HomeMy WebLinkAboutContract 37232 CITY S CRETARY
CONTRACT NO
AGREEMENT WITH FORT WORTH HOUSING AUTHORITY CONCERNING THE
HOUSING CHOICE VOUCHER HOMEOWNERSHIP PROGRAM
This Agreement (Agreement") concerning the Housing Choice Voucher Homeownership
Program ("HCVHP") is between the City of Fort Worth ("Fort Worth"), a home rule municipal
corporation organized under the laws of the State of Texas, acting by and through its duly
authorized Assistant City Manager, and the Housing Authority of the City of Fort Worth, d/b/a/
the Fort Worth Housing Authority ("FWHA"), a Texas municipal housing authority, acting by
and through its duly authorized Executive Director. (Sometimes Fort Worth and FWHA are
referred to individually as a"Party" and collectively as the "Parties").
RECITALS
Fort Worth and FWHA agree that the following statements are true and correct and constitute the
basis on which they have entered into this Agreement.
WHEREAS, Section 555 of the Quality Housing and Work Responsibility Act of 1998
("QHWRA") which amended the United States Housing Act of 1937, 42 U.S.C. 1437f(y)
permits the FWHA to create a homeownership option for Section 8 Housing Choice Voucher
("HCV") recipients;
WHEREAS, FWHA has created the HCVHP to convert certain eligible HCV recipients
into homeowners;
WHEREAS, the HCVHP requires applicant families to attend and satisfactorily
complete a pre-assistance homeownership training and housing counseling program;
WHEREAS, Fort Worth offers homeownership training, pre-purchase and post-closing
housing counseling and homebuyers" assistance programs which provide the types of service
needed to fulfill the HCVHP's requirements for pre-assistance counseling, including but not
limited to assistance in outreach and marketing of the HCVHP to HCV recipients, client
assessment, credit counseling, financial literacy counseling, homeownership training,
participation in the Home Buyers Club, post-closing counseling, lender training, real estate agent
training and down payment and/or closing cost assistance-for first time homebuyers;
WHEREAS, an Applicant is defined as a person who is currently receiving rental
assistance through the HCV program and has expressed an interest in participating in the
HCVHP;
WHEREAS, an Eligible Family is defined as an Applicant who has met the eligibility
requirements for the HCVHP, completed all required counseling services and received FWHA.
approval to pursue homeownership with the HCV;
WHEREAS, FWHA Housing Assistance Payment ("HAP") is defined as the lesser of 1)
the ayment standard minus the total tenant payment, or 2) the family's monthly homeownership
e - e otal tenant payment as determined by FWHA;
FWHA is promoting homeownership through the sale of its scattered sites
! r it2 '; �t6��qualified buyers "(Scattered Sites Program)";
06-19-08 P02: 30
HOUSING CHOICE VOUCHER HOMEOWNERSHIP PROGRAM AGREEMENT PAGE 1
2008-2009 Rev.June 10,2008
WHEREAS, Fort Worth provides training and counseling services for FWHA. clients in
the Scattered Sites Program as well as similar counseling services to HCVHP clients;
WHEREAS, increasing homeownership and providing affordable housing for all income
groups are among Fort Worth's housing policy goals and are affirmed in Fort Worth's
Comprehensive and Consolidated Plans.
NOW THEREFORE,the Parties agree as follows:
1. PURPOSE AND SCOPE.
The purpose of this Agreement is to set forth the terms and conditions under which Fort
Worth will provide FWHA with housing counseling and homebuyer assistance to Applicants and
Eligible Families in the HCVHP, clients in the Scattered Sites Program, and related services to
the FWHA.
2. TERM.
This Agreement shall commence on May 11, 2008 and will expire May 10, 2009 unless
terminated earlier in accordance with this Agreement. The Parties may renew this Agreement for
up to twelve (12) months by mutual written agreement. The Parties shall execute such renewals
no later than thirty(30) days prior to the expiration of the current term. In addition to termination
for default pursuant to Section 5, either Party may terminate this Agreement without cause upon
sixty (60) days' written notice to the other Party, and neither Party shall have any further
responsibility or liability hereunder except for services previously rendered and payment for the
same.
