ALAMEDA COUNTY COMMUNITY DEVEWPMENT AGENCY HOUSING AND COMMUNITY DEVELOPMENT DEPARTMENT

Chris Bazar Agency DI(<<to(

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Linda M.Gardner HOUlltl!! Djf«lCt

Z24 W Winton Avenue

room 10

Hayward ullifornla

t 544-1215

phone 510.6705404

fax 510670.6378

TIY 510265.0253

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AGENDA ITEM No.__Oetober 26, 2010

October 12, 2010

The Honorable Board of Supervisors Alameda County Administration Building Oakland, California 946] 2

Dear Board Members:

SUBJECT: APPROVE ALLOCATION OF PROGRAM INCOME RECEIVED UNDER THE NEIGHBORHOOD STABD..,1ZAnON PROGRAM (NSP) AS IT IS RECEIVED AND AUTHORIZE AMENDMENTS TO CONTRACTS #4107 AND #5272 (WITH HALLMARK COMMUNTIY SOLUTIONS) AND CONTRACT #5274 (WITH HABITAT FOR HUMANITY EAST BAY) TO PROVIDE ENHANCED PROGRAM ELIGmLE ACTIVITIES

RECOMMENDATION:

1. Authorize the Community Development Director or designee to allocate program income as it is received from payoffs under the Neighborhood Stabilization Program (NSP) to Contractors under the NSP program for the funding of additional NSP-eligible activities; and,

2. Authorize amendments to the following three contracts allowing the addition ofprogram income funds to replenish the initial contract sum, with maximum aggregate contract amounts as noted, with no change in other terms of the contracts:

a. Contract No. 4107 with Hallmark Community Solutions (Principal: Mardie Oak.es~ Location: San Francisco) for NSP 1 funds, increasing the maximum aggregate contract amount, from $2,064,234 to $5,742,702 (an increase of $3)678,468);

b. Contract No. 5272 with Hallmark Community Solutions(principal: Mardie Oakes~ Location: San Francisco) for NSP2 funds, increasing the maximum aggregate contract amount from $5,093,1 SO to $15,279,450 (an increase of $10,186,300); and,

c. Contract No. 5274 with Habitat for Humanity (principal: Janice Jensen; Location: Oakland) for NSP2 funds, increasing the maximum aggregate contract amount from $2,056,849.32 to $6,170,548 (an increase of $4,113,698.68).

Board of Supervisors October 12, 2010 Page 20f3

DISCUSSION/SUMMARY:

In July, 2008, the federal Housing and Economic Recovery Act (HERA) 0[2008 (HR 3221) was enacted. It provided $3.92 billion for a new federal Housing and Urban Development (ffiJD) program entitled the Neighborhood Stabilization Program (NSP1) providing grants to localities, including Alameda County, as a one-time augmentation toassist with abandoned and foreclosed residential properties. The Community Development Agency's Housing and Community Development Department (HCD) received an allocation of$2.1 million as the lead entity for the Alameda County Urban County. Under the American Reinvestment and Recovery Act of 2009, President Obama created the Neighborhood Stabilization Program II (NSP2), to augment the original NSP program. HCD received S11 million for NSP2.

On July 21, 2009, your Board approved Contract No. 4107 with Hallmark Community Solutions for NSPl. On July 27,2010, your Board approved Contract No. 5272 with Hallmark Community Solutions and Contract # 5274 with Habitat for Humanity for NSP2 funds. Under these contracts, NSP funds are used to acquire tax delinquent and/or lender foreclosed properties for subsequent rehabilitation to bring them up to Housing and Safety Standards. Once work is completed, these properties are sold to the eligible homebuyer at market or below market price per the program guidelines.

When the properties are sold, NSP funds are paid back and characterized as program income for the County. The original contracts and your Board approval established the spending authority for original NSP funds but not for subsequent receipt of program income to recycle into additional program-eligible activities. Currently, HCD is limited to spend up to the original NSP grant and equivalent contract amounts only, which is not sufficient to achieve HCD's goals for the program and address the continuous need to use revolving program income for additional program activities. Your Board approval is now sought to amend all three contracts to authorize the Community Development Director or designee to add program income received through payoffs to replenish the initial contract sum and increase the spending authority accordingly for NSP-eligible activities, for maximum aggregate contract amounts of three times each contract's current contract amount. Your approval would also authorize the Auditor's Controller's Office to encumber funds as and when received, and allocate the funds appropriately.

