HomeMy WebLinkAboutR32- Economic Development CITY OF SAN BERNARDINO
ECONOMIC DEVELOPMENT AGENCY 0R L
FROM: Emil A.Marzullo SUBJECT: Single-Family Residence Revitalization Program
Interim Executive Director Second Quarter Report (October 1, 2010
through December 31,2010)
DATE: February 14,2011
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Synopsis of Previous Commission/Council/Committee Action(s):
On February 10, 2011,Redevelopment Committee Members Johnson,Brinker and Marquez unanimously voted to recommend
that the Community Development Commission consider this action for approval.
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Recommended Motion(s):
(Community Development Commission)
MOTION: That the Community Development Commission of the City of San Bernardino receive and file the Quarterly
Report of the Single-Family Residence Revitalization Program activities(October 1,2010 through December 31,
20 10)for the Redevelopment Agency of the City of San Bernardino
Contact Person(s): Carey K.Jenkins Phone: (909)663-1044
Project Area(s): All Ward(s): All
Supporting Data Attached: E Staff Report❑Resolution(s) ❑Agreement(s)/Contract(s)❑Map(s)❑Letter(s)
FUNDING REQUIREMENTS: Amount: $ -0- Source: N/A
Budget Authority: N/A
Signature: Fiscal Review:
Emil A.Maizullo\, Lnterim Exec tive Director Lori Pa -Til i ncial Officer
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Commission/Council Notes:
P:\Agendas\Comm Dev Commission\CDC 2011\3-07-11 SF Residence Revitalization Program 2nd Quarter Report SR.doc COMMISSION MEETING AGENDA
Meeting Date: 3/07/2011
Agenda Item Number: 32
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
SINGLE-FAMILY RESIDENCE REVITALIZATION PROGRAM SECOND QUARTER REPORT
(OCTOBER 1,2010 THROUGH DECEMBER 31,2010)
BACKGROUND:
As a result of an extensive procurement process that took place in FY2009-2010, the Community
Development Commission of the City of San Bernardino ("Commission") approved and authorized the
Interim Executive Director of the Redevelopment Agency of the City of San Bernardino ("Agency") to
execute separate Agreements, renewable annually for three (3) years, by and between the Agency and
Neighborhood Housing Services of the Inland Empire ("NHSIE") the Agency and The Oldtimers
Foundation ("The Foundation") and the Agency and Inland Housing Development Corporation ("IHDC")
(referred to collectively as"the Contractors") for the following services to take effect July 1, 2010:
1. NHSIE for the administration of the Single-Family Beautification Grant Program for an amount of
$784,875 from the Agency's Low and Moderate Income Housing Fund, the Single-Family
Rehabilitation Loan Program for an amount of$287,500 from the Agency's Low and Moderate Income
Housing Fund and $90,000 from the Agency's HOME Admin Fund for the administration of the
Homebuyer Education Program, all subject to annual funding availability.
2. IHDC for the administration of the Single-Family Beautification Grant Program for an amount of
$603,750 from the Agency's Low and Moderate Income Housing Fund and the Single-Family
Rehabilitation Loan Program for an amount of$287,500 from the Agency's Low and Moderate Income
Housing Fund, all subject to annual funding availability.
3. The Foundation for the administration of the Mobile Home Grant Program for an amount of$184,000,
from the Agency's HOME Funds and the Elderly/Special Needs Minor Repair Grant Program for an
amount of$92,000 from the Agency's Low and Moderate Income Housing Fund, all subject to annual
funding availability.
