HomeMy WebLinkAboutContract 40727CITY SECRETARY
CtNTRACT NO.
AGREEMENT WITH FORT WORTH HOUSING AUTHORITY CONCERNING THE
FORT WORTH HOUSING AUTHORITY HOMEOWNERSHIP PROGRAMS
This Agreement (Agreement") concerning the Fort Worth Housing Authority
Homeownership Programs is between the City of Fort Worth ("Fort Worth"), a home rule
municipal corporation organized under the laws of the State of Texas, acting by and through its
duly authorized Assistant City Manager, and the Housing Authority of the City of Fort Worth,
d/b/a/ the Fort Worth Housing Authority ("FWHA"), a Texas municipal housing authority, acting
by and through its duly authorized Executive Director. (Sometimes Fort Worth and FWHA are
referred to individually as a "Party" and collectively as the "Parties").
RECITALS
Fort Worth and FWHA agree that the following statements are true and correct and constitute the
basis on which they have entered into this Agreement.
WHEREAS, Section 555 of the Quality Housing and Work Responsibility Act of 1998
("QHWRA") which amended the United States Housing Act of 1937, 42 U.S.C. 1437f(y)
permits the FWHA to create a homeownership option for Section 8 Housing Choice Voucher
("HCV") recipients;
WHEREAS, FWHA has created the Housing Choice Voucher Homeownership Program
("HCVHP") to convert certain eligible HCV recipients into homeowners;
WHEREAS, Section 32 of the United States Housing Act of 1937 ,as amended (42
U.S.C. 1437 et seq.) permits FWHA to develop a homeownership plan to sell its Public Housing
Scattered Sites rental properties ("Scattered Site Program");
WHEREAS, FWHA has developed a Section 32 Homeownership Plan to promote
homeownership for qualified buyers ("Section 32 Program");
WHEREAS, the HCVHP and Section 32 Program (collectively, the "FWHAHP")
require applicant families to attend and satisfactorily complete a pre -assistance homeownership
training and housing counseling program;
WHEREAS, Fort Worth offers homeownership training, pre -purchase and post -closing
housing counseling and homebuyers' assistance programs which provide the types of service
needed to fulfill the requirements of the HCVHP and Section 32 Program for pre -assistance
counseling, including but not limited to assistance in outreach and marketing of the HCVHP and
Section 32 Program to HCV recipients and clients participating in the Section 32 Program, client
assessment, credit counseling, financial literacy counseling, homeownership training,
participation in the Home Buyers Club, post -closing counseling, lender training, real estate agent
training and down payment and/or closing cost assistance -for first time homebuyers;
WHEREAS, an Applicant is defined as a person who is currently receiving rental
assistance through the HCV program and has. __expressed an interest in participating in the
HCVHP, or person who ha ; beee ast by the FWHA to participate in the Section 32
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FORT WORTH HOUSING AUTHORITY HOMEOWNERSHIP PROGRAM AGREEMENT
2010-2011
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WHEREAS, an Eligible Family is defined as an Applicant who has met the eligibility
requirements for the HCVHP or the Section 32 Program, completed all required counseling
services and received FWHA approval to pursue homeownership with the HCV or the Section 32
Program,
WHEREAS, FWHA Housing Assistance Payment (' HAP") is defined as the lesser of 1)
the payment standard minus the total tenant payment, or 2) the family's monthly homeownership
expenses minus the total tenant payment as determined by FWHA and only applies to the
HCVHP;
WHEREAS, increasing homeownership and providing affordable housing for all income
groups are among Fort Worth's housing policy goals and are affirmed in Fort Worth's
Comprehensive and Consolidated Plans.
NOW THEREFORE, the Parties agree as follows:
1. PURPOSE AND SCOPE.
The purpose of this Agreement is to set forth the terms and conditions under which Fort
Worth will provide FWHA with housing counseling and homebuyer assistance to Applicants and
Eligible Families and related services to the FWHA.
