HomeMy WebLinkAboutContract 20174 CITY C-3
OON s PIACT NO
STATE OF TEXAS §
COUNTY OF TARRANT §
THIS contract is made and entered into by and between the City of Fort Worth ("City"),
acting by and through Libby Watson, its duly authorized Assistant City Manager, and the Mental
Health Housing Development Corporation, or ("OWNER"). Owner's business address is 1501
Merrimac Circle, Suite 105,Fort Worth, Texas 76107.
WHEREAS, the City of Fort Worth has received grant monies from the United States
Department of Housing and Urban Development ("HUD") through the Home Investment
Partnership ("HOME") Program, created by the National Affordable Housing Act of 1990 (NAHA),
with which the City desires to promote activities that expand the supply of affordable housing and
the development of partnerships among the City, local governments, local lenders, private industry
and neighborhood-based nonprofit housing organizations; and
WHEREAS, OWNER, a nonprofit corporation whose mission is to develop and manage
safe, decent, affordable housing for low-income persons with long-term mental illnesses; and
WHEREAS, the citizens of Fort Worth, the Community Developm .µ. l now_
ty
Council of Fort Worth have determined that the development of a multi-f&nt"aMM yp ex
located at 1350 East Seminary Drive, Fort Worth, Texas, ("Property"), w erem mnety-eigt (!18)
units shall be Affordable Units, dwelling units designated as provided h e , pc t 's
contract, is needed by low and moderate income citizens of Fort Worth; and
NOW, THEREFORE, THIS AGREEMENT FURTHER WITNESSETH:
That the parties covenant and agree as follows:
1. Scope of Services
OWNER shall own, develop and manage the Property as affordable housing for Low
Income Households, as determined by HUD, under the program name Spanish Gate Apartments
("Program"), for the term beginning on the date of execution, and ending January 31, 2024. The
Program will consist of 98 residential units which are similar in quality and type of construction and
amenities. All units in the Program shall be made available for lease by members of the general
public and the OWNER shall not give preference in renting units in the Program to any particular
class or group of persons other than Low Income Households as provided herein. No preference in
tenant selection for the Program will be given to elderly or disabled persons or families.
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Rents shall be in compliance with applicable HOME Program regulations (24 CFR 92.252).
OWNER shall use the Proceeds to rehabilitate and maintain the Property as rental housing for a
period of thirty (30) years.
On site support services shall be provided to residents to enable them to successfully live
independently, including,but not limited to:
A. professional staff which shall be devoted to the program full-time;
B. professional staff which shall offer support services for residents with specific inquiries.and
requests for intervention;
C. periodic programs and/or training sessions for residents which shall be offered by
community human service organizations, including,but not limited to the following topics:
Household safety; household finances; household mechanics and maintenance;
utilities and energy conservation; consumer issues; employment counseling; English
as a second language; parenting skills; educational and recreational activities for
children; and neighborhood involvement/crime watch activities.
D. OWNER shall develop a plan to enhance economic development opportunities for residents.
OWNER will be responsive to residents by creating a resident organization to participate in
management decisions concerning the project.
OWNER will act in accordance with "Exhibit A-Program Time Line".
2. Funding and Reports
Upon execution of this contract, the City agrees to make a forgivable loan in the amount of
$466,450.00 (the "Proceeds") to OWNER. The loan will be forgiven by the City in 180 monthly
installments of$2519.39 each, beginning on the first day of the first month after execution of this
agreement. If the OWNER sells, transfers, assigns, or otherwise disposes of its interest in the
Project (the development and management of the Property by the OWNER as affordable housing
for Low Income Households), prior to the 180th month,the unpaid balance of the loan shall become
immediately due and payable by the OWNER to the City. OWNER agrees to utilize all of the
Proceeds for the benefit of the Project.
OWNER agrees to report quarterly to the City on the activities and statement of
expenditures of the Project and upon satisfactory performance, the OWNER agrees to report
annually commencing January 1, 1996.
The parties agree that as specific conditions precedent to OWNER receiving the Proceeds:
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A. The sale shall be closed thirty (30) days prior to execution of this contract. Should the
OWNER for any reason fail or refuse to perform its obligations under this contract, the City
shall be under no further obligation to loan the Proceeds to the OWNER; and
B. This contract shall be fully executed by the parties governing the use of the Proceeds.
OWNER will notify City promptly of any additional funding it receives for operation of the
Program, and City reserves the right to amend the program budget in such instances.
3. Owner's Representations,Warranties and Covenants
The OWNER represents, warrants, covenants and agrees as follows:
The OWNER shall use the Proceeds to rehabilitate and maintain the property as rental
housing for a period of thirty (30) years. The OWNER shall own, develop and manage the Project
as affordable housing for Low Income Households.
The OWNER must comply with project requirements as enumerated in 24 CFR 92 Subpart
F, as applicable in accordance with the type of project assisted.
Ninety-eight (98) apartments shall be designated Affordable Units, subject to the terms of
this contract.
None of the units in the Project shall at any time be used on a transient basis, and neither the
property nor any portion thereof shall ever be used as a hotel, motel, dormitory, fraternity house,
sorority house, rooming house, hospital, nursing home, sanitarium, rest home or trailer park or
court.
