HomeMy WebLinkAboutContract 43117-A3CONTRACT
THIRD AMENDMENT TO CITY SECRETARY CONTRACT NO. 43117
93)11
WHEREAS, on April 13, 2012 the City of Fort Worth ("City") and Hillside
Public Facility Corporation ("Developer") made and entered into City Secretary Contract
No. 43117 (the "Contract) as authorized by the City Council in M&C C-24974 adopted
on June 14, 2011;
WHEREAS, the purpose of the Contract was to provide $700,000.00 in the form
of a subordinate forgivable loan for certain acquisition expenses, as well as any soft costs
and rehabilitation expenses for the renovation of the historic Knights of Pythias Lodge
building, as part of the development of an 18 unit multifamily, mixed income housing
development in downtown Fort Worth to be known as the Knight of Pythias Lofts;
WHEREAS, the funding provided to Developer in the Contract was from a grant
received by the City from the United States Department of Housing and Urban
Development ("HUD") through the Community Development Block Grant Program
("CDBG"), Program No. B-05-MC-48-0010, Catalog of Federal Domestic Assistance
No. 14.218 ("CDBG funds");
WHEREAS, the Contract provided for 10 Affordable Units to be rented to
CDBG-eligible tenants for a 15 year Affordability Period with repayment of the
$700,000.000 loan to be forgiven at the end of the Affordability Period provided all
Contract terms and CDBG requirements were fulfilled;
WHEREAS, City and Developer entered into the First Amendment to the
Contract for an additional $250,000.00 of CDBG funds in the form of a second lien
subordinate loan to be repaid with accrued interest at the end of the Affordability Period,
with the $700,000.00 loan to be in the form of a third lien subordinate loan to be forgiven
at the end of the Affordability Period;
WHEREAS, City and Developer entered into the Second Amendment to the
Contract to extend the Completion Deadline to August 1, 2013 to accommodate changes
in the Construction Schedule and to clarify certain other regulatory requirements
pertaining to vendors, Section 3 requirements and City insurance requirements;
WHEREAS, Developer requested and City agrees to an extension of the
Completion Deadline to December 15, 2013 to complete the Project as well as revise and
correct certain Exhibits attached to the Contract;
WHEREAS, it is the mutual desire of City and Developer to amend the Contract
to meet Contract objectives.
CDBG CONSTRUCTION CONTRACT CSC No. 43117 A-3
Hillside Public Facility Corporation — Knights of Pythias Lofts
REcrivEn Nov 2 2 2013
OFFICIAL faaORD
CITY SECRETARY
WORTH, TX
NOW, THEREFORE, City and Developer hereby agree to amend the Contract as
follows:
I.
a. Section 2. DEFINITIONS is amended to be and read as follows:
"Completion Deadline means December 15, 2013."
b. Section 10.3 Deadline for Submitting Reimbursement Requests is hereby
deleted and replaced with the following language:
`10.3 Deadline for Submitting Reimbursement Requests.
Notwithstanding the $10,000.00 holdback of CDBG Funds referenced in Exhibit
13" — Budget Revised 08/2012, all Reimbursement Requests along with Complete
Documentation shall be submitted by Developer to City within 30 days of the
Completion Deadline. The Reimbursement Request for the $10,000 holdback of CDBG
Funds must be submitted within 60 days of the Completion Deadline.'
c Section 10.3 Withholding Payment is renumbered to be Section
10.4 Withholding Payment.
d. This amendment is effective as of the Effective Date of the Contract.
II.
Exhibit "C" — Construction Schedule 05/2013 attached to the Contract is
hereby replaced with the attached Exhibit "C" — Construction Schedule Revised
11/2013. Exhibit "I" — Section 3 Reporting Forms attached to the Contract and
referenced in the Second Amendment is hereby replaced with the attached Exhibit "J" —
Section 3 Reporting Forms.
