HomeMy WebLinkAboutContract 35323CiTI( ���FiETA�If
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AGREEMENT WI1�I FORT WORTH HOUSING AUTHORITY CONCERNING TI�
HO�JSII�G �OICE �OUCgIER HOMEO�VloIERSHIP PROGRAlVI
This Agreement (��Agreement") concerning the Housing Choice Voucher Homeownership
Program ("HCVI�'") is between the City of Fort Worth ("Fort Worth"), a home rule municipal
corporation organized under the laws of the State of Texas, acting by and through its duly
authorized Assistant City Manager, and the Housing Authority o� the City of Fort Worth, d/b/a/
the Fort Worth Housing Authority ("FWHA"), a Texas municipal housing authority, acting by
and through its duly authorized Executive Director. (Sometimes Fort Worth and FWHA are
referred to individually as a"Party" and collectively as the "Parties").
RECITALS
Fort �J�.-,�h �wl FuruA a;;reP th�t the fol��wing st�tements �re tlue RYl(� Cn*'1'Pt`t and
constitute the basis on which they have entered into this Agreement.
WHEREAS, Section 555 of the Quality Housing and Wark Responsibility Act of 1998
("QHWRA") which amended the United States Housing Act of 1937, 42 U.S.C. 1437f(y) permits
the FWHA to create a homeownership option for Section 8 Housing Choice Voucher ("HCV")
recipients;
WI�REAS, FVVHA has created the HCVHP to convert certain eligible HCV recipients
into homeowners;
WHEREAS, the HCVHP requires a�plicant-families to attend and satisfactorily complete
a pre-assistance homeownership training and housing counseling program; -
WHEREAS, Fort Worth offers homeownership tra'v�u1g, pre-purchase and post-closing
housing counseling and homebuyers' assistance programs which provide the types of service
needed to fu1fi11 the HCVIII''s requirements for pre-assistance counseling, including but not
limited to assistance in outreach and marketing of the HCVHP to HCV recipients, client
assessment, credit counseling, financial literacy counseling, homeownership training, participation
in th� Home Buyexs Chib; post-closin� �oiir.sPlin�; aender training, real est�tP agent t�ai_ni»a and
down payment and/or closing cost assistance for first time homebuyers;
WI�REAS, an Applicant is defined as a person who is currently receiving renta.l
assistance through the HCV program and has expressed an interest in participating in the HCVHP;
WI�REAS, an Eligible Family is defined as an Applicant who has met the eligibility
requirements for the HCVI�P, completed all required-counselirig -services -and-received-FWHA --- -
approval to pl�rsue homeownership with the HCV;
WI�REAS, FWHA Housing Assistance Payment ("HAP") is defined as the lesser of 1)
the payment standard minus the total tenant payment, or 2) the family's monthly
homeownership expenses minus the total tenant payment as determined by FWHA;
WHEREAS, FWHA is promoting homeownership through the sale of �ts: scattered sites
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HOUSING CHOICE VOUCHER HOMEO�NNERSHIP ; j j ����i �,���,,,r 1'1�..,, �.��
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rental units to qualified buyers "(Scattered Sites Program)";
WI�REAS, Fort Worth provides training and counseling services for FWI-�A clients in
the Scattered Sites Program as well as similar counseling services to HCVI� clients;
WHEREAS, increasing homeoa�anership and providing affordable housing for all
income groups are among Fort Worth's housing policy goals and are affirmed in Fort
Worth's Comprehensive and Consolidated Plans.
NOW THEREFORE, the Parties agree as follows:
1. PURPOSE AND SCOPE.
The purpose of this Agreement is to set forth the terms and conditions under which Fort
Worth will provide FWHA with housing counseling and homebuyer assistance to Applicants
and Eligible Families in the HCVHP, clients in the Scattered Sites Program, and related
services to the FWHA.
2. TERM.
This Agreement shall commence on May 11, 2007 and will expire May 1G, 2008
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 renewals no later than thirty (30) days prior to the expiration of the current term.
In addition to termination for default pursuant to Section 5, either Party may terminate this
Agreement without cause upon sixty (60) days' written notice to the other Party, and neither
Party shall have any further responsibility or liability hereunder except for services
previously rendered and payment for the same.
3- DTITIES OF THE PARTIES AND SERVICES PR.OVIDED.
3.1 FWHA and Fort Worth will:
a. Identify, recruit and establish a pool of mortgage lenders and real estate
agents participating in the HCVHP.
b. Develop and implement a marketing and training plan for mortgage
lenders and real estate agents.
