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HomeMy WebLinkAboutR35-Economic Development Agency I~ : ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FROM: Maggie Pacheco Deputy Director SUBJECT: CREATIVE HOUSING SOLUTIONS, INC. (CHS) HOME CAPACITY BUILDING GRANT AGREEMENT DATE: November 7, 2003 Svnopsis of Previous Commissiou/Couucil/Committee Aclion(s): On October 23, 2003, Redevelopment Committee Members Anderson, Suarez and Estrada unanimously voted to recommend that the Community Development Commission consider this action for approval. ORlGlNA l Recommended Molion(s): MOTION: (Community Development Commission) A 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 HOME COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO) CAPACITY BUILDING GRANT AGREEMENT BY AND BETWEEN THE AGENCY AND CREATIVE HOUSING SOLUTIONS, INC. (CHS) Contact Person(s): Maggie Pacheco Phone: (909) 663-1044 All Project Area(s) All Ward(s): Supporting Data Attached: 0 Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Letters FUNDING REQUIREMENTS Amount: $ 50,000 Source: HOME Funds SIGNATURE: ~ """" Am."'" '00'''''''' WA ~ !J{~11,f:~ill Commissiou/CounciI Notes: fu_Q~__~~j_?l;Q;j~_';;_'}_____________________________________-------------------------------- P:\Agendas\Comm Dev Commission\CDC 2003\03-11-17 CHS HOMECHOO Agr SR,doc COMMISSION MEETING AGENDA Meeting Date: 11/17/2003 Agenda ltem Number: !?.3s- . . ECONOMIC DEVELOPMENT AGENCY STAFF REPORT Creative Housin!!: Solutions. Inc. (CHS) HOME Capacitv Buildin!!: Grant A!!:reement 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 augment the supply of 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 and certain nonprofit housing organizations or through experienced private housing developers. The City annually receives HOME funds and in 2003, the City received $1,749,873. Of this amount, 15% of said amount ($283,000) is required to be set aside for specific Community Housing Development Organizations (CHDOs) to own, develop, rehabilitate, sponsor, or manage affordable housing projects that meet the HOME federal requirements. In addition, cities may allocate not more than 5% ($87,493) for approved CHDO operations or to build the capacity of CHDOs; these funds are primarily used to build the capacity of CHDO organizations with the ultimate goal of producing affordable housing units which will be owned and operated by a CHDO. On March 3, 2003, the Agency executed the Single Family Residential Acquisition and Construction Grant Agreement with Creative Housing Solutions, Inc. (CHS), a nonprofit housing developer, for the development of 16 new in-fill single-family homes within the Old Towne Target Area. This Agreement was intended to assist the Agency in its goals to revitalize the Old Towne Community in concert with the School District's development of Jones Elementary School and Historical Relocation Program, the new TELACU Senior Housing on 6th and F Street, and the pending restoration of the 6th/G Street multiple-unit complex by Neighborhood Housing Services (NHS). These collaborative efforts are geared to comprehensively approach the revitalization of San Bernardino's older housing stock and add new life and housing to the core of the City, so as to complement the Agency's downtown redevelopment plans. The founders of CHS, Adam Eliason, Executive Director, and Agustin Rodriguez, founder and President of ANR, Inc., who serves in the capacity of a CHS Board Member, have extensive experience, background and financial wherewithal in developing affordable housing not only in Los Angeles County, but in the City of San Bernardino. ANR Industries has been very active in the development of affordable housing in the City, and has a strong commitment to the rejuvenation of decaying neighborhoods such as Meadowbrook. It is the experience of these two that forms the strength and backbone ofCHS. P:\Agcndas\Conun Dcv Commission\CDC 2003\03-11-17 CHS HOME CHDO Agr SR.doc COMMISSION MEETING AGENDA Meeting Date: 11/17/2003 Agenda Item Nnmber: K35" , , Economic Development Agency Staff Report CHS HOME Capacity Building Grant Agreement Page 2 In April of 2003, because of CHS's commitment to San Bernardino and the positive support of the Mayor and Council, they approached Agency Staff about expanding their affordable housing operations in the City of San Bernardino and began exploring the feasibility of becoming a certified CHDO. Staff is pleased to report