2. TERM.
This Agreement shall commence on May 11, 2010 and will expire May 10, 2011 unless
terminated earlier in accordance with this Agreement The Parties may renew this Agreement
for up to twelve (12) months by mutual written agreement The Parties shall execute such
renewals no later than thirty (30) days prior to the expiration of the current term. In addition to
termination foi default pursuant to Section 5, either Party may terminate this Agreement without
cause upon sixty (60) days' written notice to the other Party, and neither Party shall have any
further responsibility or liability hereunder except for services previously rendered and payment
for the same.
3. DUTIES OF THE PARTIES AND SERVICES PROVIDED.
3.1. FWHA and Fort Worth will:
a. Identify, recruit and establish a pool of mortgage lenders and real estate
agents participating in the FWHAHP
b. Maintain a marketing and training plan for mortgage lenders and real
estate agents.
c. Conduct orientation sessions with Applicants.
3.2 FWHA will:
a. Administer the HCVHP and Section 32 Program.
b. Develop and implement a marketing plan for HCV recipients, including
FWHA's Family Self -Sufficiency (' FSS ') clients
c. Revise written materials about the HCVHP and Section 32 Program as
FORT WORTH HOUSING AUTHORITY HOMEOWNERSHIP PROGRAM AGREEMENT
2010-2011
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needed.
d. Determine each HCV recipient's eligibility to apply for HCVHP in
accordance with FWHA's HCVHP Administrative Plan and each
individual or family's eligibility to apply for the Section 32 Program in
accordance with FWHA's Section 32 Implementation Agreement.
e. Refer Applicants to Fort Worth for pre -homeownership counseling.
f. Establish a Homebuyers Club for Applicants categorized as Long Term
lender -ready. Conduct quarterly meetings of the Homebuyers Club.
g. Issue HCVHP Certification of Eligibility and FWHA HAP voucher to an
Applicant after completion of pre -homeownership counseling and after an
Applicant is deemed lender —ready. Upon receipt of the HCVHP
Certification of Eligibility and FWHA HAP voucher, an Applicant shall
be deemed to be an Eligible Family.
h. Review the sales contract for the house to be acquired by an hligible
Family.
Make FWHA HAP payments in the manner prescribed by a mortgage
lender either directly to an Eligible Family, directly to a mortgage lender,
or to a financial institution on which payments are drafted by a mortgage
lender.
j. Provide Fort Worth the following:
• A copy of the relevant FWHA policies and procedures currently in
place regarding the HCVHP and Section 32 Program and all future
updates of such policies and procedures.
• A copy of the current U.S Department of Housing and Urban
Development ("HUD) regulations pertaining to the HCVHP, as
amended from time to time, including but not limited to those
regulations found at 24 C.F.R 982.1 et seq.
• A copy of the FWHA Administrative Plan for participation in the
HCVHP,
• A copy of all applicable federal regulations pertaining to the
Section 32 Program.
• A copy of the Implementation Agreement for the Section 32
Program.
• A list of Applicants who are current FSS participants and the
current balance of the participants' escrow accounts.
k. For Section 32 Program Applicants:
• Provide an assessment of each Applicant's qualification for the
Section 32 Program based on credit worthiness, employment,
income history and any compensating factors. Applicants will be
categorized as follows:
• Fast Track - lender ready
• Short Term- lender ready in six (6) months or less
• Long Term - lender -ready in more than six (6) months
• Provide a copy of the assessment, including category designation,
to City and Applicants.
• Provide City and each Eligible Family's mortgage lender with a
copy of the final sales contract entered into with a seller.
