HomeMy WebLinkAboutContract 53691 CITY SECRETARY
,1 'nv CONTRACT NO. 53�91
c�toFFna�w*TATE OF TEXAS §
S*,5COUNTY OF TARRANT §
This contract("Contract") is made and entered into by and between the City of Fort
Worth(hereafter "City") and the Housing Channel (hereafter"CHDO"), a Texas nonprofit
corporation. City and CHDO may be referred to individually as a"Party"and jointly as "the
Parties".
The Parties state as follows:
WHEREAS, City has received a grant from the United States Department of Housing
and Urban Development through the HOME Investment Partnerships Program, Catalog of
Federal Domestic Assistance No. 14.239, with which City desires to promote activities that
expand the supply of affordable housing and the development of partnerships among City,local
governments, local lenders, private industry and neighborhood-based nonprofit housing
organizations;
WHEREAS, the primary purpose of the HOME program pursuant to the HOME
Investment Partnerships Act at Title II of the Cranston Gonzales National Affordable
Housing Act of 1990, as amended, 42 U.S.C. 12701 et seq. and the HOME Investment
Partnerships Program Final Rule, as amended, 24 CFR Part 92 et seq. is to benefit low
income citizens by providing them with affordable housing;
WHEREAS, a portion of City's HOME funds are reserved for the use of certain
housing development entities that qualify under the HOME Regulations as a Community
Housing Development Organization or CHDO;
WHEREAS, CHDO is a Texas nonprofit corporation managed by a volunteer Board
of Directors working to increase the number of quality,accessible, and affordable ownership
housing units available to low and moderate income persons and families and has fulfilled
the requirements of the HOME Program to be a Community Housing Development
Organization;
WHEREAS, City has certified that CHDO is a Community Housing Development
Organization and has specifically re-certified CHDO for the purpose of this Contract;
WHEREAS, City has provided HOME CHDO funds to CHDO to construct single
family houses for sale to low to moderate income homebuyers;
WHEREAS, City has awarded operating funds to CHDO for the purpose of assisting
CHDO's efforts to develop and maintain its operating capacity to expand the Production of
affordable single family houses through new construction activities; and
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- .• WHEREAS, City citizens and the City Council have determined that
the development of quality, accessible, affordable housing is needed for mo ' C,J
RECEIVED very low income City citizens. OFFICIAL RECORD
MAR 2 4 2020
CITY SECRETARY
CVOFFORTWOR TH CHDO OPERATING FUNDS CONTRACT 2019-2020 -'FT.-
CY W
CINSFCRETARY Housing Channel r C• �►1►�TX
NOW, THEREFORE, in consideration of the mutual covenants and obligations and
responsibilities contained herein, including all Exhibits and Attachments, and subject to the
terms and conditions hereinafter stated, the Parties understand and agree as follows:
1. INCORPORATION OF RECITALS.
City and CHDO hereby agree that the recitals set forth above are true and correct
and form the basis upon which the Parties have entered into this Contract.
2. DEFINITIONS.
In addition to terms defined in the body of this Contract, the following terms shall
have the definitions ascribed to them as follows:
Act means the HOME Investment Partnerships Act at Title II of the Cranston Gonzales
National Affordable Housing Act of 1990, as amended, 42 U.S.C. 12701 et seq.
Business Diversity Enterprise Ordinance or BDE means the City's Business Diversity
Ordinance, Ordinance No. 20020-12-2011.
Complete Documentation means the following documentation as applicable:
• Attachments I and II, with supporting documentation as follows:
o Proof of expense: copies of timesheets,invoices,leases, service contracts or
other documentation showing the nature of the cost and that payment is due by
CHDO.
o Proof of payment: cancelled checks, bank statements, or wire transfers
necessary to demonstrate that amounts due by CHDO were actually paid by
CHDO.
• Other documentation: (i) documentation showing compliance with BDE or
DBE bidding process for procurement or Contract activities,if applicable;(ii)proof
of contractor, subcontractor or vendor eligibility as described in Section 6.6; and
(iii) any documents or records reasonably necessary to verify costs.
• Complete Documentation shall meet the standards described in the attached
Exhibit"F" - Documentation Standards.
Community Housing Development Organization or CHDO means, as defined in 24
CFR 92.2 as amended from time to time, a private nonprofit organization, that:
(1) Is organized under State or local laws;
(2) Has no part of its net earnings inuring to the benefit of any member, founder,
contributor, or individual;
(3) Is neither controlled by, nor under the direction of, individuals or entities seeking
to derive profit or gain from the organization. A CHDO may be sponsored or
created by a for-profit entity, but:
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(i) The for-profit entity may not be an entity whose primary purpose is the
development or management of housing, such as a builder, developer, or
real estate management firm;
(ii) The for-profit entity may not have the right to appoint more than one- third
of the membership of the organization's governing body. Board members
appointed by the for-profit entity may not appoint the remaining two-
thirds of the board members;
(iii) The CHDO must be free to contract for goods and services from vendors
of its own choosing; and
(iv) The officers and employees of the for-profit entity may not be officers or
employees of the CHDO.
(4) Has a tax exemption ruling from the Internal Revenue Service under section
501(c)(3)or(4)of the Internal Revenue Code of 1986(26 CFR 1.501(c)(3)-1 or
1.501(c)(4)-1)), is classified as a subordinate of a central organization non-profit
under section 905 of the Internal Revenue Code of 1986,or if the private nonprofit
organization is an wholly owned entity that is disregarded as an entity separate
from its owner for tax purposes (e.g., a single member limited liability company
that is wholly owned by an organization that qualifies as tax-exempt), the owner
organization has a tax exemption ruling from the Internal Revenue Service under
section 501(c)(3) or (4) of the Internal Revenue Code of 1986 and meets the
definition of a CHDO;
(5) Is not a governmental entity (including the participating jurisdiction, other
jurisdiction,Indian tribe,public housing authority,Indian housing authority,housing
finance agency, or redevelopment authority) and is not controlled by a
governmental entity.An organization that is created by a governmental entity may
qualify as a CHDO; however, the governmental entity may not have the right to
appoint more than one-third of the membership of the organization's governing
body and no more than one-third of the board members may be public officials or
employees of the governmental entity. Board members appointed by a
governmental entity may not appoint the remaining two-thirds of the board
members. The officers or employees of a governmental entity may not be officers
or employees of a CHDO;
(6) Has standards of financial accountability that conform to 2 CFR 200.302,
`Financial Management' and 2 CFR 200.303, `Internal Controls';
(7) Has among its purposes the provision of decent housing that is affordable to low-
income and moderate-income persons, as evidenced in its charter, articles of
incorporation, resolutions, or by laws;
(8) Maintains accountability to low-income community residents by:
(i) Maintaining at least one-third of its governing board's membership for
residents of low-income neighborhoods, other low-income community
residents, or elected representative of low-income neighborhood
organizations. For urban areas, "community" may be a neighborhood or
neighborhoods,city,county or metropolitan area; for rural areas, it may be
a neighborhood or neighborhoods, town, village, county, or multi- county
area (but not the entire State); and
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(ii) Providing a formal process for low-income-program beneficiaries to
advise the organization in its decisions regarding the design, siting,
development, and management of affordable housing;
(9) Has a demonstrated capacity for carrying out housing projects with HOME funds.
A designated organization undertaking development activities as a developer or
sponsor must satisfy this requirement by having paid employees with housing
development experience who will work on projects assisted with HOME funds.
For its first year of funding as a CHDO, an organization may satisfy this
requirement through a contract with a consultant who has housing development
experience to train appropriate key staff of the organization. An organization that
will own housing must demonstrate capacity to act as owner of a project and meet
the requirements of§ 92.300(a)(2). A nonprofit organization does not meet the
test of demonstrated capacity based on any person who is a volunteer or whose
services are donated by another organization; and
(10)Has a history of serving the community within which housing to be assisted with
HOME funds is to be located.In general,an organization must be able to show one
year of serving the community before HOME funds are reserved for the
organization. However, a newly created organization formed by local churches,
service organizations or neighborhood organizations may meet this requirement by
demonstrating that its parent organization has at least a year of serving the
community.
Construction Contracts means collectively City Secretary Contract Nos. 52530 for 217
Paradise St., 52526 for 1003 Baurline St., 52527 for 2612 La Salle St., 52528 for 2614 La Salle
St., and 52529 for 2712 La Salle St. between City and CHDO for the construction of single
family houses in the Riverside neighborhood.
DBE means disadvantaged business enterprise in accordance with 49 CFR Part 26.
Director means the Director of the City's Neighborhood Services Department.
Effective Date means October 1, 2019.
Neighborhood Services Department means the City's Neighborhood Services
Department.
HOME means the HOME Investment Partnerships Program.
HOME CHDO Operating Funds means the HOME Program grant funds supplied by
City to CHDO under the terms of this Contract.
HOME Regulations means the HOME Investment Partnerships Program Final Rule found
at 24 CFR Part 92 et seq.
HUD means the United States Department of Housing and Urban Development.
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IDIS means HUD's Integrated Disbursement Information System.
Reimbursement Request means all reports and other documentation described in Section
10.
3. TERM.
The term of this Contract commences on the Effective Date and terminates on
September 30, 2020 unless earlier terminated as provided in this Contract.
4. DUTIES AND RESPONSIBILITIES OF CITY.
4.1 Provide HOME CHDO OperatinLy Funds.
City shall provide up to $45,000.00 of HOME CHDO Operating Funds for eligible
administration and operating expenses relating to the production of affordable single family
houses.
4.1.1 Eligible Expenses.
Eligible administration and operating expenses under this Contract shall be limited to
(i)salaries, wages and other employee compensation and benefits; (ii)rent, utilities, taxes and
insurance; and (iii) equipment, materials and supplies as more particularly described on
Exhibit `B" — Budget.
4.2 City Will Monitor.
City will monitor the activities and performance of CHDO and any of its contractors,
subcontractors or vendors annually as required by 24 CFR Part 92.504.
4.3 CHDO Certification.
4.3.1 CHDO Certification by City.
Each time City commits HOME funds it must re-certify a nonprofit's qualifications to
be a CHDO and its capacity to own, sponsor or develop housing in accordance with Section
92.300(a)of the HOME Regulations.
4.3.1.1 By execution of this Contract, City represents that it has re- certified
that Developer meets the CHDO definition and has the capacity
to fulfill the role of developer of a project.
5. CHDO OBLIGATIONS.
5.1. Maintain CHDO Status.
5.1.0 CHDO Requirements Met.
By the execution of this Contract, CHDO represents that it meets the requirements
for designation as a CHDO set forth in 24 CFR Part 92.2.
