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HomeMy WebLinkAboutR-42 EDAECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FROM: Maggie Pacheco, Director SUBJECT: CONVEYANCE OF THE RESIDENTIAL Housing & Community Development PARCEL LOCATED AT 571 MAGNOLIA ►-h ^> a f STREET (PROPERTY) TO NEIGHBORHOOD DATE: August 24, 1999 HOUSING SERVICES OF THE INLAND EMPIRE, INC. (NHS) AND TO PROVIDE A GRANT TO NHS YOUTHBUILD PROGRAM ------------------------------------------------------------------------------ - - - - -- ---------------------------------------------------------------------------------------------------------------------- Synopsis of Previous Commission /Council /Committee Action(s): On August 19, 1999, the Redevelopment Committee recommended that this item be forwarded to the Community Development Commission for approval. Recommended Motion(s): (Community Development Commission) MOTION: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION APPROVING AND AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE AN AGREEMENT BETWEEN THE AGENCY AND NHS WHICH PROVIDES: (1) THE AGENCY WILL DONATE THE PROPERTY LOCATED AT 571 MAGNOLIA STREET TO NHS FOR CONSTRUCTION OF A SINGLE FAMILY HOUSING UNIT; (2) A $5,000 HOME (CHDO) GRANT TO NHS TO ASSIST WITH THE DEVELOPMENT OF THE PROPERTY; AND (3) NHS WILL BE REQUIRED TO SELL THE HOME TO A FIRST TIME LOW INCOME HOMEBUYER, CONSISTENT WITH THE YOUTHBUILD PROGRAM AND HOME REQUIREMENTS, AND RECYCLE SALE PROCEEDS FOR OTHER HOUSING PROJECTS. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Contact Person(s): Gary Van Osdel/ M. Pacheco Phone: 5081 Project Area(s) N/A Ward(s): 2 (Two) Supporting Data Attached: ❑x Staff Report ❑X Resolution(s) 1]Agreement(s) /Contract(s) ❑ Map(s) ❑ Letter/Memo FUNDING REQUIREMENTS Amount: $ 5,000 Source: HOME /CHDO Funds Budget Authority: SIGNATURE: - � Gy�� 4Ecomic Osdel, Executive rector `Maggie Pacheco, Director Deve lopment ency Housing & Community Development -- - ------------------------------------------------------------------------------------------------------------- - - - - -- ------------------------------------------------------------------------ Commission /Council Notes: GV0:MP:1ag:99 -09 -07 NHS Youthbuild COMMISSION MEETING AGENDA Meeting Date: 09/07/1999 Agenda Item Number: ECONOMIC DEVELOPMENT AGENCY STAFF REPORT Conveyance of the Parcel Located at 571 Magnolia Street to Neighborhood Housing Services of the Inland Empire, Inc. (NHS) and to Provide a Grant to NHS Youthbuild Program BACKGROUND: Under the Acquisition, Rehabilitation and Resale (ARR) Program, KMH Associates, Inc., (the `Participant ") was required to acquire the vacant land located at 571 Magnolia Street (the `Property ") for development of a new single family housing unit for resale to a first time homebuyer. However, due to financial difficulties, the Participant did not develop the land and defaulted on its loan with the lender thereby exposing the Agency financially under the loan guarantee agreement between the Agency and Participant. Consequently, in order to preserve the integrity of the ARR Program, and avoid a potential draw on the Agency loan guarantee, on December 7, 1998, the Community Development Commission authorized the Executive Director of the Agency to purchase the Property. The Property was purchased with HOME federal funds at the price of $38,971. At the time the Agency authorized the acquisition of the Property, Staff informed the Community Development Commission that it would explore the transferring of the Property to a non - profit entity for the development of a single family housing unit. Current Issue: Neighborhood Housing Services of the Inland Empire, Inc. (NHS), has explored the use of the Property and is requesting that the Agency consider transferring the Property to NHS to be used as their first target site for the Youthbuild Program. Under the Youthbuild Program, NHS is proposing to develop a four (4) bedroom, 2 bath, double car garage home consisting of 1426 square feet. NHS estimates expending and providing approximately $65,000 in material, construction, overhead and plan check fees etc. They are, however, requesting assistance from the Agency in an amount not -to- exceed $5,000 to assist with City building permit and park fees, etc. Youthbuild is a national program with an impressive 25 -year history of helping youth at risk transform their lives. In December 1998, the Department of Housing and Urban Development (HUD) awarded NHS a $350,000 grant. The grant is designed to provide comprehensive job training, education and leadership development programs for young men and women who have lost their sense of path to a productive future. The youth in the class use 50% of the time earning their GED and the other 50% learning construction skills by building houses. With the NHS Grant proceeds, all Youthbuild participants will be paid a stipend equivalent to the minimum wage for the time spent on the construction of homes. -------------------------------------------------------------------------------------------------------------------------------------------- GVO:MP:lag:99 -09 -07 NHS Youthbuild COMMISSION MEETING AGENDA Meeting Date: 09/07/1999 Agenda Item Number: kqx Economic Development Agency Staff Report NHS - Youthbuild Program August 19, 1999 Page Number -2- Out of 34 possible applicants, NHS will select 28 participants. The applicants are required to participate in a rigorous team building and academic program for a period of three (3) weeks. On August 16,1999, Los Padrinos, working in partnership with NHS, completed the screening of the applicants and conducted their first applicant and parent orientation. The NHS Youthbuild Program has been designated a Community School by the San Bernardino County Office of Superintendent of Schools. Furthermore, the County has assigned a full -time instructor to the Youthbuild Program who will work with the NHS Youthbuild Coordinator. NHS has also hired a Construction Supervisor who will provide training to the youth and supervise all housing construction work. For now, the Youthbuild Program will be held at the Mission School located in the City of Redlands, until such a time that NHS has identified a location in San Bernardino. In closing, once the house under the Youthbuild Program is completed, estimated within 6 to 8 months from approval of the plans, NHS will sell the home to a low income first time homebuyer at affordable housing costs. NHS will be required to recycle all funds generated from the sale of the Property into other Youthbuild housing projects. Fiscal Impact: Under this proposal, Staff recommends that the Agency donate the Property to NHS at a potential value of $7,000 to $10,000 and Grant NHS the sum not -to- exceed $5,000 to help with the building permit, school, park fees and plan check costs. Funds for this Grant will come from the Agency's HOME /CHDO federal grant funds. Recommendations That the Community Development Commission adopt the attached Resolution. Maggie Ncleco, Director Housing & Community Development GV0:MP:lag:99 -09 -07 NHS Youthbuild COMMISSION MEETING AGENDA Meeting Date: 09/07/1999 Agenda Item Number: Ky�. Neighborhood Housing Services of the Inland Empire, Inc. June 16, 1999 Maggie Pacheco Housing Director City of San Bernardino Economic Development Agency 201 No. E. Street San Bernardino, CA 92401 -1507 Dear Maggie As you know, we have been working toward the implementation of our Youthbuild Program in the City of San Bernardino. Enclosed is our recently published brochure describing the goals of Youthbuild. JACK L. HILL President, Chairman of the Board EDWARD F. MONCRIEF Executive Director We have previously discussed the City's interest in giving to NHSIE a single - family lot located on Magnolia Street. We are interested in pursuing this acquisition. You may have heard that we recently organized a Pride Day in the neighborhood where the lot is located. We clean up that particular parcel, and it is looking much better. Our hope is to use this lot as our first target site for the Youthbuild Program. Assuming the transfer is made, the Youthbuild participants, under our supervision and instruction, will build a home on the property. Upon completion, the house will be sold to a low- income family. We would like to meet with you to discuss the process for transferring ownership of this parcel to NHSIE. We hope to begin construction in September. We will need to design a home and obtain planning approvals in the coming weeks. Thank you for your attention Sinc r dward F. Moncrief Executive Director i( „ r `) �4 ( (909) 884 -6891 - Fax (909) 884 -6893 -1390 North "D" St. - San Bernardino, CA 92405 P.O Box 7027 -92411 �v Neighborhood Housing Services of the Inland Empire, Inc. : 1390 North D Street San Bernardino, CA 92405 TEL: (909) 884 -6891 FAX: 884 -6893 To: Maggie Pacheco, Housing Dir. FAX: (909) 384 -5135 ; -5165 From: Jin�runetti: NHSIE Your Tel: (909)384-5921 Date: August 13, 1999 Pages: RE: Cost Breakdown: Magnolia St. CC: Ed Moncrief, Exec. Director Youthbuild Project ❑ Urgent X FYI & Review ❑ Please Reply ❑ As Requested Maggie: Here is a rendition of the YouthBuild Cost Breakdown for the Magnolia Street property as per our discussion. Note that we eliminated the cost of the lot, since that is going to be donated by the City. Please call if you have any questions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 = -NHSIE == Youthbuild 1999 -2000 Project CONSTRUCTION COST BREAKDOWN New Construction on a Magnolia Street lot donated by City of San Bernardino to NHSIE Residence: 4 bedroom/ 2 bath/ double garage; 1426 sq.ft. I. HOUSE COST Cabinets .................... A. Concrete Laminated counters... 