HomeMy WebLinkAbout09- Development Department DE 's — LOPMENT DEPARTMENT -
OF THE CITY OF SAN BERNARDINO
REQUEST FOR COMMISSION/COUNCIL ACTION
FROM: KENETH J. HENDERSON SUBJECT: MOBILEHOME
Executive Director CONVERSION
PROGRAM
DATE: July 28, 1993
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Synopsis of Previous Commission/Council/Committee Action (s):
On October 13, 1992 and October 19, 1992, the Housing Committee and Community Development Commission
considered this matter and directed staff to develop and issue an RFP for mobilehome conversion services.
On November 16, 1992, the Community Development Commission selected the proposal from the
DeAnza/London Group. Staff was directed to negotiate an Agreement for Professional Services.
On May 18, 1993, the Housing Committee received and filed the status report concerning Phase I of the City's
Mobilehome Conversion Program.
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Recommended Motion(s):
(Community Development Commission)
MOTION: That the Community Development Commission receive and file the attached status report
concerning Phase I of the City's Mobilehome Conversion Program.
Administrator KENNE H J. ND SON
Executive Director
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Contact Person(s): Kenneth J_Henderson/Jerry Butler Phone: 5081
Project Area(s): All Ward(s): 1 - 7
Supporting Data Attached: Staff Report
FUNDING REQUIREMENTS: Amount: $ N/A Source: N/A
Budget Authority: N/A
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Commission/Council Notes:
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KJH:GWB:lag:mblehm.cdc COMMISSION MEETING AGENDA
MEETING DATE: 08/02/1993
Agenda Item Number: �_
DEVE ' OPMENT DEPARTME -' T
STAFF REPORT
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Mobilehome Conversion Prop-ram
On October 13, 1992, the Housing Committee heard a presentation from Mr. Brooks London
of the London Group regarding mobilehome conversion programs. Mr. London's presentation
involved summary descriptions of various conversion programming alternatives and a
discussion of his qualifications. After the discussion, the Committee took action requesting
the item be forwarded to the Community Development Commission.
At its October 19, 1992 meeting, the Community Development Commission took an action
directing staff to develop and issue a Request for Proposals for mobilehome conversion
services and requested staff to bring back a recommendation to the Commission at its
November 16, 1992 meeting.
Three responses were received in response to the RFP, with the respondents being as follows:
Mitchell Management Company
Pacific Housing Group, Incorporated
DeAnza in Association with the London Group
At the November 16, 1992 meeting of the Community Development Commission, the
DeAnza/London Group proposal was selected and staff was directed to negotiate an
Agreement for Professional Services.
In response to concerns voiced at the November 16, 1992 Commission meeting regarding the
cost to the Agency of Phase I of the proposed scope of services and the manner in which
parks would be identified for potential conversion, staff negotiated an agreement which
addresses those concerns cited above. First the Agency's initial outlay of cash was reduced
from $60,000 to $24,000. The consultant will advance the remaining $36,000 with no
additional exposure to the Agency. Both the consultant and the Agency will be reimbursed
upon successful conversion of a mobilehome park.
The above structure creates a necessary incentive for the consultant to effectively and
efficiently focus on those parks which have the highest potential for conversion. The
agreement also calls for the Mobilehome Rent Board Coordinator to assist and facilitate
certain tasks specified in Exhibit H of the agreement so as to accelerate the entire process,
reduce costs for the resident buyers and to facilitate the efficient processing of individual park
conversions through affected City departments.
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KJH:GWB:lag:mblehm.cdc COMMISSION MEETING AGENDA
MEETING DATE: 08/02/1993
Agenda Item Number: �_
DEVELOPMENT DEPARTMENT STAFF REPORT
Mobilehome Conversion Prot, .n
July 26, 1993
Page Number -2-
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During the last five (5) months beginning March 1, 1993, the Consultants have been
successful in accomplishing the preliminary analysis phase as follows:
• prepare a concise information digest for each park
• prepare a preliminary report on the physical infrastructure of
each park
• prepare a demographic profile of the residents of each park
• determine the level of cooperation likely to be offered by park
owners
• review all statutes and ordinances applicable to the park
conversions
• review all public and private funding sources
• determine the most appropriate conversion structure for each
park (condominium, corporate, PUD, cooperative, etc.)
• specific park identification
• resident survey and analysis
• preliminary discussions with park owners
• review and analysis of existing ordinances
• review and analysis of current land use regulations
• review and analysis of current rent control ordinances
• review and analysis of any pending rent control litigation
• attend government hearings.
