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HomeMy WebLinkAboutR-43 EDAECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FROM: Maggie Pacheco, Director SUBJECT: ALLOCATION OF $500,000 FROM THE Housing & Community'Development AGENCY'S LOW AND MODERATE INCOME HOUSING FUND TO DATE: August 24, 1999 NEIGHBORHOOD HOUSING SERVICES OF ' .4 THE INLAND EMPIRE, INC. (NHS) FOR ORIU � � -V j THE SINGLE FAMILY REHABILITATION LOAN /GRANT 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 NEIGHBORHOOD HOUSING SERVICES AND THE AGENCY IN THE AMOUNT OF $500,000 TO IMPLEMENT THE SINGLE FAMILY HOME IMPROVEMENT AND BEAUTIFICATION GRANT PROGRAM AS SET FORTH HEREIN Contact Person(s): Gary Van Osdel/ M. Pacheco Project Area(s) Phone: 5081 Ward(s): All Supporting Data Attached: x❑ Staff Report ❑x Resolution(s) x❑ Agreement(s) /Contract(s) ❑ Map(s) ❑ Letter/Memo FUNDING REQUIREMENTS Amount: $ 500,000 Source: Low/Moderate Income Housing Fund Budget Authority: SIGNATURE: !� Gary sdel, Execu a Director Eco omic Developmerft Agency 1999/2000 Maggi checo, Director Housing & Community Development - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Commission /Council Notes: GVO:MP:lag:99 -09 -07 NHS Single Fain COMMISSION MEETING AGENDA Meeting Date: 09/07/1999 Agenda Item Number: ECONOMIC DEVELOPMENT AGENCY STAFF REPORT Allocation of $500,000 to Neighborhood Housing Services, Inc. For Single - Family Rehabilitation Loan /Grant Program BACKGROUND: In November 1998, due to the restructuring of the Agency and in an effort to commence expending Community Development Block Grant (CDBG) funds quicker, the Community Development Commission allocated $607,000 to Neighborhood Housing Services of the Inland Empire, Inc. (NHS) for the purpose of providing loans and grants to single family homeowners (the "Single Family Home Improvement and Beautification Grant Program "). In July 1999, because of the Agency's and City's fiscal and budgetary challenges, it became necessary for Agency Staff to examine programs and projects that were funded with CDBG funds for possible transferring to other more appropriate funding sources. As such, the Community Development Commission authorized Staff to reallocate $350,000 of the $607,000 originally allocated to NHS for other needy City programs and projects, but with the understanding that Staff would return to the Agency to appropriate replacement dollars to NHS (i.e., Low and Moderate Income Housing Funds) to continue the Single Family Home Improvement and Beautification Grant Program. Current Issue• According to the City's General Plan, Housing Element, the City has over 6000 substandard housing units, representing nearly 11 percent (11%) of the City's housing stock. Of these 6000 units, 4,800 are suitable for rehabilitation. Clearly, this is overwhelming evidence that there is a need to appropriate housing resources to improve and restore the City's supply of housing, particularly, its low and moderate income housing stock. The Agency has, to some degree, begun the process of addressing the City's housing need by allocating resources to NHS and Westside Community Development Corporation, to carry out the Mobile Home Senior Grant Program and the Handyworker Minor Repair Grant Program. To date, both of the programs have provided assistance to nearly eighty (80) units and homeowners over the course of nine (9) months. Replacing the CDBG resources with Low and Moderate Income Funds, will allow the Agency to continue its mission and goal of improving and upgrading the City's housing inventory. It should be further emphasized that replacing the CDBG funds with Low and Moderate Income Funds provides greater flexibility programmatically. For example, under any home improvement loan or grant program funded with CDBG funds, there is a requirement to perform an environmental assessment and to determine the historical significance of each and every housing unit prior to proceeding with a grant or loan. GVO:MP:lag:99 -09 -07 NHS Single Fam COMMISSION MEETING AGENDA Meeting Date: 09/07/1999 Agenda Item Number: Economic Development Agency Staff Report NHS - Single Family Rehabilitation Loan/Grant Program August 19, 1999 Page Number -2- Technically, any plan to rehabilitate a structure over 50 years old must be sent to the State Historic Office (SHPO) for review and approval. This process can take over 60 days for approval or disapproval, delaying the loan and grant process and thus hindering the ability to move expeditiously with program implementation. Clearly, this requirement is a disadvantage to the utilization of CDBG funds for these types of programs. Consequently, Staff is recommending an allocation of $500,000 to NHS to continue the Single Family Home Improvement and Beautification Grant Program. Fifteen percent (15 %) of these funds will be allocated to NHS to compensate them for loan and grant processing costs. The Program will consist of providing up to $25,000 in low interest deferred loans for owner occupants, whose incomes do not exceed 120% of median income (another advantage to using Low and Moderate Income Housing Funds) and to provide up to $5,000 in exterior beautification grants (such as landscaping and exterior painting). Staff also proposes that initially, the Program be limited to and available within the NIP Target Areas. This will allow NHS to concentrate and focus their housing efforts in previously selected Council approved geographic areas and enable them to produce tangible changes in neighborhood perception and quality of life. In addition, it is intended that other critical neighborhood preservation services will be provided in the target areas, which include the team approach of working with code enforcement, Los Padrinos and NHS Youth programs, and lastly, the Police Department's Distressed Neighborhood Team. This approach will also strengthen and compliment the NIP's mission and effort. Fiscal Impact: This action item will require a $500,000 expenditure from the Agency's Low and Moderate Income Housing Fund. Funds for the Single Family Home Improvement and Beautification Grant Program have been budgeted in the Agency's 1999 -2000 budget. Recommendations: That the Community Development Commission adopt the attached Resolution. Maggie Nacheco, Director Housing & Community Development GV0:MP:1ag:99 -09 -07 NHS Single Fam COMMISSION MEETING AGENDA Meeting Date: 09/07/1999 Agenda Item Number: 0,' 1 2 3 4 5 6 7 s 9 10 11 12 13 14 15 16 17 1s 19 20 21 22 23 24 25 26 27 2s RCM RESOLUTION NO: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION APPROVING AND AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE AN AGREEMENT BETWEEN NEIGHBORHOOD HOUSING SERVICES AND THE AGENCY IN THE AMOUNT OF $500,000 TO IMPLEMENT THE SINGLE FAMILY HOME IMPROVEMENT AND BEAUTIFICATION GRANT PROGRAM AS SET FORTH HEREIN 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 the Agency and Neighborhood Housing Services of the Inland Empire Inc., ( NHSIE) in order to allocate the sum of $500,000 from the Agency's Low and Moderate Income Housing Fund to NHSIE to implement a Single Family Home Improvement and Beautification Grant Program as per the provisions of the 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 of this resolution. Entered into Record at C01►ncil1Cmy0evCms Mtg: by re Agenda Item City ClerkICOC Secy City oI San Bernardino 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 NEIGHBORHOOD HOUSING SERVICES AND THE AGENCY IN THE AMOUNT OF $500,000 TO IMPLEMENT THE SINGLE FAMILY HOME IMPROVEMENT AND BEAUTIFICATION GRANT PROGRAM AS SET FORTH HEREIN 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 ESTRADA LIEN MCGINNIS SCHNETZ VACANT ANDERSON MILLER NAYS ABSTAIN ABSENT City Clerk The foregoing resolution is hereby approved this day of , 1999. Judith Valles, Chairperson Community Development Commission Of the City of San Bernardino Approved asAo form and Legal Content: James F. I)vfman, City Attorney j in 1999 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGREEMENT FOR THE SINGLE FAMILY HOME IMPROVEMENT AND BEAUTIFICATION REHABILITATION LOANS AND GRANTS PROGRAM ORIGINATION AND SERVICE ASSISTANCE (Agency Low -and Moderate Income Home Funds) THIS 1999 AGREEMENT FOR THE SINGLE FAMILY HOME IMPROVEMENT AND BEAUTIFICATION REHABILITATION LOANS AND GRANTS PROGRAM ORIGINATION AND SERVICE ASSISTANCE is made and entered into as of September , 1999, by and between the NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE, INC., a California non - profit corporation (the "Consultant ") and the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency ") and is related to the facts set forth in the following RECITALS: - - RECITALS - - 1. The Agency has established an affordable housing improvement program known as the "Single Family Home Improvement and Beautification Loans and Grants Program" (the "Program "). 2. The purpose of the Program is to provide low- and moderate - income homeowners ( "Qualified Homeowners ") who reside in certain neighborhoods of the City of San Bernardino (the "City "), with a special source of loan and grant funds to undertake certain housing rehabilitation and correction work (including asbestos containing materials abatement work, handicap accessibility improvements and building code deficiency corrections) and certain exterior landscape and structural beautification improvements of owner- occupied single family residential dwelling units. As used in this Agreement, the words "low- and moderate - income" shall have the meaning set forth in Health and Safety Code Section 50053.5 and as further illustrated for the Program in Exhibit "A" of this Agreement (the "1999 Income Limits "). 3. The application of the proceeds of such loans and grants to such work by Qualified Homeowners under the specifications of the Program promotes and expands the supply of affordable housing in the City and fosters the elimination and prevention of blight. 