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HomeMy WebLinkAboutR19-Economic Development Agency .'. :n]l1i111!f'"1f......."n'T.~T ._, ,- IT - ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FROM: Maggie Pacheco Deputy Director SUBJECT: RENEWAL OF THE NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE, INC. (NHS) AGREEMENT - SINGLE FAMILY BEAUTIFICATION LOAN/GRANT AND MOBILE HOME GRANT PROGRAMS DATE: January 19,2005 ORIGINAL SvnoDsis of Previous Commission/Council/Committee Actionls): On December 9, 2004, Redevelopment Committee Members Estrada and McGinnis voted to recommend that the Community Development Commission consider this action for approval. Recommended Motionls): lCommunitv DeveloDment Commission) MOTION: A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND APPROVING THE EXECUTIVE DIRECTOR TO EXECUTE A TIiREE (3) YEAR AGREEMENT BY AND BETWEEN NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE, INC. (NHS) AND THE REDEVELOPMENT AGENCY ("AGENCY") FOR ADMINISTRATION OF THE AGENCY'S SINGLE FAMILY BEAUTIFICATION LOAN/GRANT AND MOBILE HOME GRANT PROGRAMS Contact Person(s): Project ~ea(s) Gary Van OsdellMaggie Pacheco All Phone: (909) 663-1044 All Ward(s): Supporting Data Attached: ItI Staff Report ItI Resolution(s) ItI Agreement(s)/Contract(s) ItIMap(s) 0 Letters 1.4 Million $1.2 million LowlMod Housing Fund ::A:'REQ~~LC=: I-::,:::::=,H== Gary Osdel, Executiv Commission/Council Notes: ~. C O{~ l~.(X)S,..!;J - I COMMISSION MEETING AGENDA Meeting Date: 02/0712005 Agenda Item Number: .1l1!i- P:\AaODdU\ColmI Dov Coom1iaiooICDC 200~'-02.07 NHS SF Gnnl ~ _a1 Slldoc ""'''TO '. 11'"""'"""'" ~-'rT"~""""'" '"'-~' -r"~-'T-'''-'r r T" ,'. ,,' 1m " '.- ECONOMIC DEVELOPMENT AGENCY STAFF REPORT RENEWAL OF THE NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE, INC. (NHS) AGREEMENT - SINGLE FAMILY BEAUTIFICATION LOAN/GRANT AND MOBILE HOME GRANT PROGRAMS BACKGROUND: Single Family Beautification Loan/Grant Proli!Iatll On September 7, 1999, the Community Development Commission approved an Agreement with Neighborhood Housing Services of the Inland Empire, Inc. (NHS) in the amount of $500,000 for the purpose of providing loans and grants to single family homeowners within the seven adopted Neighborhood Initiative Program (NIP) target areas and on a case by case basis, to eligible homeowners outside of the NIP target areas (the Single Family Exterior Beautification and Rehabilitation Loan Programs [the "Program"]). The Program provided loans of up to $25,000 at 3%, with monthly payments being deferred until the home is sold, transferred, etc., and a $5,000 grant to accomplish a host of home improvements to eligible homeowners, particularly in the area of correcting building and safety violations and exterior improvements to enhance the aesthetic complexion of a home. The Program was limited to NIP Target Areas because it was intended to focus housing efforts in previously selected Council approved geographic areas and to produce tangible changes in neighborhood perception and quality of life, in concert with other Agency programs. The NHS Agreement was later amended ("Amendment No.1") on July 24, 2000, to expand the Program to add a Citywide Single Family Beautification Grant Program because the previously administered Westside Community Development Corporation (WSCDC) Handy Worker Grant - Program had been cancelled and there was a continued demand for the Program. On March 5, 2001, the Agreement was amended ("Amendment No.2") to increase the Agreement amount to $1.2 million ($200,000 was allocated for NHS administrative costs) annually for a three (3) year period, subject to funding availability. On April 5, 2004, the Agreement was again renewed for only one year with an allocation of $1.2 million and to also increase the Beautification Grant component from $5,000 to $10,000 per housing unit/applicant. At that time, NHS did not believe that continuing to administer the Agency Program would enable them to focus on their primary Mission, which is to promote and provide homeownership opportunities for Inland Empire residents. Staff was to return to the Redevelopment Committee and Community Development Commission with a recommendation for the on-going administration of the Program. P:~\ColmlDov~ICDC2005I05-02-07NHS SFOnol ~ _alSIt.... COMMISSION MEETING AGENDA Meeting Date: 01107/1005 Agenda Item Number: ../S.J!1- ,....w. . ... .....y .... '~'.. - .. .-., , .".'- - ".- "._' Economic Development Agency Staff Report NHS. Single Family Grant Program-Contract Renewal Page 3 FISCAL IMPACT: The total Agreement expenditure is $1.4 million which will be funded as follows: $1.2 million annually from the Agency's Low/Mod Housing Fund and $200,000 annually from the Agency's HOME Program. RECO~NDATION: That the Community Development Commission adopt the attached Resolution. ~r ~ /Y) ~~- Maggie Pa eco, Deputy Director P:IApoduIConlnDev ColmIiAionlCllC 2OOSIOS-02-07 NHS SF Gnat ~ _a1 Slldoc COMMISSION MEETING AGENDA Meeting Date: 0210711005 Agenda Item Number: a ~ -r""''"' ",". ,~., "0 '-~.~,,~,..,," " '0 '~..- ' ~~-" - " Economic Development Agency Staff Report NHS Single Family Grant Program-Contract Renewal Page 2 Mobile Home Grant Program On May 17, 1999, the Mayor and Common Council and Community Development Commission approved an Agreement with NHS and appropriated funds to administer the Mobile Home Grant Program on behalf of the Agency. That Agreement was later amended on November 20, 2000. The Agency has provided repair grants to owner occupied mobile homeowners since 1992. The Mobile Home Grant Program offers a grant up to $5,000 for necessary repairs. To be eligible for the Mobile Home Grant Program, an owner must live in the unit, own the unit for not less than one (1) year and the annual income may not exceed eighty percent (80%) of Median Income. There are a total of 42 mobile home parks within the City and the City is required under State Law, Title 25, the Mobile Home Park Act, to inspect these parks. Thus, the Mobile Home Grant Program is an invaluable resource to the City's building inspection and enforcement efforts. CURRENT ISSUE: NHS has reevaluated their priorities and organizational needs, and has determined that they would like to continue to administer both Programs on behalf of the Agency, particularly, in light of the fact that there is an overwhelming need in the community for both these Programs. Presently, there are over 134 single family homeowners waiting to be assisted under the Single Family Beautification Grant Program and a number of families awaiting assistance under the Mobile Home I Grant Program. However, funds for both Programs have been exhausted. Consequently, Staff is recommending an