HomeMy WebLinkAboutR34-Economic Development Agency
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ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
FROM:
Maggie Pacheco SUBJECT:
Deputy Director/Director Housing &
Community Development 0' r . " L
October 29, 2002 , I . '.n j . . ,
HOME COMMUNITY HOUSING
DEVELOPMENT ORGANIZATION
("CHDO") - NEIGHBORHOOD
HOUSING SERVICES OF THE INLAND
EMPIRE, INC. ("NHS") AGREEMENT
DATE:
______________._..____.____h________________________________________+__..________________________.__._.__________________________h___________________.__________________________...__________________
Svnopsis of Previous Commission/CounciVCommiUee Actionls):
On September 26, 2002, the Redevelopment Committee approved and recommended that the Community Development
Commission consider this action for approval.
__________________________________~_..__________________________________.________.hh_h__________________..._.._________________.___.____________________________________________._________
Recommended Motionls):
ICommunitv Development Commission)
MOTION:
A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN
BERNARDINO APPROVING AND AUTHORIZING THE EXECUTIVE DIRECTOR OF THE
REDEVELOPMENT AGENCY TO EXECUTE THE HOME COMMUNITY HOUSING
DEVELOPMENT ORGANIZATION (CRDO) AGREEMENT BY AND BETWEEN THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND NEIGHBORHOOD
HOUSING SERVICES OF THE INLAND EMPIRE, INC. (''NHS'').
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Contact Person(s):
Maggie Pacheco
Phone:
(909) 663-1044
1-7
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: $ 110,000
Source:
HOME Funds - FY 2000 & 200 I
SIGNATURE:
'clA"Ow\?;J ?:;:-~
Magg e Pa heen, Deputy Director/Director
Housing & Community Development
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Commission/Conncil Notes:
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P:IClerical Services Depl\Margarct Parker\Agcl1da\CDC 2002\]0..21-02 CHDQ - NHS SR.doc COMMISSION MEETING AGENDA
Meeting Date: 11/04/2002
Agenda Item Nnmber: ~'1
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ECONOMIC DEVELOPMENT AGENCY
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STAFF REPORT
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HOME Communitv Housinl!
Development Orl!anization ("CHDO") Neil!hborhood Housinl! Services
of the Inland Empire. Inc. ("NHS") Al!reement
BACKGROUND:
Under the 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 more 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, new construction of single
and/or multifamily rental units. Specifically, the fundamental purpose of the HOME program is to
increase housing opportunities and improve and preserve 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 annually receives HOME funds and in 2001, the City received $1,971,000. Of this amount,
not more than 5% ($98,550) is required to be set aside for CHDO administration and capacity
building; these funds are primarily used to build and strengthen the capacity of non-profit
organizations with the ultimate goal of producing affordable housing units which will be owned and
operated by a CHDO; not less than 15% is required to be set aside and used for approved CHDO
housing activities ($295,650) such as: new housing development, acquisition and/or rehabilitation of
multifamily properties; and the remaining 80% ($1,576,800) is to be used for other housing
programs: home buyer programs, acquisition, new housing development, rehabilitation projects and
program administration. The Agency also has funds remaining for CHDO/HOME activities from
prior program years and the new program year of 2002/2003.
For several years, the Agency and Neighborhood Housing Services of the Inland Empire, Inc.
("NHS") have had a partnership to carry out housing services to the community. These services have
included, but are not limited to, administration of the Mobile Home Handy Worker Program, the
Owner Occupied Beautification Program, development of the City's first "Youth-built" housing
project on Magnolia Avenue, and amongst others, and operation of a citywide Homebuyer Education
Program. During the last fiscal year, two hundred eighty-five (285) households benefited from the
Homebuyer Education Program out of which one hundred twenty-three (123) households purchased
homes in the City. In addition, NHS owns and manages eleven (11) affordable rental housing units
within NIP Area #1. NHS purchased these 11 units with private resources, NHS equity and Agency
CHDO funds as approved by the Commission in October 2001. Seven (7) of these units have been
fully rehabilitated, are occupied and the remaining four (4) units are being rehabilitated (the
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P:\ClericaJ Services Dept\Margarct ParkeMgenda\CDC 2002\10-2]-02 CHDO - NHS SR.doc
COMMISSION MEETING AGENDA
Meeting Date: 11/0412002
Agenda Item Number: R.J'I
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Economic Development Agency
Staff Report
Page 2
"Project"). The Project should be completed by the end of 2002. These units will be maintained,
managed and operated by NHS pursuant to the terms of the Agreement with the Agency.