1. House .. ...........................2450 Finish lumber ............. Garage & porch ............ 600 Driveway & walk......... 1160 2 Termite treatment .............150 2040 3. Forms & hardware ............ 600 4. Fill sand ............................290 Total 5250 B. Framing 5. Rough lumber ..................4850 Cabinets .................... Fascia & trim ...................400 Laminated counters... Roof sheathing ..............1200 Finish lumber ............. Gable siding, vent ........... 300 Hardware ........................200 Total 6. Trusses ..........................3100 2040 Total 10050 C. Plumbing, Heating, Sheet Metal 7. Plumbing ..........................3000 8. Heating /AC .......................2800 9. Ducting & fittings ................400 Total 6200 D. Exterior Finish 10. Roofing ......................... 11. Windows ....................... 12. Garage door ................. 13. Siding ........................... 14. Downspouts & gutters.. 15. Fence & gate ................ 16. Fill, grade & site work... 17. Landscape .................... Total E. Electrical 18. Street service...... Wiring ............... Fixtures............ Temp.services.. 19. Backhoe .............. Total F. Finish Carpentry 20. Cabinets .................... 21. Laminated counters... 22. Finish lumber ............. 23. Finish hardware......... 400 Total YBHouseNol CostBWn.doc ..2200 ..1400 .....500 ...1680 .....250 ...1000 .....300 ....860 .....200 ...1300 ......400 .....380 .....200 8190 2480 G. Interior Finish ..650 I. HOUSE ... ............................... $ 49,654 24. Doors ..... ...........................1100 2.Tool rental & usage ................460 25. Insulation ............................600 400 26. Sheetrock/ drywall ............ 2040 27. Floor tile/ vinyl .....................630 28. Carpet .... ...........................1520 7. Closing, Title fees .............1,500 29. Paint & supplies ................980 8. Building permit ......................790 Total 6870 H. Other Finish 30. Range & hood ....................450 31. Built in appliances ..............600 32. Shower enclosure, mirror..250 Total 1300 House Cost Subtotal $ 45,140 I. Contingency 45,140 " 10 % ... ..........................4,514 HOUSE COST TOTAL $ 49,654 11. LOT COST Land value (from CITY) ....... not available TOTAL LOT VALUE WA III. OVERHEAD, CARRY COSTS, FEES A. Overhead: ..650 I. HOUSE ... ............................... $ 49,654 1. Site security/fencing.......... 1500 2.Tool rental & usage ................460 4800 3. Plans & specifications ........... 400 4. Construction Management... 5000 B. Carrying Costs: S. Bank progress inspections....250 6. Bank interest, points......... 2500 7. Closing, Title fees .............1,500 C. Other Fees 8. Building permit ......................790 9. Sewer ....... ............................250 10. Water ........ ............................250 11. School fee ........................2500 12. Park fees .. ............................600 Total Fees 16,000 2800 TOTALS ..650 I. HOUSE ... ............................... $ 49,654 1050 II. LAND COST ..... ............................N /A ..300 III. OH, FEES ......... .........................16,000 4800 TOTAL CONSTRUCTION 6 6 4 (less land) 0 Neighborhood Housing Services JACK L. HILL President, of the Chairman of the Board EDWARD F. MONCRIEF Inland Empire, Inc. Executive Director OVERVIEW NHSIE is a non - profit 501(c)(3) housing and neighborhood development corporation established in 1982. The corporation's mission is to revitalize neighborhoods through housing rehabilitation, down payment assistance, homebuyer education, and neighborhood fix -up /clean -up programs. NHSIE is a NeighborWorks® Organization chartered by the congressionally established Neighborhood Reinvestment Corporation. The organization's prime target area is comprised of a number of communities in the Inland Empire of Southern California, which includes communities in both San Bernardino and Riverside Counties. NHSIE developed the HomeStart Down Payment Assistance Program, designed to help qualified low- and moderate - income homebuyers. HomeStart is funded through contributions from private enterprise. HomeStart is available through a variety of mortgage companies and builders in selected communities throughout the United States. The corporation also administers its Gimme -Five Down Payment Assistance Grant Program funded through the Federal Home Loan Bank and through other public sources. The program provides a grant of up to five thousand dollars to low- and very-low income homebuyers. Qualified buyers may receive additional support in the form of a silent second loan. NHSIE administers down payment assistance programs for the cities of Redlands, Rancho Cucamonga, and Highland. These programs are funded primarily through the jurisdictions' Re- development agencies. Generally, they target families with incomes between 100% and 115% of the area median income. Other NHSIE activities include the acquisition, rehabilitation, and resale of FHA - foreclosed single - family homes, the acquisition and rehabilitation of multi - family units in blighted, low- income neighborhoods, and coordination of residents and volunteers around neighborhood improvement projects. NHSIE has established the HomeOwnership Center, a "school for homeownership." The purpose of the center is to support the corporation's commitment to Full -Cycle Lending. The two thousand square foot facility is located adjacent to NHSIE's corporate offices in San Bernardino. Among its features are classrooms for group meetings, a counseling room for individual credit - counseling sessions, and a resource library with training materials, periodicals, and videos on issues of credit clean -up and debt reduction, home ownership and home maintenance. The center serves as a central location for pre- and post - purchase homebuyer education and down payment assistance. HomeOwnership Center participants attend at least eight hours of homebuyer education classes prior to loan closing. The center's staff and volunteer instructors from the lender community conduct formal homebuyer education classes. Staff also coordinate with a variety of first mortgage lenders in processing down payment assistance grant and loan documents, and guide families through the closing process. NHSIE also administers Youthbuild, a comprehensive job training, education, and leadership development initiative for low- income young people who have not completed high school. At -risk 16 — 24 year -olds refine their scholastic skills while studying for the General Equivalency Diploma (GED), and learn valuable employment skills while constructing new homes for low- income citizens. Youthbuild rebuilds communities while rebuilding lives, creating new homes for low- income residents of distressed communities and giving new opportunities to alienated young people. (909) 884 -6891 • Fax (909) 884 -6893. 1390 North "D" St. • San Bernardino, CA 92405 . NeighborV irks•,,... Neighborhood Housing Services of the Inland Empire, Inc. Youthbuild Partnerships 1999 U.S. Department of Housing and Urban Development $350,000 grant to develop and implement the NHSIE Youthbuild Program San Bernardino County Schools 1 Full-time certificated teacher salary and benefits Instructional supplies Classroom Start-up costs to support the program Liability insurance for classroom JACK L. HILL President, Chairman of the Board EDWARD F. MONCRIEF Executive Director St. Bernardine's Family Focus Center Supervision of MSW intern students at Cal State San Bernardino who will supply case management services to program participants Drug and Alcohol Counseling Los Padrinos Program recruitment and screening Transportation from facility to work site Family Services Agency Classes in anger management, domestic abuse, parenting skills HUD Community Builders Fellowship Program Services of a Community Builder Fellow to network, provide mentoring opportunities for program participants, provide field trips through the American Society of Civil Engineers, as well as career exploration in construction - related fields. Casa Ramona, Inc. Child care for program participants Provident Bank Financing for new home construction Building Industry Association of Southern California Career counseling, job interview preparation, job placement and appropriate workshops (909) 884 -6891 • Fax (909) 884 -6893. 