the paint chips,
flakes or peels off, there may be a real danger for b bies and young children. Children may eat 2:1
paint chips or chew on painted railings, window sills'or other items when parents are not around.
Children can also ingest lead even if they do not specifically eat paint chips. For example, when w
children play in an area where there are loose paint chips or dust particles on their hands, put rn
their hands into their mouths, and ingest a dangerous amount of lead. co
Hazards of Lease-Based Paint
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Lease poisoning is dangerous — especially to children under the age of seven (7). It can
eventually cause mental retardation,blindness and even death.
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Symptoms of Lead-Based Paint Poisoning N
Has your child been especially cranky or irritable? Is he or she eating normally? Does your child
have stomach aches and vomiting? Does he or she complain about headaches? Is your child
unwilling to play? These may be signs of lead poisoning. Many times though, there are no N
symptoms at all. Because there are no symptoms does not mean that you should not be
concerned if you believe your child has been exposed to lead-based paint.
Advisability and Availability of Blood Lead Level Screening N
If you suspect that your child has eaten chips of paint or someone told you this, you should take °
your child to the doctor or clinic for testing. If the test shows that your child has an elevated m
blood lead level, treatment is available. Contact your doctor or local health department for help
or more information. Lead screening and treatment are available through the Medicaid Program
for those who are eligible. If your child is identified as having an elevated blood lead level, you
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should immediately notify the Community Development or other agency to which you or your ca
landlord is applying for rehabilitation assistance so the necessary steps can be taken to test your Z
unit for lead-based paint hazards. If your unit does have lad-based paint, you may be eligible for r
assistance to abate that hazard. c
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Precautions to Take to Prevent Lead-Based Paint Poi 'onin
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You can avoid lead-based paint poisoning by perfo ing some preventive maintenance. Look at d
the walls, ceilings, doors, door frames and window sills. Are there places where the paint is
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P:\Agendas\Agenda Attachments\Exhibits\2010/7.19.10 NHSIE Mobile Home Grant Program LBP Disclosure
Packet Pg.689
peeling, flaking, chipping, or powdering? If so, there are some things you can do immediately to
protect your child: N
(a) Cover all furniture and appliances;
(b) Dust containing lead can be a health hazard. DO NOT vacuum loose paint. Sweep and
damp mop; N
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(c) Sweep up all pieces of paint and plaster and put them in a paper bag or wrap them in W
newspaper. Put these packages in the trash can. DO NOT BURN THEM;
(d) Do not leave paint chips on the floor or in window wells. Damp mop floors and window Z
sills in and around the work area to remove all dust and paint particles. Keeping these 2-
areas clear of paint chips, dust and dirt is easy and very important, and; o
(e) Do not allow loose paint to remain within your children's reach since children may pick a
loose paint off the lower part of the walls. M
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Homeowner Maintenance and Treatment of Lead-Based Paint Hazards
As a homeowner, you should take the necessary steps to keep your home in good shape. Water =
leaks from faulty plumbing, defective roofs and exterior holes or breaks may admit rain and 2,
dampness into the interior of your home. These conditions damage walls and ceilings and cause
paint to peel, crack or flake. These conditions should be corrected immediately. Before L
repainting, all surfaces that are peeling, cracking, chipping or loose should be thoroughly cleaned
by scraping or brushing the loose paint from the surface, then repainted with two (2) coats of �n
non-leaded paint. Instead of scraping and repainting, the surface may be covered with other
material such as wallboard, gypsum or paneling. Beware that when lead-based paint is removed a
by scraping or sanding, a dust is created which may be hazardous. The dust can enter the body
either by breathing it or swallowing it. The use of heat or paint removers could create a vapor or
fume which may cause poisoning if inhaled over long period of time. Whenever possible, the o
removal of lead based paint should take place when there are no children or pregnant women on c
the premises. Simply painting over defective lead based paint surfaces does not eliminate the v
hazard. Remember that you as an adult play a major role in the prevention of lead poisoning.
Your actions and awareness about the lead problem can make a big difference. N
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Tenant and Homebu ey r Responsibilities E
You should immediately notify the management office or the agency through which you are
purchasing your home if the unit has flaking, chipping, powdering or peeling paint, water leaks o
from plumbing, or a defective roof. You should cooperate with that office's efforts to repair the a
unit. m
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I have received a copy of the Notice entitled: Protect Your Family From Lead in Your Home.
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Homeowner's Signature NHSIE
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P:\Agendas\Agenda Attachments\Exhibits\2010/7.19.10 NHSIE Mobile Home Grant Program LBP Disclosure
Packet Pg.690
EXHIBIT 6 For Office Use ONLY
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Application Mailed out on:
City Of San Bernardino-Neighborhood Housing Services of the Inland Empire Services,Inc. (NHSIE)
Single Family Residence Rehabilitation Loan Program Application
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Applicant's Name(Last,First,MI) Applicant's Date of Birth
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Applicant's Spouse's Name or Co-Applicant Co-Applicant's Date of Birth W
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Street Address Applicant's Phone Number
(Office Use Only) o
Map Verification a`.
ICity/Zip Date: Initials:
DO YOU HAVE ANY NOTICE OF VIOLATION WITH THE CITY OF SAN BERNARDINO CODE ENFORCEMEP W
OR ANY OTHER CITY AGENCIES YES IF YES PROVIDE COPY. NO N
Years lived in residence: List all persons livir in residence other than you: ?'
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Name Relationship Age Yes m to ed No M
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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 Em to ent Food Stamps 0
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Unem to ment Ins Pension/Retire Alimony
Child Su ort Other/Real Prot). I Lo
Total Monthly Income: $ Total Annual Income $
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2013 Income Level Number of Persons Per Household
(Subject to annual change) 1 2 3 4 5 6 7 8 EL
Household Annual Income May Not Exceed:
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80% Median Income 35,700 1 40,800 45,900 50,950 55,050 59,150 63,200 67,300
Ethnicity: (Please check all that apply) Optional c
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• Sr.Citizen(s)-60 or older • Female Head of Household • Disabled One or More =
• Hispanic • Asian/Pacific • American Indian z
• 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 w
understand that the inclusion of any willful misrepresentation on this form constitutes ground for rejection of this r
application and recapture of any financial benefit I may have received. I authorize the NHSIE and or the City of E
n Bernardino to examine and to verify any and all information provided in this application.
Date: R
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PAAuendas\AQenda Attachments\F.xhihits\2010\7.19.10 iHnC Rehsh l nan Annlication Packet Pg. 691
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EXHIBIT 7
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-- Neighborhood Housing Services 4-
NEIGHBORHOOD of the y
HOUSING SERVICES Inland Empire, Inc.
OF THE INLAND EMPIRE,INC w
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1390 North D Street/San Bernardino,CA 92405/Phone 909-884-6891/Fax 909-884-8899/www.nhsie.or2 Cn
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Single Family Residence Rehabilitation Loan Program
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LOAN SERVICES AGREEMENT
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Owner Name(s) Owner Address: _
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CONGRATULATIONS! You have been awarded the Single Family Residence E
Rehabilitation Loan (the "Loan") under and pursuant to the Single Family Residence L_
Rehabilitation Loan Program (the "Program") from the City of San Bernardino (the "City") in a
concert with the Neighborhood Housing Services of the Inland Empire, Inc. (the "NHSIE'). E
The Loan is deferred (meaning there are no payments); however it does accrue simple
interest at the rate of three (3) percent per annum, until the occurrence of a transfer of title to the a
property securing the note, or if you refinance the original loan to use equity or if you sell the a
property then repayment will become due and payable. The Loan is evidenced by the promissory
note (the "Note") and secured by the deed of trust with assignment of rents (the "Deed of Trust") o
encumbering your home.