5.11 Operate CHDO to Maintain CHDO Certification.
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CHDO shall conduct its operations in such a manner as to maintain its status as a
CHDO throughout the term of this Contract.
5.1.3 CHDO Status Reports.
CHDO has a continuing duty to provide City with all documentation or information in
regard to any change in its status as a CHDO or as a 501(c)(3) tax exempt entity within 10
business days of said change. CHDO shall provide an annual board roster and proof of its
continued status as a CHDO to City by January 30t'of each year. CHDO shall replace any
board member who resigns or is otherwise no longer able to serve within 3 months of the
vacancy. The failure of CHDO to maintain its status as a CHDO and a 501(c)(3)tax exempt
entity shall result in termination of this Contract and return of all HOME Funds to City if
CHDO is unable to cure any violations of this Section within 30 calendar days of written notice
from City.
5.2 Use of HOME CHDO Operating Funds.
5.2.1 Costs in Compliance with HOME Regulations and Contract.
CHDO shall use the HOME CHDO Operating Funds to operate the CHDO as set
forth herein. CHDO shall be reimbursed for eligible operating costs with HOME CHDO
Operating Funds only if City determines in its sole discretion that:
52.1.1 Costs are eligible expenditures in accordance with HOME
Regulations. Eligible expenses may include.
52.12 Costs are in compliance with this Contract and are reasonable,
necessary, and consistent with industry norms.
52.13 Complete Documentation, as applicable, is submitted by
CHDO.
5.2.2 Budget.
CHDO agrees that the HOME CHDO Operating Funds will be paid on a
reimbursement basis in accordance with Exhibit "B" —Budget and Exhibit "C" —
Reimbursement Schedule. CHDO may increase or decrease line-item amounts in the
Budget with the Director's prior written approval, which approval shall be in the Director's
sole discretion,so long as the expenses are in compliance with 5.2.1,comply with Exhibit"A"
—CHDO Operating Expense Summary,and the total amount of HOME CHDO Operating
Funds is not increased.
5.2.3 Change in HOME CHDO Operating Funds Budget.
523.1 CHDO will notify City promptly of any additional funds it
receives for operating expenses for which CHDO funds have
been allocated for under this Contract, and City reserves the
right to amend this Contract in such instances to ensure
compliance with HUD regulations governing cost allocation.
5232 CHDO agrees to utilize the HOME CHDO Operating Funds to
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supplement rather than supplant funds.
5233 Notwithstanding any provision in this Contract to the contrary,
CHDO's efforts to identify and secure alternative funding sources
shall not delay the performance of any obligations of either CHDO
or City under this Contract.
5.3 Payment of HOME CHDO Operating Funds to CHDO.
HOME CHDO Operating Funds will be disbursed to CHDO upon City's approval of
CHDO's written Reimbursement Requests,including submission of Complete Documentation
to City in compliance with Section 10. It is expressly agreed by the Parties that any HOME
CHDO Operating Funds not reimbursed to CHDO under the terms of this Contract shall
remain with City.
5.4 Identify Expenses Paid with HOME CHDO OperatinIZ Funds.
CHDO will keep accounts and records in such a manner that City may readily identify
and account for expenses reimbursed with HOME CHDO Operating Funds. These records
shall be made available to City for audit purposes and shall be retained as required hereunder.
6. INTENTIONALLY DELETED.
7. INTENTIONALLY DELETED.
8. ADDITIONAL HOME REQUIREMENTS.
CHDO agrees to comply with all requirements of the HOME Program as stated in
the HOME Regulations, including, but not limited to the following:
8.1 Environmental Review.
HOME CHDO Operating Funds will not be paid and costs cannot be incurred until
City has conducted and completed an environmental review as required by 24 CFR Part 58.
8.2. Monitoring.
82-1 CHDO understands and agrees that it will be subject to monitoring by City for
compliance with the HOME Regulations until the project is closed in IDIS and for 5 years
after completion of the Contract. CHDO will provide reports and access to project files as
requested by City during the term of the Contract and for 5 years after the project is closed in
IDIS.
822 Representatives of City, HUD and the United States Comptroller General
shall have access during regular business hours upon 48 hours'prior notice to CHDO's offices
and records that are related to the use of the HOME CHDO Operating Funds, and
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to its officers, directors, agents, employees, contractors, subcontractors and vendors for the
purpose of such monitoring.
823 In addition to other provisions of this Contract regarding frequency of
monitoring,City reserves the right to perform desk reviews or on-site monitoring of CHDO's
compliance with the terms and conditions of this Contract. After each monitoring visit, City
shall provide CHDO with a written report of the monitor's findings. If the monitoring report
notes deficiencies in CHDO's performance, the report shall include requirements for the
timely correction of said deficiencies by CHDO. Failure by CHDO to take the action specified
in the monitoring report may be cause for suspension or temunation of this Contract as
provided herein, or repayment of the funds disbursed under this Contract.
824 CHDO shall provide City annually the results of any state or federal
monitoring. Such results shall be submitted within 60 days of receipt of such state or federal
monitoring report, or with the January Reimbursement Request, whichever is earlier.
8.3 CHDO Procurement Standards.
CHDO shall comply with all applicable federal, state and local laws, regulations, and
ordinances for making procurements under this Contract. In addition to the conflict of interest
provisions in Section 14.13.3, CHDO shall establish written procurement procedures to
ensure that materials and services are obtained in a cost-effective manner that provides for
full and open competition. When procuring materials and services for this Contract, CHDO
shall comply at a minimum with the procurement standards in 2 CFR Part 200.317 through
Part 200.326.
83.1 Contracts in excess of$10,000.00 made by CHDO using HOME CHDO
Operating Funds must address termination for cause and convenience including the manner by
which such termination shall be effected and the basis for settlement of the terminated
contract, if any, as required by Appendix II (B), 2 CFR Part 200.
832 CHDO shall not make any contract with parties listed on the government-
wide System for Award Management, www.sam.gov ("SAM"). CHDO must confirm by
search of SAM that all contractors paid with HOME CHDO Operating Funds are not listed
by SAM as being debarred, both prior to hiring and prior to submitting a Reimbursement
Request which includes invoices from any such contractor. Failure to submit such proofs
of search shall be an event of default.
833 Cost Principles/Cost Reasonableness.
CHDO shall administer its use of HOME CHDO Operating Funds in compliance with
2 CFR Part 200,as applicable.The eligibility of costs incurred for performance rendered shall
be determined in accordance with 2 CFR Part 200.400 through 2 CFR Part 200.475.
83.4 Financial Manazement Standards.
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CHDO agrees to comply with 2 CFR Part 200, as applicable. CHDO also agrees to
adhere to the accounting principles and procedures required therein, utilize adequate internal
controls,and maintain necessary supporting and back-up documentation for all costs incurred
in accordance with 2 CFR Part 200.302 and Part 200.303.
835 Uniform Administrative Requirements.
CHDO will comply with the Uniform Administrative Requirements, C o s t
Principles, and Audit Requirements for Federal Awards in 2 CFR Part 200,as applicable, or
any reasonably equivalent procedures and requirements that City may require.
8.4 Terms Applicable to Contractors, Subcontractors and Vendors.
CHDO understands and agrees that all terms of this Contract, whether regulatory or
otherwise,shall apply to any and all contractors, subcontractors and vendors of CHDO which
are in any way paid with HOME CHDO Operating Funds or who perform any work in
connection with the Program. CHDO shall cause all applicable provisions of this Contract to
be included in and made a part of any contract or subcontract executed in the performance
of its obligations hereunder including its obligations regarding the HOME Requirements and
HOME Regulations.CHDO shall monitor the services and work performed by its contractors,
subcontractors and vendors on a regular basis for compliance with the HOME Requirements,
HOME Regulations and Contract provisions. CHDO must cure all violations of the HOME
Requirements and HOME Regulations committed by its contractors, subcontractors or
vendors. City maintains the right to insist on CHDO's full compliance with the terms of this
Contract and the HOME Requirements and HOME Regulations and CHDO is responsible for
such compliance regardless of whether actions taken to fulfill the requirements of this
Contract are taken by CHDO or by CHDO's contractors, subcontractors or vendors. CHDO
acknowledges that the provisions of this Section shall survive the earlier termination or
expiration of this Contract and shall be applicable for 5 years after the Contract term ends.
8.5 Copyright and Patent Rights.
No reports,maps,or other documents produced in whole or in part under this Contract
shall be the subject of an application for copyright by or on behalf of CHDO. HUD and City
shall possess all rights to invention or discovery, as well as rights in data, which may arise as
a result of CHDO's performance under this Contract.
8.6 Conflict of Interest Disclosure.
In accordance with the requirements of Section 14.13.2.1 and 14.13.4, CHDO shall
establish conflict of interest policies for federal awards. CHDO shall disclose to City in writing
any potential conflict of interest.
8.7 Compliance with FFATA and Whistleblower Protections.
CHDO shall comply with the requirements of 2 CFR 300(b), including provisions
of the Federal Funding Accountability and Transparency Act ("FFATA") governing
requirements on executive compensation and provisions governing whistleblower protections
contained in 10 U.S.C. 2409, 41 U.S.C. 4712, 10 U.S.C. 2324, 41 U.S.C. 4304 and 41
U.S.C. 4310.
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8.7.1 CHDO shall provide City with its Data Universal Numbering System
("DUNS") number.
8.8 Internal Controls.
In compliance with the requirements of 2 CFR Part 200.303, CHDO shall:
8.8.1 Establish and maintain effective internal control over the HOME CHDO
Operating Funds that provide reasonable assurance that CHDO is managing the HOME
CHDO Operating Funds in compliance with federal statutes, regulations, and the terms and
conditions of this Contract. These internal controls shall be in compliance with guidance in
"Standards for Internal Control in the Federal Government" issued by the Comptroller
General of the United States or the "Internal Control Integrated Framework" issued by the
Committee of Sponsoring Organizations of the Treadway Commission ("COSO");
8.82 Comply with federal statutes, regulations,and the terms and conditions of this
Contract;
8.83 Evaluate and monitor CHDO's compliance with statutes,regulations and the
terms and conditions of this Contract;
8.8.4 Take prompt action when instances of noncompliance are identified including
noncompliance identified in audit findings; and
8.85 Take reasonable measures to safeguard protected personally identifiable
information and other information that HUD or City designates as sensitive or CHDO
considers sensitive consistent with applicable federal, state, local and tribal laws regarding
privacy and obligations of confidentiality.
8.9 This Section 8 shall be applicable for the duration of the Contact term and for
5 years thereafter and shall survive the earlier termination or expiration of this Contract.