3. DUTIES OF THE PARTIES AND SERVICES PROVIDED.
3.1. FWHA and Fort Worth will:
a. Identify,recruit and establish a pool of mortgage lenders and real estate
agents participating in the HCVHP.
b. Maintain a marketing and training plan for mortgage lenders and real
estate agents.
C. Conduct orientation sessions with Applicants.
3.2 FWHA will:
a. Administer the HCVHP.
b. Develop and implement a marketing plan for HCV recipients,including
FWHA's Family Self-Sufficiency ("FSS") clients.
C. Revise written materials about the HCVHP as needed.
d. Determine each HCV recipient's eligibility to apply for HCVHP in
accordance with. FWHA's HCVHP Administrative Plan.
e. Refer Applicants to Fort Worth for pre-homeownership counseling.
f. Establish a Homebuyers Club for Applicants categorized as Long Term
lender-ready. Conduct quarterly meetings of the Homebuyers Club.
g. Issue HCVHP Certification of Eligibility and FWHA HAP voucher to an
HOUSING CHOICE VOUCHER HOMEOWNERSHIP PROGRAM AGREEMENT PAGE 2
2008-2009 Rev.June 10,2008
Applicant after completion of pre-homeownership counseling and after an
Applicant is deemed lender—ready. Upon receipt of the HCVHP
Certification of Eligibility and FWHA HAP voucher, an Applicant shall
be deemed to be an Eligible Family.
h. Complete housing quality standards ("HQS") inspections for Eligible
Families not receiving closing cost and down payment assistance through
Fort Worth's Homebuyers' Assistance Program ("FWHAP") and counsel
Eligible Families on the inspector's findings. For Eligible Families
receiving FWHAP, Fort Worth will complete the HQS inspections and
will counsel the Eligible Families on the inspector's findings.
i. Review the sales contract for the house to be acquired by an Eligible
Family.
j. Make FWHA HAP payments in the manner prescribed by a mortgage
lender either directly to an Eligible Family, directly to a mortgage lender,
or to a financial institution on which payments are drafted by a mortgage
lender.
k. Provide Fort Worth the following:
• A copy of the relevant FWHA policies and procedures currently in
place regarding the HCVHP and all future updates of such policies
and procedures.
• A copy of the current U.S. Department of Housing and Urban
Development ("HUD) regulations pertaining to the HCVHP, as
amended from time to time, including but not limited to those
regulations found at 24 C.F.R 982.1 et seq.
• A copy of the FWHA Administrative Plan for participation in the
HCVHP; and
• A list of Applicants who are current FSS participants and the
current balance of the participants' escrow accounts.
1. Determine each FWHA recipient's eligibility to participate in the Scattered
Sites Program.
3.3. Fort Worth will:
a. Obtain credit reports for Applicants at the Applicant's or FWHA's cost, as
the case may be.
b. Provide FWHA a copy of Fort Worth's Steps to Homeownership as
amended from time to time.
C. Provide each Applicant with an initial counseling session within two (2)
weeks after an orientation session that describes the counseling process
and the schedule of all necessary appointments.
d. Provide an assessment of each Applicant's qualification for the HCVHP
based on credit worthiness, employment, income history and any
compensating factors. Applicants will be categorized as follows:
• Fast Track-lender ready
• Short Term- lender ready in six(6)months or less
• Long Term-lender-ready in more than six(6)months
e. Provide a copy of the assessment, including category designation, to
FWHA and Applicants.
f. Provide each Applicant categorized as Fast Track or Short Term with 20-
HOUSING CHOICE VOUCHER HOMEOWNERSHIP PROGRAM AGREEMENT PAGE 3
2008-2009 Rev.June 10,2008
25 hours of pre-homeownership individual counseling, including an action
plan, and homeownership, training. Training/counseling shall include the
following activities/topics:
• Credit counseling.
• How to find a house to purchase, including information about
home ownership opportunities, schools, and public transportation
in the City of Fort Worth.
• Information on fair housing laws and regulations, including local
fair housing agencies.
• How to negotiate a purchase of a house.
• Information about the Real Estate Settlement Procedures Act, state
and federal truth-in-lending laws, and how to identify and avoid
loans with unfavorable and predatory terms and conditions.