allocation of $1.4 million annually, for up to three (3) years, subject to funding availability and annual review ofNHS's performance; $1.2 million will be allocated from the Agency's Low/Mod Housing Fund for the Single Family Beautification Loan/Grant Program of which $240,000 is for NHS Administration and $960,000 for the Program; $200,000 will be allocated from the Agency's HOME Fund for the Mobile Home Grant Program and NHS will use $40,000 of this amount for administration costs and the balance will be used for grants to mobile home owners. NHS will continue to offer assistance to only those applicants who meet the program criteria, are referred to by the City's Inspection Services Division or Code Compliance Department on a first come, first serve basis. Since the inception of the Single Family Beautification Loan/Grant Program, NHS has assisted 635 single family homeowners under the Beautification Loan/Grant Program and 257 homeowners under the Mobile Home Grant Program. ENVIRONMENTAL IMPACT: Non-applicable. P:\A8OOdU1Comm Dov Conmiaion\CllC 2005\0'-02-07 NIlS SfOnlll ~ _ SIldoe COMMISSION MEETING AGENDA Meetin& Date: 0110711005 Acenda Item Number: f?jq 8 2 3 4 5 6 7 8 9 10 13 014 25 o ---,- RESOLUTION NO. !: 0) IPY A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND APPROVING THE EXECUTIVE DIRECTOR TO EXECUTE A THREE (3) YEAR AGREEMENT BY AND BETWEEN NEIGIJBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE, INC. (NHS) AND THE REDEVELOPMENT AGENCY ("AGENCY") FOR ADMINISTRATION OF THE AGENCY'S SINGLE FAMILY BEAUTIFICATION LOAN/GRANT AND MOBILE HOME GRANT PROGRAMS WHEREAS, the Agency has established housing improvement programs known as the "Single Family Beautification Loan/Grant Program and Mobile Home Grant Program" (the 11 "Program"); and 12 WHEREAS, the purpose of the Program is to provide low- and moderate-income homeowners (the "Qualified Homeowners") who reside in the City of San Bernardino (the "City"), with a source of loan and grant funds to undertake certain housing rehabilitation, 15 correction work (including asbestos and lead containing materials abatement work, handicap 16 accessibility improvements and building code deficiency corrections) and certain exterior beautification improvements and enhancements, such as landscape, painting, fencing, etc., of 17 18 owner-occupied single family residential dwelling units and mobile homes; and 19 WHEREAS, the Program promotes and expands the supply of affordable housing in the City and fosters the elimination and prevention of blight; and 20 21 WHEREAS, in order to carry out the administration of the Program the Agency desires to renew the Neighborhood Housing Services of the Inland Empire ("NHS") Agreement (the "Agreement") for another three (3) years, subject to funding availability, in the grand total amount of One Million Four Hundred Thousand Dollars ($1,400,000) annually of which One Million Two Hundred Thousand Dollars ($1,200,000) will be appropriated annually from the Agency's LowlMod Housing Fund (the "Agency Housing Fund") for the Single Family 22 23 24 -1- r:~_HW7 NHI SJlGnIIt Pncn-c...- .................. ~~-<~ '~" e2 8 9 10 11 12 13 0 14 15 16 17 18 19 <,'" prn TI -- - >< 3 Beautification Loan/Grant Program and $200,000 will be allocated annually from the Agency's HOME Program for the Mobile Home Grant Program and said Programs are to be administered and operated by NHS in accordance with the terms of the Agreement. 4 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS FOLLOWS: 5 6 7 Section 1. The Community Development Commission hereby authorizes and approves the Agreement by and between the Agency and NHS in the form as presented at the meeting of the Commission at which this Resolution is adopted and hereby authorizes the Executive Director to execute the Agreement on behalf of the Agency. Section 2. The Executive Director of the Agency is hereby authorized to make minor corrections, additions, clarifications, interpretations to the Agreement, provided said changes are not substantive in nature, do not increase the monetary impact to the Agency, and are consented to by Agency Counsel. Section 3. For the purpose of satisfying the requirements of Health and Safety Code Section 33413 (b) and the 24 Code of Federal Regulations Part 92, the Commission hereby finds and determines that the Program expands and preserves the community's supply of affordable housing as provided under said provision of the Health and Safety Code; Section 4. The Resolution shall become effective immediately upon its adoption. 20 /II 21 /II 22 /II 23 /II 24 /II 25 0 /II -2- ':\A~__""'IlIIZH5\I5-IW7NHS S'GruI ......_C..I_ _..-..... n jf"o"~"m"~"'"p, ,. "' ,'~ 0 2 3 4 5 6 7 8 A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND APPROVING THE EXECUTIVE DIRECTOR TO EXECUTE A THREE (3) YEAR AGREEMENT BY AND BETWEEN NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE, INC. (NHS) AND THE REDEVELOPMENT AGENCY ("AGENCY") FOR ADMINISTRATION OF THE AGENCY'S SINGLE FAMILY BEAUTIFICATION LOAN/GRANT AND MOBILE HOME GRANT PROGRAMS I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community Development Commission of the City of San Bernardino at a meeting 9 thereof, held on the ~day of Februarv 10 Commission Members: Aves Nays ESTRADA 11 LONGVILLE 12 MCGINNIS 13 DERRY 014 KELLEY 15 JOHNSON 16 MC CAMMACK , 2005, by the following vote to wit: Abstain Absent 17 18 The foregoing resolution is hereby approved this Secretary 71h day of Februarv ,2005. 19 20 21 22 Judith Valles, Chairperson Community Development Commission of the City of San Bernardino 23 24 Approved as to form d Legal Content: 25 By: o -3- r:~__1otloouI2115\1501W7 NUS SPCna.........-c..._ __doc --T-""CT"C"'"HrC~I"~T T',"" J" __,m -,,~ - o o REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO SINGLE F AMIL Y BEAUTIFICATION LOAN/GRANT AND MOBILE HOME GRANT PROGRAMS ( LowIModerate Housing Fund and HOME Fund) THIS AGREEMENT FOR THE SINGLE FAMILY BEAUTIFICATION LOAN/GRANT AND MOBILE HOME GRANT PROGRAMS is made and entered into this 7th day of Februarv 2005, by and between the NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE, INC., a California non-profit corporation (the "CONTRACTOR") and the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency") and is related to the facts set forth in the following RECITALS: 1. The Agency has established housing improvement programs known as the "Single Family Beautification Loan/Grant Program and Mobile Home Grant Program" (the "Program"). 2. The purpose of the Program is to provide low-moderate-income homeowners (the "Qualified Homeowners") who reside in the City of San Bemardino (the "City"), with a special source of loan and grant funds to undertake certain housing rehabilitation and correction work (including asbestos, and lead 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. 