9. RECORD KEEPING, REPORTING AND DOCUMENTATION
REQUIREMENTS; RIGHT TO AUDIT.
9.1 Record Keeping.
CHDO shall maintain a record-keeping system as part of its performance of this
Contract and shall promptly provide City with copies of any document City deems necessary
for the effective fulfillment of City's monitoring and evaluation responsibilities. Specifically,
CHDO will keep or cause to be kept an accurate record of all actions taken and all funds
spent, with supporting and back-up documentation. CHDO will maintain all records and
documentation related to this Contract for 5 years after the Contract terminates. If any claim,
litigation, or audit is initiated before the expiration of the 5 year period, the relevant records
and documentation must be retained until all such claims, litigation or audits have been
resolved.
9.1.2 Access to Records.
Representatives of City and HUD and any duly authorized officials of the Federal
government will have full access to, and the right to examine, audit, excerpt and/or
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transcribe any of CHDO's records pertaining to all matters covered by this Contract for 5 years
after the Contract terminates. Such access shall be during regular business hours and upon at
least 48 hours prior notice.
9.2 Reports.
CHDO will submit to City all reports and documentation described in this Contract
in such form as City may prescribe. CHDO may also be required to submit a final
performance and/or final financial report if required by City at the termination of this Contract
in such form and within such times as City may prescribe. Failure to submit any report or
documentation described in this Contract to City shall be an event of default of this Contract
and City may exercise all of it remedies for default under this Contract.
9.2.1 Additional Information.
CHDO shall provide City with additional information as may be required by state or
Federal agencies to substantiate HOME Program activities and /or project expenditure
eligibility.
9.3 Change in Reportinlz Requirements and Forms.
City retains the right to change reporting requirements and forms at its discretion. City
will notify CHDO in writing at least 30 days prior to the effective date of such change, and
the Parties shall execute an amendment to the Contract reflecting such change if necessary.
9.4 City Reserves the Right to Audit.
City reserves the right to perform an audit of CHDO's project operations and finances
at any time during the term of this Contract or for 5 years after the Contract terminates,if City
determines that such audit is necessary for City's compliance with the HOME Regulations or
other City policies, and CHDO agrees to allow access to all pertinent materials as described
herein. If such audit reveals a questioned practice or expenditure, such questions must be
resolved within 15 business days after notice to CHDO of such questioned practice or
expenditure. If questions are not resolved within this period, City reserves the right to withhold
further funding under this Contract and/or other contract with CHDO. IF AS A RESULT
OFANY AUDIT IT IS DETERMINED THAT CHDO HAS FALSIFIED ANY
DOCUMENTATION OR MISUSED, MISAPPLIED OR MISAPPROPRIATED
HOME CHDO OPERATING FUNDS OR SPENT HOME CHDO OPERATING
FUNDS ON ANY INELIGIBLE ACTIVITIES, CHDO AGREES TO REIMBURSE
CITY THE AMOUNT OF SUCH MONIES PLUS THE AMOUNT OF ANY
SANCTIONS, PENALTY OR OTHER CHARGE LEVIED AGAINST CITY BY
HUD BECAUSE OF SUCH ACTIONS.
10. REIMBURSEMENT REQUIREMENTS.
CHDO shall provide City with Complete Documentation and the following reports as
shown in Exhibit "E" —Reimbursement Forms with each Reimbursement Request:
10.1 Attachment I—Invoice.
This report shall contain the amount requested for reimbursement in the submitted
request, and the cumulative reimbursement requested to date (inclusive of the current
request).
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10.2 Attachment II—Expenditure Worksheet.
This report shall itemize each expense such that Complete Documentation matches
each line item requested for reimbursement by CHDO. In order for this report to be complete
the following must be submitted:
10.2.1 Proof that each expense was paid by CHDO, which proof can be satisfied by
cancelled checks, wire transfer documentation, paid receipts or other appropriate banking
documentation.
10.3. Deadline for Submitting Reimbursement Requests.
All Reimbursement Requests along with Complete Documentation shall be submitted
by CHDO to City within 30 days from each of the deadlines as shown in Exhibit "C" —
Reimbursement Schedule.
10A Withholding Payment.
10.4.1 CITY SHALL WITHHOLD PAYMENTS REQUESTED UNDER
THIS CONTRACT IF COMPLETE DOCUMENTATION IS NOT RECEIVED.
10.4.2 CITY SHALL HAVE NO OBLIGATION TO MAKE PAYMENT ON
ANY REIMBURSEMENT REQUEST THAT IS NOT RECEIVED WITHIN 60
DAYS OF THE DEADLINES SHOWN IN EXHIBIT "C" —REIMBURSEMENT
SCHEDULE.In addition,CHDO's failure to timely submit Reimbursement Requests
and Complete Documentation along with any required reports shall be an event of
default.
105 Timing of Payment.
Provided that CHDO submits Complete Documentation in conformance with this
Contract, City will reimburse CHDO for eligible expenses within 30 calendar days.
11. DEFAULT AND TERMINATION.
11.1 Failure to Maintain or Submit Required Reports and Documentation.
If CHDO fails to maintain all records and documentation as required in Section 9,
or fails to submit any report or documentation required by this Contract, or if the submitted
report or documentation is not in compliance with this Contract or the HOME Regulations as
determined by City in its sole discretion, City will notify CHDO in writing and CHDO will
have 30 calendar days from the date of the written notice to obtain or recreate the missing
records or documentation,or submit or resubmit any such report or documentation to City.If
CHDO fails to maintain the required reports or documentation,or submit or resubmit any such
report or documentation within such time, City shall have the right to terminate this Contract
effective immediately upon written notice of such intent with no penalty or liability to City.
11.2 In General.
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1121 Subject to Section 11.1, and unless specifically provided otherwise in this
Contract, CHDO shall be in default under this Contract if CHDO breaches any term or
condition of this Contract. In the event that such a breach remains uncured after 30 calendar
days following written notice by City(or such other notice period as may be specified herein),
or if CHDO has diligently and continuously attempted to cure following receipt of such
written notice but reasonably required more than 30 calendar days to cure, as determined by
both Parties mutually and in good faith, City shall have the right to elect, in City's sole
discretion, to (i) extend CHDO's time to cure, (ii) terminate this Contract effective
immediately upon written notice of such intent to CHDO. City's remedies may include:
1121.1 Direct CHDO to prepare and follow a schedule of actions for
carrying out the affected activities, consisting of schedules,
timetables and milestones necessary to implement the affected
activities.
11212 Direct CHDO to establish and follow a management plan that
assigns responsibilities for carrying out the remedial activities.
11213 Cancel or revise activities likely to be affected by the
performance deficiency, before expending HOME CHDO
Operating Funds for the activities.
11214 Reprogram HOME CHDO Operating Funds that have not yet
been expended from affected activities to other eligible activities
or withhold HOME CHDO Operating Funds.
11215 Direct CHDO to reimburse City in any amount of HOME CHDO
Operating Funds not used in accordance with the HOME
Regulations.
1121.6 Suspend reimbursement of HOME CHDO Operating Funds for
affected activities.
1121.7 Any other appropriate action including but not limited to any
remedial action legally available such as declaratory judgment,
specific performance, damages, temporary or permanent
injunctions, termination of this Contract or any other contracts
with CHDO, including but not limited to the Construction
Contracts and any other available remedies.
1122 In the event of termination under this Section 11.2, all HOME CHDO
Operating Funds awarded but unpaid to CHDO pursuant to this Contract shall be immediately
rescinded and CHDO shall have no further right to such.
11.3 No Funds Disbursed while in Breach.
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CHDO understands and agrees that no HOME CHDO Operating Funds will be paid
to CHDO until all defaults are cured to the satisfaction of City.
11.4 No Compensation After Date of Termination.
CHDO shall not receive any HOME CHDO Operating Funds for work undertaken
after the date of termination.
11.5 Rights of City Not Affected.
Termination shall not affect or terminate any of the existing rights of City against
CHDO, or which may thereafter accrue because of such default, and this provision shall be
in addition to any and all other rights and remedies available to City under the law. Such
termination does not terminate any applicable provisions of this Contract that have been
expressly noted as surviving the term or termination of this Contract.No delay or omission by
City in exercising any right or remedy available to it under this Contract shall impair any such
right or remedy or constitute a waiver or acquiescence in any CHDO default.
11.6 Waiver of Breach Not Waiver of Subseci uent Breach.
The waiver of a default or breach of any term, covenant, or condition of this
Contract shall not operate as a waiver of any subsequent breach of the same or any other
term, covenant or condition hereof.
11.7 Civil, Criminal and Administrative Penalties.
Failure to perform all the Contract terms may result in civil,criminal or administrative
penalties, including, but not limited to those set out in this Contract.
11.8 Termination for Cause.
1L81 CHDO's uncured breach or default under the Construction Contracts shall be
cause for City to terminate this Contract automatically. In the event City terminates this
Contract for cause under this Section 11.8.1, all HOME CHDO Operating Funds awarded but
unpaid to CHDO pursuant to this Contract shall be immediately rescinded and CHDO shall
have no further right to such funds. CHDO ACKNOWLEDGES AND AGREES THAT
IF CITY TERMINATES THIS CONTRACT FOR CAUSE,CHDO OR ANY OF ITS
AFFILIATES SHALL NOT BE CONSIDERED FOR ANY OTHER CITY
CONTRACT FOR HOME FUNDS FOR A MINIMUM OF 5 YEARS FROM THE
DATE OF TERMINATION.
11.82 CHDO may terminate this Contract if City does not provide the HOME CHDO
Operating Funds substantially in accordance with this Contract.
11.9 Termination for Convenience.
In terminating in accordance with 2 CFR Part 200,Appendix 11, this Contract may be
terminated in whole or in part only as follows:
11.9.1 By City with the consent of CHDO in which case the Parties shall agree upon
the termination conditions, including the effective date and in the case of partial termination,
the portion to be terminated, or
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11.92 By CHDO upon at least 30 days written notice to City setting forth the reasons
for such termination,the effective date, and in the case of partial termination,the portion to be
terminated. In the case of a partial termination,if City determines in its sole discretion that the
remaining portion of the Contract to be performed or HOME CHDO Operating Funds to be
spent will not accomplish the purposes for which the Contract was made City may terminate
the Contract in its entirety.
11.10 Dissolution of CHDO or Loss of CHDO Certification Terminates
Contract.
This Contract shall automatically terminate in the event CHDO is dissolved, ceases to
exist or loses its CHDO certification or status.
