HomeMy WebLinkAboutR28-Economic Development Agency
CITY OF SAN BERNARDINO
ECONOMIC DEVELOPMENT AGENCY
ORIGINAL
FROM: Maggie Pacheco
Executive Director
SUBJECT: Amendment No. 1 to the 2005 HOME
Funds Loan/Grant Agreement - AHEPA
National Housing Corporation - AHEPA
Local Arrowhead 302 Chapter (Senior
Housing Complex) and Amendment to the
Consolidated Plan
DATE: December 12,2006
SvnoDsis of Previous Commission/Council/Committee Action(s):
On December 7, 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):
(Mavor and Common Council)
A: Resolution of the Mayor and Common Council of the City of San Bernardino approving an Amendment to the
City's 2005-2010 Consolidated Plan and the 2006-2007 Annual Action Plan allocating $362,735 in Federal
HOME Grant Funds to AHEPA National Housing Corporation - AHEPA Local Arrowhead 302 Chapter
(Communitv Develooment Commission)
B: 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 Amendment No. 1 to the 2005 Home Funds Loan and Grant Agreement by and between the
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Contact Person(s):
Maggie Pacheco
IVDA Redevelopment Project Area
Phone:
(909) 663-1044
2
Project Area(s):
Ward(s):
Supporting Data Attached:
o Staff Report 0 Resolution(s) 0 Amendment(s)/Agreement(s) 0 Map(s) 0 Letter(s)
FUNDING REQUIREMENTS: Amount: $ 362,735
Source:
HOME Funds
SIGNATURE:
Budget Authonty
~t~/2~t;;:;,
2006-2007 EDA Budget
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y-;, "(U,-,-~._~~Yj", x,lf)'
, arbara Lindseth, Admin. Services Director
Commission/Council Note~
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P \Ag.cndas\COlllTll Dev Comm;"ionICDC 2006\12-18-06 AHEPA Senior Housing Complex - Amendment No l.doc
COMMISSION MEETING AGENDA
Meeting Date: 12/18/2006
Agenda Item Number: ((.;1 r
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ECONOMIC DEVELOPMENT AGE'IC\'
STAFF REPORT
AMENDMENT NO.1 TO THE 2005 HOME FUNDS LOAN/GRAl'iT AGREEMENT - AHEPA
NATIONAL HOUSING CORPORATION - AHEPA LOCAL ARROWHEAD 302 CHAPTER
(SENIOR HOUSING COMPLEX) AND AMENDMENT TO THE CONSOLIDATED PLAN
BACKGROUND:
In November 2004, AHEPA National Housing Corporation ("AHEPN') was awarded a $13 million
HUD 202 Supporting Housing Program Grant ("HUD Gran!") on behalf of their local AHEPA
Arrowhead 302 Chapter, for the construction and operation of a 90 unit senior housing complex
("Project") to be developed at 377 East Gilbert Street. San Bernardino ("Site"). This $13 million HUD
Grant was based on a preliminary Project budget that AHEP A submitted to HUD estimating their
construction costs. engineering, architectural and development/building permit fees costs associated
with the Project. The Project involves the construction of a 3 story, 90 unit senior housing complex on
approximately 2.48 acres of land located on the Site. Of the 90 units, 89 would be reserved for lower
income seniors (minimum age of 62) at affordable rental costs and I unit will be reserved for an on-site
Proper1y Manager. AHEP A is a non-profit corporation founded in 1983 with the goal of improving the
quality of life for the elderly, disabled and presently has more than 63 projects throughout 19 states
totaling in excess of 3,400 housing units.