Affordable Units shall not be leased, subleased or occupied on a rental basis, except in
compliance with the following restrictions:
A. The household income of the tenants may be no higher than Low Income, as determined by
HUD, on the date of first occupancy.of the Affordable Unit by such household;
B. The tenants must occupy the Affordable Units as their primary residence;
C. The monthly rent must meet the affordability requirements of 24 CFR 92.252 of the HOME
Investment Partnership Program, as applicable. Failure to meet the affordability
requirements for the contract term will require repayment of HOME funds to the City;
D. If the OWNER is receiving rental payments pursuant to Section 8 with respect to any of the
Affordable Units, then as to such units, the rent increase shall be determined according to
regulations imposed by such programs.
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The project shall consist of the following numbers of Affordable Units for Low Income
Households:
Number of bedrooms Number of Units
1 bedroom. . . . . . . . . . . . . . 20
2 bedrooms . . . . . . . . . . . . 59
3 bedrooms . . . . . . . . . . . . . 19
The OWNER shall not convert any units in the project to condominium ownership or to any
form of cooperative ownership that is not eligible to receive HOME funds from HUD. The
OWNER shall not discriminate against prospective tenants on the basis: of their receipt of, or
eligibility for; housing assistance under any federal, State, or local housing assistance program; that
they have a minor child or children who will be residing with them; or of familial status.
All units shall comply with the Section 8 Housing Quality Standards for Existing Housing
set forth in 24. CFR 882.109. The property must meet local codes, ordinances, and zoning for the
duration of the contract. The OWNER will take all responsibility for managing all asbestos
containing material, and any other hazardous or special waste, within the structures,identified or
not, according to federal and state laws.
OWNER must adopt affirmative marketing procedures and requirements for this project.
The procedures and requirements must include methods for informing the public, and potential
tenants about fair housing laws and policies so as to ensure that all individuals, without regard for
race, creed, nationality or religion, are given an equal opportunity to participate in the program.
OWNER must record and maintain on file the information listed in 'Exhibit B-Program
Files".
4. Uniform Administrative Requirements and Cost Principles
A. OWNER shall comply with all applicable Uniform Administrative requirements as outlined
in 24 CFR 92.505, including all applicable requirements of Office of Management and
Budget(OMB) Circulars A-110, A-133 and A-122.
B. The allowability of costs incurred for performances rendered hereunder by OWNER.shall
be determined in accordance with OMB Circular A-122. City shall be liable to OWNER
only for costs incurred or performances rendered for activities specified in 24 CFR 576.21
(a), (b) or(c), any contrary provisions in this contract notwithstanding.
C. Recipients, subrecipients, contractors and/or subcontractors which are governmental entities
shall comply with the requirements and standards of OMB Circulars A-87, A-128 and with
24 CFR 85.
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5. Record keeping
OWNER will cooperate fully with City in monitoring the work performed hereunder. In this
regard OWNER agrees to keep records sufficient to document its compliance with all applicable
laws,regulations and contract terms. All records shall be retained for five (5) years following the
date of termination of this contract. OWNER may destroy Program records at the end of this five
(5) year period if no outstanding audit finding exists. City, HUD and the United States Comptroller
General, or their representatives, shall have access to any books, documents, records and papers
relating to the operations of OWNER under this contract for the purpose of audit, examination,
exception and transcription at all reasonable hours at all offices of OWNER. The City reserves the
right to perform an audit of the funds received under this contract in order to ensure OWNER'S
compliance with applicable federal regulations.
Tenant lists, applications, waiting lists, reports of activities conducted, records of services
provided on-site, and all other information relating to the project shall at all times be kept separate
and identifiable from any other business of the OWNER which is unrelated to the project. All such
information shall be maintained, as required by the City, in a reasonable condition for proper audit,
and subject to examination during business hours by representatives of the City.
All tenant leases shall be written, for a period of not less than six months and shall be in
conformity with all applicable laws, including without limitation all applicable ordinances of the
City of Fort Worth.
The OWNER shall obtain and maintain on file the following information on each client
serviced by the program:
A. annual income and size of the household of which the client is a member;
B. ethnic group of the client, using one of the following five categories: White,not Hispanic;
Black,not Hispanic; Hispanic; Asian or Pacific Islander; American Indian or Alaskan
Native;
C. whether the head of the client's household is male or female; and
D. additional statistical information as may be required by HUD regulations and any
amendments thereto.
OWNER shall amivally certify tenant income by requiring documentation such as a
paycheck stub or a copy of the tenant's W-2 form.
Additional documentation must be maintained on:
A. the rent levels for each unit; and
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B. evidence that income targeting requirements are met.
The OWNER shall obtain and maintain on -file for the term of this contract a sworn
statement from each tenant occupying an Affordable Unit in the Project, signed by the tenant or
tenants (i.e., each person whose name appears on lease). The statement shall contain clauses, inter
alia,wherein each tenant:
A. certifies the accuracy of the statements made concerning Annual Household Income, the
average of the adjusted gross income as defined in then-applicable provisions of the U.S.
Internal Revenue Code for all members of a household for the two preceding calendar years;
B. agrees that the Annual Household Income and other eligibility requirements shall be deemed
substantial and material obligations of the tenancy;
C. agrees to comply with all requests for information with respect thereto from the OWNER,
the City, or HUD; and
D. agrees that failure to provide accurate information or refusal to comply with a request for
information shall be deemed a substantial violation of an obligation of the tenancy.
OWNER will keep or cause to be kept an accurate record of all actions taken and all funds
expended, with source documents, in the pursuit of the objectives of the performance of this
Contract. Such records shall be kept for the period of affordability mandated by NAHA. .