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The Loan is being made by the City to you under the Single Family Residence ti
Rehabilitation Loan Program and is in an amount not to exceed $ (except as n
provided for in Section 5 of the Program Qualifications and Guidelines below).
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NHSIE is authorized by the City to administer the Program. Priority is given on an as- E
needed, first-come, first-served basis to applicants who have completed necessary paperwork. i
However, in the case of an emergency, of an urgent need or of a life-threatening situation, the a
NHSIE may process a Loan application (the "Loan Application") ahead of other Loan Applications. Q
Focus of the work will be to the exterior beautification (curb appeal) of the home and of the front
yard landscaping within limitations. Please be aware that with restricted funds it is not possible to W
do everything that everyone wants and it is not possible to address all deficiencies, code and/or LL
safety items with this Loan. In order to serve as many homes as possible, work priorities will be w
decided by the NHSIE on an individual basis. For example, appliance repairs, backyard patios, or =
custom items are not covered; front landscaping, roof replacement, fences may be covered. Z
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PROGRAM QUALIFICATIONS & GUIDELINES: Applicants must understand and agree to the �2
following: x
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1. Assistance is available to low-moderate income eligible owner-occupants who live in the d
City of San Bernardino; E
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6.F.i
SINGLE FAMILY RESIDENCE REHABILITATION LOAN AGREEMENT
2. Homeowner must complete the Loan Application and the Maintenance Needs Application
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Document and must submit to the NHSIE the Loan Application, the Maintenance Needs
Application Document and necessary qualifying verifications, as requested; C�
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3. Homeowners must own their home and occupy it as their principal residence for a
minimum of one (1) year prior to the submission of the Loan Application and of the w
Maintenance Needs Application Document to the NHSIE; w
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4. Personal household Income level, adjusted for family size, during the twelve (12) months Z
preceding the date of submission of the Loan Application and the Maintenance Needs
Application Document must not exceed 0% of county median for low-moderate income `0
households (the "low-moderate income"), as determined by the HUD income guidelines for a.
families, as adjusted from time to time; all household sources of income earned from M
persons who are eighteen years and older and who reside in the household as their
principal residence shall be considered;
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5. The Loan shall be evidenced by a Promis ory Note Secured by Deed of Trust (the "Note") a
in the amount of the Loan and secured b a Deed of Trust and Assignment of Rents (the
"Deed of Trust") encumbering the home. The Loan made by the City to the homeowner
may not exceed the lesser of: (i) $25,00 or (ii) twenty-five percent (25%) of the then fair d
market value of the home as determined by a licensed appraiser approved by the City;
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6. Final determination as to the Scope of Work (as defined below) rests with the NHSIE c
Redevelopment Specialist, based upon need, extent of work, urgency of situation, a
code violations, funding availability and other issues;
7. Homeowners must continue to upkeep th it improved property after the work is done, and
show their commitment by signing the RESIDENTIAL PROPERTY MAINTENANCE
AGREEMENT CONTAINING COVENANTS AFFECTING REAL PROPERTY (Single c0
Family Residence Rehabilitation Loan Program) (the "Covenant Agreement");
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8. Homeowners must execute and ackno ledge all Loan Documents (as defined in the
Single Family Residence Rehabilitation Loan Program Agreement (the "Rehabilitation
Loan Program Agreement");
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9. Homeowners must not have received a loan or grant from the City for the past ten (10) Q
years, all loans made by the City, if any, to the homeowner must be paid in full by the
homeowner, and the homeowner must have repaid all grant amounts owned by the
homeowner to the City under any prior grant program resulting from the homeowner's Ix
breach under such grant program; U_
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10. Homeowner must agree to attend and must attend a maintenance class conducted by the =
NHSIE in connection with the maintenance and upkeep by the homeowner of the home; Z
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11.Homeowners must promise to continue liv'ng in their home for ten (10) years after the date
that the Deed of Trust is recorded in the official records of the county recorder's office for w
the County of San Bernardino, State of California (the "County Recorder's Office"). If the c
home is sold or refinanced within ten (10) years after the recordation of the Deed of Trust E
and the Covenant Agreement in the County Recorder's Office, or if the home is no longer
the primary residence of the homeowner, the homeowner at such time must pay the full o
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Packet Pg. 693
His-
SINGLE FAMILY RESIDENCE REHABILITATION LOAN AGREEMENT
Loan amount to the City. A copy of your Covenant Agreement will be recorded in the
County Recorder's Office and sent to the City as a permanent record.
H/O Initials N
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SCOPE of WORK: NHSIE will schedule an appointment in your home. During the visit, the
NHSIE Redevelopment Specialist will inquire as to your needs, observe the outside of the w
structure, and determine what work can best be accomplished under the Program. One or more w
inspections may be necessary, depending on each situation. Photos of the property will be taken z
and a Work Write-up (the "Scope of Work") will be prepared. You will be asked to sign a waiver Z
for the photos and to authorize placement of a NHSIE sign and an City sign in your front yard, to
remain during the construction. The work on your home will be scheduled in the coming weeks. o
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Role of NHSIE
1. NON-PROFIT ADMINISTRATOR: NHSIE is a private, non-profit 501(c)(3) corporation, which
provides down-payment and housing assistance programs, homeownership education, and is
committed to reducing neighborhood blight and improving the condition of local housing via >%
several beautification programs. NHSIE has contracted with the City to implement and to T
administer the City's Program. M
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2. WORK PERFORMANCE: The Owner will enter into a general contractor agreement (the c
"General Contractor Agreement") with a general contractor approved by the NHSIE (the y
"General Contractor"). The General Contractor shall complete the Scope of Work in
accordance with the General Contractor Agreement. The General Contractor, without a
limitation, shall hire one (1) or more subcontractors, arrange for materials or supply deliveries,
and/or initiate whatever is reasonably necessary to accomplish the Scope of Work in a timely o
and professional manner. °
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3. MODIFICATIONS: The NHSIE Redevelopment Specialist may from time-to-time make 0
modifications in materials, labor or materials as deemed appropriate for the progress of the
Scope of Work.
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4. AUTHORITY TO NHSIE: Homeowner authorizes the NHSIE staff to issue orders and/or
instructions as necessary to initiate and to continue the work, generally based upon the Work
Write-up. In the absence of the homeowner, the NHSIE will issue such instructions needed to
carry out the work and progress towards completion; to stop work when such work appears to
be in violation of code, health and safety matters, or when the work or situation could lead to
obvious injury of persons or property; to stop work that would significantly alter the Scope of t
Work, or exceed the project budget or Program limits; and to make decisions considered in
the best interest of the homeowner and/or the City. U.
