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Home My WebLink AboutContract 44620-A1�� " co�� . uu (.,� ��_v -,� 1 FIRST AMENDMENT TO CITY SECRETARY CONTRACT NO. 44620 WHEREAS, on July 10, 2013 the City of Fort Worth ("City") and FW Hunter Plaza, L.P. ("Developer") made and entered into City Secretary Contract No. 44620 (the "Contract"), as authorized by the City Council in M&C G 25369 adopted on December 13, 2011 and M&C C25662 on June 12, 2012, which together provided $1,800,000.00 of City's HOME funds to Developer for the rehabilitation and reconstruction of the Hunter Plaza Apartments (the project); 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 ("HUD") through the HOME Investment Partnership Program, Catalog of Federal Domestic Assistance No. 14.239; WHEREAS, the purpose of the Contract was to provide $1,800,000.00 in the form of a subordinate loan for a portion of the costs of the rehabilitation of an empty 11-story 225 unit multifamily building into a mixed use mixed income rental complex with a total of 164 residential units to be known as the Hunter Plaza Carlton Apartments to be located at 605 1 st Street, Fort Worth, Texas 76102 in downtown Fort Worth; WHEREAS, Developer requested an amendment to the line item amounts listed in Exhibit "B" - Budget and the dates listed in Exhibit "C" - Construction and Reimbursement Schedule due to unforeseen costs and delays connected with relocating franchise utilities necessary 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. 2. DEFINITIONS The following definitions in this section are amended to be and read as follows: "Completion Deadline means June 30, 2016." II. Section 3.1 is amended to be and read as follows: "3.1 Term of Contract. The term of this Contract begins on the Effective Date and terminates on January 9, 2017 unless otherwise terminated as provided in this Contract." CONTRACT AMENDMENT 1 to CSC No. 44620 �FOC'��' �� Page 1 F W Hunter Plaza L.P. ��g� ��CRETAG3V E C E I V��. �-G1� Zp1� � �'�'�'�Pl��n ��'� ._.,,_-._ Section 5.1 is amended to be and read as follows: "5.1 Construction and Permanent Financin�. Developer shall close on Developer's construction loan and obtain a firm commitment for permanent financing for the Required Improvements by December 31, 2014. If Developer does not close on the construction loan and obtain a firm commitment for permanent financing by December 31, 2014, then Developer will be in default of this Contract as further described in Section 11.1. III. Exhibit ��A-1" HUD Rent Limits, Exhibit "B" - Budget and Exhibit "C" Construction and Reimbursement Schedule attached to the Contract are hereby replaced with the Exhibit "A-1" - HUD Rent Limits Revised 6/2014, Exhibit "B" - Budget Revised 6/2014 and Exhibit "C" - Construction and Reimbursement Schedule Revised 6/2014 attached hereto. IV. This amendment is effective as of the Effective Date of the Contract. V. All other terms and conditions of City Secretary Contract No. 44620 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 1 to CSC No. 44620 Page 2 FW Hunter Plaza L.P. Rev. 5-30-13 r� � ACCEPTED AND AG � ATTEST: , -, \ C;ity � M&C M&C ��o�p�� 0 o�0 o ��9 � ,�. o �' ° " �" � Y OF FORT WORTH o� o � °00000�� ,�� By: �i�—. Fernando Costa, Assistant City Manager Date: 12/ 13/2011 Date: 6/12/2012 APPROVED AS TO FORM AND LEGALITY: �,� ,Q . � Vic i S. Ganske, Senior Assistant City Attorney STATE OF TEXAS COUNTY OF TARRANT � This instrument was acknowledged before me on � <� , 2014 by Fernando Costa, Assistant City Manager of the City of Fort Worth, on behalf the City of Fort Worth. < - �. tary Public, State of Texas ,,,��„��—� EVONIA DANIELS ,°=��0.v P�e`c+=_ NOta�Y P�bIiC, State of Texas - N1y Com�nission Expires ';";;•. ..