6. Reports and Audits
OWNER agrees that it will take any and all actions required by the City to substantiate the
OWNER'S compliance with the requirements set forth in this contract. This includes, but is not
limited to preparing and submitting to the City Quarterly Reports on the project for the duration of
the contract period, beginning with the first calendar quarter of 1994. The Quarterly Reports shall
include the information listed in "Exhibit C-Reports", which is attached to and made a part of this
contract, and any other information which HUD or the City may reasonably request from the
OWNER in the future. Such reports and statements will be signed by a duly authorized agent of
OWNER.
OWNER must submit to City an annual audit prepared in accordance with 24 CFR
570.502-570.503 generally, with specific reference to OMB Circulars A-110 (with attachments),
A-122, A-128 and/or A-133 as appropriate. The audit may cover either OWNER'S fiscal year
during which this contract is in force or cover the period of this contract. This audit must be
prepared by an independent certified public accountant, be completed within twelve (12) months
following the end of the period being audited and be submitted to the City within thirty (30) days of
its completion.
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City reserves the right to perform an audit of OWNER'S program operations and finances at
any time during the term of this contract, if City determines that such audit is necessary for City's
compliance with OMB Circular A-128, and OWNER agrees to allow access to all pertinent
materials as described above. If such audit reveals a questioned practice or expenditure, such
questions must be resolved within fifteen (15) days after notice to OWNER of such questioned
practice or expenditure. If questions are not resolved within this period, City reserves the right to
withhold further funding under this and/or future contract(s).
If as a result of any audit it is determined that OWNER has misused, misapplied or
misappropriated all or any part of the grant funds described herein, OWNER agrees to reimburse the
City the amount of such monies so misused, misapplied or misappropriated, plus the amount of any
sanction, penalty or other charge levied against City because of such misuse, misapplication or
misappropriation.
7. Applicable Laws
A. Federal
Contractor agrees to comply with the following laws and the regulations issued thereunder
as they are currently written or are hereafter amended during performance of this contract:
Title VI of Civil Rights Act of 1964 (42 USC 2000d et seq)
Title VIII of Civil Rights Act of 1968 (42 USC 3601 et seq)
Executive Orders 1 1063, 11246, as amended by 1 1375 and as supplemented by
Department of Labor regulations (41 CFR, Part 60)
The Age Discrimination Act of 1975 (42 USC 6101 et seq)
Section 504 of the Rehabilitation Act of 1973 (29 USC 794)
Immigration Reform and Control Act of 1986, specifically including the provisions
requiring employer verifications of legal worker status of its employees
Housing and Community Development Act of 1987 (Pub. L. 100-242, 101 Stat. 1815, as
amended)
The Americans with Disabilities Act of 1990 (42 USC 12101 et seq)
National Affordable Housing Act of 1990 (NAHA) and all regulations pertaining thereto.
OWNER, in the operation of its program, will also comply with OMB Circular A-122 and
attachments and revisions thereto, regarding principles for determining costs for HOME funded
programs.
B. Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 USC 1701
As the work performed under this contract is on a project assisted under a program
providing direct Federal financial assistance from the HUD and is subject to the
requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended,
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12 USC 1701, OWNER covenants to abide by the requirements of the said Section 3. It
requires as follows:
(1) That, to the greatest extent feasible, opportunities for training and employment be
given to lower income residents of the project area, and
(2) That, to the greatest extent .feasible, contracts for work in connection with the
project. be awarded to business concerns which are located in or owned in
substantial part by persons residing in the area of the project.
OWNER will comply with the provisions of said Section 3 and the regulations issued
pursuant thereto by the Secretary of Housing and Urban Development,set forth in 24 CFR 135, and
all applicable rules and orders of the Department issued thereunder prior to the execution of this
contract. OWNER certifies and agrees that it is under no contractual or other disability which
would prevent it from complying with these requirements.
OWNER agrees that it will send to each labor organization or representative of workers'
with which it has a collective bargaining agreement or other contract or understanding, if any, a
notice advising the said labor organization or workers representatives of its commitments under this
Section 3 clause and shall post copies of the notice in conspicuous places available to employees
and applicants for employment or training.
OWNER agrees that it will include the said Section 3 clause in every subcontract for work
in connection with the project and will, at the direction of City, take appropriate action pursuant to
the subcontract upon a finding that the subcontractor is in violation of regulations issued by the
Secretary of Housing and Urban Development, 24 CFR .135. OWNER agrees that it will not
subcontract with any subcontractor where it has notice or knowledge that the latter has been found
in violation of regulations under 24 CFR 135 and will not let any subcontract unless' the
subcontractor has first provided OWNER with a preliminary statement of ability to comply with the
requirements of these regulations.
City and OWNER understand and agree that compliance with the provisions of Section 3,
the regulations set forth in 24 CFR 135, and all applicable rules and orders of the Department issued
thereunder prior to the execution of this contract shall be a condition of the Federal financial
assistance provided to the project, binding upon the City and the OWNER, and their respective
successors, assignees and subcontractors. Failure to fulfill these requirements shall subject
OWNER and its subcontractors, its successors and assigns,to those sanctions specified by the Grant
Agreement through which Federal assistance is provided and to such sanctions as are specified by
