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05-27-2008 CC Rpt A05 COUNCIL AGENDA STAFF REPORT CITY CLERK USE ONLY Meeting Date May 27, 2008 • l 1 , r Public Hearing 0 r"'""`""'"`" Discussion Item Consent Item DATE: May 20, 2008 TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: CITY MANAGER SUBJECT: COOPERATIVE AGREEMENT FOR THE HOME CONSORTIUM (HOME PROGRAM) FROM OCTOBER 1, 2008 THROUGH SEPTEMBER 30, 2011 RECOMMENDATION: Authorize the execution of a cooperative agreement with the County of San Bernardino to continue the City's participation in the HOME Consortium. BACKGROUND/ANALYSIS: The County of San Bernardino manages a variety of affordable housing programs with the primary purpose of expanding the supply of decent, safe, sanitary, and affordable housing for the residents of our County. One such program is the HOME Investment Partnership Program (HOME), which is a federally funded program through the U.S. Department of Housing and Urban Development (HUD). A Consortium, which includes the cities of Colton, Highland, Rancho Cucamonga, Redlands, Rialto, and Chino Hills, was formed for the purpose of receiving and Administering HOME funds. The City of Chino Hills has participated in the HOME Consortium since 1992 and the execution of this Agreement will extend the City's participation for another three years from October 1, 2008 through September 30, 2011. The HOME Program can be used to fund a variety of housing activities including activities that build, buy, and/or rehabilitate affordable housing for rent or homeownership or provide direct rental assistance to low-income participants. Each funded activity will have its own eligibility requirement but the incomes of households receiving HUD assistance must not exceed eighty percent of the area median. Consortium members will have access to five established programs and a new program through the Consortium, which are the following: 1. The HOME Homeownership Assistance Program (HAP) — A silent second trust deed program to assist low-income persons in becoming homeowners. 2. American Dream Downpayment Initiative (ADDI) —A downpayment assistance program for first-time home buyers. 3. HOME Tenant-Based Rental Assistance (TBRA) Program- A monthly rent subsidy for very low-income special needs households and a security deposit assistance program. /95 AGENDA DATE: May 27, 2008 Page 2 SUBJECT: COOPERATIVE AGREEMENT FOR THE HOME CONSORTIUM (HOME PROGRAM) FROM OCTOBER 1, 2008 THROUGH SEPTEMBER 30, 2011 4. HOME Rental Property Acquisition and/or Rehabilitation Program —A program that provides three percent interest loans to acquire and/or rehabilitate existing rental property, which will then be made available to qualifying tenants at affordable rents for a specified period of time. 5. HOME Community Housing Development Organization (CHDO) Program —A program that provides funding for affordable housing, which is developed, sponsored or owned by nonprofit organizations. 6. HOME Affordable Housing Development Loan (AHDL) Program —A new program that provides financial assistance in the form of gap financing to qualified individuals, for-profit entities and non-profits for the purpose of new construction, acquisition and/or rehabilitation of affordable housing. Continued participation in the HOME Program strengthens the City's commitment to provide opportunities for first-time and/or low to moderate income level homebuyers to purchase or rent homes in the City of Chino Hills. This complements the City's ongoing effort to fulfill the State's Housing Element requirements to meet our regional share of housing needs for families of all income levels. The HOME Program, is separate from, and will not impact the City's Community Development Block Grant (CDBG) Program. doREVIEW BY OTHERS: The City Attorney, Finance Director, Community Services Director and the Assistant to the City Manager have reviewed this item. FISCAL IMPACT: All the programs in the HOME Consortium Agreement are funded by the U.S. Department of Housing and Urban Development (HUD). The County of San Bernardino will provide program administration at no cost to the City. Under HUD regulations, the City shall contribute a minimum 25 percent funding match contribution from any HOME-eligible match sources for each project designed to receive HOME funds. Since 