HomeMy WebLinkAbout20A - NEIGHBORHOOD STABILIZATION PROGRAM 3REQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
FEBRUARY 22, 2011
TITLE:
NEIGHBORHOOD STABILIZATION
PROGRAM 3 (NSP 3)
CITY MANAGER
RECOMMENDED ACTION
Recommend that the City Council:
CLERK OF COUNCIL USE ONLY:
APPROVED
? As Recommended
? As Amended
? Ordinance on 1" Reading
? Ordinance on 2"d Reading
? Implementing Resolution
? Set Public Hearing For_
CONTINUED TO
FILE NUMBER
Approve a substantial amendment to the 2010-2011 Annual Action Plan and authorize its
submittal to the U. S. Department of Housing and Urban Development.
2. Authorize the City Manager or his designee, to execute a Neighborhood Stabilization Program
3 application for grant funds in the amount of $1,464,113, subsequent grant agreement and
other necessary documents to the NSP 3 Strategy.
3. Approve an Appropriation Adjustment recognizing $1,464,113 in Neighborhood Stabilization
Program 3 grant funds and appropriating the same.
4. Authorize the issuance of a Request for Proposals for program developers.
COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION ACTION
At its regular meeting on February 15, 2011, by a vote of 5:0 (Bist absent), the Community
Redevelopment and Housing Commission approved the recommended actions.
DISCUSSION
The Dodd-Frank Act appropriated an additional $1 billion for a third round of Neighborhood
Stabilization (NSP 3) funds to be directly allocated to states and localities to stabilize
neighborhoods that have been impacted by foreclosed or abandoned properties. Under the terms
of the funding distribution formula established by the U. S. Department of Housing and Urban
Development (HUD), Santa Ana has been allocated $1,464,113. These funds may not be used to
assist homeowners to avoid foreclosure; rather, at minimum, the lender must have initiated the
foreclosure process on the property, or it has been abandoned.
20A-1
NSP (3)
February 22, 2011
Page 2
Fifty percent of the funds must be expended within two years of the signed grant agreement with
100% expended within three years. Consistent with prior NSP allocations, funds may be used to
benefit households with incomes up to 120% of area median income; but a minimum of 25% of
these funds, or $366,029, must be spent on activities benefitting very low-income households
(50% AMI).
Currently, Santa Ana has approximately 337 foreclosed properties and 546 properties with a
recorded Notice of Default. Due to additional constraints instituted by HUD to stabilize
neighborhoods and concentrate funds, the City is required to target an area significantly smaller
than in prior NSP applications. Careful consideration was given as to our ability to significantly
impact the foreclosure problem in different neighborhoods with the limited funds allocated in this
third round. After analyzing foreclosure data from public records and the location of homes
preserved with the first two rounds of grant funds, it is recommended that a portion of the City
identified in Exhibit 1 would greatly benefit from higher concentration of stabilization funds.
In order to receive the funds, the City must adopt a Substantial Amendment to its 2010-2011
Consolidated Plan Annual Action Plan (Exhibit 2). The Annual Action Plan is the document
whereby the City formally applies to HUD for its annual federal grant allocations (CDBG, HOME,
ESG, and HOPWA) and describes how those grant funds will be used.
The regulations identify five allowable programmatic uses for the purchase of foreclosed or
abandoned homes:
1. Establishment of financing mechanisms such as soft seconds and shared equity loans.
2. Purchase and rehabilitation for the purpose of selling, renting or redeveloping.
3. Establishment of a land bank for the purpose of assembling, managing and ultimately
disposing of vacant land in a manner that will help stabilize neighborhoods and encourage
re-use or redevelopment of urban land.
4. Demolition of blighted structures.
5. Redevelopment of demolished or vacant properties to be used for a public purpose and/or
new construction.
The proposed NSP programs, budgets, and target goals are identified in the table below.
20A-2
NSP (3)
February 22, 2011
Page 3
Program Program Budget Goal
No. # of Homes
Acquisition/Rehabilitation/Resale of Single
1 Family Homes for Low-Income Households (at
or below 50% AMI $366,029 1
Acquisition/Rehabilitation/Resale of Single
2 Family Homes for Low-, Moderate-, Middle-
Income Households u to 120% AMI $951,674 6
n/a Administration $146,410 N/A
Total NSP Grant $1,464,113
The guidelines of the loan program are described in Exhibit 3.
The acquisition, rehabilitation and resale to affordable homebuyers will be undertaken by either a
non-profit or for-profit developer. This entity will be procured through a Request for Proposal
(RFP) (Exhibit 4) that will be distributed to a broad range of consultants, non-profits, and
developers. The purpose of the RFP is to solicit and select a developer to provide the complete
range of services for the successful implementation of NSP 3. They will be selected based on
experience, resources and financial capacity to effectively acquire, rehabilitate, and sell properties
to eligible homebuyers. In an effort to leverage the NSP funds, the developer will be required to
have a line of credit available for the acquisition component.
A public notice was published on January 31, 2011, in the Orange County Reporter, La Opinion
and Nguoi Viet News indicating that the draft Neighborhood Stabilization Program 3 substantial
amendment was available for review for the required fifteen days. In addition, it was posted on the
City's website.
FISCAL IMPACT
By submitting this substantial amendment to its 2010-2011 Annual Action Plan and grant
agreement, the City of Santa Ana will be eligible to receive up to $1,464,113 in grant funds from
the U. S. Department of Housing and Urban Development. These funds will be appropriated into
the NSP 3 account (no. 14218762-various).
APPROVED AS TO FUNDS AND ACCOUNTS:
Nancy T. dwards Francisco Gutierrez
Interim E cutive Director Executive Director
Community Development Agency Finance & Management Services Agency
NTE/SLB/MA/mlr
20A-3
NSP (3)
February 22, 2011
Page 4
Exhibits: 1. Map
2. Substantial Amendment
3. Program Guidelines
4. Request For Proposals
20A-4
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0 NSP3 Target Area
Avg. Max Score = 18.96 EXHIBIT 1
0 200 400 600
Feet
20A-5
20A-6
Neighborhood
Stabilization Progra-m 3
Substantial amendment
DRAFT'
Prepared by
City of Santa Ana
Community Development Agency
EXHIBIT 2
20A-7
1. NSP3 Grantee Information
NSP3 Program Administrator Contact Information
Name (Last, First) Landry-Bayle, Shelly
Email Address slandry-bayle@santa-ana.org
Phone Number (714)667-2250
Mailing Address 20 Civic Center Plaza, M-37
Santa Ana, CA 92702
2. Areas of Greatest Need
Map Submission
The map generated at the HUD NSP3 Mapping
Attachment 1.
ng Action'F%jfLWebsite is included as
Data Sources Used to Determine Areas of Greateffleed'
?s
Describe the data sources used to det, Jog the areas o need. k
Response: -
Foreclosure and Notice of Default data o peg
American Company that specialize in real e
also analyzed data of all p -"° offered b
data enabled the City tggll - 1 as w
highest percentage o es financ ° y subpr
significant rise in the rat =1tomefo? osures.
Mapping Tool website to d ine ,:•aLof
rst Am' .CoreLogic, Inc., a subsidiary of First
motion an ysis. Additionally, the City has
rnun' Ilization Trust (NCST). This
' tage of home foreclosures, the
age reia " loans, and most likely to face a
used this data in conjunction with HUD's NS133
Determid% n -of Areas of ' :;_ atesi?d and Applicable Tiers
Describe how= reas of grea eed established and whether a tiered approach is being
, 00-l
utilized to determlO
the distrib is of fundine.
Response:
The areas of greatest-' , were- blished by means of a careful evaluation of local housing
conditions as shown by a rces identified above, and an analysis of the relative needs scores
of neighborhoods known by?f'to be experiencing significant numbers of foreclosures. These needs
scores were found on HUD's NSP3 Mapping Tool website. Additionally, staff gave careful consideration
to its ability to significantly Impact the foreclosure problem in different neighborhoods with the limited
funding the City will receive through this third round of NSP funding. Staff prioritized rental housing by
first seeking to Identify foreclosure impacted rental communities that had appropriate needs scores, as
well as acgisition opportunites that could be accessed using the limited NSP3 funds the City anticipates
receiving. The City has been unable to identify such neighborhoods, and consequently will be focusing
its efforts on owner occupied single family homes. In accordance with recent communications from
HUD, the City is not using a tiered approach. it has established a single Area of Greatest Need.
NSP3 Substantial Amendment
City of Santa Ana
Page 1
20A-8
3. Definitions and Descriptions
Definitions
Term Definition
Blighted Structure In accordance with Section 33031 of the California Redevelopment Law, the
City of Santa Ana will define blighted structures in the following way:
"Buildings in which it is unsafe or unhealthy for persons to live or work.
These conditions may be caused by serious building code violations, serious
dilapidation and deterioration caused by long-term neglect, construction
that is vulnerable to serious damage fro geismic or geologic hazards, and
faulty or inadequate water or, sewer tt
Affordable Rents The City of Santa Ana will define. " ble rents in a manner consistent
with the requirements of the f. Program for very low income
rents: i
"A rent that d
t
oes no
ex Percent of usted monthly income of a
?
family whose annual i • ' equals 50 percent. : e median income for the
area as determined b = . S. Department of Ho and Urban
Development, with adjus is for h . ehold size a tubers of
bedrooms i1the unit." -
r.,
y
Descriptions ,_ ry VEN,
Term Definition --iQ'
Long-Term Affordability ) er to ensu ntinue abili . .. a maximum extent
and for ' long erm he for-sale properties it
J1 assists NSP3 mo ity inrrf?`= rd affordability covenants that
ill run f period o ars. In addi Aon, the City will obtain promissory
s an ' old trust d _ to secure the NSP3 funds it invests In these for
s ` se do' nts will have a 45 year term
and will re
uire
,
q
pay full i er s to comply with the terms of the covenants.
Housin .
abilitation
%
V
Stand ity o ; .a Ana has modified its existing NSP rehabilitation standards
j: so . Q meets ? ?. ew requirements established for NSP3. These newly
revis tandar u e attached to this Substantial Amendment as
`
Attach'.
pt 2.
4. Low-Incom I'M
Low-Income Set-Aside ArRbWt
Identify the estimated amount of funds appropriated or otherwise made available under the NSP3 to
be used to provide housing for individuals or families whose incomes do not exceed 50 percent of
area median income.
Response:
Total low-income set-aside percentage (must be no less than 25 percent): 25.009,06
Total funds set aside for low-income individuals = $366,028.25
Meeting Low-income Target
NSP3 Substantial Amendment
City of Santa Ana
Page 2
20A-9
Provide a summary that describes the manner in which the low-income targeting goals will be met.
Response:
Participation in the City's programs will be restricted to households who meet NSP income
requirements. At least 25 percent of the City's allocation will be used to purchase, rehab and sell
homes to households with incomes at or below 50 percent of the area median. The City will carefully
examine the incomes of all households selected to participate in it NSP3 activities, including those
selected to meet the 50 percent requirement. All households, including those at 50 percent of area
median, will be required to enter into 45 year covenants.
5. Acquisition and Relocation
Demolition or Conversion of LMI Units
- er ui
Does the grantee intend to demolish or convert any nd moderates "• me
dwelling units (i.e., 5 80% of area median income No
If yes, fill in the table below. ?.?
Question RY. +c £3 ??
.' 1. ' y y
l mber of Units
The number of low- and moderate-in c elling units'-4 ' b% of area
median income-reasonably expected t • i fished or c_ ed as a direct
result of NSP-assisted activities. , . z. N/A
The number of NSP affordable housing unit . :: de a? to low' •:: • erate-,
and middle-income housA , 5120 1 rea m, me sonably
expected to be produ act d incom el ' rbvi # n DRGR, by
'
each NSP activity prow • x such ho g (incl udi
_ roposed tim chedule for
commencement and comp n).
, N/A
The number q# ling uni sor° . '
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's
' ed to made available for
ouse
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gi gent • area median income. N/A
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6. _liccomma: s % k
Citizen Part""' ion Plan
R
Briefly describe g, a grantee .wed its citizen participation plan regarding this proposed
substantial amendm qtr abbre d Dian.
Response:
As provided for in HUD's a A d citizen participation requirements for NSP3 funding, the City's
Substantial Amendment was de available for public review during a fifteen day public review period.
Availability of the document was made known by means of notification published on the City's website,
as well as notices published In a newspaper of general circulation and two newspapers serving Spanish
and Vietnamese speaking populations: The document itself was made available on the City's website on
February 1, 2011, and at the other locations provided for in the City's Citizen Participation Plan. A copy
of the public notice as published in the general circulation newspaper is attached as Attachment 3. It
was also published In a newspaper serving the Spanish speaking community, and in one serving the
Vietnamese community. Notices in all languages were published on January 31, 2011. Following a
public hearing conducted by the City's Redevelopment and Housing Commission on February 15, 2011
and completion of the public review period, the amendment was approved by City Council on February
NSP3 Substantial Amendment
City of Santa Ana
Page 3
20A-10
22, 2011 for submission to HUD.
As approved by City Council and submitted to HUD, the Amendment is available for viewing by the
public and other interested parties on the City's website at http://www.santa-ana.org/cda/nsp,asp.
Summary of Public Comments Received.
The summary of public comments received is included as Attachment 4.
7. NSP Information by Activity
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NSP3 Substantial Amendment
City of Santa Ana
Page 4
20A-11
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?a _ ` r Yi?v?i F The Cit 11 carry out this activity through an intermediary who will be
equire .' leverage the NSP3 funds with other public and/or private funds so
i(; s to izethe number of units produced.
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ty may enter into lease-purchase agreements with the
selected households. These agreements will be structured so as to enable
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will do this only when a sale has not been finalized within six months of the
date
.
Re?`_i?kilE?i1 Area identified in the attached Exhibit 1
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r?_ :.i
....{ ....::.
NSP3 $951,674.00
q
sy?S(5?533geHrtRiE43 i''?ate
NSP3 Substantial Amendment
City of Santa Ana
Page 5
20A-12
:I,h nmi,• ' '? rE= Acquisition, rehabilitation and resale of 6 housing units to households whose
=annual incomes do not exceed 120 percent of the area median income as
established b HUD.
iPi~jeeedi4N11? 7/1/2011
iRrt?i??# la' ?DM110, 7/1/14
City Of Santa Ana
Santa Ana, CA
Sheri Landry-Gayle
?.
fc Center Plaza, M-37
fa Ana, CA 92702
r•' 4} 667-2287
SLa Gayle@Santa-Ana.(
..,!".,":u:a:,e. - _- `r'!3d=i!G? - - - - =-p n: _ ....ye:..i.Nt.,:,".te•?:p`. •i ?E'd°.- : ....:_ ?;n_:., di o7C[!!+r,.-. ;rmoyz!.,_.7..:;e_?GG7r':!ei[
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!3t, !:m"i0' ...?:.. n-Fi' ,16i3 ''i'i °?••3ia irt:?rne •.in. KiiC'°`e'•°3°i?+ G.niG,i?e" ,-F:3G-,:'J::.'.'ee;..j,.?:
:,q?
. ?_[t6lF?e. L.
:t•?;ili _nivl,:l?kl:
1' t_?:=Y Administration and Plan
n {fists
Select all tha a I Y -
Eligibl ffift.,& Financing ,tjms
TO_: N Eligible g isition an habilitation
Al ;_
Eligible U: Lam" eking
Eligible Use ' :pemo a :.
ble Use E. ' devela,a
y - ° " ?h?. dmInill nand P) ?• -sts 24 0 0.205 and 206
AN M,
lii:airi.w'r?x - ct O
al P
ai €' ?e,F?pTh de fuFttff.? needed by the City to operate its NSP3
nelr
i3 ==0?°6' i rog will b ' d o -).(the City of Santa Ana.
..•
,-. . n.r.,:e::n:_.:::: r-?-..?war,! - re--; ? -:aa:;?- -:----ra=.=!;=:aFS::!.-Gri,:;, •- - - - Gan..:.
rcw•"" _:?;,??!:?t RF,_??w,:,,.?kl,t:: - a`f' - -- ?.! 7". `?a?:her', - y' ?`i 14i3k' :?3; =nF`? -- t"?:"e::e? ?;?:
=it' r, ??::3.: rG?:<: _?:!_:?,?.:a,3?; u36 d?? ;IE fir' ',;?""",?I"?:: "?'n)Il` _f:l:,? ::ii,:,.ns.. a.?r.`•.?!=?;-`_?_a:,_,::s:,-s`:ft?s
;nub
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ud aj
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' (Othe nding sake) $
tl;iji(iieBi,•` n;????Fi O''{{they {qq,gg ing source) $
$146,410.00
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ice` 014
•:: n
Eu 1°::," ;n31333'G ! ?? ?`' d.83?d`-;sw.?",?=i!: a CitY Of Santa Ana
irc `•:? : `
2MIw°= Santa Ana CA
Shell Land Ba le
z;:3 IN
;. .?!_a Mail; C7fnn
n !aWig, ?!i. :?. N,.S_:., tnaa.,!r ^;?n;€°a Y Landry- Y
._,:...... _ a._ ?: ?2ea,•.g-`tee `?- . ?: .E?,°,
ii
::Fir: aaa oriP t°-;. •, ,, ...rw . 20 Civic Center Plaza, M-37
'kg°°"?,.xmr:.
F!? - '??m'i. Santa Ana, CA 92702
?'??1' ??;?=??=°Fsnn•: ?:n:.?°v?,F:>fnli..:,;?.,??.,r????•.?,pas;??:"°2???'? 3,??
Yt° (714) 667-2250
)ai V! va,:.;;:?i SLandryBa Ie@Santa-Ana.Org
NSP3 Substantial Amendment Page 6
Crty of Santa Ana.
