HomeMy WebLinkAboutContract 34089�
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AGREEMENT VVITH FORT WORTI� HOUSING ALITHOItITI' CONCERI!'ING TI�
1�O�1SIl�G ��dQ��E ��U�;I�R I�Q1��Q�6T1`dE�� PR����
Tlus Agreement (�Agreement") concerning the Housing Choice Voucher Hoineo��ierslup
Program ("HCVHP") is between the CitS� of Fort Worth ("Fort Worth"), a home iule municipal
coiporation orgaiuzed under the laws of the State of Te�as, acting by and tluough its duly
authorized Assistant City Manager; and the Housing Authorin� of the Cit�T of Fort ��orth, d/b/a/
the Fort VVorth Housing Authority ("FWHA"), a Teaas municipal housing authoi7t��, actuig by
and flirough its duly authorized Executive Duector. (Sometunes Fort �Torth and F«rf-IA are
refei7ed to individually as a"Part��" and collectively as the "Parties").
RECITALS
Fort Worth and FV��IIA agree that the following statements are tiue and coi�rect and
constitute the basis on v��hich the�T have entered into this Agreement.
WHEREAS, 5ection 55� of the Quality Housing and Work Responsibility Act of 1998
("QHV��ZA") wluch amended the United States Housing Act of 19�7, 42 U.S.C. 1437f(y) peimits
the FWHA to create a homeo��mership option for Section 8 Housing Choice Voucher ("HCV")
recipients;
V4�IEREAS, FV�THA has created the HCVHP to convert certalli eligible HCV recipients
into hoineov��iers;
VVHEREAS, the HCVHP requu�es applicant families to attend and satisfactorily complete
a pre-assistance homeov�niership trainulg and housi�ig counseling program;
VVHEREAS, Fort Worth offers homeo«�nerslup �iai�ung; pre-purchase and post-closing
housuzg coluiseling and homebuyers' assistance programs which provide the types of sen�ice
needed to fulfill the HCVI�''s requirements for pre-assistance counseling, includ'u1g but not
lllnited to assistance in outreach and marketing of the HCVHP to HCV recipients, client
assessment, credit counsel'ulg, financial literacy counseling, homeo�merslup training, post-closing
counseling, lender h�aining, real estate agent traiiung and down payment and/or closing cost
assistance for first time homebuyers;
WHEREAS, an Applicant is defined as a person who is cuirently receivulg rental
assistance through the HCV program and has eapressed an uiterest in participating in the HCVHP;
WHEREAS, an Eligible Family is defined as an Applicant who has met the eligibility
requirements far the HCVIIP, completed all requued counselulg seivices and received FWHA
approval to plusue homeownership v��ith the HCV;
WHEREAS, FWI-�A Housing Assistance Payment ("HAP") is defined as the lesser of 1)
the payment standard minus the total tenant payment, or 2) the family's montl�ly
homeownership expenses minus the total tenant payment as determined by FWHA;
HOUSING CHOICE VOUCHER HOMEOVijNERSH?P
PROGR.AM AGREEMENT 10/Ol/06
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��V�IEREAS, increasin� homeo«�nership and providing affordable housing for all
income groups are among Fort Vdorth's housing policy goals and are affirmed iu Fort
V�Torth's Comprehensive and Consolidated Plans.
NO��V THEREFORE, the Parties agree as follo���s:
1. PURPOSE AND SCOP�.
The purpose of this Agreeinent is to set forth the terms and conditions under v��hich Fort
Worth will provide, FWHA with housing counseling and•homebuyer assistance to Applicants
and Eligible Fainilies in the HCVHP and related services to the F��HA.
2. TERM.
This Agreement shall commence on October 1, 2006 and will e�pire May 10, 2007
unless terminated earlier in accordance with this Agreement. The Parties may renew this
Agreement for up to twelve (12) months by mutual written agreement. The Parties shall
execute such renev,�als no later than thirty (30) days prior to the expiration of the cui�ent term.
In addition to termination for default plusuant to Section 5, either Party may terininate this
Agreement without cause upon si�ty (60) da��s' ���ritteil notice to the other Party, and neither
Party shall have any further responsibility or liability �iereunder e�cept for services
previously rendered and pa��inent for the same.
3. DUTIES OF THE PARTIES AND SER�jICES PROVIDED.
3.1 FVVHA and Fort Worth will:
a. Identify, recruit and establisll a pool of mortgage lenders and real estate
agents participating in the HCVHP.
b. Develop and iinplement a marketing and training plaii for mortgage
lenders and real estate agents,
c. Conduct arientation sessions with Applicants.
