HomeMy WebLinkAboutR31-Economic Development Agency
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
OR1G1NAL
FROM: Maggie Pacheco
Interim Executive Director
SUBJECT: 2006 HOME Program Development
Agreement with Habitat for Humanity, San
Bernardino Area, Inc.
DATE:
January 9, 2006
SvnoDsis of Previous Commission/Council/Committee Action(s):
On November 22, 2005, Redevelopment Committee Members Estrada and Longville unanimously voted to recommend
that the Community Development Commission consider this action for approval.
Recommended Motion(s):
Open/Close Public Hearing
(Mayor and Common Council)
Motion: That the Mayor and Common Council of the City of San Bernardino approve an Amendment to the 2005-
2010 Five-Year Consolidated Plan and the 2005-2006 Action Plan authorizing $80,000 in HOME
Partnership Program-Community Housing Development Organization (CHDO) funds to Habitat for
Humanity, San Bernardino Area, Inc., a California non-profit corporation
(Community Development Commission)
Resolution of the Community Development Commission of the City of San Bernardino approving and
authorizing the Interim Executive Director of the Redevelopment Agency of the City of San Bernardino
("Agency") to execute the 2006 HOME Program Development Agreement ("2006 HOME Agreement") by
and between the Agency and Habitat for Humanity, San Bernardino Area, Inc., a California non-profit
corporation
Contact Person(s):
Maggie Pacheco
Phone:
(909) 663-1044
Project Area(s):
N/A
Ward(s):
71h
Supporting Data Attached: It] StaffRe ort It] Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Letters
SIGNATURE:
80,000
Source:
2001-2006 HOME CHDO Budget
EDA Budget
FUNDING REQUIREMENTS:
Budget Authority:
l50-tw~~c";s, if
Barbara Lindseth, Admin. Services Director
Commission/Council Notes:
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P:\Agendas\Comm Dcv Commission\CDC 2006\01-23-06 Habitat for Humanity SR.doc
COUNCIL MEETING AGENDA
Meeting Date: 01123/2006
Agenda Item Number: lZoJ
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ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
2006 HOME PROGRAM DEVELOPMENT AGREEMENT WITH HABITAT FOR
HUMANITY, SAN BERNARDINO AREA, INC.
BACKGROUND:
Habitat for Humanity is an international organization known for building affordable homes for low-
income families both locally and overseas. Since 1993, the local chapter, Habitat for Humanity, San
Bernardino Area, Inc. (Habitat) has built over twenty-three (23) homes benefiting and creating
homeownership opportunities for over 23 families througbout tbe San Bernardino County area. Four
(4) oftbese bomes were built in tbe City (284 South Allen Street built in 1994,2316 Nortb "G" Street
built in 2000, 1214 and 1232 West 191h Street built in 2002) ofwbicb 3 oftbem were assisted by the
Agency with HOME funds. Habitat has built homes in other cities such as Fontana, Redlands, Lorna
Linda and Highland.
The City is an annual recipient of HOME federal funds and is required to set aside not less than 15% of
the funds to assist local Community Housing Development Organizations (CHDO's) to build or
rebabilitate affordable housing units in the City. The Agency administers the HOME Program on
behalf of the City and presently tbere is approximately $900,000 in uncommitted CHDO funds..
Habitat is an approved CHDO per HUD guidelines.
CURRENT ISSUE:
On May 16,2005, tbe Mayor and Common Council approved the 2005-2010 Five-Year Consolidated
Plan and the 2005-2006 Action Plan ("Plan;') for the implementation of various projects and activities.
. Tbe proposed Habitat Project was not included in the approved Plan and, as a result, 24 CFR part
91.505 of the Consolidated Plan guidelines require that the approved Plan be amended to include new
projects and funding allocations. The required Public Notice under 24 CFR 91.105 (c)(2) and 24 CFR
570.302 was published in tbe Sun newspaper on December 22, 2005 and January 9, 2006 notifying tbe
general public of the proposed Plan Amendment to add the Habitat Project. The Public Notice also
provides citizens tbe opportunity to review and comment on the proposed Plan Amendment no later
than 4:00 p.m. on January 23, 2006.
Habitat has negotiated the purchase of the vacant lot located at 495 West 361h Street ("Site") (southeast
comer of "E" Street and 36th Street north) with AT&T Communications, to develop a single family
home of approximately 1,243 square feet, consisting of 3 bedrooms, 2 baths with a two-car garage on
the Site for a pre-qualified family. They have obtained financial commitments of approximately
$150,000, towards the development of the home. These funds come from various contributions to the
local chapter and in-kind labor. The estimated construction cost of the borne, including required City
and other permits, inspections, and impact fees is $230,000. Consequently, Habitat is requesting that
the Agency provide funds in the amount of $80,000 to buy the Site and pay for development and
permit fees ("Project"). Habitat anticipates construction of the home to begin in March 2006 and
completed by December 2006.
P:....Agendls\Comm De,' CommiSSIOn CDC 2006\01.2)..06 Habilll ror Humanity SR.doc
COUNCIL MEETING AGENDA
:\feeting Date: 01/1312006
Agenda Item Number: It 'b ,_
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Economic Development Agency Staff Report
Habitat for Humanity - 2006 HOME Agreement
Page 2
When the home is completed and sold to a pre-qualified and pre-selected family, Habitat acts as the
lender and carries the note at no interest secured by a deed of trust. The home will be sold to a low-
income buyer earning not more than 50% of area median income. To date, all twenty-three (23) homes
in Habitat's portfolio are current with no defaults. Participants are screened and educated on
homeownership responsibilities and property maintenance. Additionally, the families are required to
participate in the construction of the home by providing a minimum of 500 hours of sweat equity and
make a modest 1% downpayment towards the purchaSe price and closing costs.
In return for the Agency's HOME grant in the amount of $80,000, the completed home will be owner
occupied by a qualified homeowner for a minimum period of forty-five (45) years pursuant to the
HOME Program Regulatory Agreement Property Use and Covenant (CC&R) between the Agency,
Habitat and the buyer. This CC&R will assist the Agency in meeting its housing obligations and goals
in the Consolidated Plan, the Housing Element and Affordable Housing Plan.
ENVIRONMENTAL IMPACT:
The action requested is exempt under the National Enviromnental Policy Act (NEP A) and the
proposed infill single family home is a categorically exempt Project under the California
Enviromnental Quality Act (CEQA) because the lot has access to full utility services and abuts a.
dedicated and fully improved public street. The Project is consistent with the City's General Plan and
Zoning. Accordingly, a Notice of Exemption for the Project under CEQA will be filed with the
County Clerk upon approval by the Community Development Commission.
FISCAL IMPACT:
. Prior year's HOME funds in the amount of $80,000 are available in the 2005-2006 fiscal year CHDO
budget.
RECOMMENDATION:
That the Mayor and Common Council adopt the Motion and the Community Development
Commission adopt the attached Resolution.
P:\Apnciu\('Orm1 De... Comnlt..ion\CDC 2006\01.23-06 ~ for HumanlY SR doc
COUNCIL MEETING AGENDA
Meeting Date: 01/13/1006
Agenda Item Number: ~
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RESOLUTION NO.
RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING
AND AUTHORIZING THE INTERIM EXECUTIVE DIRECTOR OF
THE REDEVELOPMENT AGENCY OF THE CITY OF SAN
BERNARDINO ("AGENCY") TO EXECUTE THE 2006 HOME
PROGRAM DEVELOPMENT AGREEMENT ("2006 HOME
AGREEMENT") BY AND BETWEEN THE AGENCY AND HABIT A T
FOR HUMANITY, SAN BERNARDINO AREA, INC., A CALIFORNIA
NON-PROFIT CORPORATION
WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency")
9
is a public body corporate and politic; and
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WHEREAS, the Agency is responsible for administering the City of San Bernardino
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(the "City") federal entitlement grant programs from the United States Department of Housing
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and Urban Development (HUD) on behalf of the City; and
WHEREAS, Habitat for Humanity, San Bernardino Area, Inc., a California non-profit
corporation (the "Participant") is locally and internationalIy known for building affordable
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homes for low and moderate income households; and
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WHEREAS, the Participant has requested financial assistance in the amount of $80,000
from the Agency for the purchase of the property located at 495 West 36th Street (APN: 0152-
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061-01) ("Property") and development and permit fees for the development of an owner
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occupied single family home for a low-income family in the City (the "HOME Project"); and
WHEREAS, the Participant has obtained approximately $150,000 for the development
of the HOME Project on the Property; and
WHEREAS, on May 16, 2005, the Mayor and Common Council approved the 2005-
2010 Five-Year Consolidated Plan and 2005-2006 Action Plan identifying projects,
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22
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beneficiaries and funding allocations for activities identified in the approved Plan; and
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WHEREAS, the Mayor and Common Council has amended the 2005-2010 Five-Year
Consolidated Plan and 2005-2006 Action Plan to include the proposed HOME Project in
compliance with 24 CFR 91.505 and 24 CFR 570.302.
4
NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND
ORDER AS FOLLOWS:
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6
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The Recitals of this Resolution are true and correct.
Section 1.
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Section 2.
Subject to the terms and conditions of the 2006 HOME Agreement, the
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Community Development Commission ("Commission") on January 23, 2006, hereby reserves
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the sum of not-to-exceed Eighty Thousand Dollars ($80,000) from fiscal year 2001-2006
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HOME CHDO Funds, as approved and budgeted in the Agency budget for use by the
Participant for the HOME Project.
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Section 3.
The Commission hereby finds and determines that the approval of the
2006 HOME Agreement and the disbursement of the HOME CHDO funds reserved for the
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Participant under Section 2 of this Resolution, requires no further environmental assessment
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under the provisions of the National Environmental Protection Act (NEP A) in view of the
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categorized exemption applicable to the HOME Project as set forth at 24 CFR Part 58.35(c)(2)
and under the California Environmental Quality Act (CEQA), pursuant to S 15332, Class 32.
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No potentially adverse environmental effects are anticipated to be associated with the
development of the HOME Project and, accordingly, based upon its own independent review
of the information provided to the Commission regarding the HOME Project, the Commission
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hereby authorizes the filing of a Notice of Exemption under CEQA relating to the HOME
Project. .
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Section 4:
The Commission hereby approves the 2006 HOME Agreement as
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presented at the meeting at which this Resolution is adopted. The Interim Executive Director
o 25 of the Agency is hereby authorized and directed to execute the 2006 HOME Agreement on
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behalf of the Agency, and to make minor corrections, additions and clarifications to the 2006
2
HOME Agreement, provided such changes are not substantive in nature, do not increase the
3 monetary impact to the Agency and the changes are approved by the Agency Counsel.
The Resolution shall become effective immediately upon its adoption.