The table below details the breakdown of FY 2010-2011 funds:
Responsible Program(s) Program Numerical Compensation Funding
Or anization Area Targets Source
Prog.Delivery: $682,500
Beautification City area 65 *Prog.Admin: $102.375
Grant Low-Mod
located Total Allocation: $784,875
east of the Prog.Delivery: $250,000
Rehabilitation 215
10 *Prog.Admin: $37,500
Free
NHSIE Loan y Total Allocation: $287,500 Low-Mod
300 attendees that
Homebuyer reside or work in HOME
Education Citywide the City of Total Allocation: $90.000 Admin
Program San Bernardino
$300 each
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Agenda Item Number:
Economic Development Agency Staff Report
Single-Family Residence Revitalization Program Second Quarter Report
Page 2
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esponsible Program(s) Program Numerical Compensation Funding
Organization Area Targets Source
Beautification Prog. Delivery: $525,000
Grant City area 50 *Prog. Admin: $78,750 Low-Mod
located Total Allocation: $603,750
IHDC west of the
Rehabilitation I-215 Prog.Delivery: $250,000
Loan Freeway 10 *Prog.Admin: $37,500 Low-Mod
Total Allocation: $287,500
Mobile Home Prog.Delivery: $160,000
Grant 32 *Prog.Admin: $24,000 HOME
The Foundation Citywide Total Allocation: $184,000
Elderly/Special Prog.Delivery: $80,000
Needs Minor 50 *Prog Admin: $12,000 Low-Mod
Repair Grant Total Allocation: $92,000
*Program Admin Fee is 15%of the Program Delivery Costs
On October 20, 2008, the Agency's Integrated Housing Strategy ("Strategy") was approved by the
Community Development Commission of the City of San Bernardino ("Commission"). Included in this
Strategy is a key component of single-family homeownership and neighborhood revitalization, designed to
enhance residential neighborhoods and promote home ownership. The activities associated with the
Single- Family Residence Revitalization Program (the "Program") administered by NHSIE, IHDC and The
Foundation are integral parts of this component.
CURRENT ISSUE:
NHSIE ACTIVITIES
For the quarter ending December 31, 2010, NHSIE completed 15 beautification grants and 1 rehabilitation
loan. This is equal to 16 separate transactions for the quarter. From an expenditure standpoint, NHSIE
expended a total of$184,417 for the quarter in direct Program delivery activities. Of the 15 beautification
grants completed, 10 included homeowner contributions for a total amount of $18,282 which represents
10% of the total expenditures for the quarter.
The table below details the number of completed activities, levels of expenditures and the average cost per
transaction, for the recent quarter(October 1, 2010 through December 31, 2010)by Program type.
Program Complete Activities Ex enditure Avg.Transaction Cost
Dec 31 Qtr YTD Dec 31 Qtr YTD Dec 31 Qtr YTD
Beautification Grant 15 32 $174,040 $354,408 $11,603 $11,075
Beautification Loan 1 2 $10,377 $24,502 $10,377 $12,251
TOTAL 16 34 $184,417 $378,910 $11,526 $11,144
From a numerical target standpoint, NHSIE has reached 49% of the beautification grant and 20% of the
rehabilitation loan annual numerical target numbers. The table below details the percent to the proposed
annual quota that was met thus far in the program year.
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Meeting Date: 3/07/2011
Agenda Item Number: ��Z
Economic Development Agency Staff Report
Single-Family Residence Revitalization Program Second Quarter Report
Page 3
%of Proposed Numerical
Program Target Met
YTD
Beautification Grant 49%
Beautification Loan 20%
Furthermore, for the recent quarter, 45 persons participated in the Homebuyer Education classes
administered by NHSIE at their San Bernardino office located at 1390 North "D" Street. From these
participants, 15 were residents and/or employed within the City equating to 33% of the total persons who
participated in the classes during this reporting period.
In addition, from the 45 participants in the class, 13 City homeowners were created, equating to 30% of the
total persons who received home buyer training.
The table below details the number of prospective buyers completing homebuyer education and the
percentage completed based upon the agreed goal at the start of the fiscal year, which was a minimum of
300 participants that needed to live and/or work in the City.
Program Contractual Target Complete Activities %To Quota
SB Residents: SB Residents: SB Residents SB Residents: YTD
FY 10-11 December 31 Qtr YTD
Homebuyer Education 300 15 47 16%
Program
IMC ACTIVITIES
For the quarter ending December 31, 2010, IHDC completed 5 beautification grants and 0 rehabilitation
loans. This is equal to 5 separate transactions for the quarter. From an expenditure standpoint, IHDC
expended a total of$51,060 for the quarter in direct Program delivery activities. Of the 5 beautification
grants completed, 1 included homeowner contributions for a total amount of$1,060, which represents 2%
of the total expenditures for the quarter.