4. For Agency Fiscal Year 1999 -2000, the Agency has allocated the sum of Five Hundred Thousand Dollars ($500,000.00) to be made available from the Low -and Moderate - Income SBEO /0001 /DOC /3 545 8/31/99 1025 sk Housing Fund of the Agency (the "Agency Funds ") for disbursement under the Program to Qualified Homeowners for such home improvement and beautification loans and grants. NOW, THEREFORE, it is mutually agreed by and between the parties as follows: Section 1. DEFINITIONS OF CERTAIN TERMS. In addition to the words and phrases which are defined in the Recitals of this Agreement, the following words and terms shall have the meaning set forth below: • "Agency- Designated Neighborhood" means and refers to specific neighborhoods or areas in the City which the Agency has instructed the Consultant are eligible for Program Loans. During the initial term of this Agreement and until receipt of further instruction by the Consultant from the Agency, all Program Loans -shall be originated for Qualified Homeowners who reside in any one (1) of seven-(7) separate target areas designated under the Neighborhood Initiative Program (the "NIP ") of the City as depicted on the vicinity map included as Exhibit "B ". • "Executive Director" means and refers to the Executive Director of the Agency and his or her authorized representatives. • "Home" means and refers to the land and the single family dwelling unit in which the Qualified Homebuyer resides as its principal residence. • "Program Loan" means and refers to each single family home improvement and beautification loan and grant transaction by and between a Qualified Homeowner and the Agency under the Program, to be originated and serviced by the Contractor as set forth in this Agreement. Each Program Loan may include a component which is repayable as a loan by the Qualified Homeowner to the Agency for the structural interior rehabilitation improvements to the Home and a component which is a grant for the eligible exterior aesthetic amenities and landscape improvements, if any. For the purposes hereof, in a particular instance, a Program- Loan to a Qualified Homeowner may thus include both a loan and grant component under the Program, or a loan component only, depending on the specific Home and the Qualified Homeowner. The terms and conditions of each Program Loan are described in the Scope of Services attached hereto as Exhibit "C" and are more fully set forth in the "EDA Rehabilitation Loan & Grant Policies and Procedures Manual" as of file with the Agency. Each Program Loan shall be evidenced by the Program Loan Documents. • "Program Loan Applicant" means and refers to the written application for a Program Loan which has been signed by the Qualified Homeowner and verified by the Consultant to be complete. S BEO /0001 /DOC /3545 8/31/99 1025 sk 2 • "Program Loan Application" means and refers to a completed written application for a Program Loan which has been executed by a Qualified Homeowner. Each Program Loan Application shall contain the information relating to the Qualified Homeowner and the proposed use of the Program Loan proceeds by the Qualified Homeowner together with a current preliminary title report or other proof of title acceptable to the Agency for the Home. • "Program Loan Disbursement Account" means and refers to the custodial deposit account which the Consultant shall establish with an FDIC - insured depository institution for the receipt and disbursement of all Agency Fund proceeds under a Program Loan. Such deposit account agreement among the Consultant, the Agency and such depository institution shall be in a form and substance as reasonably satisfactory to the Agency. No other funds of the Consultant shall be deposited or co- mingled in the Program Loan Disbursement Account. The Consultant shall serve as the trustee of the Agency in the administration of all Agency Funds or deposit in the Program Loan Disbursement Account, including any interest as may accrue thereon. • "Program Loan Documents" means and refers collectively to each of the following documents executed by the Qualified Homeowner: (i) the Program Loan Application; (ii) the Program Loan Agreement and the customary consumer loan term disclosure documentation; (iii) the promissory note of the Qualified Homeowner payable to the Agency and dated as of the date of initial disbursement of Agency Funds for the account of the Qualified Homeowner to the Program Loan Disbursement Account; (iv) the deed of trust on the Home which secures the repayment of the promissory note to the Agency. The deed of trust also contains certain community redevelopment home affordability covenants enforceable by the Agency; and (v) a policy of title insurance in favor of the Agency as lender insuring its security interest in the deed of trust. SBEO /0001 /DOC /3545 8/31/99 1025 sk 3 The general form of Program Loan Documents (ii), (iii) and (iv) which shall be completed and used in each Program Loan transaction are on file with the Agency • "Qualified Homeowner" means and refers to a person or household which owns and occupies a single family resident dwelling unit (a "Home ") as its principal residence in an Agency- Designated Neighborhood for at least twelve (12) continuous months preceding the date of submission of its Program Loan Application to the Consultant; and (ii) has a personal or household income level, adjusted for family size, during the twelve (12) months preceding the date of submission of its Program Loan Application to the Agency within the ranges of income for low- and moderate income households, adjusted for family size, as set forth in Exhibit "A ". • "Services" means and refers to the Program Loan origination, Agency Fund disbursement control and related accounting and Work monitor (course of construction builder contract) services to be provided by the Consultant to the Agency. The various elements of the Services are more fully set forth in the "Scope of Services" attached hereto as Exhibit "C ". • "Work" means and refers to the single family housing improvement and beautification work to be performed by a state - licensed general contractor on each Home pursuant to the terms of a written agreement by and between the Qualified Homeowner and such general contractor. Only the items of Work set forth in such a contract shall be authorized for payment by the Consultant, up to the maximum amount authorized under the terms of the Program Loan for such Work. Any costs of Work in excess of the maximum amount of the Program Loan (which are not the fault of such general contractor) shall be paid for by the Qualified Homeowner. Section 2 . EMPLOYMENT OF CONSULTANT. The Agency agrees to employ the Consultant to perform the Services and the Consultant hereby agrees to accept such employment and to perform the Services as set forth herein. Section 3 . SCOPE OF SERVICES. Consultant agrees to provide the Services to the Agency as set forth herein and as described in the Scope of Services attached as Exhibit "C ". Promptly following the date of approval of this Agreement by the governing board of the Agency the Consultant shall: (1) cause the Program Loan Disbursement Account to be established and the general form of an FDIC - insured deposit account agreement acceptable to the Agency to be fully executed by the Consultant, the depository institution and the Agency within thirty (30) days following the date of approval of this Agreement; SB EO /0001 /DOC /3545 8/31/99 1025 sk 4 (2) develop a specific neighborhood outreach and Program Loan availability and information program in consultation with the Executive Director, which is focused on Qualified Homeowners and other interested persons in each Agency- Designated Neighborhood who may seek to obtain a Program Loan; (3) in consultation with the Executive Director complete the preparation of the general form of a Program Loan Application for general use in connection with the Services and the origination of Program Loans. The Executive Director shall review and approve the final form of the Program Loan Application as submitted by Consultant within thirty (30) days following the date of approval of the Agreement. The Consultant shall designate a title insurance company acceptable to the Agency which shall coordinate the issuance of a lender's policy of title insurance in favor of the Agency at the time of recordation of the deed of trust under each Program Loan; (4) subject to the completion of the tasks described in paragraphs (1), (2) and (3) above, begin the process of receiving and reviewing Program Loan Applications and provide the Services in accordance with the Scope of Services; (5) Consultant shall transmit a copy of a completed set of Program Loan Documents, together with a recommendation of the Consultant to fund such Program Loan and a request for a transfer of Agency Funds for the account of the Qualified Homeowner, to the Executive Director for authorization for funding. The Executive Director shall either authorize the funding of such Program Loan or reject the request for funding on behalf of the Agency within ten (10) days of receipt from the Consultant. Any rejection of a Program Loan Application shall be in xNTiting and state the reasons for such action. Each acceptance of a Program Loan Application by the Agency shall be evidenced by the signature of the Executive Director of the Program Loan Documents. All Project Loan Documents for each Program Loan shall be completed by the Qualified Homeowner and the Consultant. and the disbursement of Agency Funds on each Program Loan shall occur within sixty (60) days following the date of submission of the funding request to the Executive Director, or the Project Loan Agreement shall be of no further force or effect; (6) no fees, charges or expenses shall be payable by any applicant for a Program Loan to the Consultant, except from Agency Funds, nor shall the Consultant charge a Qualified Homeowner for any cost or service in connection with the origination or subsequent administration of a Program Loan during the time Work is performed at the Home, except as authorized under the Program; (7) Consultant shall instruct the Executive Director to transfer Agency Funds for the account of each Qualified Homeowner to the Program Loan Disbursement Account as set forth in subparagraph (5), above, upon confirmation by the Consultant that Program Loan Documents for the Program Loan are complete and that the deed of trust is ready for SBEO /0001 /DOC /3545 8/31/99 1025 sk 5 recordation. The Consultant shall coordinate the issuance of the policy of title insurance in favor of the Agency by the title insurance copy with the recordation of the deed of trust; (8) Consultant shall deliver a fully executed original set of Program Loan Documents for each Program Loan (except for the deed of trust) to the Agency upon request of funding and transfer of Agency Funds for the account of the Qualified Homeowner to the Program Loan Disbursement Account; (9) Consultant shall verify that no Agency Funds are disbursed from the Program Loan Disbursement Account for the account of a Qualified Homeowner except: (i) to pay a state - licensed general contractor for Work performed at the Home pursuant to a written agreement between such contractor and the Qualified Homeowner (less a 10% retention pending completion of the Work and final release of all mechanics and materials liens); and no disbursement of Agency Funds from the Program Loan Disbursement Account shall be authorized for any building materials or equipment items which are not physically delivered at the Home before the date of payment of such Agency Funds to the general contractor; or (ii) to pay a Program Loan title fee or cost amount expressly authorized in writing by the Executive Director; (10) Consultant shall prepare and maintain an Agency Funds disbursement ledger for all payments authorized and made by the