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HomeMy WebLinkAboutContract 53217-R4A4CSC No. 53217-R4A4 RENEWAL FOUR AND AMENDMENT FOUR TO CITY OF FORT WORTH CONTRACT NO. 53217 This Contract Renewal and Amendment is made and entered into by and between the City of Fort Worth ( "City") and FCM PROPERTIES, LLC, , each individually referred to as a "party" and collectively referred to as the "parties." RECITALS WHEREAS, on December 13, 2019, the City entered into an agreement with the Landlord for rental assistance for a named tenant, City Secretary Office (CSO) Contract No. 53217 (the "Agreement"); WHEREAS, ("Tenant") is a participant in the City's rental assistance program; and WHEREAS, the Agreement's Initial Term was from July 1, 2019 to June 30, 2020 and allowed for annual renewals upon agreement of the Parties; WHEREAS, on July 1, 2022 the parties renewed the agreement for its Third Renewal Term beginning July 1, 2022 and ending June 30, 2023; and WHEREAS, the Parties agree to renew and amend the Agreement as described below. NOW THEREFORE, City and Landlord do hereby agree as follows: RENEWAL OF AGREEMENT The parties agree to renew the term of the Agreement for an additional one year -term beginning Julv 1, 2023 and expiring June 30, 2024 ("Fourth Renewal Term") unless earlier terminated in accordance with the terms of the Agreement. II AMENDMENTS TO AGREEMENT The following terms are hereby amended to replace the referenced terms in the Agreement and shall be binding and enforceable as if they were originally included therein. The first three paragraphs of Section 3.2 Rent and Amounts Payable by City shall be amended and replaced as follows: 3.2 Rent and Amounts Pavable by City CSC No. 53217 Renewal Four and Amendment Four Page 1 of 3 CoFW and FCM Properties OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX The City has been notified that the Tenant's Total Rent during the Initial Term is $1,065.00_per month for the Unit. The City has been notified that the Tenant's Total Rent during the First Renewal Term is $1,100.00 per month for the Unit. The City has been notified that the Tenant's Total Rent during Second Renewal Term is $ 1,200.00 per month for the Unit. The City has been notified that the Tenant's Total Rent during the Third Renewal Term is $1,300.00 per month for the Unit. The City has been notified that the Tenant's Total Rent during the Forth Renewal Term is $1,400.00 per month for the Unit. The Tenant during the Initial Term, shall be responsible for $26.00 of rent per month for the Unit. The Tenant during the First Renewal Term shall be responsible for $39.00 of rent per month for the Unit. The Tenant during the Second Renewal Term shall be responsible for $ 0.00 of rent per month for the Unit. The Tenant during the Third Renewal Term shall be responsible for $168.00 of rent per month for the Unit. The Tenant during the Fourth Renewal Term shall be responsible for $418.00 of rent per month for the Unit. During the Initial Term City shall pay $1,039.00 towards the Tenant's Total Rent for the Unit ("City Portion"). During Tenant's First Renewal Term, the City Portion shall be $1,061.00. During Tenant's Second Renewal Term, the City Portion shall be $1,200.00. During Tenant's Third Renewal Term, the City Portion shall be $1,132.00. During Tenant's Fourth Renewal Term, and until either this Agreement expires or Landlord is notified by City otherwise, the City Portion shall be $982.00. Neither City nor does HUD assume any obligation for the Tenant's Portion of the rent, or for payment of any claim by Landlord against Tenant. The City's sole obligation is limited to paying the City Portion of the Rent in accordance with this Agreement. Tenant shall be liable for rent, payments, and other fees associated with the Unit and City shall not be obligated by law or in equity for any amount other than the City Portion. III. All terms and conditions of the Agreement not amended herein remain unaffected and in full force and effect, are binding on the Parties and are hereby ratified by the Parties. [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK] [SIGNATURE PAGE FOLLOWS] CSC No. 53217 Renewal Four and Amendment Four Page 2 of 3 CoFW and FCM Properties IN WITNESS WHEREOF, the parties hereto have executed this agreement, to be effective this July 1, 2023. FOR CITY OF FORT WORTH: '5 1,C.4— Name: Fernando Costa Title: Assistant City Manager Date: APPROVAL RECOMMENDED Name: Victor Turner Title: Director APPROVED AS TO FORM AND LEGALITY Q.a '/'GI)W/ Name: Jessika Williams Title: Assistant City Attorney Contract Compliance Manager: By signing I acknowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all performance and reporting requirements. cv-a&e- C A'rza/ Name: Cyndee Garza Title: Sr. Human Services Specialist CSC No. 53217 Renewal Four and Amendment Four CoFW and FCM Properties FOR LANDLORD: Ty�v-�'i Tommy Hatley (Jul 7, 202311:54 CDT) Name: Tommy Hatley Title: Property Manager Date: `, u l 7, 2023 po4vvopb a4F FORA naL ATTEST: 0!