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HomeMy WebLinkAboutR42-Economic Development 2 CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY ORIGINAL FROM: Emil A.Marzullo SUBJECT: Amendment No. 1 to the 2006 Affordable Interim Executive Director Single-Family Disposition and Development Agreement (Home Funds — Four Agency Lots) Arroyo Valley Community Economic DATE: June 24,2008 Development Corporation, and Inland Empire —Concerned African American Churches -- - ------------------------------------------------------- Synopsis of Previous Commission/Council/Committee Action(s): On June 19, 2008, Redevelopment Committee Members Johnson, Baxter and McCammack (as an alternate for Estrada) unanimously voted to recommend that the Community Development Commission consider this action for approval. -- ---------------------------------------------- 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 ("Agency") to execute Amendment No. 1 to the 2006 Affordable Single-Family Disposition and Development Agreement (Home Funds - Four Agency Lots),by and among the Agency,Arroyo Valley Community Economic Development Corporation,and Inland Empire Concerned African American Churches(IVDA Redevelopment Project Area) ------------------------------------------------------------------------------------------------------------------------------------------------------- Contact Person(s): Musibau Arogundade Phone: (909)663-1044 Project Area(s): IVDA Ward(s): 6th Supporting Data Attached: R1 Staff Report 0 Resolution(s) 0 Agrecment(s)/Amendment(s) 0 Map(s) ❑Letter(s) FUNDING REQUIREMENTS: Amount: $ 180,000 Source: Federal HOME Grant Budget Authority: 2007-2008 Budget I Al SIGNATURE: Fiscal Review: Emil A.Marzullo, nterim Executiv Director Barbara Lindseth,Administrative Services Director ------------------------------------------------------------------------------ --------------------------------/-�---------------------------------------------------------------------------------------------------- Commission/Council Notes: ESQ �,pn / ZO ��—ate ---------------------------------------------------------------------------------- P:Wgendas\Comm Dev Commission\CDC 2008\07-07-08 Arroyo-Amendment No.I to Affordable SF SR.doc COMMISSION MEETING AGENDA Meeting Date: 07/07/2008 Agenda Item Number: S� r ECONOMIC DEVELOPMENT AGENCY STAFF REPORT AMENDMENT NO. 1 TO THE 2006 AFFORDABLE SINGLE-FAMILY DISPOSITION AND DEVELOPMENT AGREEMENT (HOME FUNDS—FOUR AGENCY LOTS)—ARROYO VALLEY COMMUNITY ECONOMIC DEVELOPMENT CORPORATION,AND INLAND EMPIRE CONCERNED AFRICAN AMERICAN CHURCHES BACKGROUND/CURRENT ISSUE: On November 20, 2006, the Community Development Commission of the City of San Bernardino ("Commission") approved the 2006 Affordable Single-Family Disposition and Development Agreement ("DDA") by and among the Redevelopment Agency of the City of San Bernardino ("Agency"), the Arroyo Valley Community Economic Development Corporation, a California non- profit benefit corporation ("Arroyo"), and the Inland Empire Concerned African American Churches, a California non-profit corporation("Churches"), to transfer four(4) Agency lots for the development of four(4) affordable single-family homes for sale to income eligible households. Since the approval of the DDA, Arroyo, who is the Developer for the Churches, submitted design and development plans for review and approval by the City in October, 2007. This was done with the intent that upon plan check approval, the Agency would transfer the parcels to Arroyo and the Churches. However, during the plan review process it became clear that the lot on the southwest corner of 17th and "J" Streets would not be suitable for a single-family development due to the City's required set-back dedications. This issue has resulted in the recommendation to use this lot as a community garden. As a result, Amendment No. 1 to the DDA is proposed to accomplish the following: 1. Transfer three (3) lots for housing development and the fourth (4th) lot for community garden because of the City's set-back requirements that made the corner lot (APN: 0144-123-46) un- developable (See attached Map); 2. Reduce the number of homes to be developed from four (4) to three (3) throughout the Agreement; 3. Reduce the downpayment assistance from $240,000 for four (4) homebuyers to $180,000 for three (3)homebuyers; 4. Revise the schedule of performance to provide additional time to complete the project; 5. Incorporate the updated construction financial commitment letter from Arrowhead Credit Union dated May 15, 2008; 6. Add a construction manager task to oversee the plans approval and project construction phases; ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- P:\Agendas\Comm Dev Commission\CDC 2008\07-07-08 Arroyo-Amendment No.1 to Affordable SF SR.doc COMMISSION MEETING AGENDA Meeting Date: 07/07/2008 Agenda Item Number: Economic Development Agency Staff Report Amendment No. 1 to Arroyo DDA Page 2 7. Revise the Affordability Covenants and Restrictions ("AC&R") to reduce the number of homes to be built from four(4)to three (3); and 8. Dedicate the corner lot (APN: 0144-123-46) as a community garden subject to Agency approval of the community garden site plan, development budget and operations and maintenance plan. ENVIRONMENTAL IMPACT: This request is exempt under the National Environmental Policy Act ("NEPA") pursuant to 24 CFR 58.35(a) and the California Environmental Quality Act ("CEQA"), pursuant to § 15332, Class 32, which consists of projects characterized as in-fill development meeting the following conditions: (a) the Project is consistent with the applicable general plan, applicable zoning designation and regulations; (b) the proposed Project occurs within city limits and is not more than five (5) acres; (c) the Project site has no value as habitat for endangered, rare or threatened species; (d) the Project would not result in any significant effects relating to traffic, noise, air quality, or water quality; and (e) the Project is adequately served by all required utilities and public services. FISCAL IMPACT: The $240,000 in Federal HOME Funds budgeted for the downpayment assistance will be reduced to $180,000 for three (3) income eligible homebuyers. RECOMMENDATION: That the Community Development Commission adopt the attached Resolution. r" Emil A. Marzullo, Interim Executive Director P:\Agendas\Comm Dev Commission\CDC 2008\07-07-08 Arroyo-Amendment No.I to A&brdable SF SR.doc COMMISSION MEETING AGENDA Meeting Date: 07/07/2008 Agenda Item Number: x a 9 r . ■ 014413121 ` •• ON a ` •• lYE A . oil Ilk, x e , 1�jw,► CITY OF SAN BERNARDINO ``�'�° } F mM.lD R 01'4'00! FAO A M.1Ne Parcri Mr: EW-ND.Anorq droop ARROYO GROUP PROPERTIES Proptr(eamW Reparea 0r Pav_R : . 