At the time the Staff presented this Project to the Community Development Commission, Staff
advised the Commission that the 11 units would be the beginning ofNHS's multi-family ownership
and management portfolio, and that as other multi-family housing opportunities arose, Staff and NHS
would return to the Commission for consideration and approval.
CURRENT ISSUE:
Presently, Staff and NHS desire to expand NHS's multi-family ownership, management and
operations. In order to accomplish this expansion, NHS has proposed expanding the real estate and
acquisition side of their business. In particular, NHS would like to develop a Homebuying Real
Estate Center in their newly purchased building at 1411 North D Street. This is a new building that
NHS recently purchased to accommodate their housing and neighborhood expansion plans. They
propose to hire experienced and licensed real estate personnel, including a Real Estate Manager, who
will set up a one-stop real estate service center. One of the primary functions of this division would
be to identify single-family properties in NHS' s existing ownership, to buy new real estate for resale
and to use the sale proceeds to purchase distressed existing multi-family housing units. Because of
the Mayor's desire to rebuilt and revitalize the area commonly referred to as Old Towne San
Bernardino, between 6th and 9th Streets, F and 1215, Staff and NHS have discussed the prospect of
purchasing the multiple unit complex at the northeast corner of 6th and G Street, immediately to the
west of the TELACU senior housing project and south of the proposed Jones Elementary School.
NHS has approached the owner of the property and they desire to sell. This property has 6-8 units.
One of the options that has been discussed is the demolition ofthe deteriorated multi-family complex
and developing new housing that will complement the new three-story senior housing project under
construction. However, at this time no sale has been consummated, and therefore, other properties
will be reviewed and considered for possible purchase, rehabilitation and stabilization. By February
1,2003, NHS anticipates selling 20 properties out oftheir inventory of homes and generating revenue
to allow them to acquire one to two multi-family properties for rehabilitation and maintenance by
September 2003.
NHS anticipates that their one-year start up costs for the real estate division will be approximately
$110,000 (see attached annual budget) and because their resources are presently limited, they have
requested that the Agency provide the $110,000 from the CHDO building capacity funds. NHS is
committed to continuing the funding of the real estate divisionlhomebuyer center thereafter. As
noted above, the Agency is required under the HOME federal regulations to provide resources to
approved CHDO's in order to enhance and strengthen their affordable housing operations. The NHS
request meets the eligibility requirements under the HOME program. Staff proposes that the
Commission approve NHS's request, with the proviso that NHS be required to not only establish the
one-stop real estate center and maintain it for at least three years, but to also purchase not less than 6-
8 existing housing units by a date no later than September 2003; should NHS fail to achieve this, they
will be required to repay the Agency the full amount of $110,000. Moreover, the Redevelopment
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COMMISSION MEETING AGENDA
Meeting Date: 11/04/2002
Agenda Item Number: K.Jl/
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Economic Development Agency
Staff Report
Page 3
Committee wanted to insure that in their Agreement with the Agency, that NHS would be required to
report their progress on program activity, particularly, related to the use of the funds proposed to be
allocated herein. It should also be noted that as NHS acquires and rehabilitates existing multifamily
units in the future, they will be seeking Agency assistance to bridge any financing gaps under the
HOME CHDO program referenced above.
Accordingly, Staff recommends approval of the attached Agreement. This Agreement requires NHS
to report their program/project progress to the Agency on a quarterly basis. This is a program
requirement to insure compliance with federal, state and local laws and to assess accomplishments in
a timely manner.