��,�;c July 10� 2011 '�� ; °��+�+` CONTRACT AMENDMENT 1 to CSC No. 44620 FW Hunter Plaza L.P. �FFICIAL RECOf�� CI1'Y SI��RETd�6�� Rev �'H'o dV�6tTH, T3� Page 3 5-30-13 FW HUNTER PLAZA, L.P., a Texas limited partnership By: FW Hunter Plaza GP, LLC, a Texas limited liability company, its General Partner By: Fort Worth Affordability, Inc., a Texas non- profit corporation, its Sole Member BY� C�fi(�L T rri Attaway, President STATE OF TEXAS § COUNTY OF TARRANT This instrument was acknowledged before me on � f �C 1�-i' �� l.�j� , 2014 by Terri Attaway, President of Fort Worth Affordability, Inc., a Texas non-profit corporation, Sole Member of FW Hunter Plaza GP, LLC, a Texas limited liability company, General Partner of FW Hunter Plaza, L.P., a Texas limited partnership, ac ing on beh lf of s�ch limited partnership. �) , `" ..� �.�� C� /E� �.��''�'.� o��YP��i VECK1E L F10BEFiT'S Notary Public, State of Texas 2�`� �A�l ri0(1N11�3.4�Oi1 F�1�es �� June 12, 2018 CONTRACT AMENDMENT I to CSC No. 44620 Page 4 FW Hunter Plaza L.P. Rev. 5-30-13 EXHIBIT "A-1" REVISED HUD RENT LIMITS FW HUNTER PLAZA, L.P. U.S. DEPARTMENT OF HUD 03/2014 STATE: TEXAS Fort Worth-Arlington, TX HUD Metro FMR Area 2014 HOME PROGRAM RENTS Efficiency 1-Bdrm 2-Bdrm 3-Bdrm 4-Bdrm 5-Bdrm 6-Bdrm LOW HOME RENT LIMIT 595 637 765 883 985 1086 1188 HIGH HOME RENT LIMIT 613* 722* 913* 1150 1264 1376 1488 For Information Only: FAIR MARKET RENT 50% RENT LIMIT 65% RENT LIMIT 602 595 778 722 637 834 913 765 1003 1218 883 1150 1471 985 1264 1692 1086 1376 *Published rent limits are established and amended at least annually by HUD. 1912 1188 1488 CONTRACT AMENDMENT I to CSC No. 44620 Page 5 FW Hunter Plaza L.P. Rev. 5-30-13 EXHIBIT "B" BUDGET Revised 6/2014 FW HUNTER PLAZA, L.P. SOURCES AND USES Development Name: FW Hunter Plaza, L.P. Construction or Rehab. Loan Stage Priority Amt. Source # Fundin Descri 6on of Lien Sources Use of Funds Financin Partici ants 1 Conventional Loan 2 Conventional LoanIFHA 1 $13,169,300 3 4% Tax Credit E uit 4 HOME 2 $1,800,000 Cit of Fort Worth 5 Housin Trust Fund 6 TIF Funds $1,800,000 7 Ca ital Funds 3 $1,750,000 � 8 Lantl E uit $2,830,000 $2,830,000 9 Cash E uit Other Federal Loan or 10 Grant 11 Other State Loan or Grant Local Government Loan 12 or Grant HOME Soft Costs: Financing, Legal, Organ. & Audit 13 Fees $8,894,300 14 Deferred Develo er Fee $1,250,000 15 Construction Costs $15,235,000 TOTAL SOURCES OF FUNDS $ 26,959,300 TOTAL USES OF FUNDS $ 26,959,300 HOME Funds Bud�et Pre-Development Soft Costs $1,153,766.64 Hard Construction Costs $496,233.36 Final Punch List/Final HED Inspection $50,000.00 Holdback* $100,000.00 TOTAL $1,800,000.00 * The City will withhold $100,000 of its HOME Funds until the City verifies a HOME Unit is leased to a HOME Eligible Household. 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M&C Review Page 1 of 3 Official site of the City of Fort Worth, Texas I E N DA ��T ��'i�RTI l COUNCIL ACTION: Approved on 12/13/2011 � . .�_ ., ,. �, � � : . �: : �-� .;. �, . �m .: , , .� . r . �„ � � , � _. � DATE: 12/13/2011 REFERENCE C-25369 LOG NAME: 17FWHA- NO.: HUNTERPLAZAPROJECT#2 CODE: C TYPE: NON- PUBLIC NO CONSENT HEARING: SUBJECT: Authorize Conditional Commitment of $500,000.00 of Program Year 2012-2013 HOME Investment Partnerships Program Grant Funds with the Fort Worth Housing Authority for the Redevelopment of the Hunter Plaza Apartments Located at 601 West First Street, Authorize Conditional Committment of and Contract for $500,000.00 from the Fort Worth Housing Finance Corporation Fund to the Fort Worth Housing Authority for the Development (COUNCIL DISTRICT 9) � �-.._ _r�� _.�_rc.. n.� a� �:-�. �� _.� k.� _��.u� _ � � ��_ . , � . _,_.