HomeMy WebLinkAboutContract 34427STATE OF TEXAS
COUNTY OF TARRANT
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THIS conh�act ("Contract") is made and entered into by and 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 acting Assistant City Manager, and Ability
Resources, Inc. ("ARI"), whose address is 6040 Camp Bowie Blvd., Suite 31, Fort Worth, Texas
76116, acting by and through William Fuller, its duly authorized Secretary. (Sometimes City and
ARI are referred to individually as a"Party" and collectively as the "Parties").
WHEREAS, the City of Fort Worth ("City") has received a grant from the United States
Department of Housing and Urban Development ("HUD") through the Home Investment
Partnerships Program ("HOME"), Program No. M-OS-MC-48-0204, with which the City desires
to promote activities that expand the supply of affordable housing and the development of
partnerships among the City, local governments, local lenders, private indushy and
neighborhood-based nonprofit housing organizations;
WHEREAS, the primaiy purpose of the HOME program ("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 sec�. ("NAHA") and the HOME
Investment Partnerships Program Final Rule, as amended, 24 CFR Part 92 et seq. (the "HOME
Regulations" or "Regulations") is to benefit low and veiy-low income citizens by providing them
with affordable housing;
WHEREAS, the assigned catalog of Federal Domestic Assistance ("CFDA") for this
Federal program is number 14.239;
WHEREAS, ARI, a Texas nonprofit corporation managed by a volunteer Board of
Directors, is worlcing to assist low and veiy low income individuals who have special needs by
increasing the numbei• of safe, affoi•dable housing units available to them; and
WHEREAS, ARI has received a Firm Commitment for Capital Advance Financing from
HUD in the amount of SIX Hi1NDRED SEVENTY-TWO THOUSAND ONE HLTNDRED AND
NO/100 DOLLARS ($672,100.00) to assist in the financing of a multifamily rental housing
project for persons with disabilities in accordance with Section 811 of the National Affordable
Housing Act of 1990, as amended (42 U.S.C. 8013 et seq) and the applicable regulations (the
"Section 811 Program");
WHEREAS, the Section 811 Program requires that Capital Advance Financing be made
only to eligible single-purpose nonprofit organizations, therefore ARI created Integrated Living
Spaces, Inc., a Texas nonprofit corporation and a sole asset entity, for the purpose of constructing
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and then owning and managing an affordable multifamily rental housing project to be known as
the Willow Bend Creelc Apartments for a minimum of forty (40) years;
WHEREAS, City citizens and the City Council have determined that the development of
safe, decent, and affordable housing is needed for low and moderate income citizens with special
needs.
NOW, THEREFORE, THIS AGREEMENT FURTHER WITNESSETH:
I. GENERAL PROVISIONS
A. Puipose
The expi�ess puipose of this Contract is to provide ARI with HOME funds ("HOME
Funds") not to exceed SEVENTY-ONE THOUSAND and NO/100 Dollars ($71,000.00) for
eligible project and related soft costs for the construction of an affordable apai-tment complex to
be lcnown as the Willow Bend Creelc Apartments to provide a quality living environment for low-
income residents with disabilities (the "Project"). The apartment coinplex will be constrttcted,
owned and managed by Integrated Living Spaces, Inc ("ILSI"), a single assent entity created by
ARI to fulfill the conditions of the Section 811 Program. Construction will be in two (2) phases
using a Section 811 Capital Advance Grant and a forgivable, non-interest bearing subordinate
loan from HOME Funds. Phase I will include nine (9) one-bedi•oom units and a laundiy facility,
office and resource rooin. It is specifically agreed that the HOME Funds will be used to
supplement the HUD Section 811 Program financing for the Pi•oject. ARI will provide the
services and activities as set forth in Exhibit "A" - Project Summary in accordance with
Exl�ibit "C" - Project Implementation Timeline.
ARI has conveyed to ILSI the real property on which Phase I of the Project is to be
constructed in order to fulfill certain requirements of the Section 811 Program. To secure
performance of ARI's obligations under this Contract and the HOME Regulations, ILSI will
execute a forgivable, non-interest bearing Note in favor of City secured by a subordinate Deed of
Trust against the real property more particularly described as Lot 21B2, Block 4, of
BANKHEAD ESTATES, an addition to City of Fort Worth, Tan•ant County, Texas, the Map
thereof recorded in Cabinet A, Slide 10170, of the Plat Recor•ds of Tarrant County, Texas (the
"Property"). City's loan shall be subordinate to the Section 811 financing provided by HUD and
shall contain such covenants and conditions required by the Section 811 Pi•ogram and HUD,
including but not limited to the conditions under which City may enforce its loan in the event of
default. If the Project is occupied by eligible low income tenants for a pet•iod of twenty (20)
years as required by the HOME Regulations and the Section 811 Program„ the City loan will be
forgiven. The commencement of the twenty (20) year period is described in more detail below.
HOME Funds must be used for eligible activities and costs in connection with the Project
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ABILITY RESOURCES, INC., SPONSOR
as set forth in the HOME Regulations including but not limited to construction costs and soft
costs including architectural, engineering, attorney, consultant, appraisal and other applicable
fees directly related to carrying out the Project. Eligible activities and costs may include those
activities related to the Project that were incun•ed prior to the date of the execution of this
Contract. HOME Funds wil] be disbursed to ARI on a reimbursement basis upon ARI's request
in accordance with established City Housing Depai�tment policies for disbuisement of CHDO
funds.
City hereby certifies that ARI is a Community Housing Development Organization
("CHDO") and acts as a sponsor as defined by HUD.
City shall act through its agent the City Manager, or his or her duly authorized
representative, unless othei•wise stated in this Contract. ARI and ILSI agree to comply with the
HOME Regulations and any applicable City Codes and regulations.
B. Duration / Period of Affordabili
The term of this Contract begins on the date of execution and terminates one (1) year
thereafter except for any provisions relating to the fulfillment of the HOME requirements as
hereinafter defined. This Conh�act may be extended for an additional one (1) one-year term. ARI
shall request the extension in writing and submit the request to the City sixty (60) days prior to
the end of the Contract. It is specifically understood that it is within the City's sole discretion
whether to approve or deny the request for an additional term. Any such extension must be in
writing as an amendment to this Contract and approved by the City Manager or his or her
designee.
The per-unit subsidy provided for in this Contract shall be set forth in more detail in
Exhibit "A" — Project Summaiy. One (1) of the rental housing units developed by ARI will be
considered a HOME-assisted unit and must qualify as affordable rental housing for a period of
twenty (20) years (the "Affordability Period"). This unit may "float" throughout the total number
of units in the entire apartment complex and shall be affordable to tenants whose incomes are
verified as being at or below sixty percent (60%) of the area median income as defined by HUD.
If this one (1) housing unit does not qualify and remain as affordable rental housing for the
Affordability Period, the loan proceeds under this Contract shall be immediately due and payable
to the City. The Affordability Period shall commence on the later of (i) the date the Project has
been finished and ILSI has reported income-eligible tenant lease-up of all HOME-assisted unite
or units by repoi-ting to City all applicable tenant beneficiaiy data; or, (ii) the HOME assisted unit
or units are set up AND COMPLETED_in HUD's Integrated Disbursement and Information
System ("IDIS") as required by the HOME Regulations. The terms "set up" and "complete" or
"completed" shall have the meaning set forth in HUD's IDIS manual. ARI shall report tenant
lease-up beneficiary household characteristics to City on the form attached as Exhibit "A 1"-
Household Characteristics.
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ABILITY RESOURCES, INC., SPONSOR
The one (1) rental Lu�it assisted under this Conh�act will remain affordable as required by
24 CFR Part 92.252 of the Regulations. Rental housing purchased, renovated or constructed
with HOME Funds must remain affordable and subject to repayment for the following minimum
time periods: five (5) years where the per unit amount of HOME Funds provided is less than
$15,000; ten (10) years where the per unit amount of HOME Funds provided is less than $15,000
to $40,000; fifteen (15) where the per unit amount of HOME Funds provided is greater than
$40,000 or HOME-assisted rehabilitation of the units involved refinancing; and, twenty (20)
years when the assisted multi-family units are newly constructed. ARI must repay City any
HOME Funds attributable to any unit or units that do not maintain the HOME requirements.