6 T H WA R D AMENDMENT NO. 1 TO THE 2006 AFFORDABLE SINGLE-FAMILY DISPOSITION AND DEVELOPMENT AGREEMENT (HOME FUNDS—FOUR AGENCY LOTS) BY AND AMONG REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, A PUBLIC BODY, CORPORATE AND POLITIC AND ARROYO VALLEY COMMUNITY ECONOMIC DEVELOPMENT CORPORATION, A CALIFORNIA NON-PROFIT BENEFIT CORPORATION AND INLAND EMPIRE CONCERNED AFRICAN AMERICAN CHURCHES,A CALIFORNIA NON-PROFIT CORPORATION This Amendment No. 1 (this "Amendment") is dated as of July 7, 2008, by and among the Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic (the "Agency"), Arroyo Valley Community Development Corporation, a California non-profit benefit corporation (the "Developer"), and Inland Empire Concerned African American Churches, a California non-profit corporation (the "Participant"), and is an amendment to the Disposition and Development Agreement (the "Agreement") by and among the Agency, the Developer and the Participant, dated November 20, 2006. The Agreement is for the Purchase and sale of Agency owned property generally located at 161" and Harris Streets and 17' and "J" Streets within San Bernardino, California and referred to as Assessor's Parcel Numbers ("APN") 0144-131-21, 0144-131-36, 0144-123-03 and 0144-123-46 (the "Property"). This Amendment is entered into in consideration of the facts set forth in the following Recital Paragraphs. RECITALS WHEREAS, the Redevelopment Plan for the Inland Valley Redevelopment Project Area ("Redevelopment Plan") provides for the purchase and redevelopment of certain unimproved lands by private parties such as the Developer and the Participant for purpose of and with the intent to revitalize and redevelop areas that are adversely affected by blight; and WHEREAS, the Agency, the Developer and the Participant desire to redevelop and improve the Property, and to construct three (3) affordable single-family housing units as a project with each New Home consisting of not to exceed approximately 1,300 square foot homes with three (3) bedrooms, two (2) bathrooms, a 400 square feet attached two (2) car garage, and landscaping as further detailed in the definition of "Project" in the Agreement, to be sold to income eligible households; and 1 P:\Agendas\Agenda Attachments\Agrmts-Amend 2008\07-07-08 Arroyo and IFCAAC DDA-Amendment No.1 Final WHEREAS, the Agency, the Developer and the Participant seek to make the following modifications to the Agreement: update the definition of the "Project" as contained in Section 1 of the Agreement; reduce the number of New Homes to be produced from four (4) to three (3); reduce the down payment assistance from Two Hundred Forty Thousand Dollars ($240,000.00) for four (4) homebuyers to One Hundred Eighty Thousand Dollars ($180,000.00) for three (3) homebuyers; modify the schedule of performance set forth in Exhibit "B" to the Agreement; incorporate the Arrowhead Credit Union construction financial commitment letter, dated May 15, 2008, into the Agreement and this Amendment; add a construction manager to oversee the planning, approval, and construction phases of the Project; and revise the affordability covenants and restrictions ("AC&Rs") to reduce the number of New Homes to be built from four (4) to three (3). NOW, THEREFORE, THE AGENCY, THE DEVELOPER AND THE PARTICIPANT AMEND THE AGREEMENT AS FOLLOWS: 1. The definition of the term "Project" contained in the Agreement shall be replaced with the following: Project. The term "Project" shall mean and refer to all of the work of investigation, design, construction, improvement, modification and financing necessary in order for the Developer and the Participant to acquire the Site from the Agency as joint tenants and for the Developer and the Participant to construct three (3) affordable single-family housing units as a project with each New Home consisting of not to exceed approximately 1,300 square foot homes with three (3) bedrooms, two (2) bathrooms and a 400 square feet attached two (2) car garage to be sold to income eligible households. The Project also includes all related landscaping, driveways, utilities and any improvements which may be required by the City within the public rights-of-way adjacent to the Site. This general description of the New Homes is that which the Developer and the Participant presently intend to construct upon the Agency Lots subject to the precise size and other design details being such as may be finally approved by the City through the site development approval process. The functional elements of the Project are more particularly described in the Scope of Development and Site Improvement Plan Concept in Section 4.1 (the "Scope of Development"). 2. The number of New Homes shall be reduced from four (4) to three (3). All references to the number of New Homes in the Agreement shall be deemed to refer to three (3) New Homes instead of four(4). 3. The downpayment assistance shall be reduced from Two Hundred Forty Thousand Dollars ($240,000.00) for four (4) homebuyers to One Hundred Eighty Thousand Dollars ($180,000.00) for three (3) homebuyers. Accordingly, the definition of "Agency Downpayment Assistance" contained in the Agreement shall be replaced with the following: Agency Downpayment Assistance. The term "Agency Downpayment Assistance" shall mean and refer to the purchase money financial assistance, which the Agency may provide to Qualified Homebuyers of New Homes constructed on Agency Lots. The amount of such Agency Downpayment Assistance in favor of a particular Qualified 2 P:\Agendas\Agenda Attachments\Agrmts-Amend 2008\07-07-08 Arroyo and IECAAC DDA-Amendment No.I Final Homebuyer to purchase a New Home shall not exceed Sixty Thousand Dollars ($60,000.00), and shall not exceed One Hundred Eighty Thousand Dollars ($180,000.00), in the aggregate, in connection with the purchase by each Qualified Homebuyer of the three (3) New Homes. Nothing contained herein shall preclude the Developer and/or the Participant from requesting of the Agency such additional dollar amounts of the Agency Downpayment Assistance on a case-by-case basis which additional amounts of assistance may or may not be granted by the Agency at its sole discretion. 4. The Schedule of Performance shall be modified to provide additional time for the completion of the Project. Accordingly, Exhibit B (Schedule of Performance) to the Agreement shall be replaced with the modified Schedule of Performance attached as Exhibit "A" to this Amendment. 