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5. TECHNICAL SERVICES: NHSIE does not charge the homeowner for technical services and uw
will continue to provide in-progress inspections on site at no cost to the homeowner. The Z
NHSIE will make every effort to see that contractors, subcontractors and suppliers provide
appropriate materials and deliver services of good quality. The NHSIE can neither assume c
liability for, nor guarantee contractor or subcontractor work quality, or failure to adequately X
perform on site. w
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6. RESOLUTION OF DISPUTES: Upon written notice from the homeowner or the contractor, E
the NHSIE will arrange to meet with the contractor, the subcontractor or the supplier most
directly responsible for the work in question, as well as with the homeowner. The parties will a
3
Packet Pg._694
SINGLE FAMILY RESIDENCE REHABILITATION LOAN AGREEMENT
discuss, examine, decide upon, and approve the disputed issue before it proceeds further.
NHSIE will make reasonable efforts to help the parties resolve the matter. In the absence of
resolution, the City has the final determination as to outcome. H/O Initials N
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Homeowner(s') Responsibilities y
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1. COOPERATION: Homeowner agrees to cooperate fully with the NHSIE, the assigned w
contractors, the sub-contractors and the suppliers during the construction process so that the =
work may progress as scheduled. z
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2. PAPERWORK: It is the homeowner's responsibility to review, approve and sign various o
documents (i.e. the Write-up, Scope-of-Work), major change-orders, job completion, and 0-
invoices. Timeliness is of the essence. a
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3. UTILITIES & INSURANCE: Homeowner agrees to make electric, water and other utilities
available to support the construction activity without charge. Homeowner also agrees to
include the in-progress work and materials under their homeownership insurance policy.
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4. ACCESS: Homeowner is responsible for providing regular, safe access to work site as ,M
discussed and pre-arranged at the beginning of the project. The homeowner or a responsible d
adult should be available during the work day to respond to questions. No work will be done 0
when children (under 18) are home alone at the site. The homeowner should provide for and
protect animals and pets by keeping them away from the work site. Aggressive or dangerous
animals should be chained or removed from site during construction. NHSIE is not responsible a
to move furniture or owner's belongings. Small or personal items should be put away, M
covered, and/or removed from the work site by the homeowner. NHSIE staff will be courteous o
and treat homeowner's property with respect; however, the NHSIE accepts no liability for
broken, lost or damaged personal property, furniture, appliances, vehicles, plants, or animals.
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5. PROJECT DELAYS: NHSIE has the right to stop work and to move on to another client if
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there are substantial, continued or unwarranted delays due to the homeowner involvement,
over-eagerness, or interference. Any financial liabilities incurred up to that point are those of =
the homeowner alone. d
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6. CONCERNS: As Program administrator, the NHSIE is the homeowner's primary contact a
during the job. Please direct any issues, concerns, or questions to the NHSIE Redevelopment
Specialist as soon as possible. NHSIE will contact contractors, subcontractors or suppliers to
address your stated concerns. However, once materials are installed in place, the ability to
make changes, repairs or replacement is not likely, and could involve other direct costs to the LL
homeowner, which extend beyond the scope of the Loan. N
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General Provisions =
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1. Homeowner agrees to hold harmless and indemnify the NHSIE, the City, and their employees,
members, officers, directors, agents, employees, contractors, sub-contactors and consultants, x
in connection with acts performed by them or omissions that occur under this Covenant w
Agreement and/or which would reasonably be associated with consultation, technical advice, c
property inspection, and construction activities done in good faith. as
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Packet Pg.695
SINGLE FAMILY RESIDENCE REHABILITATION LOAN AGREEMENT
2. Homeowner agrees and authorizes the NHSIE staff to obtain and/or to provide specific
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reports, property title and tax searches, building code inspection reports, property appraisals,
termite reports, hazardous certifications, repair specifications, cost estimates, contractors
bids, and to initiate inspections and/or materials deemed necessary to adequately perform the o
job. NHSIE provides regular progress reports to various agencies, such as the City.
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3. Whenever the pronouns "I", "my", "me" are used in this Agreement, they shall mean "we", W
"our", and "us" respectively, if more than one homeowner is responsible. _
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AUTHORIZATION AND ACCEPTANCE OF AGREEMENT
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In connection with this Loan, in reference to proposed construction services, I hereby declare that a
I (we) meet the Program qualifications, understand the guidelines, and accept the terms
described above. I (We) further support and authorize the NHSIE, the City and their designated s
staff, contractors and/or subcontractors to access and to inspect my property during normal W
business hours, to monitor, to supervise, to act as technical assistant, and to perform all
necessary construction activities, for the beautification of my property, which is located at: _
San Bernardino, CA 2,
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Owner Signature: Co-Owner: d
Date: Date: co
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For: Neighborhood Housing Services of the Inland Empire, Inc. o
By: Date: °
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EXHIBIT 8
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
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City of San Bernardino 0
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Attn.: City Manager
300 North D Street w
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San Bernardino, California 92418 U)
(Space Above Line Reserved For Use By Recorder) z
Recording Fee Exempt Pursuant to Government Code Section 6103 E
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RESIDENTIAL PROPERTY MAINTENANCE AGREEMENT
CONTAINING COVENANTS c
AFFECTING REAL PROPERTY
Single Family Residence Rehabilitation Loan Program =
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THIS RESIDENTIAL PROPERTY MAINTENANCE AGREEMENT CONTAINING
COVENANTS AFFECTING REAL PROPERTY (the "Covenant') is made and entered into as _
of 3_2013, by and between CITY OF SAN BERNARDINO, a municipal
corporation(the "City") and (the "Owner") and this Covenant relates to the following in
facts set forth in Recitals:
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RECITALS:
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WHEREAS, the undersigned is/are the Owner of that certain improved real property 'o
located in the City of San Bernardino, State of California, and more particularly described in c
Exhibit"A" attached hereto and incorporated herein by this reference (the "Property"); and v
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WHEREAS, the City and the Neighborhood Housing Services Of The Inland Empire, N
Inc., a California non-profit corporation (the "Contractor") executed, delivered and entered into
the Single Family Residence Rehabilitation Loan Program Agreement (the "Rehabilitation Loan
Program Agreement'), dated , 2013; and =
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WHEREAS, pursuant to the Rehabilitation Loan Program Agreement the City has agreed
to make separate loans to Qualified Homeowners (as defined therein) in accordance with and c
pursuant to the terms, covenants and conditions of the Rehabilitation Loan Program Agreement;
and U_
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WHEREAS, in accordance with and pursuant to the Rehabilitation Loan Program z
Agreement and the Program (as defined in the Rehabilitation Loan Program Agreement), the 00
City has determined that the Owner is eligible to receive a Loan (as defined in the Rehabilitation
Loan Program Agreement) from the City to enable the Owner to construct, to install, to perform x
and to complete the Improvements (as defined therein) at the Property; and w
WHEREAS, as a condition to the making of the Loan by the City to the Owner, the t
Owner must execute and acknowledge, where appropriate, the Loan Documents (as defined in
the Rehabilitation Loan Program Agreement) including the execution and acknowledgment by a
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the Owner of this Covenant which Covenant shall be recorded in the County Recorder's Office
(as defined below). r
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NOW, THEREFORE, IN CONSIDERATION OF THE RECITALS MENTIONED w
ABOVE, FOR THE APPROVAL AND FOR THE MAKING OF THE LOAN BY THE CITY cNo
TO THE OWNER AND FOR SUCH OTHER GOOD AND VALUABLE CONSIDERATION, W
THE RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY ACKNOWLEDGED BY Fn
THE OWNER AND BY THE CITY, THE OWNER AND THE CITY COVENANT AND z
AGREE AS FOLLOWS: E
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Section 1. Definitions of Certain Terms. As used in this Covenant, the following °
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words and terms shall have the meaning as provided in the Recitals or in this Section 1 unless the
specific context of usage of a particular word or term may otherwise require:
Adjusted Family Income. The words "Adjusted Family Income" mean the anticipated =
total annual income (adjusted for family size) of each individualized or family residing or treated
as residing in the Property as calculated in accordance with Treasury Regulation 1.167(k) — 3 E
(b)(3) under the Code, as adjusted, based upon family size in accordance with the household U_
income adjustment factors adjusted and amended from time to time, pursuant to Section 8 of the a,
United States Housing Act of 1937, as amended.