1390 North "D" St. • San Bernardino, CA 92405 NeighborV irks•._.,. NHSIE Youthbuild Partnerships Page 2 Carpenters Joint Apprenticeship and Training Union construction apprenticeship program for graduates of Youthbuild Associated Builders and Contractors of Southern California Acceptance into one of their State approved apprenticeship programs for graduates who meet minimum requirements. Home Depot Job interview preparation, job placement for graduates who meet employment requirements. Califomia State University — San Bernardino Loma Linda University 1 -3 MSW interns to provide case management, individual and group counseling sessions Jobs and Employment Services Department, San Bernardino City and County Career counseling, career exploration and placement, personal assessment and aptitude tests, as well as interest and readiness assessments State Farm Insurance Donation of computers and office equipment I 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 2'7 28 COPY RESOLUTION NO: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION APPROVING AND AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE AN AGREEMENT BETWEEN THE AGENCY AND NHS WHICH PROVIDES: (1) THE AGENCY WILL DONATE THE PROPERTY LOCATED AT 571 MAGNOLIA STREET TO NHS FOR CONSTRUCTION OF A SINGLE FAMILY HOUSING UNIT; (2) A $5,000 HOME (CHDO) GRANT TO NHS TO ASSIST WITH THE DEVELOPMENT OF THE PROPERTY; AND (3) NHS WILL BE REQUIRED TO SELL THE HOME TO A FIRST TIME LOW INCOME HOMEBUYER, CONSISTENT WITH THE YOUTHBUILD PROGRAM AND HOME REQUIREMENTS, AND RECYCLE SALE PROCEEDS FOR OTHER HOUSING PROJECTS. THE COMMUNITY DEVELOPMENT COMMISSION ACTING ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS: SECTION 1. The Executive Director of the Redevelopment Agency ( "Agency" is hereby authorized and directed to execute on behalf of said Agency an Agreement between th Agency and Neighborhood Housing Services of the Inland Empire Inc., ( NHSIE) wherein the Agency will donate the land located at 571 Magnolia Street to NHSIE for construction of a single family housing unit (the "Project "), and further provide a $5,000 HOME /CHDO grant to facilitate the Project, and as more fully described in Agreement, a copy of which is attached hereto, marked Exhibit "A" and incorporated herein by reference as though fully set forth at length. SECTION 2. The Executive Director of the Agency is hereby authorized to make minor corrections, additions, and clarifications to the Agreement, provided said changes are not substantive in nature, and do not increase the monetary impact to the Agency. SECTION 3. The authorization to execute the above referenced Agreement is rescinded if the parties to the Agreement fail to execute it within sixty (60) days of the passage this resolution. / /// 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION APPROVING AND AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE AN AGREEMENT BETWEEN THE AGENCY AND NHS WHICH PROVIDES: (1) THE AGENCY WILL DONATE THE PROPERTY LOCATED AT 571 MAGNOLIA STREET TO NHS FOR CONSTRUCTION OF A SINGLE FAMILY HOUSING UNIT; (2) A $5,000 HOME (CHDO) GRANT TO NHS TO ASSIST WITH THE DEVELOPMENT OF THE PROPERTY; AND (3) NHS WILL BE REQUIRED TO SELL THE HOME TO A FIRST TIME LOW INCOME HOMEBUYER, CONSISTENT WITH THE YOUTHBUILD PROGRAM AND HOME REQUIREMENTS, AND RECYCLE SALE PROCEEDS FOR OTHER HOUSING PROJECTS. I HEREBY CERTIFY that the foregoing resolution was duly adopted by Community Development Commission of the City of San Bernardino at a meeting thereof, held on day of , 1999 by the following vote, to wit: COMMISSION MEMBERS: AYES NAYS ABSTAIN ABSENT ESTRADA LIEN MCGINNIS SCHNETZ VACANT ANDERSON MILLER City Clerk The foregoing resolution is hereby approved this day of , 1999. IApproved as to form and Legal Content: Jame in Judith Valles, Chairperson Community Development Commission Of the City of San Bernardino 1999 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO HOME PROGRAM ACQUISITION, CONSTRUCTION AND RESALE AGREEMENT (Youth Build Project) THIS 1999 HOME PROGRAM ACQUISITION, CONSTRUCTION AND RESALE AGREEMENT (the "HOME Agreement ") is dated September 7, 1999 by and between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency ") and NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE, INC., A California NON- PROFIT CORPORATION (the "Participant"). The Agency and the Participant hereby agree as follows: RECITALS The Agency is a community redevelopment agency engaged in carrying out its public purposes including increasing, improving and preserving the supply of affordable housing in the City of San Bernardino (the "City "); and The Participant is a well- established non - profit corporation housing provider that has the experience and qualifications to undertake the HOME Project as described below. The Agency has previously acquired certain land (the "HOME Lot ") located at 571 Magnolia Street, San Bernardino, California, using a special source of funds of the Agency referred to herein as "HOME Program" funds. The Agency is the administrator of the HOME Program on behalf of the City. The HOME Program funds have been provided to the Agency to promote and enhance the community's supply of affordable housing under a federal program described at 24 Code of Federal Regulations Part 92 et seq. The HOME Lot consists of a single parcel of land without any improvements or structures situated thereon. A legal description of the HOME Lot is attached hereto as Exhibit "A ". The HOME Project as more fully described below, shall be undertaken by the Participant on the HOME Lot promptly following delivery of title of the land by the Agency to the Participant and shall include the following elements: SBEO /0001 /DOC /3 544 8/31/99 1 150 A (i) the design, construction and installation of a four(4) bedroom, two (2) bathroom new single family residential structure (including an attached garage) on the HOME Lot, (the "New Home "), consisting of approximately 1,426 square feet of interior living area, including exterior landscape amenities; (ii) marketing and sale of the completed New Home at a maximum purchase price for the New Home (including the HOME Lot) that does not exceed 95 percent of the median purchase price for the area as set forth at 24 CFR Part 92.254(a)(2)(iii); and (iii) the New Home shall be acquired by a homebuyer whose family qualifies as a low - income family (the "Qualified Homebuyer") and who shall also covenant to the Agency that the New Home shall be used and occupied as the principal residence of the Qualified Homebuyer for twenty (20) years following the date of initial occupancy of the New Home by the Qualified Homebuyer. The elements of the HOME Project are more fully described in the New Home construction budget and HOME Project description attached hereto as Exhibit "B ". NOW, THEREFORE, for and in consideration of the mutual covenants herein contained, the Agency and the Participant agree as follows: Section 1. Purpose of the HOME Agreement The purpose of this Agreement is to effectuate various redevelopment plans for the City by providing for Agency assistance to the Participant in connection with the implementation of the HOME Project, including the acquisition, construction, and disposition of the New Home on the HOME Lot to a Qualified Homebuyer as hereinafter set forth. The acquisition, construction and disposition of the New Home pursuant to this HOME Agreement is in the vital and best interests of the City and the health, safety and welfare of its residents, and in accord with the public purposes and provisions of applicable state, federal and local laws. The Community Development Commission, acting as the governing board of the Agency has determined that the implementation of the HOME Project as contemplated by this HOME Agreement will benefit the low -and moderate - income housing needs of the City, the various redevelopment project areas of the City, and assist the City with the implementation of the HOME Program and the goals and objectives of the affordable housing programs of the Agency. Section 2. Transfer of Title in the HOME Lot to the Participant and Funding of New Home Grant. (a) This HOME Agreement shall take effect upon approval by the governing board of the Agency and the full execution by the parties. The Agency shall transfer all of its right, title and SBEO /0001/DOC /3544 8/31/99 1150 A 2 interest in the HOME Lot and appropriate the funds for the New Home Grant for the account and credit of the Participant on the date when the Executive Director of the Agency confirms that each of the following conditions have been satisfied: (i) the City of San Bernardino Development Department has approved the final construction drawings and specifications for the New Home and is ready to issue all necessary building and other development permits for the construction of the New Home on the HOME Lot, subject only to the receipt of payment by the City of San Bernardino of the applicable permit fees; (ii) the Participant has completed its own due diligence investigation of the condition of the HOME Lot (including environmental and geotechnical conditions of the soils of the HOME Lot) and the Participant is satisfied with the suitability for the improvement of the HOME Project thereon and has accepted the conditions of the HOME Lot. The Participant shall evidence its acceptance of the conditions of the HOME Lot by acknowledging its acceptance of delivery of the Agency Grant Deed at the place indicated on the Agency Grant Deed. The form of the Agency Grant Deed is attached as Exhibit "C "; and (iii) the Participant has designated an escrow holder and title insurance company acceptable to the Agency and completed such arrangements as it deems appropriate for the issuance of a CLTA owner's policy of title insurance insuring its interest in the HOME Lot in a form acceptable to the Participant at time of final delivery and recordation of the Agency Grant Deed. (b) Each of the conditions set forth in Section 2(a) shall be satisfied by a date not later than ninety (90) days following the date of approval of this HOME Agreement by the