4 Section S.
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RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING
AND AUTHORIZING THE INTERIM EXECUTIVE DIRECTOR OF
THE REDEVELOPMENT AGENCY OF THE CITY OF SAN
BERNARDINO ("AGENCY") TO EXECUTE THE 2006 HOME
PROGRAM DEVELOPMENT AGREEMENT ("2006 ' HOME
AGREEMENT") BY AND BETWEEN THE AGENCY AND HABITAT
FOR HUMANITY, SAN BERNARDINO AREA, INC., A CALIFORNIA
NON-PROFIT CORPORATION
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the
Community Development Commission of the City of San Bernardino at a
meeting
thereof, held on the
day of
Aves
, 2006, by the following vote to wit:
Aostain
Absent
Navs
Commission Members:
ESTRADA
LONGVILLE
MCGINNIS
DERRY
KELLEY
JOHNSON
MC CAMMACK
Secretary
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19 The foregoing resolution is hereby approved this
,2006.
day of
20
21
Judith Valles, Chairperson
Community Development Commission
of the City of San Bernardino
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Approved as to form and Legal Content:
23
24 By:
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2006
REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
HOME PROGRAM DEVELOPMENT AGREEMENT
(HABITAT FOR HUMANITY, SAN BERNARDINO AREA, INC.)
(FOR A SINGLE FAMILY OWNER OCCUPIED HOME)
2001-06 HOME/CHDO FUNDS
This 2006 HOME Program Development Agreement (the "HOME Agreement'') is dated as of
January 23, 2006 by and between the Redevelopment Agency of the City of San Bernardino (the
"Agency"), a public body, corporate and politic and Habitat for Humanity, San Bernardino Area,
Inc. a California non-profit corporation (the "Participant"). The Agency and the Participant
hereby agree as follows:
RE~(TALS
1.
The Agency is a community redevelopment agency engaged in carrying out its public
purposes including increasing, improving and preserving the supply of affordable
housing in the City of San Bernardino (the "City''). The Agency is the administrator of
the HOME Program described at 24 Code of Federal Regulations part 92 ct sea. on behalf
of the City. HOME Program funds have been made available to the Agency to promote
and enhance the community's supply of affordable housing; and
2. The Participant is a well-established non-profit Community Housing Development
OJpni7.ation (CHDO), housing provider, that has the experience and qualifications to
undertake the HOME Project, as described in 4 below, of this HOME Agreement; and
3. The HOME Project shall be undertaken by the Participant on vacant property to be
acquired by Participant as more specifically described in Exhibit "A" (the "HOME Lot")
as herein provided;
4. The proceeds of the HOME Project Grant as shall be provided by the Agency in the sum
of Eighty Thousand Dollars ($80,000) shall be used and applied by the Participant,
together with the funds received from the Habitat Project Sponsor and other Participant
funds in the amount sufficient to pay for the construction of the HOME Project as defined
below:
(i) $50,000 - Acquisition of the HOME Lot
$30,000 - City required development and pennit fees
$150,000 (Participant's fund) for Construction of a three (3) bedroom,
two (2) bauiI'OOm new single family residential structure (including an
attached garage) on the HOME Lot, (the "New Home"), consisting of
approximately 1,243 square feet of interior living area, including
exterior landscape amenities;
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(ii) marketing and sale of the completed New Home at a maximum purchase
price for the New Home (including the HOME Lot) that does not exceed
95 percent of the median purchase price for the area as set forth at 24
CFR Part 92.254(a)(2)(iii); and
(Hi) the New Home shall be acquired by a homebuyer whose family qualifies
as a low-income family (the "Qualified Homebuyer") and who shall also
covenant to the agency that the New Home shall be used and occupied
as the principal residence of the Qualified Homebuyer for forty-five (45)
years following the date of initial occupancy of the New Home by the
Qualified Homebuyer.
The elements of the HOME Project are more fully described in the HOME
Project description attached hereto as Exhibit "B".
NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE MUTUAL
COVENANTS HEREIN CONTAINED, THE AGENCY AND THE PARTICIPANT AGREE
AS FOLLOWS:
SECTION 1.
PURPOSE OF THE HOME AGREEMENT
The purpose of this HOME Agreement is to effectuate various redevelopment plans for the City
and to implement the HOME Program of the City of San Bernardino (24 Code of Federal
Regulations Part 92 ~.) by providing Agency assistance to the Participant in connection with
the implementation of the HOME Project. The construction of the HOME Project pursuant to
this HOME Agreement is in the vital and best interest of the City and the health, safety and
welfare of its residents, and in accord with the public purposes and provisions of applicable state,
federal, and local laws. The Community Development Commission, acting as the governing
board of the Agency has determined that the implementation of the HOME Project as
contemplated by this HOME Agreement will benefit the low- and moderate-income housing
needs of the City, the various redevelopment project areas of the City, and assist the City with
the implementation of the HOME Program and the goals and objectives of the Consolidated Plan
and the affordable housing programs of the Agency.
SECTION Z. EFFECTIVE DATE AND PRELIMINARY CONDITIONS FOR
DISBURSEMENT OF HOME PROJECT GRANT
(A) This HOME Agreement shall take effect upon approval by the governing board of the
Agency and the full execution by the parties.
(B) Participant shall submit an executed Purchase and Sales Agreement by and between
Seller of the HOME Lot and Participant, and an itemized budget and costs supporting the
expenditure associated with the HOME Project prior to disbursement of the HOME
Project Grant by the Agency.
(C) Concurrently with the submission of a request by the Participant for the disbursement of
, the HOME Project Grant under Section 3(a) and (b), the Participant shall provide the
Agency with a complete and fully executed copy of the Agreement between the
Participant and Habitat Project Sponsor ("Agreement") evidencing all funds for the
HOME Project. The Habitat Project Sponsor shall provide the Participant with funds,
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which will be used by the Participant, together with the HOME Project Grant, to pay for
all development costs associated with the HOME Project. The Participant shall provide
the Agency with copies of all written amendments, modifications, and supplements to the
Agreement during the term of this HOME Agreement, which effect the development of
the HOME Project.
(D)
Concurrently with the delivery of the fully executed copy of the Habitat Project Sponsor
Agreement to the Agency, the Participant shall also provide the Agency with written
evidence of the insurance coverage described in Section 7, below.
(E)
Each of the conditions set forth in this Section 2 shall be satisfied by a date not later than
sixty (60) days following the date of approval of this HOME Agreement by the governing
board of the Agency or this Agreement may be terminated at the discretion of Agency.
SECTION 3.
GRANT
HOME PROJECT AND DISBURSEMENT OF THE HOME PROJECT
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(A) Subject to the satisfaction of the terms .and conditions of this HOME Agreement, and
Section 2 above by the Participant, the Agency hereby allocates the sum of up to Eighty
Thousand Dollars ($80,000) of Agency Fiscal Year 2001-06 HOME/CHDO Program
funds, as the HOME Project Grant for use and application by the Participant in
connection with the HOME Lot acquisition and City required development permit fees
for the HOME Project. No other source of funds of the City or the Agency are reserved
or available for the HOME Project except the funds made available by the Agency under
this Agreement. The HOME Project Grant shall be disbursed to the Participant as set
forth in this Section 3.
(B) Three (3) days prior to the escrow closing between the Seller of the HOME Lot and the
Participant ("Escrow"), and provided the conditions in Section 2(B) of this HOME
Agreement have been completed by the Participant, the Agency shall disburse the sum of
$50,000 from the HOME Project Grant on behalf of the Participant directly into the
Escrow account between the Participant and Seller.
(C) The Agency shall disburse the remainder of the HOME Project Grant in the amount of
not more than $30,000 for development permits and inspection fees ("Fees") related
solely to the HOME Project and upon submission of written evidence to the Agency that
the Fees are owed by the Participant prior to the issuance ofa development permit for the
HOME Project.
(D) Concurrently with the disbursement of the HOME Project Grant as per Section (B)
above, the parties shall execute and then Participant shall cause to be recorded against the
HOME Lot, through Escrow, a Notice of HOME Project Grant Agreement, in the form,
attached hereto, as Exhibit "C".
SECTION 4.
IMPROVEMENT OF THE NEW HOME
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(A) The Participant shall commence the construction and improvement of the New Home on
the HOME Lot within ninety (90) days following the date of all parties execution of the
Agreement and thereafter shall diligently prosecute such work to completion without
interruption.
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(B) The Participant shall construct and improve the New Home in a good and workmanlike
maJUler and shall complete the construction of the New Home within six (6) calendar
months following the date of execution of the Agreement by all parties. but in any event,
the Participant shall complete such by a date not later than June 30, 2007.
(C) The Participant shall not materially modify or change the plans of improvement of the
New Home without first obtaining the approval of the Agency and such approval by the
Agency shall not be unreasonably withheld; provided, however, that the proposed
modification or change is consistent with the HOME Program.
(0) During the course of constructing the New Home, the Participant shall initiate a
marketing and sale plan for the New Home to Qualified Homebuyers. The Participant
may establish a lottery system or any other fair and non-discriminatory means for
selecting the Qualified Homebuyer from among those interested persons who have
contacted the Participant for purchase of the New Home. The designation of the
Qualified Homebuyer by the Participant (subject only to income, credit and household
size verification and other HOME Program eligibility requirements by the Participant)
shall be final and conclusive.
(E) At the time of sale of the New Home to the Qualified Homebuyer, the Participant shall
cause the Qualified Homebuyer to execute the HOME Program Regulatory Agreement
and Property Use Covenant (the "Covenant") substantially in the form attached as Exhibit
"D". The Participant shall deliver to the Agency a true and complete set of New Home
purchase and sale agreement, including a buyer's and seller's escrow closing statement,
within ten (10) days following the close of the "New Home Escrow", as this, term is
defined in the HOME Regulatory Covenant.
(F) The Participant hereby agrees and covenants. to exercise its best reasonable efforts to
cause the completed New Home to be sold to, and occupied by, Qualified Homebuyer
within sixty (60) days following the date of the issuance of a certificate of occupancy for
the New Home by the City by a date not later than eighteen (18) months following the
date of approval of this HOME Agreement by the governing board of the Agency.
(G) At the time of sale of the New Home to the Qualified Homebuyer, the Participant shall
provide the Qualified Homebuyer with a general contractor's warranty that the
improvements of the New Home (including mechanical equipment) are free from defects
and have been installed in a good and workman-like fashion.
(H) The Participant hereby covenants and agrees to use the net sales proceeds realized from
the sale of the New Home to the Qualified Homebuyer, if applicable,(after the discharge
of the permitted construction lien and payment of permitted development costs, if
applicable) for the affordable housing development purposes of the Participant, as a
community housing development organization, and for other affordable housing projects
in the City of San Bernardino.
SECI10N 5.