Consultant to general contractors for the account and debit to each Qualified Homeowner under each Program Loan. Such ledger shall show each payment by date and reference the particular Program Loan to which it corresponds. Such ledger shall also include a monthly starting and ending balance for the Program Loan Disbursement Account, a final reconciliation of the adjusted balance of each Program Loan upon the completion of the Work, and such other accounting information as the Executive Director may request. A copy of such ledger shall be submitted to the Executive Director each month with the first such monthly submittal due on the first day of the next month following the date of the initial deposit of Agency Funds into the Program Loan Disbursement Account. (11) no Work shall be authorized for payment by the Consultant unless the Project Loan Documents are complete and the Consultant has received a fully executed copy of the contract by and between the general contractor and the Qualified Homeowner. Once the Work has commenced on a particular Home, neither the Qualified Homeowner or the general contractor shall authorize an amendment or modification of such contract to include any item of Work which is not eligible for payment using Agency Funds under the terms and conditions of the Program and the Program Loan. Each such contract by and between the general contractor and the Qualified Homeowner shall include a section which recites the words of the first two (2) sentences of this paragraph (11). SBEO /000 l /DOC /3 545 8/31/99 1025 sk 6 Section 4 . TIME OF PERFORMANCE OF SERVICES. The Services to be performed hereunder by the Consultant shall be undertaken and completed in such sequence as to assure expeditious completion and best carry out the purposes of the Program and this Agreement. All Services required hereunder shall begin upon the execution of this Agreement. Section 5 . TERM OF AGREEMENT. This Agreement shall take effect upon approval by the governing board of the Agency and the complete execution by the parties. The Agreement shall remain in effect through September 30, 2000. Upon mutual written agreement of the parties in their sole and separate discretion dated on or before August 1, 2000, this Agreement may be extended after September 30, 2000, for an additional period of time of up to twelve (12) months. Section 6 . COMPENSATION PAYABLE BY AGENCY TO CONSULTANT. (a) The Agency shall compensate Consultant for the performance of the Services in accordance with the following schedule: (1) during the first sixty (60) days of the term of this Agreement the Agency shall pay Consultant a fee of Six Thousand Two Hundred Fifty Dollars ($6,250.00) per month (with the first payment pro -rated for the number of calendar days between commencement of the Services and the first compensation payment date); (2) during each succeeding month of the term of this Agreement following subparagraph (1), above, the Agency shall pay Consultant a monthly fee for Services calculated as follows: (i) One Thousand Five Hundred Dollars ($1,500.00); plus (ii) Two Thousand Three Hundred Seventy Five Dollars ($2,375.00) for each Project Loan for which Agency Funds are initially transferred by the Agency in such month to the Program Loan Disbursement Account, to a maximum payment by the Agency under this subparagraph (ii), of Four Thousand Seven Hundred Fifty Dollars ($4,750.00) per month. (b) Sums payable by the Agency to the Consultant as compensation for Services shall be paid by the Agency directly to the Consultant, and shall not be disbursed by the Consultant from the Program Loan Disbursement Account. (c) Payment for Services will be made by the Agency as of the first day of each calendar month with the first such payment due on the first day of the next calendar month following the date of the complete execution of the Agreement by the parties. SBEO /0001 /DOC /3545 8/31/99 1025 sk 7 Section 7 . PERSONNEL OF CONSULTANT. Consultant represents that it has, or will secure at its own expense, all personnel required to perform the Services. All of the Services required hereunder will be performed by persons who are either employed by or under the supervision and control of the Consultant, and all personnel engaged in the Services shall be fully qualified to perform such Services. Section 8 . INDEPENDENT CONTRACTOR. All acts of Consultant and all others acting on behalf of Consultant relating to the performance of this Agreement, shall be performed as independent contractors and not as agents, officers, or employees of Agency or the City. Consultant, has no authority to bind or incur any obligation on behalf of Agency or the City. Consultant has no authority or responsibility to exercise any right or power vested in the Agency or the City. No agent, officer, or employee of the Agency or the City shall be considered an employee of Consultant. It is understood by both Consultant and Agency that this Agreement shall not under-any circumstance be construed or considered to create an employer - employee relationship or a joint venture as between the Consultant and the Agency. Consultant is and at all times during the term of this Agreement shall represent and conduct itself as an independent contractor and not as an employee of the Agency. Consultant shall determine the method, details, and means of performing the Services under this Agreement. Consultant shall be responsible to the Agency only for the requirements and results specified in this Agreement, and except as expressly provided in this Agreement, shall not be subject to control by the Agency with respect to the physical action or activities of Consultant in fulfillment of this Agreement. Consultant has control over the manner and means of performing the Services under this Agreement so long as consistent with the requirements of the Program. Consultant is permitted to provide services to others during the same period Services are provided to the Agency under this Agreement. If necessary, Consultant has the responsibility for employing other persons or firms to assist Consultant in fulfilling the terms and obligations under this Agreement. If in the performance of this Agreement any third persons are retained as subcontractors by Consultant, such persons shall be entirely and exclusively under the direction, supervision, and control of Consultant. All terms of employment including hours, wages, working conditions, discipline, hiring, and discharging or any other term of employment or requirements of lave shall be determined by the Consultant. Consultant hereby agrees to indemnify, defend, and hold the Agency harmless from any and all claims that may be made against the Agency or based upon any contention by any employee of Consultant or by any third party that an employer - employee relationship exists between person and the Agency, by reason of the performance of any of the Services under this Agreement. Section 9 TRANSFER OF AGENCY FUNDS TO PROGRAM LOAN DISBURSEMENT ACCOUNT. The Agency shall promptly honor each request by the Consultant for the Agency to transfer Agency Funds to the Program Loan Disbursement Account to fund each completed Program Loan as submitted by the Consultant under Section 3(5). Within ten (10) days following receipt of each SBEO /0001 /DOC/3545 8/31/99 1025 sk 8 request for remittance of Agency Funds, the Agency shall transfer by bank check such Agency Funds to the Program Loan Disbursement Account. Section 10 COMMERCIAL GENERAL LIABILITY INSURANCE AND WORKMANS' COMPENSATION INSURANCE. (a) The Consultant shall obtain and keep in force during the term of this 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 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 Services provided by the Consultant. 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 obligations of the Consultant to the Agency. The limits or exclusions from coverage of such insurance shall not however limit the liability of the Consultant nor relieve the Consultant of any other obligation under this Agreement. All insurance to be carried by the Consultant 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 Consultant shall carry and maintain workers' compensation or similar insurance in form and amounts required by law. (c) All insurance which the Consultant shall carry or maintain pursuant to this Section 10 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 Consultant be entitled to assign to any third party rights of action which the Consultant 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: (i) any loss shall be notwithstanding any act or failure to act or negligence of the Consultant 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 Consultant shall deliver or cause to be delivered to the Agency concurrently upon the execution of this Agreement an endorsement of its commercial general SBEO /0001 /DOC/3545 8/31/99 1025 sk 9 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 l 1 INDEMNIFICATION. Consultant shall indemnify, defend and hold harmless the Agency, its officers, agents and employees, from and against any and all claims, demands and liability for damages for personal injury or property damage suffered by reason of any act or omission of Consultant or Consultant's employees, volunteers, agents or contractors. Agency shall indemnify, defend and hold harmless the Consultant, its officers, and employees, from all claims, demands and liability for damages for personal injury or property damage suffered by reason of any act or omission of the Agency or any of its officers or employees or agents, except where such action or omission giving rise to such a claim is caused by or is the result of an action, omission or request of Consultant or Consultant's officers, or employees, or is alleged to arise out of the execution of this Agreement. The provisions of Section 11 shall survive the expiration or early termination of this Agreement. Section 12. DEFAULTS AND BREACH - GENERAL. Failure or delay by either party to perform any material term or provision of this' Agreement shall constitute a default hereunder; provided however, that if the party who is otherwise claimed to be in default by the other party commences to cure, correct or remedy the alleged default within thirty (3 )0) 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; provided, however, the injured party shall have no right to exercise any remedy for a default hereunder without delivering the written default notice 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, and the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. In the event that a default of either party may remain uncured for more than thirty (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 Agreement and seek any appropriate remedy or damages by initiating legal proceedings. The prevailing party in any such legal proceedings shall be entitled to recover as an element of its costs