governing board of the Agency. (c) Within five (5) days following the confirmation by the Executive Director of the Agency or his or her designee (collectively, the "Executive Director ") that each of the conditions set forth in Section 3(a) has been satisfied, the Executive Director shall deliver for recordation in the Official Records-of the Recorder of San Bernardino County the fully executed form of the Agency Grant Deed to the title insurance company (or escrow holder) designated by the Participant. Section 3. Disbursement of the New Home Grant (a) The Agency hereby allocates the sum of Five Thousand Dollars ($5,000.00) of Agency Fiscal Year 1998 -1999 HOME Program funds, as the New Home Grant for use and application in connection with the improvement of the HOME Project set forth in Section 3(b). (b) The Agency shall disburse the proceeds of the New Home Grant, as follows: SBEO /00011DOC /3544 8/31/99 1150 sk 3 (i) to pay the City when due for the cost of issuance of the various development and building permits and public facilities capital charges as identified in Exhibit "B "; then (ii) to pay the San Bernardino Unified School District when due the public facilities capital charges of such school district as identified in Exhibit "B "; then (iii) any remaining balance of the New Home Grant after (1) and (ii) above have been paid may be applied to pay for the cost of design and construction manaaement and supervision expenses of the Participant in connection with the development of the New Home; provided however that the aggregate amount of all disbursement of the New Home Grant for the account of the Participant shall not exceed Five Thousand Dollars ($5,000.00). (c) The initial disbursement of the New Home Grant shall occur concurrently with the recordation of the Agency Grant Deed or as soon thereafter as practicable. The remaining balance of the New Home Grant, if any, shall be disbursed to pay the participant for the HOME Project related costs as set forth in Section 3(b)(iii) within ten (10) days following the issuance of a certificate to occupy for the New Home by the City. Section 4. Improvement of the New Home (a) The Participant shall commence the construction and improvement of the New Home on the HOME Lot within thirty (30) days following the date of recordation of the Agency Grant Deed and thereafter shall diligently prosecute such work to completion without interruption. (b) The Participant shall construct and improve the New Home in a good and workman- like manner and shall complete the construction of the New Home within nine (9) calendar months following the date of recordation of the Agency Grant Deed, but in any event the Participant shall complete such construction by a date not later than June 30, 2000. (c) The Participant shall not materially modify or change the plans of improvement of the New Home without first obtaining the approval of the Agency and such approval by the Agency shall not be unreasonably withheld; provided however that the proposed modification or change is consistent with the HOME Program. (d) During the course of the improvement of the New Home, the Participant shall initiate a marketing and sale plan for the New Home to a Qualified Homebuyer. The Participant may establish a lottery system or any other fair and non - discriminatory means for selecting the Qualified Homebuyer from among those interested persons who have contacted the Participant for purchase of the New Home. The Agency shall refer all such persons who may contact the Agency regarding possible purchase of the New Home to the Participant. The designation of the Qualified Homebuyer SBEO /0001 /DOC/3544 8/31/99 1150 sk 4 by the Participant (subject only to income, credit and household size verification and other HOME Program eligibility requirements by the Participant) shall be final and conclusive. (e) At the time of sale of the New Home to the Qualified Homebuyer, the Participant shall cause the Qualified Homebuyer to execute the HOME Regulatory Covenant substantially in the form as attached to the Agency Grant Deed. The Participant shall deliver to the Agency a true and complete set of New Home purchase and sale documents, including a buyer's and seller's escrow closing statement as set forth in Section 6(c), within ten (10) days following the close of the "New Home Escrow ", as this term is defined in the HOME Regulatory Covenant. (f) The Participant hereby agrees and covenants to exercise its best reasonable efforts to cause the completed New Home to be sold to and occupied by a Qualified Homebuyer within one hundred twenty (120) days following the date of the issuance of a certificate of completion for the New Home by the City but in all events by a date not later than eighteen (18) months following the date of approval of this HOME Agreement by the governing board of the Agency. (g) At the time of sale of the New Home to the Qualified Homebuyer, the Participant shall provide the Qualified Homebuyer with a general contractor's warranty that the improvements of the New Home (including mechanical equipment) are free from defects and have been installed in a good and workman -like fashion. Section 5 Representation and Warranties of Participant. The Participant hereby represents and warrants to the Agency as follows: (i) Participant is a California non - profit corporation duly organized and existing and authorized to transact business in California and the Participant has previously qualified as a "501(c)(3)" tax exempt entity under applicable federal tax laws; (ii) Participant is a "community housing development organization" ( "CHDO "), as this term is defined at 24 CFR Part 92.2, and the Participant shall continuously maintain its status as a CHDO during the term of this HOME Agreement; (iii) the corporate charter and by -laws of the Participant authorize the Participant to undertake the HOME Project and the governing board and membership of Participant have previously taken all action necessary to authorize the execution of this HOME Agreement by the Participant; and (iv) the Participant is qualified to undertake and complete the HOME Project. SBEO /0001/DOC /3544 8/31/99 1150 A 5 Section 6 HOME Program Reservation (a) The HOME Lot and the New Home shall be reserved for sale to and occupancy by a Qualified Homebuyer. The sale price of the New Home to the Qualified Homebuyer shall not exceed 95% of the area median purchase price of the New Home as set forth at 24 CFR Part 92.254(a)(2)(iii). (b) Upon completion of the New Home, the Participant shall market the New Home for sale to a Qualified Homebuyer in accordance with Section 4(f). Participant will screen prospective purchasers for eligibility in accordance with the standards set forth in the HOME Program to insure that the Qualified Homebuyer meets the applicable HOME Program Income Guidelines. Participant shall cause the opening of a New Home Escrow with prospective purchasers and will take all steps necessary to ensure that the New Home Escrow is closed within forth -five (45) days from the date of its opening. At the close of the New Home Escrow, the Qualified Homebuyer, the Participant and the Agency shall jointly execute in recordable form a HOME Regulatory Agreement in a form reasonably acceptable to the Agency which includes the customary HOME Program regulatory covenants, property maintenance conditions and New Home resale and occupancy covenants of the Qualified Homebuyer and the Agency, as covenants which run with the land and the HOME Lot, and such HOME Regulatory Agreement shall be fully executed and filed for recordation. (c) Participant shall be responsible for ensuring that all documents required by the Agency as part of the close of the New Home Escrow and the sale of the New Home to the Qualified Homebuyer are executed and forwarded to the Agency within ten (10) days following the close of the New Home Escrow, including but not limited to the HOME Program Checklist, Verification for Applicant Eligibility, First -Time Homebuyer Disclosure Statement, and Application Affidavit under the HOME Program. Copies of these forms are on file with the Agency. Section 7 Commercial General Liabilitv Insurance and Workmans' Compensation Insurance (a) The Participant shall obtain and keep in force during the term of this HOME Agreement a commercial general liability policy of insurance with coverage at least as broad as "Insurance Services Office Commercial General Liability Form (G0001)," including but not limited to insurance against assumed contractual liability under this HOME Agreement protecting the Agency, its officers, employees and agents, as additional insureds against claims for bodily injury, personal injury and property loss or damage based upon, involving or arising out of the Project. Such insurance shall be on an occurrence basis providing single limit coverage in an amount not less than One Million Dollars ($1,000,000) in the event of bodily injury, personal injury and property loss or damage to any number of persons per occurrence. The policy shall not contain any intra- insured exclusions as between insured persons and organizations, but shall include coverage for liability assumed Agreement as an "insured contract" for the performance of the indemnity SBEO /0001 /DOC/3544 8/31/99 1150 sk 6 obligations of the Participant to the Agency. The limits or exclusions from coverage of such insurance