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HomeMy WebLinkAboutR32-Economic Development Agency s h CITY OF SAN BERNARDINO O { i V ECONOMIC DEVELOPMENT AGENCY FROM: Emil A.Marzullo SUBJECT: Public Hearing - Reallocate Funding among Interim Executive Director Program Activities and additional Capital Allocation from the Agency's Low and Moderate Income Housing Set-Aside Funds and HOME DATE: December 18,2009 Funds for Mary Erickson Community Housing, Inc., and Affordable Housing Solutions of San Bernardino, Inc., and adopt contract amendments to implement certain Housing Program Activities under the Neighborhood Stabilization Program --------------------------------------- Synovsis of Previous Commission/Council/Committee Action(s): On December 3, 2009, at the Adjourned Redevelopment Committee meeting, Redevelopment Committee Members Johnson, Brinker and alternate Shorett unanimously voted to recommend that the Community Development Commission consider this action for approval. ----------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------- Recommended Motion(s): Open/Close Public Hearing (Mayor and Common Council) A: Resolution of the Mayor and Common Council of the City of San Bernardino approving the Reallocation of Funding among Neighborhood Stabilization Program Activities (Community Development Commission) B: 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 2009 Neighborhood Stabilization Program Master Agreement by and between the Agency and Mary Erickson Community Housing, Inc., a California nonprofit public benefit corporation("Developer"), and Amendment No. 1 to the 2009 Neighborhood Stabilization Program Sub-Recipient Agreement by and between the Agency and Affordable Housing Solutions of San Bernardino, Inc., a California nonprofit public benefit corporation ("Sub-Recipient") ------------------------------------------------------------——-----------------------------------------------------------------------------------------------------------------—--------------------------- Contact Person(s): Carey K.Jenkins Phone: (909)663-1044 Project Area(s): All Ward(s): All Supporting Data Attached: 0 Staff Report 0 Resolution(s) Eel Agreement(s)/Contract(s)❑Map(s)❑Letter(s) $920,000(Reallocation Neighborhood Stabilization Program Funds Amount) $500,000 HOME Funds FUNDING REQUIREMENTS: Amount: $2,000,000 Source: Housing Set-Aside Funds/HOME Funds Budget Authority: Proposed Action Signature: Fiscal Review: Emi A.Marzullo,Interim Executive Director Russ 0 eJesus,Interim Administr ve ervices Director ------ ----- -- - ----------------- Commission/Council Notes: /-sos aDD 9- 3�' A/V/� Tod ------------------------------------------------------------------ --------------------------------------------------------- ---- —---------------------- P:\Agendas\Comm Dev Commission\CDC 2009\12-21-09 Funding Reallocation-MECH&AHS Amendments SR Final.doc COMMISSION MEETING AGENDA Meeting Date: 12/21/2009 Agenda Item Number: 3d�- ECONOMIC DEVELOPMENT AGENCY STAFF REPORT ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- PUBLIC HEARING - REALLOCATE FUNDING AMONG PROGRAM ACTIVITIES AND ADDITIONAL CAPITAL ALLOCATION FROM THE AGENCY'S LOW AND MODERATE INCOME HOUSING SET-ASIDE FUNDS AND HOME FUNDS FOR MARY ERICKSON COMMUNITY HOUSING, INC., AND AFFORDABLE HOUSING SOLUTIONS OF SAN BERNARDINO,INC.,AND ADOPT CONTRACT AMENDMENTS TO IMPLEMENT CERTAIN HOUSING PROGRAM ACTIVITIES UNDER THE NEIGHBORHOOD STABILIZATION PROGRAM BACKGROUND: On July 30, 2008, Congress enacted the Housing and Economic Recovery Act of 2008 to address foreclosures nationwide by funding $3.9 billion for the Neighborhood Stabilization Program ("NSP") administered by the United States Department of Housing and Urban Development ("HUD"). Under a formula allocation, the City received approximately $8.4 million to address its foreclosure problem. On November 17, 2008, the Mayor and Common Council of the City of San Bernardino and the Community Development Commission of the City of San Bernardino (collectively, the "City")jointly approved the proposal of the Redevelopment Agency of the City of San Bernardino (the "Agency") and submission to HUD for its $8.4 million NSP allocation. Finally, on March 3, 2009, HUD approved the City's application which was followed by an April 23, 2009, City Council action to formally accept the funds. The City's approved plan with HUD consists of the following four Program activities plus an administrative line item: 1. Acquisition, Rehabilitation and Resale of single-family residences ($3,700,000); 2. Acquisition and Demolition for future development($920,000); 3. Down Payment Assistance ($920,000); 4. Housing Opportunities for Households at or below 50% of the AMI — HUD Requirement ($2,100,000); and 5. Administration($768,558). On July 20, 2009, the City authorized the Agency to proceed with all four of the approved NSP program activities: Acquisition, Rehabilitation and Resale of single-family residences; Acquisition and Demolition for future development; Down Payment Assistance; and the initiation of the Housing Opportunities for Households at or below 50% of the AMI program activity (the "Rehabilitation and Rental Program"). This last component would be supported through the approval of a certain Master Agreement by and between the Agency and Mary Erickson Community Housing, Inc. ("MECH"). Through this Master Agreement, MECH was authorized to utilize NSP funds derived from the ------------------------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------- P:\Agendas\CommDev Commission\CDC 2009\12-21-09 Funding Reallocation-MECH&AHS Amendments SR Final.doc COMMISSION MEETING AGENDA Meeting Date: 12,//2'1/2009 Agenda Item Number: /L -)_ ti Economic Development Agency Staff Report Funding Allocation—MECH&AHS Amendments Page 2 Housing Opportunities for Households at or below 50% of the AMI program activity in the amount of $2.1 million and an additional $1 million in Tax Increment Housing Set-Aside Funds ("Set Aside Funds") for the purpose of acquiring, rehabilitating and operating identified small, multi-family, residential properties within the City. Since the initiation of these NSP program