Further, the rental housing units must remain affordable without regard to the term of any
mortgage or transfer of ownership, pursuant to the terms of the Loan Documents as hereinafter
described.
C. Income Eli ib�il'ity
The HOME Program uses the income definitions used by HUD's Housing Choice
Voucher Program. Annual income includes earned incoine, income fi•om assets, and income
from other sources as defined by 24 CFR 5.609. Annual income is used to establish tenant
eligibility. ARI shall use the most cuilent HUD Income Guidelines and Technical Guidance for
Determining Income and Allowances to determine Project eligibility.
D. Tenant Rent and Selection
Rents charged to tenants in HOME —assisted units are subject to review and approval by
City. Under no circumstances may the maximu�n rental amounts charged to tenants of HOME-
assisted units exceed the lesser of: a) the HUD established Fair Market Rent for existing
comparable housing units in the area; or b) thirty percent (30%) of the adjusted income of a
family whose income equals sixty five percent (65%) of the median income for the area, with
applicable adjustment for the bedroom size of the relevant housing unit. Rents may not exceed
the above amounts minus monthly allowances for utilities and services (excluding telephone)
established by HUD. City agrees to provide ILSI with copies of HUD-approved schedules of
maximum HOME rent levels if requested by ARI.
ARI shall ensure that ILSI adopts written tenant selection policies and criteria that:
1. Are consistent with the purpose of providing housing for veiy low-income and low-
income peisons.
2. Are reasonably related to Project eligibility and the applicants' ability to perform the
obligations of the lease.
3. Provide for a) the selection of tenants from a written waiting list in the chronological
order of their application, insofar as is practicable; and b) the prompt written notification
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to any rejected applicant of the grounds for rejection.
4. Ensure that holders of rental assistance subsidies (such as HUD's Housing Choice
Voucher or similar subsidy) are not excluded from renting a unit in the Project.
E. Lease
ARI shall ensure that ILSI uses a tenant lease that complies with the provisions in the
HOME Regulations, 24 CFR Part 92.253, regarding the following issues: length of lease terms,
agreement to be sued, treatment of property, responsibility of property owner, waiver of notice,
waiver of legal proceedings or juiy trial or right to appeal, and whether the tenant is chargeable
with cost of legal action regardless of outcome.
F. Construction and Other Local Buildin� Codes / Standards,
Housing units consti-ucted with HOME Funds furnished under this Contract shall meet
the International Building Code, City of Fort Worth Housing Miniinum Quality Standards and all
other applicable standards under the City Codes and ordinances.
G. Other Requirements
ILSI will be required to execute a Note and Deed of Trust secured by the Property ("Loan
Documents") in conjunction with this Contract. City's lien position on the Property shall be
subordinate to HUD's first lien Deed of Trust, a HUD Capital Advance Program Regulatoiy
Agreement and a HUD Capital Advance Program Use Agreement. The term of City's Loan shall
be concui•rent with the Affordability Period. Both ARI as sponsor and ILSI as owner of HOME-
assisted rental housing shall each be responsible for performing all terms of this Conh•act, and
pai-ticularly those i•egarding the Affordability Period, Income Eligibility, Tenant Rent and
Selection, Lease, and Housing Quality Standards foi• the designated HOME-assisted unit or units.
The HOME obligations must be assigned to any new owner upon sale or h•ansfer of the Property.
ARI shall obtain fi•om ILSI and maintain all appropriate documentation to demonstrate
that the CHDO funds shall not be used for costs that are ineligible under the HOME Program,
and that all such costs are paid for by other funding sources.
The Parties acknowledge that the HOME Funds paid hereunder are intended to provide
funding only for Project related soft costs and construction costs as specified in the attached
Exhibit "B"-Project Budget.
ARI agrees to maintain full documentation supporting fulfllment of Project objectives in
its files. All such documentation shall be furnished to City upon request if necessary for City to
fulfill its obligations under its Federal grant.
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H. Independent Contractor
ARI shall operate hereunder as an independent contractor and not as an officer, agent,
seivant or employee of City. ARI shall have exclusive control of, and the exclusive right to
control, the details of the worl< and seivices performed hereunder, and all persons performing
same, and shall be solely i•esponsible for the acts and omissions of its officers, members, agents,
seivants, employees, contractois, Project participants, licensees or invitees. The doctrine of
respondeat superior shall not apply as between City and ARI, its officers, members, agents,
setvants, employees, contractors, Project pai�ticipants, licensees or invitees, and nothing herein
shall be construed as creating a partnership or joint enteiprise between City and ARL It is
expressly understood and agreed that no officer, member, agent, employee, conh�actor, licensee
or invitee of neither ARI, nor any Project participant hereunder, is in the paid seivice of City and
that City does not have the legal right to control the details of the taslcs performed hereunder by
ARI, its officer•s, members, agents, employees, contractors, Project participants, licensees or
invitees.
City shall in no way nor under any circuinstances be responsible for any property
belonging to ARI, its officers, members, agents, employees, contractors, Project participants,
licensees or invitees, which may be lost, stolen, destroyed or in any way damaged; and ARI
hereby indemnifies and holds harmless City and its officers, agents, and employees fi•om and
against any and all claims or suits pertaining or connected with such property.
I. Termination
City may terminate this Contract in the event of ARI's or ILSI's default, inability or
failure to perform, or otherwise whenever such termination is determined by City to be in the
City's best interest. Lilcewise, this Contract may be terminated by ARI if the City does not
provide the HOME Funds set forth in this Contract. The Conh•act may be terminated for mutual
convenience upon written agreement of the Parties.
City shall notify ARI in writing of any breach of this Conh•act whether by ARI or ILSI,
and specify a reasonable time within which to cure the particular breach. If ARI fails to cure the
bi•each within the tiine stated in the notice, this Contract shall automatically terminate at the
expiration of the stated time allowed for cure.
ARI will return to City any unused HOME Funds previously distributed under this
Contract within thirty (30) days of the effective date of Contract termination. City will have no
responsibility or liability for ARI's expenditures or actions occurring after the effective date of
Contract termination. However, any applicable affordability requirements shall survive the
termination of this Contract and shall be governed by the HOME Regulations and the provisions
of the Loan Documents securing affordability.
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J. Venue
Venue for any action, whether real or asserted, at law or in equity, arising out of the
execution, performance, attempted performance or non-performance of this Contract, shall lie in
Tai-��ant County, Texas.
K. Written Instrument is Entire Agreement
All tei•ms of this Contract shall apply to any and all contractors of ARI or ILSI which are
in any way paid with HOME Funds or who perform any worlc in connection with ARI's Project.
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 oi� commission having jurisdiction over the subject matter hereof, such
invalidity shall not affect other provisions which can be given effect without the invalid
pr�ovision.
City's failure to insist upon the pei•formance 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 firture occasion.
This written instrument and the Exhibits attached hereto, which are incorporated by
reference and made a part of this Contract for all purposes, constitutes the entire Contract by the
Parties concerning the worlc and services to be performed under this Contract. Any prior or
contemporaneous oral or written agreement, which purports to vaiy the terms of this Conri�act,
shall be void, Any amendments to the terms of this Contract must be in writing and must be
approved by each party to this Contract.
The paragraph headings contained herein are for convenience in reference to this
Contract and are not intended to define or to limit the scope of any provision of this Contract.