that CHS now meets all the HUD requirements to be certified as a CHDO. This means that CHS is now eligible to receive HOME funding under the 15% CHDO requirement and the 5% building capacity category. One of the requirements that Staff imposed upon CHS, separate and apart from the HOME requirements, was that CHS must have a local presence and be involved in the local community. Accordingly, CHS recently located its main offices at 357 West 2nd Street, Suite 2, within the City's downtown area. In reviewing CHS's total yearly operating start up budget of approximately $393,000, CHS is requesting that the Agency grant them $50,000 ("Grant") towards their overall operating budget. In consideration for this Grant, CHS will be required to develop or rehabilitate two new single-family housing units to be sold to eligible HOME participants, or to acquire and rehabilitate or construct two units to be owned and managed by CHS, as defined by the HOME regulations, within certain designated areas such as redevelopment project areas, NIP target areas, and Old Towne, etc., within 18 months from the date the Commission approves the Grant. Should CHS fail to achieve this, they will be required to repay the Agency the full Grant amount. The Agency is expected under the HOME regulations to allocate project funds to CHS for approved future projects. ENVIRONMENTAL IMPACT: This request is exempt under the National Environmental Policy Act (NEPA) and California Environmental Quality Act (CEQA). FISCAL IMPACT: Adequate CHDO building capacity funds are available in the Economic Development Agency's 2003-2004 HOME federal grant budget. RECOMMENDATION: That the Community Development Commission adopt the attached Resolution. Maggie Pac eco, Deputy Director P:\Agendas\Comm Dev Commission\CDC 2003\03-11-17 CHS HOME CHOO Agr SR.doc COMMISSION MEETING AGENDA Meeting Date: 11117/2003 Agenda Item Number: R3S . 2 3 4 5 6 7 8 9 10 11 12 13 e 14 25 . RESOLUTIt~ rv A 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 HOME COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO) CAPACITY BUILDING GRANT AGREEMENT BY AND BETWEEN THE AGENCY AND CREATIVE HOUSING SOLUTIONS, INe. (CHS) WHEREAS, the City of San Bernardino (the "City") is the recipient of the HOM Investment Partnership Act ("HOME") formula Grant from the u.s. Department of Housing an Urban Development ("HUD") to carry out HOME eligible activities in compliance with Title 2 CFR Part 92 Program Requirement ("Program"), and the Redevelopment Agency of the City 0 San Bernardino (the "Agency") is designated as the administrator of the Program on behalf 0 the City; and WHEREAS, not more than five percent (5%) of the HOME annual allocation is set asid 15 for and made available to designated and approved Community Housing Developmen 16 Organizations ("CHDOs") for operating expenses and capacity building, in accordance wit 17 Program guidelines; and 18 WHEREAS, Creative Housing Solutions, Inc. ("CHS") has met the CHDO requirement under Title 24 CFR Subpart "A," Section 92.2 of the HOME Program Final Rule and is eligibl 19 20 to receive and use HOME funds; and 21 WHEREAS, CHS program activities are eligible under the HOME Program and provid 22 benefit to individuals or families that meet the income requirement of Title 24 CFR, Part 92.21 23 and defined as low- and moderate-income earning less than 80% of the Riverside/S 24 Bernardino area median income. -1- P:\Aceadu\Raohlllonl\RaolutloDs\200)\O.J..II-17 CHS HOME Air CDC RaG.doc e2 _13 _25 3 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF TH CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, A FOLLOWS: 4 Section 1. The Executive Director of the Redevelopment Agency ("Director") i 5 hereby authorized and directed to execute on behalf of the Redevelopment Agency of the City 0 San Bernardino the HOME CHDO Capacity Building Grant Agreement by and between th Agency and CHS in the amount of not to exceed $50,000 to carry out HOME Communi Housing Development Organization (CHDO) activities pursuant to HUD federal regulations an specifically as provided for in the Agreement; a copy of said Agreement is attached hereto marked Exhibit" A" and incorporated herein by reference as though fully set forth at length. 6 7 8 9 10 Section 2. The Director is authorized to make changes, clarifications, interpretations 11 12 and additions to the Agreement, provided such changes are nonsubstantive and do not increas the monetary impact to the Agency, and as approved by Agency Counsel. Section 3. 