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HomeMy WebLinkAboutContract 41395CITY SECRETARY CONTRACT NCB. _4 1 January 26, 2011 Neighborhood Land Corporation 3345 South Jones Street Fort Worth, Texas 76110 - 4312 Attention: Gage Yager, President Reference: Neighborhood Land Corporation Single -Family Infill Homes Dear Mr. Yager: We are pleased to present for your review the following terms, conditions, and requirements based on the application of Neighborhood Land Corporation (NLC) for a grant of HOME Investment Partnerships Program Grant funds for operating expenses in an amount not to exceed $50,000.00 from the City of Fort Worth (City), subject to the following terms and conditions: GRANTEE Neighborhood Land Corporation GRANTOR City of Fort Worth ("City") AMOUNT $50,000 for CHDO operating expenses, as defined under 24 CFR 92.208. USE City will provide a list of eligible expenses for CHDO operating funds. TERM Term of the contract and grant is twelve (12) months, with cone -year extension upon request. PAYMENT/ CHDO operating expenses will be provided to NLC on a reimbursement REPAYMENT basis only. City will disburse funds upon receipt of satisfactory documentation of eligible expenses. In the event any expense is determined to have been an ineligible expense, the amount of the ineligible expenses must be reimbursed to City. CONDITIONS TO i. This letter constitutes a conditional commitment of funds. GRANT FUNDING ii. Condition of loan based on City Council approval to award HOME funds to NLC and receipt of HOME funds from HUD for the Project. ills NLC must enter into a contract with City gov_ernjR" a usg Housing and Economic Development Department UFFICIAL GZEC®R® The City of Fort Worth * 1000 Throckmorton Street *Fort Worth, Texa 7�Fr�d2i(r s���Er��i� 817-392-7520 * Fax 817-392-2013 11 UVORTH9 YX of the HOME funds for operating expenses. iv. The required contract and documentation for reimbursement must be acceptable in all respects to the City and its counsel. COMPLIANCE WITH i. NLC agrees that as a certified Community Housing Development FEDERAL, STATE, Organization, they will comply with 24 CFR 92.300 and 92.301 a AND LOCAL LAWS ii. NLC must remain in compliance with the requirements of any City agreements for use of HOME Funds for specific projects for operating expense funding to continue. iii. NLC certifies that it is not currently listed on the General Services Administration's List of Parties Excluded from Federal Procurement or Non -procurement Programs in accordance with Executive Orders 12549 and 12689 and will not enter into agreements to expend Federal Funds with contractors that are currently listed. iv. NLC must comply with all prescribed procedures regarding nondiscrimination and equal opportunity, affirmative marketing, displacement and relocation, labor relations, lead -based paint and conflict of interest provisions described in 24 CFR 92 subpart H and 24 CFR 92.504. v. Organizations that are directly funded under the HOME program may not engage in inherently religious activities as defined under 24 CFR 9282570 via NLC must comply with all applicable Federal laws, laws of the State of Texas and ordinances of the City of Fort Worth. o Vila NLC must agree to any terms and conditions as necessary in order to ensure compliance with all federal regulations, state laws, and local ordinances. INSURANCE NLC must maintain and present to the City on a semi-annual basis, a REQUIREMENTS General Liability Insurance in the amount of $500,000 each occurrence, $1,000,000 aggregate limit. NLC is to maintain and present to the City on asemi-annual basis, a Business Automobile Liability Insurance as follows: $1,000,000 each accident on combined single -limit basis, or $250,000 Property Damage $500,000 Bodily Injury per person per occurrence $2,000,000 Aggregate NLC to maintain, and present to the City on asemi-annual basis, Workers' Compensation insurance as follows: Statutory Limits Employers Liability $100,000 each accident/occurrence $100,000 disease/per employee $500,000 disease policy limit AUDITS City will conduct annual audits to ensure compliance with contracts and federal, state, and local laws. NLC will maintain records according to the recordkeeping requirements outlined below. i. NLC must maintain records that will provide accurate, current, RECORDKEEPING separate, and complete disclosure of the status of the funds received pursuant to this Agreement and pursuant to any other applicable