2. DUTIES AND RESPONSIBILITIES OF CITY
A. Disbursement of Funds
City will furnish HOME Funds for use as stated herein. City will monitor the use of such
funds to ensure appropriate use. Funds shall be disbuised on a reimbursement basis after
execution of this Contract and compliance with its provisions. Payments to ARI shall require
completion of appropriate City forms and copies of adequate supporting documentation verifying
the �eligibility of expenses. Reimbursement of eligible expenses shall be made against the line
item budget specified in Exhibit "B"- Project Budget of this Conh�act. ARI may not increase or
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decrease line-item amounts of the Project Budget without City's prior written approval. No
additional funds will be disbuised if the City has not received the necessary financial reports that
account for previously disbursed funds. Costs eligible for reimbursement may include certain
costs dii�ectly related to and in support of the Project, as verified by City, which were incurred
prior to execution of this Contract, To further the puiposes of the Project and only as requested
in writing by ARI, City may disburse funds to directly pay ARI's vendors in accordance with the
City Housing Department's Disbursement Policy for Community Housing Development
Organizations.
B. Amount of Funds
It is agreed that the total dish�ibution of HOME Funds made available to or paid on behalf
of ARI, during the term of this Contract shall not exceed the total sum of SEVENTY-ONE
THOUSAND and NO/100 Dollais ($71,000.00).
3. DUTIES AND RESPONSIBILITIES OF ARI
A. Statement of Work and Performance Obiectives
ARI shall utilize HOME Funds to supplement its Section 811 Grant i�eceived from HUD
to consh�uct a rental housing apartment complex to produce affordable housing units for lease to
qualified low-income tenants in accordance with Exhibit "A"-Project Summary.
B. Budget
ARI agrees that the HOME Funds will be expended in accordance with the attached
Exhibit "B"- Project Budget. No change in the Project Budget shall be made without City's
prior written approval.
ARI shall demonstrate to City's satisfaction that the CHDO funds shall be leveraged by
other funding sources.
C. Time Line for Goals and Expendihues
ARI shall worl< in accordance with the schedule set forth in the attached Exhibit "C"-
Project Implementation Timeline and ensure that Project goals and expenditures correspond
with the completion of the Project.
D. Reversion of Assets
ARI agrees to return to the City any HOME Funds, or property acquired with HOME
Funds (whether such property is titled in the name of ARI or ILSI), remaining on hand at the end
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of the Contract. If repayments, interest or other returns on investment attributable to HOME
Funds are received after the end the term of this Contract, they shall be returned to City to be
deposited in accordance with HOME Regulations,
E. Affirmative Marketin�
ARI must ensure that ILSI adopts affirmative marketing procedures and requirements for
all HOME-funded housing. The procedures and requirements must include methods for
informing the public, owners and potential tenants about Fair Housing laws and policies so as to
ensure that all individuals, without regard for race, color, religion, sex, national origin, familial
status or disability, are given an equal opportunity to participate in the Project. ARI will be solely
responsible for the effective marlceting responsibilities necessa�y to achieve ARI's Project goals,
F. Provisions to Secure Affordability Period
1. The City's interest in preseiving the HOME-requit•ed Affordability Period for the HOME-
assisted units will be secured by a combination of the subordinate Note and Deed of Trust
referenced herein, and the Capital Advance Program Use Agreement ("HUD Use Agreement")
established and enforced by HUD for the HUD Section 811 Grant. If ILSI retains ownership of
the Property for the full twenty (20) year Affordability Period, no fui-ther HOME restrictions will
apply.
2. Any sale or transfer of the Property by ILSI during the Affordability Period will require
the new owner or transferee to affirmatively assume in writing the obligations established
hei•eunder for the designated HOME-assisted units.
3. Refinancing by ISLI shall require the review and prior written approval of the City for the
purpose of ensuring compliance with the HOME affordability requirements.
G. Recordkeepin�
1. ARI will keep or cause to be 1<ept an accurate record of all actions talcen and all funds
expended, with source documents, in performance of this Contract. Such records shall be lcept
for the period of affordability mandated by the HOME Regulations and this Contract.
2. ARI will obtain fi•om ILSI and lceep on file the following information on each tenant
served by the HOME-assisted units of the Project throughout the Affordability Period.
a. Annual income and size of the household;
b. Race and Ethnicity of each tenant household using reporting categories as
required by HUD,
c. Whether the head of household is male or female, whether the head of
household is single, and whether there are children in the household; and
d. Any additional Project perfoimance data and statistical infoi•mation as may
be required by the City Housing Depai�tinent, HOME Regulations or HUD
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regulations and any amendments thereto.
3. ARI will keep on file the following information and documentation:
a. Proof that the Pt•oject meets the applicable property and other standards;
b. Documentation verifying co�npliance with the affirmative marketing
requirements and existence of acceptable procedures;
c. Documentation verifying compliance with ARI's temporary relocation
plan and HUD relocation requirements, if applicable; and
d. Documents and other information verifying compliance with HOME
conflict of interest regulations at 24 CFR 92.356 (�, which provide that no
officers, agents, consultants or employees of the developer of HOME-
assisted units may occupy such units.
H. Reports
During the term of this Contract, ARI will submit to City monthly activity reports
and financial repoi-ts due by the 15`�' of the each month, regarding the seivices provided
by ARI or ILSI as a result of this Contract, and the expenses chaiged to the HOME Funds
provided through this Contract, with the first report due on the 15t�' of the month
immediately following the execution of this Contract. These reports shall be submitted in
the format specified by the City. The reports will provide details on:
1. Progress toward achievement of objectives identified in Exhibit "A"- Project Summary.
2. The dollar amount of funds leveraged by this Contract, including items that qualify as
HOME match.
3. Reports shall be submitted in the format specified by City.
ARI will submit to City annually during the HOME affordability period a copy of the
report ILSI provides to HUD for reporting purposes for the Section 811 Grant.
L Cost Principles
ARI shall administer the Project in compliance with OMB Circular A-122, "Cost
Principles for Non-Profit Organizations", as amended fi•om tiine to time and with the following:
All non-federal entities that expend $500,000 or more in Federal funds within one 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 ARI'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 public accountant, be completed within twelve (12) months
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following the end of the period being audited and be submitted to City within thirty (30) days of
its completion. ARI'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 (ARI'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 ARI's total agency opei•ating budget, Non-profit entities that expend less
than $500,000 a year in Federal funds are exempt fi•om 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.
City resei•ves the right to perform an audit of the Project 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, and ARI agrees to allow access to all pertinent matei•ials
as described in Section G, Record Retention and Reports. If such audit reveals a questioned
practice or expenditure, such questions must be resolved within fifteen (15) days after notice to
ARI of such questioned practice or expenditure. If questions are not resolved within this period,
City rese�ves the right to withhold fiu-ther funding under this Contract and/or future contract(s)
with ARI.
If as a result of any audit it is determined that ARI or ILSI has misused, misapplied or
misappropriated all or any part of the HOME Funds, ARI agrees to reimburse the City the
amount of such monies so misused, misapplied or misappropriated, plus the amount of any
sanctions, penalty or other chaige levied against City by HUD because of such misuse,
misapplication or misappropriation.
J. Monitor Effectiveness of Services and Worlc
City will review the activities and perfoi•mance of ARI and/or ILSI for this Project not
less than annually during the term of this Contract as required in Section 92.504 (a) of the
HOME Regulations and not less than eveiy three (3) years during the affordability period
following completion of the HOME-assisted units as required by Section 92.504(d)(1) of the
HOME Regulations.
ARI agrees to fully cooperate with City in monitoring the effectiveness of the seivices
and worlc to be performed by ARI and ILSI in compliance with the terms of this Contract. City
shall have access at all reasonable hours to offices and records (dealing with the use of the funds
that are the basis of this Contract) of ARI and ILSI and their respective officers, directors, agents,
einployees, and contractors for the purpose of such monitoring.
ARI agrees to likewise monitor the effectiveness of the services and worl< to be
performed by its contractors.