`g ° •10 Ovo 0=4 aaa rEXA5a4a nbnaana�' Name: Jannette Goodall Title: City Secretary Date: Jul 10) 2023 M&C No.: 22-0569 OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX Page 3 of 3 FCM PROPERTIES, L.L.C. AGREEMENT TO REM OR LEASE This agreement is made and entered into on June 15, 2023, between Mikka Cline hereinafter "Tenants", and FCM PROPERTIES, L.L.C., hereinafter "Landlord". 2. Premises: Subject to the terms and conditions below, Landlord rents to Tenants, and 3. Term: The terms of the rental shall begin on July 1, 2023 and shall continue until June 30, 2024 then convert to a month -to -month lease basis unless written notice of termination is given by either party at least 30 days before the end of the above lease term or renewal period or unless another lease is signed by all parties. 4. Rent: Rent is due on the 111t of every month without demand. On signing this agreement or by July 1, 2023 Tenants shall pay the Landlord the sum of $1,400.00, to be used as rent for July 1, 2023 through July 31, 2023. Thereafter, Tenants shall pay to Landlord a monthly rent of $1,400.00 payable in advance by 5:00 PM of the THIRD day of each month. For rent increases or lease changes effective at the end of the lease term or renewal, at least 30- day's notice to Tenants is required. If such notice is given to Tenants, this lease shall automatically renew on a month -to -month basis at the increased rental rate or with the lease change, at the beginning of the effective date of the rental increase or lease change. 5. Payment of Rent: Rent shall be paid using the tenant portal which includes ACH payment, credit card and pay at 7-Eleven, Ace Cash Express & CVS. See Exhibit A. If Landlord is requested to pick up rent Tenants agree to pay Landlord $50.00 for each rent collection, also Tenants agree to give Landlord at least 24 hours advance notice. Only full rent payments will be accepted, no partial payments are allowed. 6. Late Charges: If Tenants fail to pay the rent in full by the third day of each month, Tenants shall pay Landlord a late fee of $50.00 the first day and $10.00 for each additional day the rent continues to be unpaid. Tenants shall pay a $50.00 fee if a 3-day notice is delivered for non-payment of rent. By this provision, Landlord does not waive the right to insist on payment of the rent in full on the day it is due. Any monies received will be applied first to fees then the last month's rent balance. Any monies left over will then be applied to the current month's rent. Any balance rolling over to the following month will incur a $50.00 Carryover fee. Late fees and all other fees are subject to change without written or advanced notice to tenants, tenants are responsible for obtaining the most current fee pricing schedule from Landlord. 7. Returned Check Charges: In the event any check or online ACH payment offered by Tenants, or either of them, to Landlord in payment of rent or any other amount due under this agreement is returned for lack of sufficient funds or a closed or nonexistent account or any other reason, Tenants shall pay to Landlord a return charge in the amount of $50.00 plus additional late charges outlined in paragraph 6. 8. Deposit: On signing this agreement Tenants shall pay to Landlord the sum of $1,000.00 as security as the term is defined by the Texas Statues. Tenants may not, without Landlord's prior written consent, apply this security deposit to rent or to any other sum due under this agreement. Within thirty days after Tenants has vacated the premises, Landlord shall furnish Tenants with an itemized written statement of the basis for, and the amount of any security deposit retained by the Landlord. Landlord may withhold only that portion of Tenant's security deposit necessary (a) remedy any default by Tenants to include the payment of rent, (b) to repair damages to the premises exclusion of ordinary wear and tear and/or, (c) to clean the premises if necessary. 9. Utilities: Tenants shall be responsible for payment of all utility charges. Electric and gas utilities must stay active while tenant has possession. If tenant does not maintain these utilities while they have possession landlord can activate the utilities and tenant will be charged all costs incurred by landlord. 10. Use and Occupancy: The premises are to be used only as a private residence for Tenants listed in clause 1 of this agreement and their legal children and for no other persons or purpose without Landlord's prior written consent. Guests may stay up to ten days in any six month period if they register with the manager or Landlord after the fifth day. Occupancy by guests staying more than ten days is prohibited without Landlord's written consent and shall be considered to be a breach of paragraph 14. Tenants agree to pay Landlord $75.00 each month for each additional person who shall occupy the premises for more than 10 days in any capacity. If Tenants fails to inform Landlord of additional people occupying property, the $75.00 per person per month fee will be assessed retroactive to the date commencing this rental agreement. 