1992, the City has not contributed any funding match to this program. The County has covered all required funding match contributions utilizing several HOME-eligible match sources (i.e., Mortgage Revenue Bond Program and Community Housing Development Organizations). In conclusion, there is no anticipated financial impact to the City of Chino Hills. Res&-ctfully submitted, Recommended by: CL I Five Do VIF N. La Belle, City Manager Christine Kelly 11111 Community Development DC:4r Attachment: Home Investment Partnership Program Cooperation Agreement for HOME Consortium 1EP.ARTMENT OF COUNTY OF ;OMMUNITY DEVELOPMENT AND HOUSINGrifur*p.Aftruo • SAN BERNARDINO sommommimmEmmimm Street,Sixth Floor•San Bernardino,CA 92415-0040•(909)388-0800 if PATRICIA M.COLE Fax(909)388-0844 Deputy Administrative Officer May 5, 2008 Douglas N. LaBelle, City Manager City of Chino Hills 2001 Grand Avenue Chino Hills, CA 91709-4869 Dear Mr. LaBelle: The County of San Bernardino Department of Community Development and Housing (CDH) is preparing a new HOME Consortium Agreement. The new Agreement will be for a period of three (3) years, starting,October 1, 2008, and ending September 30, 2011. The first step in this procedure required the County to notify the U.S. Department of Housing and Urban Development (HUD) of all potential Consortium members. This step is complete. We have notified HUD of your interest in joining the County of San Bernardino HOME Consortium (Consortium). As an existing HOME Consortium member, the City of Chino Hills benefits from the availability of HOME funds which would otherwise be redistributed by HUD nationally. Membership in the San ernardino County HOME Consortium will insure that HOME funds continue to be made available to our residents and Community Housing Development Organizations (CHDO's). Consortium member cities can take advantage of five (5) well-established programs, and one (1) new program, the Affordable Housing Development Loan Program, all managed, staffed and currently in operation, including: 1. HOME Homeownership Assistance Program (HAP) — A silent second trust deed program to assist low-income persons in becoming homeowners. 2. American Dream Downpayment Initiative (ADD!) - Provides assistance to first-time home.buyers with their downpayment. Rules, regulations and eligibility requirements governing this program are similar to the Homeownership Assistance Program (HAP). The maximum amount of assistance, per family, is $10,000 or six percent (6%) of the sales price, which ever is greater. 3. HOME Tenant-Based Rental Assistance (TBRA) Program — Provides both a monthly rent subsidy for very low-income special needs households and security deposit assistance to households receiving a monthly rental subsidy from the Housing Authority of the County of San Bernardino. 4. HOME Rental Property Acquisition and/or Rehabilitation Program — Provides three percent (3%) interest loans to acquire and/or rehabilitate existing rental property 41P Board of Supervisors MARK H UFFER BRAD MITZELFELT. . . First District DENNIS HANSBERGER. . Third District County Administrative Officer PAUL BIANE,Chair. . . . Second District GARY C.OVITT,Vice Chair . .. . . Fourth District JOSIE GONZALES .. Fifth District . . . . . . 4111111 which will then be made available to qualifying tenants at affordable rents for a specified period of time. 5. HOME Community Housing Development Organization (CHDO) Program — Provides funding for affordable housing which is developed, sponsored or owned by nonprofit organizations which have been certified as Community Housing Development Organizations. 6. HOME Affordable Housing Development Loan (AHDL) Program — Provides financial assistance in the form of gap financing to qualified individuals, for-profit entities and non-profits for the purpose of new construction, acquisition and/or rehabilitation of affordable housing. Any rental housing developed with the assistance of HOME funds must benefit very low-income households at sixty percent (60%) Adjust Median Income (AMI) or below. Single-family housing must benefit low- income households at eighty percent (80%) AMI or below. Attached for your convenience is a detailed description of the HOME Consortium Programs and six (6) originals of the Cooperation Agreement for HOME Consortium. If you