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Home My WebLink About09.A- Economic Development Agency DOC ID: 1461 CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION Report/Information From: Emil A. Marzullo M/CC Meeting Date: 01/09/2012 Prepared by: Lorraine Wyche, (909) 663- 1044 Dept: Economic Development Agency Ward(s): All Subject: Single-Family Residence Revitalization Program Third Quarter Report (July 1, 2011 through September 30, 2011). Financial Impact: There is no General Fund impact to the City. The respective contracts between AHS and the Contractors are funded in the FY 2011-2012 AHS/Agency Budget, and are derived from the Low and Moderate Income Housing Set-Aside Funds and HOME Administration Funds. Motion: Receive and file the Quarterly Report of the Single-Family Residence Revitalization Program activities (July 1, 2011 through September 30, 2011) for the Redevelopment Agency of the City of San Bernardino. Synopsis of Previous Council Action: NVAI On December 8,2011,Redevelopment Committee Members Johnson,Brinker and Marquez unanimously approved the recommendation that the Community Development Commission consider this action for approval. Background: As a result of a procurement process that took place in FY 2009-2010, 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 the following service providers(collectively referred to as"the Contractors"): 1. Neighborhood Housing Services of the Inland Empire ("NHSIE") for the administration of the Single-Family Beautification Grant Program for an amount of$724,500 from the Agency's Low and Moderate Income Housing Fund, the Single-Family Rehabilitation Loan Program for an amount of$230,000 from the Agency's Low and Moderate Income Housing Fund and $30,000 from the Agency's HOME Funds for the administration of the Homebuyer Education Program, all subject to annual funding availability. 2. Inland Housing Development Corporation ("IHDC") for the administration of the Single-Family Beautification Grant Program for an amount of$362,250 from the Agency's Low and Moderate Income Housing Fund and the Single-Family Rehabilitation Loan Program for an amount of $230,000 from the Agency's Low and Moderate Income Housing Fund, all subject to annual funding availability. C Updated: 1/5/2012 by Mayra Ochiqui Packet Pg. 589 1461 3. The Oldtimer's Foundation (the "Foundation") for the administration of the Mobile Home Grant Program for an amount of$115,000 from the Agency's HOME Funds and the Elderly/Special Needs Minor Repair Grant Program for an amount of $119,600 from the Agency's Low and Moderate Income Housing Fund, all subject to annual funding availability. The table below details the breakdown of FY 2011-2012 Program production goals and funds allocated to each Contractor: Program Contractor Program Area Numerical Compensation Funding Targets Source Beautification NHSIE City area located east 60 Prog.Delivery: $630,000 Low- Grant of the I-215 Freeway *frog.Admin: $94,500 Mod Total Allocation: $724,500 IHDC City area located west 30 Prog.Delivery: $315,000 Low- of the I-215 Freeway *Prog.Admin: $47,250 Mod Total Allocation: $362,250 Rehabilitation NHSIE City area located east 8 Prog.Delivery: $200,000 Low- Loan of the I-215 Freeway *Prog.Admin: $30,000 Mod Total Allocation:$230,000 IHDC City area located west 8 Prog.Delivery: $200,000 Low- of the I-215 Freeway *Prog.Admin: $30,000 Mod Total Allocation:$230,000 Mobile Home The Citywide 20 Prog.Delivery: $100,000 Low- Grant Foundation *Prog.Admin: $15,000 Mod Total Allocation:$115,000 Elderly/Special The Citywide 65 Prog.Delivery: $104,000 Low- Needs Minor Foundation *Prog Admin: $15,600 Mod Repair Grant Total Allocation:$119,600 Homebuyer NHSIE Citywide 100 Total Allocation: $30,000 Education attendees HOME Program that reside Admin. or work in the City of San Bernardino at$300 each * Program Administration Fee is 15%of the Program Delivery Costs On January 20, 2008, the Agency's Integrated Housing Strategy ("Strategy") was approved by the Commission. Included in this Strategy is a key component of single-family homeownership and neighborhood revitalization, designed to enhance residential neighborhoods and promote homeownership. The activities associated with the Single Family Residence Revitalization Program (the"Program") administered by the Contractors are integral parts of this component. On March 3, 2011, the Commission authorized the transfer of all City redevelopment housing activities to Affordable Housing Solutions of San Bernardino ("AHS"), a non-profit 501(c)3 organization initially created and sponsored by the City and its Redevelopment Agency ("Agency") to design and implement the Federally funded Neighborhood Stabilization Program ("NSP"). This transfer was meant to counteract the potentially damaging effects of the elimination of Updated: 1/5/2012 by Mayra Ochiqui