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K. Compliance with All A�plicable Laws and Regulations
ARI agrees to comply and ensure that ILSI complies with the following laws and the
regulations as they are cui7�ently written or are hereafter amended during performance of this
Contract:
(1) Federal
Title VI of Civil Rights Act of 1964 (42 USC 2000d et sec�.)
Title VIII of Civil Rights Act of 1968 (42 USC 3601 et seq.)
Executive Orders 11063, 11246, as amended by 11375 and 12086 and as
supplemented by Depai-tinent of Labor regulations 41 CFR, Part 60
The Age Discrimination in Employment of 1967 (29 USC et seq.)
The Age Discrimination Act of 1975 (42 USC 6101 et seg.)
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 in 24 CFR Part 58
The Clean Air Act, as amended, (42 USC 1251 et seq.) and 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.
Immigration Reform and Control Act of 1986 (8 USA 1101 et seq.) specifically
including the provisions requiring employer verifications of legal status of its
employees
The Americans with Disabilities Act of 1990 (42 USC 12101 et seq.), the
Architectural Barriers Act of 1968, amended, (42 USC 4151 et seq.) and the
Uniform Federal Accessibility Standards, 24 CFR Part 40, Appendix A
HOME Investment Partnerships Act at Title II of the Cranston Gonzales National
Affordable Housing Act of 1990, as amend, 42 U.S.C. 12701 et seq. ("NAHA")
Regulations at 24 CFR Part 87 related to lobbying, including the requirement that
certitications and disclosures be obtained from all covered peisons
Drug Free Workplace Act 1988 (41 USC 701 et secl.) and 24 CFR Part 23,
Subpart F
Executive Order 12549 and 24 CFR Part 5.105 (c) pertaining to restrictions on
participation by ineligible, debai7�ed or suspended persons or entities
Regulations at 24 CFR Part 882.708 (c) pertaining to site and neighborhood
standards for new construction projects
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(2) Section 3 of the Housin� and Urban Devel�ment Act of 1968 as amended, (12 USC
1701 u et ser�.) and its related re�ulations at 24 CFR Part 135
As the worlc perfornled under this Contract is on a project assisted under a program
providing direct Federal financial assistance fi•om 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 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 econo�nic
opportunities generated by HUD assisted 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 thein fi•om complying with the Part 135 regulations.
C. The contractor agl•ees to send to each labor organization or representative of
workers with which it has a collective bai•gaining agreement or� other understanding, if any, a
notice advising the laboi• organization or worl<ers' representatives of the contractor's
commitments under this Section 3 clause and will post copies of the notice in conspicuous places
at the worl< site where both employees and applicants for training and employment 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) talcing applications for each of
the positions; and the anticipated date the work shall begin.
D. The contractor agrees that it will include this Section 3 clause in eveiy subcontract
to comply 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 finding
that the subcontractor is in violation of the regulations in 24 CFR Part 135. The contractor will
not subcontract with any subcontractor where it has notice or knowledge that the subcontractor
has been found in violation of regulations in 24 CFR 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. Noncoinpliance with HUD's regulations in 24 CFR Part 135 may result in
sanctions, termination of this conri�act for default, and debarment or suspension from future HUD
assisted contracts.
G. With respect to worl< 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 worl< to be performed under this Contract. Section 7(b)
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HOME FUNDS CHDO SET-ASIDE REV. 12-12-06
ABILITY RESOURCES, INC., SPONSOR
t�equii•es 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 conh�acts and
subconri�acts shall be given to Indian organizations and Indian—owned Economic Enteiprises.
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 coinpliance with
Section 7(b)."
City and ARI 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 Project, binding upon the City and
ARI, and their respective successors, assigns and subcontractors. Failure to fulfill these
requirements shall subject ARI and its contractors, 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.
(3) Other Laws
ARI covenants and agrees that its officers, members, agents, employees, Project
participants and contractors and those of ILSI shall abide by and comply with all other laws,
(Federal, state and local) relevant to the performance of this Contract, including all City
ordinances, rules and regulations and the HOME Regulations. ARI further promises and agrees
that it has read, and is familiar with, the terms and conditions of the Federal grant under which
HOME Funds are granted and that it will fiilly comply with them. It is agreed and unde�stood
that, if City calls the attention of ARI to any such violations on the part of ARI, ILSI or any of
their respective officers, members, agents, employees, Project participants or conh•actors, then
ARI shall immediately desist fi�om and correct such violation.
(4) Prohibition Against Discrimination
ARI, in the execution, performance or attempted performance of this Contract will not
discriminate against any peison because of sex, race, religion, color or national origin, or familial
status, nor will ARI permit its officers, members, agents, employees, contractors or Project
participants to engage in such discrimination.
During the performance of this Contract ARI agrees, and will require ILSI and all its
contractors to agree, as follows:
ARI will not unlawfully discriminate against any employee or applicants for
employment because of race, color, religion, sex or national origin. ARI will talce
affirmative action to ensure that applicants are employed and that employees are
treated fairly during employment without regard to their i•ace, color, religion, sex
or national origin. Such action shall include, but not be limited to, the following:
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HOME FUNDS CHDO SET-ASIDE REV. 12-12-06
ABILITY RESOURCES, INC., SPONSOR
employment, upgrading, demotion or h�ansfer, recruitment or recruitment
advertising, layoff or termination, rates of pay or other forms of compensation,
and selection for training, including apprenticeship. ARI agrees to post in
conspicuous places, available to employees and applicants for employment,
notices setting forth the provisions of this nondiscrimination clause.
ARI will, in all solicitations or advertisements for employees placed by oi� on behalf of
ARI, state that all qualified applicants will receive consideration for employment without
regard to race, color, t•eligion, sex or national origin.
ARI covenants that neither it nor any of its officers, members, agents, employees, Project
participants or contractois, 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 einployment, discriminate
against peisons because of their age or because of any handicap, except on the basis of a
bona fide occupational qualification, retirement plan or statuto�y requirement.
ARI further covenants that neither it nor its officeis, members, agents, employees,
contractors, Project participants, or persons acting on their behalf, shall specify, in
solicitations or advertisements for employees to work on this Conh�act, a maximum age
limit for such employment unless the specified maximum age limit is based upon a bona
fide occupational qualification, retirement plan or statutoiy requirement.
In accordance with the provisions of the Americans With Disabilities Act of 1990
("ADA"), ARI warrants that it and any of its contractors will not unlawfully discriininate
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,
or employees of ARI or any of its contractors. ARI wai7�ants it will fully comply with
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 contractors against City arising out of ARI's and/or
its contractors' alleged failure to comply with the above-referenced laws concerning
disability discrimination in the performance of this Contract.
This Contract 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 of the City of Fort Worth, and ARI hereby covenants and
agrees that ARI, its officers, members, agents, employees and contractors, have fully
complied with all provisions of same and that no employee, applicant or Project
participant has been discriminated against under the terms of such ordinances by eithei�
the ARI or its officers, members, agents, employees or contractors.
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HOME FLTNDS CHDO SET-ASIDE REV. 12-12-06
ABILITY RESOURCES, INC., SPONSOR
(5) Prohibition A�ainst Intei•est
No member, officer or employee of City or its designees or agents; no member of the
governing body of the locality in which the Project is situated; and no other public official of
such locality or localities, who exercises any functions or responsibilities with respect to the
Project funded hereunder during his or her tenure or for one (1) year thereaftei•, shall have any
interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for worl< to be
performed hereunder. ARI shall incorporate, or cause to be incorporated, like language
prohibiting such interest in all contracts and subcontracts entered into in connection with the
Project.
No officer, employee, member or Pt•oject pai-ticipant of ARI, ILSI or their respective
contractors shall have a financial interest, direct or indirect, in this Contract or the HOME Funds
transferred hereunder or be financially interested, directly or indirectly, in the sale to ARI or ILSI
of any land, materials, supplies or services purchased with any funds transfe�-��ed hereunder,
except on behalf of ARI or ILSI, as an officer, employee, member or Pi•oject participant. Any
willful violation of this paragraph with the lcnowledge, expressed or implied, of ARI, ILSI or its
conh�actors shall render this Contract voidable by the City.
