I.

ADMINISTERING DEPARTMENT
The term Administering Department as used in this Agreement shall refer to the Housing
and Community Development Department.

II.

DATES OF COMMENCEMENT AND COMPLETION

The work to be performed under this Agreement shall be commenced by November 1,
2012, and shall be completed not later than April 30, 2014.

III.

AGREEMENT DOCUMENTS AND PROVISIONS

Subgrantee will perfom the work under this Agreement in the manner and time provided
herein and in accordance with the scope of services and budget attached hereto as
Attachments A, B and C and, all the related documents and provisions attached hereto as
Exhibit(s) A(S), B, and C, incorporated herein by reference.

IV.

GRANT AMOUNT
The total amount to be paid to the Subgrantee by the City shall in no event exceed the
sum of ONE MILLION ONE HUNDRED AND FIFTY THOUSAND DOLLARS
($1,150,000), broken down as follows: ONE MILLION ONE HUNDRED THOUSAND
DOLLARS ($1,100,000) from NSP and/or CDBG funds and FIFTY THOUSAND
DOLLARS ($50,000) from City of Oakland foreclosed properties penalty funds. The
release of NSP funds will be subject to approval by HUD of the Citys NSP Substantial
Amendment; and the release of all funds shall be conditional upon Subgrantee
satisfactorily meeting the performance standards agreed to with the City, including
submission of timely, accurate and complete monthly monitoring reports and payment
requisitions, as well as compliance with programmatic and fiscal monitoring
requirements.

b. Develop curriculum for ongoing financial coaching to participants

over two year period.
c. CHDC will provide post-purchase financial counseling and
coaching sessions to support program participants to successfully
retain their homes. All ROOT homeowners will be required to
participate in financial coaching. In the first year coaching will be
monthly and may become quarterly at the counselors discretion.
9. Manage ROOT Revolving Loan Fund: CHDC, working with LISC and
Enterprise, will identify and assemble the capital necessary to continue ROOT
beyond the properties initially financed with the City of Oaklands grant.
Program income generated from the sale of mortgages will be deposited in an
account that CHDC has direct access to carry out ROOT program operations as
described in this scope of work.
The following program functions are contemplated:
a. ROOT Program Life Cycle City funds will revolve with the ROOT
program for the life of the agreement and will maintain the same
requirements that the original City funds had no additional requirements
will be added. The Citys funds shall only be used within the City of
Oakland.
b. The City will provide City funds to CHDC at 0% interest. The City will
only have recourse to properties and mortgage notes funded by City funds.
c. CHDC shall follow all NSP guidelines when utilizing NSP funds to
acquire property.
d. For the initial pilot the City's funds will be used by CHDC to fund the
homebuyer mortgages and loan loss reserves as applicable.
e. CHDC sells the home back to the homeowner and provides a new
mortgage (30 year, fixed). The new mortgage shall be funded by City
funds (acquisition loan is repaid).
f. After a mortgage is seasoned, One Pacific Bank or other financial partner
will purchase the mortgage. City funds cycled out of this mortgage and
into Loan Loss Reserve (LLR). LLR provides a cushion against loan
defaults and potential losses from the liquidation of collateral. A 20%
reserve is assumed, the actual level will be negotiated with One Pacific.
The expectation is that $1 million in Loan Loss Reserve funds would
support up to $5 million in a combination of Short-term and Interim
financing. Once a mortgage has seasoned under the Interim period (up to 5
years) with good repayment performance, secondary market buyers and/or
programs should be available to purchase the assets. In addition, the credit
worthiness of the homeowners will dramatically improve as they establish
A-6

a mortgage repayment history, making them eligible to refinance into

other mortgage programs.
g. After additional seasoning for secondary market, up to 36 months, the
mortgage is sold to secondary market or the homeowner refinances and
pays off the mortgage (One Pacific's capital is recycled). If a secondary
market is not available and the homeowner is unable to refinance, then a
portion of the City NSP, CDBG or other funds would be utilized to
purchase the mortgages from One Pacific
h. The program income generated by the ROOT program will be considered
the amount remaining after other debt related to properties and program
delivery costs are paid (proceeds other debt program delivery =
program income).
i. First Right of Refusal Deed Restriction Subgrantee will work with
lenders, funders, and other relevant parties to include a first right of refusal
deed restriction that provides for the following:
i. that for a period of 3 years Subgrantee will be given an opportunity
to make an offer on any ROOT program property that is sold.
ii. Subgrantee will have 30 days to exercise their first right of
refusal by making a fair market value offer on the property and
will have 90 days to complete the purchase of said property.
iii. The first right of refusal deed restriction will not convey after one
completed sale.
Anticipated terms are contained in the attached Sample ROOT Transaction and Buyer/Owner
Qualification documents.
10. The Subgrantee will participate in regular meetings of the service providers and
engage in regular communications with the City and all project partners, as
necessary, to ensure efficient and strategic coordination of activities under the
Citys foreclosure prevention and mitigation strategic plan. In addition, the
Subgrantee will prioritize referrals from the Citys escalation team as part of the
Citys overall comprehensive foreclosure prevention and mitigation plan, in line
with Federal Fair Housing laws and regulations.

E.

Clients To Be Served
1.

