HomeMy WebLinkAboutR45-Economic Development
CITY OF SAN BERNARDINO
ECONOMIC DEVELOPMENT AGENCYORlGlNAL
, . t ...
FROM: Emil A. Marzullo
Interim Executive Director
SUBJECT:
Acceptance of funding approval and Grant
Agreement for the Neighborhood Stabilization
Program
DATE:
April 13, 2009
Svnopsis of Previous Commission/Council/Committee Actionls):
On April 9, 2009, Redevelopment Committee Members Johnson, Baxter and Brinker unanimously voted to recommend that the
Mayor and Common Council consider this action for approval.
"""Recom"mend"ed"Moii;;nis):
IMavor and Common Council)
Resolution of the Mayor and Common Council of the City of San Bernardino, California, approving the funding
and Grant Agreement for the Neighborhood Stabilization Program (NSP) Funds as authorized and appropriated
under the Housing and Economic Recovery Act of2008
Contact Person(s):
Project Area(s):
Supporting Data Attached:
Carey K. Jenkins
Phone:
(909) 663-1044
All
N/A
Ward(s):
o Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Letter(s)
FUNDING REQUIREMENTS:
Amount: $ 8,408,588
Source:
Federal Neighborhood Stabilization Program
Budget Authority:
N/A
Signature:
.~~!
Emil A. Marzullo, Interim eculive Director
Fiscal Review:
.Ii ~~{" o'c-(?ly-Y5
Barbara Lindseth, Administrative Services Director
Commission/Council Notes:
".""."""."~.."".""."".""."".""."".""."------"---------------"""
esc.> 2-r?o9 - /0"')
P\Agendas\Comm Dev CommissionlCDC 1009\04-20-09 NSP - FLlnding Acceptance and Gram Agreement SRdoc
COMMISSION MEETING AGENDA
Meeting Date: 04/20/2009
Agenda Item Number: Jl. 4'S'
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
ACCEPTANCE OF FUNDING APPROVAL AND GRANT AGREEMENT FOR THE
NEIGHBORHOOD STABILIZATION PROGRAM
BACKGROUND:
On November 17, 2008, both the Mayor and Common Council of the City of San Bernardino ("Council")
and the Community Development Commission of the City of San Bernardino ("Commission") adopted
the City of San Bernardino Economic Development Agency's ("Agency") Response to Title 1Il of the
Housing and Economic Recovery Act of 2008 Neighborhood Stabilization Program ("NSP"). The
Agency's response consisted of the following four programmatic activities:
I. Down payment assistance;
2. Rental housing opportunities for households at or below 50% of the Area Median Income;
3. Acquisition, demolition for future redevelopment; and
4. Acquisition, rehabilitation and resale of single-family properties.
It also contained funds for an administrative line item for up to 10% of the NSP grant award. In response
to the residential foreclosure crisis, the City of San Bernardino ("City") received $8,408,558. This
amount was based upon pre-determined United States Department of Housing and Urban Development
("HUD") parameters including the overall number and percentage of homes in foreclosure, the number
and percentage of homes financed by subprime mortgages and the projected 18-month foreclosure and
abandonment risk within the City. Since the time of submission of the City's application to HUD,
Agency Staff has been working to further develop the individual program components, procure the
necessary services and identify the appropriate personnel to manage the multi-year NSP award.
CURRENT ISSUE:
Under the terms of the NSP grant, the City has 18 months to obligate the funds it has been awarded. The
18-month period has already been triggered as a result of the signed Grant Agreement received by the
Agency from HUD. It is the intent of the Agency to have the Mayor, serving as the authorized City
official, sign and thus execute the Grant Agreement acknowledging receipt and acceptance of the award
and readiness to draw down funds in support of program efforts.
Based on the terms and conditions of the NSP, the City has 18 months to obligate all funds to specific
project-related activities and 48 months thereafter to spend these funds. The date that HUD officials
signed the Grant Agreement was March 3, 2009. Therefore, it is incumbent upon the City to obligate the
funds to its various programmatic activities on or before September 3, 2010. Under this timeline,
programmatic activities would be in effect through March 3, 2013. Per HUD requirements, if the funds
are not obligated within the 18-month deadline, the unspent NSP allocation would be recaptured.
?\AgcndasIComm De\' CommissionlCDC 100<)\04-20-09 NSP - Funding Acceptance and Grant Agreement SR. doc
COMMISSION MEETING AGENDA
Meeting Date: 04/20/2009
Agenda Item Number: ~
Economic Development Agency Staff Report
Neighborhood Stabilization Program - Grant Agreement
Page 2
ENVIRONMENTAL IMP ACT:
None.
FISCAL IMP ACT:
There is no impact on the City's General Fund. As a result of accepting the NSP grant award, the City
would be entitled to $8,408,558 in housing-related funds to combat residential foreclosures.
RECOMMENDATION:
That the Mayor and Common Council adopt the attached Resolution.