No officer, employee, agent, consultant, elected official or appointed official of the
participating jtuisdiction, ARI, ILSI or their respective contractors who exercised any functions
or responsibilities with respect to activities assisted with HOME funds or who are in a position to
participate in a decision mal<ing process or gain inside inforination with regard to these activities,
may obtain a financial interest or benefit fi�om a HOME assisted activity, or have an interest in
any conti•act, subcontract, or agreement with respect thereto, or the proceeds thereunder, either
for themselves or those with whom they have family or business ties, during their tenure oi• for
one (1) year thereafter.
(6) Minority and Women Business Enteiprise Commitment
ARI agrees to abide by the City's policy to involve Minority and Women Business
Entei•prises ("M/WBEs") in all phases of its procurement practices and to provide them equal
opportunity to compete for contracts for construction, provision of professional sei-vices,
purchase of equipment and supplies and provision of other seivices required by City. Therefoi•e,
ARI agrees to incorporate City Ordinance No. 15530, and all amendments or successor policies
thereto, into all contracts and subcontracts and will further require all persons or entities with
whom it contracts to comply with said ordinance.
L. Assi i�ent
ARI shall not assign all or any part of its rights, privileges, or duties under this Conh�act
without the prior written approval of City. Any attempted assignment of same without approval
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HOME FiJNDS CHDO SET-ASIDE REV. 12-12-06
ABILITY RESOURCES, INC., SPONSOR
shall be void, and shall constitute a breach of this Contract. It is agreed that the City has the right
to inspect and approve in writing any proposed contracts between ARI and any contractor
engaged in any activity in conjunction with this HOME funded Project prior to any charges being
incurred.
M. Indemnification and Release
ARI 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 ANll/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 PROJECT 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 ARI 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 HINDS OR CHARACTER, WHETHER REAL OR
ASSERTED, ARISING OUT OF OR IN CONNECTION WITH THE EXECUTION,
PERFORMANCE, ATTEMPTED PERFORMANCE OR NONPERFORMANCE OF
THIS CONTRACT AND AGREEMENT AND/OR THE OPERATIONS, ACTIVITIES
AND SERVICES OF THE PROJECTS DESCRIBED HEREIN, WHETHER OR NOT
CAUSED IN WHOLE OR IN PART, BY ALLEGED NEGLIGENC� OF OFFICERS,
AGENTS, SERVANTS, EMPLOYEES, CONTRACTORS OR SUBCONTRACTORS OF
CITY. ARI LIKEWISE COVENANTS AND AGREES TO AND DOES HEREBY
IND�MNIFY 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 ARI, ITS OFFICERS,
MEMBERS, AGENTS, EMPLOYEES, SUBCONTRACTORS, INVITEES, LICENSEES,
OR PROJECT PARTICIPANTS, OR CAUSED, IN WHOLE OR IN PART, BY
ALLEGED NEGLIGENCE OF OFFICERS, AGENTS, SERVANTS, EMPLOYEES,
CONTRACTORS OR SUBCONTRACTORS OF CITY.
IT IS THE EXPRESS INTENTION OF THE PARTIES, BOTH ARI AND CITY,
THAT THE INDEMNITY PROVIDED FOR THIS SECTION INCLUDES INDEMNITY
BY ARI TO INDEMNIFY AND PROTECT CITY FROM THE CONSEQUENCES OF
CITY'S OWN NEGLIGENCE, WHETHER THAT NEGLIGENCE IS ALLEDGED TO
BE THE SOLE OR CONCURRING CAUSE OF THE INJURY, DAMAGE OR DEATH.
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HOME FUNDS CHDO SET-ASIDE REV. ]2-12-06
ABILITY RESOURCES, INC., SPONSOR
ARI 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 INCIDENTIAL TO PERFORMANCE UNDER THIS
CONTRACT, EVEN IF THE INJURY, DEATH, DAMAGE OR LOSS IS CAUSED BY
THE CITY'S SOLE OR CONCURRENT NEGLIGENCE.
ARI SHALL REQUIRE ALL OF ITS CONTRACTORS TO INCLUDE IN THEIR
SUBCONTRACTS A RELEASE AND INDEMNITY IN FAVOR OF THE CITY IN
SUBSTANTIALLY THE SAME FORM AS ABOVE.
N. Waiver of Immunity
If ARI, as a charitable or nonprofit organization, has or claims an immunity or exemption
(statutory ot• otherwise) fi�om and against liability for damages or injuiy, including death, to
peisons or pi�operty, Contractor hereby expressly waives its rights to plead defensively such
iinmunity or exemption as against City. This section shall not be construed to affect a
governinental entity's immunities under constitutional, statutoiy or common law.
O. Insurance and Bonding
ARI will maintain blanlcet fidelity coverage in the form of insurance or bond in the
amount of $30,000.00 or more to insure against loss fi•om the fi•aud, theft or dishonesty of any of
ARI's or ILSI's officers, agents, trustees, directors or employees. The proceeds of such bond
shall be used to reimburse City for any and all loss of HOME Funds occasioned by such
misconduct. To effectuate such reimbuisement, such bond shall include a ridei• stating that
reimbursement for any loss or losses thereunder shall be made directly to City for the use and
benefit of ARI.
ARI shall furnish to City, in a timely manner, certificates of insurance as proof that it has
secured and paid for policies of commercial insurance as specified herein. Such insurance shall
cover all insurable rislcs incident to or in connection with the execution, performance, attempted
performance or nonperformance of this Contract. ARI shall maintain the following coverages
and limits thereof:
Commercial General Liability (CGL) Insurance
$500,000 each occurrence
$1,000,000 aggregate limit
Business Automobile Liability Insui•ance
$1,000,000 each accident on a combined single-limit basis, or
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HOME FLTNDS CHDO SET-ASIDE REV. 12-12-06
ABILITY RESOURCES, INC., SPONSOR
$250,000 Property Damage
$500,000 Bodily Injuiy per peison per occui7•ence
$2,000,000 Aggregate
Insurance policy shall be endorsed to cover "Any Auto"
Pending availability of the above coverage and at the discretion of ARI, the policy shall
be the prima�y responding insurance policy versus a personal auto insurance policy if or
when in the course of ARI's business as contracted herein.
Workers' Compensation Insurance
Part A: Statutoiy Limits
Part B: Employer's Liability
$100,000 each accident
$100,000 disease-each employee
$500,000 disease-policy limit
Note: Such insurance shall cover employees performing worlc on any and all projects
including but not limited to construction, demolition, and rehabilitation. ARI or its
contractois shall maintain coverages. In the event the respective contractors do not
maintain coverage, the ARI shall maintain the coverage on such contractor for each
applicable contract.
Directoi•s and Officers Insurance
Optional (Highly Recommended)
Note: This insurance shall cover the ARI and any associated Boai•d of Directors
members.
Additional Requirements
Such insurance amounts shall be revised upward at City's option and that SHI shall revise
such amounts within thirty (30) days following notice to ARI of such requirements.
ARI will submit to City documentation that it has obtained insurance coverage and
has executed bonds as required in this Contract prior to payment of any monies provided
hereunder.
Each insurance policy shall be endorsed to provide City with a minimum sixty (60) days
notice of cancellation, non-renewal, and/or material change in policy terms or coverage.
Insurance policies required herein shall be endoised to include City as an additional
insured as its interest may appear. Additional insured parties shall include employees, officeis,
agents, and volunteers of the City.
The Worlcers' Compensation Insurance policy shall be endorsed to include a waiver of
subrogation, also referred to as a waiver of rights of recoveiy, in favor of City.