ENVIRONMENTAL IMPACT:
This request is exempt under the National Environmental Policy Act (NEPA) and California
Environmental Quality Act (CEQA).
FISCAL IMPACT:
Funds for this transaction are available in the Economic Development Agency's 2000-2001 and
2001-2002 HOME Federal Grant budget in the amount of$IIO,OOO.
RECOMMENDATION:
That the Communi!)) elopment Commission adopt the attached Resolution.
2d,p.~~~
Housing & Community Development
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COMMISSION MEETING AGENDA
Meeting Date: 11/04/2002
Agenda Item Nnmber: R3 '/
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RESOLUTION NO.
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A RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND
AUTHORIZING THE EXECUTIVE DIRECTOR OF THE
REDEVELOPMENT AGENCY TO EXECUTE THE HOME COMMUNITY
HOUSING DEVELOPMENT ORGANIZATION (CHDO) AGREEMENT
BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY
OF SAN BERNARDINO AND NEIGHBORHOOD HOUSING SERVICES
OF THE INLAND EMPIRE, INC. ("NHS")
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WHEREAS, the City of San Bernardino (the "City") is the recipient of the HO
Investment Partnership Act ("HOME") formula Grant from the U.S. Department of Housing an
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Urban Development ("HUD") to carry out HOME eligible activities in compliance with Title 2
11
CFR Part 92 Program Requirement ("Program"), and the Redevelopment Agency of the City 0
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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
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for and made available to designated and approved Community Housing Developmen
Organizations ("CHOOs") for operating expenses, in accordance with Program guidelines; and
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WHEREAS, Neighborhood Housing Services of the Inland Empire, Inc. ("NHS") h
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met the CHDO requirements under Title 24 CFR Subpart "A," Section 92.2 of the HOM
Program Final Rule and is eligible to receive and use HOME funds; and
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WHEREAS, NHS program activities, as provided in the CHDO Agreement date
November 4, 2002, are eligible under the HOME Program and provide benefit to individuals 0
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families that meet the income requirement of Title 24 CFR, Part 92.217 as defined as Iowan
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moderate income earning less than 80% of the Riverside/San Bernardino area median income.
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e I NOW, THEREFORE, 1HE COMMUNTIY DEVELOPMENT COMMISSION OF 1HE
2 OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS FOLLOWS:
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3 Section 1. The above recitals are true and correct.
4 Section 2. The Executive Director of the Redevelopment Agency ("Director") is hereb
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authorized and directed to execute on behalf of the Redevelopment Agency of the City of S
Bernardino the HOME CHDO Agreement by and between the Agency and Neighborhood Housin
Services of the Inland Empire, Inc. in the amount of not to exceed $110,000 to carry out HO
Community Housing Development Organization (CHDO) activities pursuant to HUD fede
regulations and specifically as provided for in the Agreement; a copy of said Agreement is attach
hereto, marked Exhibit "A" and incorporated herein by reference as though fully set forth at length.
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Section 3. The Director is authorized to make changes, clarifications, interpretations, an
additions to the Agreement, provided such changes are non-substantive and do not increase th
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monetary impact to the Agency, and as approved by Agency Special Counsel.
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I A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY
OF SAN BERNARDINO APPROVING AND AUTHORIZING THE EXECUTIVE
2 DIRECTOR OF THE REDEVELOPMENT AGENCY TO EXECUTE THE HOME
COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO) AGREEMENT BY
3 AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN
BERNARDINO AND NEIGHBORHOOD HOUSING SERVICES OF THE INLAND
4 EMPIRE, INC. ("NHS").
5
Section 4.
This Resolution shall take effect upon the date of its adoption.
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
8 thereof, held on the
day of
, 2002, by the following vote to wit:
9
AYES
NAYS
ABSTAIN ABSENT
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COMMISSION MEMBERS:
ESTRADA
LIEN
McGINNIS
DERRY
SUAREZ
ANDERSON
MCCAMMACK
II
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Secretary
The foregoing Resolution is hereby approved this
day of
,2002.