11. Condition of Premises: Tenants acknowledge that they have examined the premises, including carpets, drapes, and paint, and have found them to be in good safe and clean condition and repair. Tenants agree to provide landlord a written list of any deficiencies within 3 days of this agreement, a copy of which Tenants hereby acknowledges receipt of, and which is hereby deemed to be incorporated into this agreement by this reference. As long as Tenants occupy this property Tenants will be liable for all costs associated with unclogging a toilet drain if anything other than toilet paper is found in the drain system. Tenants will be responsible for any garbage disposal/drain that is clogged due to unapproved food like but not limited to; pasta, rice, peels, egg shells, coffee grounds, animal bones or any foreign objects. Grease, oil, and fat are not approved to pour down drain. No smoking inside the property, tenants agree to pay a minimum of $500 for smoke damage. Tenants agree to (a) replace light bulbs and smoke detector batteries as needed. HVAC air filters should be replaced at least every 3 months. If tenant does not change HVAC air filter regularly causing the AC/Heating coil to not perform as it should tenant agrees to pay full cost of repair, (b) keep the premises in good order and repair, and upon termination of tenancy, to return the premises to Landlord in a condition identical to that which existed when Tenants took occupancy, except for ordinary wear and tear, (c) immediately notify Landlord of any defects or dangerous conditions in and about the premises of which they become aware, and (d) reimburse to Landlord, on demand by Landlord of his or her agent, for the cost of any repairs to the premises damaged by Tenants, or their guests or invites. 12. Possession: The failure of Tenants to take possession of the premises shall not relieve them of their obligation to pay rent. In the event Landlord is unable to deliver possession of the premises to Tenants for any reason not within Landlord's control, including but not limited to failure or prior occupants to vacate as agreed or required by law, or partial or complete destruction of the premises, Landlord shall not be liable to Tenants except for the return of all sums previously paid hereunder by Tenants to Landlord, in the event Tenants choose to terminate this agreement as a result of Landlord's inability to deliver possession. 13. Assignment and Subletting: Tenants shall not sublet any part of the premises or assign this agreement without the prior written consent or Landlord. 14. Pest Control: Pest control will be provided by the Tenants. 15. Pets: There are no pets allowed and no visiting pets. If any pets are found on the property, without the Landlords written permission than Tenants agree to pay Landlord a $500 non-refundable pet fee and $50 a month additional rent beginning at the start of the lease. 16. Fences, Sheds & Decks: Tenants acknowledge that fences, sheds & decks are rented "as is" and Landlord reserves the right to not make repairs or replacements. 17. Fireplace: If your unit has a fireplace, Tenants agree to have the fireplace professionally inspected and cleaned prior to use each year, by a licensed chimney cleaning and inspection company. If any repairs are needed the Tenants will notify Landlord in writing. Tenants will refrain from using the fireplace until such repairs have been made by landlord. Tenants are prohibited from personally making repairs or hiring a non- professional to make fireplace repairs/cleanings. Fireplaces can be extremely dangerous. No one under the age of 18 should ever be allowed to create or maintain a fire in a fireplace. Children should be kept several feet away from an active fireplace. Tenants agree to purchase and use "free standing" metal fireplace screen/glass to prevent sparks and ashes from escaping the fireplace. Tenant, at tenant's own cost can have glass and chain covers professionally installed on the fireplace if they so wish. 18. Access for Inspection and Emergency: Tenants agree that Landlord's agents may enter the premises in the event of an emergency or to make repairs or improvements, supply agreed services, or exhibit the premises to prospective purchasers or Tenants. Except in case of emergency Landlord shall give Tenants reasonable notice of intent to enter the premises for the purposes mentioned herein. To facilitate Landlord's right of access, Tenants shall not, without Landlord's prior written consent, alter or re -key any locks to the premises. At all times Landlord or Landlord's agent shall be provided with a key or keys capable of unlocking all such locks and gaining entry. Tenants further agree to notify Landlord if they install any burglar alarm system including instructions on how to disarm it should Landlord so request. 19. Quiet Enjoyment: Tenants shall be entitled to quiet enjoyment of the premises. Tenants shall not use the premises in such a way as to violate any law or ordinance, commit waste or nuisance, or annoy, disturb, inconvenience, or interfere with the quiet enjoyment of any other Tenants or nearby Tenants. 