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County Recorder's Office. The words "County Recorder's Office" mean the official a
records of the county recorder for the County of San Bernardino, State of California.
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Covenant. The word "Covenant" means this "Residential Property Maintenance c
Agreement Containing Maintenance Covenants Affecting Real Property" by and between the c
Owner and the City. O
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Covenant Term. The words "Covenant Term" shall have the meaning set forth in N
Section 5.
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Low-Moderate Income Family. The words "Low-Moderate Income-Family" means C
persons and families whose income does not exceed 80 percent of area median income, adjusted a
for family size by the department in accordance with adjustment factors adopted and amended v
from time to time by the United States Department of Housing and Urban Development pursuant M
to Section 8 of the United States Housing Act of 1937.
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Owner. The word"Owner"means the owner of the Property (e.g.: all persons identified w_
as having property ownership interest vested in the Property). 55
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Successor-In-Interest. The words "Successor-In-Interest" mean and refer to the person
or household, which may acquire the Property from the Owner at any time during the Covenant x
Term by purchase, assignment, transfer or otherwise. The Successor-In-Interest shall be bound w
by each of the covenants, conditions and restrictions of this Covenant. c
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The titles and headings of the sections of this Covenant have been inserted for convenience of .,
reference only and are not to be considered a part hereof and shall not in any way modify or N
restrict the meaning of any of the terms or provisions hereof. w
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Section 2. Acknowledgments and Representations of the Owner. o
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The Owner hereby acknowledges and represents that, as the date of execution of this Cn
Covenant: x Z
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(a) the total household income for the Owner does not exceed the maximum amount
permitted as Adjusted Family Income for a Low-Moderate Income Family adjusted for family .
size;
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(b) the Owner intends to occupy the Property after the date of execution of this
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Covenant as the principal place of residence for a term of at least ten (10) years following the =
date of recordation of this Covenant in the County Recorder's Office and the Owner has not 2,
entered into any arrangement and has no present intention to rent (without the prior written
consent of the City), sell, transfer or assign the Property to any third party during the Covenant LL
Term so as to frustrate the purpose of this Covenant; a,
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(c) the Owner has no present intention to lease or rent any room or sublet or rent a
portion of the Property to any relative of the Owner or to any third person at any time during the a
Covenant Term.
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Section 3. Maintenance Condition of the Property. The Owner, for itself, its
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successors and assigns, hereby covenants and agrees that:
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(a) The exterior area of the Property, which are subject to public view (e.g.: all ti
improvements, paving, walkways, landscaping, and ornamentation) shall be maintained in good N
repair and a neat, clean and orderly condition, ordinary wear and tear excepted. In the event that
at any time during the term of the Covenant Term, there is an occurrence of an adverse condition
on any area of the Property which is subject to public view in contravention of the general
maintenance standard described above (a "Maintenance Deficiency") then the City shall notify >
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the Owner in writing of the Maintenance Deficiency and give the Owner thirty (30) calendar U
days from the date of such notice to cure the Maintenance Deficiency as identified in the notice. M
The words "Maintenance Deficiency" include without limitation the following inadequate or
nonconforming property maintenance conditions and/or breaches of single family dwelling LL
residential property use restrictions: w
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• failure to properly maintain the windows, structural elements, and painted exterior Z
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surface areas of the dwelling unit in a clean and presentable manner;
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• failure to keep the front and side yard areas of the Property free of accumulated w
debris, appliances, inoperable motor vehicles or motor vehicle parts, or free of
storage of lumber, building materials or equipment not regularly in use on the E
Property; v
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• failure to regularly mow lawn areas or permit grasses planted in lawn areas to --
exceed nine inches (9") in height, or failure to otherwise maintain the landscaping N
in a reasonable condition free of weed and debris;
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• parking of any commercial motor vehicle in excess of 7,000 pounds gross weight w
anywhere on the Property, or the par ng of motor vehicles, boats, camper shells, w
trailers, recreational vehicles and the 1 ke in any side yard or on any other parts of
the Property which are not covered by a paved and impermeable surface; z
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• the use of the garage area of the dwelling unit for purposes other than the parking o
of motor vehicles and the storage of personal possessions and mechanical a.
equipment of persons residing in the Property.
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In the event the Owner fails to cure or commence to cure the Maintenance Deficiency
within the time allowed, the City may thereafter conduct a public hearing following transmittal =
of written notice thereof to the Owner ten (10) calendar days prior to the scheduled date of such ?'
public hearing in order to verify whether a Maintenance Deficiency exists and whether the
Owner has failed to comply with the provision of this Section 3(a). If, upon the conclusion of a
public hearing, the City makes a finding that a Maintenance Deficiency exists and that there
appears to be non-compliance with the general rnaintenance standard, as described above, in
thereafter the City shall have the right to enter the Pr perty (exterior areas only) and perform all =
acts necessary to cure the Maintenance Deficiency, or to take other action at law or equity the a
City may then have to accomplish the abatement of the Maintenance Deficiency. Any sum
expended by the City for the abatement of a Maintenance Deficiency as authorized by this
Section 3(a) shall become a lien on the Property. If the amount of the lien is not paid within 'o
thirty (30) calendar days after written demand for p yment by the City to the Owner, the City o
shall have the right to enforce the lien in the manner as provided in Section 3(c). v
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(b) Graffiti which is visible from any public right-of-way which is adjacent or N
contiguous to the Property shall be removed by the Owner from any exterior surface of a Cn
structure or improvement on the Property by either painting over the evidence of such vandalism
with a paint which has been color-matched to the surface on which the pain is applied, or graffiti
may be removed with solvents, detergents or water as appropriate. In the event that graffiti is o
placed on the Property (exterior areas only) and such graffiti is visible from an adjacent or
contiguous public right-of-way and thereafter such affiti is not removed within seventy-two
(72) hours following the time of its application; th in such event and without notice to the W
Owner, the City shall have the right, but not the obli ation, to enter the Property and to remove N
the graffiti. Notwithstanding any provision of Sectio 3(a) to the contrary, any sum expended by w
the City for the removal of graffiti from the Prope as authorized by this Section 3(b) shall =
become a lien on the Property. If the amount of the lien is not paid within thirty (30) calendar 00
days after written demand for payment by the City to the Owner, the City shall have the right to
enforce its lien in the manner as provided in Section 3 c). x
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(c) The parties hereto further mutually un erstand and agree that the rights conferred =
upon the City under this Section 3 expressly include 1he power to establish and enforce a lien or E
other encumbrance against the Property in the manner provided under Civil Code Sections 2924,
2924b and 2924c in the amount as reasonably necessary to restore the Property to the Q
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maintenance standard required under Section 3(a) or Section 3(b), including attorneys' fees and
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costs of the City associated with the abatement of the Maintenance Deficiency or the removal of
graffiti and the collection of the costs of the City in connection with such action. In any legal N
proceeding for enforcing such a lien against the Property, the prevailing party shall be entitled to °
