HomeMy WebLinkAboutContract 52528-A1 CITY SECRETARY
FORT WORTHOo
September 14, 2020
Housing Channel
Attn: Donna VanNess, President
4200 S. Freeway, Tower Ste. 307
Fort Worth, Texas 76102
RE: Final Revisions of City Secretary Contract No. 52528 between the City of Fort Worth("City') and
Housing Channel ("Developer") for HOME Investment Partnership Program Funds ("Contract')
for the Development of 2614 LaSalle Street.
Dear Ms. VanNess,
This letter is to advise you that Section 7.9.1 shall be amended as follows
7.9.1 Use of CHDO Proceeds by Developer.
Developer shall retain the CHDO Proceeds to be used for hard and soft costs associated with the
construction of at least 1 additional affordable single family house within the City to be sold to
a HOME Eligible Buyer. The CHDO Proceeds resulting from the sale of the house described in
this Contract shall be combined with the CHDO Proceeds resulting from the sale of the other 4
houses constructed as part of the Riverside Single Family Infill Development, and with a
Commercial Loan in a sufficient amount to complete the construction of the additional house.
Developer shall submit its proposed plans, location, and construction budget for the additional
house to City for its approval prior to lot acquisition or commencing construction. City shall
monitor Developer's use of the CHDO Proceeds to ensure that they are used for HOME-
eligible affordable housing activities. Developer shall keep CHDO proceeds separately from its
other funds and shall give City quarterly reports on the status and location of these funds.
Developer may retain the net sales proceeds resulting from the sale of this additional house
free of any further City or HOME requirements.
Additionally, Budget line items in the Contract for 2614 LaSalle Street will require a final
revision to reconcile the remaining HOME Funds to more accurately reflect actual spending. As
outlined in Section 5.2.3 of the Contract, Developer may increase or decrease line item amounts
in the Budget, subject to written approval by the Director of the Neighborhood Services
Department.
The Budget shown on EXHIBIT "B" —BUDGET and the Reimbursement Schedule shown on
EXHIBIT "C" — PROJECT AND REIMBURSEMENT SCHEDULE of the Contract are hereby
replaced by EXHIBIT "B" — BUDGET Revised 08/2020 and EXHIBIT "C" PROJECT AND
REIMBURSEMENT SCHEDULE Revised 08/2020 attached hereto, and deemed effective as of July 16,
2019.
OFFICIAL WOW)I �� �o2p
CITY SECRETARY" s 5FQ �'
FT WORTS TX
To indicate your agreement with the revised Budget and Reimbursement Schedule and their
Effective Date,please sign where indicated below and return three copies of the original executed
documents to the following address at your earliest convenience:
Neighborhood Services Department
Atln: Dawn McNulty,Neighborhood Development Specialist
City of Fort Worth
200 Texas Street
Fort Worth, Texas 76102
Sincerely,
Victor Turner, hector
Neighborhood Services Department
ACCEPTED AND AGREED:
H using C Approved as to Form and Legality:
By:
DO V s, e$td Jo Pate(Se z, ozou:.Cc )
Assistant City Attomey
it�Secretary
M&C C-291 8 Date: 06/4/2019
OFFI OAP. RECORD
MY SECRETARY
FT WORTH, ��:y
EX MIT"B"
BUDGET
HOUSING CHANNEL
2614 La Salle
Total Cost: $ 225,516
Project HOME Funds Awarded: $57,701
HOME Funds will be paid only as reimbursement for eligible expenses.
Development Budget
Use of Funds Source of Funds
Predevelopment Cost HOME$ OTHER$ SOURCE OF OTHER TOTAL$
FUNDS FUNDS FUNDS FUNDS
(1) (2) (Names) (1+2)
1.Market Study
2. Feasibility (i.e.:preliminary work write-
up,cost estimates,design,bond) 3,620
3. Other:HUD Noise Study 500
Total Predevelopment Cost(1+2=3) 4,120 4,120
Development Cost
4.Land and/or building acquisition 18,177 18,177
5. Soft Costs (Utilities,-Security,etc.) 1,527 1,527
6. Construction Cost 31,200 124,800 Happy State Bank 156,000
7.Fence
8.Landscape
9. Contingency
10.Appraisal 150 Proceeds 150
11.Architect&Engineering Fees 173 Proceeds 173
12. Construction Management Fee/
Developer Fee
13.Construction Loan Interest 2,677 2,677
14.Property Survey
15.Legal Fees
16.Real Estate Fees 10,830 Proceeds 10,830
17.Utility Hookup/Impact Fees
18.Title&Recording Fees 2,447 Proceeds 2,447
19.Program and Related Expenses
20. Construction Management
21,Bond Fees
Total Development Cost 57,701 138,400 196,101
22.Developer Fee(15%of Total
Development Costs) 29,415 Sales Proceeds 29,415
Total Cost 57,701 167,815 225,516
CHDO SINGLE FAMILY CONTRACT
Riverside Infill Project
Housing Channel—2614 LaSalle Street Rev 8/28/2020
EXFIIBIT"C"
PROJECT AND REIMBURSEMENT SCHEDULE
HOUSING CHANNEL
2614 LaSalle Street
Phase Activity Beginning Week—subject to
weather permitting
PHASEI ACTIVITIES: Contract signed
Land and/or Building Acquisition
PHASE I DEADLINE: $18,177
7/17/19 1st Pa ent*
PHASE II ACTIVITTES: Site Preparation
Architectural&Engineering Fees
Appraisal,Bond,Market Study
Construction costs
PHASE II DEADLINE: 2nd payment* $34,820
11/04/19
PHASE III ACTIVIITES: Construction costs
Soft costs (utilities,security)
PHASE III DEADLINE: 3rd payment* $4,704
9/04120
PHASE V ACTIVITIES: Construction loan interest
Soft costs (utilities,security)
PHASE V DEADLINE: FINAL PAYMENT** $29,415
9/30/20
CONSTRUCTION TOTAL $57,701
Paid after closing of sale to HOME
DEVELOPERFEE Eligible Buyer per Section 7.8* $29,415
*Developer will be reimbursed for eligible expenses only. All amounts are estimates and are subject to change.
