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HomeMy WebLinkAboutR27-Economic Development Agency ' CITY OF SAN BERNARDINO ORIGINAL ECONOMIC DEVELOPMENT AGENCY FROM: Maggie Pacheco SUBJECT: Joint Public Hearing - 2006 HOME Executive Director Community Housing Development Organization (CHDO) Capacity Building Agreement with Arroyo Valley Community DATE: November 14,2006 Economic Development Corporation, a non- profit corporation --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Synopsis of Previous Commission/Council/Committee Action(s): On October 19,2006, Redevelopment Committee Members Estrada,Johnson and Baxter unanimously voted to recommend that the Community Development Commission consider this action for approval. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Recommended Motion(s): Open/Close Joint Public Hearing (Mayor and Common Council) Resolution of the Mayor and Common Council of the City of San Bernardino approving and amending the 2005- 2010 Consolidated Plan and the 2006-2007 Annual Action Plan to allocate$50,000 in HOME Capacity Building Funds to Arroyo Valley Community Economic Development Corporation,a non-profit corporation (Community Development Commission) Resolution of the Community Development Commission of the City of San Bernardino approving and authorizing the Executive Director of the Redevelopment Agency of the City of San Bernardino ("Agency") to execute the 2006 HOME CHDO Capacity Building Agreement between the Agency and Arroyo Valley Community Economic Development Corporation,a non-profit corporation ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Contact Person(s): Maggie Pacheco Phone: (909)663-1044 Project Area(s): IVDA Ward(s): 6`h Supporting Data Attached: H Staff Report M Resolution(s)0 Agreement(s)/Contract(s) ❑ Map(s)❑ Letters FUNDING REQUIREMENTS: Amount: $ 50,000 Source: Federal HOME Grant Funds Budget Authority: 2006-2007 EDA Budget SIGNATURE: ' r J Maggie acheco, Executive Director arbara Lindseth, Admin. Servi es Director ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Commission/Council Notes: -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- P:\Agendas\Comm Dev Commission\CDC 2006\I 1-20-06 Arroyo Capacity Building Agreement SR.doc COMMISSION MEETING AGENDA Meeting Date: 11/20/2006 Agenda Item Number: � � . Y ECONOMIC DEVELOPMENT AGENCY STAFF REPORT ------------------------------------------------------------------------------------------------------------------------ JOINT PUBLIC HEARING -2006 HOME COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO) CAPACITY BUILDING AGREEMENT WITH ARROYO VALLEY COMMUNITY ECONOMIC DEVELOPMENT CORPORATION, A NON-PROFIT CORPORATION BACKGROUND/CURRENT ISSUE: Under the U.S. Department of Housing and Urban Development ("HUD") HOME Investment Partnership Program, HUD allocates funds to eligible state and local governments to strengthen public- private partnerships to provide affordable housing throughout the nation. State and local governments may use HOME Funds to carry out multi-year housing strategies through acquisition of land or acquisition of existing housing units, rehabilitation of housing units and new construction of single and/or multi-family rental units. Specifically, the fundamental purpose of the HOME program is to expand the supply of decent, safe, sanitary, and affordable rental housing. Typically, state and local governments provide affordable housing by working in concert with eligible non-profit housing organizations or through experienced private housing developers. The City of San Bernardino (City) annually receives HOME Funds from HUD and in 2006, the City received One Million Five Hundred Sixty-Three Thousand Fifty-Nine Dollars ($1,563,059). Of this amount, not more than five percent (5%) (Seventy-Eight Thousand One Hundred Fifty-Three Dollars ($78,153)) may be set aside for Community Housing Development Organization ("CHDO") administration and capacity building. These funds are primarily used to build the capacity of non- profit organizations with the ultimate goal of producing and preserving affordable housing units that will be owned and operated, and/or sold by a CHDO for occupancy by low- and moderate-income households in the City earning not more than eighty percent (80%) of the San Bernardino County Area Median Income. Not less than fifteen percent (15%) of the annual grant is required to be set aside for approved CHDO housing activities Two Hundred Thirty-Four Thousand Four Hundred Fifty-Nine Dollars ($234,459) such as new housing development, acquisition, and/or rehabilitation of multi- family properties; and the remaining eighty percent (80%) (One Million Two Hundred Fifty Thousand Four Hundred Forty-Seven Dollars ($1,250,447)) is to be used for other housing programs such as the homebuyer program, acquisition, new housing development, rehabilitation projects and program administration. Arroyo Valley Community Economic Development Corporation ("Arroyo"), a non-profit corporation, is a 501(c)(3) corporation located in the City at 1264 South Waterman Avenue, Suite 27. Arroyo's goal is to provide outreach programs and services to enhance the quality of life by providing low and moderate-income housing, business development, job development, vocational training and educational assistance in the City. Tony Dupre, the principal of Arroyo