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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: February 19, 2025
To: Honorable Mayor and City Council Members
From: Tanya Romo, Acting City Manager
Gabriel Elliott, Director of Community Development and
Housing
Department: Community Development and Housing
Subject: HOME Investment Partnership Program – Owner
Occupied Rehabilitation Program Subrecipient
Agreement with Neighborhood Partnership Housing
Services, Inc. (All Wards)
Recommendation
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Approve the HOME Investment Partnership Agreement Owner Occupied Rehabilitation Program Subrecipient Agreement between the City and Neighborhood Partnership Housing Services, Inc. for $920,000; and
2. Authorize the City Manager or designee to take further actions and execute any additional documents, including future amendments, to effectuate the agreements.
Executive Summary
The City Council approved the Fiscal Year 2024-25 Annual Action Plan (FY24-25 AAP), which allocated $920,000 in HOME Investment Partnership Program (HOME) funds to the Owner-Occupied Rehabilitation Program (OORP). The OORP helps income-eligible homeowners in San Bernardino make essential home repairs to meet health and safety codes. The program offers deferred payment loans up to $40,000 for repairs such as plumbing, roofing, accessibility improvements, and energy efficiency upgrades. A significant portion of the funds is designated for contractor work, administration, and program implementation. This partnership will improve the quality of life for eligible households while preserving the City’s housing stock. The sub- recipient agreement is effective for one year and can be extended for an additional 2 5
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year based on performance.
Background
On April 15, 2020, the Mayor and City Council approved the City of San Bernardino’s Consolidated Plan for 2020-2025. The Consolidated Plan is a five-year planning document that guides jurisdictions in assessing their affordable housing and community development needs and market conditions, making data-driven, place- based investment decisions, and conducting community-wide discussions to identify housing and community development priorities that align and focus on eligible activities for CDBG funding. The Consolidated Plan is implemented through Annual Action Plans, which summarize the actions, activities, and specific federal and non-federal resources allocated each year to address the priority needs and goals outlined in the Consolidated Plan.
On May 1, 2024, staff presented the Proposed FY 2024-25 Annual Action Plan to the Mayor and City Council, including staff recommendations for proposed subrecipient awards, for their consideration and public comment review.
On May 15, 2024, the Mayor and City Council approved the FY 2024-25 AAP for the Community Development Block Grant, HOME Program, and Emergency Solutions Grant Program. The FY 2024-25 AAP allocated $920,000 in HOME funds to NPHS to implement the City OORP.
Discussion
The OORP is designed to assist income-eligible homeowners in entitlement communities by providing financial assistance to improve their homes' living conditions to meet the City’s health and safety code requirements. Financial assistance will be provided as a deferred payment loan not to exceed $40,000 per loan, pursuant to terms allowed under the City’s OORP guidelines. The deferred loan is secured against the property with an affordability covenant and deed of trust, which outlines recapture provisions in the event of default.
The $40,000 program eligibility is based on household size and income level for owner- occupied single-family detached homes, townhomes, and condominiums within San Bernardino city limits. Reimbursable repairs and improvements include addressing health and safety issues, building code violations, accessibility, and general property- related repairs. Specific eligible improvements may include:
Interior and exterior painting
Plumbing and electrical repair
Roofing and structural repairs (e.g., foundation issues) Landscaping and driveway repair or replacement
Bedroom or bathroom additions to relieve overcrowding American with Disabilities Act (ADA) improvements
Energy efficiency upgrades
The United States Department of Housing and Urban Development (HUD) requires the 2 5
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execution of a sub-recipient agreement, in accordance with 24 CFR 92.352, to award HOME Program funds. This HOME OORP sub-recipient agreement with NPHS will formally establish the terms and conditions for the use of federal funds and define the subrecipient’s responsibilities for performance and regulatory compliance. At least 15 percent of HOME funds must be set aside for specific activities to be undertaken by a special type of nonprofit called a Community Housing Development Organization (CHDO).
Neighborhood Partnership Housing Services (NPHS), a well-established Community Housing Development Organization (CHDO), has been designated as the Program Administrator for the City’s Owner-Occupied Rehabilitation Program (OORP) utilizing HOME funds. NPHS was selected as the sub-recipient due to its 32 years of expertise in housing programs and its proven success in administering this program during the City’s FY 2020-2025 HUD Consolidated Plan. With a highly qualified team and extensive experience, NPHS possesses the capacity and expertise to fulfill all program requirements.