activities, it has become evident that given current and foreseeable housing market conditions, there is currently little or no need in the community for the Agency's NSP Down Payment Assistance component. The Agency's experience to date in acquiring foreclosed, single-family homes under the NSP program demonstrates that market prices for these types of properties are currently low enough to allow low- to moderate-income households to purchase these homes, once they have been rehabilitated through one of the Intermediary Developers of the Agency, without the financial assistance from the Agency's NSP Down Payment Assistance Program. Thus, under the current housing market environment it would be extremely difficult for the Agency to obligate all of its NSP funding allocated to the Down Payment Assistance Program activity prior to the HUD imposed September 3, 2010 deadline. In contrast, MECH has been very successful in implementing the Rehabilitation and Rental Program that it was charged to carry-out by the Agency. To date, MECH has purchased two four-plex properties, and it is in escrow to acquire another three similar properties. (Please see Attachment "A" for a listing of these properties.) At five acquired properties, MECH will have accomplished 20% of its goal of acquiring and rehabilitating 25 four-plexes. Yet, while MECH will have acquired just 20% of its goal, after purchasing five properties, it will have obligated most of the NSP and Set-Aside Funds that it was originally allocated. As of this date, MECH has already obligated approximately 41% of the NSP funds that it was allocated and 93% of the Set-Aside Funds that it received. This level of spending only represents the funds obligated for the acquisition and rehabilitation of four properties. As can be seen by this rate of program activity and expenditure, MECH will soon require more funds to reach its mission of acquiring and rehabilitating 25 four-plexes within the area of the City of San Bernardino targeted for redevelopment and commonly known as the Sunrise and 19th Street Project (the "Project"). (Please see Attachment`B" for a map of the Project.) The Agency, through its affiliated non-profit organization, Affordable Housing Solutions of San Bernardino ("AHS"), which the City authorized to acquire properties on behalf of the Agency on September 21, 2009, has also made significant progress towards obligating the NSP and Set-Aside Funds allocated to the Acquisition and Demolition Program Activity ("Demolition Program"). To date, AHS has acquired two properties for demolition within the boundaries of the Project and two additional properties that are in escrow. This represents a funding obligation of approximately $340,000, which is equal to 37% of the total original funding allocation for this program. Since there are many foreclosed and/or abandoned properties within San Bernardino that need to be demolished— to date, the Agency has identified at least 40 additional properties within the Project that it can acquire and demolish - it does not appear that the Agency will have any difficulty in rapidly expending the funds originally allocated to the Demolition Program. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- P:\Agendas\CommDev Commission\CDC 2009\12-21-09 Funding Reallocation-MECH&AHS Amendments SRFinal.doc COMMISSION MEETING AGENDA Meeting Date: 12/21/2009 Agenda Item Number: �' 4 Economic Development Agency Staff Report Funding Allocation—MECH&AHS Amendments Page 3 CURRENT ISSUE: Given MECH's initial success with the Rehabilitation and Rental Program and NSP homebuyers' current lack of need for the Down Payment Assistance Program component, the Agency requests the transfer of$520,000 from the Down Payment Assistance fund allocation to MECH for the purpose of acquiring and rehabilitating additional four-plexes. The remaining balance of $400,000 would be transferred to the Agency's affiliated non-profit, AHS, for the purpose of acquiring and demolishing more properties that are to be held for redevelopment at a future date. The Agency's recent success with both the Demolition and the Rehabilitation and Rental Programs justifies the transfer of the Down Payment Assistance funds to these activities. In addition, by transferring these funds now, the Agency would be able to capitalize on current depressed real estate pricing levels to optimize its property acquisition opportunities under both the Demolition and the Rehabilitation and Rental Programs. Finally, the Agency requests an additional capital allocation of$1,000,000 from its Low and Moderate Income Housing Set-Aside Funds to MECH for the purpose of implementing the Rehabilitation and Rental Program. Similarly, the Agency requests another $1,000,000 from Set-Aside Funds to AHS in order to carry-out the Demolition Program. The Agency also requests another $500,000 in HOME Investment Partnership Program Funds to be allocated to AHS for acquisition and redevelopment of blighted residential properties in furtherance of its affordable housing efforts. The public notice requirement for allocating HOME Funds has been satisfied and awaits Council approval of the City's amendment to the Annual Action Plan with HUD which is part of another item on this December 21, 2009 agenda and labeled as Item No. R31. The public hearing is scheduled for December 21, 2009, under a separate action. A funding matrix has been attached to this Staff Report for further review(Attachment"C"). This request for additional funding for the Demolition and the Rehabilitation and Rental Programs is consistent with projected total costs over the life of the programs. As can be seen in Attachment "D", projected total cost for the Rehabilitation and Rental Program is estimated to be $6,600,000, and the total cost for the Demolition Program is projected to be $6,000,000. Based on current estimates, an overall total of approximately $12,600,000 will be required to acquire and rehabilitate or demolish all of the four-plexes comprising the Sunrise and 19th Street Project. Relative to previous Agency acquisitions in the area, the Sunrise and 19th Street Project is very cost effective. When the Agency was conducting its acquisitions of the properties in the nearby Arden Guthrie Project, the average cost for the acquisition of similar housing stock was $595,000 per complex. Thus far the average acquisition price for Sunrise and 19th properties is $163,000. This represents a 73% discount from the average market high price for the area which was within the last 24-30 months. ENVIRONMENTAL IMPACT: None. ------------------------------------------------------------------------------------------------------------------------------------------------- ----------------- P:\Agendas\Comm Dev Commission\CDC 2009\12-21-09 Funding Reallocation-MECH&AHS Amendments SR Final.doc COMMISSION MEETING AGENDA Meeting Date: 12/221 41/2009 Agenda Item Number: it .)