20A-13
List of Attachments
Attachment 1: NSP 3 Target Geography Report and Map
Attachment 2: NSP Rehabilitation Standards
Attachment 3: Copy of Public Notice
Attachment 4: Summary of Public Comments
NSP3 Substantial Amendment
City of Santa Ana
Page 7
20A-14
ATTACHMENT 1
Naigtdhorhood 10: 4598M
MP3 Phamhing Data
grantee M, 0633420E
Grantee State: CA
t3nufte Name: SANTA.ANA
Grantee Addreaw 20 Clvio Center Phis, M-37 Santa Ana CA 92702
Grantee Emit magu ilatassala-arm.arg
Neighborhood Name: NSP 3 Final TmadArea
nate-.2$11.01-27 DnDo_orf
N P3 Score
The nelghbadhoads identified by the NSP3 grantee 8s being ftre areas of greatest need musthave an
indivi iduat or average combined index score far the grantees Identified targetyeWraphy that is mt leas than
ftia tesser or 17 or Me twe nfieth parcmae most needy scare in an kxlivtdual sbsto. Far example, Jr a atshft
tvneabe h percentile moat needy census tract is 18, the rat irenTwtvAl be a mi?bmran need of 17. ff,
however, a sites twentieth percentile nwatneedya msus tract is 15, the rerpgrame t YM be a• minimuun
need or 15- ff mehrethean one netghbarhood is Identified in the AcOon Plan, HUED will average the
Neighborhood Scores, weWftg iha scams by the estimated number of 1musing unts ui each Idcnff& d
rraigtrborhood.
t othood NSP3 Scam 18.96
Slate Minimum Threshold NSP3 Score: 17
Total Housing Unh In Nothboriroad: 731
Percent Persona Lessthan 120%.AMI: 8+4.79
Pemmnt Persons less than 80% AMh 62.02
Nerghbarttoad AthBhullys (FstImet s)
lfarbncy Estimate
LISPS data onuses not racehvieg mall In the last 90 days or'NoSter can be a useful measure of
wheftworswt a target washes a serious vacancy problem, Farvilm neigh arhoods, HUD has found #W
r hoods with a very trigh number vacant addremea ngafivetothe total addresses in an aera tD be a
very good kWkalor of a currant far potentially eadous blight:problem.
The USPS'NoSt W kK kaiorcan mean di feretrtthiega to rural areas, it is an Indicator of vacancy-However,
It can all so be an address flat has been Issued but not ever used, it can 6ndk*ft urdfs under duvelopment
and it can be a very distressed property (most ofthe still load damaged properties in tidal Orleans are
WSW- When using this variable, users need to 2mderstan d the tMet area fdenlilied:
In addr'ksm, the housing unit enurds HUD gets fmm fie US Census lndicaled abum are usually close to the
residentiel address rounds fnhm the USPS below. Howww, irthe Census wW USPS uhorarfs are substanfFalty
dKerent for your identified target area, users arc aWsed to use fie information below w3h caURML For
ale ifthere are many NoSfafs In an area for units nwff-bull the LISPS residerubat aftess count may
be larger than the Census menberr.if fie area is a r3uai area largely served by PO boxes it may have fewer
addresses than housing u nlta.
USPS Residemfial Addresses in Neighborhood: 712
RasudenGal Addressee Vacant 90 orrmore days (LISPS, March 2WO): 14
Residential Addresses NoStet{USPS, March 2010r 0
la
NSP3 Substantial Amendment
City of Santa Ana
Page 8
20A-15
NSP 3 Target Geography
NSP3 Substantial Amendment
City of Santa Ana
zou ?aD i
Page 9
20A-16
NSP3 Target Area
Avg. Max Score =18.96
ATTACHMENT 2
NSP REHABILITATION STANDARDS
PREFACE
The primary purpose of these standards is to address the quality of workmanship and materials
expected, and to achieve consistency throughout the NSP3 program activities administered by
the City of Santa Ana. These standards are not intended to reduce or exclude the requirements
of any federal, state or local codes, standards, ordinances and regulations that apply to
residential rehabilitation.
WORKMANSHIP
• All work shall be performed in a profe 'workmanlike manner.
or exceed the standards
• The quality and durability of the., o ?1Z shall NMI
established by the constructionY and vafides. MATERIALS & EQUIPMENT a
• All materials and equipment sha
with the manufact require
ordinances and regu ?If a
the more stringent shat e `
• Unless otherwise soecifie ' II m''
fq`fa?[ and be Ins?d in accordance
applicable c?es, standards,
urs between the requirements,
shall be medium grade.
• Econom.. aterials a quip . -_ ..una??&able.
• All s an _ uipment y ew, ellent condition, and delivered
to the them facture : I?nal packaging.
• The descrt n of rials an ipment found in this document establish a
um st
ENER FICIENCY, A CO ION' CYCLED MATERIALS
To thea-: ibie an ` ctica ;
s ,.poss dard measures related to energy conservation, energy
efficiency, "
? conservatiol? ? d the f recycled materials have been incorporated herein.
Gut rehabilitafiror new cduction of residential buildings up to three stories will be
designed to meet . tandard Energy Star Qualified New Homes. Gut rehabilitation or new
construction of midigh r' ulti-family housing must be designed to meet the American
Society of heating, Rel and Air-Conditioning Engineers (ASHRAE) Standard 90.1-2004,
Appendix G plus 20 perce
LEAD-BASED PAINT
All housing built before 1978 must comply with 24 CFR Part 35 Subpart J and HUD's Lead Safe
Housing Rule regarding the evaluation and control of lead-based paint hazards. HUD's
guidelines are available at httr)://www.hud.eoy/offices/lead/lbg/hudguidelines /index.cfm.
BUILDING STANDARDS
NSP3 Substantial Amendment Page to
City of Santa Ana
20A-17
Minimum Standard • The site shall be hazard-free and sanitary.
• The site and all paving shall drain away from the dwelling and
accessory buildings.
• Paving and walkways shall be hazard-free and intact.
• Landscaping and irrigation systems shall be hazard-free and In
relatively good condition. All. dead vegetation shall be removed.
• Fencing, walls and gates hazard-free and intact. All gates
T
shall be In good working order.
,
• The site shall be free fro 0, debris and hazardous
materials. _
• Accessory buildings band sound.
Paving • All new pavin . `R. iwalkways 9 kbe constructed with
concrete (2,000 28 days).
• Driveways s, :. be reinforced with esh. Sawn
expansion-contra ..n* ints ) be place8 feet in both
direc i. s. ,?.
• A and wal all be finished wit light broom
textur
• All w yVai7 ; '. L?•be at le feet wide. Sawn expansion-
- pntractio 'nts s ill lace `.` ?y 4 feet.
Landscaping & - " o the ex '„ t p :A e 4p actidal all new landscaping shall
a
Irrigation be ught res
• en a lawn eing replaced, the new lawn area shall be
id in t duction of water consumption.
s ew it i . 7' n cod ollers shall be weather or sensor based
= r :. a Water'`
qualified.
irrigation systems shall be designed to conserve
ter:
Fences, Walls es II new wood fences shall be made from good quality
` - raals. They shall be properly supported with 4X4 pressure
ted posts (8 feet O.C.) and 2X4 rails (top and bottom). The
i
r ts shall be embedded in a concrete footing at least 18" deep.
• All new block walls shall be constructed with 6X8X16 concrete
block. They shall be properly supported by a continuous footing
and reinforced with steel bar.
Minimum Standard • Safe and structurally sound. .
Rehabilitation • Porches, steps, balconies and railing that do not meet the
minimum standard shall be replaced. Practical, cost effective
NSP3 Substantial Amendment
city of Santa Ana
page 11 .
20A-18
repairs are acceptable as long as compliance with the minimum
standard will be achieved.
Concrete • 2,000 PSI (minimum).
Finishes • Zero or low VOC primers, paint and coatings.
Minimum Standard • Safe and structurally sound.
Rehabilitation • Foundations that do not mee, the minimum standard shall be
replaced. Practical, cost effe • pairs are acceptable as long
as compliance with the mi - standard will be achieved.
• If the project involy bab, raised foundations shall be
completely insulate__ t
Concrete • 2,000 PSI (min ' .m).
Minimum Standard
Rehabilitation
• t
be repIq
long as cc
n Seal a
NW 9, the
it meet the minimum standard shall
ost' active repairs are acceptable as
the mj r,..gm standard will be achieved.
all exterior walls shall be
Minimud_ - afe, so z I er-tight and in good working order.
or more y rs of practical utility.
Rehabilit " Y a Ext doors that do not meet the minimum standard shall
-Ilk
}replace Practical, cost effective repairs are acceptable as
Isg as compliance with the minimum standard will be achieved.
New Doors PA Energy Star qualified, zero or low VOC finish.
New Hardware F Reputable manufacturer, lifetime finish.
NSP3 Substantial Amendment Page 12
City of Santa Ana
structurally'!
i Walls that
20A-19
Minimum Standard • Safe, sound, weather-tight and in good working-order.
• Five or more years of practical utility.
Rehabilitation • Windows that do not meet the minimum standard shall be
replaced. Practical, cost effective repairs are acceptable as long
as compliance with the minimum standard will be achieved.
New Windows • Reputable manufacturer.
EPA Energy Star qualified.
Minimum Standard • Homes built before. 9 , "comply with 24 CFR Part 35
Subpart J and HUD' w ?iafe Rule regarding the
'
evaluation and cfaf lead-base .
nt hazards.
• All exterior _ . f shall be intact an osion free.
• Five or more°' s of practical utility.,
Rehabilitation • All surfaces to b`int • I be prepare :operly. All
" `;
'
loos
ial and pe .. t shall be removeW
• Al _ cracks sh filled and finished so that they
blend In. he finding a 1
• All Stu, Sur fa _e pairs hall receive a complete and
n covera' Qf stu
a -n
: -sr `II woods be ti shall receive a complete and
ev •- verage oJ` t exterior paint.
'
=" ? orkma x
.. will not be tolerated.
New Pai 44 ---. epos ?nuf?urer.
-=
- =; . hest quart Ki vailable.
• r low VOC paint, caulking and fillers.
Minimum Standar .. • afe and structurally sound.
A11 plaster, drywall and paneling shall be safe and intact.
Rehabilitation Walls, floors and ceilings that do not meet the minimum
standard shall be replaced. Practical, cost effective repairs are
acceptable as long as compliance with the minimum standard will
be achieved.
• If the project involves a gut rehab, the attic, walls and floor
on raised foundations shall be insulated.
Minimum Standard I • Safe, sound and
NSP3 Substantial Amendment Page 13
City of Santa Ana
20A-20
• Five or more years of practical utility.
Rehabilitation . Floor coverings that do not meet the minimum standard shall
be replaced. Practical, cost effective repairs are acceptable as
long as compliance with the minimum standard will be achieved.
Replacement Floor • Carpet & Pad (Reputable manufacturer, recycled materials).
Coverings • Resilient Flooring (Reputable manufacturer, 10 year wear
warranty).
• Ceramic Tile (Reputable manufacturer)
Minimum Standard + Safe, sound and inrg order.
• Five or more a ra o1 ractic , ° lity.
Rehabilitation • Interior door :_a not meet %e-
no mum standard shall
be replacedRal, cost effectivare acceptable as
long as complian ith the minimum start t41 will be achieved.
x4
J.- Replacement Doors & • Doors (Reputab ' er, masonite, _ fed panel).
Hardware • Hjl%pre (ReputaGfacturer, lifetimegish).
Minimum Standard: i• Homes ')t befo mus - ply with 24 CFR Part 35
J an D' sous g Rule regarding the
eva tion an ,? I of lea ;used paint hazards.
• ,interior p v shall be intact, corrosion-free and sanitary.
~ `• -_ ? , amore y ' of practical utility.
Rehabiliz = Il su einted shall be prepared properly. All
1-
- ' . loa %A1f,.Nps terial-a r • eling paint shall be removed.
and cracks shall be filled and finished so that they
"
. nd infi? surrounding area.
x 11 surfaces to be painted shall receive a complete and even
a cjrage of flat paint (semi-gloss in kitchens, bathrooms and
. dry rooms).
Poor workmanship will not be tolerated.
New Paint • Reputable manufacturer.
• Highest quality available.
• Zero or low VOC paint, caulking and fillers.
Minimum Standard • Cabinets shall be safe, sound, sanitary and in good working
order.
• Countertops shall be safe, sound, sanitary and watertight.
NSP3 Substantial Amendment Page 14
City of Santa Ana
20A-21
• Five or more years of practical utility.
Rehabilitation • Cabinets and countertops that do not meet the minimum
standard shall be replaced. Practical, cost effective repairs are
acceptable as long as compliance with the minimum standard will
be achieved.
Replacement Cabinets + Reputable manufacturer.
• Solid hardwood face-frames, door-frames and drawer fronts.
• Metal and nylon drawer guides.
• Low or zero VOC adhesives finishes.
Replacement • Reputable manufacturer-
Countertops • 4" ceramic tile, 6" b bull-nose edge.
W?
Minimum Standard • Safe, soundd itary and in good WM = n order.
• Faucets shalt minimums be equip - ith a low-flow
aerator. h'
• Fi .more years cal utility.
Rehabilitation + Kit- ,' es, equip '. ;fit and appliances that do not meet
`
the mint s
d shall placed. Practical, cost effective
repairs arm. ' :septa long a ,e liance with the minimum
clard wit ach.
Replacement Sinks 10
+ utable ' cturer.
• -" guage (mr . " um) stainless steel.
Replacem4g.g, is r-Sen ualified.
' eput ` ., nu -urer.
- - + - ss constr Vin, metal housing.
Replacern Disposals • R? 'able manufacturer.
%z HP or (minimum).
tainless steel swivel lugs.
Replacement w%r PA Energy Star qualified.
Dishwashers
Reputable manufacturer.
Replacement Range
_ EPA Energy Star qualified.
Hoods • Reputable manufacturer.
Replacement Ranges • Reputable manufacturer.
• Pilot-free ignition.
• Four sealed burners.
+ Self-cleaning oven with timer.
Replacement Cook Tops • Reputable manufacturer.
• Pilot-free ignition.
• Four sealed burners.
NSP3 Substantial Amendment
City of Santa Ana
Page 15
20A-22
Wall Ovens • Reputable manufacturer.
• Pilot-free ignition.
• Self-cleaning oven with timer.
Minimum Standard • Safe, sound, sanitary and in good working order.
• Faucets shall (at a minimum) be equipped with a low-flow
aerator.
• Showerheads shall (at a min m) be equipped with low-flow
aerator.
• Porcelain sinks shall } om any cracks or chips.
• Steel sinks shall fro rust or corrosion.
• Five or more ye f practical
Rehabilitation • Bathroom Vii- d .:es and equipment t: do not meet the
?•t L L
minimum Stan shall be replaced. Pr ?. I, cost effective
'
the minimum
repairs are accept2? as Ion _ ompliancdc
will be achi
Stan
• T z t require han 1.6 GPF shall be replaced
p
regard
::ir_conditio
Replacement Sinks • Reputi magi: , . hrer.
Cas
ohite e. , ish.
Replacement Faucetv .. A Wate tlali 1
utable acturer.
• onstrucmetal housing.
Replace
; ;
?F
.. ep A Curer.
.a.
,
j
.?, .
„qualified (1.28 GPF)
Replace :- - Tubs ?. ble manufacturer.
r Cas :•.?O, body, white enamel finish, slip resistant bottom.
EPA W 'er-Sense qualified plumbing fixtures.
Replacement eputable manufacturer.
Combination ?w Cast iron body, white enamel finish, slip resistant bottom.
Tub-Showers 4" ceramic tile surround.
• Anodized aluminum doors with tempered glass.
• EPA Water-Sense qualified plumbing fixtures.
Replacement Showers • Reputable manufacturer.
• 4" ceramic tile.
• Anodized aluminum door with tempered glass.
• EPA Water-Sense qualified plumbing fixtures.
Replacement • Reputable manufacturer.
Medicine Cabinets • Steel body, beveled mirror door.
NSP3 Sybstantial Amendment
City of Santa Ana
Page 16
20A-23
Towel Bars & Toilet • Reputable manufacturer.
Paper Holders • Metal construction, polished chrome finish.
Minimum Standard • Safe, sound and leak-free.
Rehabilitation • Piping (supply, waste and vent) that does not meet the
minimum standard shall be replaced. Practical, cost effective
repairs are acceptable as long as compliance with the minimum
standard will be achieved.
Replacement • Copper, type 'T'. • N
Water Supply Piping
Replacement . • Schedule 40 ABS'°
Waste & Vent Piping
;011W "IMS,
Minimum Standard • Safe, sound anail :." od ' ng order.
• F" _. ore years - ical utility.
r
Rehabilitation • Wa `
rs that do" eet the minimum standard shall
be repla Pr-3, . = r cost a Ilye repairs are acceptable as
'
ong as corx
ance mi A standard will be achieved.
Replacement _ eputab ' n r
Water Heaters (Tan Energy= ' Ualified.
• ;.gallon ins d tank.
Replaceme man turer.
Water L
k PA Ene" qualified.
(Tan
Minimum Stan afe, sound and in good working order.
2.00-ampere minimum service.
Rehabilitation . . Electrical service panels, breakers and wiring that do not
NV NIS
the minimum standard shall be replaced. Practical, cost
ft
effective repairs are acceptable as long as compliance with the
minimum standard will be achieved.
• Knob and tube wiring shall be replaced regardless of its
condition.
• Overhead wiring from a dwelling to a detached garage or
accessory building shall be installed underground regardless of its
condition.
Replacement • Reputable manufacturer.
NSP3 Substantial Amendment
City of Santa Ana
Page 17
20A-24
Service • 100-ampere (minimum).
Replacement
Wiring • Romex (NM cable).
Minimum Standard • Safe, sound and in good working order.
• Light fixtures shall (at a minimum) be equipped with CFL
bulbs.
• Exterior lighting fixture
u s. r security shall be equipped
with a motion sensor.
:,
Rehabilitation • Electrical switches, Q . lighting fixtures that do not
6?
meet the minimums 60cl sh' replaced. Practical, cost
effective repairseptable as s compliance with the'
minimum Stan ill be achieved.
r..
• All new ligh ,
es shall be U.L. app and Energy Star
Ne
qualified.
f
• 0 is located wt*t of a source
er shall be
. Y
grou rotected
• Extdgs and o '." shall be weatherproof.
Replacement • U.L. a
Switches & Outlets ;
Replacement ?A putabi ure
Lighting Fixtures . ' , approve •'R ' "d EPA Energy Star qualified.
HVAC ?-,
Minimu fe, ; .a d r : food working order.
ght or m ors of practical utility.