24 CFR 135.
C. Clean Air Act; Clean Water Act; Envirorunental Protection Agency Acts and Regulations
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This contract is subject to the requirements of Section 306 of the Clean Air Act, as amended
(42 USC 1857(h) et seq.), Section 508 of the Clean Water Act (33 USC 1368); Water Pollution
Control Act, as amended(33 USC 1251 et seq.) and the regulations of the Environmental Protection
Agency with respect thereto at 40 CFR, Part 15, as amended from time to time, and Executive Order
11738 (42 USC 7606 nt.). In compliance with said regulations, OWNER agrees and, with respect
to any nonexempt transaction, shall require each subcontractor to agree to the following
requirements:
(1) A stipulation that no facility to be utilized in the performance of nonexempt
contract or subcontract work is included on the List of Violating Facilities issued by
the Environmental Protection Agency(EPA)pursuant to 40 CFR 15.20;
(2) Compliance with.all the requirements of Section 114 of the Clean Air Act, as
amended (42 USC 1857c-8), and Section 308 of the Federal Water Pollution Control
Act, as amended (33 USC 1318), relating to inspection, monitoring, entry, reports
and information, as well as all other requirements specified in.said Section 114 and
Section 308 and all regulations and guidelines issued hereunder;
(3) A stipulation that, as a condition for the award of the contract, prompt notice will
be given of any notification received from the Director, Office of Federal Activities,
EPA, indicating that.a facility utilized or to be utilized for the contract is under
consideration to be listed on the EPA List of Violating Facilities;
(4) Agreement by OWNER that it will include or cause to be included the criteria and
requirements in Paragraphs (a) through (d) of this section in every nonexempt
subcontract, requiring that OWNER will take such action as City may direct as a
means of enforcing such provisions.
In no event shall any amount of the assistance provided under this agreement be utilized
with respect to a facility which has given rise to a conviction under the Clean Air Act or the Clean
Water Act.
D. Other Laws
OWNER covenants and agrees that its officers, members, agents, employees, program
participants and subcontractors shall abide by and comply with all other laws, federal, state and
local, relevant to the performance of this contract, including all ordinances, rules and regulations of
the City of Fort Worth and NAHA, and all regulations pertaining thereto. OWNER further
promises and agrees that it has read, and is familiar with, terms and conditions of the HOME
Program under which funds are granted and that it will fully comply with same. It is agreed and
understood that, if City calls the attention of OWNER to any such violations on the part of OWNER
or any of its officers, members, agents, employees, program participants or subcontractors, then
OWNER shall immediately desist from and correct such violation.
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8. Prohibition Against Discrimination
A. Generally
OWNER, in the execution, performance or attempted performance of this contract and
agreement, will not discriminate against any person or persons because of sex, race, religion, color
or national origin, nor will OWNER permit its officers,members, agents, employees, subcontractors
or program participants to engage in such discrimination.
B. Employment
During the performance of this contract OWNER agrees, and will require all of its
subcontractors to agree, as follows:
(1) OWNER will not unlawfully discriminate against any employee or applicant for
employment because of race, color, religion, sex or national origin. OWNER will
take affirmative action to ensure that applicants are employed and that employees are
treated fairly during employment without regard to their race, color, religion, sex or
national origin. Such action shall include, but not be limited to, the following:
employment,upgrading, demotion or transfer,recruitment or recruitment advertising,
layoff or termination, rates of pay or other forms of compensation, and selection for
training, including apprenticeship. OWNER agrees to post in conspicuous places,
available to employees and applicants for employment, notices setting forth the
provisions of this nondiscrimination clause.
(2) OWNER will, in all solicitations or advertisements for employees placed by or on
behalf of OWNER, state that all qualified applicants will receive consideration for
employment without regard to race, color,religion, sex or national origin.
C. Age
In accordance with the policy of the Executive Branch of the federal government, OWNER
covenants that neither it nor any of its officers, members, agents, employees, program participants
or subcontractors, while engaged in performing this contract, shall, in connection with the
employment, advancement or discharge of employees or in connection with the terms, conditions or
privileges of their employment, discriminate against persons because of their age or because of any
handicap, except on the basis of a bona fide occupational qualification, retirement plan or statutory
requirement.
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OWNER further covenants that neither it nor its officers, members, agents, employees,
subcontractors, program participants, or persons acting on their behalf, shall specify, in solicitations
or advertisements for employees to work on this contract, a maximum age limit for
suchemployment unless the specified maximum age limit is based upon a bona fide occupational
qualification, retirement plan or statutory requirement.
D. Disability
In accordance with the provisions of the Americans With Disabilities Act of 1990
("ADA"), OWNER warrants that it and any and all of its, subcontractors will not unlawfully
discriminate on the basis of disability in the provision of services to the general public, nor in the
availability, terms and/or conditions of employment for applicants for employment with, or
employees of OWNER or any of its subcontractors. OWNER warrants it will fully comply with
ADA's provisions and any other applicable federal, state and local laws concerning disability and
will defend, indemnify and hold City harmless against any claims or allegations asserted by third
parties or subcontractors against City arising out of OWNER'S and/or its subcontractors' alleged
failure to comply with the above-referenced laws concerning disability discrimination in the
performance of this agreement.
E. City Ordinances
This contract is made and entered into with reference specifically to the ordinances codified
at Chapter 17, Article III, Division 3 ("Discrimination in Employment Practices"), of the City Code
of the City of Fort Worth,,and OWNER hereby covenants and agrees that OWNER, its officers,
members, agents, employees and subcontractors, have fully complied with alf provisions of same
and that no employee, applicant or program participant has been discriminated against by the terms
of such ordinances by either the OWNER or its officers, members, agents, employees or
subcontractors.
9. Prohibition Against Interest
No member, officer or employee of City or its designees or agents; no member of the
governing body of the locality in which the program is situated; and no other public official of such
locality or localities, who exercises any functions or responsibilities with respect to the program
funded hereunder during his tenure or for one year thereafter, shall have any interest, direct or
indirect, in any contract or subcontract, or the proceeds thereof, for work to be performed hereunder.
