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Home My WebLink AboutContract 44564-A4 (2),� . -�,� � ��.ca��,r��a SEP 2 � 20�5 F (��jV I]'," I ;?.,.�� hi,,, , �� e�r��,� � , � �� JRTH AM�NDMENT TO CITY SECRETARY CONTRACT NO. 44564 .,� ;,�, �i ,' �IEREAS, on June 20, 2013, the City of Fort Worth ("City") and Tanant County �... Hous�`�,aPartnership, Inc. ("Developer") made and entered into City Secretary Contract No. r- :._:_. F' ��3$4 (the "Contract"), as authorized by the City Council in M&C C- 24714 which provided City HOME funds for the development of 3 single family houses in the Hillside-Morningside neighborhood; 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 through the HOME Investment Partnerships Program, Catalog of Federal Domestic Assistance No. 14.239; WHEREAS, Developer is qualified as a Community Housing Development Organization or "CHDO" under the HOME Regulations; WHEREAS, Developer requested HOME CHDO funds for the construction of a single family house located at 1246 E. Jefferson to be sold to HOME Eligible Buyers under the terms and conditions set forth in the Contract; �"� � � v WHEREAS, City and Developet• eYecuted the First Amendment to the Contract to eYtend the Completion Deadline and increase the construction budget for the house; WHEREAS, once the house was completed, the amount of the Developer Fee could be determined and City and Developer executed the Second Amendment to the Contract to amend the definition of HOME Funds to clarify that it included the sum necessary for payment of the Developer Fee; WHEREAS; City and Developer eYecuted the Third Amendment to the Contract after the house was sold to a HOME Eligible Buyer to amend the construction budget to reflect the final eYpenses for the project, including the actual amounts of each line item and the actual amounts of the seller-paid closing costs as shown on the HUD-1 Settlement Statement; WHEREAS, Developer incurred additional eligible expenses for the development of the house that were not previously included in the Budget, and has requested an amendment to the phase deadlines in Eshibit "B" — Project and Reimbursement Schedule Revised 2/2015 and the line item amounts listed in Exhibit "C" -- Budget Revised 2/2015 to allow payment of development eYpenses not previously included; WHEREAS, City paid Developer 10% of the seller-paid closing costs as well as 10% of the eligible project i•elated development costs as Developei° Fee but this amount was not included in the amended definition of HOME Funds; and WHEREAS, it is the mutual desire of City and Developer to amend the Contract to , __ - complete the project and meet Contract objectiva''s. � I� �i� �� ' � ;�,�1��11�16�ti �;,��i::�;u;I�UG�� CI'PX Si��EiA6�� T'. VIIORT6�1, 7'� CONTRACT AMENDMENT 4 to CSC No. 44564 Page 1 Tarrant County Housing Partnership, Inc. — 1246 E. Jefferson Rev. 09/2015 NOW THEREFORE, City and Developer hereby agree as follows: I. Section 2. DEFINITIONS is amended to be and read as follows: "HOME Funds" means the HOME Program grant funds supplied by City to Developer under the terms of this Contract, not to exceed $162,140.96, which includes the costs set forth in Exhibit "C" — Budget and the Developer Fee. II. Exhibit "B" — Project and Reimbursement Schedule Revised 2/2015 and Exhibit "C" — Budget Revised 2/2015 attached to the Contract are hereby replaced with Exhibit "B" — Project and Reimbursement Schedule Revised 9/2015 and Exhibit "C" — Budget Revised 9/2015 attached hereto. III. This Amendment is effective as of the Effective Date of the Contract. IVa All other terms and conditions of City Secretary Contract No. 44564 not amended herein remain unaffected and in full force and effect, are binding upon the Parties, and are hereby ratified by the Parties. Capitalized terms not defined herein shall have meanings assigned to them in the Contract. [SIGNATURES APPEAR ON FOLLOWING PAGE] CONTRACT AMENDMENT 4 to CSC No. 44564 Page 2 Tarrant County Housing Partnership, Inc. — 1246 E, Jefferson Rev. 09/2015 ACCEPTED AND AGRE��JR ATTEST: r�`� �'o� CITY OF FORT WORTH ��- �� $ � �_ � , By: City Secre �� o�° � Fernando Costa, Assistant City Manager M&C C-2 14 Date: ,4��f��a� -��-�,�� APPROVED AS TO FO AND LEGALITY: ��,c., � , 1��- Vicki S. Ganske, Senior Assistant City Attorney TARRANT COUNTY HOUSING P RTNERS P, a TeYas n-pro t corporation By: o a V es , resi ent OFFICIAL RECORD CITY S6CRETARx