shall not however limit the liability of the Participant nor relieve the Participant of any other obligation under this Agreement. All insurance to be carried by the Participant shall be primary to and not contributing to any single insurance carried by the Agency whose insurance shall be considered excess insurance only. (b) To the extent required by the law, the Participant shall carry and maintain workers' compensation or similar insurance in form and amounts required by law. Such a program of worker's compensation insurance shall include coverage of all "volunteers" and "students" and `'apprentices" of the Participant who perform any work on the HOME Project or the construction of the New Home. (c) All insurance which the Participant shall carry or maintain pursuant to this Section shall be in such form, for such amounts, for such periods of time as the Agency may require or approve and shall be issued by an insurance company or companies authorized to do business in California and which maintains during the term of the policy a "General Policy Holder's Rating" of at least A(v), as set forth in the most current edition of "Best's Insurance Guide ". In no circumstance will the Participant be entitled to assign to any third party rights of action which the Participant may have against the Agency. All policies or endorsements issued by the respective insurers for commercial general liability insurance will name the Agency, its officers, employees and agents, as additional insureds and provide that: (1) any loss shall be notwithstanding any act or failure to act or negligence of the Participant or the Agency or any other person; (ii) no cancellation, reduction in amount, or material change in coverage thereof shall be effective until at least thirty (3 0) days after receipt by the Agency of written notice thereof; and (iii) the insurer shall have no right of subrogation against the Agency, its officers, agents, or employees. (d) The Participant shall deliver or cause to be delivered to the Agency concurrently upon the execution of this HOME Agreement an endorsement of its commercial general liability insurance policy evidencing the existence of the insurance coverage required by the Agency and shall also deliver, no later than thirty (30) days prior to the expiration of any such policy, a certificate of insurance evidencing each renewal policy covering the same risks. Section 8 Rights of Access. For the purpose of assuring compliance with this HOME Agreement, representatives of the Agency and the City as designated by the Agency Executive Director shall have the right of access to the HOME Lot and the New Home at normal construction hours during the course of improvement of the New Home for the purpose of inspection of the work being performed. The Agency shall hold the Participant harmless from any bodily injury or related damages arising out of the activities of Agency and the City as referred to in this Section 8, resulting from the gross negligence or willful misconduct of the City or Agency while on the HOME Lot. This Section 8 shall not be deemed to diminish or limit any other right which the City Agency may have by SBEO /0001 /DOC/3544 8/31/99 1150 A 7 operation of law irrespective of the HOME Agreement. Nothing in this Section 8 shall be deemed to make either the City or the Agency a guarantor of the work of improvement of the New Home. Section 9 Local, State and Federal Laws. Participant shall carry out the HOME Project and all related activities on the HOME Lot in conformity with all applicable laws, including all applicable federal and state labor standards as applicable; provided, however, Participant and its contractors, successors, assigns, transferees, and lessees are not waiving their rights to contest any such laws and rules or standards. Section 10 Anti - Discrimination During Construction of New Home. Participant, for itself and successors and assigns, agrees that during the course of implementation of the HOME Project, Participant shall not discriminate against any employee, applicant for employment, volunteer, student or apprentice engaged in the work of improvement of the New Home or the implementation of the HOME Project because of race, color, creed, religion, age, sex, marital status, handicap, national origin or ancestry. Section l 1 Taxes, Assessments. Encumbrances and Liens. Prior to the issuance of a certificate of occupancy for the New Home by the City, Participant shall not place or allow to be placed on the HOME Lot any mortgage, trust deed, encumbrance or lien other than as expressly approved by the Agency in writing or as otherwise described in this Agreement. Participant shall remove or have removed any levy or attachment made on the HOME Lot, or provide the Agency with assurance of the satisfaction thereof within a reasonable time but in any event prior to the sale of the New Home to the Qualified Homebuyer. Section 12 Prohibition Against Transfer of the HOME Lot and New Home and /or Assignment of HOME Agreement Prior to Recordation of a Certificate of Occupancy for the New Home 1. Prior to the issuance of a certificate of occupancy for the New Home by the City , Participant shall not, except as permitted by this HOME Agreement, without the prior written approval of Agency, make any total or partial sale, transfer, conveyance, assignment or lease the HOME Lot or whole or any part of the New Home nor shall the Participant assign or sell any of its interest in this HOME Agreement. This prohibition shall not be deemed to prevent a transfer of the HOME Lot as improved with the New Home to the Qualified Homebuyer or the granting by the Participant of temporary or permanent easements or permits to facilitate the construction of the New Home. SBEO /0001 /DOC /3 544 8/31/99 1 150 A 2. Upon obtaining a certificate of occupancy from the City for the New Home, the Participant shall sell the HOME Lot, as improved with New Home to a Qualified Homebuyer in accordance with and subject to the restrictions set forth in this HOME Agreement. 3. The Participant may not rent or lease the New Home to a third party during which the Participant may hold title to the HOME Lot. No person may use the New Home for any residential dwelling purpose, prior to the close of the New Home Escrow. Section 13 No Encumbrances Except Mortgages for Construction of New Home. Notwithstanding the restrictions set forth in Section 12, a mortgage, deed of trust or other encumbrance of the HOME Lot is permitted provided that the proceeds of such a mortgage are used solely for the financing of the cost of construction of the New Home by the Participant; and further provided that the security interest of such construction lender in the HOME Lot should be subject to the HOME Program covenants in favor of the Agency as set forth in the Agency Grant Deed. Participant shall not enter into any other conveyance or lien affecting the HOME Lot without the prior written approval of Agency. The form of any such approval by Agency shall be in writing which references this Section 13, and be executed by the Executive Director. In the event that the Agency fails to either approve such a conveyance or lien within thirty (30) days after written refusal thereof is received by the Agency, such proposal, conveyance or lien should be deemed rejected. Section 14 Ri,-,ht of Agencv to Satisfv Other Liens on the HOME Lot. Prior to the completion of the New Home and after Participant has had written from the Agency, notice and has failed, after a reasonable time, but in any event not less than thirty (30) days, to challenge, cure, adequately bond against, or satisfy any lien or encumbrance on the New Home which is not otherwise permitted under this HOME Agreement, Agency shall have the right, but not the obligation, to satisfy any such lien or encumbrance. Any such sum advanced by the Agency shall be evidenced by a notice of Agency lien or a security interest in the HOME Lot. Section 15 Uses - Covenants Running with the Land. Participant covenants and agrees for itself, its successors, its assigns, and every successor in interest in the HOME Lot and the New Home, that for the period of time set forth in the Agency Grant Deed, the HOME Lot and the New Home shall be devoted to and available for sale solely to persons or families who satisfy the HOME Program requirements for Qualified Homebuyers. The Participant further covenants and warrants that Participant shall undertake the construction and improvement of the New Home in accordance with the standards set forth in this HOME Agreement. Participant covenants to obtain all necessary permits for the construction the New Home in conformity with all applicable laws. Failure to obtain all necessary permits shall be a default under this Agreement. SBEO /0001 /DOC/354t 8/31/99 1150 sk 9 Participant covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry in the sale, transfer, use, occupancy, tenure or enjoyment of the HOME Lot as improved with the New Home, nor shall Participant itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection of a Qualified Homebuyer for the HOME Lot as improved with the New Home. The foregoing covenants shall run with the land. These covenants are expressly included in the Agency Grant Deed. Section 16 Maintenance of the HOME Lot. Between the date on which the Participant acquires the HOME Lot from the Agency and the date of the close of