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HomeMy WebLinkAboutContract 36036 CITY SECRETARY CONTRACT NO. AMENDMENT TO CITY SECRETARY CONTRACT NO. 35408 WHEREAS, on June 25, 2007, the City of Fort Worth("City") and Mental Health Housing Development Corporation("MHHDC") made and entered into City Secretary Contract No. 35408 (the"Contract"); WHEREAS, the Contract provided funding to MHHDC pursuant to a grant received by City from the United States Department of Housing and Urban Development ("HUD") through the HOME Investment Partnerships Program ("HOME"), Program No. M-04-MC-48-0204, Catalog of Federal Domestic Assistance ("CFDA") No. 14.239, 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 industry and neighborhood-based nonprofit housing organizations; WHEREAS, in. July 2006 MHHDC received an award of Low Income Housing Tax Credits ("LIHTC") from the Texas Department of Housing and Community Affairs ("TDHCA") to demolish and reconstruct its special needs housing rental project commonly known as Hanratty Place Apartments; WHEREAS, MHHDC has formed Hanratty Place Apartments, L.P. (the "Partnership") a single asset entity to own and operate Hanratty Place Apartments for the LIHTC compliance period and has formed MHH Hanratty LLC to act as general partner for the Partnership; WHEREAS, the Contract provided MHHDC with HOME funds for eligible construction and operating costs for the reconstruction of Hanratty Place Apartments; WHEREAS, TRGHT, Inc. has withdrawn as the tax credit investor and Limited Partners of the Partnership, and Alliant Credit Facility, Ltd. will now be the tax credit investor and Limited Partner of the Partnership; WHEREAS, the Contract required construction and demolition work to begin within thirty(30) days of the date of the Contract and due to the change in tax credit investor, that time period must be extended to allow the project to go forward.; WHEREAS, City has agreed that it is to the mutual benefit of City and MHHDC to agree to amend City Secretary Contract No. 35408 to achieve Program goals. NOW, THEREFORE, City,whose address is 1000 Throckmorton St.,Fort Worth TX 76102, acting by and through Dale Fisseler, its duly authorized Assistant City Manager, and MHHDC, whose address is 603 W. Magnolia St, Fort Worth, Texas 76104 acting by and-d*;&� h David Fielding, its duly authorized President of the Board of Directors, do hereby agree as follows: CONTRACT AMENDMENT CSC NO.35408 Page 1 MENTAL HEALTH HOUSING DEVELOPMENT CORP(HOME) I. G. Other Requirements The last sentence of the first paragraph of this section is amended to be and read as follows: "The Limited Partner and tax credit investor is Alliant Credit Facility, Ltd. " II. H. Termination The second full paragraph of this section is amended to be and read as follows: "MHHDC and the Partnership shall begin construction work within thirty (30) days from the date the construction loan is closed. Failure to begin construction work within thirty (30) days shall be grounds for termination of this Contract." III. Exhibit C— Program Implementation Timeline attached to the Contract is hereby replaced with the Exhibit C—Program Implementation Timeline attached hereto. VI. All other terms and conditions of City Secretary Contract No. 35408 not amended herein remain unaffected and in full force and effect, are binding upon the parties, and are hereby ratified by the parties. (REMAINDER OF PAGE INTENTIONALLY LEFT BLANK) CONTRACT AMENDMENT CSC NO.35408 Page 2 MENTAL HEALTH HOUSING DEVELOPMENT CORP(HOME) IN WITNESS WHEREOF, the Part reto hav ec I fo copies of this Contract in Fort Worth, Tarrant County, Texas,this y day of ' 2007. ATTEST: CITY OF ORT W H 4 By: City Secretary Dale A. Fissele Assistant ity Manager Z. t _ APPROVED AS-TO FORM 4ND LEGALITY: Contract Authorization Assistant City Attorney Date MENTAL HEALTH HOUSING DEVELOPMENT CORPORATION By, ou.,c'f 11�ik - David Fielding, President STATE OF TEXAS § COUNTY OF TARRANT § This instrument was acknowledged before me on , 2007 by Dale A. Fisseler, the Assistant City Manager, of the City of Fort Worth, on behalf the City of Fort Worth. KM3�lNO C�e. ,/IZ �of Texasxpires Notary Public, State of Texas 011 STATE OF TEXAS § COUNTY OF TARRANT § This instrument was acknowledged before me on �C '� �� 2007 by David Fielding, the President of Mental Health Housing Development Corporation, Inc., a Texas non-profit corporation, on behalf of said corporation. Notary Public, State of Texas PAW ]VIREM,De t ' ,fir CONTRACT AMENDMENT CSC NO.35408 c ' Page 3 MENTAL HEALTH HOUSING DEVELOPMENT CORP(HOME) Exhibit"C" Program Implementation Timeline Reconstruction of Hanratty Place Apartments Target Date Development Activity 10/30/07 Mental Health Housing Development Corporation closes and funds on construction loan and Partnership Agreement. 