FT. WAR'1'H, T� CONTRACT AMENDMENT 4 to CSC No. 44564 Page 3 Tarrant County Housing Partnership, Inc. — 1246 E. Jefferson Rev. 09/2015 EXHIBIT "B" PROJECT AND REIMBURSEMENT SCHEDULE REVISED 9/2015 TARRANT COUNTY HOUSING PARTNERSHIP,INC. 1246 E. Jefferson Phase Activity Beginning Weelc— subject to weather ermittina PHASE I ACTIVITIES; Contract signed Land and/or Buiiding Acquisition Survey PHASE I DEADLINE: $9,240.14 Au ust 7, 2013 lst Pa mentx PHASE II ACTIVIITES: Site Preparation Architectural & Engineering Fees Landscaping Construction costs PHASE II DEADLINE: 2"� paymentY $2,28092* Se tember 18, 2013 PHASE III ACTNIITES: Site Preparation Architectural & Engineering Fees Construction Costs & Fence Utility hookup/Impact fees u PHASE III DEADLINE: 3'�`� Payment* $33,800.76* June 30, 2014 PHASE N ACTNIITES: Construction costs Utility hookup/Impact fees PHASE N DEADLINE: 4t'' paymentY $15,364.67X Au ust 30, 2014 PHASE V ACTNITIES: Utility hookup/Impact fees Architectural & Engineering Fees Landscaping Construction Costs & Fence PHASE V DEADLINE: FINAL PAYMENTY $26.127.36* Jul 30, 2015 CONSTRUCTION TOTAL $146,813.85 Paid after closin of sale to HOME DEVELOPERFEE** Eligibe Bu er $15,327.11YY *Developer will be reimbursed for eligible e;cpenses only. The amounts are estimates and are subject to change. **10% of roject related develo ment costs as sho�vn on Eshibit "C" - Budget. CONTRACT AMENDMENT 4 to CSC No. 44564 Page 4 Tairant County Housing Partnership, Inc. — 1246 E. Jeffeison Rev. 09/201 S EXHIBIT "C" BUDGET REVISED 9/2015 TARR�NT COUNTY HOUSING PARTNERSHIP, INC. 1246 E. JEFFERSON HOME Funds for Project Related Development Costs: $146,813.85 Developer Fee*: � 15,327.11 TOTAL HOME FUNDS: $162,140.96 Development Budget Use of Funds Source of Funds Predevelopment Cost HOME $ OTH�R $ SOURCE OF OTHER TOTAL $ FUNDS FUNDS FUNDS FUNDS (1) (2) (Names) (1+2) 1. Market Stud 2. Feasibility (i.e.: preliminary work write-u , cost estimates, design) 3. Other Total Predevelo ment Cost 1+2=3 DeVelo ment Cost 4. Land and/or building ac uisition 8,140.14 8,140.14 5. Site Pre aration 5,990 5,990 6. Construction Cost 128,032.39 128,032.39 7. Fence 8. Landsca e 750.00 750.00 9. Contingenc 10. Appraisal 11. Architect & Engineering Fees 2,140.90 2,140.90 12. Construction Management Fee / Develo er Fee 13. Consh�uction Loan Interest 14. Pro erty Surve 1,300.00 350.00** Proceeds of Sale** 1,650.00 15. Legal Fees 150.50** Proceeds of Sale** 150.50 16. Real Estate Fees 4,996.00.00** Proceeds of Sale** 4,996.00.00** 17. Utili Hooku /Im act Fees 460.42 460.42 18. Title and Recording Fees 960.80** Proceeds of Sale** 960.80** 19. Construction Management 20. Bond Fees Total Development Cost (Total of items 146,813.85 6,457.30 153,271.15 4-20 Total Cost 146,813.85 6,457.30 153,271.15 *Developer Fee shall be paid from HOME Funds by invoice after the closing of the sale of the house to a HOME Eligible Buyer. The Developer Fee consists of 10% of the project related development costs. �*Seller-paid closing costs as shown on the HUD-1 Settlement Statement paid from gross sales proceeds from the sale of the house. CONTRACT AMENDMENT 4 to CSC No. 44564 Page 5 Tarrant County Housing Partnership, Inc. — 1246 E.leffeison Rev. 09/2015 M&C Review • � � � Page 1 of 3 Official site of the City of Fort Worth, Texas FURT V�f(lRTli COUNCI� ACTION: Approved on 1/25/2011 DATE: •� 1/25/2011 REFERENCE G24714 LOG NAME: 17TCHP- NO.: HILLSIDE\MORNINGSIDE NON- PUBLIC C TYPE: CONSENT HEARING: NO SUBJECT: Authorize a Change in Use and Expenditure of $381,931.00 of HOME Investment Partnerships Program Grant Funds to Tarrant County Housing Partnership, Inc., for the Development of Three Single Family Houses in the Hillside-Morningside Neighborhood, Authorize the Execution of Conditional Commitment and Contract and Authorize a Substantial Amendment to the City's 2010-2011 Action Plan (COUNCIL DISTRICT 8) 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 commitment, disbursement and expenditure deadlines for grant funds from the United States Department of Housing and Urban Development; 3. Authorize a change in use and expenditure of $381,931.00 in HOME Investment Partnerships Program Grant funds to Tarrant County Housing Partnership, Inc., a certified Community Housing Development Organization, for the development of three single family houses in the Hillside- Morningside neighborhood; 4. Authorize the City Manager, or his designee, to execute a conditional commitment with Tarrant County Housing Partnership, Inc., that conditions funding, among other things, on satisfactory completion of HOME requirements; 5. Authorize the City Manager, or his designee, to execute a Contract with the Tarrant County Housing Partnership, Inc., for the project for a three year term beginning on the date of execution of the contract; 6. Authorize the City Manager, or his designee, to extend or renew the conditional commitment or the contract if Tarrant County Housing Partnership, Inc., requests a written extension and such extension is necessary for completion of the project; and 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 project and in compliance with City policies and applicable laws and regulations governing the use of federal grant funds. DISCUSSION: On October 14, 2010, the City issued a Request for Proposals (RFP) for certified Community Housing Development Organizations (CHDO) to award and expend up to $1,261,931.00 of HOME Investment Partnerships Program Grant funds. On November 18, 2010, the Tarrant County Housing Partnership, Inc., (TCNP) submitted a response requesting $617,884.00 of the available HOME funds http://apps.cfwnet.org/council�acket/mc_review.asp?ID=14661 &councildate=l /25/2011 9/18/2015 M&C Review Page 2 of 3 to acquire seventeen sites on which it proposed to construct single family houses. The request also included funds for related CHDO operating expenses. City staff reviewed all RFP submissions and recommended the award to TCHP of $381,931.00 in HOME funds to the Community Development Council (CDC) at its meeting held on December 1, 2010. The CDC agreed with staffs funding recommendation for the project. Up to $50,000.00 of the awarded funds will be used for operating expenses and $331,931.00 for construction of three houses and other development expenses. TCHP plans to develop three single family houses to be located in the Hillside-Morningside neighborhood. There are three floor plan options available and all houses will be at a minimum 1250 square feet with three bedrooms, two baths and a rear detached garage. The houses will be sold to an individual or family that earns 80 percent or less of Area Median Income as determined by the United States Department of Housing and Urban Development (HUD). Buyers must meet all HOME Program requirements including applying for and receiving at least $1,000.00 in down payment and/or closing cost assistance from the City's Homebuyer Assistance Program and occupying the house as their primary residence for five years. City staff recommends the followinq Contract terms: i. Construction must begin within six months of date of Contract execution; ii. TCHP's performance under the Contract and use of the HOME funds will be secured by a recorded Deed of Trust; iii. Houses must be sold to a HOME eligible buyer; and iv. Proceeds from the sale of houses must be used to construct additional houses for a HOME eligible buyer and construction of Proceeds houses must occur within the three year contract term. The expenditure of HOME funds is conditioned upon the following: i. Satisfactory completion of the environmental review per 24 CFR Part 58, and ii. Authorization to use grant funds from HUD. City staff recommends the change in use and expenditure up to $381,931.00 in HOME funds for the project to benefit low and very low income citizens by providing affordable housing. A public comment period on the change in use of these HOME funds was held from December 16, 2010 to January 20, 2011. 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/CERTIFICATION: The Financial Management Services Director certifies that funds are available in the current operating budget, as appropriated, of the Grants Fund. TO Fund/AccountlCenters GR76 539120 017206461XXX $150,000.00 GR76 539120 017206461XXX $231,931.00 FROM Fund/AccountlCenters GR76 539120 017206461030 $150,000.00 GR76 539120 017206461040 $231,931.00 Submitted for City Manager's Office bv: Originating Department Head: Additional Information Contact: Susan Alanis (8180) Jay Chapa (5804) Cynthia Garcia (8187) http://apps.cfwnet.org/council�acket/mc_review. asp?ID=14661 &councildate=l /25/2011 9/ 18/2015 M&C Review Avis F. Chaisson (6342) ATTACHMENTS Page 3 of 3 http://apps. cfwnet. org/council�acicet/mc_review. asp?ID=14661 &councildate=l /25/2011 9/ 18/2015