Rehabil' ti • ;that does not meet the minimum standard shall be
- iacAmpctica1, cost effective repairs are acceptable as long
Alt
,51 WI ompli
e with the minimum standard will be achieved.
rlh
N-
•5 une=up all HVAC equipment (as a minimum).
?
.,.-
eal all ducts (as a minimum).
is .
All new HVAC equipment shall be sized properly.
Furnaces . Reputable manufacturer.
• EPA Energy Star qualified.
Central Air Conditioners • Reputable manufacturer.
• EPA Energy Star qualified.
Thermostats Reputable manufacturer.
• EPA Energy Star qualified.
• Programmable.
NSP3 Substantial Amendment;
City of Santa Ana
Page 18
20A-25
Minimum Standard a Additions and alterations that were constructed without a
building permit and are clearly substandard shall be removed.
• Additions and alterations that were constructed without a
building permit, but appear to be compliant, shall be inspected
by the City's Building Official to determine if a building permit
can be issued and they can be saved.
NSP3 Substantial Amendment
City of Santa Ana
Page 19
20A-26
ATTACHMENT 3
NOTICE OF PROPOSED ACTION TO BETAKEN BY THE CITY COUNCIL OF THE CITY OF SANTA ANA
RESPECTING A PROPOSED SUBSTANTIAL AMENDMENT TO THE CITY OF SANTA ANA 2010-2011
CONSOLIDATED PLAN ANNUAL UPDATE, AND SUBMISSION TO THE U.S. DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT OF AN APPLICATION FOR $1,464,113 IN NEIGHBORHOOD STABILIZATION
PROGRAM 3 GRANT FUNDS.
NOTICE IS HEREBY GIVEN that the Community Redevelopment and sing Commission of the City of
Santa Ana will hold a public hearing on February 15, 2011 at 6:0 .. at the City Council Chambers, 22
Civic Center Plaza, Santa Ana, California 92701 pursuant to th rssion of the City's proposed action
approving a substantial amendment to the City's 2010-201 ated Plan Annual Update (Annual
Update). .44 '
The City Council of the City of Santa Ana will give 21
City Council Chambers, 22 Civic Center Plaza, Santa
substantial amendment to the City's 2 -2011 Cc
City Council will also take action on a p acti
Department of Housing and Urban Deve ._
eration on February 2'23;11 at 6:00 p.m. at the
927i_ a proposed`isaapproving a
i nnual Update ( 'pal-Update). The
uthrs` submittal of an application to the U.S.
for $1 .13 In federal Neighborhood
Stabilization Program 3 (NSP 3) grant funcffl_9 _
HUD has allocated th unt of $ _ 113 in ':ds to tWgV- of Santa Ana. To receive these
funds the City must ado ubstant mendme its current Consolidated 5-Year Plan Annual
Update. This Plan governs` ity's. ' t and use'. f • ederal formula grant monies. The City must also
submit as. - 4 gra ' D. T documents must be received by HUD no later
than Ma.theu used sub an?dment the City will allocate no more than 10
percen, =r s funds, or 1.3 l'owable a rri€?rlstrative expenses. A minimum of 25 percent of
its funds,. • .. 66,028.25 wi ' :.-sed a purchase and rehabilitation of abandoned or foreclosed
homes or re , tial propertle wills ndividuals or families whose incomes do not exceed 50
percent of are' ,e. !an income. substa dal amendment provides that the City will allocate its
program funds to"rograms tlneet NSP 3 requirements:
• Acquisition, RehabiCifflyFn", and Resale of Foreclosed Single Family Homes for Low-Income
Households. Fundingmount: $366,028.25
• Acquisition, Rehabilitation, and Resale of Foreclosed Single Family Homes for Low-, Moderate-,
and Middle-Income Households. Funding Amount: $951,673.45
The draft substantial amendment is available for public review on the City's website at
http://www.santa-ana.org/cda/default.asi) Copies are also available for public review at the following
locations Monday Through Friday during normal business hours: Housing Department, 20 Civic Center
Plaza, 3rd Floor; Community Development Agency, 20 Civic Center Plaza, 6u' Floor, Office of the Clerk of
the Council 20 Civic Center Plaza, Room 809; and the Main Public Library, 26 Civic Center Plaza, Santa
NSP3 Substantial Amendment
City of Santa Ana
Page 20
20A-27
Ana, California. Written comments on the plan may be submitted to the Housing Division on or before
February 15, 2011.
PUBLISHED JANUARY 31, 2011 IN THE FOLLOWING NEWSPAPERS:
ORANGE COUNTY REPORTER
- LA OPINION
- NGUOI VIET
NSP3 Substantial Amendment
City of Santa Ana
Page 21
20A-28
ATTACHMENT 4
SUMMARY OF PUBLIC COMMENTS
TO BE ADDED AFTER PUBLIC HEARING ON FEBRUARY 15, 2011
NSP3 Substantial Amendment
City of Santa Ana
Page 22
20A-29
8. Certifications
Certifications for State and Entitlement Communities
(1) Affirmatively furthering fair housing. The jurisdiction certifies that it will affirmatively further fair
housing, which means that it will conduct an analysis to identify impediments to fair housing choice
within the jurisdiction, take appropriate actions to overcome the effects of any impediments identified
through that analysis, and maintain records reflecting the analysis and actions in this regard.
(2) Anti-displacement and relocation plan. The applicant certifies that it has In effect and is following a
residential anti-displacement and relocation assistance plan. , 0;,,
(3) Anti-lobbying. The jurisdiction must submit a ce
restrictions on lobbying required by 24 CFR part 87,
pa rt.
(4) Authority of jurisdiction. The jurisdiction certifi
applicable, is authorized understate and local lad
legal authority to carry out the programs for which
HUD regulations and other program requirements.
(5) Consistency with plan. The
funds are consistent with its cc
(6) Acquisition and reloc jurisdicti
relocation requirement e Reloca
of 1970, as amended S.C. 460 d implei
provisions are modified a notice.. the NSP
(7)
(8) Citize"""" , icipation. Thel;dictiori
citizen partidr'in plan that s les the
modified by NS iirements
ion. 6gard to compliance with
?€losure forms, if required by that
the consolidate ?or abbreviated plan, as
icable) and that th?sdiction possesses the
aking fun {IV in accor _ with applicable
that the h activities to be undertaken with NSP
• viated p applicable.
ifies t. ..iii cord z ith the acquisition and
As A al Property Acquisition Policies Act
g regulati t 49 CFR part 24, except as those
am published by HUD.
1 section 3 of the Housing and Urban
ng regulations at 24 CFR part 135.
that it is in full compliance and following a detailed
ments of Sections 24 CPR 91.105 or 91.115, as
(9) Followings plan. risdi ertifies it is following a current consolidated plan (or
Comprehensive Housing Strategy) that has been approved by HUD. [Only States and
entitlement jurisdictions use '- certification.l
(10) Use of funds. The jurisdiction certifies that it will comply with the Dodd-Frank Wall Street Reform
and Consumer Protection Act and Title XII of Division A of the American Recovery and Reinvestment Act
of 2009 by spending 50 percent of its grant funds within 2 years, and spending 100 percent within 3
years, of receipt of the grant.
(11) The jurisdiction certifies:
a. that all of the NSP funds made available to it will be used with respect to individuals and families
whose incomes do not exceed 120 percent of area median income; and
NSP3 Substantial Amendment
City of Santa Ana
20A-30
Page 23
b. The jurisdiction will not attempt to recover any capital costs of public improvements assisted
with CDBG funds, including Section 108 loan guaranteed funds, by assessing any amount against
properties owned and occupied by persons of low- and moderate-income, including any fee
charged or assessment made as a condition of obtaining access to such public improvements.
However, If NSP funds are used to pay the proportion of a.fee or assessment attributable to the
capital costs of public improvements (assisted in part with NSP funds) financed from other
revenue sources, an assessment or charge may be made against the property with respect to
the public improvements financed by a source other than CDBG funds. In addition, with respect
to properties owned and occupied by moderate-income (but not low-income) families, an
assessment or charge maybe made against the property wit respect to the public
improvements financed by a source other than NSP funds: 'jurisdiction certifies that it lacks
NSP or CDBG funds to cover the assessment.
(12) Excessive force. The jurisdiction certifies that it has aid%ed a enforcing:
a. A policy prohibiting the use of excessive forc - `.. w enforce.. gentles within its
jurisdiction against any individuals engage f ` nviolent civil rig monstrations; and
b. A policy of enforcing applicable state and aws against physically • ' g entrance to, or
exit from, a facility or location that is the sub
f R sof suc?iolent civil rr demonstrations
within its jurisdiction.
?£
(13) Compliance with anti-discrimination
conducted and administered in conformity
the Fair Housing Act (42 .xf-§* A3619),
s
(14) Compliance with 1
concerning lead-based
this title.
(15)
(16) VicinF?ring. The jurisdil
hiring of emp ii es that reside
that are owned= *perated by
x.
(17) Development o dable
procedures described i S
affordable rental housing t
Signature/Authorized Official
Title
Date
NSP3 Substantial Amendment Page 24
City of Santa Ana
that the NSP grant will be
s Act of 1964 (42 U.S.C. 2000d),
tlur jurisdictiil6rtifies that its activities
the r" rements of part 35, subparts A, B, J, K, and R .of
will comply with applicable laws.
t it will, to the maximum extent feasible, provide for
NSP3 funded projects or contract with small businesses
g in the vicinity of NSP3 projects.
Rff?l housing. The jurisdiction certifies that it will be abide by the
ireviated Plan to create preferences for the development of
rties assisted with NSP3 funds.
20A-31
Appendix: NSP3 Action Plan Contents Checklist
1. NSP3 Grantee Information
Did you include the Program Administrator's name, address, phone,
and email address?
2. Areas of Greatest Need
Does the narrative description describe how funds will gij, : br • . []
emphasis to areas of greatest need? '
Does
the narrative description specifically addres a funds will
_
give priority emphasis to those areas:
`
.
• With the highest percentage of home fore' des? a `=
• With the highest percentage o homes finance, a
Ern
mortgage related loan?; and _..:
? '.?
• Identified by the grantee as like) nificant ?
the rate of home foreclosures?
w :ne, r?
Did you create the areal .4 ma ?+ ?
httwww.huduser 5 iVSP N ... R
Did you include the map 4 ttac '-e t to your' .v n Plan? ?
ONLYAp?g11
lu" eds' II
i V
.
o
?
entitle m.. om
k4VW'
m un the
?.
F3. Defand Desctions
Are the following deficit a ics included in your substantial
amendment?:-
• Blighted structure m context of state or local law, ?
• Affordable rents, ?
• Ensuring long term affordability for all NSP funded housing
projects, ?
• Applicable housing rehabilitation standards for NSP funded
projects ?
20A-32
S.
20A-33
4. Low-Income Targeting
20A-34
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20A-35
20A-36
NEIGHBORHOOD STABILIZATION PROGRAM 3
REQUEST FOR PROPOSAL.S,.;4 „ ,
PROGRAM INTERMEDIARI?s
?'..CQMMUNITY REDEVELOPMENT AGENCY
OF.THE
CITY OF SANTA ANA
N?
20 C 6i Center Plaza
(.Santa Ana CA 92701
EXHIBIT 4
20A-37
REQUEST FOR PROPOSALS
PROGRAM INTERMEDIARIES
TABLE OF CONTENTS
SECTION
14. Timeline and Submission:
ATTACHMENTS
Priority Area
Rehabilitation Standards
HUD Form 6002
HUD Homebuyer Counseling Centers
City Affordability Documents
Additional Insured Endorsement
Sample Development Budget
y rograms
6. City Responsibilities
7. Intermediary Responsibilifi'es-
8. Applicant Characteristics
9. Proposal Content
10. Key Terms of Agreements
11. Criteria for 5electian
12. Proposal Rejection
13. Acceptance of Contract
1. Table of Contents
2. Invitation
3. NSP Background
4. Priority Area
5 NSP r;+ P
Page 1
PAGE
1
2
3
3
3
5
6
7
8
11
12
12
12
12
No.
1
2
3
4
5
6
7
20A-38
1. INVITATION
The City of Santa Ana (City) invites proposals from qualified individuals or firms to implement
the City's programs for the purchase, rehabilitation and resale of foreclosed residential
property. The City has been designated to receive $1,464,113 in NSP3 Federal funds aimed at
stabilizing neighborhoods that have been impacted by foreclosures and abandoned properties.
The City will enter into an Agreement with the individual or firm selected to provide these
services. Respondents must be willing to implement all aspects of both programs.
The City seeks respondents who can demonstrate that they have substantial experience and
competency in the full range of activities required to successfully implement these programs.
To that end, may propose teams of entities that as a group can demonstrate capacity to
perform all services. This entity must also have a denionstrated ability to leverage the City's
NSP3 funds with private funds. Prior experience with NSP funded activities is not a
requirement, but will contribute significantly to.the strength of a proposal.
Acting as the City's intermediary, the selected entity will operate these programs solely within
the City's Priority Area as described below, and will use NSP4,,funds to acquire, rehabilitate and
resell foreclosed single family homes. These may be either attached or detached homes.
Mobile homes will not qualify.
Interested parties are invj$ed,to submit a proposal as outlined inthe Request for Proposal (RFP)
via mail, hand delivery to:
pfcourer
City of Santa Ana
Community Development Agency. .
20 Civic Center Plaza (Third Floor)
Santa Aria, CA 92701'
The highest ranked;applicants will be contacted on March 28, 2011 to schedule a mandatory
interview to be held'on March 31,2011. We highly recommend that all team members attend
We anticipate making a reco;m_ mendation for selection of the successful proposal to the City's
Redevelopment and Housing Commission on April 19, 2011, and to the City Council on May 2,
2011.
You may wish to periodically check the City's website for any notices and answers to questions
that may arise throughout the RFP process.
http://www.ci.santa-ana.ca.us/cda/NeighborhoodStabilizationProgram asp
Page 2
20A-39
2. NSP BACKGROUND
The purpose of NSP is to provide targeted assistance to state and local governments to acquire
and redevelop abandoned or foreclosed homes and residential properties that might otherwise
become sources of blight within their communities. HUD is now funding the third round of the
Program, and has allocated $1,464,113 to the City of Santa Ana. HUD's Notice announcing the
NSP3 formula allocations and programmatic requirements can be accessed via the following
link:
http://www.hud.gov/offices/cpd/communitydevelopment/programs/neiphborhoodspg/nsp3 announcement cfm
The City's NSP3 application, also known as its Substantial Amendment, contains information
regarding the City's intended programs and can be found at the following link:
http://www.santa-ana.org/cda/documents/NSP3SubstantialAmendment ForSaleOnly2 1
1_ 1.pdf
3. PRIORITY AREA
NSP regulations mandate that jurisdictloA..give
priority emphasis to areas of greatest need,
including those with the greatest percer,ge offore?closures`homes financed by subprime
mortgages, and homes in default or delin uency. ` The -City has identified the Priority Area
shown in Attachment 1. 5+'
}
The City's Priority Area el ction a product of careful review of the City's own data on
foreclosures and default n ' ces,
as HUD'S,data. It also reflects staff knowledge of
neighborhood co,n d'tions, an " r'' cSkyit h previous NSP rounds in specific
neighborhoods. Fin llyr-)t also r cts HUD's stated preference that recipients maximize the
positive,impact they achieve?with t. limited funds available through NSP3 funds by focusing
their efforts on limited geographic arLIas.
4. NSP CITY PROGRAMS s_
As identified by HUD in its NSP3 regulations, eligible activities include establishment of
financing mechanisms for. purchase and redevelopment of abandoned or foreclosed upon
homes and residential properties. The City has established two such programs, and those are
summarized below:
Acquisition/Rehab/Resale-50 Percent of Area Median
• Program will be used by the City to meet the NSP3 requirement that 25 percent of its
allocation be spent on housing occupied by households with incomes at 50 percent of
area median.
• As of June 26, 2010 the applicable limits as adjusted for household size were as follows:
Page 3
20A-40
Household Size Income Limit Household Size Income Limit
One $32,550 Five $50,200
Two $37,200 Six $53,900
Three $41,850 Seven $57,600
Four $46,450 Eight $61,350
• NSP3 funds will be loaned to an intermediary to help acquire NSP3 eligible homes.
• Using other funds, the intermediary will rehabilitate these homes in accordance with
the City's rehabilitation standards (Attachment 2), market them, and sell them to
income qualified households.
• The maximum sales price will be the lesser of the aggregate cost to acquire, rehabilitate
and sell the property, or its fair market value as established by a City approved
appraiser.
• In consultation with the City, sales prices may. be adjusted to, reflect market conditions
and homebuyer qualifying requirements.
• The City will record an NSP3-funded silentsecond mortgage in the amount necessary to
accomplish the sale.
• Concurrently with the transfer of ownership'to the homebuyer, and in addition to the
trust deed, a regulatory agreement will be recorded to require its repayment should the
property be sold prior to completion of a 45 year period of affordability.
• Depending on need, homebuyer„eligibiWy and the availability of funds, the City may also
provide down payment assistance. loans using,federal HOME Program American Dream
Downpayment Initiative; (ADDI) funds.
• The City requires that homebuyers make downpayments equal to 3 percent of the
purchase price'out of their-or funds. Gift funds cannot be used to meet this
requirement.,
• For households participatingin the-program, the City's required debt ratio is 30/40.
Should experience suggest that the ratio is not working, the City may re-evaluate and
adjust it.
• In some cases the intermediary may be unable to sell the homes at a price that enables
them to. recover eligible development costs (acquisition, rehabilitation, marketing,
developer fee). The City Will reimburse the intermediary for such costs.
• If within six months of marketing a home for sale, the intermediary has been unable to
identify an income qualified homebuyer with adequate cash to make the downpayment
required for a first mortgage, the intermediary will offer the home for sale under the
terms of a Lease to Own Program.
• Lease to Own Program guidelines will be established by the intermediary in consultation
with the City.
• The Lease to Own Program will be operated by the intermediary in consultation with the
City.
• The City has allocated $366,029 of NSP3 funds for this program, and has established a
performance measure of at least one unit acquired, rehabilitated and sold to an income
eligible household. The dollar amount is the minimum that must be allocated to this
program. If necessary to accomplish the goal, additional funds may be transferred from
the other program.
