HomeMy WebLinkAboutContract 45941 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 the Cornerstone Assistance Network Housing
Development Corporation (hereafter "Developer"), a Texas non-profit 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 Development 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
partnerships among City, local governments, local lenders, private industry and
neighborhood-based nonprofit housing organizations;
WHEREAS, the primary purpose of the HOME program 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 Part 92 et seq. is to benefit low
income citizens by providing them with affordable housing;
WHEREAS, a portion of City's HOME funds are reserved for the use of certain
housing development entities that qualify under the HOME Regulations as a Community
Housing Development Organization or CHDO;
WHEREAS, Developer is a Texas non-profit 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;
WHEREAS, Developer has requested HOME CHDO funds for an eligible project
under the HOME Regulations whereby Developer will construct a single family house
located at 3233 Fitzhugh, Fort Worth, TX 76105 for sale to a low to moderate income
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homebuyer; and
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l i WHEREAS, City citizens and the City Council have determined that the
development of quality, accessible, affordable housing is needed for moderate, low, and
rn very low-income City citizens.
NOW, THEREFORE, in consideration of the mutual covenants and obligations
F-' and responsibilities contained herein, includi ttachments, and subject
'V OFFICIAL RECORD
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CHDO SINGLE FAMILY CONTRACT
Cornerstone-3233 Fitzhugh CITY SECRETARY Rev 8Pa e I
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to the terms 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 true 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 terms 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, property taxes, and hazard insurance is not more
than 30% or less than 16% 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 constructed
with HOME funds must remain affordable and subject to the recapture provisions in 24
CFR Part 92.254 of the HOME Regulations.
The Affordability Period for the house constructed under this Contract 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 set annually by HUD.
Business Diversity Enterprise Ordinance or BDE means the City's Business Diversity
Ordinance, Ordinance No. 20020-12-2011.
Complete Documentation means the following documentation as applicable:
• Attachments I and II, with supporting documentation as follows:
• Proof of expense: copies of timesheets, invoices, leases, service contracts
or other documentation showing that payment is due by Developer.
• Proof of payment: cancelled checks, bank statements, or wire transfers
necessary to demonstrate that amounts due by Developer were actually
paid by Developer.
• Other documentation: (i) final lien releases signed by the general contractor
or subcontractors, if applicable; (ii) copies of all City permits and City-issued
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"pass" inspections for such work; (iii) documentation showing compliance
with BDE or DBE bidding process for procurement or Contract activities, if
applicable; (iv) proof of contractor, subcontractor or vendor eligibility as
described in Section 6.6; 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.
• FINAL REIMBURSEMENT SHALL NOT BE MADE UNTIL ALL
LIENS ARE RELEASED TO CITY'S SATISFACTION AND THE
SALE OF THE HOUSE TO A HOME ELIGIBLE BUYER IS
CLOSED.
Community Housing Development Organization or CHDO means, as defined in 24
CFR 92.2 as amended from time to time, a private non-profit organization, that:
(1) Is organized under State or local laws;
(2) Has no part of its net earnings inuring to the benefit of any member, founder,
contributor, or individual of the CHDO;
(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 may 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 shall not appoint more than one-third of the
membership of the organization's governing body, and board members
appointed by the for-profit entity may not appoint the remaining two-
thirds of the board members; and
(iii) The CHDO must be free to contract for goods and services from
vendors of its own choosing;
(4) Has a tax exemption ruling from the Internal Revenue Service under section
501(c) (3) or(4) of the Internal Revenue Code of 1986 (26 CFR 1.501(c) (3)-
1);
(5) Is not a public body (including the City)or an affiliate of a public body;
(6) Has standards of financial accountability that conform to 24 CFR 84.21
"Standards for Financial Management Systems";
(7) Has among its purposes 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 neighborhoods, city, county or metropolitan area; for rural areas, it
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may be a neighborhood or neighborhoods, town, village, county, or
multi-county area(but not the entire State); and
(ii) Providing a formal 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 demonstrated capacity for carrying out activities assisted with HOME
funds;
(10) Has a history of serving the community within which housing to be assisted
with HOME funds is to be located; and
(11) Has at least one full-time staff person.
Completion means the substantial completion of the house as evidenced by a HED
Department Minimal Acceptable Standard Inspection Report, HUD Compliance
Inspection Report and all other applicable final inspection approvals from the City.
Completion Deadline means November 15, 2015.
DBE means disadvantaged business enterprise in accordance with 49 CFR Part 26.
Deed of Trust means any deed of trust from Developer in favor of City covering the
Property and securing the indebtedness evidenced therein and Developer's performance
of the requirements of this Contract and the of the HOME Regulations, as the same may
be extended, amended, restated, supplemented or otherwise modified. The form of the
Deed of Trust is attached as part of Exhibit"E"—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 the City's Housing and Economic Development
Department.
Effective Date means July 1, 2014.
HAP or HAP Program means the City's Homebuyer Assistance Program which
provides subordinate forgivable deferred payment loans with HOME funds for closing
cost and/or down payment assistance to eligible homebuyers under the HAP Guidelines.
HAP Guidelines means any rules, regulations, guidelines and requirements by City or
HUD that a homebuyer must meet in order to (i) qualify for HAP down payment and/or
closing cost assistance, and (ii) fulfill the homebuyer's obligations under the HOME
Program during the Affordability Period.
HAP Loan means the subordinate purchase money loan from the City under its HAP
Program to a HOME Eligible Buyer in the minimum amount of$1,000.00.
HAP Loan Documents means the HOME Written Agreement between the City and the
HOME Eligible Buyer, the promissory note in favor of the City in the amount of the HAP
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assistance and the deed of trust 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.
HED Department means the City's Housing and Economic Development Department.
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% 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 HAP loan.
HOME Funds means the HOME Program grant funds supplied by City to Developer
under the terms of this Contract not to exceed$153,743.
HOME Regulations means the HOME Investment Partnerships Program Final Rule
found at 24 CFR Part 92 et seq.
HOME Requirements means that a house constructed with the HOME Funds must be
sold by Developer to a HOME Eligible Buyer who has received a minimum HAP 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.
HUD means the United States Department of Housing and Urban Development.
IDIS means HUD's Integrated Disbursement Information System.
Loan means the HOME Funds provided to Developer by City in the form of a forgivable
deferred payment loan under the terms of this Contract as more particularly described in
the Loan Documents.
Loan Documents means security instruments including without limitation, the City's
Promissory Note and Deed of Trust, or any other similar security instruments evidencing,
securing 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.
Plans means the plans and specifications 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 Plans for the house are attached as Exhibit A-1 —Final Elevations, Plans and
Specifications.
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Principal Residence means the house purchased fiom Developer by a HOME Eligible
Buyer who will occupy it continuously throughout the Affordability Period in accordance
with the HAP Guidelines and the HAP 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"—Loan Documents.
Property means the lot or lots on which the Required Improvements shall be constructed
as more particularly described in and encumbered by the Deed of Trust.
Required Improvements or 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 3233 Fitzhugh, Fort Worth, TX 76105. The
Required Improvements are part of an infill housing development project in which
Developer will construct and sell single family houses in the Polytechnic neighborhood
to HOME Eligible Buyers (the "project").
Reimbursement Request means all reports and other documentation described in
Section 10.
Sales Proceeds means the funds resulting from the sale of the house to a HOME Eligible
Buyer and consisting of the sales price of the house less (i) any construction loan
repayment (other than the HOME Funds), and (ii) any common and customary seller's
closing costs approved by City shown on the HUD-1 Settlement Statement, or as
otherwise defined in the HOME Regulations.
3. TERM AND EXTENSION.
3.1 Term of Contract.
The term of this Contract commences on the Effective Date and terminates in 2
years unless earlier terminated as provided in this Contract.
3.2 Extension of Contract.
This Contract may be extended for 1 year upon Developer submitting a request
for an extension in writing at least 60 days prior to the end of the Contract term. The
request for extension shall include the reasons for the extension and Developer's
anticipated budget, construction 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
form of an amendment to this Contract executed by the Parties.
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3.3 Term of Loan.
The term of the Loan commences on the date of the Promissory Note and
terminates 2 years later so long as the terms and conditions of this Contract and the Loan
Documents have been met. The term of the Loan may be extended for 1 year upon
Developer submitting a request for an extension in writing at least 60 days prior to the
end of the Loan term. The request for extension shall include the reasons for the
extension and Developer's anticipated budget, construction schedule and goals for the
extended Loan 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 extension of the Loan
term. Any such extension shall be in the form of a Loan Modification Agreement
executed by the Parties.
4. DUTIES AND RESPONSIBILITIES OF CITY.
4.1 Provide HOME Funds.
City shall provide up to $139,766.00 of HOME Funds in the form of the Loan for
eligible expenses for the development of the house under the terms and conditions
described herein.
4.2 City 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. Construction of Required Improvements.
Developer shall 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 terms and conditions of this Contract.
5.2 Use of HOME Funds.
5.2.1 Sale of Required Improvements to a HOME Eligible Buyer.
Developer shall sell the house to HOME Eligible Buyers under the terms and
conditions of this Contract.
5.2.2 Costs in Compliance with HOME Regulations and Contract.
Developer shall be reimbursed for eligible costs for the Required Improvements
with HOME Funds only if City determines in its sole discretion that:
5.2.2.1 Costs are eligible expenditures in accordance with the HOME
Regulations.
5.2.2.2 Costs are in compliance with this Contract and are reasonable
and consistent with industry norms.
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5.2.2.3 Complete Documentation, as applicable, is submitted by
Developer.
5.2.3 Budget.
Developer agrees that the HOME Funds will be paid on a reimbursement basis in
accordance with Exhibit "B" —Budget and Exhibit "C" — Construction and
Reimbursement Schedule. Developer may increase or decrease line-item amounts in
the Budget with the Director's prior written approval, which approval shall be in the
Director's sole discretion, so long as the expenses are in compliance with 5.2.2, comply
with Exhibit "A" — Project Summary and Scope of Work, and the total amount of
HOME Funds is not increased.
5.2.4 Change in Budget.
5.2.4.1 Developer will notify City promptly of any additional funds it
receives for construction of the Required Improvements, and
City reserves the right to amend this Contract in such instances
to ensure compliance with HUD regulations governing cost
allocation.
5.2.4.2 Developer agrees to utilize the HOME Funds to supplement
rather than supplant funds otherwise available for the house.
5.3 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 upon the completion
of the house shall remain with City.
5.4 Identify Development Expenses Paid with HOME Funds.
Developer will keep 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.
5.5 Acknowledgement of City Payment of HOME Funds,
Within 90 days of Completion, Developer shall sign an acknowledgement 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.
5.6 Security for City's Interest.
To secure City's interest in the Required Improvements and the performance of
Developer's obligations hereunder, Developer shall execute the Loan Documents and
record the Deed of Trust at the earlier of(i) the acquisition of the Property, or(ii) before
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any construction materials are delivered to the Property or any work is commenced on the
Required Improvements. No HOME Funds will be paid or reimbursed until the 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.
5.6.1 Loan Terms and Conditions.
Developer will be required to:
5.6.1.1 Execute the Promissory Note and Deed of Trust along with any
other Loan Documents required by City.
5.6.1.2 Provide City with a Mortgagee's or Lender's policy of title
insurance in the amount of the Loan.
5.6.1.3 Pay all costs associated with closing the Loan.
5.6.1.4 Provide City with a copy of an estimated settlement statement
from the title company at least 1 business day before closing of
the Loan.
5.6.1.5 Ensure City's lien is in first lien position unless otherwise
approved in writing by City. In addition, City must approve in
writing any secured financing for the Required Improvements
that is to be subordinate to the Loan.
5.6.1.6 The term of the Loan shall be as specified in Section 3.3.
5.6.1.7 No interest shall accrue on the Loan provided that Developer
complies with the terms and conditions of the Promissory Note.
5.6.1.8 The Loan is a forgivable deferred payment loan. The Loan will
be forgiven provided that (i) the house is sold to a HOME
Eligible Buyer in accordance with the HOME Requirements,
(ii) City receives the Sales Proceeds, and (iii) Developer is not
otherwise in default of the Loan terms or Contract provisions.
5.6.1.9 Early repayment of the 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 Trust shall secure both repayment of the HOME
Funds, if required, and performance by Developer of its
obligations under this Contract.
5.6.1.10 Refinancing of the Loan or any approved subordinate financing
by Developer shall require City's prior written approval for the
purpose of ensuring compliance with the HOME
Requirements, which approval shall not be unreasonably
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withheld.
5.6.1.11 Any failure by Developer to comply with this Section 5.6.1
will be an event of default under this Contract and the Loan
Documents.
5.7 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 the City in
writing if the house has not been sold to a HOME Eligible Buyer within 4 months of
Completion. Such notice must be given within 14 calendar days of the 4 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 6 months of
Completion
5.8 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 services, may at City's sole discretion require the repayment of the
HOME Funds unless City approves the new owner or transferee in writing and the new
owner or transferee affirmatively assumes in writing the HOME Requirements as well as
all of Developer's other obligations under this Contract. Failure of the transferee to
assume all of Developer's obligations under this Contract and the Loan Documents will
result in immediate termination of this Contract. In addition, City may pursue any of its
remedies under the Loan Documents if the transferee fails to assume all of Developer's
obligations hereunder.
5.9 CHDO Certification.
5.9.1. 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.
5.9.2 Status Reports.
Developer has a continuing duty to provide City with all documentation or
information 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 30th of each year.
CHDO shall replace any board member who resigns or is otherwise no longer able to
serve 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.
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6. CONSTRUCTION.
6.1 Construction Schedule.
Developer will construct 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.
The construction of the house must pass a HED Department Minimal Acceptable
Standard Inspection report, a HUD Compliance Inspection Report and any other
applicable HUD-required inspections during the construction period, along with any
applicable final inspection approval from the City at the completion of the construction of
the house.
6.2 Applicable Laws, Building 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 I1 of the
International Residential Code; (iv) if new construction, must conform to the Model
Energy Code published by the Council of American Building Officials.
6.3 Property Standards During Construction.
If applicable, Developer shall comply with the following during the construction
of the house: (i) the Property Standards and Housing Quality Standards (HQS) contained
in 24 CFR Part 92.251, (ii) City property standards, and (iii) all other required
accessibility standards for the house.
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 accordance with
24 CFR Part 92.355 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 Part 745 in the
construction 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 accuracy or the competency of the Plans, including, but not
limited to, any related investigations, surveys, designs, working drawings and
specifications or other documents; or (ii) an assumption of any responsibility or liability
by City for any negligent act, error or omission in the conduct or preparation of any tests,
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investigations, surveys, 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 efforts to ensure that all contractors
or vendors utilized by Developer, or subcontractors utilized by Developer's general
contractor, are appropriately licensed and such licenses are maintained throughout the
construction of the Required Improvements. Developer shall ensure that all
subcontractors utilized by Developer or subcontractors utilized by Developer's general
contractor in the construction of the house, or vendors utilized by Developer in the
marketing or sale of the house are not debarred or suspended from performing the
contractor's, subcontractor's or vendor's work by the City, the State of Texas or the
Federal government. Developer must confirm that all contractors, subcontractors or
vendors are not listed on the Federal System for Award Management, www.sam.gov, and
must submit printed verification of such searches (i) with the first Reimbursement
Request which includes invoices from any contractor or subcontractor, or (ii) prior to
hiring any vendor to market or sell the house. Failure to submit such proof of search
shall be an event of default. In the event that City determines that any contractor,
subcontractor or vendor has been debarred, suspended, or is not properly licensed,
Developer or Developer's general contractor shall immediately cause the contractor,
subcontractor or vendor to stop work. Developer shall not be reimbursed for any work
performed by any contractor, subcontractor or vendor that has been debarred, suspended
or is not properly licensed. However, this Section shall not be construed to be an
assumption of any responsibility or liability by City for the determination of the
legitimacy, quality, ability, or good standing of any contractor, subcontractor or vendor.
Developer acknowledges that the provisions of this Section pertaining to the Federal
System Award Management shall survive the termination of this Contract for so long as
Developer owns any house which was constructed in whole or in part with the HOME
Funds.
7. SALE OF REQUIRED IMPROVEMENTS TO HOME ELIGIBLE BUYER.
7.1 Income Elilzibility.
Homebuyer eligibility will be determined using the definition of annual income in
24 CFR 5.609.
7.2 Sales Price of Required Improvements.
The sales price of each house shall not exceed 95% of the median purchase price
for the area as set by HUD in accordance with 24 CFR 92.254. Sales price shall be
established by a market analysis performed by the Developer and furnished by the
Developer to the City no later than 60 days after the Effective Date.
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
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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 from a HUD-certified housing counseling agency provided to City.
Failure to provide a copy of such certificate shall be an event of default.
7.3.1 HAP Participation.
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 days prior to
closing of the sale of the house. Eligibility for a HAP Loan shall be determined by City
in its sole discretion using the HAP 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
for City to process the HAP Loan application, including verification of homebuyer
income eligibility.
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 determined by a market
analysis performed by Developer. In the event that the price of the house is reduced
below the sales price set by the market analysis, and the amount of the reduction in the
sales price plus the amount of the HAP Loan exceeds $15,000.00, then the Affordability
Period will be 10 years. If the amount of the reduction in the sales price plus the amount
of the HAP Loan exceeds $40,000.00,then the Affordability Period will be 15 years.
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 and secured by a deed
of trust in favor of City. The loan will be a subordinate
forgivable deferred payment loan for the term of the additional
required Affordability Period.
7.3.2.2 Developer shall notify City, and if necessary, the prospective
homebuyer and the prospective homebuyer's first lien
mortgage company within 5 business days of determining that
an additional Affordability Period will be required.
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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. The sales contract must contain
the following provision:
7.4.1 "The Property was constructed with Federal funds which require that the
Buyer occupy it as Buyer'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. The 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 Federal funds spent on the house, the City will forgive its loan. If
the Buyer does not meet the Federal requirements for the City's loan, Seller shall
terminate this contract by giving notice to Buyer and the Earnest Money will be refunded
to Buyer."
7.5 Developer to Provide Settlement Statement.
Developer shall provide City the estimated HUD-1 Settlement Statement at least 5
business days prior to the closing of the sale of the house to a HOME Eligible Buyer.
The HUD-1 shall show any homebuyer subsidies, the HAP Loan, any loan for the other
HOME Assistance and the Sales Proceeds to be returned to City. Developer shall not
close the sale of a house without receiving City's written approval of the final HUD-1.
7.6 Deadline for Sale of Required Improvements.
The house must be sold to a HOME Eligible Buyer within 6 months of
Completion. Developer shall submit status reports to City regarding the sale of each
house.
7.7 Marketing
7.7.1. Affirmative Marketing.
Developer must adopt affirmative marketing procedures and requirements for the
Required Improvements as required by 24 CFR Part 92.351 if the project involves the
construction of 5 or more houses. 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 marketing procedures and
requirements adopted must include:
7.7.1.1 Methods for informing the public, owners, and potential
purchasers about Federal fair housing laws and the Developer's
affirmative marketing policy.
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7.7.1.2 Requirements and practices Developer must adhere to in order
to carry out the affirmative marketing procedures and
requirements.
7.7.1.3 Procedures to be used by Developer to inform and solicit
potential purchasers of the houses constructed as part of the
project in the housing market area who are not likely to seek to
purchase a house without special outreach.
7.7.1.4 Records that will be kept describing actions taken by
Developer to affirmatively market the houses constructed as
part of the project and records to assess the results of these
actions.
7.7.1.5 A description of how Developer will annually assess the
success of affirmative marketing actions and what corrective
actions will be taken where affirmative marketing requirements
are not met.
7.7.2. City Approval.
All Developer marketing procedures related to the Required Improvements,
including but not limited to the affirmative marketing described in Section 7.7.1, are
subject to approval by City. Developer shall submit all marketing plans for City approval
no later than 30 calendar days after the Effective Date.
7.7.3 Effective Marketing.
Developer will be solely responsible for the effective marketing responsibilities
necessary to achieve the HOME Requirements. Documentation supporting these efforts
shall be submitted to the City upon request and shall include, but not be limited to,
brochures, sign-in sheets for open houses, listings, and advertisements.
7.8 Developer Fee.
Developer shall be paid the Developer Fee as more particularly described in
Exhibit "C" — Construction and Reimbursement Schedule on 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 6.1.1. City shall pay the Developer Fee outside of closing
upon receipt from Developer of an invoice showing the total amount of HOME Funds
actually spent to develop the Required Improvements.
7.9 Sales Proceeds.
All Sales Proceeds shall be returned to City.
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:
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8.1 Environmental Review.
HOME Funds will not be paid and costs cannot be incurred until City has
completed an environmental review as required by 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 if applicable, property acquisition, demolition, movement, rehabilitation,
conversion, repair or construction prior to the environmental clearance. Any violation of
this Section will cause this Contract to terminate immediately and require Developer to
repay to City any HOME Funds received and forfeit any future payments of HOME
Funds.
8.1.2 Mitigation.
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 Intentionally Omitted.
8.3. Monitoring.
8.3.1 Developer understands and agrees that it will be subject to monitoring by
City for compliance with the HOME Regulations 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.
8.3.2 Representatives of City, HUD and the United States Comptroller General
shall have access during regular business hours, upon 48 hours' prior notice, to
Developer's offices and records that are related to the use of the HOME Funds, and to
Director's officers, directors, agents, employees, contractors, subcontractors and vendors
for the purpose of such monitoring.
8.3.3 In addition to other provisions of this Contract regarding frequency of
monitoring, City reserves the right to perform desk reviews or on-site monitoring of
Developer's compliance with the terms and conditions of this Contract and the 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 performance,
the report shall include requirements for the timely correction of said deficiencies by
Developer. Failure by Developer to take the action specified in the monitoring report
may be cause for suspension or termination of this Contract as provided herein or City
may take 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.
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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"—Davis-Bacon Requirements -Federal Labor Standards Provisions.
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 making procurements under this Contract.
8.7 Copyright and Patent Rights.
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.
HUD 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 Contract.
8.8 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 work in
connection with the construction or sale of the house. Developer shall cause all
applicable provisions of this Contract to be included in and made a part of any contract or
subcontract executed in the performance of its obligations hereunder, including its
obligations regarding the HOME Requirements and the HOME Regulations. Developer
shall monitor the services and work performed by its contractors, subcontractors and
vendors on a regular basis for compliance with the HOME Requirements, the HOME
Regulations and Contract provisions. Developer is responsible to cure all violations of
the HOME Regulations committed by its contractors, subcontractors or vendors. City
maintains the right to insist on Developer's full compliance with the terms of this
Contract 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, subcontractors 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.
8.9 Payment and Performance Bonds.
Subject to the requirements of 24 CFR 85.36, Developer shall furnish City with
payment and performance bonds in a form acceptable to City in the amount of the
construction cost for the house but not less than $139,766.00.
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9. RECORD KEEPING, REPORTING AND DOCUMENTATION
REQUIREMENTS, RIGHT TO AUDIT.
9.1 Record Keeping.
Developer shall maintain a record-keeping system as part of its performance of
this Contract and shall promptly provide City with copies of any document City deems
necessary for the effective fulfillment of City's monitoring and evaluation
responsibilities. Specifically, Developer will keep or cause to be kept an accurate record
of all actions taken and all funds spent, with supporting and back-up documentation.
Developer will maintain all records 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 or 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 Contract
for 5 years after the Contract terminates. Such access shall be during regular business
hours and upon at least 48 hours' prior notice.
9.2 Reports.
Developer will submit to City all reports and documentation described in this
Contract in such form 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 termination 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 report or documentation described in this Contract 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 Additional Information.
Developer shall provide City with additional information as may be required by
state or Federal agencies to substantiate HOME Program activities and/or expenditure
eligibility.
9.3 Change in Reporting 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 days prior to the effective date of such
change, and the Parties shall execute an amendment to this Contract reflecting such
change if necessary.
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9.4 City Reserves the Right to Audit.
City reserves 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
terminates, 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 further funding under this Contract
and/or other contract 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 ANY 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 reimbursement in the submitted
request, and the cumulative reimbursement requested to date (inclusive of the current
request). This report must be signed by an authorized signatory of Developer. By
signing Attachment I, Developer is certifying that the costs are valid, eligible, and
consistent with the terms and conditions of this Contract, and the data contained in the
report is true and correct.
10.2 Attachment II—Expenditure Worksheet.
This report 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, if necessary; and
10.2.2 Proof that each expense was paid by Developer, which can be satisfied
by cancelled checks, wire transfer documentation, paid receipts or other appropriate
banking documentation.
10.3 Deadline for Submitting Reimbursement Requests.
All Reimbursement Requests along with Complete Documentation shall be
submitted by Developer to City within 60 days from each of the deadlines as shown in
Exhibit "C"—Construction and Reimbursement Schedule.
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10.3.1 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 Withholding Payment.
10.4.1 CITY SHALL WITHHOLD PAYMENTS REQUESTED
UNDER THIS CONTRACT IF COMPLETE DOCUMENTATION IS NOT
RECEIVED.
10.4.2 CITY SHALL HAVE NO OBLIGATION TO PAY ANY
REIMBURSEMENT REQUEST THAT IS NOT RECEIVED WITHIN 60 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.
10.5 Timing of Payment.
Provided that Developer submits Complete Documentation to the Director 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 Failure to Begin or Complete the Required Improvements
11.1.1 The Property shall be acquired by Developer within 2 months of the
Effective Date. If Developer fails to begin construction of the house within 3 months of
the acquisition of the Property or, if Developer already owns the Property, the Effective
Date, this Contract shall automatically terminate without further notice or opportunity 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. City shall also be entitled to demand repayment of the HOME Funds already
disbursed to Developer and enforce any of the provisions of Loan Documents for default.
11.2 Failure to Submit Complete Documentation During Construction.
11.2.1 If Developer fails to submit Complete Documentation during
construction of the Required Improvements in accordance with Exhibit "C" —
Construction and Reimbursement Schedule, or if any report or documentation
submitted as part of Complete 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 City's
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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 15 days(a total
of 30 days), City shall have the right to terminate this Contract effective immediately
upon written notice of such intent to Developer 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 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 determined
by City in its sole discretion, City will notify Developer in writing of such default and
Developer will have 15 calendar 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 otherwise due under such
Reimbursement Request. If such failure to resubmit such Reimbursement Request
continues for an additional 15 days (a total of 30 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 during 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 during 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 Contract.
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 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 Loan Documents.
11.3 Failure to Sell Required Improvements.
Developer must notify City in writing if Developer fails to sell any of the houses
to HOME Eligible Buyers within 4 months of Completion as described in Section 5.7.
Developer must notify City in writing no later than 5 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 6 months of Completion:
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11.3.1 Convert the house to a rental unit as described 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 separate 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 days of notifying the 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 Contract 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 any such report 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 repaid to City within 30 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 Loan Documents.
11.5 In General.
11.5.1 Subject to Sections 1 l.1, 11.2, 11.3 and 11.4, and unless specifically
provided otherwise in this Contract, Developer shall be in default under this Contract if
Developer breaches any term or condition of this Contract. 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 determined by both Parties 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 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.
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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 likely to be affected by the
performance deficiency, before expending HOME Funds
for the activities.
11.5.2.4 Reprogram HOME Funds that have not yet been expended
from 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 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 declaratory
judgment, specific performance, damages, temporary or
permanent injunctions, termination of this Contract or any
other contracts with Developer, and any other available
remedies.
11.5.3 In the event of termination under 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 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 Loan Documents.
11.5.4 If this Contract terminates prior to the sale of the house to a HOME
Eligible Buyer, Developer waives all right to the Developer Fee.
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 shall not receive any HOME Funds for work undertaken after the date
of termination.
11.8 Rights of City Not Affected.
Termination shall not affect or terminate any of the existing rights of City against
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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 Loan Documents including, but not limited to, compelling Developer to
complete the Required Improvements in accordance with the terms of the Contract. Such
termination does not terminate any applicable provisions of this Contract that have been
expressly noted as surviving the term or termination 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
CHDO default.
11.9 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 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 the Contract terms may result in civil, criminal or
administrative penalties, including, but not limited to those set out in this Contract.
11.11 Termination for Cause.
11.1 1.1 City may terminate this Contract in the event of Developer's default,
inability, or failure to perform 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 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
Loan Documents. DEVELOPER ACKNOWLEDGES AND AGREES THAT IF
CITY TERMINATES THIS CONTRACT FOR CAUSE, DEVELOPER OR ANY
AFFILIATES OF DEVELOPER SHALL NOT BE CONSIDERED FOR ANY
OTHER CITY CONTRACT FOR HOME FUNDS FOR A MINIMUM OF 5
YEARS FROM THE DATE OF TERMINATION.
1 1.11.2 This Contract shall be terminated immediately in the event Developer
loses its CHDO certification or status.
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 24 C.F.R. 85.44, 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 Parties shall
agree upon the termination conditions, including the effective date and in the case of
partial termination, the portion to be terminated, or
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1 1.12.2 By Developer upon at least 30 days' written notice to City setting forth
the reasons for such termination, the effective date, and in the case of partial termination,
the portion to be terminated. In the case of a partial termination, City may terminate this
Contract in its entirety if City determines in its sole discretion that the remaining portion
of the Contract to be performed or HOME Funds to be spent will not accomplish the
purposes for which this Contract was made.
11.13 Dissolution of Developer Terminates Contract.
This Contract shall terminate in the event Developer is dissolved or ceases to
exist. 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 Loan
Documents.
11.14 Reversion of Assets.
In the event this Contract is terminated with or without cause, all assets acquired
by Developer with the HOME Funds including but not limited to plans, drawings,
surveys, renderings, construction documents and any other real or personal property
owned by Developer that was improved with the HOME Funds shall belong to City and
shall automatically transfer to City or to such assignees as City may designate.
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 the City being required to repay all or any
portion of the HOME Funds to HUD, Developer agrees it will reimburse City for
such repayment.
13. MATERIAL OWNERSHIP CHANGE.
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 days to make such
determination after receipt of written notice from Developer and failure to make such
determination will constitute a waiver. In the event of termination 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
days of termination under this Section.
14. GENERAL PROVISIONS
14.1 Developer an Independent Contractor.
Developer shall operate hereunder as an independent contractor and not as an
officer, agent, servant or employee of City. Developer shall have exclusive control of,
and the exclusive right to control, the details of the work and services performed
hereunder, and all persons performing same, and shall be solely responsible for the acts
and omissions of its officers, members, agents, servants, employees, contractors,
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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, contractors,
subcontractors, vendors, tenants, licensees or invitees, and nothing herein shall be
construed as creating a partnership or joint enterprise between City and Developer. City
does not have the legal right to control the details of the tasks performed hereunder by
Developer, its officers, members, agents, employees, contractors, subcontractors,
vendors, tenants, licensees or invitees.
14.3 Developer Property.
City shall under no circumstances be responsible for any property belonging to
Developer, its officers, members, agents, employees, contractors, 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 Organization.
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 criteria for
buyers of a HOME-funded property.
14.5 Venue.
Venue shall lie in Tarrant County, Texas for any action, whether real or asserted,
at law or in equity, arising out of the execution, performance, attempted performance or
non-performance of this Contract.
14.6 Governing Law.
This Contract shall be government 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 for any reason a clause,
sentence, paragraph or other part of this Contract shall be determined to be invalid by a
court 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 Agreement Entire Agreement.
This written instrument and the Exhibits, Attachments and Addendums attached
hereto, which are incorporated by reference and made a part of this Contract for all
CHDO SINGLE FAMILY CONTRACT Rev 8-20-14
Cornerstone-3233 Fitzhugh Page 26
purposes, constitute the entire agreement by the Parties concerning the work and services
to be performed under this Contract. Any prior or contemporaneous oral or written
agreement which purports to vary the terms of this Contract shall be void. Any
amendments to the terms of this Contract must be in writing and executed by the Parties.
14.9 Paragraph Headings for Reference Only, No Legal Significance;
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
Contract. 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 "including" whenever
used herein shall be deemed to be followed by the words "without limitation".
14.10 Compliance With All Applicable Laws and Regulations.
Developer agrees to comply fully with all applicable laws and regulations 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, 11246 as amended by 11375 and 12086 and as
supplemented by Department of Labor regulations 41 CFR, Part 60
➢ The Age Discrimination 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 Part 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 Part 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 Reform 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 Barriers Act of 1968 as amended (42 U.S.C. sections
4151 et seq.) and the Uniform Federal Accessibility Standards, 24 CFR Part
CHDO SINGLE FAMILY CONTRACT Rev 8-20-14
Cornerstone-3233 Fitzhugh Page 27
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
➢ Drug Free Workplace Act of 1988 (41 U.S.C. Sections 701 et seq.) and 24
CFR Part 23, Subpart F
➢ Executive Order 12549 and 24 CFR Part 5.105(c) pertaining to restrictions on
participation by ineligible, debarred or suspended persons or entities
➢ Regulations at 24 CFR Part 882.708(c) pertaining 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 subgrants for construction or repair, Copeland "Anti-
Kickback"Act(18 U.S.C. 874) as supplemented in 29 CFR Part 5
➢ For construction contracts in excess of $2,000, and in excess of $2,500 for
other contracts which involve the employment of mechanics or laborers,
Sections 103 and 107 of the Contract Work Hours 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
14.11 HUD-Assisted Proiects and Employment and other Economic
Opportunities; Section 3 Requirements.
14.11.1 Requirement that Law Be Quoted in Covered Contracts.—Certain
Requirements Pertaining to Section 3 of the Housing and Urban
Development Act of 1968 as Amended (12 U.S.C. Sections 1701 et
seq.) and its Related Regulations at 24 CFR Part 135
If the construction of the Required Improvements will cause the creation of new
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 performed under
this Contract is on a project assisted under a program providing direct Federal financial
assistance from HUD, Section 3 of 24 CFR Part 135.38 ("Section 3") requires that the
following clause, shown in italics, be inserted in all covered contracts ("Section 3
Clause"):
Section to be quoted in covered contracts begins:
"A. The work to be performed under this contract is subject to the
requirements of Section 3 of Housing and Urban Development Act of
1968, as amended, 12 U.S.C. section 170111 (Section 3). The purpose of
CHDO SINGLE FAMILY CONTRACT Rev 8-20-14
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Section 3 is to ensure that employment and other economic opportunities
generated by HUD assisted or HUD-assisted projects covered by Section
3, shall to the greatest extent feasible, be directed to low- and very-low
income persons, particularly persons who are recipients of HUD
assistance for housing.
B. The parties to this contract agree to comply with HUD's
regulations in 24 CFR Part 135, which implement Section 3. As evidenced
by their execution of this contract, the parties to this contract certify that
they are under no contractual or other impediment that would prevent
them from complying with the Part 135 regulations.
C. The contractor agrees to send to each labor organization or
representative of workers with which it has a collective bargaining
agreement or other understanding, if any, a notice advising the labor
organization or workers'representatives of the contractor's commitments
under this Section 3 clause and will post copies of the notice in
conspicuous places at the work site where both employees and applicants
for training and employment positions can seethe notice. The notice shall
describe the Section 3 preference, shall set forth minimum number and job
titles subject to hire, availability of apprentice and training positions, the
qualifications for each; and the name and location of the person(s) taking
applications for each of the positions; and the anticipated date the work
shall begin.
D. The contractor agrees that it will include this Section 3 clause in
every subcontract to comply with regulation in 24 CFR Part 135, and
agrees to take appropriate action, as provided in an applicable provision
of the subcontract or in this Section 3 clause, upon finding that the
subcontractor is in violation of the regulations in 24 CFR Part 135. The
contractor will not subcontract with any subcontractor where it has notice
or knowledge that the subcontractor has been found in violation of
regulations in 24 CFR 135.
E. The contractor will certify that any vacant employment positions,
including training positions that are filed: (1) after the contractor is
selected but before the contract is executed, and (2) with persons other
than those to whom the regulations of 24 CFR Part 135. The contractor
will not subcontract with any subcontractor where it has notice or
knowledge that the subcontractor has been found in violation of
regulations in 24 CFR 135.
F. Noncompliance with HUD's regulation in 24 CFR Part 135 may
result in sanctions, termination of this contract for default, and debarment
or suspension fi^om future HUD assisted contracts.
G. With respect to work performed in connection with Section 3
covered Indian housing assistance, section 7(b) of the Indian Self-
Determination and Education Assistance Act(25 U.S.C. section 450e) also
applies to the work to be performed under this Contract. Section 7(b)
requires that to the greatest extent feasible (i) preference and
opportunities for training and employment shall be given to Indians, and
(ii)preference in the award of contracts and subcontracts shall be given to
CHDO SINGLE FAMILY CONTRACT Rev 8-20-14
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Indian organizations and Indian-owned Economic Enterprises. Parties to
this contract that are subject to the provisions of Section 3 and Section
79b) agree to comply with Section 3 to the maximum extent feasible, but
not in derogation of compliance with 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 specified 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 Notifying potential contractors working 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 HED
Department in making contractors and subcontractors
comply;
14.11.2.5 Refraining from entering into contracts with contractors
that are in violation of Section 3 regulations;
14.11.2.6 Documenting actions taken to comply with Section 3; and
14.11.2.7 Submitting Section 3 Annual Summary Reports (Form
HUD-60002) in accordance with 24 CFR Part 135.90.
14.11.3 Section 3 Reporting Requirements.
In order to comply with the Section 3 requirements, Developer must submit the
forms attached hereto as Exhibit "I" - Section 3 Reporting Forms and take the
following actions:
CFIDO SINGLE FAMILY CONTRACT Rev 8-20-14
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14.11.3.1 Report to the City all applicants for employment, and all
applicants for employment by contractor and
subcontractor on a quarterly basis. This shall include
name, address, zip code, date of application, and status
(hired/not hired) 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 demonstrates such open
advertisement, in the form of printout of Texas
Workforce Commission posting, copy of newspaper
advertisement, copy of flyers and listing of locations
where flyers were distributed, and the like.
14.11.3.3 Report to the City on a quarterly basis all contracts
awarded by contractor and subcontractor. 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 Housing 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 transgender, nor will Developer permit 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 11I, Division 3 - Employment Practices 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 terms of such
ordinances by either or its officers, members, agents, employees, vendors or contractors.
CHDO SINGLE FAMILY CONTRACT Rev 8-20-14
Cornerstone-3233 Fitzhugh Page 31
14.12.2 No Discrimination in Employment during 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:
[Contractor's, Subcontractor's or Vendor's Name] will not unlawfully discriminate
against any employee or applicants for employment because of race, color, sex, gender,
religion, national origin, familial status, disability or perceived disability, sexual
orientation, gender identity, gender expression or transgender. (Contractor's,
Subcontractor's or Vendors Name]_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 their 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 transfer, recruitment or recruitment advertising, layoff or
termination, rates of pay or other forms of compensation, and selection for training,
including apprenticeship. [Contractor's, Subcontractor's or Vendor'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, Subcontractor's or Vendor's Name] will, in all solicitations or
advertisements for employees placed by or on behalf of [Contractor's, Subcontractor's
or Vendor's Name] , 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 transgender.
[Contractor's, Subcontractor's or Vendor'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.
[Contractor's, Subcontractor's or Vendor's Name]_ further covenants that neither it
nor its officers, members, agents, employees, contractors, or persons acting on their
behalf, shall specify, in solicitations or advertisements for employees to work 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.
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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 services 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 THE ABOVE-
REFERENCED LAWS CONCERNING DISABILITY DISCRIMINATION IN
THE PERFORMANCE OF THIS CONTRACT.
14.13. Prohibition Against Interest/Conflict of Interest.
14.13.1 Developer shall establish safeguards to prohibit its employees, board
members, advisors and agents from using positions for a purpose 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.
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-making process or gain inside information with
regard to these activities may occupy a HOME-assisted housing unit, may obtain a
financial interest or benefit from a HOME-assisted activity, or have an interest in any
contract, 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.
14.13.3 Developer affirms that it will adhere to the provisions of the Texas
Penal Code which prohibits bribery and gifts to public servants.
14.13.4 If applicable, the conflict of interest provisions of 24 CFR Part 85.36
and 24 CFR Part 84.42, respectively, shall apply in the procurement of property and
services by Developer. In all cases not governed by those sections, the provisions of 24
CFR Part 92.356 of the HOME Regulations shall apply.
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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 Work Hours and Safety Standards Act (40 U.S.C.
327 et seq.) and all other applicable Federal, state and local laws and regulations
pertaining to labor standards insofar as those acts apply to the performance of this
Contract. Developer agrees to comply with the Copeland Anti-Kick Back Act (18 U.S.C.
874 et seq.) and its 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 contract for construction, renovation or repair work
financed in whole or in part with assistance provided under this Contract, shall comply
with Federal requirements adopted by City pertaining to such contracts and with the
applicable requirements of the regulations of the Department of Labor under 29 CFR
Parts 1, 3, 5 and 7 governing the payment of wages and ratio of apprentices and trainees
to journey 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
employee payrolls, contractor and subcontractor payrolls and other wage information for
persons performing construction of the Required Improvements. Payrolls must be
submitted to the HED Department with each Reimbursement Request, and must be
available to HED Department staff upon request. In addition, Developer shall ensure that
City will have access to employees, contractors and subcontractors and their respective
employees in order to conduct onsite interviews with laborers and mechanics. Developer
shall inform its contractors and subcontractors that City staff or representatives of Federal
agencies may conduct periodic employee wage interview visits during construction of the
project to ensure compliance.