— Economic Development Agency Staff Report Funding Allocation—MECH&AHS Amendments Page 4 FISCAL IMPACT: There will be no fiscal impact to the City's General Fund. The services provided under the Demolition and the Rehabilitation and Rental Programs and the associated administration costs will be funded either with NSP funds derived from HUD through the reallocation of $920,000 of NSP funds, $2,000,000 in funds from the Agency's tax increment housing set-aside and $500,000 from HOME funds. RECOMMENDATION: That the Community Development Commission adopt the attached Resolution. Emil A. Marzullo, Interim Executive Director ------------------------- ---------------------------------------------------------------------------------------------------------------------- ------------------------------------- P:\Agendas\Comm Dev Commission\CDC 2009\12-21-09 Funding Reallocation-MECH&AHS Amendments SR Final.doc COMMISSION MEETING AGENDA Meeting Date: 12///221/2009 Agenda Item Number: �j.y ATTACHMENT "A" 19th and SUNRISE PROPERTY DISPOSITON SHEET As of December 7, 2009 QWNER ADDRESS DISPOSITION OCCUPANCY PRICE Column2 Colu=3 MECH 2030 E. 19th OWN vacant $ 148,500.00 MECH 2194 E. 19th OWN vacant $ 145,500.00 MECH 2082 E. 19th ESCROW tenants $ 180,000.00 MECH 2148 E. 19th ESCROW tenants $ 170,000.00 MECH 2295 Sunrise ESCROW vacant $ 181,700.00 AHS 2044 Sunrise Own vacant $ 140,000.00 AHS 2165 E. 19th ESCROW vacant $ 147,500.00 AHS 2149 E. 19th ESCROW tenants $ 185,000.00 EDA/AHS 2105 Sunrise own vacant lot n/a The above properties reflect properties Mary Erckson Community Housing (MECH) and Affordable Housing Solutions of San Bernardino (AHS) have acquired or are under contract to acquire. 1 1 � • l r nalanlra � F!� • A mew 0 U— AAlwo, C 3SIdNnS 3 91CI t6t90t6tt.. • 1 3SIMN1IS • 3 99ZZ -- • OC190t611 1 • 3SlMNAS • 6£t9016tt 3SIMNIIS � 3 SCZZ . SEt9016tt • 1 1 • 3SIMN1I5 3 SEZZ �l , Ltt90t6tt • • • 3SIMNHS .� 3 SZZZ • � � 3SIMNRS '� • 1 ,.� • 3S1ZZ it? .w : 1 ►• . .o Lu ` • 1f 16l386tZ s: /. 'ZE1E016tt 1 , H16I396IZ ° R ` ..... �i ECtCOt6tt • / c • r t H161391tZ t vueotstt � - H16t3k9lZ � + monw- H161 h£IZ j H16tC • LttC0161t 1" ot4��,� '. H16t38t11 _ - Ott COt6tt • H161 3 CO1Z 'H161 41 r„. 60t£ot6t1 H16t 3 C6oZ G 801COt6tt H:6 7d0i Ea l -. �p -- H16t 3 8902 90tCO161t � ' z+` � 4 ' i H16t9SOZ � ,.._. � SO1E01611 � l H16t 3 ZCOZ ” COLEot61t CA ,1 .wai "� f ATTACHMENT "C" NEIGHBORHOOD STABILIZATION PROGRAM 19TH AND SUNRISE BUDGET (as of 11-09) Mary Erickson Community Housing Approved Proposed July 20,2009 Dec. 21, 2009 Funding Acquisition Acquisition Source Rehabilitation Rehabilitation Total Current Funding NSP1 2,100,000 520,000 (a) $ 2,620,000 20% Housing Set-aside 1,000,000 1,000,000 $ 2,000,000 Subtotal 3,100,000 1,520,000 $ 4,620,000 Affordable Housing Solutions Approved Proposed Sept. 21, 2009 Dec. 21, 2009 Funding Acquisition Acquisition Source Demolition Demolition Total Current Funding NSP1 600,000 400,000 (a) $ 1,000,000 206/o Housing Set-aside 1,000,000 1,000,000 $ 2,000,000 Subtotal 1,600,000 1,400,000 $ 3,000,000 Grand Total 4,700,000 2,920,000 7,620,000 (a) represents the amount taken from NSP down payment assistance (originally$920,000) ATTACHMENT "D" NEIGHBORHOOD STABILIZATION PROGRAM 19TH AND SUNRISE PRELIMINARY BUDGET MECH AGENCY/AHS Funding Acquisition Acquisition Source Rehabilitation Demolition Total Current Funding NSP1 (a) 2,100,000 600,000 $ 2,700,000 20% Housing Set-aside (b) 1,000,000 1,000,000 $ 2,000,000 Subtotal 3,100,000 1,600,000 $ 4,700,000 Future Funding NSP1 (a) 520,000 400,000 $ 920,000 NSP2 (c) 980,000 400,000 $ 1,380,000 CDFI (d) 1,000,000 - $ 1,000,000 20% Housing Set-aside (b) 1,000,000 1,000,000 $ 2,000,000 Future 20% Set-aside (e) 2,600,000 $ 2,600,000 Subtotal 3,500,000 4,400,000 $ 7,900,000 TOTAL. $ 6,600,000 $ 6,000,000 $ 12,600,000 (a) Based upon the recommended action for September 21, 2009, NSP1 funds have already been allocated to the City and are available for immediate draw down, pending approval. (b) RDA Housing set-aside funds have been budgeted for FY09-10. (c) EDA awaiting results of application previously submitted to HUD. (d) MECH required to submit application for funding. (e) Based on receipt of future 20% housing set aside funds (FY10-11 and FY11-12). o ® I RESOLUTION NO. 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY 3 OF SAN BERNARDINO APPROVING THE REALLOCATION OF FUNDING AMONG NEIGHBORHOOD STABILIZATION PROGRAM 4 ACTIVITIES 5 6 WHEREAS, on November 17, 2008, the Mayor and Common Council of the City of San 7 Bernardino ("Council") and the Community Development Commission of the City of San 8 Bernardino ("Commission") approved the proposal of the Redevelopment Agency of the City of San 9 Bernardino ("Agency") for the use of approximately $8.4 million in funding from the Neighborhood 10 Stabilization Program ("NSP") administered by the United States Department of Housing and Urban 11 Development ("HUD"); and 12 WHEREAS, the Agency's proposal called for the provision of the following NSP program 13 activities plus an administrative line item: (1) Acquisition, Rehabilitation and Resale of single- 14 family residences ($3,700,000); (2) Acquisition and Demolition for future redevelopment, herein 15 referred to as the "Demolition Program" ($920,000) ; (3) Down Payment Assistance ($920,000); (4) 16 Housing Opportunities for Households at or below 50% of AMI, herein referred to as the 17 "Rehabilitation and Rental