**Exhibit"G"-HOME Project Compliance Report must be submitted prior to reimbursement fDr Construction Final Payment,
Construction Final Payment will not be made aller closing of sale to the Eligible HOME Buyer.
CHDO SINGLE FAMILY CONTRACT
Riverside Street Infill Project
Housing Channel—2614 LaSalle Street Rev 8/28/2020
CITY SECRETARY
4 u CON T RACT NO.�"5
TATE.'OF TEXAS §
COUNTY OF TARRANT §
This contract ("Contract") is made and entered into by and between the City of Fort
Worth (hereafter "City") and Housing Channel (hereafter "Developer"), a Texas non-profit
corporation. City and Developer may be referred to individually as a"Panty" 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 ("HUD") through the HOME Invest-nent Partnerships Program, Catalog of
—- FededaI-Domestic Assis c'�azf e No—. with which City desires to promote activities—that — --
expand the supply of affordable housing and the development of partnerships among City, local
governments, lenders,private industry, and non-profit housing organizations;
WHEREAS, the primary purpose of the HOME program pursuant to the HOME
Investment Partnerships Act at Title 11 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, the HOME program provides that a minimum of 15% of the City's HOME
allocation is to be set aside annually for use by qualified Community Housing Development
Organizations or CHDOs as owners, developers and/or sponsors of the development of
affordable housing;
WHEREAS, Developer 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 individuals and families and has fulfilled the
requirements of the HOME Program to be a CHDO;
WHEREAS, City has certified that Developer is a Community Housing Development
Organization and has specifically re-certified Developer for the purposes of this Contract;
WHEREAS, Developer requested CHDO set-aside funds for an eligible project whereby
Developer will construct a single family house to be located at 2614 La Salle Street, Fort
Worth, TX 76111 for sale to an eligible low-to moderate-income homebuyer;
WHEREAS,Developer has secured a commercial construction loan for a portion of the
construction costs of the house;
OFFICIAL R C
CHDO SINGLE FAMILY CONTRACT � ` '�� ' I
Riverside Inlill Project FT. WORT!11,7 X
Housing Channel—26I4 La Salle Street _
n
�. EXECUTED to be effective as of the Effective Date.
T: CITY OF FORT WORTH
1VIary J. ays r .�e retary 6,,,. Fernando Costa,A.�'istant City Manager
M&C G-190 Date: 8/1/2017 11 .. Dater
M&C C-29138 Date: 6/4/2019
1295 Cert.No.: 2019-491140
APPROVED AS TO FORM AND LEGALITY:
Jo Ann Pate,Assistant City Attorney
HOUSING ANNEL
Do iXess,Pr ent
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
aandreporting requirements.