The table below details the number of completed activities, levels of expenditures and the average cost per
transaction, for the recent quarter(October 1, 2010 through December 31, 2010)by Program type.
Program Completed Activities Expenditure Avg.Transaction Cost
Dec 31 Qtr YTD Dec 31 Qtr YTD Dec 31 Qtr YTD
Beautification Grant 5 5 $51,060 $51,060 $10,212 $10,212
Beautification Loan 0 0 0 0 0 0
TOTAL 5 5 $51,060 $51,060 $10,212 $10,212
From a numerical target standpoint, IHDC has reached 10% of the beautification grant and 0% of the
rehabilitation loan annual numerical target numbers. The table below details the percent to the proposed
annual quota that was met thus far in the program year.
Program %of Proposed Numerical Target Met
YTD
Beautification Grant 10%
Beautification Loan 0
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Meeting Date: 3/07/2011
Agenda Item Number: _ 2
I
Economic Development Agency Staff Report
Single-Family Residence Revitalization Program Second Quarter Report
Page 4
F O UND A T IO N A C TI VI T I E S
As of December 30, 2010, The Foundation completed 13 minor repair grants and 0 mobile home grants.
This equals 13 separate transactions for the quarter. From an expenditure standpoint, The Foundation
expended a total of$10,013 for the quarter in direct Program delivery activities.
As reported last quarter, as a new administrator of the mobile home grant program, it was anticipated that
The Foundation would require a ramping up period in order to staff-up, market the program and create a
pipeline of potential grant recipients. To date, as indicated above, there have been 0 mobile home grants
completed during the current fiscal year.
In order to fulfill the current demand for the services offered through this Program, Agency staff informed
The Foundation of plans to seek Council approval to amend the current contract with IHDC to provide
mobile home rehabilitation and repair services within their existing target area. No funds would be
reallocated away from The Foundation and it is the Agency's expectation they would improve their
numbers in this area over the remainder of the fiscal year. However, knowing the urgent need to have this
component of the Agency's home repair services operational it is strongly recommended that additional
capacity be added. IHDC has proven capacity in this area and has expressed a strong willingness to take on
the added responsibility.
The table below details the number of completed activities, levels of expenditures and the average cost per
transaction for the recent quarter. (October 1, 2010 through December 31, 2010).
Program Completed Activities Expend ture Avg.Transaction Cost
Dec 31 Qtr YTD Dec 31 Qtr YTD Dec 31 Qtr YTD
Elderly/Special 13 30 $10,013 $29,270 $770 $976
Needs Grant
Mobile Home Grant 0 0 0 0 0 0
TOTAL 13 30 $10,013 $29,270 $770 $976
From a numerical target standpoint, The Foundation has reached 60% of the elderly/special needs grant
requirement and 0% for the mobile home grant target completion numbers. The table below details the
percent to the proposed annual quota that has been met thus far in the program year.
%of Proposed Numerical
Program Target Met
Y-to-D
Elderly/Special Needs Grant 60%
Mobile Home Grant 0%
AGGREGATE PROGRAM TOTALS
In total,the Contractors have completed 34 separate transactions for the quarter ending December 31, 2010.
Flom an expenditure standpoint, the Contractors collectively have expended a total of $245,490 for the
quarter in direct Program delivery activities. The table below details the number of completed activities,
levels of expenditures and the average cost per transaction, for the recent quarter(October 1, 2010 through
December 31,2010).
