HomeMy WebLinkAboutContract 55557CSC No. 55557
STATE OF TEXAS §
§
COUNTY OF TARRANT §
This contract ("Contract") is made and entered into by and between the City of Fort
Worth (hereafter "City") and Development Corporation of Tanant County (hereafter
"Developer"), a Texas nonprofit corporation. City and Developer may be referred to
individually as a"Party" and jointly as "the Parties".
The Parties state as follows:
WHEREAS, City has received a grant from the United States Department of Housing and
Urban Developinent ("HUD") through the HOME Investment Partnerships Program, Catalog of
Federal Domestic Assistance No. 14.239, with which City desires to promote activities that
expand the supply of affordable housing and the development of pat�tnerships among City, local
governments, lenders, private industry, and non-profit housing organizations;
WHEREAS, the primary puipose of the HOME prograin pursuant to the HOME
Investment Partnerships Act at Title II of the Cranston Gonzales National Affordable Housing
Act of 1990, as amended, 42 U.S.C. 12701 et seq. and the HOME Investment Partnerships
Program Final Rule, as amended, 24 CFR Pat-t 92 et sey. is to benefit low income citizens by
providing them with affordable housing;
WHEREAS, the HOME program provides that a minimurn of 15% of the City's HOME
allocation is to be set aside annually for use by qualified Community Housing Development
Organizations or CHDOs as owners, developers and/or sponsors of the development of
affordable housing;
WHEREAS, Developer is a Texas nonprofit corporation managed by a volunteer Board
of Directors working to increase the number of quality, accessible, and affordable ownership
housing units available to low and moderate income individuals and families and has fulfilled the
requirements of the HOME Program to be a CHDO;
WHEREAS, City has certified that Developer is a Community Housing Development
Organization and has specifically r•e-cei�tified Developer for the purposes of this Contract;
WHEREAS, Developer requested CHDO set-aside funds for an eligible project whereby
Developer will construct a single family house to be located at 2713 Ash Crescent Street, Fort
Worth, TX 76104 for sale to an eligible low- to moderate-income homebuyer;
WHEREAS, Developer has secured a commercial construction loan for a portion of the
construction costs of the house;
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Ash Crescent Singie Family In�ll Project
Development Corporation of Tarrant County — 2713 Ash Crescent Street Rev. 03/04/2021
WHEREAS, City citizens and the City Council have detei7nined that the development of
quality, accessible, affordable housing is needed for moderate-, low-, and very low-income City
citizens.
NOW, THEREFORE, in consideration of the mutual covenants and obligations and
responsibilities contained herein, including all Exhibits and Attachments, and subject to the
tei�rns and conditions hereinafter stated, the Parties understand and agree as follows:
1. INCORPORATION OF RECITALS.
City and Developer hereby agree that the recitals set forth above are ttue and correct and
form the basis upon which the Parties have entered into this Contract.
2. DEFINITIONS.
In addition to terms defined in the body of this Contract, the following tet�ns shall have
the definitions ascribed to them as follows:
Affordable House means a house purchased by a HOME Eligible Buyer for which the monthly
payment of principal, interest, propet�ty taxes, and hazard insurance is not more than 30% or less
than 20% of the homebuyer's monthly gross income. In the case of new house construction, the
percentage of the homebuyer's monthly gross income shall not exceed 32%.
Act means the HOME Investment Partnerships Act at Title II of the Cranston Gonzales National
Affordable Housing Act of 1990, as amended, 42 U.S.C. 12701 et seq.
Affordability Period means the period of time that a house purchased or conshucted with
HOME funds must remain affordable and subject to recapture provisions in 24 CFR Part 92.254
of the HOME Regulations.
The Affordability Period for the house constructed under this Cont��act is 5 years unless
otherwise required as set forth in Section 7.3.2. The Affordability Period begins on the
date the project status is changed to "complete" in IDIS.
Area Median Income or AMI means the median family income for the Fort Worth-Arlington
metropolitan statistical area as deter�rnined annually by HIJD.
Business Day means any day that City Hall is officially open for business.
Business Diversity Enterprise Ordinance or BDE means City's Business Diversity Ordinance,
Ordinance No. 20020-12-2011.
Community Housing Development Organization or CHDO means, as defined in 24 CFR 92.2
as amended from time to time, a private nonprofit organization, that:
(1) Is organized under State ar local laws;
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Ash Crescent Single Family Infill Project
Development Corporation of Tarrant CounTy — 2713 Ash Crescent Street Rev. 03/04/2021
(2) Has no part of its net eainings inm-ing to the benefit of any member, founder,
contributor, or individual;
(3) Is neither controlled by, nor under the direction of, individuals or entities seeking to
derive profit or gain from the organization. A CHDO may be sponsored or created by
a for-profit entity, but;
(i) The for-profit entity inay not be an entity whose primary purpose is the
development or management of housing, such as a builder, developer, or real
estate management firm;
(ii) The for-profit entity may not have the right to appoint more than one-third of
the membership of the organization's governing body. Board members
appointed by the for-profit entity may not appoint the remaining two-thirds of
the board members;
(iii) The CHDO must be free to contract for goods and setvices fiom vendors of
its own choosing; and
(iv) The officers and employees of the for-profit entity may not be officers or
employees of the CHDO,
(4) Has a tax exemption iuling from the Internal Revenue Seivice under section 501(c)
(3) or (4) of the Internal Revenue Code of 1986 (26 CFR 1.501(c)(3)-1) or
1.501(c)(4)-1)), is classified as a subordinate of a cennal organization non-profit
under section 905 of the Intei�al Revenue Code of 1986, or if the private nonprofit
organization is an wholly owned entity that is disregarded as an entity separate fiom
its owner for tax purposes (e.g., a single member limited liability company that is
wholly owned by an organization that qualifies as tax-exempt), the owner
organization has a tax exemption ruling from the Internal Revenue Service under
section 501(c)(3) or (4) of the Intei�al Revenue Code of 1986 and meets the
definition of a CHDO;
(5) Is not a governmental entity (including the participating jurisdiction, other
jurisdiction, Indian tribe, public housing authority, Indian housing authority, housing
finance agency, or redevelopment authority) and is not controlled by a goveintnental
entity. An organization that is created by a governmental entity may qualify as a
CHDO; however, the governmental entity may not have the right to appoint more
than one-third of the membership of the organization's govei�ning body and no more
than one-third of the boa.rd members may be public ofiicials or employees of the
governmental entity, Board members appointed by a governmental entity may not
appoint the remaining two-thirds of the board members. The officers or employees of
a govetnmental entity may not be officers or employees of a CHDO;
(6) Has standards of financial accountability that conform to 2 CFR Part 200.302,
`Financial Management' and 2 CFR Part 200.303, `Internal Controls;'
(7) Has among its puiposes the provision of decent housing that is affordable to low-
income and moderate-income persons, as evidenced in its charter, articles of
incorporation, resolutions, or by laws;
(8) Maintains accountability to low-income community residents by:
(i) Maintaining at least one-third of its governing board's membership for
residents of low-income neighborhoods, other low-income community
residents, or elected representative of low-income neighborhood
organizations. For urban areas, "community" may be a neighborhood or
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Ash Crescent Single Family Infill Project
Development Corporation of Tarrant County — 2713 Ash Crescent Street Rev. 03/04/2021
neighborhoods, city, county or met�opolitan area; for rural areas, it may be a
neighborhood or neighborhoods, town, village, county, or multi-county area
(but not the entire State); and
(ii) Providing a foimal process for low-income-program beneficiaries to advise
the organization in its decisions regarding the design, siting, development, and
management of affordable housing;
(9) Has a demonst�ated capacity for cai�rying out housing projects with HOME funds. A
designated organization undertalcing development activities as a developer or sponsor
must satisfy this requirement by having paid employees with housing development
expei•ience who will work on projects assisted with HOME funds. For its first year of
funding as a CHDO, an organization may satisfy this requirement through a conhact
with a consultant who has housing development experience to train appropriate lcey
staff of the organization. An organization that will own housing must demonstrate
capacity to act as owner of a project and meet the requirements of �92.300(a)(2). A
nonprofit organization does not ineet the test of demonstrated capacity based on any
person who is a volunteer or whose services are donated by another organization; and
(10) Has a histoiy of seiving the community within which housing to be assisted with
HOME funds is to be located. In general, an organization must be able to show one
year of seiving the community before HOME funds are reseived for the organization.
However, a newly created organization formed by local churches, service
organizations ar neighborhood organizations may meet this requirement by
deinonstrating that its parent organization has at least a year of serving the
community.
CHDO Proceeds means the net sales proceeds from the sale of the house to a HOME Eligible
Buyer which consist of the sales price less payment of (i) the Construction Loan, (ii) Developer
Fee and (iii) any common and customary seller's closing costs shown on the seller's Closing
Disclosure as approved by City, or as otherwise defined in the HOME Regulations.
Complete Documentation means the following documentation as applicable:
Attachments I and II of Exhibit "F" — Reimbursement Forms, with suppoi�ting
documentation as follows:
o Proof of expense: copies of tiinesheets, invoices, leases, seivice contracts
or other documentation showing that payment is due by Developer.
o Proof of payment: cancelled checks, bank statements, or wire transfers
necessat•y to demonst�•ate that amounts due by Developer were actually
paid by Developer.
• Other documentation: (i) final lien releases signed by the general contractor or
subcont�actors, if applicable; (ii) copies of all City pei7nits and City-issued "pass"
inspections for such work; (iii) documentation showing compliance with BDE or
DBE bidding process for procurement or Cont��act activities, if applicable; (iv)
proof of contractor, subcontractor or vendor eligibility as described in Section 6.6;
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Ash Crescent Single Family In�ll Project
Development Corporation of Tarrant CounTy — 2713 Ash Crescent Street Rev. 03/04/2021
and (v) any other documents or records reasonably necessary to verify costs spent
for the house.
Complete Documentation shall meet the standards described in the attached
Exhibit "J"- Standards for Complete Documentation.
Completion means the substantial completion of the house as evidenced by a Neighborhood
Seiwices Department Minimal Acceptable Standard Inspection Repor-t, HUD Compliance
Inspection Report, and any other applicable final inspection approval from City.
Completion Deadline means June 30, 2022.
Contract means this contract between Developer and City which is the written agreement
required by the HOME Regulations for the use of the HOME Funds and which setves as the
development agreement for the development of homebuyer units and the loan agreement for the
HOME Loan.
Construction Lendei• means the commercial lendet• malcing Developer a first lien construction
loan for a poi�tion of the construction costs of the Required Improvements as more particularly
identified in Exhibit "B" - Budget.
Construction Loan means the first lien loan to Developer from the Constiuction Lender.
Construction Loan Documents means the first and superior security instruments including
without limitation, Construction Lender's Promissory Note and Deed of Trust, or any other
similar security inst�uments evidencing, securing or guaranteeing Construction Lendei's interest
in the Required Improvements constiucted by Developer in accordance with the terms of this
Contract as the same rnay from time to time be extended, amended, restated, supplemented or
otherwise modified.
DBE means disadvantaged business enteiprise in accordance with 49 CFR Part 26.
Deed of Trust means any deed of ttust from Developer in favor of City covering the Property
and securing the indebtedness evidenced thet•ein and Developer's perfoi�nance of the
requirements of this Contract and of the HOME Regulations, as the same may be extended,
amended, restated, supplemented or otheitivise modified. The form of the Deed of Trust is
attached as part of Exhibit "E" — HOME Loan Documents.
Developer Fee means 10% of the total HOME-eligible development costs actually spent for the
Required Improvements to be paid to Developer.
Director means the Director of City's Neighborhood Services Department.
Effective Date means the date of execution by the last of the Parties of this Connact.
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Ash Crescent Single Family In�iIl Project
Development Corporation of Tarrant County — 2713 Ash Crescent Street Rev. 03/04/2021
HAP or HAP Program means City's Homebuyer Assistance Program which provides
subordinate forgivable deferred payment purchase money loans with HOME funds for closing
cost and/or down payment assistance to eligible homebuyers undei• the HAP Guidelines.
HAP Guidelines means any zules, regulations, guidelines and requirements by City or HUD that
a homebuyer must meet in order to (i) qualify for IIAP down payment and/or closing cost
assistance, and (ii) fulfill the homebuyer's obligations under the HOME Program during the
Affordability Period related to the IIAP Loan.
HAP Loan means the subordinate purchase money loan frorn City under its IIAP Program to a
HOME Eligible Buyer in the minimum amount of $1,000.00
HAP Loan Documents means the HOME Written Agreement between City and the HOME
Eligible Buyer, the promissory note in favor of City in the amount of the HAP assistance and the
deed of tiust securing the HAP Loan, as well as any other• instruments evidencing, securing or
guaranteeing the HAP Loan, as the same may be extended, amended, restated, supplemented or
otherwise modified.
HOME means the HOME Investment Partnerships Program.
HOME Eligible Buyer means a homebuyer, whether one or more, (i) whose annual income
adjusted for family size does not exceed 80°/o of AMI, and (ii) who meets HAP Guidelines and
qualifies for and receives a minimum of $1,000.00 of down payment and/or closing cost
assistance in the form of a IIAP loan.
HOME Funds means the HOME Program grant funds supplied by City to Developer under the
terms of this Contract, which includes the costs set forth in Exhibit "B" — Budget.
HOME Loan means the HOME Funds provided to Developer by City in the foi�n of a
forgivable deferred payment subordinate loan under the terms of this Contract as more
particularly described in the HOME Loan Documents.
HOME Loan Documents means the subardinate security instruments including without
limitation, City's Promissory Note and Deed of Trust, or any other similar security instruments
evidencing, sectuing or guaranteeing City's interest in the Required Improvements constructed
by Developer in accordance with the terms of this Contract as the same may from time to time be
extended, amended, restated, supplemented or otherwise modified.
HOME Regulations means the HOME Investment Parhierships Program Final Rule found at 24
CFR Part 92 et seq.
HOME Requirements means that the house constiucted in part with the HOME Funds must be
sold by Developer to a HOME Eligible Buyer who has received a minimum IIAP Loan of
$1,000.00 and who will occupy the house as his or her Principal Residence throughout the
Affordability Period in accordance with the HAP Loan Documents and HAP Guidelines.
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Ash Crescent Single Family Infill Project
Development Car•poration of Tarrant CounTy — 2713 Ash Crescent Street Rev. 03/04/2021
HUD means the United States Depat�tment of Housing and Urban Development.
IDIS means HUD's Integrated Disbursement Infoimation System.
Neighborhood Services Department means City's Neighborhood Setvices Department.
Plans means the elevations and site plans related to the Required Improvements prepared by
Developer's architect which have been delivered to and then reviewed and approved by City on
or before the Effective Date, and any and all amendments thereto approved by City. The
elevations for the house are attached as Exhibit "A-1" — Final Elevations.
Principal Residence means the house purchased froin Developer by a HOME Eligible Buyer
who will occupy it continuously throughout the Affordability Period in accordance with the IIAP
Guidelines and the IIAP Loan Documents.
Promissory Note means any note in the amount of the HOME Funds executed by Developer
payable to the order of City, as the same may be extended, amended, restated, supplemented or
otherwise modified. The form of the Promissory Note is attached as Exhibit "E" — HOME
Loan Documents.
Property means the lot or lots on which the Required Improvements shall be constructed as
more pat�ticularly described in and encumbered by the Deed of Trust.
Required Improvements ar• the house means all the improvements for a single family house to
be constructed on the Property, together with all fixtures, improvements and appurtenances now
or later to be located on the Property and/or in such improvements. The house will be commonly
known as 2713 Ash Crescent Street, Fort Worth, TX 76104. The Required Improvements are
part of an infill housing development project known as the Ash Crescent Single Family Infill
Development in which Developer will construct 4 single family houses on scattered sites in the
Ash Crescent neighborhood for sale to HOME Eligible Buyers (the "project").
Reimbursement Request means all reports and other documentation described in Section 10.
Subordination Agreement means the Subordination Agreement, if any, among the Construction
Lender, Developer and City outlining the relative priorities of the Constiuction Loan and the
City's Loan for the Required Improvements.
3. TERM AND EXTENSION
3.1 Term.
The teim of this Contract begins on the Effective Date and terminates in 2 years unless
earlier terminated as provided in this Contract.
3,1.1 Extension of Contract.
This Contract may be extended for 1 year upon Developer submitting a request for an
extension in writing at least 60 calendar days before the end of the Contract tei7n, The request
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Ash Crescent Single Family In�ll Project
Development Corporation of Tarrant County — 2713 Ash Crescent Street Rev. 03/04/2021
for extension shall include the reasons for the extension and Developer's anticipated budget,
constiuction schedule and goals for the extended term. It is specifically understood and agreed
that it is in City's sole discretion whether to approve or deny Developer's request for an
additional term. Any such extension shall be in the foim of an amendment to this Cont�act
executed by the Parties,
3.2 Term of HOME Loan.
The teim of the HOME Loan commences on the date of the Promissoiy Note and
terminates in 3 years so long as the terms and conditions of this Contract and the HOME Loan
Documents have been met.
4. DUTIES AND RESPONSIBILITIES OF CITY.
4.1 Requirements Prior to Commitment of HOME Funds.
4.1.1 Project Assessment.
Prior to commit�nent of the HOME Funds to the specific local project described herein,
City has (i) identified the addresses of the houses that comprise the project; (ii) assessed the
ctu7ent marlcet demand in the neighborhood where the project will be located; (iii) completed an
environmental review in accordance with 24 CFR Part 58; (iv) reviewed all necessary
commitments of financing, secured or otherwise including grants; (v) established a complete
budget for the project in sufficient detail to determine total project development costs and its
funding, including proposed sources and uses; (vi) detel�nined that project costs are reasonable;
(vii) completed underwriting and subsidy layering requirements and detet�nined that HOME
funds are needed to fill a funding gap; (viii) assessed the feasibility of project construction
commencing within 12 months of the commitment date; and (ix) established a completion
schedule with deadlines that meet all HOME requirements.
4.1.2 Developer Assessment.
Prior to commitment of the HOME Funds to the specific local project described herein,
City has deteimined that (i) Developer meets the CHDO qualifications at Section 92.2; (ii)
Developer has the financial capacity and experience to undertake the specific local project; and
(iii) Developer meets the requirements to own, develop, or sponsor the housing set out in 24 CFR
Part 92.300(a).
4.2 CHDO Certification.
4.2.1 CHDO Certification bv City.
Each time City commits HOME funds it must re-certify a nonprofit's qualifications to be
a CHDO and its capacity to own, sponsor or develop housing in accordance with Section
92.300(a) of the HOME Regulations.
4.2.2.1 By execution of this Contract, City represents that it has re-certi�ed
that Developer meets the CHDO definition and has the capacity to
fulfill the role of developer of the project.
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Ash Crescent Single Family In�ll Project
Development Corporation of Tarrant CounTy — 2713 Ash Crescent Street Rev. 03/04/2021
4.3 Commitment of HOME Funds. �
This Cont�act seives as the HOME written agreement described in 24 CFR Part
92.504(c). The HOME Funds will be committed by City to the project when this Cont�•act is
fully executed and becomes legally binding.
4.4 Provide HOME Funds.
City shall provide up to $99,862.00 of HOME Funds in the form of the HOME Loan for
eligible expenses for the development of the house under the terms and conditions of this
Contract and the Loan Documents.
4.5 Citv Will Monitor.
City will monitor the activities and performance of Developer and any of its contractors,
subcontractors or vendors annually as required by 24 CFR Part 92.504.
5. DEVELOPER OBLIGATIONS.
5.1 Secure Firm Written Financial Commitments.
Developer must obtain and furnish City with one or more firm written financial
commitments, or evidence of available funds, fiom non-speculative identified sources in a total
amount necessary to complete the project. All award or commitment letters received from
funders must be dated prior to the date of the Contract.
5.1.1 City will assess the fii7n written financial commitments prior to the execution of
this Contract to ensure that they are in fact, firm commitments and that (i) the terms and amounts
are consistent with the City's financial underwriting of the project; (ii) all sources are compatible
with HOME requirements; and (iii) all funds can reasonably be expected to close prior to the
disbursement of the HOME Funds.
5.2 Construction of Required Improvements.
Developer sha11 complete the construction of the Required Improvements as described in
Exhibit "A" — Project Summary and Scope of Work in accordance with the Plans, the
schedule in Exhibit "C" — Construction and Reimbursement Schedule, and the ter�rns and
conditions of this Contract,
5.2.1 Written Cost Estimates, Constructions Contracts and Construction
Documents.
Developer shall submit to City the const�-uction contracts and construction documents to
show the worlc to be undertalcen for the Required Improvements in sufficient detail that City can
perform all required inspections in accordance with 24 CFR Part 92.251(a)(2)(iv). City shall
review written cost estimates for the construction of the Required Improvements to detei7nine
that such costs are reasonable. In the event City, in its sole discretion, determines that such costs
are unreasonable, Developer shall revise said costs estimates to City's satisfaction.
5.3 Use of HOME Funds.
5.3.1 Sale of Required Improvements to a HOME Eli�ible Buyer.
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Ash Crescent Single Family Infill Project
Development Corporation of Tarrant County — 2713 Ash Crescent Street
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Developer shall sell the house to HOME Eligible Buyers under the terms and conditions
of this Contract.
5.3.2 Costs in Compliance with HOME Regulations and Contract.
Developer shall be reimbursed for eligible costs foz• the Required Improvements with
HOME Funds only if City deter�rnines in its sole discretion that:
5.3.2.1 Costs are eligible expenditures in accordance with the HOME
Reglilations.
5.3,2.2 Costs comply with this Contract and are reasonable and consistent
with industiy norms.
5.3.2.3 Coinplete Documentation, as applicable, is submitted by Developer.
5.3.3 Bud�et•
Developer agrees that the HOME Funds will be paid on a reimbursement basis in
accordance with Exhibit "B" — Budget, Exhibit "B-1" — Approved Project Budget and
Exhibit "C" — Construction and Reimbursement Schedule. Developer may increase or
decrease line-item amounts in the Approved Project Budget with the Director's prior written
approval, which approval shall be in the Director's sole discretion. Any such increase or
decrease in line items in the Approved Project Budget shall comply with Section 5.2.1, E�hibit
"A" — Project Summary and Scope of Worlc, and shall not increase the total amount of HOME
Funds.
5.3.4 Change in Budget.
5,3,4.1 Developer acknowledges that HOME funds are to be used as gap
financing so Developer must obtain a Commercial Loan for the
Required Improvements and the project. Developer shall promptly
report any change in the status of the Commercial Loan to City
5.3.4.2 Developer will notify City promptly of any additional funds it receives
for development of the Required Improvements, and City reserves the
right to amend this Contract in such instances to ensure compliance
with HCJD regulations governing cost allocation.