OWNER shall incorporate, or cause to be incorporated, like language prohibiting such interest in all
contracts and subcontracts hereunder.
No officer, employee, member or program participant of OWNER or its subcontractors shall
have a financial interest, direct or indirect, in this contract or the monies transferred hereunder or be
financially interested, directly or indirectly, in the sale to OWNER of any land, materials; supplies
or services purchased with any funds transferred hereunder, except on behalf of OWNER, as an
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officer, employee, member or program participant. Any willful violation of this paragraph with the
knowledge, expressed or implied, of OWNER or its subcontractors shall render this contract
voidable by the City.
10.Non-Assignment
OWNER will not assign any or all of its rights or responsibilities under this contract without
the prior written approval of City. Any purported assignment without such approval will be a
breach of this contract and void in all respects.
11. Independent Contractor
OWNER shall operate hereunder as an independent contractor and not as an officer, agent,
servant or employee of City. OWNER shall have exclusive control of, and the exclusive right to
control, the details of the work and services performed hereunder, and all persons performing same,
and shall be solely responsible for the acts and omissions of its officers, members, agents, servants,
employees, subcontractors, program participants, licensees or invitees. The doctrine of respondeat
superior shall not apply as between City and OWNER, its officers, members, agents, servants,
employees, subcontractors, program participants, licensees or invitees, and nothing herein shall be
construed as creating a partnership or joint enterprise between City and OWNER. It is expressly
understood and agreed that no officer, member, agent, employee, subcontractor, licensee or invitee
of the OWNER, nor any program participant hereunder, is in the paid service of City and that City
does not have the legal right to control the details of the tasks performed hereunder by OWNER, its
officers, members, agents, employees, subcontractors,program participants, licensees or invitees.
City shall in no way nor under any circumstances be responsible for any property belonging
to OWNER, its officers, members, agents, employees, subcontractors, program participants,
licensees or invitees, which may be lost, stolen, destroyed or in any way damaged; and OWNER
hereby indemnifies and holds harmless City and its officers, agents, and employees from and
against any and all claims or suits.
12. Waiver of Immunity
If OWNER, as a charitable or nonprofit organization, has or claims an immunity or
exemption(statutory or otherwise) from and against liability for damages or injury, including death,
to persons or property, OWNER hereby expressly waives its rights to plead defensively such
immunity or exemption as against City. This section shall not be construed to affect a governmental
entity's immunities under constitutional, statutory pr common law.
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13. Public Liability Insurance
OWNER shall furnish a certificate of insurance as proof that it has secured and paid for
policies of public liability and automobile liability insurance covering all risks incident to or in
connection with the execution, performance, attempted performance or nonperformance of this
contract and agreement.
The amounts of such insurance shall not be less than the maximum liability which can-be
imposed on City under the laws of the State of Texas. At present, such amounts shall be as follows:
Property damage,per occurrence . . . . . . . . . .$100,000
Bodily injury or death, per person . . . . . . . . .$250,000
Bodily injury or death,per occurrence . . . . . .$500,000
with the understanding and agreement by OWNER that such insurance amounts shall be revised
upward at City's option and that OWNER shall revise such amounts within thirty (30) days
following notice to OWNER of such requirements.
OWNER also covenants and agrees to furnish the City of Fort Worth with a certificate of
insurance as proof that it has obtained and paid for a policy of Workers' Compensation Insurance in
the amounts required by State law, covering any and all employees of Contractor active in the
program funded under this contract; and OWNER agrees to require its subcontractors to carry
adequate Workers' Compensation Insurance in the amounts required by State law.
OWNER will submit to City documentation that it has obtained insurance coverage and has
executed bonds as required in this contract within thirty (30) days of the execution of this contract
and prior to payment of any monies hereunder.
14. Termination
City may terminate this contract whenever such termination is determined to be in the best
interest of City, in event of OWNER'S default, inability or failure to perform or to comply with any
of the terms herein, or for other good cause.
The parties acknowledge that HOME funds paid hereunder are intended to provide only
partial funding for OWNER'S program operations. If non-HOME funds included in the Operating
Budget are not forthcoming to OWNER during the contract term, City may terminate this contract.
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Termination will be effected by written notice to OWNER, specifying the portions of the
contract affected and.the effective date of termination. Upon OWNER'S receipt of such termination
notice, OWNER will:
A. Stop work under the contract on the date and to the extent specified by the City;
B. Cease expenditures of HOME monies, except as necessary for completion of the portions of
the contract not terminated; and
C. Terminate all orders and contracts to the extent that they relate to terminated portions of the
contract.
City will have no responsibility or liability for OWNER'S expenditures or actions occurring
after the effective date of the contract termination.
15. Certification Regarding Lobbying
The undersigned representative of OWNER hereby certifies, to the best of his or her
knowledge and belief,that:
A. No federal appropriated funds have been paid or will be paid, by or on behalf of OWNER,to
any person for influencing or attempting to influence an officer or employee of any agency,
a member of Congress, an officer or employee of Congress in connection with the
awarding of any federal contract, the making of any federal grant, the making of any federal
loan, the entering into of any cooperative agreement and the extension, continuation,
renewal, amendment, or modification of.any federal contract, grant, loan or cooperative
agreement.
B. If.any funds other than federally appropriated funds have been paid or will be paid to any
person for influencing or attempting to influence an officer or employee of any agency, a
member of Congress, an officer or employee of Congress, or an employee of a member of
Congress in connection with this federal contract, grant, loan or cooperative agreement,
OWNER shall complete and submit Standard Form-LLL, "Disclosure Form to Report
Lobbying," in accordance with its instructions.