At a meeting in September the consultants will submit to the Housing Committee its
recommendation for the following:
1. Which parks are suitable for conversion under each of the
potential conversion structures.
2. Alternative solutions for parks not suitable for conversion.
3. Actions to be taken by the City, including amendments of
ordinances and regulations where necessary.
Based upon the foregoing, staff recommends adoption of the form motion.
kilts
KENNE H J. HE DERSON, Executive Director
Development Department
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KJH:GA B:lag:mblehm.cdc COMMISSION MEETING AGENDA
MEETING DATE: 08/02/1993
Agenda Item Number: �_
SUMAUR Y PRESENTA TION
PROPOSAL FOR MOBILEHOME PARK CONVERSION
De Anza Group, Inc. with The LondonGroup
December 7, 1992
In its detailed presentation of November 5, 1992, the Consultant (De Anza Group, Inc. in
association with The London Group) proposes to address the City of San Bernardino's
mobilehome park conversion objectives in two phases, THE PRELMNARY ANALYSIS
PHASE and THE CONVERSION PHASE. This is a comprehensive proposal covering all 4300
spaces in the 44 mobilehome parks within the City.
THE PRELIlIIINARY ANALYSIS PHASE
During the Preliminary Analysis Phase the Consultant will:
• prepare a concise information digest for each park
• prepare a preliminary report on the physical infrastructure of each park
• prepare a demographic profile of the residents of each park
• determine the level of cooperation likely to be offered by park owners
• review all statutes and ordinances applicable to the park conversions
• review all public and private funding sources
• determine the most appropriate conversion structure for each park(condominium,
corporate, PUD, cooperative, etc.)
At the conclusion of the Preliminary Analysis Phase the Consultant will
• recommend which parks are suitable for conversion under each of the potential
conversion structures
• recommend alternate solutions for parks not suitable for conversion
• recommend a conversion budget for each of the candidate parks and for the City's
conversion program
• recommend actions to be taken by the City, including amendments of ordinances
and regulations where necessary.
EXHIBIT I
THE CONVERSION PHASE
During the Conversion Phase the Consultant will:
• negotiate purchase agreements with the park owners
• organize and work with resident acquisition associations
• handle purchase agreement executions and monitor escrows
• recommend outside professionals: appraisers, DRE budget preparers, title and
escrow companies, engineers, surveyors, etc.
• supervise the due diligence review of each park's physical condition, current
governmental compliance, condition of title, currently binding agreements, and
financial condition
• arrange interim and long term financing
• manage engineering, mapping and compliance requirements
• handle low income resident state assistance processing
• prepare homeowners association operating documents
• process through State Department of Real Estate for final public report
• coordinate bulk purchases and individual escrow purchases through closing.
EXI3IBIT I
The Development Department of the Economic Development Agency will participate with
the De Anza/London Group in the following tasks:
PHASE ONE - PRELIMINARY ANALYSIS
1. Specific park identification
2. Resident survey and analysis
3. Preliminary discussions with park owners
4. Review and analysis of existing ordinances
5. Review and analysis of current land use regulations
6. Review and analysis of current rent control ordinances
7. Review and analysis of any pending rent control litigation
8. Attend government hearings
PHASE TWO - CONVERSION TO RESIDENT OWNERSHIP
1. ORGANIZATION OF RESIDENT ASSOCIATION
a. Organize initial resident meetings:
i. Introductory seminars
ii. Confidential resident survey
b. Supervise formation of acquisition association
c. Organize structure of committees
2. PURCHASE
a. Draft language for Seller and Buyer
b. Escrow contingency period:
i. Order preliminary title report
ii. Determine existing leases and rental agreements
EXHIBIT II
\1ega1\dag\contract.exh11
PHASE II - CONVERSION TO OWNERSHIP (CONT.)
3. SELECT OUTSIDE PROFESSIONAL SERVICES
Real estate appraiser
4. FINANCING
I Finalize negotiations with governmental agencies for low income and credit
enhances programs
5. CIVIL ENGINEERING
a. City council meeting/public hearing
b. Certificate or conditional certificate of compliance
6. LOW INCOME APPLICATION
a. Send introductory letter and preliminary application package to low income
residents
b. Explain low income loan program to residents and assist in completion of
application package
"" 7. LOW INCOME FUNDING
a. If required, send follow up letter to residents requesting missing
information
EXHIBIT II
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