3. The Program promotes and expands the supply of affordable housing in the City and fosters the elimination and prevention of blight. 4. In order to administer and operate the Program the Agency desires to extend the CONTRACTOR Agreement for another three (3) years, subject to annual funding availability and the Agency hereby allocates the total sum of One Million Four Hundred Thousand Dollars ($1,400,000) as follows: $1.2 million for the Single Family Beautification Loan/Grant Program to be funded from the Agency's LowlMod Housing Fund and $200,000 from the Agency's HOME Program for the Mobile Home Grant Program. NOW, THEREFORE, IT IS MUTUALLY AGREEMENT 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: . "Program Boundaries" means and refers to specific neighborhoods or areas in the City, which the Agency has instructed CONTRACTOR to offer the Programs to Qualified Homeowners and also on a Citywide basis. During the term of this 1 P:IApndu\ApndaA_\AamU-Amcnd:ZOOS\O~2-07 NHS SFGrw ~ _ Apno.doc; u '_'W' "...' " o o Agreement and until receipt of further instruction by CONTRACTOR from the Executive Director of the Agency, or his or her authorized representatives, all Program Loans and Grants shall be originated for Qualified Homeowners who reside in anyone (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", or any other target areas hereinafter created by the Agency, and/or throughout the City of San Bernardino (excluding County territory). . "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 Homeowner resides as its principal residence. . "Program Loan" means and refers to each single family home improvement loan 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 and/or beautification grant 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." 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 CONTRACTOR to be complete. . "Program Beautification Loan/Grant Application or Mobile Home Grant Application" means and refers to a completed written application for a Program Loan or Grant, which has been executed by a Qualified Homeowner. Each Program Beautification Loan/Grant Application or Mobile Home Program Grant Application shall contain the information relating to the Qualified Homeowner and the proposed use of the Program Loan or Grant proceeds by the Qualified Homeowner together with a current preliminary title report or other proof of title acceptable to the Agency for the Home. The CONTRACTOR shall require all Qualified Homeowners to complete the application for the Program similar to the application attached hereto and incorporated by reference as Exhibit "D." "Program Loan Disbursement Account" means and refers to the custodial deposit account, which the CONTRACTOR 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 CONTRACTOR, the 2 p,1AJeodu1Apndo A_v.,mu-ADlOIld 2OO5IOs.02.07 NHS SF GnnI ~ _a1 Ap."tdoo o . ~r-'--<~('~"" o o o '\[n:v .. ,. -, ., Agency and such depository institution shall be in a form and substance as reasonably satisfactory to the Agency. No other funds of the CONTRACTOR shall be deposited or co-mingled in the Program Loan Disbursement Account. The CONTRACTOR 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; and (v) a policy of title insurance in favor of the Agency as lender insuring its security interest in the deed of trust. 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 and CONTRACTOR. . "Qualified Homeowner" means and refers to (1) a person or household which owns and occupies a single family resident dwelling unit (a "Home") as its principal residence within the Program Boundaries for at least twelve (12) continuous months preceding the date of submission of its Beautification Loan/Grant Program or Mobile Home Program Grant Application to the CONTRACTOR; (2) 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 and Beautification Grant 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." . HOME INVESTMENT PARTNERSHIPS PROGRAM ("HOME PROGRAM") as set forth at 24 Code of Federal Regulations, part 92, et. Seq., which will be used by the Agency to fund a portion of this Agreement, specifically, $200,000 annually for the Mobile Home Park Grant Program, (the "Agency Mobile Home Grant Program"), to be offered by the CONTRACTOR to Qualified Homeowners who earn less than 80% of the current annual median income for the San Bernardino County area, adjusted for family size as published by the U.S. Department of Housing and Urban Development (HUD)as further illustrated for in Exhibit "A" of this Agreement ("2004 Income Limits") and are subject to annual adjustments. . In the case of a Single Family Beautification Loan/Grant Program, the Agency intends to use Low/Mod Housing Funds (the "Low/Mod Housing Fund") in accordance with Health and Safety Code Section 33334.3 et seq. (the "Single Family Beautification Loan/Grant Program") and CONTRACTOR will offer the Single Family Beautification Loan/Grant Program to a Qualified Homeowner who earns not more than 120% of the current annual median income for the San Bernardino County 3 P,1Apndu1Apnda A""""'-\Aamll-Amond 2Ol)j\(Js.02-07 NIlS SF Gnnl ~ _ ApnI.doc _'-0'" '~~~~- . 1 o area, adjusted for family size (as those terms are defined by California Health and Safety Code Section 50053.5) as further illustrated in Exhibit "A" of this Agreement (the "2004 Income Limits") and are subject to annual adjustments. . "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 CONTRACTOR 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 or mobile home 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 CONTRACTOR, 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 unless approved in writing by the Agency Executive Director. Section 2. SERVICES OF CONTRACTOR. The Agency agrees to contract with the CONTRACTOR to perform the Services and the CONTRACTOR hereby agrees to accept such contract and to perform the Services as set forth herein. o Section 3. SCOPE OF SERVICES. CONTRACTOR agrees to provide the Services to the Agency as set forth herein and as described in the Scope of Services attached as Exhibit "c" for the Program. Promptly following the date of approval of this Agreement by the governing board of the Agency the CONTRACTOR shall or will continue to: (l) cause the Program Loan Disbursement Account to be established, or maintained, and the general form of an FDIC - insured deposit account agreement acceptable to the Agency to be fully executed by the CONTRACTOR, the depository institution and the Agency within thirty (30) days following the date of approval of this Agreement; (2) continue to use the general form