the New Home Escrow, the Participant for itself, its successors and assigns hereby covenants and agrees that: (1) The areas of the HOME Lot and the New Home which are subject to public view (including all paving, walkways, landscaping, exterior sionage and ornamentation) shall be maintained in good repair and a neat, clean and orderly condition, ordinary wear and tear excepted. In the event that at any time following the date of close of recordation of the Agency Grant Deed, there is an occurrence of an adverse condition on any area of the HOME Lot which is subject to public view in contravention of the general maintenance standard described above, (a "Maintenance Deficiency "), then the Agency shall notify the Participant in writing of the Maintenance Deficiency and give the Participant thirty (30) days from receipt of such notice to cure the Maintenance Deficiency as identified in the notice. In the event the Participant fails to cure or commence to cure the Maintenance Deficiency within the time allowed, the Agency may conduct a public hearing following transmittal of written notice thereof to the Participant ten (10) days prior to the scheduled date of such public hearing in order to verify whether a Maintenance Deficiency exists and whether the Participant has failed to comply with the provisions of this Section. If upon the conclusion of a public hearing, the Agency makes a finding that a Maintenance Deficiency exists and that there appears to be non - compliance with the general maintenance standard described above, thereafter the Agency shall have the right to enter the HOME Lot and perform all acts necessary to cure the Maintenance Deficiency, or to take other action at law or equity the Agency may then have to accomplish the abatement of the Maintenance Deficiency. Any sum expended by the Agency for the abatement of a Maintenance Deficiency on the HOME Lot authorized by this Section shall become a lien on the HOME Lot. If the amount of the lien is not paid within thirty (3 )0) days after written demand for payment by the Agency to the Participant, the Agency shall have the right to enforce the lien in the manner as provided in subsection (c), below. (b) Graffiti, as this term is described in Government Code Section 38722, which has been applied to any exterior surface of a structure or improvement on the HOME Lot which is visible SBEO /0001 /DOC/3544 8/31/99 1150 A 10 from any public right -of -way adjacent or contiguous to the HOME Lot, shall be removed by the Participant by either painting over the evidence of such vandalism with a paint which has been color - matched to the surface on which the paint is applied, or graffiti may be removed with solvents, detergents or water as appropriate. In the event that such graffiti may become visible from an adjacent or contiguous public right -of -way but is not removed within 72 hours following the time of such application, the Agency shall have the right to enter the HOME Lot and remove the graffiti without notice to the Participant. Any sum expended by the Agency for the removal of such graffiti from the HOME Lot authorized by this Subsection (b) in an amount not to exceed $250.00 per entry by the Agency, shall become a lien on the HOME Lot. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Participant, the Agency shall have the right to enforce its lien in the manner as provided in Subsection (c), below. (c) The parties hereto further mutually understand and agree that the rights conferred upon the Agency under this Section expressly include the power to establish and enforce a lien or other encumbrance against the HOME Lot, in the manner provided under Civil Code Sections 2924, maintenance standard required under subsection (a) or subsection (b), including salaries and wages of the legal staff of this Office of Agency Counsel as may be associated with the abatement of the Maintenance Deficiency or removal of graffiti and the collection of the costs of the Agency in connection with such action. The provisions of this Section 16, shall be a covenant running with the land and the HOME Lot, and shall be enforceable by the Agency. Nothing in the foregoing provisions of this Section 16 shall be deemed to preclude the Participant from construction the New Home on the HOME Lot, provided that such construction and improvement of the New Home comply with the applicable zoning and building regulations of the City. Section 17 Effect of Violation of the Terms and Provisions of This HOME Agreement After Completion of New Home The covenants established in this HOME Agreement shall, without regard to technical classification and designation, be binding for the benefit and in favor of Agency, its successors and assigns, as to those covenants which are for its benefit. The covenants against discrimination as set forth in Section 15 shall remain in perpetuity. The covenants contained in this HOME Agreement with respect to the Qualified Homebuyer shall remain in effect for the term as set forth in the Agency Grant Deed. The Agency is deemed the beneficiary of the terms and provisions of this HOME Agreement and-of the covenants running with the land, for and in its own rights and for the purposes of protecting the interest of the community and other parties, public or private, in whose favor and for whose benefit this HOME Agreement and the covenants running with the land have been provided. Agency shall have the right, if the HOME Agreement or covenants are breached, to exercise all rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such braches to which it or any other beneficiaries of this HOME Agreement and covenants may be entitled. Section 18 No Assignment of HOME Agreement by Participant. SBEO /0001 /DOC /3 544 8/31/99 1150 A 11 The qualifications and identity of the Participant are of particular concern to the Agency. It is because of those qualifications and identity that the Agency has entered into this HOME Agreement with the Participant. No voluntary or involuntary successor in interest of the Participant shall acquire any rights or powers under this HOME Agreement except as expressly set forth herein. The Participant shall not assign all or any part of this HOME Agreement or any rights hereunder without the prior written approval of the Agency, which approval the Agency may grant. withhold or deny at its sole discretion. In the event that such a transfer or assignment may be permitted by the Agency, the assignee shall expressly assume the obligations of the Participant pursuant to this HOME Agreement in writing satisfactory to the Agency. In the absence of specific written agreement by the Agency, no such transfer, assignment or approval by the Agency shall be deemed to relieve the Participant or any other party from any obligation under this HOME Agreement. The restrictions of this Section 18 shall terminate with respect to the HOME Lot at the close of the New Home Escrow for the New Home. Nothing in this Section 18 shall act to restrict the sale of the New Home to the Qualified Homebuyer if such sale is otherwise in compliance with the terms of this HOME Agreement. Section 19 Breach and Termination. (a) Termination Without Default or Breach Prior to Transfer of Title in the HOME Lot to the Participant. This HOME Agreement may be terminated for the convenience of either party who is not then in default upon sixty (60) days notice to the other party at any time prior to the date on which the Agency Grant Deed is recorded and the Participant acquires title to the HOME Lot. (b) Defaults and Breach - General. Failure or delay by either party to perform any material term or provision of this HOME Agreement shall constitute a default under this HOME Agreement; provided however, that if the party who is otherwise claimed to be in default by the other party commences to cure, correct or remedy the alleged default within thirty (30) calendar days after receipt of written notice specifying such default and shall diligently complete such cure, correction or remedy, such party shall not be deemed to be in default hereunder. The party which may claim that a default has occurred shall give written notice of default to the party in default, specifying the alleged default. Delay in giving such notice shall not constitute a waiver of any default nor shall it change the time of default; provied, however, the injured party shall have no right to exercise any remedy for a default hereunder without delivering the written default noltice as specified herein. Any failure to delay by a party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a default. Except with respect to rights and remedies expressly declared to be exclusive in this HOME Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. SBEO /0001 /DOC/3544 8/31/99 1150 sk 12 In the event that a default of either party may remain uncured for more than thirtv (30) calendar days following written notice, as provided above, a "breach" shall be deemed to have occurred. In the event of a breach, the party who is not in default shall be entitled to terminate this HOME Agreement and seek any appropriate remedy or damages by initiating legal proceedings, if necessary. Section 20 Indemnification The Participant shall indemnify and hold harmless the Agency and the City and the officials, officers, employees and agents of the City and the Agency from and against any and all claims or liability arising