20. Repairs and Alterations: Except as provided by law, or as authorized by the prior written consent of Landlord, Tenants shall not make any repairs or alterations to the premises. Landlord will contact authorized repair personnel in a prompt manner, to exclude weekends and holidays, when the repair is not an emergency. When the situation requires immediate service to prevent further damage to the property, authorized repair personnel will be contacted immediately, to include weekends and holidays. 21. Damage to Premises and Financial Responsibility: In the event the premises are damaged by fire or other casualty covered by insurance, Landlord shall have the option either to (1) repair such damage and restore the premises, this agreement continuing in full force and effect or (2) give notice to Tenants at any time within thirty (30) days after such damage terminating this agreement as of a date to be specified in such notice. In the event of the giving of such notice, this agreement shall expire and all rights of Tenants pursuant to this agreement shall terminate. Landlord shall not be required to make any repairs or replacements of any property brought onto the premises by Tenants. Tenants agree to accept financial responsibility for any damage to the premises from fire or casualty caused by Tenant's negligence. Tenants shall carry a standard renter's insurance policy from a recognized insurance firm, or as an alternative, warrants that they will be financially responsible for losses not covered by Landlord's fire and extended coverage insurance policy. Damages or plumbing stoppages caused by Tenants negligence or misuse will be paid by Tenants. Additionally, Tenants are financially responsible for broken windows, doors and any damage to the interior and exterior of the home that is not caused by an Act Of God. 22. Attorney's Fees: In an action or legal proceeding to enforce any part of this agreement, the Tenants will pay Landlord for all attorney's fees and costs. 23. Special Delivery: Tenants agree to fully reimburse Landlord for the cost of certified mail, overnight mail, courier service or any other special delivery service. There will be a minimum $25.00 fee for special handling for each occurrence if Landlord feels the service is necessary. This fee can increase without notice. 24. Contractual Lien and Abandonment: All personal property on the premises (except property statutorily exempt by Section 54.052 of the Texas Property Code) is subject to a contractual lien to secure payment of delinquent rent. To exercise contractual lien rights, Landlord may peacefully enter the premises (and any storerooms) and remove and store all such property, provided, however, Tenants must be present or written notice of entry must be left afterward. If Tenants has been evicted by judicial process or has abandoned the leased property, Landlord's representatives or law officers may peacefully enter, remove, and place all of tenants property on the curb. If Tenants and all other persons are absent from the premises for 5 consecutive days during the leased term or any renewal or extension period while any rent is delinquent, the premises may be deemed by Landlord as abandoned. 25. Storage and Sale: Property which is removed or stored by Landlord or law officers because of abandonment, mutual agreement or court eviction order shall be returned to Tenants upon payment of reasonable charges and expenses for packing, removing, and storing all the property, and the property, and the property may be sold for nonpayment thereof under any sale procedures. Property which is removed by Landlord under contractual lien shall be returned to Tenants upon (1) all delinquent rent and (2) all storage charges which accrue on such property after Tenants "surrender" of the premises. The property may be sold for nonpayment of such rent or charges under the sale procedures. There shall be no sale or disposition of any of the foregoing property except pursuant to the lease. Any sale under the lease shall take place only after 30-day written notice of time and place of sale is sent certified mail return receipt requested to Tenants last ]mown address. Sale may be public or private and shall be subject to any recorded chattel mortgage or financing statement. Sale shall be to the highest cash bidder; proceeds shall first be credited to cost of sale and then indebtedness and surplus shall be mailed to Tenants at the above leased premise's address. Such procedures shall not necessitate court hearing. 26. Receipt of Legal Documents: Landlord or the person signing this agreement on Landlord's behalf, is authorized to manage the said premises, and is authorized to act for and on behalf of Landlord for the purposes or service of process and for the purpose of receiving all notices and demands, at the address indicated below Landlord/Agent's signature herein. 