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HOME FUNDS CHDO SET-ASIDE REV. 12-12-06
ABILITY RESOURCES, INC., SPONSOR
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 ARI's insurance policies shall be licensed to do business in the state of Texas
by the Departinent of Insurance or be otherwise eligible and authorized to do business in the state
of Texas. Insurers shall be acceptable to the City insofar as their financial strength and solvency
and each such coinpany shall have a current minimum A.M. Best Key Rating Guide rating of A:
VII or other equivalent insurance indushy standard rating otherwise approved by the City of Fort
Worth.
Deductible limits on insurance policies shall not exceed $5,000 per occut7�ence unless
otherwise approved by City.
In the event there are any local, fedei•al or other regulatoiy insurance or bonding
requirements for the Project, and such requirements exceed those specified herein, the former
shall prevail.
As applicable, ARI shall require its conri�actors to maintain applicable insurance
coverages, limits, and other requirements as those specified herein; and, ARI shall require its
contractors to provide ARI with certificate(s) of insurance documenting such coverage. Also,
ARI shall require its contractors to have City and ARI endorsed as additional insureds (as their
interest may appear) on theii• respective insurance policies. ARI shall require its contractors to
inaintain buildei•s risl< insurance at the limit of applicable project(s) costs when the value of
matei•ials involved exceeds $10,000 or at a different limit value as specified by City .
P. Certification Regardin�bying
The undersigned representative of ARI hereby ceirtifies, 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
ARI or ILSI, to any person for influencing or atteinpting to influence an officer or
employee of any agency, a member of Congi•ess, an officer or employee of Congress in
connection with the awarding of any Federal contract, the mal<ing 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.
If any funds other than federally 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, member of Congress in connection with this Federal contract, grant, loan or
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HOME FUNDS CHDO SET-ASIDE REV. 12-12-06
ABILITY RESOURCES, INC., SPONSOR
cooperative agreement, ARI or ILSI as the case may be shall complete and submit
Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its
instructions.
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 mal<ing or entering into this Contract imposed by 31 USC Section 1352.
Any person who fails to file the 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.
ARI shall require that the language of this certification be included in all
subcontracts or agreements involving the expenditure of Federal funds.
Q. MISCELLANEOUS PROVISIONS
All tei•ms of this Conh•act shall apply to any and all contractors of ARI who are in any way
paid with HOME Funds or who perform any worlc in connection with the Project.
All notices required or permitted by this Conh•act must be in writing and are deemed
delivered on the earlier date of the date actually received or the third day following (i) deposit in a
Untied States Postal Seivice post office or receptacle; (ii) with proper postage, certified mail
return receipt requested; and (iii) addressed to the othei� Party at the address set out in the
preainble of this Contract or at such other address as the i•eceiving Party designates by proper
notice to the sending Party.
If applicable, ARI must meet conditions and limitations for use of HOME Funds
involving a primarily religious entity as set forth in the HOME Regulations.
ARI shall notify City in writing of any changes in its 501 (c) (3) tax exempt status during
the term of this Conh•act as well as any other change that alters ARI's certification as a CHDO
undei• the HOME Regulations. ARI agrees to document its continued compliance, including but
not limited to annually providing City with an updated board roster and vei•ification of continued
compliance with i•equirements for maintaining certification as a Community Housing
Development Organization.
[SIGNATURES APPEAR ON FOLLOWING PAGE]
Page 21
HOME FUNDS CHDO SET-ASIDE REV. 12-12-06
ABILITY RESOURCES, INC., SPONSOR
IN WIT`NESS WHEREOF, the Parties have exec,u,.�t d four copies of this Contract in Fort
Wortn, Tarrant County, Texas, this 'p��'�day of PU���r.� , 2006
ATTEST:
V Y � ��" �'h � I '
�.;ity Secretary
APP OVED AS TO FO M AND LEGALITY:
� � �e �'�_1 �-2r�r�-^
,� L�.�_ , _ �"�
Asst. City Attorney
�, `� �� /`�� - —
Contract �uthoxizatio�
� -�%: �-���-�--.
Date
CITY OF FORT WORTH � �
�
;�
; ,
By: ('���. ` -- 2- � •�. `„=�
,.
Dale �: Fisseler
Assistant City Manager
ABILIT R �URCES, INC.
By: - /;,
William ��ill r, Secretary
CJ(�G��Ca�� G�?[���'{��D
C� li� ��r���C�d Gl��
�o '�l�Jii�'�i�p U15�4�4
Page 22
HOME FUNDS CHDO SET-ASIDE REV. 12-12-06
ABILITY RESOURCES, INC., SPONSOR
STATE OF TEXAS §
COUNTY OF TARRANT §
This instrument was acknowledged before me on �� C.�=%'✓� � L�� �- � , 2006 by Dale
A. Fisseler, Assistant City Manager of the City of Fort orth, on �b hal the City of Fort Worth.
� ( ,[�'�2`/ ;%i�- ��/�.�J�i�Go
�1,�vv� ANA L. BR SENO Nota Public, State of Texas
Not�ry Public �'
* `� " STA�'� OV� TEXAS
������y Mjl C011Vi1, �xp, 01116/2007
STATE OF TEXAS §
COUNTY OF TARRANT §
This instrument was acknowledged before me on �-' ''�; 2006 by
William Fuller, Secretary of Ability Resources, Inc., a Texas non-profit corporation, on behalf of
said corporation.
� �_
� �✓i1,,7�,�- � I 1 ',Gl/L� .:T� 1t .� .-
Notary Public, State of Texas
Page 23
HOME FLJNDS CHDO SET-ASIDE REV. 12-12-06
ABILITY RESOURCES, 1NC., SPONSOR
PROJECT SUMMARY
ABILITY RESOURCES, INC,
WILLOW BEND CREEK APARTMENTS
CRSONALSERVICES
UPPLIES
N'PRACTUAL SF.RVICES (New �lulli-Fnmily Housin
PtTAL OUTLAY
7'A L
RIPTION:
nfrasl
EXHIBIT A
2005 HOME-CI
$0
$0.00
$71,000.00
$0.00
$7 I ,000, 00
Ability Resources, Inc. will act through its a�liate ILSI to construct and manage a nine (9) unit apartment development
to be leased to persons with disabilities.
HOME CHDO Funds will be used to supplement a$ 672,100.00 Section 811 Grant ARI received from HUD for the
development of the Willow Bend Creek Apartments. CHDO Funds will provide funds for the following infrastructure
and site improvements:
Cost
Installation of Water and Sewer Lines $44,701.00
Pre-development-Land Surveys and Re-plats $4,517.75
Planning and Zoning $2,476.00
Approach and Walks $8,750.00
Environmental $10,555.25
otal
$71,000.00
I will submit a copy of its annual audit covering all of its operations and affiliates to the City for the term of this
ntract.
ROJECT OBJECTIVE AND OUTCOME:
Objective-Provide decent affordable housing
PROJECT DESCRIPTION:
Outcome-Availability/accessibility
To construct and lease a nine (9) unit, new apartment development for persons with special needs.
One (1) unit in the apartment complex will be designated as a HOME assisted unit and will be allowed to float
throughout the complex. This unit must remain affordable to a person whose income does not exceed 60%
of the area median income, according to family size, for a period of 20 years.
