HomeMy WebLinkAboutContract 44181-A1 (2)CITY SICREARY
CONTRACT NO. �� � ! _ ✓�
FIRST AMENDMENT TO CITY SECRETARY CONTRACT NO. 44181
WHEREAS, on February 19, 2013, the City of Fort Worth ("City") and Harmon Villas
Investment, L.P. ("Developer") made and entered into City Secretary Contract No. 44181 (the
"Contract") as authorized by M&C C-25488, adopted by the City Council on March 20 2012,
which provided $300,000.00 of City's HOME funds to Developer for the development of
Required Improvements to be commonly known as Harmon Villas;
WHEREAS, City has received a grant from the United States Department of Housing and
Urban Development through the HOME Investment Partnerships Program, Catalog of Federal
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,
local lenders, private industry and neighborhood -based nonprofit 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. 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, it is the mutual desire of the City and Developer to amend the Budget to
allow for reimbursement of acquisition costs as well as hard construction costs. In addition, it is
the mutual desire of the Parties to extend certain dates in Exhibit "C" — Construction and
Reimbursement Schedule due to delays in obtaining permits for the Required Improvements.
NOW, THEREFORE, City and Developer hereby agree as follows:
I.
a. Exhibit "B" -Budget attached to the Contract is hereby replaced with Exhibit "B"
- Budget Revised 6/2013.
b. Exhibit "C" -Construction and Reimbursement Schedule attached to the
Contract is hereby replaced with Exhibit "C" -Construction and Reimbursement Schedule
Revised 6/2013.
c. This amendment is effective as of the Effective Date of the Contract.
II.
All other terms and conditions of the Contract remain unaffected and in full force and
effect, are binding on the parties and are hereby ratified by the City and Developer.
[SIGNATURES APPEAR ON FOLLOWING PAGE]
Amendment No. 1 to CSC No. 44181 OFFICIAL RECOR ge 1
Harmon Villas Investment, L.P. CITY SECRETARY
RECEIVED JUN 2 8 2013 FT, WORM TX
IN WITNESS WHEREOF, the Parties have executed four duplicate originals of this Contract
Amendment in Fort Worth, Tarrant County, Texas.
City Secre
M&C C-2
Date: 3/20/12
Senior Assistant City Attorney
STATE OF TEXAS §
COUNTY OF TARRANT §
This instrument
MY COMrdISS1pN EXPIRES
.luly 10, 2013
CITY OF FORT WORTH
l!0
a��ternando Costa, Assistant City Manager
oOd ° &
L �$ ` fs<
HARMON VILLAS INVESTMENTS, L.P.,
a Texas limited partnership
ledged
before me on
�4ii;�i�. ukNlFLS
'#_= NY GOM(J��SS�Ot� EXPI
Jvrr' 10. 2013
By: Harmon Villas Investments, LLC, a Texas
limited liability company, its General Partner
By:
Jay O. Oji, Manager
.,Jt�N�° �o , 2013 by Fernando Costa,
L" of the City of Fort Worth.
as
Public State of Tex
STATE OF TEXAS §
COUNTY OF TARRANT §
This instrument was acknowledged before me on , 2013 by Jay O. Oji, Manager of
Harmon Villas Development, LLC, a Texas limited liability company, General Partners of Harmon Villas
Investments, L.P., a Texas limited partnership company, acting on behalf of such limited partnership.
Notary Public State of Texas
Amendment No. 1 to CSC No. 44181
Harmon Villas Investment, L.P.
IN WITNESS WHEREOF, the Parties have executed four duplicate originals of this Contract
Amendment in Fort Worth, Tarrant County, Texas.