C. The OWNER shall require that the language of this certification be included in all
subcontracts or agreements involving the expenditure of federal funds.
16. Covenants to run with the land.
The OWNER hereby subjects the Project to the agreements, covenants and restrictions set
forth in this contract and Covenant. The City and the OWNER hereby declare their express intent
that the agreements, covenants and restrictions set forth herein shall run with the land constituting
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the Property and shall be binding upon the OWNER and its successors and assigns, for the benefit
of the City and its successors and assigns.
The OWNER hereby agrees to include the covenants and restrictions contained in this
contract and Covenant in any documents transferring any interest in the Project to another person in
order that such transferee has notice of, and is bound by, such restrictions, and to obtain from an
transferee the agreement to be bound by and comply with the requirements set forth in this contract;
provided, however, that each and every contract, deed, mortgage or other instrument hereafter
executed covering or conveying the Project or any portion thereof or interest therein, including,
without limitation, any transfer of a beneficial interest in a land trust or a portion thereof, shall
conclusively be held to have been executed, delivered and accepted subject to such covenants and
restrictions, regardless of whether such covenants and restrictions are set forth therein.
17. Miscellaneous Provisions
It is expressly understood and agreed by and between the parties hereto that this
agreement is wholly conditioned upon the actual receipt by the City of HOME funds; that all
monies distributed to OWNER hereunder shall be exclusively from federal monies received under .
said grant and not from any monies of City; and that if such funds under said grant are not timely
forthcoming, in whole or in part, City may, at its sole discretion, terminate this contract and
agreement and City shall not be liable for payment for any work or services.performed by OWNER
under or in connection with this contract.
All terms of this contract shall apply to any and all subcontractors of OWNER which are in
any way paid with HOME funds or who perform any work in connection with OWNER'S program.
The provisions of this contract are severable, and, if for any reason a clause, sentence,
paragraph or other part of this agreement shall be determined to be invalid by a court or federal or
state agency, board or commission having jurisdiction over the subject matter thereof, such
invalidity shall not affect other provisions which can be given effect without the invalid provision.
The failure of the City to insist upon the performance of any term or provision of this
agreement or to exercise any right herein conferred shall not be construed as a waiver or
relinquishment to any extent of the City's right to assert or rely upon any such term or right on any
future occasion.
Should any action, whether real or asserted, at law or in equity, arise out of the execution,
performance, attempted performance or nonperformance of this contract and agreement, venue for
said action shall lie in Tarrant County, Texas.
15
This written instrument and the exhibits attached hereto, which are incorporated by reference and
made a part of this contract for all purposes, constitute the entire agreement between the parties
hereto concerning the work and services to be performed hereunder, and any prior or
contemporaneous, oral or written agreement which purports to vary from the terms hereof shall be
void. Any amendments to the terms of this contract must be in writing and must be approved by
each parry to this contract.
IN WITNESS WHEREOF, the parties hereto have executed four copies of this co tract in
Fort Worth, Tarrant County, Texas,this ' C) .day ofd-' Qjc c,k/ , A.D. 19--1
ATTEST: CITY OF/ffiRT WORTH
Y�
City Secretary Libby Watson
Assistant City Manager
APPROVED AS TO FORM AND LEGALITY: .,-Aelll
Contract Authorization
Assis t City Attorney 4 Date
Date: z,
ATTEST:
M
By.
Secretary David Fielding, President
Mental Health Housing Dvpt. Corp.
16
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this
day personally appeared Libby Watson, known to me to be the person whose name is subscribed to
the foregoing instrument, and acknowledged to me that the same was the act of the City of Fort
Worth and that she executed the same as the act of said City of Fort Worth for the purposes and
consideration therein expressed and in the capacity therein stated.
IVEN UNDER MY HAND SEAL OF OFFICE this day of
A.D. 19
PUBLIC
as r N0TP+RY P
Mate of Te16 96
!k4 Cumrn•ExP.07
Notary Public in and for the
State of Texas
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this
day personally appeared David Fielding, known to me to be the person whose name is subscribed to
the foregoing instrument, and acknowledged to me that the same was the act of Mental Health
Housing Development Corporation and that he executed the same as the act of said Mental Health
Housing Development Corporation for the purposes and consideration therein expressed and in the
capacity therein stated as its duly authorized officer or representative. _��.�'
GIVEN UNDER MY HAND AND SEAL OF OFFICE this c � day of
A.D. 19�,9 --
Not Public in and for the
State of Texas
MA1JRL-CN H. PIKE
SAY COMMISSION EXPIRES
March If, 1995
w;; 17
EXHIBIT A--Program Time Line
On-site Support Services and Resident Organization
A. Professional staff employed by Tarrant County Mental Health Mental Retardation (MHMR)
Services, full time on-site at Spanish Gate Apartments:
MHMR staff will provide intensive support to tenants with long-term mental illnesses so that they
might maintain independent living: daily living skills training, psychosocial rehabilitation,
vocational and employment programs, and help in accessing a variety of .community services,
including mental health services, including mental health services, dental and health services.
Service initiated: JULY 1994*
MHMR staff will provide limited assistance to other Low Income Households in the Program who
may need assistance in linking with a variety of community services.
Service initiated: JULY 1994**
B. Professional staff employed by Catholic Charities,part-time on-site at Spanish Gate Apartments:
Immigration Services caseworkers will conduct employment counseling with Vietnamese
immigrants.