REPRESENTATIONS AND WARRANTIES OF PARTICIPANT
o The Participant hereby represents and warrants to the Agency as follows:
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(i)
. Participant is a California non-profit corporation duly organized and existing and
authorized to transact business in California and the Participant has previously qualified
as a "501 (c)(3)" tax exempt entity under applicable federal tax laws;
(ii) Participant is a "community housing development organization" ("CHDO"), as this term
is defined at 24 CFR Part 92.2, and the Participant shall continuously maintain its status
as a CHDO during the term of this HOME Agreement;
(iii) The corporate charter and by-laws of the Participant authorize the Participant to
undertake the HOME Project and the governing board and membership of Participant
have previously taken all action necessary to authorize the execution of this HOME
Agreement by the Participant; and
(iv) The Participant is qualified and has the financial strength to undertake and complete the
HOME Project.
SECTION 6.
HOME PROGllAM OCCUPANCY RE~TlUCTIONS
(A) The HOME Project shall be reserved for occupancy by Qualified Homebuyer with an
annual household income of not more than 80% of the area median income adjusted for
family size subject to the provisions of the Covenant.
SECTION 7. CQMME'~IAL GE~~ LIABILITY INSURANCE AND
WO~S' COMPENSATJOtJ INSURANCE
(A) The Participant shall obtain and keep in force during the term of this HOME Agreement a
commercial general liability policy of insurance with coverage at least as broad as
"Insurance Services Office Commercial General Liability Form (00001)", including but
not limited to, insurance against assumed contractual liability under this HOME
Agreement protecting the City and the Agency and the officers, employees, and agents of
each of them, as additional insureds against claims for bodily injury, personal injury, and
property loss or damage based upon, involving or arising out of the HOME Project.
Such insurance shall be on an occurrence basis providing single limit coverage in an
amount not less than One Million Dollars ($1,000,000) in the event of bodily injury,
personal injury, and property loss or damage to any number of persons per occurrence.
The policy shall not contain any intra-insured exclusions as between insured persons and
organizations, but shall include coverage for liability assumed under this HOME
Agreement as an "insured contract" for the performance of the indemnity obligations of
the Participant to the City and the Agency. The limits or exclusions from coverage of
such insurance shall not however limit the liability of the Participant nor relieve the
Participant of any other obligations under ibis HOME Agreement. All insurance to be
carried by the Participant shall be primary to and not contributing to any single insurance
carried by the City or the Agency whose insurance shall be considered excess insurance
only.
(B) To the extent required by the law, the Participant shall carry and maintain workers'
compensation or similar insurance in form and amounts required by law. Such a program
of worker's compensation insurance shall include coverage of all ''volunteers'' and
"students" and "apprentices" of the Participant who perform any work on the HOME
Project.
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(C) All insurance which the Participant shall carry or maintain pursuant to this Section shall
be in such form, for such amounts, for such periods of time as the Agency may require or
approve and shall be issued by an insurance company or companies authorized to do
business in California and which maintains during the term of the policy a "General
Policy Holder's Rating" of at least A (v), as set forth in the most current edition of
"Best's Insurance Guide". In no circumstance will the Participant be entitled to assign to
any third party rights of action, which the Participant may have against the Agency or the
City. All policies or endorsements issued by the respective insurers for commercial
general liability insurance will name the city and the agency and the officers, employees
and agents of each of them, as additional insureds and provide that: (i) any loss shall be
notwithstanding any act or failure to act or negligence of the Participant or the Agency or
any other person; (ii) no cancellation, reduction in amount, or material change in
coverage thereof shall be effective until at least thirty (30) days after receipt by the
Agency of written notice thereof; and (iii) the insurer shall have no right of subrogation
against the City or the Agency or the officers, agents, or employees of either of them.
(D) The Participant shall deliver or cause to be delivered ~o the Agency by not later than the
time set forth in Section 2, an endorsement of its commercial general liability insurance
policy evidencing the existence" of the insurance coverage required by the Agency and
shall also deliver, no later than thirty (30) days prior to the expiration of any such policy,
a certificate of insurance evidencing each renewal policy covering the same risks.
SECTION 8.
RIGHT OF ACCESS
For the purpose of assuring compliance with this HOME Agreement, representatives of the
Agency and the City as designated by the Agency Interim Executive Director shall have the right
of access to the HOME Lot at normal construction hours during the course of construction of the
HOME Project for the purpose of inspection of the work being performed. The Agency shall
hold the Participant harmless from any bodily injury or related damages arising out of the
" activities" of Agency and the City as referred to in this Section 8, resulting from the gross
negligence or willful misconduct of the City or Agency while on HOME Lot. This Section 8
shall not be deemed to diminish or limit any other right or regulatory power which the City or
Agency may have by operation of law irrespective of the HOME Agreement. Nothing in this
Section 8 shall be deemed to make either the City or the Agency a guarantor of the work of
construction of HOME Lot or thereafter, the operation of the HOME Project by the Participant.
SECTION 9.
LOCAL. STATE AND FEDERAL LAWS
Participant shall carry out the HOME Project and all related activities on each HOME Lot in
conformity with all applicable laws, including all applicable federal and state labor standards as
applicable; provided, however, Participant and its contractors, successors, assigns, transferees,
and lessees are not waiving their rights to contest any such laws and rules or standards.
SECTION 10. ANTI-DISC),UMINATION DURING THE TERM OF THE HOME
PROJECT
Participant, for itself and successors and assigns, agrees that during the course of implementation
of the HOME Project, Participant shall not discriminate against any Qualified household
employee, applicant for employment, volunteer, student or apprentice engaged in the work of
construction of the HOME Project or the implementation of the HOME Project because of race,
color, creed, reiigion, familial status, sex, disability, national origin or ancestry.
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ASSJGNMENT OF 82M! AGREEM~NT PRIOR TO C01\W&J1QN OF THUlOM,E
PRO,JECT
The qualifications and identity of the Participant are of particular concern to the Agency. It is
because of those qualifications and identity that the Agency has entered into this HOME
Agreement with the Participant. No voluntary or involuntary successor in interest of the
Participant shall acquire any rights or powers under this HOME Agreement except as expressly
set forth herein. The Participant shall not assign all or any part of this HOME Agreement or any
rights hereunder without the prior written approval of the Agency, which approval the Agency
may grant, withhold or deny at its reasonable discretion. In the event that such a transfer or
assignment may be permitted by the Agency, the assignee shall expressly assume the obligations
of the Participant pursuant to this HOME Agreement in writing satisfactory to the Agency. In
the absence of a specific written agreement by the Agency, no such transfer, assignment, or
approval by the Agency shall be deemed to relieve the Participant or any other party from any
obligation under this HOME Agreement
SE~IOf'i 12. RIGHT OF AGENCY TO SATISFY OrnER LmNS ON THE HOME
PROJECT
Prior to the completion of the HOME Project and after Participant has received written notice
from the Agency and has failed, after a reasonable time, but in any event not less than thirty (30)
days, to challenge, cure, adequately bond against, or satisfy any lien or encumbrance on the
HOME Project (or any individual HOME Lot) which is not otherwise permitted under this
HOME Agreement, the Agency shall have the right, but not the obligation, to satisfy any such
lien or encumbrance. Any such sum advanced by the Agency shall be evidenced by a notice of
Agency lien or a security interest in the HOME Project (or any individual HOME Lot).
SECTION 13. USES - COVENANTS RUNNING WIT" mE HOME LOT
Participant covenants and agrees for itself, its successors, its assigns, and every successor in
interest in the HOME Project and a HOME Lot, that for the period of time set forth in the
Covenant (e.g.: 4S years from the date of execution and recordation of a "Covenant") (the
"Covenant") shall be devoted to and reserved for occupancy solely by a Qualified Homebuyer.
The Covenant is attached hereto as Exhibit "D". The Participant shall insure that a Qualified
Homebuyer executes the Covenant and said Covenant is recorded concurrently upon the close of
escrow for the HOME Lot.
The Participant shall file an initial Certificate of Program Compliance, in a form provided by the
Agency, certifying that the Qualified Homebuyer meets the requirements of the HOME Program.
The Participant further covenants and warrants that Participant shall undertake the construction
of the HOME Project on a HOME Lot in accordance with the standards set forth in this HOME
Agreement. Participant covenants to obtain all necessary permits for the construction of the
HOME Project in conformity with all applicable laws. Failure by the Participant to obtain all
necessary permits before commencing the work on any HOME Lot shall be a default under this
HOME Agreement.
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The Participant further covenant and warrants that Participant shall cause the Covenant to be
recorded and enforceable in favor of the Agency in its entire form to meet the requirements of
the HOME Program under this HOME Agreement.
Participant covenants by and for itself and any successors in interest that there shall be no
discrimination against or segregation of any person or group of persons on account of race, color,
creed, religion, sex, marital stanis, age, handicap, national origin or ancestry in the sale, transfer,
use, occupancy, tenure or enjoyment of the HOME Lot as improved with the New Home, nor
shall participant itself or any person claiming under or through it establish or permit any such
practice or practices of discrimination or segregation with reference to the selection of a
Qualified Homebuyer for the HOME Lot as improved with the New Home.
SECfION 14. MAINTENANCE OF TilE HOME LOT AND HOME ~OJECf
The Participant for itself, its successors and assigns hereby covenants and agrees that:
(A) The areas of HOME Lot included in the HOME Project, which are subject to public view
(including all paving, walkways, landscaping, exterior signage and ornamentation) shall
be maintained in good repair and a neat, clean and orderly condition, ordinary wear and
tear excepted. In the event that any time following the date of recordation of the
Covenant, there is an occurrence of an adverse condition on any area of HOME Lot
which is subject to public view in contravention of the general maintenance standard
described above, (a "Maintenance Deficiency"), then the Agency shall notifY the
Participant in writing of the Maintenance Deficiency and give the Participant thirty (30)
days from receipt of such notice to cure the Maintenance Deficiency as identified in the
notice. In the event the Participant fails to cure or commence to cure the Maintenance
Deficiency within the time allows, the Agency may conduct a public hearing following
transmittal of written notice thereof to the Participant ten (10) days prior to the scheduled
date of such public hearing in order to verifY whether a Maintenance Deficiency exists
and whether the Participant has failed to coinply with the provisions of this Section. If
upon the conclusion of a public hearing, the Agency makes a finding that a Maintenance
Deficiency exists and that there appears to be non-compliance with the general
maintenance standard described above, thereafter the Agency shall have the right to enter
the HOME Lot and perform all acts necessary to cure the Maintenance Deficiency, or to
take other action at law or equity which the Agency may then have to accomplish the
abatement of the Maintenance Deficiency. Any sum expended by the Agency for the
abatement of a Maintenance Deficiency on HOME Lot authorized by this Section shall
become a lien on HOME Lot. If the amount of the lien is not paid within thirty (30) days
after written demand for payment by the Agency to the Participant, the Agency shall have
the right to enforce the lien in the manner as provided in subsection (C), below.