recover its attorneys' fees and costs of suit. The pro isions of this Section 3 shall be a covenant w
running with the land for the Covenant Term and shall be enforceable by the City in its w
discretion, cumulative with any other rights or powers granted by the City under applicable law. Fn
Nothing in the foregoing provisions of this Section 3 shall be deemed to preclude the Owner Z
from making any alterations, additions, or other changes to any structure or improvement or E
landscaping on the Property, provided that such changes comply with the zoning and
development regulations of the City of San Bernardino and other applicable law. °
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(d) Any lien in favor of the City as may arise under this Section 3 will not become
effective until such time as the City records a "No ice of Lien" in the official records of San
Bernardino County which references this Section 3 f this Covenant. Any lien in favor of the Cn
City created pursuant to this Section 3 shall be sub ect to the lien or charge of any mortgage, a
deed of trust or other financing or security instrumer t made in good faith and for value in favor
of an institutional lender prior to the date of such Notice of Lien. In the event of a foreclosure of u-
such a deed of trust or other lien which predates such Notice of Lien, or in the event of an
acceptance of a deed in lieu of foreclosure, the City lien evidenced by such a Notice of Lien N
which has accrued up to the date of foreclosure or the acceptance of a deed in lieu of foreclosure
shall be extinguished, and the foreclosure purchaser r deed in lieu grantee shall take title in the a
Property free of the City lien evidenced by the Notice of Lien; provided however, any such -a
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� successor of a security interest in the Property during the Covenant Term shall be subject a new
lien of the City arising under of this Section 3 for all charges that may accrue under this Section o
3 subsequent to the foreclosure or deed given in lieu f foreclosure during the Covenant Term. c
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Section 4. Covenants to Run With the Land. The Owner and the City hereby ,,-
declare their specific intent that the covenants, rese ations and restrictions set forth herein are n
part of a plan for the promotion and preservation of ffordable single family housing within the N
territorial jurisdiction of the City and that each shall a deemed covenants running with the land
and shall pass to and be binding upon the Property wid each Successor-In-Interest of the Owner
in the Property for the Covenant Term. The Own,-r hereby expressly assumes the duty and c
obligation to perform each of the covenants and to he nor each of the reservations and restrictions u
set forth in this Covenant. Each and every contract, eed or other instrument hereafter executed
covering or conveying the Property or any interest therein shall conclusively be held to have
been executed, delivered and accepted subject to such covenants, reservations, and restrictions, y
regardless of whether such covenants, reservations and restrictions are set forth in such contract, w
deed or other instrument. to
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Section 5. Covenant Term. The words "Covenant Term" mean and refer to the
period of time when this Covenant shall be in effect. Following its recordation, this Covenant x
shall be in effect for ten (10) years thereafter. This Covenant shall run with land and shall be w
enforceable by the City and by the City of San Bernardino, as the successor public city to the c
City.
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Section 6. Governing Law. This Covenant shall be governed by the laws of the
State of California. N
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Section 7. Amendment. This Covenant may be amended only by a written r
instrument executed by the Owner(or the Successor-In-Interest, as applicable) and by the City. w
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Section 8. Attorneys' Fees. In the event that the City brings an action to enforce any i
condition or covenant, representation or warranty in this Covenant or otherwise arising out of z
this Covenant, the prevailing party in such action shall be entitled to recover from the other party E
reasonable attorneys' fees to be fixed by the court in which a judgment is entered, as well as the o
costs of such suit. For the purposes of this Section 8, the words "reasonable attorneys' fees" in a`
the case of the City include the salaries, costs and overhead of the lawyers employed in the
Office of the City Attorney of the City of San Bernardino.
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Section 9. Severability. If any provision of this Covenant shall be declared invalid, _
inoperative or unenforceable by final judgment or decree of a court of competent jurisdiction 21
such invalidity or unenforceability of such provision shall not affect the remaining parts of this
Covenant which are hereby declared by the parties to be severable from any other part which is
found by a court to be invalid or unenforceable.
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Section 10. Time is of the Essence. For each provision of this Covenant which states =
a specific amount of time within which the requirements thereof are to be satisfied, time shall be a
deemed to be of the essence.
Section 11. Notice. Any notice required to be given under this Covenant shall be 'o
given by the City or by the Owner, as applicable, by personal delivery or by First Class United o
States mail at the addresses specified below or at such other address as may be specified in c�
writing by the parties hereto:
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If to the City: City of San Bernardino
Attention: City Manager
300 North D Street
San Bernardino, California 92418 0
Phone: (909) 384-5122 M
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If to the Owner:
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San Bernardino, CA 9240 W
Phone (909) _
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Notice shall be deemed given five (5) calendar days after the date of mailing to the party, or, if
personally delivered, when received by the City Manager or the Owner, as applicable. Each x
party may change its address by notifying the other party, in writing, of the party's new address. w
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Section 12. Recitals. The Recitals set forth in this Covenant are true and correct and E
are incorporated herein by this reference.
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IN WITNESS WHEREOF, the Owner and the City have caused this Covenant to be --
signed, acknowledged and attested on their behalf by duly authorized representatives in U")
counterpart original copies which shall upon execution by all of the parties be deemed to be one ,?
original document, all as of the date first written above. N
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OWNER W
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Date: By: E
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Print: a`
By:
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Print: _
CITY
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City of San Bernardino
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Date: By: a.
Allen J. Parker, City Manager
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[ALL SIGNATURES MUST BE NOTARIZED] o
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Approved as to Form: N
JAMES F. PENMAN, City Attorney N
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P:\Agendas\Agenda Attachments\Exhibits\2010\7.19.10 NHSIE Rehab Loan Maint Cov Agreement
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EXHIBIT "A" �—
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Legal Description of the Property
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EXHIBIT 9
CITY OF SAN BE NARDINO
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PROMISSORY NOT (the "Note")
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SECURED BY DEEP OF TRUST
(Deferred Loan - Single Family Residen e Rehabilitation Loan Program) °
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NOTE: This Note requires repayment of the W principal sum, plus interest, plus w
attorneys' fees, court costs and other fees and amounts due under this Note F5
and the other City Loan Documents (as defined below) (the "Loan Amount"), z
if certain events occur. E
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$«Amount» Place:
The City of San Bernardino
300 North D Street
San Bernardino, CA 92418 U)
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HusbandFirstName» «LastName»
WifeFirstName» «LastName» LL
«Address1»
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((City)) «State», «PostalCode» Date: «Date»
FOR VALUE RECEIVED, the undersigned maker ("Maker") jointly and severally o
promise(s) to pay to the City of San Bernardino a municipal corporation (the "City"), or a.
order, the principal sum of «Writtenamount» ($ Amount))), to pay interest on the unpaid 2
principal amount of this Note and to pay attorneys' fees, court costs, fees and other
amounts due under this Note and the other Ci y Loan Documents (the "City Loan"), as
follows: °
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The Note shall have a term of years commencing on the date of
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this Note and ending on (th "Maturity Date"). On the Maturity Date,
the Loan Amount shall be due and payable by the Maker to the City.