FORT WORTH HOUSING AUTHORITY HOMEOWNERSHIP PROGRAM AGREEMENT
2010-2011
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Rev. 8-5-10
3.3. Fort Worth will:
For HCVHP Clients
a. Obtain credit reports for Applicants at the Applicant's or FWHA's cost, as
the case may be
b. Provide FWHA a copy of Fort Worth's Steps to Homeownership as
amended from time to time.
c. Provide each Applicant with an initial counseling session within two (2)
weeks after an orientation session that describes the counseling process
and the schedule of all necessary appointments.
d. Provide an assessment of each Applicant's qualification for the HCVHP
based on credit worthiness, employment, income history and any
compensating factors. Applicants will be categorized as follows:
• Fast Track - lender ready
• Short Term- lender ready in six (6) months or less
• Long Term - lender -ready in more than six (6) months
e. Provide a copy of the assessment, including category designation, to
FWHA and Applicants.
f. Provide each Applicant categorized as Fast Track or Short Term with 20-
25 hours of pre -homeownership individual counseling, including an action
plan, and homeownership, training. Training/counseling shall include the
following activities/topics:
• Credit counseling.
• How to find a house to purchase, including information about
home ownership opportunities, schools, and pubhc transportation
in the City of Fort Worth.
• Information on fair housing laws and regulations, including local
fair housing agencies.
• How to negotiate a purchase of a house.
• Information about the Real Estate Settlement Procedures Act, state
and federal truth -in -lending laws, and how to identify and avoid
loans with unfavorable and predatory terms and conditions.
• How to obtain homeownership financing and mortgage loan pre -
approvals, including a description of types of financing that may
be available and the advantages and disadvantages of different
types of financing.
• House maintenance (including care of the landscaping and energy.
conservation).
• Budgeting and money management
• Financial literacy in conjunction with the FSS program.
• FWHAP or other similar programs offered by other agencies.
• Other information deemed appropriate by FWHA and Fort Worth.
g. Refer Applicants categorized as Long Term to the Homebuyers Club.
h. Conduct sessions for the Home Buyers Club.
Obtain from the Applicant a Mutual Dissolution Letter and/or any other
documentation from Applicant's landlord approving termination of
Applicant's lease and furnish same to FWHA
FORT WORTH HOUSING AUTHORITY HOMEOWNERSHIP PROGRAM AGREEMENT
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j. Determine Applicant's readiness to apply for a mortgage loan.
k. Certify Applicant's completion of pre -homeownership counseling and
training. Submit a copy of certification to FWHA
1. Work with each Eligible Family in the selection of a mortgage lender and
assist the Eligible Family in providing supporting documents requested by
the mortgage lender.
m. Work with each Eligible Family and its mortgage lender in resolving any
credit issues.
n. Assist Eligible Families in the selection of a real estate agent and in sales
contract negotiations. Review sales contract with the Eligible Family.
o. Provide FWHA and each Eligible Family's mortgage lender with a copy of
the final sales contract entered into with a seller.
p. Complete an HQS inspection for Eligible Families receiving closing cost
and down payment assistance through FWHAP and counsel Eligible
Families on HQS inspector's findings.
q. Assist Eligible Families in the selection of a licensed residential real estate
inspector and review the real estate inspector's findings with the Eligible
Families.
r. Provide continued assistance to Eligible Families through closing.
s. Provide supporting documents for FWHA HAP payments to mortgage
lenders.
t. Review Eligible Family's closing documents for accuracy to ensure that
any down payment and other requirements have been met 'and appropriate
financing and information have been utilized by the mortgage lenders.
u. Provide City HAP to Eligible Families if they qualify under City HAP
guidelines.
v. Attend closing with Eligible Families, if requested by the Eligible
Families.
w. Provide copies of counseling and loan closing files to FWHA.
x. Conduct quarterly post -purchase counseling with Eligible Families for one
(1) year after loan closing
y. Provide delinquency or foreclosure prevention counseling to Eligible
Families as needed.
z. Provide FWHA with monthly reports on the activities of all Applicants
and Eligible Families.
For Section 32 Program Clients
a. Obtain credit reports for Applicants at the Applicant's or FWHA's cost, as
the case may be
b. Provide each Applicant categorized as Fast Track or Short Term with 1 - 2
hours of pre -homeownership individual counseling, including an action
plan, and 8 hours of homeownership, training. Training/counseling shall
include the following activities/topics:
Credit counseling.
How to find a house to purchase, including information about
home ownership opportunities, schools, and public transportation
in the City of Fort Worth.