SELECTION CRITERIA AND PROCESS:

Alameda County HCD issued a competitive Request for Proposals (RFP) on February 2009 to select developers for the NSP1 program. Six organizations responded to the RFP. HCD and City o/Newark staffrated and ranked the applications against the published criteria. HCD staff interviewed the top three candidates. This process led to Hallmark Community Solutions being recommended as having the best fit ofexperience and qualifications to meet the HUD and local requirements ofthe program.

Board of Supervisors October 12, 2010 Page 3 of3

The NSP2 Application to HUD indicated that the competitively-selected development partners in the NSP1 Programs would be used to carry out the NSP2 program. The two ckvelopment partners competitively selectedfor NSP1programs were Habital for Humanity East Bay (City of Hayward) and Hallmark Community Solulions (Alameda County and City ofLivermore NSPJ Consortium).

FINANCING:

The HUD grants pay for program and administration costs ofNSPl and NSP2 eligible activities. Funds added under the amendments will come from program income on the grant funds. There is no Net County Cost as a result of this action.

c!:0urs,~ 1w Chris Bazar, Director Community Development Agency

Attachments

cc: Susan Mumnishi, CoWlty AdministralOr Patrick O'Connell, Auditor-ControHer Richard Winnie, Office of County Counsel Andrea Weddle, Office of County Counsel Louie Martirez, CoWlty Administrator's Office V.B. Singh, CDA Finance Director

G:IHCDINSp\azs NSPI aDd NSJ>2 amdnt board letter.doc

SECOND AMENDMENT TO THE AGREEMENT BY AND BETWEEN

CONTRACTOR AND

THE COUNTY OF ALAMEDA

THIS AMENDMENT, made and entered into this 26th day of October, 2010, modifies the Contract #4107 entered into on the 21 51 of July, 2009 as amended on April 13th, 2010, by and between the County of Alameda, a body corporate and politic of the State of California, (hereinafter referred to as "County"), and Hallmark Community Services d.b.a. Hallmark Community Solutions, a nonprofit public benefit corporation (hereafter referred to as "Contractor").

WITNESSETH:

1. Page 5, III. COMMENCEMENT AND COMPLETION REQUIREMENTS Delete "County has allocated the sum of $2,064,234 ($1,914,234 of NSP funds and $150,000 of Affordable Housing Trust Funds) ...." and replace with the following:

"County has allocated an initial sum of $2,064,234 ($1,914,234 of NSP1 grant funds and $150,000 of Affordable Housing Trust Funds) to this contract. In addition, County will allocate and pay to the Contractor future program income as and when received up to a maximum of $3,678,468, to replenish the initial contract sum, with a maximum aggregate contract amount not to exceed Five Million, Seven Hundred Forty Two Thousand, Seven Hundred and Two dollars ($5,742,702.00) ... "

REMAINDER OF PAGE INTENTIONALLY BLANK

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Except for the above changes, the original contract remains in full force and effect.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day first mentioned above.

* * * * * * * * * * * * * CONTRACTOR COUNTY OF ALAMEDA

By:President, Board of Supervisors

Mardie Oakes Attest _ Executive Director Clerk, Board of Supervisors Hallmark Conununity Solutions 1242 Market Street, 3rd Floor Date:

-------~--------San Francisco, CA 94102 (415) 863-3036 Approved as to fonn: Taxpayer ID: 14-1870357 Richard E. Winnie, County Counsel

d/~/~ ---t.......,f-¥-X~---'Ir-""'-------

Date: \0/ l'k/ \6 By: Andrea L. Weddle Senior Deputy County Counsel

G:\HCD\NSP\NSP I\v.s Hallmark NSP I 2nd Amendment Agrcctm.'llt program income-Ocl 2010,doc

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FIRST AMENDMENT TO THE AGREEMENT BY AND BETWEEN

CONTRACTOR AND

THE COUNTY OF ALAMEDA

THIS AMENDMENT, made and entered into this 26th day of October 2010, modifies the Contract #5272 entered into on the 2ih of July, 2010, by and between the County of Alameda, a body corporate and politic of the State of California, (hereinafter referred to as "County"), and Hallmark Community Services d.b.a. Hallmark Community Solutions, a nonprofit public benefit corporation (hereafter referred to as "Contractor").