of a Program Beautification Loan/Grant or Mobile Home Application for general use in connection with the Services and the origination of Program Beautification Loan/Grant or Mobile Home Grants as previously provided by the Agency. The CONTRACTOR 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; (3) subject to the completion of the tasks described in paragraphs (1) and (2) above, continue the process of receiving and reviewing Program Loan Applications and provide the Services in accordance with the Scope of Services; o 4 p,1Apndu1Apnda A--.IApnU-Amend 200310'-02.07 NIlS SF GnIII ~ ReMwoI ",",",doc: ""'~j~fr" n'" ''"''~'''',r'' , """'T'>T~-"'l' -~ ' o (4) transmit a copy of a completed set of Program Loan Documents, together with a recommendation of the CONTRACTOR 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 (l0) days of receipt from the CONTRACTOR. Any rejection of a Program Loan, Beautification Loan/Grant, or Mobile Home Grant Application shall be in writing and state the reasons for such action. Each acceptance of a Program Loan, Beautification Loan/Grant, or Mobile Home Grant Application by the Agency shall be evidenced by the signature of the Executive Director of the Program Loan Documents. All Program Loan Documents for each Program Loan shall be completed by the Qualified Homeowner and the CONTRACTOR, 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 Program Loan Agreement shall be of no further force or effect; (5) no fees, charges or expenses shall be payable by any applicant for a Program Loan to the CONTRACTOR, except from Agency Funds, nor shall the CONTRACTOR 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 for the Maintenance Class fee; or as authorized under the Program by the Agency Executive Director; o (6) 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 CONTRACTOR that Program Loan Documents for the Program Loan are complete and that the deed of trust is ready for recordation. The CONTRACTOR 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; (7) deliver a fully executed original set of Program Loan Documents for each Program Loan (except for the original 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; (8) 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; o 5 P:\AaCRdU1A&a* _\Apmls-Amond 2OOS\O~~ NHS SF Om.......,...c- _ ",",",doc "",'''C"I~''> 'P'" "C' - fa o (9) prepare and maintain an Agency Funds disbursement ledger for all payments authorized and made by the CONTRACTOR 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. (10) No Work shall be authorized for payment by the CONTRACTOR unless the Program Loan Documents are complete and the CONTRACTOR 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 nor 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 (10). Section 4. TIME OF PERFORMANCE OF SERVICES. The Services to be performed hereunder by the CONTRACTOR 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 S. 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 February 7, 2008. Section 6. COMPENSATION PAYABLE BY AGENCY TO CONTRACTOR. (a) The Agency shall compensate CONTRACTOR for the performance of the Services using Agency funds in accordance with the following schedule: $280,000 Program Administration for CONTRACTOR * *($240,000 from LowlMod Housing Fund and $40,000 from HOME funds) Pre-Development Costs such as cancelled title policies, architecture, and engineering, lead base testing and inspections, if necessary. (LowlMod Housing Fund) Mobile Home Grant Program (HOME Funds) Single Family Beautification Grant/Loan Program (LowlMod Housing Fund) $5,000 $160,000 955.000 $1.400.000 6 p,1ApnduIApnda _~Amald~2.o7 NHSSFG.-I'ropnI-CoolIrI-.IA_..... ~'."C"'"P''''"'W'''''h''' e o o """"'T" (b) Program Administration sums payable by the Agency to the CONTRACTOR as compensation for Services shall be paid by the Agency directly to the CONTRACTOR, payable in twelve (12) equal monthly installments of$23,333.33 during the Term of this Agreement. (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. Section 7. PERSONNEL OF CONTRACTOR. CONTRACTOR 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 CONTRACTOR, and all personnel engaged in the Services shall be fully qualified to perform such Services. Section 8. INDEPENDENT CONTRACTOR. All acts of CONTRACTOR and all others acting on behalf of CONTRACTOR relating to the performance of this Agreement, shall be performed as independent CONTRACTORS and not as agents, officers, or employees of Agency. CONTRACTOR has no authority to bind or incur any obligation on behalf of Agency. CONTRACTOR has no authority or responsibility to exercise any right or power vested in the Agency. No agent, officer, or employee of the Agency shall be considered an employee of CONTRACTOR. It is understood by both CONTRACTOR 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 CONTRACTOR and the Agency. CONTRACTOR 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. CONTRACTOR 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 CONTRACTOR in fulfillment of this Agreement. CONTRACTOR has control over the manner and means of performing the Services under this Agreement so long as consistent with the requirements of the Program. CONTRACTOR is permitted to provide services to others during the same period Services are provided to the Agency under this Agreement. If necessary, CONTRACTOR has the responsibility for employing other persons or firms to assist CONTRACTOR in fulfilling the terms and obligations under this Agreement. If in the performance of this Agreement any third persons are retained as subcontractors by CONTRACTOR, such persons shall be entirely and exclusively under the direction, supervision, and control of CONTRACTOR. All terms of employment including hours, wages, working conditions, discipline, hiring, and discharging or any other term of employment or requirements oflaw shall be determined by the CONTRACTOR. CONTRACTOR hereby agrees to indemnify, defend (if requested by Agency), 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 CONTRACTOR 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. Secti9n 9. PAYMENT OF AND TRANSFER OF AGENCY FUNDS TO PROGRAM LOAN DISBURSEMENT ACCOUNT. The Agency shall promptly honor each request by the CONTRACTOR for the Agency to transfer Agency Funds to CONTRACTOR who will in turn deposit Agency Funds to the Program Loan Disbursement Account to fund each 7 p,IA.......1Apnda _IAamU-Amend 2005\05-02.07 NHS Sf GranI ~ RenewoI A,rm.doc ~'lYll' ' o o o completed Program Loan as submitted by the CONTRACTOR under Section 3(5). Within ten (10) days following receipt of each request for remittance of Agency Funds, the Agency shall transfer by bank check to the CONTRACTOR such Agency Funds