3.2 FWHA will:
a. Adininister the HCVHP.
b. Develop and implement a marketing plan for HCV recipients, including
FWHA's Family Self-Sufficiency ("FSS") clients.
c. Revise ���ritten materials about the HCVHP as needed.
d. Determine each HCV recipient's eligibility to appl�� for HCVHP in
accordance with FWHA's HCVHP Administrative Plan.
e. Refer Applicants to Fort Worth for pre-homeownership counseling.
f. Establish a Homebuyers Club for Applicants categorized as Long Term
lender-ready. Conduct quarterly meetings of the Homebuyers Club.
g. Issue HCVHP Certification of Eligibility and FWH ��� ��
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HOUSING CHOICE VOUCHER HOMEOWNERSHIP �',�� ��������
PROGRAM AGREEMENT 10/O1/06 �� 4�+��c���� ����
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an Applicant after completion of pre-hoineo���nership counseling and
after an Applicant is deemed lender—ready. Upon receipt of the HCVHP
Certification of Eligibility and FWHA HAP voucher, an Applicant shall
be deemed to be an Eligible Family.
Coinplete housing quality standards ("HQS") inspections for Eligible
Families not receiving closing cost and down pa5�ment assistance
tluough Fort Worth's Homebuyers' As,sistance Program ("FVJHAP") and
counsel Eligible Families on the inspector's findings. For Eligible
Families receiving FWHAP, Fort VJorth v��ill complete the HQS
inspections and will counsel the Eligible Families on the inspector's
findings.
Revie«� the sales contract for the house to be acquired b�� an Eligible
Family.
Make FWHA HAP payments in the maiuler prescribed b5� a martgage
lender either directly to ail Eligible Fainily, directly to a inortgage lender,
or to a financial institution on v��hich payments are drafted by a mortgage
lender.
Provide Fort Worth the follo«�ing:
• A cop�� of the relevant FWHA policies and procedures currently in
place regarding the HCVHP and all future updates of such policies and
procedures.
• A copy of the current U.S. Department of Housin� and Urban
Development ("HUD��) regulations pertaining to the HCVHP, as
amended from time to time, including but not limited to those
regulations found at �4 C.F.R 982.1 et seq.
• A copy of the FWHA Administrative Plan for participation in the
HCVHP;
• A list of Applicants «�ho are current FSS participasits and the current
balance of the participants' escrow accounts.
3.3. Fort �'Vorth ��ill:
a. Obtain credit reports for Applicants at the Ap�licant's or FWHA's cost, as
the case may be.
b. Provide FV�THA a copy of Fort VJorth's Steps to Homeoumership as
amended from time to time.
c. Provide each Applicant with an initial counseling session within h�vo (2)
��eeks after an orientation session that describes the counseling process
and the schedule of all necessary appointments.
d. Provide an assessment of each Applicant's qualification for the HCVHP
based on credit worthiness, emplo��ment, income history and any
compensating factors. Applicants will be categorized as follows:
• Fast Track - lender ready
• Short Term- lender ready in six (6) months or less
• Long Term - lender-ready in more than six (6) months
e. Provide a copy of the assessment, including category����ra+;^,�_-�
HOUSING CHOICE VOUCHER HONIEOWNERSHIP
PROGRAM AGREEMENT 10/Ol/06
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to FWHA and Applicants.
Provide each Applicant categorized as Fast Track ar Short Term with 20-
25 hours of pre-homeownership individual counseling, including an
action plan, and hoineownership training. Training/counseling shall
include the follov��ing activities/topics:
• Credit counseling.
• Ho�� to find a house to purchase, including information about
homeownership opportunities, schools, and public
transportation in the City of Fort Worth.
• Information on fair housiiig laws and regulations, including
local fair housing agencies.
• How to negotiate a purchase of a house.
• Information about the Real Estate Settlement Procedures Act,
state and federal truth-in-lending laws, and ho«- to identify and
avoid loans with unfavorable and predator}T terms and
conditions.
• Ho�u to obtain homeownership financing and mortgage loan
pre-approvals, including a description of types of financing
that may be availaUle and the advantages and disadvantages of
different types of financing.
• House maintenance (including care of the landscaping and
energy conservat�on). -- -
• Budgeting and money management.
• Financial literacy in conjunction with the FSS program.
