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WOR S �. ND AMENDMENT TO CITY SECRETARY CONTRACT NO. 45957
C"YSECRETARY
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wd EREAS, on October 30, 2013 the City of Fort Worth ("City") and Tarrant County
ousing Partnership, Inc. ("Developer") made and entered into City Secretary Contract No.
45057 (the "Contract"), as authorized by the City Council in M&C C-25531 adopted on March
27, 2012 which provided $1,115,000 of City's HOME funds to Developer for the development
and construction of up to 10 single family houses in the Hillside-Morningside neighborhood;
WHEREAS, the funding provided to Developer in the Contract was from a grant received
by the City from the United States Department of Housing and Urban Development through the
HOME Investment Partnership Program, Catalog of Federal Domestic Assistance No. 14.239;
WHEREAS, a portion of the City's HOME funds are reserved for the use of certain
housing development entities that qualify under the HOME Regulations as a Community
Housing Development Organization("CHDO") and Developer is qualified as a CHDO under the
HOME Regulations;
WHEREAS, Developer requested $130,234.00 of HOME CHDO funds for the
construction of a single family house located at 1244 E. Jessamine to be sold to HOME Eligible
Buyers under the terms and conditions set forth in the Contract;
WHEREAS, the First Amendment substituted 1244 E. Jessamine for the original lot
located at 1205 E. Jessamine;
WHEREAS, the proposed budget for the house was prepared in 2015 based on estimates
of costs at that time, but due to increases in development and construction costs, as well as other
additional unanticipated costs no included in the estimates on which these Budget was based,
Developer has requested an additional $41,213.00 of HOME Funds to complete the house and
extend the deadline;
WHEREAS, Developer has requested an amendment to adjust the line item amounts
listed in Exhibit "B" - Budget and to extend the Completion Deadline in Exhibit "C" - Project
and Reimbursement Schedule due to scheduling issues and the rise in price for development
and construction costs for the project;
WHEREAS, the CHDO has legally changed its name to Housing Channel, Inc.; and
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: OFFICIAL RECORD
CITY SECRETARY
I' FT.VIlORTH,TX
Section 2. DEFINITIONS is amended to be and read as follows:
CONTRACT AMENDMENT 2 to CSC No.45957 Page 1
Housing Channel,Inc.— 1244 E.Jessamine Rev. 8/2017
"Completion Deadline means December 31, 2017
"Home Funds means the HOME Program grant funds supplied by City to
Developer under the terms of this Contract not to exceed $188,590.00, 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
$171,447.00 of HOME Funds in the form of the Loan for eligible expenses for the
development of the house under the terms and conditions described herein."
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 $171,447.00 to insure against loss from the fraud, theft or dishonesty of any of
Developer's officers, agents,trustee, directors or employees."
III.
Exhibit "B" - Budget and Exhibit "C" - Project and Reimbursement Schedule
attached to the Contract are hereby replaced with Exhibit "B" - Budget Revised 8/2017 and
Exhibit "C" - Project and Reimbursement Schedule Revised 8/2017 attached hereto.
IV.
This amendment is effective as of the Effective Date of the Contract except the
amendment to Section 17 is effective as of the date of this amendment.
VII.
All other terms and conditions of City Secretary Contract No. 45957 not amended herein
remain unaffected and in full force and effect, are binding upon the Parties, and are hereby
ratified by the Parties. Capitalized terms not defined herein shall have meanings assigned to
them in the Contract.
[SIGNATURES APPEAR ON NEXT PAGE]
CONTRACT AMENDMENT 2 to CSC No.45957 Page 2
Housing Channel,Inc.— 1244 E.Jessamine Rev. 8/2017
ACCEPTED AND AGREED:
��FORT�2
AX EST: Y OF FORT WORTH
Asst .+C, City Secretary * 'ernando Costa, Assistant City Manager
M&C C-26977 Date: 9/ 201.
Form 1295:N/A ]FXPS
7ge
OVED AS TO FORM AND LEGALITY:
Meb e, Assistant City Attorney
Contract Compliance Manager:
By signing I acknowledge that I am the person responsible
for the monitoring and administration of this contract, including
ensuri4pance and reporting requirements.
6
Name
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Title
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USING C ANNEL a Texas non-profit
By:
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OFFICIAL RECORD
CITY SECRETARY
FT.WORTH,TX
CONTRACT AMENDMENT 1 to CSC No.45957 Page 3
Housing Channel,Inc.— 1244 E.Jessamine Rev. 8/2017
EXHIBIT "B"
BUDGET REVISED 8/2017
HOUSING CHANNEL, INC.
1244 E. JESSAMINE
Development Budget
Use of Funds Source of Funds
Predevelopment Cost HOME$ OTHER$ SOURCE OF OTHER TOTAL$
FUNDS FUNDS FUNDS FUNDS
(1) (2) (Names) (1+2)
1.Market Study 100 100
2.Feasibility(i.e.:preliminary work 1,168 1,168
write-up,cost estimates.design)
Total Prcdevelopment Cost 1,268 1,268
Development Cost
3.Land and/or building acquisition 1,290 1,290
4. Site Preparation 2,391 2,391
5.Construction Cost 166,498 166,498
6.Listing/Real Estate Closing Costs 7,361 Proceeds of Sale 7,361
Total Development Cost(Total of items 170,179 7,361 177,540
3-6
Total Predevelopment and Development 171,447 7,361 178,808
Funds
Developer Fee(10%of Total 17,143 17,143
Predevelopment and Development Funds
Total with Developer Fee 188,590 7,361 195,951
*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 project related development costs.
