HomeMy WebLinkAboutContract 42289-A1 CITY SECRETAW
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FIRST AMENDMENT TO CITY SECRETARY CONTRACT NO. 42289
WHEREAS the City of Fort Worth ("City") and Tarrant County Housing
Partnership, Inc. ("Developer") made and entered into City Secretary Contract No.
42289 (collectively with all previous amendments, the "Contract");
WHEREAS, the Contract provides funding to Developer pursuant to a grant
received by City from the United States Department of Housing and Urban Development
("HUD") through the HOME Investment Partnerships Program ("HOME"), Program No.
M-09-MC-480204 Catalog of Federal Domestic Assistance No. 14.239;
WHEREAS, in Section 4.1 of the Contract, the City agrees to loan the Developer
up to One Million and 00/100 Dollars ($1,000,000.00) in HOME funds in the form of a
subordinate loan to complete the construction of the Required Improvements, under the
terms and conditions described in the Contract ; and
WHEREAS, HUD notified the City that available HOME Community Housing
Development Organization (CHDO) Reservation funds from 1998 must be committed
and expended for a HOME project or the City will lose the funds.
WHEREAS, Developer has is in need of additional HOME funds to finish out the
Required Improvements in the Contract; and
WHEREAS, City has agreed to provide an additional Nineteen Thousand Five
Hundred Twenty Six and 51/100 Dollars ($19,526.51) to the Loan for rehabilitation
costs; and
NOW, THEREFORE, City and Developer hereby agree as follows:
1.
a. Section 4.1 is deleted in its entirety and replaced with the following:
City shall loan up to One Million Nineteen Thousand Five Hundred Twenty Six
and 51/100 Dollars (51,019,526.51) of HOME Funds in the form of a subordinate loan to
complete the construction of the Required Improvements, under the terms and conditions
described herein (the "Loan").
b. Exhibit "B" — Sources and Uses attached to the Contract is hereby
replaced with the attached Exhibit"B"—Sources and Uses Revised 1/2013
C. This amendment is effective as of the Effective Date of the Contract.
All terms and conditions of the Contract not amended herei -re, a#,VA
at!
and in full force and effect, are binding on the Parties and are her 19 ati"M Mm
Parties.
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Amendment No. I to CSC 42289
0, 13 1" , �15 p N
TCHP-Beaty St. Apartments (HOME)
ACCEPTED AND AGREED:
TARRANT COUNT HOUSING CITY OF FORT WORTH
PARTNERSHIP, INC.
By: By:
D on
�n ess Fernando Costa,
President/CEO Assistant City Manager
ATTEST: APPROVED AS TO FORM AND LEGALITY-
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City Secretary Assistant i�lity Mt6rn6y
M&C: C-25072 1�/7/1/6/2011
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OFFICIAL RECORD
CITY SECRETARY
FE, WORTH, TX
Amendment No. I to CSC 42289
TCHP-Beaty St. Apartments (HOME)
EXHIBIT "B"
Sources and Uses Revised 1/2013
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Acquisition $1,150,000 $11150,000
Acquisition - Insurance - property $20,000 $20,000
liability, builder's risk
Acquisition - Closing costs, $118,801 $118,801
extension/legal fees
Acquisition- Asbestos Survey $6,125 $6,125
Acquisition- Lead Base Paint $14,000 $14,000
Testing
Relocation Agent Fees $135,000 $135,000
Relocation Expenses (1 tenant) $15,000 $15,000
Architectural $8,360 $8,360
Rehab $208,341 $1,019,526.51 $248,750 $506,640 $1,983,257.51
Developer Fee 5%NSP* $84,988 $84,988
TOTAL $1,737,255 $190199526.51 $248,750 $530,000 $39535,531.51
*$50,000 of Developer Fee to be paid upon closing of Beaty Street property, and the remainder
to be paid when City has received from Developer all information required to close Project in
IDIS and begin the Affordability Period.
**Nothing in this Contract shall be construed as a commitment by the City to provide these
funds.
Amendment No. 1 to CSC 42289
TCHP-Beaty St. Apartments (HOME)
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 7/26/2011
DATE: Tuesday,July 26,2011 REFERENCE NO.: C-25072
LOG NAME: 17BEATY STREET APARTMENTS—ADDITIONAL CHDO FUNDING
SUBJECT:
Authorize Change in Use and Expenditure of$1,000,000.00 of HOME Investment Partnerships Program
Grant Funds to Tarrant County Housing Partnership, Inc., in the Form of a Subordinate Forgivable Loan for
the Beaty Street Apartments Located in the 5500 Block of Beaty Street, Authorize the Execution of a Contract
and Authorize Substitution of Funding Years(COUNCIL DISTRICT 8)
RECOMMENDATION,-
It is recommended that the City Council:
1. Authorize a change in use and expenditure of$1,000,000.00 in prior year's HOME Investment
Partnerships Program Grant funds to Tarrant County Housing Partnership, Inc. in the form of a subordinate
forgivable loan for the acquisition, rehabilitation and redevelopment of the Beaty Street Apartments located
in the 5500 block of Beaty Street;
2. Authorize the City Manager, or his designee, to execute a contract and any related documents for the
project with the Tarrant County Housing Partnership, Inc., for a two—year term beginning on the date of
execution of the contract;
3. Authorize the City Manager,or his designee, to extend or renew the contract for up to one year if Tarrant
County Housing Partnership, Inc. requests an extension and such extension is necessary for completion of the
project;
4. Authorize the City Manager,or his designee, to amend the contract if necessary to acheive 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; and
5. Authorize the City Manager to substitute funding years in order to meet commitment, disbursement, and
expenditure deadlines for grant funds from the United States Department of Housing and Urban
Development.
