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Extracted from Consolidated Report
This investigation was originally published as part of a larger consolidated report containing multiple investigations. View the consolidated PDF for the complete document.
San Bernardino County Grand Jury
• 2011-2012
City of San Bernardino, Economic Development Agency, Neighborhood Stabilization Program
⚠️ Translation Notice: This content has been automatically translated. The original English text is the official version. Translation may contain errors.
⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
Findings and Recommendations 4 findings
F1
Page 17
The Agency does not provide sufficient oversight of the Intermediary’s resale process. There were numerous cases where the properties were listed in the MLS at the point when the Intermediary assumed the rehabilitation project and a “For Sale” sign was posted on the property prior to the SFR being ready for resale. This enhanced the notoriety of the agent, solely, not the NSP program. Although receiving profit as the listing agent and selling agent is not illegal, perhaps within the parameters of a federal program, the activity should not be allowed.
Related Recommendations (4)
R12-02
Page 18
Provide more intensive monitoring of the activities of the intermediaries, and in the future, the CHDO, during the rehabilitation resale process so that the use of the MLS is not used to convey status of the properties that is incorrect and further, not to discourage the involvement of other agents. (Findings 1, 2)
R12-03
Page 18
Prohibit properties from being placed into the MLS without a written agreement with the Agency, and not until such time as the property has been appraised, has fair market value established, and is ready for sale. (Findings 1, 2, 4)
R12-04
Page 18
Prohibit real estate agents from placing the properties into the MLS in a “hold-do- not-show” status. This has the de-facto effect of depressing advertisement and/or widespread exposure of the property. (Findings 1 - 4)
R12-06
Page 18
Provide training and/or instruction to all persons, intermediaries or CHDO, that will be involved in implementation of the NSP program. This instruction should extend beyond the construction/resale requirements to the NSP intrinsic principles. All efforts are to focus on reaching the greatest number of possible qualified homebuyers, while improving the quality of life for both the persons becoming a part of the neighborhood and those who are existing members of the neighborhood. (Findings 1 - 4)
F2
Page 17
The Agency allows the properties to be listed in the MLS in a status of “hold-do-not- show” for a lengthy period of time during the rehabilitation process. This discouraged agents/subscribers of the MLS and inhibited a more extensive marketing effort for eligible qualified buyers.
Related Recommendations (2)
R12-04
Page 18
Prohibit real estate agents from placing the properties into the MLS in a “hold-do- not-show” status. This has the de-facto effect of depressing advertisement and/or widespread exposure of the property. (Findings 1 - 4)
R12-06
Page 18
Provide training and/or instruction to all persons, intermediaries or CHDO, that will be involved in implementation of the NSP program. This instruction should extend beyond the construction/resale requirements to the NSP intrinsic principles. All efforts are to focus on reaching the greatest number of possible qualified homebuyers, while improving the quality of life for both the persons becoming a part of the neighborhood and those who are existing members of the neighborhood. (Findings 1 - 4)
F3
Page 17
The Agency provides an insufficient level of training and instruction to the intermediaries and their respective real estate agents. An emphasis on the need to use the Affirmative Marketing Principles to “identify persons in the housing market who are not likely to apply for housing without special outreach” is lacking.
Related Recommendations (3)
R12-04
Page 18
Prohibit real estate agents from placing the properties into the MLS in a “hold-do- not-show” status. This has the de-facto effect of depressing advertisement and/or widespread exposure of the property. (Findings 1 - 4)
R12-05
Page 18
Provide sufficient training and instruction to intermediaries and their real estate agents on the use of the Affirmative Marketing Principles so that a wider variety of qualified buyers can be identified. (Finding 3)
R12-06
Page 18
Provide training and/or instruction to all persons, intermediaries or CHDO, that will be involved in implementation of the NSP program. This instruction should extend beyond the construction/resale requirements to the NSP intrinsic principles. All efforts are to focus on reaching the greatest number of possible qualified homebuyers, while improving the quality of life for both the persons becoming a part of the neighborhood and those who are existing members of the neighborhood. (Findings 1 - 4)
F4
Page 17
The Agency provides an insufficient level of training and/or instruction to the intermediaries and their staff on the NSP program beyond the construction/re-sale requirements. There is a lack of distinction placed on the purposes of increasing homeownership to those who may not know that they can achieve such status. This federal program is more than just the business as usual of rehabilitating homes and selling. 6 2011‐2012 San Bernardino County Grand Jury Final Report COMMENDATION The Agency is to be commended for its programmatic focus of the NSP funds/projects to neighborhoods (specific streets in high crime areas and number of vacant SFR) which, as a consequence of the rehabilitation, resulted in an improved quality of life to the neighborhood inhabitants. The Grand Jury applauds the decision of the Agency in using the HUD vetted CHDO in the implementation of the next stage of NSP3, the ‘Local Street Reform and Protection.’
Related Recommendations (2)
R12-04
Page 18
Prohibit real estate agents from placing the properties into the MLS in a “hold-do- not-show” status. This has the de-facto effect of depressing advertisement and/or widespread exposure of the property. (Findings 1 - 4)
R12-06
Page 18
Provide training and/or instruction to all persons, intermediaries or CHDO, that will be involved in implementation of the NSP program. This instruction should extend beyond the construction/resale requirements to the NSP intrinsic principles. All efforts are to focus on reaching the greatest number of possible qualified homebuyers, while improving the quality of life for both the persons becoming a part of the neighborhood and those who are existing members of the neighborhood. (Findings 1 - 4)