has the background and experience in developing other in-fill single-family homes in and around the City. Staff has reviewed Arroyo's application and certified Arroyo as a CHDO per federal HOME requirements, and Arroyo is eligible to receive HOME funding under the fifteen percent (15%) CHDO requirement and the five percent (5%) operating expenses as per the 2005-2010 Five-Year ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- P:\Agendas\Comm Dev Commission\CDC 2006\I 1-20-06 Arroyo Capacity Building Agreement SR.doc COMMISSION MEETING AGENDA Meeting Date: 11/20/2006 Agenda Item Number: I Economic Development Agency Staff Report Arroyo Capacity Building Agreement Page 2 Consolidated Plan and 2006-2007 Annual Action Plan approved on May 15, 2006 by the Mayor and Common Council. Under HOME regulations, the Agency may allocate HOME Funds to eligible CHDOs such as Arroyo to strengthen capacity of non-profit organizations with the goal of producing affordable housing units. As a result, Arroyo is requesting Fifty Thousand Dollars ($50,000), approximately ten percent (10%) of their total annual budget of Five Hundred Thousand Dollars ($500,000) in CHDO Capacity Building Funds to assist with their capacity building effort. In exchange for the Agency providing the grant, Arroyo will be required to build or rehab, and sell one (1) single-family home to a low- and moderate-income household within eighteen (18) months and if Arroyo is unable to perform within this time period, Arroyo will be required to repay the Agency the grant funds with six percent (6%) interest not later than three (3) months after the eighteen (18) month period. In compliance with the Citizen Participation plan and the federal requirements, the Agency has published the required Public Notice amending the 2005-2010 Consolidated Plan and 2006-2007 Annual Action Plan allocating Fifty Thousand Dollars ($50,000) in HOME Capacity Building Grant Funds to Arroyo. ENVIRONMENTAL IMPACT: This request is exempt under the National Environmental Policy Act (NEPA) and the California Environmental Quality Act(CEQA). FISCAL IMPACT: Funds are available in the Agency's 2006-2007 Federal HOME Grant budget in the amount of $50,000. RECOMMENDATION: That the Mayor and Common Council and the Community Development Commission adopt the attached Resolutions. Maggie Pache o, Ex cutive Director ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- P:\Agendas\Comm Dev Commission\CDC 2006\11-20-06 Arroyo Capacity Building Agreement SR.doc COMMISSION MEETING AGENDA Meeting Date: 11/20/2006 Agenda Item Number: I ,I COPY 1 RESOLUTION NO. 2 3 ( RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING AND AMENDING THE 2005-2010 4 CONSOLIDATED PLAN AND THE 2006-2007 ANNUAI. ACTION PLAN TO 5 ALLOCATE $50,000 IN HOME CAPACITY BUILDING FUNDS TO ARROYO VALLEY COMMUNITY ECONOMIC DEVELOPMENT CORPORATION, A 61 NON-PROFIT CORPORATION 7 WHEREAS, the City of San Bernardino (the "City") is the recipient of the HOME 8 Investment Partnership Act ("HOME") formula Grant from the U.S. Department of Housing and 9 Urban Development ("HUD") to carry out HOME eligible activities in compliance with Title 24 In CFR Part 92 Program Requirement ("Program"); and 11 WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency") is 12 designated as the administrator of the Program on behalf of the City; and 13 WHEREAS, not more than five percent (5%) of the HOME annual allocation is set aside 14 for and made available to designated and approved Community Housing Development 15 Organizations ("CHDOs") for operating expenses and capacity building, in accordance with 16 Program guidelines; and 17 WHEREAS, Arroyo Valley Community Economic Development Corporation, a non-profit 18 corporation ("Arroyo"), has met the CHDO requirements under Title 24 CFR Subpart "A," Section 19 92.2 of the HOME Program Final Rule and is eligible to receive and use HOME Funds; and 20 WHEREAS, Arroyo is requesting Fifty Thousand Dollars ($50,000) in CHDO Capacity 21 Grant to assist in Capacity Building and Planning efforts and, implementation of activities that are 22 eligible under the HOME Program and provides benefit to individuals or families that meet the 23 income requirement of Title 24 CFR, Part 92.217, as low- and moderate-income earning less than 24 eighty percent (80%) of the Riverside/San Bernardino area median income; and 25 WHEREAS, in exchange for receiving the Capacity Building Grant, Arroyo will be 26 required to build or rehab, and sell one (1) single-family home to a low- and moderate-income Q 27 household within eighteen (18) months from the approval date of the Agreement; and 28 1 P:\Agendas\Re soluti ons\Resollltirtns\2000\11-20-06 Arroyo Capacity Building Agreement MCC Reso.dm i I WHEREAS, the Agency, in compliance with the Citizen Participation Plan and 24 CFR i i 2 570.302 and 24 CFR 91.105, has published in the San Bernardino County Sun newspaper on j 3 October 21, 2006 and November 13, 2006, the required Public Notice amending the 2005-2010 I 4 Consolidated Plan and 2006-2007 Annual Action PIan allocating Fifty Thousand Dollars ($50,000) I 5 in HOME Capacity Building Grant Funds to Arroyo. 6 NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED BY 7 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS 8 FOLLOWS: 9 Section 1. The Recitals of this Resolution are true and correct. 