to use as provided herein. Section 10. COMMERCIAL GENERAL LIABILITY INSURANCE AND WORKMANS' COMPENSATION INSURANCE. (a) The CONTRACTOR 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, attorneys, 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 CONTRACTOR. Such insurance shall be on 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. All insurance to be carried by the CONTRACTOR 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 CONTRACTOR shall carry and maintain workers' compensation or similar insurance in form and amounts required by law. (c) All insurance which the CONTRACTOR shall carry or maintain pursuant to this Section 1 0 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 CONTRACTOR be entitled to assign to any third party rights of action, which the CONTRACTOR 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, attorneys, 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 CONTRACTOR 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 (30) 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, attorneys, or employees. (d) The CONTRACTOR shall deliver or cause to be delivered to the Agency concurrently upon the execution of this Agreement an endorsement of its commercial general liability insurance policy evidencing the existence of the insurance coverage required by the Agency and shall also deliver, no later than thirty (30) days prior to the expiration of any such policy, a certificate of insurance evidencing each renewal policy covering the same risks. Section 11. INDEMNIFICATION. CONTRACTOR shall indemnify (if requested by Agency), defend and hold harmless the Agency, its officers, attorneys, agents and employees, from and against any and all claims, loss, demands and liability for damages for personal injury or property damage suffered by reason of any act or omission of CONTRACTOR or 8 p,1Apodu1Apnda A_\Apml-Amend 2QO$\OS-02-07 NHS SF Onnt ~ _aI """",doc """""'if' ' e o o -1"1'[ - CONTRACTOR'S employees, volunteers, agents or CONTRACTORS. Agency shall indemnify, defend (if requested by CONTRACTOR) and hold harmless the CONTRACTOR, its officers, and employees, from all claims, loss, 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 CONTRACTOR or CONTRACTOR'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. If any action or proceeding is brought to enforce the terms hereof or declare rights hereunder, it shall be brought in the Superior Court of the County of San Bernardino, San Bernardino District, State of California. The governing law to be applied in any such action or proceeding shall be the law of the State of California. 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. The costs, salary and expenses of the City Attorney and members of his office in such action or proceeding on behalf of the Agency shall be considered as "attorneys' fees" for purposes of this Section. Section 13. NONDISCRIMINATION. During CONTRACTOR'S performance of the Services, CONTRACTOR 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 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 14. CONFLICT OF INTEREST. CONTRACTOR warrants, by execution of this Agreement, that it has no interest, present or contemplated, in any Program Loan or Beautification or Mobile Home Grant or any Home benefited thereby or Work performed on any Home using a Program Loan. CONTRACTOR further warrants that it owns or possesses no 9 p,lApadu\Aptda _IApnU-Amcad 2OMI05-02.07 NIlS SF GnIIl ~ RcnewII A"mtdoc ~-"'~. e o o interest in real property, business interests or owner of income (other than such amounts of compensation payable by the Agency to CONTRACTOR for the Services under this Agreement) that will be affected by the Program or, alternatively, if such interest exists or arises the CONTRACTOR will promptly file with the Agency an affidavit disclosing any such interest. Section 15. 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. The Executive Director of the Agency is authorized to make non-substantive changes, clarifications, corrections to the Agreement, including budget line item adjustments, provided such actions are approved by Agency Counsel and do not increase the Agency's monetary annual appropriation to the CONTRACTOR as approved by the governing board of the Agency. Section 16. TERMINATION. (a) This Agreement may be tenninated for any reason by either party who is not then in default upon ten (10) days' prior written notice to the other party. In such event, the CONTRACTOR shall be entitled to receive compensation for Services pro-rated through the date of such tennination, provided that the Services have been rendered. (b) In the event of a tennination 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, CONTRACTOR shall promptly return all Program Loan Disbursements to the Agency without charge or expense to the Agency. Section 17. ASSIGNMENT. It is mutually understood and agreed that this Agreement shall be binding upon the Agency and its successors and upon the CONTRACTOR and its successors. Neither this Agreement, nor any part thereof, nor monies due or to become due thereunder, may be assigned by the CONTRACTOR without the prior written consent and approval of the Agency. The Agency and the CONTRACTOR hereby agree to the full perfonnance of the covenants contained herein. Section 18. 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: Agency Economic Development Agency of the City of San Bernardino Attention: Executive Director 201 North "E" Street, Suite 301 San Bernardino, California 92401 Contractor Neighborhood Housing Services of the Inland Empire, Inc. Attention: Executive Director 1390 North "D" Street San Bernardino, California 92405 Phone: (909) 884-6891 Fax: (909) 884-6893 10 p,\Apldu1Apndo ADKhmoou\AamU-Amend 2005105-02-07 NHS SF Gnat ~ -.I AJrnl.cIoc _"'PC',,, _. e o o Section 19. REPRESENTATION AND WARRANTY OF CONTRACTOR. The CONTRACTOR hereby represents and warrants to the Agency as follows: (i) CONTRACTOR is a California nonprofit corporation duly organized, existing, and authorized to transact business in California; (ii) the corporate charter and by-laws of the CONTRACTOR authorize the CONTRACTOR to provide the Services to the Agency and the governing board and membership of CONTRACTOR have previously taken all action necessary to authorize the execution of this Agreement by the CONTRACTOR; (iii) the CONTRACTOR is qualified to perform the Services. Section 20. OTHER PROGRAM REOUIREMENTS (MOBILE HOME GRANT PROGRAM ONLY). 