HomeMy WebLinkAboutR45-Economic Development Agency CITY OF SAN BERNARDINO
ECONOMIC DEVELOPMENT AGENCY 0RIGI 'N'AL
FROM: Emil A.Marzullo SUBJECT: Submission of a Ca1HOME Program Grant
Interim Executive Director application to the State of California
Department of Housing and Community
Development for Mortgage Assistance Grant
DATE: June 9,2008 Funds.
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Synopsis of Previous Commission/Council/Committee Action(s):
On May 22, 2008, Redevelopment Committee Members Estrada and Johnson unanimously voted to recommend that the
Community Development Commission consider this action for approval.
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Recommended Motion(s):
(Community Development Commission)
Resolution of the Community Development Commission of the City of San Bernardino approving
and authorizing the Interim Executive Director of the Redevelopment Agency of the City of San
Bernardino to submit an application to the California State Department of Housing and Community
Development for funding under the Ca1HOME Program; the execution of a standard agreement, if
selected, for such funding and any amendments thereto; and any related documents necessary to
participate in the CalHOME Program.
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Contact Person(s): Carey K. Jenkins Phone: (909)663-1044
Project Area(s): N/A Ward(s): All
Supporting Data Attached: 0 Staff Report 0 Resolution(s) 0 Application❑Map(s) ❑Letter(s)
FUNDING REQUIREMENTS: Amount: $ -0- Source: N/A
Budget Authority: N/A
SIGNATURE: Fiscal Review: ct /, ,1 5c
Emil A.Marzullo,Interim xecutive Director Barbara Lindseth,Administrative Services Director
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Commission/Council Notes: �CS[7
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P:Wgendas\Comm Dev Commission\CDC 2008\06-16-08-2008 CaIHOME Program Grant SR.doc COMMISSION MEETING AGENDA
Meeting Date: 06/16/2008
Agenda Item Number: ik 45-
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
SUBMISSION OF A CALHOME PROGRAM GRANT APPLICATION TO THE STATE OF
CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR
MORTGAGE ASSISTANCE GRANT FUNDS
BACKGROUND:
The Ca1HOME Program ("Program") was funded by Proposition IC, the Housing and Emergency
Shelter Trust Fund Act of 2006. The Program provides funding for a First-Time Homebuyer
Assistance Program ("HAP"). The Program seeks to assist low- and moderate-income families
achieve the American Dream of homeownership. The Program was established under the authority of
the California Health and Safety Code. A total of$60 million will be made available over the next 3
years.
The Ca1HOME Funds will be used in conjunction with the Redevelopment Agency of the City of San
Bernardino's ("Agency") existing HAP. Under the Program, the Agency will offer down-payment
assistance of up to $60,000 to First-Time Homebuyers purchasing a home within the boundaries of the
City of San Bernardino ("City"). The Program provides a silent second trust deed at 3% simple annual
interest with no payments required. After 10 years, 50% of the Program loan is forgiven and each year
thereafter, 1/35 of the HAP loan is forgiven. After 45 years, the entire loan is forgiven. If the
homebuyer ceases to occupy the home as their primary residence, sell, refinance to cash out equity, or
convert the property to a rental unit, the then current principal and interest balance of the loan becomes
due and payable.
CURRENT ISSUE:
Based on data from the 2000 Census, the overall homeownership rate in the City for all income levels
combined was 48%, one of the lowest in the State. The homeownership rate among low-income
households was only 35%. The 2000 census data also revealed that approximately 2/3 of low-income
households living within the City boundaries were paying more than 30% of their income toward
housing. More concerning, the census data also revealed that at least 53% of these households were
actually paying more than 50% of their income toward housing. Homeownership assistance helps
increase homeownership rates for lower income households without increasing their cost for housing.
The Agency currently operates a HAP that utilizes Federal HOME Funds and Redevelopment Low
Income Housing (20% Set-Aside) Funds. The program is available to low- and moderate-income
homebuyers purchasing a home within the boundaries of the City.
The HAP has been in operation since 1994. As of December 31, 2007, a total of 1,060 low- and
moderate-income homebuyers have received assistance in achieving homeownership. During this
period, a total of$16,405,209 in down payment and closing cost assistance has been provided to these
homebuyers, leveraging total acquisition costs of$63,597,058. On average, each participant covered
approximately 72% of the cost of their homes using their own resources, through a combination of
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P:Wgendas\Comm Dev Commission\CDC 2008\06-16-08 Calhorre Program Grant SR.doc COMMISSION MEETING AGENDA
Meeting Date: 06/16/2008
Agenda Item Number:
Economic Development Agency Staff Report
Ca1HOME Program Grant
Page 2
multi-year fixed-rate mortgages and their own buyer cash down payment.
The Agency has allocated low-income housing and HOME Funds annually for the HAP. In addition,
the Agency has utilized recaptured funds from loans previously made that had been repaid to fund new
loans. With its existing capacity, the Agency was able to process 31 loans last year, for a total of
$1,968,903 in down payment assistance.