10 Section 2. On November 20, 2006, the Mayor and Common Council ("Council') hereby 11 approves the Amendment to the 2005-2010 Consolidated Plan and the 2006-2007 Annual Action 12 Plan to allocate Fifty Thousand Dollars ($50,000) in HOME Capacity Building Grant Funds to 13 Arroyo. The minutes of the City Clerk of November 20, 2006, joint hearing of the Council and 14 Community Development Commission ("Commission") shall include a record of all communication 15 and testimony to the CowZCil and the Commission at the joint public hearing by interested persons 16 relating to this action. 17 Section 3. This Resolution shall take effect upon its adoption and execution in the 18 manner as required by the City Charter. 19 20 21 22 23 24 25 26 27 28 2 P:\Agendas\Resolutl ons\Resoluln)ns\2006\11-20-06 Amyo Capacity Building Agn ment MCC Resu.dm I 1 I RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING AND AMENDING THE 2005-2010 2 CONSOLIDATED PLAN AND THE 2006-2007 ANNUAL ACTION PLAN TO ALLOCATE $50,000 IN HOME CAPACITY BUILDING FUNDS TO ARROYO 3 VALLEY COMMUNITY ECONOMIC DEVELOPMENT CORPORATION, A 4 NON-PROFIT CORPORATION I 5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 6 Common Council of the City of San Bernardino at a meeting thereof, 7 held on the day of , 2006, by the following vote to wit: 8 Commission Members: Ayes Nays Abstain Absent 9 ESTRADA 10 BAXTER 11 VACANT 12 DERRY 13 KELLEY - 14 JOHNSON 15 MC CAMMACK 16 17 Rachel G. Clark, City Clerk 18 19 The foregoing resolution is hereby approved this day of , 2006. 20 21 Patrick J. Morris, Mayor 22 City of San Bernardino 23 Approved as to Form: 24 25 By: 26 James F. Penman, City Attorney 27 28 3 P:\AgendasV2cuiluti ons\Resolutions\20(16\1 I-20-I6 Affor)Capacity Building Agreement MCC Relut.doc COPY I RESOLUTION NO. , 1 3 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE 4 EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY OF THE 5 CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE THE 2006 HOME CHDO CAPACITY BUILDING AGREEMENT BETWEEN THE AGENCY 6 AND ARROYO VALLEY COMMUNITY ECONOMIC DEVELOPMENT CORPORATION, A NON-PROFIT CORPORATION 71 8 WHEREAS, the City of San Bernardino (the "City") is the recipient of the HOME 9 Investment Partnership Act ("HOME") formula Grant from the U.S. Department of Housing and 10 Urban Development ("HUD") to carry out HOME eligible activities in compliance with Title 24 11 CFR Part 92 Program Requirement ("Program"); and 12 WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency") is 13 designated as the administrator of the Program on behalf of the City; and 14 WHEREAS, not more than five percent (5%) of the HOME annual allocation is set aside 15 for and made available to designated and approved Community Housing Development 16 Organizations ("CHDOs") for operating expenses and capacity building, in accordance with 17 Program guidelines; and 18 WHEREAS, Arroyo Valley Community Economic Development Corporation, a non-profit 19 corporation ("Arroyo"), has met the CHDO requirements under Title 24 CFR Subpart "A," Section 20 92.2 of the HOME Program Final Rule and is eligible to receive and use HOME Funds; and 21 WHEREAS, Arroyo is requesting Fifty Thousand Dollars ($50,000) in CHDO Capacity 22 Grant to assist in Capacity Building and Planning efforts and, implementation of activities that are 23 eligible under the HOME Program and provides benefit to individuals or families that meet the 24 income requirement of Title 24 CFR, Part 92.217, as low- and moderate-income earning less than 25 eighty percent (80%) of the Riverside/San Bernardino area median income; and 26 WHEREAS, In exchange for receiving the Capacity Building Grant, Arroyo will be 27 required to build or rehab, and sell one (1) single-family home to a low- and moderate-income 28 household within eighteen (18) months from the approval date of the Agreement; and 1 P:\Agendas\Resolutions\11"ilutxms\2006\I I-20.06 Arroyo Capacity Building Agreement CDC Reso.doc i I WHEREAS, the Agency; in compliance with the Citizen Participation Plan and 24 CFR 2 570.302 and 24 CFR 91.105, has published in the San Bernardino County Sun newspaper on 3 October 21, 2006 and November 13, 2006, the required Public Notice amending the 2005-2010 4 Consolidated Plan and 2006-2007 Annual Action Plan allocating Fifty Thousand Dollars ($50,000) 5 in HOME Capacity Building Grant Funds to Arroyo. 6 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE 7 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS 8 FOLLOWS: 9 Section 1. The Commission hereby approves the Agreement and the Executive Director 10 of the Agency is hereby authorized and directed to execute, on behalf of the Agency, the HOME 11 CHDO Capacity Building Grant Agreement by and between the Agency and Arroyo ("Agreement") 12 in the amount not to exceed Fifty Thousand Dollars ($50,000) to carry out CHDO activities 13 pursuant to HUD federal regulations as provided for in the Agreement; a copy of said Agreement is 14 attached hereto, marked Exhibit "A" and incorporated herein by reference as though fully set forth 15 at length. 16 Section 2. The Executive Director of the Agency is hereby authorized to make changes, 17 clarifications, interpretations, and additions to the Agreement, provided such changes are non- 18 substantive and do not increase the monetary impact to the Agency, and as approved by Agency 19 Counsel. 