of bringing such suit, and not as part of its damages, its reasonable attorneys' fees and costs. Section 12 NONDISCRIMINATION. During Consultant's performance of the Services, Consultant shall not discriminate on the grounds of race, religious creed, color, national origin, age, ancestry, physical handicap, medical condition, marital status, sex or sexual orientation in the SBEO /0001 /DOC /3545 8/3 1 /99 1025 sk 10 selection and retention of employees and subcontractors and the procurement of materials and equipment, except as provided in Section 12940 of the California Government Code. Section 13 CONFLICT OF INTEREST. Consultant warrants, by execution of this Agreement, that it has no interest, present or contemplated, in any Project Loan or any Home benefitted thereby or Work performed on any Home using a Project Loan. Consultant further warrants that it owns or possesses no interest in real property, business interests or owner of income (other than such amounts of compensation payable by the Agency to Consultant for the Services under this Agreement) that will be affected by the Program or, alternatively, if such interest exists or arises the Consultant will promptly file with the Agency an affidavit disclosing any such interest. Section 14 AMENDMENTS. All amendments to this Agreement shall be subject to the approval of both parties in the sole discretion of each of them, mutual and in writing. Section 15 TERMINATION. - (a) This Agreement may be terminated for any reason by either party who is not then in default upon sixty (60) days' prior written notice to the other party. In such event the Consultant shall be entitled to receive compensation for Services pro -rated through the date of such termination, provided that the Services have been rendered. (b) In the event of a termination of the Agreement as a result of a breach, the rights and duties of the parties shall be as set forth in Section 12. (c) In the event of any termination of this Agreement, Consultant shall promptly return all Project Loan Disbursements to the Agency without charge or expense to the Agency. . Section 16 ASSIGNMENT. It is mutually understood and agreed that this Agreement shall be binding upon the Agency and its successors and upon the Consultant and its successors. Neither this Agreement, nor any part thereof, nor monies due or to become due thereunder, may be assigned by the Consultant without the prior written consent and approval of the Agency. The Agency and the Consultant hereby agree to the full performance of the covenants contained herein. Section 17 NOTICES. Delivery of any notice, bill, invoice or report required by this Agreement shall be sufficient if sent by one party to the other in the United States mail, postage prepaid, to the address noted below: A encv Consultant Economic Development Agency of Neighborhood Housing Services of SBEO /0001 /DOC /3545 8/31199 1025 sk 1 1 the City of San Bernardino Attention: Executive Director 201 North "E:" Street, Suite 301 San Bernardino, California 92401 the Inland Empire, Inc. 1390 North "D" Street San Bernardino, California 92405 Phone: (909) 884 -6891 FAX: (909) 884 -6893 Section 18 REPRESENTATION AND WARRANTY OF CONSULTANT. The Consultant hereby represents and warrants to the Agency as follows: (i) Consultant is a California non - profit corporation duly organized and existing and authorized to transact business in California; (ii) the corporate charter and by -laws of the Consultant authorize the Consultant to provide the Services to the Agency and the governing board and membership of Consultant have previously taken all action necessary to authorize the execution of this Agreement by the Consultant; (iii) the consultant is qualified to perform the Services. Section 19 PROGRAM LOANS AND PROGRAM LOAN DOCUMENTS ARE THE PROPERTY OF THE AGENCY. Each Program Loan is the property and asset of the Agency. The Consultant has no property interest in any such Program Loan and the Consultant shall not transfer, assign or pledge as collateral or claim any other security interest in any such Program Loan. All of the Project Loan Documents are the property of the Agency, and the Consultant shall maintain all such Project Loan Documents in its possession as confidential consumer business records of the Qualified Homeowner and the Agency and upon the conclusion of this Agreement, all such Project Loan Documents shall be delivered by the Consultant to the Agency. All Agency Funds deposited to the Program Loan Disbursement Account are the property of the Agency until paid by the Consultant for the account of a Qualified Homeowner under the applicable Project Loan Documents. Section 20 GENERAL. This Agreement constitutes the sole agreement between the parties. All prior conversations, agreements or representations relating hereto are integrated in this Agreement. No oral agreement, representation or warranty shall be binding upon the parties. SBEO /0001 /DOC /3545 8/31/99 1025 sk 12 IN WITNESS WHEREOF the Consultant and the Agency have caused this Agreement to be duly executed on the dates indicated below next to the authorized officers of each of them. This Agreement may be executed in counterparts, but this Agreement shall have no force or effect unless it has been fully executed by the parties. Date: Approved as to Form: Agency Counsel AGENCY: Redevelopment Agency of the City of San Bernardino IC GARY VAN OSDEL Executive Director CONSULTANT: Neighborhood Housing Services of the Inland Empire, Inc., a California non - profit corporation Date: By: Title: Date: By: Title: SB EO /0001 /DOC /3545 8/31/99 1025 sk 1 1999 Income Limits Single Family Owner - Occupied Loan and Beautification Grant Program *Income Level HOUSEHOLD SIZE (No. of Persons Per Household) 1 2 3 4 5 6 7 8 Very Low - 50% $16,500 $18,900 $21,250 $23,600 $25,500 $27,400 $29,250 $31,150 Low - 80% $26,450 $30,200 $34,000 $37,750 $40,800 $43,800 $46,800 $49,850 Moderate -120% $39,650 $45,300 $51,000 $56,650 $61,200 $65,700 $70,250 $74,800 San Bernardino Area Median Income $47,200 for a family of four. *Note: Income Limits are subject to annual renewal. EXHIBIT "A" HUD Housing & Neighborhood Initiative Program (NIP) 215 -'T'*, NORTH Target Areas EXHIBIT '413911 City of San Bernardino * ECONOMIC DEVELOPMENT AGENCY A. Rehabilitation Loan /Grant Program Processing and Servicing Fees ($75,000) The Agency shall compensate NHS the total sum of $75,000 for the administration and implementation of the Program herein and for services rendered under this Agreement. NHS shall bill the Agency monthly in equal installments up to the maximum amount of compensation stated herein. B. Single Family Rehabilitation Loan And Beautification Grant Program ( "the Program ") ($425,000) NHS shall utilize the funds herein to provide deferred low interest (3 %) loans (maximum of $25,000 per property) and grants (maximum of $5,000 per property) to income eligible (120% median income and below - See Attachment 1, 1999 Income Limits) owner- occupied single family homeowners in order to improve the City's housing stock and remedy unhealthy living conditions, specifically in the seven (7) NIP areas. On a case by case basis, subject to extenuating circumstances, the amounts herein may be exceeded, provided NHS has obtained approval by the Executive Director of the Agency (Director), or his designee, the administrator of this Agreement. 2. Under the direction of the HCD Director, NHS shall administer and implement the Program herein and shall utilize the applicable and pertinent sections of the Economic Development Agency's (EDA), Rehabilitation Loan & Grant Policies and Procedures Manual for guidance on processing and packaging all loans and grants under this Agreement. 3. NHS shall accept loan /grant applications from respective homeowners, first within all approved NIP seven (7) target areas (see MAP), and to determine income and improvement eligibility, determine equity on the subject property, verify ownership by obtaining a title report or other pertinent documentation from a reputable Title Company. Should there be no interest by homeowners in the NIP target areas for an extended period, NHS shall consult with Director , and offer the Program on an as needed, first come, first serve basis, to homeowners throughout the City. 4. Inspecting eligible properties to determine the type of health and safety and code violation repair work needed, including asbestos and lead based paint removal, the age and overall condition of the unit and to ensure that all units rehabilitated under the Program when completed are aesthetically pleasing. 5. Preparing and completing work write -ups, the cost estimates and bid package for the improvements for each property. 6. Soliciting bids for the rehabilitation work from a list of pre- approved general contractors, if necessary. Assisting homeowners with the selection of a contractor, and the execution of the contract between owner and contractor, including the Scope of Work and Schedule of Performance; schedule and conduct pre - construction and walk thru conferences, etc. 7. Inspection and monitoring the rehabilitation work while in progress and supervising the payment invoice procedures to ensure that all contractors and subcontractors are meeting obligations and that progress, payments and retentions are paid in a timely manner. 8. Coordinating with the Contractor and final inspection and payment of the contract retention. 9. Maintain a file for each Program participant and insure that all documentation is on file, including, but not limited to, application, proof of ownership, income verification, comparables or appraisals, work write -ups, contracts, promissory notes, deeds of trust, etc. The original promissory note and deed of trust shall be for the benefit of the Agency and shall be transmitted to Agency upon request for loan funds. 10. Provide any and all services required by the Director and Director of HCD, or his/her designee, in order to effectively implement and complete the services under this Agreement. EXHIBIT "C" 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 NO: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION APPROVING AND AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE AN AGREEMENT BETWEEN NEIGHBORHOOD HOUSING SERVICES AND THE AGENCY IN THE AMOUNT OF $500,000 TO IMPLEMENT THE SINGLE FAMILY HOME IMPROVEMENT AND BEAUTIFICATION GRANT PROGRAM AS SET FORTH HEREIN 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 the Agency and Neighborhood Housing Services of the Inland Empire Inc., ( NHSIE) in order to allocate the sum of $500,000 from the Agency's Low and Moderate Income Housing Fund to NHSIE to implement a Single Family Home Improvement and Beautification Grant Program as per the provisions of the 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 of this resolution. 