Federal and/or State regulations establishing standards for financial management. ii. Upon receipt of reasonable written notice by the City and as often as City may deem necessary, NLC will make available to the City all of its records and will permit City to conduct audits of all contracts, invoices, materials, payrolls, records of personnel, conditions or employment and all other data relating to the stated Use. iii. NLC will provide quarterly financial and beneficiary reports that will contain such records, data and information as City may request pertinent to matters covered by this Agreement. Reports will be due to the Housing and Economic Development department within 45 days of the end of the quarter. Required report format/template and /or instructions to be provided by the City. NLC will provide any additional information as requested by the City within 10 days of date of receipt of written request. CLOSING COSTS The Grant is to be closed at no cost to the City. Borrower shall be responsible for all costs associated with this transaction, including title insurance, attorney fees, filing fees, closing costs, etc. In order for this Conditional Commitment to remain effective, an original ACCEPTANCE must be executed by Grantee and returned to the City on or before July 23, 2011. Any extension of such time for acceptance must be in writing and signed by a City representative. These terms can be modified or other terms negotiated between the parties upon mutual written agreement. EXPIRATION To cause this Conditional Commitment to remain in effect, the Contract between NLC and the City must be executed on or before August 31, 2011. Any extension of such date must be in writing and signed by the City. Any funds disbursed against this Conditional Commitment will be subject to the City's receipt of satisfactory documentation of the Grant and due diligence satisfaction. Should additional facts become known to either party, this Conditional Commitment may be terminated by either party upon written notice to the other party. This Commitment is confidential and is intended solely for the use of NLC. No other person or parties has any rights whatsoever with respect to the above terms and conditions. In the event of a conflict between any of the terms or conditions presented in this commitment and the subsequent contract, the terms and conditions presented in the contract would supersede those presented in this commitment. We hope the foregoing is responsive to your needs and tf• your acceptance with your signature below and by returni City of Fort Worth Housing and Economic Development Department 1000 Throckmorton Fort Worth, TX 76102 Attn: Fabiola Suarez, Economic Development Specialist Sincerely, Susa .Ala is Assistar�City Manager App oved as t14 g�for% and legality: 1. Lp'gWduzman Assistant City Attorney Date: 1 1 I Date: The undersigned hereby accepts the foregoing Commitment and the terms and requirements herein set for and agrees to be bound thereby. GRANTEE Neighborhood Land Corporation Signed: Date: v' I Ga e Yak r President, Nei borh od Land Corporation Contract Authorization IJas)�� Date City of Fort Worth, Texas Mayor and council U COUNCIL ACTION: Approved on 1/25/2011 unication DATE: Tuesday, January 25, 2011 REFERENCE NO.: C-24712 LOG NAME. 17NLCCHDO7 SUB.TECT: Authorize a Change in Use and Expenditure of Up to $470,000.00 of HOME Investment Partnerships Program Grant Funds to the Neighborhood Land Corporation for the Development of Up to Seven Single Family Houses, Authorize the Execution of a Conditional Commitment and Contract and Authorize a Substantial Amendment to the City's 2007-2008, 2008-2009, 2009-2010 and 2010-2011 Action Plans (COUNCIL DISTRICTS 5 & 7) RECOMMENDATION: It is recommended that the City Council. 1. Authorize a Substantial Amendment to the City's 2007-2008, 2008-2009, 2009-2010 and 2010-2011 Action Plans; 2. Authorize the City Manager, or his designee, to substitute funding years in order to meet commitment, disbursement and expenditure deadlines for grant funds from the United States Department of Housing and Urban Development; 3. Authorize a change in use and expenditure of up to $470,000.Of) in prior year's HOME Investment Partnerships Program Grant funds to the Neighborhood all Corporation, a certified Community Housing Development Organization, for the development of up to seven single family houses located at scattered sites throughout the City of Fort Worth; 