The following is a full and complete list of Exhibits referenced in and attached to
the Contract:
Exhibit
Exhibit
Exhibit
Exhibit
Exhibit
Exhibit
Exhibit
Exhibit
Exhibit
Exhibit
"A" — Project Summary Revised 08/2012
"A-1" — HUD Rent Limits
"A-2" — Environmental Mitigation Actions
"B" — Budget Revised 08/2012
"C" — Construction Schedule Revised 11/2013
"D" — Audit Requirements
"B" — Loan Documents
"E-1" - $250,000 CDBG Loan Documents
"F" — Reimbursement Forms
"G" — Tenant Household Characteristics
CDBG CONSTRUCTION CONTRACT CSC No. 43117 A-3
Hillside Public Facility Corporation — Knights of Pythias Lofts
Page 2
Exhibit "H" — Davis -Bacon Requirements
Exhibit "I" — Tenant Self -Certification Form
Exhibit "J" — Section 3 Reporting Forms
Iv.
All terms and conditions of the Contract not amended herein remain unaffected
and in full force and effect, are binding on the Parties and are hereby ratified by the
Parties. Capitalized terms not defined herein shall have meanings assigned to them in the
Contract.
[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]
CDBG CONSTRUCTION CONTRACT CSC No. 43117 A-3 Page 3
Hillside Public Facility Corporation — Knights of Pythias Lofts
as of the last date indicated below by the Parties' signatures.
ity Secretary
M&C C-24974
M&C C-25644
CITY OF FORT WORTH
By:
4141 dast. 44
Fernando Costa, Assistant City Manager
Date: June 14, 2011 Date: n/Z///3
Date: June 12, 2012
APPROVED AS TO FORM AN LEGALITY:
6,,,4 &mat
Assistant City Attorney
DEVELOPER:
HILLSIDE PUBLIC FACILITY
CORPORATION
By: 6ctiatrazet,
Barbara Holston, Vice President
Date:
STATE OF TEXAS
COUNTY OF TARRANT §
This instrument was acknowledged before me on iV01/BfyJaC" e,g/ , 2013 by
Fernando Costa, Assistant City Manager of the City of Fort Worth,n behalf the City of
•.``,1111paY A,,fr,.
�2' ••0• a
EVONIA DANIELS
Notai y Public. State of Texas
My Commission Expires
}`
%of 6F ..•1July 10 : 2017
��
STATE OF TEXAS
r
otary Public, State of Texas
COUNTY OF TARRANT §
This instrument was acknowledged before me on }'k,vcm btu 13 , 2013 by
Barbara Holston, the Vice President of Hillside Public Facility Corporation, a Texas
public facility corporation, on behalf of said corporation.
-.
4.
4ft.
EVA CHR1STENE KEY
MY COMMISSION EXPIRES
August 15, 2017
Notary Publit-rSctate oA exas
CDBG CONSTRUCTION CONTRACT CSC No. 43117 A-3
Hillside Public Facility Corporation — Knights of Pythias Lofts
PHASE I ACTIVITIES:
April 2012
EXHIBIT "C"
CONSTRUCTION SCHEDULE Revised 11/2013
HILLSIDE PUBLIC FACILITY CORPORATION
Activity
Contract signed
Acquisition
Soft Costs
Lot Preparation (Grading)
Plumbing
Foundation
PHASE I COMPLETE by: November, 2012
PHASE II ACTIVIITES: Framing / TPW
Mechanicals / Siding / Paint
PHASE II COMPLETE by: January 2013
PHASE III ACTIVIITES:
PHASE III COMPLETED by: March 2013
PHASE IV ACTIVIITES:
PHASE IV COMPLETED by: December 2013
TOTAL
Inspections / Insulation
Sheetrock / Brick
Interior Trim / Paint
$400,000.00
$ 50,000.00
$450,000.00
$100,000.00
$80,000.00
Flooring
Mechanical Trim / Grading / Landscaping
Final Trim / Appliances and Fixtures / Fencing
Final Inspections
Punch List $320,000.00
Initial Lease -up of Affordable Units
$950,000.00
CDBG CONSTRUCTION CONTRACT CSC No. 43117 A-3 Page 5
Hillside Public Facility Corporation — Knights of Pythias Lofts
EXHIBIT "J"
SECTION 3 REPORTING FORMS
HILLSIDE PUBLIC FACILITY CORPORATION
CDBG CONSTRUCTION CONTRACT CSC No. 43117 A-3 Page 6
Hillside Public Facility Corporation -- Knights of Pythias Lofts
EXHIBIT "J"