are interested in joining the Consortium, the Cooperation Agreement needs to be adopted by City Council approval no later than May 23, 2008. to allow adequate time for the County to satisfy HUD submittal deadlines. In addition, HUD requires the County to submit: 111111 "An authorizing resolution from the governing body of each member of local government or other acceptable evidence that the Chief Executive Officer is authorized to sign the consortium agreement." Please provide a copy of the authorizing resolution along with the six (6) original signed Agreements no later than May 23, 2008. A copy of the resolution submitted by your City in 2005 is attached for reference. These items are required prior to the County Board of Supervisors' meeting to approve the Agreement. A fully-executed original will be returned. I encourage you to consider the benefits of continued Consortium membership. If you need additional information or have questions regarding this notice, please call me at (909) 388-0808 or Adriane Rich, Housing Program Specialist, at (909) 388-0915. Sincerely, 1 . PATRICIA M. COLE, Deputy Administrative Officer AYR:lf Attachment c: Christine Kelly, Director of Community Development milow-va qrx •' 141-n, .10.0 fLit7,,YATAri ift%Or. , '4,1f 4,?•,`1:1 • ; 7",1-,•:+1.,.7- +-g ik,-10.f4t,P.,,,,,p,i-7-woxy:T.;sliti=w4i`ok,-1,-1.44v.-.4,-Mon-?:-Ocm.;- 41:- o- - , 4ft-7-„..1.v=., , • `,..-;,''''S:44?-,P;41 -rt,Ottlf, .1147r- ‘, City of CITY OF CHIHILS f.CONPOSIATENO D 1,L11 Chino Hills .„, - , May 12, 2005 $ _ — • r: Mr. Thomas R. Laurin, Director San Bernardino County Dept. of Economic and Community Development 290 North "D" Street, Sixth Floor San Bernardino, CA 92415-0040 $.; Dear Mr. Laurin: • • RE: Cooperative Agreement No. A05-22 At their regular meeting held May 1.0, 2005, the City Council of the City of Chino Hills authorized execution of Cooperative Agreement No. A05-22, between the City and the County of San Bernardino, to continue the City's participation in the HOME Consortium Agreement for a period of three years, starting October 1, 2005 and ending September 30, 2008. Following approval and execution by the Board of Supervisors, please return one copy of the Agreement to my attention. Should you have any questions, please contact Kathy Gotch, Interim Community Development Director at (909) 364-2742. Sincerely, /N7/7/777 • i'vary M. icDuffee, CMC City Cle MMM:ciw Enclosure cc: Kathy Gotch, Interim Community Development Director 4110 Judy Lancaster, Finance Director City Council: Ed M. Graham Curt Hagman WC. "Bill"Kruger Gary G. Larson Gwenn E. Norton-Perry —• e"ne, ft, di ^1411.1 - U'av (ono • NA/IM rhitInhific nrd ,.. 1 FOR COUNTY USE ONLY . W-71 X New Vendor Code Dept. Contract Number afif PlO' — ..4.‘44irir* — Change SC A 40 ..1‘"- ..\.---. Cancel County Department › Community Development and Housing zipt. Orgn. Contractor's License No. ECD ECD County Department Contract Representative Telephone Total Contract Amount County of San Bernardino Patricia M.Cole,Deputy Administrative Officer (909)388-0808 Adriane Rich,Housing Program Specialist (909)388-0915 F A S Contract Type 0 Revenue 0 Encumbered 0 Unencumbered El Other: HOME Consortium ONTRACT TRANSMITTAL If not encumbered or revenue contract type,provide reason: Commodity Code Contract Start Date Contract End Date Original Amount Amendment Amount 10/1/08 9/30/11 N/A Fund Dept. Organization Appr, Obj/Rev Source GRC/PROJ/JOB No. Amount SAS ECD ECD 200 I I Fund Dept. Organization Appr. Obj/Rev Source GRC/PROJ/JOB No. Amount I I Fund Dept. Organization Appr. Obj/Rev Source GRC/PROJ/JOB No, Amount 1 I Project Name Estimated Payment Total by Fiscal Year HOME Investment Partnership FY Amount I/O FY Amount I/O Program(HOME)-Cooperation — — Agreement for HOME Consortium Countywide ONTRACTOR San Bernardino County HOME Consortium et \. D No. or Social Security No. N/A •ontractor's Representative Adriane Rich, Housing Program Specialist ,ddress 290 North"D"Street, Sixth Floor, San Bernardino, CA 92415-0040 Phone (909)388-0915 lature of Contract: (Briefly describe the general terms of the contract) "he purpose of this Agreement is to approve the Federal Fiscal Year 2008 t Cb111 Cooperation Agreement or continuation of a HOME Investment Partnership Program (HOMBe ,o ium between the County of San 4p79,1,t 3ernardino and the cities of Chino Hills, Colton, Highland, Rancbo c' rdonga, Redlands and Rialto. The cities viii be members of the Consortium for three (3) federal tistyears beginning October 1, 2008, and ending 3eptember 30, 2011. Cic ISS-N-) rhe attached contract/agreement cons's1sfo Ilik) pales. .k 4\$ ?Iki:,‘"f•-c ch:‘..) 