27. Move -out: Tenants agree to provide Landlord at least 30 days written notice of intent to move out. If a 30-day notice is not given in writing tenant forfeits deposit in full and will be responsible for any unpaid back rent and/or tenant dama%±_. Tenant owes rent for a minimum of 30 days once the notice is submitted even if tenant moves out before the 30 days expire. Tenants agree to pay rent until the Tenant's personal belongings are out of the house and the Tenants return the keys to the Landlord and the Tenants and Landlord together conduct a walk-through inspection of the house. Tenants agree to have all carpet in house professionally cleaned. Tenants agree to keep all interior walls painted original color. If Tenants paint the wall(s) a color other than original color than Tenants agree to pay the full cost of repainting the wall(s). Tenants agree to pay Landlord a minimum of $200.00 for any trash removal. Upon move -out Tenants agree to provide soft -white working light bulbs in all lighting fixtures. within in each fixture lightbuibs must be of the same type and wattage. Tenant agrees to pay landlord $10.00 for each light bulb that must be replaced or added to a fixture. If there are oil stains in garage or driveway tenants agree to pay a minimum of $200.00. Tenants will call Landlord to setup a walk-through appointment, which will be conducted Monday through Saturday, 10:00 AM through 5:00 PM. No walk through's will be performed after 5:00 PM or on Sunday's or Federal holidays. If Tenants move out prior to the Lease Ending Date or without providing a written 30-day notice of intent to move out, then Tenants agree to pay all cost-of-reletting plus a $200.00 early reletting fee. Cost- of-reletting shall include, but not be limited to leasing fees, advertising, re -keying of locks, painting, necessary utilities, cleaning (including carpets), trash removal and lost rental income. Cost-of-reletting does not include damages caused by Tenants which is covered in paragraph 11. 28. Condominiums Only: Tenants acknowledges if there is a condominium Association, they will have the right to fine the Landlord if the Tenants or their guest(s) break the rules. Tenants agree to assume full financial responsibility for all fines levied against the Landlord by the Condominium Association regardless of fault. Tenants will reimburse the Landlord for each fine within 10 days of being notified. Any monies received from Tenants will always be applied first toward fines, then late fees and then the rent. � 29. Green Care: Tenants agree to keep the lawn, shrubs and trees watered and neatly always trimmed. Tenants agree to always keep the height of the entire lawn or any parts thereof to less than 5 inches. Landlord will provide one notice (phone call, electronic message or note taped on Tenants door), giving the Tenants 5 days to mow. After the 5th day Tenants agree to pay Landlord $1000.00 to mow the lawn for each occurrence. Tenants agree to keep the lawn, shrubs and trees sufficiently watered. Tenants agree to allow the Landlord, at Tenant's expense (use Tenant's water), to water the lawn, shrubs, and trees at Landlords discretion. If tenant does not water lawn acid/or foundation and there is visible damage to the house (cracks in brick/walls) or outside cracking of yard tenant agrees to pay the greater of $500.00 or the cost of the repair. 30. Renters Insurance: In the event of a fire, theft or any natural disaster Tenants acknowledge that their personal belongings are not covered by the Landlords insurand that they will obtain renters insurance. 31. SMOKE Ar,ARM (S) : Tenants acknowledge by signing this agreement that they will inspect and test smoke alarms before occupying the property. Tenants will immediately report any deficiencies to the landlord. Tenants agree not to occupy the property until the deficiency is corrected. Tenants further agree to maintain (including battery replacement) the smoke alarm(s) while residing at this property. If tenant cannot reach smoke detector to replace battery or cannot afford a new battery landlord will repl a the battery free of charge immediately after tenant informs landlord of such issue. 32. Improvements and Repairs: Tenants acknowledge they have no right to order services and goods on behalf of the Landlords without prior written approval from the Landlord. If any improvement or repair is made by the Tenants or someone they contracted with, then Tenants agree to take full financial responsibility for such improvement and/or repairs. Upon move - out all improvements and/or repairs made or paid for by the Tenants will become the property of the Landlords at no additional cost to the Landlord_ 33. Mold Prevention: Tenants agree to remove moisture accumulation on windows, walls, and other surfaces as soon as possible; look for leaks in washing machine hoses; turn on exhaust fans in the bathroom before showering and in the kitchen before cooking; keep the shower - curtain liner inside the tub when showering; periodically open windows and doors on days when humidity is less than 50 percent. Tenants agree to clean the infected area with soap. and water, apply disinfectant or bleach to an area five or six times the size of mold. Sources of persistent moisture: excessive open -pot cooking, insufficient drying of carpets, plant watering overflows and pet urine and air-conditioning drip pans with clogged condensation lines. 