ATTEST:
City Secretary
M&C C-25488 Date: 3/20/12
s, I'' I" �:: ��� I III �, ��� i ��� !►� t/I � C\ �ID7111f � �g\I�IIYIrh�
Vicki Ganske,
Senior Assistant City Attorney
By:
Fernando Costa, Assistant City Manager
IH[A1�ON V 1LLAS 11V Y Y'�UT����T�, L.Y .,
a Texas limited partnership
By: Harmon Villas Investments, LLC, a Texas
limited liability company, its General Partner
By:
ay O. (Tji, Manager
STATE OF TEXAS §
COUNTY OF TARRANT §
This instrument was acknowledged before me on 2013 by Fernando Costa,
Assistant City Manager of the City of Fort Worth, on behalf of the City of Fort Worth.
Notary Public State of Texas
STATE OF TFXAS §
COUNTY ®�' TARRANT §
This instrument was acknowledged before me on 2013 by Jay O. Oji, Manager of
Harmon Villas Development, LLC, a Texas limite ability company, General Partners of Harmon Villas
Investments, L.P., a Texas limited partnership company, acting on behalf of such limited partnership.
Amendment No. 1 to CSC No. 44181 Page 2
Harmon Villas Investment, L.P.
EXHIBIT "B"
BUDGET Revised 6/2013
HARMON VILLAS INVESTMENTS, L.P.
SOURCES AND USES
Development Name:
HARMON VILLAS INVESTMENTS, L.P.
Priority of
Construction or Rehab.
Permanent Loan Stage
Source #
Funding Description
Lien
Loan Stage Amt.
Amount
Financing Participants
Community Bank of
1
Conventional Loan
1
$14,000,000
5,475,000
Texas
2
Conventional Loan/FHA
Bank of America,
3
HTC Syndication Proceeds
$9,871,044
$171167,033
N.A.
4
HOME
5
Housing Trust Fund
6
CDBG
7
Mortgage Revenue Bonds
Historic Tax Credit Syndication
8
Proceeds
9
USDA/ TXRD Loan(s)
10
Other Federal Loan or Grant
11
Other State Loan or Grant
Local Government Loan or
12
Grant HOME
2
$300,000
City of Fort Worth
13
Private Loan or Grant
14
Cash Equity
Sphinx
In -Kind Equity/Deferred
Development
15
Developer Fee
$1,207,500
$517,745
Corporation
16
Operating Reserves
$715,000
TOTAL
SOURCES
OF FUNDS
$ 26,093,544
$ 23,159,778
TOTAL
USES OF
FUNDS
$ 23,159,778
AmPnrle� H()MF Funds Budget 6/2013
Acquisition/Soft Costs
$250,000
Hard Cost Expense
Flooring/Mechanical Trim/Appliances &
Fixtures/Final Punch List
$40,000
Holdback*
$105000
TOTAL
$300,000
* City will hold back $10,000 of the HOME Funds until City verifies a HOME Unit is leased to a HOME Eligible
Household.
Amendment No. 1 to CSC No. 44181 Page 3
Harmon Villas Investment, L.P.
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Official site of the City of Fort Worth, Texas
CITY COUNCIL AGENDA FoRroRrrr
COUNCIL AUTION: Approved on 3/20/2012 - Resolution No. 4068=03-2012
DATE: 3/20/2012 REFERENCE NO.: **C-25488 LOG NAME: 17HARMONVILLAS
CODE: C TYPE: CONSENT PUBLIC NO
HEARING:
SUBJECT: Authorize Change of Use and Expenditure of $300,000.00 of HOME Investment
Partnerships Program Grant Funds to Sphinx Development Corporation or its Designated
Affiliate, in the Form of an Interim Loan for Harmon Villas, a Multifamily Housing
Development to Be Located at 9592 Harmon Road, Authorize Execution of a Conditional
Commitment and Contract, Authorize Substantial Amendment to the City of Fort Worth's
2009-2010 and 2010-2011 Action Plans and Substitution of Funding Years and Adopt
Resolution Supporting the 2012 Low Income Housing Tax Credit Application for the
Development (COUNCIL DISTRICT 2)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize a substantial Amendment to the City of Fort Worth's 2009-2010 and 2010-2011 Action
Plans;
2. Authorize substitution of current and prior 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 Change in Use and expenditure of $300,000.00 in prior years HOME Investment
Partnerships Program Grant funds to the Sphinx Development Corporation or its designated affiliate,
in the form of a interim repayment loan for the development of Harmon Villas;
4. Authorize the City Manager or his designee to execute a Conditional Commitment with the Sphinx
Development Corporation or its designated affiliate, for a interim repayment loan that conditions
funding on the completion of the Environmental Review, satisfactory completion of HOME
requirements, and among other things, receipt of Low Income Housing Tax Credits from the Texas
Department of Housing and Community Affairs;
5. Authorize the City Manager or his designee to execute a HOME contract with Sphinx Development
Corporation or its designated affiliate, for the Development for a term beginning on the date of
execution of the contract and ending on the date the 20 year affordbility period expires;
6. Authorize the City Manager or his designee to extend or renew the Conditional Commitment or the
Contract for up to one year if Sphinx Development Corporation requests an extension and such
extension is necessary for completion of the Development;
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
Development and in compliance with City policies and applicable laws and regulations governing the
