HomeMy WebLinkAboutContract 41957-A2 C SSCRETARY
CONTRACT NOW, ia
SECOND AMENDMENT TO
CITY SECRE 1 RY CONTRACT a 419i5'7
WHEREAS, on March 3 1,201 f the City of Fort Worth ("City") and Terrell Homes,,
Ltd. ("Developer") made and entered into City Secretary Contract :lea. 419157 the
"Contract") as authorized by C C-24289, adopted by the City Council an June 22,
2! 1 C, which provided $900,000.00 of City's HOME funds to Developer for the development
of the Terrell 'Homes es in.fill housing project (the project)-,
WHEREAS, an June 30,, 2 11, Developer eloper executed a Deed of Trust Security
Agreement-Financing Statement "Deed of Trust" that secured $900,0001.00 of City's HOME
funds for the project;
WHEREAS, the Contract provided funding 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. 1". -013-MC-4 -+ 204,
Catalog, of Federal Domestic Assistance ("CFDA"') No. 14.239, with which the City desires to
promote activities that expand the supply of affordabile housing and the development of
partnerships among the City, local governments, local lenders, private industry and
neighborhood based nonprofit housing organizations
WHEREAS, Developer received an award of Low Income .dousing Tax
Credits "LIHTC ") from tbue Texas, Department of' Housing and Community unity A.ffair
("TDHCA") for the pro-eet to finance, along with the City's HOME, funds, the construction of
single-family rental units located on scattered lots in the Historic Terrell. Heights
Neighborhood;
WHEREAS, the Contract provided to Developer and the Deed of Trust secured
City HOME funds for project costs for the project, which will provide a minimum of 51
HOME- assisted waits ("HOME Units" to low and moderate income e tenants for a 2 -year
Affordability period;
WHEREAS, the City Council authorized the City Manager or his designee to amend
the Contract or Deed of Trust, if necessary, to achieve project goals provided the
a mendment is within the scope of the original project and in compliance with applicable
laws and regulations
WHEREAS, the First Amendment to City Secretary Contract No 41 957 and Deed of
Trust was executed on, December 8, 2011 to am.end the Contract to, among other things, change
certain definitions, amend exhibits,, address consent and notice requirements, fix typographical
errors, and to amend the Deed of Trust; and
WHEREAS, it is the mutual.l desire of the City and Developer to include a budget
revision that will increase the hard constructions ns costs and decrease the remaining soft costs. The
OFFICIAL RECORD ,
CITY SECREITARY
RECEIVED APR no WORTH9 TX
NIN
budget revision is within the approved contract amount and is necessary to reimburse the final
invoice to the contractor for HOME-eligible expenditures,
NOW, THEREFORE, City, acting by and through Fernando Costa, its duly
authorized Assistant City Manager, and Developer, acting by and through Jesus J. Chapa, Its
duly author z signatory agent, do hereby agree as follows:
A. Exhibit "'B"',. HOME Funds Budget in Exhibit "'B"' Revised Budget attached to the
Contract 'is hereby replaced with the Revised HOME Funds Budget to Exhibit "'B"
Revised Budget attached hereto, for the purpose of increasing Hard Construction Costs, and
decreas,ing Soft Costs.
B. All other terms and conditions of the Contract remain unaffected and in full force and effect,
are binding on t. e parties and are hereby ratified by the City and 'Developer.
[SIGNATURES APPEAR ON FOLLOWING, AGE1
fN WITNESS WHEREOF, 'the .Parties have executed four copi es f t "s �lttract..
Amend ent n Fort Worth, Tarrant County, Texas, this day of
2013. onr
ATTEST ITY OF FORT WORT
Fernando Costaµ
Cdr "
Ny Secretiv/
Assistant City Manager
M&C C-24289 Date:
AID ROVED AS TO FORM ANDL TY
r .
Leann D. Guzman,
Senior Assistant City Attorney
TERRELL HOMES LTD,.
By.- Terrell Holmes GP, LL C, its general partner,
By. Pert Worth Housing Finance Corporation'.