1 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION APPROVING AND AUTHORIZING THE EXECUTIVE DIRECTOR TO 2 EXECUTE AN AGREEMENT BETWEEN NEIGHBORHOOD HOUSING 3 SERVICES AND THE AGENCY IN THE AMOUNT OF $500,000 TO IMPLEMENT THE SINGLE FAMILY HOME IMPROVEMENT AND 4 BEAUTIFICATION GRANT PROGRAM AS SET FORTH HEREIN s I HEREBY CERTIFY that the foregoing resolution was duly adopted by Community 6 meetin Development Commission of the City of San Bernardino at a g 7 1999 b the following vote, to wit: thereof, held on day of � Y g 8 9 COMMISSION MEMBERS: AYES NAYS ABSTAIN ABSENT 10 ESTRADA 11 LIEN 12 MCGINNIS 13 SC14NETZ 14 VACANT 1s ANDERSON MILLER 16 17 18 City Clerk 19 20 The foregoing resolution is hereby approved this day of 51999. 21 22 Judith Valles, Chairperson 23 Community Development Commission 24 Of the City of San Bernardino Approved as o form and Legal Content: 25 James F. an, City Attorney 26 27 By: 28 1999 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGREEMENT FOR THE SINGLE FAMILY HOME IMPROVEMENT AND BEAUTIFICATION REHABILITATION LOANS AND GRANTS PROGRAM ORIGINATION AND SERVICE ASSISTANCE (Agency Low -and Moderate Income Home Funds) THIS 1999 AGREEMENT FOR THE SINGLE FAMILY HOME IMPROVEMENT AND BEAUTIFICATION REHABILITATION LOANS AND GRANTS PROGRAM ORIGINATION AND SERVICE ASSISTANCE is made and entered into as of September , 1999, by and between the NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE, INC., a California non - profit corporation (the "Consultant ") and the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency ") and is related to the facts set forth in the following RECITALS: - - RECITALS - - 1. The Agency has established an affordable housing improvement program known as the "Single Family Home Improvement and Beautification Loans and Grants Program" (the "Program "). 2. The purpose of the Program is to provide low- and moderate - income homeowners ( "Qualified Homeowners ") who reside in certain neighborhoods of the City of San Bernardino (the "City "), with a special source of loan and grant funds to undertake certain housing rehabilitation and correction work (including asbestos containing materials abatement work, handicap accessibility improvements and building code deficiency corrections) and certain exterior landscape and structural beautification improvements of owner- occupied single family residential dwelling units. As used in this Agreement, the words "low- and moderate - income" shall have the meaning set forth in Health and Safety Code Section 50053.5 and as further illustrated for the Program in Exhibit "A" of this Agreement (the "1 999 Income Limits "). 3. The application of the proceeds of such loans and grants to such work by Qualified Homeowners under the specifications of the Program promotes and expands the supply of affordable housing in the City and fosters the elimination and prevention of blight. 4. For Agency Fiscal Year 1999 -2000, the Agency has allocated the sum of Five Hundred Thousand Dollars ($500,000.00) to be made available from the Low -and Moderate - Income SBEO /0001 /DOC /3 545 8/31/99 1025 sk Housing Fund of the Agency (the "Agency Funds ") for disbursement under the Program to Qualified Homeowners for such home improvement and beautification loans and grants. NOW, THEREFORE, it is mutually agreed by and between the parties as follows: Section 1. DEFINITIONS OF CERTAIN TERMS. In addition to the words and phrases which are defined in the Recitals of this Agreement, the following words and terms shall have the meaning set forth below: • "Agency- Designated Neighborhood" means and refers to specific neighborhoods or areas in the City which the Agency has instructed the Consultant are eligible for Program Loans. During the initial term of this Agreement and until receipt of further instruction by the Consultant from the Agency, all Program Loans -shall be originated for Qualified Homeowners who reside in any one (1) of seven -(7) separate target areas designated under the Neighborhood Initiative Program (the "NIP ") of the City as depicted on the vicinity map included as Exhibit "B ". • "Executive Director" means and refers to the Executive Director of the Agency and his or her authorized representatives. • "Home" means and refers to the land and the single family dwelling unit in which the Qualified Homebuyer resides as its principal residence. • "Program Loan" means and refers to each single family home improvement and beautification loan and grant transaction by and between a Qualified Homeowner and the Agency under the Program, to be originated and serviced by the Contractor as set forth in this Agreement. Each Program Loan may include a component which is repayable as a loan by the Qualified Homeowner to the Agency for the structural interior rehabilitation improvements to the Home and a component which is a grant for the eligible exterior aesthetic amenities and landscape improvements, if any. For the purposes hereof, in a particular instance, a Program- Loan to a Qualified Homeowner may thus include both a loan and grant component under the Program, or a loan component only, depending on the specific Home and the Qualified Homeowner. The terms and conditions of each Program Loan are described in the Scope of Services attached hereto as Exhibit "C" and are more fully set forth in the "EDA Rehabilitation Loan & Grant Policies and Procedures Manual" as of file with the Agency. Each Program Loan shall be evidenced by the Program Loan Documents. • "Program Loan Applicant" means and refers to the written application for a Program Loan which has been signed by the Qualified Homeowner and verified by the Consultant to be complete. SBEO /0001 /DOC /3545 8/31/99 1025 sk 2 • "Program Loan Application" means and refers to a completed written application for a Program Loan which has been executed by a Qualified Homeowner. Each Program Loan Application shall contain the information relating to the Qualified Homeowner and the proposed use of the Program Loan proceeds by the Qualified Homeowner together with a current preliminary title report or other proof of title acceptable to the Agency for the Home. • "Program Loan Disbursement Account" means and refers to the custodial deposit account which the Consultant shall establish with an FDIC - insured depository institution for the receipt and disbursement of all Agency Fund proceeds under a Program Loan. Such deposit account agreement among the Consultant, the Agency and such depository institution shall be in a form and substance as reasonably satisfactory to the Agency. No other funds of the Consultant shall be deposited or co- mingled in the Program Loan Disbursement Account. The Consultant shall serve as the trustee of the Agency in the administration of all Agency Funds or deposit in the Program Loan Disbursement Account, including any interest as may accrue thereon. • "Program Loan Documents" means and refers collectively to each of the following documents executed by the Qualified Homeowner: (i) the Program Loan Application; (ii) the Program Loan Agreement and the customary consumer loan term disclosure documentation; (iii) the promissory note of the Qualified Homeowner payable to the Agency and dated as of the date of initial disbursement of Agency Funds for the account of the Qualified Homeowner to the Program Loan Disbursement Account; (iv) the deed of trust on the Home which secures the repayment of the promissory note to the Agency. The deed of trust also contains certain community redevelopment home affordability covenants enforceable by the Agency; and (v) a policy of title insurance in favor of the Agency as lender insuring its security interest in the deed of trust. SBEO /0001 /DOC /3 545 8/31/99 1025 sk 3 The general form of Program Loan Documents (ii), (iii) and (iv) which shall be completed and used in each Program Loan transaction are on file with the Agency • "Qualified Homeowner" means and refers to a person or household which owns and occupies a single family resident dwelling unit (a "Home ") as its principal residence in an Agency- Designated Neighborhood for at least twelve (12) continuous months preceding the date of submission of its Program Loan Application to the Consultant; and (ii) has a personal or household income level, adjusted for family size, during the twelve (12) months preceding the date of submission of its Program Loan Application to the Agency within the ranges of income for low- and moderate income households, adjusted for family size, as set forth in Exhibit "A ". • "Services" means and refers to the Program Loan origination, Agency Fund disbursement control and related accounting and Work monitor (course of construction builder contract) services to be provided by the Consultant to the Agency. The various elements of the Services are more fully set forth in the "Scope of Services" attached hereto as Exhibit "C ". • "Work" means and refers to the single family housing improvement and beautification work to be performed by a state - licensed general contractor on each Home pursuant to the terms of a written agreement by and between the Qualified Homeowner and such general contractor. Only the items of Work set forth in such a contract shall be authorized for payment by the Consultant, up to the maximum amount authorized under the terms of the Program Loan for such Work. Any costs of Work in excess of the maximum amount of the Program Loan (which are not the fault of such general contractor) shall be paid for by the Qualified Homeowner. Section 2 . EMPLOYMENT OF CONSULTANT. The Agency agrees to employ the Consultant to perform the Services and the Consultant hereby agrees to accept such employment and to perform the Services as set forth herein. Section 3 . SCOPE OF SERVICES. Consultant agrees to provide the Services to the Agency as set forth herein and as described in the Scope of Services attached as Exhibit "C ". Promptly following the date of approval of this Agreement by the governing board of the Agency the Consultant shall: (1) cause the Program Loan Disbursement Account to be established and the general form of an FDIC - insured deposit account agreement acceptable to the Agency to be fully executed by the Consultant, the depository institution and the Agency within thirty (3 )0) days following the date of approval of this Agreement; SBEO /0001 /DOC /3545 8/31/99 1025 sk 4 (2) develop a specific neighborhood outreach and Program Loan availability and information program in consultation with the Executive Director, which is focused on Qualified Homeowners and other interested persons in each Agency- Designated Neighborhood who may seek to obtain a Program Loan; (3) in consultation with the Executive Director complete the preparation of the general form of a Program Loan Application for general use in connection with the Services and the origination of Program Loans. The Executive Director shall review and approve the final form of the Program Loan Application as submitted