1...it 'Attach this transmittal to all ontracts not prepAion heandar Contract"form.) .."'Cl4.,.1 Npproved as to Legal Form(sign in blue ink) Reitawed-arto •objytEtan'Pliance Reviewed for Processing 1%- County Counsel Y‘'ri,a,-/- Agency Administrator/CAO Dag Date Date Auditor/Controller-Recorder Use Only -"WatelcilerritriEWITiagebtrEn50,:'a$,.,,,A tIat'ov,i' 41041,3„4:,c4,4,',q4i '4'41 ,1ar:',N$IP tN,;f4eitAearr30:041 lipSAN BERNARDINO COUNTY DEPARTMENT OF COMMUNITY DEVELOPMENT AND HOUSING HOME INVESTMENT PARTNERSHIP PROGRAM COOPERATION AGREEMENT FOR HOME CONSORTIUM This Agreement is made by and between the Cities of Chino Hills, Colton, Highland, Rancho Cucamonga, Redlands and Rialto (hereinafter called "CI11ES") and the County of San Bernardino (hereinafter called"COUNTY"). WHEREAS, the Congress of the United States has enacted the Cranston-Gonzales National Affordable Housing Act, as amended (42 U.S.C. 12701 et seg.) and Federal Regulations have been adopted pursuant thereto, (hereinafter called the"ACT"); and, WHEREAS, Title II of the ACT creates the HOME Investment Partnership Program, (hereinafter called "HOME"), that provides funds to states and local governments for the acquisition, refinance, rehabilitation, and new construction of affordable housing and tenant- based rental assistance; and, WHEREAS, the ACT requires local governments to formulate and submit a Consolidated Plan, (hereinafter called "Con-Plan"), as part of the eligibility requirements for HOME funds in accordance with section 91.215 of the Consolidated Plan final rule; and, OilWHEREAS, funds from Title II are distributed to metropolitan cities, urban counties, states, and consortia of local governments; and, WHEREAS, the ACT allows local governments to form a consortia for the purpose of receiving and administering HOME funds and carrying out purposes of the ACT; and, WHEREAS, the ACT requires that a local government member of an urban county may participate in a Consortium only through the urban county; and, WHEREAS, the ACT requires that a Consortium shall have one member unit of general local government authorized to act in a representative capacity for all members for the purposes of the ACT and to assume overall responsibility for ensuring that the Consortium's HOME Program is carried out in compliance with the ACT, including requirements concerning the Con- Plan. NOW THEREFORE, it is agreed that: 1. CITIES and COUNTY will cooperate in the forming of the County of San Bernardino HOME Consortium, (hereinafter called the "CONSORTIUM"), for the purpose of undertaking or assisting in undertaking, HOME-eligible housing assistance activities pursuant to Title H of the 0 ACT, including but not limited to: acquiring, refinancing, rehabilitating, and constructing affordable housing, and providing tenant-based rental assistance. Page 1 of 10 2. COUNTY shall act as the representative member of the CONSORTIUM for purposes of the ACT and assume overall responsibility for ensuring that the CONSORTRJM's HOME Program is carried out in compliance with the requirements of the Program, including requirements concerning a Con-Plan. 3. CITIES shall provide to COUNTY, all necessary information and documentation as requested by COUNTY for incorporation into COUNTY's Con-Plan in compliance with Program Requirements. 4. CITIES shall have thirty (30) calendar days to approve the portions of the Con-Plan which pertain to the CITIES before COUNTY submits the final Con-Plan to the U.S. Department of Housing and Urban Development (HUD). COUNTY shall incorporate CITIES' changes in Con-Plan, if any, provided that they meet HOME Requirements. CITIES shall identify any areas designated for affordable housing activities Within their jurisdiction. CITIES shall provide maps and/or detailed descriptions of such areas upon execution of this document. 