Section 3 Summary Report
Economic Opportunities for
Low — and Very Low -Income Persons
Section back of page for Public Reporting Burden statement
1. Recipient Name & Address: (street, city, state, zip)
8. Date Report Submitted:
U.S. Department of Housing
and Urban Development
Office of Fair Housing
And Equal Opportunity
2. Federal Identification: (grant no.)
4. Contact Person
6. Length of Grant:
9. Program Code:
(Use separate sheet
for each program code)
Part I: Employment and Training (** Columns B, C and F are mandatory fields. Include New
A
Job Category
Professionals
Technicians
Office/Clerical
Construction by Trade (List)
Trade
Trade
Trade
Trade
Trade
Other (List)
Total
` Program Codes
1 = Flexible Subsidy
2 = Section 202/811
B C D
Number of Number of New
New Hires Hires that are
Sec. 3 Residents
3 = Public/Indian Housing
A = Development,
B = Operation
C = Modernization
Page 1 of 2
% of Aggregate Number
of Staff Hours of New Hires
that are Sec. 3 Residents
OMB Approval No: 2529-0043
(exp. 11/30/2010)
HUD Field Office:
3. Total Amount of Award:
5. Phone: (Include area code)
7. Reporting Period:
10. Program Name:
Hires in E &F)
E F
% of Total Staff Hours Number of Section 3
for Section 3 Employees Trainees
and Trainees
4 = Homeless Assistance
5=HOME
6 = HOME State Administered
7 = CDBG Entitlement
8 = CDBG State Administered
9 = Other CD Programs
10 = Other Housing Programs
form HUD 60002 (6/2001)
Ref 24 CFR 135
Part I1: Contracts Awarded
1. Construction Contracts:
A. Total dollar amount of all contracts awarded on the project
B. Total dollar amount of contracts awarded to Section 3 businesses
C. Percentage of the total dollar amount that was awarded to Section 3 businesses
D. Total number of Section 3 businesses receiving contracts
2. Non -Construction Contracts:
A. Total dollar amount all non -construction contracts awarded on the project/activity
B. Total dollar amount of non -construction contracts awarded to Section 3 businesses
C. Percentage of the total dollar amount that was awarded to Section 3 businesses
D. Total number of Section 3 businesses receiving non -construction contracts
Part III: Summary
%
Indicate the efforts made to direct the employment and other economic opportunities generated by HUD financial assistance for housing
and community development programs, to the greatest extent feasible, toward low -and very low-income persons, particularly those who
are recipients of govemment assistance for housing. (Check all that apply.)
Attempted to recruit low-income residents through: local advertising media, signs prominently displayed at the project site,
contracts with the community organizations and public or private agencies operating within the metropolitan area (or
nonmetropolitan county) in which the Section 3 covered program or project is located, or similar methods.
Participated in a HUD program or other program which promotes the training or employment of Section 3 residents.
Participated in a HUD program or other program which promotes the award of contracts to business concerns which meet the
definition of Section 3 business concerns.
Coordinated with Youthbuild Programs administered in the metropolitan area in which the Section 3 covered project is located.
Other; describe below.
Public reporting for this collection of information is estimated to average 2 hours per response, including the time for reviewing instructions,
searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.
This agency may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB
number.
Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u, mandates that the Department ensures that
employment and other economic opportunities generated by its housing and community development assistance programs are directed
toward low- and very -low income persons, particularly those who are recipients of govemment assistance housing. The regulations are
found at 24 CFR Part 135. The information will be used by the Department to monitor program recipients' compliance with Section 3, to
assess the results of the Department's efforts to meet the statutory objectives of Section 3, to prepare reports to Congress, and by
recipients as self -monitoring tool. The data is entered into a database and will be analyzed and distributed. The collection of information
involves recipients receiving Federal financial assistance for housing and community development programs covered by Section 3. The
information will be collected annually to assist HUD in meeting its reporting requirements under Section 808(e)(6) of the Fair Housing Act
and Section 916 of the HCDA of 1992. An assurance of confidentiality is not applicable to this form. The Privacy Act of 1974 and OMB
Circular A-108 are not applicable. The reporting requirements do not contain sensitive questions. Data is cumulative; personal identifying
information is not included.
Page 2 of 2 form HUD 60002 (11/2010)
Ref 24 CFR 135
Form HUD-60002, Section 3 Summary Report, Economic Opportunities for Low- and Very Low -Income Persons.
Instructions: This form is to be used to report annual
accomplishments regarding employment and other economic
opportunities provided to low- and very low-income persons under
Section 3 of the Housing and Urban Development Act of 1968. The
Section 3 regulations apply to any public and Indian housing
programs that receive: (1) development assistance pursuant to
Section 5 of the U.S. Housing Act of 1937; (2) operating assistance
pursuant to Section 9 of the U.S. Housing Act of 1937; or (3)
modernization grants pursuant to Section 14 of the U.S. Housing Act
of 1937 and to recipients of housing and community development
assistance in excess of $200,000 expended for (1) housing
rehabilitation (including reduction and abatement of lead -based paint
hazards); (2) housing construction; or (3) other public construction
projects; and to contracts and subcontracts in excess of $100,000
awarded in connection with the Section-3-covered activity.
Form HUD-60002 has three parts, which are to be completed for
all programs covered by Section 3. Part I relates to employment
and training. The recipient has the option to determine numerical
employment/training goals either on the basis of the number of hours
worked by new hires (columns B, D, E and F). Part II of the form
relates to contracting, and Part III summarizes recipients' efforts to
comply with Section 3.
Recipients or contractors subject to Section 3 requirements must
maintain appropriate documentation to establish that HUD financial
assistance for housing and community development programs were
directed toward low- and very low-income persons.* A recipient of
Section 3 covered assistance shall submit one copy of this report to
HUD Headquarters, Office of Fair Housing and Equal Opportunity.
Where the program providing assistance requires an annual
performance report, this Section 3 report is to be submitted at the
same time the program performance report is submitted. Where an
annual performance report is not required, this Section 3 report is to be
submitted by January 10 and, if the project ends before December 31,
within 10 days of project completion. Only Prime Recipients are
required to report to HUD. The report must include
accomplishments of all recipients and their Section 3 covered
contractors and subcontractors.
HUD Field Office: Enter the Field Office name .
1. Recipient: Enter the name and address of the recipient
submitting this report.
2. Federal Identification: Enter the number that appears on the
award form (with dashes). The award may be a grant,
cooperative agreement or contract.
3. Dollar Amount of Award: Enter the dollar amount, rounded to the
nearest dollar, received by the recipient.
4 & 5. Contact Person/Phone: Enter the name and telephone number
of the person with knowledge of the award and the recipient's
implementation of Section 3.
6. Reporting Period: Indicate the time period (months and year)
this report covers.
7. Date Report Submitted: Enter the appropriate date.
Submit one (1) copy of this report to the HUD Headquarters Office of
Fair Housing and Equal Opportunity, at the same time the
performance report is submitted to the program office. The Section 3
report is submitted by January 10. Include only contracts executed
during the period specified in item 8. PHAs/IHAs are to report all
contracts/subcontracts.
