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Home My WebLink AboutContract 44562-A1 (2)CITV S��YI�f COMT�1� �. ��i ��.4�2 ' I'�" � FIRST AMENDM�NT TO CITY SECR�TARY CONTRACT NO. 44562 WHEREAS, on June 20, 2013 the City of Fort Worth ("City") and Tarrant County Housing Partnership, Inc. ("Developer") made and entered into City Secretary Contract No. 44562 (the "Contract"), as author•ized by the City Council in M&C C- 24714 adopted on January 25, 2011 which provided $381,931.00 of City's HOME funds to Developer for the development and construction of 3 single family houses in the Hillside-Morningside neighborhood (the proj ect); 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 Developinent ("HUD") through the HOME Investment Partnership Pi•ogram, Catalog of Federal Domestic Assistance No. 14.239; WHEREAS, a portion of the City's HOME funds are reserved for the use of certain housing development entities that qualify under the HOME Regulations as a Community Housing Development Organization ("CHDO") and Developer is qualified as a CHDO under• the HOME Regulations; WHEREAS, Developer i•equested $117,043.00 of HOME CHDO funds for the construction of a single family house located at 1333 E. Jefferson to be sold to HOME Eligible Buyers under the terms and conditions set forth in the Contract; WHEREAS, the proposed budget for the house was pi•epared in 2011 based on estimates of costs at that time, but due to increases in acquisition costs, development costs and consti•uction costs, as well as other additional unanticipated costs not included in the estimates on which the Budget was based, Developer has requested an additional $8,122.32 of HOME Funds to complete the house; WHEREAS, Developer has i•equested an amendment to the line item amounts listed in Exhibit "B" Project and Reimbursement Schedule and in Exhibit "C" - Budget due to unforeseen additional costs for the project; WHEREAS, it is the mutual desire of City and Developer to amend the Contract to complete the project and meet Contract objectives. NOW THEREFORE, City and Developer hereby agree as follows: I. Section 2. DEFINITIONS is atnended to be and i•ead as follows: "Completion Deadline means September 30, 2014." II. Section 4.7 is amended to be and read as follows: CONTFZACT AMENDMENT 1 to CSC No. 44562 Tacrant County Housing Partneiship, Inc. — 1333 E. Jeffei•son '�FFi�CA�, ;��CORD CIT'Y �ECRE�'e�R� ��U �: ';i�,�[� � I'"1�� y��pq �1"�I�e� l�llq ll d'u ,_. __ Rev, -�=2214— -- "4.7 Developer Fee. Developer shall receive a fee of 10% of the total eligible development costs actually spent to complete the Required Improvements in accordance with the terms of this Contract ("Developer Fee"). The Developer Fee shall be paid at the closing of the sale of the Required Improvements to a HOME Eligible Buyer." III. Section 7.1.1 is amended to be and read as follows: "7.1.1 Reimbursement of HOME Funds. City will reimburse Developer up to $125,165.32 of HOME Funds for eligible expenses (excluding the Developer Fee) related to construction of the Required Improvements, so long as such eligible expenses are in conformance with Exhibit "B" — Project and Reimbursement Schedule and Exhibit "C" - Budget and sufficiently proved by Complete Documentation." IV. The first sentence of Section 14. INSURANCE AND BONDING is amended to be and read as follows: "Developer will maintain coverage in the form of insurance or bond in the amount of $125,165.32 to insure against loss from the fraud, theft or dishonesty of any of Developer's ofiicers, agents, trustee, directors or employees." � Exhibit "B" - Project and Reimbursement Schedule and Exhibit "C" - Budget attached to the Contract are hereby replaced with Exhibit "B" - Project and Reimbursement Schedule Revised 7/2014 and Exhibit "C" - Budget Revised 7/2014 attached hereto. \!