The twenty (20) year Affordability Period shall commence on the later of (i) the date the Project
has been completed and ILSI has reported income eligible tenant lease-up of all HOME-assisted units
by reporting to City all applicable tenant beneficiary data, or (ii) the HOME assisted unit or units are
set up AND COMPLETED in HUD's Integrated Disbursement and Information System ("IDIS") as required
by the HOME Regulations. SEE HOUSEHOLD CHARACTERISTICS Report attached as Exhibit A 1.
tOJECT MEASURES: Projected
Goals
Number of units constructed 9
E%HIBIT A 1
�. fiOUSeiIO�Ci CilafaCteflStlCS. (Use codes indicated below)
Household
Unit # # of Occupant Total Monthly % Med Hispanic? Raee Size Type Assistance Type
Bdrms Rent YIN
# of Bdrms
0 — SRO/Efficiency
1 — 1 bedroom
2 — 2 bedrooms
3 — 3 bedrooms
4 — 4 bedrooms
5— 5 or more bedrooms
Household Slze
1 — 1 person
2 — 2 persons
3 — 3 persons
4 — 4 parsons
5 — 5 persons
6 — 6 persons
7 — 7 persons
8— 8 or more persons
Oceupant
1 — Tananl
2 — Owner
9 — Varant Unit
Household Tvue
1 — Single, non-elderiy
2 — EldeAy
3 — Single parent
4 — Two parenls
5 — O�het
Household % of Med
1—Oto30%
2 — 30+ to 50 %
3—SO+to60q
4 — 60+ to BD%
Assistance Tvpe
1 — Section 8
2 — HOME TBRA
3 — Olher federal, slale,
or local assistance
4 — no assistance
Household Raca
11 — White
12 — 81ack or African American
13 —Asian
14 —American Indian or Alaska Native
15 — Native Hawaiian or Other Pacific Islander
16—American Indian orAlaska NaGve & While
17 —Asian 8 V✓hile
18 — Black or African American & White
19 —American Indian or Alaska NaGve & Black or African American
20 — Other Multi Racial
Page 3 of 7 Revised (8/06)
EXHIBIT B
ABILITY RESOURCES, INC.
WILLOW BEND CREEK APARTMENTS
PROJECT BUDGET
SCOPE OF WORK
Building Construction
Title, Recording, Insurance
Architectural
Change Orders
Land Payment
Legal and Audit
Developer's Fee
Sub-total Section 811
Installation of Water and
Sewer Lines
SECTION 811 FUNDS
$546,366.00
$ 13,000.00
$ 31,471.00
$ 17,725.00
$ 21,516.00
$ 8,000.00
$ 34,022.00
Pre-development-Land Suiveys
and Re-Plats
$672,100.00
Planning and Zoning Developinent
Approach and Wallcs
Environmental
Sub-total HOME CHDO
CHDO FUNDS
$44,701.00
$ 4,517.75
$ 2,476.00
$ 8,750.00
$ 10,555.25
$71,000.00
TOTAL PROJECT DEVELOPMENT COST $743,100.00
N
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E%HIBIT C
�XH�i �I'T" D�
CITY OF FORT WORTH HOUSING DEPARTMENT
Audit Certification Form
Subrecipient: Fiscal Year Ending: I 1_
Mo Day Yr
❑ We have exceeded the federal expenditure threshold of $500,000. We will
have our Single Audit or Program Specific Audit completed and will submit
the audit report within nine (9) months after the end of the audited fiscal
year.
❑ We did not exceed the $500,000 federal expenditure threshold required for
a Single Audit or a Program Specific Audit to be performed this fiscal year. (Fill
out schedule below)
Federal Expenditure Disclosure
Federal Funds
Must be �lled out if Single Audit or Program Audit is not required:
Pass Through Program Name & Contract
Federal Grantor Grantor CFDA Number Number Expenditures
Total Federal Expenditures for this Fiscal Year $
,
Printed Name Title (Must be CFO, CEO or equivalent)
Authorized Signature (Must be CFO, CEO or equivalent) Phone Number
Date
Failure to submit this or a similar statement or failure to submit a completed
single audit package as described in the audit requirements by the required due
date will result in suspension of funding and will affect eligibility for future funding.
Submit this form to the City of Fort Worth wifhin 60 days after the end of your Fiscal year
CITY OF FORT WORTh HOUS{NG DEPARTMENT
AUDIT REQUIREMENTS
Organizations expending $500,000 or more in federal awards (from City of Fort
Worth and other funding sources) during their fiscal years shall obtain either an
annual single audit or a program specific audit. Organizations may have a
program specific audit in accordance with OMB Circular A-133 if they
expended funds for only one federal program as listed in the Catalog of
Federal Domestic Assistance (CFDA). If funds are spent for more than one
federal program, a single audit is required. The audited time period is the
organization's fiscal year, and not the City of Fort Worth's funding period.
The audit shall be conducted bjr a certified public accountant (CPA) that is
licensed at the time of the audit by the appropriate regulatory body. The CPA
shall meet all of the general standards concerning qualifications,
independence, due professional care and quality control as required by
Government Auditing Standards, including the requirements for continuing
professional education and external peer reviews. Auditor selection must
adhere to federal procurement requirements.
A separate supplementary schedule of revenues, expenditures and
changes in fund balance for each City of Fort Worth contract is no longer
required. The Schedule of Expenditures of Federal Awards should list City of
Fort Worth 's contract numbers, the total expended for each individual
federal program, and the CFDA number (OMB A-133 §.310).
The independent auditor's report should include all of the relevant items
listed on the "Audit Report Checklist." Additional guidance on the conduct and
reporting of these audits is contained in the latest issuance of the following
publications:
GovernmentAuditing Standards issued by the Comptroller General of the United States,
2003
OMB Circular A-133 as revised 6/30/97 and amended June 2003
OMB Circular A-133 Compliance Supplement
AICPA's Statement of Position 98-3, "Audits of States, Local Governments, and
Not-for-Profit Organizations Receiving Federal Awards"
Various AICPA audit guides for nonprofits, colleges and universities and health
and welfare organizations
AICPA's Audit Risk Alert "State and Local Governmental Developments"
All organizations that receive a City of Fort Wor�h award musi submit the
provided Audit Certification Form which certifies whether you are subject to a
single/program audit. Organizations receiving federal awards from the City of
Fort Worth who are not required to have an audit shall certify in writing to the
agency. The organizations Chief Executive Officer or Chief Financial Officer
shall make the certification within 60 days of the end of the organization's
fiscal year.
The following items should be submitted to the City of Fort Worth Housing
Department within the required timeframe:
Due 60 days after orqanization's fiscal year end: required for all subrecipients)
• Completed Audit Certification Form
Due within the earlier of 30 davs after receipt of the auditor's report or nine months
after the end of the audit period.
• Two copies of the entire audit report issued by the CPA
• Two copies of any management letter issued by the CPA in
conjunction with the audit report
• Two copies of management's comments on all findings,
recommendations, & questioned costs contained in the audit
report and management letter, including a detailed corrective
action plan
Failure to submit any of these items by the required due date may result in
holds on current draw requests, suspension of the organization's contract(s)
and eligibility for future funding.
If the organization does not meet the- requirements of having a
single/program audit conducted, records must still be kept available for review
or audit by City of Fort Worth staff (OMB A-133 Subpart B Sec 200(d).
If additional information is needed concerning the audit requirements, please
call (817) 392-6141.
CITY OF FORT WORTH HOUSING DEPARTMENT
SINGLE AUDIT REPORT CHECKLIST
The Department developed this checklist to help organizations improve the quality
and completeness of audit reports.
General Purpose or Basic Financial Statements of the Organization Opinion/Report on
Organization's Financial Statements in accordance with Government Auditing
Standards
Notes to the General Purpose or Basic Financial Statements of the Organization
A Schedule of Expenditures of Federal � Awards, including the Department's
contract numbers, the total expended for the federal program, and the CFDA
number (OMB A-133 Subpart C Sec 310).
Opinion/Report on Schedule of Expenditures of Federal and State Awards
Report on Compliance and on Internals Control Over Financial Reportinq Based on
an Audit of Financial Statements PerFormed in Accordance With
GovernmentAuditing Standards. (OMB A-133 § 505 (b))
Report on Compliance with Requirements Applicable to Each Major Program
and Internal Control over Compliance in Accordance with OMB Circular A-133.
(OMB A-133 § 505 (c))
Schedule of Findinqs and Questioned Costs (OMB A-133 §. 505d), including:
Summary Schedule of Prior Audit Findings reporting the status of all findings
included in the prior audit's schedule of findings and questioned costs. (OMB A-
133 Sec. 315 (a) and (b))
Corrective Action Plan including (OMB A-133 Sec. 315 (c)) name of person
responsible for the corrective action, corrective action planned,
anticipated completion date, and explanation and reason if auditee does not
agree with findings or believes correction is not required.