Program"($2,100,000); and (5)Administration ($768,558); and 1s WHEREAS, on July 20, 2009, the Council and the Commission authorized the Agency to 19 Proceed with all four of the approved NSP program activities; and 20 WHEREAS, the Agency's experience implementing the NSP program activities thus far, has 21 demonstrated that there is little or no need in the community for the Agency's NSP Down Payment 22 Assistance component due to depressed housing market conditions; and 23 WHEREAS, the Agency has experienced significant success in executing the Rehabilitation 24 and Rental Program to date and further funding is needed for the continuation of this program; and 25 WHEREAS, the Agency has also been successful in implementing the Demolition Program 26 to date, and a need for further funding of this program is required in order to continue offering the 27 program; and WHEREAS_ the U.S. Denartment of Rmmino anti T Trlhan r1PVPIllflmari* i«uT Tn"% L.— 1 concurred that the Public Notice published by the Agency on December 6, 2009, informing the 2 public of the re-allocation of NSP funds as proposed in this Resolution, satisfies HUD noticing 3 requirements, provided that the Agency does not exceed the revised NSP funding levels stated in the 4 Public Notice; and 5 WHEREAS, the Agency has determined that the continuation of the Demolition Program 6 and the Rehabilitation and Rental Program are in the vital and best interests of the City and the 7 Agency. 8 NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED BY 9 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS 10 FOLLOWS: 11 Section 1. The Council hereby finds and determines that the facts and circumstances set 12 forth in the Recitals hereof are true and correct in all respects. 13 Section 2. The Mayor and Common Council of the City of San Bernardino ("Council") 14 hereby approves the reallocation of $520,000 in NSP Down Payment Assistance funds to the 15 Rehabilitation and Rental Program, and the reallocation of the remaining $400,000 in NSP Down 16 Payment Assistance funds to the Demolition Program. 17 Section 3. This Resolution shall take effect upon its adoption and execution in the manner IS as required by the City Charter. 19 20 21 22 23 24 15 26 27 /// I RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING THE REALLOCATION OF 2 FUNDING AMONG NEIGHBORHOOD STABILIZATION PROGRAM 3 ACTIVITIES 4 5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 6 Common Council of the City of San Bernardino at a meeting thereof, held on the day of , 2009, by the following vote to wit: 7 8 Council Members: Armes Nays Abstain Absent ESTRADA 9 BAXTER 10 BRINKER 11 SHORETT 12 KELLEY 13 JOHNSON 14 MC CAMMACK 15 16 17 Rachel G. Clark, City Clerk is The foregoing Resolution is hereby approved this day of , 2009. 19 20 Patrick J. Morris, Mayor 21 City of San Bernardino 22 Approved as to Form: 23 By: Z\ _.._, 24 Ja es F. Pe an, City Attorney 5 26 27 �Q COPY 1 RESOLUTION NO. 2 3 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND 4 AUTHORIZING THE INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 5 ("AGENCY") TO EXECUTE AMENDMENT NO. 1 TO THE 2009 6 NEIGHBORHOOD STABILIZATION PROGRAM MASTER AGREEMENT BY AND BETWEEN THE AGENCY AND MARY ERICKSON 7 COMMUNITY HOUSING, INC., A CALIFORNIA NONPROFIT PUBLIC BENEFIT CORPORATION ("DEVELOPER"), AND AMENDMENT NO. 1 8 TO THE 2009 NEIGHBORHOOD STABILIZATION PROGRAM SUB- 9 RECIPIENT AGREEMENT BY AND BETWEEN THE AGENCY AND AFFORDABLE HOUSING SOLUTIONS OF SAN BERNARDINO, INC., A 10 CALIFORNIA NONPROFIT PUBLIC BENEFIT CORPORATION ("SUB- RECIPIENT") 11 12 WHEREAS, on July 20, 2009, the Community Development Commission of the City of San 13 Bernardino ("Commission") approved the 2009 Neighborhood Stabilization Program Developer 14 Master Agreement ("Master Agreement") between the Agency and the Developer; through which the 15 Developer was charged to implement the Neighborhood Stabilization Program ("NSP") activity 16 known as the Housing Opportunities for Households at or below 50% of AMI (the "Rehabilitation 17 and Rental Program"); and 18 WHEREAS, the Agency deems it desirable to enter into Amendment No. 1 to the Master 19 Agreement ("Master Amendment No. I") in the form as attached hereto as Exhibit "A" with the 20 Developer to provide an additional $520,000 in NSP funds and an additional $1,000,000 in Tax 21 Increment Housing Set-Aside Funds ("Low and Moderate Income Funds") for the purpose of 22 acquiring, rehabilitating and operating identified 4-plex, multi-family, residential properties within 23 the City in furtherance of the Rehabilitation and Rental Program as defined in the Master 24 Agreement; and .5 WHEREAS, the Agency is desirous of assisting the Developer in implementing the 26 Rehabilitation and Rental Program and has previously provided $2,100,000 in NSP funding and 27 $1,000,000 in Low and Moderate Income Funds in support of this program; and ,%a I WHEREAS, The Developer has obligated as of the effective date of this Resolution 58% of 2 the original funding provided by the Agency after having acquired four (4) of twenty-five (25) 3 targeted properties as identified in the Master Agreement; and 4 WHEREAS, on September 21, 2009 the Commission approved the 2009 Neighborhood 5 Stabilization Program Sub-Recipient Agreement ("Sub-Recipient Agreement"), through which the 6 Sub-recipient, Affordable Housing Solutions of San Bernardino, Inc, a California non-profit 7 corporation, was charged with acquiring properties in furtherance of the Neighborhood Stabilization 8 Program ("NSP") activity known as the Acquisition and Demolition Program for future 9 development (the "Demolition Program") and with acquiring properties that could not be purchased 10 with NSP funding for the purpose of demolishing them or rehabilitating them (the "Acquisition 11 Program"); and 12 WHEREAS, the Agency deems it desirable to enter into Amendment No. 1 to the Sub- 13 Recipient Agreement ("Sub-Recipient Amendment No. I") in the form as attached hereto as Exhibit 14 `B" with the Sub-Recipient to provide an additional $400,000 in NSP funds and an additional 15 $1,000,000 in Low and Moderate Income Funds for the purpose of acquiring and