5. CI IIES shall approve each project funded with competitive HOME funds within their city boundaries prior to COUNTY approving funding of such projects,provided that the CITIES' approval or disapproval does not obstruct the implementation of the approved Con-Plan. 4110 6. CITIES shall designate the City Administrator, or his/her designee, as the CI flES' representative to whom all notices and communications from COUNTY shall be directed. COUNTY's duty to notify CIIIES shall be complete when the communication is sent to the designated representative. It is the exclusive duty of the designated representative to notify the appropriate individuals and departments within the CITIES. 7. To carry out activities under this Agreement, COUNTY shall allocate HOME funds received under the ACT to those HOME activities described in the COUNTY's Con-Plan. If necessary to meet HOME Requirements, funds will be reallocated by COUNTY in accordance with such needs, objectives, or strategies as COUNTY shall decide. In preparing such needs, objectives, or strategies, COUNTY shall consult with the CITIES before making its determinations. COUNTY shall fund HOME-eligible projects within CI ELES boundaries on a first-come, first-served basis. 8. CITIES shall contribute a minimum twenty-five percent (25%) funding match contribution from any HOME-eligible match source for each project designated to receive HOME funds. 9. COUNTY and CITIES shall comply with all applicable requirements of the ACT and its regulations in utilizing basic grant funds under the ACT and shall take all actions necessary to assure compliance with COUNTY certifications required by the ACT. COUNTY and CI HES will comply with the provisions of the National Environmental Policy Act of 1969, Title VI and 41110 VII of the Civil Rights Act of 1964, Title VIII of the Civil Rights Act of 1968, Executive Order 11988, the Fair Housing Act, and other applicable federal laws. CITIES agree that HOME Page 2 of 10 do funding for activities in, or in support of, CI HES are prohibited if CITIES do not affirmatively further fair housing within their own jurisdictions or impede COUNTY actions to comply with its fair housing certification. Each party to this Agreement shall affirmatively further fair housing. 10. CITIES shall provide COUNTY with all information concerning CITIES and the activities CITIES carry out under this Agreement which COUNTY requires to prepare: 1) documents required to be submitted to HUD, 2) annual HOME Performance Report, and 3) such other documents as COUNTY may require to carry out eligible housing activities or meet federal requirements. All information shall be submitted on forms prescribed by COUNTY. In addition, CU-1ES agree to make available upon request all records concerning the activities carried out under this Agreement for inspection by COUNTY or federal officials during regular business hours. 11. Pursuant to Government Code Section 895.4, CITIES each shall defend, indemnify and hold harmless COUNTY, its officers, employees, and agents from all claims, suits, actions or losses of any type, and from liability for any fines, penalties or damages of any type, resulting from CITIES' performance of this Agreement and caused by any act or omission of CITIES, including failure to comply with any requirement of the ACT or the HOME Program described herein except to the extent that any such claims, suits, actions, losses, or liability arises from any act or omission of COUNTY. 12. Pursuant to Government Code Section 895.4, COUNTY shall defend, indemnify and hold harmless CMES, its officers, employees, and agents from all claims, suits, actions or losses of any type, and from liability for all fines, penalties or damages of any type, resulting from COUNTY's performance of this Agreement and caused by any act or omission of COUNTY, including failure to comply with any requirement of the ACT or the HOME Program described herein, except to the extent that any such claims, suits, actions, losses, or liability arises from any act or omission of CITIES. 13. This Agreement shall go into effect immediately upon execution by all signatories to the Agreement and shall continue in full force and in effect until all activities funded under the terms of this Agreement, and any income generated from the expenditure of such funds, are expended and the funded activities are completed. CITIES are included in the CONSORTIUM for a period of three (3) federal fiscal years commencing on October 1, 2008, through September 30, 2011. No CONSORTIUM member may withdraw from the Agreement while the Agreement remains in effect. 