• How to obtain homeownership financing and mortgage loan pre-
approvals, including a description of types of financing that may
be available and the advantages and disadvantages of different
types of financing.
• House maintenance (including care of the landscaping and energy
conservation).
• Budgeting and money management.
• Financial literacy in conjunction with the FSS program.
• FWIIAP or other similar programs offered by other agencies.
• Other information deemed appropriate by FWHA and Fort Worth.
g. Refer Applicants categorized as Long Term to the Homebuyers Club.
h. Conduct sessions for the Home Buyers Club;
i. Determine Applicant's readiness to apply for a mortgage loan.
j. Certify Applicant's completion of pre-homeownership counseling and
training. Submit a copy of certification to FWHA.
k. Work with each Eligible Family in the selection of a mortgage lender and
assist the Eligible Family in providing supporting documents requested by
the mortgage lender.
1. Work with each Eligible Family and its mortgage lender in resolving any
credit issues.
in. Assist Eligible Families in the selection of a real estate agent and in sales
contract negotiations. Review sales contract with the Eligible Family.
n. Provide FWHA and each Eligible Family's mortgage lender with a copy of
the final sales contract entered into with a seller.
o. Complete an HQS inspection for Eligible Families receiving closing cost
and down payment assistance through FWHAP and counsel Eligible
Families on HQS inspector's findings. For Eligible Families not receiving
FWHAP, FWHA will complete the HQS inspection and will counsel the
Eligible Families on the inspector's findings.
P. Assist Eligible Families in the selection of a licensed residential real estate
inspector and review the real estate inspector's findings with the Eligible
Families.
q. Provide continued assistance to Eligible Families through closing.
r. Provide supporting documents for FWHA HAP payments to mortgage
lenders.
S. Review Eligible Family's closing documents for accuracy to ensure that
HOUSING CHOICE VOUCHER HOMEOWNERSHIP PROGRAM AGREEMENT PAGE 4
2008-2009 Rev.June 10,2008
any down payment and other requirements have been met 'and appropriate
financing and information have been utilized by the mortgage lenders.
t. Provide FWHAP to Eligible Families if they qualify under FWHAP
guidelines.
U. Attend closing with Eligible Families, if requested by the Eligible
Families.
V. Provide copies of counseling and loan closing files to FWHA.
W. Conduct quarterly post-purchase counseling with Eligible Families for one
(1) year after loan closing.
X. Provide delinquency or foreclosure prevention counseling to Eligible
Families as needed.
Y. Provide FWHA with Monthly reports on the activities of all Applicants
and Eligible Families.
Z. Conduct orientation and provide counseling services to FWHA clients
participating in the Scattered Sites Program.
4. CONSIDERATION.
FWHA agrees to provide a grant up to, but not to exceed, $60,000.00 and Fort Worth
agrees to provide in-kind services valued up to $60,000.00 for the costs of the operation of the
pre-assistance and post-closing homeownership and housing counseling program for the HCVHP
as follows:
FWHA $60,000.00
Fort Worth(in kind services) $60,000.00
Total $120,000.00
FWHA shall pay its portion of the costs to Fort Worth, as follows: $15,000.00 on May
31, 2008; $15,000.00 on August 31, 2008; $15,000.00 on November 30, 2008 and $15,000.00 on
February 28, 2009. During any renewals of this Agreement, FWHA shall provide Fort Worth
with funds in accordance with the terms of any renewal agreement.
5. DEFAULT.
If either FWHA or Fort Worth fails, for any reason, to perform any provision or condition
of this Agreement, this Agreement may be terminated if the default continues for a period of
thirty (30) days after the notifying Party notifies the defaulting Party in writing of the default and
its intention to declare this Agreement terminated for cause. If the defaulting Party does not cure
or correct such breach within the thirty(30) day-period,the notifying Party shall have the right to
declare this Agreement immediately terminated, and neither Party shall have any further
responsibility or liability hereunder except for services previously rendered and payment for the
same.
6. GENERAL PROVISIONS.
6.1 Request for Information. FWHA and Fort Worth agree to provide each other
any information on Applicants and Eligible Families within two (2) business days
of the request.