14 /1/ 15 /1/ 16 /1/ 17 /1/ 18 //1 19 /1/ 20 /1/ 21 /1/ 22 /1/ 23 /1/ The Resolution shall become effective immediately upon its adoption. 24 /1/ /1/ -2- P:\AlehdQ\Ruolullonl\Kesolulion.\200J\OJ-II-17 eNS HOME Air CDC Rno.doc 3 A 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 HOME COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO) CAPACITY BUILDING GRANT AGREEMENT BY AND BETWEEN THE AGENCY AND CREATIVE HOUSING SOLUTIONS, INC. (CHS) e2 4 5 6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community 7 Development Commission of the City of San Bernardino at a meeting thereof, held 8 on the day of 9 Commission Members: Aves 10 ESTRADA II LONGVILLE 12 MCGINNIS 13 DERRY . 14 SUAREZ ANDERSON 15 MC CAMMACK 16 , 2003, by the following vote to wit: Navs Abstain Absent 17 18 Rachel G. Clark, City Clerk 19 The foregoing resolution is hereby approved this day of ,2003. 20 21 23 Judith Valles, Chairperson Community Development Commission of the City of San Bernardino 22 aI Content: 24 By: .25 -3- P:\Alendu\RaoIulloRI\RellOlwtionl\200310)-ll.17 ens HO:WE AIr CDC ReIo.doc . . . COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO) HOME CAPACITY BUILDING GRANT AGREEMENT (2003-2004 HOME FUNDS) (Creative Housing Solutions, Inc. "CHS") THIS HOME AGREEMENT (the "Agreement") is made and entered into this seventeenth day of November, 2003, 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 Creative Housing Solutions, Inc. ("CHS"), located at 357 West 2nd Street, Suite 2, San Bernardino, California 92401, a community housing development organization ("CHDO") 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 2003/2004 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, CHS 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 CHS as consistent with and supportive of the Program and is consistent with the City of San Bernardino's 2001-2005 Consolidated Plan and Housing Element, and that CHS 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 CHS to ensure compliance with all HOME Program requirements, and that CHS, in its capacity as a CHDO, will comply with all Program requirements under 24 CFR 92. III III III III III P:\Cleri(:al Services DepI\Margarel\Ag~ments.Amendmel\ls\Agrmls-Amend 2003\OJ.] 1-17 CHS HOME Gl'lflt Agr.doc - I - . . . I. NOW, THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS: CERTIFYING THE NONPROFIT AS A CHDO: CHS 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 CHS has met the following requirements: 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 SOI(c) of the Internal Revenue Code of 1986, as evidenced by a SOI(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 BUD-approved audit summary. CBS has a demonstrated capacity for carrying out activities assisted with BOME 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, CBS has shown a history of serving the community where housing to be assisted with BOME funds has been used and a statement that documents at least one year of experience in serving the community is on file with the Agency. C. Organizational Structure. The governing board of CBS consists of at least 33 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. CHS 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. While CBS may be chartered by the state or a local government, the public body may not appoint more than one- third of the membership of the organization's governing board and no more than one-third of the governing board members are public officials as evidenced by charter, by-laws, or articles of incorporation. Also, if CBS is sponsored or created by a for-profit entity, the for-profit entity may not appoint more than one-third of the membership of CBS's governing body, and the board members appointed by the for-profit entity may not, in turn, appoint the remaining two-thirds of the board members, as evidenced by the same. 11/ 11/ /11 /11 P:\ClcricaI5crviees DepI\MlIfgarel\Agreemenls-Amelldmenls\Agnnts.Amend 2003\03-11-17 CHS HOME Granl Agr.doc - 2- . . . D. Relationship with For-Profit Entities. CHS 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. CHS may be sponsored or created by a for-profit entity, however: I. The for-profit entity's primary purpose does not include the development or management of housing, as evidenced in its by-laws; and 2. CHS 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. II. SCOPE OF SERVICES AND COMPENSATION