�,� � � �,. RECOMMENDATION: It is recommended that the City Council: 1. Authorize the City Manager, or his designee, to execute a conditional commitment with the Fort Worth Housing Authority or its designated affiliate for a subordinate loan for $500,000.00 of HOME Investment Partnerships Program Grant funds from the Program Year 2012-2013 for the redevelopment of the Hunter Plaza Apartments, located at 601 West First Street, subject to receipt of the HOME funds and approval of the 2012-2013 Action Plan; 2. Authorize the substitution of current and prior funding years in order to meet commitment, disbursement and expenditure deadlines for grant funds from the United States Department of Nousing and Urban Development; 3. Authorize the expenditure of $500,000.00 from the Fort Worth Housing Trust Fund portion of the Fort Worth Housing Finance Corporation Fund to the Fort Worth Housing Authority or its designated affiliate in the form of a subordinate construction loan for the project; 4. Authorize the City Manager, or his designee, to execute a conditional commitment with the Fort Worth Housing Authority or its designated affiliate, for a subordinate construction loan for the project; 5. Authorize the City Manager, or his designee, to execute a contract with the Fort Worth Housing Authority or its designated affiliate, for the project for a three 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 commitments or the contract for up to one year if the Fort Worth Housing Authority requests an extension and such extension is necessary for completion of the project; and 7. Authorize amendment of the conditional commitments 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: City Staff anticipates receiving approximately $1,250,000.00 of HOME Investment Partnerships Program Grant (HOME) funds for multi-family developments in 2012-2013 from the United States Department of Housing and Urban Development (HUD). http: //apps. cfwnet. org/council�acket/mc_review. asp?ID=16264&councildate=l2/ 13 /2011 6/ 10/2014 M&C Review Page 2 of 3 The State of Texas requires that applications for Low Income Housing Tax Credit (LIHTC) projects be filed in January including any local support. In order to meet the LIHTC application deadline, the City issued a Request for Proposals (RFP 11-0358) on October 5, 2011 for developers to award and expend up to $1,750,000.00 of (i) HOME funds for the 2012-2013 Program Year, (ii) General Funds in the City's Fort Worth Housing Trust Fund (HTF), and (iii) City's Rental Rehabilitation Funds. On November 3, 2011, the Fort Worth Housing Authority (FWHA) submitted a response requesting $1,500,000.00 for the costs associated with the rehabilitation of the Hunter Plaza Apartments. City Staff reviewed all RFP submissions and recommends the award to the FWHA or an affiliate of $500,000.00 in HOME funds and $500,000.00 of HTF funds, for a total of $1,000,000.00, in the form of subordinate loans. Currently, the apartments are vacant. The complex previously housed 225 public housing units for elderly and disabled persons. The building has a total of 155,000 square feet of space. The project will consist of renovating the building into a mixed income residential development with retail/commercial space on the ground floor. Forty percent of the units will be market rate and 60 percent will be affordable to households earning 60 percent or less of Area Median Income (AMI). At a minimum, five percent of the residential units will be accessible to mobility impaired individuals. The development will include amenities such as a fitness center, library room, business center, theatre room, community room and a secured entry. Each individual unit will have a washer, dryer, dishwasher, refrigerator, stove, microwave and ceiling fans. The development will also feature a parking garage that will be constructed for use by both the residents and customers for the retail area. As part of the financing of the project, the FWHA or an affiliate will submit an application for LIHTC to the Texas Department of Housing and Community Affairs (TDHCA) on January 1, 2012. The total project cost is approximately $24 Million. Staff recommends the followinq HOME loan terms: i. Designate HOME-assisted units according to HOME regulations with a 15-Year Affordability period; ii. HOME funds secured