5. The Arrowhead Credit Union construction loan financial commitment letter, dated May 15, 2008, shall be incorporated into the Agreement and this Amendment as if fully set forth therein and herein. A copy of the Arrowhead Credit Union construction loan financial commitment letter is attached to this Amendment as Exhibit`B." 6. A construction manager shall be retained by Agency to oversee the planning, approval, and construction phases of the Project as more fully described in the Construction Manager Scope of Services attached to this Amendment as Exhibit "C." The Developer and the Participant by their approval and execution of this Amendment hereby consent to the retention of the Construction Manager by the Agency and,-agree to cooperate with the Construction Manager and to assist as may reasonably be required for the successful implementation of all elements as set forth in the Construction Manager Scope of Work. 7. Prior to any recordation, the AC&R shall be revised to reduce the number of New Homes to be built from four (4) to three (3); provided, however, that the Developer and the Participant shall provide for APN: 0144-123-46, which shall be acquired by the Developer and/or the Participant in fee title from the Agency, to used solely as a community garden by the general public with such use covenant being recorded as to such APN: 0144-123-46 with right of repurchase of said APN in favor of the Agency for failure by either the Developer and/or the Participant to comply with such use covenant. The Developer and the Participant shall cause said APN: 0144-123-46 to be rough graded for such intended use as a community garden at such time as the Developer and the Participant grade the site for the construction of a New Home on APN: 0144-123-03 and the necessary street improvements, sidewalk, curb and gutter are installed on 17th Street and"J" Street by the Developer and/or the Participant. Nothing contained herein shall require either the Developer or the Participant to make any other improvements to APN: 0144-123-46 other than the rough grading of said APN and the construction and installation of the street improvements, sidewalk, curb and gutter as may be required by the City s of San Bernardino. l 3 P:\Agendas\Agenda Attachments\Agrmts-Amend 2008\07-07-08 Arroyo and IECAAC DDA-Amendment No.I Final IN WITNESS WHEREOF, the parties have signed this Amendment as of the date first set forth below. AGENCY Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic Date: By: Emil A. Marzullo, Interim Executive Director Approved as to Form and Legal Content: By: Agency o sel DEVELOPER Arroyo Valley Community Economic Development Corporation, a California non-profit benefit corporation Date: By: Title: PARTICIPANT Inland Empire Concerned African American Churches, a California non-profit corporation Date: By: Title: 4 P:\Agendas\Agenda Attachments\Agrmts-Amend 2008\07-07-08 Arroyo and IECAAC DDA-Amendment No.I Final EXHIBIT "A" Revised Schedule of Performance (Exhibit"B" to the Agreement) 5 P:\Agendas\Agenda Attachments\Agrmts-Amend 2008\07-07-08 Arroyo and IECAAC DDA-Amendment No.1 Final EXHIBIT "A" SCHEDULE OF PERFORMANCE Execution of Amendment to Agreement On or before July 30, 2008. Agreement shall be authorized, executed and delivered by the Developer and the Participant to the Agency. Opening of Escrow On or before July 30, 2008. The Agency, the Developer and the Participant shall open the Escrow with the Title Company Evidencing of Financing On or before July 30, 2008. The Developer shall provide the Agency with financing for the Project unless extended pursuant to the Agreement. Design No later than August 15, 2008. The Developer shall prepare all plans and specifications and obtain all required permits. Evidence of Insurance Prior to the Developer and the Participant The Developer shall furnish to the Agency, or their agents commencing construction at certificate of insurance as set forth in the Site or having access to the Agency Section 4.1 of the Agreement. Lots but not later than September 30, 2008. Closing of Escrow On or before September 30, 2008. The Agency, the Developer and the Participant shall Close Escrow Commencement of Construction Upon the Close of Escrow but not later The Developer shall commence than October 30, 2008. construction of the improvements of the Site pursuant to Section 4.1. Completion of Construction No later than April 30, 2009. All improvements on the Site as well as off-site improvements shall be completed and prospective homebuyer pre-qualified. It is understood that this Schedule of Performance is subject to all of the terms and conditions of the text of the Agreement. The summary of the items in this Schedule of Performance is not intended to supersede or modify the more complete description in the text; in the event of any conflict of or inconsistency between this Schedule of Performance and the text of the Agreement, the text of the Agreement shall govern. The Developer of Agency can amend this Schedule of Performance. PAAgendas\Agenda Attachmen ts\Exhbits\2008\07-07-08 Arroyo&IECAAC Amendment-Schedule of Performance Exhibit A.doc EXHIBIT "B" Arrowhead Credit Union construction loan financial commitment letter, dated May 15, 2008 i 6 P:\AgendaAAgenda Attachments\Agmts-Amend 2008\07-07-08 Arroyo and IECAAC DDA-Amendment No.1 Final EXHIBIT "B" ARROWHEAD Dedicated to helping members build wealth May 15,2008 Mr.Raymond Turner,Chairman Inland Empire Concerned African-American Churches P.O.Box 70036 San Bernardino,CA 92411 RE:Construction Loan for the Westside Homes Project(Four Residential Units) Dear Mr.Turner: We are pleased to inform you that we have approved your request for the above-referenced loan, which is summarized below: Loan Amount: Not to exceed $1,005,411.00. Term: Maximum of 14 months. The required interest payments shall be reserved in the proceeds of this transaction. Principal and any accrued interest shall be due and payable at maturity. Rate: Variable rate based upon the prevailing Wall Street Journal Prime Rate (West Coast Edition),plus 1.00%.The current Wall Street Journal Prime Rate is 5.00%. Points: 1.00%of the loan amount. Loan Advance: Maximum of 75%of the value of the existing land plus the construction costs of the new building, based upon values provided by an appraisal. The appraisal is to be commissioned, directed, and reviewed by us prior to loan approval. Prepayment Penalty: None. Costs: Borrower to pay for all processing costs to include, but not limited to the following (amounts are estimates): appraisal $4,500, environmental report $2,500, title report(s) $2,500, Lender's legal review $3,000, loan documentation$1,500,and funds control/inspections$6,500. Appraisal and environmental fees are payable upfront. Actual cost to be determined at the time of engagement. Funds Control: To be performed by an outside disbursement company as selected by the Lender.The estimate of cost(s)shall be provided at a later date,after receipt of all of the required information for the construction project. Post Office Box 735 • San Bernardino, CA 92402 Assumable: No. Guarantors: Arroyo Valley Community Economic Development Corporation. Conditions: To include,but not limited to the following: • Appraisal of the project based on a maximum loan-to-value (LTV) of 75% of the land value and construction cost,as determined by an appraisal. The appraisal is to be ordered,reviewed,and approved by Lender. • Satisfactory Phase 1 Environmental Site Assessment(ESA) report. • Funds control and inspections to be performed by an outside company. • Construction loan documentation to be prepared by Highland Law Corporation (Robodocs),at Lender's request. • Title insurance to cover first trust deed position with construction endorsements. • Property"all risk course of construction"insurance policy. Documents Required: • CPA compiled financial statement of the Inland Empire Concerned African American Churches("IECAAC") for the year ending 12/31/2007. • Most recent quarter ending interim financial statement of IECAAC. • A more current (Copy on file is dated since 2006) and signed Affordable Single- Family Disposition and Development Agreement between the Redevelopment Agency and the Arroyo Valley Community Economic Development Corporation ("Developer")and/or any Amendments. Arrowhead Central Credit Union reserves the right in its sole discretion to cancel its commitment to make available the loan described in this letter and to terminate its obligations hereunder upon the occurrence of any material adverse changes in the financial condition of the Borrower, Guarantor, or in the event that loan documents satisfactory to us are not executed on or before August 13,2008. This commitment letter is provided to Borrower solely for the purpose described herein and may not be disclosed to, or relied upon by, any other party without the written consent of Arrowhead Central Credit Union. Sincerely, Jon Parks Vice President/Sales Manager cc: Mr.Antonio F.Dupre,President Arroyo Valley CEDC Acknowledged and accepted for: The Inland Empire African American am Date ONSTRUCTION LOAN CHECKLIS - Feasibility Study/Projections. - Project summary. - Plans and Specs. - Cost Breakdown/Budget. - Soils Report. - Environmental Assessment Report(s) (Phase I, etc.). - General contractor's resume, copy of contractor's license, financial statements, worker's compensation insurance. - Copy of the construction contract (preferably under the American Institute of Architect's Document A 10 1-1997) - Copy of the architect's contract/agreement. - Builders all risk course of construction insurance policy naming lender as "loss payee". EXHIBIT "C" Construction Manager Scope of Services } 7 P:\Agendas\Agenda Attachments\Agrmts-Amend 2008\07-07-08 Arroyo and IECAAC DDA-Amendment No.1 Final EXHIBIT "C" SCOPE OF SERVICES The Project consists of the Agency conveying and transferring fee simple title to four (4) Agency lots to a partnership consisting of Arroyo Valley Community Economic Development Corporation and the Inland Empire Concerned African American Churches (collectively,the "Developer"). This transfer of land will allow the Developer to construct up to three (3) homes with three (3) bedrooms and two (2) bathrooms. Each home will be not less than approximately 1,300 square feet and a 400 square foot attached two (2) car garage. After the homes have been constructed, the Developer will sell these homes to income eligible low-and moderate-income households. Following is a list of services the Construction Manager ("Consultant") will provide to the Agency per the terms of this Scope of Services. Each item is a separate task and will be applied to the Project if, in the determination of Agency staff, the service is relevant and necessary to ensure a positive outcome. 1. If, by the time the Agreement between Consultant and the Agency is executed and the Developer has not obtained final approval of Project plans from the City, Consultant will assist the Developer in complying with City's design requirements to ensure design plans are approved and required Project development permits are issued. Approximate Time and Cost: 6.79 hrs @ $110.00 = $747.00 2. Prior to the construction phase, in the event the Developer is unsuccessful in securing a construction loan for the Project and the Agency deems it necessary to provide such financing and approval is authorized for it, Consultant will review and verify the cost estimate prepared by the Developer for the Project. Consultant will submit any recommended changes in the cost estimate to the Agency that seem necessary in light of Developer's submittal. The estimate will be in tabular form showing item description, quantities, material cost, labor cost and total cost. Approximate Time and Cost: 11.31 hrs @$110.00 = $19245.00 3. During construction phase Consultant will work with and confirm that the Developer is complying with approved plans to ensure that a City construction inspector signs off on all on- site and off-site improvements. Approximate Time and Cost: 181.09 hrs @ $110.00 = $19,920.00 4. In the event the Agency must provide the construction financing, Consultant will review and recommend approval of all invoices and any change orders. Approximate Time and Cost: 2.26 hrs @$110.00 =$249.00 5. Consultant will provide bi-weekly Project progress reports to ensure that the Project is progressing towards completion as scheduled. Approximate Time and Cost: 22.63 hrs @ $110.00 =$2,490.00 6. Should it be necessary, coordinate meetings with the Developer and the Agency to resolve any Project related issues that may arise that cannot be resolved by Consultant and the Developer. Approximate Time and Cost: 2.26 hrs @ $110.00 = $249.00 -1 - P:\Agendas\Agenda Attachments\Exhibits\2008\07-07-08 Atroyo&IECAAC Amendment-Scope of Services Exhibit C.doc 7. Consultant will provide the Agency with the required insurance coverage as described more fully in Exhibit "C" of this Consultant Agreement. The cost for these services will be a fixed hourly fee of$110.00 with a not-to-exceed dollar figure of Twenty Four Thousand Nine-Hundred Dollars ($24,900.00) (the "Maximum Contract Amount"). In addition, a fixed unit not to exceed fee will be applied for each item 1 through 6 listed above. At the discretion of Agency staff identified in Exhibit B", the dollar amounts for each item 1 through 6 above may be transferred to other items as may be directed by Agency staff. These fixed unit fees will be paid if, in the determination of the Agency, they are required for the successful completion of the overall Project. All compensation payable under this Contract shall be payable monthly in arrears and in proportion to services performed on the total Contract for the immediately preceding month, and all compensation payable hereunder to the Consultant shall not exceed the Maximum Contract Amount. -2- P:\Agendas\Agenda Attwhments\Exhibits\2008\07-07-08 A=yo&IECAAC Amendment-Scope of Services Exhibit Cdoc COPY I RESOLUTION NO. 2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF 3 THE CITY OF SAN BERN'ARDINO APPROVING AND AUTHORIZING THE INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY 4 OF THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE AMENDMENT NO. 1 TO THE 2006 AFFORDABLE SINGLE-FAMILY 5 DISPOSITION AND DEVELOPMENT AGREEMENT (HOME FUNDS-FOUR 6 AGENCY LOTS), BY AND AMONG THE AGENCY, ARROYO VALLEY COMMUNITY ECONOMIC DEVELOPMENT CORPORATION, AND 7 INLAND EMPIRE CONCERNED AFRICAN AMERICAN CHURCHES (IVDA REDEVELOPMENT PROJECT AREA) 8 9 WHEREAS, on November 20, 2006, the Community Development Commission of the City 10 of San Bernardino ("Commission") approved and authorized the execution of the 2006 Affordable 11 Single—Family Disposition and Development Agreement (HOME Funds - Four Agency Lots) 12 ("2006 DDA") by and among the Redevelopment Agency of the City of San Bernardino 13 ("Agency"), Arroyo Valley Community Economic Development Corporation ("Arroyo"), and the 14 Inland Empire Concerned African American Churches ("Churches"); and 15 WHEREAS, the Agency, Arroyo and the Churches mutually agreed to amend the 2006 DDA 16 to provide the following: 17 1. Transfer three (3) lots for housing development and the fourth (4`h) lot for community garden 18 because of the City's set-back requirements that made the corner lot (APN: 0144-123-46) 19 un-developable (See attached Map); 20 2. Reduce the number of homes to be developed from four (4) to three (3) throughout the 21 Agreement; 22 3. Reduce the downpayment assistance from $240,000 for four (4) homebuyers to $180,000 for 23 three (3) homebuyers; 24 4. Revise the schedule of performance to provide additional time to complete the project; 25 5. Incorporate the updated construction financial commitment letter from Arrowhead Credit 26 Union dated May 15, 2008; 27 6. Add a construction manager task to oversee the plans approval and project construction 28 phases; 1 P.\ARendas\Resolut ions\Resolutions\2008`.07-07-08 Arroyo&Churches Amend.No I to DDA CDC Reso.doc 1 7. Revise the Affordability Covenants and Restrictions ("AC&R") to reduce the number of 2 homes to be built from four(4) to three (3); and 3 8. Dedicate the corner lot (APN: 0144-123-46) as a community garden subject to Agency 4 approval of the community garden site plan, development budget and operations and 5 maintenance plan., and 6 WHEREAS, the Project is exempt under the National Environmental Protection Act 7 ("NEPA") per 24 CFR 58.35(a) and the California Environmental Quality Act ("CEQA'') pursuant 8 to Section 15332, Class 32. 9 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE 10 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS 11 FOLLOWS: 12 Section 1. The Commission hereby approves Amendment No. 1 to the 2006 DDA and 13 authorize the Interim Executive Director of the Agency to execute Amendment No. 1 to the 2006 14 DDA and to make changes provided said changes are not substantive in nature and do not increase 15 the Agency's financial contribution to the Project, and as approved by Agency Counsel. 16 Section 2. The Commission hereby finds and determines that no further environmental 17 review of Amendment No. 1 to the 2006 DDA is necessary, at this time, under CEQA and NEPA. 18 Section 3. This Resolution shall become effective immediately upon its adoption. 19 20 21 22 23 24 25 26 27 28 2 P.`,4gendas\Resolutions'Resolutions`2008':07-07-08 Arroyo&Churches Amend No I to DDA CDC Reso.doc 1 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE 2 INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY 3 OF THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE AMENDMENT NO. 1 TO THE 2006 AFFORDABLE SINGLE-FAMILY 4 DISPOSITION AND DEVELOPMENT AGREEMENT (HOME FUNDS-FOUR AGENCY LOTS), BY AND AMONG THE AGENCY, ARROYO VALLEY 5 COMMUNITY ECONOMIC DEVELOPMENT CORPORATION, AND INLAND EMPIRE CONCERNED AFRICAN AMERICAN CHURCHES (IVDA 6 REDEVELOPMENT PROJECT AREA) 7 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community 8 Development Commission of the City of San Bernardino at a meeting 9 thereof, held on the day of , 2008, by the following vote to wit: 10 Commission Members: Armes Nays Abstain Absent 11 ESTRADA 12 BAXTER 13 BRINKER 14 DERRY 15 KELLEY 16 JOHNSON 17 MC CAMMACK 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 Cou4el 27 28 3 P.Wgendas\Resolutions\Resolutions`,2008107-07-08 Arroyo&Churches Amend.No 1 to DDA CDC Reso.doc AMENDMENT NO. 1 TO THE 2006 AFFORDABLE SINGLE-FAMILY DISPOSITION AND DEVELOPMENT AGREEMENT (HOME FUNDS— FOUR AGENCY LOTS) BY AND AMONG REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, A PUBLIC BODY, CORPORATE AND POLITIC AND ARROYO VALLEY COMMUNITY ECONOMIC DEVELOPMENT CORPORATION, A CALIFORNIA NON-PROFIT BENEFIT CORPORATION AND INLAND EMPIRE CONCERNED AFRICAN AMERICAN CHURCHES, A CALIFORNIA NON-PROFIT CORPORATION This Amendment No. 1 (this '`Amendment') is dated as of July 7, 2008, by and among the Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic (the "Agency"), Arroyo Valley Community Development Corporation, a California non-profit benefit corporation (the "Developer"), and Inland Empire Concerned African American Churches, a California non-profit corporation (the "Participant"), and is an amendment to the Disposition and Development Agreement (the "Agreement') by and among the Agency, the Developer and the Participant, dated November 20, 2006. The Agreement is for the purchase and sale of Agency owned property generally located at 16`h and Harris Streets and 17` and "J" Streets within San Bernardino, California and referred to as Assessor's Parcel Numbers ("APN") 0144-131-21, 0144-131-36, 0144-123-03 and 0144-123-46 (the "Property"). This Amendment is entered into in consideration of the facts set forth in the following Recital Paragraphs. RECITALS WHEREAS, the Redevelopment Plan for the Inland Valley Redevelopment Project Area ("Redevelopment Plan") provides for the purchase and redevelopment of certain unimproved lands by private parties such as the Developer and the Participant for purpose of and with the intent to revitalize and redevelop areas that are adversely affected by blight; and WHEREAS, the Agency, the Developer and the Participant desire to redevelop and improve the Property, and to construct three (3) affordable single-family housing units as a project with each New Home consisting of not to exceed approximately 1,300 square foot homes with three (3) bedrooms, two (2) bathrooms, a 400 square feet attached two (2) car garage, and landscaping as further detailed in the definition of "Project" in the Agreement, to be sold to income eligible households; and 1 P 1Agendas\.Agenda Attachments�Agrmts-Amend 2008`07-07-08.Arroyo and IECAAC DDA-Amendment No 1 final WHEREAS, the Agency, the Developer and the Participant seek to make the following modifications to the Agreement: update the