34. Roof Attachments: At no time shall Tenants attach any object to the roof. The roof includes, but is not limited to the shingles, face boards, decking, gutters, and chimney. If any object, such as, but not limited to additional lighting, satellite dish and/or antenna(s) is attached to the roof then Tenants agree to immediately pay Landlord $1,000.00. Once the Tenants has been notified and billed the Tenants agree that any monies given to the Landlord will first be applied to this debt, then any late fees and then any rents owed. 35. Building Attachments: At no time shall Tenants attach any object to the building! If any object is attached to the building, then Tenants agree to immediately pay Landlord $1,000.00. Once the Tenants has been notified and billed the Tenants agree that any monies given to the Landlord will first be applied to this debt, then any late fees and then any rents owed. 35. Security/Alarm system: Some units may have a home alarm or security system. If it does the system was installed by a previous Landlord or Tenants. If your unit has an alarm or security system, the undersigned will not guarantee it will work or work accurately. Since it was not installed by Landlord the Tenants agree to use it at his or her own risk and agree to hold the Landlord harmless from any loss to property or person. If Tenants washes to use the system Landlord strongly suggest the Tenants, have it thoroughly checked out and maintained by a knowledgeable professional. Landlord will not reimburse Tenants for an 5 costs associated with the system. Landlord will not provide monitoring or repair service to the system. 37. Alarm Maintenance: Landlord denies any responsibility for activation, use, repair, or monthly maintenance of any and all alarm systems currently or otherwise installed on the property. Tenants further agrees to hold harmless Landlord, Officers, and Employees of FCM Properties, L.L.C. from any damages, loss of goods or loss of life determined to have been preventable by the activation, use, repair or monthly maintenance of any and all alarm systems currently or otherwise installed on the property. 38. Rental Increase: Yearly rental increases are determined by the cost of maintaini the unit. 39. Special Provisions: none 40. Fees: From time -to -time fees charged by FCM, including court costs will change. Tenant is responsible for obtaining the most current price structure from Landlord. No advanced notice of changes to fees will be issued. 41. Default: If the Tenants is in default of any part of this lease, then Tenants loses their right to possess the premises. 42. Unenforceable Provisions: In the event any one or more of the provisions contained in this agreement shall for any reason be held invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of the agreement, and this agreement shall be construed as if such invalid, illegal, or unenforceable provision had not been included in the agreement. 43. Entire Agreement: This document constitutes the entire agreement between the parties, except for any written addendums, and no promises or representations, other than those contained herein and those implied in law, have been made by Landlord or Tenants. This agreement has been signed on the day and year first written herein. Landlord/Agent: �� PO Box 183204 Arlington, TX 76096 1,,e)-� � j 1 Date f ! U (SIGNED DUPLICATE ORIGINALS) M City of Fort Worth, Texas Mayor and Council Communication DATE: 08/09/22 M&C FILE NUMBER: M&C 22-0569 LOG NAME: 19NS 2022-2023 ACTION PLAN SUBJECT (ALL) Conduct Public Hearing and Approve the City of Fort Worth's 2022-2023 Annual Action Plan for the Use of Federal Grant Funds in the Amount of $13,124,648.00 to be Awarded by the United States Department of Housing and Urban Development from the Community Development Block Grant, HOME Investment Partnerships Program, Emergency Solutions Grant, and Housing Opportunities for Persons with AIDS Program, Authorize Collection and Use of Program Income, Authorize Execution of Related Contracts, Adopt Appropriation Ordinance, and Authorize Waiver of Indirect Costs (PUBLIC HEARING - a. Report City Staff: Sharon Burkley; b. Public Presentations; c. Council Action: Close Public Hearing and Act on the M&C) RECOMMENDATION: It is recommended that City Council: 1. Conduct a public hearing to allow citizen input and consideration of the City's 2022-2023 Annual Action Plan for use of federal grant funds to be awarded by the United States Department of Housing and Urban Development in the amount of $13,124,648.00 from the Community Development Block Grant, HOME Investment Partnerships Program, Emergency Solutions Grant, and Housing Opportunities for Persons with AIDS grant programs, and for the use of program income from activities using prior years' federal grant funds; 2. Approve the City's 2022-2023 Annual Action Plan for submission to the United States Department of Housing and Urban Development, including allocations of grant funds to particular programs and activities as detailed below; 3. Authorize the collection