WITNESSETH:

1. Page 5, III. COMMENCEMENT AND COMPLETION REQUIREMENTS Delete "COUNTY has allocated the sum of Five Million, Ninety Three Thousand, One Hundred and Fi tty Dollars ($5,093.150) ... " and replace with the following:

"COUNTY has allocated an initial sum of Five Million, Ninety Three Thousand, One Hundred and Fi fiy Dollars ($5,093,150) in NSP 2 grant funds to this contract. In addi tion, the County will allocate and pay to the Contractor future program income as and when received up to a maximum ofTen Million, One Hundred Eighty Six Thousand, and Three Hundred dollars ($10,186,300), to replenish the initial contract sum, with a maximum aggregate contract amount not to exceed Fifteen Million, Two Hundred Seventy Nine Thousand, Four Hundred and Fifty dollars ($15,279,450.00) ... "

REMAINDER OF PAGE INTENTIONALLY BLANK

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---------------

----------------

Except for the above changes, the original contract remains in full force and effect.

IN WlTNESS WHEREOF, the parties hereto have executed this Agreement on the day first mentioned above.

* * * * * * * * * * * * * CONTRACTOR COUNTY OF ALAMEDA

By:BY~~-- --------------- ­President, Board of Supervisors

Mardie Oakes Attest:Executive Director Clerk, Board of Supervisors Hallmark Community Solutions 1242 Market Street, 3rd Floor Date:San Francisco, CA 94102 (415) 863-3036 Approved as to fonn: Taxpayer ID: 14-1870357 Richard E. Winnie, County Counsel

I / l2./ l 0Date: \0 By: _

Andrea L. Weddle Senior Deputy County Counsel

G,\HCD\NSP\NSP 2\az.s HCS NSP2 Amendment Agreemml program income-Oct 2010,doc

~=___

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FIRST AMENDMENT TO THE AGREEMENT BY AND BETWEEN

CONTRACTOR AND

THE COUNTY OF ALAMEDA

THIS AMENDMENT, made and entered into this 26th day of October, 2010, modifies the Contract #5274 entered into on the 2ih of July, 2010, by and between the County ofAlameda, a body corporate and politic of the State of California, (hereinafter referred to as "County"), and Habitat for Hwnanity East Bay, a nonprofit public benefit corporation (hereafter referred to as "Contractor").

WITNESSETH:

1. Page 5, III. COMMENCEMENT AND COMPLETION REQUIREMENTS Delete "COUNTY has allocated the sum of Two Million, Fifty Six Thousand, Eight Hundred and Forty Nine Dollars and 32 cents ($2,056,849.32)... " and replace with the following:

"COUNTY has allocated an initial sum of Two Million, Fifty Six Thousand, Eight Hundred and Forty Nine dollars and 32 cents ($2,056,849.32) in NSP 2 grant funds to this contract. In addition, County wilt allocate and pay to the Contractor future program incom.e as and when received up to a maximum of $4,113,698.68, to replenish the initial contract sum, with a maximum aggregate contract amount not to exceed Six Million, One Hundred Seventy Thousand, Five Hundred and Forty·Eight dollars ($6,170,548.00) ... "

REMArNDER OF PAGE INTENTIONALLY BLANK

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----------------

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Except for the above changes, the original contract remains in full force and effect.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day first mentioned above.

* * * * * * * * * * * * * CONTRACTOR COUNTY OF ALAMEDA

BY:_-I-~ _ By:President, Board of Supervisors

Janice Jensen Attest:President & CEO Clerk, Board of Supervisors HABITAT FOR HUMANITY EAST BAY 2619 Broadway Date: _

Oakland, CA 94612 510251-6304 Approved as to fonn: Taxpayer 10: 94-3053687 Richard E. Winnie, County Counsel

oale~I.l...:\O~-------By: &~~

Andrea L. Weddle Senior Deputy County COW1Sei

G:\HCDlN$PINSP 2\azs HH NSP2 Amendment Agreement program incorne-Oct 20 to.doc

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