On December 19, 2005, the Commission approved a 2005 HOME Funds Loan and Grant Agreement
("HOME Agreement") with AHEPA in the amount of $840,000 ("HOME Loan") to allow AHEPA to
purchase the Site prior to release of the HUD Grant funds. Said HOME Loan was structured as a loan
to AHEP A and to be repaid to the Agency upon release of the HUD Grant funds. Moreover, when
AHEPA repaid the HOME Loan funds to the Agency, the Agency would then subsequently reserve
and grant up to $840,000 to AHEP A to use to fund certain necessary off-sites, exterior and interior
amenities and upgrades to the Project that would not be eligible expenditures under the HUD Grant.
CURRENT ISSUE:
AHEPA has submitted plans for the development of the Project to the City's Development Services
Department ("Development Services") and plan approval and issuance of building permits are pending
following the payment of certain development impact/building permit fees ("City Fees") by AHEPA to
Development Services. After the plans are approved, AHEP A will submit their approved development
plans, permits and final budget to HUD for final approval and release of the HUD Grant, expected to
occur around the end of December 2006.
However, now that Development Services has concluded their review of the Project plans, they have
notified AHEPA that their City Fccs arc $782,735 as opposed to the preliminary budget line item that
was approved by HUD in the HUD Grant of $400,000. This unexpected increase was due largely in
part to the increases in City Fees. Consequently, this will create a construction budget Project shortfall
for AHEPA in the amount of$362,735 and Staff is recommending an approval of Amendment No. I to
increase the HOME Grant amount by $362,735 which will be used by AHEPA to essentially pay for
P \Agenda~\Coml11 Del CommL5s,oll\(DC ~006\J2.18.06 AHEPA ScnlOl Housing Complc~ . Anlclldmcl1I1\o I doc
COMMISSION MEETING AGENDA
Meeting Date: 12/18/2006
Agenda Item Number:
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Economic Deyelopment Agency Staff Report
AHEP A Senior Housing Complex - Amendment No.1
Page 2
the unbudgeted and increased City Fees through additional qualified line items as set forth 111
Amendment NO.1.
In order to accommodate the proposed Amendment No.1 to the HOME Agreement, an amendment to
the City's 2005-2010 Consolidated Plan and the 2006-2007 Annual Action Plan to reflect the increase
in the Project budget will be required per HUD regulations.
ENVIRONMENTAL IMPACT:
None.
FISCAL IMP ACT:
It is proposed that the $362,735 be funded with 2006-2007 HOME Project Funds.
RECOMMENDATION:
That the Mayor and Common Council and the Community Development Commission adopt the
attached Resolutions.
P \AgendaslComm De" Comm,~,'on\CDC ~006\ 12-18-06 AHEPA Senior Housing Comple~ - Amendment No I doc
COMMISSION MEETING AGENDA
Meeting Dale: 12/18/2006
Agenda Item Number:
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RESOLUTION NO.
RESOLUTION OF THE MA YOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO APPROVING AN AMENDMENT TO THE CITY'S
2005-2010 CONSOLIDATED PLAN AND THE 2006-2007 ANNUAL ACTION
PLAN ALLOCATING $362,735 IN FEDER-\L HOME GRANT FUNDS TO
AHEPA NATIONAL HOUSING CORPORATION - AHEPA LOCAL
ARROWHEAD 302 CHAPTER
WHEREAS. the City of San Bernardino (the "City") is an entitlement jurisdiction and
annually receives certain federal funds under the HOME Investment Partnership Act (the "HOME
Program") from the United States Department of Housing and Urban Development ("HUD") in
order to carry out eligible affordable housing activities within the City in accordance with the
HOME Program Re~ulations set forth in Title 24 Code of Federal Regulations Part 92, et seq. (24
12 CFR Part 92); and
13 WHEREAS, on May 15, 2006, the Mayor and Common Council approved the City's 2005-
14 2010 Consolidated Plan and the 2006-2007 Annual Action Plan; and
WHEREAS, in compliance with the City's approved Citizens Participation Plan and
16 CDBG/HOME regulation under 24 CFR 570.302 and 24 CFR 91.105, on November 30, 2006, and
17 December 17, 2006, the required public notice of this amendment to the 2005-20 I 0 Consolidated
18 Plan and the 2006-2007 Annual Action Plan was published in the San Bernardino County Sun,
19 inviting and requesting citizens to provide written and or oral comments with regards to this
20 amendment at this meeting, and as of this date, Staff has not received any oral or written comments
21 regarding this amendment.
