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CONTRACT NO. ,
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AMENDMENT TO CITY SECRETARY
CONTRACT NO. 25612
STATE OF TEXAS §
COUNTY OF TARRANT §
THIS Agreement is made and entered into by and between the City of Fort Worth ("City"),
acting by and through Libby Watson, its duly authorized Assistant City Manager, and the Near
Southeast Community Development Corporation Inc. (NSECDC) by and through Shirley Lewis, its
duly authorized Executive Director. Contractor's business address is P.O. Box 1872, Fort Worth,
Texas 76101.
WHEREAS the City and NSECDC have entered into an original contract identified as City
Secretary Contract No 22137 for a period beginning from September 18, 1996 and ending April 30,
1999 to provide the acquisition, rehab and resale of three houses in the Near Southeast Model Blocks
for first-time homebuyers pursuant to a grant received from the United States Department of Housing
and Urban Development ("HUD") through the Home Investment Partnerships ("HOME") Program
and;
WHEREAS the said contract expires by its terms on April 30, 1999 and was extended for six
months to October 30, 1999 through City Secretary Contract No. 25463, and
WHEREAS the City Secretary Contract No. 25463 was amended on February 10, 2000 to
extend the expiration date for another year through City Secretary Contract No. 25612, and
WHEREAS it is the mutual desire of the parties to amend said City Secretary Contract No.
25612.
NOW, THEREFORE, THIS AGREEMENT FURTHER WITNESSETH:
That,the parties covenant and agree as follows:
1 GENERAL PROVISIONS
1.1 Purpose
Section 1.1.1 under"General Provisions" of Section 1 of City Secretary Contract No. 25612,
currently on file in the office of the City Secretary of Fort Worth is hereby amended to read as
follows:
1.1.1 The express purpose of this agreement is to provide Contractor with Home funds not to
NSCDC CHDO Contract Amendment March 2001
exceed a total of Two Hundred Two Thousand Five Hundred Ninety Five Dollars,
($202,595.00). Of this, One Hundred Sixty Six Thousand Five Hundred Ninety Five Dollars
($166,595.00) are for the acquisition, rehabilitation and resale of three (3) houses within the
Near Southeast area for first-time homebuyers. Up to Thirty Six Thousand Dollars ($36,000)
are for the administration of the program including the payment of insurance premiums
required to operate the housing development projects. Only balances not spent before this
current amendment and an additional $6,000 will be made available throup-h this
amended contract.
Payments will be processed by City following receipt from Contractor, Sub-Grantees Request
for Funds, and applicable supporting documents. Eligible operating expenses shall be made
against the line item for which it was budgeted. Contractor agrees to utilize all disbursed
CDBG funds for the benefit of the program.
1.2. Duration/Period of Affordability
Section 1.2.1 under section 1.2"Duration/Period of Affordability" of City Secretary Contract
No. 25612, currently on file in the office of the City Secretary of Fort Worth is hereby
amended to read as follows:
1.2.1 This Contract begins on the date of execution with the acquisition, rehabilitation and resale of
three (3) properties to be completed 6 months from the date of execution of this
amendment. These houses should remain affordable through the period of affordability.
Affordability means that the actual principal interest, property taxes, and insurance (PITT) for
the purchase does not exceed thirty percent (30%) of the monthly adjusted income of a family
with an income that is at or below eighty percent (80%) of the median family income of the
area, adjusted for family size as established by HUD.
EXCEPT SPECIFICALLY AMENDED HEREIN, ALL OTHER TERMS AND
CONDITIONS OF THE CONTRACT REMAIN UNCHANGED AND CONTINUE IN
FULL FORCE AND EFFECT.
NSCDC CHDO Contract Amendment March 2001 2
1 � ���� ��
IN WITNESS WHEREOF, the parties heretohav executed four copies of this contract in
Fort Worth, Tarrant County, Texas, this J� (� day of AD. 20
APPROVED AS TO FORM AND LEGALITY:
By:
Assistant City Attorney
ATTEST: CITY OF FORT WORTH
By: 0�,�Ij7
Ci ecretary 4-JI-01
By:
�$TbbAyyv W son, Assistant City Manager
_.._. 0 - J 3 q qA
Contract Authorization
Date
ATTEST: NEAR SOUTHEAST COMMUNITY
DEVELOPMENT CORPORTION
B ,�
AShirl m i
s,, xecutive Director
NSCDC CHDO Contract Amendment March 2001 L EEO
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day
personally appeared Libby Watson, known to me to be the person whose name is subscribed to the
foregoing instrument, and acknowledged to me that the same was the act of the City of Fort Worth and
that she executed the same as the act of said City of Fort Worth for the purposes and consideration
therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this Vat day of
A.D. 200!
��'�!a. ROSELLA BARNES
(�'
? % NOTARY PUBLIC
, j*' State of Texas
9 'h }Comm.Exp. 03-31-2005
Notary Public in and for the State of Texas
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day
personally appeared Shirley Lewis, known to me to be the person whose name is subscribed to the
foregoing instrument, and acknowledged to me that he executed the same for the purposes and
consideration therein expressed, as the act and deed of Near Southeast Community Development
Corporation and in the capacity therein stated as its duly authorized officer or representative.
GIVEN
r�UNDER MY HAND AND SEAL OF OFFICE this C' day of
A.D. 20 .
ARTHCIRW 13 A!'ITOh`.JR. ft V
�41"Oy Punkt.Stag of Texas
My Cbmm?s Expires
MAY 2- Not Public in and for the State of Texas
-2-2004 �
NSCDC CHDO Contract Amendment March 2001
City of Fort Worth, Texas
"avow andounciiCommunicationC
DATE REFERENCE NUMBER LOG NAME PAGE
3/6/01 C-18492 05EXTEND 1 of 3
SUBJECT EXTENSION AND AMENDMENT OF COMMUNITY DEVELOPMENT BLOCK GRANT
AND COMMUNITY HOUSING DEVELOPMENT ORGANIZATION CONTRACTS WITH
THE NEAR SOUTHEAST COMMUNITY DEVELOPMENT CORPORATION
RECOMMENDATION:
It is,recommended that the City Council:
1. Authorize the City Manager to extend Community Development Block Grant (CDBG) (City Secretary
Contract No. 25613) and Community Housing Development Organization (CHDO) Contracts (City
Secretary Contract No. 25612) with the Near Southeast Community Development Corporation, Inc.
(NSECDC); and
2. Authorize the contract performance period to begin on the date of contract execution and end six
months thereafter for the CHDO contract and twelve months thereafter for the CDBG contract; and
3. Authorize extension of the contracts if the NSECDC requests a further extension; and
4. Authorize amendment of the NSECDC CHDO contract to add an additional $6,000 from the CHDO
Support (Operating) Fund to help the NSECDC pay for rising insurance costs.
DISCUSSION:
CHDO CONTRACT
The NSECDC is the development arm of the Near Southeast Model Blocks. After receiving the $1.2
million award, the Model Blocks residents created and empowered the NSECDC to carry out on their
behalf, community development activities including housing and economic development projects. The
NSECDC is also a Community Housing Development Organization (CHDO) certified by the City to cavy
housing development projects.
On April 23, 1996 (M&C C-15417), the City Council approved an award of $196,595.00 in HOME
CHDO funds to the NSECDC. This included $166,595 for the NSECDC to acquire, rehabilitate and sell
three houses to first-time homebuyers and-$30,000 for operating support. The City of Fort Worth
contracted these funds with the NSECDC on September 20, 1996 with City Secretary Contract No.
22137. The contract has been extended twice and expired February 13, 2001.
The NSECDC has completed the rehabilitation of two houses. One house, at 900 East Leuda, has
been sold. The NSECDC is working with several buyers and hopes to,close on the second house at
1114 East Terrell by the end of February 2001. The third house is currently under rehabilitation and will
be completed before the end of February. Because of the age, poor condition, and historic
characteristics of the houses, the NSECDC had difficulty finding contractors which delayed completion
of this project. Furthermore, once rehabilitation began, the units were frequently burglarized and
vandalized, causing the contractors to redo work that had been completed.