Service initiated: JULY 1994**
Job Readiness Program will conduct on-site programs if the need can be established
Service initiated: FEBRUARY 1995
English-as-a-Second-Language (ESL)will be taught on-site 4 hours/week
Service initiated: JULY 1994**
C. Periodic programs and/or training sessions which correspond to the needs and preferences of
adult residents will be conducted on-site. Examples of likely topics: parenting skills, adult
education, crime prevention, first-time home ownership, budgeting, and consumer issues.
Service initiated: OCTOBER 1994*
18
An after school/summer recreational or educational programs targeting Spanish Gate tenants ages 5
to 12 years will be conducted on-site by volunteers from Catholic Charities
Service initiated: JULY 1994**
Additional programs targeting tenants ages 5 to 12 years will be planned as needs/preference are
identified.
Service initiated: DECEMBER 1994**
D. Programs to enhance economic development opportunities:
Immigration Services caseworkers will conduct employment counseling with Vietnamese
immigrants (refer to Section B).
Service initated: JULY 1994**
Job Readiness Program will be conducted on-site if the need can be established(refer to Section B).
Periodic programs and/or training sessions which correspond to the needs and preferences of adult
residents will be conducted on-site(refer to Section Q.
Service irritated: OCTOBER 1994
E. Residents' Organization: .
OWNER proposes to establish a resident association. It is hoped that consulting residents on
property management issues, ideas for social events and for preferences in scheduling programs and
on-site support services, will help residents to feel empowered to exercise' control over their
environment, will help ignite within them a feeling of community and commitment to their
neighbors, and will give them a forum for developing skills to help change the community around
them.
The first resident activity will be a social event celebrating the completion of construction of the
community room.
Service initiated: JULY 1994**
Consultation on management issues and on ideas for programs will begin after the arrival of the
VESS volunteers.
Service initiated: OCTOBER 1994*
19
F. Additional programs and support services:
Additional programs and support services will be developed to correspond to residents'preferences
and will be guided by the Spanish Gate Advisory Committee and the residents' organization.
Service Imated: FEBRUARY 1995
**After completion of construction/community resource offices in multi-purpose area in June
1994
20
EXHIBIT B--Program Files
The following items of information shall be recorded by the OWNER and placed in the files
pertaining to the Project. These files shall be located on-site at the Property or at the Mental Health
Housing Development Corporation's administrative office and shall be maintained for the length of
time specified in parentheses.
1. Records of all fair housing marketing efforts with respect to the leasing or re-leasing of all
Affordable Units, including copies of all advertisements placed by the OWNER when marketing
Affordable Units. (18 months)
2. Copies of all information included in information packets provided to tenants. (3 years)
3. Copies of all correspondence with the City, social service providers, community groups, and
other entities involved with the Project. (7 years)
4. Tenant files, including: signed original of lease, tenant correspondence, and other tenant
communications. (7 years after termination of tenancy)
5. Tenant profiles for all Low Income Households, including the racial, ethnic, gender and income-
level characteristics of the tenants. This information shall be recorded for current tenants within
ninety (90) days after the necessary rehabilitation and reconstruction work has been performed and
the Project complies with Section 8 Existing Housing Quality Standards. This information shall be
recorded for future tenants with sixty (60) days after move-in. (7 years after termination of tenancy)
6. Reports of activities conducted and social services provided on-site (7 years)
7. Statistics for dates, types, and staffmg.of social services, including: participation levels by
tenants, comments by tenants, requests and inquiries by tenants for different services, outcomes of
services (both successful and unsuccessful). In order to maintain confidentiality, these statistics
may be maintained without identification of specific tenants. (7 years)
21
EXHIBIT C--Reports
The following items of information shall be included in the Quarterly and/or Annual Reports
prepared by the OWNER and submitted to the City, as applicable:
The racial, ethnic and gender characteristics of all applicants who actually look at units,
including the tenants who sign leases. This information applies only to the Affordable Units which
are not rented to Low Income Households with housing assistance provided by a Public Housing
Agency. This information shall be provided within ninety (90) days, for the previous calendar
quarter.
22
i
I
City of Fort , .texas
Mayor and Council Communwation
DATE REFERENCE NUMBER LOG NAME PANE
12/14/93 1 C-14117 I 05SPANISH 1 1 of 4
SUBJECT PURCHASE AND REHABILITATION OF SPANISH GATE APARTMENTS AND,,,,,
TRANSFER OF OWNERSHIP TO MENTAL HEALTH HOUSING DEVELOPMET
CORPORATION
RECOMMENDATION:
It is recommended that the City Council:
1 . Approve the acceptance by the City of Fort Worth of a contract for sale from the
Department of Housing and Urban Development (HUD) for Spanish Gate Apartments, and
2. Approve the acquisition of Spanish Gate Apartments from HUD by the City for $1, and
3. Approve the transfer of Spanish Gate Apartments to the Mental Health Housing
Development Corporation simultaneously at closing, and
4. Approve a contract with the Mental Health Housing Development Corporation for the
rehabilitation of Spanish Gate Apartments using HOME funds in an amount not to exceed
$466,451, and
5. Authorize the Department of Housing and Human Services to submit requests for
reimbursement from HUD for the acquisition and rehabilitation costs through wire transfers
to the Bank of America Local Home Investment Trust Fund Account.
DISCUSSION:
In order to provide safe, decent, affordable housing for very low- and low-income families and
individuals, including persons with physical and/or mental disabilities, the City will purchase
Spanish Gate Apartments from HUD for $1 .00 from the City's General Fund, and transfer
ownership to Mental Health Housing Development Corporation simultaneously at closing.