from Participant's actions under this HOME Agreement or from the conduct of Participant's business or from any activity, work or things done, permitted or suffered by Participant and shall further indemnify and hold harmless the Agency and City and their officers, employees and agents from and against anv and all claims arising from any breach or default in the performance of any obligation of Participant under the terms of this HOME Agreement arising from any negligent or wronGful act or omission of the Participant or Participant's agents, contractors, employees or invitees and from and against all costs, attorneys' fees, expenses and liability incurred in the defense of any such claim or any action or proceeding brought thereon. Participant's agreement to indemnify and hold the Agency and City harmless shall extend to any claims or liabilities, including but not limited to claims pertaining to environmental conditions, alleged construction defects, or other matters, that may arise as a result of the Participant's acquisition and ownership of the HOME Lot and the improvement and sale of the New Home to a Qualified Homebuyer. Section 21 Inspection of Books. Records and Reports Agency has the right at all reasonable times to inspect the books and records of Participant pertaining to the HOME Lot and the New Home as pertinent to the purposes of this HOME Agreement. Participant has the right at all reasonable times to inspect the public records of Agency pertaining to the HOME Lot as pertinent to the purposes of the HOME Agreement. Section 22 Notice. Any notice, demand, request, consent, approval or communication that either party desires or is required to give to the other party under this HOME Agreement shall be in writing and shall be delivered to the appropriate party by personal service or U.S. Mail at its address as follows: Participant: Neighborhood Housing Services of the Inland Empire, Inc. Attn: Executive Director 1390 North "D" Street San Bernardino, California 92405 SBEO /0001 /DOC/3544 8/31/99 1150 sk 13 Agencv: Economic Development Agency Attn: Executive Director 201 North "E" Street, Suite 301 San Bernardino, California 92401 Section 23 Submission of Documents to Agencv for Approval Whenever this HOME Agreement requires Participant to submit any document to Agency for approval, which shall be deemed approved if not acted on by Agency within the specified time, said document shall be accompanied by a letter stating that it is being submitted and will be deemed approved unless rejected by Agency within the stated time. If there is not a time specified herein for such Agency action. Participant may submit a letter requiring Agency approval or rejection of documents within thirty (30) days after submission to Agency or such documents shall be deemed approved. The terms, covenants, conditions and restriction of this HOME Agreement shall extend to and shall be binding upon and inure to the benefit of the successors and assigns of Participant. Section 24 Miscellaneous This HOME Agreement is executed in two (2) duplicate originals, each of which is deemed to be an original. This HOME Agreement includes Exhibit "A" through Exhibit "C" which together with this HOME Agreement constitute the entire understanding and agreement of the parties. No private entity shall be deemed to be a third party beneficiary with respect to any provision of this HOME Agreement. This HOME Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous HOME Agreements among the parties or their predecessors in interest with respect to all or any part of the subject matter hereof. If any part or provision of this HOME Agreement is in conflict or inconsistent with applicable provisions of federal, state, or city laws, or is otherwise held to be invalid or unenforceable by any court of competent jurisdiction, such part or provision shall be suspended and superseded by such applicable law or regulations, and the remainder of this HOME Agreement shall not be affected thereby. All waivers of the provisions of this HOME Agreement must be in writing by the Executive Director and the Participant, and all amendments thereto must be in writing by the Executive Director and the Participant, except that the Executive Director may only agree to non - substantive changes hereto with concurrence by Agency Counsel. Substantial changes to this HOME Agreement shall require the prior approval of the governing board of the Agency. SBEO /0001 /DOC/3544 8/31/99 1150 A 14 This HOME Agreement, when executed by Participant and delivered to Agency, must be authorized by the governing body of the Agency and executed and delivered on behalf of the Agency by its undersigned officers on or before thirty (30) days after signing and delivery of this HOME Agreement by Participant, or this HOME Agreement shall have no force or effect, except to the extent that Participant shall consent in writing to a further extension of time for the authorization, execution and delivery of this HOME Agreement. The date of this HOME Agreement shall be the date when it shall have been signed by the Executive Director as evidence by the date shown next to the authorized signature of the Agency, below. IN WITNESS WHEREOF, Agency and Participant have executed this HOME Agreement as evidenced by the signatures of their authorized officers which appear below. Date: Approved as to Form: Agency Counsel Date: SBEO /0001/DOC/3544 8/31/99 1150 A 15 FOUNINWA Redevelopment Agency of the City of San Bernardino Gary Van Osdel, Executive Director PARTICIPANT Neighborhood Housing Services of the Inland Empire, Inc.; a California non - profit corporation C Title: i .Gr_ _ RECORDING REQUESTED BY ) Redevelopment Agency of the ) City of San Bernardino ) AND WHEN RECORDED MAIL ) PROPERTY TAX BILL TO: ) (Space above line reserved for use by Recorder) REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO GRANT DEED OF A PUBLIC AGENCY AND HOME FUNDS COMMUNITY REDEVELOPMENT AFFORDABLE SINGLE FAMILY RESIDENTIAL HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS, COVENANT AND RESTRICTIONS (Neighborhood Housing Services of the Inland Empire, Inc.) THIS GRANT DEED OF A PUBLIC AGENCY AND HOME FUNDS COMMUNITY REDEVELOPMENT AFFORDABLE SINGLE FAMILY RESIDENTIAL HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS, COVENANTS AND RESTRICTIONS (the "Agency Grant Deed ") transfers all of the right, title and interest of the Redevelopment Agency of the City of San Bernardino, a body corporate and politic (the "Agency ") in certain real property situated at 571 Magnolia Street, San Bernardino, California (the "Property ") to Neighborhood Housing Services of the Inland Empire, Inc., a California non - profit corporation, (the " Participant"), subject to the HOME Program (Title 24 Code of Federal Regulations Part 92 et sea.) and community redevelopment affordable single family housing conditions, covenants and restrictions contained in PART B hereof. The Agency is the grantor in this Grant Deed and the Participant is the grantee. For valuable consideration, the receipt of which is hereby acknowledged, the Agency hereby grants to the Participant, subject to the HOME Program and community redevelopment affordable single family housing conditions, covenants and restrictions of this Agency Grant Deed, all of the right, title and interest of the Agency in the Property, as more particularly described below: SBEO /0001/DOC/3547 8/31%99 1145 sk Page 1 of 7 ( -- The Property - -) on file in the Official Records of the Office of the Recorder of San Bernardino County. PART B The grant of the Property by the Agency to the Participant is expressly subject to the satisfaction of the following HOME Program and community redevelopment affordable single family housing conditions, covenants and restrictions as arise under that certain HOME Program `Acquisition, Rehabilitation, and Resale Agreement, dated as of September 7, 1999, (the "HOME Agreement ") by and between the Agency and the Participant: 1. the Property shall be reserved for use, improvement and occupancy for single family residential purposes for a term of twenty -five (25) years commencing on the date of recordation of this Grant Deed; and 2. the Property shall be used, reserved, sold, transferred, granted, conveyed or otherwise hypothecated and occupied only by a person or a family who is a "Qualified Homebuyer" for a term of the shorter period of either: (i) twenty -five (25) years from the date of recordation of this Grant Deed; or (ii) twenty (20) years, as provided in the HOME Covenant, upon its recordation as d.escribed in subparagraph 3, below. The words "Qualified Homebuyer" refer to any person or family who owns and occupies (or who declares their intention to own and occupy) the Property as their principal residence and who also satisfy the requirement of being a "first -time homebuyer," as defined at 24 Code of Federal Regulations Part 92, and whose annual income during the twelve (12) months preceding the date of initial occupancy of the Property by the Qualified Homebuyer does not exceed the income qualification limits for "lower income households ", as defined at 24 Code of Federal Regulations Part 92. In general, the words "lower income households" refer to persons and families SBEO /0001/DOC/3547 8/31/99 1145 sk Page 2 of 7 whose income does not exceed the qualifying limits for lower income families as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937 at 80 percent of area median income, adjusted for family size and revised annually. 