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P:Wgendas\Comm Dev Commission\CDC 2011\3-07-11 SF Residence Revitalization Program 2nd Quarter Report SR.doc COMMISSION MEETING AGENDA
Meeting Date: 3/07/2011
Agenda Item Number: �2
Economic Development Agency Staff Report
Single-Family Residence Revitalization Program Second Quarter Report
Page 5
Program Completed Activities Expenditure Avg.Transaction Cost
Administrator
December 31 YTD December 31 YTD December 31 YTD
Qtr Qtr Qtr
NHSIE 16 34 184,417 $378,910 $11,526 $11,144
IHDC 5 5 $51,060 $51,060 $10,212 $10,212
The Foundation 13 30 $10,013 1 $29,270 $770 $976
TOTAL 34 69 $245,490 1 $459,240 $7220 1 $6,656
Please see Attachment 1 for the locations of program activities and approved funding indicated by Council
Ward. The map identifies this information for the most recently completed quarter through December 31,
2010. Further examples of completed activities, Attachment 2 includes before and after pictures of 4
representative Beautification Grant projects conducted during the most recent quarter.
Income Levels
The source of funds for program activities require the Agency, through the Contractors to assist
Homeowners whose household income does not exceed certain levels. For HOME Funds, this amount
cannot exceed 80%of the Area Median Income (`AMP'), adjusted for family size. Similarly, Housing Set-
Aside Funds must be targeted to households at or below 120% of the AMI, also adjusted for family size.
Below is a chart that shows the number of households,by income level, assisted with Agency Funds.
Very Low Low Moderate
<50%AMI 50-80%AMI 81-120%AMI
Income Level #of Households #of Households #of Households
December 31 QTR December 31 QTR December 31 QTR
Fund Type
HOME 0 0 0
Set-Aside 13 15 5
TOTAL 13 15 5
From July 1, 2010 through December 31, 2010, a total of 32 very low-income families, 28 low-income
families and 8 moderate-income families, for a total of 68 households, have been assisted with Agency
Funds.
The difference between the 69 total households indicated earlier in the Current Issue section of this report
and the numbers indicated above is due to one (1) household receiving both a Rehabilitation Loan and
Beautification Grant during the quarter ending December 31, 2010. Therefore, they were counted as just
one (1)household in this section.
Program Implementation Strategies:
In an attempt to target housing resources and make a more effective program, Agency staff has been
interacting with various Council members in an attempt to identify specific target areas for these resources.
Over the next 3 years, it is the intent of the Agency to address specific single-family beautification and/or
rehabilitation needs and homeownership opportunities in each of the seven Council Wards.
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P:\Agendas\Comm Dev Commission\CDC 2011\3-07-11 SF Residence Revitalization Program 2nd Quarter Report SR.doc COMMISSION MEETING AGENDA
Meeting Date: 3/07/2011
Agenda Item Number:
Economic Development Agency Staff Report
Single-Family Residence Revitalization Program Second Quarter Report
Page 6
Thus far, Agency staff, through discussions with Councilmember Marquez, Ward 1, identified a specific
area to include the boundaries between 91h Street to the north, Spruce Street to the south, Mt. Vernon
Avenue to the west and the I-215 Freeway to the east. This component to the strategy includes targeting
beautification and rehabilitation funds to homeowners and separately attempts to acquire foreclosed and
abandoned properties in the same immediate area. The overall intent of the program is to create more
homeownership opportunities and to beautify this area of Ward 1.
As the fiscal year progresses, Agency staff will meet with other Council members to take an inventory of
their Ward's housing needs and attempt to develop a strategy for overall beautification, rehabilitation, and
enhanced home ownership in those residential neighborhoods that would benefit from these resources.
ENVIRONMENTAL IMPACT:
This item does not meet the definition of a "project" under Section 15378 of the California Environmental
Quality Act(CEQA).
FISCAL IMPACT:
There is no General Fund impact to the City. The respective contracts between the Agency and NHSIE, the
Agency and IHDC and the Agency and the Foundation are funded through the FY 2010-2011 Agency
Budget, and is derived from the Agency Housing 20% Set-Aside Funds and HOME Funds.
RECOMMENDATION:
That the Community Development Commission adopt the Motion.
Q
Emil A. Marzullo, In xecutive Director
P:\Agendas\Comm Dev Commission\CDC 20110-07-11 SF Residence Revitalization Program 2nd Quarter Report SR.doc COMMISSION MEETING AGENDA
Meeting Date: 3/07/2011
Agenda Item Number: C--