HomeMy WebLinkAboutR10-Redevelopment Agency
..QVELOPImfT AQENCY'.QQUB8T FORQ..l88ION/COUNCIL A&ION
. From:
Qt:
GLENDA SAUL
Redevelopment Agency
Subjact:
NEIGHBORHOOD HOUSING SERVICES, INC.
SHORT-TERM LOAN AGREEMENT (INFlLL
HOUSING)
Date: July 15, 1986
Synopsis of Previous Commiuion/Council action:
In July, 1984, the Mayor and Common Council approved a $50,000 loan to San
Bernardino Neighborhood Housing Services, Inc., for the purpose of acquiring
ten (10) vacant parcels for NHS's veterans Owner-Built Infill Housing Program,
On November, 18, 1985, the Mayor and Common Council approved a $20,000 short-term
loan with Neighborhood Housing Services, Inc., to assist NHS with a cash-flow
problem relative to program start-up. The loan was secured by pre-development
funds provided by Life Savings and Loan.
Recommended motion:
MAYOR AND COMMON COUNCIL
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RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING EXECUTION
OF SHORT-TERM LOAN AGREEMENT WITH SAN BERNARDINO NEIGHBORHOOD HOUSING SERVICES,
INC., FOR INFILL HOUSING PROGRAM,
Signature
Contact person:
GLENDA SAUL/KEN HENDERSON
Phons: 383-5081
Supponing data Ittachecl:
STAFF REPORT
Wlrd:
1
FUNDING REQUIREMENTS:
Amount: $
20,000
Projact: N/A
No ecIvlrse Implct on City:
Dlte:
COil Notes:
Agenda Item No. R. /0
. CITO OF SAN BERNARDIC>> - REQU~T FOR COUNCIL AC'Q)N
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STAFF REPORT
On June 26, 1986, staff met with Antolin Gomez, Ezecutive Director.
Neighborhood Housing Services, Inc., (NHS) to discuss his request regarding
financial assistance for NHS administrative costs. particularly those related
to the implementation of the City's Infill Housing Program.
Neighborhood Housing Services, Inc., has been making timely payments on the
$20.000 loaned to them in November. 1985. A loan payment of $3.667.00 is due
on August 8, 1986, and the balance of $2.195.49 is payable by September 18,
1986. Mr. Gomez has indicated that be would pay the balance of the loan in
advance, if in tum. the same $20.000 could be lent to NHS again to assist in
the administration of the Infill Housing Program.
It is anticipated that constmctioD of the first five (5) veterans owner-built
inf1ll houses will be completed by mid-August and that proceeds from the ssle
of these homes will provide funds to acquire sdditional infUl lots for
construction costs.
The proposed loan will be secured by a second deed of trust (subordinated to
the construction financing) and payable out of the closing receipts of each
home. An estimated $4.000.00 w1ll be repayed from the sale of each house.
Adoption of the resolution by the Mayor and CoIlllllOtl Council would authorize and
direct the Mayor to esecute a loan agreement with NHS at a funding level not
to esceed $20,000 for the purpose of assisting with NHS's administrative costs.
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RESOLUTION NO.
RESOLUTION OF THE CITY OF SAN BE8.NARDINO AUTHORIZING AND DIRECTING
EXECUTION OF SHORT-TERM LOAN AGREEMENT WITH SAN BERNARDINO NEIGHBORHOOD
HOUSING SERVICES, INC., FOR INFILL HOUSING PROGRAM.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BE8.NARDINO AS FOLLOWS:
SECTION 1. Recitals. The Mayor and COlDIDon Council of the City of San
Bernardino has appropriated $20.000 of its 1985/1986 Community Development
Block Grant funding to assist San Bernardino Neighborhood Housing Services,
Inc.. with the implementation of its various housing progmms, particularly
the Infill Housing Progmm sponsored by the City of San Bernardino. San
Bernardino Neighborhood Housing Services. Inc.. has _de timely loan payments
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in accordance with the terms, conditions and amortization schedule of its loan
agreement, and has requested $20.000 in financial assistance to be loaned
under substantially the same terms and conditions as its current agreement.
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SECTION 2. Implementation. The Mayor of the City of San Bernardino
is hereby authorized and directed to ezecute. for and on behalf of the City of
San Bernardino, that certain agreement between the City of San Bernardino and
Neighborhood Housing Services. Inc., for a short-term loan for Infill Housing
Program, a copy of which is annezed hereto as Ezhibit Nl" and incorpomted
herein by reference. Upon ezecution thereof. the Community Development
Division staff is authorized to lend the sum of $20,000 to Neighborhood
Housing SerVices, Inc.. from Community Development Block Grant funds, upon the
terms and conditions specified in said agreement.
I HEREBY CERTIFY that the foregoing resolution was duly adopted by the
Mayor and ColDlllOn Council of the City of San Bernardino at a
meeting thereof. held on the
day of
. 1986. by the
following vote. to wit:
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AYES: Council Members
NAYS:
ABSENT:
City Clerk
The foregoing resolution is hereby approved this
. 1986.
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Approved as to form:
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Mayor of the City of
San Bernardino
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5 1986,
SHORT-TERM LOAN AGREEMENT
THIS AGREEMENT. mtered into effective the
day of
,
by and between THE CITY OF SAN BERNARDINO, a public body corporate,
6 hereinafter NCityN. and NEIGHBORHOOD HOUSING SERVICES, INC., a California
7 non-profit corporation, hereinafter NNHSN, sets forth the agreement of the
8 parties as specified herein.
9 The parties hereto agree:
10 1. City shall forthwith advance to NHS the sum of $20,000. to assist
11 NHS until such time as NHS is able to Eke various draws upon funds due from
12 other entities.
13 2. NHS agrees to repay to City the sum of $20,000. with interest
0 14 accruing at a rate of seven-percent (7%) per annum. out of the closing
receipts from the sale of each home.
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16 3. NHS shall execu te and deliver to City,. at such time as City is
17 prepared to issue a check or warrant to NHS. a Promissory Note in form
18 approved by City Attorney to assure repayment of the loan. NHS shall also
19 provide to City a Deed of Trust and assignment of rmts pledging funds from
20 the sale of five (5) infill single family detached homes individually or
21 collectively. Such Promissory Note and Deed of Trust shall be in form
221 approved by City Attorney.
23 Development Division staff will authorize partial release of the Deed of Trust.
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2411 4. Upon presentation of the duly ezecuted Promissory Note and Deed of
25/ Trust. in form approved by City Attorney, the CoDlDl1nity Development Division
Upon the sale of individual homes. the Community
26 staff shall deliver its check or warrant for $20.000, as specified
o 27 hereinabove. using CoDlDl1nity Development Block Grant funds.
211 IN WITNESS WHEREOF, the parties hereto have executed this agreement
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1 effective the day and year set forth above.
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3 CITY OF SAN BERNARDINO
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5 BY
Mayor, City of San Bernardino
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8 Attest:
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BY
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City Clerk
11 Approved as to form:
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NEIGHBORHOOD HOUSING SERVICES,
INCORPORATED
BY
President
BY
Secretary