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HomeMy WebLinkAboutContract 42289-A2 C`'U'S`4WMYL N SECOND AMENDMENT NMENT T C'IT'Y SECRETARY CONTRACT NOM 42289 Wl1EREAS the City if Fort Worth ("'City") and Tarrant County Housing Partnership, Inc. (""Developer") made and entered, into City Secretary Contract No. 42289 (collectively with all previous, amerr dnients, the "Co" ntraet!w)I WHEREAS the Contract provided funding to Developer pursuant t: a grant received by City from, the United States fi epart anent of Housing, and Urban Development 1-4UD through the HOME Investment Partnerships Program ("HOME"), Catalg of Federal Domestic Assistance N . 1 4.239, WHEREAS., the HOME regUlations regUtre that 1�5 of the City's, HOME grant funds he set aside for housing to developed, sponsored, or owned by a Community Housing Development t rga,nizati n "CHDO". and Developer qualifies as a,CHDO, WHEREAS, the City agreed to lean Developer' 51,00 ,0001.00 of its HOME CH set - aside aside funds in the of Subordinate ate le an to complete the rehabilitation of a. .foreclosed 11 building apartment complex commonly luiown as the Beaty Street Apartments, under the terns and conditions descrihed in the Contract WHEREAS, the City also agreed to login the Developer$1,6 9,175 of its Neighborhood Stabilization Program funds in the form of a Subordinate loan for the project under the terms and conditions f"City Secretary, Contract No. 42290, and Developer obtained a line of credit fi- n a ban-, WHEREAS, due to,the age of the buildings being renovated as well ,as ether unforeseen expenses including asbestos, and lead remediation, the rehab,11 itation costs sts exceeded the Budget by $195,000.00 so there is a gap in Developer's rinancing for the project- WHEREAS, HUD notified the City that it had available $1 9,526.51 of HOME CHDO .reservation funds from 1998 that had to he expended on an eti ,ihle HOME, project and in the First Amendment to the Contract, City agreed with Developer to increase the Loan by that amount to assist with theftinding gip and to prevent the City from losing the C DO funds; WHEREAS,, H'U'D h s now notified the City that $45,+ 001.00 of 2006 HOSE funds must he, expended ded for a HOME project and City is willing to use these funds to increase the Loan to Developer eloper to further assist with the funding gap and to prevent the City fr rn lasing the benefit of these funds-. and, "HEREAS, it is the mutual. desire of City and Agency to amend the Contract to provide for a total Loan of 1,0� 4, 26.51 NOW, THEREFORE, City and Developer hereby y agree to amend the Contract fell ws RECEIVED SEP 1 2013 CITY SECRETARY FTv WORTH, TX Amendment No. 2 to CSC 42289 Rev 091201 T -Beaty Street Apartments(HOME) Page 1 1. a. Section 4.1 is deleted in its entirety and replaced with the following.- City shall loan up to One Million Sixty-Four Thousand Five Hundred, Twenty Six and 5l/1 Dollars ($1 11064,526.5 1) of HOME Funds in the fon-n of a subordinate loan to complete the construction of the Required Improvements, under the terms and conditions described herein (the "Loan"'). b. Exhibit "B" — Sources and Uses attached to the Contract is hereby replaced With the attached Exhibit "B,"—Sources and Uses Revised 9,/2013 C. This amendment is effective as of the Effective.date of the Contract. 11. Developer and City agree to enter into a separate Modification, Renewal and Extension Agreement to reflect the new Login amount All terms and conditions, of the Contract not an herein remain unaffected and in full force and effect, are binding on the Parties and are hereby ratified by the Parties. Terms not spect ically defined herein shall have the same meaning as in the Contract. [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] FoFFICIAL RECORD CITY SECRETARY WORTH, TX Amendment No.2 to CSC 42289 Rev 09/2013 TCHP-Beaty Street Apartments(HOME) Page 2 0 ACCEPTED AND AGREED, TAR NT COUNT HOUSING CITY OF FOR WORTH PARTNERSSH-P, INC. -000� B By Y. Vai�gehss 'r, Femando Costa, Predent/C.EO Assistant City Manager �a000q� ATTEST: APPROVED AS TO FORM AND LEGALITY, i*t y Secretar Assistant City Attorney M&C: C-2507 Date: 7/26/2011 0 co 0,000000 P OFFICIAL RECORD CITY SECRETARY FTO WORTH,,TX Amendment No. 2 to CSC 42289 Rev 09/12013 TCUP-Beaty Sti-eet Apartments(HOME) Page 3 EXHIBIT Sources and Uses Revised 9/2013 T CHP, 0 "A w COFW NSP COFW 14,01MIE T oc Acquisition S I�1501000 $1 1 50,,000 Acquisition - Insurance- property $20,,000 $20,000 liabi'lity, builder's risk Acqui,sition - Closing costs, $1181801, $1181801 extension/legal fees _A�quisition- Asbestos Survey $6i 125 $6 125 Acquisition- Lead Base Paint $1,41000 $,14100;0 Testing Relocation Agent Fees $1351000 $11351,000, Relocation Expenses(I tenant) $1151,000 $15�0,0;01 Architectural $8,360 W360 Rehab and Hard Costs $208,341 10164,51261-51 $248,1750, $50161,640 $12 02 812 5 7.5 1 Developer Fee 5%NSPA 7$84!988 J $8,4�988 TOTAIIJ 11737,255 0641 526.5 24 5 1 $118J0 $513 580,53 0110100 $3, ,11['* -I IKI 11 *$50,000 of Developer Fee to be paid upon closing of Beaty Street property', and the remainder to be paid when City has received from Developer all its formation requi I red to, close the piroi,ect in IRIS and begin the Affordability 'llertod. "Nothing in this Contract shall be construed as a,commitment by the City to provide t�hes,e funds. OFFICIAL RECORD] CITY SECRETARY IT&WORTH9 TX Aniend,ment No. 2 to CSC 42289 Rev 09/2013 T(1113-Beaty Street Apartments(HOME) Page 4 City of Fort Worth,, Texas M1 of ^ a on ..Mayor and Counciii %,,o unication COUNCIL ACTION. Approved on 7/26/20,11 DATE N: Tuesday,July 261, 2011 REFERENCE NO.0 C-25072 LO,G,NAME. 17BEATY STREET APARTMENTS—ADDITIONAL CHDO FUNDING SUBJECT,0: Authorize Change in Use and Expenditure of$1,0100,0010.00 of HOME Investment Partnerships Program '1­� Grant Funds to,Tarrant County Housing Partnership,,Inc.,, in the Form of'a Subordinate Forgivable Loan, for the Beaty Street Apartments Located in the 5500,Block,of Beaty Street, Authorize the Execution of a Contract and Authorize Substitution of Funding Year (COUNCIL DISTRICT 8) !QOMMEN12A11ON&- It is recommended that the City, Council-., L Authorize a change in use and expenditore of$1,000,000.00 in prior year's HOME Investment Partnerships Program Grantfunds to Tarrant County Housing Partnership, Inc., in the forni of a subordinate forgivable loan for the acquisition, rehabilitation and redevelopment of the Beaty Street Apartments located in the 5500 our of Beaty Street, 2. Authorize the City Manager,or his designee,,, to execute a,contract and any related documents for the prq:ject with the Tarrant County Housing Partnership, Inc.,for a two—year term beginning,on the date of execution ofthe contract: 3. Authofiz,e,the City Ma,nag,er, or his es nee, to eaten a or renew the contract for up to one year if Tarrant County Housing Partnership, Inc. requests an extension and such extension, is necessary for completion of'the project-, 4. Authorize the City Manager, or his designee, to amend the contract if necessary to acheive project goals provided that the amendment is within the scope of the project and in compliance with City policies and applicable laws and, regulations governing("he use ofFederal grant ftinds; ,and 5. Authorize the City Manager to substitute, funding years "in order to meet,commitment,disbursement, and expenditure deadlines for grant funds from the United States Department of Housing and Urban Development. DISCESSIONO On July 13, 2010,City Council approved a contract with Tarrant County Housing Partnership, Inc. (TCHP) for$1,360,255.00 of the City 1:s Neighborhood Stabilization Program (NSP), grant funds set aside for households earning less than 50 percent of area median 'income(AMI) forthe acqu,i ship n and,redevelopment of'the Beaty Street Apartments located in the 55010 block of Beaty Street just north of Lancaster Avenue (M&C C-243144). On September 14, 20110,City Council approved an addtiona ,500.00 of NSP funds for the project for a total of 1,699,7'55.00 to'be in the form of a subordinate forgivable loan (M&C C-24455).The State is providing approximately$1.8, mill,ion of its NS,P funds for the prq�j,ect and T P Is providing approximately$314,000.00 of its own funds for the project. The project consists of the acquisition of'73 inultifarnily units to be rehabilitated, and redeveloped into 64 units. The 64 units will be in the 10 existing multifamily buildings and a single family house located on the site will be rehabilitated to serve as an office/community center for on—site enrichment programs such as budget management classes, credit counseling,job' skills, and,resurne building. The project is now owned by a lender after foreclosure and existing tenants will be,relocated in accordance with Uniform Relocation Act requirments. The 64 apartment units, will provide quality,, affordable, accessible housing to individuals and families earning 50 percent,or less, of AMI is will increase the total number of very low income households served by the P. T'CHP will develop,, own, and manage the property. State and City staff have reviewed the project 11 s,development costs and funding sources and the rents that will be charged. Because NSP requires that the rents, be affordable to families earning at or eliow 510 percent AMI, State and City staff have identified a gap in the project 11 s finances. Staff recommends awarding an additional $,1 1,00,01,000.010 in HOME Comm unit Housing Developnient Organization (CHDO) Set—Aside funds, to,'TCHP, a certifi ed CHDO for this project. The funds can be used for acquisition, p redeye lop, ment costs, rehabilitation and redevelopment costs, including, among other things, making the ,project more sustainable and energy efficient. amaling1ids L&c,&11o1W1t1e conk&-t,and I"tee its must be rented to tenants who earn at or below 50 percent of AML ii. Secure performance and repayment of HOME funds in case of default with deed of trust, iii. 15 year Affordability Period, iv. Loan term to run concurrently with Affordability Pefiod; v., Loan, forgiven at end ofAffordability Period if all HOME requinnents, and contract terms are met. Th "Xend1LtMre 9f,,HQJ&fundA,i's cenditioad i. Satisfactory completion of an environmental review per 24 CFR Part 518-, and ii. Authorization to use grant funds,from HUD. Staff recommends the change in use and expenditure of$1,000,000.,00 of HOME CHD110 Set—Aside funds for the project which benefits low and very low income citizens by providing them with affordable house ing. A public comment period on the change in use of these HOME funds was held from June 24, 2011 to July 23, 201 1. Any comments, are maintained by the Housing �md Econornic Development Department. The Action, Plan funding years, selected may vary and be substituted based,on the principle of first in, first out,(FIFO) in order to spend oldest grant ftinds, first. 'This project is located in COUNCIL DISTRICT 8. F1S!LAL.LNF!QBMA11QN' The Financial Management Services Director certifies that funds are available in the current operating budget,as appropriated, of the Grants Fund. 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