11/05/07 Start of demolition and construction 3rd Quarter 2008 Complete construction and start lease-up 1st Quarter 2009 Complete lease-up/full occupancy 2nd Quarter 2009 Conversion to permanent loan During the Contract term, Mental Health Housing Development Corporation (or assigns) will submit monthly program and financial reports to the City. 1) MHHDC shall furnish City the following : a) during lease-up period on a quarterly basis until Project is fully leased, , summary beneficiary data regarding the household income,size, race, ethnicity,gender of head of household,and disability status of all tenants on Attachment IVa—Beneficiary Performance Report. b) During the Affordability Period,copy of rent roll and copy of lease forms used. c) Other such information as may be reasonably necessary to verify compliance with HOME Regulations. Page 1 of 2 City of Fort Worth, Texas Mayor and Council Communication M COUNCIL ACTION: Approved on 5/22/2007 DATE: Tuesday, May 22, 2007 LOG NAME: 05MENTALHEALTH REFERENCE NO.: **G-15730 SUBJECT: Authorize Award of $596,000 in HOME Investment Partnership Grant Funds To Mental Health Housing Development Corporation, a Certified Community Housing Development Organization RECOMMENDATION: It is recommended that the City Council: 1. Award $596,000 in HOME Community Housing Development Organization (CHDO) funds to the Mental Health Housing Development Corporation (MHHDC) for development costs and operating expenses in support of a multi-family reconstruction project; 2. Authorize the City Manager or his designee to execute a contract with MHHDC for the project, with a two- year term beginning on the date of the execution of the contract; 3. Authorize the City Manager or his designee to extend or renew the contract for up to one year if MHHDC requests an extension and it is necessary for the completion of the project; 4. Authorize the City Manager or his designee 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 governing use of federal grant funds; and 5. Authorize MHHDC to retain CHDO proceeds in conformance with the HOME Investment Partnership Program rules and the City's policy. DISCUSSION: Regulations governing the HOME Investment Partnership Grant program require that local jurisdictions provide a minimum of 15 percent of their annual grant awards to eligible CHDOs. MHHDC provides housing in the City of Fort Worth to individuals with mental disabilities and other special needs and currently owns and operates two properties: Pennsylvania Place Apartments, a 152 unit Low Income Housing Tax Credit (LIHTC) property and Hanratty Place Apartments which contains 32 units. MHHDC requested and received a CHDO pre-development loan from the City in the amount of $228,000 for expenses related to an application for Low Income Housing Tax Credits for the rehabilitation of Hanratty Place (M&C 21312). As required by the HOME regulations, this predevelopment loan has been repaid. After review of the rehabilitation that was needed to fulfill the tax credit obligation, it was determined that reconstruction was more advantageous and cost efficient. MHHDC has gained approval to reconstruct Hanratty place from the State of Texas Department of Housing & Community Affairs, administrator of the LIHTC program. The total development cost for the project is estimated at $5,000,000. MHHDC has requested $546,000 in CHDO funds from the City to offset additional costs associated with delay of the project and reconstruction of the facility. A total of $546,000 will be used to cover eligible reconstruction expenses of the 32-unit Hanratty Place apartments, and a maximum of $50,000 in CHDO http://www.cfwnet.org/council_packet/Reports/mc_print.asp 10/29/2007 Page 2 of 2 operating funds is proposed to support the non-profit organization for a one-year period. Construction funds would be provided in the form of a zero-percent loan in accordance with HOME Regulations. The $50,000 in operating funds would be provided in the form of a grant. The Fort Worth Housing Finance Corporation previously reviewed a related proposal from MHHDC in February 2006 and directed staff to explore funding options with MHHDC for this project. The current proposal is the result of that discussion. The proposed project is located in Council District 8. The above recommendations were approved by the Central City Revitalization and Economic Development Committee on April 3, 2007. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that upon approval of the above recommendations, funds will be available in the current operating budget, as appropriated, of the Grants Fund. TO Fund/Account/Centers FROM Fund/Account/Centers GR76 539120 005206698XXX $131,003.89 GR76 539120 005206128160 $83,997.11 GR76 539120 005206772XXX $2,678.77 GR76 539120 005206698210 $131,003.89 GR76 539120 005206772XXX $69,710.86 GR76 539120 005206772090 $2,678.77 GR76 539120 005206128XXX $83,997.11 GR76 539120 005206772160 $69,710.86 GR76 539120 005206772XXX $69,632.52 GR76 539120 005206772400 $69,632.52 GR76 539120 005206772XXX $16,512.27 GR76 539120 005206772410 $16,512.27 GR76 539120 005206846XXX $1,527.07 GR76 539120 005206846220 $1,527.07 GR76 539120 005206930XXX $78,572.56 GR76 539120 005206930020 $78,572.56 GR76 539120 005206930XXX $50,134.00 GR76 539120 005206930180 $50,134.00 GR76 539120 005206006XXX $38,372.00 GR76 539120 005206006190 $38,372.00 GR76 539120 005206006XXX $3,858.95 GR76 539120 005206006020 $3,858.95 GR76 539120 005206846XXX $50,000.00 GR76 539120 005206846190 $50,000.00 Submitted for City Manager's Office by: Dale Fisseler (6140) Originating Department Head: Jerome Walker (7537) Additional Information Contact: Charlie Price (7381) http://www.cfwnet.org/council_packet/Reports/mc_print.asp 10/29/2007