All reports are signed and dated by the auditor
Two copies of the audit reports are submitted
Two copies of the management letter, if issued in conjunction with the audit
report Two copies of comments by management concerning all
findings and recommendations included in management letter,
including a corrective action plan
cz� o� FoxT woxz�x �
HOU�IIV G D�PARTIY�ENT
SUB�F:ANTEE'S REQ�ST FOR FIIN]�S�
ATT"ACHivIEI�"I' I
Pro�am Name: . �
ContractNumber: ReportPeriod:
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1. Begm�.g Cash Balance
�_ AmouatReceived:
Program Income
City of Fbrt Worth
Interest Eamed
3 _ Total �tmds Available (1 + 2)
4. Less Bgpenditure (deta�l statemen� cost)
5. ENDING CA�H BALANCE
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B. FundlAccoun-F/Center
C. TotaI Amount of this Request
� �-` _ �-^���;�.: - �;,= �..`� ; -� -' . � . - �= - _ _ - � - - .
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I. Veri�cafion
A. Madel SIocks PIanner: � �
�r��� .
B: Canfract Manager: � �
c�+�)
C_ Accau�a�rg:
Au� orization
4. Ageacy_
��. 1Vlgmf & Bud.get
=4d�znistratoi-
Housing Director
1F OVER sS,500.0a
(Narnc)
cN�
cx�=>
AGENCY
PROGRAM
COST CATEGORY
PERSONAL S�RVICES
Salaries
FICA
Life Insurance
fiealEh, Insurance
Unemployment - Federal
:Jnemplovment Tax-State
_ : SUPPLIES
O�ce Supp
. Teachin Aids
Food S lies
Water/ Waste llis osal
Rent (Buildin )
G�stodial Services
, Office Eqtupment Renial
CITY OR FORT WORTH
HOII57NG DEPARTMENT
NtANAGENL�N'TAND BIIDGET DIVI�SION
DET_� STATEMENT O�' COSTS
PROGRAM
ACCOUNT BUDGET
516010
518010.
518050
518060
518090
518090
518040
518070
521010
521020
5�2Q30
522030
5233 00
535040
5�50�0
535010
• S35D30
53701D
539220
53 703 0
533030
53500
5382Z0
CONZ"RACT NO_ DATE
io
REPORT PERiOD
MONTHI,Y CUMUI,ATIVE
EXPENDITURES TO DATE
ATTACHt��NT II
BALANC�
LiabiIi Insvzance 534Q20
'Le al & Accountin 538060
Privafe Auto Allowan:ce-Local 532130
Advertisin� 533010
Conferences & Seminars 531I.80
Contractual Services 539120
Cudirect Cost 517010
�AP�'I'AL OUTLAY
?uiniture, Fix�ures 541�30
��ce E � menrt � 54I37Q
'ro erty Insurance -
'OT_A.L
Sub-Contractors �eriification: I certify that the costs incurred are taken from the books of accounts and that such costs are valid
and consisteni with the terms of the a�eement
AN1E and TITL� OF AUTHOR7ZED OF'FICER SIGI�ATURE and DATE
�
CiT'Y OT FORT WORTH
HG�SL�FG D�PARTME_�'T
MAi�TAG-EMENT AND B17DGET DTVISION
EXPEN�?ITUR�S WORKSHEET
AGENCY
PiZOGRAM .
ATTAC�I�TT IIL
CONTRACT NO. DATE
TO .
REPORTPERIOD
Sub-Contraetors Cerfificaiian: I certify that the Costs �evrted are taicen from the books of aceounts and that such costs are valid
and,consiste4twith the terms ofthe a�eement '
.ME and TTI'LE �I'+ AUTHORIZED OFFICER SIGitTA,T`URE and DATE
� � ATr,acHr��r�r rv
MONTHIlY 2tiA�RRA�`�VE REPOt-ZT
MONTH RE�ORTTNG
Ft20M: � TO:
Z . ACCOMPZISI�.i�N�`S
II_ ADDITIOI�LziI,- COI��NTS RE�AR��G ACCOMPZI�I�A7i'S �THIS MO�ITH_
III . PROBL;EMS ENCOUNTERED A1�D SOLU�`IOi�FS PROPOSED _
N_ ATITICIPAT�D ACTNITIES DURZI�IG I�T�XT.MON"TH:
W
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�
City of Fort Worth, Texas
Mayor and Council Communication
-- - -- -- ---_ ___ - - --- _ ___----_----__ _-- - -�
COUNCIL ACTION: Approved on 9/12/2006
DATE: Tuesday, September 12, 2006
LOG NAME: 05AR1 CHDO FUND REFERENCE NO.: C-21678
SUBJECT:
Cancellation of Community Development Block Grant Funded Contract and Authorization of
Execution of New Contract with Ability Resources, Inc., for Home Community Housing Development
Organization Program Funds for the Willow Bend Creek Apartments
RECOMMENDATION:
It is recommended that City Council:
1. Rescind M&C C-21257, approved January 19, 2006 which authorized the City Manager to execute a
contract with Ability Resources, Inc., (ARI) for a forgivable loan not to exceed a total of $55,000.00 in
Community Development Block Grant (CDBG) funds to assist the development of the Willow Bend Creek
Apartments and cancel City Secretary Contract 33503 and Contract Assignment 33553;
2. Authorize the City Manager to execute a contract with Ability Resources, Inc., for a forgivable loan not
to exceed a total of $71,000.00 in HOME Community Housing Development Organization (CHDO) Program
funds;
3. Authorize the contract performance period to begin on the date of contract execution and end twelve
months thereafter;
4. Authorize the City Manager to extend or renew the contract for up to one year, if ARI requests an
extension; and
5. Authorize the City Manager to amend the contract, if necessary, to achieve project goals provided that
the amendment is within the scope of the project and in compliance with applicable laws and regulations.
DISCUSSION:
On January 19, 2006, City Council approved M&C C-21257 authorizing a forgivable developmental loan of
$55,000 in CDBG funds to Ability Resources, Inc., (ARI) for infrastructure and site improvements to support
the construction of Phase 1 of the Willow Bend Creek Apartments, a U.S. Department of Housing and
Urban Development (HUD) Section 811 Grant apartment project. The Willow Bend Creek Apartments
consists of nine units of accessible housing for persons with special needs.
On May 15, 2006, a contract was executed between the City and ARI (City Secretary Contract Number
33503). Following the execution of the contract, at HUD's request it was assigned to Integrated Living
Spaces, Inc., the sole asset entity created by ARI to hold and manage the Section 811 Grant
project. Before ARI closed its Section 811 Grant with HUD, it was determined that the project would require
additional funds to replace and lower the wastewater collection main in the street. The additional cost for
the wastewater collection main replacement is $16,000. ARI has requested additional funding to cover this
increased cost.
Logname: 60SOUTHWEST Page 1 of 2
It was determined that HOME funds offered more flexibility to this project, therefore, it is recommended that
the CDBG funds previously approved by City Council be replaced with HOME CHDO funds and that an
additional $16,000 be added to the contract amount to cover the additional costs for the installation of the
wastewater collection main. The total HOME CHDO funding requested is $71,000.
The proposed project is located in COUNCIL DISTRICT 3.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that upon approval of the above recommendations, funds will be available in
the current budget, as appropriated, of the Grants Fund.
TO Fund/Account/Centers FROM Fund/Account/Centers
GR76 539120 005206127900 $55,000.00 GR76 539120 005206127910 $55,000.00
GR76 539120 005206006XXX 71 000.00 GR76 539120 005206006030 $71,000.00
Submitted for City Manager's Office b r�.�
Ori inating Department Head:
Additional Information Contact:
Dale Fisseler (6140)
Jerome Walker (7537)
Jerome Walker (7537)
Logname: 60SOUTHWEST Page 2 of 2