This year, the Agency has seen a significant increase in the number of HAP loans in its pipeline. Since
January 1, 2008, the Agency has closed and funded 47 loans for first-time home buyers. In addition,
the Agency has approximately 30 loan applications in various stages of the approval process. Of these,
16 should be closed and funded by June 30, 2008.
With this CalHOME grant, the Agency will be able to assist approximately 18 additional low-income
families wanting to buy their first home in the upcoming fiscal year. These are households that the
Agency would not otherwise be able to service but for this additional capital contribution.
ENVIRONMENTAL IMPACT:
The Homebuyer Assistance Program is categorically exempt under the California Environmental
Quality Act("CEQA") Guidelines.
FISCAL IMPACT:
This grant application is for $900,000 from the State of California Department of Housing and
Community Development ("State HCD") CalHOME Program. There is no fiscal impact to the
Agency.
RECOMMENDATION:
That the Community Development Commission adopt the attached Resolution.
Emil A. Marzullo, Interim xecutive Director
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P:\Agendas\Comm Dev COmmission\CDC 2008\06-16-08-2008 CaIHOME Program Grant SR.doc COMMISSION MEETING AGENDA
Meeting Date: 06/16/2008
Agenda Item Number:
C (UPD17
1 RESOLUTION NO.
2
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF
3 THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE
INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY
4 OF THE CITY OF SAN BERNARDINO TO SUBMIT AN APPLICATION TO
THE CALIFORNIA STATE DEPARTMENT OF HOUSING AND
5 COMMUNITY DEVELOPMENT FOR FUNDING UNDER THE CALHOME
PROGRAM; THE EXECUTION OF A STANDARD AGREEMENT, IF
6 SELECTED, FOR SUCH FUNDING AND ANY AMENDMENTS THERETO;
AND ANY RELATED DOCUMENTS NECESSARY TO PARTICIPATE IN
7 THE CALHOME PROGRAM
8
9 WHEREAS, the Redevelopment Agency of the City of San Bernardino ("Agency"), a
10 political subdivision of the State of California, wishes to apply for and receive an allocation of
11 funds through the CalHOME Program; and
12 WHEREAS, the California State Department of Housing and Community Development
13 (hereinafter referred to as "HCD") has issued a Notice of Funding Availability ("NOFA") for the
14 CalHOME Program established by Chapter 84, Statutes of 2000 (SB 1656 Alarcon), and codified
15 in Chapter 6 (commencing with Section 50650) of Part 2 of Division 31 of the Health and Safety
16 Code (the "Statute"), and pursuant to the statute, HCD is authorized to approve funding allocations
17 utilizing monies made available by the State Legislature to the CaIHOME Program, subject to the
18 terms and conditions of the statute and the CalHOME Program Regulations adopted by HCD in
19 April 2004; and
20 WHEREAS, the Agency seeks to submit an application to obtain from HCD, an allocation
21 of CalHOME funds in the amount of$900,000.
22 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY
23 OF SAN BERNARDINO DOES HEREBY RESOLVE,DETERMINE AND ORDER,AS FOLLOWS:
24 Section 1. The information set forth in the above recitals of this Resolution is true and
25 correct.
26 Section 2. The Agency shall submit to HCD, an application to participate in the
27 Ca1HOME Program in response to the NOFA issued on April 18, 2008 which will request a funding
28
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I allocation for a First-Time Homebuyer Mortgage Assistance Program to be implemented within the
2 boundaries of the City of San Bernardino. The Program will provide down payment assistance to
a
3 first-time, low-and moderate-income homebuyers.
I4 Section 3. If the application for funding is approved, the Agency hereby agrees to use
3
5 the Ca1HOME funds for eligible activities in the manner presented in the application as approved by
6 HCD and in accordance with program regulations cited above. The Agency shall also may execute
7 any and other instruments and documents necessary or required by HCD for participation in the
8 Ca1HOME Program.
s
9 Section 4. The Community Development Commission of the City of San Bernardino
10 ("Commission") hereby approves the application as presented at the meeting of the Commission at
1
i 11 which this Resolution is adopted and hereby authorizes the Mayor or Interim Executive Director of
12 the Agency to execute the application on behalf of the Agency, the Standard Agreement, and all
13 other documents required by HCD for participation in the Ca1HOME Program, and any amendments
14 thereto.