* The terms "low-income persons" and very low-income persons" have
the same meanings given the terms in section 3 (b) (2) of the United
States Housing Act of 1937. Low-income persons mean families
(including single persons) whose incomes do not exceed 80 percent of
the median income for the area, as determined by the Secretary, with
adjustments for smaller and larger families, except that
Pagel
8. Program Code: Enter the appropriate program code as listed at
the bottom of the page.
9. Program Name: Enter the name of HUD Program corresponding
with the "Program Code" in number 8.
Part I: Employment and Training Opportunities
Column A: Contains various job categories. Professionals are
defined as people who have special knowledge of an occupation (Le.
supervisors, architects, surveyors, planners, and computer
programmers). For construction positions, list each trade and provide
data in columns B through F for each trade where persons were
employed. The category of "Other" includes occupations such as
service workers.
Column B: (Mandatory Field) Enter the number of new hires for
each category of workers identified in Column A in connection with
this award. New hire refers to a person who is not on the contractor's
or recipient's payroll for employment at the time of selection for the
Section 3 covered award or at the time of receipt of Section 3 covered
assistance.
Column C: (Mandatory Field) Enter the number of Section 3 new
hires for each category of workers identified in Column A in
connection with this award. Section 3 new hire refers to a Section 3
resident who is not on the contractor's or recipient's payroll for
employment at the time of selection for the Section 3 covered award or
at the time of receipt of Section 3 covered assistance.
Column D: Enter the percentage of all the staff hours of new hires
(Section 3 residents) in connection with this award.
Column E: Enter the percentage of the total staff hours worked for
Section 3 employees and trainees (including new hires) connected
with this award. Include staff hours for part-time and full-time
positions.
Column F: (Mandatory Field) Enter the number of Section 3
residents that were trained in connection with this award.
Part I1: Contract Opportunities
Block 1: Construction Contracts
Item A: Enter the total dollar amount of all contracts awarded on the
project/program.
Item B: Enter the total dollar amount of contracts connected with this
project/program that were awarded to Section 3 businesses.
Item C: Enter the percentage of the total dollar amount of contracts
connected with this project/program awarded to Section 3 businesses.
Item D: Enter the number of Section 3 businesses receiving awards.
Block 2: Non -Construction Contracts
Item A: Enter the total dollar amount of all contracts awarded on the
project/program.
Item B: Enter the total dollar amount of contracts connected with this
project awarded to Section 3 businesses.
Item C: Enter the percentage of the total dollar amount of contracts
connected with this project/program awarded to Section 3 businesses.
Item D: Enter the number of Section 3 businesses receiving awards.
Part III: Summary of Efforts — Self-explanatory
The Secretary may establish income ceilings higher or lower than 80 percent
of the median for the area on the basis of the Secretary's findings such that
variations are necessary because of prevailing levels of construction costs
or unusually high- or low-income families. Very low-income persons mean
low-income families (including single persons) whose incomes do not
exceed 50 percent of the median family income area, as determined by the
Secretary with adjustments or smaller and larger families, except that the
Secretary may establish income ceilings higher or lower than 50 percent of
the median for the area on the basis of the Secretary's findings that such
variations are necessary because of unusually high or low family incomes.