�. Conduct orientation sessions with Applicants.
3.2 FWHA will:
a. Administer the HCVHP.
b. Develop and implement a marketing plan for I�CV recipients, including
FWHA's Family Self-Sufficiency ("FSS") clients.
HOUSING CHOICE VOUCHER HOMEOWNERSHIP 2
PROGRAM AGREEMENT 04/19/07
c. Revise written materials about the HCVHP as needed.
d. Determine each HCV recipient's eligibility to apply for HCVHP in
accordance with FWHA's HCVHP Administrative Plan.
e. Refer Applicants to Fort Worth for pre-homeownership counseling.
£ 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 FWHA HAP voucher to an
Applicant after completion of pre-homeownership 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.
h. Complete housing quality standards ("HQS") inspections for Eligible
Families not receiving closing cost and down payment assistance
through Fort Worth's Homebuyers' Assistance Program ("FWHAP") and
counsel Eligible Families on the inspector's findings. F'ar Eligible
Families receiving FWHAP, Fort Worth will complete the HQS
inspections and will counsel the Eligible Families on the inspector's
findings.
i. Review the sales contract for the house to be acquired by an Eligible
Family.
j. Make FWHA HAP payments in the manner prescribed by a mortgage
lender either directly to an Eligible Family, directly to a mortgage lender,
or to a financial institution on which payments are drafted by a mortgage
lende�.
k. Provide Fort Worth the following:
� A copy 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 Housing and Urban
Development ("HUD��) regulations pertaining to the HCVHP, as
amended from time to time, including but not limited to those
regulations found at 24 C.F.R 982.1 et seq.
• A co�y of the FWHA Administrative Plan for pai�ticipation in trie
HCVHP; and
• A list of Applicants who are current FSS participants and the current
balance of the participants' escrow accounts.
1. Determine each FWHA recipient's eligibility to participate in the
Scattered Sites Program.
3.3. Fort Worth will:
a. Obtain credit reports for Applicants at the Applicant's or FWHA's cost, as
the case may be.
b. Provide FWHA a copy of Fort Worth's Steps to Homeownership as
amended from time to time.
c. Provide each Applicant with an initial counseling session within two (2)
HOUSING CHOICE VOUCHER HOMEOWNERSHIl' 3
PROGRAM AGREEMENT 04/19/07
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weeks after an orientation session that describes the counseling process
and the schedule of all necessary appointments.
Provide an assessment of each Applicant's qualification for the HCVHP
based on credit worthiness, employment, 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
Provide a copy of the assessment, including category designation,
to FWHA and Applicants.
Provide each Applicant categorized as Fast Track or Short Term with 20-
25 hours of pre-homeownership individual counseling, including an
action plan, and homeownership training. Training/counseling shall
include the following activities/topics:
• Credit counseling.
• How to find a house to purchase, including information about
homeownership opportunities, schools, and public
transportation in the City of Fort Worth.
� Information on fair housing laws and regulations, including
local fair housing agencies.
• How to negotiate a purchase of a house.
-� I�formation about the Real Estate Settlement Procedures Act,
state and federal truth-in-lending laws, and how to identify and
avoid loans with unfavorable and predatory terms and
conditions.
• How to obtain homeownership financing and mortgage loan
pre-approvals, including a description of types of financing
that may be available and the advantages and disadvantages of
different types of financing.
• House maintenance (including care of the landscaping and
energy conservation).
• 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 FWHA and Fort
Worth .
Refer Applicants categorized as Long Term to the Homebuyers Club.
Conduct sessions for the Home Buyers 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.
Work 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.
HOUSING CHOICE VOUCHER HOMEOWNERSHIP
PROGRAM AGREEMENT 04/19/07
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m. Assist Eligible Families in the selection of a real estate agent and in sales
contract negotiations. Review sales contract with the Eligible Family.
n. Provide FWHA and each Eligible Family's mortgage lender with a copy
of the final sales contract entered into with a seller.
o. Complete an HQS inspection for Eligible Families receiving closing cost
and down payment assistance through FWHAP and counsel Eligible
Families on HQS inspector's findings. For Eligible Families not
receiving FWHAP, FWHA will complete the HQS inspection and will
counsel the Eligible Families on the inspector's findings.
p. Assist Eligible Families in the selection of a licensed residential real
estate inspector and review the real estate inspector's findings with the
Eligible Families. �
q. Provide continued assistance to Eligible Families tluough closing.
r. Provide supporting documents for FWHA HAP payments to mortgage
lenders.