12. INTENTIONALLY DELETED.
13. MATERIAL OWNERSHIP CHANGE.
If ownership of CHDO materially changes after the date of this Contract, City may
but is not obligated to, terminate this Contract. City has 30 days to make such determination
after receipt of notice from CHDO and failure to make such determination will constitute a
waiver. In the event of termination under this Section 13, all HOME CHDO Operating Funds
awarded but not yet paid to CHDO pursuant to this Contract shall be immediately rescinded
and CHDO shall have no further right to such funds.
14. GENERAL PROVISIONS
14.1 CHDO an Independent Contractor.
CHDO shall operate hereunder as an independent contractor and not as an officer,
agent, servant or employee of City. CHDO shall have exclusive control of, and the exclusive
right to control, the details of the work and services performed hereunder, and all persons
performing same, and shall be solely responsible for the acts and omissions of its officers,
members, agents, servants, employees, contractors, subcontractors, vendors, tenants,
licensees or invitees.
14.2 Doctrine of Respondeat Superior.
The doctrine of respondeat superior shall not apply as between City and CHDO, its
officers, members, agents, servants, employees, contractors, subcontractors, vendors,
tenants, licensees or invitees,and nothing herein shall be construed as creating a partnership
or joint enterprise between City and CHDO. City does not have the legal right to control the
details of the tasks performed hereunder by CHDO,its officers,members,agents,employees,
contractors, subcontractors, vendors,tenants, licensees or invitees.
143 CHDO Property.
City shall under no circumstances be responsible for any property belonging to CHDO,
its officers, members, agents, employees, contractors, subcontractors, vendors, tenants,
licensees or invitees that may be lost,stolen or destroyed or in any way damaged and CHDO
HEREBY INDEMNIFIES AND HOLDS HARMLESS CITY AND ITS OFFICERS,
AGENTS, AND EMPLOYEES FROM ANY AND ALL CLAIMS OR
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SUITS PERTAINING TO OR CONNECTED WITH SUCH PROPERTY.
14.4 Religious Organization.
No portion of the HOME CHDO Operating Funds shall be used in support of any
sectarian or religious activity. In addition,there must be no religious or membership criteria
for buyers of a HOME-funded property.
14.5 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 Tarrant County, Texas.
14.6 Governing Law.
This Contract shall be government by and construed in accordance with the laws of
the State of Texas. If any action, whether real or asserted, at law or in equity, arises out of
the execution, performance or non-performance of this Contract or on the basis of any
provision herein,for any issue not governed by Federal law,the choice of law shall be the laws
of the State of Texas.
14.7 Severability.
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 or commission having jurisdiction over the subject matter
thereof, such invalidity shall not affect other provisions which can be given effect without
the invalid provision.
14.8 Written Agreement Entire Agreement.
This written instrument and the Exhibits, Attachments and Addendums attached
hereto,which are incorporated by reference and made a part of this Contract for all purposes,
constitutes the entire agreement by the Parties concerning the work and services to be
performed under this Contract. Any prior or contemporaneous oral or written agreement,
which purports to vary the terms of this Contract, shall be void.Any amendments to the terms
of this Contract must be in writing and executed by the P art i e s.
14.9 Paragraph Headings for Reference Only, No Legal Significance;
Number and Gender.
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. When context requires, singular nouns and pronouns include the plural and the
masculine gender shall be deemed to include the feminine or neuter and the neuter gender
to include the masculine and feminine. The words "include" and "including" whenever
used herein shall be deemed to be followed by the words "without limitation".
14.10 Compliance With All Applicable Laws and Regulations.
CHDO agrees to comply fully with all applicable laws and regulations that are
currently in effect or that are hereafter amended during the performance of this Contract.
Those laws include, but are not limited to:
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➢ HOME Investment Partnership Act as set out above as "Act'
➢ Title VI ofthe Civil Rights Act of 1964(42 U.S.C. Sections 2000d et seq.)including
provisions requiring recipients of Federal assistance to ensure meaningful access
by person of limited English proficiency
➢ The Fair Housing Act, Title VIII of the Civil Rights Act of 1968 (42 U.S.C.
Sections 3601 et seq.)
➢ Executive Orders 11063, 11246 as amended by 11375 and 12086 and as
supplemented by Department of Labor regulations 41 CFR, Part 60
➢ The Age Discrimination in Employment of 1967
➢ The Age Discrimination Act of 1975 (42 U.S.C. Sections 6101 et seq.)
➢ The Uniform Relocation Assistance and Real Property Acquisition Policies Act
of 1970 (42 U.S.C. Sections 4601 et seq. and 49 CFR Part 24) ("URA")
➢ Section 504 of the Rehabilitation Act of 1973(29 U.S.C. Sections 794 et seq.)and
24 CFR Part 8 where applicable
➢ National Environmental Policy Act of 1969,as amended,42 U.S.C. sections 4321
et seq. ("NEPA") and the related authorities listed in 24 CFR Part 58.
➢ The Clean Air Act, as amended, (42 U.S.C. Sections 1251 et seq.) and the Clean
Water Act of 1977, as amended (33 U.S.C. Sections 1251 et seq.), related
Executive Order 11738 and Environmental Protection Agency Regulations at
40 CFR Part 15. 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 A c t.
➢ Immigration Reform and Control Act of 1986 (8 U.S.C. Sections 1101 et seq.)
specifically including the provisions requiring employer verifications of legal status
of its employees
➢ The Americans with Disabilities Act of 1990(42 U.S.C. Sections 12101 etseq.),
the Architectural Barriers Act of 1968 as amended (42 U.S.C. sections 4151 et
seq.)and the Uniform Federal Accessibility Standards,24 CFR Part 40,Appendix
A
➢ Regulations at 24 CFR Part 87 related to lobbying,including the requirement that
certifications and disclosures be obtained from all covered persons
➢ Drug Free Workplace Act of 1988 (41 U.S.C. Sections 701 et seq.) and 24 CFR
Part 23,Subpart F
➢ Executive Order 12549 and 24 CFR Part 5.105(c) pertaining to restrictions on
participation by ineligible, debarred or suspended persons or entities
➢ Regulations at 24 CFR Part 882.708(c) pertaining to site and neighborhood
standards for new construction projects
➢ Regulations at 24 CFR Part 983.6 for Site and Neighborhood Standards Review
➢ Section 6002 of the Solid Waste Disposal Act, as amended by the Resource
Conservation and Recovery Act
➢ Guidelines of the Environmental Protection Agency at 40 CFR Part 247
➢ For contracts and subgrants for construction or repair, Copeland "Anti-
Kickback"Act (18 U.S.C. 874)as supplemented in 29 CFR Part 5
➢ For construction contracts in excess of$2,000, and in excess of$2,500 for other
contracts which involve the employment of mechanics or laborers, Sections 103
and 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C.327A
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300) as supplemented by 29 CFR Part 5
➢ Lead-Based Paint Poisoning Prevention Act(42 U.S.C.4801 et seq.), as amended
by the Residential Lead-Based Paint Hazard Reduction Act of 1992 (42 U.S.C.
4851 et seq.) and implementing regulations at 24 CFR Part 35, subparts A, B, M,
and R
➢ Regulations at 24 CFR Part 92, HOME Investment Partnerships Program Final
Rule
➢ Uniform Administrative Requirements, Cost Principles, and Audit Requirements
for Federal Awards, 2 CFR Part 200 et seq.
➢ Federal Funding Accountability and Transparency Act of 2006 ("FFATA")
(Pub.L. 109-282, as amended by Section 6205(a) of Pub.L. 110 -252 and
Section 3 of Pub.L. 113-101)
➢ Federal Whistleblower Regulations, as contained in 10 U.S.C. 2409, 41
U.S.C. 4712, 10 U.S.C. 2324,41 U.S.C. 4304 and 41 U.S.C. 4310.
➢ Broadband Infrastructure Requirements, 24 CFR Part 5.100 and Section 706 of
the Telecommunications Act of 1996, 47 U.S.C. 1302
➢ Violence Against Women Act of 1994, 42 U.S.C. 13981
14.11 INTENTIONALLY DELETED.
14.12 Prohibition AlZainst Discrimination..
14.12.1 General Statement.
CHDO, in the execution, performance or attempted performance of this Contract,
shall comply with all non-discrimination requirements of 24 CFR 92.350 and the
ordinances codified at Chapter 17, Article III, Division 4—Fair Housing of the City Code.
CHDO may not discriminate against any person because of race, color, sex, gender,
religion, national origin, familial status, disability or perceived disability, sexual
orientation, gender identity, gender expression, or transgender, nor will CHDO permit its
officers, members, agents, employees, vendors or project participants to engage in such
discrimination.
This Contract is made and entered into with reference specifically to the ordinances
codified at Chapter 17,Article III, Division 3 -Employment Practices of the City Code, and
CHDO hereby covenants and agrees that CHDO, its officers, members, agents, employees,
vendors and contractors, have fully complied with all provisions of same and that no
employee,or applicant for employment has been discriminated against under the terms of such
ordinances by either or its officers, members, agents, employees,vendors or contractors.
14.12.2 No Discrimination in Employment during the Performance of this
Contract.
CHDO agrees to the following provision during the performance of this Contract, and
will require that its contractors, subcontractors and vendors also comply with such provision
by including it in all contracts with its contractors, subcontractors or vendors using CHDO
Operating Funds:
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[Contractor's, Subcontractor's or Vendor's Name ] will not unlawfully
discriminate against any employee or applicants for employment because of race,color,
sex, gender, religion,national origin, familial status, disability or perceived disability,
sexual orientation, gender identity, gender expression or transgender.
[Contractor's, Subcontractor's or Vendor's Name] will take affirmative action
to ensure that applicants are hired without regard to race, color, sex, gender,religion,
national origin, familial status, disability or perceived disability, sexual orientation,
gender identity, gender expression or transgender and that employees are treated
fairly during employment without regard to their race, color, sex, gender, religion,
national origin, familial status, disability or perceived disability, sexual orientation,
gender identity,gender expression or transgender. Such action shall include,but not be
limited to,the following: employment,upgrading,demotion or transfer, recruitment or
recruitment advertising, layoff or termination, rates of pay or other forms of
compensation,and selection for training, including apprenticeship. (Contractor's,
Subcontractor's or Vendor's Name] agrees to post inconspicuous places,available
to employees and applicants for employment, notices setting forth the provisions of
this nondiscrimination clause.
[Contractor's, Subcontractor's or Vendor's Namel will, in all solicitations or
advertisements for employees placed by or on behalf of [Contractor's,
Subcontractor's or Vendor's Name] , state that all qualified applicants will
receive consideration for employment without regard to race, color, sex, gender,
religion, national origin, familial status, disability or perceived disability, sexual
orientation, gender identity, gender expression or transgender.
