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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 Fort Worth Housing Finance Corporation (hereafter "Developer"),
a Texas housing finance 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, the City Council has adopted development and revitalization of the City's
affordable housing stock as a strategic goal;
WHEREAS, the City Council established Developer in 1979 pursuant to the Texas
Housing Finance Corporations Act, Chapter 394 of the Texas Local Government Code, to
facilitate housing initiatives in the City, including but not limited to issuing tax exempt bonds,
developing and promoting housing, and assisting low to moderate income City citizens in
acquiring quality, accessible, affordable housing through lending and construction activities;
WHEREAS, Developer proposes to use HOME funds for an eligible project under the
HOME Regulations whereby Developer will construct a single family house located at 3649
Eagle Nest Street,Fort Worth, TX 76106 to be sold to low to moderate income homebuyers;
WHEREAS, City citizens and the City Council have determined that the development of
n quality, accessible, and affordable housing is needed for moderate, low, and very low-income
m City citizens.
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C7 NOW, THEREFORE, in consideration of the mutual covenants and obligations and
responsibilities contained herein, including all Exhibits and Attachments, and subject to the
terms and conditions hereinafter stated,the Parties understand and agree as follows:
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HOME DEVELOPER SINGLE FAMILY CONTRACT C 6161. aRpl y
Fort Worth Housing Finance Corporation—3649 Eagle Nest Street NNG:'
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 20% of the homebuyer's monthly gross income. In the case of new house construction, the
percentage of the homebuyer's monthly gross income shall not exceed 32%.
Act means the HOME Investment Partnerships Act at Title II of the Cranston Gonzales National
Affordable Housing Act of 1990, as amended, 42 U.S.C. 12701 et seq.
Affordability Period means the period of time that a house purchased or 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 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.
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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 "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)
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Fort Worth Housing Finance Corporation—3649 Eagle Nest Street Page 2
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.
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 August 31, 2016.
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 Exhibit"E"—Loan Documents.
Director means the Director of the City's HED Department.
Effective Date means the date this Contract is fully executed by the Parties as shown by the date
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written under their respective signatures.
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 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.
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Fort Worth Housing Finance Corporation—3649 Eagle Nest Street Page 3
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$162,500.00
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 Integrated Disbursement Information System, HUD's project tracking 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.
Principal Residence means the house purchased from 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
HOME DEVELOPER SINGLE FAMILY CONTRACT Rev 9.23.2014
Fort Worth Housing Finance Corporation—3649 Eagle Nest Street Page 4
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 houses 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 3649 Eagle Nest Street Fort Worth, TX 76106. The Required Improvements are
part of an infill housing project in which Developer will construct and sell single family houses
in the Diamond Hill-Jaivis 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 5 years
unless earlier terminated as provided in this Contract.
3.2 Extension of Contract.
This Contract may be extended for two additional 1 year terms upon Developer
submitting a request for an extension in writing at least 60 days prior to the end of the Contract
term or the extended 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 that it is within 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.
3.3 Term of Loan.
The term of the Loan commences on the date of the Promissory Note and terminates 5
years later so long as the terms and conditions of this Contract and the Loan Documents have
been met.
4. DUTIES AND RESPONSIBILITIES OF CITY.
4.1 Provide HOME Funds.
City shall provide up to $162,500.00 of HOME Funds in the form of the Loan for eligible
expenses under the terms and conditions described herein.
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4.2 City Will Monitor.
City will monitor the activities and performance of Developer and any of its contractors,
subcontractors or vendors throughout the Affordability Period, but no less than 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 a HOME Eligible Buyer 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.
5.2.2.3 Complete Documentation, as applicable, is submitted by Developer.
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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 Section 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.
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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 Acknowleduement 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 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 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
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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 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
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assume all of Developer's obligations hereunder.
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 11 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, i
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
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preparation of any tests, 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 Eligibility.
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 120 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 City with all
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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
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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.
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
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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 direct assistance calculated in
accordance with Federal requirements, 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:
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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.
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
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affirmatively market the houses constructed as part of the project and
records to assess the results of these actions.
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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 Marketiniz.
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. Intentionally Omitted.
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:
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 (i) cause this Contract to terminate
immediately, and (ii) require Developer to repay to City any HOME Funds received.
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
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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.
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 Copyriaht 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
x
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
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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 $162,500.00.
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.
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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.
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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 Chance 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.
9.4 City Reserves the Rijzht 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.
i
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
4
to the house, if necessary; and
10.2.2 Proof that each expense was paid by Developer, which can be satisfied by
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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.
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 12 months of the
Effective Date. If Developer fails to begin construction of the house within 9 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.
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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 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.
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11.3 Failure to Sell Required Improvements.
Developer must notify City in writing if Developer fails to sell the house to a HOME
Eligible Buyer 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:
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 11.1, 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. z
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11.5.2 City's remedies may include:
11.5.2.1 Direct Developer to prepare and follow a schedule of actions for
carrying out the affected activities, consisting of schedules,
timetables and milestones necessary to implement the affected
activities.
11.5.2.2 Direct Developer to establish and follow a management plan that
assigns responsibilities for carrying out the remedial activities.
11.5.2.3 Cancel or revise activities 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.
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11.8 Rights of City Not Affected.
Termination shall not affect or terminate any of the existing rights of City against
Developer, or which may thereafter accrue because of such default, and this provision shall be in
addition to any and all other rights and remedies available to City under the law and 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.
11.11.1 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.
11.11.2 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:
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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
11.12.2 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
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performing same, and shall be solely responsible for the acts and omissions of its officers,
members, agents, servants, employees, contractors, subcontractors, vendors, tenants, licensees or
invitees.
14.2 Doctrine of Respondeat Superior.
The doctrine of respondeat superior shall not apply as between City and Developer, its
officers, members, agents, servants, employees, 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,
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which are incorporated by reference and made a part of this Contract for all 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 etseq.)
➢ 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
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Architectural Barriers Act of 1968 as amended (42 U.S.C. sections 4151 et seq.) and
the Uniform Federal Accessibility Standards, 24 CFR Part 40, Appendix A
➢ Regulations at 24 CFR Part 87 related to lobbying, including the requirement that
certifications and disclosures be obtained from all covered persons
➢ 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 Projects 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 fiom 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 ("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 lvork 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 1701 it (Section 3). The purpose of 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
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Fort Worth Housing Finance Corporation—3649 Eagle Nest Street Page 25
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 see the
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 filled: (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
from ficture 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 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.
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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.
f
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:
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 s
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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
III, 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.
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 Namel 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 Namel_ 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 f
termination, rates of pay or other forms of compensation, and selection for training, including
apprenticeship. [Contractor's, SZrbcontractor's or Vendor's Name] agrees to post in conspicuous
places, available to employees and applicants for employment, notices setting forth the
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provisions of this nondiscrimination clause.
_[Contractor's, Subcontractor's or Vendor's Namel_ will, in all solicitations or
advertisements for employees placed by or on behalf of_[Contractor's, Subcontractor's or
Vendor's Namel_ , 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 Namel 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 Namel 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.
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 fiom 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.
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14.13.2 No employees, agents, consultants, officers or elected officials or appointed
officials of City or of Developer who exercise or have exercised any functions or responsibilities
with respect to activities assisted with HOME funds or who are in a position to participate in a
decision-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.
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.
4
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
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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 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 Riaht 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.
r
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
HOME DEVELOPER SINGLE FAMILY CONTRACT Rev 9.23.2014
Fort Worth Housing Finance Corporation—3649 Eagle Nest Street Page 31
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 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
HOME DEVELOPER SINGLE FAMILY CONTRACT Rev 9.23.2014
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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
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
$162,500.00 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
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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
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 '
r
insurance coverage and have executed bonds as required in this Contract prior to payment of any
monies provided hereunder.
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Fort Worth Housing Finance Corporation—3649 Eagle Nest Sheet Page 34
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 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 inflztence 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
HOME DEVELOPER SINGLE FAMILY CONTRACT Rev 9.23.2014
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cooperative agreement and the extension, continuation, renewal, amendment, or
modification of any Federal contract, grant, loan or cooperative agreement.
If any fiends other than federally appropriated fiends 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.
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 and 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.
City
City Attorney's Office
1000 Throckmorton Street
Fort Worth, TX 76102
Attention: Vicki S. Ganske
Telephone: 817-392-7765
s
HOME DEVELOPER SINGLE FAMILY CONTRACT Rev 9.23.2014
Fort Worth Housing Finance Corporation—3649 Eagle Nest Street Page 36
Copy to:
Housing and Economic Development Department
1000 Throckmorton Street
Fort Worth, TX 76102
Attention: Assistant Director
Telephone: 817-392-7540
Developer:
Fort Worth Housing Finance Corporation
1000 Throckmorton Street
Fort Worth, TX 76102
Attention: General Manager
Telephone: 817-392-7540
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]
Y
HOME DEVELOPER SINGLE FAMILY CONTRACT Rev 9.23.2014
Fort Worth Housing Finance Corporation—3649 Eagle Nest Street Page 37
0���0 ��
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TNESS WHEREOF, the Parties have executed 4 duplicate originals of this
be effective on the last date indicated below the Parties' signatures.
AT ST: CITY OF FORT WORTH
By: 7 �(:-dt1�
ity,S e`cretaW Fernando Costa,Assistant City Manager
M&C C-27 Dated 9/23/2014
Date: �T/¢
APP VED AS TO FOM AYD LEGALITY: /
Vicki S. Ganske, Senior Assistant City Attorney
FORT WORTH HOUSING FINANCE
CORPORATION, a Texas housing finance
corporation
By:
JesustjChapa, General Manager
Date: / �� q-1y
STATE OF TEXAS §
COUNTY OF TARRANT §
This instrument was acknowledged before me , 2014 by
Fernando Costa, Assistant City Manager of t ity of A rth, b e City of Fort
Worth. g{i'Pi:'••.