Chad LaRoque, Housing Development and Grants Manager
Ir Ss" R" '
CHDO SINGLE FAMILY CONTRACT Signature Page
Riverside Will Project
Housing Channel—2614 La Salle Street
M&C Review
e
CITY COUNCIL AGENDA -- FoRT TI1
COUNCIL ACTION: Approved on 6/4/2019
REFERENCE, 19RIVERSIDE SINGLE FAMILY
DATE: 6/4/2019 NO.: C-29138 LOG NAME: INFILL DEVELOPMENT
CODE: C TYPE: CONSENT PUBLIC NO
HEARING:
SUBJECT: Authorize a Change in Use and Expenditure of Additional HOME Investment
Partnerships Program Grant Funds in the Amount of$95,356.00 to Housing Channel
for a Total Amount of$402,500.00 in the Form of a Subordinate Forgivable Loan
for the Riverside Single Family Infill Development Located in the United Riverside
Neighborhood, Authorize Execution of Contracts,Authorize Substantial Amendment to
the City's 2016-2017 Action Plan, and Authorize the Substitution of Funding Years
(COUNCIL DISTRICT 8)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize a substantial amendment to the City's 2016-2017 Action Plan;
2.Authorize the City Manager, or his designee, to substitute current and prior funding years in
order to meet commitment, disbursement and expenditure deadlines for grants from the United
States Department of Housing and Urban Development;
3. Authorize the change in use and expenditure of additional HOME Investment Partnerships
Program grant funds in the amount of$95,356.00 for a total contract amount of$402,500.00 in the
form of a subordinate forgivable loan to Housing Channel, a certified Community Housing
Developer Organization, for the development of up to five houses for the Riverside Single Family
Infill Development located in the United Riverside Neighborhood;
4. Authorize the City Manager, or his designee, to execute a contract with Housing Channel in the
amount of$402,500.00 in the form of a subordinate forgivable loan for the development for a three
year term beginning on the date of execution of the contract, and to execute al[ other related
contracts necessary for housing development and lending activities;
5. Authorize the City Manager, or his designee, to extend or renew the contracts for two additional
one-year terms if such extensions are necessary for completion of the development; and
6. Authorize the City Manager, or his designee, to amend the contracts 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 August 1, 2017, the City Council approved the City's 2017-2018 Action Plan for submission to
the United States Department of Housing and Urban Development (HUD), which included an
allocation of$307,144.00 in HOME Investment Partnerships Program (HOME) grant funds to
Housing Channel for the Riverside Single Family Infill Development on scattered sites in the
United Riverside neighborhood (M&C G-19056). HUD requires the City to set aside 15 percent of
its allocation of HOME funds for Community Development Housing Organization (CHDO)
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M&C Review
activities. Housing Channel is an experienced single family affordable housing developer and a
certified CHDO.
Housing Channel plans to develop up to five approximately 1,500 square foot, three-bedroom, two-
bath, two-car garage single family houses on LaSalle Street, Paradise Street, and Baurline Street.
The average construction cost per house is $153,400.00 and $97.00 per square foot. The houses
will be sold to households that earn 80 percent or less of the Area Median Income as set by
HUD. Eligible buyers must meet all HOME requirements, including applying for and receiving at
least$1,000 in down payment and/or closing cost assistance from the City's Homebuyer
Assistance Program (HAP) and occupying the houses as their primary residences for the required
affordability period. Due to rising construction costs, additional funding was needed to close the
financing gap for the development. Staff identified an additional$95,356.00 of HOME funds from
prior years' completed or cancelled programs and projects for a total contract amount of
$402,500.00 for this project_
Staff recommends the following HOME contract and HOME loan terms:
1. First lien commercial construction loan terms must be acceptable to City.
2. HOME loan will be subordinate only to first lien construction loan. Borrower's performance of
the terms of the HOME contract and HOME loan will be secured by a deed of trust. Payment of
HOME loan will only be required if Borrower fails to fulfill the HOME requirements in the contract
and the terms of the HOME loan.
3. Three year term for HOME contract and HOME loan. Construction must begin within six months
of date of contract execution_
4. Houses must be sold to HOME-eligible buyers who obtain a HAP loan of at least$1,000.00.
5. Housing Channel will be paid a 15 percent developer fee and will retain the net sales proceeds
from the houses to be used to construct additional affordable houses.
The expenditure of HOME funds is conditioned upon the following;
1. Satisfactory completion of an environmental review, pursuant to 24 CFR Part 58.
2. Authorization to use grant funds from HUD.
City staff recommends the change in use and expenditure of an additional $95,356.00 of HOME
funds for a total contract amount of$402,500.00 to Housing Channel for the Riverside Single
Family Infill Development. The purpose of this project is to benefit low and very low-income
citizens by providing them with affordable housing. This project will assist the City in meeting its
CHDO commitment and expenditure goals with HUD. A public comment period on the change in
use of these HOME funds was held from November 28, 2018 to December 28, 2018.Any
comments are maintained by the Neighborhood Services Department in accordance with federal
regulations. The Action Plan funding year may vary and be substituted in order to expend the
oldest grant funds first.
This project is located in COUNCIL DISTRICT 8.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations, funds will be
available in the current operating budget, as appropriated, of the Grants Operating Federal Fund.
The Neighborhood Services Department is responsible for verifying sufficiency of funding before
disbursement. This is a reimbursement grant.
TO
Fund Department ~ Account —Project Program Activity Budget Reference# Amount
ID ID Year (Chartfield 2)
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M&C Review
FROM _ _
Fund Depai tr6 ent Account Protect Program r Activity Budget Reference# Amount
ID...__ - _ ID I Year (CHartfield 2)
Submitted for City Manager's Office by- Fernando Costa (6122)
Originating Department Head: Sonia Singleton (5774)
Additional Information Contact: Chad LaRoque (2661)
Diana Carranza (7369)
ATTACHMENTS
Combined Riverside Maps.pdf
Form 1295 Certificate Housing Channel Riverside Redacted.pdf
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