Spanish Gate Apartments is a 100 unit complex located at 1350 East Seminary Drive. It is
currently owned by HUD.
0 Printed on recycled paper
i
City of Fort , Texas
Mayor and Council Communication
DATE REFERENCE NUMBER FMG_ NAME PAGE
12/14/93 C-14117 05SPANISH 2 of 4
suBJECT PURCHASE AND REHABILITATION OF SPANISH GATE APARTMENTS AND
TRANSFER OF OWNERSHIP TO MENTAL HEALTH HOUSING DEVELOPMENT
CORPORATION
The program planned for Spanish Gate Apartments is an innovative, collaborative community
partnership. Mental Health Housing Development Corporation would own and manage Spanish
Gate Apartments and offer support services at appropriate levels to meet the unique needs of
residents within this community. Housing at this site will be in compliance with the Fair Housing
Marketing Plan, and therefore, will be available to all very low and low-income citizens.
Currently, a mix of population housed at Spanish Gate Apartments includes low-income families
and individuals who are Hispanic, Vietnamese and persons with physical and mental disabilities.
Support services will be provided by.Tarrant County Mental Health Mental Retardation Services _
through two full-time case managers and a residential counselor who will provide intensive
services to residents who have long-term mental illnesses. Catholic Charities will conduct English
as a Second Language classes on site, and counseling with Vietnamese immigrants on
job-readiness and financial case management. A VISTA or VESS volunteer will be provided by
Mental Health Housing Development Corporation to coordinate on-site programs. Mental Health
Housing Development Corporation will maintain all records and assure accountability for the
program effectiveness and appropriateness, including records on support services provided,
demographic profiles, and the number of program participants.
Mental Health Housing Development Corporation has developed expertise in apartment
management for low-income persons through the management of Hanratty Place Apartments.
This 32-unit multi-family property is leased to very low and low-income families and individuals.
Collaboration on areas of mutual concern will be conducted for Spanish Gate Apartments and
Hanratty Place staff. In order to provide security for residents, Mental Health Housing
Development Corporation will contract for a 24-hour security service.
The Mental Health Housing will establish a resident association to provide for a sense of
"community." Through affrication of residents, two apartments will be converted into a
multi-purpose room for resident association gatherings and other programs for residents.
0,6 Printed on recycled paper
of Fort Wotth, Texas
Mayor and Council Communkation '
DATE REFERENCE DER �oG NAA4E PAGE
12/14/93 C-14117 ®SSPANISH 3 of 4
SUBJECT PURCHASE AND REHABILITATION OF SPANISH GATE APARTMENTS AND
TRANSFER OF OWNERSHIP TO MENTAL HEALTH HOUSING DEVELOPMENT
CORPORATION
I
On-site support services will be provided to residents to enable them to successfully live
independently, including programs and classes on: household safety, household finances,
household mechanics and maintenance, utility and energy conservation, consumer and
employment counseling, English as a Second Language, and parenting skills. Educational and
recreational activities for children would be provided, along with neighborhood involvement in
crime watch activities. A 30-year restriction on use will be included by HUD to ensure that the
property continues to serve the needs of low and moderate income individuals for at least 51 %
of residents. If during this period, the facility ceases to meet a national objective, HUD must be
reimbursed at fair market value for the cost of the building, less any portion of improvements
made by non-HOME funds.
The City will utilize HOME funds to acquire and renovate Spanish Gate Apartments in the amount
of $466,451 . Renovations include: asbestos abatement, monitoring and training, controlled
fence access gates, cabinet replacement, repairs to the boiler and chiller, keyless deadbolt locks,
removal of feral cats, and flea eradication. Also included within HOME funding is the acquisition
costs and developer fees, lease translation, and funds for construction of a Community Room
from two existing apartments.
The renovation project will be monitored through the Department of Housing and Human Services
to ensure that the project is in compliance with HOME regulations. Mental Health Housing
Development Corporation will submit to Housing and Human Services an annual recertification
ensuring tenants' incomes are such that they maintain "affordability" of these units for very low
and low-income residents. Also, rental rates must remain affordable. In addition, a sufficient
number of units must be held available for lease to HOME eligible tenants in order to meet the
very low and low-income targeting requirements of the HOME program.
The City Council Housing Programs Committee received a briefing on this project
September 8, 1993.
COUNCIL DISTRICT 8. will benefit from this acquisition.
Indirect costs do not apply to this grant since no City personnel services costs are involved.
_0tea printed on recycled paper
City of Fort Worth., Texas
Mayor and Council Communication
DATE FERENCE NUMBER LOG NAME PAGE
12/14/93 7 C-14117 05SPANISH 4 of 4
SUBJECT PURCHASE AND REHABILITATION OF SPANISH GATE APARTMENTS AND
TRANSFER OF OWNERSHIP TO MENTAL HEALTH HOUSING DEVELOPMENT
CORPORATION
FISCAL INFORMATION/CERTIFICATION:
The Director of Fiscal Services certifies that funds required for the property purchase above are
available in the current operating budget, as appropriated, of the General Fund.
LW:r
Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: (to)
APPROVED
Libby Watson 6140 CITY COUNCIL
Originating Department Head:
'O'C fi dlt 9
Sandra Gonzales 7537 (froth)
0001 541100 0051000 $1.00
For Additional Information
Contact: dw a Felt It W=L%T
Sandra Gonzales 7537
aap�Printed on recycled paper