**Seller-paid closing costs as shown on the HUD-1 Settlement Statement paid from gross sales proceeds from the
sale of the house.
CONTRACT AMENDMENT 1 to CSC No.45957 Page 4
Housing Channel,Inc.—1244 E.Jessamine Rev. 8/2017
EXHIBIT "C" -
PROJECT AND REIMBURSEMENT SCHEDULE REVISED 8/2017
HOUSING CHANNEL, INC.
1244 E. JESSAMINE
Phase Activity Amount
PHASE I ACTIVITIES: Contract Signed
Land and/or Building Acquisition
Predevelopment
PHASE I DEADLINE:
October 31,2015 1st Payment*
$2,491*
PHASE II ACTIVIITES: Site Preparation
Predevelopment
Construction costs
PHASE II DEADLINE: 2°d Payment* $10,726*
December 31,2016
PHASE III ACTIVIITES: Architectural&Engineering Fees
Construction Costs
Utilities/Security
RASE III DEADLINE: 3rd Payment* $78,818*
August 31,2017
PHASE IV ACTIVIITES: Construction costs
Utilities/Security
PHASE IV DEADLINE: 4th Payment* $62,052*
September 30,2017
PHASE V ACTIVITIES: Construction Costs
Utilities/Security
PHASE V DEADLINE: FINAL PAYMENT* $17,360*
December 31,2017
F
TOTAL $171,447
DEVELOPER FEE** Paid after closing of sale to HOME $17,143**
Eligible 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 1 to CSC No.45957 Page 5
Housing Channel,Inc.— 1244 E.Jessamine Rev. 8/2017
M&C Review Page 1 of 2
Official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA FbH
COUNCIL ACTION: Approved on 9/16/2014
DATE: 9/16/2014 REFERENCE**C-26977 LOG 17TCHP_REVISEDHILLSIDE/MORNINGSIDEBUDGET
NO.: NAME:
CODE: C TYPE: CONSENT PUBLIC NO
HEARING:
SUBJECT: Authorize Amendment to Mayor and Council Communications C-24293, C-24714, C-25531, C-25676
and C-26369 to Increase the Total Amount for Development Costs and Decrease the Total Amount
for Operating Funds of the HOME Investment Partnerships Program Grant Funds Awarded to Tarrant
County Housing Partnership, Inc., for Single-Family Housing Development in the Hillside-Morningside
Neighborhood and to Allow for Lease of Houses by Eligible Tenants (COUNCIL DISTRICT 8)
RECOMMENDATION:
It is recommended that the City Council authorize the amendment of Mayor and Council
Communications C-24293, C-24714, C-25531, C-25676 and C-26369 to:
(1) increase the total amount for development costs by the amount of$125,000.00 and decrease the
total amount for operating funds by the amount of$125,000.00 of the HOME Investment Partnerships
Program grant funds awarded to Tarrant County Housing Partnership, Inc., for single-family housing
development in the Hillside-Morningside neighborhood; and
(2) allow for rental of the houses by eligible tenants.
DISCUSSION:
The City Council approved an award in the total amount of$1,815,913.00 of HOME Investment
Partnerships Program (HOME) grant funds to Tarrant County Housing Partnership, Inc. (TCHP), a
Community Housing Development Organization (CHDO), for the development of up to 18 single-
family houses in the Hillside-Morningside neighborhood (Mayor and Council Communications
C-24293, C-24714, C-25531, C-25676 and C-26369). This amount included a total of$175,000.00
for CHDO operating funds and$1,640,913.00 for development expenses for the houses. Due to
higher construction costs, Staff recommends that the total amount of HOME funds awarded to TCHP
instead include a total amount of$1,765,931.00 for construction and other development costs, and
reduce the CHDO operating funds to$50,000.00.
As of August 23, 2013, the United States Department of Housing and Urban Development(HUD)
requires that a CHDO must have a sales contract with a HOME-eligible buyer within nine months of
completion of construction of a house built with CHDO funds. If the CHDO does not have contract
with a HOME-eligible buyer within this timeframe, the house must instead be rented to an income-
eligible tenant. This requirement applies to all projects, including CHDO projects, to which HOME
funds are committed on or after August 23, 2013. Therefore, Staff requests that the above-
referenced Mayor and Council Communications be amended to allow not only for the sale to a
HOME-eligible buyer, but also for the rental by an income-eligible tenant, including the option for the
tenant to lease-purchase the house.
This project is located in COUNCIL DISTRICT 8.
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that the action will have no material effect on
City funds.
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M&C Review Page 2 of 2
TO Fund/Account/Centers FROM Fund/Account/Centers
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Jesus Chapa(5804)
Additional Information Contact: Cynthia Garcia (8187)
Leticia Rodriguez(7319)
ATTACHMENTS
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