[Contractor's, Subcontractor's or Vendor's Name]`covenants that neither it nor
any of its officers, members, agents, employees, or contractors, 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 employment,discriminate against persons because of their age or because of any
disability or perceived disability, except on the basis of a bona fide occupational
qualification, retirement plan or statutory requirement.
[Contractor's, Subcontractor's or Vendor's Name] further covenants that
neither it nor its officers, members,agents, employees, contractors, or persons acting
on their behalf, shall specify, in solicitations or advertisements for employees to work
on this Contract, a maximum age limit for such employment unless the specified
maximum age limit is based upon a bona fide occupational qualification, retirement
plan or statutory requirement.
14.123 Contractors and the ADA.
In accordance with the provisions of the Americans With Disabilities Act of 1990
("ADA"), CHDO warrants that it and any of its contractors will not unlawfully discriminate
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
CHDO or any of its contractors. CHDO WARRANTS IT WILL FULLY COMPLY
WITH ADA'S PROVISIONS AND ANY OTHER APPLICABLE
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FEDERAL, STATE AND LOCAL LAWS CONCERNING DISABILITY AND
WILL DEFEND, INDEMNIFY AND HOLD CITY HARMLESS AGAINST ANY
CLAIMS OR ALLEGATIONS ASSERTED BY THIRD PARTIES,
CONTRACTORS, SUBCONTRACTORS OR VENDORS AGAINST CITY
ARISING OUT OF CHDO'S AND/OR ITS CONTRACTORS',
SUBCONTRACTORS', VENDORS', AGENTS' OR EMPLOYEES' ALLEGED
FAILURE TO COMPLY WITH THE ABOVE-REFERENCED LAWS
CONCERNING DISABILITY DISCRIMINATION IN THE PERFORMANCE OF
THIS CONTRACT.
14.13 Conflicts of Interest and Violations of Criminal Law.
14.13.1 CHDO Safeguards.
CHDO shall establish safeguards to prohibit its employees, board members,advisors
and agents from using positions for a purpose that is or gives the appearance of being motivated
by a desire for private gain for themselves or others, particularly those with whom they have
family, business or other ties. CHDO shall disclose to City any such conflict of interest or
potential conflict of interest, immediately upon discovery of such.
14.13.2 General Prohibitions Against Conflicts of Interest.
No employees, agents, consultants, officers or elected officials or appointed officials
of City or of CHDO who exercise or have exercised any functions or responsibilities with
respect to activities assisted with HOME CHDO Operating funds or who are in a position to
participate in a decision-making process or gain inside information with regard to these
activities may utilize HOME CHDO Operating services, may obtain a financial interest or
benefit from a HOME CHDO Operating-assisted activity, or have an interest in any
contract, 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 or
for 1 year thereafter, unless they are accepted in accordance with the procedures set forth
at 24 CFR Part 92.
14.132-1 CHDO shall establish conflict of interest policies for federal
awards including the HOME CHDO Operating Funds and
shall disclose in writing potential conflicts of interest to City as
authorized by 2 CFR Part 200.112.
14.13.3 Conflicts of Interest Involving Procurement.
The conflict of interest provisions of 2 CFR Part 200.318 shall apply in the procurement
of property and services by CHDO. In all cases not governed by this Section, the provisions
of 24 CFR Part 92 of the HOME Regulations shall apply.
14.133.1 As more particularly described in 2 CFR Part 200.318,CHDO
shall maintain and submit to City written standards of conduct
covering conflicts of interest and governing the performance of
its employees engaged in the selection, award, and
administration of contracts. No employee, officer, or agent
may participate in the selection, award, or administration of a
contract supported by a federal award if
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he or she has a real or apparent conflict of interest. The
standards of conduct must provide for disciplinary actions to be
applied for violations of such standards by officers, employees,
or agents of CHDO.
14.1332 The officers, employees, and agents of CHDO shall neither
solicit nor accept gratuities, favors, or anything of monetary
value from contractors or parties to subcontracts.
14.1333 Notwithstanding the prohibition contained in Section 14.13.3.2,
CHDO may set standardsof conduct for situations in which
the financial interest is not substantial or the gift is an unsolicited
item of nominal value. Such standards of conduct must provide
for disciplinary actions to be applied for violations of such
standards by CHDO's officers, employees or agents.
14.1334 CHDO shall maintain written standards of conduct covering
organizational conflicts of interest. Organizational conflicts of
interest means that because of relationships with a parent
company,affiliate,or subsidiary organization, CHDO is unable
or appears to be unable to be impartial in conducting a
procurement action involving a related organization.
14.1335 CHDO must maintain records sufficient to detail the history of
procurement. These records will include, but are not
necessarily limited to the following:rationale for the method of
procurement, selection of contract type, contractor selection
or rejection, and the basis for the contract price.
14.13.4 Disclosure of Conflicts of Interest.
In compliance with 2 CFR Part 200.112,CHDO is required to timely disclose to
City in writing any potential conflict of interest.
14.13.5 Disclosure of Texas Penal Code Violations.
CHDO affirms that it will adhere to the provisions of the Texas Penal Code which
prohibit bribery and gifts to public servants.
14.13.6 Disclosure of Federal Criminal Law Violations.
In compliance with 2 CFR Part 200.113,CHDO is required to timely disclose to City
all violations of federal criminal law involving fraud, bribery or gratuity violations potentially
affecting the CHDO.
14.14 INTENTIONALLY DELETED.
14.15 Subcontracting with Small and Minority Firms, Women's Business
Enterprises and Labor Surplus Areas.
14.15.1 For procurement contracts S50,000.00 or larger, CHDO agrees to abide
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by City's policy to involve Minority Business Enterprises and Small Business Enterprises and
to provide them equal opportunity to compete for contracts for construction, provision of
professional services, purchase of equipment and supplies and provision of other services
required by City. CHDO agrees to incorporate the City's BDE Ordinance, and all
amendments or successor policies or ordinances thereto, into all contracts and subcontracts
for procurement $50,000.00 or larger, and will further require all persons or entities with
which it so contracts to comply with said ordinance.
14.15.2 It is national policy to award a fair share of contracts to disadvantaged
business enterprises ("DBEs"), small business enterprises ("SBEs"), minority business
enterprises ("MBEs"), and women's business enterprises ("WBEs"). Accordingly,
affirmative steps must be taken to assure that DBEs, SBEs, MBEs, and WBEs are utilized
when possible as sources of supplies,equipment,construction and services.
14.16 Other Laws.
The failure to list any Federal, state or City ordinance, law or regulation that is
applicable to CHDO does not excuse or relieve CHDO from the requirements or
responsibilities in regard to following the law, nor from the consequences or penalties for
CHDO's failure to follow the law,if applicable.
14.17 Assignment.
CHDO shall not assign all or any part of its rights, privileges, or duties under this
Contract without the prior written approval of City. Any attempted assignment of same
without approval shall be void, and shall constitute a breach of this Contract.
14.18 Right to Inspect CHDO Contracts.
It is agreed that City has the right to inspect and approve in writing any proposed
contracts between CHDO, and (i) its general contractor and subcontractors, including any
lower tier subcontractors engaged in any activity that is funded as part of the construction of
the Required Improvements, (ii)any vendor contracts arising out of the sale of the Required
Improvements, and (iii)any third party contracts to be paid with HOME CHDO Operating
Funds, prior to any charges being incurred under any such contracts.
14.19 Force Majeure.
If CHDO becomes unable,either in whole or part,to fiilfill its obligations under this
Contract due to acts of God, strikes, lockouts, or other industrial disturbances, acts of public
enemies,wars,blockades,insurrections,riots,epidemics,earthquakes,fires,floods,restraints
or prohibitions by any court,board,department,commission or agency of the United States or
of any States,civil disturbances,or explosions,or some other reason beyond CHDO's control
(collectively, "Force Majeure Event"), the obligations so affected by such Force Majeure
Event will be suspended only during the continuance of such event and the completion date
for such obligations shall be extended for alike period. CHDO will give City written notice of
the existence, extent and nature of the Force Majeure Event as soon as reasonably possible
after the occurrence of the event. Failure to give notice will result in the continuance of
CHDO's obligation regardless of the extent of any existing Force Majeure Event. CHDO will
use commercially reasonable efforts to remedy its inability to perform as soon as possible
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14.20 Survival.
Any provision of this Contract that pertains to HOME Regulations, auditing,
monitoring, record keeping and reports, City ordinances, the provisions of Section 8.3.2
pertaining to the Federal System Award Management, or any other HOME Program
requirements, and any default and enforcement provisions necessary to enforce such
provisions, shall survive the termination of this Contract for 5 years after the termination
date and shall be enforceable by City against CHDO.
15. INDEMNIFICATION AND RELEASE.
CHDO COVENANTS AND AGREES TO INDEMNIFY, HOLD
HARMLESSAND 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 AND/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 CHDO 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 KINDS 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 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. CHDO LIKEWISE COVENANTS AND AGREES TO AND DOES HEREBY
INDEMNIFY 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
CHDO,ITS OFFICERS, MEMBERS,AGENTS,EMPLOYEES, CONTRACTORS,
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 CHDO AND
CITY, THAT THE INDEMNITY PROVIDED FOR THIS SECTION INCLUDES
INDEMNITY BY CHDO TO INDEMNIFY AND PROTECT CITY FROM THE
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CONSEQUENCES OF CITY'S OWN NEGLIGENCE, WHETHER THAT
NEGLIGENCE IS ALLEGED TO BE THE SOLE OR CONCURRING CAUSE OF
THE INJURY, DAMAGE OR DEATH.
CHDO 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 INCIDENTAL TO
PERFORMANCE UNDER THIS CONTRACT, EVEN IF THE INJURY, DEATH,
DAMAGE OR LOSS IS CAUSED BY CITY'S SOLE OR CONCURRENT
NEGLIGENCE.
CHDO SHALL REQUIRE ALL OF ITS CONTRACTORS AND
SUBCONTRACTORS TO INCLUDE IN THEIR CONTRACTS AND
SUBCONTRACTS A RELEASE AND INDEMNITY IN FAVOR OF CITY IN
SUBSTANTIALLY THE SAME FORM AS ABOVE.
16. WAIVER OF IMMUNITY BY CHDO.
If CHDO, as a charitable or nonprofit organization, has or claims an immunity or
exemption(statutory or otherwise) from and against liability for damages or injury, including
death, to persons or property, CHDO hereby expressly waives its rights to plead defensively
such immunity or exemption as against City. This Section shall not be construed to affect a
governmental entity's immunities under constitutional, statutory or common law.