20 Section 3. The Resolution shall become effective immediately upon its adoption. 21 22 23 24 25 26 27 28 2 P:\Agendas\Rm)lutions\Resnlutk)ns\?(N)6\I 1-20-06 Arroyo Capacity Building Agrccmcnt CPC Rcso.dm 1 ! RESOLUTION OF THE COiMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE AMA 2 EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE THE 2006 HOME CHDO CAPACITY BUILDING AGREEMENT BETWEEN THE AGENCY 4 AND ARROYO VALLEY COMMUNITY ECONOMIC DEVELOPMENT CORPORATION, A NON-PROFIT CORPORATION 5 6 1 11FREBY CERTIFY that the foregoing Resolution was duly adopted by the Community 7 Development Commission of the City of San Bernardino at a meeting 8 thereof, held on the_ day of 2006, by the following vote to wit: 9 Commission ;\-Members: Aves Nays Abstain Absent 10 ESTRADA 11 BAXTER 12 VACANT 13 DERRY 14 KELLEY 15 JOHNSON 16 MC CAMMACK - 17 18 I Secretary 19 The foregoing resolution is hereby approved this day of , 2006. 20 21 Patrick J. Morris, Chairperson 22 Community Development Commission 23 of the City of San Bernardino 24 Approved as to Form: 1 25 By: fit +v c- L 26 Agency &oudsel 27 0 28' P\Agenda,\Resolutions\Resolutions\2006\11-20-06 Arrovo Capacity Building Agreement CDC Reso doc EXHIBIT "A" i I - COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO) HOME CAPACITY BUILDING GRANT AGREEMENT (2006-2007 HOME FUNDS) (Arroyo Valley Community Economic Development Corporation "Arroyo") THIS CHDO HOME CAPACITY BUILDING GRANT AGREEMENT ("Agreement") is made and entered into this 201h day of November 2006, by and between the Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic (hereinafter referred to as the "Agency"), located in the City of San Bernardino and in San Bernardino County, and the Arroyo Valley Community Economic Development Corporation ("Arroyo"), located at P.O. Box 1599, San Bernardino, California 92402, a California nonprofit corporation, organized pursuant to Title 24 CFR Subpart "G," Section 92.300, et seq., acting herein duly authorized by its Board of Directors. RECITALS WHEREAS, the City of San Bernardino (hereinafter referred to as the "City") has received formula HOME Investment Partnership allocation for Fiscal Years 2006-2007 from the federal Department of Housing and Urban Development ("HUD") to carry out eligible activities in accordance with federal program requirements at 24 CFR 92 (the "Program"), and the Agency is designated the administrator of the Program on behalf of the City; and WHEREAS, not more than five percent (5%) of the annual HOME grant amounts may be set aside and made available to designated CHDOs for capacity building and operating expenses, in accordance with HUD guidelines, and those allowable expenses may include organizational support, administrative expenses and operating expenses, per 24 CFR 92.208(a); and WHEREAS, Arroyo is desirous of participating in activities eligible under the Program, and further agrees that the beneficiaries of its activities under the Program and this Agreement, are or will be individuals or families who meet the income eligibility guidelines at Title 24 CFR part 92.217; and WHEREAS, the Agency deems the activities to be provided by Arroyo as consistent with and supportive of the Program and is consistent with the City's 2005-2010 Consolidated Plan and Housing Element, and that Arroyo requires the financial assistance of the Agency to implement its activities; and WHEREAS, the Agency, acting in the capacity of Administrator, will monitor and administer Arroyo to ensure compliance with all HOME Program requirements, and that Arroyo, in its capacity as a CHDO, will comply with all Program requirements under 24 CFR 92. NOW, THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS: I. CERTIFYING THE NONPROFIT AS A CHDO: Arroyo has satisfied the definition of a CHDO as stated in 24 CFR Subpart A, Section 92.2 of the HOME Final Rule. To qualify for receipt and use of federal HOME Funds as a CHDO, Arroyo has met the following requirements: - 1 - 1':\Agcndas\Agenda Anachments\Agrmts-Amend 2(X)6\I 1-20-06 Arroyo-Capacity Building Agnxmcnt.(loc i i A. Legal Status. The nonprofit organization is organized under state or local laws, as evidenced by a charter or articles of incorporation. No part of its net earnings inure to the benefit of any member, founder, contributor or individual, as evidenced by the same. The nonprofit organization must have a tax exemption ruling from the Internal Revenue Service ("IRS") under Section 501(c) of the Internal Revenue Code of 1986, as evidenced by a 501(c) certificate from the IRS. Also, the nonprofit organization has among its purposes, the provision of decent housing that is affordable to low and moderate-income people, as evidenced by a statement in the organization's charter, articles of incorporation, by-laws or resolutions. B. Capacity. The nonprofit organization conforms to the financial accountability standards of 24 CFR 84.21, "Standards for Financial Management Systems", as evidenced by a notarized statement by the organization CEO or president, a CPA or a HUD-approved audit summary. Arroyo has a demonstrated capacity for carrying out activities assisted with HOME Funds and affordable housing programs through the stated experience of key staff members or contract(s) with consultants who have experience with related