by a recorded Deed of Trust on the real property; iii. 1 percent interest or Applicable Federal Rate; iv. Loan term of 15 years v. Conditioned on the receipt of 2012-2013 HOME funds from HUD; vi. Satisfactory completion of the environmental review per 24 CFR Part 58; vii. Authorization to use grant funds from HUD; and, viii. Award of Low Income Housing Tax Credits by TDHCA. Staff recommends the following construction loan terms: i. Funds secured by a recorded Deed of Trust on the real property; ii. Loan term of three years; iii Interest at Applicable Federal Rates (AFR) with principal and accrued interest due at conversion to permanent financing; and iv. Award of Low Income Housing Tax Credits by TDHCA. The Action Plan's funding years for Federal funds selected may vary and be substituted based on the Principle of First In, First Out (FIFO) in order to expend oldest grant funds first. The HOME funds may be used for any eligible costs related to this development. If the 2012-2013 Action Plan is approved, City Staff will seek City Council approval for the expenditure of $500,000.00 in HOME funds for the project. A public comment period on the intent to use HOME funds was held from November 12, 2011 to December 12, 2011. Any comments are maintained by the Housing and Economic Development Department in accordance with federal regulations. This project is located in COUNCIL DISTRICT 9. FISCAL INFORMATION/CERTIFICATION: The Financial Management Services Director certifies that funds are available in the current operating budget of the Fort Worth Housing Finance Corporation Fund. http://apps. cfwnet.or•g/council�acket/mc_review.asp?ID=16264&councildate=l2/ 13/2011 6/10/2014 M&C Review TO Fund/AccountlCenters GR76 539120 017206XXXXXX $500,000.00 R109 539120 005109008XXX $500,000.00 Submitted for City Manaqer's Office b� Originating Department Head: Additional Information Contact: ATTACHMENTS Page 3 of 3 FROM Fund/Account/Centers R109 539120 005109008002 $500,000.00 GR76 539120 005206XXXXXX $500,000.00 Fernando Costa (6122) Jay Chapa (5804) Cynthia Garcia (8187) Leticia Rodriguez (7319) http://apps.cfwnet.org/council�acicet/mc_review. asp?ID=16264&councildate=l2/13/2011 6/10/2014 M&C Review Page 1 of 3 Official site of the City of Fort Worth, Texas CIT'Y COUNCIL AGENDA ��R�i v. _. : . . _ �F�w r > >,_�� .. , ti � COUNCIL ACTION: Approved on 6/12/2012 ,ti , � . � �. � t� w,...�, _ ,_. , ... �.,_; : � �.�_-, _ __�. �_.� „� DATE: 6/12/2012 REFERENCE C-25662 LOG NO.: NAME: CODE: C TYPE: NON- PUBLIC CONSENT HEARING: 17FWHA- HUNTERPLAZAPROJECT_REVISON � SUBJECT: Authorize Change in Use and Expenditure of Additional HOME Investment Partnerships Program Grant Funds in the Amount of $1,300,000.00 to FW Hunter Plaza, L.P., for the Redevelopment of the Hunter Plaza Apartments Located at 605 West First Street, Authorize Execution of a Conditional Commitment and Contract, and Authorize Substantial Amendment to the City's 2003-2004, 2005-2006, 2006-2007, 2009-2010 and 2011-2012 Action Plans and Substitution of Funding Years (COUNCIL DISTRICT 9) r�,... �.� .w,_ , ,, , � � � �, . �, . r� .; -., - : __ .. . .. ,,. , w. _ _ _ ,_ _ �. . _. � , ;,�� RECOMMENDATION: It is recommended that the City Council: 1. Authorize a Substantial Amendment to the City's 2003-2004, 2005-2006, 2006-2007, 2009-2010 and 2011-2012 Action Plans; 2. Authorize the substitution of current and prior 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 the change in use and expenditure of additional HOME Investment Partnerships Program Grant funds in the amount of $1,300,000.00 for a total of $1,800,000.00 in HOME funds to FW Hunter Plaza, L.P., an affiliate of the Fort Worth Housing Authority, for the redevelopment of the Hunter Plaza Apartments located at 605 West First Street; 4. Authorize the City Manager or his designee to execute a conditional commitment with FW Hunter Plaza, L.P. for a subordinate loan that conditions funding on, among other things, satisfactory compliance with the HOME requirements; 5. Authorize the City Manager or his designee to execute a contract with FW Hunter Plaza, L.P. 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 for up to one year if FW Hunter Plaza, L.P. requests an 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 December 13, 2011, City Council approved a conditional commitment of $500,000.00 from Program Year 2012-2013 HOME Investment Partnerships Program Grant (HOME) funds and $500,000.00 from the General Fund portion of the Fort Worth Housing Trust Fund to the Fort Worth Housing Authority (FWHA), or its affiliate, for the redevelopment of the Hunter Plaza Apartments located at 605 West First Street (M&C C-25369). The purpose of the commitment was to show local support of FWHA's application to the Texas Department of Housing and Community Affairs (TDHCA) http://apps.cfwnet.org/councii�acket/mc_review.asp?ID=16624&councildate=6/12/2012 6/10/2014 M&C Review Page 2 of 3 for nine percent Low Income Housing Tax Credits (LIHTC) for the redevelopment project. The apartments are now vacant but previously housed 225 public housing units for elderly and disabled persons. FWHA has formed FW Hunter Plaza, L.P. Earlier this year FWHA was informed by TDHCA that the project did not score high enough to receive a nine percent LIHTC award. FWHA now wants to apply for non-competitive four percent LIHTC in order to move forward with the redevelopment of the apartments. Because of the change in the type of tax credits it is applying for, FWHA has requested additional funding for the project and has also requested that all of the City's funds be repaid in 15 years instead of the original three year loan term for the $500,000.00 of General Funds. Since the financing of the project has changed substantially, Staff recommends substituting HOME funds for the General Funds from the Housing Trust Fund, and increasing the amount of HOME funds for the project by $1,300,000.00 for a total award of $1,800,000.00. Staff recommends the following HOME loan terms: 1. Loan of HOME funds subordinate only to construction and permanent financing for the project, 2. Designate HOME-assisted units according to HOME regulations with a 15 Year Affordability Period; 3. HOME funds secured by a Deed of Trust on the real property; 4. Interest at one percent; 5. Loan term to run concurrently with the Affordability Period; 6. Satisfactory completion of the environmental review per 24 CFR Part 58; 7. Authorization to use grant funds from HUD; and, 8. Equity, construction and permanent financing acceptable to City. The Action Plan funding years selected may vary and be substituted based on the Principle of First In, First Out in order to expend oldest grant funds first. The HOME funds may be used for any eligible costs related to this development. A public comment period on the intent to use HOME funds was held from May 11, 2012 to June 11, 2012. Any comments are maintained by the Housing and Economic Development Department in accordance with federal regulations. This project is located in COUNCIL DISTRICT 9. FISCAL INFORMATION/CERTIFICATION: The Financial Management Services Director certifies that funds are available in the current operating budget of the Grants Fund. TO Fund/AccountlCenters GR76 539120 017206351080 $500,000.00 GR76 539120 017206531080 $500,000.00 FROM Fund/AccountlCenters GR76 539120 017206531070 $500,000.00 GR76 539120 017206351070 $500,000.00 Submitted for City Manaqer's Office b� Originating De�artment Head: Additional Information Contact: Fernando Costa (6122) Jay Chapa (5804) Cynthia Garcia (8187) Leticia Rodriguez (7319) http://apps.cfwnet.org/council�acicet/mc_review.asp?ID=16624&councildate=6/12/2012 6/10/2014 M&C Review ATTACHMENTS HunterPlaza.pdf Page 3 of 3 http://apps.cfwnet.org/council�acket/mc_review.asp?ID=16624&councildate=6/12/2012 6/10/2014