JUDITH V ALLES, Chairperson
Community Development Commission
of the City of San Bernardino
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25 Approved as to form and
legal content'
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By:
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HOME COMMUNITY HOUSING DEVELOPMENT
ORGANIZATION (CHDO) AGREEMENT
CAPACITY BUILDING FUNDS - (2000-2002 HOME CHDO Funds)
(Neighborhood Housing Services of the Inland Empire, Inc.)
("NHS")
THIS HOME AGREEMENT (the "Agreement") is made and entered into this
day of , 2002, by and between the Redevelopment Agency of the City of San
Bernardino, a corporation (hereinafter referred to as the "Agency"), located in the City of San
Bernardino and in San Bernardino County, and the Neighborhood Housing Services of the Inland
Empire, Inc. ("NHS"), located at \390 North "D" Street, San Bernardino, California 92405, 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 2000 and 2001 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, NHS 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 NHS 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 NHS 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 NHS to ensure compliance with all HOME Program requirements, and that NHS, in
its capacity as a CHDO, will comply with-all Program requirements under 24 CFR 92.
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NOW, THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS:
1.
CERTIFYING THE NONPROFIT AS A CHDO:
NHS 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
NHS 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 50 I (c) of the Internal Revenue Code of 1986, as evidenced by a 50 I (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. NHS 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,
NHS 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 year of experience in serving the
community is on file with the Agency.
C. Organizational Structure. The governing board ofNHS 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. NHS 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 NHS 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 NHS is sponsored or created by a for-profit entity, the for-profit entity
may not appoint more than one-third of the membership ofNHS's governing body, and the board
members appointed by the for-profit enti~.may not, in turn, appoint the remaining two-thirds of
the board members, as evidenced by the same.
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e D. Relationship with For-Profit Entities. NHS 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. NHS 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. NHS 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 One Hundred and Ten Thousand dollars ($110,000) (the "Grant") of the HOME
Investment Partnership funds for the capacity building and operating expenses of NHS as a
Community Housing Development Organization (CHDO) pursuant to the HOME Investments
Partnership Act and Subsection B. (1), Tasks to be Performed ("Tasks"), below, of this Section
II. Should NHS fail to perform and achieve these Tasks, NHS will be required to repay the
Agency the full amount of $11 0,000.
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B. Grant Funds and Proiected Budget: The Grant funds will be used to pay the CHDO
capacity building and operating expenses of NHS including but not limited to the costs of
salaries, wages, and other employee compensation and benefits for staffing the one-stop real
estate center; employee education, training; rent; utilities; taxes; insurance; equipment; materials
and supplies and more specifically as shown on Exhibit "A" herein. The requirements and
limitations on the receipts of these funds by CHDO's are set forth in CFR 92.300(e) and (t).
1. Tasks to be Performed:
NHS shall develop, establish, maintain and manage, for a period of not less than three (3)
years, a one-stop Real Estate Center. This Real Estate Center will be responsible for selling
NHS existing single-family housing units and/or purchasing additional single-family housing
units and reselling such housing units to generate revenue for the purpose of acquiring,
rehabilitating and managing existing distressed and problematic multi-family housing units in the
City of San Bernardino. By a date no later than September 2003, NHS shall purchase not less
than 6-8 existing multi-family housing units and shall rehabilitate such units in accordance with
Agency Rehabilitation Standards and subsequently manage and maintain such units. All Tasks
to be Performed by NHS will be solely for the purpose of improving and preserving the existing
multi-family housing stock and to protide rental opportunities to low and moderate income
households pursuant to the Program guidelines.
2. Schedule for Completion of Tasks:
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Upon execution of this Agreement, NHS agrees to commence and to complete the Tasks
outlined in this Agreement by a date no later than October 21, 2003.
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C. Other Program ReQuirements
1. NHS 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 NHS 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 Oooortunitv. 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. NHS 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 NHS must adhere to in order to carry out
the Agency's/City's affirmative marketing procedures and requirements;
(3) Procedures used by NHS 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 NHS to affirmatively
market units and records to assess the results of these actions; and
(5) A description of how NHS will assess the success of affirmative marketing
actions and what corrective actions will be taken where affirmative
marketing requirements are not met.
d. Displacement. RelocatiOIumd Acquisition. Consistent with the other goals and
objectives of this Subpart H of 24 CFR 92, NHS 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. NHS agrees to minimize displacement in
accordance with Section 92.353.
