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Home My WebLink AboutContract 46622-A7A1 CITY SECRETARY CONTRACTNO. 6 I AMENDMENT TO CITY SECRETARY CONTRACT NO.46622-A7 WHEREAS, on September 23, 2014, the City Council of the City of Fort Worth ("City") authorized the expenditure of a total of $1,300,000.00 in HOME Investment Partnerships Program ("HOME") grant funds to the Fort Worth Housing Finance Corporation ("FWHFC"), for an affordable housing development in the Diamond Hill-Jarvis neighborhood and the sale of 21 lots to FWHFC for the construction of new single family houses to be sold to HOME-eligible buyers(M&C C-27008); WHEREAS, the Board of Directors of FWHFC, a Texas housing finance corporation and public instrumentality of the City, approved contracts with City to purchase the lots and for the HOME funds in order to act as developer of affordable housing for low and moderate income home buyers (Resolution No. FWHFC-2014-13); WHEREAS, on September 25, 2014, City and FWHFC made and entered into City Secretary Contracts No. 45977, 45978, 45979, 45980, 45981, 45982, 45983 and 45984 for the purpose of funding the construction of 8 single family houses as part of the Hardy Street Single Family Infill Development(the "Original Contracts")and made and entered into City Secretary Contract No. 46620,the Contract of Sale and Purchase for the 21 lots; WHEREAS, on September 25, 20 14, City and FWHFC made and entered into City Secretary Contract No. 46622 which provided that the remaining 13 single family houses would be developed by entering into separate Contract Amendments for each of the 13 lots containing the specific terms for each house including HOME funds for development costs (the "13 Lot Contract"); WHEREAS, the Original Contract provided funding to FWHFC pursuant to a grant from the United States Department of Housing and Urban Development through the HOME Program, Catalog of Federal Domestic No. 14.239, with which the City desires to promote activities that expand the supply of affordable housing and the development of partnerships among City, local governments, lenders,private industry and non-profit housing organizations; WHEREAS, the City is required to spend a portion of its annual award of HOME funds on projects with Community Housing Development Organizations ("CHDO") and has requested that the HOME contracts for the development be assigned by FWHFC to Tarrant County Housing Partnership, Inc., a CHDO, in order to assist City in meeting its CHDO spending and commitment goals with the United States Department of Housing and Urban Development; WHEREAS, it is the mutual desire of City and FWHFC to assign FWHFC's rights and obligations as Developer under the Original Contract to Tarrant County Housing Partnership, Inc. in order to meet the City's strategic goal of development and revitalization of the City's affordable housing stock and to accomplish the objectives 2 4 nginal Contract; RECEIVED o 0l�JOU RICORO N Mi NIC AR CHDO SINGLE FAMILY CONTRACTr DEC 15 2011Lam N Hardy Street Infill Projectg CFFORT WORTR y lly Housing Channel,Inc. - 3649 Hardy Street gri(SECRETARY y' �19 tF t \1 WHEREAS, Tarrant County Housing Partnership, Inc., a Texas non-profit corporation and CHDO is willing to assume all of FWHFC's rights and obligations as Developer under the 13 Lot Contract and enter into Contract Amendments for each of the 13 lots subject to availability of HOME funds for development costs for the 13 houses; WHEREAS, on May 19, 2015, the City Council authorized the expenditure of an additional $310,000.00 of HOME funds to Tarrant County Housing Partnership (hereinafter "Developer") (M&C C-27295) for development costs; WHEREAS, in order to facilitate the development and to assist the City in meeting its CHDO commitment and spending goals and requirements, City and Developer have agreed to amend and restate the Original Contract and incorporate their agreement as set forth below, which agreement shall substitute for and supersede the terms of the Original Contract. City and Developer may be referred to individually as a"Party"and collectively as"the Parties". WHEREAS, in order to facilitate the development and to assist the City in meeting its CHDO commitment and spending goals and requirements, City and Developer have agreed to enter into a Contract Amendment to the 13 Lot Contract to provide funds to construct the house