15 Section 5. This Resolution shall become effective immediately upon its adoption.
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RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF
I THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE
INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY
2 OF THE CITY OF SAN BERNARDINO TO SUBMIT AN APPLICATION TO
THE CALIFORNIA STATE DEPARTMENT OF HOUSING AND
3 COMMUNITY DEVELOPMENT FOR FUNDING UNDER THE CALHOME
PROGRAM; THE EXECUTION OF A STANDARD AGREEMENT, IF
4 SELECTED, FOR SUCH FUNDING AND ANY AMENDMENTS THERETO;
AND ANY RELATED DOCUMENTS NECESSARY TO PARTICIPATE IN
5 THE CALHOME PROGRAM
6
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community
7
8 Development Commission of the City of San Bernardino at a meeting
thereof, held on the day of , 2008, by the following vote to wit:
9
Commission Members: Ayes Nays Abstain Absent
10
ESTRADA
11
BAXTER
12
BRINKER
13
DERRY
14
KELLEY
15
JOHNSON
16
MC CAMMACK
17
18
19 Secretary
20 The foregoing Resolution is hereby approved this day of , 2008.
21
22 Patrick J. Morris, Chairperson
23 Community Development Commission
of the City of San Bernardino
24 Approved as to Form:
25 By: —
26 Agency ou sel
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CalHome Program
Application for General Program Funding NOFA
Mortgage Assistance * Owner-Occupied Rehabilitation
California Department of Housing and Community Development
Financial Assistance Division
P.O.Box 952054,Sacramento,CA 94252-2054
Or
1800 3rd Street,MS 390-2
Sacramento,CA 95811
916-327-3646
This application, if approved for funding, will be a part of your Standard Agreement with the Department of
Housing and Community Development (HCD). In order to be considered for funding, all sections of this
application, including attachments and exhibits, must be complete and accurate. Application forms must not
be modified. No facsimiles, incomplete applications, or application revisions will be accepted prior to, or after
the application deadline. Applications must meet all eligibility requirements upon submission. Applications
containing material internal inconsistencies will not be rated and ranked. Use Exhibit A, Attachment Checklist,
as an aid in completing the application. HCD must receive in its office a complete original application in a three
ring binder no later than 5:00 P.M.Wednesday, June 25, 20080
For purpose of this NOFA, this will be a Program NOFA which will include first-time homebuyer mortgage
assistance activities and owner-occupied activities. A separate CalHome Project NOFA to support the
development of new homeownership housing has been released separately.
Please note: applicants are eligible to apply for both a CalHome Program Grant and/or a CalHome Project
Grant. However, a household may have only one CalHome lien on it.
SECTION I. APPLICATION SUMMARY:
A. Name of Applicant: City of San Bernardino Redevelopment Agency
B. Applicant Address: 201 North "E"Street
City: San Bernardino Zip Code: 92401-1507
C. Chief Executive Name and Title: Patrick J. Morris Mayor
D. Contact Person Name and Title: Emil Marzullo, Interim Executive Director
E. Phone Number: (909)663-1044 FAX: (909)888-9413 E-Mail: emarzulloasbrda.org
F. Proposed Activity: First-Time Homebuyer Mortgage Assistance Program
You may apply for one or two program activities, the aggregate amount of both activities may not exceed the
maximum application amount, and the amount for any one activity may not be less than the minimum activity
amount, as specified in the NOFA. The maximum amount is $900,000 for most jurisdictions or 1.5 Million for
High Population Areas. Only apply for the amount that you know you can use. Recipients who do not use
at least 95% of their funds will be penalized in future funding rounds for not meeting performance goals.
Localities shall only be eligible to apply for an award of CalHome funds for a local program within its
} jurisdictional boundaries. A nonprofit corporation may propose programs in a county or counties in which
j they have operated a housing program within the past 4 years, or in a county or counties for which the
nonprofit corporation has an existing 523 technical assistance services agreement with the United States
Department of Agriculture.
P:/Clerical Services Dept/Sheme/Bnan's W0rk/2008/PmgmmApplica1i0n Calhome.doc — —
Activity: Submit Approptipte No of CalHome Cg ty or C unties,.� C T'r"acts
Attachment Number Assis#ed Units Activity Propd' 100% Rural
Pry ,... d Activity
1. FTHB Mortgage Assistance 18 San Bernardino N/A
Program
2.Owner-Occupied N/A
Rehabilitation Program
Total 18
* If your activity is located entirely within a rural census tract or non-metro county as defined in the CalHome
Program Regulations and you want to receive consideration for the rural set-aside, you must provide the census
tract or tracts or list the non-metro county information in the table above. This information can be found in
Appendix A in the training manual.
G. Proposed Grant Amount: -$ 900,000
If the grant request is over $900,000 (up to $1,500,000), the city, county or nonprofit will need to provide the
following: The name of the city or unincorporated areas of counties with a population of over 400,000. If a
County operates their programs in the small cities within the county as well as the unincorporated areas, we will
allow the aggregate population of the unincorporated areas plus these small cities to be combined for
determining the maximum award amount only where we have letters/resolutions from the included small cities
verifying the County's authority to operate with the cities. A list of cities and unincorporated areas of counties in
California with population over 400,000 is included in this application labeled Exhibit D. Please provide the
required documentation as Attachment 3_
H. Brief Description of Each Program Activity Applied for:
The City of San Bernardino Redevelopment Agency has 15 years of experience operating a
down payment assistance program which has resulted in over 1,000 low-and moderate-
income families being able to achieve the American dream of homeownership. With this
CalHome grant we will offer down payment assistance of up to $60,000, to First-Time
Homebuyers who are purchasing their home within the boundaries of the City of San
Bernardino. The City's program requires a $1,000 down payment contribution from the buyer,
but there will be no loan processing/monitoring fee. A $200 application fee is required for
each program participant. The City's program provides a silent second at 3% simple annual
interest with no payments required. After 10 years 50% of the Agency loan is forgiven. If the
homebuyer ceases to occupy the home as their primary residence, sell, refinance to cash out
equity, or convert the property to a rental unit the loan becomes due and payable.