1. CONTRACTOR must carry out all activities in compliance with all federal laws and regulations described in Subpart H of 24 CFR 92 and outlined hereinafter, except that CONTRACTOR does not assume the Agency'S/City's responsibility for environmental review in Section 92.352 or the intergovernmental review process in Section 92.357. These federal laws and regulations must be complied with as follows: a. Eaual Ooportunitv. No person shall be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with HOME funds. In addition, HOME funds must be made available in accordance with all laws and regulations listed in Section 92.350(a). b. Fair HousinlZ. In accordance with the certification made with its housing strategy, each participating jurisdiction must affirmatively further fair housing. Actions described in Section 570.904(c) of Title II of the Cranston-Gonzales National Affordable Housing Act will satisfy this requirement. c. Affirmative MarketinlZ. CONTRACTOR must adopt affirmative marketing procedures and requirements for HOME-assisted housing projects of five (5) units or more, if applicable. These must include: 1. Methods for informing the public; 2. Requirements and practices that CONTRACTOR must adhere to in order to carry out the City/Agency affirmative marketing procedures and requirements; 3. Procedures used by CONTRACTOR to inform and solicit applications from persons in the housing market area who are not likely to apply without special outreach; 11 P,\ApnduIApnda_\AamU-Amond200_.07Nl1SSFOnnl~ _AJmlI.doc ~C"c~'.~ e 4. A description of how CONTRACTOR will assess the success of affirmative marketing actions and what corrective actions will be taken where affirmative marketing requirements are not met. d. DisDlacement. Relocation. and Acquisition. Consistent with the other goals and objectives of this Subpart H of 24 CFR 92, CONTRACTOR must ensure that it has taken all reasonable steps to minimize the displacement of persons (families and individuals) as a result of any project assisted with HOME funds. Moreover, CONTRACTOR agrees that it will not undertake any project activity that will cause displacement of any homeowner in accordance with Section 92.353, without the approval of the City. e. Conflict of Interest. CONTRACTOR will hereby comply with all requirements set forth regarding conflict of interest provisions as they apply in Section 92.356. f. Debarment and Suspension. As required in Section 92.357, CONTRACTOR will comply with all debarment and suspension certifications. g. Flood Insurance. Under the Flood Disaster Protection Act of 1973, HOME funds may not be used with respect to the acquisition or rehabilitation of a project located in an area identified by the Federal Emergency Management Agency (FEMA) as having special flood hazards, unless: o 1. The community in which the area is situated is participating in the National Flood Insurance Program, or less than a year has passed since FEMA notification regarding such hazards; and 2. Flood insurance is obtained as a condition of approval of the commitment. If the unit is located in an area identified by FEMA as having special flood hazards, upon notification by the Agency or FEMA, CONTRACTOR is responsible for assuring that flood insurance under the National Flood Insurance Program is obtained and maintained on each unit assisted with Grant Funds. Section 21. PROGRAM LOANS AND PROGRAM LOAN DOCUMENTS ARE THE PROPERTY OF THE AGENCY. Each Program Loan is the property and asset of the Agency. The CONTRACTOR has no property interest in any such Program Loan and the CONTRACTOR shall not transfer, assign or pledge as collateral or claim any other security interest in any such Program Loan. All of the Program Loan Documents are the property of the Agency, and the CONTRACTOR shall maintain all such Program 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 Program Loan Documents shall be delivered by the CONTRACTOR to the Agency. All Agency Funds deposited with the CONTRACTOR who will deposit said funds to the Program Loan Disbursement Account are the property of the Agency until paid by the CONTRACTOR for the account of a Qualified Homeowner under the applicable o Program Loan Documents. 12 p,1Apndu1Apada "-hmellIJlApnU-Amcnd 2005\05-()2.07 NHS SF OnnI......---CoalnlcI1lIlIewoI "",,".do< llll","m~nr' n,' =1'"' . " e o o Section 22. 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. IN WITNESS WHEREOF, the CONTRACTOR and the Agency have caus(:d 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. AGENCY Redevelopment Agency of the City of San Bernardino Date: By: Executive Director Approved as to Form: CONTRACTOR Neighborhood Housing Services of the Inland Empire, Inc., a California nonprofit corporation Date: By: Title: Executive Director Date: By: Title: 13 P'IApaduIApndaA....Iunents\AamU-Amend 2005\05-02-07 NIlS SF Gran! ~ -.. ","""doc --"" ' ",- ..,- ExamIT "A" - 2004 INCOME LIMITS Riverside and San Bernardino Counties 80% of Median* 120% of Median* Family Size Redevelooment Limit RedevelQoment Limit 1 $30,400 $45,600 2 $34,750 $52,150 3 $39,100 $58,650 4 $43,450 $65,150 5 $46,900 $70,350 6 $50,400 $75,600 7 $53,850 $80,800 0 8 $57,350 $86,000 Effective March 2004. Source HCD *Subject to Annual Change o "",,,,cc>, , , '" EXHIBIT "B" .~~ CoIlamIa_~ '~L San_ ~ -- . \ 1S '--- ~In I ~~ IL ~ 1 I !. . . I ..... ~ J l- S 4'11 .:13 IlL . j ~ ~ - I ...... ...... i ", 1il " ~)\ --~~ ........... ( ~I\ 1. j ., 1. .J 1 ) J I I\.~ ~ , <II 1 ~ w \ ..... .... . .. i_ t.. ~ i /' I """'" I ~I r\ . I - St - -- ~ - ,- I . i 1'/ I 21" St I 19lh St 7'~ I ~ ~ E I '" ii 1-1 J s ~ 16111'" 0 ~ I' . padfic !!~ _) I . t ~ rI _St r:-- . Iii J L-, J 7 8aaoIne SI .... II ~ "..\ j 1'" 1111 St . 1011 :.... .. . ~- '- '" \\ ... St ... St J 710 St 01 S :01 ii ai 710 St /I .. " ,,;c, o. 0 I --- . ... St ... St I 5lh St '" T T FoGN-. I / 411 St 411 St "I '- 3fd IlL. "~ - - 3fd St , I /I I 3fd St 2nd St. I -45 -- -- J ../ . l ~y .-- i I i 111 1 ~ rL J ~ ai . ~ ~ '--j <II .. ....... . ' - co w JI! ~ north City of San Bernardino NIP TARGET AREAS -.- ,-". - - -__ ,~~.-_-" _'H d ,___._ _ , o EXHIBIT "C" SCOPE OF SERVICES (Description of Program) CONTRACTOR'S Administration Costs A. The Agency shall compensate CONTRACTOR the total sum of $280,000 for the administration and implementation of the Program herein and for services rendered under this Agreement. CONTRACTOR shall bill the Agency monthly in equal installments of $23,333.33 up to the maximum amount of compensation stated herein. B. Sinl!le Familv Beautification Loan/Grant Prol!ram (the "Prol!ram") ($1.000,OOO} The CONTRACTOR shall conduct the Program in accordance with the following guidelines: 1. Loan Program: On a case by case basis and only as approved and directed by the Agency Executive Director, utilize the funds herein to provide deferred low interest (3%) loans up to a maximum of $35,000 per property, and to provide Beautification Grants up to a maximum of $10,000 per property to Qualified Homeowners. (NOTE: Refer to Section 6(a) of this Agreement for specific Budget Line Items on how these funds are to be used). On a case-by-case basis, subject to extenuating circumstances, the amounts herein may be exceeded, provided CONTRACTOR has obtained approval by the Agency Executive Director, or hislher authorized designee. The o improvements allowed under the Program are described in "0" below of this Scope of Services. 