14. This Agreement authorizes the COUNTY, as the lead entity, to amend the CONSORTIUM Agreement on behalf of the entire CONSORTIUM to add new members to the CONSORTIUM. Any other amendments to this Agreement must be made in writing and approved by all parties. 410) Page 3 of 10 11111SAN BERNARDINO COUNTY HOME INVESTMENT PARTNERSHIP PROGRAM COOPERATION AGREEMENT FOR HOME CONSORTIUM SIGNATURE PAGE 15. This Agreement may be executed in any number of counterparts with the same effect as if all signatories had signed the same document. All counterparts must be construed together to constitute one (1) instrument. IN WITNESS WHEREOF,the parties have caused this Agreement to be executed below. CITY OF CHINO HILLS Mayor Date fib Attest: City Clerk Date APPROVED AS TO FORM: City Attorney Date 4110 Page 4 of 10 IPSAN BERNARDINO COUNTY HOME INVESTMENT PARTNERSHIP PROGRAM COOPERATION AGREEMENT FOR HOME CONSORTIUM SIGNATURE PAGE 15. This Agreement may be executed in any number of counterparts with the same effect as if all signatories had signed the same document. All counterparts must be construed together to constitute one (1) instrument. IN WITNESS WHEREOF,the parties have caused this Agreement to be executed below. • CITY OF COLTON City Manager Date 41111 Attest: City Clerk Date APPROVED AS TO FORM: City Attorney Date AP Page 5 of 10 . . leSAN BERNARDINO COUNTY HOME INVESTMENT PARTNERSHIP PROGRAM COOPERATION AGREEMENT FOR HOME CONSORTIUM SIGNATURE PAGE 15. This Agreement may be executed in any number of counterparts with the same effect as if all signatories had signed the same document. All counterparts must be construed together to constitute one (1) instrument. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed below. CITY OF HIGHLAND City Manager Date 4/11 Attest: City Clerk Date APPROVED AS TO FORM: City Attorney Date Page 6 of JO OPSAN BERNARDINO COUNTY HOME INVESTMENT PARTNERSHIP PROGRAM COOPERATION AGREEMENT FOR HOME CONSORTIUM SIGNATURE PAGE 15. This Agreement may be executed in any number of counterparts with the same effect as if all signatories had signed the same document. All counterparts must be construed together to constitute one(1) instrument. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed below. CITY OF RANCHO CUCAMONGA Mayor Date 411111 Attest: City Clerk Date APPROVED AS TO FORM: City Attorney Date 110 Page 7 of 10 41111PSAN BERNARDINO COUNTY HOME INVESTMENT PARTNERSHIP PROGRAM COOPERATION AGREEMENT FOR HOME CONSORTIUM SIGNATURE PAGE 15. This Agreement may be executed in any number of counterparts with the same effect as if ' all signatories had signed the same document. All counterparts must be construed together to constitute one (1) instrument. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed below. • CITY OF REDLANDS Mayor Date 410111 Attest: City Clerk Date APPROVED AS TO FORM: City Attorney Date 411P Page 8 of 10 . • • 411111SAN BERNARDINO COUNTY HOME INVESTMENT PARTNERSHIP PROGRAM COOPERATION AGREEMENT FOR HOME CONSORTIUM SIGNATURE PAGE 15. This Agreement may be executed in any number of counterparts with the same effect as if all signatories had signed the same document. All counterparts must be construed together to constitute one (1) instrument. IN WITNESS WHEREOF,the parties have caused this Agreement to be executed below. CITY OF RIALTO City Administrator Date OP Attest: City Clerk Date APPROVED AS TO FORM: City Attorney Date 411P Page 9 of 10 SAN BERNARDINO COUNTY HOME INVESTMENT PARTNERSHIP PROGRAM COOPERATION AGREEMENT FOR HOME CONSORTIUM SIGNATURE PAGE 15. This Agreement may be executed in any number of counterparts with the same effect as if all signatories had signed the same document. All counterparts must be construed together to constitute one (1) instrument. IN WITNESS WHEREOF,the parties have caused this Agreement to be executed below. COUNTY OF SAN BERNARDINO PAUL BIANE, Chairman Date Board of Supervisors SIGNED AND CERTIFIED THAT A COPY OF THIS DOCUMENT HAS BEEN DELIVERED TO DENA M. SMITH Clerk of the Board of Supervisors By: Date APPROVED AS TO LEGAL FORM: RUTH E. STRINGER COUNTY COUNSEL By: Michelle D. Blakemore Date Deputy County Counsel 41110 Page 10 of 10