~'-~
Emil A. Marzullo, Interim Executive Director
P\Agendas\Comm De\' CornmissionlCDC 2009\04.20_09 NSP _ Funding Acceptance and Grant Agreement SR.doc
COMMISSION MEETING AGENDA
Meeting Date: 04/20/2009
Agenda Item Nnmber: Jl..~
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RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMO]'; COUNCIL OF THE CITY
OF SAN BERNARDINO, CALIFORNIA, APPROVING THE FUNDING AND
GRANT AGREEMENT FOR THE NEIGHBORHOOD STABILIZATION
PROGRAM (NSP) FUNDS AS AUTHORIZED AND APPROPRIATED
UNDER THE HOUSING AND ECONOMIC RECOVERY ACT OF 2008
5
WHEREAS. in Fiscal Year 2008-2009. the City of San Bernardino, California (the --City'). I
7 IS entitled to receive $8,408,558 from the United States Department of Housing and Urbani
6
8 Development ("HUD") under the Neighborhood Stabilization Program CNSP") for the purpose of
9 redeveloping abandoned and foreclosed homes and residential properties as authorized under Title
10 1II Division B of the Housing and Economic Recovery Act ("HERA") of2008; and
II
WHEREAS. the NSP is subject to certain statutory and regulatory provisions governing the
12 Community Development Block Grant CCDBG") program as necessitated by HERA; and
13
WHEREAS, the City, as a direct recipient ofCDBG Funds has submitted to HUD and HUD
14 has approved a Consolidated Plan for Fiscal Years 2005-2010 and a Consolidated Annual Action
15 Plan for Fiscal Year 2008-2009 (the "Action Plan"); and
16
WHEREAS, the City, as required by the NSP. prepared and submitted a substantial
17 amendment to the Action Plan to HUD on November 19, 2008. in accordance with the consolidated
18 plan procedures for a substantial amendment under the annual CDBG program; and
19
WHEREAS, the City's substantial amendment to the Action Plan called for the provision of
20 the following Program components: (1) down payment assistance for eligible home buyers; (2)
21 rental housing opportunities for households at or below 50% of the Area Median Income; (3)
22 acquisition, demolition for future redevelopment; and (4) acquisition rehabilitation and resale of
23 single-family properties; and
24
WHEREAS, the City shall have 18 months from the date of HUD's execution of the funding
25 and Grant Agreement to obligate the NSP grant amount pursuant to the requirements of HERA; and
26
WHEREAS, the City shall have 48 months from the date of HUD's execution of the funding
27 and Grant Agreement to fully expend the NSP grant amount; and
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Pc'\gendas\Resolutions',.Resolull0n5'~()O<)'Jl4.10-(i'l )\;SP Funding and Gram Agreement MCC Reso dele
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WHEREAS, the City seeks to redevelop abandoned and foreclosed homes and
2 residential properties to address the significant costs that foreclosure activity imposes on local
31i municipalities and neighborhoods
4 . NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED BY
5 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS
6 FOLLOWS:
7 Section L That the Common Council hereby approves and authorizes the Mayor as the
8 authorized ot1lcial of the City to execute the NSP Grant Agreement as provided by HUD for the
9 purpose of the redevelopment of abandoned and foreclosed homes and residential properties as such
10 Grant Agreement is attached to this Resolution as Exhibit "A".
11 Section 2. This Resolution shall take effect upon its adoption and execution in the manner
12 as required by the City Charter.
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P\A~enda>'.Resolution5\Resolulion>2009',O...2.0.09 r-;SP Funding and Gran! ..I,grcernem Mer R~so doc
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO, CALIFOR."iIA, APPROVING THE FUNDING AND
GR.4.NT AGREEMENT FOR THE NEIGHBORHOOD STABILIZATION
PROGR4.M C'iSP) FUNDS AS AUTHORIZED AND APPROPRIATED
UNDER THE HOUSING AND ECONOMIC RECOVERY ACT OF 2008
1 HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
5
meeting thereof.
Common Council of the City of San Bernardino at a
6
L held on the day of . 2009, by the following vote to wit:
7 ;
Council Members:
Navs
Abstain
Absent
Aves
8
ESTRADA
9 "
iBAXTER
I
III BRINKER
I
11 SHORETT
12
KELLEY
13 I JOHNSON
141 'vIC CAMMACK
1511
16 II
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18, The foregoing Resolution is hereby approved this
191i
Rachel G. Clark. City Clerk
day of
.2009.