2. Grant Program: CONTRACTOR shall accept Program Loan/Grant Applications from respective Qualified Homeowners to determine income and improvement eligibility (see Exhibit "A".), determine equity on the subject property, verify ownership by obtaining a preliminary title report or other pertinent documentation from a reputable title Company. CONTRACTOR shall offer the Program on an as needed, first-come, first-served basis, to Qualified Homeowners throughout the City of San Bernardino, and as specifically directed by the Agency Executive Director. The improvements allowed under the Program are described in "0" below of this Scope of Services. C. MobUe Home Grant Prol!ram 1. The CONTRACTOR shall use the HOME funds to administer, implement and manage the Mobile Home Grant Program providing grants of up to $5,000 per housing unit to income eligible owner occupied single family mobile home units located within the City of San Bernardino (the "Mobile Home Grant Program"). (NOTE: Refer to Section 6(a) of this Agreement for specific Budget Line Items on how these funds are to be used). 2. Only Income Eligible Homeowners who have been cited by the City's Inspection Services Division, under Title 25 of the Mobile Home Park Act (the "Act"), or any other applicable legislation or local codes, shall be eligible to participate in the Program (only units built after 1980 are eligible for the grant program). This requirement will insure that only those owners requiring o P:\AaCndu\Aacnda _v.,mu-Amaod 2OOS\05-OU7 NIlS SF GrInl ~ -.. AInnI-cIoc -~<"' " "..' . -- '~-""-- -- .- o work under the Act, or other laws, are assisted prior to all others, provided that the homeowner meets all other Program criteria. 3. CONTRACTOR shall determine income eligibility for all homeowners participating in the Mobile Home Grant Program and shall insure that no homeowner's income exceeds the 80% of median income for San Bernardino County (Exhibit "A") area. The improvements allowed under the Program are described in "0" below of this Scope of Services. *Income limits are subject to annual renewal. D. EIi2ible Improvements Permitted under the Proeram The following types of improvements are permitted, but not limited to: 1. Loan Program: Roof replacement; exterior and interior painting, including lead remediation; landscaping (automatic sprinklers and grass seed); window replacement; carpet replacement and/or flooring; heating and air system replacements; electrical work; sewer repair or sewer installation; termite repairs; exterior concrete flatwork such as sidewalks, driveways, curbs, gutters, hand railings; door or window screens; tub, shower, toilet repairs or replacements; foundation or structural repairs; fencing, etc. The Maximum Loan permitted under the Program is $35,000 per property. o 2. Grant Program: Roof replacement; exterior painting including lead remediation; landscaping including automatic sprinklers, grass seed and planting materials in accordance with Agency Landscaping Guidelines; parkway enhancements such as stamped concrete, trees and landscape plantings; window replacement; driveway repairs or replacements; garage door replacement; wrought iron, vinyl, wood or block fencing. The Maximum Beautification Grant permitted under the Program is $10,000 per property. 3. MobUe Home Grant Program: hnprovements include but are not limited to: Roof replacement (metal, aluminum, composition shingle, including carports and awnings); replacement of siding and skirting, patios and porches, stair units (carpet and handrails), carport columns, water heaters, heater units, Evaporator cooler units, ceilings paneling (interior), flooring repair and coverings (health and safety concern), handicap fixtures and units, appliances (limited to stovetops, wall ovens, exhaust hoods), doors and windows. The Maximum Grant permitted under the Program is $5,000 per unit. E. Applicant ElieibUitv Reauirements for the Proeram 1. Qualified Homeowner must be an owner occupant for a minimum period of one (1) year; on a case-by-case basis, and depending on the circumstances, this requirement may be waived by the Agency Executive Director or his/her designee; CONTRACTOR shall obtain evidence of ownership and length of residency. 2. Qualified Homeowner must complete a Program Application (see Exhibit "0" as an o example) and meet the applicable income criteria (see Exhibit "A"). P,\ApodII"","*~Amond200~S-02007 NHSSFGnaI ~ _a1 Apno.d.. "~I'I!lflt'''' r.... ..,F....,.."."'I"~T "rr" . 'r o 3. All Qualified Homeowners must agree to attend a Maintenance Class conducted by CONTRACTOR; to sign and notarize a Maintenance Covenant and agree to live in their home for not less than one (1) year following recordation of the Maintenance Covenant. F. Guidelines: The CONTRACTOR shall conduct the Program in accordance with the following guidelines: 1. CONTRACTOR shall administer and implement the Program herein and shall utilize the applicable and pertinent sections of the Economic Development Agency's (BDA), Rehabilitation Loan and Grant Policies and Procedures Manual for guidance on processing and packaging all loans and grants under this Agreement, if applicable under the direction of the Executive Director. 2. The CONTRACTOR shall process Program Applications on a first-come, first-served basis. However, in case of emergency, or life threatening situation, the CONTRACTOR may process an application on an urgent basis subject to approval by the Agency Executive Director. 3. The CONTRACTOR shall inspect 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 or improved under the Program when completed are aesthetically pleasing and in compliance with local, state and federal ordinances and laws. o 4. The CONTRACTOR shall prepare and complete work write-ups, cost estimates, and bid packages for the improvements for each property. 5. The CONTRACTOR shall ensure that all work performed on the Qualified Homeowner's home is performed by pre-qualified State licensed contractors. The CONTRACTOR shall also require that any contractor performing work under the Program possess a current business license in the City of San Bernardino and has a current license with the State of California contractor's License Board. The CONTRACTOR shall be required, whenever feasible, to obtain a minimum of three (3) bids for all work performed. All work performed by contractors shall be approved and authorized by the Qualified Homeowner, and shall be completed within a specified timeframe acceptable to Qualified Homeowner and contractors. 