by Consultant within thirty (30) days following the date of approval of the Agreement. The Consultant shall designate a title insurance company acceptable to the Agency which shall coordinate the issuance of a lender's policy of title insurance in favor of the Agency at the time of recordation of the deed of trust under each Program Loan; (4) subject to the completion of the tasks described in paragraphs (1), (2) and (3) above, begin the process of receiving and reviewing Program Loan Applications and provide the Services in accordance with the Scope of Services; (5) Consultant shall transmit a copy of a completed set of Program Loan Documents, together with a recommendation of the Consultant to fund such Program Loan and a request for a transfer of Agency Funds for the account of the Qualified Homeowner, to the Executive Director for authorization for funding. The Executive Director shall either authorize the funding of such Program Loan or reject the request for funding on behalf of the Agency within ten (10) days of receipt from the Consultant. Any rejection of a Program Loan Application shall be in writing and state the reasons for such action. Each acceptance of a Program Loan Application by the Agency shall be evidenced by the signature of the Executive Director of the Program Loan Documents. All Project Loan Documents for each Program Loan shall be completed by the Qualified Homeowner and the Consultant, and the disbursement of Agency Funds on each Program Loan shall occur within sixty (60) days following the date of submission of the funding request to the Executive Director, or the Project Loan Agreement shall be of no further force or effect; (6) no fees, charges or expenses shall be payable by any applicant for a Program Loan to the Consultant, except from Agency Funds, nor shall the Consultant charge a Qualified Homeowner for any cost or service in connection with the origination or subsequent administration of a Program Loan during the time Work is performed at the Home, except as authorized under the Program; (7) Consultant shall instruct the Executive Director to transfer Agency Funds for the account of each Qualified Homeowner to the Program Loan Disbursement Account as set forth in subparagraph (5), above, upon confirmation by the Consultant that Program Loan Documents for the Program Loan are complete and that the deed of trust is ready for SBEO /0001 /DOC /3545 8/31/99 1025 sk 5 recordation. The Consultant shall coordinate the issuance of the policy of title insurance in favor of the Agency by the title insurance copy with the recordation of the deed of trust; (8) Consultant shall deliver a fully executed original set of Program Loan Documents for each Program Loan (except for the deed of trust) to the Agency upon request of funding and transfer of Agency Funds for the account of the Qualified Homeowner to the Program Loan Disbursement Account; (9) Consultant shall verify that no Agency Funds are disbursed from the Program Loan Disbursement Account for the account of a Qualified Homeowner except: (i) to pay a state - licensed general contractor for Work performed at the Home pursuant to a written agreement between such contractor and the Qualified Homeowner (less a 10% retention pending completion of the Work and final release of all mechanics and materials liens); and no disbursement of Agency Funds from the Program Loan Disbursement Account shall be authorized for any building materials or equipment items which are not physically delivered at the Home before the date of payment of such Agency Funds to the general contractor; or (ii) to pay a Program Loan title fee or cost amount expressly authorized in writing by the Executive Director; (10) Consultant shall prepare and maintain an Agency Funds disbursement ledger for all payments authorized and made by the Consultant to general contractors for the account and debit to each Qualified Homeowner under each Program Loan. Such ledger shall show each payment by date and reference the particular Program Loan to which it corresponds. Such ledger shall also include a monthly starting and ending balance for the Program Loan Disbursement Account, a final reconciliation of the adjusted balance of each Program Loan upon the completion of the Work, and such other accounting information as the Executive Director may request. A copy of such ledger shall be submitted to the Executive Director each month with the first such monthly submittal due on the first day of the next month following the date of the initial deposit of Agency Funds into the Program Loan Disbursement Account. (11) no Work shall be authorized for payment by the Consultant unless the Project Loan Documents are complete and the Consultant has received a fully executed copy of the contract by and between the general contractor and the Qualified Homeowner. Once the Work has commenced on a particular Home, neither the Qualified Homeowner or the general contractor shall authorize an amendment or modification of such contract to include any item of Work which is not eligible for payment using Agency Funds under the terms and conditions of the Program and the Program Loan. Each such contract by and between the general contractor and the Qualified Homeowner shall include a section which recites the words of the first two (2) sentences of this paragraph (11). SBEO /0001 /DOC /3 545 8/31/99 1025 sk 6 Section 4 . TIME OF PERFORMANCE OF SERVICES. The Services to be performed hereunder by the Consultant shall be undertaken and completed in such sequence as to assure expeditious completion and best carry out the purposes of the Program and this Agreement. All Services required hereunder shall begin upon the execution of this Agreement. Section 5 . TERM OF AGREEMENT. This Agreement shall take effect upon approval by the governing board of the Agency and the complete execution by the parties. The Agreement shall remain in effect through September 30, 2000. Upon mutual written agreement of the parties in their sole and separate discretion dated on or before August 1, 2000, this Agreement may be extended after September 30, 2000, for an additional period of time of up to twelve (12) months. Section 6 . COMPENSATION PAYABLE BY AGENCY TO CONSULTANT. (a) The Agency shall compensate Consultant for the performance of the Services in accordance with the following schedule: (1) during the first sixty (60) days of the term of this Agreement the Agency shall pay Consultant a fee of Six Thousand Two Hundred Fifty Dollars ($6,250.00) per month (with the first payment pro -rated for the number of calendar days between commencement of the Services and the first compensation payment date); (2) during each succeeding month of the term of this Agreement following subparagraph (1), above, the Agency shall pay Consultant a monthly fee for Services calculated as follows: (i) One Thousand Five Hundred Dollars ($1,500.00); plus (ii) Two Thousand Three Hundred Seventy Five Dollars ($2,375.00) for each Project Loan for which Agency Funds are initially transferred by the Agency in such month to the Program Loan Disbursement Account, to a maximum payment by the Agency under this subparagraph (ii), of Four Thousand Seven Hundred Fifty Dollars ($4,750.00) per month. (b) Sums payable by the Agency to the Consultant as compensation for Services shall be paid by the Agency directly to the Consultant, and shall not be disbursed by the Consultant from the Program Loan Disbursement Account. (c) Payment for Services will be made by the Agency as of the first day of each calendar month with the first such payment due on the first day of the next calendar month following the date of the complete execution of the Agreement by the parties. SBEO /0001 /DOC /3545 8/31/99 1025 sk 7 Section 7 . PERSONNEL OF CONSULTANT. Consultant represents that it has, or will secure at its own expense, all personnel required to perform the Services. All of the Services required hereunder will be performed by persons who are either employed by or under the supervision and control of the Consultant, and all personnel engaged in the Services shall be fully qualified to perform such Services. Section 8 . INDEPENDENT CONTRACTOR. All acts of Consultant and all others acting on behalf of Consultant relating to the performance of this Agreement, shall be performed as independent contractors and not as agents, officers, or employees of Agency or the City. Consultant, has no authority to bind or incur any obligation on behalf of Agency or the City. Consultant has no authority or responsibility to exercise any right or power vested in the Agency or the City. No agent, officer, or employee of the Agency or the City shall be considered an employee of Consultant. It is understood by both Consultant and Agency that this Agreement shall not under-any circumstance be construed or considered to create an employer - employee relationship or a joint venture as between the Consultant and the Agency. Consultant is and at all times during the term of this Agreement shall represent and conduct itself as an independent contractor and not as an employee of the Agency. Consultant shall determine the method, details, and means of performing the Services under this Agreement. Consultant shall be responsible to the Agency only for the requirements and results specified in this Agreement, and except as expressly provided in this Agreement, shall not be subject to control by the Agency with respect to the physical action or activities of Consultant in fulfillment of this Agreement. Consultant has control over the manner and means of performing the Services under this Agreement so long as consistent with the requirements of the Program. Consultant is permitted to provide services to others during the same period Services are provided to the Agency under this Agreement. If necessary, Consultant has the responsibility for employing other persons or firms to assist Consultant in fulfilling the terms and obligations under this Agreement. If in the performance of this Agreement any third persons are retained as subcontractors by Consultant, such persons shall be entirely and exclusively under the direction, supervision, and control of Consultant. All terms of employment including hours, wages, working conditions, discipline, hiring, and discharging or any other term of employment or requirements of law shall be determined by the Consultant. Consultant hereby agrees to indemnify, defend, and hold the Agency harmless from any and all claims that may be made against the Agency or based upon any contention by any employee of Consultant or by any third party that an employer - employee relationship exists between person and the Agency, by reason of the performance of any of the Services under this Agreement. Section 9 TRANSFER OF AGENCY FUNDS TO PROGRAM LOAN DISBURSEMENT ACCOUNT. The Agency shall promptly honor each request by the Consultant for the Agency to transfer Agency Funds to the Program Loan Disbursement Account to fund each completed Program Loan as submitted by the Consultant under Section 3(5). Within ten (10) days following receipt of each SBEO /0001 /DOC /3545 8/31/99 1025 sk 8 request for remittance of Agency Funds, the Agency shall transfer by bank check such Agency Funds to the Program Loan Disbursement Account. Section 10 COMMERCIAL GENERAL LIABILITY INSURANCE AND WORKMANS COMPENSATION INSURANCE. (a) The Consultant shall obtain and keep in force during the term of this 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 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 Services provided by the Consultant. 