Patrick J. Morris. Mayor
City of San Bernardino
2ll
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221 Approved as to Form:
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24 mes F.Penman. City Attorney
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261
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p A~~ndJs'Re",ill11,'n' R.'nl"lI()~s ~'X"'I-'';.:0J',) '\SP FUl\uIII;: .nd Granl A~lcem~n: \1(C Re", Od"
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1 EXHIBIT "'X"
2 Grant Agreement
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I r \Agendas\R~olul'Ons\Re>olull0n>'200q',04.2C1-0<l NSP Fl.lndin,y and Grant Agreement '-iCe Reso doc
FUNDING APPROVAL AND GRANT AGREEMENT FOR
NEIGHBORHOOD ST ABILIZA TION PROGRAM (NSP) FUNDS
AS AUTHORIZED AND APPROPRIATED UNDER THE
HOUSING AND ECONOMIC RECOVERY ACT OF 2008
(PUBLIC LAW 110-289, JULY 30, 2008)
NSP GRANTEE:
City of San Bernardino
NSP GRANT NUMBER:
B-08-MN-06-0520
NSP GRANT AMOUNT:
$8,408,558
NSP APPROVAL DATE:
MAR _? w
This Grant Agreement between the Department of Housing and Urban Development (HUD) and
City of San Bernardino (Grantee) is made pursuant to the authority of sections 2301 - 2304 of
the Housing and Economic Recovery Act of 2008 (Public Law 110-289 (July 30, 2008))
(HERA). The program established pursuant to section 2301-2304 is known as the
"Neighborhood Stabilization Program" or "NSP." The Notice of Allocations, Application
Procedures, Regulatory Waivers Granted to and Alternative Requirements for Redevelopment of
Abandoned and Foreclosed Homes Under the Housing and Economic Recovery Act, 2008
published at 73 FR 58330 (October 6,2008) (Notice); HERA; the Grantee's submission for NSP
assistance (Grantee Submission); the HUD regulations at 24 CFR Part 570 (as modified by the
Notice and as now in effect and as may be amended from time to time) (Regulations); and this
Funding Approval, including any special conditions, constitute part of the Grant Agreement.
Subject to the provisions of this Grant Agreement, HUD will make NSP Grant Funds in the
amount of $8,408,558 available to the Grantee upon execution of this Grant Agreement by the
parties. The Grantee shall have 18 months from the date of HUD's execution of this Grant
Agreement to obligate the NSP Grant Amount pursuant to the requirements of HERA and the
Notice. The Grantee shall have 48 months from the date of HUO's execution of this Grant
Agreement to expend the NSP Grant Amount pursuant to the requirements of the Notice. The
NSP Grant Funds may be used to pay eligible costs arising from eligible uses incurred after the
NSP Approval Date provided the activities to which such costs are related are carried out in
compliance with all applicable requirements. Pre-award planning and general administrative
costs may not be paid with funding assistance except as permitted in the Notice; the Notice limits
such costs to those incurred on or after September 29,2008. Other pre-award costs may not be
paid with funding assistance except as permitted by 24 CFR 570.200(h); for purposes of NSP,
such costs are limited to those incurred on or after the date that the NSP substantial amendment
was received by HUD.
2
The Grantee agrees to assume all of the responsibilities for environmental review,
decisionmaking, and actions, as specified and required in regulations issued by the Secretary
pursuant to Section 104(g) of Title I of the Housing and Community Development Act, as
amended (42 U.S.c. 5304) and published in 24 CFR Part 58. The Grantee further acknowledges
its responsibility for adherence to the Grant Agreement by sub-recipient entities to which it
makes funding assistance hereunder available.
This Grant Agreement may be amended only with the prior written approval of HUD. In
considering proposed amendments to this Grant Agreement, HUD shall review, among other
things, whether the amendment is otherwise consistent with HERA, the Notice, and the
Regulations.
The Grantee may amend its Grantee Submission; however, such amendments, including
substantial amendments as defined in 24 CFR Part 91, will be subject to the requirements of 24
CFR Part 91 (or any successor regulation) and any revisions HUD may make to the Notice (or
any successor Notice or regulation).
The Grantee shall at all times maintain an up-to-date copy of its Grantee Submission, including
all amendments approved by HUD, on its Internet web site as required by the Notice. Further,
the Grantee shall maintain information on all drawdowns, deposits, and expenditures of grant
funds and program income under this Funding Approval and Grant Agreement and any other
records required by 24 CFR 570.506, in its files and shall make such information available for
audit or inspection by duly authorized representatives of HUD, HUD's Office of the Inspector
General, or the Comptroller General of the United States.
The Grantee shall submit information on performance measurement as established by the
Secretary for acti vities undertaken with NSP grant funds.
The Grantee is advised that providing false, fictitious or misleading information with respect to
NSP Grant Funds may result in criminal, civil or administrative prosecution under 18 USC
~1001, 18 USC S1343, 31 USC s3729, 31 USC s3801 or another applicable statute.
Close-out of this grant shall be subject to the provisions of 24 CFR 570.509 or such close-out
instructions as may hereafter be issued by HUD specifically for NSP grants.
3
This NSP Grant Agreement is binding with respect to HUD in accordance with its terms upon
the execution by HUD in the space provided above, subject to execution on behalf of the
Grantee.
The United States Department of
Housing and Urban Development
Signature of Authorize
William G. Vasquez
Name of Authorized Official
Director
Community Planning and Development
Title of Authorized Official
;7 @It!
Date of ta re /
For HUD CFO Use Onlv
Current Balances
Increase&nDecreases
The Grantee
City of San Bernardino
Signature of Authorized Offical
Name of Authorized Official
Title of Authorized Official
Date of Signature
95-6000772
Grantee Tax Identification Number
Ending Balance
Date