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Review Eligible Family's closing documents for accuracy to ensure that
any down payment and other requirements have been met and
appropriate financing and information have been utilized by the
mortgage lenders.
Provide FWHAP to Eligible Families if they qualify under FWHAP
guidelines.
Attend closing with Eligible Families, if requested by 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 with monthly reports on the activities of all Applicants
and Eligible Families.
Conduct orientation and provide counseling services to FWHA clients
participating in the Scattered Sites Program.
4. CONSIDERATION.
FWHA agrees to provide a grant up to, but not to exceed, $60,000.00 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 homeownership and housing counseling program for the
HCVHP as follows:
FWHA
Fort Worth (in kind services)
Tota.l
$60,000.00
60,000.00
$120,000.00
FWHA shall pay its portion of the costs to Fort Worth, as follows: $15,000.00 on May
31, 2007; $15,000.00 on August 31, 2007; $15,000.00 on November 30, 2007 and $15,000.00
HOUSING CHOICE VOUCHER HOMEOWNERSHII'
PROGRAM AGREEMENT 04/19/07
5
on February 28, 2008. During any renewals of this Agreement, FWHA shall provide Fort
Worth with funds in accordance with the terms of any renewal agreement.
5. DEFAULT.
If either FWHA or Fort Worth fails, for any reason, to perform any provision or
condition of this Agreement, this Agreement may be terminated 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 correct such breach within the tliirty (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 liability hereunder except for services previously
rendered and payment for the same.
6. G�I+fLlta[� �'ROVISIC�NS.
6.1 Reauest for Information FWHA and Fort Worth agree to provide each other
any information on Applicants and Eligible Families within two (2) business
days of the request.
6.2. No Waiver. The failure of either Party to insist upon the performance of any
provision or condition of this Agreement or to exercise any right granted herein
shall not constitute a waiver of that Party's right to insi�t �.tpon ap}�ropriate
performance or to assert any such right on any future occasion.
6.3. Senarability. If any provision of this Agreement is held by a court of competent
jurisdiction to be invalid, illegal or unenforceable, the validity, legality and
enforceabiliiy of the remaining provisions shall not in any way be affected or
impaired.
6.4. Force Maieure. 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 performance due to force majeure or other causes beyond
their reasonable conti•ol, including, but not limited to, compliance with any state
or federal law or regulation, acts of God, fires, strikes, lockouts, national
disasters, wars, riots, material or labor restrictions, transportation problems or
existing contractual obligations directly related to the subject matter of this
Agreement.
6.5 Venue and Jurisdiction. This Agreement shall be construed in accordance with
the laws of the State of Texas. Venue for any action brought on the basis of this
Agreement shall lie exclusively in state courts located in Tarrant County, Texas.
In any such action, the prevailing party shall recover from the other all
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�ibits attached hereto
HOUSING CHOICE VOUCHER HOMEOWNERSHIl' 6
PROGRAM �1GREEMENT 04/19/07
and any documents incorporated herein by reference, contains the entire
understanding and agreement between Fort Worth and FWHA as to the work and
services to be performed. Any prior or 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, Iiules and Regulatioms 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 V�orth shall operate hereunder as an independent
contractor and not as an officer, agent, servant or employee of FWHA. FWHA
shall operate hereunder as an independent contractor and not as an officer, agent,
servant, or employee of Fort Worth. Fort Worth shall have the exclusive control
of, and the exclusive right to control the worlc designated to be performed by Fort
Worth under the terms of this Agreement, and of all persons performing the same
and shall be solely responsible for the acts and omissions of its officers, members,
agents and employees. Neither Fort Worth nor FWHA shall be responsible under
the Doctrine of Respondeat Superior for the acts or omissions of its ofiicers,
members, agents, employees or officers of the other. No partnership or joint
venture is intended or formed between Fort Worth and FWHA by this Agreement.
6.� 1[mmunitv and Third Parties It is expressly agreed thaf, in the execution and
performance of this Agreement, neither Fort Worth nor-FWHA waives, nor shall be
deemed to waive, any immunity or defense that would otherwise be available to it
against claims arising in the exercise of their respective powers and functions,
Nothing in this Agreement shall be construed to benefit any third party other than
an employee ar officer of Fort Worth or FWHA while in the performance of this
Agreement. This Agreement may not be construed to expand the liability of Fort
Worth or FWI�A beyond the scope of Chapter 101 of the Texas Civil Practice and
Remedies Code, Vernon's Texas Codes Annotated unless specifically stated
herein.