5.3.4.3 Developer agrees to utilize the HOME Funds to supplement rather
than supplant funds otherwise available for development costs for the
house.
5.4 Payment of HOME Funds to Developer.
HOME Funds will be disbursed to Developer upon City's approval of Developer's
written and signed Reimbursement Requests, including submission of Complete Documentation
to City in compliance with Section 10. It is expressly agreed by the Parties that any HOME
Funds not reimbursed to Developer shall remain with City.
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Ash Crescent Single Family Infll Project
Development Corporation of Tarrant County — 2713 Ash Crescent Street Rev. 03/0412021
5.5 Identifv Expenses Paid with HOME Funds.
Developer will lceep accounts and records in such a manner that City may readily identify
and account for expenses reimbursed with HOME funds. These records shall be made available
to City for audit purposes and shall be retained as required hereunder.
5.6 Acknowled�ement of Cit.y Pa.yment of HOME Funds.
Within 90 calendar days after the sale of the house, Developer shall sign an
acicnowledgement that City has paid all HOME Funds due under this Contract, or shall deliver a
document executed by an officer of Developer identifying all or any portion of the HOME Funds
that City has not paid to Developer. Once City has met all of its obligations for payment of
HOME Funds hereunder, an officer of Developer shall sign an acknowledgement of same.
5.7 Security for Citv's Interest and Developer's Performance.
To secure City's interest in the Required Improvements and the performance of
Developer's obligations hereunder, Developer shall execute the HOME Loan Documents and
record the Deed of Trust at the earlier of (i) the acquisition of the Propei-ty, or (ii) before any
construction materials are delivered to the Property or any worlc is commenced on the Required
Improvements. No HOME Funds will be paid or reimbul•sed until the HOME Loan Documents
are executed and the Deed of Trust is recorded. City will release the Deed of Trust upon the
closing of the sale of the house to a HOME Eligible Buyer.
5.7.1 HOME Loan Terms and Conditions.
Developer will be required to:
5.7.1.1 Execute and deliver the Promissory Note and Deed of Trust along with
any other HOME Loan Documents required by City.
5.7. L2 Provide City with a Mortgagee's or Lender's policy of title insurance
in the amount of the HOME Loan.
5.7.1.3 Pay all costs associated with closing the HOME Loan.
5.7.1.4 Provide City with a copy of an estimated settlement statement from the
title company at least 1 Business Day before closing of the HOME
Loan.
5,7.1.5 Ensure City's lien is subordinate only to the Commercial Loan. City
agrees, if requested by the Const�uction Lender, to execute a
Subordination Agreement so long as all terms are agreeable to City. In
addition, City must approve in writing any secured financing for the
Required Improvements that is to be subordinate to the HOME Loan.
5.7.1.6 The term of the HOME Loan shall be as specified in Section 3.2.
5.7.1.7 No interest shall acciue on the HOME Loan provided that Developer
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Ash Crescent Single Family Infill Project
Development Corpot•ation of Tarrant County — 2713 Ash Crescent Street Rev. 03/04/2021
complies with the terms and conditions of the Promissoiy Note.
5.7.1.8 The HOME Loan is a forgivable defei�ed payment loan. The HOME
Loan will be forgiven provided that (i) the house is sold to a HOME
Eligible Buyer in accardance with the HOME Requirements, and (ii)
Developer is not otherwise in default of the HOME Loan terms or
Contract provisions.
5.7.1.9 Early repayment of the HOME Loan shall not relieve Developer of its
obligations under this Contract or the HOME Regulations including
but not limited to the HOME Requirements. The Deed of Tiust shall
secure both repayment of the HOME Funds, if required, and
perfoimance by Developer of its obligations under this Contract.
5.7.1.10 Refinancing of the Constiuction Loan, or any subordinate financing
other than that approved herein or otherwise by City, shall require the
review and City's prior written approval for the puipose of ensuring
compliance with the underwriting and subsidy layering requirements
of the HOME Regulations, which approval shall not be uru•easonably
conditioned or withheld.
5.7.1.11 Default under the Construction Loan shall be considered a default of
the HOME Loan.
5.7.1.12 Failure by Developer to comply with this Section 5.7.1 will be an
event of default under this Contract and the HOME Loan
Documents.
5.8 Maintain HOME Requirements.
Developer shall ensure that the house is sold to a HOME Eligible Buyer as required by
this Contract and the HOME Regulations. Developer must notify City in writing if Developer
has not entered into a binding sales contract for the house with a HOME Eligible Buyer within 6
months of Completion. Such notice must be given within 14 calendar days of the 6 month
deadline and Developer shall have 7 calendar days from the date of the notice to submit a
detailed plan describing how the house will be sold to a HOME Eligible Buyer within 9 months
of Completion. If Developer has not sold the house within 9 months of Completion, then the
default provisions of Section 11.3 of this Cont�act shall apply.
5.9 HOME Requirements Survive Transfer.
Any sale or transfer of the Property by Developer during the Contract term, other than a
sale of the house to a HOME Eligible Buyer or a transfer due to condemnation or to obtain utility
setvices, may at City's sole discretion require the repayrnent of the HOME Funds. At a
minimum, any such sale or transfer will require the new owner or transferee to assume in writing
the HOME Requirements as well as all of Developer's other obligations under this Cont�act.
Failure of the new owner or transferee to promptly assume all of Developer's obligations under
this Contract and the HOME Loan Documents will result in immediate termination of this
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Development Corporation of Tarrant County — 2713 Ash Crescent Street Rev. 03/04/2021
Contract and any HOME Funds ah•eady paid to Developer must be repaid to City within 30 days
of such tei�rnination. In addition, City may pursue any of its remedies under the HOME Loan
Documents if the new owner or transferee fails to assume all of Developer's obligations
hereunder.
5.10 Maintain CHDO Status.
5.10.1. CHDO Requirements Met.
By the execution of this Contract, Developer represents that it meets the requirements for
designation as a CHDO set forth in 24 CFR Part 92.2.
5.10.2 CHDO Status Reports.
Developer has a continuing duty to provide City with all documentation or infot�rnation in
regard to any change in its status as a CHDO or as a 501(c)(3) tax exempt entity within 10
Business Days of said change. Developer shall provide an annual board roster and proof of its
continued status as a CHDO to City by January 30"' of each year. CHDO shall replace any
board member who resigns or is otherwise no longer able to seive within 3 months of the
vacancy. The failure of Developer to maintain its status as a CHDO and a 501(c)(3) tax exempt
entity shall result in termination of this Contract and return of all HOME Funds to City if CHDO
is unable to cure any violations of this Section within 30 calendar days of written notice from
City.
6. CONSTRUCTION.
6.1 Construction Schedule.
Developer will constiuct the Required Improvements in accordance with the schedule set
forth in the attached Exhibit "C" — Construction and Reimbursement Schedule. Developer
shall not begin construction until City sends a Notice to Proceed. Developer's failure to meet
the Construction Schedule or the Completion Deadline shall be an event of default. Developer
may not change the Construction Schedule without the Director's prior written approval, which
approval shall be in the Director's sole discretion.
6.1.1 Construction Inspections.
City shall conduct progress and final inspections of the construction of the house to
ensure that worlc is done in accordance with applicable codes, Developer's construction contract
and the construction documents in accordance with 24 CFR Part 92.251(a)(2)(v). The
constiuction of the house must pass a Neighborhood Services Department Minimal Acceptable
Standard Inspection report, a HLTD Compliance Inspection Report and any other applicable
HLJD-required inspections during the construction period, along with any applicable final
inspection approval from City at the completion of the construction of the house.
6.2 Applicable Laws, Buildin� Codes and Ordinances.
The Plans and construction for the house shall (i) conform to all applicable Federal, State,
City and other local laws, ordinances, codes, rules and regulations, including the HOME
Regulations; (ii) meet all City building codes; (iii) meet the Energy Conservation requirements
as required by the State of Texas in Chapter• 11 of the International Residential Code; (iv) if new
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const�uction, must conform to the Model Energy Code published by the Council of American
Building Officials.
6.3 Propertv Standards Durin� Construction.
If applicable, Developer shall comply with the following dui-ing the const�uction of the
house: (i) the Uniform Physical Condition Standards ("UPCS") contained in 24 CFR 5.703, and
(ii) City property standards.
6.4 Lead-Based Paint Requirements.
If applicable, Developer will comply with all Federal lead-based paint requirements
including lead screening in housing built prior to 1978 in accoi•dance with 24 CFR Part 92355
and 24 CFR Part 35, subparts A, B, J, K, M, and R, and the Lead: Renovation, Repair and
Painting Program Final Rule, 40 CFR Par-t 745 in the const�uction and/or rehabilitation of the
Required Improvements.
6.5 Approval of Plans by City Not Release of Responsibility.
Approval of the Plans by City shall not constitute or be deemed (i) to be a release of the
responsibility or liability of Developer or any of its architects, contractors or subcontractors, or
their respective officers, agents, employees and lower tier subcontractors, for the accivacy or the
competency of the Plans, including, but not limited to, any related investigations, surveys,
designs, worlcing drawings and specifications or other documents; or (ii) an assumption of any
responsibility or liability by City for any negligent act, ei7or or omission in the conduct or
preparation of any tests, investigations, suiveys, designs, working drawings and specifications or
other documents by Developer or any of its architects, contractors or subcontractors, and their
respective officers, agents, employees and lower tier subcontractors.
6.6 Contractor, Vendor and Subcontractor Requirements.
Developer will use commercially reasonable effoi�ts to ensure that all contractors or
vendors utilized Uy Developer, or subcontractors utilized by Developer's general contractor, are
appropriately licensed and such licenses are maintained throughout the constiuction of the house.
For puiposes of this Contract, the term "vendors" shall include real estate brolcers, other real
estate marlceting professionals, title companies, as well as surveyors and appraisers if Developer
pays for the survey or the appraisal. The term "vendors" does not include suppliers and
materialmen, Developer shall ensure that all subcontractors or vendors utilized by Developer or
subcont�actors utilized by Developer's general cont�actor in the construction of the house, or
vendors utilized by Developer in the marlceting or sale of the house are not debaned or
suspended from performing the cont�actor's, subcontractor's ar vendor's worlc by City, the State
of Texas or the Federal government. Developer acknowledges that 24 CFR Part 200 forbids
Developer from hiring or continuing to employ any contractor, subcontractor or vendor
that is listed on the Federal Excluded Parties List System for Award Management,
www.sam.gov ("SAM"). Developer must confirm by search of SAM that all contractors,
subcontractors or vendors are not listed by SAM as being debai�ed, both prior to hiring and
prior to submitting a Reimbursement Request which includes invoices fiom any such
contractor, subcontractor, or vendor. Failure to submit such proofs of search shall be an
event of default. In the event that City detel7nines that any contractor, subcontractor or vendor
has been debat�red, suspended, or is not properly licensed, Developer or Developer's general
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contractor shall immediately cause such contractor, subcontractor or vendor to stop wor•lc on the
house and Developer shall not be reimbursed for any worlc performed by such contractor,
subcont�actor or vendor. However, this Section shall not be construed to be an assumption of
any responsibility or liability by City far� the determination of the legitimacy, quality, ability, or
good standing of any contractor, subcont�actor or vendor. Developer acknowledges that the
provisions of this Section pertaining to the SAM shall survive the termination of this
Contract and be applicable for so long as Deyeloper owns the house which was constructed
in whole or in part with the HOME Funds.
7. SALE OF REpUIRED IMPROVEMENTS TO HOME ELIGIBLE BiTYER.
7.1 Income Eligibility.
Homebuyer eligibility will be detei�rnined using the definition of annual income in 24
CFR 5.609.
7.2 Sales Price of Required Improvements; Market Anal.ysis.
The sales price of each house shall not exceed 95°/a of the median purchase price for the
area as set by HUD in accordance with 24 CFR 92.254. The sales price of the house shall be
established by a marlcet analysis obtained by Developer and furnished by Developer to City
within 30 calendar days of Developer applying for building permits fiom City. The sales price
established by the marlcet analysis shall only be valid for 9 months from the date of the market
analysis. If Developer has not sold the house to a HOME Eligible Buyer within the 9 month
period dui-ing which the marlcet analysis is valid, a new market analysis must be perfoimed to
establish the sales price of the house. City in its sole discretion may extend this 9 month period
for up to 60 days if Developer has entered into a binding sales cont�act for the house before the
end of the 9 month period and needs the extension to close the sale of the house.
7.3 HOME Eligible Buyer.
All purchasers of the house must be HOME Eligible Buyers. Developer must verify that
a prospective purchaser is a HOME Eligible Buyer and must timely supply City with all
information necessary to prove eligibility for the HAP Loan. Any attempted sale of a house to
a purchaser who is not a HOME Eligible Buyer shall be an event of default and shall result
in automatic termination of this Contract. HOME Eligible Buyers must complete a
homeownership training and counseling program prior to closing their purchase of the house
from Developer. This requirement shall be evidenced by a completion certificate fiom a HUD-
certified housing counseling agency provided to City, Failure to provide a copy of such
certificate to City shall be an event of default.
7.3.1 HAP ParHcipation.
All prospective purchasers of a house must apply and qualify for a HAP Loan of at least
$1,000.00 of down payment and/or closing cost assistance at least 30 calendar days prior to
closing of the sale of the house. Eligibility for a HAP Loan shall be deter�rnined by City in its
sole discretion using the H.AP Guidelines. City shall enter into a HOME Written Agreement
with the prospective purchaser as part of the HAP Loan, If requested by City, Developer shall
use its best efforts to timely provide City with all documents necessary far City to process the
HAP Loan application, including verification of homebuyer income eligibility.
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7.3.2 Other HOME Assistance.
HOME Regulations require that the amount of HOME investment that is subject to
recapture is based on the amount of HOME assistance that enabled the homebuyer to buy the
dwelling unit. The sales price of the house will be detei-mined by a marlcet analysis performed
by Developer in accordance with Section 7.2. In the event that the price of the house is reduced
below the sales price set by the marlcet analysis or a lender's appraisal, whichever is lower, and
the amount of the reduction in the sales price plus the amount of the HAP Loan exceeds
$14,999.00, then the Affordability Per-iod will be 10 years. If the amount of the reduction in the
sales price plus the amount of the IIAP Loan exceeds $39,999.00, then the Affordability Period
wiil be 15 yeais.
7.3.2.1 If required, the additional Affordability Period will be more
particularly described in the HOME Written Agreement and evidenced
by a note to City in the amount of the other HOME Assistance
described in this subsection (the "other HOME Assistance") and
secured by a deed of tiust in favor of City. The loan will be a
subordinate forgivable deferred payment loan for the term of the
additional required Affordability Period attributable to the other
HOME Assistance. City may, in its sole discretion, include the loan
terms attributable to the other HOME Assistance in the HAP Loan
Documents.
7.3.2.2 Developer shall notify City, and if necessary, the prospective
homebuyer and the prospective homebuyer's first lien moi-tgage
company within 5 Business Days of determining that the sales price of
the house will require an additional Affordability Period.
7.4 Sales Contract.
Developer shall provide City with a copy of a proposed sales contract for the house for
City approval prior to execution by Developer. City will review and approve the sales conhact
or request changes within 1 Business Day. The sales cont�act must contain the following
provision:
7.4.1 "The Property was constructed with Federal funds which require that the
Buyer occupy it as Buyei's principal residence for up to 15 years. To assure performance
of this Federal requirement, Buyer must apply for and obtain a subordinate loan of at least
$1,000.00 from the City of Fort Worth's Homebuyer Assistance Program for closing cost
and/or down payment assistance. City's loan will be secured with a Deed of Trust which
will remain on the Property for a minimum of 5 years. If Buyer occupies the Property as
Buyer's principal residence for the full affordability period based on the amount of direct
assistance calculated in accordance with Federal requirements, City will forgive its loan. If
Buyer does not meet the Federal requirements for City's loan, Seller shall terminate the
contract by giving notice to Buyer and the Earnest Money will be refunded to Buyer."
7.5 Developer to Provide Settlement Statement.
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Developer shall provide City the estimated Closing Disclosures at least 5 Business Days
prior to the closing of the sale of the house to a HOME Eligible Buyer. The Closing Disclosures
shall show any homebuyer subsidies, the HAP Loan, and, if applicable, any loan from City for
the other HOME Assistance as described in Section 7.3.2. Developer shall not close the sale of a
house without receiving City's written approval of the final Seller's Closing Disclosure. Written
approval from City to the title company closing the sale of the house which recites that there is
no payment due for the HOME Loan and agreeing to execute a Release of Lien for the Deed of
Trust shall be deemed written approval of the final Seller's Closing Disclosure for purposes of
this Section.
7,6 Deadline for Sale of Required Improvements.
The house must be sold to a HOME Eligible Buyer within 9 months of Completion.
Developer shall submit monthly status reports to City regarding the sale of each house beginning
with the first month after Completion and continuing until the house is sold.
7.7 Marketin�
7.7.1. Affirmative Marketin�.
Developer must adopt affiimative marketing procedures and requirements for the
Required Improvements consistent with City policies and procedures. The procedures and
requirements must include methods for informing the public, owners and potential homebuyers
about fair housing laws and policies so as to ensure that all individuals, without regard for sex,
age, race, color, creed, nationality, national origin, religion, handicap status, disability, familial
status, sexual orientation, gender identity, gender expression or transgender, are given an equal
opportunity to participate in the project. Affirmative marlceting procedures and requirements
must include the following as required by 24 CFR Part 92,351:
7.7.1.1 Methods for informing the public, owners, and potential ptuchasers
about Federal fair housing laws and City's affirmative marlceting
policy
7.7.1.2 Requirements and practices Developer must adhere to in order to carry
out City's affirmative marketing procedures and requirements
7.7.1.3 Procedures to be used by Developer to infoi7n and solicit potential
purchasers of the houses constructed as par�t of the project in the
housing marlcet area who are not lilcely to seek to ptuchase a house
without special outreach;
7.7.1.4 Records that will be kept describing actions taken by Developer to
affirmatively market the program and houses const�-ucted as part of the
project and records to assess the results of these actions; and
7.7.1.5 A description of how Developer will annually assess the success of
affirmative marketing actions and what coi7ective actions will be taken
where affirmative marlceting requirements are not met.
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7.7.2. CitV Approval.
All Developer marlceting procedures related to the house and the project, including but
not limited to the affirmative marketing described in Section 7.7.1, are subject to approval by
City. Developer shall submit all marlceting plans for City approval no later than 30 calendar
days after the Effective Date.
7.7.3 Effective Marketin�.
Developer will be solely responsible foi• the effective marlceting responsibilities necessary
to achieve the HOME Requirements. Documentation supporting these efforts shall be submitted
to City upon i•equest and shall include, but not be limited to, brochures, sign-in sheets for open
houses, listings, and advertisements for the house and the project.
7.8 Developer Fee.
Developer shall be paid the Developer Fee as more particularly described in Exhibit "B"
— Budget and Exhibit "C" — Construction and Reimbursement Schedule upon the closing of
the sale of the house to a HOME Eligible Buyer so long as City has received copies of all of the
inspections set forth in Section 6. L 1. City shall pay Developer Fee at City's sole option (i)
outside of closing upon receipt fiom Developer of an invoice including Complete Documentation
showing the total amount of HOME Funds actually spent to develop the Required Improvements,
or (ii) at closing. City, in its sole discretion, may elect to pay a portion of the Developer Fee
before closing. If City so elects, such early partial payment shall be more particularly described
in Exhibit "B" — Budget and Exhibit "C" — Construction and Reimbursement Schedule.
7.9 CHDO Proceeds.
7.9.1 Use of CHDO Proceeds bv Developer.
Developer shall retain and use the CHDO Proceeds for the hard and soft costs associated
with the const�uction of at least 1 additional affordable single family house within the City to be
sold to a HOME Eligible Buyer. The CHDO Proceeds resulting from the sale of the house
described in this Contract shall be combined with the CHDO Proceeds resulting from the sale of
the other 3 houses constructed as pat-t of the Ash Crescent Single Family Infill Development, and
with a Commercial Loan in a sufficient amount to complete the constt-uction of the additional
house. Developer shall submit its proposed plans, location, and construction budget for the
additional house to City for its approval prior to lot acquisition or commencing construction.
City shall monitor Developer's use of the CHDO Proceeds to ensure that they are used for
HOME-eligible affordable housing activities. Developer shall lceep CHDO proceeds separately
from its other funds and shall give City quarterly reports on the status and location of these
funds. Developer may retain the net sales proceeds resulting from the sale of this additional
house free of any further City or HOME requirements..
7.9.2 Report on Use of CHDO Proceeds.
Developer shall report to the Compliance Division of the Neighborhood Services
Department on its use of CHDO Proceeds on January 15, April 15, July 15, and October 15 for
the previous 3 months until the CHDO Proceeds have been fully expended. Such reports shall be
in a format requested by City, and shall be in sufficient detail and include sufficient and adequate
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documentation to enable City to tracic and identify Developer's use of CHDO Proceeds for
affordable housing puiposes. City retains the right to monitor such use for cost reasonableness
and appropr•iateness.
8. ADDITIONAL HOME REQUIREMENTS.
Developer agrees to comply with all requirements of the HOME Program as stated in the
HOME Regulations, including, but not limited to the following:
8.1 Environmental Review.
HOME Funds will not be paid and costs may not be incui7ed until City has conducted an
enviromnental review and completed an Environmental Review Record as required by 24 CFR
Pai�t 58. The environmental review may result in a decision to proceed with, modify, or cancel
the project. Further, Developer will not undertalce or commit any funds to physical or choice
limiting actions, including if applicable, property acquisition, demolition, movement,
rehabilitation, conversion, repair or construction prior to the environmental clearance. Any
violation of this Section will (i) cause this Contract to terminate immediately, and (ii)
require Developer to repay to City any HOME Funds received and forfeit any future
payments of HOME Funds.
8.1.2 Miti�ation.
Developer must take the mitigation actions outlined in Exhibit "A-2" — Environmental
Mitigation Action. Failure to complete the required mitigation action is an event of default
under this Contract.
8.2 Contract Not Constitutin� Commitment of Funds.
Notwithstanding any provision of this Cont�act, the Par-ties agree and acltnowledge that
this Cont�act does not constitute a commitment of HOME Funds, and that such commitment or
approval may occur only upon satisfactory completion of environmental review and receipt by
City of an authorization to use grant funds from HCTD under 24 CFR Part 58.