FOFFIC"I"I"AL RECORD
its sole member
CITY SECRETARY
no WORTIH, TX I By: �Jesus J. Chapa,
Assistant General Manager
STATE F TEXAS
COUNTY OF TARRANT § A w '
This instrument was acknowledged before me on /-�Prl 2013 ern n o Costa" t a the � � �rth.Assistant ana er
ONIA IELS
My COMMISSION EXPIRE
jujy M tary Public State of Texas
STATE OF TEXAS
COUNTY OF TARRANT
This instrument was acknowledged before me can 2 1.3 y Jesus J. Chap,,
Assistant General Manager of the Fort Worth H:0L1 n Finance Corporation, a texas non-profit
corporation, on behalf of said corporation, as sole member of Terrell .tomes GP, LL C, a Texas limited
liability company, general. partner of Terrell 1 c mes, Ltd., a Texas limited ted partnership, acting can behalf of
such limited partn rsh i P.
Notary Public Sta Texas
MY COMMISSION EXPIRES
Nomnber 5,2016
i�
B Terrell
Priority of Construction or Rehab. Permanent Loan Stage
r Funding i � Financing 1r
Conventional !�« n lip, ��U $Z0001000 Sterfing Bank..........Conventional
I► 1�
................................. RBiC CapitalI
HTC Syndication Proceeds $940,499 $914�O4�,191901 Markets
Housing Triust Fund
Mol Bonds
i i o iii i i
� �
� �
i
Syndication�/ �
�j
Historic Tax *
+
Proceeds
USDA]TXRD Loan(s) . .......
Other Federal Loan or Grant
Other A
State
Local Government r of oWorth
Private
Cash EquiV
In-Kind Equity/Defbrred Terrell Homes,
Developer r
Reserves Operating
i lull riooN�r�q�
IM
SOURCES
OF FUNDS 121309,976
�TOTAL � ,. ��•11�i� i��ill��r e ���yl'ail
USES OF
$12,309,976
Acquisition
Hard Construction
Soft i '
..MI 1 $900,0 00
City of Fort W Texas
Mayor a Counci'l
1':'A'111;1110011
. ..........
COU'NICIL ACTION: Approved on /22/'211010
DATE: Tuesday, June 22, 2010 REFERENCE No.: c-24289
LOG NAME: 17N RP-TERRELL HEIGHTS
SUBJECT:
Authorize a change in Use and Expendiitu�rel of$900,000.,00 of HOMI E Investment partnerships Program
Grant Funds to Terrell i Home 1, Ltd., in the Form of a subordinate Forgivable Loan for single Family Rental
Housing for the Terrell Heights Neiigihborhood Infill Program, Authorize the Execution of a Conditional
Commitment and contract and Authorize a substantial Amenldment to the Clity's 2002-2003, 2004-20015l7
20051-200 alnd�� 2,1006-2,007 Action Plans(COUNCIL DISTRICT 8)
RECOMMENDATION:
It is recommended that the city council:
1. Authorize al substantial Amendment to the city's 200 2-2003, 210014-20057 201015-2006 and 200 6-2007
Action Plants;
2. Authorize the city Manager, or his designee,, to substitute funding years in order to, meet commitment,
disbursement and expenditure deadlines for grant funds from the United states Department,of Holusing
and Urban Delveiiopment;
3. Authorize a change in use and expenditure of 900,000.010 in prior year's HOME Investment
Partnerships Program Grant fund's to Terrell Homes II, Ltd., in the form of a subordinate forgivable loan)for
single famlily rental housing development for the Terrell Heights Neighborhood Infill Program;
4. Authorize the city anager, or his designee, to execute a conditional comnrritment with Terrell i homes 1,
Ltd., fora twenty yearsubordnate forgivable loan that conditions loan funding, among oherthings, on
i
satisfactory completion of HOME requirements;
5. Authorize the City Manager, or his designee, to execute a contract and any necessary related
documents with Terrell Homes 1, Ltd., for the project for a two year term beginning on the date of the
execution of the contract;
6. Authorize the city Manager, or his designee, to,extend or renew the conditional commitment or the
contract for up to one year if Terrell Homes 1, Ltd., requests an extension and such extension its necessary
for completion of the project; and
7. Authorize the city Ml anager, or his designee, to amend the conditional commitmenit or the contract if
necessary to achieve project goals provided that the amendment is within the scope of the project and in
complliance with pity policies and arpplicabile laws and regulations governing the use of federal grant
funds.