Information on fair housing laws and regulations, including local
FORT WORTH HOUSING AUTHORITY HOMEOWNERSHIP PROGRAM AGREEMENT
2010-2011
PAGE 5
Rev. 8-5-10
fair housing agencies.
• How to negotiate a purchase of a house.
• Information about the Real Estate Settlement Procedures Act, state
and federal truth -in -lending laws, and how to identify and avoid
loans with unfavorable and predatory terms and conditions.
• How to obtain homeownership financing and mortgage loan pre -
approvals, including a description of types of financing that may
be available and the advantages and disadvantages of different
types of financing.
• House maintenance (including care of the landscaping and energy
conservation).
• Budgeting and money management.
• Financial literacy in conjunction with the FSS program.
• City HAP or other similar programs offered by other agencies.
• Othei information deemed appropriate by FWHA and Fort Worth.
c. Refer Applicants categorized as Long Term to the Homebuyers Club.
d. Conduct sessions for the Home Buyers Club.
e. Certify Applicant's completion of pre -homeownership counseling and
training. Submit a copy of certification to FWHA.
f. Work with each Eligible Family in the selection of a mortgage lender and
assist the Eligible Family in providing supporting documents requested by
the mortgage lender.
g. Work with each Eligible Family and its mortgage lender in resolving any
credit issues.
h. Provide City HAP to Eligible Families if they qualify under City HAP
guidelines.
i. Complete an HQS inspection for Eligible Families receiving closing cost
and down payment assistance through City HAP and counsel Eligible
Families on HQS inspector's findings
j. Conduct quarterly post -purchase counseling with Eligible Families for one
(1) year after loan closing.
k. Provide delinquency or foreclosure prevention counseling to Eligible
Families as needed.
1. Conduct orientation and provide counseling services to individuals and
families participating in the Section 32 Program.
4. CONSIDERATION.
FWHA agrees to provide a grant up to, but not to exceed, $80,000 00 to Fort Worth and
Fort Worth agrees to provide services to FWHA valued up to $80,000.00 for the costs of the
operation of the pre -assistance and post -closing homeownership and housing counseling program
for the FWHAHP
FWHA shall pay its portion of the costs to Fort Worth, as follows $20,000.00 on May
31, 2010; $20,000.00 on August 31, 2010; $20,000.00 on November 30, 2010 and $20,000.00 on
February 28, 2011.
During any renewals of this Agreement, FWHA shall provide Fort Worth with funds in
accordance with the terms of any such renewal agreement.
FORT WORTH HOUSING AUTHORITY HOMEOWNERSHIP PROGRAM AGREEMENT
2010-2011
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Rev. 8-5-10
5. DEFAULT.
If either FWHA or Fort Worth fails, for any reason, to perform any provision or condition
of this Agreement, this Agreement may be terminated if the default continues for a period of
thirty (30) days after the notifying Party notifies the defaulting Party in writing of the default and
its intention to declare this Agreement terminated for cause. If the defaulting Party does not cure
or correct such breach within the thirty (30) day -period, the notifying Party shall have the right to
declare this Agreement immediately terminated, and neither Party shall have any further
responsibility or liability hereunder except for services previously rendered and payment for the
same.
6. GENERAL PROVISIONS.
6.1 Request for Information. FWHA and Fort Worth agree to provide each other
any information on Applicants and Eligible Families within two (2) business days
of the request.
6.2. No Waiver. The failure of either Party to insist upon the performance of any
provision or condition of this Agreement or to exercise any right granted herein
shall not constitute a waiver of that Party s right to insist upon appropriate
performance or to assert any, such right on any future occasion.
6.3. Separability. If any provision of this Agreement is held by a court of competent
jurisdiction to be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired.
6.4. Force Majeure. The Parties shall exercise their best efforts to meet their
respective duties and obligations hereunder, but shall not be held liable for any
delay in or omission of performance due to force majeure or other causes beyond
their reasonable control including, but not limited to, compliance with any state
or federal law or regulation, acts of God, fires, strikes lockouts, national disasters,
wars, riots, material or labor restrictions, transportation problems or existing
contractual obligations directly related to the subject matter of this Agreement.