SECTION 11. LEGISLATIVE REPRESENTATIVES:
A form is included in this application labeled Exhibit B. Please complete the information on
this form and attach as Attachment 5.
SECTION III. GOVERNING BOARD RESOLUTION:
Attach the resolution, duly executed by the governing board of the local public agency or
nonprofit corporation, granting authority to make an application to HCD for a funding
PXlerical Services Dept/Shere&Brian's Work/2008/ProgramApplication Calhome.0oc — 2 —
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commitment from the CalHome Program. Label as Attachment 6 Governing Board
Resolution. Please review the sample resolution which is included in this application package
as Exhibit C. Be sure that the resolution authorizes a signatory for submittal of this
application and the resolution is an action of the governing body of the applicant. If someone
signs the application other than the person authorized in the resolution, submit evidence that
shows that the person signing has the authorization to sign. Such evidence could be in the
form of an ordinance or code, or an opinion from the applicant's legal counsel. Include such
authorization with Attachment 6.
SECTION IV. APPLICANT INFORMATION:
A. The applicant is a (check one):[x] city [ ] County [ ] City and County[ ] Nonprofit Corporation
1. If a Nonprofit Corporation, Submit copies of:
IRS approval of 501(c) (3) status: as Attachment 7a
Secretary of State Letter of Good Standing: as Attachment 7b
Articles of Incorporation: as Attachment 7c
Bylaws: as Attachment 7d
List of names of Board of Directors as Attachment 7e
Financial Statements (for the last 2 fiscal years, one of which must be must
be audited): as Attachment 7f
SECTION V. ACTIVITY ATTACHMENT:
Applicants must complete at least one attachment:
Attachment 1, First-Time Homebuyer Mortgage Assistance, or
Attachment 2, Owner-Occupied Rehabilitation Program
These attachments are part of this application. At least one must be completed and must be
included or the application will not be complete and will be ineligible for funding consideration.
SECTION VI. APPLICANT CERTIFICATION AND COMMITMENT OF RESPONSIBILITY:
As the official designated by the governing body, I hereby certify that if approved by HCD for
a CalHome Program funding allocation, the City of San Bernardino Redevelopment Agency
(Applicant name) assumes the responsibilities specified in the CalHome Program Regulations
and certifies that:
A. It possesses the legal authority to apply for the allocation and to execute their
proposed program or project;
' B. Before committing funds to a home buyer/homeowner, it will evaluate the funding
eligibility in accordance with CalHome Program Regulations and will not invest any
more CalHome funds in combination with other governmental assistance than is
necessary to provide affordable housing;
C. The Applicant does not have any unresolved audit findings for prior HCD or
federally-funded housing or community development projects or programs.
P:/Gerical Services DepVShereeffimn's Work/2008/PmgramApplicalion Calhome.doc — 3 —
D. There are no pending lawsuits that would impact the implementation of this
program or project.
E. It will comply with all statutes and regulations governing the CalHome Program.
F. The information, statements, and attachments contained in this application are, to
the best of my knowledge and belief, true and correct.
G. It has the ability to perform the duties for the activity(s) applied for in accordance
with Section 7718 of the CalHome Program Regulations.
I authorize the Department of Housing and Community Development to contact any agency,
whether or not named in this application, which may assist in determining the capability of the
Applicant. All information contained in this application is acknowledged to be public
information. (This certification must be signed by the person authorized in the Resolution)
*Signature: Title: Mayor
Type Name: Patrick J. Morris Date: June 16, 2008
*Must be signed by authorized signatory per the resolution.
s
R/Clerical Services DepVShereeBrian's Wori 12OO8/PmgramAppticaWn Calhome Uoc —4 —
EXHIBIT A
Attachment Checklist
Please tab each attachment required by the application and place the attachments
behind the completed application in a three ring binder according to the corresponding
number listed below.