(B) Graffiti, as this term is described in Government Code Section 38722, which has been
applied to any exterior surface of a structure or improvement on HOME Lot which is
visible from any public right-of-way adjacent or contiguous to HOME Lot, shall be
removed by the Participant by either painting over the evidence of such vandalism with a
paint which has been color-matched to the surface on which the paint is applied, or
" graffiti may be removed with solvents, detergents or water as appropriate. In the event
that such graffiti may become visible from an adjacent or contiguous public right-of-way
but is not removed within 72 hours following the time of suclt application, the Agency
shall have the right to enter the HOME Lot and remove the graffiti without notice to the
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Participant. Any sum expended by the Agency for the removal of such graffiti from the
HOME Lot authorized by this Subsection (B) in an amount not to exceed $2S0.00 per
entry by the Agency, shall become a lien on the HOME Lot. If the amount of the lien is
not paid within thirty (30) days after written demand for payment by the Agency to the
Participant, the Agency shall have' the right to enforce its lien in the manner as provided
in Subsection (C), below.
(C)
The parties hereto further mutually understand and agree that the rights conferred upon .
the Agency under this Section expressly include the power to establish and enforce a lien
or other encumbrance against the HOME Lot, in the manner provided under Civil Code
Section 2924, for sums expended in upholding the maintenance standard required under
Subsection (A) or Subsection (B), including salaries and wages of the legal staff of the
Office of City Attorney and/or Agency Counsel as may be associated with the abatement
of the Maintenance Deficiency or removal of graffiti and the coUection of the costs of the
Agency in connection with such action. The provisions of this Section 12 shall be
deemed to preclude the Participant from rehabilitating and operating the HOME Project
on HOME Lot, provided that such construction and improvement of the HOME Project
complies with the applicable zoning and building regulations of the City.
SECTION .}5. It'FECT OF VI9LA.TIO~ OF lID T~BMS AN~ P80VlSI9NS OF
u{J~ IJQME AG8EE~NT AFTER COMPLETION OF HOME lROJECT
The covenants established in this HOME Agreement shall, without regard to technical
classification and designation, be binding for the benefit and in favor of the Agency, its
successors and assigns, as to those covenants, which are for its benefit. The covenants against
discrimination as set forth in Section 10 shall remain in perpetuity. The covenants contained in
this HOME Agreement with respect to the Qualified Residents shall remain in effect on HOME
Lot for the term as set forth in the Covenant as applicable to the HOME Lot. The Agency is
deemed the beneficiary of the terms and provisions of this HOME Agreement and of the
covenants running with the land, for and in its own rights and for the purposes of protecting the
interest of the community and other parties, public or private, in whose favor and for whose
benefit this HOME Agreement and the covenants running with the land have been provided. The
Agency shall have the right, if the HOME Agreement or covenants are breached, to exercise all
rights and remedies, and to maintain any actions or suits at law or in equity or other proper
proceedings either in its name or in proceedings intended on its behalf by the City as successor
administrator of the affordable housing covenants of the Agency, to enforce the curing of such
breaches to which it or any other beneficiaries of this HOME Agreement and covenants may be
entitled.
SECTION 16. [RESERVED - NO TEXT}
SECTION 17. BREACH AND TERMINATION
(a) Termination Without Default or Breach Prior to Initial Disbursement of HOME Proiect
Grant to the Participant. This HOME Agreement may be terminated for the convenience
of either party who is not then in default upon thirty (30) days notice to the other party.
o (b) Defaults and Breach - General. Failure or delay by either party to perfonn any material
term or provision of this HOME Agreement shall constitute a default under this HOME
Agreement; provided, however, that if the party who is otherwise claimed to be in default
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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.
For the purposes of the preceding paragraph, a breach or default by the Participant under the
Agreement with the Habitat Project Sponsor shall be deemed to be a default under this HOME
Agreement.
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 or delay by, a party in asserting any of its rights and remedies as to any default shall
not operate as a waiver of any default or of any rights or remedies associated with a default.
Except with respect to rights and remedies expressly declared to be exclusive in this HOME
Agreement, the rights and remedies of the parties are cumulative and the exercise by either party
of one or more of such rights or remedies shall not preclude the exercise by it, at the same or
different times, of any other rights or remedies for the same default or any other default by the
other party.
In the event that a default of either party may remain uncured for more than thirty (30) calendar
days folJowing 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 tenninate this HOME
Agreement and seek any appropriate remedy or damages by initiating legal proceedings, if
necessary.
If either party incurs attorneys' fees in order to enforce its rights under this HOME Agreement
against the other party, the prevailing party shall be entitled to recover its reasonable attorneys'
fees as set by the court from the other party. For the purposes of this HOME Agreement, the
phrase "reasonable attorneys' fees" shall include without limitation the salaries, overhead and
benefits of the City Attorney for the City of San Bernardino and the attorneys employed, in that
public office who are utilized in connection with any action required or taken in connection with
this HOME Agreement.
SECI'ION 18. INDEMNIFICATION
The Participant shall indemnify and hold harmless the Agency and the City and the officials,
officers, employees and agents of the City and the Agency from and against any and all claims or
liability arising from Participant's actions under this HOME Agreement or from the conduct of
Participant's business or from any activity, work or things done, permitted or suffered by
Participant and shall further indemnify and hold harmless the Agency and City and their officers,
employees and agents from and against any and all claims arising from any breach or default in
the performance of any obligation of Participant under the terms of this HOME Agreement
arising from any negligent or wrongful act or omission of the Participant or Participant's agents,
contractors, employees or invitees and from and against all costs, attorneys', fees, expenses and
liability incurred in the defense of any such claim or any action or proceeding brought thereon.
Participant's agreement to indemnify and hold the Agency and City harmless shall extend to any
10
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claims or liabilities, including but not limited to claims pertaining to environmental conditions,
alleged construction defects, or other matters, that may arise as a result of the Participant's
o development of any HOME Lot.
SEO'ION 19. INSPECTION 9t: IQOKS. RJCORDS AND REPORTS
The Agency has the right at all reasonable times to inspect the books and records of Participant
pertaining to the HOME Project. The Participant shall provide the Agency with an annual
compliance statement that will assist the Agency in meeting its reporting requirement to HUD.
SECTION 10. NOTICE
Any notice, demand, request, consent, approval or communication that either party desires or is
required to give to the other party under this HOME Agreement shall be in writing and shall be
delivered to the appropriate party by personal service or U.S. Mail at its address as follows:
Participant:
Habitat for Humanity, San Bernardino Area, Inc.
Attention: Executive Director
P.O. Box 1550
Redlands, California 92373
Agency:
Redevelopment Agency of the City of San Bernardino
Attention: Interim Executive Director
201 North "En Street, Suite 301
San Bernardino, California 92401
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SECTION 11. SUBMISSION OF DOCUMENTS TO AGE~p' FOR APPROVAL
Whenever this HOME Agreement requires Participant to submit any document to the Agency for
approval, which shall be deemed approved if not acted on by the Agency within the specified
time, said document shall be accompanied by a letter stating that it is being submitted and will be
deemed approved unless rejected by the Agency within the stated time. If there is not a time
specified herein for such Agency action, Participant may submit a letter requiring the Agency
approval or rejection of documents within thirty (30) days after submission to the Agency or
such documents shall be deemed approved.
The terms, covenants, conditions and restriction of this HOME Agreement shall extend to and
shall be binding upon and inure to the benefit of the successors and assigns of Participant.
SECTIOl!Ul. INCORfORATION BY REFERENCE OF STANDARD HOME
. PERFO~Q; COVENANTS
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Participant further agrees to submit for inspection and copying all required business records and
HOME Project-related data, as requested by the Agency, upon reasonable notice by the Agency
in order for the Agency to verify compliance by the Participant with the U.S. Department of
Housing and Urban Development (HUD) HOME Program and regulations this HOME
Agreement.
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SECTION 23. MISCELLANEOUS
This HOME Agreement is executed in three (3) duplicate originals, each of which is deemed to
be an original. This HOME Agreement includes Exhibits A, B, C and D which together with this
HOME Agreement constitute the entire understanding and agreement of the parties. No private
entity shall be deemed to be a third party beneficiary with respect to any provision of this HOME
Agreement. This HOME Agreement integrates all of the tenns and conditions mentioned herein
or incidental hereto, and supersedes all negotiations or previous agreements among the parties or
their predecessors in interest with respect to all or any part of the subject matter hereof.
If any part or provision of this HOME Agreement is in contlict or inconsistent with applicable
provisions of federal, state, or city laws, or is otherwise held to be invalid or unenforceable by
any court of competent jurisdiction, such part or provision shall be suspended and superceded by
such applicable law or regulations, and the remainder of this HOME Agreement shall not be
affected thereby.
All waivers of the provisions of this HOME Agreement ll1ust be in writing by the Interim
Executive Director of the Agency and the Participant, and all amendments thereto must be in
writing by the Interim Executive Director of the Agency and the Participant, except that the
Interim Executive Director of the Agency may only agree to non-substantive changes hereto with
concurrence by Agency Counsel. Substantial changes to this HOME Agreement shall require the
prior approval of the governing board of the Agency.
This HOME Agreement, when executed by Participant and delivered to the Agency, must be
authorized by the governing body of the Agency and executed and delivered on behalf of the
Agency by its undersigned officers on or before thirty (30) days after signing and delivery of this
HOME Agreement by Participant, or this HOME Agreement shall have no force or effect, except
to the extent that Participant shall consent in writing to a further extension of time for the
authorization, execution and delivery of this HOME Agreement. The date of this HOME
. Agreement shall be the date when it shall have been signed by the Interim Executive Director of
the Agency evidence by the date shown next to the authorized signatures of the Agency.
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IN WITNESS WHEREOF, the Agency and Participant have executed this HOME
Agreement as evidenced by the signatures of their authorized officers which appear below.
Date:
Approved as to Form:
By:
Date:
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AGENCY
Redevelopment Agency of the City orSan Bernardino
a public body, corporate and politic
By:
Maggie Pacheco, Interim Executive Director
PARTICIPANT
Habitat for Humanity San Bernardino Area, Inc.
a California non-profit corporation
By:
Title:
By:
Title:
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EXHIBIT "A"
Legal Description
HOME Lot
The West 1/2 of Lot 9, Block 18, Tract No. 1733, Thompson Brothers Poultry Colony, as per
map recorded in Book 26 of Maps, pages 7 to 12, in the office of the County Recorder of said
County.
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EXHIBIT "B"
HOME Project
New Home Description with Specifications
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San Bernardino Are..
1'. O. Box 1311
San Ikrnarullhl. C,\ 92401-0130
(9()9)J81 ~2J8
FAX (909)3R 1-:!70R
BASIC HOUSE DESCRIPTION WITH SPECIFICATIONS
October 1999
General Description
Houses shall typically have three bedrooms. Two-bedroom houses will also be built when
it appears highly probable that the house will remain useful to the family for a reasonable
number of years. Four-bedroom houses will be built only under special circumstances
and require specific approval of the Board of Directors. An attached carport shall be
built on each house. The addition of a garage must be approved by the Board of
Directors.