form HUD 60002 (11/2010)
Ref 24 CFR 135
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 6/14/2011
DATE: Tuesday, June 14 2011 REFERENCE NO.: C-24974
LOG NAME: 17FWHA-KNIGHTSOFPYTHIASLODGELOFTS
SIJBJECT:
Authorize Expenditure of $700,000.00 of Community Development Block Grant Funds to the Fort Worth
Housing Authority or its Designated Affiliate, in the Form of a Subordinate Forgivable Loan for the Knights
of Pythias Lodge Lofts Development, Authorize Execution of a Contract and Authorize a Substantial
Amendment to the City's 2005-2006 Action Plan (COUNCIL DISTRICT 9)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize a substantial amendment to the City's 2005-2006 Action Plan;
2. Authorize the City Manager, or his designee, to substitute funding years in order to meet United States
Department of Housing and Urban Development commitment, disbursement and expenditure deadlines;
3. Authorize an expenditure of $700,000.00 of Community Development Block Grant funds to the Fort
Worth Housing Authority, or its designated affiliate, in the form of a subordinate forgivable loan for the
development of the Knights of Pythias Lodge Lofts located in the 300 block of Crump Street in downtown
Fort Worth;
4. Authorize the City Manager, or his designee, to execute a contract with the Fort Worth Housing Authority,
or its designated affiliate for the development for a term beginning on the date of execution of the Contract
and expiring at the end of the 15 year Affordability Period; and
5. Authorize the City Manager, or his designee, to amend 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:
The Fort Worth Housing Authority (Developer) proposes to develop the Knights of Pythias Lodge Lofts in
downtown Fort Worth Project partners include the City and Downtown Fort Worth, Inc (DFWI). The
Developer will acquire two lots located at 303 and 307 Crump Street and lease or purchase a portion of a lot
for parking located at East 2nd Street owned by DFWI. The development will consist of the rehabilitation of
the Knights of Pythias Lodge which will contain ten units and the new construction of an adjacent structure
that will contain eight units for a total of eighteen units.
Total development costs are approximately $1,900,000.00. Community Development Block Grant funds will
provide for acquisition costs up to $400,000 00 with the remaining funds being used for soft and hard costs
related to the rehabilitation of the Knights of Pythias Lodge.
,Staff recommends the following loan terms:
i. Designate 51 percent of units to be affordable for a 15 Year Affordability period;
ii. Secure performance and repayment of CDBG funds with a recorded deed of trust on land and all
improvements;
iii Zero percent interest rate; and
iv. Loan is forgiven once the 15 Year Affordability period expires and contract terms are met.
The expenditure of CDBG funds is conditioned unon the following:
i. Satisfactory completion of an environmental review per 24 CFR Part 58,and
ii. Authorization to use grant funds from the United States Department of Housing and Urban Development.
Staff recommends the change in use and expenditure of $700,000.00 in CDBG funds for the development,
which is to benefit low and very low income citizens by providing them with affordable housing. The Action
Plan funding years selected may vary and be substituted based on the Principle of First In, First Out (FIFO)
in order to expend oldest grant funds first A public comment period on the change in use of these CDBG
funds was held from May 6, 2011, to June 6, 2011 Any comments are maintained by the Housing and
Economic Development Department in accordance with federal regulations.
This project is located in COUNCIL DISTRICT 9.
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/Centers
GR76 539120 005206005910
FROM Fund/Account/Centers
$700.000.00 GR76 539120 003206005700
GR76 538070 0032060057QQ
CERTIFICATIONS:
Submitted for City Manager's Office bv:
Originating Denartment Head:
Additional Information Contact:
ATTACHMENTS
1. available funds ndf
2. KOPM&CMan.ndf
Thomas Higgins (6192)
Jay Chapa (5804)
Cynthia Garcia (8187)
Avis F. Chaisson (6342)
$ 4 85.953.00
$514.047.00
M&C Review
EC,OligNCIL AGENDA
COUNCIL ACTION: Approved on 6/12/2012
Page 1 of 2
Official site of the City of Fort Worth, Texas
Four WORTH
DATE: 6/12/2012 REFERENCE **C-25644 LOG 17KNIGHTSOFPYTHIASLOFTSADD250K
NO.: NAME:
CODE: C TYPE: CONSENT PUBLIC NO
HEARING:
SUBJECT: Authorize Expenditure of an Additional $250,000.00 of Community Development Block
Grant Funds to the Hillside Public Facility Corporation, an Affiliate of the Fort Worth
Housing Authority, for a Subordinate Loan in the Total Amount of $950,000.00 for the
Knights of Pythias Lodge Lofts Located in the 300 Block of Crump Street and Authorize
Substantial Amendment to the City's 2010-2011 Action Plan (COUNCIL DISTRICT 9)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize a Substantial Amendment to the City's 2010-2011 Action Plan;
2 Authorize the City Manager, or his designee, to substitute funding years in order to meet United
States Department of Housing and Urban Development commitment, disbursement and expenditure
deadlines; and
3. Authorize an expenditure of an additional $250,000.00 of Community Development Block Grant
funds to the Hillside Public Facility Corporation, an affiliate of the Fort Worth Housing Authority, in the
form of a subordinate loan in the total amount of $950,000.00 for the development of the Knights of
Pythias Lodge Lofts located in the 300 block of Crump Street in downtown Fort Worth.