DISCUSSION:
On October 7'�, 200119, the city issued al Request for Proposals,(RFP)for developers to award and expend
$2,,6001,000.00 of HOME Investment Partnerships program Grant funds by May 1, 2012. on November 5,
20099 NIRP Holdings, LLC, (NRP) submitted a response requesting $815,000.00 of the available HOME
funds for the develiopment of single family rental houses in the Terrell Heights neighborhood. As part of
the financing for the project, NRP has applied for Lour Income Housing Tax credits(LIHITC)from the
rnhtml: le:1/:\Projccts\Project F lcs\HOME Projects\Terre lHomcs-NR-P\M&C,—HO,MEF'... 3115/201
Texas Department of Housing and Community Affairs(TDHCA)�., NRIP also entered into negotiations with
'the Fort Worth Housing Finance Corporation (FWHF'C,)for its participation in the project,. On, February 2,,
2010,the Board of the FWH'FC, approved a Memorandum ofUnderstanding (MOU)with NRP for the,
development of approxim�a�tely 514, single family rental houses as, part of the Terrell Heights Neighborhood
Infill Program. In accordance with the MO,U�,, Terrell Homes, I,, Ltd., will own the rental properl"i�es., 'The
FWHFC will form a single asset,entity that will become,the siolle general partner of the partnership.,
i I u�
City staffreviewed all RFP1 submissions and recommends the award of$9,010,0010.00 in HOME f to
Terrell Homes 1,1 Ltd., in the form of a 20 year subordinate forgivable loan for the project. The proj I ect
coins,ists olf'th�e acqu�ilsi�tion of'54 lots on which three and four bedroom single family rental houses will be
co�nsitru�cted�. The houses wi�ll be available for rent to households eaming at or below 60 percent of'Are�a
Median Income as determined by the United States Department of Housing and Urban Development
(HUD). The houses will remain rental units,for 15 years.At year 16, the resident occupying the house has
the option to purchase it for the outstanding debt against the property. For the first 15 years, residents will
be given education in home maintenance and financial planning. If the resident does not desire to
purchase the property, the partnership will continue to own and manage it. The $900,000.00 in City, HOME
funds will produce five HOM E-assistedi ur its. The award of HOME funds are contingent on the award of'
the LIHTC. Total project cost has been estimated to be$11,641,895.,100,.
Staff re�comm�ends the foilowing loan terms:
W, I -assisted units with a 20 year Affordability Period-
I Five HOME
11 Non-Interest,bearing loan,
i1i. Loan forgiven after 20 yearAffordability Period expires-� and
iv. Contract performance and use of HOME funds secured by a recorded Deed of Trust on the real
property'.
The exRenditure of HOME,funds is cond''itioned ugon the fol1owing.
i. Award of LIHTC;
il�. Satisfactory completion of environmental review per 24 CFR Part 58,
iii. Authorization to u1se grant funids from HUD; and
ilv. Receipt of funding for the HUD grant funding year.
C,ity staff recommends the change in use and expenditure of$9,00,000.00 in prior year�'s H�OME,funds for
the project in order to benefit low and very low income citizens by providing them with affordable housing.
A public comment period on the change in use of the HOM'E funds was held from May 6, 201�O�, to Ju�ne 5,
2010. Any comments,are maintained by the Housing and Economic Development Department in:
accordance with federal regulations.
This, project is, located in COUNCIL DISTRICT 8.
FISCAL INFORMATION /CERTIFICAT,10N.,
The Financial Management Services Director certifies,that funds are avallable in the current operating
budget,, as appropriated,, of the Grants, Fund.
FUND CENTERS,-.,
TO Fund/Accouint/Centers FROM Fu�nd/Account/'Centers
GlR7'6 51319120 010520617722710 $121 11657.00 IGR76 51319,120, 00520677222,10 $1211,,6,57.�00
GR76 5391201 00,5206141�270 $1571782-00 GiR76 539120 005206141260 $157,782.00
G!R76 539120 1005206930,270 �$57'5,9159.41 GR7'6 5391�20 005206930990 $57511,959.�41
GR76 539120 005206,006270 $441601-59 GR76 5.391:210 005206006990 $44,601,59
CERTIFICATIONS,:
Submitted for�Ci!y Manager's Offi�c Thomas Higgins (6192)
mhtml-.file-./[U-.\Proi ects\PrQl ect Files\HOME Projects,\Teffe�ItHome�s—NRP\M&C—HO�MEF.,.. 3/1512013
Origingfim, Department Head: Jay Chapa (5804)
Additional hiformation Contact: Ryan Haden (7329)
ATTACHMENTS
1. 'Available F'unds.PDF (CFW Internal)
2. Terrell Hek- hts Ellevations and Nei ghorny Public)
mhtrril-file-./[U-,\Proi j —NRP\M&C—HOMEF... 3/15/2013