HomeMy WebLinkAboutR38-Economic Development
CITY OF SAN BERNARDINO
ECONOMIC DEVELOPMENT AGENCY
ORIGINAL
FROM: Emil A. Marzullo
Interim Executive Director
SUBJECT:
Neighborhood Housing Services of the Inland
Empire ("NHSIE") Qnarterly Update of
Program Activities
DATE:
April 28, 2009
SvnoDsis of Previous Commission/CounciVCommittee Action{s):
On April 23, 2009, Redevelopment Committee Members Johnson, Baxter and Brinker unanimously voted to recommend that
the Community Development Commission consider this action for approval.
Recommended Motion(s):
(Communitv Development Commission)
MOTION: That the Community Development Commission of the City of San Bernardino receive and file the Neighborhood
Housing Services of the Inland Empire ("NHSIE") Quarterly Report through March 31, 2009
Contact Person(s):
Carey K. Jenkins
Phone:
(909) 663-1044
All
Project Area(s):
Supporting Data Attached:
N/A
Ward(s):
o Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Letter(s)
Funding Requirements:
Amount: $
-0-
Source:
N/A
Budget Authority:
N/A
Signature:
~
Fiscal Review:
/
ervices Director
__ _______________________~ __________ ______________________________________________________________________________________________ _____________________________________n______________________________________
Commission/Council Notes:
PIAgendas\Comm Dev CommissionlCDC 20()l)I05-04-09 NHSIE Program Activities SRdoc
COMMISSION MEETING AGENDA
Meeting Date: 05104/2009
Agenda Item Number: fJ. '3 g
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE ("NHSIE")
QUARTERLY UPDATE OF PROGRAM ACTIVITIES
BACKGROUND:
Since September of 1999, the Redevelopment Agency of the City of San Bernardino ("Agency") has
contracted with Neighborhood Housing Services of the Inland Empire ("NHSIE") to perform certain functions
associated with the Agency's housing program. These services include implementing the Single-Family
Beautification Loan/Grant Program, Mobile Home Grant Program and the Homebuyer Education Program
(collectively, "Programs").
Smele-Famzlv Beautification Grant/Loan Program: Based on residency and income eligibility criteria,
homeowners can access a grant not to exceed $15,000 for the beautification of the exterior of their property
and/or receive a low-interest deferred payment loan not to exceed $50,000 for health and safety repairs and
overall rehabilitation to their property.
Mobile Home Grant Proeram: Based on residency and income eligibility criteria, homeowners can access a
grant of up to $5,000 to undertake certain housing rehabilitation and correction work necessary to improve the
quality of their mobile homes.
Homebuver Education Prozram: A sixteen (16) hour course held for the purpose of educating first-time
homebuyers on the homeownership process. Topics include; Real Estate Purchase Contract, Mortgage Loan
Products and Insurance Policies. In addition, the class educates homeowners in home maintenance and
property preventive care. This class is free of charge to attendees fulfilling the Homebuyer Assistance
Program ("HAP") requirement and a Fifty-Dollar ($50) charge to attendees fulfilling the Beautification
Grant/Loan Program requirements.
On October 20, 2008, the Agency's Integrated Housing Strategy ("Strategy") was approved by the Community
Development Commission of the City of San Bernardino ("Commission"). Included in the Strategy is a key
component of single-family homeownership and neighborhood revitalization, designed to enhance residential
neighborhoods and promote home ownership. The activities associated with the homeowner beautification
grant and rehabilitation loan programs administered by NHSIE are an integral part of this component.
CURRENT ISSUE:
For the FY 2008-2009, the Agency has allocated to NHSIE activities, a budget of $2.1 million taken from its
Low and Moderate Income Housing Funds and HOME Funds for the implementation of the Programs. The
current breakdown offunds is as follows:
ACTIVITY SOURCE AMOUNT
Program Administration - Single-Family Beautification Grant/Loan Program Low/Mod $320,000
Program Administration - Mobile Home Grant Program HOME $40,000
Pre-Development Costs' Low/Mod $5,000
Mobile Home Grant Program HOME $160,000
Single-Family Beautification Grant/Loan Program Low/Mod $1,575,000
TOTAL $2,100,000
P\Agenda:;\Comm Dev CommissionlCDC 2009\05-04-09 NHSIE Program Activities SR doc
COMMISSION MEETING AGENDA
Meeting Date: 05/04/2009
Agenda Item Nnmber: -1.3 S?
Economic Development Agency Staff Report
NHSJE Quarterly Program Activities Update
Page 2
*Includes costs such as cancelled title policies, architecture and engineering, lead-based paint testing and
inspections, as necessary.