3. As a condition precedent to any transfer, sale, conveyance, grant or other hypothecation by the Participant of the Property to a Qualified Homebuyer an instrument entitled "HOME Program Regulatory, Affordability, Use and Occupancy Covenant" (the "HOME Covenant "), by and among the Participant, the Qualified Homeowner and the Agency in a form reasonably acceptable to the Agency, shall be fully executed by the parties in recordable form by the Participant, the Qualified Homebuyer and the Agency and filed for recordation as an official record of the Recorder of San Bernardino County. The'form of the HOME Covenant shall be consistent with the terms and conditions of the HOME Agreement as applicable to the Qualified Homebuyer at the time of initial occupancy of the Property by a Qualified Homebuyer. A copy of the HOME Agreement is on file with the Agency Secretary as a public record and is incorporated herein by this reference. Upon its recordation, the fully executed form of the HOME Covenant shall be a separate HOME Program and community redevelopment affordable single family housing covenant which runs with the Property and which binds the Qualified Homebuyer and each heir, successor and assign of the Qualified Homebuyer for a term of twenty (20) years, as provided in the HOME Covenant. 4. Prior to the recordation of the HOME Covenant as provided in subparagraph 3 above of this Agency Grant Deed, the 8roperty shall not be improved and offered for sale or sold except to a Qualified Homebuyer for a sale price which does not exceed a sum as calculated for the Property, as set forth at 24 CFR Part 92.254(a)(2)(iii), exclusive of customary and reasonable "escrow" and sales transactional costs which may be normally allocated to a Qualified Homebuyer by an owner - builder of a single family dwelling unit offered for sale to persons and families of lower income. The provisions of this subparagraph 4 of the Agency Grant Deed shall have no further force or effect upon the Property after the date of the complete execution and recordation of the HOME Covenant. SBEO /0001/DOC/3547 8/31/99 1145 sk Page 3 of 7 5. The Property shall be subject to the following HOME Program affordable housing and redevelopment covenant in perpetuity and the text which appears in this Agency Grant Deed shall be incorporated into the text of each grant deed or other instrument which transfers the Property to a successor in interest of the Participant and each Qualified Homebuyer: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry in the sale, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of any vendee in the land herein conveyed. The foregoing covenants shall run with the land." PART C During the term of subparagraph 2 of PART B of this Agency Grant Deed, but prior to the recordation of a fully- executed copy of the HOME Covenant, the Agency hereby authorizes the Participant to conduct land improvement and new home sales and ancillary business activity on. the Property associated with the improvement and sale of the Property to a Qualified Homebuyer by the Participant, pursuant to the HOME Agreement. The provisions of this PART C of this Agency Grant Deed shall have no further force or effect upon the Property after the date of the execution and recordation of the HOME Covenant. PART D The provisions of this Agency Grant Deed are expressly declared by the Agency to promote and increase, improvement and preservation of the community's supply of low- and moderate - income housing. The transfer of the Property by the Agency to the Participant for this purpose and the recordation of this Agency Deed is required by the SBEO /0001/DOC/3547 8/31/99 1145 sk Page 4 of 7 provisions of 24 Code of Federal Regulations Part 92, and is also authorized by Health and Safety Code Sections 33334.2 and 33334.3, and other applicable law and actions of the Agency. PART E Upon the delivery of this Agency Grant Deed to the Participant, the HOME Program and the community redevelopment affordable housing conditions, covenants and restrictions as contained herein shall be covenants and restrictions which affect the Property and shall run with the land and shall be enforceable by either the Agency or by the City of San Bernardino, a municipal corporation, as provided by Health and Safety Code Section 33334.3(f)(2) against the Participant and each successor in interest or assignee of the Participant in the Property, including, without limitation, any Qualified Homebuyer. No person other than either the City of San Bernardino or the Agency shall be deemed to be authorized to enforce any provision of this Agency Grant Deed as a covenant or restriction which runs with the land and affects the Property. SBEO /0001/DOC/3547 8/31/99 1145 sk Page 5 of 7 THIS AGENCY GRANT DEED is executed as of the date indicated below next to the authorized signature of the Executive Director of the Agency. Dated: Approved As To Form: Agency Counsel [NOTARY JURAT ATTACHED] AGENCY Redevelopment Agency of the City of San Bernardino, a body corporate and politic By: Executive Director SBEO /0001/DOC/3547 8/31/99 1145 sk Page 6 of 7 ACCEPTANCE OF AGENCY GRANT DEED AND HOME FUNDS COMMUNITY REDEVELOPMENT AFFORDABLE SINGLE FAMILY RESIDENTIAL, HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS, COVENANTS AND RESTRICTIONS BY THE PARTICIPANT The undersigned officer of Neighborhood Housing Services of the Inland Empire, Inc., a California non - profit corporation (the "Participant "), hereby accepts the delivery of the instrument identified above as the "Grant Deed of a Public Agency and HOME Funds and Community Redevelopment Affordable Single Family Residential Housing Development, Use and Occupancy Conditions, Covenants and Restrictions" (the "Agency Grant Deed "), and the transfer of the Property from the Redevelopment Agency of the City of San Bernardino, subject to the conditions, covenants and restrictions contained in the Agency Grant Deed. The Participant hereby acknowledges and agrees that it accepts the Property in an "AS IS ", "WHERE IS" and "SUBJECT TO ALL FAULTS" condition and that the Participant is solely responsible for causing the Property to be improved as set forth in the HOME Agreement by and between the Agency and the Participant. The Participant hereby further accepts and agrees to each of the community redevelopment affordable single family residential housing use, improvement and occupancy conditions, covenants and restrictions contained in the Agency Grant Deed touch and concern the Property and are HOME Program and community redevelopment covenants which run with the land. PARTICIPANT Neighborhood Housing Services of the Inland Empire, Inc.; a California non - profit corporation Date: 9 By Its: [NOTARY JURAT ATTACHED] SBEO /0001/DOC/3547 8/31/99 1145 sk Page 7 of 7 -CDC 1999 -30 ACCEPTANCE OF AGENCY GRANT DEED AND HOME FUNDS COMMUNITY REDEVELOPMENT AFFORDABLE SINGLE FAMILY RESIDENTIAL HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS, COVENANTS AND RESTRICTIONS BY THE PARTICIPANT The undersigned officer of Neighborhood Housing Services of the Inland Empire, Inc., a California non - profit corporation (the "Participant "), hereby accepts the delivery of the instrument identified above as the "Grant Deed of a Public Agency and HOME Funds and Community Redevelopment Affordable Single Family Residential Housing Development, Use and Occupancy Conditions, Covenants and Restrictions" (the "Agency Grant Deed "), and the transfer of the Property from the Redevelopment Agency of the City of San Bernardino, subject to the conditions, covenants and restrictions contained in the Agency Grant Deed. The Participant hereby acknowledges and agrees that it accepts the Property in an "AS IS ", "WHERE IS" and "SUBJECT TO ALL FAULTS" condition and that the Participant is solely responsible for causing the Property to be improved as set forth in the HOME Agreement by and between the Agency and the Participant. The Participant hereby further accepts and agrees to each of the community redevelopment affordable single family residential housing use, improvement and occupancy conditions, covenants and restrictions contained in the Agency Grant Deed touch and concern the Property and are HOME Program and community redevelopment covenants which run with the land. PARTICIPANT Neighborhood Housing Services of the Inland Empire, Inc.; a California non - profit corporation Date: By Its: (NOTARY JURAT ATTACHED] SBEO /0001/DOC/3547 9/8/99 1250 sk Page 7 of 7 CITY OF SAN BERNARDINO Interoffice Memorandum CITY CLERK'S OFFICE Records and Information Management (RIM) Program DATE: August 14, 1999 TO: Gary Van Osdel, Executive Director FROM: Melanie Miller, Senior Secretary RE: Transmitting Documents for Signature Attached are the following original documents: Resolution . CDC 1999 -30 Acceptance of Agency Grant Deed (one page only) Please obtain signatures where indicated on all copies. Please return everything to the City Clerk's Office as soon as possible to my attention. I will forward to you a file copy when fully executed. If you have any questions, please do not hesitate to contact me at ext. 3212. Thank you. Rachel Clark City Clerk By: Melanie Miller Senior Secretary I hereby acknowledge receipt of the above mentioned documents. Signed: 6 Dater