Check if Att. No. Attachment Title
Included
X 1 Program: First-time Homebuyer Mortgage Assistance Program
See Exhibit 1 of 1
2 Program: Owner-Occupied Rehabilitation Program
3 Documentation regarding population over 400,000 for requesting funds over
$900,000 (up to $1,500,000
4 Additional Documentation
X 5 Legislative List
X 6 Copy of Resolution authorizing this application. As a time-saver, the
Resolution may also authorize execution of the contract and other
documents needed to process a loan
Bonus-A Green Build Self Certification
Bonus-13 Universal Design Standards
Nonprofit corporations must provide the following information:
7a IRS approval of 501(c)(3)status
7b Copy of current certification of 501(c)(3) status with Secretary of State that is
less than one year old
7c Copy of Articles of Incorporation
7d Copy of Bylaws
7e List of officers and Board of governing body of Applicant
7f Financial Statements one of the last 2 years must be audited
PJClerical Services DeWVSheme1B63n's Work/2OMProgramApplic9hon Calhome.0oc — 5 —
Attachment 5
LEGISLATIVE REPRESENTATIVES
Indicate all Legislators who represent any portion of the proposed service area. If you have vacancies in your
legislative seats, please list your district number and district address.
A. Members of the State Assembly:
District number: 62nd District number: 63`d
Name: Wilmer A. Carter Name: Bill Emmerson
District District
Address: 335 N. Riverside Avenue Address: 10681 Foothill Blvd.. Suite#325
City: Rialto City: Rancho Cucamonga
Zip Code: 92376 Zip Code: 91730
B. Members of the State Senate:
District number: 315' District number: 32nd
Name: Bob Dutton Name: Gloria Negrete McLeod
District District
Address: 8577 Haven Ave.. Suite#210 Address: 357 W. 2"d Street. Suite#1
City: Rancho Cucamonga City: San Bernardino
Zip Code: 91730 Zip Code: 92401
C. Members of the U.S. House of Representatives:
District number: 415' District number: 43`d
Name: Jerry Lewis Name: Joe Baca
District District
Address: 1150 Brookside Ave., Suite#J-5 Address: 201 North"E" Street. Suite#102
City: Redlands City: San Bernardino
Zip Code: 92373 Zip Code: 92401
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EXHIBIT D
Cities and unincorporated areas of counties in California with population over 400,000.
• City of Los Angeles 3,864,400
• City of San Diego 1,275,100
• Unincorporated Los Angeles County 1,048,600
• City of San Jose 925,000
• City and County of San Francisco 791,600
• Unincorporated Sacramento County 616,700
• City of Long Beach 481 ,000
• Unincorporated Riverside County 465,800
• Unincorporated San Diego County 458,500
• City of Fresno 448,500
• City of Sacramento 433,400
• City of Oakland 412,200
In our current NOFA, these jurisdictions will be able to apply for an aggregate maximum
award of$1,500,000.
Regarding the situation where the County operates their programs in the small cities within
the county as well as the unincorporated areas, we would allow the aggregate population of
the unincorporated areas plus these small cities to be combined for determining the maximum
award amount only where we have letters/resolutions from the included small cities verifying
the County's authority to operate within the cities.
PIClerical Services DepUSheme/Brian's W0rW2008/PmgramApplication Calhome.doc — / —
CalHome Program Application
Attachment 1
First-Time Homebuyer Mortgage Assistance Program
This Application form is for homebuyer mortgage assistance to first-time homebuyers of new or existing
homes, or for purchase of existing homes to be rehabilitated by the homebuyer. An applicant may only apply
for funds under this attachment when it will be providing the services required in Section 7729 of the program
regulations.
SECTION I. APPLICANT INFORMATION
Name: City of San Bernardino Redevelopment Agency
SECTION 11. FIRST-TIME HOMEBUYER PROGRAM EXPERIENCE
A. Provide the following information for each year of first-time homebuyer program operation for 12
consecutive months, by calendar year. Applicant organizations should only list those homebuyer
units for which they provided the mortgage assistance services.