� This amendment is effective as of the Effective Date of the Contract except the amendment to Section 14 is effective as of the date of this ainendment. VII. All other terms and conditions of City Secretary Contract No. 44562 not amended herein remain unaffected and in full force and effect, are binding upon the Pai�ties, and are hereby ratified by the Parties. Capitalized terms not defined herein shall have ineanings assigned to them in the Contract. [SIGNATURES APPEAR ON FOLLOWING PAGE] CONTRACT AMENDMENT 1 to CSC No. 44562 Page 2 Tarrant County Housing Partnership, Inc. — 1333 E. Jeffeison Rev. 7-29-14 ACCEPTED AND AG ATTEST: City Sec� M&C C- -�� Date: 1 /25/2011 OF FORT WORTH � �/�By: Fernando Costa, Assistant City Manager APPR VED AS TO ORM A LEGALITY: `�' c.,.��- ��-�� Vicki S. Ganske, Senior Assistant City Attorney STATE OF TEXAS COUNTY OF TARRANT ,. �� o�� OUpp�� ?'J � �$0 2g � O p p _ �� . This instrument was acknowledged before me on , 2014 by Fernando Costa, Assistant City Manager of the Ci of Fort Wort , on behalf the City of �Fort Worth. d �.�� =;, Notary Public, State of Te�s ��„�..s,�-._---__"-_ „ `��pY�P�p EVONIA DANIELS � :2`."•'' a`�=^ Notacy Public, Staie of iexas �� %%\\`• My Comrnis(�sion Fxp'��Ps %NyTF.., ��t�� I� � V i 2�� -' `l� ' i �. . . � 'o. ., -_,- ,..,",.' •i�ii n,�� . .,.s.,�, .. TARRANT COUNTY HOUSING PARTNERS , a Texas non-p - fit corporation By: on es ident STATE OF TEXAS COUNTY OF TARRANT . ; �� ,� �,.1 Thi s inst�ument was acknowledged before me on � � � � � �� '� � , 2014 by Donna VanNess, President of Tarrant County Housing Partnership,;' nc., a Texas non-profit corporation, acting on behalf of such corporation. '' (; ;;,��;,;;;;; -- �r�Pnv v4 � ��o,. � �i?; ��.•�; �c+:r�iY kliUill(�UEL - �`,�q� Nc:�,ry Publir.., S7ata �f Texas ;";•�'"� •� u N1y CorrirnisSion �°'%;, t;t°c`` Expires °��,� �4pril 18, 2015 ^-.��..�..,.�:,.:,��.,-_— _ i �,`, i,�� G' ��,/l / , - �� , ( ' � t "li' 2� Notaty Public, State of e as �� CONTRACT AMENDMENT 1 to CSC No. 44562 Tarrant County Housing Paitnership, Inc. — 1333 E. Jefferson �� f� I��ORD C�B`u'St ��RE1'ARY �`�. �V�RTH, TX EXHIBIT "B" PROJECT AND REIMBURSEMENT SCHEDULE REVISED 7/2014 TAIZIZ.ANT COUNTY HOUSING PARTNERSHIP, INC. 1333 E. Jefferson Phase Activity Beginning Week— subject to weather ermittin PHASE I ACTIVITIES: Conri�act signed Land and/or Building Acquisition Sut•vey PHASE I DEADLINE: $2 037.00 Au ust 7, 2013 lst Pa mentx ' PHASE II ACTIVIITES: Site Preparation Architectural & Engineering Fees Landscaping Construction costs PHASE II DEADLINE: 2°`� PaymentX $61,716.93* Se tember 18, 2013 PHASE III ACTNIITES: Site Preparation Architectural & Engineering Fees Construction Costs & Fence Utility hookup/Impact fees PHASE III DEADLINE: 3`�� Payment* $36,888.30x June 30, 2014 PHASE IV ACTIVIITES: Construction costs Utility hookup/Impact fees PHASE IV DEADLINE: 4t�' Payment* $16,706.84* Au ust 30, 2014 PHASE V ACTIVITIES: Utility hookup/Impact fees Architechiral & Engineering Fees Landscaping Construction Costs & Fence PHASE V DEADLINE: FINAL PAYMENTX* $7,816.25*x Se tembei• 30, 2014 CONSTRUCTION TOTAL $125,165.32 DEVELOPER FEE Paid at closing of sale to HOME $12,516.53 Eli ible Bu er *Developer will be reimbursed foi• eligible expenses only. The amounts are estimates and are subject to change. **Prior to Reimbursement for Final Payment, Exhibit "G" - HOME Project Compliance Report must be submitted CONTRACT AMENDMENT 1 to CSC No. 44562 Page 4 Tarrant County Housin� Partnersliip, Inc. — 1333 E. Jeffei•son Rev. 7-29-14 EXHIBIT "C" BUDGET REVISED 7/2014 TARRANT COUNTY HOUSING PARTNERSHIP,INC. 1333 E. JEFFERSON Total Cost: $125,165.32 Project HOME Funds Awarded: $125,165.32 TOTAL AWARDED FLTNDS: $125,165.32 HOME Funds will be paid only as reimbursement for eligible expenses. Development Budget Use of Funds Source of Funds Predevelopment Cost HOME $ OTH�R $ SOURC� OF OTH�R TOTAL $ FUNDS FUNDS FUNDS FUNDS (1) (2) (Names) (1+2) l. Market Stud 2. Feasibility (i.e.: preliminary work write-u , cost estimates, desi n) 3. Other Total Predevelo ment Cost 1+2=3 Develo ment Cost 4. Land and/or buildin ac uisition 2,037 2,037 5. Site Pre aration 3,215 3,215 6. Consri•uction Cost 106,713.32 106,713.32 7. Fence 4,300 4,300 8. Landsca e 2,100 2,100 9. Contin enc 10. Appraisal 475 Proceeds of Sale 475 11. Architect & En ineerin Fees 2,500 2,500 12. Consh-uction Management Fee / Develo er Fee 13. Consn�uction Loan Interest 14. Pro er Surve 1,100 1,100 15. Le al Fees 250 Proceeds of Sale 250 16. Real Estate Fees 4,680 Proceeds of Sale 4,680 17. Utili Hooku /Im act Fees 3,200 3,200 18. Title & Recordin Fees 780 Proceeds of Sale 780 19. Construction Mana ement 20. Bond Fees Total Development Cost (Total of items 125,165.32 6,185 131,350.32 4-20 Total Cost 125,165.32 6,185 131,35032 CONTRACT AMENDMENT 1 to CSC No. 44562 Page 5 Tarrant County Housing ParMership, Inc. —1333 E. Jefferson Rev. 7-29-14 7/30/2014 M&C Re�iew Official site of the Ciry oP Fort Worth, 7exas �I71( �OUNCIL �GENDA ��T�ORTI�1 ,�. COUNCIL ACTION: Approved on 1/25/2011 DATE: 1/25/2011 REFERENCE NO.. CODE: C TYPE: C-24714 LOG NAME 17TCHP- HILLSIDE\MORNINGSIDE NO N- CONSENT PUBLIC HEARING: � 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: http://apps.cfinmet.org /council�ackeUmc_re�iew.asp?I D=14661 &counci Idate=1/25/2011 1/3 7/30/2014 M&C Re�iew On October 14, 2010, the City issued a Request for Proposals (RFP) for certified Community Housing Gevelopment 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., (TCHP) submitted a response requesting $617,884.00 of the available HOME funds 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 following 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/Account/Centers GR76 539120 017206461X)OC $150,000.00 G R76 539120 017206461 X)OC $231, 931. 00 FROM Fund/A�ccount/Centers GR76 539120 017206461030 $150,000.00 G R76 539120 017206461040 $231, 931. 00 http://apps.cfwnet.org /counci I�ackeUmc_reuew.asp?ID=14661 &counci I date=1125/2011 2/3 7/30/2014 Submitted for City Manager's Office by; Originating Department Head: A�dditional Information Contact: ATTACHMENTS M&C Reuew Susan Alanis (8180) Jay Chapa (5804) Cynthia Garcia (8187) Avis F. Chaisson (6342) http://apps.cfwnet.org /counci I�acksUmc_reU ew.asp?I D=14661 &counci I date=1 /25/2011 3/3