DISCUSSION:
On July 13, 2010, City Council approved a contract with Tarrant County Housing Partnership, Inc. (TCHP)
for$1,360,255.00 of the City's Neighborhood Stabilization Program (NSP)grant funds set aside for
households earning less than 50 percent of area median income (AMI) for the acquisition and redevelopment
of the Beaty Street Apartments located in the 5500 block of Beaty Street just north of Lancaster Avenue
(M&C C-24344). On September 14, 2010,City Council approved an addtional $339,500.00 of NSP funds
for the project for a total of$1,699,755.00 to be in the form of a subordinate forgivable loan (M&C
C-24455).The State is providing approximately$1.8 million of its NSP funds for the project and TCHP is
providing approximately $314,000.00 of its own funds for the project.
The project consists of the acquisition of 73 multifamily units to be rehabilitated and redeveloped into 64
units. The 64units will be in the 10 existing multifamily buildings and asingle family house located on the
site will he rehabilitated u/ serve as an office/community center for on—site enrichment programs such as
budget management classes, credit counseling,job skills, and resume building. Ibe project io now owned by
a lender after foreclosure and existing tenants will be relocated in accordance with Uniform Relocation Act
rcquinmento. The 64 apartment units will provide quality, affordable, accessible housing t* individuals and
families earning 5U percent ur less of/\N8l which will increase the total number uf very low income
households served bythe NS9.TC8P will develop,own, and manage the property,
State and City staff have reviewed the project's development costs and funding sources and the rents that will
be charged. Because NSPrequirex that the rents be affordable to families earning atorbelow 50 percent
AMI. Sta1e and City staff have identified a gap in the project's finances. Staff recommends awarding an
additional $1,000,000.00 in HOME Community Housing Development Organization (CHDO)Set—Aside
funds toTCD9.uoerdfiud CBDU for this project.The fund*can be used for acquisition, pzedeveiopmneot
costs, rehabilitation and redevelopment costs, ioc)udiog, among other things, making the project more
sustainable and energy efficient.
Stgarecommends the following contract and loan terms:
i. Units must be rented to tenants who earn utor below j8 percent o[&Ml;
ii. Secure performance and repayment of HOME funds in case of default with deed of trust;
iii. |5 year Affordability Period;
iv. Loan term ho run concurrently with Affordability Period;
v. Loan forgiven at end of Affordability Period if all HOME requirments and contract terms are met.
Tite caenditure Qf HOME funds is conditioned ugon the folio * -
i. Satisfactory completion ofmo environmental review per 24C9R Part 58; and
ii. Authorization touse grant funds from HUD.
Staff recommends the change in use and expenditure of$1,000,000.00 of HOME CHDO Set—Aside funds for
the project whicbbenehts1owundvery |ovvincnmocitizeombyprovidiog them with affordable housing. A
public comment period unthe change io use of these HOME funds was held from June 24, 20l} to July 23.
2011. Any comments are maintained by the Housing and Economic Development Department. The Action
p|uo funding years selected may vary and b*substituted based on the principle of first in. first out (FIFO) in
order,o spend oldest grant funds first.
This project iu located inC0Dh/C0L DISTRICT 8.
INFORMATION:FISCAL
The Financial Muuugerncmt Services Director certifies that funds are available io the current operating
budget, ua appropriated, o[the Grants Fund.
CENTERS:FUND
TO FuLld/Account/Centers FROM Fund/Account/Centers
GE76 539120 00520612850 $371.47 GR76 539120 005206129240 $371.47
GR76 539120 005206128500 �9,999.0 / GR76 539120 005206128160 $99,999.00
GR76 539120 005206698500 �0,745.27 GR76 539120 005206698460 $10�5.27
GR76 539120 005206772500 �4,997.00 GR76 539120 005206772460, �4,997.00
GR76 539120 005206846500 �5,000.00 GR76 539120 005206846280 �5,000.00
GR76 539120 005206846500 �5,000.00 GR76 539120 005206846270 S?5.000800
GR76 .539120 005206930500 S 16.059.65 GR76 539120 005206930210 $16.059.65
GR76 539120 005206930500 $39.735.83 GR76 539120 005206930220 $39,735.83
GR76 539120 005206930500 $2,376.k GR76 539120 005206930280 $2,376.86
GR76 539120 005206006500 $340.326.61 GR76 539120 005206006210 $340.326.61
GR76 539120 005206006500 $34.384.17 GR76 539120 005206006220 $34.384.17
GR76 539120 005206006500 $136.494.00 GR76 539120 005206006220 $136,494.00
GR76 539120 005206006500 %3 ,719.46 GR76 539120 005206006280 $36,719.46
GR76 539120 005206141500 $187.790.68 GR76 539120 005206141220 `6187.790.68
CERTIFICATIONS:
Submitted for City Manager's Office y: Susan Alanis (8180)
Originating Department Head: Jay Chapa (5804)
Additional Information Contact: Cynthia Garcia (8187)
Ryan Haden (7329)
ATTACHMENTS
1. Available Funds — Beaty Street Ap rte mentLpdf
2. Available Funds.odf
3. Beaty Street Apartments Mal cZ 1o(-.