14.15 Subcontracting 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 Enterprises and Small Business
Enterprises and to provide them equal opportunity to compete for contracts for
construction, provision of professional services, purchase of equipment and supplies and
provision of other services 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
CHDO SINGLE FAMILY CONTRACT Rev 8-20-14
Cornerstone-3233 Fitzhugh Page 34
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 enterprises ("DBEs"), small business enterprises ("SBEs"), minority business
enterprises ("MBEs"), and women's business enterprises ("WBEs"). Accordingly,
affirmative steps must be taken to assure that DBEs, SBEs, MBEs, and WBEs are utilized
when possible as sources of supplies, equipment, construction and services.
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 from the consequences or penalties for
Developer's failure to follow the law, if applicable.
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.
14.18 Right to Inspect Developer Contracts.
It is agreed that City has the right to inspect and approve in writing any proposed
contracts between Developer, its general contractor and subcontractors, including any
lower tier subcontractors engaged in any activity that is funded as part of the construction
of the Required Improvements, and any vendor contracts arising out of the sale of the
Required Improvements, prior to any charges being incurred.
14.19 Force Maieure.
If Developer becomes unable, either in whole or part, to fulfill its obligations
under this Contract due to acts of God, strikes, lockouts, or other industrial disturbances,
acts of public enemies, wars, blockades, insurrections, riots, epidemics, earthquakes,
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 like 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 HOME Requirements, auditing,
monitoring, homebuyer income eligibility, record keeping and reports, City ordinances,
the provisions of Section 6.6 pertaining to the Federal System Award Management, or
any other HOME Program requirements, and any default and enforcement provisions
necessary to enforce such provisions, shall survive the termination of this Contract for 5
CHDO SINGLE FAMILY CONTRACT Rev 8-20-14
Cornerstone-3233 Fitzhugh Page 35
years after the termination date and shall be enforceable by City against Developer.
15. INDEMNIFICATION AND RELEASE.
DEVELOPER COVENANTS AND AGREES TO INDEMNIFY, HOLD
HARMLESS AND DEFEND, AT ITS OWN EXPENSE, CITY AND ITS
OFFICERS, AGENTS, SERVANTS AND EMPLOYEES FROM AND AGAINST
ANY AND ALL CLAIMS OR SUITS FOR PROPERTY LOSS OR DAMAGE
AND/OR PERSONAL INJURY, INCLUDING DEATH, TO ANY AND ALL
PERSONS, OF WHATSOEVER KIND 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 OFFICERS, 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 LIKEWISE 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, INVITEES,
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 THIS
SECTION INCLUDES INDEMNITY BY DEVELOPER TO INDEMNIFY AND
PROTECT CITY FROM THE CONSEQUENCES OF CITY'S OWN
NEGLIGENCE, WHETHER THAT 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
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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 AND
SUBCONTRACTORS TO INCLUDE IN THEIR CONTRACTS AND
SUBCONTRACTS A RELEASE AND INDEMNITY IN FAVOR OF CITY IN
SUBSTANTIALLY THE SAME FORM AS ABOVE.
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 injury,
including death, to persons or property, Developer hereby expressly waives its rights to
plead defensively such immunity or exemption as against City. This Section shall not be
construed to affect a governmental entity's immunities under constitutional, statutory or
common law.
17. INSURANCE AND BONDING.
Developer will maintain coverage in the form of insurance or bond in the amount
of $139,766.00 to insure against loss from the fraud, theft or dishonesty of any of
Developer's officers, agents, trustees, 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
the City as a Loss Payee.
Developer shall furnish to City, in a timely manner, but not later than 10 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
terminate 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 thereof:
Commercial General Liability (CGL) Insurance
$1,000,000 each occurrence
$2,000,000 aggregate limit
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Business Automobile Liability Insurance
$1,000,000 each accident on a combined single-limit basis, or
$ 250,000 Property Damage
$ 500,000 Bodily Injury per person per occurrence
$2,000,000 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.
Workers' Compensation Insurance
Part 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 contractor, 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, officers, agents, and volunteers of City.
The Workers' Compensation Insurance policy shall be endorsed to include a waiver of
subrogation, also referred to as a waiver of rights of recovery, in favor of City.
Any failure on part of City to request certificate(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 insurance policies shall be licensed to do business in the state of
Texas by the Department of Insurance or be otherwise eligible and authorized to do
CHDO SINGLE FAMILY CONTRACT Rev 8-20-14
Cornerstone-3233 Fitzhugh Page 38
business in the state of Texas. Insurers shall be acceptable to City insofar as their
financial strength and solvency and each such company shall have a current 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
former 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, Developer shall require its contractors 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 referred 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 builder or general contractor to maintain builders risk
insurance at the value of the construction.
18. CERTIFICATION REGARDING LOBBYING.
Developer hereby certifies, to the best of its knowledge and belief, that:
No Federal appropriated funds have been paid or will be paid, by or on
behalf of Developer, to any person for influencing or attempting to
influence an officer or employee of any agency, a member of Congress, an
officer or employee of Congress in connection with the awarding of any
Federal contract, the making of any Federal grant, the making of any
Federal loan, the entering into of any cooperative agreement and the
extension, continuation, renewal, amendment, or modification of any
Federal contract, grant, loan or cooperative agreement.
If any funds other than federally appropriated funds have been paid or
will be paid to any person for influencing or attempting to influence an
officer or employee of any agency, member of Congress in connection with
this Federal contract, grant, loan or cooperative agreement, Developer
shall complete and submit Standard Form-LLL, "Disclosure Form to
Report Lobbying, " in accordance with its instructions.
CHDO SINGLE FAMILY CONTRACT Rev 8-20-14
Cornerstone-3233 Fitzhugh Page 39
This certification is a material representation of fact upon which reliance
was placed when this Contract was made or entered into. Submission of
this certificate is a prerequisite for making or entering into this Contract
imposed by 31 U.S.C. Section 1352. Any person who fails to file the
required certification shall be subject to a civil penalty of not less than
$10,000.00 crud not more than $100,000.00 for each such failure.
Developer shall require that the language of this certification be included in
all subcontracts or agreements involving the expenditure of Federal funds.
19. 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 Contract 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 days upon filing under any bankruptcy
or financial insolvency provision of law.
20. 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 service; 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 itv
City Attorney's Office
1000 Throckmorton Street
Fort Worth, TX 76102
Attention: Vicki S. Ganske
Telephone: 817-392-7765
Copy to:
Housing and Economic Development Department
1000 Throckmorton Street
Fort Worth, TX 76102
Attention: Assistant Director
Telephone: 817-392-7540
Developer:
Cornerstone Assistance Network Housing Development Corporation
3500 Noble Avenue
Fort Worth, TX 76111
Attn: Mike Doyle, Chief Executive Officer
Telephone: 817-632-6000
CHDO SINGLE FAMILY CONTRACT Rev 8-20-14
Cornerstone-3233 Fitzhugh Page 40
21. 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.
22. 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 FAMILY CONTRACT Rev 8-20-14
Cornerstone-3233 Fitzhugh Page 41
IN WITNESS WHEREOF, the Parties have executed 4 duplicate originals of
this Contract to be effective on the last date indicated below the Parties' signatures.
ATTEST: CITY OF FORT WORTH'
By: •� i Cso
lty Fernando Costa, Assistant City Manager
Nl&C�403 Dated 12/17/2013
M&C C-24710 Dated 1/25/2011 Date:
AP RO S TO FORM AND LEGALITY:
IdAi, A�f
tcki Ganske, Sepor Assistant City Attorney
CORNERSTONE ASSISTANCE
Qir
000000,40- NETWORK HOUSING DEVELOPMENT
CORPORATION, a Texas non-profit
w 0 0 corporatio
t.3$° mop By:
)°°°°°00000° Mike LOYe, Chief Executive Officer
EXAM Q �/
Date:
STATE OF TEXAS §
COUNTY OF TARRANT §
E�
This instrument was acknowledged before me o / , 2014 by
Fernando Costa, Assistant City Manager of the 4itlyfFor1tWAo&rth, on behalf the City of
Fort Worth.
Euolsslwwo0/.W =y ^= otary Public, State of Texas
iaig'ollQnd Ago}oN Nda NINOA3
STATE OF TEXAS §
COUNTY OF TARRANT §
This instrument was acknowledged before me on , 20N by
Mike Doyle, Chief Executive Officer of Cornerstone Assistance Network Housing
Development Corporation, a Texas nonprofit corpo tion, on beha 'of such c ation.
Notary Public, State dTexas
°.✓:"�q+,� DENICE J. CRAWFORD
• F: Notary Public,State of Texas
My Commission Expires
NCO October 29, 2017
CHDO S[NGLE FAMILY CONTRACT OFFICIAL RECORD Rev 8-20-I4
Cornerstone-3233 Fitzhugh CITY SECRETARY Page 42
FT.WORTH,TX
EXHIBITS:
Exhibit"A"—Project Summary—Scope of Work
Exhibit"A-1"—Final Elevations, Plans and Specifications
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"—Davis-Bacon Requirements - Federal Labor Standards Provisions
Exhibit"I"—Section 3 Reporting Forms
Exhibit"J"—Standards for Complete Documentation
CHDO SINGLE FAMILY CONTRACT Rev 8-20-14
Cornerstone-3233 Fitzhugh Page 43
EXHIBIT "A"
PROJECT SUMMARY-SCOPE OF WORK
CORNERSTONE ASSISTANCE NETWORK HOUSING DEVELOPMENT CORP.
3233 FITZHUGH AVE.
DESCRIPTION:
Developer will construct an approximately 1525 square foot, 3-bedroom, 2-bath single-family house on
a lot size of approximately 6600 (range) square feet. Construction will include a 2-car garage. Fencing
will be located at the rear and side yards. Landscaping will include the front yard.
The construction 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:
• Ceiling Fan(s) in in all bedrooms and in the living room
• Washer and Dryer hookups
• Central Air Conditioning
• Stove
• Oven
• Dishwasher
• Vent-a-hood
• Garbage Disposal
• Electric Garage Door with Remote
• Mailbox
• Refrigerator
The following materials shall be used for the construction of the house:
• Privacy Fence (back yard)
• Landscaping (front)
• Roofing Materials 3 TAB 25 YR
• 75 % Brick Siding and 25% Hardie Siding
• Foundation Type Post Tension
• HVAC 15 Seer Heat Pump
CHDO Single Family Contract—Exhibit"A"Thru"A-2"
Cornerstone—3233 Fitzhugh Ave. Rev 08-20-14
EXHIBIT "A-1"
FINAL ELEVATIONS,PLANS AND SPECIFICATIONS
CORNERSTONE ASSISTANCE NETWORK HOUSING DEVELOPMENT CORP.
3233 FITZHUGH AVE.
CHDO Single Family Contract—Exhibit"A"Thru"A-2"
Cornerstone—3233 Fitzhugh Ave. Rev 08-20-14
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EXHIBIT "A-2"
ENVIRONMENTAL MITIGATION ACTION
CORNERSTONE ASSISTANCE NETWORK HOUSING DEVELOPMENT CORP.
3233 FITZHUGH AVE.
Not Applicable
CHDO Single Family Contract—Exhibit"A"Thru"A-2"
Cornerstone—3233 Fitzhugh Ave. Rev 08-20-14
EXHIBIT "B"
BUDGET
CORNERSTONE ASSISTANCE NETWORK HOUSING DEVELOPMENT CORP.
3233 FITZHUGH AVE
Total Cost: $153,002
Project HOME Funds Awarded: $139,766
HOME Funds will be paid only as reimbursement for eligible expenses.
Development Budget
Use of Funds Source of Funds
Predevelopment Cost HOME$ OTHER$ SOURCE OF OTHER TOTAL$
FUNDS FUNDS FUNDS FUNDS
(1) (2) (Names) (1+2)
1. Market Study 800 800
2.Feasibility(i.e.: preliminary work write-up,
3.Other
Total Predevelopment Cost(1+2=3) 800 800
Development Cost
4. Land and/or building acquisition 6,000 6,000
5. Site Preparation 14,882 14,882
6.Construction Cost 112,957 10,000 Volunteers 122,957
7.Fence 2,236 Volunteers 2,236
8. Landscape 1,000 Volunteers 1,000
9.Contingency
10. Appraisal 100 100
11.Architect&Engineering Fees 677 677
12.Construction Management Fee
13.Construction Loan Interest
14. Property Survey 300 300
15. Legal Fees
16. Real Estate Fees 250 250
17.Utility Hookup/Impact Fees
18.Title&Recording Fees 3,800 3,800
19. Program Related Expenses
20.Construction Management
21.Bond Fees
Total Development Cost(Total of items 4-21) 138,966 13,236 152,202
Total Project Cost 139,766 13,236 1 153,002
CHDO Single Family Contract—Exhibit`B"—Budget
Cornerstone-3233 Fitzhugh Ave. Rev 08-20-14
EXHIBIT "C"
CONSTRUCTION AND REIMBURSEMENT SCHEDULE
CORNERSTONE ASSISTANCE NETWORK DEVELOPMENT CORP.
3233 FITZHUGH AVE.
Phase Activity Beginning Week—subject to
weather permitting
PHASE I ACTIVITIES: Lot Acquisition
Lot Preparation(Demolition)
Plumbing
Foundation
PHASE I DEADLINE:
October 31,2014 1st Payment* $34,616*
PHASE II ACTIVIITES: Framing
Roofing
Insulation
Siding
Top-out Plumbing, Electrical, HVAC
PHASE II DEADLINE: 2"d Payment* $46,683*
December 31,2014
PHASE III ACTIVIITES: Sheetrock, Tape/Bed/Texture/Trim-out
Paint
Cabinets, Countertops
HVAC, Plumbing, Electrical, Finish-
Out
PHASE III DEADLINE: 3rd Payment* $50,126*
February 28,2015
PHASE IV ACTIVIITES: Landscape, Paving
Flooring
Appliances, Interior trim-out/finish
PHASE IV DEADLINE: Construction Final Payment** $8,341*
April 30,2015
CONSTRUCTION TOTAL $139,766
DEVELOPER FEE Paid after closing of sale to HOME 10% of total eligible development
Eligible Buyer per Section 7.8* costs not to exceed $13,977*
"Developer will be reimbursed for eligible expenses only. All amounts are estimates and are subject to change.
Exhibit"G"-HOME Project Compliance 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—Exhibit"C"—Construction And Reimbursement Schedule
Cornerstone-3233 Fitzhugh Ave. Rev 08-20-14
EXHIBIT "D"
AUDIT REQUIREMENTS
CORNERSTONE ASSISTANCE NETWORK HOUSING DEVELOPMENT CORP.
3233 FITZHUGH AVE.
Not Applicable
CHDO Single Family Contract—Exhibit"D"—Audit Requirements
Cornerstone-3233 Fitzhugh Ave. Rev 8-20-14
EXHIBIT "E"
LOAN DOCUMENTS
CORNERSTONE ASSISTANCE NETWORK HOUSING DEVELOPMENT CORP.
3233 FITZHUGH AVE.
CHDO Single Family Contract—Exhibit E—Loan Documents
Cornerstone-3233 Fitzhugh Ave. Rev 08-20-14
NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL
PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE
FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT
TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR
RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER
OR YOUR DRIVER'S LICENSE NUMBER.
Deed of Trust
Security Agreement - Financing Statement
HOME CHDO Funds
Terms
Date: June 30, 2014
Grantor: Cornerstone Assistance Neork Housing Development Corporation, a
Texas nonprofit corporation
Grantor's Mailing Address:
3500 Noble Ave., Fort Worth,Tarrant County„TX 76111
Trustee: Vicki S. Ganske or Leann D. Guzman
Trustee's Mailing Address
City Attorney's Office
City of Fort Wof�h
1000-Throckmorton St.
Fort Worth TX,76102
;Tarrant County”
Lender: City of Fort Worth, atexas municipal corporation
Lender's Mailing Address: "
City of Fort Worth
Housing and Eco nom c Development Department
Attention: Assistant Director
1000 Throckmorton Street
Fort Worth, Texas 76102
Tarrant County
Loan Authority:
The loan evidenced by the Note (the "Loan") and secured by this Deed of Trust
Security Agreement — Financing Statement ("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,
Deed Of Trust—Home CHDO Funds
Cornerstone—3233 Fitzhugh Ave. Rev 08-20-14
42 USC 12701 et seq. (the "HOME Program") and the HOME Investment
Partnership Program Final Rule, as amended, 24 CFR Part 92 et seq. (the"HOME
Regulations") with HOME funds.
Obligations
Note
Date: June 30, 2014
Original Principal Amount: $130,234.00
Borrower: Cornerstone Assistance Network Housing Development
Corporation
Lender: City of Fort Worth
Terms of Payment: As provided in theNofe
Maturity Date: June 29, 2016,
In addition, Obligations shall inct di� compliane6, ,,by Grantor with the
requirements of the HOME Progra7 �" ore particular) described in Section F.
below.
Property(including any improvements):
Lot 13, Block 5, Englewood:Heights Addition; an Addition to the City of Fort
Worth, Tarrant County, Tea , acerding to t11ie,Plat recorded in Volume 310,
Page 67, Plat Records, Tarrant?County,Texas,
commonly known as229 Fitzhugh Ave, l6rt Worth, TX 76105.
Together with the followtrig personat;property:
#f xtures, ,supplies, balding materials, and other goods of every
nature now or heroafCer located, used, or intended to be located or used on
the`Property,
Atl,plans azid specifications for development of or construction of
improvemdrits on the%Property;
All cgiktracts aii subcontracts relating to the construction of
'irrprovements s the Property;
All acd.6unts, contract rights, instruments, documents, general
intangibles, and",chattel paper arising from or by virtue of any transactions
relating to the'lsroperty;
All permits, licenses, franchises, certificates, and other rights and
privileges obtained in connection with the Property;
All proceeds payable or to be payable under each policy of
insurance relating to the Property; and
All products and proceeds of the foregoing.
Notwithstanding any other provision in this Deed of Trust, the term "Property"
does not include personal effects used primarily for personal, family, or
household purposes.
Deed Of Trust—Home CHDO Funds
Cornerstone—3233 Fitzhugh Ave. Rev 08-20-14
In addition to creating a deed-of-trust lien on the Property described, Grantor also
grants to Lender a security interest in all of the above-described personal property
pursuant to and to the extent permitted by the Texas Uniform Commercial Code.
Prior Liens: None
Other Exceptions to Conveyance and Warranty:
Easements, rights-of-way, and prescriptive 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 yearn,
For value received and to secure performance oft ,e„ Obligations, Grantor conveys
the Property to Trustee in trust. Grantor warrants;and ad&es to defend the title to the
Property, subject to the Other Exceptions to Conveyance and-Warranty. On performance
of the Obligations including payment of the L n if required by the, Contract and all other
amounts secured by this Deed of Trust"4 4 performance of the,"re_quirements of the
HOME Program, this Deed of Trust will have nio,further effect, and L&ider will release it
at Grantor's expense.
Clauses'40 Covenants
A. Grantor's Obligations
Grantor agrees,to-
t. keep the Properly in;good condttiQn and repair;
2, pay a11taxes and,'assessmentsOn the Property before delinquency, and not
authorize', a, taxing entity, to transfer, its tax lien on the Property to anyone other than
Lender;
3. defend title to the Property subject to the Other Exceptions to Conveyance
and Warranty and preserve thdjen's priority as it is established in this Deed of Trust;
4. obey all laws, ordinances, and restrictive covenants applicable to the
Property;
5. maintain all insurance coverages with respect to the Property, revenues
generated by the Property, and operations on the Property that Lender reasonably requires
("Required Insurance Coverages"), issued by insurers and written on policy forms
acceptable to Lender, and deliver evidence of the Required Insurance Coverages in a
form acceptable to Lender at least 10 days before the expiration of the Required
Insurance Coverages.
Deed Of Trust—Home CHDO Funds
Cornerstone—3233 Fitzhugh Ave. Rev 08-20-14
6. keep any buildings occupied as required by the Required Insurance
Coverages;
7. obey all laws, ordinances, and restrictive covenants applicable to the
Property;
8. if the lien of this Deed of Trust is not a first lien, pay or cause to be paid
all prior lien notes pursuant to their respective terms and abide by or cause to be abided
by all prior lien instruments; and
9. notify Lender in writing of any change of address.
Grantor agrees not to-
1. do or permit anything to be done titan wtlllntipair the security of this Deed
of Trust.
B. Lender's Rights
1. Lender or Lender's mortgage servieer may appoint in wrttitg a substitute
trustee, succeeding to all rights and1`'i�spQnsibilities 6f ustee.
2. If the proceeds of the Loin at'e t1sed to pa`�' y debt secured by prior liens,
Lender is subrogated to all tie rights and,liens of#he holders <any debt so paid.
3. Notwttf standmk 'the terms—. U the Not6 #o the contrary, and unless
applicable law prohibrf ,,all pay Iments receiveel by Lender from Grantor with respect to
the Obligatrons.,9r this'I3�ed of Tryst ma
this discretion, be applied first to
amounts,,payatile.und+~r this 0�0 of Tfust and then to amounts due and payable to Lender
with respect to the Obligations,",tp be applied':,to late charges, principal, or interest in the
order Lender in its discretipn determines.
4. I ,Grantor faiN.]10 perform any of Grantor's Obligations under this Deed of
Trust, subject t6',;prior written notice and cure period, Lender may perform those
obligations and be reimbursed by Grantor on demand for any amounts so paid, including
reasonable attorney's p1'us interest on those amounts from the dates of payment at
the rate stated in the N43 ',,for matured, unpaid amounts. The amount to be reimbursed
will be secured by this Deed of Trust.
5. If there is a default on the Obligations or if Grantor fails to perform any of
Grantor's Obligations under this Deed of Trust and the default continues after any
required notice of the default and the time allowed to cure, Lender may-
a. declare any unpaid principal balance and earned interest on the
Obligations immediately due;
Deed Of Trust—Home CHDO Funds
Cornerstone—3233 Fitzhugh Ave. Rev 08-20-14
b. exercise Lender's rights with respect to rent under the Texas Property
Code as then in effect;
c. 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
d. purchase the Property at any foreclosure sale by offering the highest bid
and then have the bid credited on the Obligations.
Notwithstanding anything to the contrary, if a mbrietary event of default occurs
under the terms of any of the Loan documents, prior to exercising any remedies Lender shall
give Grantor written notice of such default. Grantor�shaIk have a period of 10 days after
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'" a rary, if a non-monetary
event of default occurs under the terms of,a!y of the Loan docu dents, prior to exercising
any remedies, Lender shall give Grantor v�rtten notice of such default. If the default is
reasonably capable of being cured within 30 days;Grantor.-shall have such period to effect a
cure prior to exercise of remedies by Lender une <theI oan documents. f the default is
such that it is not reasonably capableof being cured within 30 days, and if Grantor (a)
initiates corrective action within said periodx,and (b) diligently, continually, and in good
faith works to effect a cure as soon as pgssibfe`then Grantor shall have such additional time
as is reasonably nccessaryto-cure the default prior.to;exercise of any remedies by Lender.
In no event shall Lendex,be precluded from exer61sing 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.
Notzlees' 'glvwrk,to Grantor shalt be in writing and delivered to the address listed
above, 'or to such other.address.as,Grantor dolsagnates by written notice to Lender. Each
such notice,or other commtynicatid shall be effective on the date of receipt when sent by
U. S. Mail;:postage prepaid, by certified mail, return receipt requested or by a nationally
recognized overnight delivery service.'
6. Lendet:may remedy any default without waiving it and may waive any
default without waiving"any-prior or subsequent default.
C. Trustee's Rights and Duties
If directed 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
Deed Of Trust—Horne CHDO Funds
Cornerstone—3233 Fitzhugh Ave. Rev 08-20-14
Exceptions to Conveyance and Warranty and without representation or warranty, express
or implied, by Trustee;
3. from the proceeds of the sale, pay, in this order-
a. expenses of foreclosure, including a reasonable commission to
Trustee;
b. to Lender, the full amount of principal, interest, reasonable
attorney's fees, and other charges due and unpaid;
C. any amounts required by law to bE p6 d before payment to Grantor;
d. to Grantor, any balance, and
4. be indemnified, held harm l �, and defended by%tgpder against all costs,
expenses, and liabilities incurred by Truste�lr acting in the execution,or enforcement of
the trust created by this Deed of Trust, which includes alk,court and otex,costs, including
reasonable attorney's fees, incurred, by Trustee 44,,fle e ise of any acti*' Ipr proceeding
taken against Trustee in that capa�zty
D. General Provisions
1. If any of the Property is sold under Deed of Trust, Grantor must
immediately surreri&i possess an.,to the purchaser. If Grantor fails to do so, Grantor will
become a tenant at suff6fance offhe purchas'ef subject to an action for forcible detainer.
Recitals in any trustee"s deed conveying the Property will be presumed to
be true,Asent evidence-,to the"contrary.
3 Proceeding "under this�-F„Deed of Trust, filing suit for foreclosure, or
pursuing any'6,t, r remedy w)�,not constitute an election of remedies.
4. This lien will Amain superior to liens later created even if the time of
payment of all or part 4�the Obligations is extended or part of the Property is released,
unless a subordination agreement is executed by the Lender.
5. If any portion of the Obligations 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
from condemnation of all or part of the Property, from private sale in lieu of
condemnation, and from damages caused by public works or construction on or near the
Property. After deducting any expenses incurred, including reasonable attorney's fees and
court and other costs, Lender will either release any remaining amounts to Grantor or
Deed Of Trust—Home CHDO Funds
Cornerstone—3233 Fitzhugh Ave. Rev 08-20-14
apply such amounts to reduce the Obligations and any excess proceeds shall be paid to
Grantor. 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 known threatened proceedings for condemnation of all or part of the Property.
Notwithstanding the above, in the event of any fire or other casualty to the Property
or eminent domain proceedings resulting in condemnation of the Property or any part
thereof, Grantor shall have the right to rebuild the Property, and to use all available
insurance or condemnation proceeds therefore, provided that(a) such proceeds are sufficient
to keep the Obligations in balance and rebuild the Property in a manner that provides
adequate security to Lender for repayment or performance,of the Obligations or if such
proceeds are insufficient then Grantor shall have funded arty deficiency, (b) subject to the
rights of senior lien holders, Lender shall have the r)ghtIi;approve plans and specifications
for any major rebuilding and the right to approve disbursements of insurance or
condemnation proceeds for rebuilding under a capstruction escrow or similar arrangement,
and (c) no material default then exists under.*&Loan documents' ther than attributable to
casualty or condemnation. If the casualty or condemnation affects only.part of the Property
and total rebuilding is infeasible, then proceeds,;may bu,,used for partial rebuilding and
partial repayment of the Obligations in a manner that Prgvides adequate seenrity to Lender
for repayment of the remaining balance,of the Obligntfons, and any excess proceeds shall
be paid to Grantor.
7. Grantor assigns to Lender absolutely,not only�,as,collateral, all present and
future rent and income'and recetpYs, froth the Property. Grantor may as Lender's
licensee collect rent"--and other't come and. 66eipts as Long as Grantor is not in default
with respect to the Obligation or'�this Deed of Trust. Subject to the terms of the Loan
documents, Grantor will" ply,`41t rent and other income and receipts to payment of the
Obligatiozrs;anA petrfot•mance„of this'N3 d,of Trust, but if the rent and other income and
receipts .exceed the amount dtte with respect to the Obligations and the Deed of Trust,
Grantor'may retain the excess.' If,Grantor defaults in payment or performance of the
Obligations;or performance of this";Deed of Trust, subject to the rights of senior lien
holders, Lender may terminate;Grantor'ss license to collect rent and other income and then
as Grantor's agdqtl may rent the Property and collect all rent and other income and
receipts. Lender neither has,'rior assumes any obligations as lessor or landlord with
respect to any occupant,',,6f 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 as required by
the Texas Property Code then in effect. 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.
8. Interest on the debt secured by this Deed of Trust will not exceed the
maximum 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 of the debt or, if that has been paid, refunded. On any
Deed Of Trust—Home CHDO Funds
Cornerstone—3233 Fitzhugh Ave. Rev 08-20-14
acceleration or required or permitted prepayment, any excess interest will be canceled
automatically as of the acceleration or prepayment or, if already 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 nop, and pronouns include the
plural.
11. The term Note includes all extensions; mbdigations, and renewals of the
Note and all amounts secured by this Deed of jyu t.
12. Grantor agrees to (a) keep 4Grantor's address, or such other place as
Lender may approve, accounts and records reflecting th;,;operation 6$Oe Property and
copies of all written contracts, leases, and other'jil,stro,Men is that affect thy,Property; (b)
prepare financial accounting r( dg�Jri compliance with generally accepted accounting
principles consistently applied; and,;,(c) at,Lender's req�lest on reasonable notice from
time to time, permit Lender toe nure Batt make eppies of such books, records,
>>
contracts, leases, and other instruments at any reasonable ttrne
13. Grantor agrees tb,deliver to Uhler, at Lender's request from time to time,
internally prepared ftn4ricial stajements 6t-'Grantor and any guarantor of the Note
prepared in accordance with; generally accepted accounting principles consistently
applied,,,tn;detail-"xeas9nably sasfactdry to Lendx and certified to be materially true and
correct i the chief fipanctal of icer of'Grantor or its certified public accountant, as
applicable
14. If Lender orders, an appraisal of the Property while a default exists or to
comply with leg'4,rcquiremeiii affecting Lender, Grantor, at Lender's request, agrees to
reimburse Lender for-the red onable cost of any such appraisal. If Grantor fails to
reimburse Lender for any such appraisal within 20 days of Lender's written request, that
failure is a default under`thi's Deed of Trust.
15. Grantor agrees to allow Lender or Lender's agents to enter the Property
during regular business hours upon at least 48 hours prior notice and inspect it and any
personal property in which Lender is granted a security interest by this Deed of Trust.
16. Grantor may not sell, transfer, or otherwise dispose of any Property,
whether voluntarily or by operation of law, except for condemnation or to obtain utility
easements, without the prior written consent of Lender. If granted, consent may be
conditioned upon (a) the grantee's integrity, reputation, character, creditworthiness, and
Deed Of Trust—Home CHDO Funds
Cornerstone—3233 Fitzhugh Ave. Rev 08-20-14
management ability being satisfactory to Lender; and (b) the grantee's executing, before
such sale, transfer, or other disposition, a written assumption agreement containing any
terms Lender may reasonably require, such as a principal pay down on the Obligations,
an increase in the rate of interest payable with respect to the Obligations, a transfer fee, or
any other modification of the Note, this Deed of Trust, or any other instruments
evidencing or securing the Obligations.
Grantor may not cause or permit any Property to be encumbered by any liens,
security interests, or encumbrances other than the liens securing the Obligation and the
liens securing ad valorem taxes not yet due and payable and the Permitted Exceptions
without the prior written consent of Lender. If granted, cor�'ent may be conditioned upon
Grantor's executing, before granting such lien, a written modification agreement
containing any terms Lender may require, such, as" _,.principal pay down on the
Obligations, an increase in the rate of interest payable with,respect to the Obligations, an
approval fee, or any other modification of the�Note, this Deed of Trust, or any other
instruments evidencing or securing the Obligations.
Grantor may not grant any lien, se�cucity interest, or other;.encumbrance (a
"Subordinate Instrument") covering the Properfy.fhut is subordinate to tht liens created
by this Deed of Trust without the'pr or written consentof Lender
If granted, consent for loans and dacuments be conditioned upon the
Subordinate Instrument's containing express covenants to the"effect that-
a. the Subordinate Instrumentrs unconditionally subordinate to this Deed of
Trust;
b if any action is.instituted`to:foreclose or otherwise enforce the Subordinate
Instrurn6 t, no action may be,t4ken that would terminate any occupancy or
tenancy without the,prior written consent of Lender, and that consent, if
granted, maybe conditioned in any manner Lender determines;
C. rents,, if collected by or for the holder of the Subordinate Instrument, will
be applied first to the payment of the Obligations then due and to expenses
incurred;"ir th¢ ownership, operation, and maintenance of the Property in
any order`Lender may determine, before being applied to any indebtedness
secured by the Subordinate Instrument;
d. written notice of default under the Subordinate Instrument and written
notice of the commencement of any action to foreclose or otherwise
enforce the Subordinate Instrument must be given to Lender concurrently
with or immediately after the occurrence of any such default or
commencement; and
Deed Of Trust—Home CHDO Funds
Cornerstone—3233 Fitzhugh Ave. Rev 08-20-14
e. in the event of the bankruptcy of Grantor, all amounts due on or with
respect to the Obligations and this Deed of Trust will be payable in full
before any payments on the indebtedness secured by the Subordinate
Instrument.
Grantor may not cause or permit any of the following events to occur without the
prior written consent of Lender: if Grantor is (a) a corporation, the dissolution of the
corporation or the sale, pledge, encumbrance, or assignment of any shares of its stock; (b)
a limited liability company, the dissolution of the company or the sale, pledge,
encumbrance, or assignment of any of its membership interests, other than an assignment
to a senior lien holder or to the Investor Member; (c) a;,general partnership or joint
venture, the dissolution of the partnership or venture or tibe sale, pledge, encumbrance, or
assignment of any of its partnership or joint venture,rnterqsts, or the withdrawal from or
admission into it of any general partner or joint yetiturer;`or-(d) a limited partnership, (1)
the dissolution of the partnership, (2)the sale, pledge, encumbrance, or assignment of any
of its general partnership interests, or the WUtthdrawal from or admission into it of any
general partner, or (3) except for a limited Sartnership interest in a low income housing
project, the withdrawal from or admission hit it of arid,controlling',Jimited partner or
partners. If granted, consent may, be conditi6* 4' -n (a) the integf icy, reputation,
character, creditworthiness, and rriafiagement ability of the person succeeding to the
ownership interest in Grantor (or sc,urity;interest in-,Such ownership) being reasonably
satisfactory to Lender; and (b)the eX6cytion before such"invent, by the person succeeding
to the interest of Grantor in the Property or ownership interest in Grantor (or security
f
interest in such ownership) of a written i o6difieati"„n or assumption agreement containing
such terms as Lender may reasonably require; such as' a principal pay down on the
Obligations, an increasein the rate of interest-;payable with respect to the Obligations, a
transfer fee, ox,any other modaficatton,-of thetote, this Deed of Trust, or any other
instruments evtdencin-g or seuririg the dbligatioris.
'I"7, ; Grantor "agrees not to grant any future lien or security interest in the
Property or to permit any f#ure Jam%gr encumbrance to be recorded or any existing or
future claim to otherwise become an encumbrance against the Property. If an involuntary
encumbrance is 'Filed against,Jhe Property, Grantor agrees, within 30 days of actual
notice, to either reft" the tij�voluntary encumbrance or insure against it or provide a
bond acceptable to Lender against the involuntary encumbrance.
18. This Deed of Trust binds, benefits, and may be enforced by the successors
in interest of all parties.
19. If Grantor and Borrower are not the same person, the term Grantor
includes Borrower.
20. Except as may be specifically stated in this Deed of Trust or the Note,
Grantor and each surety, endorser, and guarantor of the Obligations waive all demand for
Deed Of Trust—Home CHDO Funds
Cornerstone—3233 Fitzhugh Ave. Rev 08-20-14
payment, presentation for payment, notice of intention to accelerate maturity, notice of
acceleration of maturity, protest, and notice of protest,to the extent permitted by law.
21. 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 for enforcement.
22. If any provision of this Deed of Trust is determined to be invalid or
unenforceable, the validity or enforceability of any other provision will not be affected.
23. The term Lender includes any mortgage sery cer for Lender.
24. Grantor represents that this Deed of Test,and the Note are given for the
following purposes:
Grantor expressly acknowledges a yendor's lien on the'Property as security for
the Note secured by this Deed of 'Trust, which represents;funds advanced by
Lender at Grantor's request. This Deed of Trust does not waive,.1te vendor's lien,
and the two liens and the rights create( t is,"Deed of Trust`'are cumulative.
Lender may elect to enforc'r'o%tkzer of the lie0 'without waiving the other or may
enforce both.
E. Construction Luau Mortgage
1. This Deed of Trust is a "construction mortgage" within the meaning of
Section 9.334 of the"Texas Business and"'Commerce Code. The liens and security
interests created and granted by"this",Deed of Trust secure an obligation incurred for the
construetion or rehabtlitation of improve'taents on land.
Grantor agrees to comply with the terms, covenants and conditions of City
Secretary'Contract No. 45699 bet pen Grantor and Lender (the "Contract") which
requires the Note and this Deed of Trust. All advances made by Lender under the
Contract will be indebtedness Of Grantor secured by the liens created by this Deed of
Trust, and such advances are"conditioned as provided in the Contract.
3. All amounts disbursed by Lender before completion of the improvements
to protect the security of this Deed of Trust up to the principal amount of the Note will be
treated as disbursements under the Contract. All such amounts will bear interest from the
date of disbursement at the rate stated in the Note, unless collections from Grantor of
interest at that rate would be contrary to applicable law, in which event such amounts will
bear interest at the rate stated in the Note for matured, unpaid amounts and will be
payable on notice from Lender to Grantor requesting payment.
4. From time to time as Lender deems reasonably necessary to protect
Lender's interests, Grantor will, on request of Lender, execute and deliver to Lender, in
Deed Of Trust—Home CHDO Funds
Cornerstone—3233 Fitzhugh Ave. Rev 08-20-14
such form as Lender directs but subject to the rights of any senior lien holders,
assignments of any and all rights or claims that relate to the construction of
improvements on the Property.
5. In case of breach by Grantor of the terms, covenants and conditions of the
Contract, Lender, at its option, subject to applicable notice, grace and cure periods, with
or without entry on the Property, may (a) invoke any of the rights or remedies provided in
the Contract, (b) accelerate the amounts secured by this Deed of Trust and invoke the
remedies provided in this Deed of Trust, or(c) do both.
F. THIS CONVEYANCE IS MADE AND ACCEPTED SUBJECT TO THE
FOLLOWING CONDITIONS AND RESTRICTION'-ii`
The Note secured by this Deed of Trust is t e Note required in the Contract
between Grantor and Lender and has been 'executed and:delivered in accordance
with its terms. The funds advanced by Lender are HOML",* s and the Contract
requires that the Required Improvemeuts constructed with the IIOME funds on the
Property (the "house") must be sold to a HOME Eligible Buyer iii-Accordance with
the HOME Regulations, all as more particula>iyescribed in the Contract. The
Obligations described in the Contract evidenced'tiy the Note and secured by this
Deed of Trust will be in default if-tie hose is not soli ;;to a HOME Eligible Buyer as
more particularly described in the C"ontraet, >,
This Deed of Tirust alias also been executed ;and delivered pursuant to the
terms of the Contract. Grantor agrees;ta,perform 'each and every obligation set
forth therein and will'of permit a defauff,19 occur thereunder. Any default in the
performance of Grantor's o gations under the terms of the Contract or the
HOME Pirogra'm or HOME;Itegutahons,shall'',be deemed a default in the terms of
the Note,and Lender may invoke any remedies provided herein for default.
[SIGNATURE PAGES IMMEDIATELY FOLLOW]
Deed Of Trust—Home CHDO Funds
Cornerstone—3233 Fitzhugh Ave. Rev 08-20-14
THE CONTRACT, 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.
CORNERSTONE ASSISTANCE NETWORK
HOUSING DEVELOPMENT CORPORATION,
a Texas nonprofit corporation
By:
Phillip Posey ,Executive Director
STATE OF TEXAS §
COUNTY OF TARRANT ,
This instrument was acknow ed before me oi , ;, , 2014 by
Phillip Posey, the Execu tive Directot� of C:6m, estone Assistance Network Housing
Development Corporation, a Texas nonprgfit corporatian,.on behalf of such corporation.
Public, State of Texas
Notary
AFTER RECORDING RETURN TO
City of Fort Worth
City Attorney's Office
Attention: Vicki S. Gauske '
1000 Throckmorton Street
Fort Worth, Texas 76102
Deed Of Trust—Home CHDO Funds
Cornerstone—3233 Fitzhugh Ave. Rev 08-20-14
PROMISSORY NOTE
HOME CHDO Funds
Date: June 30, 2014
Borrower: Cornerstone Assistance Network Housing Development Corporation,
a Texas non-profit corporation
Borrower's Mailing Address:
3500 Noble Ave., Fort Worth, Tarrant County, TX 76111
Lender: City of Fort Worth, Texas, a Texas munic,Ot<corporation
Place for Payment:
C/O Director of Housing and Econ6 n�c D6',e4opment Department
1000 Throckmorton St.
Fort Worth, Tarrant County,,;[' 76102
or at any other place that LeW&may designate in writing
Principal Amount: $139,766.00,,,.
Loan Authority:
The loan evidenced by this Note is being,made pursuant to the HOME Investment
Partnerships Pro gram„authorizaynder '4 6-11 of the Cfanston-Gonzalez National
Affordable Iqus�ingEt,of 1990, ;as arnef�cled, 42 USA 12701 et seq. ("NOME
Program' and the HOME Investm�rtf Partnorsh ps Program Final Rule, as
amended, 24 CPR Part 92"1&seq. (the;`51 TOME Regulations") with HOME funds.
Annual Interest Ra,te: hero Percent(0%)
Maturit$;,Date: Jdne 29. 2016
Annual Interest Rate on Matured,i)i --paid Amounts: Six Percent(6%)
Terms of Payment(principal, nd interest):
The Principal Amount,,and accrued, unpaid interest will be payable in full on the
Maturity Date under the�ferihs and conditions as provided in the Contract. Any payment
will be applied first to accrued interest and the remainder to the reduction of the Principal
Amount.
Promissory Note—Home CHDO Funds
Cornerstone—3233 Fitzhugh Ave Rev 08-20-14
This Note is the Note required in City Secretary Contract No. 45699 between Borrower
and Lender and has been executed and delivered in accordance with that contract (the
"Contract"). The funds advanced by Lender are HOME funds and the Contract requires
that the Required Improvements constructed with the HOME funds on the Property (the
"house"), must be sold to a HOME Eligible Buyer in accordance with the HOME
Regulations, all as more particularly described in the Contract. The Loan evidenced by
this Note will be in default if the house is not sold tqa,14OME Eligible Buyer and in the
event of such default, Lender may invoke any remedies-:for default provided in the
Contract or the Deed of Trust.
Security for Payment:
This Note is secured by a Deed of Trulgt,of even,date frorii Borrower to Vicki S. Ganske
or Leann D. Guzman,'Trustee,which covers,the following real property:
Lot.IZ,,Block 5,Engle 0,64-Heights "Addition, an Addition to the City of Fort
Worth, Tarrant County, Texas, 'according to the Plat recorded in Volume 310,
Page 67, Plat Records, Tarrant County',Jexas,
commonly known as:3233 Fitzhugh Ave., Fort Worth, TX 76105.
Other Security for Payment: As set forth in the Contract.
Borrower promises to pay to the order of Lender the Principal Amount under the
terms and conditions described in the Contract. 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. After maturity, Borrower promises to pay any unpaid principal balance
plus interest at the Annual Interest Rate on Matured, Unpaid Amounts.
If Borrower 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, earned interest, and any other amounts owed on the Note
Promissory Note—Home CHDO Funds
Cornerstone—3233 Fitzhugh Ave Rev 08-20-14
immediately due. Borrower and each surety, endorser, and guarantor waive all demand
for payment, presentation for payment, notice of intention to accelerate maturity, notice
of acceleration of maturity, protest, and notice of protest, to the extent permitted by law.
Notwithstanding anything to the contrary, if a monetary event of default occurs
under the terms of any of the Loan documents, prior to exercising any remedies Lender shall
give Borrower written notice of such default. Borrower shall have a period of 10 business
days after 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 contrary, if a
non-monetary event of default occurs under the terms of any of the Loan documents, prior
to exercising any remedies, Lender shall give Borrower written notice of such default. If the
default is reasonably capable of being cured within 30iys, Borrower shall have such
period to effect a cure prior to exercise of remedies by Liner under the Loan documents. If
the default is such that it is not reasonably capable abeIng cured within 30 days, and if
ff
Borrower (a) initiates corrective action within sard`period, and_(b) diligently, continually,
and in good faith works to effect a cure as soon '"possible, th,&67Borrower shall have such
additional time as is reasonably necessaryo'cure the default"prior to exercise of any
remedies by Lender. In no event shall Lend' be precluded from exe�pising remedies if its
security becomes or is about to become mate'J' I �eop riized by arry failure to cure a
default or the default is not cured whin 180 days notice of de , lt is given.
Notices given to Borrower shall be i� writing anrf delivered to the addresses listed
above, or to such other address as Bo'iirgwer destg4ates by written notice to Lender. Each
such notice or other cgrgi p cation shall, be efljW t'�e upon r,". ceipt when sent by U. S.
Mail, postage prepard aid bye�xtified mat , return recent,requested; or by a nationally
recognized overnighf+ielivery sdoice.
Boi we, r,also promises to p ,y,,,reasoi *le attorney's fees and court and other
costs if this�IVote�is placed tdlhe hands 6£an dttorney to collect or enforce the Note.
These expenses will bear interest;from the dh e"of advance at the Annual Interest Rate on
Matured,:t7npaid Amounts.; Borrovirr will pay Lender these expenses and interest on
demand aft be;Place for Payment. T�i��se expenses and interest will become part of the
debt evidenced9y,the Note an`d,will be secured by any security for payment.
Borrower may,prepay t)is Note at any time before the Maturity Date without
penalty so long as the,House;located on the Property constructed with the HOME funds is
sold to a HOME Eligible-J$tiyer in accordance with the HOME Program and the HOME
Regulations and the other terms and conditions of the Contract.
Interest on the debt evidenced by this Note will not exceed the maximum rate or
amount of nonusurious 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 permitted prepayment, any excess interest will be canceled
automatically as of the acceleration or prepayment or, if the excess interest has already
been paid, credited on the Principal Amount or, if the Principal Amount has been paid,
Promissory Note—Home CHDO Funds
Cornerstone—3233 Fitzhugh Ave Rev 08-20-14
refunded. This provision overrides any conflicting provisions in this Note and all other
instruments concerning the debt.
Each Borrower is responsible for all obligations represented by this Note.
When the context requires, singular nouns and pronouns include the plural.
A default exists under this Note if(1) (a) Borrower or (b) any other person liable
on any part of this Note (an "Other Obligated Party") fails to timely pay or perform any
obligation or covenant in any written agreement between Lender and Borrower or such
Other Obligated Party; (2) any warranty, covenant, or representation in this Note or in
any other written agreement between Lender and Borrowef,;or any Other Obligated Party
is materially false when made; (3) a 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 b4nkruptcy or`,",insolvency proceeding is
commenced by Borrower or an Other Obligated Party; (6) (a) a:,b4nkruptcy or insolvency
proceeding is commenced against Borrovt?ef,or an Other Obligated..Party and (b) the
proceeding continues without dismissal foi-` 90 days,;,the party "against whom the
proceeding is commenced admits the material allegations of the petition="0ainst it, or an
order for relief is entered; (7) any of,the following'paittes is dissolved, begins to wind up
its affairs, is authorized to disso[ve..6r, wind up its`affairs by its governing body or
persons, or any event occurs or condition ekists;that perriiits the dissolution or winding up
of the affairs of any of the,following'p#rties. (i}:.B.orrowr; ,pr (ii) an Other Obligated
Party; and (S) any Coklatera[,Security is`rnaterially,unpaired b' loss, theft, damage, levy
and execution, issuance of an official writ'or ar"der of seizure, or destruction, unless it is
promptly replaced with irisuranoe"proceeds,'collateral security of like kind and quality or
restored to its former condition.
The execution"and delivery of this Note are required under the Contract.
If ariy,provision of ibis Note conflicts with any provision of the Contract, the
Deed of Trust",
or any other`document:evidencing the same transaction between Lender
and Borrower, theparovisions of the Contract will govern to the extent of the conflict.
This Note wilt"be,con strued under the laws of the state of Texas without regard to
choice-of-law rules of any;jurisdiction.
[SIGNATURE PAGES IMMEDIATELY FOLLOW]
Promissory Note—Home CHDO Funds
Cornerstone—323') Fitzhugh Ave Rev 08-20-14
THE CONTRACT AND THE NOTE 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.
CORNERSTONE ASSISTANCE NETWORK
HOUSING DE, .OPMENT CORPORATION
Phillip Posey, Executive Director
Promissory Note—Home CHDO Funds
Cornerstone—3233 Fitzhugh Ave Rev 08-20-14
EXHIBIT "F"
REIMBURSEMENT FORMS
CORNERSTONE ASSISTANCE NETWORK HOUSING DEVELOPMENT CORP.
3233 FITZHUGH AVE
CHDO Single Family Contract—Exhibit F—Reimbursement Forms
Cornerstone-3233 Fitzhugh Ave. Rev 08-20-14
EXHIBIT"F"
REIMBURSEMENT FORMS
CORNERSTONE ASSISTANCE NETWORK HOUSING DEVELOPMENT CORP.
3233 FITZHUGH AVE.
Attachment I
INVOICE
CHDO: Cornerstone Assistance Housing Development Corp.
Project Site Address: 3233 Fitzhugh Ave
Period of Service:
Progra'm' Amdunt
This,,Invoice CUtYltlllatiY.4.1t Date
CHDO Certification: I certify that the costs incurred are valid and consistent with
the terms and conditions of the contract between City and CHDO By signing
this invoice, I certify that to the best of my knowledge and belief the data
included in this report, Exhibit F, and in all backup documentation is true and
accurate. It is acknowledged that the provision of false information could leave
the certifying official subject to the penalties of federal, state, and local law.
Signature and Date:
Name:
Title:
CHDO Single Family Contract—Exhibit F—HOME Project Compliance Report(Single Family)
Cornerstone-3233 Fitzhugh Ave.
Rev 08-20-14
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EXHIBIT "G"
HOME PROJECT COMPLIANCE REPORT (Single Family)
CORNERSTONE ASSISTANCE NETWORK HOUSING DEVELOPMENT CORP.
3233 FITZHUGH AVE.
CHDO Single Family Contract—Exhibit G—Home Project Compliance Report(Single Family)
Cornerstone-3233 Fitzhugh Ave. Rev 08-20-14
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EXHIBIT "H"
DAVIS BACON REQUIREMENTS—FEDERAL LABOR STANDARDS PROVISIONS
CORNERSTONE ASSISTANCE NETWORK HOUSING DEVELOPMENT CORP.
3233 FITZHUGH AVE.
Not Applicable
CHDO Single Family Contract—Exhibit H—Davis Bacon Requirements/Federal Labor Standards Provisions
Cornerstone-3233 Fitzhugh Ave. Rev 08-20-14
EXHIBIT "I"
SECTION 3 REPORTING FORMS
CORNERSTONE ASSISTANCE NETWORK DEVELOPMENT CORP.
3233 FITZHUGH AVE.
Section 3 Summary Report u_s.Deparbnot or Hmsing oM5 ApPM1NM MM2 IJM
Economic op es for and thtran Dmiopmerd (exp.it MnD)
Lour—and Very Low Inccrne Persons Offte OC Fair
Andes Oppaftunq
t. A fib dtr tliR .47a --1
x�,nt
t
r�
P.V-
Pwt
I- =0 Train "CoMen?is B,C and F am rnan bell_Ini2ide New Ffles In E
1Sm!®d Nurias d tkr 9i d Ayapb Y d"tetii
�CrdWY Hw MAw H¢®iud r. dmtlH�dHr Hha r.Y�nY .. rxdnr
Bac 3 �.� Y rai PFD
Techniclam
conshucum by Trade(LW)
Trade
Trade
Trade
Trade
Trade
fiXher
Tt w
car 3- -H a s- e.eX*d mar
I: r A S HOWE %:C t riag.'s
2- 3GLmt a 9-HLWe t0-Gear HzrYep
C.Yiodddrtss6m f.
�p 5 a2 41dt7 t 1!
Hd 34 LfM Va
CHDO Single Family Contract—Exhibit I—Section 3 Reporting Forms
Cornerstone-3233 Fitzhugh Ave. Rev 08-20-14
EXHIBIT "I"
SECTION 3 REPORTING FORMS
CORNERSTONE ASSISTANCE NETWORK DEVELOPMENT CORP.
3233 FITZHUGH AVE.
Partin_ Ccubacl>s Award a
1. cafflinicam cvaam:
A.Tamil dory amuMof a[as h carded on the pied i
B.TdW raTm ntaf axtam awmden io Sedan 3 bmkr s i
C.Pence at the f!,ft dotes amfent dud was mowded to Seen 3 uses %
M Tali number at Sew 3 m Ket*q mntrarss
2. c:umtad§
A.Taal doh asnud an natconauctlm cmtrad!s awarded an die prujacbImEftfly i
B:Toed dMffa=Ur#0ffVXtCnn2=b=0on1r3=MWRPd as SeMm 3 esatnea i
C.Pecc(age of the total doh arrowd dad sos awarded to Section 3 bwkt %
n.Total marMer of Secbam 3austri won teQtNnQ nircorstuclan contacts
Part®_SuIninaly
Inclicale Ste charts matte�c6rect tehe erfpbyment arts other ec ono0c:opporki s gener�d by Hta} for horsing
arm comm develnpmerd pmg=to the gfea�#extent feaillble,$IwJia tcAn ate steer lowklcrarne per6dw padAarlarty once who
are m3plents of garemment assistance IN houety.(Cbeft an that apply.)
Attempted to resarl� residerr�taunugre bleat aoiueftictlg rrheua. P���l �the pm)ect site.
cordrarts W m C1e caTf*mahlty drganlzatldns and ptdic a pnluate secedes aperattrlg wtidn 111e area(br
noraftefiopol�r molly)m tir>9u3h 81e n 3 wmered program ar Pm)erd is Ias�a9;fr strrNlas metiro�.
Pa �d m a HuD pagran ta'• program rdlkNh promotes file tr�ntuj or�roynleirt of uer�rnl3 resxierlts_
_-Pa m a HtlD program er other program hthhth promotes the awed otcorl�atts tS1 txosir�ss cau:enls Wrists meet the
deNNnm of Section 3 btless eavnaeme.
_Culadta i YaLgibund i fogcarts admintdeted In Me meftupoltan area in MM be Section 3 covered pmJect Is&cabed
Otoer:descatbe bexow.
Public Asrthts collection M Intbirmallion S estimated Yi average 2 houm per mfipww,nckioling the line for mswc1lons,
seanobing ed data sources,gatbering and tree data rimed,and canTletlrrg and leviemXng the coieedtnn of inflomhadaL
T7Ns agency may not collect ilk trebrTnatIcal,am you we rot"red to cornplelee CNS tom4 ur tess ft displays a currently vaild OAM
marilef.
Section 3 or am Mcamil lg asst taban Development Art of 1968,as a tent ,12 u_s_C.17(11 u,manate6 that the Departn er®aes Iii
tit and other econaft dppo to flim generated by Its hmming and ccmmmIly devellopmerA astastance p ogame ate directeIl
ivaant lore-and weryrow"mm pasafw,parlMalicady Chose who are recIplents at government assistance housing.The reglaallons are
Traund at 24 CFR Pat 135.The InIllonraffon stn be steed by the Departnad b mcadbr taogr'art recipients'compiianoe with Section 3.to
amem the resift of the Deparbnent's aloft to meet be sta"ob)ecWu or Section 3.m prepare repart6 to Congress,and by
recipient 36 sff-rumMang tool.The d�Is wed too a database anal wh be analyzed and The oD i r ar Information
inveN�s recipient&recetvtrg Federal Aran=assistaree for housing and commlinfly develolornent progrrm6 covered by Section 3. The
irramabon 141 be collected annually to assist HUD to meting its repottng sequiremefU solder section W8(e)(6)or Me Fab,HmWg Act
ail Sin 9116 of the HCDA of 1992.An assurance ufcanWenliality Is nod applicable t3 W s Poem_The PAvay Act of 1974 and OI
r A-108 are not apple The reportbdg regWSernerrl6 do sort cord senatnue questions, Dala t term :personal I
i fonrnalxon Is nod tttufed.
ev 3.e z em.M aatttt rtaicar
R.f yt rfR M
CHDO Single Family Contract—Exhibit I—Section 3 Reporting Forms
Cornerstone-3233 Fitzhugh Ave. Rev 08-20-14
EXHIBIT "I"
SECTION 3 REPORTING FORMS
CORNERSTONE ASSISTANCE NETWORK DEVELOPMENT CORP.
3233 FITZHUGH AVE.
Fnl1n ma i-fmaz.sectim 3 wary fmpoft Bmia mic ow"Writu"For irya-and way Low4lcaffu PKMM-
knialinadillonac
This Ideal Is m be used b+effort 8_ PrognifinCook,Erfiertheapprapdadeproilrearicade as opted at
accomptshrnerift MONOW emplifilment and aaher ecarimmic me tfdbm of ere page-
apparlifffilm
prwAded to low,and vaY under 9_ Prograrn hisont-r. name of HUD Prowain
3 of the Housing and Unbar Draftiorent Add 19E&The aaQt Me'program Cad'In mother 9.
3 rethdalBms apply to any ptuhsc and.
prownswathallecepm(1}dra rwem t b pat t:Empnae'ad and 7ta8rrq OppodurJbm
aedwo 5 or se U-&Howav Ad:of 1937:C.T)operating assweence Cnhaa A:Cordeens wkmJW caleanrtes.Prollesslawals ae
pwismat to Section 9 or the U_S_Ho sera Art or 1937:or(31 ddbud a people who have special eaAreT of an occiguallon(£e.
rrwdemtramn w. p rsnat b aedtm to d UM U.8. Ad archleds .aid canpras
d 1937 and b d hoWrp wad worlvant(y Forcorwhiclim paidlost,td each bade and provide
asstduno in irsawas as ,a0a expended Mr:i t)haa8rg data Is columns 8 through F for each trade where persona were
and shaderent of The catty d"Oltser includes such as
hazarffik t g :m(3)dherpubte construdkin srsvte .
pa and to and mckasasd#rOP.800 tbhaaa8:pladiafayFit"Enter mother dtrR to
awardedn aErAeC§Dn NO the adtft. each caledory ulwodiaa kLntged In Collision Ali connection with
Fmm FRJUIEMM haw Miee parts,aartll ere be ebi As, was award.fits,the refers b a person who Is not on the c
as pmamnn catered try Sedan 3.Pat t rebates m or redperrs pairdl ter employment at the erne or semen for lie
and The recipged has sae doom m determine numenal Section 3 coonred awed or at the ttne of rem"d»3 armed
htnbarg boats etfc m the howls or we nmrber of heart r�
worked by new ewes lcolusmis 8,D,E and F£Pat 0 ofthe foram Colons M Plagislay,Fle"Ennbse eamther of 8esfbr 3 new
relates to comirsoffisilt,and Part ill sarnmairtfies recaperibr aids to ones Raea:h C&Wy ai'verloss Welatilled In Ctluna A In
con"am se6'orh 3 ramrztlsn drib ads aael.Section 3 new haerefers to a Section 3
Pxciplents or contraction;malect to aedlon 3 rentalrements must resident who is not on Me corbodors or reciptnrs payroll for
maintain appropbte docirmardation to einsiallsh that HUD anncoll ernploymerd at Be less,of selection AxIe Sit 3 covered award w
assns for houmbq awl conamadly denelopmerd programs were a flat as of M.."of Srffin 3 daviced a.r.-.
dftcted b�a Key Ww-bearre persons.'Aredpientaf Cohan lk Enhorthe percentage,ofaff the staff loads doer fifes
Second 3 rained sal Suluest are spy of this report to lseder,3 )in morecson am this award.
HUD HeadiddrilEel,imtce d Far and EWA OPPUtWft- Colas E Ester the Wdeatafilie or We mil stay Mass,dated br
"lilome the pommen providing a2s&Mm requires an annual Selman 3 and tratn�(ndudngrim ties)connected
psh+maee re ddw Section 3 report s b be at ere with the award. hgla9 Aapatdne dal hdirne
same the peopan per's room)is sr thane a
around performan¢repod is at rued.Oft Section 3 report h to M Colnam lF F Wfil EntlertherarctleratSection3i
asbminedby ,Janay to ad,ffthepcitie[3errhbetwe Docereser3t. residents Out were taned'n connection with Mw aen•d
within 19 days of project ciasqpleffifim.OAV pFhm jilaclolonts,its Pat a:Cadract 4pport ntles
m rpmrt ion ltllD.Thor soma fawtlnd L b pooh l:Construction Corrtra[rs
acconsifilliffituravills d as and ffiNr Section 3 co wnd AwmA:Eotr the aal dishwarrount of all oslha:h swardedon the
aed
HUD Ftefd Claim Enter the Field Office rape. Own 8:Enter the dal dollar arrant or cmtra:b coomichad wish Oft
1. Etta tne nave and address of the bat were waded to Section 3 manewsm
rcirnlmtg Oft nport flan C:Enter the percerdage of Me irk dollar amoan of cordracts
2. Fetal kkmdbmftm Eder Me ramnerga ammo no Me connected AM Oft awarded to Sefton 3
award Am(wM d®hes).TM award misil be a part, Am D:Rder One annher of eactian 3 bizurfiesses rec&ng EMBOL
cooperative apeemeat ermn frail.. Rook 2:NonoCaubucbm Contracts
3. DORM Amount of :Ember Me airman,rounded is the Am A:Enter the ffiai dole wascurt of as sniads assented on Me
neared dollar,recehed by Oat
4 a ri Corded PersmWlFftone,FJier the naffi`and telephone mamber ern 8:Elder the aai dwar arrant or contracts connected with the
ate person with kwadedifile,tithe ansard and Me recVlents poled awarded b Section 3
of Section 3. darn C:Ener Me parantage of sat tamp dollar ararut of
6. Reporlanit Perlid:Indicate Me are perkid(months and year) Conn ed waft thh pratedlivoltram awarded to seraon 3
M report mass. I�D:Enter the amber d 3 iecdOng
awards-
7. t Report>mim t EtYerae ddb Party d —> tf-e anaffiy
erz(1)copy of Oath repaint to the HUD Headquarters 68m of
Fair Harsttg and Equal ,at the same tine the The Seaemry nary estahisn more cat iogs higiver or icier t an 00 percent
peeaammQ report h wuhrrdbed to ere prowarn of cit The Section 3 tithe melon for the its mere owes of the S'eaetay's mach t
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Ro 24 CFtt 135
CHDO Single Family Contract—Exhibit I—Section 3 Reporting Forms
Cornerstone-3233 Fitzhugh Ave. Rev 08-20-14
EXHIBIT "J"
STANDARDS OF COMPLETE DOCUMENTATION
CORNERSTONE ASSISTANCE NETWORK HOUSING DEVELOPMENT CORP.
3233 FITZHUGH AVE.
FoT OT .
Standard of Documentation for Reimbursement of Development Costs
Cost Type Documentation Standard
Acquisition of Vacant Lots • Notice to Seller(date must be on or before the date of options agreement
or sales contract and signed by the buyer and seller)
• Recorded Deed of Trust
• Purchase Agreement w/Required HUD language
• Wster Settlement Statement
• Appraisal or other document used to determine purchase price
• Proof of Payment(bank statement/cancelted check)
Soft Costs(Architect,Engineer, • Invoice
Landscaping Surveys,Appraisals, - Invoice should include:
Environmental,Legal Fees,Other date;
Consultants,Etc) company's letterhead;
address for which service is provided;
description of service(s)and item(s);
amount for itemized services;and
total amount
• Proof of Payment(ie_bank statement or cancelled check)
• If applicable,fully executed contract/service agreements and applicable
amendments
- Provide printout from www_sam. ov verifying
contractor/subcontractor is not listed on the debarred and
suspension list
• If only a portion is being pail with City funds,then show calculation and
documentation of how costs are allocated_
CHDO dperatingjPro(ect Delivery 0 Invoice
Expenses - Invoice should include:
date;
company's letterhead;
address for which service is provided;
description of service(s)and item(s);
amount for itemized services;and
total amount
• Proof of Payment(i_e.bank statement or cancelled check)
• Timesheet(s)Signed by Employee and Supervisor
• Activity Log(s)Signed by Employee and Supervisor
• Pay Period Dates Should be Reflected
• If paying for rent or contract services,copy of executed agreements
• If only a portion is being paid with City funds,then show calculation and
documentation of how costs are allocated_
Housing and Economic Development
FINAL as of 4/24/2413 Page 1
CHDO Single Family Contract—Exhibit J—Standards Of Complete Documentation
Cornerstone-3233 Fitzhugh Ave. Rev 08-20-14
EXHIBIT."J"
STANDARDS OF COMPLETE DOCUMENTATION
CORNERSTONE ASSISTANCE NETWORK HOUSING DEVELOPMENT CORP.
3233 FITZHUGH AVE.
FoRTWORTH.
Standard of Documentation for Reimbursement of Development Costs
Construction Casts(Contractors& Invoice
Subcontractors) - Invoice should include:
date;
company's letterhead;
address for which service is provided;
description of service(s)and item(s);
amount for itemized services;and
total amount
• Proof of Payment(i_e_bank statement or cancelled the-ck)
• Timesheet(s)Signed by Employee and Supervisor
- Activity Sheet(s)Signed by Employee and Supervisor
- Pay Period Dates Should be Reflected
• Copy of applicable inspection repor(s)conducted by HED Inspector
• Copy of executed agreements
- Provide printout from wwvrsam_eov verifying
contractor/subcontractor is not meted on the debarred and
suspension list
• If only a portion is being paid with City funds,then show calculation and
documentation of how costs are allocated.
• For retainage for the prime contractor,lien waivers for the prime and all
subcontractors_
Materials Purchased by Developer • Invoice
- Invoice should include:
date;
company's letterhead;
address where materials will be used;
description of service(s)and item(s);
cost by quantity;and
total amount
• Proof of Payment(i-e-bank statement or cancelled check
Developer Fee • Final Invoice Reflecting Total Development Cost
• Proof of payment for any other entity contributing to development costs.
• Show calculation of agreed upon developer fee percentage
• Copies of final lien releases from contractor/subcontractor
• Complete Documentation required in contract for home/unit produced
(Le_income docs for eligible homebuyer,sales contract between
developer/homebuyer,HAP Deed of Trust w/required affordability period
language,etc
Housing and Economic Development
FMAL as of 4/2412013 Page 2
CHDO Single Family Contract—Exhibit J—Standards Of Complete Documentation
Cornerstone-3233 Fitzhugh Ave. Rev 08-20-14
M&C Review Pagel of 2
Official site of the City of Fort Worth,Texas
ION41TY A114 FORTWORTH
COUNCIL ACTION: Approved on 12/17/2013
DATE: 12/17/2013 REFERENCE *,rC-26603 LOG 17AMENDCANHDCPOLYPROJECT
NO.: NAME:
CODE: C TYPE: CONSENT PUBLIC NO
HEARING:
SUBJECT: Authorize Amendment to Mayor and Council Communication C-24710 for the Conditional
Commitment and Contract for HOME Investment Partnership Program Grant Funds to
Cornerstone Assistance Network Housing Development Corporation for the Development
of Single Family Houses in the Polytechnic Neighborhood to Comply with United States
Department of Housing and Urban Development Requirements, Reduce the Number of
Houses to be Constructed to Two, and Authorize Release of City Liens (COUNCIL
DISTRICT 5)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the amendment to Mayor and Council Communication C-24710 that approved a
conditional commitment and contract with Cornerstone Assistance Network Housing Development
Corporation for HOME Investment Partnerships Program grant funds to change certain terms in the
Mayor and Council Communication to comply with United States Department of Housing and Urban
Development requirements, and specifically to remove Community Housing Development
Organization proceeds, include a developer fee, and reduce the number of houses to be constructed
from three to two; and
2. Authorize the release of any City liens on properties located at 3220, 3229, and 3233 Fitzhugh
Avenue to be acquired by Cornerstone Assistance Network Housing Development Corporation, as
sites for the construction of the houses.
DISCUSSION:
On January 25, 2011, (M&C C-24710) the City Council approved the award of$320,000.00 in HOME
Investment Partnerships Program grant funds to Cornerstone Assistance Network Housing
Development Corporation (CANHDC), a certified Community Housing Development Organization
(CHDO), for the development of three single family houses to be located in the Polytechnic
Neighborhood. Up to $50,000.00 of the HOME funds were to be used for CHDO operating expenses
and $270,000.00 of the HOME funds were to be used for eligible development and construction costs
for three single family houses. Due to increases in construction costs, CANHDC can only build two
houses with the HOME funds awarded to it.
In 2011, Staff developed a new policy regarding the use of CHDO proceeds with United States
Department of Housing and Urban Development's (HUD) guidance. HUD approved the policy on
May 3, 2011 and under the new policy, CHDO proceeds were no longer allowed and a 10 percent
developer fee was implemented. Staff recommends the following amendment to contract terms
authorized by M&C C-24710, based upon direction received from HUD:
Remove any reference to CHDO proceeds;
Include a 10 percent developer fee based on the total cost of construction to be paid once the
homes are sold; and
Reduce the number of houses to be constructed in the Polytechnic Neighborhood to two single
family houses due to increase in construction costs since original proposal submission.
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=19340&councildate=12/17/2013 3/17/2014