*&
City of Fort Worth, Texas
"ayor ung Council Communication
)ATE REFERENCE NUMBER LOG NAME PAGE
3/6/01 C-18492 05EXTEND 2 of 3
SUBJECT EXTENSION AND AMENDMENT OF COMMUNITY DEVELOPMENT BLOCK GRANT
AND COMMUNITY HOUSING DEVELOPMENT ORGANIZATION CONTRACTS WITH
THE NEAR SOUTHEAST COMMUNITY DEVELOPMENT CORPORATION
The NSECDC has a balance of$72,382 in program funds to finish up their project. Since the signing of
the original contract, the City has increased the minimum insurance requirements resulting in insurance
cost increases. These requirements include workers compensation, fidelity bond, general liability and
auto insurance. The Housing Department has agreed to add $6,000 from the CHDO Support Fund to
help offset the increased insurance costs. This will increase the NSECDC's CHDO balance to $78,382
(see the attached budget).
CDBG CONTRACT
On July 18, 1997 (M&C C-16184), the City Council authorized $414,500 in CDBG funds for the
NSECDC. The City contracted these funds with the NSECDC on September 8, 1997 through City
Secretary Contract No. 23064. That contract was later amended to City Secretary Contract No. 24705
to add an additional $151,701, thus giving the NSECDC a spending authority of $566,201. The current
balance in this fund is $278,897 (see the attached budget). No change in the budget is proposed at
this time. The objectives in the CDBG contract are to (1) acquire 15 vacant lots for housing
development, (2) acquire, rehabilitate and sell 5 houses to first-time homebuyers, and (3) undertake
economic development activities.
Vacant Lots and Housing The NSECDC has independently acquired 13 vacant lots and 5
additional lots through a partnership with the Bank of America Community Development
Corporation (BACDC). The NSECDC is currently negotiating the purchase of 5 more lots, 2 from
private owners, and 3 from the Fort Worth Housing Finance Corporation (HFC). BACDC will build
new homes on these lots.
Acquisition. Rehab, Resale - The NSECDC has acquired 4 of the 5 houses required under the
CDBG contract, and 3 of the 4 are under construction (924 East Leuda, 1100 East Humbolt and
1136 East Cannon). A contract for rehabilitation on the fourth house (1205 East Leuda) will be
executed before the end of February 2001. The NSECDC expects to close on the 5th house soon.
Economic Development - The NSECDC proposes to link their economic development with the
redevelopment of Evans Avenue. It plans to develop a telecommuting center to train area residents
in computing. Graduates will be able to perform data entry, computer billing, medical transcription,
and other telecommunication services. As an initial step, the NSECDC opened the computer
center in October 2000 through a partnership with the United Way, IBM, Computer Innovations of
Dallas, and Volunteers In Service To America (VISTA).
The NSECDC also proposes to create an office complex for non-profit organizations and small
businesses on or near the Evans Avenue redevelopment area. It has acquired 1 building and 2 lots.
The building (908 East Humbolt) is a two-story structure that can be used for office space after
rehabilitation. NSECDC plans to move and rehabilitate a donated building for office space to one of the
lots. The rehabilitation of these buildings is projected to be completed by September 2001.
City of Fort Worth, Texas
"avow and Council Communication
DATE REFERENCE NUMBER LOG NAME PAGE
3/6/01 C-18492 05EXTEND 3 of 3
SUBJECT EXTENSION AND AMENDMENT OF COMMUNITY DEVELOPMENT BLOCK GRANT
AND COMMUNITY HOUSING DEVELOPMENT ORGANIZATION CONTRACTS WITH
THE NEAR SOUTHEAST COMMUNITY DEVELOPMENT CORPORATION
The NSECDC has made substantial progress in achieving its objectives under the CHDO and CDBG
contracts and requested a year's extension of both contracts to complete their goals. Staff
recommends that the CHDO contract be extended for six months and the CDBG contract for 12 months
from the date of execution of the contracts.
The Near Southeast Model Blocks is located in COUNCIL DISTRICT 8.
The Safety and Community Development Committee approved this recommendation at its meeting on
February 13, 2001.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that upon approval of the above recommendations, funds will be available
in the current operating budget, as appropriated, of the Grants Fund.
LW:k
Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: (to) APPROVED
Libby Watson 6183 GR76 539120 005206113140 $6,000.00 CITE' COUNCIL
Originating Department Head:
MAR 8 2001
Jerome Walker 7537 (from) �� ))
GR76 539120 005206113090 $6,000.00 . lXrw�a/
Additional Information Contact: City Secretary of flee
City of Fort Worth,Texas
Jerome Walker 7537