4. Authorize the City Manager, or his designee, to execute a conditional commitment with the Neighborhood Land Corporation that conditions funding, among other things, on satisfactory completion of HOME requirements; 5. Authorize the City Manager, or his designee, to execute a Contract with the Neighborhood Land Corporation for the project for a two year term beginning on the date of execution of the Contract; 6. Authorize the City Manager, or his designee, to extend or renew the conditional commitment or the Contract if the Neighborhood Land Corporation requests a written extension and such extension is necessary for completion of the project; and 7. Authorize the City Manager, or his designee, to amend the conditional commitment or the Contract if necessary to achieve project goals provided that the amendment is within the scope of the project and in compliance with City policies and applicable laws and regulations governing the use of federal grant funds. DISCUSSION: On October 14, 2010, the City issued a Request for Proposals (RFP) for certified Community Housing Development Organizations (CHDO) to award and expend up to $1,261,931.00 of HOME Investment Partnerships Program Grant funds. The HOME funds available under the RFP were originally allocated to other projects that were not completed either because of lack of private funding, environmental issues or market condition. On November 18, 2010, the Neighborhood Land Corporation (NLC) submitted responses requesting $470,000.00 of the available HOME funds for the development of up to seven single family houses on scattered sites throughout the City of Fort Worth. The request also included funds for related CHDO operating expenses. City staff reviewed all RFP submissions and recommended the award to NLC of $470,000.00 in HOME funds to the Community Development Council (CDC) at its meeting held on December 1, 2010. The CDC agreed with staffs funding recommendation for the project. Up to $50,000.00 of the awarded funds will be used for operating expenses and $420,000.00 for construction and other development expenses. NLC, an affiliate of Trinity Habitat for Humanity, has secured corporate and individual donations to cover the remainder of the project costs. NLC plans to develop seven single family houses to be located at scattered sites throughout the City that will be, at a minimum, 1,153 square feet with three bedrooms, two baths and a one car garage. The houses will be sold to an individual or a family that earns at or below 80 percent of the Area Median Income as determined by the United States Department of Housing and Urban Development (HUD). Buyers must meet all HOME program requirements including applying for and receiving at least $1,000.00 in down payment and/or closing cost assistance from the City's Homebuyer Assistance Program and occupying the house as their primary residence for five years. ;$'recommends the followinP Contract terms: i. Construction must begin within six months of date of contract execution; ii. NLC's performance under the Contract and use of the HOME funds will be secured by a recorded Deed of Trust; iii. House must be sold to a HOME eligible buyer, and iv. Proceeds from the sale of the house to be used to construct additional houses for a HOME eligible buyer and construction of Proceed houses must occur within the two year contract term. i. Satisfactory completion of the environmental review per 24 CFR Part 58; and Authorization to use grant funds from HUD. City staff recommends the change in use and expenditure of up to $470,000.00 in HOME funds for the project to benefit low and very low income citizens by providing affordable housing. A public comment period on the change in use of these HOME funds was held from December 16, 2010 to January 20, 2011. Any comments are maintained by the Housing and Economic Development Department in accordance with federal regulations. This project is located in COUNCIL DISTRICTS 5 & 7. FISCAL INFORMATION: The Financial Management Services Director certifies that funds are available in the current operating budget, as appropriated, of the Grants Fund. FUND CENTERS: TO Fund/Account/ ' • C• i 11 !1•/� 539120 017206461XXX '1 111 11 � . • 1 11 1. 1 1 ' • • 1 1 is 1 1 •111 ' • • 0XIIIIINW11• 1 1 61152168 GR76 539120 1 1•4• 141 x"galumm1 3riginating Department &XILIMUITLI__U ATTACHMENTS 1. Available Funds 17NLCCHD07# Susan Alanis (8180) Jay Chapa (5804) Cynthia Garcia (8187) Fabiola Suarez (6811)