HomeMy WebLinkAboutContract 45056-A3 CITY SECRETARY q,V
CONTRACT NO. �l
THIRD AMENDMENT TO CITY SECRETARY CONTRACT NO. 45056
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.
45056 (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 1116 E. Allen 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, 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.WORTH, Ty
The terms "Completion Deadline" and "HOME Funds" in Section 2. DEFINITIONS are
CONTRACT AMENDMENT 3 to CSC No.45056 Page I
Tarrant County Housing Partnership, Inc.— 1116 E.Allen Rev. 8/2016
amended to be and read as follows:
"Completion Deadline means March 31, 2017."
"Home Funds means the HOME Program grant funds supplied by City to
Developer under the terms of this Contract not to exceed $185,591, 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 $169,523
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 $169,523 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 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 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. 45056 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.45056 Page 2
Tarrant County Housing Partnership,Inc.— 1116 E.Allen Rev. 8/2016
�y OF.F
ACCEPTED AND AGREE
`.0
OF FORT WORTH
A04ity Secretary S Fernanuo Costa Assistant City Manager
M&C C-26977 Date: 9/16/2014 Date: 8b, /7
Form 1295: N/A
A VVD"1711D AS TO FORM AND LEGALITY:
Al 1 1\V ♦ •'L
Paige MebAne, Assistant City Attorney
HOUSING C EL, IN Texas no -profit
co oratio
By:
o a ss, Pres
ate:
OFFICIAL RECORD
CITY SECRETARY
FT.WORTH,TX
CONTRACT AMENDMENT 3 to CSC No.45056 Page'l
Tarrant County Housing Partnership, Inc.— 1116 E.Allen --Rev. 8/2016
EXHIBIT "B"
BUDGET REVISED 8/2017
HOUSING CHANNEL, INC.
1116 E. ALLEN
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 Stud
2. Feasibility(i.e.: preliminary work
write-up,cost estimates,design),)soil 10,633 10,633
remediation,bond, insurance
3. Other
Total Predevelopment Cost(1+2+3) 10,633 10,633
Development Cost
4. Land and/or building acquisition 4,088 4,088
5. Site Preparation 5,968 5,968
6.Construction Cost 148,459 148,459
7.Architect&Engineering Fees 375 375
8.Listing/Closing Listing/Closingcosts 5,997 Proceeds of Sale 5,997
Total Development Cost(Total of items 158,990
4-8) L
Total Predevelopment and 169,523
Development Funds
Developer Fee 16,068 16,068
Total with Developer Fee 185,591 5,997 191,588
*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.45056 Page 4
Tarrant County Housing Partnership, Inc.—1116 E.Allen Rev. 8/2017
EXHIBIT "C"
PROJECT AND REIMBURSEMENT SCHEDULE REVISED 8/2017
HOUSING CHANNEL, INC.
1116 E. ALLEN
Phase Activity Reimbursement Amount
PHASE I ACTIVITIES: Contract signed
Land and/or Building Acquisition
Construction materials
PHASE I DEADLINE:
10/31/2014 1st Payment*
$46,474.87
PHASE II ACTIVIITES: Architectural&Engineering
Construction
Site Preparation
PHASE 11 DEADLINE:
06/30/2015 2"d Payment* $18,725.99
PHASE III ACTIVIITES: Architectural&Engineering
Construction
PHASE III DEADLINE: 3rd Payment* $55,559.57
11/30/2016
PHASE N ACTIVIITES: Construction
Utility hookup/Impact fees/security
PHASE N DEADLINE: 41 Payment* $30,470.35
1/30/2017
PHASE V ACTIVITIES: Construction
Utility hookup/Impact fees/security
PHASE V DEADLINE: FINAL PAYMENT $18,291.74
3/30/2017
i r� ;r t \ • ri b r,
CONSTRUCTION TOTAL $169,522.52
DEVELOPER FEE** Paid after closing of sale to HOME Eligible $16,068.48
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.45056 Page 5
Tarrant County Housing Partnership,Inc.—1116 E. Allen Rev. 8/2017
M&C Review
Page 1 of 2
CITY COUNCIL AGENDA
Official site of the City of Fort Worth, Texas
FoRTWORTH
'11�
COUNCIL ACTION: Approved on 9/16/2014
DATE: 9/16/2014REFERENCE ".0 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.
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=20201&councildate=9/16/2014 9/6/2017
M&C Review
Page 2 of 2
TO Fund/Account/Centers
Submitted for Citv Manaaer's Office by
Oriainatina Department Head:
Additional Information Contact:
ATTACHMENTS
17TCHP MAP.Ddf
FROM Fund/Account/Centers
Fernando Costa (6122)
Jesus Chapa (5804)
Cynthia Garcia (8187)
Leticia Rodriguez (7319)
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=20201&councildate=9/16/2014 9/6/2017