definition of the `'Project" as contained in Section I of the Agreement; reduce the number of New Homes to be produced from four (4) to three (3); reduce the down payment assistance from Two Hundred Forty Thousand Dollars ($240,000.00) for four (4) homebuyers to One Hundred Eighty Thousand Dollars ($180,000.00) for three (3) homebuyers; modify the schedule of performance set forth in Exhibit "B" to the Agreement; incorporate the Arrowhead Credit Union construction financial commitment letter, dated May 15, 2008, into the Agreement and this Amendment; add a construction manager to oversee the planning, approval, and construction phases of the Project; and revise the affordability covenants and restrictions ("AC&Rs") to reduce the number of New Homes to be built from four (4) to three (3). NOW, THEREFORE, THE AGENCY, THE DEVELOPER AND THE PARTICIPANT AMEND THE AGREEMENT AS FOLLOWS: 1. The definition of the term "Project" contained in the Agreement shall be replaced with the following: Project. The term "Project" shall mean and refer to all of the work of investigation, design, construction, improvement, modification and financing necessary in order for the Developer and the Participant to acquire the Site from the Agency as joint tenants and for the Developer and the Participant to construct three (3) affordable single-family housing units as a project with each New Home consisting of not to exceed approximately 1,300 square foot homes with three (3) bedrooms, two (2) bathrooms and a 400 square feet attached two (2) car garage to be sold to income eligible households. The Project also includes all related landscaping, driveways, utilities and any improvements which may be required by the City within the public rights-of-way adjacent to the Site. This general description of the New Homes is that which the Developer and the Participant presently intend to construct upon the Agency Lots subject to the precise size and other design details being such as may be finally approved by the City through the site development approval process. The functional elements of the Project are more particularly described in the Scope of Development and Site Improvement Plan Concept in Section 4.1 (the "Scope of Development"). 2. The number of New Homes shall be reduced from four (4) to three (3). All references to the number of New Homes in the Agreement shall be deemed to refer to three (3) New Homes instead of four(4). 3. The downpayment assistance shall be reduced from Two Hundred Forty Thousand Dollars ($240,000.00) for four (4) homebuyers to One Hundred Eighty Thousand Dollars ($180,000.00) for three (3) homebuyers. Accordingly, the definition of "Agency Downpayment Assistance" contained in the Agreement shall be replaced with the following: Agency Downpayment Assistance. The term "Agency Downpayment Assistance" shall mean and refer to the purchase money financial assistance, which the Agency may provide to Qualified Homebuyers of New Homes constructed on Agency Lots. The amount of such Agency Downpayment Assistance in favor of a particular Qualified 2 P:�Agendas!Agenda Attachments\Agrmts-Amend 2008',07-07-08 Arroyo and IECAAC DDA-Amendment No I Final Homebuyer to purchase a New Home shall not exceed Sixty Thousand Dollars ($60,000.00), and shall not exceed One Hundred Eighty Thousand Dollars ($180,000.00), in the aggregate, in connection with the purchase by each Qualified Homebuyer of the three (3) New Homes. Nothing contained herein shall preclude the Developer and/or the Participant from requesting of the Agency such additional dollar amounts of the Agency Downpayment Assistance on a case-by-case basis which additional amounts of assistance may or may not be granted by the Agency at its sole discretion. 4. The Schedule of Performance shall be modified to provide additional time for the completion of the Project. Accordingly, Exhibit B (Schedule of Performance) to the Agreement shall be replaced with the modified Schedule of Performance attached as Exhibit "A" to this Amendment. 5. The Arrowhead Credit Union construction loan financial commitment letter, dated May 15, 2008, shall be incorporated into the Agreement and this Amendment as if fully set forth therein and herein. A copy of the Arrowhead Credit Union construction loan financial commitment letter is attached to this Amendment as Exhibit"B." 6. A construction manager shall be retained by Agency to oversee the planning, approval, and construction phases of the Project as more fully described in the Construction Manager Scope of Services attached to this Amendment as Exhibit "C." The Developer and the Participant by their approval and execution of this Amendment hereby consent to the retention of the Construction Manager by the Agency and agree to cooperate with the Construction Manager and to assist as may reasonably be required for the successful implementation of all elements as set forth in the Construction Manager Scope of Work. 7. Prior to any recordation, the AC&R shall be revised to reduce the number of New Homes to be built from four (4) to three (3); provided, however, that the Developer and the Participant shall provide for APN: 0144-123-46, which shall be acquired by the Developer and/or the Participant in fee title from the Agency, to used solely as a community garden by the general public with such use covenant being recorded as to such APN: 0144-123-46 with right of repurchase of said APN in favor of the Agency for failure by either the Developer and/or the Participant to comply with such use covenant. The Developer and the Participant shall cause said APN: 0144-123-46 to be rough graded for such intended use as a community garden at such time as the Developer and the Participant grade the site for the construction of a New Home on APN: 0144-123-03 and the necessary street improvements, sidewalk, curb and gutter are installed on 17th Street and"J" Street by the Developer and/or the Participant. Nothing contained herein shall require either the Developer or the Participant to make any other improvements to APN: 0144-123-46 other than the rough grading of said APN and the construction and installation of the street improvements, sidewalk, curb and gutter as may be required by the City of San Bernardino. 