HomeMy WebLinkAbout06.D- City Manager 6.D
RESOLUTION (ID # 4563) DOC ID: 4563 D
CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION
Agreement/Contract
From: Brandon Mims M/CC Meeting Date: 08/01/2016
Prepared by: Brandon Mims, (909) 384-
5122
Dept: City Manager Ward(s): All
Subject:
Resolution of the Mayor and Common Council of the City of San Bernardino Authorizing
the City Manager to Execute an Amendment to the Agreement Between the City of San
Bernardino and Neighborhood Housing Services of the Inland Empire for the Increase in
Funding to the First-Time Homebuyer Program. (#4563)
Current Business Registration Certificate: Not Applicable
Financial Impact:
Account Budgeted Amount: $600,000
Account No. 117-100-2329*5502
Account Description: Professional/Contractual Services
Balance as of 12/21/2015: $1,500,000
Balance after approval of this item: $900,000
Motion: Adopt the Resolution.
The Homebuyer Assistance Program provides financial assistance (of up to 10 percent
of the purchase price) that may go towards down payment and closing costs. The
homes purchased under this program may be located in any census tract in the City of
San Bernardino, as long as the dwelling is used as the homebuyer's principal residence
and the home remains affordable for a period of not less than twenty (20) years. The
Homebuyer Education Program will be implemented, in-house by Staff. As a condition
of the program, eligible homebuyers are required to attend a 16 hours homebuyer
education program on property maintenance, budgeting and requirement for buying and
selling homes.
Previous Council Action:
On December 21, 2015, the Mayor and Common Council approved Resolution #4173,
which approved the agreement between the City and Neighborhood Housing Services
of the Inland Empire and allocated $600,000 of HOME funding to the project.
Current Issue:
In order to continue offering this service to the residents of San Bernardino, the Mayor
and Common Council must approve an amendment to the agreement between the City
and Neighborhood Housing Services of the Inland Empire, allocating an additional
$250,000 to the program.
Updated: 7/25/2016 by Linda Sutherland D Packet Pg. 563
6D.
4563
Financial Impact
This activity is part of the City's existing HOME projects/commitments and funding
amount is available in the City's HOME program credit line. Payments to
NHSIE/escrow shall be made from 117-100-0014-5502 and shall not exceed the total
contract value of$250,000.
Environmental Impact:
The requested action is exempt under Section 15332 of the California Environmental
Quality Act ("CEQA") and 24 CFR 58.34(a)(3) of the National Environmental Protection
Act ("NEPA") guidelines because the proposed action is required for federal program
administration and compliance. Separate environmental clearances will be processed
for each project as they are identified and processed for funding.
Recommendation:
Staff recommends adoption of the attached Resolution.
City Attorney Review:
Supporting Documents:
Homebuyer Assistance (DOC)
agrmt. 4563 (PDF)
taw HAP Agreement (PDF)
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Updated: 7/25/2016 by Linda Sutherland D PacketPg. 564'
1 RESOLUTION NO:
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY O
2 SAN BERNARDINO AUTHORIZING THE CITY MANAGER TO EXECUTE A
3 AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF SAN BERNARDIN
AND NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE FOR THE
4 INCREASE IN FUNDING TO THE FIRST-TIME HOMEBUYER PROGRAM.
5
WHEREAS, the City of San Bernardino (the "City") is an entitlement jurisdiction and E
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7 annually receives certain federal funds under the United States Department of Housing and Urban E
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8 Development's ("HUD") HOME Investment Partnership Act ("HOME") and Community 2-
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9 Development Block Grant (CDBG)programs; and a
as
10 WHEREAS, on April 6, 2015, the Mayor and Common Council adopted Resolution 2015-
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11 170, approving the City's 2015-2020 Consolidated Plan; and =
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WHEREAS, on April 6, 2015, the Mayor and common Council adopted Resolution 2015-
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70, approving the 2015-2016 Action Plan that is required to guide and identify needs the City will `L
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15 address incrementally for the 2015-2020 period; and
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16 WHEREAS, on December 21, 2015 the Mayor and Common Council adopted Resolution o
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17 2015-189, authorizing the City Manager to execute an agreement between the City of San
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18 Bernardino and Neighborhood Housing Services of the Inland Empire for the implementation of the c
19 First-Time Homebuyer Program. N
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WHEREAS, NHSIE Inc., is a non- profit organization that provides the First-Time
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Homebuyer Program and has provided the services in the City and County in the past; and E
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23 WHEREAS, under terms of the First-Time Homebuyer Program, NHSIE will provide
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24 homebuyer education in home maintenance, homebuyer coaching and literacy education, and
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25 foreclosure prevention; and
26 WHEREAS, in compliance with the California Environmental Quality Act ("CEQA" and
27 the National Environmental Protection Act ("NEPA) guidelines, the authorization and execution of
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this Agreement is determined to be an exempt action pursuant to Section 15332 of the CEQA
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Packet Pg. 565'
1 Guidelines and 24 CFR 58. 34(a)(3) of NEPA Guidelines because the propose action is required for
2 federal programs administration and compliance.
3
4 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
5 Section 1. The Mayor and Common Council hereby approve an additional $250,000 in d
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6 HOME funds for the Homebuyer Education Service Agreement with NHSIE, Inc., and HOME
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7 funds for the Homebuyer Down payment Assistance Program; and authorize the City Manager to <
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execute the Amendment to the Agreement, attached hereto as Exhibit"A" and incorporated herein. o
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Section 2. The Mayor and Common Council find and determine that authorization and
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11 execution of the Agreement is exempt, pursuant to Section 15332 of the CEQA Guidelines and 24 E
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12 CFR 58. 34 (a)(3) of the NEPA Guidelines because the propose action is required for federal E
13 programs administration and compliance.
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14 Section 3. That the total contract amendment amount shall not exceed $250,000, to be c
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15 paid from the City Manager's Department 2015/2016 HOME Investment Partnership Program N
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(HOME). N
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18 Section 4. That a copy of this Resolution shall remain on file in the City Clerk's Office
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19 for a minimum of seven (7) years after the date of adoption. v
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20 Section 5. This Resolution shall take effect upon its adoption and execution in the Q
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21 manner as required by the City Charter.
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I RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY O
SAN BERNARDINO AUTHORIZING THE CITY MANAGER TO EXECUTE A
2 AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO
AND NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE FOR THE
3 INCREASE IN FUNDING TO THE FIRST-TIME HOMEBUYER PROGRAM.
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I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
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6 Common Council of the City of San Bernardino at a meeting thereof,
7 held on the day of , 2016,by the following vote to wit: Q
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Council Members: Armes Nays Abstain Absent °
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10 MARQUEZ
BARRIOS E
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VALDIVIA
12 SHORETT
13 NICKEL
14 RICHARD
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15 MULVIHILL
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Georgeann Hanna, City Clerk
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20 The foregoing resolution is hereby approved this day of , 2016. CD
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R. Carey Davis, Mayor E
24 City of San Bernardino
Approved as to Form: Q
25 Gary D. Saenz, City Attorney
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By:
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Packet,Pg.567
FIRST AMENDMENT TO AGREEMENT FOR USE OF HOME
INVESTMENT PARTNERSHIP GRANT FUNDS BETWEEN. THE CITY
OF SAN BERNARDINO AND NEIGHBORHOOD HOUSING
SOLUTIONS OF THE INLAND EMPIRE
This First Amendment to an Agreement for use of Home Investment Partnership
Grant funds with Neighborhood Housing Solutions of the Inland Empire is entered into this
day of 2016, by and between Neighborhood Housing Solutions of the
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Inland Empire ("SUBRECIPIENT") and the City of San Bernardino ("CITY" or "San E
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Bernardino"). E
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WITNESSETH:
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WHEREAS, On December 21, 2015 the City and Neighborhood Housing Solutions of
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the Inland Empire entered into an Agreement for use of Home Investment Partnership Grant
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funds for a term ending on June 30, 2016; and =
WHEREAS, it is the desire of the parties to increase the amount allocated to ~
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Neighborhood Housing Solutions of the Inland Empire in this agreement by $250,000.
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NOW,THEREFORE,the parties hereto agree as follows:
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1. "Section 3. HOME Funds Allocation is hereby amended to reflect an additional $250,000,
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for a total contract value of$850,000.
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All other terms and conditions of the Agreement shall remain in full force and effect =
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Packet Pg. 568
FIRST AMENDMENT TO AGREEMENT FOR USE OF HOME
INVESTMENT PARTNERSHIP GRANT FUNDS BETWEEN THE CITY
OF SAN BERNARDINO AND NEIGHBORHOOD HOUSING
SOLUTIONS OF THE INLAND EMPIRE
IN WITNESS THEREOF,the parties hereto have executed the Agreement on the day
and date first above written.
NEIGHBORHOOD HOUSING
SOLUTIONS OF THE INLAND EMPIRE
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Dated: , 2016 By: E
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Dated: ,2016 CITY OF SAN BERNARDINO
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By: E
Mark Scott, City Manager N
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Approved as to Form:
Gary D. Saenz, City Attorney LO
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Home Investment Partnerships(HOME)
SUBRECIPIENT AGREEMENT
Between the City of San Bernardino and
Neighborhood Housing Services of the Inland Empire
for the implementation of the Homebuyer Assistance Program
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This Agreement is entered into this ?t day of December2015 ("Agreement"), by and
between the City of San Bernardino ("CITY"), and Neighborhood Housing Services of the Inland
Empire,Inc.,a California non-profit corporation("NHSIE").
WITNESSETH
WHEREAS, the City of San Bernardino("City") entered into a contract with the United States
Department of Housing and Urban Development("HUD")to implement the City's HOME Investment
Partnerships ("HOME") Program under Title II of the Cranston-Gonzalez National Affordable
Housing Act,as amended;and
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WHEREAS, the CITY is to administer its HOME Program as a subrecipient, to carry-out all
00%� actions necessary to implement HOME Program objectives of providing and preserving affordable
housing to eligible low-income individuals and households;and
WHEREAS, the Mayor and Common Council of the City of San Bernardino("Council")as the
governing body of the City approved the implementation of the Homebuyer Assistance Program
("Program")in the 2015-2020 Consolidated Plan and the 2015-2016 Action Plan;and
WHEREAS, CITY desires to cooperate with NHSIE in the implementation of the Program by
reason of experience,preparation,organization,staffing,and facilities to carry out program activities.
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NOW, THEREFORE, in consideration of the mutual covenants herein set forth and the mutual
benefits to be derived therefrom,the parties agree as follows:
1. Definitions '
For the purpose of this agreement,the following terms shall be defined to wit:
Income is the gross amount of income of all adult household members that is anticipated to be
received during the coming 12-month period which shall include wages,salaries,tips,bonuses,
commissions, dividends, interest and any other form of income generally considered as gross
income as defined in 24 CFR 5.609,referred to as"Part 5 annual income".
HOME means the Home Investment Partnerships Program as described in 24 CFR Part 92.
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HOME funds means funds made available under this contract,plus all repayments and interest !
or other return on the investment of these funds.
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Homeownership means ownership in fee simple title or a 99 year leasehold interest in a on-
to-four unit dwelling or in a condominium unit, ownership or membership in a cooperative or
equivalent form of ownership approved by HUD. The ownership interest may be subject only
to restrictions on resale if required under 24 CFR§92.254.
HUD means the United States Department of Housing and Urban Development.
Low-Mod Income Household means a household whose annual incomes do not exceed eighty
percent(80%)of the median income for the City,as determined by HUD.
Program means the Homebuyer Assistance Program.
2. Scope of Services/Use of HOME funds
NHSIE shall perform all the services described and set forth in the Scope of Services attached
hereto as Exhibit "A" to this Agreement and incorporated herein by this reference. NHSIE
hereby agrees to perform the work set forth in the Scope of Services, in accordance with the
terms of this Agreement and HOME Final Rule.
NHSIE represents that it has all personnel and materials required in performing the services
under this Agreement.
The CITY may, from time to time, request changes in the Scope of the Services to be
performed by NHSIE. Changes must be mutually agreed upon by and between CITY and
NHSIE and shall be incorporated in written amendments to this Agreement.
3. HOME Funds Allocation
NHSIE shall be funded an allocation not exceeding six hundred thousand dollars
($600,000.00), to carry out Program objectives in accordance with the Scope of Services.
Subsequent HOME Program funding allocations may be authorized based on need and funding
availability. Any future allocations shall be subject to Council approval.
A maximum 10% allowance for eligible program administration expenses may be charged
against the total HOME funds allocation for this Agreement,
4. Time of Performance
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Services are to commence upon execution of this Agreement, and shall continue until f
terminated by either Party. This Agreement shall specifically apply to the 2015/2016 Action I
Plan year HOME allocation and may continue in full force and effect until HOME funds 3
allocated have been fully expended.
Nothing contained herein shall require the City to appropriate HOME funds for subsequent
fiscal years nor shall the parties be obligated to utilize this Agreement for any such future
appropriations.
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5. Disbursement of HOME Funds for Eligible Costs
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program Costs:Upon receipt of proper eligibility documentation and execution of all HAP loan
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documents, CITY shall wire HOME funds to escrow for the purchase of the eligible property
by the qualified buyer.
Administration Costs: CITY shall reimburse NHSIE for up to 10% of HOME allocation under
this Agreement, for actual Program administration costs incurred. prior to reimbursement of
program administration costs,NHSIE shall provide to CITY a copy of its Cost Allocation Plan
that identifies any salaries, fringe benefits, supplies and materials and other project indirect
costs being charged to the Program. NHSIE shall present proper supporting documentation
attached to the invoice for administration costs. Only those allowable costs directly related to
this Agreement shall be paid.The amount of each request must be limited to the amount needed
for payment of eligible costs.
NHSIE may not request funds in excess of what is needed for reimbursement of eligible
HOME costs.
NHSIE shall mail a Request for Reimbursement to:
City of San Bernardino
ATTN:Brandon Mims,Housing Deputy Director
300 North"D"Street, Sixth Floor
San Bernardino,CA 92401
Payments shall be issued upon receipt of proper supporting documentation, and may be
contingent upon certification of NHSIE's financial management system in accordance with the
standards specified in 24 CFR 84.21.
The CITY reserves the right to withhold payments pending timely delivery of program reports
or documents as may be required under this agreement.
In the event that the CITY, or HUD determine that any funds were expended by NHSIE for
unauthorized or ineligible purposes or the expenditures constitute disallowed costs in any other
way,the CITY, or HUD may order repayment of the same. NHSIE shall remit the disallowed
amount to CITY within thirty(30)days of written notice of the disallowance.
6. Documentation of Costs
All costs shall be supported by properly executed payrolls,time records, invoices, vouchers or
other official documentation, as evidence of the nature and propriety of the charges. All
accounting documents pertaining in whole or in part to this Agreement shall be clearly
identified and readily accessible, and upon reasonable notice, the CITY and HUD shall have
the right to audit NHSIE records as they relate to the Agreement and the activities and services
described herein. NHSIE shall also:
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a) Maintain an effective system of internal fiscal control and accountability for all HOME
funds,and make sure the same are used solely for authorized purposes.
b) Keep a continuing record of all disbursements by date, check number, amount, vendor,
description of items purchased and line item from which the money was expended, as
reflected in NHSIE's accounting records.
c) Maintain payroll, financial, and expense reimbursement records for a period of five (5)
years after receipt of final payment under this Agreement.
d) Repay the CITY any funds in its possession at the time of the termination of this
Agreement that may be due to the City or HUD.
7. Uniform Administrative Requirements
NHSIE must comply with applicable uniform administrative requirements, as described in 24
CFR 92.505.
8. Financial Management
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a) Accounting Standards: NHSIE agrees to comply with 24 CFR 84.21--28 and agrees to
adhere to the accounting principles and procedures required therein, utilize adequate
internal controls, and maintain necessary source documentation for all costs incurred.
b) Cost Principles: NHSIE shall administer the Program in conformance with OMB
Circulars A-122, "Cost Principles for Non-Profit Organizations". These principles shall
be applied for all costs incurred whether charged on a direct or indirect basis.
9. Documentation and Record Keeping
a) Documentation: NHSIE shall maintain all records required by the Federal regulations
specified in 24 CFR 570.506 that are pertinent to the activities to be funded under this
Agreement. Such records shall include but are not be limited to:
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• Records providing a full description of each activity undertaken
■ Records required to determine the eligibility of activities
■ Records documenting compliance with the fair housing and equal
opportunity components of the HOME program;
■ Financial records as required by 24 CFR 570.502, and 24 CFR 84.21-28;
and
■ Other records necessary to document compliance with Subpart K of 24 CFR
Part 570.
b) Retention: NHSIE shall retain all financial records, supporting documents, statistical
records, and all other records pertinent to the Agreement for a period of five (5) years.
The retention period begins on the date of the submission of the City's annual
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performance and evaluation report to HUD in which the activities assisted under the
Agreement are reported on for the final time.
Notwithstanding the above, if there are litigation, claims, audits, negotiations or other
actions that involve any of the records cited and that have started before the expiration of
the five year period, then such records must be retained until completion of the actions
and resolution of all issues, or the expiration of the five year period, whichever occurs
later.
c) Client Data: NHSIE shall maintain client data demonstrating client Program eligibility.
Such data shall include,but not be limited to,client name, address, income level or other
basis for determining eligibility, demographic information and description of service
provided. Such information shall be made available to the CITY and HUD or their
designees for review upon request.
d) Disclosure:NHSIE understands that client information collected under this Agreement is
private and the use or disclosure of such information, when not directly connected with
the administration of the Program provided under this Agreement, is prohibited unless
written consent is obtained from such person receiving assistance.
e) Audits & Inspections: NHSIE`s records with respect to any matters covered by this
Agreement shall be made available to the CITY HUD, and any of their authorized
representatives at any time during normal business hours, as often as deemed necessary,
to audit,examine, and make excerpts or transcripts of all relevant data. Any deficiencies
noted in audit reports must be fully cleared by NHSIE within thirty (30) days after
receipt by NSHIE. Failure of NHSIE to comply with the above audit requirements will
constitute a violation of this Agreement and may result in the withholding of future
payments. t
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NHSIE is required to arrange for an independent financial and compliance audit annually
for HOME funds received under this Agreement. An audit may also be conducted by
Federal, State or local funding source agencies. The results of the independent audit
must be submitted to the CITY within thirty(30) days of completion. Within thirty (30)
days of the submittal of the audit report, NHSIE shall provide a written response to all
conditions or findings reported in said audit report. The response must examine each
condition or finding and explain a proposed resolution, including a schedule for
correcting any deficiency, within six (6) months after receipt of the audit report. The
CITY,and its authorized representatives shall,at all times,have access for the purpose of
audit or inspection to any and all books, documents, papers, records, property, and
I premises of NHSIE, whose staff will cooperate fully with authorized auditors when they
conduct audits and examinations of the Program. In all instances, audits performed for
the purpose of satisfying the requirements of this Section 33 shall comply with all
l applicable provisions of OMB Circular A-133 in accordance with 24 CFR Part 84.26 and
Part 85.26.
10. Regular Renortina Requirements
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Within thirty(30)calendar days after the end of each calendar quarter,NHSIE shall provide the
CITY a status report regarding HAP activities. Such report shall detail, among other things:
funds expended to date, number of households assisted and applicable demographic
information, number of applicants on waiting list, and anticipated closing dates for pending
projects.
11. Program Monitoring
The CITY staff will conduct periodic Program progress reviews. These reviews will focus on
the extent to which the planned Program has been implemented and measurable goals achieved,
the effectiveness of Program management and the impact of the Program.
12.Compliance with Laws and Assurances
NHSIE hereby assures and certifies that it has complied and will continue to comply with the
Act and all applicable federal,state and local laws,ordinances,regulations,policies,guidelines,
and requirements as they relate to acceptance and use of federal funds for this federally-assisted
Program. This Agreement is subject to all such laws, ordinances, regulations, policies and
guidelines, including, without limitation, Title 24, Code of Federal Regulations, Part 84; Part i
85; Part 92; Part 570; and U.S. Office of Management and Budget Circulars applicable
including,without limitation,A-87,A-95,A-110,A-122 and A-128.
13, Governing Law
This Agreement shall be governed by the laws of the State of California. Any legal action
arising from or related to this Agreement shall be brought in the Superior Court of the State of
California in and for the County of San Bernardino.
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14.Affirmative Action
NHSIE shall make every effort to ensure that all projects funded wholly or in part by HOME
funds shall provide equal employment and career advancement opportunities for minorities and
women. In addition, NHSIE shall make every effort to employ residents of the area and shall
keep a record of the positions that have been created directly or as a result of this Program.
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15.Discrimination i
a) NHSIE shall not discriminate against any person on the basis of race, color, creed,
religion, natural origin, ancestry, sex, marital status or physical handicap in the
performance of the Scope of Services of this Agreement. Without limitation, the Sub- i
Recipient hereby certifies that it will not discriminate against any employee or applicant
for employment because of race,color,religion,sex,marital status or national origin. {
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b) Further, the City, and NHSIE shall promote affirmative action in their hiring practices
and employee policies for minorities and other designated classes in accordance with
federal, state and local laws. Such action shall include, but not be limited to, the
following: recruitment and recruitment advertising, employment, upgrading and
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promotion. In addition, the City and NHSIE shall not exclude from participation under
this Agreement any employee or applicant for employment on the basis of age, handicap
or religion in compliance with State and Federal laws.
16. Drug-Free Workplace
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NHSIE will or will continue to provide a drug-free workplace by:
a) Maintaining a Zero Tolerance Drug Policy.
b) Posting in conspicuous places,available to employees and applicants for employment, a
statement notifying employees that the unlawful manufacture, sale, distribution,
dispensation, possession, or use of a controlled substance or marijuana is prohibited in '
NHSIE's workplace and specifying the actions that will be taken against employees for
violations of such prohibition.
c) Stating in all solicitations or advertisements for employees or subcontractors placed by or
on behalf of NHSIE that NHSIE maintains a drug-free workplace.
d) Establishing an ongoing drug-free awareness program to inform employees about:
m The dangers of drug abuse in the workplace
■ NHSIE's policy of maintaining a drug-free workplace
■ Any available drug counseling, rehabilitation, and employee assistance
programs
■ The penalties that may be imposed upon employees for drug abuse
violations occurring in the workplace
17. Section 3
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Compliance with the provisions of Section 3 of the HUD Act of 1968, as amended, and as
implemented by the regulations set forth in 24 CFR 135, and all applicable rules and orders
issued thereunder prior to the execution of this contract, shall be a condition of the Federal
financial assistance provided under this contract and binding upon NHSIE and any of NHSIE's
subcontractors. Failure to fulfill these requirements shall subject NHSIE and any of its
subcontractors, their successors and assigns, to those sanctions specified by the Agreement
through which Federal assistance is provided.NHSIE certifies and agrees that no contractual or
other disability exists that would prevent compliance with these requirements.
NHSIE further agrees to comply with these "Section 3" requirements and to include the 1
following language in all subcontracts executed under this Agreement:
"The work to be performed under this Agreement is a project assisted
under a program providing direct Federal financial assistance from
HUD and is subject to the requirements of Section 3 of the Housing and
Urban Development Act of 1968,as amended(12 U.S.C. 1701). Section
3 requires that to the greatest extent feasible opportunities for training
and employment be given to low- and very low-income residents of the
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project area, and that contracts for work in connection with the project
be awarded to business concerns that provide economic opportunities
for low- and very low-income persons residing in the metropolitan area
in which the project is located."
NHSIE further agrees to ensure that opportunities for training and employment arising in
connection with this Agreement are given to low- and very low-income persons residing within
the San Bernardino metropolitan area; where feasible, priority should be given to low- and
very low-income persons within the City and to low-and very low-income participants in other
HUD programs. NHSIE further agrees to award contracts for work undertaken in connection
with Agreement to businesses that provide economic opportunities for low- and very low-
income persons residing within the San Bernardino metropolitan where feasible,priority should
be given to businesses that provide economic opportunities to low- and very low-income
residents within the City, and to low- and very low-income participants in other HUD
programs.
18. Other Federal Requirements
a) Affirmative Marketing: This Agreement is not subject to affirmative marketing
requirements under 24 CFR 92.351 since HOME funds will not be used for housing
containing more five HOME-assisted units.
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b) Displacement,Relocation and Acquisition: NHSIE must ensure that it complies with
all the tenant displacement and relocation requirements and the acquisition requirements
specified in 24 CFR Part 92.353.
c) Prevailing Wage: This Agreement is not subject to prevailing wages and other labor
requirements since HOME funds will not be used for contracts for construction of
housing (rehabilitation or new construction) that include 12 or more HOME-assisted
units.
d) Lead-Based Paint: All housing assisted with HOME funds must comply with the lead-
based paint provisions cited in 24 CFR Part 92.355. Such regulations require that all
owners, prospective owners, and tenants of properties constructed prior to 1978 be
properly notified that such properties may include lead-based paint. Such notification
shall point out the hazards of lead-based paint and explain the symptoms, treatment and j
precautions that should be taken when dealing with lead-based paint poisoning and the
advisability and availability of blood lead level screening for children under seven. The
notice should also point out that if lead-based paint is found on the property, abatement
measures may be undertaken. The regulations further require that, depending on the
amount of Federal funds applied to a property, paint testing, risk assessment, treatment
and/or abatement may be conducted.
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e) Conflict of Interest: NHSIE must adhere to the conflict of interest provisions
mentioned in 24 CFR Part 92.356 when procuring property or services with HOME
funds.
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f) Hatch Act: NHSIE agrees that no funds provided, nor personnel employed under this
Agreement, shall be in any way or to any extent engaged in the conduct of political
activities in violation of Chapter 15 of Title V of the U.S.C.
g) Environmental Clearance: HOME Program requires the preparation of an
Environmental Review Record (ERR) and environmental clearance before funds are
expended or costs incurred. The overall governing legislation is the National
Environmental Policy Act (NEPA). City staff will complete the ERR and obtain
authority to use funds from HUD. NHSIE shall not implement any project activities or
incur any project costs until CITY notifies NHSIE to proceed with Program activities.
h) Historic Preservation: This Agreement is not subject to Historic Preservation
requirements set forth in the National Historic Preservation Act of 1966,as amended (16
U.S.C. 470) since no rehabilitation and demolition work will be completed under this
Agreement,
19.Notices
All notices herein required shall be in writing. Notices shall be sent by prepaid First Class Mail `
to the following Address:
To City: City of San Bernardino
ATTN:Brandon Mims,Housing Deputy Director
300 North"D"Street,Sixth Floor
San Bernardino,CA 92401
To NHSIE: Neighborhood Housing Services of the Inland Empire, Inc.
Attention: Executive Director °
1390 North" D" Street
San Bernardino,CA 92405
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20. Assiggment '
This Agreement is not assignable by NHSIE without the express prior written consent of the
CITY in its sole discretion. Any attempt by NHSIE to assign any performance of the terms of
this Agreement shall be null and void and shall constitute a material breach of this Agreement
upon which the CITY may,among its other remedies, and without limitation, cancel, terminate
or suspend this Agreement.
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21.Termination
This Agreement may be terminated at any time by either Party upon giving its thirty (30) day j
notice in writing to the other Party. Further, the CITY may immediately terminate this
Agreement upon the termination, suspension, discontinuation or substantial reduction in r
HOME funding. Further, and not withstanding any other provision of this Agreement, if
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NHSIE materially fails to comply with any term of this Agreement,the CITY may take any one
or more of the following actions,as appropriate in the circumstances:
a) temporarily withhold cash payments pending correction of the deficiency by the NHSIE.
b) wholly or partly suspend or terminate the current award for the Program.
c) withhold further awards for the Program.
d) take other remedies that may be legally available.
Further, and notwithstanding any other provision of this Agreement, the award may be
terminated for convenience in accordance with Title 24, Code of Federal Regulations, Part
85.44.
22.Pro am Income
Any and all Program Income (as defined at Title 24, Code of Federal Regulations, Part
570.500(a))shall immediately be returned to the CITY. Any and all Program Income on-hand
with NHSIE at the time of the expiration of this Agreement, or received by NHSIE after the
expiration of this Agreement, shall be paid to the CITY pursuant to the provisions of this
Agreement.
23.Reversion of Assets
Upon the expiration or termination of this Agreement,for any reason whatsoever,NHSIE shall
forthwith transfer to the City, HOME funds on-hand at the time of such expiration or
termination and any accounts receivable attributable to the use of HOME funds including,
without limitation,Program Income.
24.Religious Proselytizing or Political Activities
NHSIE agrees that it will not perform or permit any religious proselytizing or political
activities in connection with the performance of this Agreement. Funds under this Agreement
will be used exclusively for performance of the services required under this Agreement and no
funds shall be used to promote any religious or political activities.
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25.Anti-Lobbying
NHSIE must submit a certification with regard to compliance with restrictions on lobbying
required by 24 CFR Part 87,together with disclosure forms,if required by that part.
26.Fiscal Limitations
HUD may in the future place programmatic or fiscal limitations on HOME funds not presently
anticipated. Accordingly, the CITY reserves the right to revise this Agreement in order to take
account of actions affecting HUD program funding. In the event of HOME funding reduction, ;.
the CITY may reduce the Allocated Funding of this Agreement. In no event, however, shall
any revision made by the CITY affect expenditures and legally binding commitments made by
NHSIE before it received notice of such revision, provided that such amounts have been
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committed in good faith and are otherwise allowable and that such commitments are consistent
with HUD cash withdrawal guidelines.
27.Use of Funds for Entertainment Meals or Gifts
NHSIE certifies and agrees that it shall not use funds provided through this Agreement to pay
for entertainment,meals or gifts.
28.Release Indemnification and Hold Harmless
NHSIE shall defend, release, indemnify and hold the CITY, their officers, officials, attorneys,
agents, employees, and authorized volunteers, harmless from and against any loss, liability,
claim or damages that may arise or result from activities of NHSIE, its officers, agents, and
employees and, shall, at its own costs, expense and risk, defend any and all legal proceedings
that may be brought against the CITY on any claim, demand or alleged liability, and shall
satisfy any settlement or judgment that may be rendered against any of them arising or resulting
from NHSIE activities, and shall assume liability for any and all direct expenses incurred in
providing services pursuant to this Agreement and shall assume any and all responsibilities for
loss or damage resulting from negligence,injury, illness or disease arising out of the provision
of services. NHSIE,however, is obligated to promptly notify the CITY in writing of any such
loss or damage.
29. Insurance Reuuirements
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NHSIE shall secure and maintain throughout the term of this Agreement the following types of
insurance with limits as shown:
a)Statutory Worker's Compensation Insurance. NHSIE shall maintain all California
statutory requirements of One Million Dollars ($1,000,000) limit and shall provide a
waiver of subrogation in favor of CITY and the City.
b)Comprehensive General and Automobile Liability Insurance. NHSIE shall obtain
general liability insurance on a per occurrence basis with a combined single limit of i
One Million Dollars ($1,000,000); and automobile liability insurance for owned, hired
and non-owned vehicles on a per occurrence basis with a combined single limit of One
Million Dollars($1,000,000). Additional insured endorsements are required for general
and automobile liability policy coverage.
c)Professional Liability Insurance. NHSIE shall obtain Errors and Omissions Liability
Insurance with limits of not less than one million dollars ($1,000,000) and two million
dollars($2,000,000)aggregate limits.
NHSIE shall furnish certified copies of all policies and endorsements to the CITY, evidencing
the insurance coverage above required, five (5) business days prior to the commencement of i
performance of services hereunder, which certificates shall provide that such insurance shall
not be terminated or expire without thirty(30)days prior written notice to the CITY, and shall
ences performance of services hereunder,
maintain such insurance from the time NHSIE comm
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until the completion of such services. An inventory of such insurance shall be completed by
NHSIE and approved by the CITY prior to the commencement of performance of services
hereunder.
All policies, with respect to the insurance coverage required above, except for the worker's `
compensation coverage, shall contain additional insured endorsements naming the CITY, and
their officers, agents, employees and volunteers as additional named insured, with respect to
liabilities arising out of the performance of services hereunder.
30.Business Registration Certificate
NHSIE warrants that it possesses, or shall obtain immediately after the execution and delivery
of this Agreement, and maintain during the period of time that this Agreement is in effect, a
business registration certificate pursuant to Title 5 of the City of San Bernardino Municipal
Code, together with any and all other licenses,permits, qualifications, insurance and
approvals
of whatever nature that are legally required to be maintained by NHSIE to conduct its business
activities within the City.
31. Independent Contractor
Nothing contained in this Agreement is intended,or shall be construed in any manner to create
or establish the relationship of employer/employee between the CITY and NHSIE. NHSIE 5
shall
at all times remain an "independent contractor" with respect to the services to be
performed under this Agreement. The CITY shall be exempt from payment of all
Unemployment Compensation,
FICA, retirement, life and/or medical insurance and Workers'
Compensation Insurance,as NHSIE is an independent contractor. i
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32.Conflict of Interest
NHSIE, its agents and employees shall comply with all applicable federal, state, and city laws
and regulations governing conflict of interest. To this end,NHSIE will make available or shall
provide copies of all applicable federal, state, and City laws and regulations governing conflict
of interest,to its agents and employees.
33.Non-Waiver
Failure of either party to enforce any provision of this Agreement shall not constitute a waiver
of the right to compel enforcement of the same provision or any remaining provisions of this I
IAgreement.
i 34.Default and Remedies
a) Events of Default: The occurrence of any of the following shall, after the giving of any
notice described therein,constitute a default by NHSIE hereunder("Event of Default'): }
i. The failure of NHSIE to pay or perform any monetary covenant or obligation
hereunder or any of the documents executed in connection herewith, without g
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such failure within ten (10) calendar days after receipt of written notice of such
default from the CITY (or from any party authorized the CITY to deliver such
notice as identified by the CITY in writing to NHSIE;
ii. The failure of NHSIE to perform any nonmonetary covenant or obligation
hereunder or any of the documents executed in connection herewith, without curing
such failure within thirty (30) calendar days after receipt of written notice of such
default from the CITY (or from any party authorized by the CITY to deliver such
notice as identified by the CITY in writing to NHSIE) specifying the nature of the
event or deficiency giving rise to the default and the action required to cure such
deficiency; provided, however, that if any default with respect to a nonmonetary
obligation is such that it cannot be cured within a thirty (30)-day period, it shall be
deemed cured if NHSIE commences the cure within said thirty (30)-day period and
diligently prosecutes such cure to completion thereafter.
b) Notwithstanding anything herein to the contrary, the herein described notice
requirements and cure periods shall not apply to any Event of Default described in
Sections(i.)through(iv.)below:
i. The material falsity of any representation or breach of any warranty or covenant
made by NHSIE under the terms of this Agreement or any documents executed
in connection herewith;
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ii. NHSIE shall (a) apply for or consent to the appointment of a receiver, trustee,
liquidator or custodian or the like of its property, (b)make a general assignment
for the benefit of creditors, (c) be adjudicated as bankrupt or insolvent or (d)
commence a voluntary case under the Federal bankruptcy laws of the United
States of America or file a voluntary petition that is not withdrawn within ten
(10)calendar days after the filing thereof or answer seeking an arrangement with
creditors or an order for relief or seeking to take advantage of any insolvency
law or file an answer admitting the material allegations of a petition filed against
it in any bankruptcy or insolvency proceeding;
iii. Voluntary cessation of the operation of the Program for a continuous period of
more than thirty (30) calendar days or the involuntary cessation of the operation
of the Program in accordance with this Agreement for a continuous period of
more than sixty (60) calendar days, unless such cessation is approved, in
writing,by the CITY; j
iv. A mechanic's lien or any other type of encumbrance on any eligible property j
resulting from NHSIE's failure to fulfill its financial or other contractual
obligations with respect to any of its vendors or sub-contractors is not removed
within ten(10) calendar days after receipt of written notice of such default from
the CITY.
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c) Any failure or delay by a party in asserting any of its rights or remedies as to any
default shall not operate as a waiver of any default or of any rights or remedies
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associated with a default. Except with respect to rights and remedies expressly declared
to be exclusive in this Agreement, the rights and remedies of the Parties under this
Agreement are cumulative and the exercise by either Party of one or more of such rights
or remedies shalt not preclude the exercise by it, at the same or different times, of any
other rights or remedies for the same default or any other default by the other Party.
d) The CITY'Remedies:Upon the occurrence of an Event of Default hereunder,the CITY,
or its designated agent(s), may, in its sole discretion, take any one or more of the
following actions:
i. In implementing its remedy(ies), the CITY will adhere to the provisions
specified in 24 CFR Part 85.43.
By notice to NHSIE declare that the entire unused shall become due funds must
be immediately repaid to the CITY, a nd the same
without further demand, protest or further notice of any kind, all of which are
expressly waived;
iii. Subject to any non-recourse provisions in this Agreement, take any and all
actions and do any and all things which are allowed, permitted or provided by
law, in equity or by statute, to enforce performance and observance of any
obligation,agreement or covenant of NHSIE under this Agreement or under any
other document executed in connection herewith;
iv. Cease allowing NHSIE access to any HOME funds unless and until the Event of
Default(if curable)is cured;
V. Demand reimbursement from NHSIE for
uct was p
not satisfactorily any s ayments
delivered by
it CITY
for which the contracted work prod
NHSIE;
vi. Confiscate any material or other work product purchased or produced by the
NHSIE for the Program;
vii. Take any and all actions and do any and all things which are allowed, permitted
or provided by law, in equity or by statute, to enforce performance and
observance of any obligation, agreement or covenant of NHSIE under this
Agreement or under any other document executed in connection herewith.
e) The CITY Default and NHSIE Remedies: Upon fault or failure of the CITY, to meet
any of its obligations under this Agreement without curing such failure within thirty
(30)calendar days after receipt of written notice of such failure from NHSIE specifying
the nature of the event or deficiency giving rise to the default and the action required to
cure such deficiency,NHSIE may,as its sole and exclusive remedies:
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i. Bring an action in equitable relief seeking the specific performance by the CITY of
the terms and conditions of this Agreement or seeking to enjoin any act by the CITY
which is prohibited hereunder;and/or
ii. Bring an action for declaratory relief seeking judicial determination of the meaning
of any provision of this Agreement. Without limiting the generality of the
foregoing, NHSIE shall in no event be entitled to, and hereby waives any right to
seek indirect or consequential damages of any kind or nature from the CITY arising
out of or in connection with this Agreement, and in connection with such waiver
NHSIE is familiar with and hereby waives the provisions of Section 1542 of the
California Civil Code which provides as follows:CREDITOR DOES NOT KNOW OR
NOT EXTEND TO CLAIMS WHICH THE
SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE t
RELEASE WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY
AFFECTED HIS SETTLEMENT WITH THE DEBTOR."
35.Consequential Damages and Limitation of Liability
The CITY and NHSIE agree that except as otherwise provided in this Section, in no event will
either be liable to the other under this Agreement for any damages including,but not limited to,
special damages, loss of revenue, loss of profit, operating costs or business interruption losses,
regardless of cause, including breach of contract, negligence, strict liability or otherwise. The
limitations and exclusions of liability set forth in this Section shall apply regardless of fault,
breach of contract,tort, strict liability or otherwise of the CITY and NHSIE,their employees or
sub-consultants.
36.Legal Proceedings
Should any legal proceedings be commenced to enforce, enjoin, or collect funds or otherwise
affect this agreement between the Parties, it shall be filed in San Bernardino County Superior
Court. The prevailing party shall be entitled to recover its reasonable legal fees. The costs,
salary and expenses of the City Attorney and members of his office in enforcing this
Agreement on behalf of the City shall be considered as "legal fees" for the purposes of this
paragraph•
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37.Severability
Each and every section of this Agreement shall be construed as a separate and independent
covenant and agreement. If any term or provision of this Agreement or the application thereof
to certain circumstances shall be declared invalid or unenforceable, the remainder of this
Agreement, or the application of such term or provision to circumstances other than those to
which it is declared invalid or unenforceable, shall not be affected thereby, and each term and
provision of this Agreement shall be valid and enforceable to the fullest extent permitted by
law.
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38. Amendment or Modification
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This Agreement may only be modified or amended by written instrument duty approved and
executed by each of the Parties hereto. Any such modification or amendment shall be valid,
binding and legally enforceable only if in written form and executed by each of the Parties
hereto,following all necessary approvals and authorizations for such execution.
39.Exhibit
The Exhibit to this Agreement designated as Exhibit"A" is an integral part of this Agreement
and has been incorporated herein.
40. Representations of Persons Executing the Agreement
The persons executing this Agreement warrant that they are duly authorized to execute this
Agreement on behalf of and bind the respective Party that each purports to represent.
41.Entire Agreement
This Agreement constitutes the entire agreement between the Parties. This Agreement
supersedes all prior negotiations, discussions and agreements between the Parties concerning
the subject matters covered herein. The Parties intend this Agreement to be the final expression
of their agreement with respect to the subjects covered herein and a complete and exclusive
statement of such terms.
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Home Investment Partnerships(HOME)
SUBRECIPIENT AGREEMENT
Between the City of San Bernardino and
Neighborhood Housing Services of the Inland Empire
for the implementation of the Homebuyer Assistance Program
IN WITNESS WHEREOF,the parties have caused this Agreement to be executed as of the day
and year first written above.
The City of San Bernardino
Date: { t b By. �-...1
VVAll n J.Parker,City Manager
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Neighborhood Housing Services of the Inland Empire,
Inc.,a California non-profit corporation
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Date: By:—
Dawn Lee,Executive Director
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Approved as to form:
Gary D. Saenz,City Attorney
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By:
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EXHIBIT"A"
Scope of Services !Use of HOME Funds
PROGRAM SUMMARY
The City of San Bernardino allocates HOME funds provided by HUD to implement the Homebuyer
Assistance Program(HAP). The HAP provides down payment assistance of up to 10%of the purchase
price, to eligible low-income first-time homebuyers. Assistance is provided in the form of a 0%
interest, deferred payment 2nd trust deed loan that is forgivable at the expiration of the affordability
period,
NHSIE, in close coordination with the CITY, will perform all professional duties necessary to carry-
out all activities required to implement the HAP, in compliance with the HOME Final Rule, and all
other applicable federal and local regulations. NHSIE services will start as soon as practicable after
the execution of the Agreement and completed based on the timeline specified below.
ELIGIBILITY REQUIREMENTS
NHSIE will facilitate HAP loans only to eligible borrowers. A complete review of the application and
a supporting documentation will be completed to ensure compliance with the following eligibility
criteria: I
Borrower Eligibility:
1. Borrower must be a first-time homebuyer(a person with no ownership interest in, or who has
not held 'title' to a principal residence during the three-year period preceding the purchase of
the property).
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2. The combined household income may not exceed eighty percent (80%) of the Area Median
Income (AMI) for the City of San Bernardino, as established by HUD. NHSIE must certify
household income eligibility and income verification documentation must be kept on file for
each HAP loan awarded. The 2015 HOME Income Limits are as follows:
2015 Income Limits
No. of Persons in Income Limits
Household
i $38,800
2 $39,800
3.._��..---.------=---$44,750_._-_._._.
4 , $49,700 ---
- $5_3,700
t .... $57,700
ter. 7 $61,650
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8 -----$65,650 ---..
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Income limits are subject to change. NHSIE will ensure that it is utilizing the most current
income limits when determining income eligibility. NHSIE will use Part 5 definition of
income to determine eligibility. Part 5 information can be found in HUD's Technical Guide for
Determining Income and Allowances under the HOME Program.
3. Borrower must complete an 8-hour homebuyer education seminar provided by NHSIE or any
other HUD approved counseling agency. Evidence of completion must be kept in the file.
4. Borrower must agree to occupy HAP-assisted property as a principal place of residence. The
CITY will complete an annual occupancy certification to ensure compliance with this
requirement.
5. Borrower liquid assets cannot exceed the total of a 6-month mortgage payment reserve.
Property Eligibility:
1. Property may only be one unit, which includes single family residences and condominium
properties.
2. The purchase value of the property cannot exceed$185,000.00.
3. Property must be located within the City of San Bernardino city limits, and must be inspected
by a certified housing inspector so that all deficiencies are corrected in accordance with HOME
requirements.
4. Existing, new construction, approved short sales, and real estate owned (REO) residential
properties.
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LOAN TERMS
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1. 0%interest rate loan,in second lien position.
2. HAP loan may be in P lien position,only if 2nd deed of trust is a CalHOME loan.
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3. HAP loan is forgivable at the expiration of the affordability period, subject to compliance with
Program requirements.
4. Minimum HAP loan is$1,000.00.
5. Maximum HAP loan is 10% of the purchase price. Actual loan amount will be based on
borrower's need,demonstrated by a finance gap analysis prepared by NHSIE.
6. HAP loan must be secured by a second Trust Deed and Promissory Note.
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7. First mortgage must be fully amortized with a fixed rate,for 30 years.
8. HAP loan is payable if duri ng the affordability period, the
borrower's principal placeeof
conveyed, refinanced, or when the property ceases to bet p
residence. Repayment of the HAP loan during the affordability period is considered a
recapture of HOME funds.
9. If property is sold, transferred,he CITY. Theduring centage of thi
s shared-equity will be 14/�the
resale profit will be payable tot p
10.Borrower must invest a minimum of 1%of the down payment,not including closing costs. The
earnest money deposit cannot be a gift.
11.Housing debt ratio cannot be lower than 20% and the total combined debt ratio cannot exceed
43%.
12.The maximum loan-to-value(LTV) is 104%. However,
the CITY may consider LTV of 103%
subject to compensating factors,and at NHSIE's recommendation.
13.All properties built before 1978 are required to have a Visual Lead Based Paint Inspection and
' must pass the inspection before HAP loan approval. The HAP is subject to all applicable lead-
,, based paint requirements.
14.Property must remain affordable for a minimum affordability period based on the amount of
HAP assistance provided. The affordability requirements are as follows:
Affordability Requirements
Amount of Assistance . Affordability Period
Under$15,400 ` _ _5 years,__:,____. j
$15,004-$40�000 10 years !
�.- - �----_-.... ears '
Over$40,000 15 Y
15.Borrowers must execute an affordable housing covenant that establishes the occupancy and
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affordability requirements for the property. By signing the covenant, the borrower will
acknowledge and agree to the restrictions on the property. The covenant agreement will be
recorded with the office of the County Recorder and will run with the land.
16.Borrowers may not receive any cash back at escrow closing. Any remaining funds must be
applied to the principal debt of the home. j
17.HAP loan subordination for straight refinancing to lower existing rate and/or term may be
allowed, on a case-by-case basis. Subordination are subject to conditions including no cash-
out and affordable new loan terms. Borrower must contact the CITY for details.
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DELIVERABLES
Deliverable #1 - NSHIE must conduct marketing and community outreach activities to promote the
HAP. This includes developing marketing materials such as brochures, mailers, and a website
specifically addressing the needs of residents of the City of San Bernardino.
Deliverable #2 -NHSIE must implement HAP policies and procedures to issue 30-40 HAP loans to
qualified homebuyers during the term of the Agreement.
BUDGET
CITY has allocated six hundred thousand dollars ($600,000) in HOME funds to implement the HAP.
The HAP budget breakdown is as follows:
$540,000 for HAP loans
$60,0 10%Administration
$600,000 TOTAL BUDGET '
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NHSIE will submit a detailed budget breakdown for the 10% administration allocation, including a
copy of NHSIE's Cost Allocation Plan. Payment of administration costs will be submitted on a
monthly basis,and will be contingent to performance measures of the deliverables.
PERFORMANCE MEASURES
Timetable a
Deliverable Start Date 1 Completion Date '
#1:
Marketing/Outreach Upon execution of Agreement , Ongoing
#2:Funding 30-40 HAP Loans 01/01/2016 12/31/2016
_._.(3-4 HAP loans per ___-----..:_._.-----
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The CITY will monitor NHSIE performance against performance measures stated above. Substandard
performance will constitute noncompliance with the Agreement. Expenditure of HOME funds is
subject to Federal deadlines. NHSIE understands and agrees that failure to meet these deadlines can
result in the cancellation of the Agreement.
DOCUMENTS REQUIRED FOR FUNDS RESERVATION
NHSIE will submit the following documents to CITY for preliminary approval and funds reservation:
1. HAP application that includes household size, income, and demographic data (race, ethnicity,
female head of household,disabled or elderly household)
2. NSHIE income determination using Part 5 Definition,along with all income documents
3. Copy of borrower's last three year's tax returns `
4. Copy of purchase agreement and escrow instructions indicating expected escrow closing date
5. Voluntary sale letter
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NSHIE,2015/2016 First Time Homebuyer Contract
Page 22
The CITY will review above documents and issue a confirmation of reservation, suspension,or denial
letter within 2 business days from receipt of all required documents. The CITY is closed on Fridays.
Consequently,Fridays do not count as business days.
Reservations will be made based on 10% of purchase price. However, actual loan amount will be
determined based on amount needed per the financing gap analysis.
DOCUMENTS REQUIRED FOR FUNDING
NHSIE will submit the following documents for the CITY review prior to funding:
1. Copy of 1003 application for I st mortgage
2. Copy of Ist mortgage underwriting review(1008) and approval
3. Financing structure and gap analysis that determines the amount of HOME funds needed
4. Copy of appraisal that demonstrates value does not exceed Program limits
5. Copy of preliminary title report
6. Copy of Homebuyer Education certificate
7. Applicable lead-based paint requirements
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The CITY will issue final funding approval within 2 business days from receipt of all required
documentation. The CITY is closed on Fridays. Consequently,Fridays do not count as business days.
The CITY will be responsible for preparing HAP loan documents and forwarding them to escrow for
execution. Loan documents will be prepared within 1-day from final HAP loan approval.
NHSIE will provide a 3-day notice to the CITY for escrow funding, to allow the CITY time to set up j
the wire transfer. The CITY is closed Fridays. Consequently, transactions scheduled to fund on
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Fridays,must be funded by Thursday. NHSIE and the CITY must coordinate accordingly.
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SUBMISSION OF COMPLETE FILE
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Upon escrow closing and in addition to the documents listed above,NHSIE will provide the following
documentation to enable the CITY to set up each loan for servicing and monitoring follow-up:
1. Escrow closing statement
2. Lender's title policy
3. Recorded Deed of Trust and Affordability Covenant
4. Certification that all health and safety deficiencies were corrected prior to the close of escrow
5. Evidence of property insurance listing the City of San Bernardino as lender
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Execution of 5ubrecipFent Agreement;and issuance of.
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NHHIE,2015/2016 First Time Homebuyer Contract
Page 24
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PROGRAM REPORTING
NHSIE will submit quarterly reports that include:
1. Progress made to date,or justification for lack of progress
2. Demographic and income information regarding persons assisted by NHSIE under Agreement
3. Closeout information upon termination of the Agreement
CITY HAP RESPONSIBILITIES
The CITY will be responsible for the following functions of the HAP:
1. Completing environmental clearance for program
2. Working with NHSIE to develop and implement HAP policies and procedures
3. Conducting required lead-based paint visual inspections f
4. Issuing preliminary approval/funds commitment within 3 business days from receipt of all
required documentation
5. Issuing final funding approval within 3 business days from receipt of all required
documentation `
6. Preparing HAP loan documents,and forwarding them to escrow for execution
7. Wiring funds to escrow for closing
S. Servicing and monitoring HAP loans
9. Reimbursing NHSIE for administration costs within 30 days from receipt of invoice, subject to
appropriate supporting documentation
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