The size of the house shall not exceed the following limits unless approved by the Board
of Directors:
Two-bedrooms, 1 bath, 900 square feet
Three-bedrooms, 1 bath, 1050 square feet
Four-bedrooms, 2 baths, 1200 square feet
Designs will be utilized that are attractive and appropriate for the neighborhood.
Type of Construction
The following is a list of the types of construction and components which will be used:
Monolithic concrete slab on grade
Wood and/or steel frame
Wood, vinyl or aluminum siding
Shingles used on the roof shall be fiberglass reinforced. If donated or discounted
materials are available, the ConstructioDCommittee shall consider alternatives.
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The walls shall be insulated to a maximum of an R-13 value using batt insulation.
Ceilings shall be inSulated to a minimum of an R-30 value using batt insulation or blown-
in insulation.
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Size. pla=ment and type of windows will be considered to minimize heat gain and
maximize ventilation. '
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Doors
Exterior doors shall be steel clad or solid core wood. A single cylinder dead bolt and
entry lock shall be provided on the front and rear doors.
Interior doors shall be pre-hung, hollow core doors. Standard bedroom and bathroom
lock hardware shall be provided. The hall bathroom and at least one bedroom must use
doors of 2' -8" width or greater for increased handicapped accessibility.
Jleating and VentiJation
The homes shall be provided with a ducted heating system. In addition, Habitat for
Humanity will consider the following energy-efficient features when possible:
· Orientation and window placement of house will be considered to prevent heat gain in
summer and to provide natural ventilation.
'. Ceiling fans (option)
A whole house fan and/or evaporative cooler will be installed to cool the house.
Water Qeating
A forty gallon natural gas water heater shall be provided with each house.
o Kikmm
A 30-inch natural gas range and hood will be installed. A 220-volt range outlet will not
be provided. Appliance color will be determined by available supplies and cost.
All kitchen lighting will be fluorescent.
The base cabinets and wall cabinets shall be installed in the kitchen area. Cabinet layout
will vary with home design, but should include approximately 10-15 linear feet of plastic
laminate counters and white European-style plastic laminate cabinets. The kitchen sink
shall be a double stainless steel or porcelain on cast iron. A standard duty garbage
disposer will be installed. '
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I:ull baths shall include an ultra-low flush commode and a fiberglass tub/shower unit, a 30
t6 36" wide vanity cabinet, two towel rods, tissue holder, cultured marble counter with
integral sink, wall mirror and medicine cabinet. All fixtures shall be ch'rome finish. A
single fluorescent light fixture shall be provided in each bathroom.
Appropriate backing shall be included in the walls to allow future installation of grab bars.
A diagram of the location will be made available for future use by. the family'~ Grab bars
will be installed at no additional cost for homeowners with handicapped or elderly family
members.
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\Vnsher/ Dryer Space
An area shall be provided for the installation of a clothes washer and dryer in the garaoe
or utility room. Water supply and drain plumbing shall be provided for the washer. ~
Natural gas and external vent connections shall be provided for a dryer.
A shelf or cabinet shall be provided for washer/ dryer supplies.
Interior Wal~
\Vall surfaces inside the house shaH be finished drywall painted with flat latex paint in
every room except for the kitchen and bathroom. Semi-gloss latex paint will be used in
the kitchen and bathroom and on the doors and molding. Ceiling finish shall be at the
discretion of the Construction Committee. Color will be based on available supplies.
Exterior 'Vall~
The waH covering on the exterior shall be wood siding or the equivalent. Soffits, fascia
boards and trim shall be wood. Paint color will be based on available paint supplies.
Window Cm'erings
Mini blinds will be installed in the bedrooms and on the front facing windows. These will
be a standard white color.
Eooring
Heavy duty vinyl composition flooring tile or standard grade vinyl floors (tiles or sheets)
will be installed in the kitchen, ,dining area, hall, entry area and bathroom. Low cost,
neutral color carpet and padding will be installed in remaining areas. Good quality used
carpeting can be used at the discretion of the Construction Committee. '"
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A one or two-car carport will be provided with each home dependent on lot dimensions
and home design.
}:ntrances
-
Designs that incorporate a modest., covered porch are encouraged. This is to promote
neighborhood interaction and keep with the nature of the older neighborhoods that
HFHSBA typically builds in. All porch railings and posts shall be painted wood.
At the rear door of the house, a concrete stoop of approximately twenty square feet shall
be provided. '" '" ;, '"
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Fences
Fences are not included as part of the basic house design except when needed to separate
the house from a hazard such as a drainage ditch. railroad track. etc. Existinl! fences mav
be repaired and adapted as necessary. - .
Electrical
Electrical service will be provided to the home as required by local code. A ceiling fan
with a light shall be installed in the dining room.
Telephone jacks will be placed in the kitchen, living room and the master bedroom. A
coaxial television connection shall be provided in the living room. A standard doorbell
chime shall be provided. Hard wired smoke detectors will be provided as required by
local code.
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Bedroom clothes closets shall be six feet wide in the master bedroom and four feet wide
in the other bedrooms. Doors will be sliding, painted wood. A linen closet with shelves
and a hall coat closet with bar and shelf shall be provided.
Water Supp(x
In addition to the normal plumbing inside the house, a hose bib shall be provided at two
places on the home exterior. One of those hose bibs will be by the concrete driveway.
J.Jandscaping
Shrubs, plants and trees shall be provided at the front of the house. The front lawn will
be seeded with a drought tolerant variety of grass. An irrigation system will be provided
for the front y::ard. Xeriscape may be used in place of grass and traditional landscape at
the discretion of the Construction Committee.
Care shall be taken to preserve existing trees and shrubs on lots whenever practical.
EmSm:inklm
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If required by local code, a fire sprinkler system will be instaIled.
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Certain features and, amenities shall be excluded from HFHSBA homes. These exclusions
do not detract from the basic livability of the houses. They are made in order to share
the limited monetary resources with the next Habitat family (i.e., to provide as much
basic housing as possible.) Some of these features and amenities are available'as options
as a part of the $500 allowance granted families.
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Excluded features include:
freezer
washer
picture windows
window shutters
air conditioning
dryer
paneling
rain gutters
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HFHSBA has a commitment to build houses that are a joy to the family and an assets to
the total neighborhood. To accomplish this, we have set aside a part of the total cost of
the house for the family to decide how THEY would like to personalize their home or
meet a specific need. The current family budget is $500.
Upon approval of the Board of Directors, the options budget may be increased to $1000
as needed for a family with special needs.
.Exception to Criteria
Criteria set down in this document are intended to define the basic HFHSBA house.
Exceptions will be allowed for the following reasons:
1. Materials or equipment of equal or higher quality are donated and have no
financial impact on HFHSBA and prospective owner.
2. Safety or municipal codes require changes.
3. Availability of utilities or other site conditions require minor changes.
4. The selected family has special needs related to health or well being as
recommended by the Family Partnership Committee Chairperson.
5. In the case of an accelerated construction, such as a Blitz Build, HfHSBA
reserves the right to make changes to the criteria in order to implement
scheduling requirements.
6. Other reasons as approved by the Board of Directors.
,
~cation ~o Criteria
The criteria shall be reviewed by the Constnlction Committee at periodic intervals.
Changes shall be recommended to the Board of Directors.
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EXHIBIT "e"
Notice of HOME Project Grant Agreement
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RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
Redevelopment Agency
of the City of San Bernardino
201 North "E" Street, Suite 301
San Bernardino, California 92401
Attn.: Interim Executive Director
(Space Above Line For Use By Recorder)
Recording Fee Exempt Pursuant to Government Code Section 6103
NOTICE OF HOME PROJECT GRANT AGREEMENT
(Redevelopment Agency of the City of San Bernardino)
TO ALL INTERESTED PERSONS, PLEASE TAKE NOTICE:
Habitat for Humanity, San Bernardino Area, Inc. a California non-profit corporation (the
"Participant") and the Redevelopment Agency of the City of San Bernardino, a public body corporate and
politic (the "Agency") have entered into an agreement entitled "HOME Program Development
Agreement" dated as of January 23, 2006 (the "HOME Agreement").
PLEASE TAKE FURTHER NOTICE that the HOME Agreement affects the use, improvement,
and occupancy of property, which is described in the legal description attached hereto as Exhibit "A".
Interested persons may inspect a copy of the HOME Agreement, which is a public record of the
Agency, during the regular business hours of the Agency at the address indicated in the recording
instructions of this instrument, which appear above.
Notice given this
day of
,2006.
PARTICIPANT
Habitat for Humanity, San Bernardino Area, Inc.
a California non-profit corporation
By:
Title:
AGENCY
Redevelopment Agency
of the City of San Bernardino
By:
Maggie Pacheco, Interim Executive Director
[NOTARY JURATS ATTACHED]
P:lAaenclu\Aa<nda AtlaChmonulE.MJil,IJOO6.o 1-2J.u6 Hob.... Not... .rHollle Project (ElllIibil C).doc
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EXHIBIT "D"
HOME Program Regulatory Agreement
and
Property Use Covenant
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GENERAL FORM OF HOMEBUYER ASSISTANCE PROGRAM (HAP)
AFFORDABLE HOUSING COVENANT
(Redevelopment Agency of the City of San Bernardino)
THIS DOCUMENT IS PRESENTED IN GENERAL FORM. The final form of this
Affordable Housing Covenant shall be completed and executed by the "Qualified
Homebuyer" and the Agency at the time of close of the "New Home Escrow," as each of
these items are defined in this Affordable Housina Covenant.
4810-9032-2176.1
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RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
Redevelopment Agency
of the City of San Bernardino
201 North "E" Street, Suite 301
San Bernardino, CA 92401
Attn.: Interim Executive Director
(Space Above line Reserved For Use By Recorder)
Recording Fee Exempt PursuanUo Government Code Section 6103
HABITAT FOR HUMANITY, SAN BERNARDINO AREA, INC.
HOME PROGRAM REGULATORY AGREEMENT
AND
PROPERTY USE COVENANT
THIS HOME PROGRAM REGULATORY AGREEMENT AND PROPERTY USE
COVENANT, (the "Covenant") is made and entered into as of .
by and between, the REDEVELOPMENT AGENCY OF THE CITY OF SAN
BERNARDINO (the "Agency"), a public body, corporate and politic, and HABITAT FOR
HUMANITY, SAN BERNARDINO AREA, INC., a California Non-Profit Corporation (the
"Participant"), and (the "Qualified
Homebuyer"), and this Covenant relates to the following facts set forth in Recitals:
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- RECITALS -
A.
