HomeMy WebLinkAboutContract 45059-A1 CITY SECRETARY 5�1-A
CONTRACT NO.
FIRST AMENDMENT TO CITY SECRETARY CONTRACT NO. 45059
WHEREAS, on October 30, 2013 the City of Fort Worth ("City") and Tarrant County
Housing Partnership, Inc. ("Developer") made and entered into City Secretary Contract No.
45059 (the "Contract"), as authorized by the City Council in M&C C-25531 adopted on March
27, 2012 which provided $1,115,000 of City's HOME funds to Developer for the development
and construction of up to 10 single family houses in the Hillside-Morningside neighborhood ;
WHEREAS, the funding provided to Developer in the Contract was from a grant received
by the City from the United States Department of Housing and Urban Development through the
HOME Investment Partnership Program, Catalog of Federal Domestic Assistance No. 14.239;
WHEREAS, a portion of the 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 ("CHDO") and Developer is qualified as a CHDO under the
HOME Regulations;
WHEREAS, Developer requested $117,000.00 of HOME CHDO funds for the
construction of a single family house located at 1203 E. Allen to be sold to HOME Eligible
Buyers under the terms and conditions set forth in the Contract;
WHEREAS, the proposed budget for the house was prepared in 2011 based on estimates
of costs at that time, but due to increases in acquisition costs, development costs and construction
costs, as well as other additional unanticipated costs not included in the estimates on which the
Budget was based, Developer has requested an additional $8,000.00 of HOME Funds to
complete the house and extend the deadline;
WHEREAS, Developer has requested an amendment to the line item amounts listed in
Exhibit "B" Project and Reimbursement Schedule and in Exhibit "C" - Budget due to
unforeseen additional costs for the project;
WHEREAS, it is the mutual desire of City and Developer to amend the Contract to
complete the project and meet Contract objectives.
NOW THEREFORE, City and Developer hereby agree as follows:
I.
M
M Section 2. DEFINITIONS is amended to be and read as follows:
M
"Completion Deadline means December 31, 2015."
M
"Home Funds means the HOME Program grant funds supplied by City to
NDeveloper under the terms of this Contra 0.00."
OFFICIAL RECORD
CITY SECRETARY
CONTRACT AMENDMENT 1 to CSC No.45059 FT.WORTH,TX Page 1
Tarrant County Housing Partnership, Inc.— 1203 E. Allen Rev. 9-12-14
"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."
II.
Section 4.1 is amended to be and read as follows:
"4.1 Provide HOME Funds. City shall provide Developer up to
$125,000.00 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."
III.
Section 11.1.1 is amended to be and read as follows:
"11.1 .1 The Property shall be acquired by Developer within 12 months of
the Effective Date. If Developer fails to begin construction of the house within 1
month of the acquisition of the Property or, if Developer aheady owns the
Property, within 1 month of the Effective Date, this Contract shall automatically
terminate without further notice or opportunity to cure, and with no penalty or
lialality to City."
IV
The first sentence of Section 17. INSURANCE AND BONDING is amended to be and
read as follows:
"Developer will maintain coverage in the form of insurance or bond in the amount
of $125,000.00 to insure against loss from the fraud, theft or dishonesty of any of
Developer's officers, agents, trustee, directors or employees."
V.
Exhibit "B" - Budget and Exhibit "C" - Project and Reimbursement Schedule
attached to the Contract are hereby replaced with Exhibit "B" - Budget Revised 9/2014 and
Exhibit"C" - Project and Reimbursement Schedule Revised 9/2014 attached hereto.
VI.
This amendment is effective as of the Effective Date of the Contract except the
amendment to Section 17 is effective as of the date of this amendment.
VII.
All other terms and conditions of City Secretary Contract No. 45059 not amended herein
remain unaffected and in full force and effect, are binding upon the Parties, and are hereby
CONTRACT AMENDMENT 1 to CSC No.45059 Page 2
Tarrant County Housing Partnership, Inc.- 1203 E.Allen Rev. 9-12-14
ratified by the Parties. Capitalized ter efined herein shall have meanings assigned to
them in the Contract.
ACCEPTED AND AGREED: $0
Vg 0
ATTEST: $ C F FORT WORTH
00 00000
s
City Secre Fernando Costa, Assistant City Manager
M&C C-25 31 Date: 3/27/2012
APPR VED AS TO FO AND LEGALITY:
jaq:�� Zo
Vicki S. Ganske, Senior Assistant City Attorney
STATE OF TEXAS §
COUNTY OF TARRANT §
This instrument was acknowledged before me o 6p a ' 2014 by
Fernando Costa, Assistant City Manager of the C' o h, on behalf the City of Fort
Worth.
Notary ' , State of Te as
'A SARAH J.ODLE
MY COMMISSION EXPIRES
November 5,2015
TARRANT COUNTY HOUSING
PA TNER a Texas n-profit corporation
�►Pl�IC1AL RECORD
By:
ITY SECRETARY D ss, ent
FT.WORTH,TX
STATE OF TEXAS §
COUNTY OF TARRANT §
This instrument was acknowledged before me o , 2014 by
Donna VanNess, President of Tarrant County Housing Partn rship, Inc., a Texas non-profit
corporation, acting on behalf of such corporation.
,,.,.. �L IuUTT1E L SANDERS Notary Public, State of Texas
"' '' MY�ry�4 Mie I:h\EXPIRES
_�';�,y;:;fir'' March 17,2018
CONTRACT AMENDMENT 1 to CSC No.45059 Page 3
Tarrant County Housing Partnership,Inc.— 1203 E.Allen Rev.9-12-14
EXHIBIT "B"
BUDGET REVISED 9/2014
TARRANT COUNTY HOUSING PARTNERSHIP, INC.
1203 E. ALLEN
Total Cost: $137,435
Project HOME Funds Awarded: $125,000
TOTAL AWARDED FUNDS: $125,000
HOME Funds will be paid only as reimbursement for eligible expenses.
Development Budget
Use of Funds Source of Funds
Predevelopment Cost HOME$ OTHERS SOURCE OF TOTAL$
FUNDS FUNDS OTHER FUNDS
(1) (2) FUNDS (1+2)
Names
1.Market Stud
2.Feasibility(i.e.:preliminary work write-up,
cost estimates,design)
3.Other
Total Predevelo ment Cost 1+2=3
Development Cost
4.Land and/or building acquisition 3,365 3,365
5. Site Preparation 3,100 3,100
6.Construction Cost 105,935 105,935
7.Fence 4,300 4,300
8.Landscape 2,100 2,100
9.Contingency
10.Appraisal 475 Proceeds of Sale 475
11.Architect&En&eering Fees 2,500 2,500
12.Construction Management Fee/ Developer
Fee
13.Construction Loan Interest
14.Property Survey 500 500
15.Legal Fees 250 Proceeds of Sale 250
16.Real Estate Fees 4,680 Proceeds of Sale 4,680
17.Utility Hookup/Impact Fees 3,200 3,200
18.Title&Recording Fees 780 Proceeds of Sale 780
19.Program Related Expense 6,250 6,250
20. Construction Management
21.Bond Fees
Total Development Cost Total of items 4-20 $125,000 12,435 137,435
Total Cost $125,000 12,435 137,435
CHDO Funds—Exhibit`B"—Budget Revised 9/2014 Page 4
Tarrant County Housing Partnership,Inc.— 1203 E.Allen Rev. 9-12-14
EXHIBIT "C"
PROJECT AND REIMBURSEMENT SCHEDULE REVISED 9/2014
TARRANT COUNTY HOUSING PARTNERSHIP, INC.
1203 E. ALLEN
Beginning Week—subject to
Phase Activity weather permitting
PHASE I ACTIVITIES: Contract signed
Land and/or Building Acquisition
Survey
PHASE I DEADLINE:
October 24,2014 1st Payment*
$3,364.58
PHASE II ACTIVIITES: Site Preparation
Architectural&Engineering Fees
Landscaping
Construction costs
PHASE II DEADLINE: 2nd Payment* $38,047.85
February 27 2015
PHASE III ACTIVIITES: Site Preparation
Architectural&Engineering Fees
Construction Costs&Fence
Utility hookup/Impact fees
PHASE III DEADLINE: 3rd Payment* $40,290.85
June 30,2015
PHASE IV ACTIVIITES: Construction costs
Utility hookup/Impact fees
PHASE W DEADLINE: 4te Payment* $29,607.85
August 30,2015
PHASE V ACTIVITIES: Utility hookup/Impact fees
Architectural&Engineering Fees
Landscaping
Construction Costs&Fence
PHASE V DEADLINE: FINAL PAYMENT** $13,688.87**
December 30,2015
CONSTRUCTION TOTAL $125,000.00
DEVELOPER FEE Paid at closing of sale to HOME $12,500.00
Eligible Buyer
*Developer will be reimbursed for eligible expenses only. The amounts are estimates and are subject to change.
**Prior to Reimbursement for Final Payment,Exhibit"G"-HOME Project Compliance Report must be
submitted
CHDO Funds—Exhibit"C"—Budget Page 5
Tarrant County Housing Partnership,Inc.— 1203 E.Allen Rev.9-12-14
M&C Review Page 1 of 3
Official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA
COUNCIL ACTION: Approved on 3/27/2012
DATE: 3/27/2012 REFERENCE C-25531 NAME: 17TCHP_HILLSIDEWORNINGSIDE_10
CODE: C TYPE: NON- PUBLIC NO
CONSENT HEARING:
SUBJECT: Authorize Expenditure in the Amount of$1,115,000.00 of HOME Investment Partnerships
Program Grant Funds to Tarrant County Housing Partnership, Inc., for the Development
of Ten Single Family Houses in the Hillside-Morningside Neighborhood, Authorize
Execution of Conditional Commitments and Contracts (COUNCIL DISTRICT 8)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize substitution of funding years in order to meet commitment, disbursement and
expenditure deadlines for grant funds from the United States Department of Housing and Urban
Development;
2. Authorize expenditure of $1,115,000.00 in HOME Investment Partnerships Program Grant funds
as allocated in the 2011-2012 Action Plan to Tarrant County Housing Partnership, Inc., a certified
Community Housing Development Organization, for the development of up to ten single family
houses in the Hillside-Morningside neighborhood;
3. Authorize execution of conditional commitments with Tarrant County Housing Partnership, Inc.,
that conditions funding, among other things, on satisfactory completion of HOME Investment
Partnerships Program requirements;
4. Authorize execution of contracts with the Tarrant County Housing Partnership, Inc., for the project
for a three year term beginning on the date of execution of the contract;
5. Authorize extension or renewal of the conditional commitment(s) or the contract(s) if Tarrant
County Housing Partnership, Inc., requests an extension and such extension is necessary for
completion of the project; and
6. Authorize amendment of the conditional commitment(s) or the contract(s) if necessary to achieve
project goals provided that the amendment is within the scope of the project and in compliance with
City policies and applicable laws and regulations governing the use of federal grant funds.
DISCUSSION:
On May 14, 2011, the City issued a Request for Proposals (RFP)for certified Community Housing
Development Organizations (CHDO) to award and expend up to $1,261,931.00 of HOME Investment
Partnerships Program Grant funds. On November 18, 2011, the Tarrant County Housing
Partnership, Inc., (TCHP) submitted a response requesting $617,884.00 of the available HOME funds
to acquire 17 sites on which it proposed to construct single family houses. The request also included
funds for CHDO operating expenses.
Staff reviewed all RFP submissions and recommended the award to TCHP of$1,115,000.00 in
HOME funds to the Community Development Council (CDC) at its meeting held on May 25, 2011.
http://apps.cfwnet.org/council_packet/mc—review.asp?ID=1 6625&councildate=3/27/2012 9/22/2014
M&C Review Pale 2 of 3
The CDC agreed with Staffs funding recommendation for the Project. Up to $100,000.00 of the
awarded funds will be used for operating expenses and $1,008,943.10 for construction of 10 houses
and other development expenses including the developer fee, which is based on the cost of
construction.
TCHP plans to develop up to 10 single family houses to be located in the Hillside-Morningside
neighborhood. There are three floor plan options available varying in square footage from
approximately 1300 to 1600 square feet with three bedrooms, two baths and a rear detached garage.
The houses will be sold to an individual or family that earns 80 percent or less of Area Median
Income as determined by the United States Department of Housing and Urban Development
(HUD). Buyers must meet all HOME Program requirements, including applying for and receiving at
least$1,000.00 in down payment and/or closing cost assistance from the City's Homebuyer
Assistance Program and occupying the house as their primary residence for five years.
City Staff recommends the following Contract terms:
i. Construction must begin within six months of date of contract execution;
ii. TCHP's performance under the contract and use of the HOME funds will be secured by a
recorded
Deed of Trust;
iii. Houses must be sold to a HOME eligible buyer; and
iv. TCHP will be allowed a 10 percent developer's fee based on the cost to construct the houses.
The expenditure of HOME funds is conditioned upon the following:
i. Satisfactory completion of the environmental review per 24 CFR Part 58; and
ii. Authorization to use grant funds from HUD.
The Action Plan's funding years for federal funds selected may vary and be substituted based on the
principle of First In, First Out (FIFO) in order to expend oldest grant funds first. The HOME funds
may be used for any eligible costs related to the development.
Staff recommends the expenditure up to $1,115,000.00 in HOME funds for the Project to benefit low
and very low income citizens by providing affordable housing. A public comment period on the
expenditure of these HOME funds was held from June 28, 2011 to July 27, 2011. Any comments are
maintained by the Housing and Economic Development Department in accordance with federal
regulations.
This project is located in COUNCIL DISTRICT 8.
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that funds are available in the current operating
budget, as appropriated, of the Grants Fund.
TO Fund/Account/Centers FROM Fund/Account/Centers
GR76 539120 017206531090 $100,000.00 GR76 539120 017206531030 $100.000.00
GR76 539120 017206531100 $1.008,943.10 GR76 539120 017206531040 $1,008,943.10
GR76 539120 005206123100 $6,056.90 GR76 539120 005206123970 $6,056.90
Submitted for City Manager's Office by, Fernando Costa (6122)
Originating Department Head: Jay Chapa (5804)
Cynthia Garcia (8187)
http://apps.cfwnet.org/council_packet/mc review.asp?ID=16625&councildate=3/27/2012 9/22/2014
M&C Review Page 3 of 3
Additional Information Contact: Fabiola Suarez (6811)
ATTACHMENTS
17TCHP.MAP.pdf
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=16625&councildate=3/27/2012 9/22/2014