HomeMy WebLinkAboutContract 45058-A3 CITY SECRETARY
CONTRACT NO.
�I VTHIRD AMENDMENT TO CITY SECRETARY CONTRACT NO. 45058
WHEREAS, on October 30, 2013 the City of Fort Worth ("City") and Tarrant County
Housing Partnership, Inc. ("Developer") made and entered into City Secretary Contract No.
45058(the "Contract"), as authorized by the City Council in M&C C-25531 adopted on March
27, 2012 which provided $1,115,000.00 of City's HOME funds to Developer for the
development and construction of up to 10 single family houses in the Hillside-Morningside
neighborhood;
WHEREAS,the funding provided to Developer in the Contract was from a grant received
by the City from the United States Department of Housing and Urban Development through the
HOME Investment Partnership Program, Catalog of Federal Domestic Assistance No. 14.239;
WHEREAS, a portion of the City's HOME funds are reserved for the use of certain
housing development entities that qualify under the HOME Regulations as a Community
Housing Development Organization("CHDO") and Developer is qualified as a CHDO under the
HOME Regulations;
WHEREAS, Developer requested $117,000.00 of HOME CHDO funds for the
construction of a single family house located at 1113 E. Baltimore to be sold to HOME Eligible
Buyers under the terms and conditions set forth in the Contract;
WHEREAS, the First Amendment increased the line item amounts in Exhibit "B" -
Project and Reimbursement Schedule and in Exhibit "C" - Budget due to unforeseen
additional costs for the project increasing the total amount of HOME Funds to $125,000.00;
WHEREAS, the Second Amendment increased the line item amounts listed in Exhibit
"B" - Budget and extended the Completion Deadline in Exhibit "C" - Project and
Reimbursement Schedule due to scheduling issues and the rise in price for construction
materials for the project as well as the environmental review for this house, which required noise
mitigation which was inadvertently not detailed in the Contract;
WHEREAS, Developer has requested a Third Amendment to the Contract because the
house has been sold to a HOME Eligible Buyer to amend the construction budget to reflect the
final expenses for the project, including the actual amounts of each line item and the actual
amounts of the seller-paid closing costs as shown on the Closing Disclosure;
WHEREAS, it is the mutual desire of City and Developer to amend the Contract to
complete the project and meet Contract objectives.
NOW THEREFORE, City and Developer hereby agree as follows:
I.
The terms "Completion Deadline" and "HOME Funds" in Section 2. DEFINITIONS are
amended to be and read as follows:
CONTRACT AMENDMENT 3 to CSC No.45058 OFFICIAL RECORD Page 1
Tarrant County Housing Partnership,Inc.—1113 E.Baltimore CITY SECRETARY ev. 10/2016
FT.WORTH,TX
"Completion Deadline means October 31, 2016."
"Home Funds means the HOME Program grant funds supplied by City to
Developer under the terms of this Contract not to exceed $170,763.51,
which includes the costs set forth in Exhibit "B" — Budget and the
Developer Fee."
II.
Section 4.1 is amended to be and read as follows:
"4.1 Provide HOME Funds. City shall provide Developer up to
$155,239.55 of HOME Funds in the form of the Loan for eligible expenses for the
development of the house under the terms and conditions described herein."
The first sentence of Section 17. INSURANCE AND BONDING is amended to be and
read as follows:
"Developer will maintain coverage in the form of insurance or bond in the amount
of $155,239.55 to insure against loss from the fraud, theft or dishonesty of any of
Developer's officers, agents, trustee, directors or employees."
III.
Exhibit "B" - Budget Revised 9/2015, and Exhibit "C" - Project and Reimbursement
Schedule Revised 9/2015 attached to the Contract are hereby replaced with Exhibit `B" -
Budget Revised 10/2016, and Exhibit "C" - Project and Reimbursement Schedule Revised
10/2016 attached hereto.
IV.
This amendment is effective as of the Effective Date of the Contract, except that the
amendment to Section 17 is effective as of the date of this amendment.
VII.
All other terms and conditions of City Secretary Contract No. 45058 not amended herein
remain unaffected and in full force and effect, are binding upon the Parties, and are hereby
ratified by the Parties. Capitalized terms not defined herein shall have meanings assigned to
them in the Contract.
[SIGNATURES APPEAR ON NEXT PAGE]
CONTRACT AMENDMENT 3 to CSC No.45058 Page 2
Tarrant County Housing Partnership,Inc.— 1113 E.Baltimore Rev. 10/2016
ACCEPTED AND AGREE
ATTEST: ,y OF FORT WORTH
°n cP
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City Se 's Fernando Costa, Assistant City Manager
M&C C-25531 Date: 3/27/201 Date: �o
Form 1295: N/A
APPROVED AS TO FORM AND LEGALITY:
2 ,
Paige Me ane,Assistant City Attorney
TARRANT COUNTY HOUSING
PARTNERSHIP, a Texas non-profit corporation
By:
Donna VanNess, President
Date:
OFFICIAL IRECORD
CITY SECRETARY
FT.WORTH,71S
CONTRACT AMENDMENT 3 to CSC No.45058 Page 3
Tarrant County Housing Partnership,Inc.— 1113 E.Baltimore Rev. 10/2016
ACCEPTED AND AGREED:
ATTEST: CITY OF FORT WORTH
By:
City Secretary Fernando Costa, Assistant City Manager
M&C C-25531 Date: 3/27/2012 Date:
Form 1295: N/A
APPROVED AS TO FORM AND LEGALITY:
Paige Mebane, Assistant City Attorney
TARRANT COUNTY HOUSING
P RTNE exas r it coi ration
By:
V ss, residen
Date:
OFFICIAL RECORD
CITY SECRETARY
yT.NORTH,TX
CONTRACT AMENDMENT 3 to CSC No.45058 Page 3
Tarrant County Housing Partnership, Inc.— 1 1 13 E. Baltimore Rev. 10/2016
EXHIBIT "B"
BUDGET REVISED 10/2016
TARRANT COUNTY HOUSING PARTNERSHIP, INC.
1113 E. BALTIMORE
Development Budget
Use of Funds Source of Funds
HOME$ OTHER$ SOURCE OF OTHER TOTAL$
FUNDS FUNDS FUNDS FUNDS
(1) (2) (Names) (1+2)
Predevelopment Cost
1. Market Study
2. Feasibility(i.e.: preliminary work
write-up, cost estimates, design) 793.44 793.44
3. Other
Total Predevelopment Cost(1+2+3) 793.44 793.44
Development Cost
4. Land and/or building acquisition 4,990.90 4,990.90
5. Site Preparation 44.84 44.84
6. Construction Cost 149,020.78 149,020.78
7.Architect&Engineering Fees 389.59 389.59
8.Listing/Closing costs 5,552.00 Proceeds of Sale 5,552.00
Total Development Cost(Total of items 154,446.11 159,998.11
4-8)
Total Predevelopment and 155,239.55 160,791.55
Development Funds
Developer Fee(10% of Total
Predevelopment and Development 15,523.96 15,523.96
Funds Funds)
Total with Developer Fee 170,763.51 176,315.51
*Developer Fee shall be paid from HOME Funds by invoice after the closing of the sale of the house to a HOME
Eligible Buyer. The Developer Fee consists of 10% of the total of HOME Funds Total Predevelopment and
Development Funds.
**Seller-paid closing costs as shown on the Closing Disclosure paid from gross sales proceeds from the sale of the
house.
CONTRACT AMENDMENT 3 to CSC No.45058 Page 4
Tarrant County Housing Partnership, Inc.—1113 E. Baltimore Rev. 10/2016
EXHIBIT "C"
PROJECT AND REIMBURSEMENT SCHEDULE REVISED 10/2016
TARRANT COUNTY HOUSING PARTNERSHIP, INC.
1113 E. BALTIMORE
Phase Activity Beginning Week—subject to
weather permitting
PHASE I ACTIVITIES: Contract signed
Land and/or Building Acquisition 4,990.90
Construction-lumber,roofing, drywall,
fencing, paint, appliances, doors, windows 43,221.01
PHASE I DEADLINE:
9/30/2014 1st Payment*
$48,211.91*
PHASE H ACTIVIITES: Architectural&Engineering 375.00
Construction-site preparation, mobilization, 14,499.93
bond
Site Preparation 44.84
PHASE II DEADLINE:
03/31/2015 2°d Payment* $14,919.77*
PHASE III ACTIVHTES: Architectural&Engineering 14.59
Construction-foundation,plumbing 20,948.17
PHASE III DEADLINE: 3rd Payment* $20,962.76*
8/31/2015
Construction-drywall painting,plumbing,
PHASE N ACTIVIITES: 24,615.32
electrical, framing
PHASE IV DEADLINE: 4th Payment* $24,615.32*
10/31/2015
Construction—HVAC, Electrical, Trim,
PHASE V ACTIVITIES: Painting, Drive and Approach, Grading, 35,069.17
Fence,Flooring
PHASE V DEADLINE: 5th Payment* $35,069.17*
2/29/2016
PHASE VI ACTIVITIES: Feasibility 793.44
Construction-Landscape, Final Grade 10,667.18
PHASE VI DEADLINE: FINAL PAYMENT $11,460.62*
8/31/2016
CONSTRUCTION TOTAL $155,239.55
DEVELOPER FEE** Paid after closing of sale to HOME Eligible $15,523.96
Buyer
*Developer will be reimbursed for eligible expenses only. The amounts are estimates and are subject to change.
**10% of project related development costs as shown on Exhibit"C"-Budget.
CONTRACT AMENDMENT 3 to CSC No.45058 Page 5
Tarrant County Housing Partnership, Inc.— 1113 E. Baltimore Rev. 10/2016
M&C Review Page 1 of 3
Official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA F° H
COUNCIL ACTION: Approved on 3/27/2012
DATE: 3/27/2012 REFERENCE C-25531 NAME:LOG 17TCHP_HILLSIDEWORNINGSIDE_10
CODE: C TYPE: NOW PUBLIC NO
CONSENT HEARING:
SUBJECT: Authorize Expenditure in the Amount of$1,115,000.00 of HOME Investment Partnerships
Program Grant Funds to Tarrant County Housing Partnership, Inc., for the Development
of Ten Single Family Houses in the Hillside-Morningside Neighborhood, Authorize
Execution of Conditional Commitments and Contracts (COUNCIL DISTRICT 8)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize substitution of funding years in order to meet commitment, disbursement and
expenditure deadlines for grant funds from the United States Department of Housing and Urban
Development;
2. Authorize expenditure of $1,115,000.00 in HOME Investment Partnerships Program Grant funds
as allocated in the 2011-2012 Action Plan to Tarrant County Housing Partnership, Inc., a certified
Community Housing Development Organization, for the development of up to ten single family
houses in the Hillside-Morningside neighborhood;
3. Authorize execution of conditional commitments with Tarrant County Housing Partnership, Inc.,
that conditions funding, among other things, on satisfactory completion of HOME Investment
Partnerships Program requirements;
4. Authorize execution of contracts with the Tarrant County Housing Partnership, Inc., for the project
for a three year term beginning on the date of execution of the contract;
5. Authorize extension or renewal of the conditional commitment(s) or the contract(s) if Tarrant
County Housing Partnership, Inc., requests an extension and such extension is necessary for
completion of the project; and
6. Authorize amendment of the conditional commitment(s) or the contract(s) if necessary to achieve
project goals provided that the amendment is within the scope of the project and in compliance with
City policies and applicable laws and regulations governing the use of federal grant funds.
DISCUSSION:
On May 14, 2011, the City issued a Request for Proposals(RFP)for certified Community Housing
Development Organizations (CHDO) to award and expend up to $1,261,931.00 of HOME Investment
Partnerships Program Grant funds. On November 18, 2011, the Tarrant County Housing
Partnership, Inc., (TCHP) submitted a response requesting $617,884.00 of the available HOME funds
to acquire 17 sites on which it proposed to construct single family houses. The request also included
funds for CHDO operating expenses.
Staff reviewed all RFP submissions and recommended the award to TCHP of$1,115,000.00 in
HOME funds to the Community Development Council (CDC) at its meeting held on May 25, 2011.
http://apps.cfwnet.org/council_packet/mc review.asp?ID=16625&councildate=3/27/2012 10/19/2016
M&C Review Page 2 of 3
The CDC agreed with Staffs funding recommendation for the Project. Up to $100,000.00 of the
awarded funds will be used for operating expenses and $1,008,943.10 for construction of 10 houses
and other development expenses including the developer fee, which is based on the cost of
construction.
TCHP plans to develop up to 10 single family houses to be located in the Hillside-Morningside
neighborhood. There are three floor plan options available varying in square footage from
approximately 1300 to 1600 square feet with three bedrooms, two baths and a rear detached garage.
The houses will be sold to an individual or family that earns 80 percent or less of Area Median
Income as determined by the United States Department of Housing and Urban Development
(HUD). Buyers must meet all HOME Program requirements, including applying for and receiving at
least$1,000.00 in down payment and/or closing cost assistance from the City's Homebuyer
Assistance Program and occupying the house as their primary residence for five years.
City Staff recommends the following Contract terms:
i. Construction must begin within six months of date of contract execution;
ii. TCHP's performance under the contract and use of the HOME funds will be secured by a
recorded
Deed of Trust;
iii. Houses must be sold to a HOME eligible buyer; and
iv. TCHP will be allowed a 10 percent developer's fee based on the cost to construct the houses.
The expenditure of HOME funds is conditioned upon the following:
i. Satisfactory completion of the environmental review per 24 CFR Part 58; and
ii. Authorization to use grant funds from HUD.
The Action Plan's funding years for federal funds selected may vary and be substituted based on the
principle of First In, First Out(FIFO) in order to expend oldest grant funds first. The HOME funds
may be used for any eligible costs related to the development.
Staff recommends the expenditure up to $1,115,000.00 in HOME funds for the Project to benefit low
and very low income citizens by providing affordable housing. A public comment period on the
expenditure of these HOME funds was held from June 28, 2011 to July 27, 2011. Any comments are
maintained by the Housing and Economic Development Department in accordance with federal
regulations.
This project is located in COUNCIL DISTRICT 8.
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that funds are available in the current operating
budget, as appropriated, of the Grants Fund.
TO Fund/Account/Centers FROM Fund/Account/Centers
GR76 539120 017206531090 $100,000.00 GR76 539120 017206531030 $100.000.00
GR76 539120 017206531100 $1,008,943.10 GR76 539120 017206531040 $1,008,943.10
GR76 539120 005206123100 $6,056.90 GR76 539120 005206123970 $6,056.90
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Jay Chapa (5804)
Cynthia Garcia (8187)
http://apps.cfwnet.org/council_packet/mc—review.asp?ID=l 6625&councildate=3/27/2012 10/19/2016
M&C Review Page 3 of 3
Additional information Contact: Fabiola Suarez (6811)
ATTACHMENTS
17TCHP.MAP.pdf
http://apps.cfwnet.org/council_paexet/mc review.asp?ID=16625&councildate=3/27/2012 10/19/2016