HomeMy WebLinkAboutContract 52527-A1 CSC No.52527-A1
AMENDMET NO. 1
TO
CITY OF FORT WORTH CONTRACT 52527
This Amendment is entered into by and between the City of Fort Worth (hereafter
"City'), a home rule municipality, with its principal place of business at 200 Texas Street, Fort
Worth, Texas, and Housing Channel (hereafter 'Developer") a Texas Community Housing
Development Corporation ("CHDO"). City and Developer shall be referred to individually as a
Party and collectively as the Parties.
WHEREAS, on July 16, 2019, the Parties entered into City Secretary Contract 52527
for Developer to use Home Investment Partnerships Program grant ("HOME") funds to construct
a single-family, affordable home at 2612 LaSalle Street to sell to eligible buyers ("Contract"); and
WHEREAS,the Contract did not include provisions necessary to address policy changes
related to its CHDO policy and use of CHDO proceeds from the sale homes constructed using
HOME funds;
WHEREAS,it was agreed by the parties that the new policy would apply to this Contract
to carry out the City's goals and DeveIoper's mission;
WHEREAS, budget line items and the reimbursement schedule require a final revision
to reconcile the remaining HOME Funds to more accurately reflect actual spending; and
WHEREAS, the Parties wish to amend the Contract to include the necessary provisions
to address the use of CHDO proceeds by Developer in accordance with the City's CHDO policy.
NOW, THEREFORE, the Parties, acting herein by the through their duly authorized
representatives, enter into the following agreement:
1.
AMENDMENTS
A. Section 4.4 shall be amended and replaced to read as follows:
4.4 Provide HOME Funds
City shall provide up to $90,896.31 of HOME Funds in the form of the HOME Loan for the
eligible expenses for the development of the house under the terms and conditions described
herein.
B. Section 7.9.1 shall be amended and replaced to read 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 Infrll Development, and with a
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
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 beep 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.
C. Changes to Exhibit B and Exhibit C:
The Budget shown on EXHIBIT "B" —BUDGET and the Reimbursement Schedule shown on
EXHIBIT "C" — PROJECT AND REIMBURSENICNT SCHEDULE of the Contract are hereby
replaced by EXHIBIT "B" — BUDGET Revised 02/2021 and EXHIBIT "C" PROJECT AND
REIMBURSEMENT SCUMULE Revised 0212021 attached hereto,and deemed effective as of July 16,
2019.
2.
ALL OTHER TERMS SHALL REMAIN THE SAME
All other provisions of the Contract which are not expressly amended herein shall remain
in full force and effect.
3.
ELECTRONIC SIGNATURE
This Amendment and Extension may be executed in multiple counterparts, each of
which shall be an original and all of which shall constitute one and the same instrument.
A facsimile copy or computer image, such as a PDF or tiff image, or a signature, shall be
treated as and shall have the same effect as anoriginal.
(Signature page follows)
ACCEPTED AND AGREED:
CITY OF FORT WORTH:
CONTRACT COMPLIANCE MANAGER:
By signing I acknowledge that I am the person
1 C'r— responsible for the monitoring and administration
13y.- Fernando Costa(Feb 26,202112:53 CST) of this contract, including ensuring all
��''JJ Name: Fernando Costa performance and reporting requirements.
Title: Assistant City Manager
Date: Feb 26,2021
By: Chad La oque(Feb 26,202109:52 CST)
APPROVAL RECOMLVVEIENDED: Name: Chad LaRoque
Title: Housing Development Manger
By: APPROVED AS TO FORM AND LEGALITY:
Name: Victor Turner
Title: Director of Neighborhood Services
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ATTEST- ��o°°° °o'- - d By: Jo Pate(Fe 2 , 02112:50 CST)
ado optd Name: Jo Ann Pate
ago o=o Title: Assistant City Attorney
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BY; CONTRACT AUTHORIZATION:
Name: Mary J. Kayser M&C: C-29138
Title: City Secretary
Developer:
Donna VanNess(Feb 23,2021 15:37 CST)
Name: Donna VanNess
Title: President
Date: Feb 23,2021
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
EXIMff"B"
BUDGET
HOUSING CHANNEL
2612 La Salle
Total Cost: $224,602.31
Project HOME Funds Awarded: $90,896.31
HOME Funds will be paid only as reimbursement for eligible expenses.