Page 4
20A-41
Acquisition/Rehab/Resale-120 Percent of Area Median
The second of the City's two programs is identical to the first with the three following
exceptions:
Eligibility is restricted to households with incomes at or below 120 percent of the area
median. Effective June 26, 2010, the applicable income limits were as follows:
Household Size Income Level Household Size Income Level
One $78,050 Five $120,400
Two $89,200 Six $129,300
Three $100,350 Seven $138,250
Four $111,500 Eight, $147,1
50
• For homebuyers participating in this program the City's required debt ratio is 35/40.
The downpayment requirement is the same. Should experience suggest that the ratio is
not working, the City may re-evaluate and adjust it.
• The City has allocated the sum of $951,674 for this prpgram, and has established a
performance measure of at.least six units acquired; rehabilitated and sold to income
eligible households. R ' {
The City has chosen to allocate the remaining $146410 of its NSP3 funds to administration and
planning.
T° }
CITY RESPONSIBILITIES.,,
The City will be responsible,fdr the follgwiq
• Supply the intermediary with. an approved list of appraisers to be used for all NSP
activities.
• Process payments on a'reimbursempnt basis in a timely manner consistent with typical
City practices.
• Inspect all properties proposed by the intermediary for purchase prior to acquisition,
through the rehabilitation process, and when ready for sale.
• Approve properties for purchase in a timely manner.
• Prior to purchase, review and approve all work write-ups for costs and scope.
• Assist intermediaries with any contact information for local lending institutions.
• As necessary, use NSP3 funds to provide funds necessary to purchase the homes.
• Provide City loan documents to be recorded on properties.
• Hold monthly meetings with the intermediary, or as often as needed.
• Receive and review Lenders Packet which includes the following: Credit report, City of
Santa Ana loan application, homebuyer class completion certificate, bank statements (3
months), pay stubs (3 months), tax returns (3 years), verification of other income
sources, Estimated Closing Statement, purchase contract.
Page 5
20A-42
• Approve proposed sales to selected homebuyers. The City will review and approve
homebuyers as to their income eligibility, credit worthiness, compliance with the City's
downpayment requirement and debt ratios.
• Obtain all required City signatures on sales-related documents.
• Obtain all HUD required programmatic approvals and clearances.
5. Intermediary Responsibilities
The selected intermediary will be responsible for the following:
• Identify properties eligible for acquisition under the program.
• Negotiate purchase of the property with the current owner, and obtain purchase prices
which are at least 1% below current market value.
• Obtain an appraisal from a City approved appraiser.
• Obtain financing for the purchase, carrying;?osts, rehabilitation, and sale of the
properties.
• Take and hold title to the prop`Qrty.,k
• For each property, and in coordinatiori kth the City, develop a scope of work for any
needed rehabilitation.
• Provide an analysi$ andlevelopment schedule`for each proposed property.
• The City requires that all homes be inspected for termite infestation and damage, and
that corrective action be tak'qn.
• After the City,has appro Ied`the scope of rehabilitation work, obtain bids for the work
from qualified contractors, and submit1he proposed rehabilitation plan and budget to
City for approval. Construct o?o contracts may not be signed and work may not
commence without `City approval of the rehabilitation plan and budget.
• With prior City approval'the intermediary may choose to act as its own general
contractor. In that event?the requirement to prepare and submit the proposed
rehabilitation plan and b r?tget to the City for approval must still be met.
• Intermediaries acting ateir own contractors, and hence not soliciting competitive bids
for construction work `must submit all information the City may require to insure that
the proposed costs are reasonable.
• For construction contracts exceeding $150,000 obtain and maintain evidence that the
selected contractor is in conformance with the bonding requirements established by
HUD at 24 CFR 85.36(h)
¦ Submit a bid guarantee equivalent to 5 percent of the bid amount along
with the bid
Obtain a performance bond for 100 percent of the contract price
Obtain a payment bond for 100 percent of the contract price
Page 6
20A-43
• Obtain final completion certificates, lien releases, certificate of occupancy etc. as
needed to permit transfer of the property to a qualified buyer free of liens and ready for
occupancy.
• Comply with all Federal lead based testing, safe work practices, and clearance
requirements.
• Test all homes for the presence of asbestos, and take appropriate steps to mitigate
asbestos hazards.
• Thoroughly inspect, and test as needed, all homes for the presence of mold, and in
consultation with the City take appropriate steps to mitigate mold hazards.
• Insure that all work is performed in compliance with the City's rehabilitation standards
(Attachment 2).
• Comply, and require selected contractors and subcontractors to comply with Federal
:-l o:.;
local hiring and contracting preference requirements (Section 3). Maintain appropriate
records, complete and submit to the City on a quarterly basis HUD form 6002
(Attachment 3). y
• Submit for payment to City through progress:payment procedures.
• Using a variety of media, publicise the availability of rehabilitated homes'to qualified
homebuyers. Maintain a list of interested buyers for;,homes in the development
process.
• Sell homes to eligible homebuyers'x
• Provide proof that homebuyker has attended;a HUD approved homebuyer counseling
class (8 hours prior to the'g9se of escrow. Attachment 4 contains a list of local
providers.
• Obtain and rovide to it income v erificatio.n within maximum guidelines. This will be
included in he r`6nders?Packet to bes'ubmitted to the City.
• Enter into a sales agreement with an eligible buyer.
• Inform buyer of other homebuyer=financing programs available.
• Close the saleto the eligiIe homebuyer.
• Provide all warranties-to, the homebuyer.
• Record on properties all required affordability documents (Attachment 5)
• Provide City with copies, or upon request originals, of all documents related to the sale
of the homes.
• Create and implement as necessary a lease to own program.
• Maintain, and require contractors and subcontractors to obtain and maintain the City's
required insurance and a City of Santa Ana business license. The City's insurance
requirements are as follows:
Page 7
20A-44
o Liability insurance in an amount of not less than $1 million, with the City named as
an additional insured endorsee. The City's required additional insurance
endorsement is attached to this RFP as Attachment 6.
o Automobile insurance in an amount of not less than $1 million.
o Worker's Compensation Insurance.
• Cooperate with the City in its efforts to comply with all audit requests.
6. Applicant Characteristics
The City seeks respondents who have demonstrated experience and competency in the entire
range of activities required by the City's programs, and preferably are fully conversant with
NSP. To that end, respondents may propose teams of entities that as a group have significant
knowledge of NSP and demonstrated capacity to perform all services.
If the respondent is a team, the City will require "one entity to be the leaq.entity. The lead
entity must:
- hold title to the property b'tvr en acquisition`and sale,
- enter into the agreement V t?ie.City for program, participation,
- perform all rehabilitation wor 'pursuar}t, o City's requirements
- receive and be responsible for all.?unds under the program, and
- be responsibla.for uired compliance and reportin
aR ,
M
The other entities in th e- respond4t team shouldenter into letters of agreement, memoranda
of understanding, or similar..agre gets with the lead entity to provide the needed services for
the program Ifthe other tearp,mer-hbers incur eligible costs that are approved by the City, they
will be reimbursed through the lead entity, per'the terms of their agreement.
Other team members should,demonstrate that, as a group, they provide all experience and
expertise needed to carry out the proposed plan. Specific items to demonstrate these
capacities are outlined in the Proposal Content section below.
7. Proposal Content
Proposals shall follow the format outlined below. The RFP is intended to assess and evaluate
each respondent's capabilities as they apply to the proposed project. All proposals will be
submitted on 8 %x11 size paper with sections tabbed for easy identification. The proposal
requirements are as follows:
i. Cover Letter and Contact Information Sheet: Each proposal shall be accompanied by a
cover letter identifying the respondent(s) and briefly describing the proposal.
All proposals must include a cover letter and contact information for all lead persons
who be responsible for successful completion of the tasks and goals identified in the
proposal. At a minimum the cover letter must include the following:
Page 8
20A-45
a. Identification and description of the lead organization or person. If an
organization, its legal status (nonprofit corporation, for-profit corporation,
limited partnership, etc.) must be described.
b. Identification of all key persons who will be responsible for major components of
the proposed activity. These include, but are not limited to, securing necessary
funding, completion of necessary repairs, marketing and sale to qualified
homebuyers, and as necessary creation and administration of a lease to own
program.
c. Identification of funding sources that may be available or secured to leverage the
NSP funds. t
d. Brief timeline from award of the City contract jo'completion of the programs.
The cover letter must be signed by the person(s) authorized to commit the persons and
organizations named in the letter to implement the programs within the identified
timeline. If the signature serves to commit"the lead agency only, then
acknowledgements from the other partner organizations and/or individuals are to be
attached.
The cover letter shall have a?,.a attachment contact information sheet for all persons
and organizations named in the cover.letter. The contact information shall include the
following:
• Full name, title and organization affiliation
• Mailing address
• Telephone number
• Fax number
• Emai! :address
Proposals that do not inclu both' cover letter and an attached contact information sheet
that meet the minimal requirements will be considered nonresponsive.
ii. Identify Lead and Team Personnel and Experience:
a. Direct experience Working with Neighborhood Stabilization funds.
b. Direct expe??ence iO rking with the National Community Stabilization Trust.
c. Direct experierfce in housing property acquisition: Identify properties acquired
during the past 5 years by type, use, and number of units. Indicate whether they
are currently being operated as affordable housing, or when and how they were
disposed. If the lead entity was not the sole owner of a property, indicate the
ownership structure for such properties and the names and contact information
of the other owner entities. Specify which if any were affordable projects.
d. Direct experience in property rehabilitation: Identify properties rehabilitated
during the past 5 years. Identify the property location, number of units, scope of
rehabilitation (dollar amount), and identify and describe role of lead entity
(owner, contractor, etc.). Also identify the current ownership status of
properties and if applicable, any affordability.
Page 9
20A-46
e. Financial strength to carry out the required activities: Provide audited financial
statements for the past three years, including balance sheet and statement of
income and expense. If audited statements are not available, submit unaudited
statements certified by the executive officer of the lead entity as accurate and
complete.
f. Access to lines of credit or other financial resources: Provide commitment letter(s),
agreements or other documents showing the amount of credit available, terms
of credit, and conditions of the lender if any for this specific activity.
g. Capacity to carry out its responsibilities: Identify team members who will carry out
the program, including brief resumes describing technical expertise and
experience.
h. If applicable, experience working with some or.all of the other team members:
Describe any previous working relations hip' `or experience with other entities
who are part of the team proposed. Attach all letters of agreement, memoranda
of understanding, or similar agreements with the lead-entity to provide the
needed services for the prograrn,;.?
i. Marketing Plan: Submit marketing"plan to be used to sell the units. The
marketing plan must include efforts to market'ta City preferences which include:
city residents and/or homebuyers who.worl in-the city.
j. References: A minimum ofthree (3) compfete-references (name, title, address and
phone number) whow the'City tviay contact to verify services rendered or
currently being provided:, 'Public agency referrals are preferable.
iii. Proposed Budget and Wo rk P an for theaCity 's Two Pro rams
The proposed1budget and, 'ork plan rnyst'.describe or include documentation for the
items below.
a Time line for implementpti,9n
b Proposed number o homes to be acquired, rehabilitated and sold during time
period
c. Schedule of finishes to be used in rehabilitation
d. Budget-estimating overall costs of:
i. Acquiring properties, including standard acquisition costs
ii. Rehabilitation
ui harrying costs
iv. Marketing"and sales
v. Developer fees: Indicate when the developer fee will be paid
vi. Include any other known expenses that are not covered but relate to the
project costs
vii. Completed sample home development budget using the table attached
to this RFP as Attachment 7. This sample budget should not include costs
that may be associated with a Lease to Own Agreement (Section iv
below)
e. Total proposed resources for financing the City's projects, including:
i. Respondent cash resources
ii. Loans and lines of credit from others (letter from lenders)
iii. NSP3 funds
Page 10
20A-47
iv. Other state, federal or private funds
iv. Contingency Plan - Lease to Own Program
The City anticipates that it may be necessary to enter into a Lease to Own Agreement with
a prospective homebuyer. The use of such agreements will be restricted to those instances
where six months of marketing have produced no homebuyer. Using the sample
development budget prepared in response to item iii(d) above, respondents should outline
the basics of the lease to own program and agreement they would offer to the prospective
homebuyer. The outline must address the percent of collected rents that would be set
aside for the homebuyer's use as a down payment, how any ongoing costs that could not be
met through remaining rent amounts would be covered, and how many months
homebuyers would be given to acquire the necessary funds.
v. Proof of Insurance
Respondent should include verification of the City's required insurance.
• Evidence of a current worker's compensation insurance, if applicable;
• Evidence of liability insurance in an amount of not less than $1 million; and,
• Evidence of business automobile liability insurance. in an amount of not less than $1
million. ,
8. KEY TERMS OF ALL AGREEMENTS
a. Performance Measures
Due to the statutory deadlines, the selected respondent's performance will be
monitored closely. HUD requires that NSP3frecipients meet the following expenditure
deadlines:
a. 50.% of the funds must be expended within two years of the contract date
,.. 1 1
(approximately March of 2013) .
b.100% of tliet n .1 1 d s rn be expended within three years of the contract date
(approximate'l, arch of 2.014).
r.
Should a"re ondent not. Perform in a manner that will enable the City to meet this
obligation their contra ct,.yyill be terminated.
b. Method of Funding;
Selected respondents will be given NSP3 funded loans to finance the acquisition and/or
rehabilitation and redevelopment of properties deemed appropriate for this program
and not covered by other funding sources. All such loans will be secured by means of
promissory notes and recorded deeds of trust.
c. Affirmative Action
The City of Santa Ana has an affirmative action program. Qualified firms including small
businesses and businesses owned by women, minorities and disabled persons are
encouraged to submit proposals. Contractors shall agree to comply with the City's
Page 11
20A-48
ordinances and regulations regarding Affirmative Action and Equal Employment
Opportunity.
d. Certificate of Insurance and Santa Ana Business License
The individual or firm selected to provide the requested services will be required to
maintain the insurance described above as well as the City business license. They will
also be required to obtain an additional insured endorsement in the form found in
attachment 6 for the Liability Insurance
Failure to maintain the required proof of insurance shall be cause for cancellation of the award
and selection of another qualified individual or firm.
9. CRITERIA FOR SELECTION
The proposals received will be reviewed by an evaluation team composed of City staff. All
proposals will be fully considered and rated by he evaluation team. The selection will be based
upon completeness, experience with affordable housing development, technical merit, cost
competitiveness and time to perform, as they relate to the requirements identified in this RFP.
10. PROPOSAL REJECTION
u?.
The City reserves the right to reject any or all proposals submitted and is not liable for pre-
contractual expenses _ s
11. ACCEPTANCE Of CONTRACT
Subsequen to e.selectio' `' t ywar ed firm, the contents of the proposal shall become a
contractual,ab gatJq if a con ensues:.Failure of a consultant to accept this obligation will
4' t<
result in the cancellatn of the contract award.
12. TIMELINE AND SUBMISSION
a. RFP Timeline and Inquiry Procedures
02/23/2011 -Release RPF - mail and email
03/22/2011 Proposals Due
03/28/2011 Contact highest ranked
04/04/2011 Interviews for highest ranked
04/19/2011
05/02/2011 Recommendation to the Redevelopment and Housing Commission
Council approval
If there are any questions regarding the RFP please submit them in writing, via email or
fax to Juanita Preciado-Hernandez to the address and FAX number below.
Page 12
20A-49
Email address: ipreciadohernandez@santa-ana.org
FAX: 714-667-2225
All questions and answers will be posted on the City's NSP website.
http://www.ci.santa-ana.ca.us/cda/NeighborhoodStabiIizationProgram asp
b. Submission Requirements
Interested parties are invited to submit Five (5) bound copies of the proposal in a sealed
envelope via mail, hand delivery or courier to: :x
City of Santa Ana
Community Development Agency
20 Civic Center.P4laza (Third Floor)
Santa Ana, CA 92701
Attention: Juanita Preciado- Hernandez
DEADLINE: March 22, 2011
All costs incurred in the preparation of the proposal the submission of additional information
and/or any aspect of a proposal prior to award of a written,cortract will be borne solely by the
respondent. The City will provide only staff assistance and documentation specifically referred
,.. • r
to herein and will not be responsiW' for any cost or obligation of any kind, which may be
incurred by tha? spondent*"gppl cantshal1 not include any such expenses as part of the bid in
}
response to
tlii` RFp,..
The signer of the Proposal must declare in writing that the only person, persons, company or
parties interested in the proposal as principals are named therein; that the proposal is made
without collusion with any other person, persons, company or parties submitting a proposal;
that it is in all respects fair and ood faith without collusion or fraud; and, that the signer of
the proposal has full authority to ` ind the principal proposer.
Incomplete proposals and proposals received after this deadline will not be considered.
The City reserves the right to reject any or all proposals submitted and no representation is
made hereby that any contract will be awarded pursuant to this RFP or otherwise
Page 13
20A-50
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NSP3 Target Area
Avg. Max Score = 18.96
ATTACHMENT 1
o zoo 400 600
Feet
20A-51
Neighborhood ID: 4598846
NSP3 Planning Data
Grantee ID: 0633420E
Grantee State: CA
Grantee Name: SANTA ANA
Grantee Address: 20 Civic Center Plaza, M-37 Santa Ana CA 92702
Grantee Email: maguilar@santa-ana.org
Neighborhood Name: NSP 3 Final Target Area
Date:2011-01-27 00:00:00
NSP3 Score
The neighborhoods identified by the NSP3 grantee as being the areas of greatest need must have an
individual or average combined index score for the grantee's identified target geography that is not less than
the lesser of 17 or the twentieth percentile most needy score in an individual state. For example, if a state's
twentieth percentile most needy census tract is 18, the requirement will be a minimum need of 17. If,
however, a state's twentieth percentile most needy census tract is 15, the requirement will be a minimum
need of 15. If more than one neighborhood is identified in the Action Plan, HUD will average the
Neighborhood Scores, weighting the scores by the estimated number of housing units in each identified
neighborhood.
Neighborhood NSP3 Score: 18.96
State Minimum Threshold NSP3 Score: 17
Total Housing Units in Neighborhood: 731
Area Benefit Eligibility
Percent Persons Less than 120% AMI: 84.79
Percent Persons Less than 80% AMI: 62.02
Neighborhood Attributes (Estimates)
Vacancy Estimate
USPS data on addresses not receiving mail in the last 90 days or "NoStat" can be a useful measure of
whether or not a target area has a serious vacancy problem. For urban neighborhoods, HUD has found that
neighborhoods with a very high number vacant addresses relative to the total addresses in an area to be a
very good indicator of a current for potentially serious blight problem.