6.10 Amendment. No amendment, modification or alteration of this Agreement shall
be binding unless the same is in writing, dated subsequent to the date hereof and
executed by the Parties.
HOLTSINCF CHOICE VOUCHER HOMEOWNERSHIl' �
PROGRAM AGREEMENT 04/19/07
7. NOTIC�S.
All notices required by this Agreemen
following address, or at such other address
certified mail, postage prepaid or hand delivery:
Fort Worth: Jerome C. Walker, Director
Fort Worth Housing Department
1000 Throckmorton St.
Fort Worth, TX 76102
t shall be addressed to the Parties at the
as either Party designates in writing, by
FWHA: Barbara Holston, Executive Director
r'ort W ortli Housing Authority
1201 E. 13th Street
Fort Worth, TX 76102
EXECUTED in multiple originals as of the last date indicated below:
CITY OF FO •� WORTH: ,� �
By. � .L,
I)ale Fisseler
Assistant City Manager
Date: -� ("� ���--� �
ATTEST:
By: '
Marty Hendri
City Secretarg�
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FORT WORTH HOUSING AUTHORITY:
By: ��.VLGc.��-`'.:� ,�����rL.
Barbara Holston
Executive Director
Date• �� ;� - �' _ �' �
ATTEST:
� � ��By, �� �-� _"�, ;t � , � .�'�-�—�
Selarstean Mitchell
Director of Assisted Housing
APPROVED AS 'I'O �n� AND LEGALITY4
By; �'t,C.��-�.�,c._. �� . , C�11�1.�-f�—
Vicki S. Ganske
Senior Assistant City Attorney
HOUSING CHOICE �IOUCHER HOMEOWNERSHIP
PROGRAM AGREEMENT 04/19/07
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 5/22/2007 - Ordinance No. 17561-05-2007
DATE: Tuesday, May 22, 2007
LOG NAME: 05FWHA2007
Page 1 of 2
REFERENCE NO.: C-22135
SUBJECT:
Accept Grant from the Fort Worth Housing Authority for $60,000 to Provide Housing Counseling
and Homeownership Training and Related Services and Adopt Appropriation Ordinance
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the City Manager to accept a grant of $60,000.00 from the Fort Worth Housing Authority
(FWHA) to provide housing counseling and homeownership training and related services to its Housing
Choice Voucher Homeownership Program (HCVHP) from May 11, 2007 to May 10, 2008;
2. Authorize the City Manager to renew the existing contract with the FWHA for $60,000.00 to provide
housing counseling, homeownership training and related services to the FWHA 's HCVHP for the period
from May 11, 2007 to May 10,2008;
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 $60,000.00.
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.
Housing counseling and homeownership and post-purchase training are critical elements of the HCVHP.
The City of Fort Worth's (City) Housing Department is a HUD-certified counseling agency and has received
other housing counseling grants from HUD in the last six years. This year, the City received a$57,037.00
Comprehensive Housing Counseling grant from HUD. The Housing Department also administers a
Homebuyers' Assistance Program that provides 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 in turn helps meet its housing counseling and homebuyers'
assistance program goals set forth in the City's Consolidated and Comprehensive Plans.
On September 19, 2006, the City Council authorized the City Manager to enter into a contract with the
FWHA (M&C G21684) to provide the required counseling services and homeownership .�raining for its
HCVHP. The City Manager was further authorized to amend, extend or renew the contract'in accor.'dance
with City policies and regulations upon mutual agreement with the FWHA. This contract will expire on May ;
10, 2007. It has been renewed from May 11, 2007 to May 10, 2008 for $60,000 to be paid by the F1NHA to
http://www.cfwnet.org/council�acket/Reports/mc�rint.asp 5/23/2007
Page 2 of 2
the City on a quarterly basis.
The HCVHP is available in ALL COUNCIL DISTRICTS.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that upon approval of the above recommendations and adoption of the
attached appropriation ordinance, funds will be available in the current operating budget, as appropriated, of
the Grants Fund.
TO Fund/AccountlCenters
� $60,000.00
GR76 451343 005445194000
(4) GR76 5 �60,000.00
(VARIOUSI 005445194010
Submitted for City Manager's Office by:
Originating Department Head:
Additional Information Contact:
FROM Fund/Account/Centers
Dale Fisseler (6140)
Jerome Walker (7537)
Benedict George (7339)
http://www.cfwnet. org/council�acket/Reports/mc�rint.asp
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