• FWHAP or other similar programs offered by other agencies.
• Other information deemed appropriate by FVVHA and Fort
Worth .
Refer Applicants categorized as Long Term to the HomeUuyers Club.
Determine Applicant's readiness to apply for a mortgage loan.
Certify Applicant's completion of pre-homeownership counseling and
training. Submit a copy of certification to FWHA.
��Vork with each Eligible Family in the selection of a mortgage lender
and assist the Eligible Family in providing supporting documents
requested by the mortgage lender.
Work with each Eligible Family and its mortgage lender in resolving any
credit issues.
Assist Eligible Families in the selection of a real estate agent and in sales
contract negotiations. Reviev�� sales contract u�ith the Eligible Family.
Provide FWHA and each Eligible Family's inortgage lender ��vith a copy
of the final sales contract entered into with a seller.
Complete an HQS inspection for Eligible Families receiving closing cost
and down payment assistance tluough FWHAP and counsel Eligible
Fainilies on HQS inspector's findings. For Eligible Fainilies not
receiving FWHAP, FWHA will coniplete the HQS inspection and will
counsel the Eligible Families on the inspector's findings.
Assist Eligible Families in the selection of a licensed resident�'ial real
HOUSING CHOICE VOUCHER HOMEOWNERSHIP
PROGRAM AGREEMENT 10/O1/06
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estate inspector and review the real estate inspector's findings ���ith the
Eligible Families.
Provide continued assistance to Eligible Families tluough closing.
Provide supporting documents for F�THA HAP pa5�ments to mortgage
lenders.
Revie�v Eligible Family's closing documents for accuracy to ensure that
any do�un payment and other requirements have been met and
appropriate financing and information have been utilized by the
mortgage lenders.
Provide FVJHAP to Eligible Families if the�� qualify under FVVHAP
guidelines.
Attend closing with Eligible Families, if requested b�� the Eligible
Families.
Provide copies of counseling and loan closing files to FWHA.
Conduct quarterly post-purchase counseling with Eligible Families for
one (1) year after loan closing.
Provide delinquency or foreclosure prevention counseling to Eligible.
Families as needed.
Provide FWHA, in a fornlat prescribed by FWHA, with inonthly reports
on the activities of all Applicants and Eligible Families.
4. CONSIDERATION.
FWHA agrees to provide a grant up to, but not to e�ceed, $36,740.00 and Fort Worth
agrees to provide in-kind services valued up to $60,000.00 for the costs of the operation of the
pre-assistance and post-closing homeo«�nership and housing couziseling program for the
HCVHP as follows:
FWHA
Fort Vdorth (in kind services)
Total
$36,740.00
60,000.00
$96,740.00
FV4THA shall pay its portion of the costs to Fort Vdorth as follov��s: $12,000.00 on October
16, 2006; $12,000.00 on December 31, 2006; and $12,740.00 on May 10, 2007. Duruig any
renewals of this Agreement, FWHA shall provide Fort Worth with funds in accordance with
the terins of any rene��val agreement.
5. DEFAULT.
If either FV�rHA or Foi�t Worth fails, for any reason, to perform any provision or
condition of this Agreement, this Agreement may be tei�rninated if the default continues for a
period of thirty (30) days after the notifying Party notifies the defaulting Party in writing of
the default and its intention to declare this Agreement terminated for cause. If the defaulting
Party does not cure or coi�ect such breach within the thirt�� (30) day-period, the notifying
Party shall have the right to declare this Agreement immediately terminated, and neither Party
shall have any further responsibility or liabilit�� hereunder except for services previously
HOUSING CHOICE VOUCHER HOMEOV��TERSHIP 5
PROGRAM AGREEMENT 10/Ol/06
rendered aiid payment for the same.
6. GEN�l�L �RQ�ISI�31�tS.
6.1 Request for Information. FWHA and Fort Wortl� agree to provide each other
any inforination on Applicants and Eligible Families witlun t«=o (2) business
da��s of the request.
6.2. No �'�'aiver. The failure of either Part�r to iilsist upon the performance of any
provision or condition of this Agreement or to eaercise any right granted herein
shall not constitute a wai��er c�f that Party's right to insist upon appropriate
performance or to assert an�- such right on an�� future occasion. .
6.3. Separability. If any provision of this Ab •eement is held b�� a court of competent
jurisdiction to be in��alid, illegal or unenforceable, the validit��, legalit�� and
enforceability of the reinaining provisions shall not in any way be affected or
impaired.