A. Amount of Grant: Pursuant to the conditions being met in Section I. above, 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 CHS as a Community Housing Development Organization (CHDO) pursuant to the HOME Investments Partnership Act and Subsection B. (I), Tasks to be Performed ("Tasks"), below, of this Section II. Should CHS fail to perform and achieve these Tasks, CHS will be required to repay the Agency the full amount of $50,000. B. Grant Funds and Proiected Budget: The Grant funds will be used to pay the CHDO capacity building and operating expenses of CHS including but not limited to the costs of salaries, wages, insurance auditing, employee training, and lease payments; utilities; taxes; materials and supplies. The requirements and limitations on the receipts of these funds by CHDO's are set forth in CFR 92.300(e) and (t). I. Tasks to be Performed: CHS shall develop, or rehabilitate two single-family housing units to be sold to eligible HOME participants, or acquire and rehabilitate or construct two units to be owned and managed by CHS as defined by the HOME regulations within certain areas such as Redevelopment Project Areas, NIP Target Areas, and Old Towne Area, etc., within 18 months from the effective date of this Agreement. Should CHS fail to achieve this, they will be required to repay the Agency the full grant amount. 2. Schedule for Completion of Tasks: Upon execution of this Agreement, CHS agrees to commence and to complete the Tasks outlined above by a date no later than May 17, 2005. C. Other Program Requirements I. CHS 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 CHS does not assume. the Agency's/City's responsibility for environmental review in Section 92.352 or the P:"Clerical Services DcpI\MargamlAgreemenls-AmendmcTlIs\Agnnts-Amcnd 2003\03.] 1.17.CHS HOME Grant Agr.doc - 3 - . . . 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. CHS must adopt affirmative marketing procedures and requirements for HOME-assisted housing projects of five (5) units or more. These must include: (I) Methods for informing the public; (2) Requirements and practices that CHS must adhere to in order to carry out the Agency's/City's affirmative marketing procedures and requirements; (3) Procedures used by CHS 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 CHS to affirmatively market units and records to assess the results of these actions; and (5) A description of how CHS 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 this Subpart H of 24 CFR 92, CHS 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. CHS agrees to minimize displacement in accordance with Section 92.353. e. Conflict of Interest. CHS 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, CHS will comply with all debarment and suspension certifications. P:\Clcrical Services Depl\Margarcl\Ag~emenls-AmendmenI5\Agrmls-Amend 2003\03-] 1-17 CHS HOME Grant Agr.doc - 4- e e e 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: (I) 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, CHS 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 CHS contractors, subcontractors, and other participants must comply with regulations issued under these Acts and with other federal applicable federal laws. The CHS will require certifications as to compliance with the provisions of Section 92.354 before making any payment under such contract. 3. Hold Harmless. CHS agrees to indemnify, defend (if requested by City and/or Agency), and hold harmless the City and Agency, their boards, commissions, elected officials, officers, attorneys, agents, and employees from any and all claims and losses accruing or resulting to CHS 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 CHS in the performance of this Agreement. Without limiting CHS's indemnification of Agency, CHS 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 Agency and evidence of such programs satisfactory to Agency shall be delivered to the Executive Director of the Agency or his designee within ten (10) days of the effective date ofthis Agreement. General Liabilitv: 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 P:\ClcricaJ Services Depl\Marg~t\Agreemenls-Amcndments\Agnnts.Amcnd 2003\03-] 1-17 CHS HOME Grant Agr,doe - 5 - rn e . e other insurance maintained by the Agency/City, and shall name the Agency and 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. Reauest for Disbursement of Grant Funds I. CHS may request Grant funds