projects to train key staff. Also, Arroyo has shown a history of serving the community where housing to be assisted with HOME Funds has been used and a statement that documents at least one (1) year of experience in serving the community is on file with the Agency. C. Organizational Structure. The governing board of Arroyo consists of at least thirty-three percent (33%) residents of low-income neighborhoods, other low-income community residents, or elected representatives of low-income neighborhood organizations as evidenced by charter, by-laws or articles of incorporation. Arroyo provides a formal process for low-income, program beneficiaries to advise the organization in all of its decisions regarding the design, development and management of all affordable housing projects, through its by-laws, resolutions or a written statement of operating procedures approved by the governing body of Arroyo. While Arroyo may be chartered by the state or a local government, the public body may not appoint more than one-third ('/3) of the membership of the organization's governing board and no more than one-third ('/3) of the governing board members are public officials as evidenced by charter, by-laws or articles of incorporation. Also, if Arroyo is sponsored or created by a for-profit entity, the for-profrt,entity may not appoint more than one-third (`/3) of the membership of Arroyo's governing body, and the board members appointed by the for- profit entity may not, in turn, appoint the remaining two-thirds (2/3) of the board members, as evidenced by the same. D. Relationship with For-Profit Entities. Arroyo is not controlled, nor receives directions from individuals or entities seeking profit from the organization, as evidenced by the organization's by-laws or a memorandum of understanding. Arroyo may be sponsored or created by a for-profit entity, however: i 1. The for-profit entity's primary purpose does not include the development or management of housing, as evidenced in its by-laws; and 2. Arroyo is free to contract for goods and services from vendor(s) of its own choosing, as evidenced in its by-laws, charter or articles of incorporation. - 2- PA\Agendas%Agende AtiachmentstAgrmts-Amend 2006\11.20-06 Amtyo-Capacity Building AgreementAw II. SCOPE OF SERVICES AND COMPENSATION A. Amount of Grant. Pursuant to the conditions being met in Section 1. above, the Agency agrees to grant Fifty Thousand Dollars ($50,000) (the "Grant") of the HOME Investment Partnership Funds for the capacity building and operating expenses of Arroyo as a CHDO pursuant to the HOME Investments Partnership Act. Said Grant represents no more than ten percent (10 1i0) of Arroyo's 2006- 2007 annual budget. B. Use of Grant Funds, Projected Budget and Task to be Performed. The Grant funds will be used to pay the CHDO capacity building and operating expenses of Arroyo including, but not limited to, the costs of salaries, wages, insurance auditing, employee training and lease payments; utilities, taxes; legal; accounting-, consultant services; purchase of materials and supplies to enable Arroyo to build or rehab, and sell one (1) single family home to a low and moderate-income household within eighteen (18) from and after the date of this Agreement. Refer to Exhibit "A" of this Agreement for specific budget line items. The requirements and limitations on the receipts of these funds by CHDOs are set forth in CFR 92.300(e) and (f). Should Arroyo fail to perform and achieve these tasks, Arroyo will be required to repay the Agency the full amount of Fifty Thousand Dollars ($50,000) with six percent (6%) interest per annum, compounded annually, calculated from the original disbursement date of the Grant funds, and payable in whole as to principal and interest, not later than three (3) months after the expiration of said eighteen (18) month period. C. Other Program Requirements. 1. Arroyo must carry out each activity in compliance with all federal laws and regulations described in Subpart H of 24 CFR 92 and outlined hereinafter, except that Arroyo does not assume the Agency's/City's responsibility for environmental review in Section 92.352 or the intergovernmental review process in Section 92.357. These federal laws and regulations must be complied with as follows: a. Equal OpportunitY. No person shall be excluded from participation in, be denied the benefits of or be subjected to discrimination under any program or activity funded in whole or in part with HOME Funds. In addition, HOME Funds must be made available in accordance with all laws and regulations listed in Section 92.350(a). b. Fair Housing. In accordance with the certification made with its housing strategy, each participating jurisdiction must affirmatively further fair housing. Actions described in Section 570.904(c) of Title II of the Cranston-Gonzales National Affordable Housing Act will satisfy this requirement. c. Affirmative Marketing. Arroyo must adopt affirmative marketing procedures and requirements for HOME-assisted housing projects of four (4) units or more. These must include: (1) Methods for informing the public; (2) Requirements and practices that Arroyo must adhere to in order to carry out the Agency's/City's affirmative marketing procedures and requirements; P\Agendas\Agenda Attachments�Agrmts-Amend 2006\11-20-06 Arroyo-Capacity Building Agreemem doc (3) Procedures used by Arroyo to inform and solicit applications from persons in the housing market area who are not likely to apply without special outreach; (4) Records that will be kept describing actions taken by Arroyo to affirmatively market units and records to assess the results of these actions; and (5) A description of how Arroyo will assess the success of affirmative marketing actions and what corrective actions will be taken where affirmative marketing requirements are not met. d. Displacement, Relocation and Acquisition. Consistent with the other goals and objectives of Subpart H of 24 CFR 92, Arroyo must ensure that it has taken all reasonable steps to minimize the displacement of persons (families, individuals, businesses, nonprofit organizations and farms) as a result of its project activities undertaken pursuant to this Agreement. Arroyo agrees to minimize displacement in accordance with Section 92.353. e. Conflict of Interest. Arroyo will hereby comply with all requirements set forth regarding conflict of interest provisions as they apply in Section 92.356. f. Debarment and Suspension. As required in Section 92.357, Arroyo will comply with all debarment and suspension certifications. g. Flood Insurance. Under the Flood Disaster Protection Act of 1973, HOME Funds may not be used with respect to the acquisition or rehabilitation of a project located in an area identified by the Federal Emergency Management Agency ("FEMA") as having special flood hazards, unless: (l) The community in which the area is situated is participating in the National Flood Insurance Program, or less than a year has passed since FEMA notification regarding such hazards; and (2) Flood insurance is obtained as a condition of approval of the commitment. If the Agency is located in an area identified by FEMA as having special flood hazards, upon notification by the Agency or FEMA, Arroyo is responsible for assuring that flood insurance under the National Flood Insurance Program is obtained and maintained. 2. Labor. Any contract for the construction or rehabilitation of affordable housing with twelve (12) or more units assisted with funds made available under Subpart H of 24 CFR 92 must contain a provision requiring that not less than the wages prevailing in the locality, as predetermined by the Secretary of Labor pursuant to the Davis-Bacon Act (40 U.S.C. 2761- 5), will be paid to all laborers and mechanics employed in the development of affordable housing involved, and such contractors must also be subject to the overtime provisions, as applicable, of the Contract Work Hours and Safety Standards Act (40 U.S.C. 327-332). The Arroyo contractors, subcontractors and other participants must comply with regulations -4- l':\Agendas\Agenda Auachments\Agrmts-Anxnd 2006\11-20-06 Armyo-Capacity Building Agreemcnt.doc issued under these Acts and with other federal applicable federal laws. The Arroyo will require certific.itions as to compliance with the provisions of Section 92.354 before malting any payment under such contract. 3. Hold Harmless. Arroyo agrees to indemnify, defend (if requested by the City and/or the Agency), and hold harmless the City and the Agency, their boards, commissions, elected officials, officers, attorneys, agents and employees from any and all claims and losses accruing or resulting to Arroyo or any and all contractors, subcontractors, materialmen, laborers and any other person, firm or corporation furnishing or supplying work, services or supplies in connection with the performance of this Agreement, and from any and all claims and losses accruing or resulting to any person, firm or corporation who may be injured or damaged by Arroyo in the performance of this Agreement. Without limiting Arroyo's indemnification of Agency, Arroyo shall provide and maintain at its own expense during the term of this Agreement, the following program(s) of insurance covering its operation hereunder. Such insurance shall be provided by insurer(s) satisfactory to the Agency and evidence of such programs satisfactory to the Agency shall be delivered to the Executive Director of the Agency or his/her designee within ten (10) days after the effective date of this Agreement. General Liability: A program including, but not limited to, comprehensive general liability with a combined single limit of not less than One Million Dollars ($1,000,000) per occurrence. Such insurance shall be primary to and not contributing with any other insurance maintained by the Agency/City, and shall name the Agency and the City, their boards, commissions, elected officials, officers, attorneys, agents and employees, as additional insured. Such insurance shall require the Agency be notified at least ten (10) days in advance of any change or cancellation of said insurance. D. Request for Disbursement of Grant Funds. 1. Arroyo may request Grant funds monthly, on a reimbursement basis, for eligible costs, on a prorata basis, up to maximum of Fifty Thousand Dollars ($50,000). The amount of each request will be limited to the amount substantiated in the invoices submitted for costs incurred in accordance with the budget attached hereto as Exhibit "A. Line item within the budget may be modified with the approval of the Agency Executive Director E. Records and Reports. 