8.3. Monitorin�.
8.3.1 Developer understands and agrees that it will be subject to monitoring by City for
compliance with the HOME Regulations, the terms of this Contract and the HOME Loan
Documents until the project is closed in IDIS and for 5 years thereafter. Developer will provide
reports and access to project files as requested by City during the term of the Contract and for 5
years after the project is closed in IDIS. In order to assist City with its monitoring, Developer
shall comply with all the reporting requuements set out in this Cont�act.
8.3.2 Representatives of City, HLJD, HUD Office of Inspectar General, and the United
States Comptroller General shall have access during regular business hours, upon at least 48
hours' prior notice, to Developer's offices and records that are related to the use of the HOME
Funds, and to Developer's officers, agents, and records that are related to the use of the HOME
Funds, and to Developer's officers, agents, employees, contractors, subcontractors and vendors
for the puipose of such monitoring.
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8.33 In addition to other provisions of this Contract regarding frequency of monitoring,
City reseives the right to perfoi�n deslc reviews or on-site monitoring of Developer's compliance
with the tetms and conditions of this Contract and the HOME Loan. City shall provide
Developer with a written report of the monitor's findings after each monitoring visit. If the
monitoring report notes deficiencies in Developer's perfoimance, the report shall include
requirements for the timely coi�rection of said deficiencies by Developer. Failure by Developer
to take the action specified in the monitoring repoi�t may be cause for suspension ar• termination
of this Cont�•act as provided herein or City may talce all actions allowed in the Loan Documents.
8.3.4 This Section 8.3 shall be applicable for the duration of the Contract term and
for 5 years thereafter and shall survive the earlier termination or expiration of this
Contract.
8.4 Compliance with the Uniform Relocation Act.
If applicable, Developer shall comply with the relocation requirements of 24 CFR Part
92.353 and all other applicable Federal and State laws and City ordinances and requirements
pertaining to relocation.
8.5 Compliance with Davis-Bacon Act.
If applicable, Developer and its general contractor and all lower tier subcontractors will
comply with the Davis-Bacon Act as described in Section 14.14 and Exhibit "H" — Federal
Labor Standards Provisions - Davis-Bacon Requirements-.
8.6 Developer Procurement Standards.
Developer shall ensure that procurement of materials and services is done in a cost
effective manner. Developer shall comply with all applicable federal, state and local laws,
regulations, and ordinances for malcing procurements under this Contract, Developer shall
establish written procurement procedures to ensure that materials and services are obtained in a
cost effective manner
8.7 Cost Principles/Cost Reasonableness.
The eligibility of costs incun�ed for performance rendered shall be deteimined in
accordance 2 CFR Part 200.402 through 2 CFR Part 200.405, as applicable, regarding cost
reasonableness and allocability.
8.8 Financial Mana�ement Standards.
Developer agrees to adhere to the accounting principles and procedures required in 2
CFR Part 200, as applicable, utilize adequate inteinal controls, and maintain necessary
supporting and back-up documentation for all costs incurred in accordance with 2 CFR Part
200.302 and Part 200.303.
8.9 Uniform Administrative Requirements.
As applicable, Developer will comply with the Unifoi�rn Administrative Requirements,
Cost Pi7nciples, and Audit Requirements far Federal Awards in 2 CFR Part 200, or any
reasonably equivalent procedures and requireinents that City may require.
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8.10 Compliance with FFATA and Whistleblower Protections.
Developer shall provide City with all necessaiy infoi7nation for City to comply with the
requirements of 2 CFR 300(b), including provisions of the Federal Funding Accountability and
Transparency Act ("FFATA") governing requirements on executive compensation and
provisions goveining whistleblower protections contained ul 10 U.S.C. 2409, 41 U.S.C. 4712, 10
U.S.C. 2324, 41 U.S.C. 4304 and 41 U.S.C, 4310.
8.10.1 Developer shall provide City its DUNS number prior to the payment of any
Reimbursement Requests.
8.11 Internal Controls.
In compliance with the requirements of 2 CFR 200.303, Developer shall:
8.11,1 Establish and maintain effective internal control over the HOME Funds that
provides reasonable assurance that Developer is managing the HOME Funds in compliance with
federal statutes, regulations, and the terms and conditions of this Contract, These internal
controls shall comply with guidance in "Standards for Internal Control in the Federal
Govei�unent" issued by the Comptroller General of the United States or the "Internal Control
Integrated Frameworlc" issued by the Committee of Sponsoring Organizations of the Treadway
Commission ("COSO");
8.11.2 Comply with federal statutes, regulations, and the terms and conditions of this
Contract;
8.11.3 Evaluate and monitor Developer's compliance with statutes, regulations and the
terms and conditions of this Contract;
8.11.4 Take prompt action when instances of noncompliance are identified including
noncompliance identified in audit findings; and
8.11.5 Take reasonable measures to
information and other infoi�nation that HUD
considers sensitive consistent with applicable
privacy and obligations of coniidentiality.
safeguard protected personally identifiable
or City designates as sensitive or Developer
federal, state, local and tribal laws regarding
8.12 Copyri�ht and Patent Ri�hts.
No reports, maps, or other documents produced in whole or in part under this Contract
shall be the subject of an application for copyright by or on behalf of Developer. HCTD and City
shall possess all rights to invention or discovery, as well as rights in data which may arise as a
result of Developer's performance under this Contr•act.
8.13 Terms Applicable to Contractors, Subcontractors and Vendors.
Developer understands and agrees that all terms of this Contract, whether regulatory or
otherwise, shall apply to any and all contractors, subcontractors and vendors of Developer which
are in any way paid with HOME Funds or who perform any worlc in connection with the
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constiuction or sale of the house. Developer shall cause all applicable provisions of this Contract
to be included in and rnade a part of any contract or subcontract executed in the pei�foi7nance of
its obligations hereunder, including its obligations regarding the HOME Requirements and the
HOME Regulations. Developer shall monitor the seivices and worlc� performed by its
contractors, subcontractors and vendors on a regular basis for compliance with the HOME
Requirements, the HOME Regulations and Cont�•act provisions. Developer is responsible to cure
all violations of the HOME Regulations committed by its contractors, subcontractors or vendors
pertaining to this Cont�act. City maintains the right to insist on Developer's full compliance with
the terms of this Cont�•act and the HOME Regulations and Developer• is responsible for such
compliance regardless of whether actions to fulfill the requirements of this Contract or the
HOME Regulations are taken by Developer or by Developer's contractors, subcontt•actors or
vendors. Developer acknowledges that the provisions of this Section shall survive the
earlier termination or expiration of this Contract and be applicable for 5 years after the
termination of this Contract.
8.14 Pavment and Performance Bonds.
Developer shall furnish City with payment and performance bonds in the total
amount of the construction cost for the house in accordance with the requirements of 2 CFR
Part 200.325. At City's discretion other forms of assurance, including a guarantee fiom
Developer or other parties on Developer's behalf, may be acceptable so long as such assurance
meets the requirements of the HOME Regulations. Any guarantee in favor of the City shall be
in the form as the attached E�hibit "P" — Guarantee unless City in its sole discretion agrees
to some other form which shall be acceptable in amount, duration, form and suUstance.
9. RECORD I�EEPING, REPORTING AND DOCUMENTATION
REQUIREMENTS, RIGHT TO AUDIT.
9.1 Record Keepin�.
Developer shall maintain a record lceeping system as part of its performance of its
obligation under the tei�ns of this Contract and shall promptly provide City with copies of any
document City deems necessary for the effective fulfiliment of City's monitoring and evaluation
responsibilities. Specifically, Developer will lceep or cause to be kept an accurate record of all
actions taken and all funds spent, with suppot�ting and bacic-up documentation. Developer will
maintain all recards and documentation related to this Contract for 5 years after the Contract
terminates. If any claim, litigation, or audit is initiated before the expiration of the 5 year period,
the relevant records and documentation must be retained until all such claims, litigation ar audits
have been resolved.
9,1.2 Access to Records.
Representatives of City and HUD and any duly authorized officials of the Federal
government will have full access to, and the right to examine, audit, excerpt and/or transcribe
any of Developer's records pertaining to all matters covered by this Cont�act for 5 years after the
Contract tei�rninates. Such access shall be during regular business hours and upon at least 7
calendar day's prior notice.
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9.2 Reports.
Developer will submit to City all reports and documentation desct-ibed in this Contract in
such foim as City may prescribe. Developer may also be required to submit a final performance
and/or final financial report if required by City at the ter�rnination of this Contract and/or the end
of the Loan in such form and within such times as City may prescribe. Failure to submit any
repoi�t or docuinentation described in this Cont�act to City shall be an event of default of this
Contract and City may exercise all of it remedies for default under this Contract and Loan
Documents.
9,2.1 AdditionalInformation.
Developer shall provide City with additional infoi�nation as may be required by State ar
Federal agencies to substantiate HOME Program activities and/or expenditure eligibility.
9.3 Chan�e in Reportin� Requirements and Forms.
City retains the right to change reporting requirements and forms at its discretion. City
will notify Developer in writing at least 30 calendar days prior to the effective date of such
change, and the Parties shall execute an amendment to this Contract reflecting such change if
necessary.
9.4 City Reserves the Right to Audit.
City resetves the right to perform an audit of Developer's project operations and finances
at any time during the term of this Contract or for 5 years after the Contract teiminates, if City
determines that such audit is necessary for City's compliance with the HOME Regulations or
other City policies, and Developer agrees to allow access to all pertinent materials as described
herein. If such audit reveals a questioned practice or expenditure, such questions must be
resolved within 15 Business Days after notice to Developer of such questioned practice or
expenditure. If questions are not resolved within this period, City reserves the right to withhold
fiuther funding under this Conttact and/or other contracts with Developer. IF AS A RESULT
OF ANY AUDIT IT IS DETERMINED THAT DEVELOPER HAS FALSIFIED ANY
DOCUMENTATION OR MISUSED, MISAPPLIED OR MISAPPROPRIATED HOME
FUNDS OR SPENT HOME FUNDS ON AN-Y INELIGIBLE ACTIVITIES, DEVELOPER
AGREES TO REIMBURSE CITY THE AMOUNT OF SUCH MONIES PLUS THE
AMOUNT OF ANY SANCTIONS, PENALTY OR OTHER CHARGE LEVIED
AGAINST CITY BY HUD BECAUSE OF SUCH ACTIONS.
10. REIMBURSEMENT REQUIREMENTS.
Developer shall provide City with Complete Documentation and the following reports as
shown in Exhibit ��F" — Reimbursement Forms with each Reimbursement Request:
10.1 Attachment I — Invoice.
This report shall contain the amount requested for reimbLusement in the submitted
request, and the cumulative reimbursement requested to date (inclusive of the current request).
10.2 Attachment II — Expenditure Worksheet.
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This i•eport shall itemize each expense requested for reimbursement by Developer. In
order for this report to be complete the following must be submitted:
10.2.1 Invoices for each expense with an explanation as to how the expense pertains
to the house or project, if necessary; and
10.2.2 Proof that each expense was paid by Developer, which can be satisfied by
cancelled checics, wire t�•ansfer documentation, paid receipts or other appropi•iate banking
documentation.
10.3 Deadline for Submittin� Reimbursement Requests.
All Reimbursement Requests along with Coinplete Documentation shall be submitted by
Developer to City within 60 calendar• days from each of the deadlines as shown in Exhibit ��C" —
Construction and Reimbursement Schedule.
10.3.1 CITY SHALL HAVE NO OBLIGATION TO PAY ANY
REIMBURSEMENT REQUEST THAT IS NOT RECEIVED WITHIN 60 CALENDAR
DAYS OF THE DEADLINES SHOWN IN EXHIBIT "C" — CONSTRUCTION AND
REIMBURSEMENT SCHEDULE. In addition, Developer's failure to timely submit
Reimbursement Requests and Complete Documentation along with any required reports
shall be an event of default.
10.3.2 CITY SHALL HAVE NO OBLIGATION TO MAKE PAYMENT ON
ANY REIMBURSEMENT REQUEST THAT IS NOT RECEIVED WITHIN 30
CALENDAR DAYS OF THE COMPLETION DEADLINE.
10.3.3 Final Payment.
Developer shall not be reimbursed for Final Payment until it submits Exhibit "G" —
HOME Project Compliance Report to City regarding the HOME Eligible Buyer.
10.4 Withholdin� Pavment.
10.41 CITY SHALL WITHHOLD PAYMENTS REQUESTED UNDER
THIS CONTRACT IF COMPLETE DOCUMENTATION IS NOT RECEIVED. City
shall notify Developer when it is withholding payment due to lack of required complete
documentation within 10 Business Days of malcing such determination.
10.4.2 FINAL REIMBURSEMENT SHALL NOT BE MADE UNTIL ALL
LIENS ARE RELEASED TO CITY'S SATISFACTION AND THE CLOSING OF THE
SALE OF THE HOUSE TO A HOME ELIGIBLE BUYER. Developer shall furnish City
with a copy of an Af�davit of Completion sworn to by Developer's general contractor that
has been filed by Developer in the Tarrant County Real Property Records in compliance
with Section 53.106, Texas Property Code, as proof that all subcontractors, laborers and
materialmen have been paid in full for all labor and materials provided to the general
contractor for the house and project.
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10.5 Timin� of Payment.
Provided that Developer• submits Complete Documentation with respect to the Required
Improvements in conformance with this Contract, City will reimburse Developer for eligible
expenses within 15 calendar days.
11. DEFAULT AND TERMINATION.
11.1 Faiture to Be�in or Complete the Required Improvements
11.1.1 The Property shall be acquired by Developer within 4 months of the Effective
Date, If Developer fails to begin constiuction of the house within 3 months of the acquisition of
the Propei-ty or, if Developer already owns the Propei-ty, within 3 inonths of the Effective Date,
this Contract shall automatically terminate without fui�ther notice or oppor-tunity to cure, and with
no penalty or liability to City.
11.1.2 If City determines that the Required Improvements were not completed by the
Completion Deadline or have failed to pass any of the inspections described in Section 6.1.1,
City shall have the right to terminate this Contract effective immediately upon written notice to
Developer of such intent with no penalty or liability to City after giving Developer 30 calendar
days to cure. City shall also be entitled to demand repayment of the HOME Funds already
disbtused to Developer and enforce any of the provisions of HOME Loan Documents for default.
11.2 Failure to Submit Complete Documentation Durin� Construction.
11.2.1 If Developer fails to submit Complete Documentation during consi�-uction of
the Required Improvements in accordance with Exhibit "C" — Construction and
Reimbursement Schedule, or if any report or documentation suUmitted as part of Coinplete
Documentation is not in compliance with this Contract or the HOME Regulations as determined
by City in its sole discretion, City will notify Developer in writing and Developer will have 30
calendar days from the date of City's written notice to submit or resubmit any such report or
documentation. If Developer fails to submit or resubmit any such report or documentation
within such time, City shall have the right to withhold payments, If such failure continues for an
additional 30 calendar days (a total of 60 calendar days), City shall have the right to terminate
this Contract effective immediately upon written notice of such intent to Developer with no
penalty or liabiliry to City. Notwithstanding anything to the contrary herein, City will not be
required to pay any HOME Funds to Developer during the period that any such report or
documentation is missing or otherwise not in compliance with this Contract or the HOME
Regulations,
11.2.2 If any of Developer's Reimbursement Requests are incomplete or otherwise
not in compliance with this Contract or the HOME Regulations as detet7nined by City in its sole
discretion, City will notify Developer in writing of such default and Developer will have 10
business days from the date of the written notice to resubmit any such Reimbursement Request
to cure the default. If Developer fails to cure the default within such time, Developer shall
forfeit any payments otheitivise due under such Reimbursement Request. If such failure to
resubmit such Reimbursement Request continues for an additional 15 calendar days (a total of 30
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calendar days), City shall have the right to terminate this Contract effective immediately upon
written notice of such intent with no penalty or liability to City. Notwithstanding anything to the
contrary herein, City will not be required to pay any HOME Funds to Developer dui7ng the
period that any such Reimbursement Request is not in compliance with this Contract or the
HOME Regulations.
11.2.3 In the event of more than 2 instances of default, cured or uncured, under
Sections 11.2.1 or 11.2.2, City reserves the right at its sole option to terminate this Contract
effective immediately upon written notice of such intent to Developer with no penalty or
liability to City.
11.2.4 Notwithstanding anything to the contrary herein, City will not be required to
pay any HOME Funds to Developer dui•ing the period that any Reimbursement Request, report
or other documentation is missing, past due or is not in compliance with this Contract or the
HOME Regulations, or during any period during which Developer is in default of this Cont�act.
11.2.5 In the event of termination under this Section 11.2, all HOME Funds awarded
but unpaid to Developer pursuant to this Contract shall be immediately forfeited and Developer
shall have no further right to such funds. Any HOME Funds already paid to Developer must be
repaid to City within 30 calendar days of termination under this Section. Failure to repay such
HOME Funds will result in City exercising all legal remedies available to City under this
Contract and the HOME Loan Documents.
11.3 Failure to Sell Required Improvements.
Developer must notify City in writing if Developer fails to sell the house to HOME
Eligible Buyers within 9 months of Completion as described in Section 5.7. Developer must
notify City in writing no later than 8 months after Completion which of the following options
Developer plans to elect if a house will not be sold to a HOME Eligible Buyer within 9 months
of Completion:
11.3.1 Convert the house to a rental unit as desci7bed in 24 CFR Part 92.252.
Developer will be responsible for maintenance and management of the rental house. If
Developer selects this option, City will enter into a sepaxate agreement with Developer setting
forth the HOME requirements applicable for HOME rental units; or
11.3.2 Repay City all HOME Funds provided to Developer under this Contract for
the unsold house within 30 calendar days of notifying City of this option. If Developer selects
this option, this Contract may be terminated at City's sole election.
11.4 Failure to Maintain or Submit Required Reports and Documentation.
If Developer fails to maintain all records and documentation as required in Section 9, or
fails to submit any report or• documentation required by this Cont�act after the Required
Improvements are completed, or if the submitted report or documentation is not in compliance
with this Contract or the HOME Regulations as determined by City in its sole discretion, City
will notify Developer in writing and Developer will have 15 calendar days from the date of the
written notice to obtain or recreate the missing records or documentation, or submit or resubmit
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any such repoi�t or documentation to City. If Developer fails to maintain the required reports or
documentation, or submit or resubmit any such report or documentation within such time, City
shall have the right to terminate this Contract effective immediately upon written notice of such
intent with no penalty or liability to City. In the event of termination under this Section 11.4,
any HOME Funds paid to Developer must be r•epaid to City within 30 calendar days of
termination. Failure to repay such HOME Funds will result in City exercising all legal
remedies available to City under this Contract and the HOME Loan Documents.
11.5 In General.
11.5,1 Subject to Sections 11,1, 11.2, ll.3 and 11.4, and unless specifically provided
otherwise in this Contract, Developei• shall be in default under this Contract if Developer
bt•eaches any term or condition of this Cont�act. In the event that such a breach remains uncured
after 30 calendar days following written notice by City (or such other notice period as may be
specified herein), or if Developer has diligently and continuously attempted to cure following
receipt of such written notice but reasonably required more than 30 calendar days to cure, as
detei�rnined by both Pai�ties mutually and in good faith, City shall have the right to elect, in City's
sole discretion, to (i) extend Developer's time to cure, (ii) terminate this Contract effective
immediately upon written notice of such intent to Developer, or (iii) pursue any other legal
remedies available to City under this Contract or the HOME Loan Documents.
11.5.2 City's remedies may include:
11.5.2,1 Direct Developer to prepare and follow a schedule of actions for
carrying out the affected activities, consisting of schedules,
timetables and milestones necessary to implement the affected
activities.
11.5.2.2 Direct Developer to establish and follow a management plan that
assigns responsibilities for carrying out the remedial activities.
11.5.2.3 Cancel or revise activities lilcely to be affected by the perfortnance
deficiency, before expending HOME Funds for the activities.
11.5.2.4 Reprogram HOME Funds that have not yet been expended fiom
affected activities to other eligible activities or withhold HOME
Funds.
11.5.2.5 Direct Developer to reimburse City in any amount of HOME
Funds not used in accordance with the HOME Regulations.
11.5.2.6 Suspend reimbursement or payment of HOME Funds for• affected
activities.
11.5.2.7 Any other appropriate action including but not limited to any
remedial action legally available such as declaratoty judgment,
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specific performance, damages, temporary or permanent
injunctions, termination of this Cont�act or any other contracts with
Developer, and any other available remedies.
11.5.3 In the event of teimination unde2• this Section 11.5, all HOME Funds awarded
but unpaid to Developer pursuant to this Contract shall be immediately rescinded and Developer
shall have no further right to such funds and any HOME Funds already paid to Developer must
be repaid to City within 30 calendar days of tei7nination. Failure to repay such HOME Funds
will result in City exercising all legal remedies available to City under this Contract or the
HOME Loan Documents.
11.5.4 If this Contract terminates prior to the sale of the house to a HOME Eligible
Buyer or to conversion to a lease purchase or rental unit, Developer waives all right to the
Developer Fee and CHDO Proceeds from the sale of this house.
11.6 No Funds Disbursed while in Breach.
Developer understands and agrees that no HOME Funds will be paid to Developer until
all defaults are cured to the satisfaction of City.
11.7 No Compensation After Date of Termination.
Developer will not receive any HOME Funds for worlc under�talcen after the date of
termination.
11.8 Ri�hts of City Not Affected.
Tei7nination shall not affect or tei�rninate any of the existing rights of City against
Developer, or which may thereafter accrue because of such default, and this provision shall be in
addition to any and all other rights and remedies available to City under the law and HOME
Loan Documents including, but not limited to, compelling Developer to complete the Required
Improvements in accordance with the tei7ns of the Contract. Such termination does not
tei�ninate any applicable provisions of this Contract that have been expressly noted as surviving
the tei�n or tel7nination of this Contract. No delay or omission by City in exercising any right or
remedy available to it under this Contract shall impair any such right or remedy or constitute a
waiver or acquiescence in any Developer default.
119 Waiver of Breach Not Waiver of Subsequent Breach.
The waiver of a default or breach of any term, covenant, or condition of this Contract or
the HOME Loan Documents shall not operate as a waiver of any subsequent breach of the same
or any other term, covenant or condition hereof or thereof.
11.10 Civil, Criminal and Administrative Penalties.
Failure to perform all Contract tei�rns may result in civil, criminal or administrative
penalties, including, but not limited to those set out in this Contract.