The Qualified Homebuyer proposes to acquire a single family residence (the
-New Home-), located within the City of San Bernardino (the -City"), from
Habitat for Humanity. San Bemardino Area to be owned and occupied by the
Qualified Homebuyer as their principal residence. The legal description of the
New Home is attached hereto as Exhibit "A" and incorporated herein by this
reference.
B. The Agency has entered into that certain Grant Agreement (HOME Program)
whereby Habitat for Humanity, San Bemardino Area, Inc., has agreed to provide
the Qualified Homebuyer with certain purchase money mortgage financing for the
acquisition of the New Home by the Qualified Homebuyer subject to certain
conditions, including the terms and conditions of this HOME Covenant; and
C. The terms of the Agency Grant Agreement mandate that the acquisition, use and
occupancy of the New Home shall be restricted in certain respects for the term
as provided herein (the "Qualified Residence Period") in order to ensure that the
New Home will be used and occupied in accordance with the Agency Grant
Agreement with Habitat for Humanity, San Bemardino Area, Inc., and the
affordable single family resi~ential dwelling unit development goals and
objectives of the program set forth at 24 Code of Federal Regulations Part 92 m
sea.; (the "Home Program") as administered by the Agency.
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND
UNDERTAKINGS SET FORTH HEREIN, AND FQR OTHER GOOD AND VALUABLE
CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY
ACKNOWLEDGED, THE QUALIFIED HOMEBUYER, AND HABITAT FOR
HUMANITY, SAN BERNARDINO AREA, INC., AND THE AGENCY DO HEREBY
COVENANT AND AGREE FOR THEMSELVES, THEIR SUCCESSORS AND
ASSIGNS AS FOLLOWS:
Section 1. Definitions of Certain Tenns.
As used in this HOME Covenant, the following words and terms shall have the meaning
as provided in the Recitals or in this Section 1 unless the specific context of usage of a
particular word or term may otherwise require:
Adjusted Family Income. The words "Adjusted Family Income" mean
the anticipated total annual income (adjusted for family size) of each
individual or family residing or treated as residing in the New Home as
calculated in accordance with Treasury Regulation 1.167(k) - 3(b)(3)
under the Code, as adjusted, based upon family size in accordance with
the household income adjustment factors adjusted and amended from
time to time, pursuant to Section 8 of the United States Housing Act of
1937, as amended.
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Code. The word "Code" means the Internal Revenue Code of 1986, as
amended, and any regulation, rulings or proceclures with resped thereto.
Delivery Date. The words "Delivery Date" mean the date of delivery of
title and possession of the New Home to the Qualified Homebuyer at the
close of the New Home Escrow.
Low Income Family. The words "Low-Income-Family" means persons
and families whose annual income do not exceed 80 percent of the
median income for the area, as determined by the United States Secretary
for the Department of Housing and Urban Development with adjustments
for smaller and larger families, as set forth at 24 Code of Federal
Regulations Part 92.2.
New Home. The words "New Home" mean and refer to the affordable
single-family residential dwelling unit (including the land and landscape
improvements thereon) acquired by the Qualified Homebuyer at the close
of the New Home Escrow. A legal description of the New Home is
attached to this HOME Covenant as Exhibit "A".
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New Home Escrow. The words "New Home Escrow" mean and refer to
the real estate conveyance transaction or escrow by and between the
Qualified Homebuyer and the Habitat for Humanity, San Bernardino Area,
Inc., (or later, by and between the Qualified Homebuyer and the
Successor-In-Interest). The transfer of the New Home from the seller to
the Qualified Homebuyer (or later, by and between the Qualified
Homebuyer and the Successor-In-Interest) shall be accomplished upon
the close of the New Home Escrow.
Notice of Agency Concurrence. The words "Notice of Agency
Concurrence" mean and refer to the acknowledgment in recordable form
in which the Agency confirms that the proposed Successor-In-Interest of
the Qualified Homebuyer satisfies all of the requirements of this HOME
Covenant and the HOME Program for occupancy of the New Home by the
Successor-In-Interest at any time during the Qualified Residence Period.
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Qualified Homebuyer. The words "Qualified Homebuyer" mean the
purchaser of the New Home (e.g.: all persons identified as having property
ownership interest vested in the New Home at the close of the New Home
Escrow). At the close of the New Home Escrow, the Qualified Homebuyer
shall: (i) have an annual Adjusted Family Income which does not exceed
the household income qualification limits of a Low Income Family and (ii)
shall be a first-time homebuyer, as provided at 24 CFR Part 92.254 (a)(3).
Qualified Residence Period. The words "Qualified Residence Period"
mean the period of time beginning on the Delivery Date and ending on the
date which is forty-five (45) years after the Delivery Date.
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HOME Covenant. The words "HOME Covenant" means this
Redevelopment Agency of the City of San Bemardino HOME Program
Regulatory Agreement Property Use and Covenant by and between the
Qualified Homebuyer, Habitat for Humanity, San Bemardino Area, Inc..
and the Agency pertaining to the New Home.
Successor-In-lnterest. The words "Successor-In-Interest" means and
refers to the Low Income Family which may acquire the New Home from
the Qualified Homebuyer at any time during the Qualified Residence
Period by purchase, assignment transfer or otherwise. The Successor-In-
Interest shall be a Low-Income Family and shall otherwise satisfy the
requirements of 24 Code of Federal Regulations Part 92.254(a). Upon
acquisition of the New Home, the Successor-In-Interest shaJl be bound by
each of the covenants, conditions and restrictions of this HOME Covenant.
The titles and headings of the sections of this HOME COvenant have been inserted for
convenience of reference only and are not to be considered a part hereof and shall not
in any way modify or restrict the meaning any of the terms or provisions hereof.
Section 2. Acknowledaments an~ ReDr&sentatlons of the Qualified Homebuyer.
The Qualified Homebuyer hereby acknowledges and represents that, as of the Delivery
Date:
(a) the total household income for the Qualified Homebuyer does not exceed the
maximum amount permitted as Adjusted Family Income for a Low-Income Family
adjusted for family size;
o (b) the Qualified Homebuyer intends to promptly occupy the New Home after the
Delivery Date as the principal place of residence for a term of at least forty-five
(45) years following the Delivery Date and the Qualified Homebuyer has not,
entered into any arrangement and has no present intention to rent, sell, transfer
or assign the New Home to any third party during the Qualified Residence Period
so as to frustrate the purpose of this HOME Covenant;
(c) the Qualified Homebuyer has no present intention to lease or rent any room or
sublet or rent a portion of the New Home to any relative of the Qualified
Homebuyer or to any third person at any time during the Qualified Residence
Period;
(d) the Qualified Homebuyer agrees to provide the Agency with the following items
of information for inspection by the Participant and/or the Agency promptly upon
written request of the Participant or Agency:
(i)
State and federal income tax returns filed by all persons who reside in the
New Home for the calendar year preceding the close of the New Home
Escrow for inspection of such State and federal income tax returns;
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(ii) current wage, income and salary statements for all person residing in the
New Home at the close of the New Home Escrow;
(e) the Qualified Homebuyer is aware and has been informed prior to the Delivery
Date that this HOME Covenant imposes certain restrictions on the use and
occupancy of the New Home during the term of this HOME Covenant and that
this HOME Covenant imposes certain restrictions on the resale of the New Home
during the Qualified Residence Period. The Qualified Homebuyer acknowledges
and understands that the resale restrictions shall be applicable to the New Home
and to any resale of the New Home from the Delivery Date to the end of the
Qualified Residence Period which is
Dated:
Initials of Qualified Homebuyer
Section 3. Acknowledgment Qf Jiubord~rovislon. of Section 4 and
l&\lon7 of tal, HOME Covenant to the MortGaae Security Interest of the First
MortGaGe Lender.
Concurrently upon the execution and recordation of this HOME Covenant the Qualified
Homebuyer shall obtain certain purchase money mortgage financing for the acquisition
of the New Home from H~bi1at for Humanitv. San Bernardino Area. Inc.. (the "First
Mortgage Lendef). As of the Delivery Date, the Qualified Homebuyer has provided the
Agency with a true and correct copy of the loan agreement by and between the First
Mortgage Lender and the Qualified Homebuyer, if applicable.
As a condition to providing its mortgage loan to the Qualified Homebuyer, the First
Mortgage Lender requires the Agency to agree that the provisions of Section 4 and
Section 7 of this HOME Covenant shall be junior and subordinate to the security interest
of the First Mortgage Lender in the New Home of even date herewith.
The Agency hereby acknowledges and agrees that the provisions of Section 4 and
Section 7 of this HOME Covenant are subordinate and junior to the security interest of
the First Mortgage Lender in the New Home of even date herewith. No breach or default
by the Qualified Homebuyer of any provision of Section 4 and Section 7 of this HOME
Covenant, nor the exercise by the Agency of any remedy it may have against the
Qualified Homebuyer in the event of such a breach or default shall affect or render
invalid the lien of the First Mortgage Lender in the New Home. Thus, the First Mortgage
Lender and any good faith purchaser for value from the First Mortgage Lender, its
successors and assigns, including without limitation the United States Secretary of
Housing and Urban Development, if such mortgage has been assigned to the Secretary
of Housing and Urban Development, receiving title to the New Home through a trustee's
sale, judicial foreclosure sale, deed in lieu of foreclosure and any conveyance or
transfer thereafter, shall receive title to the New Home free and clear of the provisions of
Section 4 and Section 7 ')f this HOME Covenant.
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Section 4. Covenant of the Qual1fl.l5l..tl2ml.uver to Mll.alllD..Mford,,,Wtv of 'h,
New HOqJe Durlna the ~' R~nce,P.rts!sl.IJ!sLcov.nanlBlllllDaJo s,'e
or T...nafJt..2t,_the ~w tfome Durlna the Qualified ResIdence Period to a
Succesaor-ln-lnterest.
(a) The Qualified Homebuyer for itself, its heirs, successors and assigns, hereby
covenants and agrees that during the term of the Qualified Residence Period the
New Home shall be used and, occupied by the Qualified Hornebuyer as its
principal residence, and that the New Home shall be reserved for sale, use and
occupancy by the Qualified Homebuyer and/or for another Lower-Income
Household as a Successor-In-Interest at an Affordable Housing Cost. The
Qualified Homebuyer, for itself, its heirs, successors and assigns, further
covenants and agrees that, during the Qualified Residence Period, the Agency
shall have the right and duty as provided in this Section 4 to verify that each
proposed Successor-In-Interest of the Qualified Hornebuyer in the New Home
satisfies the income requirements (based upon the Adjusted Family Income of a
Low-Income Family and that the completion of any resale or transfer of the New
Home to a Successor-In-Interest shall be subject to the recordation of the MNotice
of Agency Concurrence" as provided in Section 4(d).