Development Budget
Use of Funds Source of Funds
Predevelopment Cost HOME OTHER$ SOURCEOFOTHER TOTAL$
FUNDS FUNDS FUNDS FUNDS
(1) (2) (Names) 0+2)
1.Market Study 500
2.Feasibility (i.e.:preliminary work write-
up,cost estimates,design,bond,
Environmental Studies) 3,560
3.Other
Total Predevelopment Cost(1+2-3) 4,060 4,060
Development Cost
4.Land and/or building acquisition 18,176.54 18,176.54
5. Soft Costs Utilities,Security,etc.) 3,102.46 3,102.46
6.Construction Cost Commercial lender—
30,600 122,400 Happy State Bank 153,000
7.Fence
8.Landscape
9.Contingency
10.Appraisal 150 Sales proceeds 150
11.Architect&Engineering Fees 173 173
12.Construction Management Fee/
Developer Fee
13.Construction Loan Interest 5,661.36 5,661.36
14.Property Survey
15.Legal Fees
16.Real Estate Fees 10,800 Sales proceeds 10,800
17.Utility Hookup/Impact Fees
18.Title&Recording Fees 183 Sales proceeds 183
19.Program and Related Exp enses
20.Construction Management
21.Bond Fees
Total Development Cost 61,600.36 133,706 195,306.36
22.Developer Fee(15%of Total
Development Costs) 29,295.95 29,295.95
Total Cost 90,896.31 1 133,706 224,602.31
CHDO SINGLE FAMILY CONTRACT
Riverside Infill Project
Housing Channel—2612 La Salle Street Rev01/14/2021
EXIMIT"C'
PROJECT AND REIMBURSEMENT SCHEDULE
HOUSING CHANNEL
2612 La Salle Street
Please Activity Beginning Week--subject to
weather permitting
PHASE I ACTIVITIES: Contract signed
Land and/or Building Acquisition
PHASE I DEADLINE:
11/5/19 lstpa ent* �18,176.54
PHASE II ACTIVATES: Site Preparation
Architectural&Engineering Fees
Appraisal,Bond,Market Study
Construction costs
PHASE If DEADLINE: 1st Payment* $34,160
11/5119
PHASE III A CTIVIITES: Construction costs
Soft costs (utilities,security)
PHASE III DEADLINE: 2,,d Payment* $5,621.86
9/18120
PHASENACTIVIITES: Construction loan interest
Soft costs (utilities,security)
PHASE IV DEADLINE: FINAI,PAYMENT** $3,641.96
02/28/21
CONSTRUCTION TOTAL $61,600.36
Paid after clos ing of s ale to HOME
DEVELOPER FEE $29,295.95
Eligible Buyer per Section 7.8*
*Developer will be reimbursed for eligible expenses only. All amounts are estimates and are subject to change.
'*Exhibit"G"-HONM Project Compliance Report must be submitted prior to reimbursement fur Construction Final Payment,
Construction Final Payment will not be made alter closing ofsale to the Eligible HOME Buyer.
CHDO SINGLE, FAMILY CONTRACT
Riverside Street Int"ill Project
Housing Channel—2612 La Salle Street Rev 01/14/2021
M&C Review
Official site of tile CTV of Fort Worth,Texas
CITY COUNCIL AGENDA ! SORT WORTh
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 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)
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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 followinci HOME contract and HOME oan 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 there 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 INFORMATIONICERTiFICATION:
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 I I ID Year I (Chartfield 2)
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M&C Review
FROM
Fund Department Account Project Program I Activity I Budget Reference# Amount
ID I I ID ' Year I (Chartfield 2)
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Sonia Singleton (5774)
Additional Information Contact; Chad LaRoaue (2661)
Diana Carranza (7369)
ATTACHMENTS
Combined Riverside Ma s. df
Form 1295 Certificate Housing Channel Riverside_Redacted.pdf
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