` SARAH J.ODLE
*: MY COMMISSION EXPIRES
Novembers,2015 o ub1ic, Stat o exas
STATE OF TEXAS §
COUNTY OF TARRANT §
This instrument was acknowledged before me o 0 A C>� , 2014 by
Jesus Chapa, General Manager of the Fort W ous• nce of o of a Te s housing
finance corporation, on behalf of said corpora ion.
-- Notar c, State of exas
*?1``9_AP~* SARAH J.ODLE
MY COMMISSION EXPIRES
,iFgfti Novembers, z OFFICIAL RECORD
HOME DEVELOPER SINGLE FAMILY CONTRACT PEETARY
Fort Worth Housing Finance Corporation—3649 Eagle Nest Street � e WMA, TX
EXHIBITS:
Exhibit"A" —Project Summary and 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
}
HOME DEVELOPER SINGLE FAMILY CONTRACT Rev 9.23.2014
Fort Worth Housing Finance Corporation—3649 Eagle Nest Street Page 39
{
EXHIBIT "A"
PROJECT SUMMARY- SCOPE OF WORK
FORT WORTH HOUSING FINANCE CORPORATION
3649 EAGLE NEST STREET
DESCRIPTION:
Developer will construct an approximately 1,479 square foot, 3-bedroom, 2-bath single-family house on
an approximately 5000 (range) square foot lot. Construction will include a 2-car garage. Fencing will be
located at the rear and side yards. The front yard will be landscaped.
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.
The following appliances and related amenities will be included in the sale of the house:
• Ceiling fans in all bedrooms and 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:
• Fence (back yard)
• Landscaping(front yard)
• Asphalt Composite Roofing
• Hardie Board Siding with Brick and Stone Accents
• Foundation Type Post Tension
i
HOME DEVELOPER SINGLE FAMILY CONTRACT—Exhibits"A"thru"A-2" Rev. 9-23-14
Fort Worth Housing Finance Corporation—3649 Eagle Nest Street Page 1
EXHIBIT "A-1"
FINAL ELEVATIONS,PLANS AND SPECIFICATIONS
FORT WORTH HOUSING FINANCE CORPORATION
3649 Eagle Nest Street
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HOME DEVELOPER SINGLE FAMILY CONTRACT—Exhibits"A"thru"A-2" Rev. 9-23-14
Fort Worth Housing Finance Corporation—3649 Eagle Nest Street Page 2
EXHIBIT "A-I"
FINAL ELEVATIONS,PLANS AND SPECIFICATIONS
FORT WORTH HOUSING FINANCE CORPORATION
3649 Eagle Nest Street
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HOME DEVELOPER SINGLE FAMILY CONTRACT—Exhibits"A"thru"A-2" Rev.9-23-14
Fort Worth Housing Finance Corporation—3649 Eagle Nest Street Page 3
i
EXHIBIT "A-1"
FINAL ELEVATIONS,PLANS AND SPECIFICATIONS
FORT WORTH HOUSING FINANCE CORPORATION
3649 Eagle Nest Street
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HOME DEVELOPER SINGLE FAMILY CONTRACT—Exhibits"A"thru"A-2" Rev. 9-23-14
Fort Worth Housing Finance Corporation—3649 Eagle Nest Street Page 4
EXHIBIT "A-2"
ENVIRONMENTAL MITIGATION ACTION
FORT WORTH HOUSING FINANCE CORPORATION
3649 EAGLE NEST STREET
HOME Funds may be reimbursed for exempt activities; however, HOME funds will not be paid,
and costs cannot be incurred until City has conducted and completed an environmental review of
the proposed Project site as required under 24 CFR Part 58. The environmental review may
result in a decision to proceed with, modify, or cancel the project. Further, Developer will not
undertake or commit any funds to physical or choice limiting actions, including property
acquisition, demolition, movement, rehabilitation, conversion, repair or construction until
satisfactory completion of environmental review and receipt by City of an authorization to use
grant funds from HUD under 24 CFR Part 58.
Special conditions, procedures, and requirements identified for the project may include and are
not limited to mitigation of adverse effects identified in the Section 106 (24 CFR Part 58.5(a) -
Historic Properties) review process. The special conditions, procedures, and requirements may
differ and are subject to approval by City and HUD.
Upon completion of the environmental review certification, the City will deliver to Developer
the executed environmental review certification form. Developer agrees to abide by the special
conditions, procedures, and requirements of the executed environmental review certification
approved by HUD prior to commitment of any funds or undertaking any physical or choice
limiting actions.
i
i
HOME DEVELOPER SINGLE FAMILY CONTRACT—Exhibits"A"thru"A-2" Rev. 9-23-14
Fort Worth Housing Finance Corporation—3649 Eagle Nest Street Page 5
EXHIBIT "B"
BUDGET
FORT WORTH HOUSING FINANCE CORPORATION
3649 EAGLE NEST STREET
Total Cost: $162,500.00
Project HOME Funds Awarded: $162,500.00
HOME Funds will be paid only as reimbursement for eligible expenses.
Development Budget
Use of Funds Source of Funds
Predevelopment Cost HOME$ OTHER$ SOURCE OF TOTAL$
OTHER
FUNDS FUNDS FUNDS FUNDS
-1 -2 (Names) (1+2)
1.Market Study 912 912
2. Feasibility(i.e.:preliminary work write-up,
cost estimates,design)
3. Other
Total Predevelopment Cost(1+2=3) 912 912
Development Cost
4. Land and/or building acquisition 6,286 6,286
5. Site Preparation 16,929 16,929
6. Construction Cost 128,753 128,753
7. Fence 2,635 2,635
8.Landscape 1,140 1,140
9. Contingency
10.Appraisal 114 114
11.Architect&Engineering Fees 772 772
12. Construction Management Fee
13. Construction Loan Interest
14.Property Survey 342 342
15. Legal Fees
16.Real Estate Fees 285 285
17.Utility Hookup/Impact Fees
18. Title &Recording Fees 4,332 4,332
19.Program Related Expenses
20. Construction Management
21.Bond Fees
Total Development Cost(Total of items 4-21) 162,500 162,500
Total Project Cost 162,500 162,500
r
HOME DEVELOPER SINGLE FAMILY CONTRACT—Exhibit`B"—Budget Rev. 9-23-14
Fort Worth Housing Finance Corporation—3649 Eagle Nest Street Page 1
EXHIBIT "C"
CONSTRUCTION AND REIMBURSEMENT SCHEDULE
FORT WORTH HOUSING FINANCE CORPORATION
3649 EAGLE NEST STREET
Phase Activity Beginning Week—subject to
weather permitting
PHASE I ACTIVITIES: Contract Signed
Land and/or Building Acquisition
Survey
PHASE I DEADLINE:
March 31,2015 1st Payment* $40,307*
PHASE II ACTIVITIES: Site Preparation
Architectural&Engineering Fees
Landscaping
Construction Costs
PHASE II DEADLINE: 2"d Payment* $54,935*
May 30,2015
PHASE III ACTIVITIES: Site Preparation
Architectural&Engineering Fees
Construction Costs
Utility hookup/Impact fees
PHASE III DEADLINE: 3rd Payment* $56,421*
July 31,2015
PHASE IV ACTIVITIES: Utility hookup/Impact fees
Architectural &Engineering Fees
Landscaping
Construction Costs&Fence
PHASE IV DEADLINE: Construction Final Payment** $10,837*
October 31,2016
CONSTRUCTION TOTAL $162,500
*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 until after closing of sale to a Eligible HOME Buyer.
HOME DEVELOPER SINGLE FAMILY CONTRACT Exhibit"C"—Project and Reimbursement Schedule Page I
Fort Worth Housing Finance Corporation—3649 Eagle Nest Sheet Rev. 9-23-14
EXHIBIT "D"
AUDIT REQUIREMENTS
FORT WORTH HOUSING FINANCE CORPORATION
3649 Eagle Nest Street
CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT DEPARTMENT
AUDIT REQUIREMENTS
Organizations expending $500,000 or more in federal awards (from City of Fort Worth and
other funding sources) during their fiscal years shall obtain either an annual single audit or a
program specific audit. Organizations may have a program specific audit in accordance with
OMB Circular A-133, or other standard set forth in the Contract if applicable, if they
expended funds for only one federal program as listed in the Catalog of Federal Domestic
Assistance (CFDA). If funds are spent for more than one federal program, a single audit is
required. The audited time period is the organization's fiscal year, and not the City of Fort
Worth's funding period.
The audit shall be conducted by a certified public accountant (CPA) that is licensed at the time
of the audit by the appropriate regulatory body. The CPA shall meet all of the general
standards concerning qualifications, independence, due professional care and quality control
as required by Government Auditing Standards, including the requirements for continuing
professional education and external peer reviews. Auditor selection must adhere to federal
procurement requirements.
A separate supplementary schedule of revenues, expenditures and changes in fund
balance for each City of Fort Worth contract is no longer required. The Schedule of
Expenditures of Federal Awards should list City of Fort Worth 's contract numbers, the
total expended for each individual federal program, and the CFDA number (OMB A-133 §
.310).
The independent auditor's report should include all of the relevant items listed on the
"Audit Report Checklist." Additional guidance on the conduct and reporting of these audits is
contained in the latest issuance of the following publications:
Government Auditing Standards issued by the Comptroller General of the United States, 2003
OMB Circular A-133 as revised 6/30/97 and amended June 2003
OMB Circular A-133 Compliance Supplement
AICPA's Statement of Position 98-3, "Audits of States, Local Governments, and Not-for-Profit
Organizations Receiving Federal Awards"
Various AICPA audit guides for nonprofits, colleges and universities and health and welfare
organizations
AICPA's Audit Risk Alert"State and Local Governmental Developments"
Government Auditing Standards by the Texas Department of Housing and Community Affairs for
Properties Receiving Low Income Housing Tax Credits
HOME DEVELOPER SINGLE FAMILY CONTRACT—Exhibit"D"—Audit Requirements Page 1
Fort Worth Housing Finance Corporation—3649 Eagle Nest Street Rev. 9-22-14
All organizations that receive a City of Fort Worth award must submit the provided Audit
Certification Form which certifies whether you are subject to a single/program audit.