17. INSURANCE AND BONDING.
CHDO will maintain coverage in the form of insurance or bond in the amount of
$45,000.00 to insure against loss from the fraud, theft or dishonesty of any of CHDO's
officers, agents, trustees, directors or employees. The proceeds of such insurance or bond
shall be used to reimburse City for any and all loss of HOME CHDO Operating Funds
occasioned by such misconduct. To effectuate such reimbursement, such fidelity coverage
shall include a rider stating that reimbursement for any loss or losses shall name the City as a
Loss Payee.
CHDO shall furnish to City, in a timely manner, but not later than 10 days after the
Effective Date, certificates of insurance as proof that it has secured and paid for policies of
commercial insurance as specified herein. If City has not received such certificates as set
forth herein, CHDO shall be in default of the Contract and City may at its option,terminate
the Contract.
Such insurance shall cover all insurable risks incident to or in connection with the
execution, performance,attempted performance or nonperformance of this Contract. CHDO
shall maintain,or require its general contractor to maintain,the following coverages and limits
thereof:
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Commercial General Liability (CGL) Insurance
$1,000,000 each occurrence
$2,000,000 aggregate limit
Business Automobile Liability Insurance
$1,000,000 each accident on a combined single-limit basis, or
$ 250,000 Property Damage
$ 500,000 Bodily Injury per person per occurrence
$2,000,000 Aggregate
Insurance policy shall be endorsed to cover"Any Auto" defined as autos owned,
hired and non-owned.Pending availability of the above coverage and at the discretion
of City,the policy shall be the primary responding insurance policy versus a personal
auto insurance policy if or when in the course of CHDO's business as contracted herein.
Workers' Compensation Insurance
Part A: Statutory 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 work on any and all projects
including but not limited to construction, demolition, and rehabilitation. CHDO or its
contractors shall maintain coverages, if applicable. In the event the respective
contractors do not maintain coverage, CHDO shall maintain the coverage on such
contractor, if applicable,for each applicable contract.
Additional Requirements
Such insurance amounts shall be revised upward at City's reasonable option and no more
frequently than once every 12 months, and CHDO shall revise such amounts within 30 days
following notice to CHDO of such requirements.
CHDO will submit to City documentation that it, and its general contractor, have obtained
insurance coverage and have executed bonds as required in this Contract prior to payment of
any monies provided hereunder.
Where applicable, insurance policies required herein shall be endorsed to include City as an
additional insured as its interest may appear. Additional insured parties shall include
employees, officers, agents, and volunteers of City.
The Workers' Compensation Insurance policy shall be endorsed to include a waiver of
subrogation, also referred to as a waiver of rights of recovery, in favor of City.
CHDO OPERATING FUNDS CONTRACT 2019-2020 Rev. 01/22/2019
Housing Channel Page 25
Any failure on part of 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 CHDO's insurance policies shall be licensed to do business in the state of Texas
by the Department of Insurance or be otherwise eligible and authorized to do business in the
state of Texas. Insurers shall be acceptable to City insofar as their financial strength and
solvency and each such company shall have a current minimum A.M. Best Key Rating Guide
rating of A: VII or other equivalent insurance industry standard rating otherwise approved by
City.
Deductible limits on insurance policies shall not exceed $5,000.00 per occurrence unless
otherwise approved by City.
In the event there are any local, Federal or other regulatory insurance or bonding
requirements for the project,and such requirements exceed those specified herein,the former
shall prevail.
CHDO shall require its contractors to maintain applicable insurance coverages, limits, and
other requirements as those specified herein; and, CHDO shall require its contractors to
provide CHDO with certificate(s) of insurance documenting such coverage. Also, CHDO
shall require its contractors to have City and CHDO endorsed as additional insured (as their
interest may appear) on their respective insurance policies.
Directors and Officers Liability or Professional Liability coverage shall be in force and may
be provided on a claims-made basis. This coverage may also be referred to as Management
Liability,and shall protect the insured against claims arising out of alleged errors in judgment,
breaches of duty and wrongful acts arising out of their management duties. Coverage shall
protect not only the entity, but all past, present and future directors, officers, trustees,
employees,volunteers and committee members.
Notwithstanding any provision in this Contract to the contrary, when applicable,
CHDO shall comply with the requirements oft CFR 200.310 and shall, at a minimum,
provide the equivalent insurance coverage for real property and equipment acquired
or improved with HOME CHDO Operating Funds as provided to property owned by
CHDO.
18. CERTIFICATION REGARDING LOBBYING.
CHDO hereby certifies, to the best of its knowledge and belief, that:
No Federal appropriated funds have been paid or will be paid,by or on behalf
of CHDO, to any person for influencing or attempting to influence an officer
or employee of any agency, a member of Congress, an officer or employee of
Congress in connection with the awarding of any Federal contract, the making
of any Federal grant,the making of any Federal loan,the entering into of any
cooperative agreement and the extension,
CHDO OPERATING FUNDS CONTRACT 2019-2020 Rev. 01/22/2019
Housing Channel Page 26
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 cooperative agreement, CHDO 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 making or entering into this Contract imposed by
31 U.S.C. 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.
CHDO shall require that the language of this certification be included in all
subcontracts or agreements involving the expenditure of Federal funds.
19. RELIGIOUS ORGANIZATION.
CHDO shall comply with all applicable requirements as more particularly described
in 24 CFR Part 5.109. No portion of the HOME CHDO Operating Funds shall be used in
support of any sectarian or religious activity. In addition, there must be no religious or
membership criteria for clients of a HOME-funded service.
19.1. Separation of Explicitly Religious Activities.
CHDO retains its independence and may continue to carry out its mission, including
the definition, development practice, and expression of its religious beliefs, provided that
it does not use HOME Funds to support or engage in any explicitly religious activities(including
activities that involve overt religious content such as worship, religious instruction, or
proselytization), or in any other manner prohibited by law.
19.2 Explicitly Religious Activities.
If CHDO engages in explicitly religious activities(including activities that involve overt
religious content such as worship, religious instruction, or proselytization), the explicitly
religious activities must be offered separately, in time or location, from the programs or
activities supported by HOME Funds and participation must be voluntary for clients of a
HOME-funded service.
20. BOYCOTTING ISRAEL PROHIBITED.
CHDO acknowledges that in accordance with Chapter 2270 of the Texas
Government Code, City is prohibited from entering into a contract with a company for goods
or services unless the contract contains a written verification from the company that it: (1)
does not boycott Israel; and (2) will not boycott Israel during the term of the contract. The
terms "boycott Israel" and "company" shall have the meanings ascribed to those terms in
Section 808.001 of the Texas Government Code. By signing this Contract, CHDO
CHDO OPERATING FUNDS CONTRACT 2019-2020 Rev. 01/22/2019
Housing Channel Page 27
certifies that CHDO's signature provides written verification to City that CHDO: (1)
does not boycott Israel; and (2)will not boycott Israel during the term of this Contract.
21. LITIGATION AND CLAIMS.
CHDO shall give City immediate notice in writing of any action, including any
proceeding before an administrative agency, filed against CHDO in conjunction with this
Contract or the project. CHDO shall furnish immediately to City copies of all pertinent papers
received by CHDO with respect to such action or claim. CHDO shall provide a notice to City
within 10 days upon filing under any bankruptcy or financial insolvency provision of law.
22. NOTICE.
All notices required or permitted by this Contract must be in writing and shall be
effective upon receipt when (i) sent by U.S. Mail with proper postage, certified mail return
receipt requested or by a nationally recognized overnight delivery service; and (ii)addressed
to the other Party at the address set out below or at such other address as the receiving Party
designates by proper notice to the sending Party.
City
City Attorney's Office
200 Texas Street
Fort Worth, TX 76102
Attention: Vicki S. Ganske or Jo Ann Pate
Telephone: 817-392-7765 or 817-392-6259
Copy to:
Neighborhood Services Department
200 Texas Street Fort Worth,TX 76102
Attention: Neighborhood Development Coordinator
Telephone: 817-3 92-7540
CHDO:
Housing Chanel
4200 S. Freeway, Tower Ste. 307
Fort Worth, TX 76115
Attn: Donna VanNess, President
Telephone: 817-924-5091, ext. 3293
23. CHDO HAS LEGAL AUTHORITY TO ENTER INTO CONTRACT.
CHDO represents that it possesses the legal authority, pursuant to any proper,
appropriate and official motion, resolution or action passed or taken, to enter into this
Contract and to perform the responsibilities herein required.
CHDO OPERATING FUNDS CONTRACT 2019-2020 Rev. 01/22/2019
Housing Channel Page 28
24. COUNTERPARTS.
This Contract may be executed in multiple counterparts, each of which shall be
considered an original, but all of which shall constitute one instrument which may be
sufficiently evidenced by one counterpart.
25. IMMIGRATION NATIONALITY ACT.
City actively supports the Immigration & Nationality Act (INA) which includes
provisions addressing employment eligibility, employment verification, and nondiscrimination.
CHDO shall verify the identity and employment eligibility of all employees who perform
work under this Agreement. CHDO shall complete the Employment Eligibility Verification
Form (I-9), maintain photocopies of all supporting employment eligibility and identity
documentation for all employees, and upon request, provide City with copies of all I-9 forms
and supporting eligibility documentation for each employee who performs work under this
Agreement. CHDO shall establish appropriate procedures and controls so that no services
will be performed by any employee who is not legally eligible to perform such services.
CHDO shall provide City with a certification letter that it has complied with the verification
requirements required by this Agreement. CHDO shall indemnify City from any penalties or
liabilities due to violations of this provision. City shall have the right to immediately terminate
this Agreement for violations of this provision by CHDO.
[SIGNATURES APPEAR ON NEXT PAGE]
CHDO OPERATING FUNDS CONTRACT 2019-2020 Rev. 01/22/2019
Housing Channel Page 29
IN WITNESS WHEREOF,the Parties have executed 3 duplicate originals of this
Contract to be effective on the Effective Date.
-IM,
�C} ATTEST: CITY OF FORT WORTH
_ By: e`�,�••e�O
:City Sec t Fernando Costa, Assistant City Manager
sir E1 M&C 19-0016 Dated 8/6/2019 Date: 311 Co/Zo 26
.... Form 1295: 2414+- a0a0 -b01 a g C?
APP VED AS TO FORM AND LEGALITY:
Vicki S. Ganske, Senior Assistant City Attorney
HOUSING CILANNEL, a Texas nonprofit
corporatio
By:
?1
o ss,Pre ' t
Date: (�
City of Fort Worth Agreement Compliance
Manager:
By signing I acknowledge that I am the person
responsible for the monitoring and administration
of this contract, including ensuring all
performance and reporting requirements.