1. The Agency will require that Arroyo maintain the following records and reports in order to assist the Agency/City in meeting its record keeping and reporting requirements: a. Records, including individual project and construction records and a running log demonstrating compliance with the applicable provisions of Section 92.508(2) of the HOME Investment Partnership Program, if any; and b. Continuing compliance with the HOME Program shall be certified and reported to the Agency on a quarterly basis to comply with HOME reporting requirements; and, - 5 - 11AAgendas\Agenda Attachmenisvlgrmts-Amend 2006\I 1-20-06 Am+wi-Capacity Building.Agreetrnnt.doc c. Any other legal reports and/or records requested by the Agency/City to document the provisions of all affordable housing projects or programs pursuant to this Agreement. 2. Arroyo shall retain and provide access to all records for the period of five (5) years from the date of this Agreement in accordance with the requirements of Section 92.508(6)(c) and (d). III. GENERAL PROVISIONS: A. Enforcement of the Agreement. 1. The Agency, on behalf of itself or the City, shall have the right, by prior written notice to Arroyo, to enforce by deed restriction, the affordability requirements in Section 92.254, or any other such violation, as is brought to the attention of the Agency or the City regarding the property(ies) being developed or rehabilitated with the use of HOME Funds pursuant to this Agreement, if any. In the event of a breach of any condition or provision hereof, the Agency shall have the right, by prior written notice to Arroyo, to suspend or terminate this Agreement if Arroyo materially fails to comply with any of its terms and demand repayment of the Grant. 2. The Agency, at its discretion, may terminate this Agreement, in whole or in part, by giving Arroyo thirty (30) calendar days written notice or in accordance with 24 CFR 85.44, which provides in part that suspension or termination may occur if Arroyo materially fails to comply with any term of this Agreement. B. Monitoring. 1. The Agency is responsible for managing the day-to-day operations of the HOME program; for monitoring the performance of all entities receiving HOME Funds from the Agency to ensure compliance with the requirements of Subpart K, 24 CFR 92, and for taking appropriate action when performance problems arise. 2. Not less than annually, the Agency will review the activities of Arroyo, to assess compliance with the requirement of Subpart K, 24 CFR 92, as set forth in this Agreement. C. Notices. Any notice requirement set forth herein shall be deemed satisfied three (3) days after mailing of the notice first-class United States certified mail, postage prepaid, addressed to the appropriate party as follows: CHDO: Arroyo Valley Community Economic Development Corporation Attn.: Antonio Dupre, President P.O. Box 1599 San Bernardino, California 92402 AGENCY: Redevelopment Agency of the City of San Bernardino Attn.: Maggie Pacheco, Executive Director 201 North "E" Street, Suite 301 San Bernardino, California 92401 - 6- PA.AgendaAAgenda Attacluncia\Agents-Amend 2006\11-20-06 Arroyo-Capacity Building Agreement.duc i Such addresses may be changed by notice to the other party given in the same manner as provided above. D. Attorney's Fees. In addition to any other remedies provided hereunder or available pursuant to law, if either party brings an action or proceeding to enforce, protect or establish any right or remedy hereunder, the prevailing party shall be entitled to recover from the other party its costs of suit and reasonable attorney's fees. The costs, salary and expenses of the City Attorney and members Of his office in enforcing the Agreement on behalf of the Agency or the City shall be considered as "attorney's fees" for the purposes of this paragraph. E. No Third Parties Benefited. This Agreement is made and entered into for the sole protection and benefit of the Agency and the City, their successors and assigns, and Arroyo, its permitted successors and assigns, and no other person or persons shall have any right of action hereon. F. Agency to File Notices. Arroyo irrevocably appoints, designates and authorizes the Agency as its agent (said agency being coupled with an interest) to file at its option for record any notices of completion, cessation of labor, or any other notice that the Agency deems necessary or desirable to protect its interest hereunder. G. Actions. The Agency or the City shall have the right to commence, appear in, or defend any action or proceeding purporting to affect the rights, duties, or liabilities of the parties hereunder, or the disbursement of any proceeds of the Agency allocation of HOME Funds. H. Successors and Assigns. The terms hereof shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto; provided, however, that no assignment of A rroyo's rights hereunder shall be made, voluntarily or by operation of law, without the prior written consent of the Agency, and that any such assignment without said consent shall be voided. I. Construction of Words. Except where the context otherwise requires, words imparting the singular number shall include the plural number and vice versa, words imparting persons shall include firms, associations, partnerships and corporations, and words of either gender shall include the other gender. J. Partial Invalidity. If any provision of this Agreement shall