In FY 2022-2023, NPHS successfully managed the City’s OORP, rehabilitating 10 single-family homes. The organization excels in program monitoring, evaluation, and the delivery of supportive services. Furthermore, NPHS's mission aligns seamlessly with the City’s strategic goals, as both entities are committed to fostering resilient communities through innovative housing and economic solutions.
This program allows the City, in partnership with NPHS, to provide deferred payment loans to owners of single-family residences whose incomes do not exceed 80% of the Area Median Income, as defined by HUD guidelines. These loans are anticipated to improve the quality of life for income-eligible households by assisting with property repairs and improvements necessary to make their homes decent, safe, and attractive while preserving the City’s housing stock, a key program requirement as outlined in 24 CFR 92.251(b).
The allocation of the $920,000 in HOME funds to NPHS is detailed as follows:
Item Description Estimated Quantity Unit Price Subtotal 1 Allowance Contractor/Subcontractor Work 20 $40,000* $800,000 2 Administration (15% of each project) 20 $6,000 $120,000 Total $46,000 $920,000
*Not to exceed $40,000.
NPHS estimates they can assist approximately 20 households.
During the term of this sub-recipient agreement, NPHS will deliver the following services:
Serve as the Program Administrator and carry out all duties of the Program Administrator as outlined in the Program Guidelines for the Term of this Agreement.
Manage all application, intake, and verification procedures for Residential 2 5
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Rehabilitation Loans made to Eligible Households pursuant to the Program, including but not limited to ensuring the Eligible Households and the Eligible Property meet the eligibility requirements for the Program in a manner consistent with the Program Guidelines and HOME Regulations, including utilization of the HOME Guide for Review of Homeowner Rehabilitation Projects.
Ensure that households and properties meet eligibility criteria under the program guidelines and HOME regulations.
Prepare and execute loan documentation, including agreements, promissory notes, and deeds of trust in approved formats.
Review and document contractor bids and issue notices to proceed for rehabilitation work
Ensure contractors comply with agreements and commitments as required by Monitor loan proceeds to ensure they are spent exclusively on rehabilitation costs
Oversee and monitor rehabilitation work to confirm compliance with program guidelines and HOME regulations.
Prepare and maintain comprehensive project files to meet the standards outlined in the program guidelines
Submit monthly performance reports to the City by the 15 th of each month in a format acceptable to the City.
The term of this agreement shall commence on the effective date of July 1, 2024, and will expire one (1) year after the effective date of June 30, 2025, unless terminated earlier. The agreement is to run with the HOME program year, which began on July 1, 2024. The City reserves the option to extend the term of this agreement for one (1) additional one-year term. In the event that the agreement is not extended for an additional one-year term, any unspent funds will be reallocated during the FY 2025- 2026 Annual Action Plan or in a future substantial amendment. NPHS will submit monthly progress reports to the city, which will be used to evaluate time extension requests. Under no circumstances shall the term of this agreement extend beyond June 30, 2026.
2024-2025 Strategic Targets and Goals
The request to approve the Subrecipient Agreements aligns with Strategic Target No. 3: Improved Quality of Life by providing financial assistance to eligible homeowners to address health and safety hazards, correct building code violations, enhance accessibility and ensure decent, safe, and sanitary living conditions.
Fiscal Impact
There will be no fiscal impact on the City’s General Fund. This program will be funded with HOME funds provided by the United States Department of Housing and Urban Development (HUD).
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Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Approve the HOME Investment Partnership Agreement Owner Occupied Rehabilitation Program Subrecipient Agreement between the City and Neighborhood Partnership Housing Services, Inc. for $920,000; and
2. Authorize the City Manager or designee to take further actions and execute any additional documents, including future amendments, to effectuate the agreements.
Attachments
Attachment 1 HOME Owner-Occupied Rehabilitation Program Master Agreement
Attachment 2 FY2024-25 Annual Action Plan
Ward
All Wards
Synopsis of Previous Council Actions
April 15, 2020 The Mayor and City Council approved the City of San Bernardino’s Consolidated Plan for 2020-2025.
May 1, 2024 Proposed FY 2024-25 Annual Action Plan was taken to the Mayor and City Council for public comment and the City
Council to review proposed subrecipients.
May 15, 2024 Mayor and City Council approved FY 2024-25 Annual Action Plan.