at 3649 Hardy Street and to incorporate their agreement as set forth below, which agreement shall substitute for and supersede the terms of the 13 Lot Contract as those terms apply to 3649 Hardy Street. NOW THEREFORE, in consideration of the mutual agreements in the 13 Lot Contract as amended and restated herein, and the further consideration of the mutual covenants, obligations and responsibilities contained herein, including all Exhibits and Attachments, and subject to the terms and conditions hereinafter stated, City and Developer agree that the following is substituted for and supersedes the 13 Lot Contract for the purpose of developing a single family house at 3649 Hardy Street: "This contract ("Contract") is made and entered into by and between the City of Fort Worth (hereafter"City") and Tarrant County Housing Partnership, Inc. (hereafter"Developer"), a Texas non-profit corporation. City and Developer may be referred to individually as a "Party" and jointly as"the Parties". The Parties state as follows: WHEREAS, City has received a grant from the United States Department of Housing and Urban Development ("HUD") through the HOME Investment Partnerships Program, Catalog of Federal Domestic Assistance No. 14.239, with which City desires to promote activities that expand the supply of affordable housing and the development of partnerships among City, local governments, lenders,private industry, and non-profit housing organizations; WHEREAS, the primary purpose of the HOME program pursuant to the HOME Investment Partnerships Act at Title II of the Cranston Gonzales National Affordable Housing Act of 1990, as amended, 42 U.S.C. 12701 et seq. and the HOME Investment Partnerships CHDO SINGLE FAMILY CONTRACT Page 2 Hardy Street Infill Project Housing Channel,Inc. -3649 Hardy Street Rev 12/13/2017 Program Final Rule, as amended, 24 CFR Part 92 et seq. (the "HOME Regulations" or "Regulations")is to benefit low-income citizens by providing them with affordable housing; WHEREAS, a portion of 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 or CHDO; WHEREAS, Developer is a Texas non-profit corporation managed by a volunteer Board of Directors working to increase the number of quality, accessible, and affordable ownership housing units available to low and moderate income individuals and families and has fulfilled the requirements of the HOME Program to be a CHDO; WHEREAS, City has certified that Developer is a Community Housing Development Organization; WHEREAS, Developer requested HOME CHDO funds for an eligible project under the HOME Regulations whereby Developer will construct a single family house located at 3649 Hardy, Fort Worth,TX 76106 for sale to a low- to moderate-income homebuyer; WHEREAS, City citizens and the City Council have determined that the development of quality, accessible, affordable housing is needed for moderate-, low-, and very low-income City citizens; WHEREAS, Developer has legally changed its name to Housing Channel, Inc.; and WHEREAS, Developer was able to identify and secure additional funding sources to assist in the financing of this project and has entered into an agreement with Inwood National Bank to fund a portion of the construction costs; NOW, THEREFORE, in consideration of the mutual covenants and obligations and responsibilities contained herein, including all Exhibits and Attachments, and subject to the terms and conditions hereinafter stated,the Parties understand and agree as follows; 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: "Completion Deadline means May 30, 2018." "Home Funds means the HOME Program grant funds supplied by City to CHDO SINGLE FAMILY CONTRACT Page 3 Hardy Street Infill Project Housing Channel,Inc.—3649 Hardy Street Rev 12/13/2017 Developer under the terms of this Contract not to exceed $81,983.80, 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 $81,983.80 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." III. Exhibit"B" - Budget Revised 9/2017, and Exhibit "C" - Project and Reimbursement Schedule Revised 9/2017 attached to the Contract are hereby replaced with Exhibit "B" - Budget Revised 12/2017, and Exhibit "C" - Project and Reimbursement Schedule Revised 12/2017 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. 