demolishing 16 identified 4-plex, multi-family, residential properties within the City in furtherance of the 17 Demolition Program, and an additional $500,000 in funding from the HOME Investment 18 Partnerships Program ("HOME") for the purpose of acquiring small residential properties in 19 furtherance of the Acquisition Program, as defined in the Sub-Recipient Agreement; and 20 WHEREAS, the Agency is desirous of working with the Sub-Recipient in acquiring 21 properties for the Demolition Program and the Acquisition Program and has previously provided 22 $600,000 in NSP funding, $1,000,000 in Low and Moderate Income Funds and $2,000,000 in 23 HOME Funds support of these programs; and 24 WHEREAS, the Sub-Recipient has obligated as of the effective date of this Resolution 37% 5 of the original NSP funding provided by the Agency after having acquired four (4) of forty (40) 26 blighted properties identified as eligible for acquisition and demolition, to date, by the Agency; and 27 ,to i 1 -WHEREAS, the expenditure rate for the Rehabilitation and Rental Program and the 2 Demolition Program as described above indicate that the Developer and the Sub-Recipient will need 3 additional funding in order to complete their respective programs; and 4 WHEREAS, the U.S. Department of Housing and Urban Development ("HUD") has 5 concurred that the Public Notice published by the Agency informing the public of the re-allocation 6 of NSP funds as proposed in this Resolution, satisfies HUD noticing requirements, provided that the 7 Agency does not exceed the revised NSP funding levels stated in the Public Notice; and 8 WHEREAS, the Agency has determined that the execution of the Rehabilitation and Rental 9 Program pursuant to the Master Agreement and Master Amendment No. 1 and the fulfillment 10 generally of the purposes of the Master Agreement are in the vital and best interests of the City and 11 the Agency; and 12 WHEREAS, the Agency has determined that the execution of the Demolition Program and 13 the Acquisition Program pursuant to the Sub-Recipient Agreement and Sub-Recipient Amendment 14 No. 1 and the fulfillment generally of the purposes of the Sub-Recipient Agreement are in the vital 15 and best interests of the City and the Agency. 16 17 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE 18 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS 19 FOLLOWS: 20 Section 1. The facts set forth in the Recitals to this Resolution are accurate and correct in all 21 respects. 22 Section 2. The Community Development Commission of the City of San Bernardino 23 ("Commission") hereby approves Master Amendment No. 1 and Sub-Recipient Amendment No. 1 24 and hereby authorizes the Interim Executive Director of the Redevelopment Agency of the City of I5 San Bernardino to execute both Master Amendment No. 1 and Sub-Recipient Amendment No. 1 on 26 behalf of the Agency together with such technical and conforming changes as may be recommended 27 by the Executive Director of the Agency and approved by the Agency Counsel. w 1 Section 3. This Resolution shall take effect from and after its date of adoption by this 2 Commission. 3 4 5 6 8 9 10 11 12 13 14 15 16 17 IS 19 20 21 22 23 24 25 26 27 /// 1 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND 2 AUTHORIZING THE INTERIM EXECUTIVE DIRECTOR OF THE 3 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE AMENDMENT NO. 1 TO THE 2009 4 NEIGHBORHOOD STABILIZATION PROGRAM MASTER AGREEMENT BY AND BETWEEN THE AGENCY AND MARY ERICKSON 5 COMMUNITY HOUSING, INC., A CALIFORNIA NONPROFIT PUBLIC BENEFIT CORPORATION ("DEVELOPER"), AND AMENDMENT NO. 1 6 TO THE 2009 NEIGHBORHOOD STABILIZATION PROGRAM SUB- 7 RECIPIENT AGREEMENT BY AND BETWEEN THE AGENCY AND AFFORDABLE HOUSING SOLUTIONS OF SAN BERNARDINO, INC., A g CALIFORNIA NONPROFIT PUBLIC BENEFIT CORPORATION ("SUB- RECIPIENT") 9 10 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community 11 Development Commission of the City of San Bernardino at a meeting thereof, held on the 12 day of , 2009, by the following vote to wit: 13 Commission Members: Ayes Nays Abstain Absent ESTRADA 14 BAXTER 15 BRINKER 16 SHORETT 17 KELLEY 18 JOHNSON 19 MC CAMMACK 20 21 Secretary 22 The foregoing Resolution is hereby approved this day of , 2009. 23 24 Patrick J. Morris, Chairperson 15 Community Development Commission of the City of San Bernardino 26 Approved as to Form: 27 I EXHIBIT "A" 2 Master Amendment No. 1 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 '5 26 27 AMENDMENT NO. 1 TO THE NEIGHBORHOOD STABILIZATION PROGRAM DEVELOPER MASTER AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND MARY ERICKSON COMMUNITY HOUSING, INC. This Amendment No. 1 to the Neighborhood Stabilization Program Master Agreement (this "Amendment No. 1") is entered into on December 21, 2009, by and between the Redevelopment Agency of the City of San Bernardino (the "Agency"), a public body, corporate and politic, and Mary Erickson Community Housing, Inc., a California nonprofit public benefit corporation (the "Developer"), and is entered into in consideration of the facts set forth in the following Recital paragraphs: -RECITALS- A. The Developer and the Agency have previously entered into an agreement entitled "Neighborhood Stabilization Program Developer Master Agreement", dated as of July 20, 2009 (the "Master Agreement"), through which the Developer was charged to implement the Neighborhood Stabilization Program ("NSP") activity known as the Housing Opportunities for Households at or below 50% of AMI (the "Rehabilitation and Rental Program"). B. The Agency is desirous of assisting the Developer in implementing the Rehabilitation and Rental Program and has previously provided $2,100,000 in NSP funding and $1,000,000 in Tax Increment Housing Set-Aside Funds ("Low and Moderate Income Funds") for the purpose of acquiring, rehabilitating and operating identified 4-plex, multi-family, residential properties within the City as stipulated in the Master Agreement. C. The Developer has obligated as of the effective date of this Amendment No. 1 a majority of the original funding provided by the Agency after having acquired four (4) of twenty-five (25) targeted properties