(b) The Qualified Homebuyer, for itself, its successors and assigns, hereby
covenants and agrees that during the term of the Qualified Residence Period the
Qualified Homebuyer shall not sell, transfer or otherwise dispose of the New
Horne (or any interest therein) at a sale or transfer price which exceeds 95
percent of the median purchase price for the area as provided in 24 CFR Part
92.25(a)(2)(iii), to a Successor-In-Interest without first giving written notice to the
Agency and without first obtaining the written concurrence of the Agency as
provided herein. At least sixty (60) days prior to the date on which the Qualified
Homebuyer proposes to transfer title in the New Home to a Successor-In-
Interest, the Qualified Homebuyer shall send a written notice to the Agency as
provided in Section 17 of the intention of the Qualified Home buyer to sell the
New Home to a Successor-In-Interest which includes the following true and
correct information:
(i) name of the proposed Successor-In-Interest (including the identity of all
persons in the household of the Successor-in-Interest, proposing to reside
in the New Home) together with a completed HOME Program application
executed by the proposed Successor-In-Interest; if the proposed
successor-in-interest intends to use the HOME Program;
(ii) copies of State and federal income tax retums for the Successor-In-
Interest for the calendar year preceding the year in which the notice of
intention to sell the New Home is given to the Agency;
(iii) resale price of the New Home payable by the Successor-In-Interest,
including the terms of all purchase money mortgage financing to be
assumed, provided or obtained by the Successor-In-Interest, escrow costs
6
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and charges. realtor broker fees and all other resale costs or charges
payable by either the Qualified Homebuyer or the Successor-In-Interest;
name address. and telephone number of the escrow company which shall
coordinate the transfer of the New Home from the Qualified Homebuyer to
the Successor-In-Interest;
(v)
appropriate mortgage credit reference for the Successor-In-Interest with a
written authorization signed by the Successor-In-Interest authorizing the
Agency to contact each such reference; and
(vi)
such other relevant information as the Agency may reasonably request. as
provided in Section 4(c).
(c) Within thirty (30) days following receipt of the notice of intention described in
Section 4(b). the Agency shall provide the Qualified Homebuyer with either a
preliminary confirmation of approval or a preliminary rejection in writing of the
income and household occupancy qualifications of the Successor-In-Interest.
The Agency shall not unreasonably withhold approval of any proposed sale of
the New Home to a Successor-In-Interest who satisfies the Adjusted Family
Income requirements of a Low Income Family for occupancy of the New Home
and for whom the other information as described in Section 4(b) has been
provided to the Agency. In the event that the Agency may request additional
information relating to the confirmation of the matters described in Section 4(b).
the Qualified Homebuyer shall provide such information to the Agency as
promptly as feasible.
(d) Upon its final confirmation of approval of the Adjusted Family Income eligibility of
the Successor-In-Interest to acquire the New Home. the Agency shall deliver a
written acknowledgment and approval of the resale of the New Home to the
Successor-In-Interest in recordable form to the escrow holder referenced in
Section 4(b )(iv) above. and thereafter the Successor-In-Interest may acquire the
New Home subject to the satisfaction of the following conditions:
(i) the recordation of the Notice of Agency Concurrence executed by the
Successor-In-Interest and the Agency at the close of the resale escrow;
(ii) the escrow holder shall have provided the Agency with a copy of the
customary 'form of the final escrow closing statement of the Qualified
Homebuyer and the final escrow closing statement for the Successor-In-
Interest; and
(iii) the other conditions of the resale escrow as established by the Qualified
Homebuyer and Successor-In-Interest shall have been satisfied.
7
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(e) The Qualified Homebuyer for itself, its successors and assigns hereby covenants
and agrees that during the Qualified Residence Period the New Home shall not
be leased, subleased, or rented to any third person, except for a temporary
period (not to exceed 12 months) in the event of an emergency or other
unforeseen circumstance as may be expressly approved in writing by the Agency
subject to compliance during the temporary rental period with the reasonable
temporary rental occupancy conditions required by the Agency. The Qualified
Homebuyer shall submit a written request to the Agency prior to the
commencement of the temporary occupancy, as practicable, but in any event
within not more than (60) days following the commencement of a temporary
rental occupancy of the New Home by a third party, which notice shall set forth
the grounds on which the Qualified Homebuyer believes an emergency or other
unforeseen circumstance has occurred and that a temporary rental occupancy is
necessary.
Section 5. Mllntenanee Condl'lon of the New Home.
The Qualified Homebuyer, for itself, its successors and assigns, hereby covenants and
agrees that:
(a) The exterior areas of the New Home which are subjed to public view (e.g.: all
improvements, paving, walkways, landscaping, and omamentation) shall be
maintained in good repair and a neat, clean and orderly condition, ordinary wear
and tear excepted. In the event that at any time during the term of the Qualified
Residence Period, there is an occurrence of an adverse condition on any area of
the New Home which is subjed to public, view in contravention of the general
maintenance standard described above, (a "Maintenance Deficiency") then the
Agency shall notify the Qualified Homebuyer in writing of the Maintenance
Deficiency and give the Qualified Homebuyer thirty (30) days from the date of
such notice to cure the Maintenance Deficiency as identified in the notice. The
words "Maintenance Deficiency. include without limitation the following
inadequate or non-confirming property maintenance conditions and/or breaches
of single family dwelling residential property use restridions:
failure to properly maintain the windows, strudural elements, and painted
exterior surface areas of the dwelling unit in a clean and presentable
manner;
failure to keep the front and side yard areas of the property free of
accumulated debris, appliances, inoperable motor vehicles or motor
vehicle parts, or free of storage of lumber, building materials or equipment
not regularly in use on the property;
failure to regularly mow lawn areas or permit grasses planted in lawn
areas to exceed nine inches (9") in height, or failure to otherwise maintain
the landscaping in a reasonable condition free of wed and debris;
8
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parking of any commercial motor vehicle in excess of 7,000 pounds gross
weight anywhere on the property, or the parking of motor vehicles, boats,
camper shells, trailers, recreational vehicles and the like in any side yard
or on any other parts of the property which are not covered by a paved
and impermeable surface:
the use of the garage area of the dwelling unit for purposes other than the
parking of motor vehicles and the storage of personal possessions and
mechanical equipment of persons residing in the New Home.
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In the event the Qualified Homebuyer fails to cure or commence to cure the
Maintenance Deficiency within the time allowed, the Agency may thereafter conduct,a
public hearing following transmittal of written notice thereof to the Qualified Homebuyer
ten (10) days prior to the scheduled date of such public hearing in order to verify
whether a Maintenance Deficiency exists and whether the Qualified Homebuyer has
failed to comply with the provision of this Section 5(a). If, upon the conclusion of a
public hearing, the Agency makes a finding that a Maintenance Deficiency exists and
that there appears to be non-compliance with the general maintenance standard, as
described above, thereafter the Agency shall have the right to enter the New Home
(exterior areas only) and perform all acts necessary to cure the Maintenance Deficiency,
or to take other action at law or equity the Agency may then have to accomplish the
abatement of the Maintenance Deficiency. Any sum expended by the Agency for the
abatement of a Maintenance Deficiency as authorized by this Section 5(a) shall become
a lien on the New Home. If the amount of the lien is not paid within thirty (30) days after
written demand for payment by the Agency to the Qualified Homebuyer, the Agency
shall have the right to enforce the lien in the manner as provided in Section 5(c).
(b) Graffiti which is visible from any public right-of-way which is adjacent or
contiguous to the New Home shall be removed by the Qualified Homebuyer from
any exterior surface of a structure or improvement on the New Home by either
painting over the evidence of such vandalism with a paint which has been color-
matched to the surface on which the paint is applied, or graffiti may be removed
with solvents, detergents or water as appropriate. In the event that graffiti is
placed on the New Home (exterior areas only) and such graffiti is visible from an
adjacent or contiguous public right-of-way and thereafter such graffiti is not
removed within 72 hours following the time of its application; then in such event
and without notice to the Qualified Homebuyer, the Agency shall have the right to
enter the New Home and remove the graffiti. Notwithstanding any provision of
Section 5(a) to the contrary, any sum expended by the Agency for the removal of
graffiti from the New Home as authorized by this Section 5(b) shall become a lien
on the New Home. If the amount of the lien is not paid within thirty (30) days
after written demand for payment by the Agency to the Qualified Homebuyer, the
Agency shall have the right to enforce its lien in the manner as provided in
Section 5(c).
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(c) The parties hereto further mutually understand and agree that the rights
conferred upon the Agency under this Section 4 expressly include the power to
establish and enforce a lien or other encumbrance against the New Home in the
manner provided under Civil Code Sections 2924, 2924b and 2924c in the
amount as reasonably necessary to restore the New Home to the maintenance
standard required under Section 5(a) or Section 5(b), including attorneys fees
and costs of the Agency associated with the abatement of the Maintenance
Deficiency or removal of graffiti and the collection of the costs of the Agency in
connection with such action. In any legal proceeding for enforcing such a lien
against the New Home, the prevailing party shall be entitled to recover its
attorneys' fees and costs of suit. The provisions of this Section 5, shall be a
covenant running with the land for the Qualified Residence Period and shall be
enforceable by the Agency in its discretion, cumulative with any other rights or
powers granted by the Agency under applicable law. Nothing in the foregoing
provisions of this Section 5 shall be deemed to preclude the Qualified
Homebuyer from making any alterations, additions, or other changes to any
structure or improvement or landscaping on the New Home, provided that such
changes comply with the zoning and development regulations of the City and
other applicable law. '
Section 6. [RESERVED/NO TEXT]
Section 7. 'Forecl9sure of Pur~hase ,..onev Mortaaae Loan of the First Mortaaae
Lender and Agencv ~Iaht of Flmt Refusal.
(a) During the Qualified Residence Period the Agency shall have the right (but not
the obligation) to bid on the purchase of mortgage loan lien of the First Mortgage
Lender secured by the New Home at the time of any trustee foreclosure sale or
any judicial foreclosure sale.
(b) During the Qualified Residence Period the Agency shall have the right of first,
refusal to purchase the New Home from the Qualified Homebuyer on the same
terms which the Qualified Homebuyer may propose to offer the New Home for
resale to a Successor-In-Interest. The Agency must exercise such a right of first
refusal within thirty (30) days following written notification of the intention of the
Qualified Homebuyer to resell the New Home, and if the Agency accepts the
offer in writing within such time period the Agency shall be bound to complete the
purchase of the New Home strictly in accordance with the offer. Thereafter the
Agency shall pay the "resale priceD to the Qualified Homebuyer and close an
escrow for the transfer of the New Home to the Agency within sixty (60) days
following written notification of the intention of the Qualified Homebuyer to resell
the New House.
10
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Section 8. Covenants to Run Wljh the Land.