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 obligations of the Consultant to the Agency. The limits or exclusions from coverage of such insurance shall not however limit the liability of the Consultant nor relieve the Consultant of any other obligation under this Agreement. All insurance to be carried by the Consultant 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 Consultant shall carry and maintain workers' compensation or similar insurance in form and amounts required by law. (c) All insurance which the Consultant shall carry or maintain pursuant to this Section 10 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 Consultant be entitled to assign to any third party rights of action which the Consultant 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: (i) any loss shall be notwithstanding any act or failure to act or negligence of the Consultant 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 Consultant shall deliver or cause to be delivered to the Agency concurrently upon the execution of this Agreement an endorsement of its commercial general SBEO /0001 /DOC/3545 8/31/99 1025 sk 9 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 11 INDEMNIFICATION. Consultant shall indemnify, defend and hold harmless the Agency, its officers, agents and employees, from and against any and all claims, demands and liability for damages for personal injury or property damage suffered by reason of any act or omission of Consultant or Consultant's employees, volunteers, agents or contractors. Agency shall indemnify, defend and hold harmless the Consultant, its officers, and employees, from all claims, demands and liability for damages for personal injury or property damage suffered by reason of any act or omission of the Agency or any of its officers or employees or agents, except where such action or omission giving rise to such a claim is caused by or is the result of an action, omission or request of Consultant or Consultant's officers, or employees, or is alleged to arise out of the execution of this Agreement. The provisions of Section 11 shall survive the expiration or early termination of this Agreement. Section 12. DEFAULTS AND BREACH - GENERAL. Failure or delay by either party to perform any material term or provision of this Agreement shall constitute a default hereunder; provided however, that if the party who is otherwise claimed to be in default by the 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; provided, however, the injured party shall have no right to exercise any remedy for a default hereunder without delivering the written default notice 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, and the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. In the event that a default of either party may remain uncured for more than thirty (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 Agreement and seek any appropriate remedy or damages by initiating legal proceedings. The prevailing party in any such legal proceedings shall be entitled to recover as an element of its costs of bringing such suit, and not as part of its damages, its reasonable attorneys' fees and costs. Section 12 NONDISCRIMINATION. During Consultant's performance of the Services, Consultant shall not discriminate on the grounds of race, religious creed, color, national origin, age, ancestry, physical handicap, medical condition, marital status, sex or sexual orientation in the SBEO /0001 /DOC /3545 8/31/99 1025 sk 10 selection and retention of employees and subcontractors and the procurement of materials and equipment, except as provided in Section 12940 of the California Government Code. Section 13 CONFLICT OF INTEREST. Consultant warrants, by execution of this Agreement, that it has no interest, present or contemplated, in any Project Loan or any Home benefitted thereby or Work performed on any Home using a Project Loan. Consultant further warrants that it owns or possesses no interest in real property, business interests or owner of income (other than such amounts of compensation payable by the Agency to Consultant for the Services under this Agreement) that will be affected by the Program or, alternatively, if such interest exists or arises the Consultant will promptly file with the Agency an affidavit disclosing any such interest. Section 14 AMENDMENTS. All amendments to this Agreement shall be subject to the approval of both parties in the sole discretion of each of them, mutual and in writing. Section 15 TERMINATION. - (a) This Agreement may be terminated for any reason by either party who is not then in default upon sixty (60) days' prior written notice to the other party. In such event the Consultant shall be entitled to receive compensation for Services pro -rated through the date of such termination, provided that the Services have been rendered. (b) In the event of a termination of the Agreement as a result of a breach, the rights and duties of the parties shall be as set forth in Section 12. (c) In the event of any termination of this Agreement, Consultant shall promptly return all Project Loan Disbursements to the Agency without charge or expense to the Agency. . Section 16 ASSIGNMENT. It is mutually understood and agreed that this Agreement shall be binding upon the Agency and its successors and upon the Consultant and its successors. Neither this Agreement, nor any part thereof, nor monies due or to become due thereunder, may be assigned by the Consultant without the prior written consent and approval of the Agency. The Agency and the Consultant hereby agree to the full performance of the covenants contained herein. Section 17 NOTICES. Delivery of any notice, bill, invoice or report required by this Agreement shall be sufficient if sent by one party to the other in the United States mail, postage prepaid, to the address noted below: Aeencv Consultant Economic Development Agency of Neighborhood Housing Services of SBEO /0001 /DOC /3 545 8/31/99 1025 sk 1 1 the City of San Bernardino Attention: Executive Director 201 North "E:" Street, Suite 301 San Bernardino, California 92401 the Inland Empire, Inc. 1390 North "D" Street San Bernardino, California 92405 Phone: (909) 884 -6891 FAX: (909) 884 -6893 Section 18 REPRESENTATION AND WARRANTY OF CONSULTANT. The Consultant hereby represents and warrants to the Agency as follows: (i) Consultant is a California non - profit corporation duly organized and existing and authorized to transact business in California; (ii) the corporate charter and by -laws of the Consultant authorize the Consultant to provide the Services to the Agency and the governing board and membership of Consultant have previously taken all action necessary to authorize the execution of this Agreement by the Consultant; (iii) the consultant is qualified to perform the Services. Section 19 PROGRAM LOANS AND PROGRAM LOAN DOCUMENTS ARE THE PROPERTY OF THE AGENCY. Each Program Loan is the property and asset of the Agency. The Consultant has no property interest in any such Program Loan and the Consultant shall not transfer, assign or pledge as collateral or claim any other security interest in any such Program Loan. All of the Project Loan Documents are the property of the Agency, and the Consultant shall maintain all such Project Loan Documents in its possession as confidential consumer business records of the Qualified Homeowner and the Agency and upon the conclusion of this Agreement, all such Project Loan Documents shall be delivered by the Consultant to the Agency. All Agency Funds deposited to the Program Loan Disbursement Account are the property of the Agency until paid by the Consultant for the account of a Qualified Homeowner under the applicable Project Loan Documents. Section 20 GENERAL. This Agreement constitutes the sole agreement between the parties. All prior conversations, agreements or representations relating hereto are integrated in this Agreement. No oral agreement, representation or warranty shall be binding upon the parties. SBEO /0001 /DOC /3545 8/31/99 1025 sk 12 IN WITNESS WHEREOF the Consultant and the Agency have caused this Agreement to be duly executed on the dates indicated below next to the authorized officers of each of them. This Agreement may be executed in counterparts, but this Agreement shall have no force or effect unless it has been fully executed by the parties. Date: Approved as to Form: Agency Counsel Date: Date: AGENCY: Redevelopment Agency of the City of San Bernardino t GARY VAN OSDEL Executive Director CONSULTANT: Neighborhood Housing Services of the Inland Empire, Inc., a California non - profit corporation By: Title: By: Title: SBEO /0001 /DOC /3545 8/31/99 1025 sk l 1999 Income Limits Single Family Owner - Occupied Loan and Beautification Grant Program *Income Level HOUSEHOLD SIZE (No. of Persons Per Household) 1 2 3 4 5 6 7 8 Very Low - 50% $16,500 $18,900 $21,250 $23,600 $25,500 $27,400 $29,250 $31,150 Low - 80% $26,450 $30,200 $34,000 $37,750 $40,800 $43,800 $46,800 $49,850 Moderate -120% $39,650 $45,300 $51,000 $56,650 $61,200 $65,700 $70,250 $74,800 San Bernardino Area Median Income $47,200 for a family of four. *Note: Income Limits are subject to annual renewal. EXHIBIT "A" HUD Housing & Neighborhood Initiative Program (NIP) Target Areas I — \ ��he TARGET AREA 5 I � � 1 � i � T 1......., �. —._.�^ 215 s` 1 °� I r• I 'L Baseline �•�._� 9F � • ! TARGET AF NORTH City of San Bernardino EXHIBIT �, B „ ECONOMIC DEVELOPMENT AGENCY 1 l_ A. Rehabilitation Loan /Grant Program Processing and Servicing Fees ($75,000) The Agency shall compensate NHS the total sum of $75,000 for the administration and implementation of the Program herein and for services rendered under this Agreement. NHS shall bill the Agency monthly in equal installments up to the maximum amount of compensation stated herein. B. Single Family Rehabilitation Loan And Beautification Grant Program ( "the Program ") ($425,000) NHS shall utilize the funds herein to provide deferred low interest (3 %) loans (maximum of $25,000 per property) and grants (maximum of $5,000 per property) to income eligible (120% median income and below - See Attachment 1, 1999 Income Limits) owner- occupied single family homeowners in order to improve the City's housing stock and remedy unhealthy living conditions, specifically in the seven (7) NIP areas. On a case by case basis, subject to extenuating circumstances, the amounts herein may be exceeded, provided NHS has obtained approval by the Executive Director of the Agency (Director), or his designee, the administrator of this Agreement. 