DISCUSSION:
On June 14, 2011, (M&C C-24974) the City Council approved an award of $700,000.00 of
Community Development Block Grant (CDBG) funds to the Fort Worth Housing Authority (FWHA), or
its designated affiliate, to develop the Knights of Pythias Lodge Lofts, a multifamily mixed income
housing development in downtown Fort Worth. FWHA formed the Hillside Public Facility Corporation
(HPFC), a single asset entity, to serve as the developer and owner. On April 12, 2012, HPFC and the
City entered into City Secretary Contract No. 43117 for the original $700,000.00 of CDBG funds to be
used for acquisition, rehabilitation and soft costs for the 18-unit development. The CDBG funds were
in the form of a deferred payment loan which would be forgiven at the end of the 15 Year Affordability
Period. HPFC acquired the property and will rehabilitate and convert the Knights of Pythias Lodge,
which will contain eight units, and construct an adjacent, architecturally compatible structure which
will contain ten units.
Since the original CDBG award, Staff has re-evaluated project development costs in addition to
financing sources and identified a funding gap. Because the project will provide quality, affordable,
accessible housing and restore a historically significant structure, Staff recommends the award of an
additional $250,000.00 in CDBG funds for a total of $950,000.00 of CDBG funds, subject to the
following terms:
i. Designate 51 percent of units to be affordable for a 15 Year Affordability Period;
ii. Secure performance and repayment of CDBG funds with a deed of trust on land and all
improvements;
iii. One percent interest;
iv. Repayment of $700,000.00 of the CDBG funds shall be deferred and forgiven at the end of the
Affordability Period. and
v. Repayment of $250,000.00 of the CDBG funds and accrued interest shall be due at the end of the
Affordability Period.
http://www.fortworthgov.org/council packetlmc_review.asp?ID=16933&councildate=6/... 06/13/2012
M&C Review Page 2 of 2
Total project costs are estimated to be $2,200,000.00 including the CDBG award of $950,000.00.
Staff recommends the change in use and expenditure of an additional $250,000.00 in CDBG funds
for the development which is to benefit low and very low income citizens by providing them with
affordable housing. The Action Plan funding years selected may vary and be substituted based on
the Principle of First In, First Out in order to expend oldest grant funds first. A public comment period
on the change in use of these additional CDBG funds was held from May 11, 2012 to June 11, 2012
Any comments are maintained by the Housing and Economic Development Department in
accordance with federal regulations.
This project is located in COUNCIL DISTRICT 9.
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that funds are available in the current operating
budget, as appropriated, of the Grants Fund.
TO Fund/Account/Centers
GR76 539120 017206460910 $250.000.00
Submitted for Citv Manager's Office bv:
Oriainatina Department Head:
Additional Information Contact:
ATTACHMENTS
KOPM&CMap.pdf
FROM Fund/Account/Centers
GR91 538070 005206066010 $149.255 17
GR76 539120 017206460990 $100.744.83
Fernando Costa (6122)
Jay Chapa (5804)
Cynthia Garcia (8187)
Avis F. Chaisson (6342)
http://www.fortworthgov.org/council_packet/mc review.asp?ID=16933&councildate=6/... 06/13/2012