45977 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] CHDO SINGLE FAMILY CONTRACT Page 4 Hardy Street Infill Project Housing Channel,Inc. 3649 Hardy Street Rev 12/13/2017 EXECUTED to be c t',y of the Effective Date. C)P ATTE CITY OF FORT WORTH •* By- Kity � w J. K ity ai'�r Fernando Costa Assistant City Manager M&C G-1 1 h �a /4 Date: Z22017 1295 Cert.No.: �1�1 APPROVED AS TO FORM AND LEGALITY: i Pai a Meb e,Assistant City Attorney — H USING EL, By: D Van ss, Pr nt Date: OFFICIAL RECORD CITY SECRETARY FT.WORTH,TX CHDO SINGLE FAMILY CONTRACT Page 5 Hardy Street Infill Project Housing Channel,Inc.—3649 Hardy Street Rev 12/13/2017 EXECUTED to be effective as of the Effective Date. ATTEST: CITY OF FORT WORTH By: Mary J. Kayser, City Secretary Fernando Costa,Assistant City Manager M&C G-18521 Date: 8/4/2015 Date: 1295 Cert.No.:NA APPROVED AS TO FORM AND LEGALITY: Paige Mebane, Assistant City Attorney HOUSING CHANNEL,INC. By: Donna VanNess,President Date: City of Fort Worth Agreement Compliance Manager: By signing I acknowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all performance and reporting requirements. _ 4% 4-A--t— Name: LG Title: CHDO SINGLE FAMILY CONTRACT Page 6 Hardy Street Infill Project Housing Channel,Inc.—3649 Hardy Street Rev 12/13/2017 EXHIBIT "B" BUDGET HOUSING CHANNEL,INC. 3649 Hardy Street Total Cost: $212,048.80 Project HOME Funds Awarded: $81,983.80 HOME Funds will be paid only as reimbursement for eligible expenses. L se of Funds Source of Funds Predevelopment Cost HOME$ OTHER$ SOURCE OF TOTAL$ OTHER FUNDS FUNDS FUNDS FUNDS -1 -2 (Names) (1+2) 1.Market Study 117.00 117.00 2.Feasibility e.:preliminary work write-up, 5,369.00 5,369.00 cost estimates, design, Bond Insurance) 3. Other Total Predevelopment Cost(1+2=3) 5,486.00 5,486.00 Development Cost 4.Land and/or Building Acquisition and 8,806.00 8,806.00 Associated Closing Costs 5. Soft Costs(Utilities, Security, etc.) 10,749.00 O, 6. Construction Cost 29,900.00 119,600.00 Inwoc 149.500.00 7.Fence 8. Landscape 9. Contingency 10.Appraisal 11.Architect&Engineering Fees 5,567.00 5,567.00 12. Construction Management Fee 13. Construction Loan Interest 3,150.00 3,150.00 14.Property Survey 15. Legal Fees 16. Real Estate Fees 8,970.00 Proceeds 8,970.00 17. Utility Hookup/Impact Fees 18. Title&Recording Fees 1,495.00 Proceeds 1,495.00 19. Program Related Expenses 20. Construction Management 21.Bond Fees Total Development Cost(Total of items 4-21) 58,172.00 130,065.00 188,237.00 Total Project Cost 63,658.00 130,065.00 193,723.00 22.Developer Fee(10%of Total Predevelopment 18,325.80 18,325.80 and Development) Total Project Cost with Developer Fee 1 81,983.80 1 130,065.00 1 212,048.80 HOME DEVELOPER SINGLE FAMILY CONTRACT—Exhibit`B"—Budget Rev. 12/13/17 Housing Channel,Inc.—3649 Hardy Street *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 HOME DEVELOPER SINGLE FAMILY CONTRACT—Exhibit`B"—Budget Rev. 12/13/17 Housing Channel,Inc.—3649 Hardy Street EXHIBIT "C" PROJECT AND REIMBURSEMENT SCHEDULE HOUSING CHANNEL, INC. 3649 Hardy Street Phase Activity Beginning Week—subject to weather permitting PHASE I ACTIVITIES: Contract signed Land and/or Building Acquisition Survey PHASE I DEADLINE: 13,286 December 20,2017 1 1st Payment* PHASE II ACTIVIITES: Site Preparation Architectural and Engineering Fees Landscaping Construction costs PHASE H DEADLINE: 2nd Payment* 74,750 February 15,2018 PHASE III ACTIVHTES: Site Preparation Architectural and Engineering Fees Construction Costs and Fence Utility hookup/Impact fees PHASE III DEADLINE: 3'Payment* 36,724 March 15,2018 PHASE IV ACTIVIITES: Construction costs Utility hookup/Impact fees PHASE IV DEADLINE: 4a'Payment* 36,724 April 15,2018 PHASE V ACTIVITIES: Utility hookup/Impact fees Architectural and Engineering Fees Landscaping Construction Costs and Fence PHASE V DEADLINE: FINAL PAYMENT** 21,774 May 30,2018 CONSTRUCTION TOTAL DEVELOPER FEE*** Paid after closing of sale to HOME 10% of project related Eligible Buyer per Section 7.8*** development costs *Developer will be reimbursed for eligible expenses only. All amounts are estimates and are subject to change. **Final Payment will be made after closing of sale of the house to a HOME Eligible Buyer. Exhibit"G"-HOME Project Compliance Report must be submitted prior to reimbursement for Final Payment per Section 10.3.3. ***10%of preject related development costs as shown on Exhibit"B"-Budget CHDO Funds—Exhibit"C"—Project and Reimbursement Schedule Housing Channel,Inc.—3649 Hardy Street Rev. 12/13/17