YEAR PERMANENT FINANCING NO.OF PURCHASE AVERAGE AMOUNT OF ASSISTANCE
FUNDING SOURCE(S) ESCROWS PROVIDED PER BUYER
UNDERWRITTEN
AND CLOSED
2007 Home/RDA 20% set aside 31 $63,513
2006 Home/RDA 20% set aside 18 $57,653
2005 Home/RDA 20% set aside 25 $46,665
2004 Home/RDA 20% set aside 16 $25,805
2003 Home/RDA 20% set aside 56 $12,294
2002 Home/RDA 20% set aside 127 $10,823.
2001 Home/RDA 20% set aside 169 $10,247.
2000 Home/RDA 20% set aside 170 $10,461.
1999 Home/RDA 20% set aside 47 $10,543.
1998 Home/RDA 20% set aside 42 $ 8,479.
B. For years 2004 through 2007, provide a narrative of applicant's history and experience with the
proposed activity, including evidence of program operation for each year listed: e.g., board
resolution authorizing the program; award letters; program financial pages from annual audit,
annual reports or other evidence that will demonstrate program operation. (Attach as Exhibit 1-1)
PJClerical Services Dept/Sheree/Bdan's Workl2008/PmgramApplicacion Calhome doc — 8 —
SECTION III. LOAN UNDERWRITING EXPERIENCE
A. For the years 2004 through 2007, the total number of homebuyer loans applicant has
underwritten and closed, which included preparation of loan documents and escrow 90
instructions. #
SECTION IV. LOAN SERVICING EXPERIENCE
A. For the years 2004 through 2007, the total number of homebuyer loans closed for which
the applicant was the named beneficiary on the loan documents. # 90
B. As of the CalHome NOFA issuance date, the total number of homeowner loans in the
applicant's portfolio. # 189
C. Number of loans identified in B. above that are being directly serviced by the applicant. # 189
D. Number of loans identified in B. above that are being serviced by a third party. # -0-
E. As of the CalHome NOFA issuance date, the total number of homebuyer loans the
applicant is servicing for another entity. # -0-
F. If there are zero loans identified in C, D and E, submit a narrative identifying how loans will be
serviced, how the servicing activities will be funded or provided and the procedures for
implementing loan servicing operations. In addition to the narrative, attach either: 1) a budget that
provides an identified source of financing, for a period of at least 5 years, for contracting loan
servicing with a third party who is in the business of loan servicing; 2) a commitment letter from a
third party, who is in the business of loan servicing, willing to provide loan servicing at no cost to the
applicant; or 3) the resume of a current employee(s) of the applicant that describes the
employee(s)'s experience in homeowner loan servicing. (Attach as Exhibit 1-2)
SECTION V. PROGRAM TARGETING
A. Number of homebuyers to be assisted with this application for CalHome funds # 18
B. Program will be operated entirely within a federally defined Qualified Census Tract(s) located
in Appendix Bin the training manual (ONLY MARK YES IF ALL HOMES TO BE ASSISTED WITH CALHOME FUNDS
SHALL BE LOCATED IN THE AREA(S)IDENTIFIED HERE):
Yes No X
Federally defined Qualified Census tract(s) No.
C. Program will be operated entirely within a designated redevelopment area under the
jurisdiction of a local Redevelopment Agency (ONLY MARK YES IF ALL HOMES TO BE ASSISTED WITH
CALHOME FUNDS SHALL BE LOCATED IN THE AREA(S)IDENTIFIED HERE):
Yes No X
Attach a redevelopment area map and indicate program location on the map. (Attach as Exhibit 1-
3)
D. Nonprofit corporations must list the county or counties in which the program will be operated.
county/counties
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E. Provide the data source used to project sales price:
Analysis of the sales prices of homes where we have provided down payment assistance, under
our existing program, with an emphasis on the sale prices of homes during the last 12 months
under the CalHome Program. Maximum sale price may not exceed the FHA Loan Limits
established for the County and the City of San Bernardino by FHA.
[X] Conventional [X] FHA [X] CaIHFA [ ] USDA-Rural Development
[ ] Federal HOME [ ] Redevelopment Agency [ ] Other
Describe the financing structure, first mortgage and any subordinate financing in addition to
CalHome that will finance the purchase of the properties.
Source of Financing Proposed Lien Position
Conventional or FHA or CaIHFA 1st
CalHome 2nd
B. Projected Average Housing Cost and Affordability:
1. Expected Average Sales Price, Less Homebuyer Equity: $ 200,000
2. Less Average CalHome Mortgage Assistance to be given: $ 50,000
3. Less Average Other Mortgage Assistance to be received, if any: $ -0-
4. Average First Mortgage: $ 150,000
5. Estimated Monthly Payment on First Mortgage (PITI): $ 1,166
6. Annual Income Needed to Support above Payment $ 46.644
(Based on the homebuyer paying 30%of gross annual income for PITI)
SECTION VII. CONTRIBUTED LABOR PROGRAMS — Self-Help, Volunteer Labor and Youth
Construction Training Labor.
Important Note: Only complete this section, if the applicant meets the two-year minimum experience
requirement for operation of a program, a minimum of 500 hours of onsite contributed construction labor
per assisted unit must be provided, and that financed purchase of homes involving this type of
construction or developed homes involving this type of construction and the entire program will be
restricted to units involving this type of construction.
A. Check if project involves any of the following types of contributed onsite construction labor:
1. Self-Help labor: Yes No X
No. of hours of guaranteed self-help onsite construction labor per unit: hrs
2. Volunteer labor: Yes No X
No. of hours of guaranteed volunteer onsite construction labor per unit: hrs
3. A youth construction skills training program: Yes No X
Name of program:
P:/Cleriwl Services Dept/She e/Bdan's Work/2008tPmgmmApplication Calhome doc _ 10 —1
No. of hours of guaranteed youth construction training onsite construction labor per unit,
provided by participants age 16 to 24 years old only:
rs
4. If the answer to A. 1, 2 or 3 above is yes, indicate the minimum number of onsite
construction labor hours ep r unit to be provided by the homebuyer: _ hrs
B. Describe the criteria for participation in your contributed labor program. (Attach as Exhibit 1-4)
C. Attach a copy of the agreement form used for the contributed labor program. (Attach as Exhibit 1-
4a)
D. Provide description of activities performed by contributed labor participants. (Attach as Exhibit 1-
4b)
E. Provide description of activities normally contracted out. (Attach as Exhibit 1-4c)
F. What percentage of total onsite construction labor per unit will be performed by contributed labor:
Please provide evidence of previous administration of the type of contributed labor program proposed
in this application. This could include, but not be limited to, the nonprofit corporation charter or a copy of
the board resolution authorizing the program supported by documentation of completed projects; or
copies of contracts with contributed labor participants. (Attach as Exhibit 1-4d)
SECTION VIII . HOMEBUYER EDUCATION
A. Does the applicant currently provide homebuyer education classes?
Yes X No
If not, describe arrangements for providing homebuyer education in Attachment 4-Additional
Documentation.