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e. Conflict of Interest. NHS 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, NHS 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:
(1) The community in which the area is situated is participating in the National
Flood Insurance Program, or less than a year has passed since FEMA
notification regarding such hazards; and
(2) Flood insurance is obtained as a condition of approval of the commitment.
If the Agency is located in an area identified by FEMA as having special
flood hazards, upon notification by the Agency or FEMA, NHS is
responsible for assuring that flood insurance under the National Flood
Insurance Program is obtained and maintained.
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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 NHS contractors, subcontractors, and
other participants must comply with regulations issued under these Acts and with
other federal applicable federal laws. The NHS will require certifications as to
compliance with the provisions of Section 92.354 before making any payment under
such contract.
3. Hold Harmless. NHS 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 NHS or any and all contractors, subcontractors,
materialmen, laborers and any other person, firm, or corporation furnishing or
supplying work, services or JillPplies 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 NHS in the
performance of this Agreement. Without limiting NHS's indemnification of Agency,
NHS shall provide and maintain at its own expense during the term ofthis 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
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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
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 ofany change or cancellation of said insurance.
D. Request for Disbursement of Grant Funds
1. NHS may request Grant funds monthly, on a reimbursement basis, for eligible costs,
on a prorata basis, up to maximum of $110,000. 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
1. The Agency will require that NHS 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. NHS 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).
ill. 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 NHS, 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 with the use of HOME funds pursuant to this Agreement, if any.
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In the event of a breach of any condition or provision hereof, the Agency shall have the right, by
prior written notice to NHS, to suspend or terminate this Agreement if NHS materially fails to
comply with any of its terms.
2. The Agency, at its discretion, may terminate this Agreement, in whole or in part, by
giving NHS 30-day written notice or in accordance with 24 CFR 85.44, which provides in part
that suspension or termination may occur if NHS 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 perfonnance 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 NHS, 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:
Neighborhood Housing Services ofthe
Inland Empire, Inc.
1390 North "D" Street
San Bernardino, CA 92405
Redevelopment Agency of the
City of San Bernardino
20 I North "E" Street, Suite 301
San Bernardino, CA 92401
Agency:
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 attornet 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 NHS, its permitted
successors and assigns, and no other person or persons shall have any right of action hereon.
p;\C\erica1 Services Dept\Marpret Plll'keMienda\Agmds-Arnend\lo..21-02 HOME Agreemel\l.doc
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F. Agencv to File Notices. NHS 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 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 tenns hereof shall be binding upon and inure to the
benefit of the successors and assigns ofthe parties hereto; provided, however, that no assignment
of NHS'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.
1. 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.
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 NHS and the Agency. The Executive Director is authorized to make
nonsubstantive changes to this Agreement as authorized by the Resolution approving this
Agreement.
M. Aporovals. Where 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 nine (9) 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.
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P. Authority. The individuals executing this Agreement and the instruments referenced
herein on behalf of NHS each represent and warrant that they have the legal power, right and
actual authority to bind NHS 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.
CHDO
NEIGHBORHOOD HOUSING SERVICES
OF THE INLAND EMPIRE. INC..
A California Nonprofit Corporation
By:
Dawkins Hodges. Executive Director
REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO ("Agency")
By:
Gary Van asdel, Executive Director
Approved as to Form and
Legal Content:
By:
Agency Special Counsel
.. .