Organizations receiving federal awards from the City of Fort Worth who are not required to
have an audit shall certify in writing to the agency. The organization's Chief Executive
Officer or Chief Financial Officer shall make the certification within 60 days of the end of
the organization's fiscal year in the year that the project was completed.
The following items should be submitted to the City of Fort Worth Housing and Economic
Development Department within the required timeframe:
Due 60 days after organization's fiscal year end in the year that the project was completed: (required for
all subrecipients)
Completed Audit Certification Form
Due within the earlier of 30 days after receipt of the auditor's report or nine months after the end of
the audit period.
Two copies of the entire audit report issued by the CPA
Two copies of any management letter issued by the CPA in conjunction with the audit report
Two copies of management's comments on all findings, recommendations, &
questioned costs contained in the audit report and management letter, including
a detailed corrective action plan
Failure to submit any of these items by the required due date may result in holds on
current draw requests, suspension of the organization's contract(s) and eligibility for future
funding.
If the organization does not meet the requirements of having a single/program audit
conducted, records must still be kept available for review or audit by City of Fort Worth staff
(OMB A-133 Subpart B Sec 200(d).
If additional information is needed concerning the audit requirements, please call (817)
392-6141.
HOME DEVELOPER SINGLE FAMILY CONTRACT—Exhibit"D"—Audit Requirements Page 2
Fort Worth Housing Finance Corporation—3649 Eagle Nest Street Rev.9-22-14
CITY OF FORT WORTH
HOUSING AND ECONOMIC DEVELOPMENT DEPARTMENT
SINGLE AUDIT REPORT CHECKLIST
The Department developed this checklist to help organizations improve the quality and
completeness of audit reports.
General Purpose or Basic Financial Statements of the Organization Opinion/Report on
Organization's Financial Statements in accordance with Government Auditing Standards
Notes to the General Purpose or Basic Financial Statements of the Organization
A Schedule of Expenditures of Federal Awards, including the Department's contract numbers, the
total expended for the federal program, and the CFDA number (OMB A-133 Subpart C Sec
310).
Opinion/Report on Schedule of Expenditures of Federal and State Awards
Report on Compliance and on Internals Control Over Financial Reporting-Based on an Audit of
Financial Statements Performed in Accordance With Government Auditing Standards.
(OMB A-133 § 505 (b))
Report on Compliance with Requirements Applicable to Each Major Program and Internal
Control over Compliance in Accordance with OMB Circular A-133. (OMB A-133 § 505 (c))
Schedule of Findings uestioned Costs (OMB A-133 §. 505d), including: Summary Schedule of
Prior Audit Findings reporting the status of all findings included in the prior audit's schedule of
findings and questioned costs. (OMB A-133 Sec. 315 (a) and (b))
Corrective Action Plan including (OMB A-133 Sec. 315 (c))name of person responsible for
the corrective action, corrective action planned, anticipated completion date, and
explanation and reason if auditee does not agree with findings or believes correction is not
required.
All reports are signed and dated by the auditor
Two copies of the audit reports are submitted
Two copies of the management letter, if issued in conjunction with the audit report. Two
copies of comments by management concerning all findings and
recommendations included in management letter, including a corrective action
plan.
s
HOME DEVELOPER SINGLE FAMILY CONTRACT—Exhibit"D"—Audit Requirements Page 3
Fart Worth Housing Finance Corporation—3649 Eagle Nest Street Rev. 9-22-14
CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT
DEPARTMENT
Audit Certification Form
Subrecipient: FWHFC Fiscal Year Ending:
Month Day Year
❑ We have exceeded the federal expenditure threshold of$500,000. We will have our
Single Audit or Program Specific Audit completed and will submit the audit report within nine (9)
months after the end of the audited fiscal year.
❑ We did not exceed the $500,000 federal expenditure threshold required for a Single Audit or
a Program Specific Audit to be performed this fiscal year. (Fill out schedule below)
Must be filled out if Single Audit or Program Audit is not required.-
Federal Funds
Pass Through Program Name& Contract
Federal Grantor Grantor CFDA Number Number Expenditures
Total Federal Expenditures for this Fiscal Year $
_Jesus Chapa t General Manager
Printed Name Title(Must be CFO,CEO or equivalent)
_817-392-5804 _9/24/14
Authorized Signature(Must be CF(VCEO or equivalent) Phone Number Date
Failure to submit this or a similar statement or failure to submit a completed single audit
package as described in the audit requirements by the required due date will result in suspension
of funding and will affect eligibility for future funding.
Submit this form to the City of Fort Worth Housing and Economic Development Department within 60 days after the
end of your Fiscal year
HOME DEVELOPER SINGLE FAMILY CONTRACT—Exhibit"D"—Audit Requirements Page 4
Fort Worth Housing Finance Corporation—3649 Eagle Nest Street Rev.9-22-14
EXHIBIT "E"
LOAN DOCUMENTS
FORT WORTH HOUSING FINANCE CORPORATION
3649 EAGLE NEST STREET
HOME SINGLE FAMILY DEVELOPER CONTRACT—Exhibit`B"—Loan Documents
Fort Worth Housing Finance Corporation—3649 Eagle Nest Street Rev 9-23-14
NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON,
YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION
FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC
RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE
NUMBER
DEED OF TRUST
Terms
Date:
Grantor: Fort Worth Housing Finance Corporation
a Texas housing finance corporation.
Grantor's Mailing Address:
1000 Throckmorton Street, Fort Worth,Tarrant County, TX 76102
Trustee: Vicki S. Ganske or Leann Guzman
Trustee's Mailing Address:
C/O City Attorney's Office
1000 Throckmorton St.
Fort Worth, Tarrant County, TX 76102
Lender: City of Fort Worth,Texas, a Texas municipal corporation
Lender's Mailing Address:
C/O Housing&Economic Development Department
1000 Throckmorton St.
Fort Worth,Tarrant County,TX 76102
Loan Authority:
The loan evidenced by the Note and secured by this Deed of Trust is being made pursuant
to the HOME Investment Partnerships Program authorized under Title II of the Cranston-
Gonzales National Affordable Housing Act of 1990, as amended, 42 USC 12701 et 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.
Obligation
Note
Date:
Original principal amount:
Borrower: Fort Worth Housing Finance Corporation, a Texas housing finance
corporation
DEED OF TRUST—Fort Worth Housing Finance Corporation Page 1
3649 Eagle Nest Street Rev. 9-23-14
Lender: City of Fort Worth, Texas, a Texas municipal corporation
Maturity Date:
Property(including any improvements):
SEE EXHIBIT "A" ATTACHED HERETO AND INCORPORATED HEREIN FOR
ALL PURPOSES
Prior Lien:
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
year.
For value received and to secure payment of the Obligation, Grantor conveys the Property
to Trustee in trust. Grantor warrants and agrees to defend the title to the Property, subject to the
Other Exceptions to Conveyance and Warranty. On payment of the'Obligation and all other
amounts secured by this Deed of Trust, this Deed of Trust will have no further effect, and Lender
will release it at Grantor's expense.
Clauses and Covenants
A. Grantor's Obligations
Grantor agrees to
1. keep the Property in good repair and condition;
2. pay all taxes and assessments on the Property before delinquency and provide proof
of payment of same upon request by Lender;
3. defend title to the Property subject to the Other Exceptions to Conveyance and
Warranty and preserve the lien's priority as it is established in this Deed of Trust;
4. maintain, in a form acceptable to Lender, an insurance policy that a. covers all improvements for their full insurable value as determined when
the policy is issued and renewed, unless Lender approves a smaller amount
in writing;
b. contains an 80 percent coinsurance clause;
C. provides all-risk coverage;
DEED OF TRUST—Fort Worth Housing Finance Corporation Page 2
3649 Eagle Nest Street Rev.9-23-14
d. protects Lender with a standard mortgage clause;
e. provides flood insurance at any time the Property is in a flood hazard area;
and
f. contains such other coverage as Lender may reasonably require;
5. comply at all times with the requirements of the 80 percent coinsurance clause;
6. deliver the insurance policy to Lender within ten days of the date of this Deed of
Trust and deliver renewals to Lender at least fifteen days before expiration;
7. obey all laws, ordinances, and restrictive covenants applicable to the Property;
8. keep any buildings occupied as required by the insurance policy;
9. if the lien of this Deed of Trust is not a first lien, pay or cause to be paid all prior
lien notes and abide by or cause to be abided by all prior lien instruments; and,
10. notify Lender of any change of address.
B. Lender's Rights
1. Lender may appoint in writing a substitute trustee, succeeding to all rights and
responsibilities of Trustee.
2. If the proceeds of the Obligation are used to pay any debt secured by prior liens,
Lender is subrogated to all the rights and liens of the holders of any debt so paid.
3. Lender may apply any proceeds received under the insurance policy either to reduce
the Obligation or to repair or replace damaged or destroyed improvements covered by the policy.
If the Property is Grantor's primary residence and Lender reasonably determines that repairs to
the improvements are economically feasible, Lender will make the insurance proceeds available
to Grantor for repairs.
4. Notwithstanding the terms of the Note to the contrary, and unless applicable law
prohibits, all payments received by Lender from Grantor with respect to the Obligation or this
Deed of Trust may, at Lender's discretion, be applied first to amounts payable under this Deed of
Trust and then to amounts due and payable to Lender with respect to the Obligation,to be applied
to late charges, principal, or interest in the order Lender in its discretion determines.
5. If Grantor fails to perform any of Grantor's obligations, Lender may perform those
obligations and be reimbursed by Grantor on demand for any amounts so paid, including
attorney's fees, plus interest on those amounts from the dates of payment at the rate stated in the G
Note for matured, unpaid amounts. The amount to be reimbursed will be secured by this Deed of
Trust.