Packet Pg. 590 Ii�I1lY1ir�1�� 1461 imposed b State Legislature. Consistent with this new mandate AHS has assumed redevelopment , P Y g all responsibility for oversight and administration of the Program and will report on its activities going forward. CURRENT ISSUE: NHSIE ACTIVITIES For the quarter ending September 30, 2011, NHSIE completed 6 beautification grants and 3 rehabilitation loans. This is equal to 9 separate transactions for the quarter. From an expenditure standpoint,NHSIE expended a total of$109,290 for the quarter in direct Program delivery activities. Of the 6 beautification grants completed, 2 included homeowner contributions for a total amount of $1,290 which represents 1%of the total expenditures for the quarter. The table below details the number of completed activities, levels of expenditures and the average cost per transaction, for the recent quarter (July 1, 2011 through September 30, 2011) and year-to- date by Program type. Program Completed Activities Expenditure Avg.Transaction Cost Sept 30 Qtr YTD Sept 30 Qtr YTD Sept. 30 Qtr YTD Beautification 6 6 $61,190 $61,190 $10,198 $10,198 Grant Rehabilitation Loan 3 3 $48,100 $48,100 $16,033 $16,033 TOTAL 1 9 19 1 $109,290 1 $109,290 1 $12143 1 $12,143 Thus far, NHSIE has reached 10% of the beautification grant and 38% of the rehabilitation loan annual numerical target numbers. The table below details the percent to the proposed annual quota that has been met thus far in the program year. Program % of Proposed Numerical Target Met YTD Beautification Grant 10% Rehabilitation Loan 38% Furthermore, for the recent quarter, 28 families participated in the Homebuyer Education classes administered by NHSIE at their San Bernardino office located at 1390 North "D" Street. From these participants, 16 families were residents and/or employed within the City equating to 57% of the total persons who participated in the classes during this reporting period. In addition, from the 28 families who participated in the class, 6 City homeowners were created, equating to 21% of the total persons who received homebuyer 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 100 participants that needed to live and/or work in the City. Per the terms of the current agreement, AHS only pays NHSIE a participant fee for attendees with valid proof of residency and/or employment in the City of San Bernardino. Program Contractual Target Completed Activities % To Quota SB Residents: FY 11-12 SB Residents: SB Residents: SB Residents: September 30 YTD YTD Updated: 1/5/2012 by Mayra Ochiqui Packet Pg. 591 9.A 1461 Qtr Homebuyer Education 100 16 16 16% Program IHDC ACTIVITIES For the quarter ending September 30, 2011, IHDC completed 7 beautification grants and 2 rehabilitation loans. This is equal to 9 separate transactions for the quarter. From an expenditure standpoint, IHDC expended a total of$124,789 for the quarter in direct Program delivery activities. Of the 7 beautification grants completed, 4 included homeowner contributions for a total amount of $4,090 which represents 3%of the total expenditures for the quarter. The table below details the number of completed activities, levels of expenditures and the average cost per transaction, for the recent quarter (July 1, 2011 through September 30, 2011) and year-to- date by Program type. Program Completed Activities Expenditure Avg.Transaction Cost Sept 30 Qtr YTD Sept 30 Qtr YTD Sept 30 tr YTD Beautification 7 7 $74,789 $74,789 $10,684 $10,684 Grant Rehabilitation 2 2 $50,000 $50,000 $25,000 $25,000 Loan TOTAL 19 9 $124,789 1 $124,789 1 $13,865 $13,865 Thus far IHDC has reached 23% of the beautification grant and 25%of the rehabilitation loan annual numerical target numbers. The table below details the percent to the proposed annual quota that has been met thus far in the program year. Program I % of Proposed Numerical Target Met YTD Beautification Grant 23% Rehabilitation Loan 25% FO LINDA TION A C TI VI TIES As of September 30, 2011, The Foundation completed 4 minor repair grants and 4 mobile home grants. This equals 8 separate transactions for the quarter. From an expenditure standpoint, The Foundation expended a total of$23,887 for the quarter in direct Program delivery activities. The table below details the number of completed activities, levels of expenditures and the average cost per transaction for the recent quarter(July 1,2011 through September 30,2011) and year-to-date by Program type. Program Completed Activities Expenditure Avg.Transaction Cost Sept 30 Qtr YTD Sept 30 Qtr YTD Sept 30 Qtr YTD Elderly/ Special 4 4 $4,087 $4,087 $1,021 $1,021 Needs Grant Mobile Home 4 4 $19,800 $19,800 $4,950 $4,950 Grant TOTAL 8 8 $23,887 $23,887 $2,986 $2,986 Thus far, the Foundation has reached 6% of the elderly/special needs grant requirement and 20% for t, Updated: 1/5/2012 by Mayra Ochiqui Packet Pg. 592 1461 