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HomeMy WebLinkAboutContract 52530-A1 CITY SECRETARY C-1-)NT kCT NO. FORT WORTH(.,, 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.52530 between the City of Fort Worth("City')and Housing Channel ("Developer") for HOME Investment Partnership Program Funds ("Contract's for the Development of 217 Paradise 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 217 Paradise 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 EXHIIBIT "C" PROJECT AND RM11BURSEMENT SCHEDULE Revised 08/2020 attached hereto, and deemed effective as of July 16, 2019. RECEIVED JFM 0AL RECOW SEP 2 5 2020 I IN 3ACkE` ARY �t pi s°���� f " ., WORTH, 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 Attn: Dawn McNulty,Neighborhood Development Specialist City of Fort Worth 200 Texas Street Fort Worth, Texas 76102 Sincerely, Victor Turner,Director ACC AND AGREED: Neighborhood Services Department Housing nel g3,: Approved as to Form and Legality: o Va s, kreAent Assistant City Attorney 6"•• �`4,:.�Y��„�}, ;`..-�.`.it ' *" ity gecretary M&C C-29138 Date: 06/4/2019 EA I 17"B" BUDGET HOUSING CHANNEL 217 Paradise Total Cost: $ 219,442 Project HOME Funds Awarded: $58,269 HOME Funds will be paid only as reimbursement for eligible expenses. Development Budget Use of Funds Source of Funds Predevelopment Cost HOME$ OTHERS S OURCE 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, Environmental Studies) 3,530 3. Other:HUD Noise Study 500 Total Predevelopment Cost(1+2=3) 4,030 4,030 Development Cost 4.Land and/or building acquisition 20,177 20,177 5. Soft Costs (Utilities, Security,etc.) 1,287 1,287 6. Construction Cost 30,300 121,200 Happy State Bank 151,500 7.Fence 8.Landscape 9. Contingency 10.Appraisal 195 Proceeds 195 11.Architect&Engineering Fees 173 Proceeds 173 12. Construction Management Fee/ Developer Fee 13.Construction Loan Interest 2,475 2,475 14.Property Survey 15.Legal Fees 16.Real Estate Fees 10,830 Proceeds 10,830 17.Utility Hookup/Impact Fees 18.Title&RecordingFees 152 Proceeds 152 19.Program and Related Expenses 20. Construction Management 21.Bond Fees Total Development Cost 58,269 132,550 190,819 22.Developer Fee(15%of Total Development Costs) 28,623 Sales Proceeds 28,623 Total Cost 58,269 161,173 219,442 CHDO SINGLE FAMILY CONTRACT Riverside Infill Project Housing Channel—217 Paradise Street Rev8/25/2020 E11C IBE "C" PROJECT AND REIMBURSEMENT SCHEDULE HOUSING CHANNEL 217 Paradise Street Phase Activity Beginning Week—subject to weather permitting PHA SEI ACTIVITIES: Contract signed Land and/or Building Acquisition PHASE I DEADLINE: 7/17/19 1st Payment* $20,177 PHASE II ACTIVATES: Site Preparation Architectural&Engineering Fees Appraisal,Bond,Market Study Construction costs PHASE II DEADLINE: 2°d Payment* $33,830 11/04/19 PHASE III ACTrMTES: Construction costs Soft costs (utilities,security) PHASE III DEADLINE: 3rd payment* $4,262 9/04/20 PHASE V ACTIVITIES: Construction loan interest Soft costs (utilities,security) PHASE V DEADLINE: FINAL PAYNMNT.** $28,623 9/30/20 CONSTRUCTION TOTAL $58,269 Paid after closing of sale to HOME DEVELOPER FEE Eligible Buyer per Section 7.8* $28,623 *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 for Construction Final Payment, Construction Final Payment will not be made after closing of sale to the Eligible HOME Buyer, CHDO SINGLE FAMILY CONTRACT Riverside Street Infill Project Housing Channel—217 Paradise Street Rev 8/25/2020 CITY SECRFETARY CONTRAC'r NO FATE 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 maybe referred to individually as a"Party" and jointly as "the Parties". The Parties state as follows: WHEREAS, City has received a grant fiom the United States Department of Housing and Urban Development ("HUD") through the HOME Investment Partnerships Program, Catalog of Federaf 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, 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 II of the Cranston Gonzales National Affordable Housing Act of 1990, as amended, 42 U.S.C. 127.01 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 fiords for an eligible project whereby Developer will construct a single family house to be located at 217 Paradise 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; .01Apx CHDO SINGLE FAMILY CONTRACT Mr. WORTR.Ty 1 Riverside Infill Project Housing Channel—217 Paradise Street Rev.7/15/2019 , 0 ,.: EXECUT ,D to be effective as of the Effective Date. ti � N ,.rr A'I{F�S�`: CITY OF FORT NORTH By: -It, .. t Mazy J. Kaykes i kej retary ��--,°-:Fei Costa, sistant City Manager M&C G-19056 Date: 8/1/2017 Date: - -;' 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 HOUSIN NEL By: ``-- D a s,Pre 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. - Chad LaRoque,Housing Development and Grants Manager r-fr— - RECORD OT;A IL1721 'APP., CHDO SINGLE FAMILY CONTRACT Signature Page Riverside Infill Project Housing Channel—217 Paradise Street M&C Review CITY COUNCIL AGENDA NDA - RR i COUNCIL ACTION: Approved on 61412019 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 all 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) b tp://apps.cfivneLorg/council_packeUmc review.asp?ID=27047&councildate=G/4/2019[7/15/2019 7:I2:18 AM] 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 followina-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 y Account —Project Program Activity Budget Reference# Amount ID ID Year {CharMeld 2) bttpp://apps.cfwnet.org/council_packettmc_review.asp7TD=27047&councildate=6/4/2019[7/1S/2019 7:12,18 AM] M&C Review FROM 1=und De artrnent Account Project Program Activit Budget Reference# Amounf p ID ID 9 (� Year (CHarlfield 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 http://apps.cRvncLorg/council_packet/mc_re<<iew.asp71ID=27047&councildate=b/4/2019[7/15/2019 7:12:18 AM]