11.11 Termination for Cause.
11.11.1 City inay tet7ninate this Contract in the event of Developer's default, inability,
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or failure to perfoi�rn subject to notice, grace and cure periods. In the event City terminates this
Contract for cause, all HOME Funds awarded but unpaid to Developer pursuant to this Contract
shall be immediately rescinded and Developer shall have no further right to such funds and any
HOME Funds already paid to Developer must be repaid to City within 30 calendar days of
termination. Failure to repay such HOME Funds will result in City exercising all legal remedies
available to City under this Contract or the HOME Loan Docuinents. DEVELOPER
ACKNOWLEDGES AND AGREES THAT IF CITY TERMINATES THIS CONTRACT
FOR CAUSE, NEITHER DEVELOPER NOR ANY AFFILIATES OF DEVELOPER
WILL BE CONSIDERED FOR ANY OTHER CITY CONTRACT FOR HOME FUNDS
FOR A MINIMUM OF 5 YEARS FROM THE DATE OF TERMINATION.
11.11.2 This Contract shall be terminated immediately without penalty or
liability for the City in the event Developer loses its CHDO certification or status after the
cure period stated in Section 5.9.2. Iu the event City terminates this Contract pursuant to this
section, all HOME Funds awarded but unpaid to Developer pursuant to this Contract shall be
immediately rescinded and Developer shall have no further right to such funds and any HOME
Funds already paid to Developer must be repaid to City within 30 calendar days of termination.
Failure to repay such HOME Funds will result in City exercising all legal remedies available to
City under this Contract or the HOME Loan Documents.
11.11.3 Developer may terminate this Contract if City does not provide the HOME
Funds substantially in accordance with this Contract.
11.12 Termination for Convenience.
In terminating in accordance with 2 CFR 200, Appendix II, this Contract may be
terminated in whole or in part only as follows:
11.12.1 By City with the consent of Developer in which case the Par•ties shall agree
upon the termination conditions, including the effective date and in the case of par�tial
termination, the portion to be terminated, or
11.12.2 By Developer upon written notification to City setting foi-th the reasons for
such tei�rnination, the effective date, and in the case of partial tel�rnination, the portion to be
tei�ninated. In the case of a partial termination, City may teiminate the Contract in its entirety if
City determines in its sole discretion that the remaining portion of the Cont�•act to be perfoi7ned
or HOME Funds to be spent will not accomplish the puiposes for which this Cont�act was made.
11.13 Dissolution of Developer Terminates Contract.
In the event Developer is dissolved or ceases to exist this Cont�act shall tei�rninate, unless,
with City permission, the Contract has been assigned and the HOME Loan assumed by the
assignee. In the event of termination under this Section, all HOME Funds are subject to
repayment and/or City may exercise all of its remedies under this Contract and the HOME
Loan Documents.
11.14 Reversion of Assets.
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In the event this Cont�•act is tei-�ninated with or without cause by either party, all assets
acquired by Developer with the HOME Funds including but not limited to plans, drawings,
suiveys, renderings, const�uction documents and any other real or personal propei-ty owned by
Developer that was purchased, created or improved with the HOME Funds shall belong to City
and shall automatically transfer to City or to such assignees as City may designate.
11.15 Notice of Termination under Subordination A�reement.
City shall not ter�rninate this Contract without first giving notice and opportunity to cure if
required in any Subordination Agreement.
12. REPAYMENT OF HOME FUNDS.
All HOME Funds are subject to repayment in the event the house or the project does not
meet the requirements of this Contract or of the HOME Regulations. If Developer takes any
action that results in City being required to repay all or any portion of the HOME Funds to
HUD, Developer agrees it will reimburse City for the full amount of such repayment.
13. MATERIAL OWNERSHIP CHANGE.
Except for Permitted Transfers in accordance with the terms of the Deed of Trust and
transfers or assignment of this Contract and an assumption of the HOME Loan consented to by
City, if ownership of Developer materially changes after the date of this Contract, City may but
is not obligated to, terminate this Contract. City has 30 calendar days to make such
determination after receipt of written notice froin Developer and failure to malce such
deteimination in that 30-day time period will constitute a waiver. In the event of tei�nination by
City under this Section 13, all HOME Funds awarded but not yet paid to Developer pursuant to
this Contract shall be immediately rescinded and Developer shall have no further right to such
funds. Any HOME Funds already paid to Developer must be repaid to City within 30 calendar
days of termination under this Section.
14. GENERAL PROVISIONS
14.1 DeveloUer an Independent Contractor.
Developer shall operate hereunder as an independent contractor and not as an officer,
agent, seivant or employee of City. Developer shall have exclusive cont�•ol of, and the exclusive
right to control, the details of the worlc and seivices performed hereunder, and all persons
perfoi�ning same, and shall be solely responsible for the acts and omissions of its officers,
members, agents, servants, employees, contractors, subcontractors, vendors, tenants, licensees or
invitees.
14.2 Doctrine of Respondeat Superior.
The doctrine of respondeat superior shall not apply as between City and Developer•, its
officers, members, agents, servants, employees, cont�actors, subcontractors, vendors, tenants,
licensees or invitees. Developer agrees that nothing herein shall be construed as the creation of a
partnership ar joint enterprise between City and Developer. It is fi.u-ther understood that City
shall in no way be considered a Co-employer or a Joint employer of Developer or any officers,
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agents, seivants, employees or subcont�actor of Developer. Neither Developer, nor any officers,
agents, seivants, employees or subcontractor of Developer shall be entitled to any employment
benefits fiom City. Developer shall be responsible and liable for any and all payment and
reporting of taxes on behalf of itself, and any of its officers, agents, seivants, employees or
subcont�•actor. City does not have the legal right to control the details of the tasks perfoi7ned
hereunder by Developer, its officers, meinbers, agents, employees, cont�actors, subcontractors,
vendors, tenants, licensees or invitees.
14.3 Developer Property.
City shall under no circumstances be responsible fot any property belonging to
Developer, its officers, members, agents, employees, cont�actors, subcontractors, vendors,
tenants, licensees or invitees that may be lost, stolen or destroyed or in any way damaged and
DEVELOPER HEREBY INDEMNIFIES AND HOLDS HARMLESS CITY AND ITS
OFFICERS, AGENTS, AND EMPLOYEES FROM ANY AND ALL CLAIMS OR SUITS
PERTAINING TO OR CONNECTED WITH SUCH PROPERTY.
14.4 Religious Or�anization.
No portion of the HOME Funds shall be used in support of any sectarian or religious
activity. In addition, there must be no religious or membership critez7a for buyers of a HOME-
funded property.
14.5 Venue.
Venue shall lie in Tai�ant County, Texas for any action, whether real or asserted, at law
or in equity, arising out of the execution, perfot�rnance, attempted perfot�rnance or
non-perfoi�nance of this Contract,
14.6 Governing Law.
This Contract shall be governed by and construed in accordance with the laws of the
State of Texas. If any action, whether real or asserted, at law or in equity, arises out of the
execution, performance or non-performance of this Contract or on the basis of any provision
herein, for any issue not governed by Federal law, the choice of law shall be the laws of the State
of Texas.
14.7 Severability.
The provisions of this Contract are severable, and if far any reason a clause, sentence,
paragraph or other part of this Contract shall be determined to be invalid by a cout�t or Federal or
state agency, board or commission having jurisdiction over the subject matter thereof, such
invalidity shall not affect other provisions which can be given effect without the invalid
provision.
14.8 Written A�reement Entire A�reement.
This written inst�-ument and the Exhibits, Attachments and Addendums attached hereto,
which are incoiporated by reference and made a part of this Contract far• all puiposes, constitute
the entire agreement by the Parties concerning the work and seivices to be perfoi�rned under this
Contract. Any pr7ar or contemporaneous oral or written agreement which purports to vary the
terms of this Cont�•act shall be void. Any amendments to the terms of this Contract must be in
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writing and executed by the Parties.
14.9 Paragraph Headin�s for Refereuce Only, No Le�al Si�nificance; Number
and Gender.
The paragraph headings contained herein are for convenience in reference to this
Contract and are not intended to define or to limit the scope of any provision of this Cont�•act.
When context requires, singular nouns and pronouns include the plural and the masculine gender
shall be deemed to include the feminine or neuter and the neuter gender to include the masculine
and feminine. The words "include" and "inchiding" whenever used herein shall be deemed to be
followed by the words "without limitation".
14.10 Compliance With All Applicable Laws and Re�ulations.
Developer agrees to comply fully with all applicable laws and 1•egtilations that are
currently in effect or that are hereafter amended during the performance of this Contract. Those
laws include, but are not limited to:
➢ HOME Investment Partnerships Act as set out above
➢ Title VI of the Civil Rights Act of 1964 (42 U.S.C. Sections 2000d et seq.) including
provisions requiring recipients of Federal assistance to ensure meaningful access by
person of limited English proficiency
➢ The Fair Housing Act, Title VIII of the Civil Rights Act of 1968 (42 U.S.C. Sections
3601 et seq.)
➢ Executive Orders 11063, ll246 as amended by 11375 and 12086 and as
supplemented by Department of Labor regulations 41 CFR, Pat�t 60
➢ The Age Disci-imination in Employment of 1967
➢ The Age Discrimination Act of 1975 (42 U.S.C. Sections 6101 et seq.)
➢ The Uniform Relocation Assistance and Real Property Acquisition Policies Act of
1970 (42 U.S.C. Sections 4601 et seq. and 49 CFR Part 24) ("URA")
➢ Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. Sections 794 et seq.) and 24
CFR Par�t 8 where applicable
➢ National Environmental Policy Act of 1969, as amended, 42 U.S.C. sections 4321 et
seq. ("NEPA") and the related authorities listed in 24 CFR Part 58.
➢ The Clean Air Act, as amended, (42 U.S.C. Sections 1251 et seq.) and the Clean
Water Act of 1977, as amended (33 U.S.C. Sections 1251 et seq.), related Executive
Order 11738 and Environmental Protection Agency Regulations at 40 CFR Pai�t 15.
In no event shall any amount of the assistance provided under this Contract be
utilized with respect to a facility that has given rise to a conviction under the Clean
Air Act or the Clean Water Act.
➢ Immigration Refoim and Control Act of 1986 (8 U.S.C. Sections 1101 et seq.)
specifically including the provisions requiring employer verifications of legal status
of its employees
➢ The Americans with Disabilities Act of 1990 (42 U.S.C. Sections 12101 et seq.), the
Architectural Bai�-iers Act of 1968 as amended (42 U.S.C. sections 4151 et seq.) and
the Uniform Federal Accessibility Standards, 24 CFR Part 40, Appendix A
➢ Regulations at 24 CFR Part 87 related to lobbying, including the requirement that
certifications and disclosures be obtained from all covered persons
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➢ Diug Free Workplace Act of 1988 (41 U.S.C, Sections 701 et seq.) and 24 CFR Pai�t
23, Subpart F
➢ Executive Order 12549 and 24 CFR Part 5.105(c) pertaining to restrictions on
participation by ineligible, debat7ed or suspended persons or entities
➢ Regulations at 24 CFR Part 882.708(c) pei�taining to site and neighborhood standards
for new construction projects
➢ Regulations at 24 CFR Part 983.6 for Site and Neighborhood Standards Review
➢ Section 6002 of the Solid Waste Disposal Act, as amended by the Resource
Conservation and Recovery Act
➢ Guidelines of the Environmental Protection Agency at 40 CFR Part 247
➢ For contracts and subgl•ants for construction or repair, Copeland "Anti-Kicicback" Act
(18 U.S.C. 874) as supplemented in 29 CFR Part 5
➢ For constiuction contracts in excess of $2,000, and in excess of $2,500 for other
contracts which involve the employment of inechanics or laborers, Sections 103 and
107 of the Contract Worlc Houis and Safety Standards Act (40 U.S.C. 327A 300) as
supplemented by 29 CFR Part 5
➢ Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4801 et seq.), as amended by
the Residential Lead-Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851 et
seq.) and implementing regulations at 24 CFR Part 35, subparts A, B, M, and R
➢ Regulations at 24 CFR Part 92, Home Investment Partnerships Program Final Rule
➢ Unifoi�n Adininist�ative Requirements, Cost Principles, and Audit Requirements for
Federal Awards, 2 CFR Part 200 et seq.
➢ Federal Funding Accountability and Transparency Act of 2006, (Pub.L. 109-282, as
amended by Section 6205(a) of Pub.L. 110-252 and Section 3 of Pub.L. 113-101)
➢ Federal Whistleblower Regulations, 10 U.S.C. 2409, 41 U.S.C. 4712, 10 U.S.C.
2324, 41 U.S.C. 4304 and 41 U.S.C. 4310.
14.11 HUD-Assisted Proiects and Emplovment and other Economic
Opportunities; Section 3 Requiremeuts.
14.11.1 Requirement that Law Be Quoted in Covered Contracts. — Certain
Requirements Pertainin� to Section 3 of the Housin� and Urban
Development Act of 1968 as Amended (12 U.S.C. Sections 1701 et seq.)
and its Related Re�ulations at 24 CFR Part 135
If the construction of the Required Improvements will cause the creation of fzew
employment, training, or contracting opportunities on a contractor or subcontractor level
resulting from the expenditure of the HOME Funds, Developer shall comply with the following
and will ensure that its contractors also comply. If the work perfoimed under this Contract is on
a project assisted under a program providing direct Federal financial assistance from HUD,
Section 3 of 24 CFR Part 135 ("Section 3") requires that the following clause, shown in italics,
be inset�ted in all covered cont�acts ("Section 3 Clause"):
Section to be quoted in covered contracts begins:
"A. Tlie woriz to be peyfornied ur�der this contract is subject to the
i�eyuzrements of Section 3 of the Houszng cznd U�°ban Development Act of 1968, czs
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amendecl, 12 U.S.C. 1701 �a� (Sectioiz 3). The pitrpose of Section 3 zs to ens�a�re that
employ�nent and otheN econoniic opportt�nzties generated by HUD assisted or
HUD-assistance pr�ojects covered by Section 3, shall, to the gNeatest extent
feasible, be di�^ected to low- and very-low income per so�2s, particular�ly persons
who are recipients of HUD assistance for hotcsing.
B. The parties to tl�is contract ag�°ee to conaply with HUD's �^egulations in 24
CFR Part 135, which� implement Section 3. As evidenced by their execution of
thzs contract, the parties to this contract certify that they are under no conty�actual
or othei� iinpediment that would preve�2t thern fi°o�z complying with the Part 135
r•egulations.
C. The con��actor agrees to send to each labor orgaf�ization or
r•epresentatrve of wor�ke�°s wzth which the contractor has a collective bargainzng
agr•eement or other atndersta�2ding, if any, a�aotice advising the labor
organization or wor�kers' r•epresentative of the cont�°actor's comnutmerats undei°
this Section 3 clause, and will post copies of the notice i�a conspicc�ous places at
the woriz site where both employees and applicants for t�°ai�2z�ag and employmei2t
positions can see the notice. The notice shall descr�ibe the Section 3 p�•efef•ence,
shall set fo�°th mznimum number and job titles subject to hire, availability of
apprenticeship and tr•aining positions, the qualifications fo�� each; and the name
and location of the pey�so�a(s) taliing applications foi� each of the posztzons; und the
anticipated date the work shall begin.
D. The cor2��acto�� agr�ees that to inclacde this Section 3 claZrse in eve�y
sz�bco�atract subject to cornpliance with regulations in 24 CFR Part 135, and
ag��ees to take appr�opr�iate action, as pr�ovided in an applicable pr�ovisio�2 of the
slabcontract or in this Section 3 clause, upon a fzndzng that the subcotZtractor is i�a
violatzon of the regtclutions in 24 CFR Pa�°t 135. The cont�°acto�• wzll not
satbcontract with any szcbcoritractor where the contractor has notice or Icnowledge
that the subcont�°acto�° has been foccnd in violation of the regulations in 24 CFR
par•t 135.
E. Tlae cont�°actor• will certify that any vacant employment positions,
i�Zcluding training positions that are fillecl (1) after• the contracto�� is selectec� but
befo�°e tlae contr�act is executetl, cznd (2) with persons othe�° tlZan tlaose to who�n the
r•egulatiofzs of 24 CFR Part 135 require employ�nent opportunities to be directed,
we��e not filled to ci�°cacmvent the contractor°'s obligations under• 24 CFR part 135.
F. Noncompliance with HUD's regulation in 24 CFR Part 135 i�2ay result in
scinctions, te�°mination of this cont�°ctct for defa�aslt, and c�eba�°ment or� suspension
from future HUD assisted contracts.
G. Wzth r•espect to wo��k pe�for�med in connection wzth Section 3 coverecl
Inc�ian housing assistance, section 7(b) of the bzdzan Self-Determination and
Edt�cation Assistance Act (25 U.S,C. 450e) also c�pplies to the wof•Ii to be
performecl under this Cont��act. Section 7(b) ��equires tl�at to tlie gr�eatest extent
feaszble (i) preference and oppo��tunities for training cznd e�nployment shall be
given to Indians, and (ii) pi�eference in the awat•d of contr•acts a�zd subcontr�acts
shall be given to Indiczn organizc�tio��s and Indic�n-owned Economic Ente�prises.
Partzes to this co�atract that are subject to the provisio�Zs of Section 3 and Sectzo�2
7(b) agree to comply with Section 3 to tlae nzaximurn extent feaszble, bttt not in
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derogation of conzpliance witla Section 7(b). "
Section to be quoted in covered contracts ends.
14.11.2 Developer Responsibilities for Section 3 Requirements.
City and Developer understand and agree that compliance with the provisions of Section
3, the regulations set forth in 24 CFR Part 135, and all applicable rules and orders of HUD shall
be a condition of the Federal financial assistance provided to the project binding upon City and
Developer and their respective successors, assigns, contractors and subcontractors. Failure to
fulfill these requirements shall subject Developer and its contractors and subcontractors and their
respective successors and assigns to those sanctions speciiied by the grant agreement through
which Federal assistance is provided and to such sanctions as are specified by 24 CFR Part 135.
Developer's responsibilities include:
14.11.2.1 Implementing procedures to notify Section 3 residents and
business concerns about training, employment, and contracting
opportunities generated by Section 3 covered assistance;
14.11.2.2 Notifyillg potential contractors worlcing on Section 3 covered
projects of their responsibilities;
14.11.2.3 Facilitating the training and employment of Section 3 residents
and the award of contracts to Section 3 business concerns;
14.11.2.4 Assisting and actively cooperating with the Neighborhood
Seivices Department m mal�ing contractors and subcontractors
comply;
14.11,2.5 Refraining fi•om entering into contracts with contractors that are
in violation of Section 3 regulations;
14.11.2.6 Documenting actions talcen to comply with Section 3; and
14.11.2.7 Submitting Section 3 Annual Summaiy Reports (Foi7n HUD-
60002) in accordance with 24 CFR Part 135.90.
14.11.3 Section 3 Renortin� Requirements.
In order to comply with the Section 3 requirements, Developer must submit the foims
attached hereto as Exhibit "I" - Section 3 Reporting Forms and talce the following actions:
14.11.3.1 Report to the City all applicants for employment by contractor
and subcont�actor on a quarterly basis. This shall include name,
address, zip code, date of application, and status (hired/not hir•ed)
as of the date of the report.
14.11.3.2 Advertise available positions to the public for open competition,
and provide documentation to City with the quarterly report that
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demonstrates such open advertisement, in the form of printout of
Texas Worlcforce Commission posting, copy of newspaper
advertisement, copy of flyers and listing of locations where
flyers were distr7buted, and the like.
14.11.3.3 Report to City all contracts awarded by contractor and
subcontractar on a quarterly basis. This shall include name of
contractor and/or subcontractor, address, zip code, and amount of
award as of the date of the report.
14.12 Prohibition Against Discrimination.
14.12.1 General Statement.
Developer shall comply in the execution, performance or attempted performance of this
Contract with all non-discrimination requirements of 24 CFR Part 92.350 and Chapter 17,
Article III, Division 4— Fair Hoassing of the City Code. Developer may not discriminate against
any person because of race, color, sex, gender, religion, national origin, familial status, disability
or perceived disability, sexual orientation, gender identity, gender expression, or t�ansgender, nor
will Developer pei�nit its officers, members, agents, employees, vendors or project participants
to engage in such discrimination.
This Contract is made and entered into with reference specifically to Chapter 17, Article
III, Division 3- Erreployntent Pructices of the City Code, and Developer hereby covenants and
agrees that Developer, its officers, members, agents, employees, vendors and contractors, have
fully complied with all provisions of same and that no employee, or applicant for employment
has been discriminated against under the tei�ns of such ordinances by either or its of�cers,
members, agents, employees, vendors or contractors.
14.12.2 No Discrimination in Employment durin� the Performance of this
Contract.
During the performance of this Contract Developer agrees to the following provision, and
will require that its contractors, subcontractors and vendors also comply with such provision by
including it in all contracts with its contractors, subcontractors or vendors:
f Contr°acto�°'s, Szabcont�°actor�'s o�• Vendor's Na�nel will not unlawfully discriminate against
any employee or applicants for employment because of race, color, sex, gender, religion, national
origin, fainilial status, disability or perceived disability, sexual orientation, gender identity,
gender expression or transgender. f Contractor's, Sz�bcont�actor's or T�endors Nanze�_ will
take affirmative action to ensure that applicants are hired without regard to race, color, sex,
gender, religion, national origin, familial status, disability or perceived disability, sexual
orientation, gender identity, gender expression or transgender and that employees are treated
fairly during employment without regard to theu race, color, sex, gender, religion, national
origin, familial status, disability or perceived disability, sexual orientation, gender identity,
gender expression or transgender. Such action shall include, but not be limited to, the following:
employment, upgrading, demotion or t�ansfer, recruitment or recruitment adver-tising, layoff or
termination, rates of pay or other foi�ns of compensation, and selection for training, including
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apprenticeship. [Contr�actor's, Subcontractor's oi� Vendo��'s Namel agrees to post in conspicuous
places, available to employees and applicants for employment, notices setting forth the
provisions of this nondiscrimination clause.
�Contractor's, Sicbcontr�actor's or Tjendor�'s Name� will, in all solicitations or
advertisements for employees placed by or on behalf of _[Contractor's, Subcontractor's or
Ve�aclor's Nan�e1 , state that all qualified applicants will receive consideration for employment
without regard to race, color, sex, gender, religion, national origin, familial status, disability or
perceived disability, sexual orientation, gender identity, gender expression or t��ansgender.
_[Co�atractor's, Subcont��actor�'s or Vendoi°'s Name� covenants that neither it nor any of its
officers, members, agents, employees, or contractors, while engaged in performing this Contract,
shall, in connection with the employment, advancement or discharge of employees or in
connection with the terms, conditions or privileges of their employment, discriminate against
persons because of their age or because of any disability or perceived disability, except on the
basis of a bona fide occupational qualification, retirement plan or statutory requirement.