as identified in the Master Agreement. Specifically, the Developer has obligated 41% of its original NSP funding allocation and 93% of its original Low and Moderate Income Funds, which represents a combined average of 58% of its total original funding. D. The expenditure rate for the Rehabilitation and Rental Program as described in Recital C above indicates that the Developer will need additional funding in order to complete this program. E. The Agency has determined that the execution of the Rehabilitation and Rental Program pursuant to the Master Agreement and this Amendment No. 1 and the fulfillment generally of the purposes of the Master Agreement are in the vital and best interests of the City and the Agency. I NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND CONDITIONS CONTAINED HEREIN, THE AGENCY AND THE DEVELOPER AGREE AS FOLLOWS: Section 1. References to the Master Agreement; Defined Terms. (a)Unless the context of the usage of a term or phrase in this Amendment No. 1 may otherwise require, the meaning of words and phrases as contained in this Amendment No. 1, which are indicated by an initially capitalized letter, shall be the same as set forth in the Master Agreement. (b) The information contained in the Recitals as set forth in this Amendment No. 1 is true and correct in all respects. Section 2. Specific Amendments to the Master Agreement. (a) The Master Agreement is hereby amended by this Amendment No. 1 in the manner as indicated in this Section 2 and which changes and amendments shall be effective from and after the date of approval of this Amendment No. 1 by the Developer and the Agency and execution hereof by the parties. (b) Section 4.C. of the Master Agreement is hereby amended by adding the following paragraph at the end of said Section: "If deemed necessary for the continuation of the Project, the Agency may, in its sole discretion, provide additional NSP funding equal to $520,000 and Low and Moderate Income Funds equal to $1,000,000 to the Developer pursuant to this Agreement." Section 3. Effect of Amendment No. 1. Except as modified or amended by this Amendment No. 1, all of the provisions of the Master Agreement shall remain in full force and effect following the effective date of this Amendment No. 1. 4 IN WITNESS WHEREOF, the parties hereto have accepted and made and executed this Amendment No. I upon the terms and conditions and with the provisions as set forth above and as of the date first written above. 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: n Agency Cbunseli DEVELOPER Mary Erickson Community Housing, Inc., a California nonprofit public benefit corporation Date: By: Title: 1 EXHIBIT "B" 2 Sub-Recipient Amendment No. 1 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 .5 26 27 AMENDMENT NO. 1 TO THE NEIGHBORHOOD STABILIZATION PROGRAM SUB-RECIPIENT AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND AFFORDABLE HOUSING SOLUTIONS OF SAN BERNARDINO, INC. This Amendment No. 1 to the Neighborhood Stabilization Program Sub-Recipient Agreement (this "Amendment No. I") is entered into on December 21, 2009, by and between the Redevelopment Agency of the City of San Bernardino (the "Agency"), a public body, corporate and politic, and Affordable Housing Solutions of San Bernardino, Inc., a California non-profit public benefit corporation (the "Sub-Recipient"), and is entered into in consideration of the facts set forth in the following Recital paragraphs: -RECITALS- A. The Sub-Recipient and the Agency have previously entered into an agreement entitled "Neighborhood Stabilization Program Sub-Recipient Agreement", dated as of September 21, 2009 (the "Sub-Recipient Agreement"), through which the Sub-Recipient was charged with acquiring properties in furtherance of the Neighborhood Stabilization Program ("NSP") activity known as the Acquisition and Demolition for future development program (the "Demolition Program") and with acquiring properties that could not be purchased with NSP funding for the purpose of demolishing them or rehabilitating them (the "Acquisition Program"). B. The Agency is desirous of working with the Sub-Recipient in acquiring properties for the Demolition Program and has previously provided $600,000 in NSP funding and $1,000,000 in Tax Increment Housing Set-Aside Funds ("Low and Moderate Income Funds") for the purpose of acquiring and demolishing identified 4-plex, multi-family, residential properties within the City as stipulated in the Sub-Recipient Agreement. C. The Sub-Recipient has obligated as of the effective date of this Amendment No. I a significant portion of the original NSP funding provided by the Agency after having acquired four (4) of forty (40) properties identified as eligible for acquisition and demolition, to date, by the Agency. This translates to an expenditure of 37% of the Agency's original NSP funding allocation, and there still remains abundant opportunity for the Agency to acquire and demolish blighted properties in the City. D. The expenditure rate for the Demolition Program as described in Recital C above indicates that the Sub-Recipient will need additional funding in order to complete the Demolition Program. E. The Agency is desirous of working with the Sub-Recipient in acquiring properties for the Acquisition Program and has previously provided $2,000,000 in funding from the HOME Investment Partnerships Program ("HOME") for the purpose of acquiring and demolishing or rehabilitating small residential properties throughout the City of San Bernardino that are in a state of disrepair and are not eligible for acquisition using NSP funding. F. The Agency has determined that the execution of the Demolition Program and the Acquisition Program pursuant to the Sub-Recipient Agreement and this Amendment No. 1 and the fulfillment generally of the purposes of the Sub-Recipient Agreement are in the vital and best interests of the City and the Agency. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND CONDITIONS CONTAINED HEREIN, THE AGENCY AND THE SUB-RECIPIENT AGREE AS FOLLOWS: Section 1. References to the Sub-Recipient Agreement; Defined Terms. (a) Unless the context of the usage of a term or phrase in this Amendment No. 1 may otherwise require, the meaning of words and phrases as contained in this Amendment No. 1, which are indicated by an initially capitalized letter, shall be the same as set forth in the Sub-Recipient Agreement. (b) The information contained in the Recitals as set forth in this Amendment No. l is true and correct in all respects. Section 2. Specific Amendments to the Sub-Recipient Agreement. (a) The Sub- Recipient Agreement is hereby amended by this Amendment No. 1 in the manner as indicated in this Section 2 and which changes and amendments shall be effective from and after the date of approval of this Amendment No. 1 by the Sub-Recipient and the Agency and execution hereof by the parties. (b) Section S.B. of the Sub-Recipient Agreement is hereby amended by adding the following at the end of said Section: Additional amounts allocated to Sub-Recipient as of 12/21/09• Source of Funds: Dollar Amount: Low and Moderate Income Housing Funds $1,000,000 (acquisition of non-NSP properties and demolition) NSP (Demolition) $400,000 HOME $500,000 Section 3. Effect of Amendment No. 1. Except as modified or amended by this Amendment No. 1, all of the provisions of the Sub-Recipient Agreement shall remain in full force and effect following the effective date of this Amendment No. 1. IN WITNESS WHEREOF, the parties hereto have accepted and made and executed this Amendment No. 1 upon the terms and conditions and with the provisions as set forth above and as of the date first written above. 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: �— 44--- Agency ouns 1 SUB-RECIPIENT Affordable Housing Solutions of San Bernardino, Inc., a California non-profit public benefit corporation Date: By: Title: AMENDMENT NO. 1 TO THE NEIGHBORHOOD STABILIZATION PROGRAM DEVELOPER MASTER AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND MARY ERICKSON.COMMUNITY HOUSING, INC. This Amendment No. 1 to the Neighborhood Stabilization Program Master Agreement (this "Amendment No. I") is entered into on December 21, 2009, by and between the Redevelopment Agency of the City of San Bernardino (the "Agency"), a public body, corporate and politic, and Mary Erickson Community Housing, Inc., a California nonprofit public benefit corporation (the "Developer"), and is entered into in consideration of the facts set forth in the following Recital paragraphs: -RECITALS- A. The Developer and the Agency have previously entered into an agreement entitled "Neighborhood Stabilization Program Developer Master Agreement", dated as of July 20, 2009 (the "Master Agreement"), through which the Developer was charged to implement the Neighborhood Stabilization Program ("NSP") activity known as the Housing Opportunities for Households at or below 50% of AMI (the "Rehabilitation and Rental Program"). B. The Agency is desirous of assisting the Developer in implementing the Rehabilitation and Rental Program and has previously provided $2,100,000 in NSP funding and $1,000,000 in Tax Increment Housing Set-Aside Funds ("Low and Moderate Income Funds") for the purpose of acquiring, rehabilitating and operating identified 4-plex, multi-family, residential properties within the City as stipulated in the Master Agreement. C. The Developer has obligated as of the effective date of this Amendment No. 1 a majority of the original funding provided by the Agency after having acquired four (4) of twenty-five (25) targeted properties as identified in the Master Agreement. Specifically, the Developer has obligated 41% of its original NSP funding allocation and 93% of its original Low and Moderate Income Funds, which represents a combined average of 58% of its total original funding. D. The expenditure rate for the Rehabilitation and Rental Program as described in Recital C above indicates that the Developer will need additional funding in order to complete this program. E. The Agency has determined that the execution of the Rehabilitation and Rental Program pursuant to the Master Agreement and this Amendment No. 1 and the fulfillment generally of the purposes of the Master Agreement are in the vital and best interests of the City and the Agency. 1 P:\Agendas\Agenda Attachments\Agenda Attachments\Agrmts-Amend 2009\12-21-09 Funding Reallocation-MECH Amendment No.Ito Master Agreement(Final).doc h NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND CONDITIONS CONTAINED HEREIN, THE AGENCY AND THE DEVELOPER AGREE AS FOLLOWS: Section 1. References to the Master Agreement; Defined Terms. (a)Unless the context of the usage of a term or phrase in this Amendment No. 1 may otherwise require, the meaning of words and phrases as contained in this Amendment No. 1, which are indicated by an initially capitalized letter, shall be the same as set forth in the Master Agreement. (b) The information contained in the Recitals as set forth in this Amendment No. 1 is true and correct in all respects. Section 2. Specific Amendments to the Master Agreement. (a) The Master Agreement is hereby amended by this Amendment No. 1 in the manner as indicated in this Section 2 and which changes and amendments shall be effective from and after the date of approval of this Amendment No. 1 by the Developer and the Agency and execution hereof by the parties. (b) Section 4.C. of the Master Agreement is hereby amended by adding the following paragraph at the end of said Section: "If deemed necessary for the continuation of the Project, the Agency may, in its sole discretion, provide additional NSP funding equal to $520,000 and Low and Moderate Income Funds equal to $1,000,000 to the Developer pursuant to this Agreement." Section 3. Effect of Amendment No. 1. Except as modified or amended by this Amendment No. 1, all of the provisions of the Master Agreement shall remain in full force and effect following the effective date of this Amendment No. 1. 2 P:\Agendas\AgendaAttachments\AgendaAttachments\Agrmts-Amend 2009\12-21-09 Funding Reallocation-MECH Amendment No.Ito Master Agreement(Final).doc IN WITNESS WHEREOF, the parties hereto have accepted and made and executed this Amendment No. 1 upon the terms and conditions and with the provisions as set forth above and as of the date first written above. 