6. The CONTRACTOR shall solicit bids for the rehabilitation work from a list of pre-approved general contractors and assisting Qualified 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-through conferences, etc. 7. The CONTRACTOR shall inspect and monitor the rehabilitation work while in progress and supervise 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. The CONTRACTOR shall coordinate final inspection and payment of the contract retention o with the Qualified Homeowner and contractor. P:\ApadoI1Apada _IA&rmU-Amend 2005\0'-01-0'1 NIlS SF GrInl ~ __ AJrnt.doo - o o , ", " '-I'" '"]'- ,~, ."'-" -.. "_'mr'~~-<-"vw--"-"""""="-'r"~"-==''''''''' 9. The CONTRACTOR shall maintain accurate records for inspection by the Agency concerning income and program occupancy of all persons obtaining assistances from the CONTRACTOR pursuant to this Agreement 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 each loan. 10. The CONTRACTOR shall also provide quarterly reports to the Agency, or as necessary, upon the request of the Agency Executive Director. From time to time, the Agency and CONTRACTOR shall coordinate inspection site visits to ensure that the work being performed on a Qualified Homeowner's home is being performed in a good workmanlike manner and in accordance with applicable codes (UBC, UPC, UMC, NEC and Health and Safety) and City Ordinances. 11. The CONTRACTOR shall provide any and all services required by the Executive Director or hislher designee, in order to effectively implement and complete the Services under this Agreement. P:~ A............IAp1m-Amend 2OOS\05-02.o7 NIlS SF GnnI ~ RencwaJ AJrmI,doc: -~, " ,',>'"'' ~'_'.v,< ,,-- ,.",,, ~,~" "-"""TT''ft!''1fN''', """'IT'_ ",..'~ " , """"","'p~'r"'-"""""" o EXHIBIT "0" City Of San Bernardlno- Economic Development Agency Exterior Beautification/Lead Hazard Control/Maintenance Grant Program Mobile Home Grant Program APPLICATION Property Owner's Name (Last, First. MI) Property Owner's Name (Last, First, MI) Property Address Zip Code Mailing Address (If Different than Property) Property Owners Telephone Number City/State/Zip Code Years at Residence No. of Units_No. of Bedrooms Tenant Phone Number Alternate Phone Number Rental 0 Tenant Name Lease Expiration Date Monthly Rent List all persons living In residence including yourself and children six years 01 age and under who sDend a slanllJcant amount 01 time In the hame Relationship Social Security Pregnant I:mployea Name DOB Yes NO Yes No Number ~ Social Security Employment Pension/Retire Other/Real Prop. $ $ $ $ $ Total Annual Income 8 8 Page 1 ~"'"",:1":~~~<12::"'f--",_m""',[T~'" -"'1 .- ~"F"~~_~''''_'O'''' ELIGIBLE IMPROVEMENTS: Please check as many as needed. An Agency/NHS inspector will determine improvements based on grant funding, evident need, program guidelines. and code, health and saf issues. o 1. Roof Replacement 0 2. Lead Remediation 0 3. Exterior Painting 0 4. Landscaping/Automatic Sprinklers 0 5. Fendng 0 6. Driveway/Concrete Replacement 7. Window Replacement 8. Security Ughting 9. Garage Door Replacement 10. Other o o o o o ETHNICITY: IPlease check all that apply) Sr. Citizenls)-62 or older 0 Female Head of Household Hispanic 0 Asian/Padfic Islander Black 0 White, Non-Hispanic o o o Disabled 0 American Indian 0 Other 0 The undersigned property owner declares under penalty of pe~ury that the information provided abo and statements contained in this application are true and correct. The applicant is advised that fictitiou fraudulent statements provided by applicant are a violation of both state and federal law and could re in criminal prosecutions. I authorize the Agency or NHS to examine and verify any and all informat provided in this application. IJllreby certify that I am the owner of the subject property described above and I do hereby authorize . of San Bernardino Economic Development Agency and/or its local agents to conduct an inspection the subject property for the presence of lead based paint and to perform an assessment of any lea related health risk. I understand that the inspection and risk inspection will be conducted by a Sta certified Inspector/Risk Assessor and will be conducted in accordance with protocols established by the S. Department of Housing and Urban Development IHUD). I further understand that the inspection and assessment services as well as a report of any finding and recommendations will be provided to me at cost. Property Owner's Signature Date Property Owner's Signature Date Tenant Signature Date HUD Median: Parcel No. For LHe Agency Witness: Si nature: Date: Page 2 1/11/2005 _",_._,""W":-'::":_-_~_:::":::')"~"r'1lf;:"''''rTI'. -4-'c",m,.- ,- - EXHIBIT "D" o REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO SINGLE FAMILY HOME IMPROVEMENT LOAN AND BEAUTIFICATION GRANT PROGRAM Application Instructions & Checklist You ate applying for a grant and/or loan. Anyone living in the household must be listed on the application. Fill in all blanks as they apply to you. If necessary, you will be contacted to clarify the infonnation. Please remember to sign at the bottom (homeowners: anyone who is on the title). Your personal infonnation is kept confidential within the organization and City. Please provide us with the following infonnation as it applies to you. o Property OwnerShip I. Copy of current mortgage statement. 2. Copy<of current year property tax bill 3. Copy of property insurance statement o Social Security Card(s) o I. . Enclose copies for all individuals residing in the home o Evidence of Income I. Copies of 2 most recent pay stubs 2. Evidence of alimony or child support, if received 3. Copy of most recent Federal tax return o Evidence of Government Assistance If you receive any of these benefits, please enclose a copy of the document which applies: 1. Statement of benefits for SSI, SSP, or AFDC 2. Statement of unemployment or disability benefits 3. Statement of pension or retirement benefits o Bank Statement 1. Enclose copies of current (2 months) checking and/or savings account statements (all pages) If you need help in completing the application or have questions, please call NHSIE, Rehab Division, at (909) 884-6891. o Si usted necesita ayuda para completar esta aplicaci6n, favor de llamar a NHSIE. Nuestros empleados hablan espafiol. NHSIE is a private. nonprofit corporation authorized by the Redeve10pment Agency of the City of San Bernardino to administer their Program. NHSIE is a General CQntractor (License #B-745831).