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2008-2009 Rev.June 10,2008
6.2. No Waiver. The failure of either Party to insist upon the performance of any
provision or condition of this Agreement or to exercise any right granted herein
shall not constitute a waiver of that Party's right to insist upon appropriate
performance or to assert any, such right on any future occasion.
6.3. Separability. If any provision of this Agreement is held by a court of competent
jurisdiction to be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired.
6.4. Force Maieure. The Parties shall exercise their best efforts to meet their
respective duties and obligations hereunder, but shall not be held liable for any
delay in or omission of performance due to force majeure or other causes beyond
their reasonable control, including, but not limited to, compliance with any state
or federal law or regulation, acts of God, fires, strikes, lockouts,national disasters,
wars, riots, material or labor restrictions, transportation problems or existing
contractual obligations directly related to the subject matter of this Agreement.
6.5 Venue and Jurisdiction. This Agreement shall be construed in accordance with
the laws of the State of Texas. Venue for any action brought on the basis of this
Agreement shall lie exclusively in state courts located in Tarrant County, Texas.
In any such action, the prevailing party shall recover from the other all reasonable
attorneys' fees, court costs and other reasonable expenses incurred as a result of
the action.
6.6 Entirety of Agreement. This Agreement, including all Exhibits attached hereto
and any documents incorporated herein by reference, contains the entire
understanding and agreement between Fort Worth and FWHA as to the work and
services to be performed. Any prior or contemporaneous oral or written
agreement is hereby declared null and void to the extent in conflict with the
provisions of this Agreement.
6.7 Compliance with Laws, Ordinances, Rules and Regulations. This Agreement
is subject to all applicable federal, state and local laws, ordinances, rules and
regulations, including but not limited to all provisions of Fort Worth's charter.
6.8 Independent Contractors. Fort Worth shall operate hereunder as an independent
contractor and not as an officer, agent, servant or employee of FWHA. FWHA
shall operate hereunder as an independent contractor and not as an officer, agent,
servant, or employee of Fort Worth. Fort Worth shall have the exclusive control
of, and the exclusive right to control the work designated to be performed by Fort
Worth under the terms of this Agreement, and of all persons performing the same
and shall be solely responsible for the acts and omissions of its officers, members,
agents and employees. Neither Fort Worth nor FWHA shall be responsible under
the Doctrine of Respondent Superior for the acts or omissions of its officers,
members, agents, employees or officers of the other. No partnership or joint
venture is intended or formed between Fort Worth and FWHA by this Agreement.
6.9 Immunity and Third Parties. It is expressly agreed that, in the execution and
HOUSING CHOICE VOUCHER HOMEOWNERSHIP PROGRAM AGREEMENT PAGE 6
2008-2009 Rev.June 10,2008
performance of this Agreement, neither Fort Worth nor FWHA waives, nor shall
be deemed to -waive, any immunity or defense that would otherwise be available
to it against claims arising in the exercise of their respective powers and
functions. Nothing in this Agreement shall be construed to benefit any third party
other than an employee or officer of Fort Worth or FWHA while in the
performance of this Agreement. This Agreement may not be construed to expand
the liability of Fort Worth or FWHA beyond the scope of Chapter 101 of the
Texas Civil Practice and Remedies Code,Vernon's Texas Codes Annotated unless
specifically stated herein.
6.10 Amendment. No amendment, modification or alteration of this Agreement shall
be binding unless the same is in writing, dated subsequent to the date hereof and
executed by the Parties.
7. Notices.
All notices required by this Agreement shall be addressed to the Parties at the following
address, or at such other address as either Party designates in writing, by certified mail, postage
prepaid or hand delivery:
Fort Worth: Jerome C. Walker,Director
Fort Worth Housing Department
1000 Throckmorton St.
Fort Worth, TX 76102
FWHA: Barbara Holston,Executive Director
Fort Worth Housing Authority
1201 E. 136 Street
Fort Worth, TX 76102
[SIGNATURES APPEAR ON NEXT PAGE.]
HOUSING CHOICE VOUCHER HOMEOWNERSHIP PROGRAM AGREEMENT PAGE 7
2008-2009 Rev.June 10,2008
EXECUTED in multiple originals as of the last date indicated below:
CITY OF FO TSR FORT WORTH HOUSING AUTHORITY:
By: By: t� at&."