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Interest on this Note shall accrue at the rate of Three Percent (3%) simple interest co
per annum, commencing upon the date of this Note. All payments of principal and all
interest accruing thereon shall be deferred until the occurrence of one of the following u.
events: (i) a transfer of title to the property (the "Property") securing this Note (as w
described in the Due on Sale Provisions below) (except for a transfer of title by the Maker
to an approved Successor-In-Interest, by the Maker, within ten (10) years after the z
execution date of this Note, (ii) the Property is no longer the primary residence of the
Maker, and/or (iii) the Maker refinances the ity Loan (the "City Loan Refinancing")
evidenced by this Note and secured by the deed of trust with assignment of rents, of even W
date herewith, as executed and acknowledged by the Maker, as trustor, in favor of the
City, as beneficiary (the "Deed of Trust") and/or the Maker refinances the Senior Loan and E
secured by the Senior Deed of Trust (the "Senio Loan Refinancing").
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:\Agendas\Agenda Attachments\Exhibits\2010\7.19.10 NHSIE Rehab Loan Promissory Note
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Payments shall be made to the City in lawful money of the United States of
America at the principal office of the City, 01 North "E" Street, Suite 301, San
Bernardino, California 92401, or at such other place as may from time to time be N
designated by the City. All payments on this Note shall be applied first to all attorneys'
fees, court costs, fees and other amounts due under this Note and under the Deed of °
Trust, then to the accrued and unpaid interest ue on the Note and then to the principal w
due on this Note. W
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Principal may be prepaid in whole or in part at any time without penalty. z
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In no event shall the total interest and late charges, if any, payable hereunder o
exceed the maximum amount of interest permi ed under the usury laws of the State of a
California.
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This Note is secured by the Deed of Trust f even date signed by Maker naming the
City as Beneficiary, and duly filed for record in the office of the County Recorder of the
County of San Bernardino. .2:,
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If this Note is not paid when due, whether at maturity or by acceleration, or if it is LL
collected through bankruptcy, probate, or other legal or quasi-legal proceeding whether
before or after maturity, the Maker agrees to pay all costs of collection, including, but not N
limited to, reasonable attorneys' fees and court costs. _
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Should the Maker, at any time after the date of this Note, be in default or breach of �
any of the terms or conditions of any of the foll wing: (i) this Note, (ii) the Deed of Trust,
(iii) the Residential Property Maintenance Ag eement Containing Covenants Affecting .o
Real Property (Single Family Residence Rehabilitation Loan Program) (the "Maintenance c
Agreement"), executed and acknowledged by and between the Maker and the City, (iv)
any other instruments, documents or agreeme is evidencing, securing, guaranteeing or
relating to the loan evidenced by the NotB and secured by the Deed of Trust N
encumbering the Property (collectively, the "City Loan Documents"), and/or (v) the Senior
Loan Documents, or any one of them, the entire unpaid principal balance of this Note, all c
accrued and unpaid interest thereon and all attorneys' fees, court costs, fees and z
amounts due under this Note and the ther City Loan Documents shall, at .�
the option of the City, and without demand r notice, become immediately due and W
payable. n
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Due on Sale Provisions: _
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In the event that the Maker should sell, transfer, or otherwise convey the real
property securing this Note, whether voluntarily or by operation of law, or as a result of the x
death of the Maker, and whether by deed, contrz ct of sale, or otherwise, or the agreement w
to do so, at any time within the first ten (10) yeas after the execution by the Maker of this
Note, other than a sale, transfer or conveyance lb a Successor-In-Interest who has been E
approved in writing by the City, or the refinancin 3 by the Maker of the City Loan and/or of
the Senior Loan, then all obligations secured y this Note, irrespective of the maturity a
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dates expressed herein, shall, at the option of the City, immediately become due and
payable. -�
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In the event that the Property securing this Note which now or hereafter may be N
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encumbered by the Deed of Trust shall cease to be the Maker's primary residence, then all °
obligations secured by this Note, irrespective of tf�e maturity dates expressed herein, shall, w
at the option of the City, immediately become due and payable. w
In the event that the Maker shall further encumber the Property securing this Note, Z
or otherwise cause a reduction in priority which the Deed of Trust securing this Note E
enjoys as of the date of its recordation, then all obligations secured by this Note, o
irrespective of the maturity dates expressed herein, shall, at the option of the City, a
immediately become due and payable.
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None of the provisions hereof and none of the City's rights or remedies hereunder
on account of any past or future default shall be deemed to have been waived by any =
indulgence granted by the City to the Maker. %
Maker hereby waives demand, protest, a d notice of demand and protest, and the LL
Maker hereby waives, to the extent authorized y law, any and all homestead and other
exemption rights that otherwise would apply to the debt evidenced by this Note. in
The Maker has executed this Note as of its date. a.
"Maker"
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EXHIBIT 10
YEAR 2013 INCOME LIMITS
RIVERSIDE & SAN BERNARDINO COUNTIES N
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30% 50% 60% 80% w
HOUSEHOLD MEDIAN MEDIAN MEDIAN MEDIAN
SIZE INCOME INCOME INCOME INCOME z
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FAMILY Extremely Very 60% c
SIZE Low Low Median Low a
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 2'
5 $20,650 $34,400 $41,280 $55,050
6 $22,200 $36,950 $441340 $59,150
7 $23,700 $39,500 $47,400 $63,200 ,
8 $25,250 $42,050 $50,460 $67,300
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Exhibit "11'
Scope of Services
(Description of Pro ram)
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A. Contractor's Administration Annual Fee N
The City shall annually compensate the Contractor an amount not to exceed the total sum of Seventy
Thousand Dollars ($70,000) for the administration and the implementation of the Program herein and w
for the Services rendered under this Agreement, Subject to the annual approval and appropriation by W
the United States Department of Housing and Urban Development("HUD").
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Notwithstanding the foregoing, in the event the Contractor exceeds twenty-two (22) Loans in any E
given year, additional Loan Funds will need to be procured in order to fund any additional Loans made o
by the Contractor under this Agreement. The City will xercise its reasonable efforts to amend this a
Agreement, in writing, and to obtain additional Loan Funds to fund additional Loans, in excess of
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twenty-two (22) Loans, by the Contractor for that year. The City makes no warranty, no
representation and no covenant to the Contractor that the City will be able to obtain any additional
Loan Funds to fund any additional Loans under this Agreement. _
From and after the Effective Date of this Agreement and for the remaining term of this Agreement, the
Program Administration Fee payable by the City to the Contractor as compensation for the Services a
performed by the Contractor under this Agreement shall a paid by the City directly to the Contractor
upon receipt by the City of a corrected invoice and the Lo Funds Disbursement Ledger which shows in
all Loan Fund payments authorized by the City and disbursed by the Contractor to the General
Contractors and/or to the subcontractors under this Agree ent for which the Contractor has not been a
paid by the City. The Contractor may not invoice the C'ty more than once per month for the Loan
Funds disbursed by the Contractor under this Agreement and the City shall pay to the Contractor the cc
correct amount identified on the invoice within thirty(30) calendar days after the receipt by the City of o
the following: (i) a corrected invoice, and (ii) the Loan Funds Disbursement Ledger. o
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B. Single Family Residence Rehabilitation Loan Program the"Program") - $630,000
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The Contractor shall accept the Loan Applications from respective Qualified Homeowner applicants to
determine income and improvement eligibility (see Exhibit "10" to this Agreement), to determine
equity in the Home and to verify ownership and length of ownership by obtaining a preliminary title
report or other pertinent documentation from a reputable title company. The Contractor shall offer the U)
Program to Qualified Homeowners in the Target Area on an as needed, first-come, first-served basis. w
However, in the case of an emergency, of an urgent need or of a life-threatening situation, the =
Contractor may process a Loan Application ahead of other Loan Applications subject to the approval Z
by the City Manager. The Improvements allowed under the Program are described in Section "C"
below of this Scope of Services.