be declared invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions hereof shall not in any way be affected or impaired. i K. Governing Law. This Agreement and any other instruments given pursuant hereto shall be construed in accordance with and be governed by the laws of the State of California and the pertinent HOME regulations. L. Amendment. This Agreement may not be changed orally, but only by agreement in writing signed by Arroyo and the Agency. The Executive Director of the Agency is authorized to make nonsubstantive changes to this Agreement as authorized by the Resolution approving this Agreement. - 7 — 11AAgendas\Agcnda Auachment.Mgrmts-Armnd 2(06\1 1-20-06 Arroyo-Capacity Building Agreenlent-Am { M. Approvals. �N`here an approval or submission is required under this Agreement, such approval or submission shall be valid for purposes of this Agreement only if made in writing. N. Captions and Headings. Captions and headings in this Agreement are for convenience of reference only, and are not to be considered in construing the Agreement. O. Entire Agreement. This Agreement shall be executed in triplicate, each of which is deemed to be an original. This Agreement includes eight (8) pages and Exhibit "A" that constitute the entire understanding and agreement of the parties. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements between the parties with respect to the CHDO operations. P. Authority. The individuals executing this Agreement and the instruments referenced herein on behalf of Arroyo each represent and warrant that they have the legal power. right and actual authority to bind Arroyo to the terms and conditions hereof and thereof. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. ARROYO VALLEY COMMUNITY ECONOMIC DEVELOPMENT CORPORATION, a California nonprofit corporation By: Antonio Dupre, President REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a public body, corporate and politic By: Maggie Pacheco, Executive Director Approved as to Form and Legal Content: By: Agency Coun 1 f - 8 - P.\Agendas\Agenda Attachments\Agents-Amend 2006\1 I-20-06 Arroyo-Capacity Building Agreement doc EXHIBIT "A" Specific Use of Requested Capacity Building Funds (HOME) Detailed Budget Staffin Budgeted Amount Chief Executive Officer $ 8,000 VP Fund Development $ 18,000 Total Staffing $ 269000 Office Expenses Training/Prof. Development $ 3,000 Office Space $ 5,000 Equipment/Furniture $ 0 Office Supplies $ 600 Postage $ 600 Phone $ 1,600 Insurance $ 4,000 Accountant $ 1,000 Legal $ 1,500 Brochures/PR Material/Website Development $ 1,700 Other Expenses Consultant Services $ 4,000 Acquisitions $ 0 Total Expenses 24,000 Total Specific Use Budget 50,000 A-1 CITY OF SAN BERNARDINO Interoffice Memorandum CITY CLERK'S OFFICE Records and Information Management(RIM) Program DATE: November 29, 2006 TO: Wasana Chantha, Secretary Economic Development Agency 1 r f j FROM: Sandra Medina, Assistant to the City Clerk RE: Transmitting Documents for Signature—Resolution No. CDC/2006-50 At the Mayor and Common Council meeting of November 20, 2006, the City of San Bernardino adopted Resolution No. CDC/2006-50—Resolution of the Community Development Commission of the City of San Bernardino approving and authorizing the Executive Director of the Redevelopment Agency of the City of San Bernardino ("Agency') to execute the 2006 HOME CHDO Capacity Building Agreement between the Agency and Arroyo Valley Community Economic Development Corporation, a non-profit corporation. Attached are one (1) original agreement and two (2) duplicate original agreements. Please obtain signatures in the appropriate locations and return the original agreement as soon as possible to Margaret Fedor in the City Clerk's Office. Please retain one duplicate agreement for your records and forward the other duplicate agreement to the other party. If you have any questions, please do not hesitate to contact Margaret Fedor at ext. 3206. Thank you. Sandra Medina Assistant to he City Clerk I hereby ac owledge receipt of the above mentioned documents. Signed: i Date: Please sign and return 11'j�� 't;C� City of San Bernardino ECONOMIC DEVELOPMENT AGENCY • F Redevelopment•Community Development•Housing•Business:Recruitment,Retention,Revitalization•Main Street,Inc. San Bernard-in SM December 1, 2006 Arroyo Valley Community Economic Development Corporation Attn.: Antonio Dupre, President P.O. Box 1599 San Bernardino, California 92402 Re: Community Housing Development Organization (CHDO) HOME Capacity Building Grant Agreement Dear Mr. Dupre: Enclosed for your records is the fully executed Agreement as referenced above that was approved by the Community Development Commission of the City of San Bernardino on November 20, 2006 (Resolution CDC/2006-50). Should you have any questions regarding this matter, please feel free to call me at (909) 663- 1044. Since , +n 'A' .Was Chantha Executive Secretary Enclosure: Community Housing Development Organization (CHDO) HOME Capacity Building Grant Agreement cc: Barbara Lindseth (with Original Executed Agreement) ,,-06die Otterbein (with Original Executed Agreement) Musibau Arogundade (with Copy of Original Executed Agreement) File (with Copy of Original Executed Agreement) 201 North E Street,Suite 301 •San Bernardino,California 92401-1507•(909)663-1044•Fax(909)888-9413 www.sanbernardino-eda.org.