2. Under the direction of the HCD Director, NHS shall administer and implement the Program herein and shall utilize the applicable and pertinent sections of the Economic Development Agency's (EDA), Rehabilitation Loan & Grant Policies and Procedures Manual for guidance on processing and packaging all loans and grants under this Agreement. 3. NHS shall accept loan /grant applications from respective homeowners, first within all approved NIP seven (7) target areas (see MAP), and to determine income and improvement eligibility, determine equity on the subject property, verify ownership by obtaining a title report or other pertinent documentation from a reputable Title Company. Should there be no interest by homeowners in the NIP target areas for an extended period, NHS shall consult with Director , and offer the Program on an as needed, first come, first serve basis, to homeowners throughout the City. 4. Inspecting eligible properties to determine the type of health and safety and code violation repair work needed, including asbestos and lead based paint removal, the age and overall condition of the unit and to ensure that all units rehabilitated under the Program when completed are aesthetically pleasing. 5. Preparing and completing work write -ups, the cost estimates and bid package for the improvements for each property. 6. Soliciting bids for the rehabilitation work from a list of pre- approved general contractors, if necessary. Assisting homeowners with the selection of a contractor, and the execution of the contract between owner and contractor, including the Scope of Work and Schedule of Performance; schedule and conduct pre- construction and walk thru conferences, etc. 7. Inspection and monitoring the rehabilitation work while in progress and supervising the payment invoice procedures to ensure that all contractors and subcontractors are meeting obligations and that progress, payments and retentions are paid in a timely manner. 8. Coordinating with the Contractor and final inspection and payment of the contract retention. 9. Maintain a file for each Program participant and insure that all documentation is on file, including, but not limited to, application, proof of ownership, income verification, comparables or appraisals, work write -ups, contracts, promissory notes, deeds of trust, etc. The original promissory note and deed of trust shall be for the benefit of the Agency and shall be transmitted to Agency upon request for loan funds. 10. Provide any and all services required by the Director and Director of HCD, or his/her designee, in order to effectively implement and complete the services under this Agreement. EXHIBIT "C" ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FROM: Maggie Pacheco, Director Housing & Community Development DATE: August 26, 1999 SUBJECT: COOPERATIVE /DELEGATE AGENCY AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY AND THE COUNTY OF SAN BERNARDINO REGARDING THE NEIGHBORHOOD INITIATIVE PROGRAM (NIP) GRANT FUNDS- FOCUS NEIGHBORHOOD APPROACH 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 AGENCY CHAIRPERSON AND EXECUTIVE DIRECTOR TO EXECUTE A COOPERATIVE /DELEGATE AGREEMENT BETWEEN THE COUNTY OF SAN BERNARDINO AND THE REDEVELOPMENT AGENCY FOR IMPLEMENTATION OF THE NEIGHBORHOOD INITIATIVE PROGRAM WITHIN THE SEVEN TARGET AREAS. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Contact Person(s): Gary Van Osdel/ M. Pacheco Phone: 5081 Project Area(s) Ward(s): 1 -7 Supporting Data Attached: ❑O Staff Report El Resolution(s) El Agreement(s) /Contract(s) 0 Map(s) ❑ Letter /Memo FUNDING REQUIREMENTS Amount: $ 2,000,000 Source: NIP Funds Budget Authority: d2 SIGNATURE: �ze a99 an Osdel, Ex utive Director Mag Pacheco, Director Gnomic Develop ent Agency Housing & Community Development - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Commission /Council Notes: GVO:MP:lag:99 -09 -07 NIP COMMISSION MEETING AGENDA Meeting Date: 09/07/1999 Agenda Item Number: V-9 ECONOMIC DEVELOPMENT AGENCY STAFF REPORT Cooperative /Delegate Agency Agreement Between the Redevelopment Agency and the County of San Bernardino Regarding the Neighborhood Initiative Program (NIP) Grant Funds- Focus Neighborhood Approach BACKGROUND: In 1997, the County of San Bernardino was identified as the recipient of $15 million appropriated through federal legislation (HR2158) for the U.S. Department of Housing and Urban Development (HUD) administered Neighborhood Initiative Program (NIP). The purpose of the NIP is to restore blighted and distressed communities within the County of San Bernardino, including but not limited to, the City of San Bernardino, City of Highland and City of Redlands. Moreover, according to the County of San Bernardino (the "County ") NIP Mission Statement, NIP is intended to stop deterioration and to rekindle investment and neighborhood pride by addressing blighting conditions in focused geographic areas. The NIP emphasis is on: (1) Coordinating a holistic programmatic approach to neighborhood problems in a specific area in order to have measurable, long term impact; (2) Increasing the percentage of homeownership through the acquisition, rehabilitation and resale of HUD /FHA owned properties and providing financial assistance to renters to purchase houses owned; and (3) Concentrating code and police enforcement with housing assistance programs to clean up and maintain quality neighborhood standards. Consequently, in anticipation of the NIP resources being available to the City, in September 1998, the Mayor and Common Council conceptually adopted a NIP Proposal (see attached). According to the September 1998 staff report, twenty (20) Target Areas were initially identified as possible candidates for the NIP funds. Ultimately, the Council selected the seven (7) areas depicted on Attachment 3 on the basis of condition, the concentration of HUD -owned homes and the likelihood of achieving revitalization success. Consequently, some of the most dilapidated areas were not selected. Presently, it is estimated that 100 HUD units exist within the seven (7) Target Areas. In an effort to implement the NIP, on March 30,1999, the San Bernardino County Board of Supervisors approved a Grant Agreement between HUD and the County which sets forth the conditions and requirements by which the County must adhere to, relative to the use and disbursement of the $15 million grant. GVO:MP:lag:99 -09 -07 NIP COMMISSION MEETING AGENDA Meeting Date: 09/07/1999 Agenda Item Number: " Economic Development Agency Staff Report Neighborhood Initiative Program August 19, 1999 Page Number -2- CURRENT ISSUE: For the past several months, EDA Staff has been negotiating with County Staff the content of the proposed Cooperation Agreement (the "Agreement ") between the Redevelopment Agency and the County of San Bernardino in order to implement the Council's approved proposal. The attached Agreement is the result of those negotiations. Essentially, the Agreement sets forth the responsibilities of the County and Agency for the expenditure of the initial $2 million NIP funds allocated to the City of San Bernardino. Below are some of the most essential elements of the Agreement: The County will purchase all HUD Units, pursuant to the HUD and County Agreement, within the seven (7) Target Areas (see Map). The County will either contract with FNMA, or a professional management company, for the purpose of managing, maintaining and reselling the units to homebuyers. The Agency will also have the first right of refusal to buy HUD /County units within six (6) of the Target Areas. However, the Agency will not have first right of refusal in Target Area 1. The acquisition price for all HUD units will be based on the appraised value, minus a 10 -50% discount, depending on the condition of the unit. Exhibit 2 of the Agreement lays out the various programs or projects that are planned to be offered within the NIP Target Areas by either the County or the Agency, commencing with Target Area 1. Initially, $2 million will be allocated for Target Area 1. Once the projects and programs are completed in all of Target Area 1, the County and Agency agree to undertake activities in the remaining Target Areas. Moreover, if it is determined that additional resources are needed at a later date, County and Agency Staff will meet and confer to allocate additional resources to the target areas to the extent available. The programs and projects to be offered in the Target Areas range from single family owner occupied rehabilitation loans, exterior beautification grants, mortgage assistance loans, demolition, NHS Youth Build Housing Assistance Program, etc. Of the $2 million, $100,000 has been allocated for administration of the NIP by the Agency. The term of the Agreement is until June 30, 2004. This will give the County and Agency an opportunity to implement the menu of programs in all of the approved and designated Target Areas to the extent additional resources are available to the County under the NIP. The remaining provisions contained within the Agreement are standard conditions and requirements imposed on the County by HUD. The County is merely passing on their requirements to the Agency, and or Agency's Sub - recipients or contractors. GVO:MP:Iag:99 -09 -07 NIP COMMISSION MEETING AGENDA Meeting Date: 09/07/1999 Agenda Item Number: Ryq Economic Development Agency Staff Report Neighborhood Initiative Program August 19, 1999 Page Number -3- ------------------------------------------------------- Because of the intense comprehensive nature of the NIP, it will be necessary for staff to hire a contract Neighborhood Coordinator. Staff will be recruiting for the position in the very near future and will return to the Committee /Commission for award of a contract at a later date. The position will be funded through the Administration line item on Exhibit 2 of the Agreement. FISCAL IMPACT: The Agreement has a fiscal benefit to the Agency, in that, it initially allocates $2 million to the Agency in order to carry our programs and projects within the seven (7) Target Areas, commencing with Target Area 1. The Agency has already allocated resources for similar or companion programs /projects via the Agency approved 1999 -2000 Budget. If necessary, any budget amendment or adjustment that occurs as a result of NIP, will be brought to the Committee /Commission at a later date. RECOMMENDATIONS: That the Community Development Commission adopt the attached Resolution. 4 Maggie heco, Director Housing & Community Development GVO:MP:Iag:99 -09 -07 NIP COMMISSION MEETING AGENDA Meeting Date: 09/07/1999 Agenda Item Number: