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HomeMy WebLinkAboutContract 33369 CITY SECRETARY 3 3 3G 9 CONTRACT NO. STATE OF TEXAS § COUNTY OF TARRANT § THIS contract ("Contract") is made and entered into between the City of Fort Worth ("City"), whose address is 1000 Throckmorton St.,Fort Worth TX 76102,acting by and through Dale A.Fisseler,its duly authorized Assistant City Manager,and the Fort Worth Central Community Development Corporation ("FWCCDC"),whose address is 1000 Throckmorton St.,Fort Worth 76102,acting by and through Brian K. Dennison,its duly authorized Board Member. (Sometimes City and FWCCDC are referred to individually as a"Party" and collectively as the"Parties"). WHEREAS,the City of Fort Worth has received grant monies from the United States Department of Housing and Urban Development("HUD")under Title 1 of the Housing and Community Development Act of 1974, as amended, (42 USC 5301 et seq.) for utilization in connection with its Community Development Block Grant Program ("CDBG"), Program No. B-04-MC-48-0010, to benefit low to moderate-income families; WHEREAS, one of the national objectives of the CDBG Program is to benefit low and moderate income citizens of Fort Worth(the "National Objective"); WHEREAS, the Catalog of Federal Domestic Assistance ("CFDA") assigned Community Development Block Grants/Entitlement Grants number 14.218; WHEREAS, the citizens of the City and the City Council have determined that the creation of a private sector loan fund providing home rehabilitation loans to eligible homeowners in the City will support the City's strategies for neighborhood revitalization,particularly in the Central City as defined in Mayor and Council Communication G-12976 and other targeted areas; WHEREAS,FWCCDC has been formed as a legal entity that will establish and manage a loan fund called the Fort Worth Central Community Development Corporation Housing Rehabilitation Loan Fund (the"Loan Fund")that will provide housing rehabilitation loans to homeowners in the City earning up to 120%of the HUD Area Median Income. The target market of the Loan Fund is the Central City and low and moderate-income homeowners desiring home improvement,renovation and refinance,or purchase and rehabilitation loans that will revitalize City neighborhoods. No less than 60% of the loans made by the Loan Fund shall be made to the targeted population and area; and WHEREAS, the City has committed $700,000 from its CDBG Year XX][X and XXX funds in support of the goals of the FWCCDC. NOW,THEREFORE,THIS AGREEMENT FURTHER WITNESSETH: THAT the Parties agree as follows: 1. Scope of Services a. City will disburse SIX HUNDRED FIFTY THOUSAND AND NO/1 LABS($650,000.00) CDBG v J Y, Rev 7-28-05 Fort Worth Central Community Development Corporation Operating Agreement 22�! of its SEVEN HUNDRED THOUSAND AND NO/100 DOLLARS ($700,000.00) CDBG Year XXIX and XXX funds ("CDBG Funds") to FWCCDC to use to establish loan loss reserves for repurchase of defaulted loans and subsidies to reduce interest rates for loans to qualified low to moderate-income borrowers for FWCCDC's Housing Rehabilitation Loan Fund(the"Program"). b. The term of the Contract shall be for five (5) years beginning on the date of execution of this Contract by the Parties. This Contract may be extended for multiple annual terms to achieve Program objectives. FWCCDC shall request the extension in writing at least sixty(60)days prior to the end of the Contract term. City may approve the extension of the Contract for additional one (1) year terms. It is specifically understood that it is within City's sole discretion whether to approve or deny the request for any additional term. c. FWCCDC will administer and disburse the CDBG Funds in accordance with the terms of this Contract and the CDBG regulations contained in 24 CFR Part 570("CDBG Regulations")as well as all applicable federal,state,and local laws and regulations. FWCCDC will administer the Loan Fund in accordance with Exhibit A-Policy Statement,and the Loan Fund's Program Guidelines and Procedures. d. FWCCDC agrees to meet the National Objective of activities benefiting low and moderate-income individuals,and to maintain full documentation supporting fulfillment ofthis National Objective in its files. e. City will monitor and evaluate FWCCDC's performance using the goals and performance standards required in this Contract and the CDBG Regulations. Substandard performance as determined by City monitoring will require corrective action. If action to correct such substandard performance is not taken by FWCCDC within a reasonable period of time after being notified in writing by City, contract suspension or termination will be initiated in accordance with the provisions of this Contract. f. On an interim basis,not to exceed two (2) years, City will provide staffing for the Program at no cost to FWCCDC. Such staff support shall include administrative and operations staff functions more particularly described in Exhibit B—City Staffing Support. FWCCDC in its reasonable discretion shall approve the City employees performing the staffing support functions, and FWCCDC shall have the right of control and direction over such City employees for purposes of performing such staff support functions when said City employees are working on the Program. Such support staff shall be adequate to perform the functions described in Exhibit B and the projected loan production within generally accepted time frames. The failure of any City employee performing staff support functions for FWCCDC to observe the Program Guidelines and Procedures, including but not limited to any policies regarding confidentiality, shall be grounds for disapproval by FWCCDC of such staff person. g. City will execute a Home Improvement Loan Fund Commitment for Loan Repurchase (each a "Repurchase Agreement") for each Program Loan (as defined below) to which the loan loss reserves established by the CDBG Funds will apply. Each Repurchase Agreement will be in substantially the form attached hereto as Exhibit C—Commitment for Loan Repurchase, and will evidence the obligations of City hereunder with respect to such Program Loan for a period of five(5)years from the date of such Program Loan. Each Repurchase Agreement shall be for the benefit of FWCCDC or any subsequent holder of a note evidencing a Program Loan. As used herein, the term "Program Loan" means a loan given under the Program to a qualified low to moderate-income borrower and which is eligible for the loan repurchase commitment or subsidy to reduce interest rate as provided herein 11 ��1�J t ���uN@ a�i U C' Gti. 1: V CDBG Nn Rev 7-28-05 Fort Worth Central Community Development Corporation Operating Agreement C1TY ,IC ���� LY I `r:`P�1 �7l't li�Gte 2. Compensation and Method ofPayment a. City will disburse CDBG Year XXIX and XXX funds in an amount not to exceed SIX HUNDRED FIFTY AND NO/100 DOLLARS ($650,000.00)to FWCCDC on an advancement of funds basis for use as a loan loss reserve for repurchase of defaulted loans and for subsidies to reduce interest rates for qualified borrowers. City will(i)establish a loan loss reserve for repurchase of defaulted loans for five(5)years from the date of loan origination on certain loans made by the Loan Fund, and(ii)provide zero-percent loan financing(sometimes referred to herein as a subsidy or subsidies) to reduce interest rates for qualified borrowers. City will be a participant in each Program Loan in which it provides zero percent loan financing (i.e., a subsidy) to reduce the interest rate to the extent of its portion of the financing of such Program Loan. FWCCDC will establish a loan loss reserve escrow account. The City's loan loss reserve for repurchase of defaulted loans and FWCCDC's loan loss reserve escrow account shall be implemented and managed in accordance with the Program Guidelines and Procedures as adopted by FWCCDC's Board. b. Program Loans eligible for the five-year loan repurchase commitment by City and borrowers eligible for the loan subsidy for a reduced interest rate shall be those Program Loans to borrowers whose property is located in the Central City and whose household income, adjusted for family size, is equal to or less than 80% of the Area Median Family Income ("AMFI") as published annually by HUD. City shall process payment by City to FWCCDC either under a Repurchase Agreement or for subsidies to reduce interest rates after City's receipt of a written request from FWCCDC for the transfer of funds in accordance with Program Guidelines and Procedures. c. FWCCDC agrees to utilize all disbursed CDBG Funds for the benefit of the Program and in accordance with the Policy Statement and Program Guidelines and Procedures. FWCCDC may not make material changes to the Policy Statement and Program Guidelines and Procedures without thirty(30)days'written notice to City. No material change shall be made to those portions of the Program Guidelines and Procedures pertaining to City's obligations to provide the loan loss reserve for the Repurchase Agreements and subsidies to reduce interest rates described herein without City's written consent,which consent shall not be unreasonably withheld. d. It is understood that the City's obligation for loan loss reserves for the Repurchase Agreements and subsidies to reduce interest rates for the Program is SIX HUNDRED FIFTY THOUSAND AND NO/100($650,000.00)and that FWCCDC will obtain the remaining funds necessary for the Loan Fund in excess of the CDBG Funds from its shareholder's equity investments, loans and grants obtained from investor banks and other lending institutions, and Federal and other funds as approved by the FWCCDC's Board. e. FWCCDC agrees to keep all CDBG Funds on hand in a separate numbered account in a financial institution having federal deposit insurance coverage. All financial records shall be maintained according to CDBG Regulations and all other applicable Federal,state and City laws,ordinances, regulations and guidelines. E FWCCDC will not commingle CDBG Funds with any other funds in any manner that would prevent City from readily identifying expenditures for operation of the Program. m CDBG Rev 7-28-05 Fort Worth Central Community Development Corporation Operating Agreement 3 3. Uniform Administrative Requirements and Program Management Standards a. Financial Management i. Accounting Standards FWCCDC agrees to comply with 24 CFR Part 84 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. ii. Cost Principles FWCCDC shall administer the Program in conformance with OMB Circular A-122, "Cost Principles for Non-Profit Organizations" and attachments and revisions thereto, regarding principles for determining costs for the Program. b. Documentation and Record Keeping i. Requirement FWCCDC shall maintain all records pertinent to the activities to be funded under this Contract required by CDBG Regulations in 24 CFR Part 570.506. In addition,FWCCDC agrees to keep records*to fully document all expenditures charged to the CDBG portion of the Program. The documentation must support the amounts charged to the Program and demonstrate that the expenditures were appropriate to the stated goals of the Program and allowable under applicable Federal, state and City guidelines. ii. Retention (1)All records pertaining to the Program shall be retained for five (5) years following the termination of this Contract. FWCCDC may destroy Program records at the end of this five (5)year period if no outstanding audit finding exists. (2)FWCCDC will retain Program loan records until(5)years after the expiration of any loan. iii. Real Property Records FWCCDC shall maintain real property inventory records that clearly identify any properties purchased, improved, or sold. Any real properly retained shall meet eligibility criteria and shall conform to the requirements of 24 CFR Part 570.505. iv. Close Outs FWCCDC's obligation to City shall not end until all closeout requirements are completed. Activities during this closeout period shall include, but are not limited to: making final payments,disposing of Program assets(including the return of all unused materials,equipment, unspent cash advances, Program income balances, and accounts receivable to City), and determining the custodianship of records. v. Audits and Inspections (1) City,HUD,and the United States Comptroller General,or their representatives,shall each have access to any books, documents, records and papers relating to the operations of FWCCDC under this Contract for the purpose of audit, examination, exception and transcription at all reasonable hours at all offices of FWCCDC. (2) All non-federal entities that expend$500,000 or more in Federal funds within one(1)year, regardless of the source of the Federal award,must submit to City an annual audit prepared in accordance with specific reference to OMB Circular A-133, "Audits of States, Local Governments, and Non-Profit Organizations". The audit may cover either FWCCDC's fiscal year during which this Contract is in force or cover the period of this Contract. The audit must be prepared by an independent certified publi ted within CDBG �%' ��'� � � rN ev 7-28-05 Fort Worth Central Community Development Corporation Operating Agreement o � twelve(12)months following the end of the period being audited and be submitted to City within thirty(30)days of its completion. FWCCDC's audit certification is attached hereto as Exhibit D - Audit Certification Form and Audit Requirements. The Audit Certification Form must be submitted to City within sixty(60) days of the end of period being audited (FWCCDC's fiscal year). Costs of preparation of this audit may be an allowable expenditure of Federal funds in an amount proportional to that of the Federal funds used in FWCCDC's total agency operating budget. Non-profit entities that expend less than$500,000 a year in Federal funds are exempt from Federal audit requirements for that year,but records must be available for review or audit by appropriate officials of the Federal agency, City, and General Accounting Office ("GAO"). (3) City reserves the right to perform an audit of FWCCDC's Program operations and finances at any time during the term of this Contract,if City determines that such audit is necessary for City's compliance with OMB Circular A-133. FWCCDC agrees to allow access to all relevant materials. If such audit reveals a questioned practice or expenditure, such questions must be resolved within fifteen(15)days after notice to FWCCDC. If questions are not resolved within this period,City reserves the right to withhold further funding under this and/or future contract(s)with FWCCDC. (4) If as a result of any audit it is determined that FWCCDC has misused, misapplied or misappropriated all or any part of the CDBG Funds,FWCCDC agrees to reimburse City the amount of such monies so misused,misapplied or misappropriated,plus the amount of any sanction,penalty or other charge levied against City because of such misuse,misapplication or misappropriation. 4. Reporting Procedures a. Program Income FWCCDC agrees that any program income from operation of the Program in proportion to the amount of CDBG Funds received hereunder will be expended prior to expending CDBG Funds and that any such program income is subject to the terms of this Contract. For purposes of this Contract,"program income"means gross income received by FWCCDC that is directly generated from the use of the CDBG Funds, including but not limited to interest income and as more particularly defined by 24 CFR Part 570.500 (a) . The use of program income shall comply with the requirements of 24 CFR Part 570.504. FWCCDC may expend CDBG Funds only if program income is insufficient to meet all eligible Program expenses. FWCCDC agrees to return to City at the end of the Contract any remaining program income earned from operation of the Program in proportion to the amount of CDBG Funds received. b. Progress Reports FWCCDC will submit to City on a quarterly basis a Performance Report for services and activities undertaken by FWCCDC in performance of this Contract. The report will be signed by a duly authorized agent of FWCCDC and submitted by the 15tb day of the month following the quarter that is reported. c. Procurement i Compliance FWCCDC shall comply with City policy concerning the purchase of equipment and shall maintain inventory records of all non-expendable personal property,as defined by such policy, IBG procured with funds provided under this Contract. 61)F II,Iy��I � ��J�1 E0 p�^ Rev 7-28-OSFortWorth Central Community Development Corporation Operating Agreem O0�y t �5UU ' 0 ii. OMB Standards FWCCDC shall procure all materials,property,or services in accordance with the requirements of 24 CFR Part 84,Procurement Standards and Property Management Standards as modified by 24 CFR Part 570.502(b)(6), covering utilization and disposal of property. 5. Reversion ofAssets a. FWCCDC agrees to return to City any Unused CDBG Funds(as defined below) at the end of the Contract. Notwithstanding the preceding sentence, the expiration or other termination of this Contract shall in no event negate the obligations of City as evidenced by a Repurchase Agreement issued in connection with a specific Program Loan; each Repurchase Agreement shall continue in full force and effect for the term specified in such Repurchase Agreement notwithstanding the expiration or termination of this Contract. As used in this Contract, the term "Unused CDBG Funds" means the original amount of the CDBG Funds as specified in Section la above,less any CDBG Funds actually expended to fund the subsidies to reduce interest rates in accordance with this Contract; Unused CDBG Funds shall include that portion of FWCCDC's loan loss reserve account funded by CBDG Funds. b. Any property purchased with CDBG Funds under this Contract will be used solely for operation of the Program. FWCCDC agrees to obtain City approval prior to purchase of property. FWCCDC agrees to notify City upon receipt of property so that it may be properly tagged and inventoried. Title to such property will be vested with the City,and,at the termination of the Program for which CDBG Funds have been received,FWCCDC will deliver all such property to City for disposition at City's sole discretion. 6. Lead Based Paint Requirements a. All rehabilitation and construction activities must comply with the Lead-Based Paint Poisoning Prevention Act,42 USC 4801 et seq.,the Residential Lead-Based Paint Hazard Reduction Act of 1992,42 USC 4851 et seq., and the implementing regulations at 24 CFR Part 35. Inspection and abatement work shall be carried out by contractors and workers certified and trained under the Texas Department of Health,Environmental Lead Branch. This includes inspectors,risk assessors, abatement and hazard reduction contractors. b. FWCCDC and all contractors shall comply with appropriate HUD and EPA regulations regarding lead-based paint notification, disclosure, or work practices during lead hazard control activities. 7. Applicable Laws a. Federal FWCCDC agrees to comply with the following laws and the applicable regulations as they are currently written or are hereafter amended during performance of this Contract: • Title VI of the Civil Rights Act of 1964 (42 USC 2000d et seq.) • Title VIII of the Civil Rights Act of 1968 (42 USC 3601 et seq.) • Executive Orders 11063 and 11246,as amended by Executive Orders 11375 and 12086 and as supplemented by41 CFR Part 60 CDBG Rev 7-28-05 Fort Worth Central Community Development Corporation Operating Agreeme t v 1 c u.. • The Age Discrimination in Employment Act of 1967 (29 USC621 et seq.) • The Age Discrimination Act of 1975 (42 USC 6101 et seq) • Section 504 of the Rehabilitation Act of 1973 (29 USC 794 et seq.) and 24 CFR Part 8 where applicable • National Environmental Policy Act of 1969, as amended,42 USC 4321 et seq. ("NEPA")and the related authorities listed 24 CFR Part 58 • The Clean Air Act, as amended, (42 USC 7401 et seq.), the Clean Water Act of 1977, as amended(33 USC 1251 et seq.)and the related EPA regulations at 40 CFR Part 15,as amended from time to time, and Executive Order 11738. 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. • The Immigration Reform and Control Act of 1986 (8 USC 1101 et seq), specifically including the provisions requiring employer verification of the legal status of its employees • The Housing and Community Development Act of 1987 (42 USC 5301 et seq.) • The Americans with Disabilities Act of 1990(42 USC 12101 et seq.),the Architectural Barriers Act of 1968, as amended, (42 USC 4151 et seq.), and the Uniform Federal Accessibility Standards, 24 CFR Part 40,Appendix A • Drug Free Workplace Act of 1988 (41 USC 701 et seq.) and 24 CFR Part 23, Subpart F • Regulations as 24 CFR Part 87 related to lobbying,including the requirement that certifications and disclosures be obtained from all covered persons • 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 b. Section 3 of the Housing and Urban Development Act of 1968, as amended, (12 USC 170lu et seq) and its related regulations at 24 CFR Part 135 As the work to be performed under this Contract is on a project assisted under a program providing direct Federal financial assistance from HUD, Section 3 of 24 CFR 135.38("Section 3")requires that the following clause be inserted in all covered contracts ("Section 3 Clause"): "A. The work to be performed under this contract is subject to the requirements of section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u(section 3). The purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD-assisted projects covered by Section 3, shall, to the greatest extent feasible,be directed to low-and very low-income persons,particularly persons who are recipients of HUD assistance for housing. B. The parties to this contract agree to comply with HUD's regulations in 24 CFR Part 135,which implement Section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the Part 135 regulations. C. The contractor agrees to send to each labor organization or representative of workers with which the contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers' representative 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 CDBG v�, ���1`�1� }� �� ev 7-28-OS Fort Worth Central Community Development Corporation Operating Agreement 0TY r i fw .. ,I, IVt _-Al 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 apprenticeship 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 to include this section 3 clause in every subcontract subject to compliance with regulations 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 a finding that the subcontractor is in violation of the regulations in 24 CFR Part 135. The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR Part 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 require employment opportunities to be directed,were not filled to circumvent the contractor's obligations under 24 CFR Part 135. F. Noncompliance with HUD's regulations in 24 CFR Part 135 may result in sanctions, termination of this contract for default,and debarment or suspension from future HUD assisted contracts. G. With respect to work performed in connection with Section 3 covered Indian housing assistance, section 7(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C.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 7(b)agree to comply with Section 3 to the maximum extent feasible,but not in derogation of compliance with section 7(b)." City and FWCCDC 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 Program,binding upon the City and the FWCCDC, and their respective successors, assigns and subcontractors. Failure to fulfill these requirements shall subject FWCCDC and its 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. c. Other Laws FWCCDC covenants and agrees that its officers, members, agents, employees, Program participants and subcontractors shall abide by and comply with all other laws, federal, state and local,relevant to the performance of this Contract,including all applicable City ordinances,rules and regulations and the Housing and Community Development Act of 1974 (42 USC 5301(c)et seq.), as amended, and all related regulations. FWCCDC further promises and agrees that it has read,and is familiar with,terms and conditions of the Community Development Block Grant under which CDBG Funds are granted and that it will fully comply with them. It is agreed and understood that,if City notifies FWCCDC of any such violation on the part of FWCCDC or any of CDBG IJ �v�J�`. li �v Rev 7-28-05 Fort Worth Central Community Development Corporation Operating Agreement its officers,members,agents,employees,Program participants or subcontractors,then FWCCDC shall immediately desist from and correct such violation. 8. Nondiscrimination a. FWCCDC will not unlawfully discriminate against any person or persons because of sex, race, religion, age, disability, color, national origin, or familial status, nor will FWCCDC permit its officers, members, agents, employees, subcontractors or Program participants to engage in such discrimination. b. FWCCDC covenants that neither it nor any of its officers,members,agents,employees,Program participants or subcontractors,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 except on the basis of bona fide occupational qualification, retirement plan or statutory requirement. c. FWCCDC further covenants that neither it nor its officers, members, agents, employees, subcontractors,Program participants,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. d. In accordance with the provisions of the Americans With Disabilities Act of 1990 ("ADA"), FWCCDC warrants that it and any and all of its subcontractors 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 FWCCDC,or employees of FWCCDC or any of its subcontractors. FWCCDC 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 or subcontractors against City arising out of FWCCDC's and/or its subcontractors'alleged failure to comply with the above-referenced laws concerning disability discrimination in the performance of this Contract. e. This Contact is made and entered into with reference specifically to the ordinances codified at Chapter 17,Article III,Division 3, "Discrimination in Employment Practices", of the City Code, and FWCCDC hereby covenants and agrees that FWCCDC, its officers, members, agents, employees and subcontractors have fully complied with all provisions of same and that no employee,employee-applicant or Program participant has been discriminated against by the terms of such ordinances by either FWCCDC or its officers, members, agents, employees or subcontractors. 9. Prohibition Against Interest a. No member, officer or employee of City or its designees or agents; no member of the governing body of the locality in which the Program is situated;and no other public official of such locality or localities, who exercises any functions or responsibilities with respect to the Program funded hereunder during his or her tenure or for one year thereafter, shall have any interest, direct or indirect, in any contract or subcontract, or the proceeds the - - to be erformed CDBG ? i 1� v7 Fort Worth Central Community Development Corporation Operating Agreement q -� - hereunder. FWCCDC shall incorporate,or cause to be incorporated,like language prohibiting such interest in all contracts and subcontracts entered into in connection with the Program. b. No member,officer,employee,or Program participant of FWCCDC or its subcontractors shall have a financial interest,direct or indirect,in this Contract or the CDBG Funds transferred hereunder or be financially interested, directly or indirectly, in the sale to FWCCDC of any land, materials, supplies or services purchased with any CDBG Funds transferred hereunder, except on behalf of FWCCDC,as an officer,employee,member or Program participant. Any willful violation of this paragraph with the knowledge, expressed or implied, of FWCCDC or its subcontractors shall render this Contract voidable by the City. 10. Minority and Women Business Enterprise Commitment FWCCDC agrees to use all reasonable efforts to comply with the City's policy to involve Minority and Women Business Enterprises ("M/WBEs") in all phases of its procurement practices and to provide them,wherever practicable,an 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. FWCCDC agrees to incorporate City Ordinance No. 15530, and all amendments or successor policies thereto,into all contracts and will further require all persons or entities with whom it contracts to comply with said ordinance. 11. Non Assignment No assignment of this Contract by FWCCDC shall be effective without City's prior written approval. Any purported assignment without such approval will be a breach of this Contract and void in all respects. Any delegation of normal mortgage lending duties by FWCCDC will be in accordance with Federal regulations and City policies and with usual and customary lending practices of similar lending institutions. 12. Independent Contractor a. FWCCDC shall operate hereunder as an independent contractor and not as an officer,agent,servant or employee of City. FWCCDC shall have exclusive control of,and the exclusive right to control, the details of the work and services performed hereunder, and all persons performing same, and shall be solely responsible for the acts and omissions of its officers, members, agents, servants, employees,subcontractors,Program participants,licensees or invitees. The doctrine of respondeat superior shall not apply as between City and FWCCDC, its officers, members, agents, servants, employees,subcontractors,Program participants,licensees or invitees,and nothing herein shall be construed as creating a partnership or joint enterprise between City and FWCCDC. Itis expressly understood and agreed that no officer,member,agent,employee,subcontractor,licensee or invitee of the FWCCDC,nor any Program participant hereunder,is in the paid service of City and that City does not have the legal right to control the details of the tasks performed hereunder by FWCCDC, its officers, members, agents, employees, subcontractors, Program participants, licensees or invitees. b. City shall in no way nor under any circumstances be responsible for any property belonging to FWCCDC, its officers, members, agents, employees, subcontractors, Program participants, licensees or invitees,which may be lost,stolen,destroyed or in any way damaged;and FWCCDC CDBG r, .i, r��r� v 7-28-05 Fort Worth Central Community Development Corporation Operating Agreement hereby indemnifies and holds harmless City and its officers, agents, and employees from and against any and all claims or suits regarding such property. 13. Indemnirication and Release FWCCDC 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 OF THE PROGRAM 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 FWCCDC 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 KIND OR CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN CONNECTION WITH THE EXECUTION, PERFORMANCE, ATTEMPTED PERFORMANCE OR NON-PERFORMANCE OF THIS CONTRACT AND AGREEMENT AND/OR THE OPERATIONS, ACTIVITIES AND SERVICES OF THE PROGRAMS DESCRIBED HEREIN,WHETHER OR NOT CAUSED IN WHOLE OR IN PART,BY ALLEGED NEGLIGENCE OF OFFICERS,AGENTS,SERVANTS, EMPLOYEES,CONTRACTORS OR SUBCONTRACTORS OF CITY. FWCCDC LIKEWISE COVENANTS AND AGREES TO AND DOES HEREBY INDEMNIFY AND HOLD HARMLESS CITY FROM AND AGAINST ANY AND ALL INJURY, DAMAGE OR DESTRUCTION OF PROPERTY OF CITY,ARISING OUT OF OR IN CONNECTION WITH ALL ACTS OR OMISSIONS OF FWCCDC, ITS OFFICERS, MEMBERS, AGENTS, EMPLOYEES, SUBCONTRACTORS, INVITEES, LICENSEES, BORROWED SERVANTS OR PROGRAM PARTICIPANTS. IT IS THE EXPRESS INTENTION OF THE PARTIES,BOTH FWCCDC AND CITY,THAT THE INDEMNITY PROVIDED FOR IN THIS SECTION INCLUDES INDEMNITY BY FWCCDC TO INDEMNIFY AND PROTECT CITY FROM THE CONSEQUENCES OF CITY'S OWN NEGLIGENCE,WHETHER THAT NECLIGENCE IS ALLEDGED TO BE THE SOLE OR CONCURRING CAUSE OF THE INJURY,DAMAGE OR DEATH. FWCCDC 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 TH2 TRA N IF THE CDBGev7-28-05 Fort Worth Central Community Development Corporation Operating Agreementy INJURY, DEATH, DAMAGE OR LOSS IS CAUSED BY THE CITY'S SOLE OR CONCURRENT NEGLIGENCE. FWCCDC SHALL REQUIRE ALL OF ITS SUBCONTRACTORS TO INCLUDE IN THEIR SUBCONTRACTS A RELEASE AND INDEMNITY IN FAVOR OF THE CITY IN SUBSTANTIALLY THE SAME FORM AS ABOVE. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN,THE INDEMNIFICATION PROVIDED HEREIN SHALL NOT APPLY TO ANY LOSS RESULTING FROM FRAUD, THEFT OR DISHONESTY OF ANY OFFICER,AGENT, SERVANT,BORROWED SERVANT,EMPLOYEE,CONTRACTOR OR SUBCONTRACTOR OF CITY ACTING ON BEHALF OF FWCCDC. IN THE EVENT OF THE LIABILITY OF FWCCDC TO CITY UNDER THE INDEMNIFICATION OBLIGATIONS PROVIDED IN THS SECTION, CITY AGREES TO LOOK SOLELY TO THE ASSETS OF FWCCDC FOR SATISFACTION OF SUCH LIABILITY. IN NO EVENT WHATSOEVER WILL THE SHAREHOLDERS,INVESTORS, OFFICERS, DIRECTORS, AGENTS, OR EMPLOYEES OF FWCCDC HAVE ANY PERSONAL LIABILITY FOR THE INDEMNIFICATION OBLIGATIONS PROVIDED IN THIS SECTION 13. WITHOUT LIMITING THE GENERALITY OF THE PRECEDING SENTENCE, THE FAILURE OF FWCCDC TO OBSERVE ANY CORPORATE FORMALITIES WILL NOT EXPOSE THE SHAREHOLDERS,INVESTORS,OFFICERS OR DIRECTORS OF FWCCDC TO ANY PRSONAL LIAIBLITY HEREUNDER 14. Insurance and Bonding a. FWCCDC shall furnish to City, in a timely manner, certificates of insurance as proof that it has secured and paid for policies of commercial insurance where necessary. Such insurance shall cover all insurable risks incident to or in connection with the execution, performance, attempted performance or nonperformance of this Contract where commercially reasonable. FWCCDC shall maintain the following coverages and limits thereof: i. Commercial General Liability Insurance $1,000,000 each occurrence $2,000,000 aggregate limit ii. Additional Requirements Such insurance amounts shall be revised upward at City's option if required by CDBG Regulations or general City policies for similar contracts and FWCCDC shall revise such amounts within thirty(30)days following notice to FWCCDC of such requirements. FWCCDC will submit to City documentation that it has obtained insurance coverage and has executed bonds as required in this Contract and prior to payment of any monies hereunder. Each insurance policy shall be endorsed to provide City with a maximum sixty(60) day's notice of cancellation, non-renewal, and/or material change in policy terms or coverage. Insurance policies required herein shall be endorsed to include the City as an additional insured as its interests may appear. Additional insured parties shall include employees,officers,agents,and volunteers of the City of Fort Worth. CDBG �' Rev 7-28-05 aap i � Fort Worth Central Community Development Corporation Operating Agreement 12 C b. Any failure on part of the 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 FWCCDC'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 business in the state of Texas. Insurers shall be acceptable to the 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 unless otherwise approved by City. Deductible limits on insurance policies shall not exceed$5,000 per occurrence unless otherwise approved by City. c. In the event there are any local, federal or other regulatory insurance or bonding requirements for the Program, and such requirements exceed those specified herein, the former shall prevail. d. FWCCDC shall agree to require any subcontractors to maintain applicable insurance coverages, limits, and other requirements as those specified herein; and, FWCCDC shall require any subcontractors to provide FWCCDC with certificate(s)of insurance documenting such coverage. Also, FWCCDC shall require any subcontractors to have City and FWCCDC endorsed as additional insured(as their interests may appear) on their respective insurance policies. 15. Waiver oflmmunity If FWCCDC is a charitable or nonprofit organization and has or claims an immunity or exemption (statutory or otherwise)from and against liability for damages or injury,including death,to persons or property; FWCCDC hereby expressly waives its rights to plead defensively such immunity or exemption against City. This section shall not be construed to affect a governmental entity's immunities under constitutional, statutory or common law. 16. Termination a. In addition to,and not in substitution for,other provisions of this Contract regarding the provision of public services with CDBG funds, pursuant to Title I of the Housing and Community Development Act of 1974,(42 U.S.C.5301 (c)et seq.),as amended,it is expressly understood and agreed by and between the Parties that this Contract is wholly conditioned upon the actual receipt by City of Federal CDBG Year XXXIX and XXX funds;that all monies distributed to FWCCDC hereunder shall be exclusively from Federal monies received under City's grant and not from any other monies of City;and that if such funds under City's grant are not timely forthcoming,in whole or in part, City may, at its sole discretion, terminate this Contract and City shall not be liable for payment for any work or services performed by FWCCDC under or in connection with this Contract. b. City may terminate this Contract whenever such termination is determined to be in City's best interest by giving written notice to FWCCDC in accordance with Section I6e below. City may also terminate this Contract in the event of FWCCDC's default, or inability or failure to perform or to comply with any of the terms herein. To the extent not inconsistent with any applicable federal, state or local law,in the event of FWCCDC's default,or inability or failure to perform or to comply with any of the terms herein, City shall give FWCCDC at least nine 90 days written notice of such default and the opportunity to cure such default prior to exercising such right to terminate. FWCCDC may terminate this Contract with or without cause by giving written notice to City in accordance with Section 16e below CDBG Rev 7-28-05 Fort Worth Central Community Development Corporation Operating Agreement 13 Or"�, ,! c. The Parties acknowledge that CDBG Funds paid hereunder are intended to provide only partial funding for FWCCDC's Program operations. If non-CDBG Funds included in any operating budget are not forthcoming to FWCCDC during the Contract term, City may terminate this Contract. d. CDBG Funds provided hereunder may not be used as collateral for loans to FWCCDC to defray Program operation expenses,and any attempted use of CDBG Funds for this purpose will result in termination of this Contract by City. e. Any termination by City as contemplated in this Section 16 or elsewhere in this Contract will be effected by written notice to FWCCDC, specifying the portions of the Contract affected and the effective date of termination. Any termination by FWCCDC as contemplated in this Section 16 or elsewhere in this Contract will be effected by written notice to City specifying the effective date of termination. Upon the termination of this Contract as specified in any termination notice, FWCCDC will: • Stop work under the Contract on the date and to the extent specified by City; • Cease expenditures of CDBG Funds,except as necessary for completion of the portions of the Contract not terminated; and • Terminate all orders and contracts to the extent that they relate to the portions of the Contract being terminated. f. FWCCDC will return to City any Unused CDBG Funds previously advanced by City under this Contract within thirty(30) days of the effective date of Contract termination. City will have no responsibility or liability for FWCCDC's expenditures or actions occurring after the effective date of Contract termination. Notwithstanding anything to the contrary contained herein, the termination of this Contract shall not negate the obligations of City as evidenced by a Repurchase Agreement issued in connection with a specific Program Loan;each Repurchase Agreement shall continue in full force and effect for the term specified in such Repurchase Agreement notwithstanding the termination of this Contract. 17. Certification Reizardinz Lobbyiniz a. The undersigned representative of FWCCDC hereby certifies,to the best of his or her knowledge and belief,that: No Federal appropriated funds have been paid or will be paid,by or on behalf of FWCCDC,to any person for influencing or attempting to influence an officer or employee of any agency,a member of Congress,an officer or employee of Congress or an employee of a member of Congress in connection with the awarding of any Federal contract,the making of any Federal grant, the making of any Federal loan,the entering into of any cooperative agreement and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan or cooperative agreement. FWCCDC shall require that the language of this certification be included in all subcontracts or agreements involving the expenditure of Federal funds. b. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency,a member of Congress, an officer or employee of Congress,or an employee of a member of Congress in connection with this Federal contract,grant, loan or cooperative agreement,FWCCDC shall complete and submit Standard Form-LLL,"Disclosure Form to Report Lobbying," in accordance with its instructions. c. 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 USC Section 1352. who fails to file the CDBG fiv 7.28.05 V Vi Fort Worth Central Community Development Corporation Operating Agreement V 14 F"��tr \ �,o LILlk fin, 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. 18. Miscellaneous Provisions a. All terms of this Contract shall apply to any and all subcontractors of FWCCDC who are in any way paid with CDBG Funds or who perform any work in connection with FWCCDC's Program. b. 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. c. City's failure to insist upon the performance of any term or provision of this Contract or to exercise any right herein conferred shall not be construed as a waiver or relinquishment to any extent of City's right to assert or rely upon any such term or right on any future occasion. d. Should any action, whether real or asserted, at law or in equity, arise out of the execution, performance,attempted performance or nonperformance of this Contract,venue for action shall lie in Tarrant County,Texas. e. This written instrument and the exhibits attached hereto,which are incorporated by reference and made a part of this Contract for all purposes, constitute the entire agreement between the Parties concerning the work and services to be performed hereunder, and any prior or contemporaneous, oral or written agreement which purports to vary from the terms hereof shall be void. Any amendments to the terms of this Contract must be in writing and must be approved by each Party. f. All notices required or permitted by this Contract must be in writing and are deemed delivered on the earlier of the date actually received or the third day following (i) deposit in a United States Postal Service post office or receptacle; (ii) with proper postage (certified mail, return receipt requested); and (iii) addressed to the other Party at the address set out in the preamble of this Contract or at such other address as the receiving Party designates by proper notice to the sending Party. g. None of the performance rendered under this Contract shall involve,and no portion of the CDBG Funds received hereunder shall be used, directly or indirectly, for the constructions, operations, maintenance or administration of any sectarian or religious facility or activity, nor shall said performance rendered or funds received be utilized so as to benefit,directly or indirectly,any such sectarian or religious facility or activity. h. FWCCDC 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. i. The Parties shall give each other prompt written notice of any claim,demand,suit,proceeding,or cause of action("claim")made or brought against it pertaining to the Program or the Loan Fund within ten(10)days of being notified of such claim. [SIGNATURES APPEAR ON FOLLOWING PAGE] CDBG OFF]" � aHCOB Rev 7-28-05 Fort Worth Central Community Development Corporation Operating Agreement 15 U IN WITNESS WHEREOF,the Parties have executed this Contract in duplicate originals in Fort Worth,Tarrant County,Texas,this Y74 day of &O 2006. ff CITY OF FORT WORTH FORT WORTH CENTRAL UNITY DEVELOPMENT By: 19a) By: Dale A. Fissele Assistant City Manager Board Member APPROV�D AS TO O ND LEGALITY: 0 —)SII q By: -A�(,��Cti ' Contract Authorization Assistant City Attorney ATTEST: Date �-�a-4'-f City Secretary Date STATE OF TEXAS § COUNTY OF TARRANT § This instrument was acknowledged before me on 2006 by Dale A. Fisseler, the Assistant City Manager, of the City of Fort`W"Orth, on behalf the City of Fort Worth. Y P� JONI R JACOBS NOTARY PUBLIC State of Texas Not ry Public, Sta f Texas �o Comm. Exp. 05-27-2007 STATE OF TEXAS § COUNTY OF TARRANT § This instrument was acknowledged bef e me on aY(/�j 2 2006 by �i • YI f ASO _,the_ I c ;+ of Fort Worth Central Community evelopment Corporation, a Texas corporation, on behalf of said corporation. C srateot7� Notary Vublic, State of Texas UL WFn� CDBG v3v ;� e 7-28-05 Fort Worth Central Community Development Corporation Operating Agreement 16 FORT WORTH CENTRAL COMMUNITY DEVELOPMENT CORPORATION CERTIFIED COPY OF CORPORATE RESOLUTION AUTHORIZATION TO ENTER INTO A CONTRACTUAL AGREEMENT WITH THE CITY OF FORT WORTH FOR $650,000 TO FUND LOAN LOSS RESERVE ACCOUNT AND TO PROVIDE SUBSIDIES TO HOMEOWNERS SEEKING HOME IMPROVEMENT LOANS FROM FORT WORTH CENTRAL COMMUNITY DEVELOPMENT CORPORATION The undersigned Secretary of FORT WORTH CENTRAL COMMUNITY DEVELOPMENT CORPORATION (FWCCDC), a Texas corporation (the "Corporation"), hereby certifies that at a meeting of the Board of Directors of the Corporation, duly called and held on the 11th day of January 2006, at which meeting a quorum of said Board was present and acting throughout, the following resolutions were duly adopted by the unanimous vote of all of the Directors present, and the same has not since been rescinded or modified, and is presently in full force and effect: WHEREAS, FWCCDC has been formed as a legal entity that will establish and manage a loan fund that will provide housing rehabilitation loans to homeowners in the City earning up to 120%of the HUD Area Median Income; and WHEREAS, the target market of the loan fund is the Central City and low and moderate income homeowners desiring home improvement, renovation and refinance, or purchase and rehabilitation loans that will revitalize City neighborhoods with no less than 60% of the loans to be made to the targeted population and area; and WHEREAS, the citizens of the City and the City Council have determined that the creation of a private sector loan fund providing home rehabilitation loans to eligible homeowners in the City will support the City's strategies for neighborhood revitalization, particularly in the Central City; WHEREAS, it has been proposed that the Corporation accept $650,000 from the City of Fort Worth's Community Development Block Grant entitlement to establish a loan loss reserve and to provide subsidies to homeowners seeking home improvement loans from the Corporation , pursuant to the terms of a Contract (the Contract) to be entered into by and among the Corporation; and, In the opinion of the Board, it is in the best interest of the Corporation for the Contract to be entered into and for the Corporation to execute the