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. a� Program % of Proposed Numerical Target Met YTD Elderly/ Special Needs Grant 6% Mobile Home Grant 20% AGGREGATE PROGRAM TOTALS In total, the Contractors have completed 26 separate transactions for the quarter ending September 30, 2011. From an expenditure standpoint, the Contractors collectively have expended a total of $257,966 for the quarter in direct Program delivery activities. The table below details the number of completed activities, levels of expenditures and the average cost per transaction, for the recent quarter(July 1, 2011 through September 30,2011)and year-to-date. Contractor om leted Activities x enditure -Avg.Transaction Cost e t 30 Qtr TD e t 30 Qtr TD Sept 30 Qtr TD SIE 109,290 109,290 $12,143 12,143 DC 124,789 124,789 13,865 13,865 [rhe Foundation 8 23,887 23,887 2,986 2,986 OTAL 6 6 257,966 257,966 J9,922 9,922 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 September 30, 2011. Further examples of completed activities, Attachment 2 includes before and after pictures of 2 representative Beautification Grant projects conducted during the most recent quarter. Income Levels: The source of funds for program activities requires AHS, 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 ("AMI"), 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 AHS Funds. Income Level Very Low<50% Low 50-80%AMI_#of Moderate 81-120% AMI#of Households Households Sept 30 AMI#of Households Sept 30 QTR QTR Sept 30 QTR Fund Type Set-Aside 11 7 3 TOTAL 1 11 7 3 From July 1, 2011 through September 30,2011, 11 very low-income families, 7 low-income families and 3 moderate-income families, for a total of 21 households,have been assisted with Agency Funds. The difference between the 21 total households indicated earlier in the Current Issue section of this report and the numbers indicated above is due to 5 households receiving both a Rehabilitation Loan and Beautification Grant during the quarter ending September 30, 2011. Therefore, each was a Updated: 1/5/2012 by Mayra Ochiqui -- Packet Pg. 593 1461 counted as just one(1) individual household in this section. Program Implementation Strategies: Until a determination of the Low and Moderate Income Housing Fund has been made at the State level, program funding has been suspended as of October 1, 2011 for the Beautification Grant and Rehabilitation Loan Programs. The Contractors will complete those projects with executed agreements as of the October 1St cutoff date. The Mobile Home Grant and Elderly Special Needs Grant Programs are still processing new applicants. ENVIRONMENTAL IMPACT: This item does not meet the definition of a "project" under Section 15378 of the California Environmental Quality Act(CEQA). Supporting Documents: 01-09-12 SF Residential Revitalization Program 1st Qtr Ending 9.30.11 -Attachment 1 (PDF) 01-09-12 SFR Revitalization Program 1 st Qtr Report Pics -Attachment 2 (PPT) Updated: 1/5/2012 by Mayra Ochiqui Packet Pg. 594 City of . Bernardino Single •-nce Revitalization Program For Quarter • • September 30, 1 Beautification Grant Rehabilitation Loan Mobile Home Grant Minor Repair Grant Total Ward No. Amount 50% 80% 120% No. Amount 50% 80% 120% No. Amount 50% 80% No. Amount 50% 80% No. Amount 50%180% 12( 't 1 3 $30,420.00 1 1 1 1 $5,000.00 1 1 $1,275.62 1 5 $36,695.62 2 2 = 2 2 $19,900.00 2 1 $21,000.00 1 3 $40,900.00 3 0 ( Cy 3 3 $34,019.00 1 2 1 $25,000.00 1 2 $9,800.00 1 1 3 $2,344.72 3 9 $71,163.72 5 4 ( O 4 1 $10,000.00 1 1 $25,000.00 1 2 $35,000.00 2 0 ( N 5 2 $21,289.50 2 2 $21,289.50 0 0 6 2 $20,350.00 2 2 $27,100.00 2 1 $5,000.00 1 4 $4,087.73 4 9 $56,537.73 1 8 ( j 7 1 $1,732.80 1 1 $1,732.80 1 0 Total 13 $135,978.50 5 5 3 5 $98,100.00 2 3 4 J$19,800.001 3 1 1 9 $9,440.87 4 5 1 31 1$263,319.37 14 14 y m Legend Beautification Grant(13) � Rehabilitation Loan (5) N Mobile Home Grant(4) v Minor Repair Grant(9) aP j J J-Uptown RDA .r �... �F NORTHP K ` U 2 v f6 9� 48TH Q ounty. F5 Area::. 3RD J r FO th OGDEN z (V w f- i�� i p� ,O v t > t1 County it =) 2 area C a z > 30TH Q WDl �v1,AR FAQ DARB w z Nt County $ LI S/OFF W 27TH o Area O p/ Z m ( M O W M o +. I HLAND ',O w ON7, �., U g -4 21ST p N } w j A _ e- a - �� 1� ounty - Area R BASELINE .�� _s • BA EL (D O a=, 9TH ` �� nm _. 2 G a @Tkk�_ ( a 9 GREENSF C a 5TH O FOOT . _' - m.....®.... �. ., t .........._.� '0 j 4 H y - r f2 'RIALTO' RIALTO O c - I a I J 7 MERRILL ii. I 0 d MILL z A fY CENTRAL t 0 I�\`\` f4 ' w 3 �. yw c Oyy SAN BERNARDINO a AN BERNAR NO �� - w �- a VALLEY U I BRIER a VICTORIA I LUGONIA. a) Z HARRIMAN-� FAI ,HOSPITALITY � LL SLOVER LANDS to N L [� W ¢ LU Z < (n CITR p I> SON' z ''O ¢ OAS 6Q r Beautification Grant Rehabilitation Loan Mobile Home Grant Minor Repair Grant Total Project No.I Amount 1509/6180%. 120°% No. Amount 50% 80% 1201/. No.1 Amount 50%180-/. 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