P;\C1erica1 Services Dept\Margaret ParkcMgenda\Agrmt,..Amend\IG-2I-02 HOME Agreement.doc
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EXHIBIT "A"
NHSIE Capacity Building Grant 2002: Proposed Budget
e Program
Admin Budget Budget Total
Sources:
City of San Bernardino Capacity Grant 10,000.00 100,000.00 110,000.00 100% 100%
0%
Total Sources 10,000.00 100,000.00 110,000.00 1 00"10 100%
Uses - Operating
Personnel
Executive Director 1,500.00 1,500.00
Operations Manager 1,000.00 1,000.00
Accountant 750.00 750.00
Deputy Director 750.00 750.00
Real Estate OffICe Manager 65,000.00 65,000.00
Technical Support 2,000.00
Real Estate Staff Support 5,000.00 5,000.00
HUD Reo Staff Support 5,000.00 5,000.00
Subtotal PefSOnnel Costs 6,000.00 75,000.00 81,000.00
Fringe Benefits @ 28% 1,680.00 18,750.00 20,430.00
Total Personnel 7,680.00 93,750.00 101,430.00 92%
.',-, Nonpersonnel
e Utilities'{includes alarm) 500.00 500.00
Telephone 470.00 470.00
Insurance 600.00 600.00
Supplies 350.00 350.00
Printing & Reproduction 500.00 500.00
Postage 400.00 400.00
Advertising & Marketing 800.00 800.00
Professional Fees, Dues, Subscriptions 500.00 500.00
legal 1,250.00 1,250.00
Staff Training 2,250.00 2,250.00
Computer Software 500.00 500.00 I
License & Permits 450.00 450.00
Property Taxes
Total of Nonpersonnel Expenses 2,320.00 6,250.00 8,570.00 8%
Total Uses 10,000.00 100,000.00 110,000.00 100%
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CITY OF SAN BERNARDINO
Interoffice Memorandum
CITY CLERK'S OFFICE
Records and Information Management (RIM) Program
DATE:
November 15, 2002
TO:
Margaret Parker
FROM:
Michelle Taylor, Senior Secretary
RE:
Resolution CDC/2002-32
At the Mayor and Common Council meeting of October 7, 2002, the City of San Bernardino
adopted Resolution CDC/2002-32 - Resolution authorizing the Executive Director to execute the
Home Community Housing Development Organization (CHDO) agreement by and between the
Redevelopment Agency and Neighborhood Housing Services of the Inland Empire, Inc. (NHS).
Once the above-referenced agreement has been executed, please forward it to the City Clerk's
Office, to my attention.
If you have any questions, please do not hesitate to contact me at ext. 3206. Thank you.
Michelle Taylor
Senior Secretary
I hereby acknowledge receipt ofthis memorandum.
Signed:
:j~;; lA~hD
I I
Please sign and return
Date:
.
** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
Meeting Date (Date Adopted): 11-4 -(J;2 Item #
Vote: Ayes 1-'( Nays ..er
Change to motion to amend original documents:
e::sL\ Resolution # ~ COC/2602. - :')2::.
Abstain G-- Absent ~
Reso. # On Attachments: i/'" Contract term:
Note on Resolution of Attachment stored separately:-=
Direct City Clerk to (circle I): PUBLISH, POST, RECORD W/COUNTY
NullNoid After: ~
By: -
Date Sent to Mayor: II ~ 5" -0 :;2.-
Date of Mayor's Signature: 11- (" -O?
Date ofClerklCDC Signature: 1(-9;-0 r
Reso. Log Updated:
Seal Impressed:
---
Date MemolLetter Sent for Signature: It1k 1;)- 0 ~
60 Day Reminder Letter Sent on 30th day:
90 Day Reminder Letter Sent on 45th day:
See Attached: ___ Date Returned: II~~ - 0;:;'-
See Attached:
See Attached:
Request for Council Action & Staff Report Attached:
Updated Prior Resolutions (Other Than Below):
Updated CITY Personnel Folders (6413, 6429, 6433, 10584, 10585, 12634):
Updated CDC Personnel Folders (5557):
Updated Traffic Folders (3985, 8234, 655, 92-389):
Yes / No By
Yes No ./ By
Yes No ,/ By
Yes NO~y
Yes No_ By_
Copies Distributed to:
City Attorney
Parks & Rec.
Code Compliance Dev. Services EDA /' Finance
Police Public Services Water Others:
MIS
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:alr::..-
Date: II~ Z --(j.)-
Revised 01/12/01