&,.-I A�m
Name: Chad LaRoque Title: Housing Development Manager
M
IAL RECORDSECRETARYORTH,TX
CHDO OPERATING FUNDS CONTRACT 2019-2020 Rev.10/22/19
Housing Chanel Signature Page
EXHIBITS:
Exhibit "A"—CHDO Operating Expense Summary
Exhibit "A-1"—2019-2020 Total Operating Budget
Exhibit "B"—Budget
Exhibit "C"—Reimbursement Schedule
Exhibit "D"—Audit Requirements
Exhibit"E" — Reimbursement Forms
Exhibit "F"—Documentation Standards
CHDO OPERATING FUNDS CONTRACT 2017-2018 Rev,10/18/2019
Housaig Channel, Page 31
EXHIBIT "A"
CHDO OPERATING EXPENSE SUMMARY
HOUSING CHANNEL
Capitalized terms not defined herein shall have meanings assigned to them in the Contract.
DESCRIPTION:
CHDO will provide affordable housing production services under the terms, conditions,
requirements and responsibilities of the Contract. City will make available up to $45,000.00 of
HOME CHDO Operating Funds for the sole purpose of assisting CHDO's efforts to develop and
maintain its staff and operational capacity. The HOME CHDO Operating Funds shall be used
for the reasonable and necessary administrative and operational costs for CHDO consistent with
24 CFR 92.208, and will be restricted to the items listed in Exhibit "B" — Budget. CHDO shall
secure competent staff and take the necessary steps to implement an affordable housing program
within the terms of the Construction Contracts and this Contract. By accepting HOME CHDO
Operating Funds, CHDO maintains that it currently has a contract with City for an eligible
CHDO set-aside project or that it will have a project commitment no later than 24 months from
the date of this Contract.
CHDO's FY 2019-2020 Operating Budget is attached as Exhibit "A-1" — FY 2019-2020 Total
Operating Budget.
SPECIFIC PURPOSE:
CHDO will use operating funds for the administrative and operational expenses necessary to
operate the CHDO.
PROGRAM GOALS:
Provide for administration and operating activities related to the production of affordable
housing for sale to low to moderate income households earning at or below 80% of AMI.
CHDO Operating Contract—Exhibits Rev.2/21/2020
Housing Channel Page 1
EXHIBIT 66A-1"
HOUSING CHANNEL
FY 2019-2020 TOTAL OPERATING BUDGET
GL Description Amount
4000 Program Income 13,500
4010 Other Earned Income 161,397
4030 Processing Fees 129,700
4040 Fundraising& Donations 10,000
4rn5n Banks& Foundations 60,000
4101 Operating Grants and 206,000
Government Contracts
4200 Developer Fees 352,926
4300 Real Estate Sales 750,000
4800 Management Fee Income 234,000
4650 Miscellaneous 692
TOTAL REVENUES $ 1,918,215
5000 Salaries 642,140
5010 Payroll Taxes- SS 43,023
5020 Payroll Taxes- MC 9,319
5030 Payroll Taxes- SUTA 5,814
5035 Matched Savings Plan 10,868
5040 Health Insurance 87,360
5050 Dental Insurance 5,000
5100 Contract Services 40,000
5200 Audit 27,500
522n Legal 5,000
5225 IT Services 15,000
5240 Dues &Memberships 8,000
526n Furniture and Equipment 5,000
5265 Equipment Rental 6,000
5270 Office Supplies 11,000
5280 Meeting Expense 6,000
5275 Workshop Supplies 5,000
53nn Telephone 6,500
5310 Postage &Courier 1,000
5450 Storage 24,000
5400 Rent 88,475
5415 Office Utilities 600
5230 Marketing 15,000
5330 Training 3,000
CHDO Operating Contract-Exhibits Rev,2/21/2020
Housing Channel Page 2
5350 Travel 8,000
5600 Interest 12,000
5430 Insurance 35,000
5460 Property Tax Expense 11,500
5435 Property Insurance 1,200
5820 Lawn Maintenance 1,800
4350 Cost of Sales(Contra) 710,000
5250 Credit Reports 5,750
5500 Miscellaneous 500
5465 Closing Costs 25,000
5470 Brokerfee 17,933
5475 Broker fee related party 17,933
5610 Bank Charges 1,000
TOTAL EXPENSES $ 1,918,215
REVENUES IN EXCESS OF $ 0
EXPENSES
Approved by the Board of Directors 9/11/19
CHDO Operating Contract—Exhibits Rev.2/21/2020
Housing Channel Page 3
EXHIBIT "B"
BUDGET
HOUSING CHANNEL
HOME CDBG HC TOTAL
CHDO Counseling Annual ANNUAL
Account Operating Grant Operating OPERATING
Funds Budget Budget BUDGET
Budget
PROGRAM PERSONNEL
Salaries 2001 87,600.00 554,540.00 642,140.00
FICA 2002
Life Insurance 2003
Health Insurance 2004
Unemployment 2005
Worker's Compensation 2006
Retirement 2007
FACILITY AND UTILITIES
Telecommunication Expenses,i.e., 5001
Telephone,Cell Phone,Internet
Electric P5005
02
Gas 03
Water and Wastewater 4
Solid Waste Disposal
Rent for Staff Offices(CHDO to 06 22,000.00 37,400.00 29,075.00 88,475.00
furnish City copy of current lease)
Rent for Storage of Construction
Materials(CHDO to furnish City copy 5007
of current lease)
Credit Report 5008
LEGAL, FINANCIAL,AND
INS URANC E
Insurance 6001 11,000.00 24,000.00 35,000.00
Contract Accounting/Audit 6002 12,000.00 15,500.00 27,500.00
Legal Assistance 6003
OTHER EXPENSES 1,1.25,100 1,125,100
TOTAL ANNUAL OPERATING 45,000.00 125,000.00 1,748,215.00 1,918,215
BUDGET
*Shaded cells are not eligible for reimbursement with HOME funds.
CHDO Operating Contract—Exhibits Rev.2/21/2020
Housing Channel Page 4
EXHIBIT "C"
REIMBURSEMENT SCHEDULE
HOUSING CHANNEL
Reimbursements will be made on a monthly basis in accordance with the schedule provided
below. Payments will be based on the line items in Exhibit "B" — Budget. CHDO must submit
Complete Documentation and Reimbursements Requests within 30 days of the end of the month
for which payment is requested. For example, the Reimbursement Request for payment for
October 2018 should be received by November 30, 2018, unless waived by City in writing. The
amounts listed below are estimates and may vary from month to month depending on the needs
of the CHDO.
Month Due Date Amount
October 2019 November 30, 2019
November 2019 December 31, 2019
December 2019 January 31. 2020 4,000
January 2020 February 28, 2020
February 2020 March 31, 2020
March 2020 April 30, 2020 6,000
April 2020 May 31, 2020
May 2020 June 30, 2020
June 2020 July 31, 2020 29,000
July 2020 August 31, 2020
August 2020 September 30, 2020
September 2020 October 31, 2020 6,000
TOTAL $45 000.00
In the alternative, CHDO may submit Reimbursement Requests, with City approval, which
include multiple quarters of expenses. CHDO may also, with City approval, submit
Reimbursement Requests more than 30 days from the deadlines shown above.
CHDO Operating Contract—Exhibits Rev.2/21/2020
Housing Channel Page 5
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 08/06/19 M&C FILE NUMBER: M&C 19-0016
LOG NAME: 19NS ACTION PLAN 2019-20
SUBJECT
Conduct Public Hearing and Approve the City's 2019-2020 Annual Action Plan for the Use of Federal Grant Funds in the Amount of
$12,280,561.00 to be Awarded by the U.S. Department of Housing and Urban Development from the Community Development Block Grant,
HOME Investment Partnerships Program, Emergency Solutions Grant,and Housing Opportunities for Persons with AIDS Programs;Authorize
Collection and Use of Program Income;Authorize Waiver of Application of Indirect Cost Rates;Approve Waiver of Certain Development Fees
Estimated at$200,000.00 for the Everly Plaza Apartments Located at 1801-1821 8th Avenue and 1808 Hurley Avenue;Authorize the Use of Fee
Waivers as HOME Match;Authorize Execution of Related Contracts;and Adopt Appropriation Ordinance(ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that City Council:
1. Conduct a public hearing to allow citizen input and consideration of the City's 2019-2020 Annual Action Plan for use of federal grant funds to
be awarded by the U.S. Department of Housing and Urban Development in the amount of$12,280,561.00 from the Community Development
Block Grant, HOME Investment Partnerships Program, Emergency Solutions Grant,and Housing Opportunities for Persons with AIDS
programs,and for the use of program income from activities using prior years'federal grant funds;
2. Approve the City's 2019-2020 Annual Action Plan for submission to the U.S.Department of Housing and Urban Development, including
allocations of grant funds to particular programs and activities as detailed below;
3. Authorize the collection and use of an estimated$150,000.00 of program income which resulted from activities using prior years'Community
Development Block Grant funds for the City's Priority Repair Program;
4. Authorize the collection and use of an estimated$75,000.00 of program income which resulted from activities using prior years' HOME
Investment Partnerships Program funds for the City's Homebuyer Assistance Program;
5. Authorize a waiver of indirect cost rates as applicable for grant funds, in accordance with the City's administrative regulations;
6. Approve the waiver of certain development fees estimated at$200,000.00 for Everiy Plaza Apartments located at 1801-1821 8th Avenue
and 1808 Hurley Avenue,find that the waiver of such fees serves to carry out the public purpose of providing quality,accessible,affordable
housing for low-and moderate-income households,and that adequate controls are in place to carry out such public purpose;
7. Authorize the use of the fee waivers approved for the development of Everiy Plaza Apartments as HOME match for the City's HOME
Investment Partnerships Program grant funds;
8. Authorize the City Manager or his designee to execute contracts for one-year terms with the agencies listed in Tables 1,2,and 3 below for
Program Year 2019-2020 for Community Development Block Grant, HOME Investment Partnerships Program, Emergency Solutions Grant,
and Housing Opportunities for Persons with AIDS grant funds,contingent upon receipt of funding and satisfactory completion of an
Environmental Review and all regulatory requirements;
9. Authorize the City Manager or his designee to extend contracts for up to one year if an agency or department requests an extension and
such extension is necessary for completion of the program,or to amend contracts if necessary to achieve program goals,provided any
amendment is within the scope of the program and complies with City policies and all applicable laws and regulations governing the use of
federal grant funds;and
10. Adopt the attached appropriation ordinance increasing the estimated receipts and appropriations to the grant fund in the total amount of
$12,280,561.00 consisting of$7,270,678.00 in Community Development Block Grant funds,$2,662,983.00 HOME Investment Partnerships
Program funds,$616,266.00 in Emergency Solutions Grant funds,and$1,505,634.00 in Housing Opportunities for Persons with AIDS funds,
plus any program income,all subject to receipt of such funds.
DISCUSSION:
The City's 2019-2020 Annual Action Plan summarizes the major housing and community development activities and proposed expenditures for
the program year beginning October 1,2019 and ending September 30,2020 for use of federal grant funds totaling$12,280,561.00 from the U.S.
Department of Housing and Urban Development(HUD)from the Community Development Block Grant(CDBG), HOME Investment Partnerships
Program (HOME), Emergency Solutions Grant(ESG), and Housing Opportunities for Persons with AIDS (HOPWA)grant programs. It also
summarizes the use of program income resulting from activities using prior years' CDBG and HOME funds,the primary purpose of which is to
benefit low-and moderate-income persons in Fort Worth. ESG funds primarily benefit homeless persons,and HOPWA funds primarily benefit low-
and moderate-income persons with HIV/AIDS.
Staff developed initial recommendations for the allocation of the estimated funding to the City from HUD based on a Request For Proposals and
continuation of existing housing and community development programs.A public hearing was held on May 15, 2019 to provide citizens the
opportunity to participate in the development of the Annual Action Plan. Recommendations for award amounts were considered and adopted by
the Community Development Council on May 15,2019.These funding recommendations were then presented to the Housing and Neighborhood
Services Committee on June 4,2019,and to the full City Council on June 11,2019.
A 30-day public comment period was held from July 1, 2019 to July 31, 2019. Notice of this public comment period was published in the Fort
Worth Star-Telegram, Wise County Messenger,and Hood County News on June 26, 2019; in La Vida News, Cleburne Times-Review, and
Weatherford Democrat on June 27,2019;in the Glen Rose Reporter on June 28,2019;and in La Estrella on June 29,2019.
Any comments received are maintained by the Neighborhood Services Department in accordance with federal regulations.The City holds two
public hearings as part of the HUD-required citizen participation process.The first public hearing was held by staff on July 10, 2019, and the
second public hearing is scheduled for the City Council meeting on August 6,2019.
A summary of final funding recommendations is provided below and in Tables 1, 2, and 3.A spreadsheet of funding recommendations is also
attached.The 2019-2020 Annual Action Plan must be submitted to HUD by August 15,2019.
A waiver of indirect costs is requested to maximize program benefits.The CDBG program provides for an estimated salary amount of$1.3 million.
The inclusion of indirect costs in the grant administration budgets would result in a reduction of staff and services. These indirect costs are
estimated to be$215,386.00.
COMMUNITY DEVELOPMENT BLOCK GRANT
For Program Year 2019-2020, it is recommended that the amount of$7,270,678.00 in CDBG funds and an estimated amount of$150,000.00 in
CDBG program income,for a total amount of$7,420,678.00, be allocated as follows:
• Public Services-$1,090,601.00: Includes social services for low-and moderate-income persons, persons with disabilities,and
disadvantaged persons
• Housing Programs-$2,862,785.00: Includes funding for the City's Priority Repair Program,Cowtown Brush-Up program, homebuyer and
housing services,accessibility modifications for seniors and persons with disabilities,and related project delivery costs for these programs
• Major Projects-$1,122,476.80: Includes funding for ADA-compliant accessibility improvements to bathrooms,entry ways,parking lots,and
other improvements that benefit City residents,particularly seniors and persons with disabilities,at the following facilities:Worth Heights
Community Center,3551 New York Avenue,76110;Southside Community Center,959 E. Rosedale Street,76104;and North Tri-Ethnic
Community Center,2950 Roosevelt Avenue,76106. Repairs at the Worth Heights Community Center will also include rehabilitation and
reconfiguration of an area previously used as a dental clinic into office space to be used by Community Action Partners staff.
• Economic Development-$740,680.20:City's annual payment of its Section 108 loan from HUD.The Section 108 is a HUD loan guarantee
program that enables CDBG grantees to borrow up to five times their annual entitlement grant.
• Administration-$1,454,135.00: Includes costs for administering the CDBG grant,including allocations for the City's Financial Management
Services and Planning and Development Departments
• Estimated Program Income-$150,000.00: Includes up to$150,000.00 in funding for the City's Priority Repair Program. CDBG program
income over the estimated amount which is not used for the Priority Repair Program will be allocated to priority activities in the City's
Consolidated Plan,subject to City Council approval.
HOME INVESTMENT PARTNERSHIPS PROGRAM
For Program Year 2019-2020,it is recommended that the amount of$2,662,983.00 in HOME funds and an estimated amount of$75,000.00
in HOME program income,for a total amount of$2,737,983.00 be allocated as follows:
• Homebuyer Assistance Program-$907,237.00: Includes funding for down payment and closing cost assistance for low-and moderate-
income homebuyers.
• Community Development Housing Organizations(CHDOs)-$399,448.00: HUD requires that a minimum of 15 percent of HOME funds be
allocated to CHDOs for affordable housing projects.These funds will be used by Development Corporation of Tarrant County for single family
infill development in the Ash Crescent neighborhood.
• Community Development Housing Organizations(CHDOs)Operating-$90,000.00:To support community-based affordable housing
development,the City is also authorized to fund CHDO administrative operating costs.One half of these funds will be awarded to Housing
Channel to support completion of the Riverside single family infill project,and one half of these funds will be awarded to Development
Corporation of Tarrant County to support completion of the Ash Crescent single family infill project.All housing supported with these funds will
be sold to homebuyers with incomes at or below 80 percent of area median income,as set annually by HUD
• New Construction of Rental Housing-$1,000,000.00: Represents gap financing for a portion of the costs associated with constructing Everly
Plaza,a new approximately 88-unit affordable senior multifamily rental housing complex to be located at 1801-1821 8th Avenue and 1808
Hurley Avenue.
The HOME program requires that 25%of HOME expenditures annually be matched by local in-kind or cash resources. The Everly Plaza project
will therefore incur a$250,000 match liability. Staff recommends the waiver of fees that are eligible for waiver under the Neighorhood
Empowerment Zone(NEZ)Basic Incentive Policy,estimated at$200,000.00. This will assist with closing the project's gap in financing and will
also assist the City's Match obligation under the HOME funds. Park fees are not waived and willl be fully payable.
The fees that would otherwise be charged by the City include:
• All building permit related fees,including plan review, inspection,and re-inspection fees;
• Plat and/or replat application fees;
• Board of Adjustment application fees;
• Demolition fees;
• Structure moving fees;
• Zoning application fees;
• Street,alley,and utility easement vacation application fees;
• Consent and/or encroachment agreement application fees;
• Urban forestry application fees;
• Sign permit fees;
• Community Facilities Agreement application fees;and
• Water and sewer impact fees.
• Administration-$266,298.00: Includes costs for administering the HOME grant.
• Estimated Program Income-$75,000.00: Includes funding for the Homebuyer Assistance Program and HOME grant administrative costs.
HUD allows the City 10 percent of any HOME program income to be used towards the cost of administering the HOME grant. HOME
program income over the estimated amount not used for the Homebuyer Assistance Program will be allocated to priority activities in the
City's Consolidated Plan,subject to City Council approval.
HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS
For Program Year 2019-2020,it is recommended that the amount of$1,505,634.00 in HOPWA funds be allocated as follows:
• Public Service Agencies-$857,499.00
• Neighborhood Services Department Community Action Partners(Tenant Based Rental Assistance;Supportive Services)-$602,966
• Administration-$45;169.00
EMERGENCY SOLUTIONS GRANT
For Program Year 2019-2020, it is recommended that the amount of$616,266.00 in ESG funds be allocated as follows:
• Public Service Agencies-$570,047.00
• Administration-$46,219.00
PUBLIC SERVICE AGENCY CONTRACT RECOMMENDATIONS
The Community Development Council and staff recommend that contracts be executed with the listed agencies for the amounts shown in the
following tables.
TABLE 1: CDBG AGENCIES
AGENCY PROGRAM AMOUNT
AB Christian Learning After School Tutoring $85,000.00
Center
AB Christian Learning Summer Reading Program $45,000.00
Center
Girls Incorporated of Youth Education,Prevention and $70,000.00
Tarrant County Leadership Program
Camp Fire First Texas After-School Program $45,000.00
Stop Six Church of Fort Worth Reads&Rights $45,000.00
Christ
United Community Educational Enrichment $70,000.00
Centers,Inc.
Arles de la Rosa Arles Academy $45,000.00
Goodwill Industries of Employment/Job Training $90,000.00
Fort Worth
Guardianship Services, Education to Prevent Financial $70,000.00
Inc. Exploitation of Elderly
Housing Channel Homebuyer Education and Housing $125,000.00
Counseling Services
The Ladder Alliance Employment/Job Training $70,000.00
Meals on Wheels, Inc.of Home-Delivered Meals $70,000.00
Greater Tarrant County
The Presbyterian Night
Shelter of Tarrant Case Management for Homeless $145,601.00
County,Inc.
Sixty and Better, Inc. Transportation for Seniors $115,000.00
TOTAL CDBG
CONTRACTS $1,090,601.00
TABLE 2: HOPWA AGENCIES
AGENCY PROGRAM AMOUNT
Supportive Services, Facility-Based
Tarrant County Samaritan Housing Operations,Tenant-Based $671,499.00
Housing, Inc. Rental Assistance TBRA,
Administration
AIDS Outreach Center, Short Term Rent Mortgage and Utility
Inc. Assistance,Supportive Services, $186,000.00
Administration
TOTAL HOPWA
CONTRACTS $857,499.0
TABLE 3: ESG AGENCIES
AGENCY PROGRAM AMOUNT
The Presbyterian Night
Shelter of Tarrant County, Shelter Operations/Services $145,000.00
Inc.
Lighthouse for the Shelter Operations/Services $125,000.00
Homeless
The Salvation Army Homelessness Prevention $125,047.00
Center for Transforming Rapid Re-Housing $100,000.00
Lives
SafeHaven of Tarrant Shelter Operations/Services $75,000.00
County
TOTAL ESG
CONTRACTS $570,047.00
All figures have been rounded to the nearest dollar for presentation purposes.
These programs are available in ALL COUNCIL DISTRICTS.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations,adoption of the attached appropriation ordinance and receipt
of grant funds, funds will be available in the current operating budget, as appropriated, of the Grants Operating Federal Fund. These are
reimbursement grants.The Neighborhood Services Department has the responsibility to validate the availability of funds prior to an expenditure
being made.
Submitted for City Manager's Office by. Fernando Costa 6122
Originating Business Unit Head: Sonia Singleton 5774
Additional Information Contact: Barbara Asbury 7331
Sharon Burkley 5785