monthly, on a reimbursement basis, for eligible costs, on a prorata basis, up to maximum of $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 on Exhibit "A." E. Records and Reports I. The Agency will require that CHS 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, 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. CHS 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). m. GENERAL PROVISIONS: A. Enforcement of the Agreement I. The Agency, on behalf of itself or the City, shall have the right, by prior written notice to CHS, 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 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 CHS, to suspend or terminate this Agreement if CHS 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 CHS 30-day written notice or in accordance with 24 CFR 85.44, which provides in part P:\Clerical Services DeptIMargaret\Agrecments-Amendmenls\Agrmts-Amcnd 2003\03-11-11 CHS HOME Grant Agr.doc - 6- . . . that suspension or termination may occur if CHS 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 actlVltJes of CHS, 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: Creative Housing Solutions, Inc. 357 West 2nd Street, Suite 2 San Bernardino, California 9240 I Redevelopment Agency of the City of SaD Bernardino 201 North "E" Street, Suite 301 San Bernardino, California 92401 Agency: Such addresses may be changed by notice to the other party given in the same manner as provided above. D. Attornev'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 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 City, its successors and assigns, and CHS, its permitted successors and assigns, and no other person or persons shall have any right of action hereon. F. Agency to File Notices. CHS 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. P:\Cleri'al Services DeptIMargaret\AgrccmenI5-AmcndmentsV\grmls-Amend 2003\03-11-17 CHS HOME Gran! Agr.doc - 7- . . . G. Actions. The Agency or 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 CHS's rights hereunder shall be made, voluntarily or by operation of law, without the prior written consent of Agency, and that any such assignment without said consent shall be void. 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 Invaliditv. 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. 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 CHS and the Agency. The Executive Director is authorized to make nonsubstantive changes to this Agreement as authorized by the Resolution approving this Agreement. M. Aoorovals. Where an approval or submission is required under this Agreement, such approval or submission shall be valid for purposes of this Agreement only ifmade in writing. N. Caotions 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 nine (9) pages and Exhibit "A" that constitute the entire understanding and agreement ofthe 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. Authoritv. The individuals executing this Agreement and the instruments referenced herein on behalf of CHS each represent and warrant that they have the legal power, right and actual authority to bind CHS to the terms and conditions hereof and thereof. P:\Clcricll Services DCPllMargIUC1\Agreements-Amendmenls\AsnnU.Amend 2003"03-11-17 CHS HOME Granl Agr.doc - 8 - . . . IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed the day and year first above written. CREATIVE HOUSING SOLUTIONS, INC. A California Nonprofit Corporation By(~~J2- Adam Eliason, Executive Director -- REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: Gary Van asdel, Executive Director By: Agency Counsel ...., :u ~ :3 ;", '. oJ , .,--, ;:J .'.3 . -< - , , ~ ) I C; ..... ;7i ;::J ~ ., rcJ , . ----. ~ 0 "; '" :...: ..c: C \WINDQWS\TEMP\03.11.17 CHS HOME Grant Agr doc - 9- . . . IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed the day and year first above written. CREATIVE HOUSING SOLUTIONS, INC. A California Nonprofit Corporation By.cJLt ~. A am Eliason, Executive Director REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: Gary Van asdel, Executive Director Approved as to Form and Legal Conten . By: Agency Counsel C \WINDOWSITEMPI03-1 1-17 CHS HOME Granl Agr doc - 9 - . . . IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed the day and year first above written. CREATIVE HOUSING SOLUTIONS, INC. A California Nonprofit Corporation BYC/~ .~_ Adam Eliason, Executive Director REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: Gary Van asdel, Executive Director Approved as to Form and Legal Conte : By: Agency Counsel C\WINDQW5\TEMP\OJ.II.\7 CHS HOME GrillI Agr doc -9- e SOURCES CHS Retained E8mings """"""'" ""'*- "-"-"'"'" CIy 01 s.n Betdo CHOO Capedty GrWlI City of 8M Berdo Old Town CIy of San Berdo CHOO Proied Ciy"'~OklTown ClIyol.........(Ml \IIow) _Loan Total Sources USES .......... ....... -. Total Penonnet -... 3.500 4.000 4,167 12,000 Doc'" 12,OIXI EXHIBIT "A" Creative Housing Solutions Administrative Budget Fiscal Year 2003-2004 ........ .,' FeIHN 3,500 3,500 3.500 4,167 4,187 Mlr.::o& 3.!500 4,167 '.000 12 Month cash Flow ..""'....- 3,500 3,500 4,167 4,167 13,250 '.000 ..000 23,667 19.667 19,667 19,&67 16,667 35,917 4,167 12,000 12,000 11,500 11.500 11,500 11 ,500 11,500 25% 2,875 2.875 2,875 2,875 2.875 e "'- "- 0fI0e BuiIdinQ Rent Payment UtiItieS (includes alarm) 7_ IntuIanoo - """"R_ p- JemoriaI, Repairs & Maintenance Con...nc.sJSlatn_ Travel' I. MIleage Computer Repair & Maintenance Bank Fees I. Interesl Employee Hiring Fees Meals I. EnIertainmenI -'-- licenses I. PermiIs _7.... legal I. Acctu1tingIAudits Dues & Subaatptions Sales & M.uting Oired FlRf Raia1g ~s Total DittctCosts Financing Costa ()porabo Loan p_ _LoanP_ IntereIt for Operations 1_1 Finlndng Costs Praj.a.d ~rvn and Funds R_ Pre-Oe..aIopt1..e.iC Fees Total Projec:tMI Reservw.nd funds """""'''- T .....Improvements ~Equipmenl:&F!Jniture Total Caplt.lll Costs eTotaIUMS 8ola_ 4.000 83 700 350 450 ... 150 200 150 100 200 100 100 100 150 50 115 417 700 350 450 ... 150 200 150 100 200 100 100 100 150 50 115 750 83 417 1.!500 700 350 450 ... 150 200 150 100 200 100 100 100 150 50 115 750 83 417 700 350 450 ... 150 200 150 100 200 100 100 100 150 50 115 750 83 417 ........ 4,167 26!500 18,000 18,000 ........ ....... ....... 3,500 3,500 3,500 10,000 4,167 4,167 .. 167 26,500 26,500 13,250 18,000 18,000 18,000 18,000 3.!500 7,661 70,167 52.167 80,167 38,917 11.500 11.500 11500 11.500 11,500 11,500 2,875 2.875 2,875 2.875 2,875 2,875 700 350 450 ... 150 200 150 100 200 100 100 100 150 50 115 750 83 750 83 1.!500 700 350 450 ... 150 200 150 100 200 100 100 100 150 50 115 417 700 350 450 ... 150 200 150 100 200 100 100 100 150 50 115 400 .3 30.000 417 2.000 417 6.!500 700 350 450 ... 150 200 150 100 200 100 100 100 150 50 115 400 83 30.000 700 350 450 ... 150 200 150 100 200 100 100 100 150 50 115 400 83 30.000 417 700 350 450 ... 150 200 150 100 200 100 100 100 150 50 115 400 83 30.000 417 700 350 450 ... 150 200 150 100 200 100 100 100 150 50 115 400 83 417 ,',-', 0cUM: '~:::!r "'''':f'' '....i"',~; 3.!500~'U ,::: ~~= 25,687 ',' 11!500 2.875 700 350 450 666 150 200 150 100 200 100 100 100 "., ". :11 ""~ :~, _~;I~. 417 150 f~ 1 ::~';~~~_I_: :>,;I~,;t..~}~: .'t;:1f1!1 ,~~ ~~, "".":i;'" c:?t~[;>~:- ' ;~,; ';'3,:, 400 83 30.000 ",',. ,,;i~ ' 417 "~ - .. ',~ ...... "'708 ...... ...... f..... "'708 ...... ...... ...... ...... ...... ...... _fl' 1.211 172 133 1,GM (1,u1) 13,71& m 15.388 11,_ 10.010 .ta,D11 1'" . +- ** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT ** RESOLUTION AGENDA ITEM TRACKING FORM Meeting Date (Date Adopted): 11- \'1-03 Item # l2.- 3 S Resolution # Vote: Ayes t-'! Nays -0- Abstain .e-- e Ikl 'Z.C03 - 3 f") Absent tr Change to motion to amend original documents: - Reso. # On Attachments: Contract term: NulVVoid After: - Note on Resolution of Attachment stored separately: ~ Direct City Clerk to (circle I): PUBLISH, POST, RECORD W/COUNTY By: - Date Sent to Mayor: \ \- \ '1---03 Date of Mayor's Signature: I \-Zcy-D ~ Date of Clerk/CDC Signature: I kzo-<':y,\ Reso. Log Updated: Seal Impressed: v ...-- Date MemolLetteLSent for Signature: 60 Day Reminder L;~;;S~~ 90 Day Reminder Letter Sent on 45th day: ------ ---- See Attached: See Attached: See Attached: Date Returned: - Request for Council Action & Staff Report Attached: Yes L Updated Prior Resolutions (Other Than Below): Yes Updated CITY Personnel Folders (6413, 6429, 6433, 10584, 10585, 12634): Yes Updated CDC Personnel Folders (5557): Yes Updated Traffic Folders (3985, 8234, 655, 92-389): Yes No By No.L.- By No ;/ By No / _ By No/ Copies Distributed to: City Attorney Parks & Rec. Code Compliance Dev. Services EDA ./ Finance MIS Police Public Services Water Others: Notes: BEFORE FILING. REVIEW FORM TO ENSURE ANY NOTATIONS MADE HERE ARE TRANSFERRED TO THE YEARLY RESOLUTION CHRONOLOGICAL LOG FOR FUTURE REFERENCE (Contract Term. etc.) Ready to File: _ Date: Revised 01/ 12/0 1