DEED OF TRUST—Fort Worth Housing Finance Corporation Page 3
3649 Eagle Nest Street Rev.9-23-14
i
6. If there is a default on the Obligation or if Grantor fails to perform any of Grantor's
obligations and the default continues after any required notice of the default and the time allowed
to cure, Lender may
a. declare the unpaid principal balance on the Obligation immediately due;
b. direct Trustee to foreclose this lien, in which case Lender or Lender's
agent will cause notice of the foreclosure sale to be given as provided by
the Texas Property Code as then in effect; and
C. purchase the Property at any foreclosure sale by offering the highest bid
and then have the bid credited on the Obligation.
7. Lender may remedy any default without waiving it and may waive any default
without waiving any prior or subsequent default.
8. If the Property is acquired by Lender by foreclosure, Grantor's right to any
insurance policies and proceeds resulting from damage to the Property prior the acquisition shall
pass to Lender to the extent of the sums secured by this Deed of Trust immediately prior to the
acquisition.
9. Lender or its agents may make reasonable entries upon and inspections of the
Property. Lender shall give Borrower notice at the time of or prior to an inspection giving
reasonable cause for the inspection.
C. Trustee's Rights and Duties
If 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 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, attorney's fees, and other
charges due and unpaid;
C. any amounts required by law to be paid before payment to Grantor; and
DEED OF TRUST—Fort Worth Housing Finance Corporation Page 4
3649 Eagle Nest Street Rev.9-23-14
d. to Grantor, any balance; and
4. be indemnified, held harmless, and defended by Lender against all costs, expenses,
and liabilities incurred by Trustee for acting in the execution or enforcement of the trust created
by this deed of trust, which includes all court and other costs, including attorney's fees, incurred
by Trustee in defense of any action or proceeding taken against Trustee in that capacity.
D. General Provisions
1. If any of the Property is sold under this Deed of Trust, Grantor must immediately
surrender possession to the purchaser. If Grantor fails to do so, Grantor will become a tenant at
sufferance of the purchaser, subject to an action for forcible detainer.
2. Recitals in any trustee's deed conveying the Property will be presumed to be true.
3. Proceeding under this Deed of Trust, filing suit for foreclosure, or pursuing any
other remedy will not constitute an election of remedies.
4. This lien will remain superior to liens later created even if the time of payment of
all or part of the Obligation is extended or part of the Property is released.
5. If any portion of the Obligation cannot be lawfully secured by this Deed of Trust,
payments will be applied first to discharge that portion.
6. Grantor assigns to Lender all amounts payable to or received by Grantor 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 attorney's fees and court and other costs, Lender will either release
any remaining''amounts to Grantor or apply such amounts to reduce the Obligation. Lender will
not be liable for failure to collect or to exercise diligence in collecting any such amounts.
Grantor will immediately give Lender"notice of any actual or threatened proceedings for
condemnation of all or part of the Property.
7. Grantor assigns to Lender absolutely, not only as collateral, all present and future
rent and other income and 'receipts from the Property. Grantor warrants the validity and
enforceability of the assignment. Grantor may as Lender's licensee collect rent and other income
and receipts as long as Grantor is not in default with respect to the Obligation or this Deed of
Trust. Grantor will apply all rent and other income and receipts to payment of the Obligation and
performance of this Deed of Trust, but if the rent and other income and receipts exceed the
amount due with respect to the Obligation and the deed of trust, Grantor may retain the excess. If
Grantor defaults in payment of the Obligation or performance of this Deed of Trust, Lender may
terminate Grantor's license to collect rent and other income and then as Grantor's agent may rent
the Property and collect all rent and other income and receipts. Lender neither has nor assumes
any obligations as lessor or landlord with respect to any occupant of the Property. Lender may
DEED OF TRUST—Fort Worth Housing Finance Corporation Page 5
3649 Eagle Nest Street Rev.9-23-14
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
first to expenses incurred in exercising Lender's rights and remedies and then to Grantor's
obligations with respect to the Obligation and this Deed of Trust in the order determined by
Lender. Lender is not required to act under this paragraph, and acting under this paragraph does
not waive any of Lender's other rights or remedies. If Grantor becomes a voluntary or
involuntary debtor in bankruptcy, Lender's filing a proof of claim in bankruptcy will be deemed
equivalent to the appointment of a receiver under Texas law.
8. Interest on the debt secured by this Deed of Trust will not exceed the maximum
amount of non-usurious interest that may be 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 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 nouns and pronouns include the plural.
11. The term Note includes all extensions, modifications, and renewals of the Note
and all amounts secured by this Deed of Trust.
12. This Deed of Trust binds, benefits, and may be enforced by the successors in
interest of all parties.
13. If Grantor and Borrower are not the same person, the term Grantor includes
Borrower.
14. Grantor and each surety, endorser, and guarantor of the Obligation 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.
15. Grantor agrees to pay reasonable attorney's fees, trustee's fees, and court and
other costs of enforcing Lender's rights under this Deed of Trust if this Deed of Trust is placed in
the hands of an attorney.
16. If any provision of this Deed of Trust is determined to be invalid or
unenforceable,the validity or enforceability of any other provision will not be affected.
17. The term Lender includes any mortgage servicer for Lender.
DEED OF TRUST—Fort Worth Housing Finance Corporation Page 6
3649 Eagle Nest Street Rev. 9-23-14
18. Grantor represents that this Deed of Trust and the Note are given for the following
purposes:
The debt evidenced by the Note is in payment of the purchase price of the
Property and the development costs of the Required Improvements as described in
the Contract; the debt is secured both by the Deed of Trust and by a vendor's lien
on the Property. This Deed of Trust does not waive the vendor's lien, and the two
liens and the rights created by this Deed of Trust are cumulative. Lender may
elect to enforce either of the liens without waiving the other or may enforce both.
19. If the Property is transferred by foreclosure, the transferee will acquire title to all
insurance policies on the Property including all paid but unearned premiums.
20. Lender may declare the debt secured by this Deed of Trust immediately payable
and invoke any remedies provided in this Deed of Trust for default if Grantor transfers any of the
Property to a person who is not a permitted transferee without Lender's prior written consent.
"Permitted transferee" means any other person controlling, controlled by, or under common
control with Grantor. Lender shall not exercise this option if federal law as of the date of this
Deed of Trust prohibits such exercise.
21. THIS CONVEYANCE IS MADE AND ACCEPTED SUBJECT TO THE
FOLLOWING CONDITIONS AND RESTRICTIONS:
The Note is the Note required in City Secretary Contract No. between Grantor
and Lender dated 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 residential housing located on the Property and constructed
with a portion of the HOME funds must qualify and remain affordable housing in
accordance with the HOME Program and the HOME Regulations for a specified time
period as more particularly described in the Contract (the "Affordability Period"). The
loan evidenced by the Note and secured by this Deed of Trust will be in default and the
Principal Amount and any other sums due thereunder may be declared immediately
payable if the residential housing located on the Property is not sold to a HOME Eligible
Buyer as more particularly described in the Contract and the HOME Regulations.
This Deed of Trust has also been executed and delivered pursuant to the terms of the
Contract. Grantor agrees to perform each and every obligation set forth therein and will
not permit a default to occur thereunder. Any default in the performance of Grantor's
obligations under the terms of the Contract or the HOME Program or HOME Regulations
shall be deemed a default in the terms of the Note and Lender may declare the debt
secured by this Deed of Trust immediately payable and invoke any remedies provided
herein for default.
23. THE NOTE AND THE DEED OF TRUST CONSTITUTE THE FINAL
DEED OF TRUST—Fort Worth Housing Finance Corporation Page 7
3649 Eagle Nest Street Rev. 9-23-14
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.
FORT WORTH HOUSING FINANCE
CORPORATION
Jesus Chapa, General Manager
STATE OF TEXAS §
COUNTY OF TARRANT §
This instrument was acknowledged before me on , 2014 by
Jesus Chapa, General Manager of the Fort Worth Housing Finance Corporation, a Texas housing
finance corporation, on behalf of said corporation.
Notary Public, State of Texas
AFTER RECORDING RETURN TO:
City of Fort Worth
C/O Housing and Economic Development Department
1000 Throckmorton St.
Fort Worth, Tarrant County, TX 76102
DEED OF TRUST—Fort Worth Housing Finance Corporation Page 8
3649 Eagle Nest Street Rev. 9-23-14
EXHIBIT "A"
DEED OF TRUST—Fort Worth Housing Finance Corporation Page 9
3649 Eagle Nest Street Rev. 9-23-14
PROMISSORY NOTE
Date:
Borrower: Fort Worth Housing Finance Corporation
a Texas housing finance corporation
Borrower's Mailing Address:
1000 Throckmorton Street, Fort Worth, Tarrant County,TX 76102
Lender: City of Fort Worth, Texas, a Texas municipal corporation
Place for Payment:
C/O Director of Housing and Economic Development Department
1000 Throckmorton St.
Fort Worth, Tarrant County, TX 76102
or at any other place that Lender may designate in writing
Principal Amount:
Loan Authority:
The loan evidenced by this Note (the "Loan") is being made pursuant to the HOME
Investment Partnerships Program authorized under Title II of the Cranston-Gonzalez
National Affordable Housing Act of 1990, as amended, 42 USC 12701 et seq. ("HOME
Program") and the HOME Investment Partnerships Program Final Rule, as amended, 24
CFR Part 92 et seq. (the"HOME Regulations")with HOME funds.
Annual Interest Rate: Zero Percent(0%)
Maturity Date:
Terms of Payment(principal and interest):
This Note is the Promissory Note required in City Secretary Contract No.
between Borrower and Lender dated 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 house located on the Property
and constructed with a portion of the HOME funds must qualify and remain affordable
housing in accordance with the HOME Program and the HOME Regulations for a
specified time period as more particularly described in the Contract (the "Affordability
Period"). The Loan will be in default and the Principal Amount and any other sums due
hereunder may be declared immediately payable if all of the residential housing located
on the Property is not sold to HOME Eligible Buyers as more particularly described in
the Contract and the HOME Regulations.
F
This Note is subject to all terms and conditions of the Contract. The Loan will be
forgiven provided that (i)the house is sold to a HOME Eligible Buyer in accordance with
PROMISSORY NOTE-HOME FUNDS Page I
Fort Worth Housing Finance Corporation—3649 Eagle Nest Street Rev.09-23-14
HOME Program requirements, (ii) Lender receives the Sales Proceeds, and(iii) Borrower
is not otherwise in default of the Loan terms or Contract provisions. In the event the
Loan is not forgiven in accordance with the terms of the Contract, the Principal Amount
will be payable in full on the Maturity Date.
Security for Payment:
This Note is secured by a Deed of Trust of even date from Borrower to Vicki S. Ganske
or Leann Guzman, Trustee, both of which cover the following real property:
SEE EXHIBIT "A" ATTACHED HERETO AND INCORPORATED HEREIN FOR
ALL PURPOSES
Other Security for Payment: As set forth in the Contract.
Borrower promises to pay to the order of Lender the Principal Amount if not otherwise
forgiven. This Note is payable at the Place for Payment and according to the Terms of Payment.
All unpaid amounts are due by the Maturity Date, unless otherwise extended as provided for in
the Contract. After maturity, Borrower promises to pay any unpaid principal balance.
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, and any other amounts owed on the Note immediately due. Borrower and each surety,
endorser, and guarantor waive all demand for payment, presentation for payment, notice of
intention to 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 30 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 30 days, Borrower
shall have such period to effect a cure prior to exercise of remedies by Lender under the Loan
documents. If the default is such that it is not reasonably capable of being cured within 30 days, and
if Borrower (a) initiates corrective action within said period, and (b) diligently, continually, and in
good faith works to effect a cure as soon as possible, then Borrower shall have such additional time
as is reasonably necessary to cure the default prior to exercise of any remedies by Lender. In no
event shall Lender be precluded from exercising remedies if its security becomes or is about to
become materially jeopardized by any failure to cure a default or the default is not cured within 180
days after the first notice of default is given.
Notices given to Borrower shall be in writing and delivered to the addresses listed above,
or to such other address as Borrower designates by written notice to Lender. Each such notice or
other communication shall be effective upon receipt when sent by U. S. Mail, postage prepaid
and by certified mail, return receipt requested; or by a nationally recognized overnight delivery
PROMISSORY NOTE-HOME FUNDS Page 2
Fort Worth Housing Finance Corporation—3649 Eagle Nest Street Rev.09-23-14
f
service.
Borrower also promises to pay reasonable attorney's fees and court and other costs if this
Note is placed in the hands of an attorney to collect or enforce the Note. Borrower will pay
Lender these expenses and interest on demand at the Place for Payment. These expenses will
become part of the debt evidenced by the Note and will be secured by any security for payment.
Borrower may prepay this Note at any time before the Maturity Date without penalty or
premium so long as the house located on the Property and constructed with a portion of the
HOME Funds qualifies and remains affordable housing in accordance with the HOME Program
and the HOME Regulations for the applicable Affordability Period specified in the Contract. .
Interest on the debt evidenced by this Note will not exceed the maximum rate or amount
of non-usurious interest that may be contracted for, taken, reserved, charged, or received under
law. Any interest in excess of that maximum amount will be credited on the Principal Amount
or, if the Principal Amount has been paid, refunded. On any acceleration or required or 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, 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 Borrower 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 bankruptcy or insolvency
proceeding is commenced by;Borrower or an Other Obligated Party; (6) (a) a bankruptcy or
insolvency proceeding is commenced against Borrower or an Other Obligated Party and (b) the
proceeding continues without dismissal for 90 days, the party against whom the proceeding is
commenced admits the material allegations of the petition against it, or an order for relief is
entered; (7) any of the following parties is dissolved, begins to wind up its affairs, is authorized
to dissolve or wind up its affairs by its governing body or persons, or any event occurs or
condition exists that permits the dissolution or winding up of the affairs of any of the following
parties: (i) Borrower, or (ii) an Other Obligated Party; and (8) any Collateral Security is
materially impaired by loss, theft, damage, levy and execution, issuance of an official writ or
order of seizure, or destruction, unless it is promptly replaced with insurance proceeds, collateral
security of like kind and quality or restored to its former condition.
The execution and delivery of this Note are required under the Contract.
PROMISSORY NOTE-HOME FUNDS Page 3
Fort Worth Housing Finance Corporation—3649 Eagle Nest Street Rev. 09-23-14
If any provision of this Note conflicts with any provision of the Contract, the Deed of
Trust or any other document evidencing the same transaction between Lender and Borrower, the
provisions of the Contract will govern to the extent of the conflict.
This Note will be construed under the laws of the state of Texas without regard to
choice-of-law rules of any jurisdiction.
[SIGNATURE PAGES IMMEDIATELY FOLLOW]
PROMISSORY NOTE-HOME FUNDS Page 4
Fort Worth Housing Finance Corporation—3649 Eagle Nest Street Rev.09-23-14
FORT WORTH HOUSING FINANCE
CORPORATION
Jesus Chapa, General Manager
s
PROMISSORY NOTE-HOME FUNDS Page 5
Fort Worth Housing Finance Corporation—3649 Eagle Nest Street Rev. 09-23-14
EXHIBIT "A"
PROMISSORY NOTE-HOME FUNDS Page 6
Fort Worth Housing Finance Corporation—3649 Eagle Nest Street Rev. 09-23-14
EXHIBIT "F"
REIMBURSEMENT FORMS
FORT WORTH HOUSING FINANCE CORPORATON
3649 EAGLE NEST STREET
HOME DEVELOPER SINGLE FAMILY CONTRACT—Exhibit"F"—Reimbursement Forms Page I
Fort Worth Housing Finance Corporation—3649 Eagle Nest Street Rev. 9-23-14
Attachment I
INVOICE
Developer: Fort Worth Housing Finance Corporation
Project Site Address: 3649 Eagle Nest Street, Fort Worth, TX 76106
Period of Service:
Amount-
Program,
"This Invoice _ ,Cumulative to'Date
Developer Certification: I certify that the costs incurred are valid and
consistent with the terms and conditions of the contract between City and
Developer. By signing this invoice, I certify that to the best of my
knowledge and belief the data included in this report, Exhibit G, 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:
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EXHIBIT "G"
HOME PROJECT COMPLIANCE REPORT
FORT WORTH HOUSING FINANCE CORPORATION
3649 EAGLE NEST STREET
HOME DEVELOPER SINGLE FAMILY CONTRACT—Exhibit"G"—HOME Project Compliance Report Page 1
Fort Worth Housing Finance Corporation—3649 Eagle Nest Street Rev. 9-18-14
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EXHIBIT "H"
DAVIS BACON REQUIREMENTS-FEDERAL LABOR STANDARDS PROVISIONS
FORT WORTH HOUSING FINANCE CORPORATION
3649 EAGLE NEST STREET
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HOME DEVELOPER SINGLE FAMILY CONTRACT—Exhibit"H"—Davis Bacon Requirements Page 1
Fort Worth Housing Finance Corporation—3649 Eagle Nest Street Rev.9-23-14
Exhibit "Hll
Federal Labor Standards Provisions U.S. Department of Housing
and Urban Development
Office of Labor Relations
Applicability (1) The work to be performed by the classification
The Project or Program to which the construction work requested is not performed by a classification In the wage
covered by this contract pertains is being assisted by the determination; and
United States of America and the following Federal Labor (2) The classification is utilized in the area by the
Standards Provisions are included in this Contract construction industry; and
pursuant to the provisions applicable to such Federal (3) The proposed wage rate, including any bona fide
assistance. fringe benefits, bears a reasonable relationship to the
A. 1. (I) Minimum Wages. All laborers and mechanics wage rates contained in the wage determination.
employed or working upon the site of the work, will be paid (b) If the contractor and the laborers and mechanics to be
unconditionally and not less often than once a week, and employed in the classification (if known), or their
without subsequent deduction or rebate on any account representatives, and HUD or its designee agree on the
(except such payroll deductions as are permitted by classification and wage rate (including the amount
regulations issued by the Secretary of Labor under the designated for fringe benefits where appropriate), a report
Copeland Act (29 CFR Part 3), the full amount of wages of the action taken shall be sent by HUD or its designee to
and bona fide fringe benefits (or cash equivalents thereof) the Administrator of the Wage and Hour Division,
due at time of payment computed at rates not less than Employment Standards Administration, U.S. Department of
those contained in the wage determination of the Labor, Washington, D.C. 20210. The Administrator, or an
Secretary of Labor which is attached hereto and made a authorized representative, will approve, modify, or
part hereof, regardless of any contractual relationship disapprove every additional classification action within 30
which may be alleged to exist between the contractor and days of receipt and so advise HUD or its designee or will
such laborers and mechanics. Contributions made or notify HUD or its designee within the 30-day period that
costs reasonably anticipated for bona fide fringe benefits additional time is necessary. (Approved by the Office of
under Section I(b)(2) of the Davis-Bacon Act on behalf of Management and Budget under OMB control number 1215-
laborers or mechanics are considered wages paid to such 0140.)
laborers or mechanics, subject to the provisions of 29 CFR (c) In the event the contractor, the laborers or mechanics
5.5(a)(1)(iv); also, regular contributions made or costs to be employed in the classification or their
incurred for more than a weekly period (but not less often
than quarterly) under plans, funds, or programs, which representatives, and HUD or its designee do not agree on
be the proposed classification and wage rate (including the
cover the particular weekly period, are deemed w t
constructively made or incurred during such weekly period, amount designated for fringe benefits, where appropriate),
HUD or its designee shall refer the questions, including
Such laborers and mechanics shall be paid the appropriate the views of all interested parties and the recommendation
wage rate and fringe benefits on the wage determination of HUD or its designee, to the Administrator for
for the classification of work actually performed, without determination. The Administrator, or an authorized
regard to skill, except as provided in 29 CFR 5.5(a)(4), representative, will issue a determination within 30 days of
Laborers or mechanics performing work in more than one receipt and so advise HUD or its designee or will notify
classification may be compensated at the rate specified for HUD or its designee within the 30-day period that
each classification for the time actually worked therein: additional time is necessary. (Approved by the Office of
Provided, That the employer's payroll records accurately Management and Budget under OMB Control Number
set forth the time spent in each classification in which 1215.0140.)
work is performed. The wage determination (including any
(d) The wage rate (including fringe benefits where
additional classification and wage rates conformed under
29 CFR 5.5(a)(1)(ii) and the Davis-Bacon poster (WH appropriate) determined pursuant to subparagraphs
1321) shall be posted at all times by the contractor and its (1)(ii)(b) or (c) of this paragraph, shall be paid to all
subcontractors at the site of the work in a prominent and workers performing work in the classification under this
accessible, place where it can be easily seen by the contract from the first day on which work is performed in
workers. the classification.
(11) (a) Any class of laborers or mechanics which is not (Ili) Whenever the minimum wage rate prescribed in the
listed in the wage determination and which is to be contract for a class of laborers or mechanics includes a
employed under the contract shall be classified in fringe benefit which is not expressed as an hourly rate, the
conformance with the wage determination. HUD shall contractor shall either pay the benefit as stated in the
approve an additional classification and wage rate and wage determination or shall pay another bona fide fringe
fringe benefits therefor only when the following criteria benefit or an hourly cash equivalent thereof.
have been met: (iv) if the contractor does not make payments to a trustee
or other third person, the contractor may consider as part
form HUD-4010(06/2009)
Previous editions are obsolete Page 1 of 5 ref.Handbook 1344.1
of the wages of any laborer or mechanic the amount of any communicated in writing to the laborers or mechanics
costs reasonably anticipated in providing bona fide fringe affected, and records which show the costs anticipated or
benefits under a plan or program, Provided, That the the actual cost incurred in providing such benefits.
Secretary of Labor has found, upon the written request of Contractors employing apprentices or trainees under
the contractor, that the applicable standards of the Davis- approved programs shall maintain written evidence of the
Bacon Act have been met. The Secretary of Labor may registration of apprenticeship programs and certification of
require the contractor to set aside in a separate account trainee programs, the registration of the apprentices and
assets for the meeting of obligations under the plan or trainees, and the ratios and wage rates prescribed in the
program. (Approved by the Office of Management and applicable programs. (Approved by the Office of
Budget under OMB Control Number 1215-0140.) Management and Budget under OMB Control Numbers
2. Withholding. HUD or its designee shall upon its own 1215-0140 and 1215-0017.)
action or upon written request of an authorized (11) (a) The contractor shall submit weekly for each week
representative of the Department of Labor withhold or in which any contract work is performed a copy of all
cause to be withheld from the contractor under this payrolls to HUD or its designee if the agency is a party to
contract or any other Federal contract with the same prime the contract, but if the agency is not such a party, the
contractor, or any other Federally-assisted contract contractor will submit the payrolls to the applicant
subject to Davis-Bacon prevailing wage requirements, sponsor, or owner, as the case may be, for transmission to
which is held by the same prime contractor so much of the HUD or its designee. The payrolls submitted shall set out
accrued payments or advances as may be considered accurately and completely all of the information required
necessary to pay laborers and mechanics, including to be maintained under 29 CFR 5.5(a)(3)(i) except that full
apprentices, trainees and helpers, employed by the social security numbers and home addresses shall not be
contractor or any subcontractor the full amount of wages included on weekly transmittals. Instead the payrolls shall
required by the contract In the event of failure to pay any only need to include an individually identifying number for
laborer or mechanic, including any apprentice, trainee or each employee (e.g., the last four digits of the employee's
helper, employed or working on the site of the work, all or social security number). The required weekly payroll
part of the wages required by the contract, HUD or its information may be submitted in any form desired.
designee may, after written notice to the contractor, Optional Form WH-347 is available for this purpose from
sponsor, applicant, or owner, take such action as may be the Wage and Hour Division Web site at
necessary to cause the suspension of any further http://www.dol.coylosalwhdlformslwh347ins(r.htm or its
payment, advance, or guarantee of funds until such successor site. The prime contractor is responsible for
violations have ceased. HUD or its designee may, after the submission of copies of payrolls by all subcontractors.
written notice to the contractor, disburse such amounts Contractors and subcontractors shall maintain the full
withheld for and on account of the contractor or social security number and current address of each
subcontractor to the respective employees to whom they covered worker, and shall provide them upon request to
are due. The Comptroller General shall make such HUD or its designee if the agency is a party to the
disbursements in the case of direct Davis-Bacon Act contract, but if the agency is not such a party, the
contracts. contractor will submit the payrolls to the applicant
3. (1) Payrolls and basic records. Payrolls and basic sponsor, or owner, as the case may be, for transmission to
records relating thereto shall be maintained by the HUD or its designee, the contractor, or the Wage and Hour
contractor during the course of the work preserved for a Division of the Department of Labor for purposes of an
period of three years thereafter for all laborers and investigation or audit of compliance with prevailing wage
mechanics working at the site of the work. Such records requirements. It is not a violation of this subparagraph for
shall contain the name, address, and social security a prime contractor to require a subcontractor to provide
number of each such worker, his or her correct addresses and social security numbers to the prime
classification, hourly rates of wages paid (including rates contractor for its own records, without weekly submission
of contributions or costs anticipated for bona fide fringe to HUD or its designee. (Approved by the Office of
benefits or cash equivalents thereof of the types described Management and Budget under OMB Control Number
in Section I(b)(2)(B) of the Davis-bacon Act), daily and 1215-0149,)
weekly number of hours worked, deductions made and (b) Each payroll submitted shall be accompanied by a
actual wages paid. Whenever the Secretary of Labor has "Statement of Compliance," signed by the contractor or
found under 29 CFR 5.5 (a)(1)(iv) that the wages of any subcontractor or his or her agent who pays or supervises
laborer or mechanic include the amount of any costs the payment of the persons employed under the contract
reasonably anticipated in providing benefits under a plan and shall certify the following:
or program described in Section I(b)(2)(B) of the Davis- (1) That the payroll for the payroll period contains the
Bacon Act, the contractor shall maintain records which information required to be provided under 29 CFR 5.5
show that the commitment to provide such benefits is (a)(3)(ii), the appropriate information is being maintained
enforceable, that the plan or program is financially under 29 CFR 5.5(a)(3)(i), and that such information is
responsible, and that the plan or program has been
correct and complete;
Previous editions are obsolete form HUD4010(06/2009)
Page 2 of 5 ref.Handbook 1344.1
(2) That each laborer or mechanic (including each helper, is not registered or otherwise employed as stated above,
apprentice, and trainee) employed on the contract during shall be paid not less than the applicable wage rate on the
the payroll period has been paid the full weekly wages wage determination for the classification of work actually
earned, without rebate, either directly or indirectly, and performed. In addition, any apprentice performing work on
that no deductions have been made either directly or the job site in excess of the ratio permitted under the
indirectly from the full wages earned, other than registered program shall be paid not less than the
permissible deductions as set forth in 29 CFR Part 3; applicable wage rate on the wage determination for the
(3) That each laborer or mechanic has been paid not less work actually performed. Where a contractor is performing
than the applicable wage rates and fringe benefits or cash construction on a project in a locality other than that in
equivalents for the classification of work performed, as which its program is registered, the ratios and wage rates
specified in the applicable wage determination (expressed in percentages of the journeyman's hourly
incorporated into the contract, rate) specified in the contractor's or subcontractor's
(c) The weekly submission of a properly executed registered program shall be observed. Every apprentice
must be paid at not less than the rate specified in the
certification set forth on the reverse side of Optional Form registered program for the apprentice's level of progress,
WH-347 shall satisfy the requirement for submission of the expressed as a percentage of the journeymen hourly rate
"Statement of Compliance" required by subparagraph specified in the applicable wage determination.
A.3.(ii){b). Apprentices shall be paid fringe benefits in accordance
(d) The falsification of any of the above certifications may with the provisions of the apprenticeship program. if the
subject the contractor or subcontractor to civil or criminal apprenticeship program does not specify fringe benefits,
prosecution under Section 1001 of Title 18 and Section apprentices must be paid the full amount of fringe benefits
231 of Title 31 of the United States Code. listed on the wage determination for the applicable
(111) The contractor or subcontractor shall make the classification. if the Administrator determines that a
records required under subparagraph A.3.(i) available for different practice prevails for the applicable apprentice
inspection, copying, or transcription by authorized classification, fringes shall be paid in accordance with that
representatives of HUD or its designee or the Department determination. In the event the Office of Apprenticeship
of Labor, and shall permit such representatives to Training, Employer and Labor Services, or a State
interview employees during working hours on the job. if Apprenticeship Agency recognized by the Office,
the contractor or subcontractor fails to submit the required withdraws approval of an apprenticeship program, the
records or to make them available, HUD or its designee contractor will no longer be permitted to utilize
may, after written notice to the contractor, sponsor, apprentices at less than the applicable predetermined rate
applicant or owner, take such action as may be necessary for the work performed until an acceptable program is
to cause the suspension of any further payment, advance, approved.
or guarantee of funds. Furthermore, failure to submit the (Ii) Trainees. Except as provided in 29 CFR 5.16,
required records upon request or to make such records trainees will not be permitted to work at less than the
available may be grounds for debarment action pursuant to predetermined rate for the work performed unless they are
29 CFR 5.12, employed pursuant ',to and individually registered in a
4. Apprentices and Trainees. program which has received prior approval, evidenced by
(I) Apprentices. Apprentices will be permitted to work at formal certification by the U.S. Department of Labor,
less than the predetermined rate for the work they Employment and Training Administration. The ratio of
performed when they are employed pursuant to and trainees to journeymen on the job site shall not be greater
individually registered in a bona fide apprenticeship than permitted under the plan approved by the
program registered with the U.S. Department of Labor, Employment and Training Administration. Every trainee
Employment and Training Administration, Office of must be paid at not less than the rate specified in the
Apprenticeship Training, Employer and Labor Services, or approved program for the trainee's level of progress,
with a State Apprenticeship Agency recognized by the expressed as a percentage of the journeyman hourly rate
Office, or if a person is employed in his or her first 90 specified in the applicable wage determination. Trainees
days of probationary employment as an apprentice in such shall be paid fringe benefits in accordance with the
an apprenticeship program, who is not individually provisions of the trainee program. If the trainee program
registered in the program, but who has been certified by does not mention fringe benefits, trainees shall be paid
the Office of Apprenticeship Training, Employer and Labor the full amount of fringe benefits listed on the wage
Services or a State Apprenticeship Agency (where determination unless the Administrator of the Wage and
appropriate) to be eligible for probationary employment as Hour Division determines that there is an apprenticeship
an apprentice. The allowable ratio of apprentices to program associated with the corresponding journeyman
journeymen on the job site in any craft classification shall wage rate on the wage determination which provides for
not be greater than the ratio permitted to the contractor as less than full fringe benefits for apprentices. Any
to the entire work force under the registered program. Any employee listed on the payroll at a trainee rate who is not
worker listed on a payroll at an apprentice wage rate, who registered and participating in a training plan approved by
Previous editions are obsolete form HUD-4010(06/2009)
Page 3 of 5 ref.Handbook 1344.1
I
the Employment and Training Administration shall be paid awarded HUD contracts or participate in HUD programs
not less than the applicable wage rate on the wage pursuant to 24 CFR Part 24.
determination for the work actually performed. In addition, (It) No part of this contract shall be subcontracted to any
any trainee performing work on the job site in excess of person or firm ineligible for award of a Government
the ratio permitted under the registered program shall be contract by virtue of Section 3(a) of the Davis-Bacon Act
paid not less than the applicable wage rate on the wage or 29 CFR 5.12(a)(1) or to be awarded HUD contracts or
determination for the work actually performed. In the participate in HUD programs pursuant to 24 CFR Part 24.
event the Employment and Training Administration
withdraws approval of a training program, the contractor i(Ili) The penalty for making false statements is prescribed
will no longer be permitted to utilize trainees at less than the U.S. Criminal Code, 18 U.S.C. 1001. Additionally,
.S. Criminal Code, Section 1 ra 0, Title 18, U.S.C.,
the applicable predetermined rate for the work performed U
until an acceptable program is approved. "Federal Housing Administration transactions", provides in
part: "Whoever, for the purpose of . . . influencing in any
(ill) Equal employment opportunity. The utilization of way the action of such Administration..... makes, utters or
apprentices, trainees and journeymen under 29 CFR Part 5 publishes any statement knowing the same to be false.....
shall be in conformity with the equal employment shall be fined not more than $5,000 or imprisoned not
opportunity requirements of Executive Order 11246, as more than two years, or both."
amended, and 29 CFR Part 30.
11. Complaints, Proceedings, or Testimony by
5. Compliance with Copeland Act requirements. The Employees. No laborer or mechanic to whom the wage,
contractor shall comply with the requirements of 29 CFR salary, or other labor standards provisions of this Contract
Part 3 which are incorporated by reference in this contract are applicable shall be discharged or in any other manner
6. Subcontracts. The contractor or subcontractor will discriminated against by the Contractor or any
insert in any subcontracts the clauses contained in subcontractor because such employee has filed any
subparagraphs 1 through 11 in this paragraph A and such complaint or instituted or caused to be instituted any
other clauses as HUD or its designee may by appropriate proceeding or has testified or is about to testify in any
instructions require, and a copy of the applicable proceeding under or relating to the labor standards
prevailing wage decision, and also a clause requiring the applicable under this Contract to his employer.
subcontractors to include these clauses in any lower tier B. Contract Work Hours and Safety Standards Act. The
subcontracts. The prime contractor shall be responsible provisions of this paragraph B are applicable where the amount of the
for the compliance by any subcontractor or lower tier prime contract exceeds $100,000. As used in this paragraph, the
subcontractor with all the contract clauses in this terms"laborers"and"mechanics"include watchmen and guards.
paragraph.
(1) Overtime requirements. No contractor or subcontractor
7. Contract termination; debarment. A breach of the contracting for any part of the contract work which may require or
contract clauses in 29 CFR 5.5 may be grounds for involve the employment of laborers or mechanics shall require or
termination of the contract and for debarment as a permit any such laborer or mechanic in any workweek in which the
contractor and a subcontractor as provided in 29 CFR individual is employed on such work to work in excess of 40 hours in
5.12. such workweek unless such laborer or mechanic receives
S. Compliance with Davis-Bacon and Related Act Requirements. compensation at a rate not less than one and one-half times the basic
All rulings and interpretations of the Davis-Bacon and rate of pay for all hours worked in excess of 40 hours in such
Related Acts contained in 29 CFR Parts 1, 3, and 5 are workweek.
herein incorporated by reference in this contract (2) Violation; liability for unpaid wages; liquidated
9. Disputes concerning labor standards. Disputes damages. In the event of any violation of the clause set
arising out of the labor standards provisions of this forth in subparagraph (1) of this paragraph, the contractor
contract shall not be subject to the general disputes and any subcontractor responsible therefor shall be liable
clause of this contract. Such disputes shall be resolved in for the unpaid wages. in addition, such contractor and
accordance with the procedures of the Department of subcontractor shall be liable to the United States (in the
Labor set forth in 29 CFR Parts 5, 6, and 7. Disputes case of work done under contract for the District of
within the meaning of this clause include disputes between Columbia or a territory, to such District or to such
the contractor (or any of its subcontractors) and HUD or territory), for liquidated damages. Such liquidated
its designee, the U.S. Department of Labor, or the damages shall be computed with respect to each individual
employees or their representatives. laborer or mechanic, including watchmen and guards,
10. (I) Certification of Eligibility. By entering into this employed in violation of the clause set forth in
contract the contractor certifies that neither it (nor he or subparagraph (1) of this paragraph, in the sum of$10 for each
she) nor any person or firm who has an interest in the calendar day on which such individual was required or permitted to
contractor's firm is a person or firm ineligible to be work in excess of the standard workweek of 40 hours without payment
awarded Government contracts by virtue of Section 3(a) of of the overtime wages required by the clause set forth in sub
the Davis-Bacon Act or 29 CFR 5.12(a)(1) or to be paragraph (1) of this paragraph.
Previous editions are obsolete form HUD-4010(06/2009)
Page 4 of 5 ref.Handbook 1344.1
(3) Withholding for unpaid wages and liquidated
damages. HUD or its designee shall upon its own action
or upon written request of an authorized representative of
the Department of Labor withhold or cause to be withheld,
from any moneys payable on account of work performed by
the contractor or subcontractor under any such contract or
any other Federal contract with the same prime contract,
or any other Federally-assisted contract subject to the
Contract Work Hours and Safety Standards Act which is
held by the same prime contractor such sums as may be
determined to be necessary to satisfy any liabilities of
such contractor or subcontractor for unpaid wages and
liquidated damages as provided in the clause set forth in
subparagraph (2) of this paragraph.
(4) Subcontracts. The contractor or subcontractor shall
insert in any subcontracts the clauses set forth in
subparagraph (1) through (4) of this paragraph and also a
clause requiring the subcontractors to include these
clauses in any lower tier subcontracts. The prime
contractor shall be responsible for compliance by any
subcontractor or lower tier subcontractor with the clauses
set forth in subparagraphs (1) through (4) of this
paragraph.
C. Health and Safety. The provisions of this paragraph C are
applicable where the amount of the prime contract exceeds$100,000.
(1) No laborer or mechanic shall be required to work in
surroundings or under working conditions which are
unsanitary, hazardous, or dangerous to his health and
safety as determined under construction safety and health
standards promulgated by the Secretary of Labor by
regulation.
(2) The Contractor shall comply with all regulations
issued by the Secretary of Labor pursuant to Title 29 Part
1926 and failure to comply may result in imposition of
sanctions pursuant to the Contract Work Hours and Safety
Standards Act, (Public Law 91-54, 83 Stat 96). 40 USC
3701 et sea.
(3) The contractor shall include the provisions of this
paragraph In every subcontract so that such provisions will
be binding on each subcontractor. The contractor shall
take such action with respect to any subcontractor as the
Secretary of Housing and Urban Development or the
Secretary of Labor shall direct as a means of enforcing
such provisions.
(
i.
Previous editions are obsolete form HUD-4010(0812009)
Page 5 of 5 ref.Handbook 1344.1
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EXHIBIT 11111
Section 3 Summary Report U.S.Department of Housing OMB Approval No: 2529-0043
Economic Opportunities for and Urban Development (exp.11/30/2010)
Low—and Very Low-Income Persons Office of Fair Housing
And Equal Opportunity HUD Field Office:
Section back of page for Public Reporting Burden statement
1.Recipient Name&Address: (street,city,state,zip) 2.Federal Identification: (grant no.) 3.Total Amount of Award:
4.Contact Person 5.Phone: (Include area code)
6.Length of Grant: 7.Reporting Period:
8.Date Report Submitted: 9.Program Code: (Use separate sheet 10. Program Name:
for each program code)
Part I: Employment and Training Columns B,C and F are manda ory fields. Include New Hires in E&F
A B C D E F
Number of Number of New %of Aggregate Number %of Total Staff Hours Number of Section 3
Job Category New Hires Hires that are of Staff Hours of New Hires for Section 3 Employees Trainees
Sec.3 Residents that are Sec.3 Residents and Trainees
Professionals
Technicians
Office/Clerical
Construction by Trade(List)
Trade
Trade
Trade
Trade
Trade
Other List
Total
'Program Codes 3=Public/Indian Housing 4=Homeless Assistance 8=CDBG State Administered
1=Flexible Subsidy A=Development, 5=HOME 9=Other CD Programs
2=Section 202/811 B=Operation 6=HOME State Administered 10=Other Housing Programs
C=Modernization 7=CDBG Entitlement
Page 1 of 2 form HUD 60002(6/2001)
Ref 24 CFR 135
fi
Part[[: Contracts Awarded
1. Construction Contracts:
A. Total dollar amount of all contracts awarded on the project $
B. Total dollar amount of contracts awarded to Section 3 businesses $
C. Percentage of the total dollar amount that was awarded to Section 3 businesses %
D. Total number of Section 3 businesses receiving contracts
2. Non-Construction Contracts:
A. Total dollar amount all non-construction contracts awarded on the projectlactivity $
B. Total dollar amount of non-construction contracts awarded to Section 3 businesses $
C. Percentage of the total dollar amount that was awarded to Section 3 businesses %
D. Total number of Section 3 businesses receiving non-construction contracts
Part III: Summary
Indicate the efforts made to direct the employment and other economic opportunities generated by HUD financial assistance for housing
and community development programs,to the greatest extent feasible,toward low-and very low-income persons,particularly those who
are recipients of government assistance for housing. (Check all that apply.)
Attempted to recruit low-income residents through: local advertising media,signs prominently displayed at the project site,
contracts with the community organizations and public or private agencies operating within the metropolitan area(or
nonmetropolitan county)in which the Section 3 covered program or project is located,or similar methods.
Participated in a HUD program or other program which promotes the training or employment of Section 3 residents.
Participated in a HUD program or other program which promotes the award of contracts to business concerns which meet the
definition of Section 3 business concerns.
Coordinated with Youthbuild Programs administered in the metropolitan area in which the Section 3 covered project is located.
Other;describe below.
Public reporting for this collection of information is estimated to average 2 hours per response,including the time for reviewing instructions,
searching existing data sources,gathering and maintaining the data needed,and completing and reviewing the collection of information.
This agency may not collect this information,and you are not required to complete this form,unless it displays a currently valid OMB
number.
Section 3 of the Housing and Urban Development Act of 1968,as amended,12 U.S.C.1701 u,mandates that the Department ensures that
employment and other economic opportunities generated by its housing and community development assistance programs are directed
toward low-and very-low income persons,particularly those who are recipients of government assistance housing. The regulations are
found at 24 CFR Part 135. The information will be used by the Department to monitor program recipients'compliance with Section 3,to
assess the results of the Department's efforts to meet the statutory objectives of Section 3,to prepare reports to Congress,and by
recipients as self-monitoring tool. The data is entered into a database and will be analyzed and distributed. The collection of information
involves recipients receiving Federal financial assistance for housing and community development programs covered by Section 3. The
information will be collected annually to assist HUD in meeting its reporting requirements under Section 808(e)(6)of the Fair Housing Act
and Section 916 of the HCDA of 1992. An assurance of confidentiality is not applicable to this form. The Privacy Act of 1974 and OMB
Circular A-108 are not applicable. The reporting requirements do not contain sensitive questions. Data is cumulative;personal identifying
information is not included.
Page 2 of 2 form HUD 60002(11/2010)
Ref 24 CFR 135
Form HUD-60002,Section 3 Summary Report,Economic Opportunities for Low-and Very Low-Income Persons.
Instructions: This form is to be used to report annual 8. Program Code: Enter the appropriate program code as listed at
accomplishments regarding employment and other economic the bottom of the page.
opportunities provided to low-and very low-income persons under 9. Program Name: Enter the name of HUD Program corresponding
Section 3 of the Housing and Urban Development Act of 1968. The with the"Program Code"in number 8.
Section 3 regulations apply to any public and Indian housing
programs that receive: (1)development assistance pursuant to Part I: Employment and Training Opportunities
Section 5 of the U.S.Housing Act of 1937;(2)operating assistance Column A: Contains various job categories. Professionals are
pursuant to Section 9 of the U.S.Housing Act of 1937;or(3) defined as people who have special knowledge of an occupation(i.e.
modernization grants pursuant to Section 14 of the U.S.Housing Act supervisors,architects,surveyors,planners,and computer
of 1937 and to recipients of housing and community development programmers). For construction positions,list each trade and provide
assistance in excess of$200,000 expended for: (1)housing data in columns B through F for each trade where persons were
rehabilitation(including reduction and abatement of lead-based paint employed. The category of"Other"includes occupations such as
hazards);(2)housing construction;or(3)other public construction service workers.
projects;and to contracts and subcontracts in excess of$100,000 Column B: (Mandatory Field) Enter the number of new hires for
awarded in connection with the Section-3-covered activity. each category of workers identified in Column A in connection with
Form HUD-60002 has three parts,which are to be completed for this award. New hire refers to a person who is not on the contractor's
all programs covered by Section 3. Part I relates to employment or recipient's payroll for employment at the time of selection for the
and training.The recipient has the option to determine numerical Section 3 covered award or at the time of receipt of Section 3 covered
employment/training goals either on the basis of the number of hours assistance.
worked by new hires(columns B,D,E and F). Part II of the form Column C: (Mandatory Field) Enter the number of Section 3 new
relates to contracting,and Part III summarizes recipients'efforts to hires for each category of workers identified in Column A in
comply with Section 3. connection with this award. Section 3 new hire refers to a Section 3
Recipients or contractors subject to Section 3 requirements must resident who is not on the contractor's or recipient's payroll for
maintain appropriate documentation to establish that HUD financial employment at the time of selection for the Section 3 covered award or
assistance for housing and community development programs were at the time of receipt of Section 3 covered assistance.
directed toward low-and very low-income persons.* A recipient of Column D: Enter the percentage of all the staff hours of new hires
Section 3 covered assistance shall submit one copy of this report to (Section 3 residents)in connection with this award.
HUD Headquarters,Office of Fair Housing and Equal Opportunity. Column E: Enter the percentage of the total staff hours worked for
Where the program providing assistance requires an annual Section 3 employees and trainees(including new hires)connected
performance report,this Section 3 report is to be submitted at the with this award. Include staff hours for part-time and full-time
same time the program performance report is submitted. Where an positions.
annual performance report is not required,this Section 3 report is to be Column F: (Mandatory Field) Enter the number of Section 3
submitted by January 10 and,if the project ends before December 31, residents that were trained in connection with this award.
within 10 days of project completion. Only Prime Recipients are Part II: Contract Opportunities
required to report to HUD. The report must include Block 1: Construction Contracts
accomplishments of all recipients and their Section 3 covered Item A: Enter the total dollar amount of all contracts awarded on the
contractors and subcontractors. project/program.
HUD Field Office: Enter the Field Office name. Item B: Enter the total dollar amount of contracts connected with this
1. Recipient: Enter the name and address of the recipient project/program that were awarded to Section 3 businesses.
submitting this report. Item C: Enter the percentage of the total dollar amount of contracts
2. Federal Identification: Enter the number that appears on the connected with this project/program awarded to Section 3 businesses.
award form(with dashes). The award may be a grant, Item D: Enter the number of Section 3 businesses receiving awards.
cooperative agreement or contract. Block 2: Non-Construction Contracts
3. Dollar Amount of Award: Enter the dollar amount,rounded to the Item A: Enter the total dollar amount of all contracts awarded on the
nearest dollar,received by the recipient. project/program.
4&5. Contact Person/Phone: Enter the name and telephone number Item B: Enter the total dollar amount of contracts connected with this
of the person with knowledge of the award and the recipient's project awarded to Section 3 businesses.
implementation of Section 3. Item C: Enter the percentage of the total dollar amount of contracts
6. Reporting Period: Indicate the time period(months and year) connected with this project/program awarded to Section 3 businesses.
this report covers. Item D: Enter the number of Section 3 businesses receiving awards.
7. Date Report Submitted: Enter the appropriate date. Part III: Summary of Efforts—Self-explanatory
Submit one(1)copy of this report to the HUD Headquarters Office of
Fair Housing and Equal Opportunity,at the same time the The Secretary may establish income ceilings higher or lower than 80 percent
performance report is submitted to the program office. The Section 3 of the median for the area on the basis of the Secretary s findings such that
report is submitted by January 10. Include only contracts executed variations are necessary because of prevailing levels of construction costs
during the period specified in item 8. PHAs/IHAs are to report all or unusually high-or low-income families. Very low-income persons mean
contracts/subcontracts. low-income families(including single persons)whose incomes do not
exceed 50 percent of the median family income area,as determined by the
The terms"low-income persons"and very low-income persons"have Secretary with adjustments or smaller and larger families,except that the
the same meanings given the terms in section 3(b)(2)of the United Secretary may establish income ceilings higher or lower than 50 percent of
States Housing Act of 1937. Low-income persons mean families the median for the area on the basis of the Secretary's findings that such
(including single persons)whose incomes do not exceed 80 percent of variations are necessary because of unusually high or low family incomes.
the median income for the area,as determined by the Secretary,with
adjustments for smaller and larger families,except that
Page 1 form HUD 60002(1112010)
Ref 24 CFR 135
EXHIBIT "J"
STANDARDS OF COMPLETE DOCUMENTATION
FORT WORTH HOUSING FINANCE CORPORATION
3649 EAGLE NEST STREET
i
E
HOME DEVELOPER SINGLE FAMILY CONTRACT—Exhibit"J"—Standards of Complete Documentation Page 1
Fort Worth Housing Finance Corporation—3649 Eagle Nest Street Rev.9-23-14
FORT FORTH.
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
• Master Settlement Statement
• Appraisal or other document used to determine purchase price
• Proof of Payment(bank statement/cancelled 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.gov verifying
contractor/subcontractor is not listed 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.
CHDO Operating/Project Delivery • 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
I
• 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 4/24/2013 Pagel
FORTWORTH.
Standard of Documentation for Reimbursement of Development Costs
Construction Costs (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 check)
• 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 report(s) conducted by HED Inspector
• Copy of executed agreements
- Provide printout from www.sam.gov verifying
contractor/subcontractor is not listed 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.
I
• 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
(i.e. income docs for eligible homebuyer, sales contract between
developer/homebuyer, HAP Deed of Trust w/required affordability period
language, etc)
I
Housing and Economic Development
FINAL as of 4/24/2013 Page 2