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C. Eligible Improvements Permitted Under the Program »:
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The following types of Improvements are permitted in connection with the Program: (i) roof repairs
and re-roof or overlay, (ii) exterior and interior painting including, without limitation, lead testing,
(iii) drought tolerant landscaping (irrigation system, with hydro seeds, sod or artificial turf), (iv) Q
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window replacement, (v) carpet replacement and/or finis ed flooring replacement, (vi) HVAC system,
(vii) electrical work, (viii) sewer repairs, (ix) termite repairs, (x) exterior concrete hardscape such as
sidewalks, driveways, curbs, gutters, hand railings or ramps, (xi) door or window screens repairs or
replacements, (xii) tub, shower, toilet repairs or replacements, (xiii) foundation or structural repairs,
,
(xiv) fencing or (xv) installation of alternative energy sources, including, without limitation, solar
panels. The Improvements must relate to health and safety code violations (i.e., blown sewer lines, r
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septic tank destruction, etc.). s
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The maximum amount of the Loan permitted under the Program is the Loan Amount per Home, w
without the prior written approval of the City Manager. w
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D. Applicant Eligibility Requirements for the Program z
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1. Qualified Homeowner must be an owner and occupant of the Home as its principal residence, for a
minimum period of 12 months preceding the application date; on a case-by-case basis, and °
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depending on the circumstances, this requirement maN be waived by the City Manager or designee; 0
the Contractor shall obtain evidence of ownership and length of ownership and residency.
2. Qualified Homeowner must execute and complete a L an Application and must deliver and submit y
the Loan Application, as fully executed and completed, to the Contractor. The Contractor shall a
receive, review, verify and approve or reject the Loan.Application. If the Loan Application is not E
acceptable to the Contractor, the Contractor shall notify the applicant in writing within ten (10) U.
business days from the receipt by the Contractor of the Loan Application and the Contractor shall
provide the applicant with the reasons for the rejection by the Contractor.
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3. Qualified Homeowner must have a personal or household income level, adjusted for family size, a 2
during the twelve (12) months preceding the date of submission of the Loan Application to the -
Contractor within the ranges of income for low-moderate income households, adjusted for family
size, as set forth in Exhibit"10"to this Agreement. c
4. Qualified Homeowner must agree to: i attend the Maintenance Class °
Q gr O , (ii) live in the Qualified v
Homeowner's Home, as its principal residence, for not less than ten (10)years after the recordation
of the Maintenance Agreement Covenant in the County Recorder's Office, and(iii)to maintain the N
Home in accordance with the Maintenance Agreement Covenant for not less than ten (10) years
after the recordation of the Maintenance Agreement Covenant in the County Recorder's Office. M
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5. Qualified Homeowner must execute and acknowledge, where appropriate, the Loan Documents. U.
The Qualified Homeowner, without limitation, shall execute and notarize the Deed of Trust and _w
the Maintenance Agreement Covenant and the Contractor or the City shall record, or shall cause co
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the recordation of, the Deed of Trust and the Maintenance Agreement Covenant in the County z
Recorder's Office.
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6. Qualified Homeowner must not have received any grant or loan from the City for a period of ten w
(10) years prior to the submission by the Qualified Homeowner to the Contractor and/or to the City
of the Loan Application. d
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E. Guidelines
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6:F.rri The Contractor shall conduct, administer, implement, comply with and perform the following
guidelines in connection with the Program:
1. The Contractor shall administer and implement the Program herein and shall p g a utilize the applicable
and pertinent sections of the City's Loan Policies and Procedures Manual for guidance on
processing and packaging all Loans under this Agreement, if applicable, under the direction of the r
City Manager. N
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2. The Contractor shall accept the Loan Applications from respective Qualified Homeowner
applicants to determine location, income and improvement eligibility, to determine equity in the w
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Home, and to verify ownership and length of ownership by obtaining a preliminary title report or CO
other pertinent documentation from a reputable title company. The Contractor shall offer the Z
Program to Qualified Homeowners in the Target Area on an as needed, first-come, first-served E
basis. However, in the case of an emergency, of an urgent need or of a life-threatening situation,
the Contractor may process a Loan Application on an urgent basis ahead of other Loan a
Applications subject to the approval of the City Manager. a.
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3. The Contractor shall inspect eligible Homes and properties to determine the type of health and
safety and code violation repair work needed, including asbestos and lead-based paint removal, the
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age and overall condition of the Home and to ensure that all Homes repaired or improved under the a
Program when completed are aesthetically pleasing and in compliance with all Laws. E
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4. The Contractor shall prepare and complete Work write-ups, costs estimates, and bid packages for a,
the Improvements to be constructed, installed, performed and competed for each Qualified
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Homeowner's Home.
5. The Contractor shall ensure that all Improvements and/or Work constructed, installed, performed
and/or completed in connection with the Qualified Homeowner's Home shall be constructed,
installed, performed and completed by pre-qualified State licensed General Contractors and/or
State licensed subcontractors. The Contractor shall also require that each General Contractor 0
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and/or subcontractor constructing, installing, performing and/or completing the Improvements v
and/or the Work in connection with the Qualified Homeowner's Home under the Program shall
possess a current business license in the City and shall possess a current license with the State of n
California Contractor's License Board. The Contractor shall be required, whenever feasible, to
obtain a minimum of three (3) bids from General Contractors for all Improvements and/or for all
Work to be constructed, installed, performed and/or completed in connection with the Qualified
Homeowner's Home. All bids shall be made available b the Contractor to the U.
Y Qualified U.
Homeowner for review. All Improvements and/or Work constructed, installed, performed and/or w
completed by General Contractors and/or by subcontractors in connection with the Qualified N
Homeowner's Home shall be approved and authorized by the Qualified Homeowner, and shall be z
completed within a specified timeframe acceptable to the Qualified Homeowner and the General
Contractors and/or the subcontractors.
6. The Contractor shall solicit bids for the construction installation w
, performance and/or the
completion of the Improvements and/or of the Work in connection with the Qualified 0
Homeowner's Home from a list of pre-approved General Contractors. The Contractor shall assist =
the Qualified Homeowners with the selection of a General Contractor, and shall assist the r
Qualified Homeowner in connection with the execution of the General Contractor Agreement, a
Packet Pg. 711
including, without limitation, a determination as to the scope of the Improvements and/or of the
scope of Work to be constructed, installed,performed and/or completed by the General Contractor,
any schedule of performance, other schedules, conduct pre-construction and walk- through
conferences.
7. Prior to the execution of the General Contractor Agreement and prior to any funding by the r
Contractor of any Loan Funds to the General Contractor for the proposed Improvements and/or N
Work to be constructed, installed, performed and/or completed, the Contractor and the members of o
the City application review committee (the "Application Review Committee") appointed and w
assigned by the City to approve, administer and ov rsee the construction, the installation, the
performance and/or the completion of the Improvements and/or of the Work shall meet on one or w
more occasions to discuss the Improvements and/or the Work to be constructed, installed, Z
performed and/or completed in connection with the Qualified Homeowner's Home and the E
methodology used or to be used to identify, quantify arid assist the Qualified Homeowner.