The USPS "NoStat" indicator can mean different things. In rural areas, it is an indicator of vacancy. However,
it can also be an address that has been issued but not ever used, it can indicate units under development,
and it can be a very distressed property (most of the still flood damaged properties in New Orleans are
NoStat). When using this variable, users need to understand the target area identified.
In addition, the housing unit counts HUD gets from the US Census indicated above are usually close to the
residential address counts from the USPS below. However, if the Census and USPS counts are substantially
different for your identified target area, users are advised to use the information below with caution. For
example if there are many NoStats in an area for units never built, the USPS residential address count may
be larger than the Census number; if the area is a rural area largely served by PO boxes it may have fewer
addresses than housing units.
USPS Residential Addresses in Neighborhood: 712
Residential Addresses Vacant 90 or more days (USPS, March 2010): 14
Residential Addresses NoStat (USPS, March 2010): 0
ATTACHMENT 1
2aA-52
Foreclosure Estimates
HUD has developed a model for predicting where foreclosures are likely. That model estimates serious
delinquency rates using data on the leading causes of foreclosures - subprime loans (HMDA Census Tract
data on high cost and highly leveraged loans), increasing unemployment (BLS data on unemployment rate
change), and fall in home values (FHFA data on house price change). The predicted serious delinquency rate
is then used to apportion the state total counts of foreclosure starts (from the Mortgage Bankers Association)
and REOs (from RealtyTrac) to individual block groups.
Total Housing Units to receive a mortgage between 2004 and 2007: 508
Percent of Housing Units with a high cost mortgage between 2004 and 2007: 30.81
Percent of Housing Units 90 or more days delinquent or in foreclosure: 17.37
Number of Foreclosure Starts in past year: 42
Number of Housing Units Real Estate Owned July 2009 to June 2010: 24
HUD is encouraging grantees to have small enough target areas for NSP 3 such that their dollars will have a
visible impact on the neighborhood. Nationwide there have been over 1.9 million foreclosure completions in
the past two years. NSP 1, 2, and 3 combined are estimated to only be able to address 100,000 to 120,000
foreclosures. To stabilize a neighborhood requires focused investment.
Estimated number of properties needed to make an impact in identified target area (20% of REO in past
year): 9
Supporting Data
Metropolitan Area (or non-metropolitan area balance) percent fall in home value since peak value (Federal
Housing Finance Agency Home Price Index through June 2010): -29.3
Place (if place over 20,000) or county unemployment rate June 2005': 5.7
Place (if place over 20,000) or county unemployment rate June 2010': 14.4
'Bureau of Labor Statistics Local Area Unemployment Statistics
Market Analysis:
HUD is providing the data above as a tool for both neighborhood targeting and to help inform the strategy
development. Some things to consider:
1. Persistent Unemployment. Is this an area with persistently high unemployment? Serious consideration
should be given to a rental strategy rather than a homeownership strategy.
2. Home Value Change and Vacancy. Is this an area where foreclosures are largely due to a combination of
falling home values, a recent spike in unemployment, and a relatively low vacancy rate? A down payment
assistance program may be an effective strategy.
3. Persistently High Vacancy. Are there a high number of substandard vacant addresses in the target area of
a community with persistently high unemployment? A demolition/land bank strategy with selected acquisition
rehab for rental or lease-purchase might be considered.
4. Historically low vacancy that is now rising. A targeted strategy of acquisition for homeownership and rental
to retain or regain neighborhood stability might be considered.
5. Historically high cost rental market. Does this market historically have very high rents with low vacancies?
A strategy of acquiring properties and developing them as long-term affordable rental might be considered.
Latitude and Longitude of corner points
ATTACHMENT 1
20A-53
-117.877507 33.727249 -117.877486 33.724652 -117.877121 33.724643 -117.877153 33.722930
-117.877239 33.722707 -117.877196 33.719780 -117.870383 33.719717 -117.870362 33.725205
-117.870405 33.727240
Blocks Comprising Target Neighborhood
060590741033000,060590741033009,060590742003004,060590742003006,060590742003008,
060590742003007,060590742003005,060590742003003,060590742003002,060590742004016,
060590742004015,060590742004014,060590742004013,060590742004012,060590742004011,
060590742004010,060590742004009,060590742004008,060590742004003,060590742004004,
060590742004005,060590742004007,060590742004006,
ATTACHMENT 1
20/A-54
ATTACHMENT 2
NSP REHABILITATION STANDARDS
PREFACE
The primary purpose of these standards is to address the quality of workmanship and
materials expected, and to achieve consistency throughout the NSP3 program activities
administered by the City of Santa Ana. These standards are not intended to reduce or
exclude the requirements of any federal, state or local codes, standards, ordinances and
regulations that apply to residential rehabilitation.
WORKMANSHIP
• All work shall be performed in a professional and workmanlike manner.
• The quality and durability of the work shall meet or exceed the standards
established by the construction industry and various trades.
MATERIALS & EQUIPMENT
• All materials and equipment shall comply with and be installed in
accordance with the manufacturer's requirements and all applicable codes,
standards, ordinances and regulations. If a discrepancy occurs between
the requirements, the more stringent shall prevail.
• Unless otherwise specified, all materials and equipment shall be medium
grade.
• Economy grade materials and equipment are unacceptable.
• All materials and equipment shall be new, in excellent condition, and
delivered to the job in the manufacturer's original packaging.
• The description of materials and equipment found in this document
establish a minimum standard.
ENERGY EFFICIENCY, WATER CONSERVATION & RECYCLED MATERIALS
To the extent possible and practical, standard measures related to energy conservation,
energy efficiency, water conservation and the use of recycled materials have been
incorporated herein. Gut rehabilitation or new construction of residential buildings up
to three stories will be designed to meet the standard for Energy Star Qualified New
Homes. Gut rehabilitation or new construction of mid or high rise multi-family housing
must be designed to meet the American Society of heating, Refrigerating and Air-
Conditioning Engineers (ASHRAE) Standard 90.1-2004, Appendix G plus 20 percent.
LEAD-BASED PAINT
All housing built before 1978 must comply with 24 CFR Part 35 Subpart J and HUD's
Lead Safe Housing Rule regarding the evaluation and control of lead-based paint
NSP3 Substantial Amendment Page 1
City of Santa Ana
20A-55
ATTACHMENT 2
hazards. HUD's guidelines are available at
http://www.hud.ciov/offices/lead/lbp/hudciuidelines /index cfm.
BUILDING STANDARDS
SITE
Minimum Standard • The site shall be hazard-free and sanitary.
• The site and all paving shall drain away from the
dwelling and accessory buildings.
• Paving and walkways shall be hazard-free and intact.
• Landscaping and irrigation systems shall be hazard-free
and in relatively good condition. All dead vegetation shall
be removed.
• Fencing, walls and gates hazard-free and intact. All
gates shall be in good working order.
• The site shall be free from trash, debris and hazardous
materials.
• Accessory buildings shall be safe and sound.
Paving • All new paving and walkways shall be constructed with
concrete (2,000 PSI @ 28 days).
• Driveways shall be reinforced with wire mesh. Sawn
expansion-contraction joints shall be placed every 8 feet in
both directions.
• All paving and walkways shall be finished with a light
broom texture.
• All walkways shall be at least 3 feet wide. Sawn
expansion-contraction joints shall be laced eve 4 feet.
Landscaping & • To the extent possible and practical all new landscaping
Irrigation shall be drought resistant.
• When a lawn is being replaced, the new lawn area shall
be reduced to aid in the reduction of water consumption.
• New irrigation controllers shall be weather or sensor
based and EPA Water-Sense qualified.
• All new irrigation systems shall be designed to conserve
water.
Fences, Walls & Gates • All new wood fences shall be made from good quality
materials. They shall be properly supported with 4X4
pressure treated posts (8 feet O.C) and 2X4 rails (top and
bottom). The osts shall be embedded in a concrete
NSP3 Substantial Amendment
City of Santa Ana
Page 2
20A-56
ATTACHMENT 2
footing at least 18" deep.
• All new block walls shall be constructed with 6X8X16
concrete block. They shall be properly supported by a
continuous footing and reinforced with steel bar.
PORCHES, STEPS, BALCONIES & RAILING
Minimum Standard . Safe and structural) sound.
Rehabilitation • Porches, steps, balconies and railing that do not meet
the minimum standard shall be replaced. Practical,' cost
effective repairs are acceptable as long as compliance with
the minimum standard will be achieved.
Concrete • 2,000 PSI (minimum).
Finishes • Zero or low VOC rimers, paint and coatings.
FOUNDATIONS
Minimum Standard • Safe and structural) sound.
Rehabilitation • Foundations that do not meet the minimum standard
shall be replaced. Practical, cost effective repairs are
acceptable as long as compliance with the minimum
standard will be achieved.
• If the project involves a gut rehab
raised foundations
,
shall be completely insulated.
Concrete • 2,000 PSI (minimum).
EXTERIOR WALLS
Minimum Standard • Safe, structural) sound and weather-tight.
Rehabilitation • Exterior walls that do not meet the minimum standard
shall be replaced. Practical, cost effective repairs are
acceptable as long as compliance with the minimum
standard will be achieved.
• Seal all joints.
• If the project involves a gut rehab
all exterior walls shall
,
be insulated.
EXTERIOR DOORS
Minimum Standard • Safe, sound, weather-tight and in good working order.
• Five or more ears of practical utility.
Rehabilitation • Exterior doors that do not meet the minimum standard
NSP3 Substantial Amendment
City of Santa Ana
Page 3
20A-57
ATTACHMENT 2
NSP3 Substantial Amendment
City of Santa Ana
shall be replaced. Practical, cost effective' repairs are
acceptable as long as compliance with the minimum
standard will be achieved.
New Doors • EPA Energy Star qualified, zero or low VOC finish.
New Hardware • Reputable manufacturer, lifetime finish.
GARAGE DOORS
Minimum Standard • Safe, sound and in good working order.
• Five or more ears of practical utility.
Rehabilitation • Garage doors that do not meet the minimum standard
shall be replaced. Practical, cost effective repairs are
acceptable as long as compliance with the minimum
standard will be achieved.
WINDOWS
Minimum Standard • Safe, sound, weather-tight and in good working order.
• Five or more ears of practical utility.
Rehabilitation • Windows that do not meet the minimum standard shall
be replaced. Practical, cost effective repairs are acceptable
as long as compliance with the minimum standard will be
achieved.
New Windows • Reputable manufacturer.
• EPA Energy Star qualified.
EXTERIOR PAINT
Minimum Standard Homes built before 1978 must comply with 24 CFR Part
35 Subpart J and HUD's Lead Safe Housing Rule regarding
the evaluation and control of lead-based paint hazards.
• All exterior paint shall be intact and corrosion free.
• Five or more ears of practical utility.
Rehabilitation • All surfaces to be painted shall be prepared properly. All
loose material and peeling paint shall be removed.
• All holes and cracks shall be filled and finished so that
they blend into the surrounding area.
• All stucco surfaces to be painted shall receive a complete
and even coverage of stucco paint.
• All wood surfaces to be painted shall receive a complete
and even coverage of flat exterior paint.
• Poor workmanship will not be tolerated.
Page 4
20A-58
ATTACHMENT 2
New Paint • Reputable manufacturer.
• Highest quality available.
• Zero or low VOC paint, caulking and fillers.
WALLS, FLOORS AND CEILINGS
Minimum Standard • Safe and structurally sound.
• All plaster, cl all and paneling shall be safe and intact.
Rehabilitation e Walls, floors and ceilings that do not meet the minimum
standard shall be replaced. Practical, cost effective repairs
are acceptable as long as compliance with the minimum
standard will be achieved.
• If the project involves a gut rehab, the attic
walls and
,
floor on raised foundations shall be insulated.
FLOOR COVERINGS
Minimum Standard • Safe, sound and sanitary.
• Five or more ears of practical utility.
Rehabilitation • Floor coverings that do not meet the minimum standard
shall be replaced. Practical, cost effective repairs are
acceptable 'aslong as compliance with the minimum
standard will be achieved.
Replacement Floor • Carpet & Pad (Reputable manufacturer
recycled
Coverings ,
materials).
• Resilient Flooring (Reputable manufacturer, 10 year wear
warranty).
• Ceramic Tile (Reputable manufacturer)
INTERIOR DOORS
Minimum Standard • Safe, sound and in good working order.
• Five or more ears of practical utility.
Rehabilitation • Interior doors that do not meet the minimum standard
shall be replaced. Practical, cost effective repairs are
acceptable as long as compliance with the minimum
standard will be achieved.
Replacement Doors & • Doors (Reputable manufacturer, masonite, raised panel).
Hardware • Hardware (Reputable manufacturer, lifetime finish).
INTERIOR PAINT
Minimum Standard • Homes built before 1978 must comply with 24 CFR Part
NSP3 Substantial Amendment Page 5
City of Santa Ana
20A-59
ATTACHMENT 2
35 Subpart J and HUD's Lead Safe Housing Rule regarding
the evaluation and control of lead-based paint hazards.
• All interior paint shall be intact, corrosion-free and
sanitary.
• Five or more ears of practical utility.
Rehabilitation . All surfaces to be painted shall be prepared properly. All
loose material and peeling paint shall be removed.
• All holes and cracks shall be filled and finished so that
they blend into the surrounding area.
• All surfaces to be painted shall receive a complete and
even coverage of flat paint (semi-gloss in kitchens,
bathrooms and laundry rooms).
• Poor workmanship will not be tolerated.
New Paint . Reputable manufacturer.
• Highest quality available.
• Zero or low VOC paint, caulking and fillers.
KITCHEN CABINETS & COUNTERTOPS
Minimum Standard • Cabinets shall be safe, sound, sanitary and in good
working order.
• Countertops shall be safe, sound, sanitary and
watertight.
• Five or more ears of practical utility.
Rehabilitation • Cabinets and countertops that do not meet the
minimum standard shall be replaced. Practical, cost
effective repairs are acceptable as long as compliance with
the minimum standard will be achieved.
Replacement Cabinets • Reputable manufacturer.
• Solid hardwood face-frames, door-frames and drawer
fronts.
• Metal and nylon drawer guides.
• Low or zero VOC adhesives and finishes.
Replacement • Reputable manufacturer.
Countertops • 4" ceramic tile, 6" backs lash, bull-nose edge.
KITCHEN FIXTURES, EQUIPMENT & APPLIANCES
Minimum Standard • Safe, sound, sanitary and in good working order.
• Faucets shall (at a minimum) be equipped with a low-
flow aerator.
NSP3 Substantial Amendment
City of Santa Ana
Page 6
20A-60
ATTACHMENT 2
• Five or more ears of practical utility.
Rehabilitation • Kitchen fixtures, equipment and appliances that do not
m eet the minimum standard shall be replaced. Practical,
cost effective repairs are acceptable as long as compliance
with the minimum standard will be achieved.
Replacement Sinks • Reputable manufacturer.
• 18- ua a (minimum) stainless steel.
Replacement Faucets • EPA Water-Sense qualified.
• Reputable manufacturer.
• Brass construction, metal housing.
Replacement • Reputable manufacturer.
Disposals • 1/2 HP motor (minimum).
• Stainless steel swivel lugs.
Replacement • EPA Energy Star qualified.
Dishwashers • Reputable manufacturer.
Replacement Range • EPA Energy Star qualified.
Hoods • Reputable manufacturer.
Replacement Ranges • Reputable manufacturer.
• Pilot-free ignition.
• Four sealed burners.
• Self-cleaning oven with timer.
Replacement Cook • Reputable manufacturer.
Tops • Pilot-free ignition.
• Four sealed burners.
Wall Ovens • Reputable manufacturer.
• Pilot-free ignition.
• Self-cleaningoven with timer.
BATHROOM FIXTURES & EQUIPMENT
Minimum Standard • Safe, sound, sanitary and in good working order.
• Faucets shall (at a minimum) be equipped with a low-
flow aerator.
• Showerheads shall (at a minimum) be equipped with
low-flow aerator.
• Porcelain sinks shall be free from any cracks or chips.
• Steel sinks shall be free from any rust or corrosion.
• Five or more ears of practical utility.
Rehabilitation • Bathroom fixtures and equipment that do not meet the
minimum standard shall be replaced. Practical, cost
NSP3 Substantial Amendment
City of Santa Ana
Page 7
20A-61
ATTACHMENT 2
effective repairs are acceptable as long as compliance with
the minimum standard will be achieved.
• Toilets that require more than 1.6 GPF shall be replaced
re gardless of their condition.
Replacement Sinks • Reputable manufacturer.
• Cast iron, white enamel finish.
Replacement Faucets • EPA Water-Sense qualified.
• Reputable manufacturer.
• Brass construction, metal housing.
Replacement Toilets • Reputable manufacturer.
• EPA Water-Sense qualified (1.28 GPF)
Replacement Tubs • Reputable manufacturer.
• Cast iron body, white enamel finish, slip resistant bottom.
• EPA Water-Sense qualified plumbing fixtures.
Replacement • Reputable manufacturer.
Combination • Cast iron body, white enamel finish, slip resistant bottom.
Tub-Showers • 4" ceramic tile surround.
• Anodized aluminum doors with tempered glass.
• EPA Water-Sense qualified plumbing fixtures.
Replacement Showers • Reputable manufacturer.
• 4" ceramic tile.
0 Anodized aluminum door with tempered glass.
a EPA Water-Sense qualified plumbing fixtures.
Replacement • Reputable manufacturer.
Medicine Cabinets • Steel body, beveled mirror door.
Towel Bars & Toilet • Reputable manufacturer.
Paper Holders • Metal construction, polished chrome finish.
WATER SUPPLY, WASTE & VENT PIPING
Minimum Standard • Safe, sound and leak-free.
Rehabilitation • Piping (supply, waste and vent) that does not meet the
minimum standard shall be replaced. Practical, cost
effective repairs are acceptable as long as compliance with
the minimum standard will be achieved.
Replacement • Copper, type "L".
Water Supply Piping
Replacement • Schedule 40 ABS.