6.4. Force Majeure. The Parties shall exercise their best efforts to meet their
respective duties and obligations hereunder, but shall not be held liable for any
delay in or omission of perfoinlance due to force majeure or other causes beyond
their reasonable control, including, but not limited to, compliance with an�� state
or federal la«� or regulation, acts of God, fires, strikes, lockouts, nationa�
disasters, ��,�ars, riots, material or labor restrictions, transportation problems or
e�isting contractual obligations directl5� related to the subject matter of this
Agreement.
6.5 Venue and Jurisdiction. This Agreement shall be construed iii accordance ���ith
the laws of the State of Te�as. Venue for any action brought on the basis of this
Agreement shall lie eaclusively in state courts located in Tarrant County, Texas.
In any such action, the prevailing part�� shall recover from the other aIl
reasonable attorneys' fees, court costs and other reasonable expenses incurred as
a result of the action.
6.6 Entiretv of A�reement. This Agreement, including all E�hibits attached hereto
and an3� documents incorporated herein by reference, contains the entire
understanding and agreement betvveen Fort Worth and FWHA as to the worlc and
services to be performed. Any prior ar contemporaneous oral or written
agreement is hereby declared null and void to the extent in conflict with the
provisions of this Agreement.
6.7 Compliance with Laws, Ordinances, Rules and Re�ulations. This
Agreement is subject to all applicable federal, state and local laws,
ordinances, rules and regulations, including but not limited to all provisions
of Fort Worth's charter.
6.8 Independent Contractors. Fort Vi�orth shall operate hereunder as
HOUSING CHOICE VOUCHER HOMEOWNERSHIP
PROGRAM AGREEMENT 10/Ol/06
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contractor and not as an officer, agent, servant or employee of FV��HA. F«THA
shall operate hereunder as an independent contractor and not as an officer, agent,
seivant, or employee of Fort �FJorth. Fort �FJorth shall ha��e the exclusive control
of, and the e�clusive right to control the «�ork designated to be perfoi7ned by Fort
Worth under the terms of this Agreement, aiid of all persons performing the same
and shali be solel�� responsible for the acts and omissions of its officers, members,
agents and einployees. Neither Fort ��jorth nor F��THA shall be responsible �uder
the Doctrine of Respondeat Superior for the acts or omissions of its officers,
members, agents, employees or officers of the other. No partnership or joint
venture is intended or forined bet«Teen Fort VVorth and FWHA by this Agreement.
F9 Immunit�� and Third Parties. It is expressly agreed that, in the e�ecution and
perfoimance of this Agreement, neither Fort V��orth nor FV��-IA waives, nor shall be
deemed to ���aive, a»y immunit�� or defense that would other���ise be. available to it
against claims arising in the exercise of their respective powers and functions.
Nothing in this Ab eement shall be construed to benefit an�� third part5� other than
an emplo5=ee or officer of Fort Worth or F��THA v�%hile in the performance of this
Agreeinent. This Ab eement may not be construed to e.�pand the liability of Fort
Worth or FVdHA beyond the scope of Chapter 101 of the Te�as Civil Practice and
Remedies Code, Vernon's Teaas Codes Arulotated unless specifically stated
herein.
6.IQ Amendment. No amendment, modification or alteration of this Agreeineiit shall
be binding unless the saine is in writing, dated subsequent to the date hereof and
e�ecuted by the Parties.
7. NOTICES.
All notices required by this Agreemen
follo���ing address, or at such other address
certified mail, postage prepaid or hand delivery;
Fort VVorth: Jerome C. Walker, Director
FVVHA:
Fort Worth Housing Department
1000 Throckmorton St.
Fort Worth, T�i 76102
t shall be addressed to the Parties at the
as either Party designates in v,�riting, by
Barbara Holston, E�ecutive Director
Fort Wortli Housing Authorii��
1201 E. 13rh Street
Fort Worth, TX 76102
HOUSING CHOICE VOUCHER HOM�EOWNERSHIP
PROGRAM AGREEMENT 10/Ol/06
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EXECUTED in multiple originals as of the last date indicated below:
CITY OF FO WORTH: J
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Dale i seler
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Assistant City Manager
Date: ���� �� ��
FORT W RTH HOUSIN UTHORITY:
sy: �'�;� ✓
Barbara Holston
Executive Director
Date: -/ � � � ��
ATTEST: ATTES �
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By: y: Ll-e-C�—����—e;,,� �-,, ��,c,�=�-�-�-Q�
Marty Hendrix Selarstean Mitchell
City Secretary Director of Assisted Housing
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Date
APPROVED AS TO FORM AND LEGALITY:
By:
Vicki S. Ganske
Senior Assistant City Attorney
HOUSING CHOICE VOUCHER HOMEOWNERSHIP
PROGRAM AGREEMENT 10/O1/06
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Page 1 of 2
City of Fort Worth, Texas
Ma or and Council Communication
v
COUNCIL ACTION: Approved on 9/19/2006 - Ordinance No. 17163-09-2006
DATE: Tuesday, September 19, 2006
LOG NAME: 05FWHA REFERENCE NO.: **C-21684
SUBJECT:
Authorize a Contract between the City of Fort Worth and Fort Worth Housing Authority for
Counseling Services for the Housing Choice Voucher Homeownership Program and Adopt
Appropriation Ordinance
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the City Manager to accept a grant of $69,204.00 from the Fort Worth Housing Authority
(FWHA) for providing housing counseling and homeownership training and related services to its Housing
Choice Voucher Homeownership Program (HCVHP) from May 11, 2006 to May 10, 2007;
2. Authorize the City Manager to execute a contract with the FWHA for $36,740.00 to provide housing
counseling, homeownership training and related services to the FWHA's HCVHP for the period from
October 1, 2006 to May 10, 2007;
3. Authorize the City Manager to amend, extend, or renew this contract in accordance with City of Fort
Worth (City) policies and regulations upon mutual agreement with the FWHA; and
4. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Grants Fund by $69,204.00 from available funds.
DISCUSSION:
The Fort Worth Housing Authority (FWHA) is allowed by the U.S. Department of Housing and Urban
Development (HUD) to implement Section 555 of the Quality Housing and Work Responsibility Act to create
a viable homeownership option for Section 8 Housing Choice Voucher recipients. Under the Housing
Choice Voucher Homeownership Program (HCVHP), Section 8 Housing Vouchers may be used to help
first-time homebuyers meet monthly mortgage and related housing payments and utility expenses.
Critical elements of the HCVHP are housing counseling and homeownership and post-purchase training.
The City's Housing Department is a HUD-certified counseling agency and has received other housing
counseling grants from HUD in the last five years. This year, the City received a$217,000.00
Comprehensive Housing Counseling grant from HUD. The Housing Department also administers a
Homebuyers' Assistance Program that provides financial assistance in the form of closing cost/down
payment assistance and/or deferred payment loans to eligible first-time homebuyers. These two City
programs complement FWHA's HCVHP and the City's participation in HCVHP helps meet its housing
counseling and homebuyers' assistance program goals set forth in the City's Consolidated and
Comprehensive Plans.
On March 23, 2004, (M&C C-19997) the City Council authorized the City Manager to enter into a contract
for $100,000 with the FWHA to provide the required counseling services and homeownership training for its
HCVHP. The contract which expired on May 10, 2006, was extended for the period from May 11, 2006 to
http://www.cfwnet.org/council�acket/Reports/mc�rint.asp 10/9/2006
Page 2 of 2
September 30, 2006, for a total payment of $32,464.00 to City by FWHA. A new contract redefining the
respective roles of the City and FWHA has been negotiated for the period from October 1, 2006 to May 10,
2007, for a total payment of $36,740.00 to City by FWHA.
This M&C seeks City Council approval for the City Manager to execute the new contract and to accept and
appropriate the grant funds from the FWHA totaling $69,204.00 ($32,464.00 for the extension of the
previous contract and $36,740 for the new contract).
The recommendations above were endorsed by the Central City Revitalization and Economic Development
Committee on September 5, 2006.
The HCVHP is available in ALL COUNCIL DISTRICTS.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that upon approval of the above recommendation and adoption of the
attached appropriation ordinance, funds will be available in the current operating budget, as appropriated, of
the Grants Fund.
TO Fund/Account/Centers
� $36,740.00
G R76 451343 005445138000
(4) GR76 5 $36,740.00
(VARIOUS) 005445138010
� $32,464.00
G R76 451343 005445924000
Submitted for Citv Manager's Office b�
Originating Department Head:
Additional Information Contact:
FROM Fund/AccounUCenters
Dale Fisseler (6140)
Jerome Walker (7537)
Benedict George (7339)
http://www.cfwnet.org/council�acket/Reports/mc�rint.asp 10/9/2006