[Cofatractor's, Subcontr•acto��'s or Vendor's Namel further covenants that neither it nor its
officers, meinbers, agents, employees, cont�•actors, or persons acting on their behalf, shall
specify, in solicitations or advertisements for employees to worlc on this Contract, a maximum
age limit for such employment unless the specified maximum age limit is based upon a bona fide
occupational qualification, retirement plan or statutory requirement.
14,12.3 Developer's Contractors and the ADA.
In accordance with the provisions of the Americans With Disabilities Act of 1990
("ADA"), Developer warrants that it and any of its contractors will not unlawfully discriminate
on the basis of disability in the provision of seivices to the general public, nor in the availability,
terms and/or conditions of employment for applicants for employment with, or employees of
Developer or any of its contractors. DEVELOPER WARRANTS IT WILL FULLY
COMPLY WITH THE ADA'S PROVISIONS AND ANY OTHER APPLICABLE
FEDERAL, STATE AND LOCAL LAWS CONCERNING DISABILITY AND WILL
DEFEND, INDEMNIFY AND HOLD CITY HARMLESS AGAINST ANY CLAIMS OR
ALLEGATIONS ASSERTED BY THIRD PARTIES, CONTRACTORS,
SUBCONTRACTORS OR VENDORS AGAINST CITY ARISING OUT OF
DEVELOPER'S AND/OR ITS CONTRACTORS', SUBCONTRACTORS', VENDORS',
AGENTS' OR EMPLOYEES' ALLEGED FAILURE TO COMPLY WITH T�-IE ABOVE-
REFERENCED LAWS CONCERNING DISABILITY DISCRIMINATION IN THE
PERFORMANCE OF THIS CONTRACT.
14.13. Prohibition A�ainst Interest / Conflict of Intei•est.
14.13,1 Developer shall establish safeguards to prohibit its employees, board
members, advisors and agents from using positions for a puipose that is or gives the appearance
of being motivated by a desire for private gain for themselves or others, particularly those with
whom they have family, business or other ties. Developer shall disclose to City any such conflict
of interest or potential conflict of interest immediately upon discovery of same.
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14.13.2 No employees, agents, consultants, officers or elected officials or appointed
officials of City or of Developer who exercise or have exercised any functions or responsibilities
with respect to activities assisted with HOME funds or who are in a position to participate in a
decision-malcing process or gain inside infoi�nation with regard to these activities may occupy a
HOME-assisted housing unit, may obtain a financial interest or benefit fiom a HOME-assisted
activity, or have an interest in any cont�•act, subcontract or agreement with respect thereto, or the
proceeds thereunder, either for themselves or those with whom they have family or business ties,
during their tenure or for 1 year thereafter, unless they are accepted in accordance with the
procedures set forth at 24 CFR Part 92.356.
14.13.2.1 Developer shall establish conflict of interest policies for Federal
Awards and shall provide such policies in writing to City in
accordance with the requirements of 2 CFR Part 200.112.
14.13.3 Disclosure of Conflicts of Interest.
In compliance with 2 CFR Part 200.112, Developer is required to timely disclose to City
in writing any potential conflict of interest, as described in this Section.
14.13.4 Disclosure of Texas Penal Code Violations.
Developer affirms that it will adhere to the provisions of the Texas Penal Code which
prohibits bribery and gifts to public servants.
14.13.5 Disclosure of Federal Criminal Law Violations.
In compliance with 2 CFR Pa.rt 200.113, Developer is required to timely disclose to City
all violations of federal criminal law involving fraud, bribery or gratuity violations potentially
affecting this Agreement.
14.14 Labor Standards.
14.14.1 As applicable, Developer agrees to comply with the requirements of the
Secretary of Labor in accordance with the Davis-Bacon Act (40 U.S.C. 276a-7) as amended, the
provisions of Contract Worlc Hours and Safety Standards Act (40 U.S.C. 327 et seq.) and all
other applicable Federal, state and local laws and regulations pet-taining to labor standards
insofar as those acts apply to the peiformance of this Contract. Developer agrees to comply with
the Copeland Anti-I�ick Back Act (18 U.S.C. 874 et seq.) and the implementing regulations of
the United States Department of Labor at 29 CFR Part 5. Developer shall maintain
documentation that demonstrates compliance with hour and wage requirements of this Contract
and the HOME Regulations. Such documentation shall be made available promptly to City for
review upon request.
14.14.2 Developer agrees that, except with respect to the rehabilitation or construction
of residential property containing less than 12 units assisted with HOME funds, all contractors
engaged under cont�act for construction, renovation or t•epair work financed in whole or in part
with assistance provided under this Cont�act, shall comply with Federal requirements adopted by
City pertaining to such contracts and with the applicable requirements of the regulations of the
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Department of Labor under 29 CFR Parts 1, 3, 5 and 7 goveining the payment of wages and ratio
of apprentices and trainees to jotuney workers; provided that, if wage rates higher than those
required under these regulations are imposed by state or local law, nothing hereunder is intended
to relieve Developer of its obligation, if any, to require payment of the higher wage. Developer
shall cause or require to be inserted in full provisions meeting the requirements of this paragraph
in all such contracts subject to such regulations.
14.14.3 If Davis-Bacon is applicable, Developer shall provide City access to einployee
payrolls, contractor and subcontractor payrolls and other wage information for persons
perfoi�ning construction of the Required Improvements. Payrolls must be submitted to the
Neighborhood Services Department with each Reimbursement Request, and must be available to
Neighborhood Seivices Department staff upon request. In addition, Developer shall ellsure that
City will have access to employees, contractoi•s and subcont�•actors and their respective
employees in order to conduct onsite intetviews with laborers and mechanics. Developer shall
inform its contractors and subconti•actors that City staff or representatives of Federal agencies
may conduct periodic employee wage inteiview visits during construction of the project to
ensure compliance.
14.15 Subcontractin� with Small and Minority Firms, Women's Business
Enterprises and Labor Surplus Areas.
14.15.1 For procurement contracts $50,000.00 or larger, Developer agrees to abide
by City's policy to involve Minority Business Enteiprises and Small Business Enteiprises and to
provide them equal opportunity to compete for contracts for constiuction, provision of
professional seivices, purchase of equipment and supplies and provision of other seivices
required by City. Developer agrees to incorporate the City's BDE Ordinance, and all
amendments or successor policies or ordinances thereto, into all contracts and subcontracts for
procurement $50,000.00 or larger, and will further require all persons or entities with which it so
contracts to comply with said ordinance.
14.15.2 It is national policy to award a fair share of contracts to disadvantaged
business enteipr•ises ("DBEs"), small business enterprises ("SBEs"), minority business
enterprises ("MBEs"), and women's business enteipi7ses ("WBEs"). Accordingly, affirmative
steps must be talcen to assure that DBEs, SBEs, MBEs, and WBEs are utilized when possible as
sources of supplies, equipment, const�uction and selvices.
14.15.3 In order to comply with the reporting requirements of 24 CFR Part 92.508
(a)(7)(ii) , Developer must submit the form attached hereto as Exhibit ��K" — MBE Reporting
Form for each contract or subcontract with a value of $25,000 or more paid, or to be paid, with
HOME funds. This form shall be submitted with the final Reimbursement Request,
14.16 Other Laws.
The failure to list any Federal, State or City ordinance, law or regulation that is applicable
to Developer does not excuse or relieve Developer from the requirements or responsibilities in
regard to following the law, nor fiom the consequences or penalties for Developer's failure to
follow the law, if applicable.
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14.17 Assignment.
Developer shall not assign all or any part of its rights, privileges, or duties under this
Contract without the prior written approval of City. Any attempted assignment of same without
approval shall be void, and shall constitute a breach of this Contract. Any approved assignment
of this Contract shall include assumption of the HOME Loan.
14.18 Ri�ht to Inspect Developer Contracts.
It is agreed that City has the right to inspect and approve in wi7ting, prior to any charges
being incurred, any proposed contracts between Developer and (i) its general contractor and
subcont�actors, including any lower tier subcontractors engaged in any activity that is funded as
part of the construction of the Required Improvements, (ii) vendor contracts arising out of the
constztiiction or sale of the Required Improvements, and (iii) any third parry contracts to be paid
with HOME Funds.
14.19 Force Majeure.
If Developer becomes unable, either in whole or pai-t, to fulfill its obligations under this
Contract due to acts of God, strilces, locicouts, or other industrial disturbances, acts of public
enemies, wars, blocicades, insui�ections, riots, pandemics and epidemics, earthqual�es, fires,
floods, restraints or prohibitions by any court, board, department, commission or agency of the
United States or of any States, civil disturbances, or explosions, or some other reason beyond
Developer's control (collectively, "Force Majeure Event"), the obligations so affected by such
Force Majeure Event will be suspended only during the continuance of such event and the
completion date for such obligations shall be extended for a lilce period. Developer will give
City written notice of the existence, extent and nature of the Force Majeure Event as soon as
reasonably possible after the occurrence of the event. Failure to give notice will result in the
continuance of Developer's obligation regardless of the extent of any existing Force Majeure
Event. Developer will use commercially reasonable efforts to remedy its inability to perform as
soon as possible.
14.20 Survival.
Any provision of this Contract that pertains to the HOME Requirements, indemnity
obligations, reporting requirements, auditing, monitar-ing, homebuyer income eligibility, record
lceeping and reports, City ordinances, the provisions of Section 6.6 pertaining to SAM, or any
other HOME Program requirements, and any default and enforcement provisions necessary to
enforce such provisions, shall sutvive the term or earlier tei�rnination of this Contract for• 5 years
after the termination date and shall be enforceable by City against Developer.
15. INDEMNIFICATION AND RELEASE.
DEVELOPER COVENANTS AND AGREES TO INDEMNIFY, HOLD
HARIVII�ESS AND DEFEND, AT ITS OWN EXPENSE, CITY AND ITS OFFICERS,
AGENTS, SERVANTS AND EMPLOYEES FROM AND AGAINST ANY AND ALL
CLAIMS OR SUITS OF ANY KIND OR CHARACTER, INCLUDING BUT NOT
LIMITED TO CLAIMSFOR PROPERTY LOSS OR DAMAGE AND/OR PERSONAL
INJiTRY, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF WHATSOEVER
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HIND OR CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR
IN CONNECTION WITH THE EXECUTION, PERFORMANCE, ATTEMPTED
PERFORMANCE OR NONPERFORMANCE OF THIS CONTRACT AND/OR THE
OPERATIONS, ACTIVITIES AND SERVICES DESCRIBED HEREIN, WHETHER OR
NOT CAUSED IN WHOLE OR IN PART, BY ALLEGED NEGLIGENCE OF
OFFICERS, AGENTS, SERVANTS, EMPLOYEES, CONTRACTORS OR
SUBCONTRACTORS OF CITY, AND DEVELOPER HEREBY ASSUMES ALL
LIABILITY AND RESPONSIBILITY OF CITY AND ITS OFFI�ERS, AGENTS,
SERVANTS, AND EMPLOYEES FOR ANY AND ALL CLAIMS OR SUITS FOR
PROPERTY LOSS OR DAMAGE AND/OR PERSONAL INJURY, INCLUDING
DEATH, TO ANY AND ALL PERSONS, OF WHATSOEVER KINDS OR
CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN
CONNECTION WITH THE EXECUTION, PERFORMANCE, ATTEMPTED
PERFORMANCE OR NONPERFORMANCE OF THIS CONTRACT AND
AGREEMENT AND/OR THE OPERATIONS, ACTIVITIES AND SERVICES
DESCRIBED HEREIN, WHETHER OR NOT CAUSED IN WHOLE OR IN PART BY
ALLEGED NEGLIGENCE OF OFFICERS, AGENTS, SERVANTS, EMPLOYEES,
CONTRACTORS OR SUBCONTRACTORS OF CITY. DEVELOPER FURTHER
COVENANTS AND AGREES TO AND DOES HEREBY INDEMNIFY AND HOLD
HARMLESS CITY FROM AND AGAINST ANY AND ALL INJURY, DAMAGE OR
DESTRUCTION OF PROPERTY OF CITY, ARISING OUT OF OR IN CONNECTION
WITH ALL ACTS OR OMISSIONS OF DEVELOPER, ITS OFFICERS, MEMBERS,
AGENTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS, VENDORS,
1NVITEES, LICENSEES, OR PROJECT PARTICIPANTS, OR CAUSED, IN WHOLE
OR IN PART, BY ALLEGED NEGLIGENCE OF OFFICERS, AGENTS, SERVANTS,
EMPLOYEES, CONTRACTORS OR SUBCONTRACTORS OF CITY.
IT IS THE EXPRESS INTENTION OF THE PARTIES, BOTH DEVELOPER
AND CITY, THAT THE INDEMNITY PROVIDED FOR IN THIS SECTION INCLUDES
INDEMNITY BY DEVELOPER TO INDEMNIFY AND DEFEND CITY FROM THE
CONSEQUENCES OF CITY'S OWN NEGLIGENCE, WHETHER TAAT
NEGLIGENCE IS ALLEGED TO BE THE SOLE OR CONCURRING CAUSE OF THE
INJURY, DAMAGE OR DEATH.
DEVELOPER AGREES TO AND SHALL RELEASE CITY, ITS AGENTS,
EMPLOYEES, OFFICERS AND LEGAL REPRESENTATIVES FROM ALL
LIABILITY FOR INJURY, DEATH, DAMAGE OR LOSS TO PERSONS OR
PROPERTY SUSTAINED IN CONNECTION WITH OR INCIDENTAL TO
PERFORMANCE UNDER THIS CONTRACT, EVEN IF THE INJURY, DEATH,
DAMAGE OR LOSS IS CAUSED BY CITY'S SOLE OR CONCURRENT
NEGLIGENCE.
DEVELOPER SHALL REQUIRE ALL OF ITS CONTRACTORS,
SUBCONTRACTORS AND VENDORS TO INCLUDE IN THEIR CONTRACTS AND
SUBCONTRACTS A RELEASE AND INDEMNITY IN FAVOR OF CITY IN
SUBSTANTIALLY THE SAME FORM AS ABOVE.
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DEVELOPER'S SEPARATE DUTY TO DEFEND CITY SHALL BE AT
DEVELOPER'S SOLE COST BUT SHALL BE AT THE CITY'S OPTION. IN THE
EVENT THE CITY DECIDES TO PERFORM ITS OWN DEFENSE, EITHER
DIRECTLY OR BY HIRING A DEFENSE, DEVELOPER SHALL BE RESPONSIBLE
FOR ANY AND ALL FEES, COSTS, OR OTAER EXPENSES OF ANY HIND IN
CONNECTION WITH THE PROVISION OF THE DEFENSE. THE DUTY TO DEFEND
SHALL ARISE AT THE MOMENT THAT CITY OR DEVELOPER IS NOTIFIED OF A
CLAIM AGAINST CITY IS MADE IN CONNECTION WITH ANY ALLEGED
ACTION, INACTION, OCCURANCE, OR NONOCCL]R�NCE IN CONNECTION
WITH OR FOR THE FURTHERANCE OF THE OBJECTIVES OF THIS CONTRACT.
16. WAIVER OF IMMUNITY BY DEVELOPER.
If Developer, as a charitable or nonprofit organization, has or claims an immunity or
exemption (statutory or otherwise) from and against liability for damages or injuty, including
death, to persons ar� property, Developer hereby expressly waives its rights to plead defensively
such immunity or exemption as against City. This Section shall not be constiued to affect a
govei�rriental entity's immunities under constitutional, statutoiy or common law.
17. INSURANCE AND BONDING.
Developer will maintain coverage in the form of insurance or bond in the amount of
$209,135.00 to insLue against loss from the fraud, theft or dishonesty of any of Developer's
officers, agents, tntstees, directors or employees. The proceeds of such insurance or bond shall
be used to reimburse City for any and all loss of HOME Funds occasioned by such misconduct.
To effectuate such reimbursement, such fidelity coverage shall include a rider stating that
reimbursement for any loss or losses shall name City as a Loss Payee.
Developer shall furnish to City, in a timely manner, but not later than 10 calendar days
after the Effective Date, certificates of insurance as proof that it has secured and paid for policies
of commercial insurance as specified herein. If City has not received such certificates as set
forth herein, Developer shall be in default and City may at its option tei�ninate this Contract.
Such insurance shall cover all insurable risks incident to or in connection with the
execution, performance, attempted performance or nonperformance of this Contract, Developer
shall maintain, or require its general contractor to maintain, the following coverages and limits
thereo£
Commercial General Liabilit�CGL) Insurance
$1,000,000 each occurrence
$2,000,000 aggregate limit
Business Automobile Liability Insurance
$1,000,000 each accident on a combined single-limit basis, or
$ 250,000 Properry Damage
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$ 500,000 Bodily Injury per person per occui�ence
$1,000,000 Aggregate
Insurance policy shall be endorsed to cover "Any Auto" defined as autos owned,
hired and non-owned. Pending availability of the above coverage and at the discretion
of City, the policy shall be the primary responding insurance policy versus a personal
auto insurance policy if or when in the course of Developer's business as contracted
herein.
Worlcers' Compensation Insurance
Pat�t A: Statutory Limits
Part B: Employer's Liability
$100,000 each accident
$100,000 disease-each employee
$500,000 disease-policy limit
Note: Such insurance shall cover employees performing work on any and all projects
including but not limited to construction, demolition, and rehabilitation. Developer or its
contractors shall maintain coverages, if applicable. In the event the respective contractors
do not maintain coverage, Developer shall maintain the coverage on such contractor, if
applicable, for each applicable contract.
Additional Requirements
Such insurance amounts shall be revised upward at City's reasonable option and no more
frequently than once every 12 months, and Developer shall revise such amounts within 30 days
following notice to Developer of such requirements.
Developer will submit to City documentation that it, and its general cont�actor, have obtained
insurance coverage and have executed bonds as required in this Contract prior to payment of any
monies provided hereunder.
Where applicable, insurance policies required herein shall be endorsed to include City as an
additional insured as its interest may appear. Additional insured parties shall include employees,
ofiicers, agents, and volunteers of City.
The Worlcers' Compensation Insurance policy shall be endorsed to include a waiver of
subrogation, also refei7 ed to as a waiver of rights of recovery, in favor of City.
Any failure on part of City to request cei�tificate(s) of insurance shall not be construed as a
waiver of such requirement or as a waiver of the insurance requirements themselves.
Insurers of Developer's instuance policies shall be licensed to do business in the State of Texas
by the Depai�tment of Insurance or be otherwise eligible and authorized to do business in the state
of Texas. Insurers shall be acceptable to City insofar as their iinancial strength and solvency and
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each such company shall have a cut�•ent minimum A.M. Best Key Rating Guide rating of A: VII
or other equivalent insurance industry standard rating otherwise approved by City.
Deductible limits on insurance policies shall not exceed $5,000 per occurrence unless otherwise
approved by City.
In the event there are any local, Federal or other regulatory insurance or bonding requirements
for the project, and such requirements exceed those specified herein, the foi7ner shall prevail.
Developer shall require its contractors to maintain applicable insurance coverages, limits, and
other requirements as those specified herein; and, Developer shall require its contractors to
provide Developer with certificate(s) of insurance documenting such coverage. Also, Developet•
shall require its conh•actors to have City and Developer endorsed as additional insureds (as their
interest may appear) on their respective insurance policies.
Professional Liability coverage shall be in force and may be provided on a claims made basis.
This coverage may also be refei7ed to as Management Liability, and shall protect the insured
against claims arising out of alleged errors in judgment, breaches of duty and wrongful acts
arising out of their management duties.
Developer shall require its general conh•actor to maintain builders rislc insurance at the value of
the construction.
18. CERTIFICATION REGARDING LOBBYING.
Developer hereby certifies, to the best of its lcnowledge and belief, that:
No Fedef°al appi�op�°iated fitfzds have been paid or� wzll be paid, by or° on behalf of
Developer, to any persor2 for ir2fluencing or attempting to ijzfluence an officer or�
employee of any ugency, a membeJ� of Congt•ess, an officer or enaployee of
Cong�•ess in connection with the awarcling of a�zy Federal contract, the mal�ing of
any Federal g�°cznt, the mal�ing of a�iy Federal loan, the� enter�ing into of any
cooperative agreenaent a�zd the extensio�a, continuation, renewal, ame�zdment, or
modification of any Federal contr•act, g�•ant, loan or coopertttive agNeement.
If uny fiarzds other tlzan feclerally upp�°opr°zc�ted fi�nds have been paid or wzll be
paid to any pe�^son for• influencing or attempting to influence ara officer or•
employee of any agency, mernber of Congress in co�anection witla this Fecle��al
contr�act, gr�ant, loan o�• cooperative agr•eement, Developer shall complete and
submit Stc�ndard Forfn-LLL, `Disclosi�re Fo�°m to Report Lobbying, " in
accordance with its instructions.
Tlzis cej°tificatzon is a material repr•esentation of fact upon which r�eliance was
placed when this Cont��act wc�s made or ente�°ecl i�zto. Subnzission of this
certificate is a prerequisite for mal�ing or• enter•ing i�ato this Contract i�nposed by
31 US.C. Section 1352. Any person who fails to file the required ce7°tification
CHDO SINGLE FAMILYCONTRACT Page 44
Ash Crescent Single Family In�ll Project
Development Corporation of Tarrant County — 2713 Ash Crescent Street Rev. 03/04/2021
sh�all be s�ubject to a civil penalty of �aot less thafz $10,000.00 and not mo��e than
$100,000.00 fo�° each such failur�e.
Developer shall require that the language of this certification be included in all
subcontracts or agreements involving the expenditure of Federal funds.
19. RELIGIOUS ORGANIZATION.
Developer shall comply with all applicable requirements as more particularly described
in 24 CFR Part 5.109. No poi�tion of the HOME Funds shall be used in suppol-t of any sectarian
or religious activity. In addition, there must be no religious or membeiship criteria for clients of
a HOME-fiinded ttnit,
19.1. Separation of Explicitly Reli�ious Activities.
Developer retains its independence and may continue to carry out its mission, including
the definition, development practice, and expression of its religious beliefs, pr•ovided that it does
not use HOME Funds to support or engage in any explicitly religious activities (including
activities that involve ovet-t religious content such as worship, religious instruction, or
proselytization), or in any other manner prohibited by law.
19.2 Explicitly Reli�ious Activities.
If Developer engages in explicitly religious activities (including activities that involve
overt religious content such as worship, religious instruction, or proselytization), the explicitly
religious activities must be offered separately, in time or location, fiom the programs or activities
supported by HOME Funds and participation must be voluntary for clients of a HOME-funded
unit.
20. LITIGATION AND CLAIMS.
Developer shall give City immediate notice in writing of any action, including any
proceeding before an administrative agency, filed against Developer in conjunction with this
Cont��act or the project. Developer shall furnish immediately to City copies of all pertinent
papers received by Developer with respect to such action or claim. Developer shall provide a
notice to City within 10 calendar days upon iiling under any banl�-uptcy or financial insolvency
provision of law,
21. NOTICE.
All notices required or permitted by this Contract must be in writing and shall be effective
upon receipt when (i) sent by U.S. Mail with proper postage, certified mail return receipt
requested or by a nationally recognized overnight delivery seivice; and (ii) addressed to the other
Party at the address set out below or at such other address as the receiving Party designates by
proper notice to the sending Party.
C�tv:
City Attorney's Office
200 Texas Street
CHDO SINGLE FAMILYCONTRACT Page 45
Ash Crescent Singie Family Infill Project
Development Corporation of Tarrant County — 2713 Ash Crescent Street Rev. 03/04/2021
Fort Woi-th, TX 76102
Attention: Jo Ann Pate
Telephone: 817-392-6259
Copy to:
Neighborhood Seivices Department
200 Texas Street
For•t Worth, TX 76102
Attention: Assistant Director
Telephone : 817-3 92-7540
Developer:
Development Corporation of Tai�rant County
1509-B S. University Dr., Suite 208
Foi�t Worth, TX 76102
Attention: President
Telephone: 817-870-9008
22. DEVELOPER HAS LEGAL AUTHORITY TO ENTER INTO CONTRACT.
Developer represents that it possesses the legal authority, pursuant to any proper,
appropriate and official motion, resolution or action passed or taken, to enter into this Contract
and to perform the responsibilities herein required.
23. IMMIGRATION NATIONALITY ACT.
Developer shall verify the identity and employment eligibility of its employees who
perfonn work under this Contract, including completing the Employment Eligibiliry Verification
Form (I-9). Upon request by City, Developer shall provide City with copies of all I-9 forms and
supporting eligibility documentation for each employee who perfoi�rns worlc under this Contr•act.
Developer shall adhere to all Federal and State laws as well as establish appropriate procedures
and controls so that no seivices will be perfoi7ned by any Developer employee who is not legally
eligible to perfarm such services. DEVELOPER SHALL INDEMNIFY CITY AND HOLD
CITY HAI2MLESS FROM ANY PENALTIES, LIABILITIES, OR LOSSES DUE TO
VIOLATIONS OF THIS PARAGRAPH BY DEVELOPER, DEVELOPER'S
EMPLOYEES, SUBCONTRACTORS, AGENTS, OR LICENSEES. City, upon written
notice to Developer, shall have the right to immediately terminate this Cont�act for violations of
this provision by Developer."
24. BOYCOTTING ISRAEL PROHIBITED.
If Developer is a company with 10 or more full-time employees and if this Contract is
for $100,000.00 or more, Developer acknowledges that in accordance with Chapter 2270 ofthe
Texas Government Code, City is pi•ohibited fi•om entering into a contract with a company for
good or seivices unless the cont�act contains a written verification from the company that it:
(1) does not boycott Israel; and (2) will not boycott Israel dul-ing the term of the conh•act. The
CHDO SINGLE FAMILYCONTRACT Page 46
Ash Crescent Single Family In�ll Project
Development Corporation of Tai•rant County — 2713 Ash Crescent Street Rev. 03/04/2021
Terms "boycott Israel" and "company" shall have the meanings ascribed to those terms
in Section 808.001 of the Texas Govei�unent Code. If applicable under this Contract and
Developer is considered a"company," by signing this Cont�•act, Developer cei�tifies that
Developer's signature provides written verification to City that Developer: (1) does not
boycott Israel; and (2) will not boycott Israel during the term of this Contract.
25. COUNTERPARTS.
This Contract may be executed in multiple counterparts, each of which shall be
considered an original, but all of which shall constitute one instrument which may be sufficiently
evidenced by one counterpart.
[SIGNATURES APPEAR ON NEXT PAGE]
CHDO SINGLE FAMILYCONTRACT Page 47
Ash Crescent Single Family Infill Project
Development Corporation of Tarrant County — 2713 Ash Crescent Street Rev. 03/04/2021
EXECUTED to be effective as of the Effective Date.
ATTEST:
CITY OF FORT WORTH
`����' 0 � � cL
Fernando Costa (Apr22, 202113:55 CDT)
Y'
Mary J. Kayser, City Secretaiy Fernando Costa, Assistant City Manager
M&C 20-0197 Date: 3/24/2020 Date: Apr 22, 2o2i
1295 Cert. No.: 2020-581741
APPROVED AS TO FORM AND LEGALITY:
-�„-
�� P;�ie cn��z . ozi iz�
Jo Ann Pate, Assistant City Attotney
City of Fort Worth Agreement Compliance
Mauager:
By signing I acicnowledge that I am the person responsible
for the monitoring and administration of this contract, including
ensuring all performance and reporting requirements.
�%�,. ,
Chad LaRoque, Housing Development and Grants Manager
DEVELOPMENT CORPORATION OF
TARRANT COUNTY
�G< �2 /'
By:
Charles Price, President
Date: Mar25,2021
CHDO HOME CONTRACT Signature Page
Ash Crescent Infill Pi•oject
Tarc•ant County Development Corporation — 2713 Ash C►•escent Street
EXHIBITS:
Exhibit "A" — Project Summary — Scope of Work
Exhibit "A-1" — Final Elevations
Exhibit "A-2" — Environmental Mitigation Action
Exhibit "B" — Budget
Exhibit "C" — Construction and Reimbursement Schedule
Exhibit "D" — Audit Requirements
Exhibit "E" — Loan Documents
Exhibit "F" — Reimbursement Forms
Exhibit "G" — HOME Project Compliance Report (Single Family)
Exhibit "H" — Federal Labor Standards Provisions - Davis-Bacon Requirements
Exhibit "I" — Section 3 Reporting Forms
Exhibit "J" — Standat•ds for Complete Documentation
Exhibit "K" — MBE Reporting Form
CHDO HOME CONTRACT Page 48
Ash Crescent Infill Project
Tarrant County Development Corporation — 2713 Ash Crescent Street Rev. 03/04/2021
EXHIBIT "A"
PROJECT SUMMARY - SCOPE OF WORK
DEVELOPMENT CORPORATION OF TARRANT COUNTY
2713 Ash Crescent
Capitalized terms not defined herein shall have meanings assigned to thern in the Conh�act.
DESCRIPTION:
Developer will consti•uct an approximately 1,600 square foot, 3-bedroom, 2-bath single family house
on a lot size of approximately 5,000-7,000 square feet. Construction will include an attached two-car
garage, which is not included in the square footage calculation. Fencing will be located at the rear and
side yards. Landscaping will be include in the front yard.
The consh•uction of the house shall contain any reasonable and necessary accessibility requirements
requested by a disabled HOME Eligible Buyer. If the cost of such accessibility requirements exceeds
the Budget for the construction of the house, such additional expense shall be paid by the HOME
Eligible Buyer.
Developer must provide the demographic information on the attached Exhibit "G" HOME Project
Compliance Report.
The following appliances and related amenities will be included in the sale of the house:
• Washer and Dryer hoolcups
• Central Air Conditioning and Heating
• Stove
• Oven
• Dishwasher
• Vent-a-hood
• Garbage Disposal
• Electric Garage Door with Remote
• Mailbox located at door
• Refi�igerator is not required to be furnished by Developer
The following materials shall be used for the construction of the house:
• Fence (back yard)
• Landscaping (fi•ont)
• Roofing Materials 3 TAB 25 YR
• Siding (percentage) 100%
• Foundation Type Post Tension
• HVAC 15 Seer Heat Pump
CHDO SINGLE FAMILY CONTRACT
Ash Crescent Siugle Family Infill Project
Development Corporation of Tarrant County — 2713 Ash Ci•escent Rev 03/04/2021
EXHIBIT "A-1"
FINAL ELEVATIONS
DEVELOPMENT CORPORATION OF TARRA.NT COUNTY
2713 Ash Crescent
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CHDO SINGLE FAMILY CONTRACT
Ash Crescent Single Family Infill Project
Development Corporation of Tan•ant County — 2713 Ash Crescent
Rev 03/04/2021
EXHIBIT "A-2"
ENVIRONMENTAL MITIGATION ACTION
DEVELOPMENT CORPORATION OF TARRANT COUNTY
2713 Ash Crescent
HOME Funds may be i�eimbursed for exempt activities; however, HOME funds will not be
paid, and costs cannot be incurred, until City has conducted and completed an
environmental review of the proposed project site as required under 24 CFR Part 58. The
environmental review may result in a decision to proceed with, modify, or cancel the
project. Further, Developer will not undertake or commit any funds to physical or choice
limiting actions, including property acquisition, demolitioii, movement, rehabilitation,
conversion, repair or consti•uction until satisfactory completion of environmental review
and receipt by City of an authorization to use grant funds from HUD undei• 24 CFR Part
58.
Special conditions, procedures, and requirements identified for the project may include
and are not limited to mitigation of any adverse effects identi�ed by the environmental
review process. The special conditions, procedures, and requirements may differ and are
subject to approval by City and HUD.
Environmental Mitigations are as follows:
Noise Abatement Control
Before construction can begin, Developer must supply one of the following to City:
1) Certification from a qualified acoustical engineer that the construction materials used will
bring the interior noise level down to below 45 dB, or
2) The infot•mation required to fill out HUD's STraCAT tool, in order for City to calculate
the degree to which the construction materials/design will reduce interior noise and verify
that they ineet HUD's standards.
Once City confirms that intet•ior noise will be reduced to an acceptable level, construction may
proceed.
Ve�;etation and Wildlife
During const�uction, all active nests should be avoided, and if found, a biologist with the United
States Fish and Wildlife Seivice (USFWS) must be notified. No trees or bushes that have active
nests in them may be cut down without fii•st consulting with the USFWS, who will then
determine if onsite assessment from a qualified biologist is necessaiy.
City will provide Developer the executed environmental review record and certi�cations.
Developer agrees to abide by the special conditions, procedures, and requirements of the
executed environmental review certification approved by HUD.
CHDO SINGLE FAMILY CONTRACT
Ash Crescent Single Family Infill Project
Development Corporation of Tarrant County — 2713 Ash Crescent Rev 03/04/2021
EXHIBIT "B"
BUDGET
DEVELOPMENT CORPORATION OF TARRANT COUNT
2713 Ash Crescent
Total Cost: $ 209,135.00
Project HOME Funds Awarded: $99,862.00
HOME Funds will be paid only as reimbursement for eligible expenses.
Development Budget
Use of Funds Soui•ce of Funds
Predevelopment Cost HOME $ OTHER $ SOURCE OF OTHER TOTAL $
FUNDS FUNDS FUNDS FUNDS
(1) (2) (Names) (1+2)
1. Market Study
2. Feasibility (i.e.: preliminary work
write-up, cost estimates, design, bond,
Environmental Studies)
3. Other: Soil Testing 2,500 2,500
Total Predevelo ment Cost (1+2=3)
Develo ment Cost
4. Land and/or building acquisition 7,500 Veritex Bank Loan 7,500
5. Soft Costs (Utilities, Security, etc.) 2,500 2,500 5,000
6. Construction Cost Veritex Bank Loan and
87,362 99,273 BBVA Grant 186,635
7. Fence
8. Landscape 2,000 2,000
9. Contingency
10. Appraisal
11. Architect & Engineering Fees 5,500 5,500
12. Construction Management Fee /
Developer Fee
13. Construction Loan Interest
14. Property Sutvey
15. Legal Fees
16. Real Estate Fees
17. Utility Hookup/Impact Fees
18. Title & Recording Fees
19. Program and Related Expenses
20. Construction Management
21. Bond Fees
Total Develo ment Cost 99,862 109,273 209,135
22. Developer Fee From Sales Proceeds
(15% of Total Development Costs) 31,370 31,370
Total Cost 99,862 109,273 209,135
CHDO SINGLE FAMILY CONTRACT
Ash Crescent Single Family Infill Project
Development Corporation of Tarrant County — 2713 Ash Crescent Rev 03/04/2021
EXHIBIT "C"
CONSTRUCTION AND REIMBURSEMENT SCHEDULE
DEVELOPMENT CORPORATION OF TARRANT COUNTY
2713 Ash Crescent
Phase Activity Beginning Weelc — subject to
weather ermittin
PHASE I ACTIVITIES: Contract signed
Land and/or Building Acquisition
Site Preparation
Architectural & Engineering Fees
Appraisal, Bond, Market Study
Construction costs
50% Completion of Project
PHASE I DEADLINE: FIRST PAYMENT $49,931
7/30/2021
PHASE II ACTNITIES: Constiuction costs
Construction loan interest
Soft costs (utilities, security)
100% Completion of Project
PHASE II DEADLINE: FINAL PAYMENT*r $49,931
12/30/2021
CONSTRUCTION TOTAL $99,862
DEVELOPER FEE Paid after closing of sale to HOME $31 370
�
Eli ible Bu er er Section 7.8* ( i s% of total eligible development costs)
PROJECT HOME FiJNDS
AWARDED $99,862
*Developer �vill be reimbursed for eligible expenses only. All amounts are estimates and are subject to change.
** �xhibit "G" - HONIE Project Compliancc Report must be submitted prior to reimbursement for Construction Final Payment, Construction
Final Payment will not be made after closing of sale to the Eligible HOME Buyer.
CHDO SINGLE FAMILY CONTRACT
Ash Crescent Single Family Infill Project
Development Corporation of Tarrant County — 2713 Ash Crescent Rev 03/04/2021
EXHIBIT "D"
AUDIT REQUIREMENTS
DEVELOPMENT CORPORATION OF TARRANT COUNTY
2713 Ash Crescent
Not Applicable
CHDO SINGLE FAMILY CONTRACT
Ash Crescent Single Family Infill Project
Development Corporation of Tarrant County — 2713 Ash Crescent Rev 03/04/2021
EXHIBIT "E"
DRAFT LOAN DOCUMENTS
DEVELOPMENT CORPORATION OF TARR.ANT COUNTY
2713 Ash Crescent
CHDO SINGLE FAMILY CONTRACT
Ash Crescent Single Family In�ll Project
Development Corporation of Tarrant County — 2713 Ash Crescent Rev 03/04/2021
PROMISSORY NOTE
HOME Funds
Date:
Borrower: Development Coi•poration of Tat7�ant County, a Texas non-profit coiporation
Borrower's Mailing Acldress:
1509 S University Drive, Suite B208, Fort Worth, Tarrant County, TX 76107
Lender: City of Fort Woi-th, Texas, a Texas municipal corporation
Place for Payment:
C/O Director of Neighborhood Seivices Department
200 Texas St.
Fort Worth, Tarrant County, TX 76102
or at any other place that Lender may designate in writing
Principal Amount: $
Loan Authority:
The loan evidenced by this Note (the "Loan") is being made pursuant to the HOME
Investment Partnerships Program authorized undei� Title II of the Ci•anston-Gonzalez
National Affordable Housing Act of 1990, as amended, 42 USC 12701 et seq. ("HOME
Program") and the HOME Investment Partneiships Program Final Rule, as amended, 24
CFR Part 92 et seq. (the "HOME Regulations") with HOME funds.
Annual Interest Rate: 0%
Maturity Date:
Terms of Payment (principal and interest):
This Note is the Promissoiy Note required in City Secretary Contract No.
between Borrower and Lender dated and has been exectrted and
delivered in accordance with those contracts (collectively, the "HOME Contracts"). The
funds advanced by Lender are HOME funds and the Contract requires that the houses
located on the Property and constructed with a portion of the HOME funds must qualify
and remain affordable housing in accordance with the HOME Program and the HOME
Regulations for a specified time period as more particularly described in the Contracts
(the "Affordability Period"). The Loan will be in default and the Principal Amount and
any other sums due hereunder may be declared immediately payable if all of the houses
constructed on the Property are not sold to HOME Eligible Buyers as more particularly
described in the Contracts and in accordance with the HOME Regulations.
This Note is subject to all terms and conditions of the Contract. The Loan will be
forgiven provided that (i) the houses are each sold to a HOME Eligible Buyer in
accordance with HOME Program requirements, and (ii) Borrower is not otherwise in
CHDO SINGLE FAMILY CONTRACT
Ash Crescent Single Family Infill Project
Development Corporation of Tarrant County — 2713 Ash Ci•escent Rev 03/04/2021
default of the Loan terms ot• Contract provisions. In the event the Loan is not forgiven in
accordance with the terms of the Contracts, the Pi�incipal Amount will be payable in full
on the Maturity Date.
Security for Payment:
This Note is secured by a Deed of Trust of even date fi�om Borrower to Jo Ann Pate or
Denis McElroy, Tiustee, both of which cover the following real property:
SEE EXHIBIT "A" ATTACHED HERETO AND 1NCORPORATED HEREIN FOR
ALL PURPOSES
Other Security foi• Payment: As set forth in the Contract.
Prior Liens
The lien securing this Note is subordinate to the lien securing another note in the original
principal amount of $ dated executed by Boi7�ower, payable to
("First Lien Note"), and described in a deed of trust of even
date to, Trustee, recorded in the Real Property Records, Tarrant County, Texas. The
Deed of Trust securing this Note is and shall be subject and subordinate in all respects to
the liens, terms, covenants and conditions of the deed of trust or mortgage securing the
Fitst Lien Note. The rights and remedies of the payee and each subsequent holder of this
Note and the Deed of Trust securing this Note are subject to the liens, terms, covenants
and conditions of the deed of trust or mortgage securing the First Lien Note. If there is a
default in payment of any part of principal or intei•est of the First Lien Note or a breach of
any covenants contained in any instruments securing it, the debt evidenced by this Note
will immediately become payable at the option of lender. If Borrower fails to perform
any of Borrower's obligations in the First Lien Note or in any insh�uments securing it,
Lender may perform those obligations and be reimbursed by Bori•ower on demand, at the
Place for Payment for any amounts advanced, including attorney's fees, plus interest on
those amounts from the date of payment at the Annual Interest Rate on Matured, Unpaid
Amounts. The amount to be reimbursed will be secured by all instruments securing this
Note.
Borrower promises to pay to the order of Lender the Principal Amount if not otherwise
foigiven. This Note is payable at the Place for Payment and according to the Terms of Payment.
All unpaid amounts are due by the Maturity Date, unless otherwise extended as provided for in
the Contract. After maturity, Bon�ower promises to pay any unpaid principal balance.
If Bori•ower defaults in the payment of this Note or• in the performance of its obligations
under the Contract or the HOME Program or the HOME Regulations or any other obligation in
any instrument securing or collateral to this Note, Lender may declare the unpaid principal
balance, and any other amounts owed on the Note immediately due. Borrower and each surety,
endorser, and guarantor waive all demand for payment, presentation for payment, notice of
intention to acceler•ate maturity, notice of acceleration of maturity, pr•otest, and notice of protest,
to the extent permitted by law.
Notwithstanding anything to the contraiy, if a monetaiy event of default occurs under the
terms of any of the Loan documents, prior to exercising any i�emedies Lender shall give Bonower
CHDO SINGLE FAMILY CONTRACT
Ash Ci•escent Single Family Infill Project
Development Corporation of Tarrant County — 2713 Ash Crescent Rev 03/04/2021
written notice of such default. Bot•rower shall have a period of 30 days aftei• such notice is given
within which to cure the default prior to exercise of remedies by Lender under the Loan documents.
Notwithstanding anything to the contraty, if a non-monetaiy event of default occurs under the teims
of any of the Loan documents, prior to exercising any remedies, Lender shall give Borrower written
notice of such default. If the default is t•easonably capable of being cured within 30 days, Borrower
shall have such period to effect a cure prior to exercise of i�emedies by Lender under the Loan
documents. If the default is such that it is not reasonably capable of being cured within 30 days, and
if Bon�ower (a) initiates corrective action within said period, and (b) diligently, continually, and in
good faith works to effect a cure as soon as possible, then Borrower shall have such additional time
as is reasonably necessaiy to cure the default prior to exercise of any remedies by Lender. In no
event shall Lender 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 180
days after the first notice of default is given.
Notices given to Bon�ower shall be in writing and delivered to the addresses listed above,
or to such other address as Borrower designates by written notice to Lender. Each such notice or
other communication shall be effective upon receipt when sent by U. S. Mail, postage prepaid
and by certified mail, i•etui•n i•eceipt requested; or by a nationally z•ecognized overnight delivery
service.
Bort•ower also promises to pay reasonable attorney's fees and court and other costs if this
Note is placed in the hands of an attorney to collect or enforce the Note. Borrower will pay
Lender these expenses and interest on demand at the Place for Payment. These expenses will
become part of the debt evidenced by the Note and will be secured by any security for payment.
Borrower may prepay this Note at any time before the Maturity Date without penalty or
premium so long as the houses located on the Property and constructed with a portion of the
HOME Funds qualify and remain affordable housing in accordance with the HOME Program
and the HOME Regulations for the applicable Affordability Period specified in the Conh�acts. .
Interest on the debt evidenced by this Note will not exceed the maximum rate or amount
of non-usurious interest that may be contracted for, taken, reserved, charged, or received under
law. Any interest in excess of that maximum amount will be credited on the Principal Amount
or, if the Principal Amount has been paid, refunded. On any acceleration or required or peimitted
prepayment, any excess interest will be canceled automatically as of the acceleration or
prepayment or, if the excess interest has ali•eady been paid, credited on the Principal Amount or,
if the Principal Amount has been paid, refunded. This provision ovei7•ides any conflicting
provisions in this Note and all other instruments conceining the debt.
Each Borrower is responsible for all obligations repi•esented by this Note. When the
context requires, singular nouns and pronouns include the plural.
A default exists under this Note if (1) (a) Bori•ower or (b) any other peison liable on any
part of this Note (an "Other Obligated Party") fails to timely pay or perform any obligation or
covenant in any wi•itten agreement between Lender and Borrower or such Other Obligated Party;
(2) any wai•ranty, covenant, or representation in this Note or in any other written agt•eement
between Lender and Borrower or any Othei• Obligated Party is materially false when made; (3) a
CHDO SINGLE FAMILY CONTRACT
Ash Crescent Single Family Ini►ll Project
Development Corporation of Tarrant County — 2713 Ash Crescent Rev 03/04/2021
receiver is appointed for Borrower, any Other Obligated Party, or any property on which a lien or
security interest is created as security (the "Collateral Security") for any part of this Note; (4)
any Collateral Security is assigned for the benefit of creditors; (5) a banlauptcy or insolvency
proceeding is commenced by Borrowei• or an Other Obligated Party; (6) (a) a banlcruptcy or
insolvency proceeding is coinmenced against Borrower or an Other Obligated Party and (b) the
proceeding continues without dismissal for 90 days, the party against whom the proceeding is
commenced admits the matei�ial allegations of the petition against it, or an order for relief is
entered; (7) any of the following parties is dissolved, begins to wind up its affairs, is autliorized
to dissolve or wind up its affairs by its goveining body or persons, or any event occurs or
condition exists that permits the dissolution or winding up of the affairs of any of the following
parties: (i) Borrower, or (ii) an Other Obligated Party; and (8) any Collateral Security is
materially impaired by loss, theft, damage, levy and execution, issuance of an official writ or
order of seizure, or destruction, unless it is promptly replaced with insurance proceeds, collateral
security of lilce kind and quality or restored to its former condition.
The execution and delivery of this Note are required under the Conh�act.
If any provision of this Note conflicts with any provision of the Contract, the Deed of
Ti•ust or any other document evidencing the same transaction between Lender and Borrower, the
provisions of the Contract will govern to the extent of the conflict.
This Note will be construed under the laws of the state of Texas without regard to
choice-of-law rules of any jurisdiction.
[SIGNATURE PAGES IMMEDIATELY FOLLOW]
CHDO SINGLE FAMILY CONTRACT
Ash Crescent Single Family Infill Project
Development Corporation of Tarrant County — 2713 Ash Crescent Rev 03/04/2021
DEVELOPMENT CORPORATION OF TARR.ANT
COUNTY
Charles Price, President
CHDO SINGLE FAMILY CONTRACT
Ash Crescent Single Family In�ll Project
Development Corporation of Tarrant County — 2713 Ash Crescent Rev 03/04/2021
EXHIBIT "A"
Property Description
CHDO SINGLE FAMILY CONTRACT
Ash Crescent Single Family Infill Project
Development Corporation of Tarrant County — 2713 Ash Crescent Rev 03/04/2021
NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON,
YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION
FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC
RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE
NUMBER
DEED OF TRUST
Terms
Date:
Grantor: Development Corporation of Tarrant County
a Texas non-profit coiporation.
Grantor's Mailing Address:
1509 S University Drive, Suite B208, Fort Worth, Tarrant County, TX 76107
Trustee: Jo Ann Pate
Trustee's Mailing Address:
GO City Attorney's Office
200 Texas St.
Fort Worth, Tarrant County, TX 76102
Lender: City of Fort Woi�th, Texas, a Texas municipal corporation
Lender's Mailing Address:
C/O Neighborhood Seivices Department
1000 Throckmorton St.
Fort Worth, Tarrant County, TX 76102
Loan Authority:
The loan evidenced by the Note and secured by this Deed of Trust is being made pursuant
to the HOME Investment Partnerships Program authorized under Title II of the Cranston-
Gonzales National Affordable Housing Act of 1990, as amended, 42 USC 12701 et sec�.
(the "HOME Progi•am") and the HOME Investment Partnership Program Final Rule, as
amended, 24 CFR Part 92 et seq. (the "HOME Regulations") with HOME funds.
Obligation
Note
Date:
Original principal amount: $
Borrower: Development Corporation of Tarrant County, a Texas non-profit
corporation
Lender: City of Fort Worth, Texas, a Texas municipal coi•poration
Maturity Date:
CHDO SINGLE FAMILY CONTRACT
Ash Crescent Single Family In�ll Pi•oject
Development Corpoi•ation of Tarrant County — 2713 Ash Crescent Rev 03/04/2021
Property (including any improvements):
SEE EXHIBIT "A" ATTACHED HERETO AND 1NCORPORATED HEREIN FOR
ALL PURPOSES
Prior Lien:
The lien created by this Deed of Trust will be subordinate to the lien securing payment of
a note, and any renewals, extensions, and modifications thereof, in the original pi•incipal amount
of $ dated made by Grantor, payable to ("First Lien Note"),
and more fully desci•ibed in a deed of trust recorded in the Real Property Records of Tarrant
County, Texas.
Subject to waiver, notice, grace and cure period, if any, if default occurs in payinent of
any part of principal or interest of the First Lien Note or in observance of any covenants of the
deed of trust or other loan documents securing it, the entire debt secured by this Deed of Trust
will immediately become payable at the option of Lender.
Other Exceptions to Conveyance and Warranty:
Easements, rights-of-way, and presci•iptive rights, whether of record or not; all presently
recorded and validly existing recorded instruments other than conveyances of the surface fee
estate that affect the Property; liens described in this Deed of Trust; and, taxes for the current
year.
For value received and to secure payment of the Obligation, Grantor conveys the
Property to Ti�ustee in trust. Grantor warrants and agrees to defend the title to the Property,
subject to the Other Exceptions to Conveyance and Warranty. On payment of the Obligation and
all other amounts secured by this Deed of Trust, this Deed of Trust will have no further effect,
and Lender will release it at Grantor's expense.
Clauses and Covenants
A. Grantor's Obligations
Grantor agt•ees to-
1. lceep the Property in good repaii• and condition;
2. pay all taxes and assessments on the Property before delinquency and provide proof
of payment of same upon request by Lender;
3. defend title to the Property subject to the Other Exceptions to Conveyance and
Wan�anty and preserve the lien's priority as it is established in this Deed of Trust;
4. maintain, in a foim acceptable to Lender, an insurance policy that—
CHDO SINGLE FAMILY CONTRACT
Ash Crescent Single Family In�ll Project
Development Corporation of Tarrant County — 2713 Ash Crescent Rev 03/04l2021
a. covers all improvements for their full insurable value as determined when
the policy is issued and i•enewed, unless Lender appi•oves a smaller
amount in writing;
b. contains an 80 percent coinsurance clause;
c. provides all-rislc coverage;
d. protects Lender with a standai•d mortgage clause;
e. provides flood insurance at any time the Property is in a flood hazard area;
and
f. contains such other coverage as Lender may reasonably require;
5. comply at all times with the requirements of the 80 percent coinsurance clause;
6. deliver the insurance policy to Lender within ten days of the date of this Deed of
Trust and deliver renewals to Lender at least fifteen days before expiration;
7. obey all laws, ordinances, and restrictive covenants applicable to the Property;
8. lceep any buildings occupied as required by the insurance policy;
9. if the lien of this Deed of Trust is not a first lien, pay or cause to be paid all prior
lien notes and abide by or cause to be abided by all prior lien instruments; and,
10. notify Lender of any change of address.
B. Lender's Rights
1. Lender may appoint in writing a substitute trustee, succeeding to all rights and
responsibilities of Trustee.
2. If the proceeds of the Obligation are used to pay any debt secured by prior liens,
Lender is subrogated to all the rights and liens of the holdeis of any debt so paid.
3. Lender may apply any proceeds received under the insurance policy either to reduce
the Obligation or to repair or replace damaged or destroyed improvements covered by the policy.
If the Property is Grantor's primai•y residence and Lender reasonably determines that repairs to
the improvements are economically feasible, Lender will make the insurance proceeds available
to Grantor for i�epaiis.
4. Notwithstanding the terms of the Note to the contrary, and unless applicable law
prohibits, all payments received by Lender from Grantor with respect to the Obligation or this
Deed of Trust may, at Lender's disct•etion, be applied fiist to amounts payable under this Deed of
Trust and then to amounts due and payable to Lender with i•espect to the Obligation, to be
applied to late charges, principal, or interest in the order Lender in its discretion deteimines.
CHDO SINGLE FAMILY CONTRACT
Ash Crescent Single Family In�ll Project
Development Corparation of Tarrant County — 2713 Ash Crescent Rev 03/04/2021
5. If Grantor fails to perforin any of Grantor's obligations, Lender may perfoim those
obligations and be reimbuised by Grantor on demand for any amounts so paid, including
attoi•ney's fees, plus interest on those amounts from the dates of payment at the rate stated in the
Note for matured, unpaid amounts. The amount to be reimbursed will be secured by this Deed of
Trust.
6. If there is a default on the Obligation or if Grantor fails to perform any of Grantor's
obligations and the default continues after any required notice of the default and the time allowed
to cure, Lender may—
a. declare the unpaid pi•incipal balance on the Obligation immediately due;
b. direct Trustee to foreclose this lien, in which case Lender or Lender's
agent will cause notice of the foreclosure sale to be given as provided by
the Texas Property Code as then in effect and
c. purchase the Property at any foreclosui•e sale by offering the highest bid
and then have the bid credited on the Obligation.
7. Lender may remedy any default without waiving it and may waive any default
without waiving any prior or subsequent default.
8. If the Property is acquired by Lender by foreclosure, Grantor's right to any
insurance policies and proceeds resulting fi•om damage to the Property prior the acquisition shall
pass to Lender to the extent of the sums secured by this Deed of Trust immediately prior to the
acquisition.
9. Lender or its agents may make reasonable entries upon and inspections of the
Property. Lender shall give Borrower notice at the time of or prior to an inspection giving
reasonable cause for the inspection.
C. Trustee's Rights and Duties
If dit�ected by Lender to foreclose this lien, Trustee will-
1. either personally or by agent give notice of the foreclosure sale as required by the
Texas Property Code as then in effect;
2. sell and convey all or part of the Property "AS IS" to the highest bidder for cash
with a general warranty binding Grantor, subject to the Prior Lien and to the Other Exceptions to
Conveyance and Wai-�•anty and without representation or warranty, express or implied, by
Trustee;
3. fi•om the proceeds of the sale, pay, in this order
a. expenses of foreclosure, including a reasonable commission to Trustee;
CHDO SINGLE FAMILY CONTRACT
Ash Crescent Single Family In�ll Project
Development Corporation of Tarrant County — 2713 Ash Crescent Rev 03/04/2021
b. to Lender, the full amount of principal, interest, attorney's fees, and other
charges due and unpaid;
c. any amounts required by law to be paid before payment to Grantor; and
d. to Grantor, any balance; and
4. be indemnified, held hat•mless, and defended by Lender against all costs, expenses,
and liabilities incurred by Trustee for acting in the execution or enforcement of the trust created
by this deed of trust, which includes all court and other� costs, including attorney's fees, incurred
by Trustee in defense of any action oi• proceeding taken against Trustee in that capacity.
D. General Provisions
1. If any of the Property is sold under this Deed of Ti•ust, Grantor must immediately
surrender possession to the purchaser. If Grantor fails to do so, Grantor will become a tenant at
sufferance of the purchaser, subject to an action for forcible detainer.
2. Recitals in any ti•ustee's deed conveying the Property will be presumed to
be true.
3. Pi•oceeding under this Deed of Trust, filing suit for foreclosure, or puisuing any
othei• remedy will not constitute an election of remedies.
4. This lien will remain superior to liens later created even if the time of payment of
all or part of the Obligation is extended or part of the Property is released.
5. If any portion of the Obligation cannot be lawfully secured by this Deed of Trust,
payments will be applied first to discharge that portion.
6. Grantor assigns to Lender all amounts payable to or received by Grantor fi•om
condemnation of all oi• part of the Property, from private sale in lieu of condemnation, and from
damages caused by public works or construction on or near the Pt•opei-ty. After deducting any
expenses incurred, including attoiney's fees and court and other costs, Lender will either release
any remaining amounts to Grantor or apply such amounts to t•educe the Obligation. Lender will
not be liable for failure to collect or to exercise diligence in collecting any such amounts.
Grantor will immediately give Lender notice of any actual or threatened proceedings for
condemnation of all or part of the Property.
7. Grantor assigns to Lender absolutely, not only as collateral, all present and future
rent and other income and receipts from the Property. Grantor wan�ants the validity and
enforceability of the assignment. Grantor may as Lender's licensee collect rent and other income
and receipts as long as Grantor is not in default with t•espect to the Obligation or this Deed of
TrList. Grantor will apply all rent and other income and receipts to payment of the Obligation
and perfoimance of this Deed of Trust, but if the rent and other income and i•eceipts exceed the
amount due with respect to the Obligation and the deed of trust, Grantor may retain the excess.
CHDO SINGLE FAMILY CONTRACT
Ash Ct•escent Single Family Infill Project
Development Corporation of Tarrant County — 2713 Ash Crescent Rev 03/04/2021
If Grantor defaults in payment of the Obligation or performance of this Deed of Trust, Lender
may terininate Grantor's license to collect rent and other income and then as Grantor's agent
may rent the Property and collect all rent and other income and receipts. Lender neither has nor
assumes any obligations as lessor or landlord with respect to any occupant of the Property.
Lender may exercise Lender's rights and remedies under this paragraph without taking
possession of the Property. Lender will apply all rent and other income and receipts collected
under this paragraph fiist to expenses incurred in exei•cising Lender's rights and remedies and
then to Grantor's obligations with respect to the Obligation and this Deed of Trust in the order
determined by Lender. Lender is not required to act under this paragraph, and acting under this
paragraph does not waive any of Lender's other rights or remedies. If Grantor becomes a
voluntai•y or involuntaiy debtor in bankruptcy, Lender's filing a proof of claim in banluuptcy
will be deemed equivalent to the appointment of a receiver under Texas law.
8. Interest on the debt secured by this Deed of Trust will not exceed the maximum
amount of non-usurious interest that may be conti�acted for, taken, reserved, charged, or received
under law. Any interest in excess of that maximum amount will be credited on the principal of
the debt or, if that has been paid, refunded. On any acceleration or required oi• permitted
prepayment, any excess interest will be canceled automatically as of the acceleration or
prepayment or, if alt•eady paid, credited on the principal of the debt or, if the principal of the debt
has been paid, refunded. This provision overrides any conflicting provisions in this and all other
instruments concerning the debt.
9. In no event may this Deed of Trust secure payment of any debt that may not
lawfully be secured by a lien on real estate or create a lien otherwise prohibited by law.
10. When the context requires, singular nouns and pronouns include the
plural.
11. The term Note includes all extensions, modifications, and renewals of the Note
and all amounts secut•ed by this Deed of Trust.
12. This Deed of Trust binds, benefits, and may be enforced by the successors in
interest of all parties.
13. If Grantor and Borrowet• are not the same peison, the term Gi�antor includes
Borrower.
14. Grantor and each surety, endorser, and guarantoi• of the Obligation waive all
demand for payment, presentation for payment, notice of intention to accelerate maturity, notice
of accelet�ation of maturity, protest, and notice of protest, to the extent permitted by law.
15. Grantor agrees to pay reasonable attorney's fees, trustee's fees, and court and
other costs of enforcing Lender's rights under this Deed of Trust if this Deed of Trust is placed in
the hands of an attorney.
16. If any provision of this Deed of Trust is determined to be invalid or
CHDO SINGL� FAMILY CONTRACT
Ash Crescent Single Family In�ll Project
Development Corporation of Tarrant County — 2713 Ash Crescent Rev 03/04/2021
unenforceable, the validity or enforceability of any other provision will not be affected.
17. The term Lende�• includes any mortgage servicer for Lender.
18. Grantor represents that this Deed of Trust and the Note are given for the following
purposes:
The debt evidenced by the Note is in payment of the purchase price of the
Property and the development costs of the Required Improvements as described in
the Contract; the debt is secured both by the Deed of Trust and by a vendor's lien
on the Property. This Deed of Tiust does not waive the vendor's lien, and the two
liens and the rights created by this Deed of Trust are cumulative. Lender may
elect to enforce either of the liens without waiving the other or may enforce both.
19. If the Property is transferred by foreclosure, the transferee will acquire title to all
insurance policies on the Pr•operty including all paid but unearned premiums.
20. Lender may declare the debt secured by this Deed of Trust immediately payable
and invoke any remedies provided in this Deed of Trust for default if Grantor transfers any of the
Property to a person who is not a permitted transferee without Lender's prior written consent.
"Permitted transferee" means any other person controlling, controlled by, or under common
control with Grantor. Lender shall not exercise this option if federal law as of the date of this
Deed of Trust prohibits such exercise.
21. THIS CONVEYANCE IS MADE AND ACCEPTED SUBJECT TO THE
FOLLOWING CONDITIONS AND RESTRICTIONS:
The Note is the Note required in City Secretary Conh�act No. between Grantor
and Lender dated and has been executed and delivered in accordance with these
contracts (the "Contracts"). The funds advanced by Lender are HOME funds and the
Contracts require that the residential housing located on the Property and constructed
with a poi�tion of the HOME funds must qualify and remain affordable housing in
accordance with the HOME Program and the HOME Regulations for a specified time
period as more particularly described in the Contracts (the "Affordability Period"). The
loan evidenced by the Note and secured by this Deed of Trust will be in default and the
Principal Amount and any other sums due thereunder may be declared immediately
payable if the residential housing located on the Property is not sold to a HOME Eligible
Buyer as more particularly descc•ibed in the Contracts and the HOME Regulations.
This Deed of Trust has also been executed and delivered puisuant to the terms of the
Contracts. Grantor agrees to perform each and every obligation set forth thei•ein and will
not permit a default to occur thereunder. Any default in the performance of Grantor's
obligations under the terms of the Contracts or• the HOME Program or HOME
Regulations shall be deemed a default in the terms of the Note and Lender may declare
the debt secured by this Deed of Trust immediately payable and invoke any remedies
CHDO SINGLE FAMILY CONTRACT
Ash Crescent Single Family Infill Project
Development Corporation of Tarrant County — 2713 Ash Crescent Rev 03/04/2021
provided herein for default.
23. THE NOTE AND THE DEED OF TRUST CONSTITUTE THE FINAL
AGREEMENT OF THE PARTIES AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.
DEVELOPMENT CORPORATION OF TARRANT
COUNTY
Charles Price, President
STATE OF TEXAS
COUNTY OF TARR.ANT
This instrument was acknowledged before me on , 20_ by
Charles Price, the President of Development Corporation of Tarrant County, a Texas non-profit
coi•poration, on behalf of said corporation.
NOTARY PUBLIC, STATE OF TEXAS
AFTER RECORDING RETURN TO:
City of Fort Worth
C/O Neighborhood Services Department
200 Texas St.
Fort Worth, Tarrant County, TX 76102
CHDO SINGLE FAMILY CONTRACT
Ash Crescent Single Family Infill Project
Development Corporation of Tarrant County — 2713 Ash Crescent Rev 03/04/2021
EXHIBIT "F"
REIMBURSEMENT FORMS
DEVELOPMENT CORPORATION OF TARRANT COUNTY
2713 Ash Crescent
INVOICE
DEVELOPMENT CORPORATION OF TARRANT
Developer: COUNTY
Address: 1509 S University Drive, Ste. B-208
City, State, Zip: Fort Worth, TX 76107
Project: Ash Crescent Single Family Infill Project
Tax ID Number
Phase Number:
Amount
This Invoice Cumulative to Date
$ $
CHDO SINGLE FAMILY CONTRACT
Ash Crescent Single Family Infill Project
Development Corporation of Tan•ant County — 2713 Ash Crescent Rev 03/04/2021
ATTACHMENT II
Expenditure Worksheet
Developer: Development Corporation of Tan•ant Cotmty
Project: Ash Crescent Single Family Infill Project
Line No. Date Check No. Payee or Beneficiary* Description� Amouut
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Total
CHDO SINGLE FAMILY CONTRACT
Ash Crescent Single Family In�ll Project
Development Corparation of Tarrant County — 2713 Ash Crescent Rev 03/04/2021
EXHIBIT "G"
HOME PROJECT COMPLIANCE REPORT (SINGLE FAlVIILY)
DEVELOPMENT CORPORATION OF TARRANT COUNTY
2713 Ash Crescent
CHDO SINGLE FAMILY CONTRACT
Ash Crescent Single Family In�ll Project
Development Corparation of Tarrant County — 2713 Ash Crescent Rev 03/04/2021
CHDO SINGLC FAIIILLY CONTRr+,CT
Ash Crescent Single Family Infill Project
Development Corporation of Tarrant County — 2713 Ash Crescent Rev 03/04/2021
EXHIBIT "H"
FEDERAL LABOR STANDARDS PROVISIONS - DAVIS BACON REQUIREMENTS
DEVELOPMENT CORPORATION OF TARRANT COUNTY
2713 Ash Crescent
Not Applicable
CHDO SINGLE FAMILY CONTRACT
Ash Crescent Single Family In611 Project
Development Corporation of Tarrant County — 2713 Ash Crescent Rev 03/04/2021
EXHIBIT "I"
SECTION 3 REPORTING FORMS
DEVELOPMENT CORPORATION OF TARRANT COUNTY
2713 Ash Crescent
CHDO SINGLE FAMILY CONTRACT
Ash Crescent Single Family Infill Project
Development Corporation of Tan•ant County — 2713 Ash Crescent Rev 03/04/2021
�XIIIBIT "I"
Saction 3 Summary Report
Ecoiwmic Opportunities for
Low—and Very Lov�lncome Persons
U.S. Depariment of Housing
ond Urban Developmenl
Offce of Fsir Housing
Md Equal Opportunity
OMB Approval No: 2529-Q043
(exp. 11�Of2010)
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Part L• Em lo ment and Trafning ("Cdumns B. C and f are mandal fields. Include New Hires fn E dF)
,� s c n F F
;l�m;� ct t:�vt�k'- Ot; .� i!F,�.)ren�t!at:iunt- GfTr.tal,y;,"H; _, lliimha; �--..,.n.
--._.-. i '�1-.�Hir_s V!ireiU�. �I�:�P4�:'��sc.(I:...�H�i..-. .i.ti�.fi�:•itEiii�l',�::y Ti�i...
.-. 3C...JiJ�n„ 11_.ar_�_. 3f.�e�•J.iily ar�1T��i_-,
Professlonals
Technicians
officelClericai
ConsW ction by Trad¢ (List)
Trade
Trade
Trode
Trede
Trade
Other List
Tdel
' �iC�.Je� ,�-F�.lJcrlri},��,1!i d.-Ifi,m�l.y�he�i_fc..
1 =f Iv.it'.n��ts�.1� A=fi.,:ilcprn��ii(� y=IIUI.�..
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c: =!Ac�.,�_a[on ! =rLU� LrotMmcM
P�ie 1 ul2
CHDO SINGLE FAMILY CONTRACT
Ash Crescent Single Family In�ll Project
Development Corporation of Tarrant County — 2713 Ash Crescent
-�_000 _i�ir�,.�����„�,;,�,��
J = Othcr CU Fruu'�ms
10 = OtnEr I 1i11;��^.7 (-YJj'am;
I�.en I!IiG uu072 �gi:,'�'lt�
h�_I2a C! k 13i
Rev 03/04/2021
Part II: Cantracts Awarded
1. Construction Contracts:
A. Totel dallar emounl oFeli cantreds awerded on the poJeU
B. Total doller emount oFconUects e�verded ta Seetion 3 businesses
C. Percentage ofthe totnl dtllar amount thatwas avrerded to Secfim 3 businesses
D. Total numEer of Saction 3 6uslnesses recelving cmlraets
2. Non-Consnucnon ConVacts:
A. Tolal dollar amaunt aN nonconstrucuon eontratts awarded on Ihe pmjeeVaUiviry
B. Totel doliar emount of non-con:fruction conlrecls awarded ta Sedion 3 6usinesses
C. Percentageofthelotaldol�aramountM�[wasawardedtoSection3husinessas
D. Tatal num6er of Seetion 3 busnesses receivinp nm-amstruclion cmtrects
Part III: Summary
Indcete ihe eftorts made to direcl lhe employmenl end other economlc oppatunities genereted by HUD finenciel esslstence for housing
and community development programs, to the greetest extent feesible, taHard IaH-and very low•income persons, padiculeriy those H�ho
are recipients of gavernmenl assistence for housing. (Check all lhet epply.)
Altempted to recruit low-income residenis Ihrough: local advertising medla, slgns prominently displayed at ihe prqecl slle.
� conlracls wilh lhe communiry aganizetions and puNic or pnvate agencles operaling wilhin Ihe metropdilan area (or
nonmetropolitan counly) in which lhe Section 3 cwered program or prqecl is loceled, a similar melhods.
Participated in a HUD program or other program whkh promoles the troining or employment of Section 3 residents.
^ Participaled In a HUD program a dher program which promWes lhe eward of contrecls to business concems which meel lhe
definition of Sedion 3 business concems.
Coordinatetl wilh Youlhbuild Programs administered In lhe metropditan area In wh�ch lhe Section 3 covered project is located.
_ Other; tlestrb¢ beia.v.
Public reporting ta lhis cdleclion of information is estimated lo average 2 hours per response, induding lhe lime for reviewing insW dions,
searching exisling dala sources. 9alhering and mainlainin9 �he dala needed. end canpleling end reviewing Ihe cdleclion of infortnalion.
This agency may not Col�ecl �his intormallon, and you are not requlred to complete lhis fam, unless it displays a currently valid OMB
number.
Section 3 oithe Housing end Urhen Development Act of 1968, es ementled, 12 U.S.C. 1701u, mendetes thet the Depertment ensures Ihet
employment and olher economic opporluni�ies generaled by ils housing and canmunily developmenl assislance programs are direcled
lowerd loH• and very-low income persons, padiwlady lhose who are recipienls of govemment assislence housing. The reguletions ere
found et 24 CFR Pert 135. Tlie Information will be used by the Depertment to monitor progrem reclpients' compliance with Sectim 3, to
assess lhe resufts of the Depadment's effats to mee! the stalulory objeclives of Sectivn 3, to prepare reports to Congress, end by
recipients os self-monifaing tod. The dala is entered into a dalabase ond will be anaiyzed and dislnbuted. The cdlection ot inf«maUon
i�volves recipients retelving Federal fnancial assistance for housing and communily development programs covered by Section 3. The
iniormalion will be cdlected onnualy to assisl HUD in meeting its raporUng requiremeNs under Seclion 808(e)(6) of lhe Fair Housing Acl
end Section �J16 of the HCDA of 1992. M assurance of confidentietiry is not eppliceble to lhis form. The Privecy Act of 1�J74 end OMB
Circular A-108 are not applicable. The repating requlrements do nol contaln sensllive questions. Data Is cumulative; personal Identlrying
inlormelion is not inclutled.
F'd�l�'< �f ? I_�ri�� I IU� t.Uli2 (� i/.il'�i]J
Hel2t Ci fi 13`,
CHDO SINGLE FAMILY CONTRACT
Ash Crescent Single Family Iuiill Project
Development Corporation of Tairant County — 2713 Ash Crescent Rev 03/04/2021
Fomi HUD-60002. Section 3 Summary Report, Economlc Opportunillesfor Low-and Very Low-Income Persons.
InstrucUons; TitisPormistobausedtoreportannual
eceomplishmenls regardng employment end other eemomic
apportuniliez provided lo Iow- and very Iwr-income persons under
Sectlon 3 althe Housing and V�bsn Development Aet of 1968. The
Ssebon 3 ragulaems oppy to any pub!!c and IrMlen housing
programs lhat rece'rve: (q deveiopment aszislance pursuant lo
Sectlon 5 of the U.S. Hovsing Act of 1937; {2� operaung assistance
pursuant ta Settion 9 of Ihe U.S. Housing Acl of 1937; or (3)
motlernizaEon grants pursuantto Section tA of the U.S. Housing Act
of 1937 and to reciplents of housing and community developmeM
acslstance in excess of 5200,000 expended fa: (1) housing
rehabilitation Oncluding reduction and a6atement of leadhasad paint
haza�ch); (2� housing consimction; or (3) olher public crostruUion
proJeds; and to cnnbscts and subcorHrscfs fn excess o/S f00,000
awerded in wnnedlon vilh Ihe Sectloo-3-covered acliviry.
form HUQ60002 has Mrea pans, wtiich are to he cmiqeted kr
ell programs covered by Sectlon 3. Pert I rela[es lo empbynrent
and Lalning. The rxiplem has the option [o tleterm�ne numerical
employmenVlraining goals either on Ihe besis of lhe number af hours
workeA 6y naw hires (columns B, D. E antl F). Part 11 oftha h�m
relates to confncOng, and Pad III summarizez recipients ef/oristo
compy wdh Seaion 3.
Recipien[s or contractors wbjecl to Seetion 3 requirements must
meintein eppropria�e documenleEon to esta6lish lhet HUD fineneiel
zsistancalor houvng and cammunity develapment pmgnm: were
direHed towerd low- andvery Io�v-incoma petsons.' Arecipient ot
Se�den 3 covered asaiyan�e shal suhmit ene eopy ofthis teport lo
HUD HeadquaAer� Office W Feir Housing end Eqaal Opportunity.
YVhere Ne pro9ram providing assis�ance �equiies an annual
perfamenca repod this Sedion 3 report is to be submdted at tha
same fime the progam perfortnanea rapert is su6mitted. Wfiera en
annual per(ormance repo�t is nol required, this Section 3 report is la 6e
subnitted by January 10 end, if 1he projeot ends before December 31.
witHn 10 deys of pryect completi on. Only P�In1e ReClplents are
requlreU to repori io HUo. T�e report must IncluUe
ecComplfSNn7ents 0/ell reClp/ents end B�ellSeCUon 3 coVered
conVxtors antl suncorxnetas.
HUDFltldOffiee: EnterlhefieitlOffieanama.
1. Re�ipien�: Enler Ihe neme and eddress ol lhe recipeM
suhmilting Ihis repart.
2. Federalldentificetion: Enlarfhenum6erlhateppeersonlha
awarA term (wdh doshas). 7h0 awartl may 6e a grent,
�ooperelive egreemenl a conlrect.
3. DWIarAmountofAvrartl: Entertheddlaramuunt,rountletltoNa
neerestdollar, received by the reNpient.
4& 5. ConleU PersonlPhone: Enter the name end lelephme number
of the person with knwAedge af 1he award and Ihe recipient's
implemunc�tion ot Sedion 3.
6. Reporting Pariotl: Inacato �ha time pariod (mmths andyeu)
Ihis repo�t covers.
7. Date Reporl Su6mitted: En1er Ihe appropriate dale.
8. Program Coda: Enlar the appropriale program codo as lislad at
tl�a boltom of Iha paga.
9. Program Name: Enter lhe name of HUD Pragram corresponding
wdh Iha'Program Gode' In number 8.
Part I: Employment and Tralning Opportunitles
ColumnA: ConWinsvariousjobcatagaies. Professionalsare
defned as people who heve special knowledge of en acupetion (I.e.
supervisors, archrtxts survayon, pl�nners, and computar
pmgrammers). For canstmction po:itions, lisl each Irade and prwide
data in cdumns B Uvough P for each Irode where persons were
employed. The calegory of'Other" includes occupaEons such os
service waikers.
ColumnB: (MantlatoryFldtn Enlerthenum6ero(newhiresfor
eech categary ofworkers Identified In Golumn A In connecGan wdh
Nis award. Naw h'ra refars to a person who Is not on the conVaCor s
or recipienPs peyrdl for employment et Ihe lime of seledlon for the
Secdon 3 wvered award or at the lime of rxeipt ofSx6m 3 caered
assisienee.
Column C: (Mantla[ory FIH� Entar Na numhar of SocEon 3 na�v
hires fir each category af workers idenlified in Column A in
connectlon vriN lhis award. Sec6on 3 new hire rekre to a SxUon 3
resident who is not on the contraclor's or reeipienl's payroll fa
employmenl et Iha lime of seleeGon for Ihe Section 3 eovered awerd or
rt tlie lime of rxeipt af Section 3 cwered assiztance.
COIumnD: Enlerlheparcentagaafellihestaflhoursofnewhires
(Section 3 residents) in eonneclion vrith Nis eward.
Column E: Enler the percentage ofthe tdel slef(hours worked hr
Secuon 3 emptoyeas and trainees (ncluding new hi�es) connected
wRh this eward. Includa staRhours fa ped-tima end fulNime
posifions.
Column F: (Mendatory Flel� Enler Ihe num6er of Section 9
residents Ihet we�e Vained in eonnectlon with Ihis awa�d.
PeR II: GonVact OppoAunilies
Block 1: ConsVUUion ConUeds
Hem A: Enler Ihe lotal do0ar amount ol aY carRac[z awarded on lhe
projecVprogram.
Item B: Enter tha lotal doilar amount o(eontmets eonnacted with d�is
projecUpwgnm Ihet wxe awerdedto Seotion 3 6usinesses.
Item C: Enler 1he perrentage aI lhe totnl do0ar amount of cmlrads
connected wilh this projecVpogam r�verded lo Section 3 businesses.
Item D: Enlerthe number of Saetlon 3 Eusinesses rxeiving awards,
Block 2: Noo-Conslruction Cmlrects
Item A: Enter the rotol aollar amount ol a1 contracts awarded on the
projecUpragram.
Item B: Enter the tolat dollar emount of eontrecls eonnetletl wlth Ihis
pmjxt awarded m Sectim 3 huvne¢zez.
Item C: Enter tbe percen�aga of the total dollar amount ol cmlraNs
ronnactad wilh this projacVprogam awartled to Saefien 3 businassas.
Item D: EMer the number of Sec6on 3 6usinesset rxeivinc� ewards.
Partlil: SurtxnaryafERorts—Self-explanatary
Subm2 one (1) capy ofthis report lo lhe HUD Neadquorters OIR'ce of
Fair Housing and Equnl OppaRun'ty, at the snme lime lhe
perfamance report is suhmitted to the program office. The Section 9
report is wbmitted by January 10. Include only coniracts executad
during the period epecified in Rem 8. PHA:AHAs ere to repoA ell
conlra cts/subcontra d z.
' The terms'Imv-inroma persms' and very Io�v-inmme perwns"have
Ihe same meenings given tl�e terms in section 3(b) (� of lhe United
States Housing Act af 1997. LavIncnnx persons mean fnmilie:
(inNuding slnple persons) whose incomes tlo nol exceed 80 percent al
1he medan ncane for the area, os delerrrined by Ihe Secretary, vrith
adjurtrnentz (or smaller and larger hmities, excepl tha!
�
CHDO SINGLE FAMILY CONTRACT
The Sacretary mey es[eWish income ceiinqs higher ar Imver than 80 pereent
af the median for Ihe area on lhe basis of Ihe Secrelary's findngs such that
varialions ere necessery baceuse o! prevailing levels of conAructim cosls
ar unusualy high- or low-income familias. Very lowdncome pe�sons mean
low-income families (including singie persons) rihosa incmies do nd
eaceed 50 percenl of 1he medan Family income area, as dNermined try Ihe
Secretary with a�uslments or smaller and larger Families, excepl thal the
Seeret�ry may establish income �elings higher or lewer than 50 pereent o(
the me6en for Ihe erea on Iha besis of ihe Secretery's findings thet such
varietions �re necessery because of unusueiy high a lav famiy incomas.
Ash Crescent Single Family Infill Project
Development Corporation of Tairant County — 2713 Ash Crescent
y>nn Huu c�_�.�n; I t v)oio�
Rrf N CFR 13i
Rev 03/04/2021
EXHIBIT "J"
STANDARDS FOR COMPLETE DOCUMENTATION
DEVELOPMENT CORPORATION OF TARRANT COUNTY
2713 Ash Crescent
CHDO SINGLE FAMILY CONTRACT
Ash Crescent Single Family Infill Project
Development Corporation of Tan•ant County — 2713 Ash Crescent Rev 03/04/2021
FORTWQRTH
Standard of Documentatian fer Reim6ursement of De�elcpment Costs
Cost Type
Acquisition of Real Property
Documentation Standard
• Notice to Seller (date must be on or before the date of option� agreement
or sales contract and signed by the 6uyer and seller)
• Recorded Deed of Trust
• Purchase Agreementov/ Required HUD language
• h+SasterSettlementStatement/HUD-1
- Appraisal or other document useci to determine purchase price
- Proof of Payment (i.e., bank statementJcancelled check)
* Verification of Vacant Status (as appii�able}
Pre-Development and Soft
Costs (Archite�t, Enginezr,
Landscape Design, Surveys,
Appraisals, Environmental, L�gal
Fees, Other Consultantr, Et�.]
- Invoiceshouldinclude:
■ date;
■ company's letterhead;
■ address for evhich service is provided;
■ description of service(s) and item{s};
■ amount for itemized services; and
■ total amount
- Proof of Payrnent (i.e., bank statement or can�elled checkJ
- Fully executed contract/service agreements/letter agreements and
applicable amendments
e Provide printout from rv�vwsam_�ov verif��ing
tontractorfsubcontractoris not listed on the debarred and
suspension list
• If only a portion is being paid vrith City funds, then sho��r cal�ulation and
documentation of ho�,v costs are allo�ated.
Nei�hUorhoad Seitizces
FINAL as of 6,�21 f 2017 Page 1
CHDO SINGLE FAMILY CONTRACT
Ash Crescent Single Family Infill Project
Development Corporation of Tarrant County — 2713 Ash Crescent
Rev 03/04/2021
F�ORT W�RTH .,
Standard of Clacumentation for Reimbursement �f Development Casts
Canstruction Costs
(Contractors & 5ub�ontractors)
• lnvoice should include:
■ clate;
• �ompany's letterhead;
■ address for whi�h service is provided;
■ description of service(s) and item[s};
■ amount for itemized services; and
■ total amount
- Proof of Payrnent {i.e_, bank statement or cancelled che�k)
- Copy of applicable inspection report(s) condu�ted by NSD Inspector
- Copy of executed agreements
■ Provideprintoutfromwwnvsam.eovverifying
�ontractorJsubcontractor is not listed on the debarred and
suspension list
- If only a portion is being paid �vith City funds, then sho��r calculation and
do�umentation of ho�,v �osts are allo�ated.
- For payment of final retainage for the prime contractor, provide lien
tivaivers for the pnme and all subcontractors.
- List of subcontractors
Materials Purchased by Developer
{if applicableJ
- Invoite should include:
■ date;
■ company's letterhead;
■ adclress for ti�lhich service is provided;
■ description of sErvice(s} and item(s};
■ amount for itemized services; and
■ total amount
- Proof of Payment {i.e., hank statement or cancelled check)
- Verification of delivery
Developer Fee
(if paid directly from HOME fundsj
- Final Invoice Refle�tingTotal DevelopmentCost
- Proof of payment for any other entityffunding source contributing to
development costs
• Shotiv calculation of agreed upon developer fee perceiitage
- Copies of final lien releases from contractorJsubcontractor
- Complete Documentation income eligibility of buyersJrenters (i.e., income
documents for eligible homebuyer/tenants, sales contract between
developer/homebuyer, HAP Deed of Trust with required affordability
period language, et�.}
• Lease documents
- Final inspections of completed units
Nei�hboriiood Sei-��ces
FItYAL as of 6�21 f 2017 p��e �
CHDO SINGLE FAMILY CONTRACT
Ash Crescent Single Family In�ll Project
Development Corporation of Tairant County — 2713 Ash Crescent
Rev 03/04/2021
EXHIBIT "K"
MBE REPORTING FORM
DEVELOPMENT CORPORATION OF TARRANT COUNTY
2713 Ash Crescent
CHDO SINGLE FAMILY CONTRACT
Ash Crescent Single Family Infill Project
Development Corporation of Tarrant County — 2713 Ash Crescent Rev 03/04/2021
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CHDO SINGL� TANIILY CONTRACT
Ash Crescent Single Family Infill Project
Development Corporation of Tarrant County — 2713 Ash Crescent Rev 03/04/2021
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City of Fort Worth,
Mayor and
Texas
Council Communication
DATE: 03/24/20 M&C FILE NUMBER: M&C 20-0197
LOG NAME: 19ASH CRESCENT NEIGHBORHOOD INFILL
SUBJECT
Authorize Expenditure of HOME Investment Partnerships Program Grant Funds in the amount of $399,448.00 to Development Corporation of
Tarrant County, a certified Community Housing Development Organization in the Form of a Subordinate Forgivable Loan for Development of Four
Single Family Houses in the Ash Crescent Neighborhood and Authorize Execution of Related Contracts (COUNCIL DISTRICT 8)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the City Manager, or his designee, to substitute current and prior funding years in order to meet commitment, disbursement and
expenditure deadlines for grants from the United States Department of Housing and Urban Development;
2. Authorize the expenditure of $399,448.00 in HOME Investment Partnerships Program grant funds to Development Corporation of Tarrant
County in the form of a subordinate forgivable loan for the Ash Crescent Neighborhood Single Family Infill Development;
3. Authorize the City Manager, or his designee, to execute a contract with Development Corporation of Tarrant County in the total amount of
$399,448.00 for the development for a three year term beginning on the date of execution of the contract;
4. Authorize the City Manager, or his designee, to execute all related contracts or other documents necessary for lending activities;
5. Authorize the City Manager, or his designee, to extend the contract for the HOME funds for two one-year extensions if such extensions are
necessary for completion of the development, and to extend the other contracts for lending activities as necessary for completion of the
development; and
6. Authorize the City Manager, or his designee, to amend the contracts if necessary to achieve project goals provided that the amendments are
within scope of the project and in compliance with City policies and applicable laws and regulations governing the use of federal grant funds.
DISCUSSION:
On August 6, 2019, the City Council approved the City's 2019-2020 Action Plan for submission to the United States Housing and Urban
Development Department (HUD), which included $399,448.00 in HOME Investment Partnerships Program (HOME) grant funds to Development
Corporation of Tarrant County (DCTC) for the Ash Crescent Neighborhood Single Family Infill Development (M&C 19-0016). HUD requires the
City to set aside 15 percent of its allocation of HOME funds for Community Development Housing Organizations (CHDO) activities. DCTC is an
experienced single family affordable housing developer and certified by the City as a CHDO.
DCTC plans to develop four approximately 1,700 square foot, three-bedroom, two-bath, two-car garage single family houses on Ash Crescent
Street. The houses will be sold to individuals or families that earn 80 percent or less of the Area Median Income as determined by the U.S.
Department of Housing and Urban Development (HUD). Buyers must meet all HOME program requirements, including applying for and receiving
at least $1,000 in down payment and/or closing cost assistance from the City's Homebuyer Assistance Program (HAP) and occupying the houses
as their primary residences for the designated affordability period.
On February 4, 2020, the Fort Worth Housing Finance Corporation approved the sale of four of its vacant lots in the Ash Crescent Neighborhood
to DCTC for the project.
Staff recommends execution of a contract with Development Corporation of Tarrant County for a subordinate forgivable loan of CHDO HOME
funds in the amount of $399,448.00 for the development of the Ash Crescent Neighborhood Single Family Infill Development on the following terms
and conditions:
HOME Contract and HOME Loan Terms:
1.
2.
3.
4.
5.
6.
7.
8.
Construction must begin within six months of date of Contract execution;
Loan term to commence on execution of the loan documents;
Three year term for HOME contract and HOME loan;
First lien commercial construction loan terms must be acceptable to City; �
HOME loan will be subordinate only to first lien commercial construction loan;
Borrower's performance of the terms of the HOME contract and HOME loan will be secured by a deed of trust;
Payment of HOME loan will only be required if Borrower fails to fulfill the HOME requirements in the contract and the terms of the HOME loan;
DCTC will be paid a15 percent developer fee and will retain the net sales proceeds from the houses to be used to construct at least one
additional affordable house to be sold to a HOME-eligible buyer; and,
Houses must be sold to HOME-eligible buyers who qualify for a HAP loan of at least $1,000.00.
The expenditure of HOME fund is conditioned upon the followina:
1. Satisfactory underwriting in accordance with federal guidance for use of HOME funds and Ciry policies for funding of HOME units;
2. Satisfactory completion of an environmental review, pursuant to 24 CFR Part 58;
3. Receipt of authorization to use grant funds from HUD; and,
4. Closing on all other financing for the project.
The purpose of this project is to benefit low and very low-income citizens by providing them with affordable housing. This project will assist the City
in meeting its CHDO commitment and expenditure goals with HUD. A public comment period on the use of these HOME funds was held from July
1, 2019 to July 31, 2019. Any comments are maintained by the Neighborhood Services Department in accordance with federal regulations. The
Action Plan funding year may vary and be substituted in order to expend the oldest grant funds first.
This project is located in COUNCIL DISTRICT 8
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations and execution of the agreement, funds will be available in the
current operating budget, as appropriated, of the Grants Operating Federal Fund. This is a reimbursement grant. The Neighborhood
Services Department is responsible for requesting all reimbursements and will verify funding availability prior to incurring any expense.
Submitted for City Manager's Office bv: Fernando Costa 6122
Originatina Business Unit Head: VictorTurner 8187
Additional Information Contact: Chad LaRoque 2661
Leticia Rodriguez 7319
SAM Search Results
List of records matching your search for :
Search Term : Development Corporation of Tarrant County*
Record Status: Active
ENTITY Development Corporation of Tarrant County Status: Active
DUNS: 791548964 +4: CAGE Code: 6KSW5 DoDAAC:
Expiration Date: 02/09/2022 Has Active Exclusion?: No Debt Subject to Offset?: No
Address: 1509 S UNIVERSITY DR STE B208
City: FORT WORTH State/Province: TEXAS
ZIP Code: 76107-9501 Country: UNITED STATES
March 09, 2021 12:49 PM https://www.sam.gov Page 1 of 1