SECTION IX. BONUS POINTS - NEW POLICY OBJECTIVES
A. Targeting energy efficient homeownership: Bonus points will be given in the scoring of
this application for applicants that use their mortgage assistance loans exclusively for
transactions where the units purchased are energy efficient. The Department is
encouraging the use of Green Building features. Applicants will self certify their activity on
Form 3A and confirm that items 2, 3, 4, 5, 6, 7, 10, 11, 12, & 13 are included in the units to
be constructed, and that at least two of the remaining items (1,8 & 9) will also be included
in the units to be constructed. (Attach as Bonus Exhibit A)
Yes No X
B. Targeting homeownership units that meet universal design standards:
Bonus points will be given in the scoring of this application for applicants that use their
mortgage assistance loans exclusively for home purchase transactions where the units
purchased are developed or improved by meeting the following universal design standards:
PICAerical Services Dept/Sheree/Brian's Work/2008/Progra AppficarionCalhome.0oc — 11 —
• Provide at least one no-step entrance with beveled threshold. This may
be at the front, side or back of the unit.
• Make doorways throughout the unit-at least 32 inches wide and hallways
at least 36 inches clear width.
• Reinforce walls around the toilet, bathtub and shower stall in order that
grab bars may be added at a later time, if needed.
• Install light switches and electrical controls no higher than 48 inches and
electrical plugs no lower than 15 inches above the floor.
• Install lever handles on all doors and plumbing fixtures.
• (Attach as Bonus Exhibit B)
Yes No X
P:ICterieal Services DepV$hereelSdan's World OMProgmmAppucation Cmh meAoc — 12 —
Green Building Self-Certification Check List
Form 3A
The Department is encouraging the use of Green Building features. A new bonus category has
been added to this NOFA to reward developers that use energy efficient products that will
enhance new units. Therefore, this new bonus opportunity has been developed and included in
this NOFA. Applicants must self certify that items 2, 3, 4, 5, 6, 7, 10, 11, 12, & 13 are included in
the units to be constructed, and that at least two of the remaining items (1,8 & 9) will also be
included in the units to be constructed.
Additionally, appliances that are customarily provided with the units, such as hot water heaters
and dishwashers, or heating/cooling systems, should all meet the ENERGY STAR®standards.
Current Requirement Applicant Certification
Check Off Column
Site
1. Use plant and tree species that require low Two of three of items
water use in sufficient quantities and install #1,8,or 9 must be met
irrigation system using only low-flow drip, for Bonus Consideration
bubblers, or low-flow sprinklers.
Materials and Resources
2. Use engineered lumber
a. Beams and Headers Essential for Bonus
Consideration
b.Wood I-Joists or web trusses for floors and
ceilings
3. Use Oriented Strand Board (OSB) Essential for Bonus
a. Floor, Wall and Roof sheathing. Consideration
4. Provide effective air sealing.
a. Seal sole plates.
b. Seal exterior penetrations at plumbing, Essential for Bonus
P P 9• Consideration
electrical and other penetrations.
c. Seal top plate penetrations at plumbing,
electrical, cable and other penetrations.
d.Weather-strip doors and attic access
openings.
e. Seal penetrations in interior equipment
closets and rooms.
f. Seal around bathtub drain penetrations in
raised floors.
5. Install and flash windows in compliance with Essential for Bonus
window installation protocols. Consideration
6. Exterior Doors Essential for Bonus
a. Insulated or solid core. Consideration
b. Flush, paint or stain grade shall be metal
clad or have hardwood faces.
c. Factory primed on six sides with a one year
warranty.
7. Select durable non-combustible roofing
materials which carry a three-year contractor Essential for Bonus
Consideration
installation guarantee.
Energy Efficiency
8. Install ENERGY STAR®Ceiling Fans in Two of three of items
living areas and all bedrooms; install a whole #1,8,or 9 must be met
house fan with insulated louvers; or install an for Bonus Consideration
economizer.
9. Install ENERGY STAR®appliances in each Two of three of items
-- P:ICledcal Services Dept/ShereelBnan's W0rW200WMgramAppliMion Calhome doc — 1 3 —
unit, including but not limited to; #1,8,or 9 must be met
a. Dishwashers for Bonus Consideration
4D b. Refrigerators
c. Clothes washers
10. Install gas storage water heater with an
Energy Factor(EF)of 0.62 or greater and a Essential for Bonus
Consideration
capacity of at least 30 gallons for one-and two-
bedroom units and 40 gallons for three-
bedroom units or larger.