document. NOW, THEREFORE, BE IT RESOLVED, that the President of the Corporation, acting alone,be, and he hereby is, authorized on behalf of and in the name of the Corporation to enter into the Contract with the City. � tiA �i RESOLVED FURTHER, that the authority conferred upon the aforesaid President by this full force and effect until written notice of revocation by further resolution of the Board of Directors shall have been received and that a copy of the resolution certified by the Secretary be delivered to the City. The undersigned further certifies that the officers of the Corporation hereunder set forth have been duly elected and hold the offices specified with the Corporation, and that the signature set forth beside each person's name is the true signature of such person: TITLE TYPED NAME SIGNATURE President Brian K. Dennison Secretary Jerome C. Walker On behalf of the Board, I certify the following matters concerning the Corporation: 1. The Corporation has been duly incorporated and is in good standing under the laws of the state of Texas; 2. The copy of the Articles of Incorporation attached hereto are the Articles of Incorporation forming the Corporation and same have not been amended or modified; 3. No proceedings are pending for the forfeiture of the Corporation's Certificate of Incorporation. 4. No proceedings for relief under any bankruptcy laws or statutes are pending in any bankruptcy court on behalf of the Corporation or in any other court concerning the dissolution, voluntarily or involuntarily, of the Corporation; and 5. There is no provision of the Corporation's Articles of Incorporation or Bylaws limiting the power of the Board of Directors to pass the resolutions set out above and the same are in conformity with the provisions of the Articles of Incorporation and Bylaws. IN WITNESS WHEREOF,this certification has been signed on behalf of the Corporation effective the 25th`h day of January, 2006. By: Name: Jerome C. Walker Title: Secretary ,N5y"'Yi'l 1 Page 1 of 2 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 3/21/2006 DATE: Tuesday, March 21, 2006 LOG NAME: 05K MEUNIER REFERENCE NO.: G-15119 SUBJECT: Authorization to Execute a Contract Agreement with Fort Worth Central Community Development Corporation in the Amount of $650,000 to Fund a Loan Loss Reserve Account and to Provide Subsidies to Homeowners Seeking Home Rehabilitation Loans RECOMMENDATION: It is recommended that the City Council: a. Authorize the designation and reallocation of $650,000 from the City's Community Development Block Grant (CDBG) to fund a loan loss reserve account and to provide subsidies to homeowners seeking home rehabilitation loans through Fort Worth Central Community Development Corporation's home rehabilitation loan fund. b. Authorize the City Manager to execute a contract with Fort Worth Central Community Development Corporation to expend the allocated funds consistent with the intended use of the fund. c. Authorize the City Manager to amend the contract as needed, provided the amendment is consistent with applicable laws and regulations and with the goals of providing support to Fort Worth Central Community Development Corporation and its home rehabilitation loan fund. DISCUSSION: The Central City revitalization goals of the City's Comprehensive Plan call for the creation of a private- sector loan fund to provide low interest home rehabilitation loans to homeowners in the City of Fort Worth. Fort Worth Central Community Development Corporation (FWCCDC) has been formed as a Texas corporation as a legal entity to establish and manage a home rehabilitation loan fund (the Loan Fund). FWCCDC has established a short term (three-year) goal of$6 million in private sector investment to provide loans to Fort Worth homeowners whose households earn up to 120% of the Area Median Family Income (AMFI) as defined by the Department of Housing and Urban Development (HUD). This is equal to an annual adjusted income of $75,250 for a family of four. The loan fund will provide three types of loans to address neighborhood revitalization efforts: (a) home improvement; (b) renovation/refinance; and, (c) purchase/rehabilitation. Additionally, the Loan Fund will provide homeowners with counseling and education to enhance the mutual success of the fund's objectives. The target market of the loan fund is Central City homeowners whose households earn 80% or less than AMFI, a market that has traditionally been difficult for conventional lender home improvement loan programs to reach. Initial equity of$.5 million has been committed to date by Guaranty Bank. The goal established by FWCCDC is to lend 85% of the Loan Fund to its target market. At no time will less than 60% of loans made b FWCCDC be made to the target population and geographic market. w pz �7p9i In support of the goals of FWCCDC, the City of Fort Worth has comm e4JP `1f01n is HUD Community Development Block Grant (CDBG) XXIX and XXX entitlement un nitialiv These http://www.cfwnet.org/council_packet/Reports/mc_print.asp x/30/2006 Page 2 of 2 funds will be utilized to capitalize start-up costs, to fund a loan loss reserve for loan guaranties, and to provide subsidies for homeowners seeking a home rehabilitation loan. Loan subsidies will be in the form of a participation loan, resulting in a reduced interest rate for eligible applicants earning 80% or less than AMFI occupying homes in need of rehabilitation located in the Central City. The base, unsubsidized interest rate on loans is established by the cost of capital funds from the investors, or 6.5% based on current commitments. Start-up capital contributions in the amount of $50,000 to FWCCDC have been funded previously on November 2, 2004, (M&C-14559). The projected allocation of the City's commitment described herein is as follows: Loan Loss Reserves - $200,000 (30%), and Loan Subsidies $450,000 (70%). The City will also provide in-kind staff support until a nonprofit agency with commensurate capabilities is identified. The City will enter into a Contract with the FWCCDC delineating the roles and responsibilities of both parties. The Housing Department recommends that $650,000 be designated to fund FWCCDC's loan loss reserve and to provide home rehabilitation loan subsidies to homeowner borrowers of its Loan Fund. The Loan Fund will operate in ALL COUNCIL DISTRICTS. FISCAL INFORMATION/CERTIFICATION: TO Fund/Account/Centers FROM Fund/Account/Centers GR76 539120 005206845780 $350,000.00 GR76 539120 005206845250 $350,000.00 GR76 539120 005206929250 $300,000.00 GR76 539120 005206929250 $300,000.00 Submitted for City Manager's Office Dale Fisseler (6266) Originating Department Head: Jerome Walker(7537) Additional Information Contact: Karen Meunier(8091) ?"vN'U, MY. http://www.cfwnet.org/council_packet/Reports/mc_print.asp 3/30/2006