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L 8. The Contractor and the Qualified Homeowner must eview, approve, execute and acknowledge, 0
where designated, the Loan Documents. The Loan Documents shall include, without limitation,
the following: (i) the Note, which shall be executed by the Qualified Homeowner in favor of the
City and(ii)the Deed of Trust and the Maintenance Agreement Covenant which Deed of Trust and y
Maintenance Agreement Covenant must be executed d acknowledged, where designated, by the
City and by the Qualified Homeowner and each must a recorded by the Contractor or by the City
in the County Recorder's Office. The General C ntractor and/or any subcontractor cannot LL
commence the construction, the installation, the p rformance and/or the completion of the .2,
Improvements and/or of the Work in connection with a Qualified Homeowner's Home until: (i)
the Loan Documents have been executed and acknowledged, where appropriate, by the City and '
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I by the Qualified Homeowner, and (ii) all recordable instruments, documents and/or agreements in
connection with the Loan, including, without limitation, the Deed of Trust and the Maintenance
Agreement Covenant have been recorded by or for the Contractor or the City in the County
Recorder's Office.
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9. The General Contractor shall obtain one or more permits as required by applicable Laws to
construct, install, perform and/or complete the Improvements and/or the Work at the Qualified
Homeowner's Home. At the time that the Contractor submits an invoice to the City for payment U)
of all or a portion of the Loan Funds in connection with the Loan made by the City to the Qualified `=
Homeowner, the Contractor shall provide the City with a copy of each permit that is or will be
required to construct, to install, to perform and/or to complete the Improvements and/or the work
in connection with the Qualified Homeowner's Home The City shall have no obligation to pay N
any invoice submitted by the Contractor to the Qualified Homeowner until the City has received w
and approved each permit issued for the Improvers is and/or for the Work completed by the
General Contractor and/or by the subcontractor and identified in the invoice. z
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10. The Contractor shall inspect and monitor the Improvements and/or the Work while in progress and
shall supervise the payment invoice procedures to ensure that all General Contractors and x
subcontractors are meeting obligations and that progress a w
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timely manner. c
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11. The Contractor shall receive and collect from the General Contractors and/or from the
subcontractors and executed lien release under one of the following lien releases, as appropriate: a
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(i) an unconditional waiver and release upon progress payment, or(ii) an unconditional waiver and
release upon final payment. The Contractor shall not make the final payment of the remaining
Loan Funds to any General Contractor until the General Contractor and/or all subcontractors have
executed and the Contractor has received the conditional waiver and release upon final payment or
the unconditional waiver and release upon final payment.
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12. The Contractor shall coordinate final inspection and payment of the General Contractor agreement N
retention with the Qualified Homeowner, with the General Contractor and with the City. The °
contract retention shall not be paid by the Contractor to the General Contractors and/or to the w
subcontractors until all time periods for filing liens have expired and no liens have been filed under w
applicable Laws. to
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13. Prior to the payment by the Contractor of the Loan Funds, or any portion thereof, to the General E
Contractor, for the construction, for the installation, for the performance and/or for the completion
of the Improvements and/or of the Work in connection with a Qualified Homeowner's Home, the a
Contractor shall notify the City that the Contractor has received an invoice for payment. Within
ten (10) business days from receipt by the Contractor of the invoice, the Contractor and the City
shall inspect and approve the Improvements and/or the Work identified in the invoice and
constructed, installed, performed and/or completed by the General Contractor and/or by any
subcontractor. The Contractor shall not pay any such invoice for the construction, installation, Z,
performance and/or completion of Improvements and/or of the Work until the Contractor and the
City have inspected and approved, in writing, the Improvements and/or the Work constructed, U_
installed, performed and/or completed by the General Contractor and/or by any subcontractors. rn
The City reserved the right to approve payment of an invoice in circumstances when no physical 0
inspection is needed as determined by the City in its sole and absolute discretion (i.e., fumigation
for termites). a
14. The Contractor shall maintain accurate records for inspection by the City concerning income and
program occupancy for all persons obtaining assistance from the Contractor pursuant to this
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Agreement including, but not limited to, the Loan Application and the other Loan Documents, c
proof of ownership, income verification, comparables or appraisals and/or Work write-ups. The °�
original Loan Documents shall be executed and acknowledged, where appropriate, by the City and
by the Qualified Homeowner, shall be for the benefit of the City and shall be transmitted by the N
Contractor to City in connection with each Loan made by the City to the Qualified Homeowner.
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15. The Contractor shall also provide quarterly reports to the City, or as otherwise required by the
City,upon the request of the City Manager to the Contractor. U.
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16. From time to time, the City and the Contractor shall coordinate inspection of the Improvements CO
and/or of the Work at the Qualified Homeowner's Home to ensure that the Improvements and/or z
the Work are performed, installed, constructed and completed in a good workmanlike manner and r
in accordance with all applicable Laws. M
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17. 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.
18. Prior to the disbursement by the city of the Loan Funds, or any portion thereof, to, or for the w
benefit of, the Qualified Homeowner pursuant to the Loan that has been awarded by the City to the a
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Qualified Homeowner, the Contractor must fully comply with, verify and confirm, to the
satisfaction of the City, that all tasks, matters, items, events, and conditions listed on the checklist
(the "Checklist") have been fully performed and satisfied, unless specifically waived in writing by
the City in connection with such Loan. The Checklist shall not be interpreted to limit or to restrict
the Agreement, in any manner whatsoever. The Checklist is attached hereto and incorporated
herein by this reference as Exhibit"11-A". r
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EXHIBIT 11-A
REHABILITATION LOAN APPLICATION APPROVAL CHECKLIST
Date of Review:
Homeowner(s) name: N
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Property Address:
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Loan Amount: w
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NHS Due Diligence:
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Qualified Homeowner Verification: E
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Resided at residence for at least one (1)year o
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Attended Maintenance Class on:
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Maintenance Covenant Agreement complete
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Affordable Housing Covenants complete (if necessary) _
Income eligibility verified E
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Subject Property Equity Determination:
— Property profile/encumbrances - Debt/ Equity Ratio: co
— Property appraisal conducted; appraisal amount: $ a.
Loan amount percentage of appraised property value: % 4)
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Ownership Verification: 0
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— Property Profile: Name(s)on grant application MUST match the one(s) 0
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listed as "Owner" or"Co-owner" on property profile o
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Preliminary title report(or other pertinent documentation)
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Legal owner& signatory on Covenant Agreement& Grant Agreement
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Property Eligibility Verification: Cn
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— Parcel Map ("Exhibit A") z
Located within Target Area (if applicable)
Verification property located in City of San Bernardino
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Eligible Improvements:
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—Scope of Work consistent with "Eligible Improvements" (see list on reverse side) E
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Construction Bids:
1. Name of contractor: High Bid Amount: $
2. Name of contractor: Middle Bid Amount: $
3. Name of contractor: Low Bid Amount: $
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Eligible Improvements List: —
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Roofing w
Exterior and interior paint W
Drought tolerant landscaping rn
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Windows z
Flooring
HVAC system c
Electrical work a
Sewer repairs
Termite repairs a
Exterior hardscape
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Door & window screens =
Tub, shower and toilet ?'
Foundation or structural repairs
Fencing U.
Alternative energy source installation rn
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