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: Odd,- By: Agency ounse DEVELOPER Mary Erickson Community Housing, Inc., a California nonprofit public benefit corporation Date: By: Title: 3 P:Wgendas\Agenda Attachments\Agenda Attachments\Agrmts-Amend 2009\12-21-09 Funding Reallocation-MECH Amendment No.Ito Master Agreement(Final).doc I I EXHIBIT "B" 2 Sub-Recipient Amendment No. 1 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 7 P.`,Agendas\Resolutions\Resolutions\2009\12-21-09 Funding Reallocation-MECH AHS Substantial Amendment CDC Reso(Final)doc AMENDMENT NO. 1 TO THE NEIGHBORHOOD STABILIZATION PROGRAM SUB-RECIPIENT AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND AFFORDABLE HOUSING SOLUTIONS OF SAN BERNARDINO, INC. This Amendment No. 1 to the Neighborhood Stabilization Program Sub-Recipient Agreement (this "Amendment No. 1") is entered into on December 21, 2009, by and between the Redevelopment Agency of the City of San Bernardino (the "Agency"), a public body, corporate and politic, and Affordable Housing Solutions of San Bernardino, Inc., a California non-profit public benefit corporation (the "Sub-Recipient"), and is entered into in consideration of the facts set forth in the following Recital paragraphs: -RECITALS- A. The Sub-Recipient and the Agency have previously entered into an agreement entitled "Neighborhood Stabilization Program Sub-Recipient Agreement", dated as of September 21, 2009 (the "Sub-Recipient Agreement"), through which the Sub-Recipient was charged with acquiring properties in furtherance of the Neighborhood Stabilization Program ("NSP") activity known as the Acquisition and Demolition for future development program (the "Demolition Program") and with acquiring properties that could not be purchased with NSP funding for the purpose of demolishing them or rehabilitating them(the "Acquisition Program"). B. The Agency is desirous of working with the Sub-Recipient in acquiring properties for the Demolition Program and has previously provided $600,000 in NSP funding and $1,000,000 in Tax Increment Housing Set-Aside Funds ("Low and Moderate Income Funds") for the purpose of acquiring and demolishing identified 4-plex, multi-family, residential properties within the City as stipulated in the Sub-Recipient Agreement. C. The Sub-Recipient has obligated as of the effective date of this Amendment No. 1 a significant portion of the original NSP funding provided by the Agency after having acquired four (4) of forty (40) properties identified as eligible for acquisition and demolition, to date, by the Agency. This translates to an expenditure of 37% of the Agency's original NSP funding allocation, and there still remains abundant opportunity for the Agency to acquire and demolish blighted properties in the City. D. The expenditure rate for the Demolition Program as described in Recital C above indicates that the Sub-Recipient will need additional funding in order to complete the Demolition Program. 1 P:\Agendas\Agenda Attachments\Agenda Attachments\Agrmts-Amend 2009\12-21-09 Funding Reallocation-AHS Amendment No 1 to Sub-Recipient Agreement(Final).doc 4 E. The Agency is desirous of working with the Sub-Recipient in acquiring properties for the Acquisition Program and has previously provided $2,000,000 in funding from the HOME Investment Partnerships Program ("HOME") for the purpose of acquiring and demolishing or rehabilitating small residential properties throughout the City of San Bernardino that are in a state of disrepair and are not eligible for acquisition using NSP funding. F. The Agency has determined that the execution of the Demolition Program and the Acquisition Program pursuant to the Sub-Recipient Agreement and this Amendment No. 1 and the fulfillment generally of the purposes of the Sub-Recipient Agreement are in the vital and best interests of the City and the Agency. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND CONDITIONS CONTAINED HEREIN, THE AGENCY AND THE SUB-RECIPIENT AGREE AS FOLLOWS: Section 1. References to the Sub-Recipient Agreement; Defined Terms. (a) Unless the context of the usage of a term or phrase in this Amendment No. 1 may otherwise require, the meaning of words and phrases as contained in this Amendment No. 1, which are indicated by an initially capitalized letter, shall be the same as set forth in the Sub-Recipient Agreement. (b) The information contained in the Recitals as set forth in this Amendment No. 1 is true and correct in all respects. Section 2. Specific Amendments to the Sub-Recipient Agreement. (a) The Sub- Recipient Agreement is hereby amended by this Amendment No. 1 in the manner as indicated in this Section 2 and which changes and amendments shall be effective from and after the date of approval of this Amendment No. 1 by the Sub-Recipient and the Agency and execution hereof by the parties. (b) Section 5.13. of the Sub-Recipient Agreement is hereby amended by adding the following at the end of said Section: Additional amounts allocated to Sub-Recipient as of 12/21/09• Source of Funds: Dollar Amount: Low and Moderate Income Housing Funds $1,000,000 (acquisition of non-NSP properties and demolition) NSP (Demolition) $400,000 HOME $500,000 Section 3. Effect of Amendment No. 1. Except as modified or amended by this Amendment No. 1, all of the provisions of the Sub-Recipient Agreement shall remain in full force and effect following the effective date of this Amendment No. 1. 2 P:\Agendas\Agenda Attachments\Agenda Attachments\Agrmts-Amend 2009\12-21-09 Funding Reallocation-AHS Amendment No 1 to Sub-Recipient Agreement(Final).doc IN WITNESS WHEREOF, the parties hereto have accepted and made and executed this Amendment No. 1 upon the terms and conditions and with the provisions as set forth above and as of the date first written above. 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: Agency ourxs 1 SUB-RECIPIENT Affordable Housing Solutions of San Bernardino, Inc., a California non-profit public benefit corporation Date: By: Title: 3 P:\Agendas\Agenda Attachments\Agenda Attachments\Agrmts-Amend 2009\12-21-09 Funding Reallocation-AHS Amendment No I to Sub-Recipient Agreement(Final).doc