22 NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED BY
23 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS
24 FOLLOWS:
25
Section 1.
That the Mayor and Common Council hereby approve the amendment to the
26 2005-20 I 0 Consolidated Plan and the 2006-2007 Annual Action Plan of the City by allocating an
. 27 additional amount not to exceed $362,735 in Federal HOME Project Funds to AHEPA National
28 Housing Corporation - AHEPA Local Arrowhead 302 Chapter.
P'Agelld~>\Resollltlom\Resol"l,ons\2006\I:!-18-06 AHEPA Amendment:-.lo I \1CC Reso doc
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] Section 2. This Resolution shall take effect upon its adoption and execution in the
2 manner as required by the City Charter.
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO APPROVING AN AMENDMENT TO THE CITY'S
2005-2010 CONSOLIDATED PLAN AND THE 2006-2007 ANNUAL ACTION
PLAN ALLOCATING $362,735 IN FEDERAL HOME GRANT FUNDS TO
AHEPA NATIONAL HOUSING CORPORATION - AHEPA LOCAL
ARROWHEAD 302 CHAPTER
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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
Rachel G. Clark. City Clerk
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The foregoing Resolution is hereby approved this
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day of
,2006.
Patrick 1. Morris, Mayor
City of San Bernardino
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Approved as to Form:
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24 By:
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.tLv~
James F. Penman, City Attorney
,
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RESOLUTION NO.
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 AMENDMENT NO. I TO THE 2005 HOME
FUNDS LOAN AND GRANT AGREEMENT BY AND BETWEEN THE
AGENCY AND AHEPA NATIONAL HOUSING CORPORATION -
AHEPA LOCAL ARROWHEAD 302 CHAPTER
WHEREAS, the City of San Bernardino (the "City") is an entitlement jurisdiction and
annually receives certain federal funds under the HOME Investment Partnership Act (the "HOME
Program") from the United States Department of Housing and Urban Development ("HUD") in
order to carry out eligible affordable housing activities within the City in accordance with the
HOME Program Regulations set forth in Title 24 Code of Federal Regulations Part 92, et seq. (24
13 CFR Part 92); and
WHEREAS, the Mayor and Common Council have approved an Amendment to the 2005-
15 2010 Five Year Consolidated Plan and the 2006-2007 Annual Action Plan authorizing $362,735 of
16 Federal HOME funds to AHEPA National Housing Corporation.- AHEPA Local Arrowhead 302
17 Chapter ("AHEP A"); and
18 WHEREAS, the City has designated and authorized the Agency to administer and
19 implement the HOME Program for the City; and
20 WHEREAS, HOME Program funds may be used by the Agency for locally based nonprofit
21 housing entities to carry out affordable housing activities in compliance with the HOME Program
22 Regulations, including but not limited to "Senior Housing" development projects as this term is
23 defined at 24 CFR Part 92.2; and
24 WHEREAS, AHEP A is a national and lucaliy certified andior approved and experienced
25 nonprofit housing organization, and the Grantee has obtained approval from the United States
26 Department of Housing and Urban Development ("HUD") a Section 202 Grant for the construction
e 27 and operation of a 90 unit senior housing facility (the "Project"); and
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P \A!\tnda~\Resolulions\Resol"lfons\1006\12-lll.06 AIIEPA Amendment)\;o I CDC Reso doc
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WHEREAS, on Del'ember 19, 2005, the Development Commission approved the 2005
2 HOME Funds Loan and Grant Agreement ("2005 HOME Agreement") between the Agency and
3 AHEPA: and
4 WHEREAS, the Agency deems that the activities to be undertaken by AHEPA herein are
5 consistent with and supportive of the HOME Program Regulations; and
6 WHEREAS, the Agency deems it desirable to enter into this Amendment No.1 to the 2005
7 HOME Agreement with AHEPA to provide additional HOME Program Project funds of $362,735
8 coupled with the tlrst appropriation per the 2005 HOME Agreement of $840,000 for a total HOME
9 appropriation of $1 ,202,735; and
10 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY
11 OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS FOLLOWS:
12
Section 1.
