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PRESENTATION
City of San Bernardino
Request for Council Action
Date: May 1, 2024
To: Honorable Mayor and City Council Members
From: Charles A. Montoya, City Manager;
Andrea Russell, Director of Human Resources & Risk
Management
Department: Human Resources & Risk Management
Subject: Peace Officer Housing Incentive Program
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file the report and presentation regarding the potential for a Peace Officer Housing Incentive Program for all full-time sworn staff.
Executive Summary
In order to attract and retain peace officers, as well as encourage them to live in the community in which they serve, Staff is proposing a Peace Officer Housing Incentive Program.
Background
In an effort to enhance community safety and foster a stronger connection between law enforcement officers and the neighborhoods they serve, the Peace Officer Housing Incentive Program is an innovative initiative to encourage full-time sworn peace officers to become homeowners within the city limits. With a commitment to promoting local residency among our dedicated officers, the city can allocate $1 million from the general fund to establish a groundbreaking home buyer incentive program.
This housing incentive program will allow San Bernardino peace officers the ability to access financial assistance in the form of a low interest home loan designed to aide in home ownership within city limits. Each eligible officer will have the opportunity to obtain a loan of up to $50,000, generously provided at a favorable interest rate of 2 percent over a ten-year term.
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Discussion
The significance of this initiative extends far beyond mere financial support. By empowering our officers to become homeowners within San Bernardino, we are fostering a deeper sense of community engagement and commitment. Research has consistently shown that officers who reside in the communities they serve are more attuned to local concerns, more invested in building positive relationships with residents, and ultimately more effective in their law enforcement duties. In line with accountability and responsibility, officers who receive a low interest home loan from the City must adhere to certain conditions.
•This program would apply to all full-time sworn peace officers who have completed the field training officer (FTO) program.
•Repayment would be made as a payroll deduction. If the peace officer is on unpaid leave or receiving reduced pay such that full payment by payroll deduction is not possible, the peace officer shall continue to make timely payments to the City by other means.
•The City’s loan agreement would be secured with a deed of trust and have appropriate default provisions.
•The home must be the primary residence of the peace officer for a minimum of five (5) years. A Primary Residence is defined as the residential dwelling which the Borrower maintains as their primary place of residence for purposes such as sleeping, eating, receiving mail, maintaining a wardrobe, and the like. •If the Residence is sold or transferred prior to 5 years, the total amount or original loan would become due and payable. If the Residence is sold or transferred after 5 years, the forgiveness amount would be prorated.
•Should a peace officer’s employment be terminated for any reason (i.e.., retirement, job loss, voluntary exit) or should a peace officer sell their property prior to the five (5) year term, the peace officer would be required to repay the remaining balance of the home loan within 45 days after separation. oIf the peace officer is unable to pay the remaining loan balance 45 days after separating from the City, then the City would have the right to adjust the interest rate to the prevailing market rate 60 days after employee separation.
These prudent measures ensures that the City's investment is protected and that funds can continue to be allocated to support home ownership for sworn peace officers. By implementing the Peace Officer Housing Incentive Program, the City of San 2 0
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Bernardino is not only investing in the future of our police force but also in the vitality and resilience of our community as a whole. Together, we are building a safer, stronger, and more vibrant San Bernardino, where our peace officers are not only protectors of the peace but also cherished members of the neighborhoods they call home.
This program is proposed to be in effect beginning July 1, 2024 through June 30, 2025, and may be renewed annually subject to the continuation of funding. The City Manager may discontinue this program at any time without advance notice.
Because of the lower than market interest rate proposed in this program, the City may have to pay taxes on the imputed interest. Imputed interest in the difference between the market interest for a loan of a similar term and the rate being offered. Finance staff is researching the tax implications to ensure that the City will be compliant with all IRS rules if the program is implemented.
2021-2025 Strategic Targets and Goals
A Peace Officer Housing Incentive Program aligns with Key Target 2b: Focused, Aligned Leadership and Unified Community by building a culture that attracts, retains, and motivates the highest quality of talent.
Fiscal Impact
There is no fiscal impact with receiving and filing this report and presentation. Should Council choose to implement this at a later date, a fiscal impact of $1,000,000 will come from the General Fund.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file the report and presentation regarding the potential for a Peace Officer Housing Incentive Program for all full-time sworn staff.
Attachments
Attachment 1 – Proposed Peace Officer Housing Incentive Program PowerPoint Ward:
All Wards
Synopsis of Previous Council Actions:
N/A