6.5 Venue and Jurisdiction. This Agreement shall be construed in accordance with
the laws of the State of Texas. Venue for any action brought on the basis of this
Agreement shall lie exclusively in state courts located in Tarrant County, Texas.
In any such action, the prevailing party shall recover from the other all reasonable
attorneys' fees, court costs and other reasonable expenses incurred as a result of
the action.
6.6 Entirety of Agreement. This Agreement, including all Exhibits attached hereto
and any documents incorporated herein by reference contains the entire
understanding and agreement between Fort Worth and FWHA as to the work and
services to be performed. Any prior or contemporaneous oral or written
agreement is hereby declared null and void to the extent in conflict with the
provisions of this Agreement.
FORT WORTH HOUSING AUTHORITY HOMEOWNERSHIP PROGRAM AGREEMENT
2010-2011
PAGE 7
Rev. 8-5-10
CITY SECRET
CO� iCT NO.
6.7 Compliance with Laws, Ordinances Rules and Regulations. This Agreement
is subject to all applicable federal, state and local laws, ordinances, rules and
regulations, including but not limited to all provisions of Fort Worth's charter.
6.8 Independent Contractors. Fort Worth shall operate hereunder as an independent
contractor and not as an officer agent, servant or employee of FWHA. FWHA
shall operate hereunder as an independent contractor and not as an officer, agent,
servant, or employee of Fort Worth. Fort Worth shall have the exclusive control
of, and the exclusive right to control the work designated to be performed by Fort
Worth under the terms of this Agreement, and of all persons performing the same
and shall be solely responsible for the acts and omissions of its officers, members,
agents and employees Neither Fort Worth nor FWHA shall be responsible under
the Doctrine of Respondent Superior for the acts or omissions of its officers,
members, agents, employees or officers of the other. No partnership or joint
venture is intended or formed between Fort Worth and FWHA by this Agreement.
6.9 Immunity and Third Parties. It is expressly agreed that, in the execution and
performance of this Agreement, neither Fort Worth nor FWHA waives, nor shall
be deemed to -waive, any immunity or defense that would otherwise be available
to it against claims arising in the exercise of their respective powers and
functions Nothing in this Agreement shall be construed to benefit any third party
other than an employee or officer of Fort Worth or FWHA while in the
performance of this Agreement. This Agreement may not be construed to expand
the liability of Fort Worth or FWHA beyond the scope of Chapter 101 of the
Texas Civil Practice and Remedies Code, Vernon's Texas Codes Annotated unless
specifically stated herein
6.10 Amendment. No amendment, modification or alteration of this Agreement shall
be binding unless the same is in writing, dated subsequent to the date hereof and
executed by the Parties.
7. Notices.
All notices required by this Agreement shall be addressed to the Parties at the following
address, or at such other address as either Party designates in writing, by certified mail, postage
prepaid or hand delivery:
Fort Worth: Cynthia Garcia, Assistant Director
Fort Worth Housing and Economic Development Department
1000 Throckmorton St.
Fort Worth, TX 76102
FWHA• Barbara Holston, President and CEO
Fort Worth Housing Authority
1201 E 136 Street
Fort Worth, TX 76102
[SIGNATURES APPEAR ON NEXT PAGE.]
FORT WORTH HOUSING AUTHORITY HOMEOWNERSHIP PROGRAM AGREEMENT
2010-2011
PAGE 8
Rev. 8-5-10
EXECUTED in multiple originals as of the last date indicated below:
CITY OF FORT WORTH
By:
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'•T.H. Higgins
Assistant City Manager
Date:
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By:
M & C: C-24260
Date: June 15, 2010
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Marty Hendri ' City Seer
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FORT WORTH HOUSING AUTHORITY:
By:
Barbara Holston
President and CEO
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*Vice -President of Assisted Housing
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Vicki S. Ganske
Senior Assistant City Attorney
OFFICIAL RED(
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CITYSECRETARY
FT. WORTH TX
FORT WORTH HOUSING AUTHORITY HOMEOWNERSHIP PROGRAM AGREEMENT
2010-2011
PAGE 9
Rev. 8-5-10
City of Fort Worth, Texas
Mayor and Council Communication
DATE: Tuesday, June 15, 2010
LOG NAME: 17FWHA2010
SUBJECT:
Accept a Grant from the Fort Worth Housing Authority for $80,000.00 to Provide Housing Counseling and
Homeownership Training and Related Services, Authorize Execution of Contract and Adopt Appropriation
Ordinance (ALL COUNCIL DISTRICTS)
REFERENCE NO.: **C-24260
RECOMMENDATION.