The Community Development Commission authorizes an additional
13 appropriation in an amount not to exceed $362,735 from the federal HOME Program Project funds,
14 tlscal year 2006-2007 for AHEP A to complete the Project and the Executive Director of the Agency
15 or designee, are authorized to execute Amendment No.1 to the 2005 HOME Agreement and execute
16 any such other documents as may be necessary to implement the 2005 HOME Agreement and
17 Amendment No. I and to make any necessary non-substantive changes as may be approved by
18 Agency Counsel, provided such changes do not increase the Agency's tlnancial contribution to the
19 Proj ect.
20 Section 2.
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The Resolution shall become effective immediately upon its adoption.
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P \''\'genda~\Re~olulion~\Re5oll'liofl5\2006\12.18.06 AHEPA Amendment No I CDC Reso do,
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held on the day of
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Commission Members: Aves
10 ESTRADA
11 BAXTER
12 BRINKER
13 DERRY
e 14 KELLEY
IS
JOHNSON
16 MC CAMMACK
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RESOLOTlON OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO APPROVING AND
AUTHORIZING THE EXECOTlVE DIRECTOR OF THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
("AGENCY") TO EXECOTE AMENDMENT NO.1 TO THE 2005 HOME
FUNDS LOAN AND GRANT AGREEMENT BY AND BETWEEN THE
AGENCY AND AHEPA NATIONAL HOOSING CORPORATION -
AHEPA LOCAL ARROWHEAD 302 CHAPTER
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I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community
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meeting thereof,
Development Commission of the City of San Bernardino at a
, 2006, by the following vote to wit:
Navs
Abstain
Absent
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Secretary
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The foregoing Resolution is hereby approved this
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day of
,2006.
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Patrick J. Morris, Chairperson
Community Development Commission
of the City of San Bernardino
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Approved as to Form:
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26 By:
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P IAgendas\ResoIUlions\Resollu.on;I,Z006\12-18-06 AHEPA Amendment No 1 eDC Rew doc
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AMENDMENT NO.1
TO THE 2005 HOME FUNDS LOAN AND GRANT AGREEMENT
WITH
AHEPA NATIONAL HOUSING CORPORATION-AHEPA LOCAL
ARROWHEAD 302 CHAPTER
This Amendment No. I to the 2005 HOME Grant Agreement (this "Amendment No.1") is
entered into on December 18, 2006, by and between the Redevelopment Agency of the City of San
Bernardino (the "Agency"), a public body, corporate and politic, and AHEPA National Housing
Corporation - AHEPA Local Arrowhead 302 Chapter, a California nonprofit corporation (the
"Developer"), and is entered into in consideration of the facts set forth in the following Recital
paragraphs:
-RECIT ALS-
A. The Developer and the Agency have previously entered into ~ agreement entitled
"2005 HOME Funds Loan and Grant Agreement", dated as of December 19, 2005 (the "2005
Agreement").
B. As of the effective date of this Amendment No. I, the Developer has received from
the United States Department of Housing and Urban Development ("HUD") Section 202 Capital
Advance Program Funding for the Project in the amount of $11,199,300 and a five (5) year rental
subsidy of$I,884,000.
C The Agency is desirous of assisting the DeveJoper in the construction of the Project
and has previously provided $840,000 HOME Loan pursuant to the 2005 .Agreement for the
acquisition of the Site with the loan repayment amounts then being utilized to provide certain
additional grant funds for design upgrades, off-site improvements and exterior amenities upgrades.