Waste & Vent Piping
NSP3 Substantial Amendment
City of Santa Ana
Page 8
20A-62
ATTACHMENT 2
NSP3 Substantial Amendment
City of Santa Ana
WATER HEATERS
Minimum Standard • Safe, sound and in good working order.
• Five or more ears of practical utility.
Rehabilitation • Water heaters that do not meet the minimum standard
shall be replaced. Practical, cost effective repairs are
acceptable as long as compliance with the minimum
standard will be achieved.
Replacement • Reputable manufacturer.
Water Heaters (Tank) • EPA Energy Star qualified.
• 40-gallon insulated tank.
Replacement • Reputable manufacturer.
Water Heater • EPA Energy Star qualified.
(Tank-Less)
ELECTRICAL SERVICE AND WIRING
Minimum Standard • Safe, sound and in good working order.
• 100-ampere minimum service.
Rehabilitation • Electrical service panels, breakers and wiring that do not
meet the minimum standard shall be replaced. Practical,
cost effective repairs are acceptable as long as compliance
with the minimum "standard will be achieved.
• Knob and tube wiring shall be replaced regardless of its
condition.
• Overhead wiring from a dwelling to a detached garage
or accessory building shall be installed underground
re ardless of its condition.
Replacement . Reputable manufacturer.
Service • 100-ampere (minimum).
Replacement • Romex (NM cable).
Wiring
ELECTRICAL SWITCHES, OUTLETS & LIGHTING FIXTURES
Minimum Standard • Safe, sound and in good working order.
• Light fixtures shall (at a minimum) be equipped with CFL
bulbs.
• Exterior lighting fixtures used for security shall be
equipped with a motion sensor.
Rehabilitation • Electrical switches, outlets and lighting fixtures that do
not meet the minimum standard shall be replaced. Practical,
Page 9
20A-63
ATTACHMENT 2
cost: effective repairs are acceptable as long as compliance
with the minimum standard will be achieved.
• All new light fixtures shall be U.L. approved and Energy
Star qualified.
• Outlets located within 6 feet of a source of water shall be
ground fault protected.
• Exterior switches and outlets shall be weatherproof.
Replacement • U.L. approved.
Switches & Outlets
Replacement • Reputable manufacturer.
Lighting Fixtures • U.L. approved and EPA Energy Star qualified.
HVAC
Minimum Standard • Safe, sound and in good working order.
• Eight or more ears of practical utility.
Rehabilitation • HVAC that does not meet the minimum standard shall
be replaced. Practical, cost effective repairs are acceptable
as long as compliance with the minimum standard will be
achieved.
• Tune-up all HVAC equipment (as a minimum).
• Seal all ducts (as a minimum).
• All new HVAC equipment shall be sized properly.
Furnaces • Reputable manufacturer.
• EPA Energy Star qualified.
Central Air • Reputable manufacturer.
Conditioners • EPA Energy Star qualified.
Thermostats • Reputable manufacturer.
• EPA Energy Star qualified.
• Pro rammable.
NON-PERMITTED ADDITIO NS AND CONVERSIONS
Minimum Standard • Additions and alterations that were constructed without
a building permit and are clearly substandard shall be
removed.
• Additions and alterations that were constructed without
a building permit, but appear to be compliant, shall be
inspected by the City's Building Official to determine if a
buildin ermit can be issued and the can be saved.
NSP3 Substantial Amendment
City of Santa Ana
Page 10
20A-64
Section 3 Summary Report
Economic Opportunities for
Low - and Very Low-Income Persons
Section back of page for Public Reporting Burden statement
ATTACHMENT 3
U.S. Department of Housing
and Urban Development
Office of Fair Housing
And Equal Opportunity
OMB Approval No: 2529-0043
(exp. 1113012010)
HUD Field Ofllca:
1. Ractplent Name & Address: (street, city, state, zip) Z. Federal Identification: (grant no
)
. 3. Total Amount of Award:
4. Contact Person 5. Phone: (Include area code)
6. Length of Grant 7. Reponing Period:
8. Date Report Submittetli 9. Program Code: (Use separate sheet 10. Program Name:
for each program code)
Part I: Em io ment and Training_(** Columns B C and F are manda to fields. Include New Hi res in E &F
A B C D E F
Job Category Number of
New Hires Number of New
Hires that are % of Aggregate Number
f
t % of Total Staff Hours Number of Section 3
o
S
art Hours of New Hires for Section 3 Employees Tra4Jess
Sec. 3 Residents that are Sec. 3 Residents and Trainees
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Program Codes 3 = Public/Indian Housing 4 = Homeless Assistance
1 - Flexible Subs' 8 == CDBG State Administered
2 = Section 202/6 A = Development 5 =HOME 9 = Older CD Programs
B = Operation 6 = HOME state Administered 10.Other Housing Programs
C = Modernization 7 = CDBG Entitlement
Pagel of 2 form HUD 60002 (612001)
Ref 24 CFR 135
20A-65
Part II: Contracts Awarded
1. Construction Contracts:
A. Total dollar amount of all contracts awarded on the project $
B. Total dollar amount of contracts awarded to Section 3 businesses $
C. Percentage of the total dollar amount that was awarded to Section 3 businesses %
D. Total number of Section 3 businesses receiving contracts
2. Non-Construction Contracts:
A. Total dollar amount all non-construction contracts awarded on the projectlactivity $
B. Total dollar amount of non-construction contracts awarded to Section 3 businesses $
C. Percentage of the total dollar amount that was awarded to Section 3 businesses %
D. Total number of Section 3 businesses receiving non-constructlon contracts
Part III: Summary
Indicate the efforts made to direct the employment and other economic opportunities generated by HUD financial assistance for housing
and community development programs, to the greatest extent feasible, toward low-and very low-income persons, particularly those who
are recipients of government assistance for housing. (Check all that apply.)
Attempted to recruit low-income residents through: local advertising media, signs prominently displayed at the project site,
contracts with the community organizations and public or private agencies operating within the metropolitan area (or
nonmetropolitan county) In which the Section 3 covered program or project is located,-or similar methods.
Participated in a HUD program or other program which promotes the training or employment of Section 3 residents.
Participated in a HUD program or other program which promotes the award of contracts to business concerns which meet the
definition of Section 3 business concerns.
Coordinated with Youthbuild Programs administered in the metropolitan area in which the Section 3 covered project is located.
Other; describe below.
Public reporting for this collection of information is estimated to average 2 hours per response, including the time for reviewing instructions,
searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.
This agency may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB
number.
Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701 u, mandates that the Department ensures that
employment and other economic opportunities generated by its housing and community development assistance programs are directed
toward low- and very-low Income persons, particularly those who are recipients of government assistance housing. The regulations are
found at 24 CFR Part 135. The information will be used by the Department to monitor program recipients' compliance with Section 3, to
assess the results of the Department's efforts to meet the statutory objectives of Section 3, to prepare reports to Congress, and by
recipients as self-monitoring tool. The data is entered Into a database and will be analyzed and distributed. The collection of information
involves recipients receiving Federal financial assistance for housing and community development programs covered by Section 3. The
information will be collected annually to assist HUD in meeting its reporting requirements under Section 808(e)(6) of the Fair Housing Act
and Section 916 of the HCDA of 1992. An assurance of confidentiality is not applicable to this form. The Privacy Act of 1974 and OMB
Circular A-108 are not applicable. The reporting requirements do not contain sensitive questions. Data is cumulative; personal identifying
information is not included.
Page 2 of 2 form HUD 60002 (11/2010)
Ref 24 CFR 135
20A-66
Form HUD-60002, Section 3 Summary Report, Economic Opportunities for Low- and Very Low-income Persons.
Instructions: This form is to be used to report annual
accomplishments regarding employment and other economic
opportunities provided to low- and very low-income persons under
Section 3 of the Housing and Urban Development Act of 1968. The
Section 3 regulations apply to any public and Indian housing
programs that receive: (1) development assistance pursuant to
Section 5 of the U.S. Housing Act of 1937; (2) operating assistance
pursuant to Section 9 of the U.S. Housing Act of 1937; or (3)
modernization grants pursuant to Section 14 of the U.S. Housing Act
of 1937 and to recipients of housing and community development
assistance In excess of $200,000 expended for. (1) housing
rehabilitation Qncluding reduction and abatement of lead-based paint
hazards}; (2) housing construction; or (3) other public construction
projects: and to contracts and subcontracts in excess of $100,000
awarded in connection with the Section-3-covered activity.
Form HUD-60002 has three parts, which are to be completed for
all programs covered by Section 3. Part I relates to employment
and training. The recipient has the option to determine numerical
employment/lraining goals either on the basis of the number of hours
worked by new hires (columns B, D, E and F). Part II of the form
relates to contracting, and Part III summarizes recipients' efforts to
comply with Section 3.
Recipients or contractors subject to Section 3 requirements must
maintain appropriate documentation to establish that HUD financial
assistance for housing and community development programs were
directed toward low- and very low-income persons.' A recipient of
Section 3 covered assistance shall submit one copy of this report to
HUD Headquarters, Office of Fair Housing and Equal Opportunity.
Where the program providing assistance requires an annual
performance report, this Section 3 report is to be submitted at the
same time the program performance report is submitted. Where an
annual performance report is not required, this Section 3 report is to be
submitted by January 10 and, If the project ends before December 31,
within 10 days of project completion. Only Prime Recipients are
required to report to HUD. The report must include
accomplishments of all recipients and their Section 3 covered
contractors and subcontractors.
HUD Field Office: Enter the Field Office name.
1. Recipient: Enter the name and address of the recipient
submitting this report.
2. Federal Identification: Enter the number that appears on the
award form (with dashes). The award may be a grant,
cooperative agreement or contract.
3. Dollar Amount of Award: Enter the dollar amount, rounded to the
nearest dollar, received by the recipient.
4 & 5. Contact Person/Phone: Enter the name and telephone number
of the person with knowledge of the award and the recipient's
implementation of Section 3.
6. Reporting Period: Indicate the time period (months and year)
this report covers.
7. Date Report Submitted: Enter the appropriate date.
8. Program Code: Enter the appropriate program code as listed at
the bottom of the page.
9. Program Name: Enter the name of HUD Program corresponding
with the "Program Code' in number 8.
Part is Employment and Training Opportunities
Column A: Contains various job categories. Professionals are
defined as people who have special knowledge of an occupation (i.e,
supervisors, architects, surveyors, planners, and computer
programmers). For construction positions, list each trade and provide
data In columns B through F for each trade where persons were
employed. The category of'Other" includes occupations such as
service workers.
Column B: (Mandatory Field) Enter the number of new hires for
each category of workers identified in Column A in connection with
this award. New hire refers to a person who is not on the contractors
or recipient's payroll for employment at the time of selection for the
Section 3 covered award or at the time of receipt of Section 3 covered
assistance.
Column C: (Mandatory Field) Enter the number of Section 3 new
hires for each category of workers identified in Column A In
connection with this award. Section 3 new hire refers to a Section 3
resident who is not on the contractor's or recipients payroll for
employment at the time of selection for the Section 3 covered award or
at the time of receipt of Section 3 covered assistance.
Column D: Enter the percentage of all the staff hours of new hires
(Section 3 residents) in connection with this award.
Column E: Enter the percentage of the total staff hours worked for
Section 3 employees and trainees (including new hires) connected
with this award. Include staff hours for part-time and full-time
positions.
Column F: (Mandatory Field) Enter the number of Section 3
residents that were trained in connection with this award.
Part Ik Contract Opportunities
Block 1: Construction Contracts
Hem A: Enter the total dollar amount of all contracts awarded on the
project/program.
Item B: Enter the total dollar amount of contracts connected with this
project/program that were awarded to Section 3 businesses.
hem C: Enter the percentage of the total dollar amount of contracts
connected with this project/program awarded to Section 3 businesses.
Item D: Enter the number of Section 3 businesses receiving awards.
Block 2: Non-Construction Contracts
Item A: Enter the total dollar amount of all contracts awarded on the
project/program.
Item B: Enter the total dollar amount of contracts connected with this
project awarded to Section 3 businesses.
Item C: Enter the percentage of the total dollar amount of contracts
connected with this project/program awarded to Section 3 businesses.
Item D: Enter the number of Section 3 businesses receiving awards.
Part III: Summary of Efforts - Self -explanatory
Submit one (1) copy of this report to the HUD Headquarters Office of
Fair Housing and Equal Opportunity, at the same time the
performance report is submitted to the program office. The Section 3
report is submitted by January 10. Include only contracts executed
during the period specified in item 8. PHAs/IHAs are to report all
contracts/subcontracts.
The terms 'low-income persons" and very low-income persona" have
the same meanings given the terms in section 3 (b) (2) of the United
States Housing Act of 1937. Low-income persons mean families
(including single persons) whose incomes do not exceed 80 percent of
the median Income for the area, as determined by the Secretary, with
adjustments for smaller and larger families, except that
Pages
The Secretary may establish Income ceilings higher or lower than 80 percent
of the median for the area on the basis of the Secretarys findings such that
variations are necessary because of prevailing levels of construction costs
or unusually high- or low-income families. Very low-income persons mean
low-Income families (including single persons) whose incomes do not
exceed 50 percent of the median family income area, as determined by the
Secretary with adjustments or smaller and larger families, except that the
Secretary may establish income ceilings higher or lower than 50 percent of
the median for the area on the basis of the Secretary's findings that such
variations are necessary because of unusually high or low family Incomes.
Corm HUD 80002 (1112010)
Ref 24 CFR 135
20A-67
20A-68
ATTACHMENT 4
IT' A -4
Housing and Et# orhaoc€ De+ ¢Edp nenr DiVjslun 7f} Civic Center Plaza, Third Ho6T, Santa Ana, CA 9,,Z7
HOMEBUYER COUNSELING AGENCIES
The following organizations have been approved by the U.S. Department of Housing and Urban
Development (HUD) as providers of homebuyer education in Orange County. The City of Santa Ana
Downpayment Assistance Program requires that prospective homebuyers complete a pre-purchase
counseling program from one of these agencies prior to applying for a loan to purchase a home. The
information contained in this list is based on HUD's website (www.hud.gov) effective July 2009.
Please contact the providers for current information or updates.
Neighborhood 198 W. Lincoln Ave., Phone: (714) 490-1250 Pre-purchase and Post-
Housing Services of 2"d Floor, Anaheim Email: purchase
Orange County clementem(Wnhsoc.org Program: FREE
Credit Report Fee - $20
HELD MONTHLY
Anaheim Housing 201 S. Anaheim Phone: (714) 765-4340 Pre-purchase
Authority Blvd., Ste 1001, Email: Program: FREE
Anaheim gcontreras()anaheim.net Parking: FREE
Consumer Credit
2450 E. Lincoln Ave.
Phone: (714) 547-2227 HELD MONTHLY
Pre-purchase and Post-
Counseling Service of Anaheim Email: cccsoc(Dcccsoc.om purchase
Orange County Program: FREE
HELD MONTHLY
Consumer Credit 695 Madison Way, Phone: (714) 547-2227 Pre-purchase and Post-
Counseling Service of Brea Email: cccsocCa7cccsoc.orQ purchase
Orange County Program: FREE
Consumer Credit
2701 S. Harbor Blvd.
Phone: (714) 547-2227 HELD MONTHLY
Pre-purchase and Post-
Counseling Service of E-6, Costa Mesa Email: cccsocacccsoc.orcl purchase
Orange County Program: FREE
Consumer Credit
1920 Old Tustin Ave.
Phone: (714) 547-2227 HELD MONTHLY
Pre-purchase
Counseling Service of Santa Ana Email: cccsoc(&cccsoc.org Program: FREE
Orange County HELD MONTHLY
Fair Housing Council 201 S. Broadway Phone: (714) 569-0823 Pre-purchase
of Orange County Santa Ana Email: Program: FREE
cdertorossian(@fairhousinaoc ora MONTHLY OR ONE ON
ONE COUNSELING BY
APPT. ONLY
"sYSY.Sx3ei??'? ?rF:Le?ta
20A-69
20A-70
ATTACHMENT 5
FREE RECORDING REQUESTED PURSUANT
TO GOVERNMENT CODE SECTION 27383
When Recorded Mail to:
City of Santa Ana
20 Civic Center Plaza (M-37)
P.O. Box 1988
Santa Ana, CA 92702-1988
Attention: Housing Programs Coordinator
CITY DEED OF TRUST
INCLUDING AFFORDABLE HOUSING
DEED RESTRICTIONS
(Neighborhood Stabilization Program Homeownership Program)
THIS DEED OF TRUST INCLUDING AFFORDABLE HOUSING DEED
RESTRICTIONS is made as of the day of , 20 , by and between
("Trustor"), whose address is Street, Santa Ana, CA
92701; AmeriNational Community Services, Inc. (the"Trustee"), whose address is 8121 E.
Florence Avenue, Downey, CA 90240, and the City of Santa Ana, a charter city and municipal
corporation (the "Beneficiary") whose address is 20 Civic Center Plaza (M-37), P.O. Box 1988,
Santa Ana, California 92702.
FOR GOOD AND VALUABLE CONSIDERATION, including the indebtedness
herein recited and the trust herein created, the receipt of which is hereby acknowledged, Trustor
hereby irrevocably grants, transfers, conveys and assigns to Trustee, IN TRUST, WITH POWER
OF SALE, for the benefit and security of Beneficiary, under and subject to the terms and
conditions hereinafter set forth, the property located at in the City of
Santa Ana, County of Orange, State of California, that is described in the property description
attached hereto as Exhibit A and by this reference incorporated herein (the "Property").