use of federal grant funds; and
8. Adopt the attached Resolution supporting the 2012 Low Income Housing Tax Credit application.
DISCUSSION:
The Housing and Economic Development Department issued a Request For Proposals (RFP) in
January to award HOME Investment Partnerships Program (HOME) Grant funds to developers
applying to the Texas Department of Housing and Community Development Affairs (TDHCA) for Low
Income Housing Tax Credits (LIHTC). On January 20, 2012, the Sphinx Development Corporation
(SDC) submitted a response requesting $300,000.00 of the available HOME funds for construction
costs related to the development of the Harmon Villas (Development), a 150 unit multifamily complex
to be located at 9592 Harmon Road. Staff reviewed all RFP submissions and recommends the award
to SDC or an affiliate, of $300,000.00 in HOME funds in the form of a subordinate interim loan for
eligible costs for the Development.
The Development will consist of one, two and three -bedroom units. All of the units will be available for
rent to households earning 60 percent or less of Area Median Income (AMI) as determined by the
United States Department of Housing and Urban Development (HUD). SDC will hire a Social
Services Coordinator to coordinate various services and activities for tenants. The complex will
include amenities such as a controlled access gates, furnished clubhouse, fitness room, activity
room, water features and a gazebo.
SDC has submitted an application for LIHTC to the TDHCA as part of the financing for the
Development. Total Development cost is approximately $19,801,920.00.
Staff recommends the followinq HOME loan terms:
i. Designate HOME -assisted units according to HOME regulations with a 20 Year Affordability
Period;
ii. Secure payment and performance of the HOME requirements by a Deed of Trust on the real
property
for the length of the Affordability Period;
iii. One percent interest rate; and
iv. Repayment of principal and accrued interest is due
three
The commitment of HOME funds is conditioned upon the followinq:
i. Receipt of funds from HUD;
ii. Satisfactory completion of the environmental review per 24 CFR Part 58;
iii. Authorization to use grant funds from HUD; and
iv. Award of LIHTC by the TDHCA.
Staff recommends the change in use and expenditure of $300,000.00 of HOME funds for the
Development. HOME funds may be used for any eligible cost related to this Development. 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. The Development will benefit low and very low
income citizens by providing them with quality, accessible, affordable housing. A public comment
period on the intent to use HOME funds was held from February 15, 2012 to March 15, 2012. Any
comments are maintained by the Housing and Economic Development Department in accordance
with federal regulations.
This development is located in COUNCIL DISTRICT 2.
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 017206461180
$300,000.00
Submitted for City Manager's Office bv:
Originating Department Head:
Additional Information Contact:
FROM Fund/Account/Centers
GR76 539120 017206461990
Fernando Costa (6122)
Jay Chapa (5804)
Cynthia Garcia (8187)
$300,000.00
Avis F. Chaisson (6342)
ATTACHMENTS
HarmonVillasCouncilMap.pdf
LIHTC Harmon Villas Resolution 3-20-1 (2).doc