3 P'\Agendas\Agenda Attachments\Agrmts-Amend 2008\07-07-08 Arroyo and IECAAC DDA-Amendment No.1 Final IN WITNESS WHEREOF, the parties have signed this Amendment as of the date first set forth below. AGENCY Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic Date: By: Emil A. Marzullo, Interim Executive Director Approved as to Form and Legal Content: IN J By: i 14< .may Agency Cot sel DEVELOPER Arroyo Valley Community Economic Development Corporation, a California non-profit benefit corporation Date: By: Title: PARTICIPANT Inland Empire Concerned African American Churches, a California non-profit corporation Date: By: Title: 4 P.IAgendas\Agenda Attachments\Agrmts-Amend 2008\07-07-08 Arroyo and I.CAAC DD.A-Amendment No I Final _ EXHIBIT "A" Revised Schedule of Performance (Exhibit "B" to the Agreement) 5 PAAgendas\Agenda Attachments\Agrmts-Amend 2008\07-07-08 Arroyo and IECAAC DDA-Amendment No 1 Final EXHIBIT "A" SCHEDULE OF PERFORMANCE Execution of Amendment to Agreement On or before July 30, 2008. Agreement shall be authorized, executed and delivered by the Developer and the Participant to the Agency. Opening of Escrow On or before July 30, 2008. The Agency, the Developer and the Participant shall open the Escrow with the Title Company Evidencing of Financing On or before July 30, 2008. The Developer shall provide the Agency with financing for the Project unless extended pursuant to the Agreement. Desi n No later than August 15, 2008. The Developer shall prepare all plans and specifications and obtain all required permits. Evidence of Insurance Prior to the Developer and the Participant The Developer shall furnish to the Agency, or their agents commencing construction at certificate of insurance as set forth in the Site or having access to the Agency Section 4.1 of the Agreement. Lots but not later than September 30, 2008. Closing of Escrow On or before September 30, 2008. The Agency, the Developer and the Participant shall Close Escrow Commencement of Construction Upon the Close of Escrow but not later The Developer shall commence than October 30, 2008. construction of the improvements of the Site pursuant to Section 4.1. Completion of Construction No later than April 30, 2009. All improvements on the Site as well as off-site improvements shall be completed and prospective homebuyer pre-qualified. It is understood that this Schedule of Performance is subject to all of the terms and conditions of the text of the Agreement. The summary of the items in this Schedule of Performance is not intended to supersede or modify the more complete description in the text; in the event of any conflict of or inconsistency between this Schedule of Performance and the text of the Agreement, the text of the Agreement shall govern. The Developer of Agency can amend this Schedule of Performance. PAAgendas\Agenda A ttachments\Exhibits\2008\07-07-08 Arroyo&IECAAC Amendment-Schedule of Performance Exhibit A.doc EXHIBIT "B" Arrowhead Credit Union construction loan financial commitment letter, dated May 15, 2008 6 P:\Agendas\Agenda Attachments\Agrmts-Amend 2009\07-07-09 Arroyo and[ECAAC DDA-Amendment No.I Final s EXHIBIT "B" ARROWHEAD Dedicared to helping members build wealth, May 15, 2008 Mr. Raymond Turner,Chairman Inland Empire Concerned African-American Churches P.O. Box 70036 San Bernardino,CA 92411 RE: Construction Loan for the Westside Homes Project(Four Residential Units) Dear Mr.Turner: We are pleased to inform you that we have approved your request for the above-referenced loan, which is summarized below: Loan Amount: Not to exceed $1,005,411.00. Term: Maximum of 14 months. The required interest payments shall be reserved in the proceeds of this transaction. Principal and any accrued interest shall be due and payable at maturity. Rate: Variable rate based upon the prevailing Wall Street Journal Prime Rate (West Coast Edition), plus 1.00%. The current Wall Street Journal Prime Rate is 5.00%. Points: 1.00%of the loan amount. Loan Advance: Maximum of 75% of the value of the existing land plus the construction costs of the new building, based upon values provided by an appraisal. The appraisal is to be commissioned, directed, and reviewed by us prior to loan approval. Prepayment Penalty: None. Costs: Borrower to pay for all processing costs to include, but not limited to the following (amounts are estimates): appraisal $4,500, environmental report $2,500, title report(s) $2,500, Lender's legal review $3,000, loan documentation$1,500,and funds control/inspections$6,500. Appraisal and environmental fees are payable upfront. Actual cost to be determined at the time of engagement. Funds Control: To be performed by an outside disbursement company as selected by the Lender.The estimate of cost(s)shall be provided at a later date,after receipt of all of the required information for the construction project. Post Office Box 735 • San Bernardino. CA 92402 Assumable: No. Guarantors: Arroyo Valley Community Economic Development Corporation. Conditions: To include, but not limited to the following: • Appraisal of the project based on a maximum loan-to-value (LTV) of 75% of the land value and construction cost, as determined by an appraisal. The appraisal is to be ordered,reviewed,and approved by Lender. • Satisfactory Phase 1 Environmental Site Assessment(ESA) report. • Funds control and inspections to be performed by an outside company. • Construction loan documentation to be prepared by Highland Law Corporation (Robodocs),at Lender's request. • Title insurance to cover first trust deed position with construction endorsements. • Property"all risk course of construction"insurance policy. Documents Required: • CPA compiled financial statement of the Inland Empire Concerned African American Churches("IECAAC") for the year ending 12/31/2007. • Most recent quarter ending interim financial statement of IECAAC. • A more current (Copy on file is dated since 20067 and signed Affordable Single- Family Disposition and Development Agreement between the Redevelopment Agency and the Arroyo Valley Community Economic Development Corporation ("Developer") and/or any Amendments. Arrowhead Central Credit Union reserves the right in its sole discretion to cancel its commitment to make available the loan described in this letter and to terminate its obligations hereunder upon the occurrence of any material adverse changes in the financial condition of the Borrower, Guarantor, or in the event that loan documents satisfactory to us are not executed on or before August 13,2008. This commitment letter is provided to Borrower solely for the purpose described herein and may not be disclosed to, or relied upon by, any other party without the written consent of Arrowhead Central Credit Union. Sin '71y, Jon Parks Vice President/Sales Manager cc: Mr.Antonio F. Dupre, President Arroyo Valley CEDC Acknowledged and accepted for: The Inland Empire African American Date ONSTRUCTION LOAN CHECKLIS - Feasibility Study/Projections. - Project summary. - Plans and Specs. - Cost Breakdown/Budget. - Soils Report. - Environmental Assessment Report(s) (Phase I, etc.). - General contractor's resume, copy of contractor's license, financial statements, worker's compensation insurance. - Copy of the construction contract (preferably under the American Institute of Architect's Document A 10 1-1997) - Copy of the architect's contract/agreement. - Builders all risk course