Number
5 Households served by City funds
15-20 served by leveraged funds
330 Indirectly served through outreach.

A-7

ROOT Performance Measures Worksheet (2)

ATTACHMENT B

Agency Name: Community Housing Development Corporation

Reporting for month of _____________ Date__________
Project Title: ROOT -- Restoring Ownership Opportunities Together
Program Component: Housing_____ Economic Development _____ Public Services ____ Neighborhood Improvements ____
Goal:
#
Clients
To Be
Served
Measurement
Tools
Process Objective #1
Conduct start up activities for ROOT program and steps for a permanent program.
Outcome Objective #1a
Memorandum of Understanding with counseling agencies
Outcome Objective #1b
Lead ROOT team
Outcome Objective #1c
Outcome Objective #1d

Memorandum of Understanding with bank for purchase of

ROOT mortgages
Create Revolving Loan Fund

Methods
Source of
Data

# MOUs
Agreements
Team Meetings Copies of
Agendas
# MOUs
Agreements
Fund Created

Process Objective #2
Conduct due diligence to select 20-25 Oakland properties in Census tracts with scores of 17 or more
Outcome Objective #2a
Select properties, inspect, rehab scope if needed
# Properties
Inspected
Outcome Objective #2b
Loans Purchased
# Loans
Purchased
Process Objective #3
CHDC will coordinate with the City of Oakland to ensure properties in disrepair are brought up to
Outcome Objective #3a
Rehab Applications
# Applications
submitted
Process Objective #4
Coordinate outreach activities to enlist qualified Oakland homeowners into the program with
Outcome Objective #4a
Work in partnership with HUD approved counseling agencies # of Client data
and advocacy groups
received from
HCA's
Outcome Objective #4b
Candidate Screening: clients referred to CHDCs Foreclosure # of Clients
Intervention counseling program
with no HCA
Outcome Objective #4c
Paying HUD approved counseling agencies for complete
# of Complete
applications
applications
Outcome Objective #4d
Screen homeowners for participation in ROOT.
# of potential
ROOT clients

Agreements
with banks

Inspection
reports
Purchase
Agreements

NHRP
applications

HCA's

CHDC
CHDC
CHDC
screending
tool

Processing
of Data

ROOT Performance Measures Worksheet (2)

ATTACHMENT B

Agency Name: Community Housing Development Corporation

Reporting for month of _____________ Date__________
Project Title: ROOT -- Restoring Ownership Opportunities Together
Program Component: Housing_____ Economic Development _____ Public Services ____ Neighborhood Improvements ____
Goal:
#
Clients
To Be
Served
Measurement
Tools

Methods
Source of
Data

Process Objective #5
Service all mortgages including escrow accounts created to fund minor repairs necessary to address # of Mortgages CHDC
being serviced servicing
health, safety and code issues.
for ROOT
agreement
Process Objective #6
Outcome Objective #6a

Outcome Objective #6b

Act as Real Estate Broker

Open double escrows on properties as necessary

CHDC determines current value of property and negotiates

with servicer/lender to purchase.

# of Escrows
opened

Title company
documents

# of Purchase
agreements

CHDC

# of ROOT
loan apps

CHDC

# of ROOT
clients in
coaching

CHDC
coaching
sessions

# of loans
cycled out of
ROOT

CHDC
servicing
agreement

Process Objective #7
Act as a Mortgage Lender
CHDC will process and underwrite all potential ROOT loans
Process Objective #8
Provide comprehensive housing counseling and coaching that includes financial and budget
Outcome Objective #8a
CHDC will provide post-purchase financial counseling and
coaching sessions to support program participants to
successfully retain their homes.
Process Objective #9
ROOT Program Life Cycle NSP funds will revolve with the ROOT program for the life of the
Outcome Objective #9a
After additional seasoning for secondary market, up to 36
months, the mortgage is sold to secondary market or the
homeowner refinances and pays off the mortgage (capital is
recycled).
Outcome Objective #9b
First Right of Refusal Deed Restriction for a period of 3
years Subgrantee will be given an opportunity to make an
offer on any ROOT program property that is sold

# of offers
CHDC real
made by CHDC estate arm
for ROOT
properties

Processing
of Data

ROOT Performance Measures Worksheet (2)

ATTACHMENT B

Agency Name: Community Housing Development Corporation

Reporting for month of _____________ Date__________
Project Title: ROOT -- Restoring Ownership Opportunities Together
Program Component: Housing_____ Economic Development _____ Public Services ____ Neighborhood Improvements ____
Goal:
#
Clients
To Be
Served
Measurement
Tools

Methods
Source of
Data

Process Objective #10

The Subgrantee will participate in regular meetings of the service providers and engage in regular # of Lender and CHDC and
communications with the City and all project partners, as necessary, to ensure efficient and strategic City meetings City partners
for ROOT
coordination of activities under the Citys foreclosure prevention and mitigation strategic plan.
Outcome Objective #10a

In addition, the Subgrantee will prioritize referrals from the

# of referrals
Citys escalation team as part of the Citys overall
from the City
comprehensive foreclosure prevention and mitigation plan, in
line with Federal Fair Housing laws and regulations.

CHDC and
City
escalation
team

Processing
of Data