The Qualified Homebuyer and the Agency hereby declare their specific intent that the
covenants, reservations and restrictions set forth herein are part of a plan for the
promotion and preservation of affordable single family housing within the territorial
jurisdiction of the Agency and that each shall be deemed covenants running with the
land and shall pass to and be binding upon the New Home and each Successor-In-
Interest of the Qualified Homebuyer in the New Home for the term provided in Section
10. The Qualified Homebuyer hereby expressly assumes the duty and obligation to
perform each of the covenants and to honor each of the reservations and restrictions
set forth in this HOME Covenant. Each and every contract, deed or other instrument
hereafter executed covering or conveying the New Home or any interest therein shall
conclusively be held to have been executed, delivered and accepted subject to such
covenants, reservations, and restrictions, regardless of whether such covenants,
reservations and restrictions are set forth in such contract, deed or other instrument.
Section 9. Burden and Benefll.
The Participant, the Agency and the Qualified Homebuyer hereby declare their
understanding and intent that the burden of the covenants set forth herein touch and
concern the land in that the Qualified Homebuyer's legal interest in the New Home is
affected by the affordable single family dwelling use and occupancy covenants
hereunder. The Agency and the Qualified Homebuyer hereby further declare their
understanding and intent that the benefit of such covenants touch and concern the land
by enhancing and increasing the enjoyment and use of the New Home by the intended
beneficiaries of such covenants, reservations and restrictions, and by furthering the
affordable single family housing development goals and objectives of the Agency and in
order to make the New Home available for acquisition and occupancy by the Qualified
Homebuyer.
Section 10. Term.
(a) The provisions of Section 4 and Section 7 of this HOME Covenant shall apply to
the New Home and the Qualified Homebuyer and to each Successor-In-Interest
for forty-five (45) years after the Delivery Date.
(b) Except as set forth in Section 10(a), all of the other provisions of this HOME
Covenant shall apply to the New Home for a term of forty-five (45) years after the
Delivery Date.
(c) Any provision or section of this HOME Covenant may be terminated after the
Delivery Date upon written agreement by the Agency and the Qualified
Homebuyer (or the Successor-In-Interest in the New Home), if there shall have
been provided to the Agency an opinion of special legal counsel that such a
termination under the terms and conditions approved by the Agency in its
reasonable disc~9tion will not adversely affect the affordable single family
housing and development goals and obligations of the Agency under the HOME
Program.
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Section 11. Breach and Default and Enforcement.
(a) Failure or delay by the Qualified Homebuyer to honor or perform any material
term or provision of this HOME Covenant shall constitute a breach under this
Agreement; provided however, that if the Qualified Homebuyer commences to
cure, correct or remedy the alleged breach within thirty (30) calendar days after
the date of written notice specifying such breach and shall diligently complete
such cure, correction or remedy, the Qualified Homebuyer shall not be deemed
to be in default hereunder.
The Agency shall give the Qualified Homebuyer written notice of breach
specifying the alleged breach, which if uncured by the Qualified Homebuyer
within thirty (30) calendar days, shall be deemed to be an event of default. Delay
in giving such notice shall not constitute a waiver of any breach or event of
default nor shall it change the time of breach or event of default; provided,
however, the Agency shall not exercise any remedy for an event of default
hereunder without first delivering the written notice of breach as specified in this
Section 11.
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Except with respect to rights and .remedies expressly declared to be exclusive in
this HOME Covenant, the rights and remedies of the Agency are cumulative with
any other right or power of the Agency or the City or other applicable law, and the
exercise of one or more of such rights or remedies shall not- preclude the
exercise by the Agency at the same or different times, of any other right or
remedy for the same breach or event of default.
In the event that a breach of the Qualified Homebuyer may remain incurred for
more than thirty (30) calendar days following written notice, as provided above,
an event of default shall be deemed to have occurred. In addition to the remedial
provisions of Section 5 as related to a Maintenance Deficiency at the New Home,
upon the occurrence of any event of default the Agency shall be entitled to seek
any appropriate remedy or damages by initiating legal proceedings as follows:
(i) by mandamus or other suit, action or proceeding at law or in equity, to
require the Qualified Homebuyer to perform its obligations and covenants
hereunder, . or enjoin any acts or things which may be unlawful or in
violation of the rights of the Agency; or
(ii) by other action at law or in equity as necessary or convenient to enforce
the obligations, covenants and agreements of the Qualified Homebuyerto
the Agency.
(b) Except as set forth in the next sentence, no third party shall have any right or .
power to enforce any provision of this HOME Covenant on behalf of the Agency
or to compel the Agency to enforce any provision of this HOME Covenant against
the Qualified Homebuyer or the New Home. The Agency may assign the right
. . and power to enforce the provisions of this HOME Covenant against the
12
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Qualified Homebuyer or the New Home as the successor administration agency
of the HOME Program to the City of San Bernardino.
Section 12. Governina Law.
This HOME Covenant shall be governed by the laws of the State of California.
Section 13. Amendment.
This HOME Covenant may be amended after the Delivery Date only by a written
instrument executed by the Qualified Homebuyer (or the Successor-In-Interest, as
applicable) and by the Agency.
Section 14. Attorney's Fees.
In the event that the Agency brings an action to enforce any condition or covenant,
representation or warranty in this HOME Covenant or otherwise arising out of this
HOME Covenant, the prevailing party in such action shall be entitled to recover from the
other party reasonable attorneys' fees to be fixed by the court in which a judgment is
entered, as well as the costs of such suit. For the purposes of this Section 14, the
words "reasonable attorneys' fees. in the case of the Agency include the salaries, costs
and overhead of the lawyers employed in the Office of the City Attorney of the City of
San Bernardino.
Section 15. Severability.
If any provision of this HOME Covenant shall be declared invalid, inoperative or
unenforceable by a final judgment or decree of a court of competent jurisdiction such
invalidity or unenforceability of such provision shall not affect the remaining parts of this
HOME Covenant which are hereby declared by the parties to be severable from any
other part which is found by a court to be invalid or unenforceable.
Section 16. Time Is of the Essence.
For each provision of this HOME Covenant which states a specific amount of time within
which the requirements thereof are to be satisfied, time shall be deemed to be of the
essence.
Section 17. Notice.
Any notice required to be given under this HOME Covenant shall be given by the
Agency or by the Qualified Homebuyer, by the Participant, as applicable, by personal
delivery or by First Class United States mail at the addresses specified below or at such
other address as may be specified in writing by the parties hereto:
13
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If to the
Qualified Homebuyer:
If to the
Participant:
If to the
Agency:
, '~'
'C' ,',C,"" ,"cH__ ..-'"'' ,'" .- .~'-'- " . '."",r -~r'"
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San Bernardino. Galifornia
Attn.:
Phone:
Haj;lital for Humanity. San Bernardino Area. Inc.
PO Box 1550
Redlands. CA 9~373
Attn.: Executive Director
~JoDment Aaencv of the City of San Bernardino
~01 N91'ttl-E- Street. i~ite 391
San Bernardino. California 92401
Attn.: InteRn) Executive Director
Phone: (90~) ~63-1044
Notice shall be deemed given five (5) calendar days after the date of mailing to the party,
or, if personally delivered, when received by the Interim Executive Director of the
Agency, the Qualified Homebuyer, or the Participant, as applicable.
11//
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14
.,
.
IN WITNESS WHEREOF, the Qualified Homebuyer and the Agency have caused
this HOME Covenant to be signed, acknowledged and attested on their behalf by duly
authorized representatives in counterpart original copies which shall upon execution by
all of the parties be deemed to be one original document. The recordation of this HOME
Covenant is authorized under 24 Code of Federal Regulations Part 92.
QUALIFIED HOMEBUYER
Date:
By:
By:
PARTICIPANT
Habitat for Humanity, San Bernardino Area, Inc.
a California Non-Profit Corporation
Date:
By:
Title:
AGENCY
Redevelopment Agency
of the City of San Bernardino
a public body, corporate and politic
Date:
By:
Maggie Pacheco, Interim Executive Director
APPROVED AS TO FORM:
, ,/ /', /1 '
I' I ~ i> i{'" --J C ~[.O(:)
Agency Co nsel
[ALL SIGNATURES MUST BE NOTARIZED]
15
EXHIBIT "A"
16
** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
M,ct;" D.. (D.., At'N" 1<):', rJ, Ikm # P{" )
Vote: Ayes Nays *7
Resolution #
eJ) t { JDQb ' J--
Absent
Abstain
Change to motion to amend original documents 0
Companion Resolutions
Null/Void After: days 1
Resolution # On Attachments: 0
Note on Resolution of attachment stored separately: 0
PUBLISH 0
POST 0
RECORD W/COUNTY 0
By:
Date Sent to Mayor: ( 1 Y L{ / [) 1 fey
Date of Mayor's Signature: J"- Y <;, e f;t
Date ofClerk/CDC Signature: --1/y5" I 0
Reso, Log Updated:d
Seal Impressed: 0/
Reso, # on Staff Report .0'
Date Memo/Letter Sent for Signature:
I" Reminder Letter Sent:
Date Returned:
20d Reminder Letter Sent:
Not Returned: 0
Request for Council Action & Staff Report Attached:
Updated Prior Resolutions (Other Than Below):
Updated CITY Personnel Folders (6413,6429,6433,10584,10585, 12634):
Updated CDC Personnel Folders (5557):
Updated Traffic Folders (3985, 8234, 655, 92-389):
Yes /'
Yes
Yes
NOr By_
No ,By
7-
No__ By_
No B./_
-
Yes
Yes
No By_
Copies Distributed to:
Animal Control 0
City Administrator 0
City Attorney 0
Code Compliance 0
Development Services 0
Others:
EDA / Information Services 0
Facilities 0 Parks & Recreation 0
Finance 0 Police Department 0
Fire Department 0 Public Services 0
Human Resources 0 Water Department 0
Notes:
i
/
V
Ready to File: _~
Date: \ / ~ V ) ~ h
Revised 12/18103
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
INTER-OFFICE MEMORANDUM
SUBJECT:
Eileen Gomez, Senior secretar~ ~ Clerk's Office
Wasana A. Chantha, Secretary ~
Executed Agreement
TO:
FROM:
DATE:
February 9, 2006
Enclosed is the fully executed Agreement pertaining to the following resolution that was
approved by the Community Development Commission on January 23, 2006:
CDC/2006-2
Resolution of the Community Development Commission of the City of San
Bernardino approving and authorizing the Interim Executive Director of the
Redevelopment Agency of the City of San Bernardino ("Agency") to execute
the 2006 Home Program Development Agreement ("2006 Home
Agreement") by and between the Agency and Habitat for Humanity, San
Bernardino Area, Inc., a California non-profit corporation
Should you have any questions, I can be reached at (909) 663-1044.
Thank you.
Enclosure
cc: Barbara Lindseth (with Original Executed Agreement)
Musibau Arogundade (with Copy of Executed Agreement)