of construction insurance policy naming lender as "loss payee". NOWL- • I EXHIBIT "C" Construction Manager Scope of Services 7 PAAgcnda§iAgcnda Attachments\Agrmts-Amend 2008\07-07-08 Aaoyo and IECAAC DDA-Amendment No.1 Final I EXHIBIT "C" SCOPE OF SERVICES R The Project consists of the Agency conveying and transferring fee simple title to four (4) Agency lots to a partnership consisting of Arroyo Valley Community Economic Development Corporation and the Inland Empire Concerned African American Churches (collectively, the "Developer"). This transfer of land will allow the Developer to construct up to three (3) homes with three (3) bedrooms and two (2) bathrooms. Each home will be not less than approximately 1,300 square feet and a 400 square foot attached two (2) car garage. After the homes have been constructed, the Developer will sell these homes to income eligible low- and moderate-income households. Following is a list of services the Construction Manager ("Consultant") will provide to the Agency per the terms of this Scope of Services. Each item is a separate task and will be applied to the Project if, in the determination of Agency staff, the service is relevant and necessary to ensure a positive outcome. 1. If, by the time the Agreement between Consultant and the Agency is executed and the Developer has not obtained final approval of Project plans from the City, Consultant will assist - the Developer in complying with City's design requirements to ensure design plans are approved and required Project development permits are issued. Approximate Time and Cost: 6.79 hrs @ $110.00 = $747.00 2. Prior to the construction phase, in the event the Developer is unsuccessful in securing a construction loan for the Project and the Agency deems it necessary to provide such financing and approval is authorized for it, Consultant will review and verify the cost estimate prepared by the Developer for the Project. Consultant will submit any recommended changes in the cost estimate to the Agency that seem necessary in light of Developer's submittal. The estimate will be in tabular form showing item description, quantities, material cost, labor cost and total cost. Approximate Time and Cost: 11.31 hrs @ $110.00 = $1,245.00 3. During construction phase Consultant will work with and confirm that the Developer is complying with approved plans to ensure that a City construction inspector signs off on all on- site and off-site improvements. Approximate Time and Cost: 181.09 hrs @ $110.00 = $19,920.00 4. In the event the Agency must provide the construction financing, Consultant will review and recommend approval of all invoices and any change orders. Approximate Time and Cost: 2.26 hrs @ $110.00 =$249.00 5. Consultant will provide bi-weekly Project progress reports to ensure that the Project is progressing towards completion as scheduled. Approximate Time and Cost: 22.63 hrs @ $110.00 = $2,490.00 6. Should it be necessary, coordinate meetings with the Developer and the Agency to resolve any Project related issues that may arise that cannot be resolved by Consultant and the Developer. Approximate Time and Cost: 2.26 hrs @ $110.00 = $249.00 - 1 - P-\Agendas\Agenda Attachments\Exhibits\2008\07-07-08 Arroyo&IECAAC Amendment-Scope of Services Exhibit C.doc 7. Consultant will provide the Agency with the required insurance coverage as described more fully in Exhibit "C" of this Consultant Agreement. The cost for these services will be a fixed hourly fee of$110.00 with a not-to-exceed dollar figure of Twenty Four Thousand Nine-Hundred Dollars ($24,900.00) (the "Maximum Contract Amount"). In addition, a fixed unit not to exceed fee will be applied for each item 1 through 6 listed above. At the discretion of Agency staff identified in Exhibit "B", the dollar amounts for each item 1 through 6 above may be transferred to other items as may be directed by Agency staff. These fixed unit fees will be paid if, in the determination of the Agency, they are required for the successful completion of the overall Project. All compensation payable under this Contract shall be payable monthly in arrears and in proportion to services performed on the total Contract for the immediately preceding month, and all compensation payable hereunder to the Consultant shall not exceed the Maximum Contract Amount. -2- P^,Agendas\Agenda Attachments\Exhlbits\2008\07-07-08 Arroyo&IECAAC Amendment-Scope of Services Exhibit C.doc City of San Bernardino ECONOW DEVEL OPMENTA GENCY SanSernar ino Redevelopment• Economic Development• Housing & Community Development SM July 24, 2008 Inland Empire Concerned African American Churches Attn.: Pastor Ray Turner, Chairman 1583 West Union Street San Bernardino, CA 92411 Re: Amendment No. 1 to the 2006 Affordable Single-Family Disposition and Development Agreement (HOME Funds—Four Agency Lots) Dear Pastor Turner: Enclosed for your records is a copy of the fully executed Amendment No. 1 as referenced above that was approved by the Community Development Commission of the City of San Bernardino on July 7, 2008 (Resolution CDC/2008-25). Shout have any questions regarding this matter, please feel free to call me at(909) 663-1044. Sinc r , i Wasana A. Chantha Executive Secretary Enclosure cc: Barbara Lindseth(with Original Executed Amendment No. 1) %.1Vlargaret Fedor(with Original Executed Amendment No. 1) Arroyo (with Original Executed Amendment No. 1) Carey K. Jenkins (with a Copy of the Executed Amendment No. 1) File(with a Copy of the Executed Amendment No. 1) 201 North E Street, Suite 301 •San Bernardino, California 92401-1507•(909)663-1044•Fax(909)888-9413 www.sanbernardino-eda.ora City of San Bernardino ECONOM/C DEVEL OPMENTA GENCY SanBernar ino Redevelopment• Economic Development• Housing & Community Development SM July 24, 2008 Arroyo Valley Community Economic Development Corporation Attn.: Antonio Dupre, President P.O. Box 1599 San Bernardino, California 92402 Re: Amendment No. 1 to the 2006 Affordable Single-Family Disposition and Development Agreement (HOME Funds —Four Agency Lots) Dear Mr. Dupre: Enclosed for your records is the fully executed Amendment No. 1 as referenced above that was approved by the Community Development Commission of the City of San Bernardino on July 7, 2008 (Resolution CDC/2008-25). Should you have any questions regarding this matter, please feel free to call me at (909) 663-1044. Sinde ly, Wasana A. Chantha Executive Secretary Enclosure cc: Barbara Lindseth(with Original Executed Amendment No. 1) ,%Margaret Fedor(with Original Executed Amendment No. 1) Carey K. Jenkins (with a Copy of the Executed Amendment No. 1) IECAAC (with a Copy of the Executed Amendment No. 1) File (with a Copy of the Executed Amendment No. 1) 201 North E Street, Suite 301 •San Bernardino, California 92401-1507•(909)663-1044•Fax(909)888-9413