Joe P ag Barbara Holston
FirstiTssistant City Manager Executive Director
Date: / g Date:
AT T� _ ATTES
By: � U A By:
Marty Hendri , City Secret ry Se arstean Mitchell,
Director of Assisted Housing
Date:Tl m u
M& C•I—pj", q
APPRO D AS TO FO AND LEGALITY:
By: (� J, f42,,-
Vicki S. Ganske
Senior Assistant City Attorney
161)
HOUSING CHOICE VOUCHER HOMEOWNERSHIP PROGRAM AGREEMENT PAGE 8
2008-2009 Rev.June 10,2008
Page 1 of 2
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 6/10/2008 - Ord. No. 18136-06-2008
DATE: Tuesday, June 10, 2008
LOG NAME: 05FWHA2008 REFERENCE NO.: **C-22840
SUBJECT:
Accept Grant from the Fort Worth Housing Authority for $60,000 to Provide Housing Counseling
and Homeownership Training and Related Services, Execute Contract and Adopt Appropriation
Ordinance
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the City Manager to accept a grant of $60,000.00 from the Fort Worth Housing Authority to
provide housing counseling and homeownership training and related services to its Housing Choice
Voucher Homeownership Program from May 11, 2008, to May 10, 2009;
2. Authorize the City Manager to renew the existing contract with the Fort Worth Housing Authority for
$60,000.00 to provide housing counseling, homeownership training and related services to the Fort Worth
Housing Authority Housing Choice Voucher Homeownership Program for the period from May 11, 2008, to
May 10,2009;
3. Authorize the City Manager to amend, extend, or renew this contract in accordance with City of Fort
Worth policies and regulations upon mutual agreement with the Fort Worth Housing Authority; and
4. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Grants Fund by $60,000.00.
DISCUSSION:
The Fort Worth Housing Authority (FWHA) is allowed by the United States Department of Housing and
Urban Development (HUD) to implement Section 555 of the Quality Housing and Work Responsibility Act to
create a viable homeownership option for Section 8 Housing Choice Voucher recipients. Under the Housing
Choice Voucher Homeownership Program (HCVHP), Section 8 Housing Vouchers may be used to help
first-time homebuyers meet monthly mortgage and related housing payments and utility expenses.
Housing counseling and homeownership and post-purchase training are critical elements of the HCVHP.
The City's Housing Department is a HUD-certified counseling agency and has received other housing
counseling grants from HUD in the last six years. This year, the City received a $59,769.49 Comprehensive
Housing Counseling grant from HUD. The Housing Department also administers a Homebuyers' Assistance
Program that provides closing cost/down payment assistance and/or deferred payment loans to eligible
first-time homebuyers. These two City programs complement FWHA's HCVHP and the City's participation
in HCVHP in turn helps meet its housing counseling and homebuyers' assistance program goals set forth in
the City's Consolidated and Comprehensive Plans.
On September 19, 2006, the City Council authorized the City Manager to enter into a contract with the
FWHA (M&C C-21684) to provide the required counseling services and homeownership training for its
HCVHP. The City Manager was further authorized to amend, extend or renew the contract in accordance
with City policies and regulations upon mutual agreement with the FWHA. This contract, which expired on
May 10, 2008, must be renewed from May 11, 2008, to May 10, 2009, for $60,000 to be paid by the FWHA
http:HaW0P%&'W4i%2Fg17188gR _ et/Reports/mc_print.asp 6/17/2008
Page 2 of 2
The HCVHP is available in ALL COUNCIL DISTRICTS.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that upon approval of the above recommendations and adoption of the
attached appropriation ordinance, funds will be available in the current operating budget, as appropriated, of
the Grants Fund.
TO Fund/Account/Centers FROM Fund/Account/Centers
GR76 451343 005445286000 $60,000.00
GR76 5 $60,000.00
(VARIOUS) 005445286010
Submitted for City Manager's Office by: Joe Paniagua (6140)
Originating Department Head: Jerome Walker (7537)
Additional Information Contact: Benedict George (7339)
http://apps.cfwnet.org/council_packet/Reports/mc_print.asp 6/17/2008