For the quarter ending March 31, 2009, NHSIE completed 10 beautification grants, 0 beautification loans and
2 mobile home grants. This is equal to 12 separate transactions for the quarter. From July 1,2008, through
March 31, 2009, NHSIE has completed 48 beautification grants, I beautification loan and II mobile home
grants for a total of 60 separate transactions, current fiscal year-to-date.
From an expenditure standpoint, NHSIE expended a total of $156,622 for the first calendar quarter of 2009
and $792,482 fiscal year-to-date in direct Program delivery activities. The table below details the number of
completed activities, levels of expenditures and average cost per transaction for the quarter and year-to-date by
Pro gram type.
Program Completed Activities Expenditure Avg. Transaction Cost
Mar 31 Otr FY-to-D Mar 31 Otr FY-to-D Mar310tr FY-to-D
Beautification 10 48 $149,442 $691,997 $14,944 $14,417
Grant
Beautification Loan 0 I $0 $50,000 $0 $50,000
Mobile Home Grant 2 II $7,180 $50,485 $3,590 $4,590
TOTAL 12 60 $156,622 $792,482 $13,052 $13,208
Please see Attachments I and 2 for the locations of the program activities and approved funding indicated by
Ward. The two maps identify this information on a quarterly basis through March 31, 2009, and a fiscal year-
to-date through March 3 I , 2009.
Proposed Activities
The Agency is presently working with NHSIE to create a goal oriented program and identify areas of the City
within specific Wards where the Agency may look to target these funds and use them in conjunction with
other foreclosure mitigation activities such as the Neighborhood Stabilization Program ("NSP"). In July of
2009, NHSIE will be entering into the final year of a three-year contract. In anticipation of this, and as a way
to start shaping general policy goals and objectives for the next funding cycle, Agency Staff is in the process
of amending the NHSIE Program contract. The goal of such an amendment is to begin the process of
improving the ease of contract management and stressing more performance based measures. It is anticipated,
the amended agreement would be presented to the Commission for consideration within the next 6-8 weeks.
Under consideration for general Program modification includes:
o Separating the existing Single-Family Beautification Loan/Grant and Mobile Home Grant Program
and HOME Agreement contracts into four (4) individual agreements to include the Beautification
Grant Program, Rehabilitation Loan Program, Mobile Home Grant Program and Homebuyer
Education Program.
o Potentially targeting the Program to specific areas of the City to better maximize the effectiveness of
Program funds. Should the Agency request this targeting in specific areas, Agency Staff would
provide them to NHSIE for implementation.
P\AgendaslComm Dev Comrnission\CDC 2009\05-04-09 NIlSIE Program Activities SR,doc
COMMISSION MEETING AGENDA
Meeting Date: 05/04/2009
Agenda Item Number: P-3 f
Economic Development Agency Staff Report
NHSIE Quarterly Program Activities Update
Page 3
o Implementing a Program Review Committee, consisting of NHSlE and Agency Staff, to review and
mutually approve each grant or loan application prior to award and execution.
o Adding a ten (I O)-year Maintenance Covenant to the existing Eligibility Requirements.
o Including certain language within the new loan and grant agreement prohibiting the joint and
simultaneous use of grant and loan funds.
o Requiring that all applicable maintenance and affordability covenants and other grant documentation
be reviewed and signed by Agency Staff and recorded by the San Bernardino County Recorder's
Office prior to work being started.
o Requiring that NHSIE contact Agency Staff to complete project inspection (within 10 business days
after request) prior to payment of any invoices. No payments will be made until final inspection is
approved and signed off by Agency Staff.
o Identifying specific numerical targets for the number of transactions and the administrative costs
associated with each transaction.
o Potentially modify dollar amount and allocation formula.
ENVIRONMENTAL IMP ACT:
None.
FISCAL IMPACT:
There is no General Fund impact to the City. The contract between the Agency and NHSIE has been funded
for FY 2008-2009, and is derived from the Agency Housing Set Aside Funds and HOME Funds.
RECOMMENDATION:
That the Community Development Commission adopt the Motion.
JA~tfn-)
Emil A. Marzullo, Interim Executive Director
P\AgendaslComm Dev Commis,ionlCDC 2009\05-04-09 NHSIE Program Activities SR doc
COMMISSION MEETING AGENDA
Meeting Date: 05/04/2009
Agenda Item Number: (l3 ,
Attachment 1
Activities for FY 2008-2009 through March 31,2009
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No Amount No Amount No Amount No Amount
1 4 $60,000,00 1 $5,000.00 5 $65,000.00
2 6 $88,610.00 6 $88,610.00
3 6 $79,942.50 2 $5.830.00 8 $85 772.50
4 6 $86,435.00 2 $9,500,00 $50,000.00 9 $145,935.00
5 6 $87,666.00 6 $87,666.00
6 14 $200,493.00 5 19 $225 708.00
7 6 $88850.00 1 7 $93790.00
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Activities for Quarter through March 31, 2009
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$14,964.00
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