Water Efficiency
11. Use water saving fixtures or flow restrictors.
a. Kitchen and Service Areas <2 gallons per Essential for Bonus
m consideration
minute (gpm).
b. Bathroom Sinks < = 1.5 gallons per minute
(9pm).
c. Showers and Bathtubs < =2.5 gallons per
minute m .
Indoor Environmental Quality
12. Use Low-VOC paint and stain.
a. Flat interior wall/ceiling paints & stains < Essential for Bonus
Consideration
50gpl VOCs.
b. Non-flat wall/ceiling paints & stains <150gpl
VOCs.
13. Floor coverings
a. Light and medium traffic areas shall have vinyl Essential for Bonus
Consideration
or linoleum at least 3/32" in thickness.
b. Heavy traffic areas shall have vinyl or linoleum
at least 1/8"in thickness.
c. Carpet shall comply with U.S. Department of
Housing and Urban Development/Federal
Housing Administration UM 44C, or
alternatively, cork, bamboo, linoleum, or
hardwood floors shall be provided in all other
floor areas.
PJONW 5WV1as bpMt CAMM ax - 14-
EXHIBIT 1 OF 1
The City of San Bernardino Redevelopment Agency currently operates a Homeownership Assistance
Program (HAP) that utilizes Federal HOME funds and Redevelopment Low Income Housing (20%
Set-Aside) funds. The program is available to low- and moderate-income homebuyers purchasing a
home within the boundaries of the City of San Bernardino.
This program has been in operation since 1994. As of December 31, 2007, a total of 1,060 low- and
moderate-income homebuyers had received assistance in achieving the American Dream of
homeownership. A total of $16,405,209 in down payment and closing cost assistance was provided
to these homebuyers, leveraging total acquisition costs of $63,597,058. On average, participant's
covered 72% of the cost of their homes using their own resources, through a combination of 30 year
fixed-rate mortgages and their own buyer cash down payment.
The City Redevelopment Agency has allocated RDA low-income housing and HOME funds annually
for this program. In addition, RDA utilized recaptured funds from loans previously made that had
been paid off to fund additional loans. With our existing capacity, we were able to process 31 loans
last year, with a total amount spent of $1,968,903 dollars in down payment assistance.
Based on data from 2000 Census, the overall homeownership rate in the City of San Bernardino for
all income levels combined was 48%, one of the lowest in the State. The homeownership rate among
w-income households was only 35%. The 2000 census data also revealed that approximately 65%
of low-income households living within the City boundaries were paying more than 30% of their
income toward housing. The census data also revealed that at least 53% of these households were
actually paying more than 50% of their income toward housing. Homeownership assistance helps
increase homeownership rates for lower income households without increasing their cost for housing.
Feasibility of Providing Sufficient Assistance to Make Homeownership Possible:
The median home price in San Bernardino County in 2007 was $291,000. The estimated area
median income for 2007 as published by HUD is $59,200. The ratio between last year's median
home sales price and current area median household income is 5 to 1. Even though the median
price of a home is $291,000, our existing down payment program has proven there are a number of
homes that sell for substantially less, especially in the City of San Bernardino. There are many
qualified, first-time homebuyers who make 80% of area median income; who are able to purchase a
home, with approximately $60,000 of down payment assistance, the City Redevelopment Agency's
annual allocation for down payment assistance was easily spent. With this CalHome grant, we will be
able to assist 18 additional low income families wanting to buy their first home.
R/Clerical Services DepVSheme/Brian's WorV2008/ProgmMApp1iration Calhome doc — 1 5 —
CITY OF SAN BERNARDINO
Interoffice Memorandum
CITY CLERK'S OFFICE
Records and Information Management (RIM) Program
DATE: June 19, 2008
TO: Wasana Chantha, Executive Secretary
Economic Development Agency
FROM: Margaret Fedor, Executive Assistant to the Director
RE: Transmitting Documents for Signature—Resolution No. CDC/2008-20
At the Mayor and Common Council meeting of June 16, 2008, the City of San Bernardino
adopted Resolution No. CDC/2008-20—Resolution of the Community Development Commission
of the City of San Bernardino approving and authorizing the Interim Executive Director of the
Redevelopment Agency of the City of San Bernardino ("Agency') to submit an application to the
California State Department of Housing and Community Development for funding under the
CaIHOME Program; the execution of a Standard Agreement, if selected, for such funding and
any amendments thereto; and any related documents necessary to participate in the Ca/HOME
Program.
Attached is the signed "Application for General Program Funding NOFA" for submittal. We
have retained a copy of the application for our records.
If you have any questions,please do not hesitate to contact me at ext. 3206.
Thank you.
I hereby ackInwledge receipt of the above mentioned documents.
Signed:
PLEASE SIGN AND RETURN
Date: