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Staff Report
City of San Bernardino 0
Request for Council Action
Date: June 7, 2017
To: Honorable Mayor and City Council Members W
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From: Mark Scott, City Manager 0
By: Andrea M. Miller, Assistant City Manager
Steven H. Dukett, Consultant
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Subject: Acceptance of Federal Fund Real Property Assets From a
Affordable Housing Solutions (AHS)
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Recommendation
Adopt a Resolution of the Mayor and City Council of the City of San Bernardino,
California, accepting the transfer of federal fund real property assets from Affordable Qf
Housing Solutions of San Bernardino, Inc. to the City of San Bernardino, and approving vi
certain related actions. a
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Background w
Pursuant to Health and Safety Code (the "HSC") § 34172 (a) (1), the Redevelopment N
Agency was dissolved on February 1, 2012. Consistent with the provisions of the HSC, N
on January 9, 2012 the Mayor and City Council of the City (the "City") elected to serve Q
in the capacity of the Successor Agency to the Redevelopment Agency (the "Successor
Agency"). a-
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The former Redevelopment Agency (the "Former RDA") established a series of
operating practices, funding allocation procedures, and general oversight requirements
for Affordable Housing Solutions of San Bernardino, Inc., a non-profit 501(c)(3)
corporation ("AHS"), which constituted the basis of the 2009 Neighborhood Stabilization
Program Sub-Recipient Agreement, dated September 21, 2009, and the 2011 Housing
Capitalization Funding Agreement Sub-Recipient Agreement Relating to the
$375,000,000 Principal Amount Low- and Moderate-Income Housing Fund Projects, w
dated March 3, 2011 (individually, the "2009 AHS Agreement" and the "2011 AHS
Agreement" respectively, and collectively the "AHS Agreements") between the Former C
RDA and AHS. CL
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On July 27, 2011, the California Superior Court entered a Default Judgment that Q
validated the 2011 AHS Agreement, which had the effect of validating the actions taken
by the Former RDA, inclusive of the following finding: "The restructuring of the manner E
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in which the Agency conducts its governmental functions as set out in the Resolutions,
and all matters related thereto, are valid, legal and binding acts of the Agency, in
accordance with their terms and were and are in conformity with applicable provisions of
all laws and enactments at any time in force or controlling upon such proceedings 0
whether imposed by law, constitution, statute or ordinance, and whether federal state or a.
local, and are legal, valid and binding obligations under the Constitution and laws of the
State of California as of the date of their enactment"
For the purpose of implementing the AHS Agreements, AHS periodically received -
funding allocations from the Former RDA from both federal and low- and moderate-
income housing fund (the "LMIHF") sources to finance the affordable housing activities LL
authorized by the AHS Agreements. Consistent with the AHS Agreements, AHS used —
both federal and LMIHF money to purchase additional housing/real property assets.
Since 2015, AHS has not actively pursued implementing the AHS Agreements, and to
that end, has begun to divest itself of its real property assets. C
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Discussion a
On February 9, 2016, the AHS Board of Directors authorized the transfer of the real o
property assets owned by AHS that were either transferred to AHS by the Former RDA
or acquired by AHS on behalf of the former RDA using LMIHF funds or other (non-
federal) funds of the Former RDA to the Successor Agency. However, AHS continues a
to be the owner of record of 20 real property assets, which were acquired with federal LU
funds, that were either received from the Former RDA or acquired by AHS on behalf of
the former RDA (the "Properties"), listed in Exhibit "A" to the attached Resolution.
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The City of San Bernardino (the "City") has assumed the affordable housing functions
previously undertaken by AHS pursuant to the AHS Agreements, and since the City is
the governing entity which is ultimately responsible to manage federal housing funds, it y
is necessary and appropriate that the Properties be transferred to the City. In that a
regard, on May 11, 2017, the Board of Directors of AHS authorized the transfer of the
Properties to the City, along with the transfer of any outstanding related liabilities, 0.
leases, encumbrances, and/or obligations. a
The form of quitclaim deed to cause the transfer of the Properties is included in Exhibit
"B." to the attached Resolution, which also includes a form of the certificate of =
acceptance of the Properties by the City. Approval of the attached Resolution will
authorize the acceptance of the Properties that are to be transferred to the City. Once
the Properties are transferred to the City, the Properties will be managed under the
federal guidelines under which they were originally acquired U-
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The attached Resolution has been reviewed with respect to applicability of the California U
Environmental Quality Act (the "CEQA"), the State CEQA Guidelines (California Code of 2
Regulations, Title 14, § 15000 et seq., hereafter the "CEQA Guidelines"), and the City's
environmental guidelines. The attached Resolution does not constitute a "project" for a
purposes of CEQA, as that term is defined by CEQA Guidelines § 15378, because the
Resolution is an organizational or administrative activity that will not result in a direct or
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indirect physical change in the environment, per § 15378 (b) (5) of the CEQA y
Guidelines. a
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Fiscal Impact o
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Although the Properties are held by AHS, for financial record keeping purposes, the a
Properties at all times remained with the City's federal fund accounting records. d
Transferring the Properties back to the City will not affect the City's federal fund accounting
records.
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In addition, the Properties will be transferred to the City, along with any outstanding
related liabilities, leases, encumbrances, and/or obligations. As of the date of this LL
report, the only known liabilities that will be transferred to the City are those connected —
with unpaid real property taxes, plus penalties and interest that have accrued during the
time the Properties have been owned by AHS. In that regard, the City Attorney's Office
is working with County Counsel to determine a method acceptable to the City and the
County for cancellation of the taxes. Once the Properties are transferred to the City, a
they will thereafter be removed from the tax rolls. Once the transfer is completed, the
City's Housing Division will manage the use of the Properties consistent with the federal o
guidelines under which they were originally acquired.
Conclusion a
Based on the foregoing, staff recommends that the Mayor and City Council adopt the
attached Resolution accepting the transfer of federal fund real property assets from
AHS to the City, and approving certain related actions. _
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Attachment °
Attachment 1 Mayor and City Council Resolution (including its Exhibit "A", which r
describes the 20 real property assets to be transferred to the City, N
and its Exhibit "B", which is the form of the quitclaim deed and a
certificate of acceptance).
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Wards: 1, 2, 6 and 7 R
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Synopsis of Previous Council Actions: _
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September 21, 2009: The former RDA and AHS entered into the 2009 Neighborhood
Stabilization Program Sub-Recipient Agreement.
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March 3, 2011: The former RDA and AHS entered into the 2011 Housing
Capitalization Funding Agreement Sub-Recipient Agreement
Relating to the $375,000,000 Principal Amount Low- and a
Moderate-Income Housing Fund Projects.
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1 RESOLUTION NO. 2017-
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2 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN a
BERNARDINO, CALIFORNIA, ACCEPTING THE TRANSFER OF FEDERAL FUND
3 REAL PROPERTY ASSETS FROM AFFORDABLE HOUSING SOLUTIONS OF SAN
4 BERNARDINO, INC. TO THE CITY OF SAN BERNARDINO, AND APPROVING
CERTAIN RELATED ACTIONS U_
5
WHEREAS, pursuant to Health and Safety Code (the "HSC") § 34172 (a) (1), the
6 LL
Redevelopment Agency of the City of San Bernardino was dissolved on February 1,2012; and c
7
WHEREAS, consistent with the provisions of the HSC, the Mayor and City Council of the a
8 d
City of San Bernardino previously elected to serve in the capacity of the Successor Agency to the a
9
Redevelopment Agency of the City of San Bernardino (the"Successor Agency");and N
10 C
WHEREAS, the former Redevelopment Agency of the City of San Bernardino (the
11 z
"Former RDA") established a series of operating practices, funding allocation procedures, and W
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general oversight requirements for Affordable Housing Solutions of San Bernardino, Inc., a non- a
13
profit 501(c)(3)corporation("AHS"),which constituted the basis of that certain 2009 Neighborhood Q
14
e Stabilization Program Sub-Recipient Agreement, dated September 21, 2009, and that certain 2011 Q
15 c
Housing Capitalization Funding Agreement Sub-Recipient Agreement Relating to the$375,000,000
16 4
Principal Amount Low- and Moderate-Income Housing Fund Projects, dated March 3, 2011 y
17 N
(individually known as the "2009 AHS Agreement" and the "2011 AHS Agreement" respectively, ,
18
and collectively as the"AHS Agreements")between the Former RDA and AHS; and c
19 a`
20 WHEREAS, on July 27, 2011, the California Superior Court entered a Default Judgment 1E
that validated the 2011 AHS Agreement, which had the effect of validating the actions taken by the
21
Former RDA, inclusive of the following finding: "The restructuring of the manner in which the
22
Agency conducts its governmental functions as set out in the Resolutions, and all matters related
23 4-
thereto, are valid, legal and binding acts of the Agency, in accordance with their terms and were and
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are in conformity with applicable provisions of all laws and enactments at any time in force or a
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controlling upon such proceedings whether imposed by law, constitution, statute or ordinance, and a
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whether federal state or local, and are legal,valid and binding obligations under the Constitution and
27 laws of the State of California as of the date of their enactment;" and
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I WHEREAS, for the purpose of implementing the AHS Agreements, AHS periodically 0
2 received funding allocations from the Former RDA from both federal and low- and moderate- a
3 income housing fund (the "LMIHF") sources to finance the affordable housing activities authorized
4 by the AHS Agreements; and LL
5 WHEREAS, consistent with the AHS Agreements, AHS used both federal and LMIHF
6 money to purchase additional housing/real property assets; and LL
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7 WHEREAS, since 2015, AHS has not actively pursued implementing the AHS
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8 Agreements, and to that end,has begun to divest itself of its real property assets; and
9 WHEREAS, on February 9, 2016, the Board of Directors of AHS authorized the transfer to a
10 the Successor Agency of those real property assets owned by AHS that were either transferred to ,
11 AHS by the Former RDA or acquired by AHS on behalf of the former RDA using LMIHF funds or z
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12 other(non-federal) funds of the Former RDA;however, AHS continues to be the owner of record of v
13 20 real property assets, which were acquired with federal funds, that were either received from the �
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14 Former RDA or acquired by AHS on behalf of the former RDA (the "Properties"), as shown in
15 Exhibit"A"attached hereto; and o
16 WHEREAS, the City of San Bernardino (the "City") has determined that it will assume the r
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17 affordable housing functions previously undertaken by AHS pursuant to the AHS Agreements, and a
18 since the City is the governing entity which is ultimately responsible to manage federal housing �
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19 funds,it is necessary and appropriate that the Properties be transferred to the City; and a
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20 WHEREAS, on May 11, 2017, the Board of Directors of AHS authorized the transfer o
21 the Properties to the City, along with the transfer of any outstanding related liabilities, leases, LL
22 encumbrances, and/or obligations; and
23 WHEREAS, the form of quitclaim deed to cause the transfer of the Properties is included 4-
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24 within Exhibit "B," attached hereto, which also includes a form of the certificate of acceptance of
25 the Properties by the City; and
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26 WHEREAS, consistent with the foregoing,this Resolution authorizes the acceptance of the a
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27 Properties that are to be transferred to the City; and
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1 WHEREAS, once the Properties are transferred to the City, the Properties will be managed
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2 under the federal guidelines under which they were originally acquired; and a
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3 WHEREAS, this Resolution has been reviewed with respect to applicability of the
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4 California Environmental Quality Act (the "CEQA"), the State CEQA Guidelines (California Code
5 of Regulations, Title 14, § 15000 et seq., hereafter the "CEQA Guidelines"), and the City's
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6 environmental guidelines; and 4-
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7 WHEREAS, this Resolution does not constitute a"project" for purposes of CEQA, as that
8 term is defined by CEQA Guidelines § 15378, because this Resolution is an organizational or
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9 administrative activity that will not result in a direct or indirect physical change in the environment, Q
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10 per§ 15378 (b) (5) of the CEQA Guidelines; and C1
11 WHEREAS, all of the prerequisites with respect to the approval of this Resolution have Z
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12 been met.
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13 NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL
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14 OF THE CITY OF SAN BERNARDINO AS FOLLOWS: Ui
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15 Section 1. The foregoing recitals are true and correct and are a substantive part of this o
16 Resolution.
17 Section 2. The transfer of the Properties from AHS to the City, along with the transfer a
18 of any outstanding related liabilities, leases, encumbrances, and/or obligations,is hereby approved.
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19 Section 3. The City Manager is authorized and directed to execute the certificates of a.
20 acceptance, the form of which is included within Exhibit `B," attached hereto, and to take such
21 other actions and execute such other documents as are necessary to effectuate the intent of this
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22 Resolution.
23 Section 4. This Resolution is not a "project" for purposes of CEQA, as that U-
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24 term is defined by Guidelines § 15378, because this Resolution is an organizational or c
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25 administrative activity that will not result in a direct or indirect physical change in the environment,
26 per§ 15378 (b) (5)of the Guidelines. a
27 Section 5. This resolution shall take effect upon its adoption and execution in the E
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28 manner as required by the City's Municipal Code. Y
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1 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SA
BERNARDINO, CALIFORNIA, ACCEPTING THE TRANSFER OF FEDERAL FUN c
2 REAL PROPERTY ASSETS FROM AFFORDABLE HOUSING SOLUTIONS OF SAN a`
3 BERNARDINO, INC. TO THE CITY OF SAN BERNARDINO, AND APPROVING
CERTAIN RELATED ACTIONS
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I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and City U-
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Council of the City of San Bernardino at a regular meeting thereof,held on the_day of June, m
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2017,by the following vote,to wit: d
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8 Council Members Ayes Nays Abstain Absent
9 MARQUEZ a
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10 BARRIOS
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I1 VALDIVIA z
12 SHORETT
NICKEL a
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RICHARD a
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MULVIHILL
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17 Georgeann Hanna, CMC, City Clerk y
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lg The foregoing Resolution is hereby approved this day of June 2017. '
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20 R. Carey Davis, Mayor
21 City of San Bernardino
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22 Approved as to Form:
Gary D. Saenz, City Attorney
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24 By: a
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(60e1 EXHIBIT A a
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3 FEDERAL FUND REAL PROPERTY ASSETS
TO BE
4 TRANSFERRED TO THE CITY U-
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PROPERTIES 0
No. Acquisition APN A4dress, Zoningv
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1 Received from Former RDA 0134-021-26 688 W 6th Street Commercial 1
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2 Received from Former RDA 0134-021-27 692 W 6th Street Commercial 1
3 Received from Former RDA 0134-021-28 621 N "G" Street Commercial 1 Q
4 AHS purchased 0139-172-36 923 N Pico Avenue SFR* 6 0
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5 Received from Former RDA 0140-012-11 815 W Orange Street SFR 2
6 1 Received from Former RDA 0140-033-22 676 W 10th Street SFR 2
1 7 1 Received from Former RDA 0140-041-29 1045 N "F" Street SFR 2 w
8 Received from Former RDA 0140-134-06 938 N "G" Street SFR 2 =
9 1 Received from Former RDA 0140-143-38 939 N "F" Street SFR 2 a
1 10 1 Received from Former RDA 0140-192-20 756 W 8th Street SFR 1
11 AHS purchased 0146-031-04 Wall Avenue SFR 2jap vi
12 AHS purchased 0146-045-14 2096 Genevieve Street SFR 2 a
1 13 AHS purchased 0146-053-27 202 E 19th Street SFR 2 c
14 AHS purchased 0146-072-02 Arrowhead Avenue Commercial 2 N
1 15 AHS purchased 1191-031-18 2165 E 19th Street SFR 7 4)
16 AHS purchased 1191-031-24 19th Street SFR 7
17 AHS purchased 1191-031-25 2069 E 19th Street MFR** 7
1 18 AHS purchased 1191-031-29 1888 Argyle Avenue MFR 7 c
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1 19 AHS purchased 1191-051-38 2044 Sunrise Lane SFR 7 a
0 AHS purchased 1191-051-48 2156 Sunrise Lane MFR 7
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'FR—Single Family Residential
MFR—Multi Family Residential
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2 EXHIBIT "B" a
3 RECORDING REQUESTED BY M
City of San Bernardino
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5 5 WHEN RECORDED MAIL TO:
City of San Bernardino
6 290 North"D" Street u_
San Bernardino,CA 92401 0
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Attn: Mark Scott,City Manager a
8 (Space Above Line For Use By Record ) U
APNs: U
9 This document is exempt from tl e c
payment of a recording fee pursuant o c
10 Government Code Section 273 3
11 DOCUMENTARY TRANSFER TAX$NO E w
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QUITCLAIM DEED a
13 (FORM ONLY—Not for Signature)
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FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged,Affordable Housing
15 Solutions of San Bernardino, Inc., a California nonprofit corporation (the "Grantor") does hereby remise, 0
release and quitclaim to the City of San Bernardino, a public body, corporate and politic (the"Grantee"), w
16 any interest that the Grantor may have in the real property in the City of San Bernardino, County of San N
Bernardino, State of California, described in Attachment "A" attached hereto and incorporated herein by v0i
17 this reference. a
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19 AFFORDABLE HOUSING SOLUTIONS OF SAN a.
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BERNARDINO,INC., a California nonprofit d
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corporation
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22 Dated,____ By: NOT FOR SIGNATURE (,
Chief Executive Officer ami
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! 1 A notary public or other officer completing this certificate verifies only the identity of the individual o
2 who signed the document to which this certificate is attached, and not the truthfulness,accuracy,or a
validity of that document.
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4 State of Californiass u_
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5 County of San Bernardino) `
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6 On before me, w
Notary Public,personally appeared _ who proved to me on
7 the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and
who acknowledged to me that he/she executed the same in his/her authorized capacity, and by his/her a
8 signature on the instrument the person, or entity upon behalf of which the person acted, executed the U
instrument. Q
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1 certify under PENALTY of PERJURY under the laws of the State of California that the foregoing c
10 paragraph is true and correct.
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WITNESS my hand and official seal. W
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(Signature of Notary) (This area for Q
14 official notarial seal) vi
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2 LEGAL DESCRIPTION: 0
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3 Address: y
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LEGAL DESCRIPTION
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1 CERTIFICATE OF ACCEPTANCE
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2 This is to certify that the interest in real property conveyed by written deed or grant dated °
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2017 from Affordable Housing Solutions of San Bernardino,Inc.to the City of San
3 Bernardino is hereby accepted by the undersigned officer or agent on behalf of the City, pursuant to authority
conferred by the City of San Bernardino on ,2017, pursuant to Resolution No. 2017-
4 and the City consents to recordation of said written deed or grant by its duly authorized officer.
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5 Dated this day of 2017
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By:NOT FOR SIGNATURE
8 Mark Scott,City Manager ;a
City of San Bernardino m
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Provides for: Q
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12 A notary public or other officer completing this certificate verifies only the identity of the individual who
signed the document to which this certificate is attached,and not the truthfulness,accuracy,or validity of that Q
13 document.
14 State of California } ss vi
County of San Bernardino) _
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On before me, Notary Public,
16 personally appeared who proved to me on the basis of satisfactory evidence r
to be the person whose name is subscribed to the within instrument and who acknowledged to me that he/sheCn
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17 executed the same in his/her authorized capacity, and by his/her signature on the instrument the person, or a
18 entity upon behalf of which the person acted, executed the instrument. ,
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1 certify under PENALTY of PERJURY under the laws of the State of California that the foregoingCL
19 paragraph is true and correct. a`
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WITNESS my hand and official seal.
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(Signature of Notary) (This area for official notarial seal)
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