It is recommended that the City Council.
1. Authorize the City Manager to accept a grant of $80,000.00 from the Fort Worth Housing Authority to
provide housing counseling and homeownership training and related services to participants in its Housing
Choice Voucher Homeownership Program,
2. Authorize the City Manager or his designee to enter into a contract with the Fort Worth Housing
Authority for $80,000.00 to provide services to participants in the Housing Choice Voucher
Homeownership Program for a term beginning May 11, 2010 and ending May 10, 2011,
3. Authorize the City Manager or his designee to amend, extend, or renew the contract in accordance
with City policies and regulations upon mutual agreement with the Fort Worth Housing Authority if
necessary to meet project goals; and
4. Authorize the attached appropriation ordinance increasing the estimated receipts and appropriations in
the Grants Fund by $80,000.00.
DISCUSSION:
The Fort Worth Housing Authority (FWHA) is authorized by the United States Department of Housing and
Urban Development (HUD) to create a homeownership option for Section 8 Housing Choice Voucher
recipients under Section 555 of the Quality Housing and Work Responsibility Act. Under the Housing
Choice Voucher Homeownership Program (HCVHP), Section 8 Housing Vouchers may be used to help
first-time homebuyers meet monthly mortgage and related housing payments and utility expenses.
Housing counseling and homeownership and post -purchase training are critical elements of the HCVHP.
The City's Housing and Economic Development Department is a HUD -certified counseling agency and
has received other housing counseling grants from HUD in the last six years. This year the City received
a $40,976.00 Comprehensive Housing Counseling grant from HUD. The Housing and Economic
Development Department also administers a Homebuyers' Assistance Program that provides forgivable
loans for closing cost/down payment assistance to eligible first-time homebuyers. These two city programs
complement FWHA's HCVHP and the City s participation in the HCVHP in turn helps meet its housing
counseling and homebuyers assistance program goals set forth in the City s Consolidated and
Comprehensive Plans.
Logname: 17FWHA2010 Page 1 of 2
On September 19, 2006, the City Council authorized the City Manager to enter into a contract with the
FWHA to provide the required counseling services and homeownership training for its HCVHP (M&C C-
21684). The City Council authorized the City Manager to renew the contract with the FWHA in 2007 (M&C
C-22135), 2008 (M&C C-22840) and 2009 (M&C C-23454). The most recent contract expired on May 10,
2010. Staff recommends that the contract be renewed for a term of one-year beginning on May 11, 2010
and ending on May 10, 2011. The $80,000.00 will be paid by the FWHA to the City on a quarterly basis
The HCVHP is available in ALL COUNCIL DISTRICTS.
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that upon approval of the above recommendations
and adoption of the attached appropriation ordinance, funds will be available in the current operating
budget, as appropriated, of the Grants Fund.
FUND CENTERS:
TO Fund/Account/Centers
GR76 451343 017445451000
GR76 5(VARIOUS) 017445451XXX
FROM Fund/Account/Centers
$80,000.00
$80,000.00
CERTIFICATIONS:
Submitted for City Managers Office by:
Originating Department Head:
Additional Information Contact:
Thomas Higgins (6192)
Jay Chapa (5804)
Karen Meunier (8091)
Cynthia Garcia (8187)
ATTACHMENTS
1. 17FWHA2010 AO.doc (Public)
Logname: 17FWHA2010 Page 2 of 2