However, due to increases in City of San Bernardino development impact fees applicable to the
Project from a previously estimated $400,000 figure to a currently estimated figure of$782,735, the
Developer has requested additional assistance with regard to the resulting $362,735 gap amount and
the Agency seeks to assist the Developer to thus provide the gap funds for the completion of the
Project.
D. The Agency's participation in the Project is limited to the dollar amounts and for the
purposes as is set forth in the 2005 Agreement and this Amendment No.1.
E. The Developer is responsible for the construction of the Project at its sole cost and
expense, whether from the funding sources described the 2005 Agreement, and any other funding
sources available to the Developer for such purpose.
F. The Agency has determined that the development of the Site pursuant to the 2005
Agreement and this Amendment No.1 and the fulfillment generally of the purposes of the 2005
Agreement are in the vital and best interests of the City and the Agency.
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NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND
CONDITIONS CONTAINED HEREIN, THE AGENCY AND THE DEVELOPER AGREE AS
FOLLOWS:
Section], References to the 2005 Ae:reement; Defined Terms. (a) Unless the context
of the usage of a term or phrase in this Amendment No. I may otherwise require, the meaning of
words and phrases as contained in this Amendment No. I, which are indicated by an initially
capitalized letter, shall be the same as set forth in the 2005 Agreement.
(b) The information contained in the Recitals as set forth in this Amendment No. I are true
and correct in all respects.
Section 2. Specific Amendments to the 2005 Ae:reement. (a) The 2005 Agreement is
hereby amended by this Amendment No. I in the manner as indicated in this Section 2 and which
changes and amendments shall be effective from and after the date of approval of this Amendment
No. I by the Developer and the Agency and execution hereof by the parties.
(b) Section 402 of the 2005 Agreement is hereby amended by substituting the following
chart in place of that as is presently provid~d in the 2005 Agreement:
Construction and Permanent Financing:
Estimated Amount of Section 202
Capital Advance
Estimated Amount of Agency Grant
Total Estimated Development Cost
$11,199,300
$ 1.202.735
$ I 2,402,035
(c) The term "Agency Grant" as defined and as used in the 2005 Agreement shall be in an
amount equal to $1,202,735 pursuant to this Amendment No.1.
(d) Section 404 of the 2005 Agreement is amended by adding the following definition
immediately prior to the penultimate sentence of said Section and replacing the penultimate
sentence with the following:
; and any and all additional costs to complete the construction of the Site improvements
which costs are not otherwise provided in the HUD Capital Advance proceeds or other funds
of the Agency as may be reasonably approved by the Executive Director of the Agency
("Additional Construction Completion Costs"). For purposes hereof, the Off-Site
Improvements, the Exterior Amenity Upgrades, the Interior Amenities Upgrades and the
Additional Construction Completion Costs are collectively referred to herein as the "Agency
Grant Eligible Improvements".
Section 3. Effect of Amendment No.], Except as modified or amended by this
Amdndment No. I, all of the provisions of the 2005 Agreement shall remain in full force and effect
following the effective date of this Amendment No. I, and the 2005 Agreement, as amended by this
Amendment No. I, shall remain in full force and effect as of the date of this Amendment No. I.
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IN WlT:\ESS WHEREOF. the parties hereto have accepted and made and executed this
Amendment No. I upon the terms and conditions and with the provisions s set forth above and as of
the date tirst written above.
AGENCY
Redevelopment Agency of the City of San Bernardino,
a public body, corporate and politic
Maggie Pacheco, Executive Director
Approved as to Form and Legal Content:
v~ifU
Agency Counsel
DEVELOPER
AHEPA National Housing Corporation - AHEPA Local
Arrowhead 302 Chapter, a California non-profit organization
By:
Title
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