TOGETHER WITH all issues, profits, royalties, income and other benefits legally
or illegally derived from the Property (collectively, the "issues"), provided that so long as
Trustor is not in default hereunder, it shall be permitted to control the Property in accordance
with the requirements contained herein between the Trustor and the Beneficiary ("Deed"} and
the Promissory Note ("Note") in the amount of $ which documents are on
file with the Beneficiary as a public record;
TOGETHER WITH all interests, estates or other claims, both in law and in equity
which Trustor now has or may hereafter acquire in the Property and the issues;
City.HO.DOT Page I of 13 2/8/10
20A-71
TOGETHER WITH all easements, rights-of-way and rights used in connection
therewith or as a means of access thereto, including, without limiting the generality of the
foregoing, all tenements, hereditaments and appurtenances thereof and thereto;
TOGETHER WITH any and all buildings and improvements now or hereafter
erected thereon, and all property of the Trustor now or hereafter affixed to or placed upon the
Property, including without limitation, all fixtures, attachments, appliances, furnishings,
equipment and machinery (whether fixed or movable) and other articles (including, in each
instance, improvements, restorations, replacements, repairs, additions, accessions or substitutions
thereto or therefor);
TOGETHER WITH all leasehold estate, right, title and interest of Trustor in and
to all leases or subleases covering the Property or any portion thereof now or hereafter existing
or entered into, and all right, title and interest of Trustor thereunder, including, without
limitation, all cash or security deposits, advance rentals, and deposits or payments of similar
nature;
TOGETHER WITH all right, title and interest of Trustor in and to all options to
purchase or lease the Property or any portion thereof or interest therein, and any greater estate in
the Property owned or hereafter acquired;
TOGETHER WITH all right, title and interest of Trustor, now owned or hereafter
acquired, in and to any land lying within the right-of-way of any street, open or proposed,
adjoining the Property, and any and all sidewalks, alleys and strips and gores of land adjacent to
or used in connection with the Property;
TOGETHER WITH all the estate, interest, right, title, other claim or demand, of
every nature, in and to such property, including the Property, both in law and in equity,
including, but not limited to, all deposits made with or other security given by Trustor to utility
companies, the proceeds from any or all of such property, including the Property, claims or
demands with respect to the proceeds of insurance in effect with respect thereto, which Trustor
now has or may hereafter acquire, any and all awards made for the taking by eminent domain or
by any proceeding or purchase in lieu thereof of the whole or any part of such property,
including without limitation, any awards resulting from a change of grade of streets and awards
for severance damages;
All of the foregoing, together with the Property, is herein referred to as the
"Security."
FOR THE PURPOSE OF SECURING:
(a) Performance of every obligation, covenant or agreement of Trustor
referenced in this Deed of Trust, and the Promissory Note ("Note"); and
(b) Maintenance of the term of affordability for low or moderate income
households for at least forty-five (45) years or until the Promissory Note is paid in full, and
(c) The repayment of the sums evidenced by the Promissory Note to the
Beneficiary executed by Trustor of even date herewith
City.HO.DOT Page 2 of 13 2/8/10
20A-72
(d) Use of the Property as an Owner-Occupied, single family residence.
The terms, covenants and restrictions of this Deed and the Promissory Note are incorporated
herein by reference.
ARTICLE I. DEED RESTRICTIONS/AFFORDABILITY REQUIREMENTS
1. Purpos In accepting these Deed Restrictions, the undersigned Trustor understands
and acknowledges that the Property (also referred to herein as the "Affordable Unit") is being
sold to the Trustor at an affordable sales price, so as to make the Property affordable to the
Trustor. The Owners hereunder are purchasing this Property with a silent second loan from the
Agency through the City of Santa Ana's Neighborhood Stabilization Homeownership Program.
Pursuant to this Program, the City and Owner have agreed to impose certain continuing
obligations relating to and on the Property.
In return for and in consideration of the opportunity for the Trustor to purchase the Property
under the above referenced circumstances and for other good and valuable consideration, the
receipt and legal sufficiency of which the undersigned hereby acknowledges, the Trustor on
behalf of himself/herself and with the express intent to bind all those defined as "Owner", hereby
agrees to the following:
2. Method of Sale.
A. Procedures to Notify City
L Notice of Proposed Sale. If at any time during the duration of the Forty Five
(45) year affordability period, the Trustor, as Owner, desires or elects to sell, transfer, convey,
assign or otherwise dispose the Property ("dispose"), the Owner may sell it and pay off the City
Promissory Note. Owner is required to notify the City in writing to that effect and shall provide
such information as the City may reasonably require regarding the proposed sale. Said writing
(hereinafter referred to as the "Notice of Intended Sale") shall state the street address of the
Property and the Owner's full name(s). Once the City Promissory Note is paid off completely by
Owner, the long term affordability obligations (45 year restriction) hereunder shall be released.
The Notice, together with the City required information shall be personally delivered or
deposited into the U.S. mail, postage prepaid, first class, certified mail, return receipt requested,
addressed to:
COMMUNITY DEVELOPMENT AGENCY OF
THE CITY OF SANTA ANA
20 Civic Center Drive (M-37)
Santa Ana, California 92702
Attn: Housing Division
B. Notice of Default Under Deed of Trust or Mort a e and Cit 's Rio, ht to
Enforce. The Owner covenants to cause to be filed in the Office of the Recorder of the County
City.HO.DOT Page 3 of 13 2/8/10
20A-73
of Orange a request for a copy of any notice of sale or notice of default under any deed of trust or
mortgage with power of sale encumbering the Property or any party thereof. Such request shall
specify that any such notice shall be mailed to:
COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF SANTA ANA
20 Civic Center Drive (M-37)
Santa Ana, California 92702
Attn: Housing Division
C. Disposition of the Property to A Bement. If the Owner disposes
of the Property contrary to this Deed of Trust, the City shall at any time thereafter, at its election,
have the right to declare such disposition or other act null and void and/or seek enforcement of
the terms and conditions hereof in any manner allowed by law or equity.
3. Severability. The provisions of this Deed of Trust, including without limitation,
shall be deemed independent and severable, and a determination of invalidity or partial invalidity
or unenforceability of any one provision or portion hereof by a court of competent jurisdiction
shall not affect the validity or enforceability of any other provisions hereof.
ARTICLE IL GENERAL CONDITIONS/MAINTENANCE
1. Maintenance. The Trustor agrees that at all times prior to the date upon
which the Loan Amount has been fully repaid to the Beneficiary and all other obligations the
performance of which is secured by this Deed of Trust have been satisfied (the "Expiration
Date") the Trustor will, at the Trustor's own expense, maintain, preserve and keep the Property
or cause the Property to be maintained, preserved and kept in a condition substantially similar to
other residential property similar in size, character, and quality to the Property consisting only of
those uses allowed by the Agreement. The Trustor will make or cause to be made all repairs,
replacements and renewals deemed proper and necessary by Trustor. The Beneficiary shall have
no responsibility in any of these matters or for the making of improvements or additions to the
Property. Owner, or its successor or assigns, shall maintain the Property in compliance with all
applicable housing quality standards, and all applicable local code requirements, and shall keep
the Property free from any unreasonable accumulation of debris or waste materials. All graffiti
and defacement of any type, must be removed and any necessary repairs made within five (5)
days of their creation and/or notice to the Owner.
2. Monitoring by the City. On or about July 1 of each calendar year, the City will mail a
form to the record owner of the Property to confirm that the Property is owner-occupied. The
owners of the Property shall complete the form and return it to the City within thirty (30)
calendar days after receipt of the request from the City.
3. Owner Occupancy. The Trustor agrees and covenants to use the Property as its
primary residence in full compliance with this Agreement for Forty-Five (45) years. City and
Owner acknowledge that this owner-occupancy covenant is a condition to and consideration for
Owners eligibility for the Neighborhood Stabilization Program Homeownership Program.
City.HO.DOT Page 4 of 13 2/8/10
20A-74
In administering this Program, the City is implementing the objective of increasing the ratio of
decent, safe and sanitary owner-occupied single-family residences to rental property throughout
the City of Santa Ana. In furtherance of this public use and purpose, Owners for itself and its
successors and assigns, agree not to rent, lease, license or otherwise permit a non-owner of the
Property to take possession and control thereof. Owner and its successors in interest agree and
consent that this owner-occupancy restriction may be enforced by the City through specific
performance.
ARTICLE III. TAXES AND INSURANCE; ADVANCES
1. Taxes, Other Governmental Charges and Utility Chartres. Trustor shall pay, or
cause to be paid, prior to delinquency, all taxes, assessments, charges and levies imposed by any
public authority or utility company which are or may become a lien affecting the Security or any
part thereof, provided, however, that Trustor shall not be required to pay and discharge any such
tax, assessment, charge or levy so long as (a) the legality thereof shall be promptly and actively
contested in good faith and by appropriate proceedings, and (b) Trustor maintains reserves
adequate to pay any liabilities contested pursuant to the terms hereof, and in accordance with
generally accepted accounting principles. With respect to special assessments or other similar
governmental charges, Trustor shall pay such amount in whole or in installments over a period of
years.
2. Insurance. Trustor agrees to provide insurance covering one hundred percent
(100%) of the replacement cost of all insurable items within the Property in the event of fire,
lightning, debris removal, windstorm, flood, vandalism, malicious mischief, theft, mysterious
disappearance and hazards, casualties and contingencies as are normally and usually covered by
all-risk policies in effect in the locality where the Property are situated. All such insurance
policies and coverages (i) shall be maintained at Trustor's sole cost and expense so long as any
part of the amounts secured by this Deed of Trust have not been paid, and (ii) shall be with
insurers of recognized responsibility and in form and substance satisfactory to the Beneficiary,
(iii) shall name Beneficiary as additional insured, and (iv) shall contain a provision to the effect
that the insurer shall not cancel the policy or modify it materially and adversely to the interests of
Beneficiary without first giving at least thirty (30) days' prior written notice thereof. Certificates
of insurance for all of the above insurance policies showing the same to be in full force and
effect shall be delivered to the Beneficiary upon demand therefor at any time prior to the
Expiration Date. Should the Property be determined to be in a Flood Zone, Trustor is required to
purchase Flood Insurance for the Property.
ARTICLE IV. DAMAGE, DESTRUCTION OR CONDEMNATION
1. Damage and Destruction If, prior to the Expiration Date, the Property or any portion
thereof is destroyed (in whole or in part) or is damaged by fire or other casualty, the Trustor shall
(a) cause any insurance proceeds arising from insurance referred to herein and any other
coverage acquired by the Trustor to be used to promptly rebuild and replace the Property, and (b)
repair and replace the Property as necessary to bring the Property into conformity with the
standards of construction and operation characteristic of residences of size, character, and quality
similar to the Property. There shall be no abatement in, and Trustor shall be obligated to
continue to pay, the amounts payable under this Deed of Trust.
City.HO.DOT Page 5 of 13 2/8/10
20A-75
2. Condemnation. If title to or any interest in or the temporary use of the Property or any
part thereof shall be taken under the exercise of the power of eminent domain by any
governmental body or by any person, firm or corporation acting under governmental authority,
including any proceeding or purchase in lieu thereof, the proceeds as a result of such taking shall
be paid as provided by the law of the State of California to all persons or entities as their interests
appear of record.
ARTICLE V. REPRESENTATIONS, COVENANTS AND WARRANTIES OF THE
TRUSTOR
1. Defense of Title. The Trustor covenants that it is lawfully seized and possessed of title in
fee simple to the Property, that it has the right to sell, convey or otherwise transfer or encumber
the same, and that the Trustor, for itself and its successors and assigns, warrants and will forever
defend the right and title to the foregoing described and conveyed property unto the Beneficiary,
its successors and assigns, against the claims of all persons whomsoever, excepting only
encumbrances approved by the Beneficiary.
2. Inspection of the Property. The Trustor covenants and agrees that at any and all
reasonable times and upon reasonable notice, the Beneficiary and its duly authorized agents,
attorneys, experts, engineers, accountants and representatives, shall have the right, without
payment of charges or fees, to inspect the Property.
Article VI. AGREEMENT; FURTHER ASSURANCES; PAYMENT
1. Other Agreements Affecting Property. The Trustor shall duly and punctually perform
all terms, covenants, conditions and agreements binding upon it under this Deed of Trust or any
other agreement of any nature whatsoever now or hereafter involving or affecting the Property or
any part thereof.
2. Further Assurances. At any time, and from time to time, upon request by the
Beneficiary, the Trustor shall make, execute and deliver, or cause to be made, executed and
delivered, to the Beneficiary and, where appropriate, cause to be recorded and/or filed, and from
time to time thereafter to be re-recorded and/or re-filed, at such time and in such offices and
places as shall be deemed desirable by the Beneficiary, any and all such other and further deeds
of trust, security agreements, financing statements respecting personal property, instruments of
further assurance, certificates and other documents as may, in the opinion of the Beneficiary, be
necessary or desirable in order to effectuate, complete or perfect, or to continue and preserve, (a)
the obligations of the Trustor under this Deed of Trust.
3. Agreement to Pay Attorney's Fees and Expenses. In the event of an Event of Default
hereunder, and if the Beneficiary should employ attorneys or incur other expenses for the
collection of amounts due or the enforcement of performance or observance of any obligation or
agreement on the part of the Trustor in this Deed of Trust, the Trustor agrees that it will, on
demand therefor, pay to the Beneficiary the reasonable fees of such attorneys and such other
reasonable expenses so incurred by the Beneficiary; and any such amounts paid by the
Beneficiary shall be added to the indebtedness secured by the lien of this Deed of Trust, and shall
bear interest form the date such expenses are incurred at the maximum rate permitted by Section
1(2) of Article XV of the California Constitution.
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4. Payment of the Promissory Note Amount. The Trustor shall pay to the Beneficiary an
amount equal to the Amount of the Promissory Note, in the amount(s) and by the time(s) set out
in the therein. The failure to pay said Amount constitutes an Event of Default under the
Promissory Note authorizing and permitting the Beneficiary to exercise the remedies set forth
herein.
5. Subrogation: Payment of Claims. Provided that the Beneficiary gives notice of at least
five (5) business days to the Trustor, the Beneficiary shall be subrogated to the claims and liens
of all parties whose claims or liens are discharged or paid by the Beneficiary pursuant to the
provisions hereof.
6. Use of the Propert y. The Trustor agrees and covenants to use the Property as its
primary residence in full compliance with the Agreement until the Termination Date.
7. Transfer. No sale, transfer, lease, pledge, encumbrance, creation of a security interest in
or other hypothecation of the Security shall relieve or release the Trustor from primary liability
under this Deed of Trust or the Agreement.
Article VII. EVENTS OF DEFAULT AND REMEDIES
1. Events of Default Defined. The occurrence of any failure of the Trustor to perform
under this Deed of Trust or the Promissory Note, and the continuation of said failure for a period
of thirty (30) business days as to monetary obligations and sixty (60) business days as to non--
monetary obligations, after written notice specifying such failure and requesting that it be
remedied (such notice being referred to herein as a "notice of default") shall have been given to
Trustor from the Beneficiary, shall be an Event of Default under this Deed of Trust. If the
default is such that it is not reasonably capable of being cured within sixty (60) days, and Trustor
(i) initiates corrective action within said period, and (ii) diligently and in good faith works to
effect a cure as soon as possible, then Trustor shall have additional time as is reasonably
necessary to cure the default prior to exercise of any remedies by the Beneficiary. In no event
shall the Beneficiary be precluded from exercising remedies if its security becomes or is about to
become materially jeopardized by any failure to cure a default or the default is not cured within
ninety (90) days after the notice of default is first given.
2. Acceleration of Maturity. If an Event of Default shall have occurred and be continuing,
then the entire indebtedness secured hereby shall, at the option of the Beneficiary, immediately
become due and payable without notice or demand which are hereby expressly waived, and no
omission on the part of the Beneficiary to exercise such option when entitled to do so shall be
construed as a waiver of such right.
3. The Beneficiary's Right to Enter and Take Possession. If an event of Default shall have
occurred and be continuing, the Beneficiary may:
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(a) Either in person or by agent, with or without bringing any action or proceeding, or by
a received appointed by a court, and without regard to the adequacy of its security, enter upon
the Property and take possession thereof (or any part thereof) and of any of the Security, in its
own name or in the name of Trustee, and do any acts which it deems necessary or desirable to
preserve the value, marketability or rentability of the Property, or part thereof or interest therein,
increase the income therefrom or protect the Security hereof and, with or without taking
possession of the Property, sue for or otherwise collect any rents, issues and profits thereof,
including those past due and unpaid, and apply the same, less costs and expenses of operation
and collection, including attorneys' fees, upon any indebtedness secured hereby, all in such order
as Beneficiary may determine. The entering upon and taking possession of the Property, the
collection of such rents, issues and profits and the application thereof, as aforesaid, shall not cure
or waive any Event or Default or notice of Event of Default hereunder or invalidate any act done
in response to such Event of Default or pursuant to such notice of Event of Default and,
notwithstanding the continuance in possession of the Property or the collection, receipt and
application of rents, issues or profits, Beneficiary shall be entitled to exercise every right
provided for in this Deed of Trust, the Agreement or by law upon occurrence of any Event of
Default including the right to exercise the power of sale. Trustor requests that a copy of any
notice of default and a copy of any Notice of Sale hereunder be mailed to Trustor at the address
herein given;
(b) Commence an action to foreclose this Deed of Trust as a mortgage, appoint a receiver
or specifically enforce any of the covenants hereof;
(c) Deliver to Trustee a written declaration of default and demand for sale, and a written
notice of default and election to cause Trustor's interest in the property to be sold, which notice
Trustee or Beneficiary shall cause to be duly filed for recording in the Official Records of the
County in which the Property is located; or
(d) Exercise all other rights and remedies provided herein, in the instruments by which
the Trustor acquires title to the Property, including any Security, or in any other document or
agreement now or hereafter evidencing, creating or securing all or any portion of the obligations
secured hereby, or provided by law.
4. Foreclosure by Power of Sale. Should the Beneficiary elect to foreclose by exercise of
the power of sale herein contained, the Beneficiary shall notify Trustee and shall deposit with
Trustee this Deed of Trust which is secured hereby (and the deposit of which shall be deemed to
constitute evidence that the Note Amount is immediately due and payable), and such receipts and
evidence of any expenditures made that are additionally secured hereby as Trustee may require.
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i. Upon receipt of such notice from the Beneficiary, Trustee shall cause to be
recorded, published and delivered to Trustor such notice of default and
election to sell as then required by law and by this Deed of Trust. Trustee
shall, without demand on Trustor, after lapse of such time as may then be
required by law and after recordation of such notice of default and after
notice of sale having been given as required by law, sell the Property, at
the time and place of sale fixed by it in said notice of sale, either as a
whole or in separate lots or Property or items as Trustee shall deem
expedient and in such order as it may determine, at public auction to the
highest bidder, for cash in lawful money of the United States payable at
the time of sale. Trustee shall deliver to such purchaser or purchasers
thereof its good and sufficient deed or deeds conveying the property so
sold, but without any covenant or warrant, express or implied. The recitals
in such deed of any matters or facts shall be conclusive proof of the
truthfulness thereof. Any person, including, without limitation, Trustor,
Trustee or Beneficiary, may purchase at such sale, and Trustor hereby
covenants to warrant and defend the title of such purchase or purchases.
ii. After deducting all reasonable costs, fees and expenses of Trustee,
including costs of evidence of title in connection with such sale, Trustee
shall apply the proceeds of sale to payment of (i) the Note Amount;(ii) all
other sums then secured hereby; and (iii) the remainder, if any, to the
person or persons legally entitled thereto.
iii. Trustee may postpone sale of all or any portion of the Property by public
announcement at such time and place of sale, and from time to time
thereafter, and without further notice make such sale at the time fixed by
the last postponement, or may in its discretion, give a new notice of sale.
5. Receiver. If an Event of Default shall have occurred and be continuing, Beneficiary, as a
matter of right and without further notice to Trustor or anyone claiming under Security, and
without regard to the then value of the Property or the interest of Trustor therein, shall have the
right to apply to any court having jurisdiction to appoint a receive or receivers of the Security (or
a part thereof), and Trustor hereby irrevocably consents to such appointment and waives further
notice of any application therefor. Any such receiver or receivers shall have all the powers and
duties of receivers in like or similar cases, and all the powers and duties of Beneficiary in case of
entry as provided herein, and shall continue as such and exercise all such powers until the date of
confirmation of sale of the Property, unless such receivership is sooner terminated.
6. Remedies Cumulative. No right, power or remedy conferred upon or reserved to the
Beneficiary by this Deed of Trust is intended to be exclusive of any other right, power or
remedy, but each and every such right, power and remedy shall be cumulative and concurrent
and shall be in addition to any other right, power and remedy given hereunder or now or
hereafter existing at law or in equity.
7. No Waiver.
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a. No delay or omission of the Beneficiary to exercise any right, power or remedy
accruing upon any Default shall exhaust or impair any such right, power or remedy, or shall
be construed to be a waiver of any such Default or acquiescence therein; and every right,
power and remedy given by this Deed of Trust to the Beneficiary may be exercised from time
to time and as often as may be deemed expeditious by the Beneficiary. No consent or waiver,
expressed or implied, by the Beneficiary to or of any breach by the Trustor in the performance
of the obligations hereunder shall be deemed or construed to be a consent to or waiver of
obligations of the Trustor hereunder. Failure on the part of the Beneficiary to complain of any
act or failure to act or to declare an Event of Default, irrespective of how long such failure
continues, shall not constitute a waiver by the Beneficiary of its right hereunder or impair any
rights, powers or remedies consequent on any breach or Event of Default by the Trustor.
b. If the Beneficiary (i) grants forbearance or an extension of time for the payment of any
sums secured hereby, (ii) takes other or additional security or the payment of any sums
secured hereby, (iii) waives or does not exercise any right granted herein, (iv) releases any
part of the Security from the lien of this Deed of Trust, or otherwise changes any of the terms,
covenants, conditions or agreements of this Deed of Trust, (v) consents to the filing of any
map, plat or replat affecting the Security, (vi) consents to the granting of any easement or
other right affecting the Security, or (vii) makes or consents to any agreement subordinating
the lien hereof, any such act or omission shall not release, discharge, modify, change or affect
the original liability under this Deed of Trust, or any other obligation of the Trustor or any
subsequent purchaser of the Security or any part thereof, or any maker, co-signer, endorser,
surety or guarantor (unless expressly released); nor shall any such act or omission preclude
the Beneficiary from exercising any right, power, or privilege herein granted or intended to be
granted upon the occurrence of the Event of Default then made or of any subsequent Event of
Default, nor, except as otherwise expressly provided in an instrument or instruments executed
by the Beneficiary shall the lien of this Deed of Trust be altered thereby. In the event of the
sale or transfer by operation of law or otherwise of all or any part of the Property, the
Beneficiary, without notice, is hereby authorized and empowered to deal with any such
vendee or transferee with reference to the Security (or a part thereof) or the indebtedness
secured hereby, or with reference to any of the terms, covenants, conditions or agreements
hereof, as fully and to the same extent as it might deal with the Trustor and without in any
way releasing or discharging any liabilities, obligations or undertakings of the Trustor.
8. Suits to Protect the Security. The Beneficiary shall have power (upon ninety (90) days
notice to the Trustor) to (a) institute and maintain such suits and proceedings as it may deem
expedient to prevent any impairment of the Security (and the rights of the Beneficiary as secured
by this Deed of Trust) by any acts which may be unlawful or any violation of this Deed of Trust,
(b) preserve or protect its interest (as described, in this Deed of Trust) in the Security and in the
rents, issues, profits and revenues arising therefrom, and (c) restrain the enforcement of or
compliance with any legislation or other governmental enactment, rule or order that may be
unconstitutional or otherwise invalid, if the enforcement for compliance with such enactment,
rules or order would impair the security thereunder or be prejudicial to the interests of the
Beneficiary.
9. Trustee May File Proofs of Claim. In the case of any receivership, insolvency,
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bankruptcy, reorganization, arrangement, adjustment, composition or other proceedings affecting
the Trustor, its creditors or its property, the Beneficiary, to the extent permitted by law, shall be
entitled to file such proofs of claims and other documents as may be necessary or advisable in
order to have the claims of the Beneficiary allowed in such proceedings for the entire amount
due and payable by the Trustor under this Deed of Trust at the date of the institution of such
proceedings and for any additional amount which may become due and payable by the Trustor
hereunder after such date.
Article VIII. MISCELLANEOUS
1. Amendments. This instrument cannot be waived, changed, discharged or terminated
orally, but only by an instrument in writing signed by the party against whom enforcement of
any waiver, change, discharge or termination is sought.
2. Reconveyance by Trustee. Upon written request of Beneficiary stating that all sums
secured hereby have been paid, and upon surrender of this Deed of Trust to Trustee for
cancellation and retention, and upon payment by Trustor of Trustee's reasonable fees, Trustee
shall reconvey to Trustor, or to the person or persons legally entitled thereto, without warranty,
any portion of the Property then held hereunder. The recitals in such reconveyance of any
matters or facts shall be conclusive proof of the truthfulness thereof. The grantee in any
reconveyance may be described as "the person or persons legally entitled thereto." The
Beneficiary may provide the Trustee with instructions allowing partial reconveyance of the Deed
of Trust if requested by Trustor.
3. Notices. Whenever Beneficiary, Trustor or Trustee shall desire to give or serve any
notice, demand, request or other communication with respect to this Deed of Trust, each such
notice, demand, request or other communication shall be in writing and shall be effective only if
the same is delivered by personal service or mailed by registered or certified mail, postage
prepaid, return receipts requested, or by telecopier or facsimile transmission, addressed to the
address set forth below. Any party may at any time change its address for such notices by
delivering or mailing to the other parties hereto, as aforesaid, a notice of such change.
To Beneficiary: City of Santa Ana
Housing Division
20 Civic Center Plaza, M-37
Santa Ana, California 92701
Attention: Deputy City Manager of Development Services
4. Acceptance by Trustee. Trustee accepts this Trust when this Deed of Trust, duly
executed and acknowledged, is made a public record as provided by law.
5. Captions. The captions or headings at the beginning of each section hereof are for the
convenience of the parties and are not a part of this Deed of Trust.
b. Invalidity of Certain Provisions. Every provision of this Deed of Trust is intended to be
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severable. In the event any term or provision hereof is declared to be illegal or invalid for any
reason whatsoever by a court of competent jurisdiction, such illegality or invalidity shall not
affect the balance of the terms and provisions hereof, which terms and provisions shall remain
binding and enforceable. If the lien of this Deed of Trust is invalid or unenforceable as to any
part of the debt, or if the lien is invalid or unenforceable as to any part of the Security, the
unsecured or partially secured portion of the debt, and all payments made on the debt, whether
voluntary or under foreclosure or other enforcement action or procedure, shall be considered to
have been first paid on and applied to the full payment of that portion of the debt which is not
secured or partially secured by the lien of this Deed of Trust.
7. No Merger. If title to the Property shall become vested in the Beneficiary, this Deed of
Trust and the lien created hereby shall not be destroyed or terminated by application of the
doctrine of merger and, in such event, Beneficiary shall continue to have and enjoy all of the
rights and privileges of Beneficiary under this Deed of Trust. In addition, upon foreclosure
under this Deed of Trust pursuant to the provisions hereof, any leases or subleases then existing
and affecting all or any portion of the Security shall not be destroyed or terminated by
application of the law of merger or as a matter of law or as a result of such foreclosure unless
Beneficiary or any purchaser at any such foreclosure shall so elect. No act by or on behalf of
Beneficiary or any such purchaser shall constitute a termination of any lease or sublease unless
Beneficiary or such purchaser shall give written notice of termination to such tenant or
subtenant.
8. Acceptance of Terms by Owner. By acceptance of this Deed of Trust, the Trustor
accepts and agrees to be bound by all of the covenants and restrictions included herein.
9. Governing Law. This Deed of Trust shall be governed by and construed in accordance
with the laws of the State of California.
10. Non-Discrimination. Trustor herein covenants by and for itself, its successors and
assigns, that there shall be no discrimination against or segregation of, any person or group of
persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the
Government Code, as those bases are defined in Sections 12926, 12926. 1, subdivision (m) and
paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code,
in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises herein
conveyed, nor shall the grantee or any person claiming under or through him or her, establish or
permit any practice or practices of discrimination or segregation with reference to the selection,
location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the
premises herein conveyed.
IN WITNESS WHEREOF, Trustor has executed this Deed of Trust as of the date and year first
above written.
By:
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EXHIBIT A
LEGAL DESCRIPTION
Real property in the City of Santa Ana, County of Orange, State of California, described as follows:
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ATTACHMENT 6
ADDITIONAL INSURED ENDORSEMENT
Insurance Company
This endorsement modifies such insurance as is afforded by the provisions of Policy
# relating to the following:
1. The City of Santa Ana, 20 Civic Center Plaza, Santa Ana, California,
92701; its officers, employees, agents and volunteers are named as additional insureds
("additional insureds") with regard to liability and defense of suits arising from the
operations and uses performed by or on behalf of the named insured.
2. With respect to claims arising out of the operations and uses performed by
or on behalf of the named insured, such insurance as is afforded by this policy is primary
and is not additional to or contributing with any other insurance carried by or for the
benefit of the additional insureds.
3. This insurance applies separately to each insured against whom claim is
made or suit is brought except with respect to the company's limits of liability. The
inclusion of any person or organization as an insured shall not affect any right which such
person or organization would have as a claimant if not so included.
4. With respect to the additional insureds, this insurance shall not be
canceled, or materially reduced in coverage or limits except after thirty (30) days written
notice has been given to the Community Redevelopment Agency of the City of Santa
Ana, 20 Civic Center Plaza, Santa Ana, CA 92701.
(Completion of the following, including countersignature, is required to make this
endorsement effective.)
Effective , this endorsement form as a part of
Policy #
Issued to
Named Insured
Countersigned by
Authorized Representative
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20A-86
ATTACHMENT 7
SAMPLE DEVELOPMENT BUDGET
ITEM COST/PRICE FUNDING FUNDING SOURCE: FUNDING
SOURCE:NSP3 SOURCE:
DEVELOPER/EQUITY OTHER
PARTNER
A. PURCHASE PRICE $200,000
B. REHAB COST
EXCLUSIVE OF
CONTRACTOR PROFIT AND
OVERHEAD (USE
ATTACHED WORKSHEET)
C. CONTRACTOR PROFIT
AND OVERHEAD (USE
ATTACHED WORKSHEET)
D. MARKETING AND SALES
COSTS (3 MONTHS)
E. ADMINISTRATION AND
OVERHEAD (3 MONTHS)
F. ENVIRONMENTAL (LEAD
AND ASBESTOS TESTS,
BOTH PRESENCE AND
CLEARANCE)
G. OTHER INTERIM
DEVELOPMENT COSTS
H. TOTAL DEVELOPMENT
COSTS (A THRU G)
1. SALES PRICE $250,000
J. DEVELOPER FEE
TOTALS (H PLUS J)
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20A-87
SAMPLE WORK WRITE-UP COMPLETE FOR NSP3 APPLICATION
GENERAL DESCRIPTION OF PROPERTY
DWELLING TYPE: Single Family ROOF: Comp. Shingle
Number of Stories: One EXTERIOR WALLS: Stucco
Year Built: 1946 GARAGE: Detached, Single-Car
Total SF: 1100
Bedrooms: 3 Bathrooms: 1
Bathrooms: 1 Total Rooms: 5
OVERALL CONDITION
SITE ? Good ® Fair ? Poor
DWELLING EXT. ? Good ® Fair ? Poor
DWELLING INT. ? Good ® Fair ? Poor
WORK ITEM CATEGORIES
CATEGORY A
Rehabilitation work needed to correct code violations, health and life safety deficiencies, and fire
hazards.
Work items in this category are required.
CATEGORY B
Rehabilitation work needed to correct conditions that will most likely develop into code
violations, life safety deficiencies and hazards, if left alone. Work items in this category are
generally required.
CATEGORY C
Rehabilitation work that will enhance the livability of the property and ensure that it is in a readily
maintainable condition.
All work will comply with these General Requirements. The General Contractor is
responsible for making sure that their sub-contractors and laborers understand and
comply with these General Requirements.
1. CONTRACTOR will perform all work in accordance with all applicable codes, laws,
regulations and requirements (federal, state and local).
2. CONTRACTOR will obtain all required permits and pay all related permit fees.
3. CONTRACTOR will furnish all labor, material, equipment, tools and supervision to
complete the work.
4. CONTRACTOR will protect all surrounding material, equipment and furnishings from
damage during construction. CONTRACTOR will (at their own time and expense) repair
and/or replace any materials, equipment and furnishings that they damage.
5. CONTRACTOR will remove and dispose of all construction related debris and maintain
the job site in a clean and safe condition at all times.
6. CONTRACTOR will provide the owner with all warranty and product information.
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20A-88
ITEM # 1
RE-ROOF
Priori Code A
Location Entire Dwelling & Attached Garage
Condition Deteriorated
Existing Roof
Gable, 5:12 Pitch, 18 Roofing Squares, 1 Layer Asphalt Shingles Over Original Wood Shingles,
Spaced Sheathing
CONTRACTOR will provide all labor and material to:
• Remove and dispose of all the existing layers of roofing, exposing the spaced sheathing
for inspection.
• Install 1/2" CDX plywood sheathing.
• Install a new composition shingle roof (30-Year GAF Timberline).
Note
For the purpose of this exercise, assume that no other repair work will be needed and that the
replacement of all roofing metals and flashing will be handled by a change order.
Total Cost (This Item)
Permits, fees, material, labor and supervision
Overhead and profit
$
Total
ITEM # 2
EXTERIOR DOOR AND HARDWARE
Priority Code A
Location Front Ent to Dwelling
Condition Deteriorated
Existing Door
36" Luan, Solid Core, 36" X 80" X 1 Thick
CONTRACTOR will provide all labor and material to:
• Remove and dispose of the existing door, threshold and all hardware.
• Install a new solid core entry door (Allowance for door is $450.00).
• Install a new lockset, dead-bolt, hinges and peep-sight (Allowance for hardware is
$275.00).
• Prime and paint the door
Note
For the purpose of this exercise, assume that no other repairs will be needed.
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20A-89
Total Cost (This Item):
Permits, fees, material, labor and supervision.
$
Overhead and profit
Total
ITEM # 3
SOD AND SPRINKLER IRRIGATION SYSTEM
Priori Code B
Location Rear Yard - 900 S.F.
Condition Existing Lawn is dead. Bare earth. Nosprinkler system exists.
CONTRACTOR will provide all labor and material to:
• Remove and dispose of the existing dead lawn and weeds.
• Till and prepare the soil in accordance with the recommendation of the nursery providing
the sod.
• Install a new automatic sprinkler irrigation system with a weather based controller (Rain
Bird).
• Install a new sod lawn (Marathon II).
• Item includes maintenance of the sod for a period of two weeks.
Total Cost (This Item)
Permits, fees, material, labor and supervision
Overhead and profit
Total
ITEM # 4
FORCED-AIR GAS-FIRED FURNACE
Priori Code A
Location Garage
Condition Inoperable Forced-Air Gas-Fired Furnace
CONTRACTOR will provide all labor and material to:
• Remove and dispose of the existing furnace.
• Install a new forced air furnace. Material allowance is $1,900. Energy Star qualified
model, reputable manufacturer, 80,000 BTU)
• Install a new programmable thermostat. Material allowance is $95.00. Energy Star
qualified model, reputable manufacturer.
H:\NSP\NSP - 3\RFP for Intermediaries\Sample Development Budget (R).docx
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Note
For the purpose of this exercise, include the installation of a new chimney pipe and fittings, but
assume that we will use the existing duct runs.
Total Cost (This Item)
Permits, fees, material, labor and supervision.
$
Overhead and profit
Total
ITEM # 5
WATER HEATER
Priori Code A
Location Garage
Condition Rusted / Aged / 40 Gallon Tank Gas Fired
CONTRACTOR will provide all labor and material to:
• Remove and dispose of the existing water heater.
• Install a new tank-less water (Rinnai, Model R94LS1).
• Install a new programmable thermostat. Material allowance is $95.00. Energy Star
qualified model, reputable manufacturer.
Total Cost (This Item)
Permits, fees, material, labor and supervision.
Overhead and profit
Total
ITEM # 6
REPLACE WINDOW
Priori Code A
Location Master Bedroom
Condition Deteriorated / Inoperable / No Screen
Existing Window
3046 Wood Frame (Single-Hung)
CONTRACTOR will provide all labor and material to:
• Remove and dispose of the existing window preserving the frame.
• Install a new single-hung retrofit vinyl window (Manufactured by Milgard, Energy Star
qualified, dual glazed with venting screen).
H:\NSP\NSP - 3\RFP for Intermediaries\Sample Development Budget (R).docx
20A-91
Total Cost (This Item):
Permits, fees, material, labor and supervision.
Overhead and profit
Total
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