and use of an estimated $50,000.00 of program income which is expected to result from activities using prior years' Community Development Block Grant funds for the City's Priority Repair Program; 4. Authorize the collection and use of an estimated $50,000.00 of program income which is expected to result from activities using prior years' HOME Investment Partnerships Program grant funds for the City's Homebuyer Assistance Program, and authorize the use of 10 percent of the program income for administrative costs; 5. Authorize the City Manager or his designee to execute contracts for one year terms with the agencies listed in Tables 1,2, and 3 below for Program Year 2022-2023 for Community Development Block Grant, Emergency Solutions Grant, and Housing Opportunities for Persons with AIDS grant funds, contingent upon receipt of funding, and satisfactory completion of all federal regulatory requirements; 6. Authorize the City Manager or his designee to extend the contracts for up to one year if an agency or department requests an extension and such extension is necessary for completion of the program, or to amend the contracts if necessary to achieve program goals provided any amendment is within the scope of the program and in compliance with City policies and all applicable laws and regulations governing the use of federal grant funds; 7. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Grants Operating Federal Fund in the total amount of $13,124,648.00 consisting of $6,996,710.00 in Community Development Block Grant funds, $3,266,685.00 in HOME Investment Partnerships Program grant funds, $628,543.00 in Emergency Solutions Grant funds, and $2,232,710.00 in Housing Opportunities for Persons with AIDS grant funds, plus estimated program income in the amount of $100,000.00, all subject to receipt of such funds; and 8. Authorize a waiver of the Neighborhood Services Department indirect cost rate of 17.29%, estimated total of $330,793.14. DISCUSSION: The City of Fort Worth's (City's) 2022-2023 Annual Action Plan summarizes the major housing and community development activities and proposed expenditures for the program year beginning October 1, 2022 and ending September 30, 2023 for use of federal grant funds totaling $13,124,648.00 from the United States Department of Housing and Urban Development (HUD) from the Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), Emergency Solutions Grant (ESG), and Housing Opportunities for Persons with AIDS (HOPWA) grant programs. It also summarizes the use of program income resulting from activities using prior years' CDBG and HOME funds, the primary purpose of which is to benefit low -and moderate -income persons in Fort Worth. ESG funds primarily benefit persons experiencing homelessness, and HOPWA funds primarily benefit low- and moderate -income persons with HIV/AIDS. Staff developed initial recommendations for the allocation of the estimated funding from HUD based on prior year's funding levels. One public hearing was held on April 27, 2022 to provide citizens the opportunity to participate in the development of the Annual Action Plan. Recommendations for award amounts were considered and adopted by the Community Development Council on May 11, 2022. These funding recommendations were presented in City Council Work Session on June 7, 2022. A 30-day public comment period was held from July 1, 2022 to August 1, 2022. Notice of this public comment period was published in the Fort Worth Star -Telegram on June 26, 2022; in the Weatherford Democrat on June 28, 2022; in the Hood County News and Wise County Messenger on June 29, 2022; in Cleburne Times Review and La Vida News on June 30, 2022; and in Glen Rose Reporter on July 1, 2022. Any comments received are maintained by the Neighborhood Services Department in accordance with federal regulations. The City held two public hearings as part of the HUD required citizen participation process. The first public hearing was held by staff on July 13, 2022, and the second public hearing is scheduled for the City Council meeting on August 9, 2022. A summary of staff's final funding recommendations is provided below in Tables 1, 2, and 3. A Powerpoint presentation listing funding recommendations is also attached. The 2022-2023 Annual Action Plan will be submitted to HUD by August 15, 2022. Indirect costs totaling approximately $330,793.14 could be charged to these grants, as the Neighborhood Services Department indirect cost rate is 17.29% in the City's most recent Cost Allocation Plan. A waiver of these costs is requested to allow allocation of these funds to further support the programs and services to assist low -to -moderate income citizens. COMMUNITY DEVELOPMENT BLOCK GRANT For Program Year 2022-2023, it is recommended that the amount of $6,946,710.00 in CDBG funds and an estimated amount of $50,000.00 in CDBG program income totaling $6,996,710.00 be allocated as follows: • Public Services Agencies- $1,042,006.00: Includes social services for low- and moderate -income persons, persons with disabilities, and disadvantaged persons • Housing Programs - $4,153,352.00: Includes funding for the City's Priority Repair Program, Cowtown Brush -Up, homebuyer and housing services, accessibility modifications for seniors and persons with disabilities, and related project delivery costs for these programs • Major Projects - $362,010.00: Includes funding for Southside Community Center improvements • Administration - $1,389,342.00: Includes costs for administering the CDBG grant, including allocations for the Financial Management Services and Development Services Departments • Estimated Program Income - $50,000.00: Includes up to $50,000.00 in funding for the City's Priority Repair Program. Any CDBG program income over the estimated amount not used for the Priority Repair Program will be allocated to priority activities in the City's Consolidated Plan, subject to the City Council approval. HOME INVESTMENT PARTNERSHIPS PROGRAM For Program Year 2022-2023, it is recommended that the amount of $3,216,685.00 in HOME funds and an estimated amount of $50,000.00 in HOME program income totaling $3,266,685.00 be allocated as follows: • Homebuyer Assistance Program - $129,623.50: Includes funding for down payment and closing cost assistance for low- and moderate - income homebuyers • Community Housing Development Organization - $707,430.00: HUD requires that a minimum of 15 percent of HOME funds be allocated to Community Housing Development Organizations (CHDOs) for affordable housing projects. These funds will be used by Development Corporation of Tarrant County (DCTC) for single-family infill development in the Polytechnic neighborhood. All housing developed with these funds will be sold to homebuyers making at or below 80 percent of area median income (AMI), set by HUD. • Major Projects - $2,057,963.00: Includes funds ($1,000,000.00) allocated to the affordable housing project to be developed by Fort Worth Housing Solutions (FWHS) as a part of its Choice Neighborhood Initiative (CNI) grant and funds ($1,057,963.00) allocated to the development of permanent supportive housing. • Administration - $321,668.50: Includes costs for administering the HOME grant • Estimated Program Income - $50,000.00: Includes funding for the Homebuyer Assistance Program and HOME grant administrative costs. HUD allows the City to use 10 percent of any HOME program income towards the cost of administering the HOME grant. HOME program income over the estimated amount not used for the Homebuyer Assistance Program will be allocated to priority activities in the City's Consolidated Plan, subject to City Council approval. HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS For Program Year 2022-2023, it is recommended that the amount of $2,232,710.00 in HOPWA funds be allocated as follows: • Public Service Agencies - $1,515,729.00 • Neighborhood Services Department - $650,000.00 • Administration - $66,981.00 EMERGENCY SOLUTIONS GRANT For Program Year 2022-2023, it is recommended that the amount of $628,543.00 in ESG funds be allocated as follows: • Public Service Agencies - $581,403.00 • Administration - $47,140.00 CONTRACT RECOMMENDATIONS The Community Development Council and Neighborhood Services Department staff recommend that contracts be executed with the public service & CDBG subrecipient agencies for the amounts shown in the following tables: Community Development Block Grant Contracts TABLE 1: CDBG AGENCIES AGENCY CONSOLIDATED PROGRAM AMOUNT PLAN GOAL Homebuyer Housing Channel Affordable Housing Guardianship Services, Inc. Aging -In -Place Meals -On -Wheels, Inc. of Aging -In -Place Tarrant County Meals -On -Wheels, Inc. of Aging -In -Place Tarrant County Girls Incorporated of Tarrant Children/Youth County Training and Mentorship United Community Centers, Children/Youth Inc. Training and Mentorship Boys & Girls Clubs of Children/Youth Greater Tarrant County, Inc. Training and Mentorship Young Men's Christian Children/Youth Association of Metropolitan Training and Fort Worth Mentorship AB Christian Learning Children/Youth Center Training and Mentorship Youth Development Children/Youth FFortress Ce enter, Inc. Training and Mentorship The Presbyterian Night Homeless Shelter of Tarrant County, Services Inc. Education and $100,000.00 Housing Counseling Services Financial Exploitation $70,000.00 Prevention Center Home -Delivered $72,006.00 Meals Transportation $50,000.00 Program Leadership Program $75,000.00 Educational Enrichment Program $100,000.00 After School Program $60,000.00 Y Achievers $50,000.00 After School Program $75,000.00 Fortress PreSchool $50,000.00 Moving Home Case $125,000.00 Management Poverty Reduction Computer Skills The Ladder Alliance and Household Training - Next Level $70,000.00 Stabilization Program Easter Seals North Texas, Poverty Reduction Inc. and Household Employment Services $50,000.00 Stabilization The Women's Center of Poverty Reduction Working Families and Household $50,000.00 Tarrant County, Inc. Success Stabilization Center for Transforming Poverty Reduction Level Up Lives and Household Microenterprise $45,000.00 Stabilization ICDBG Public Service Agencies Total $1,042,006.00 Rehabilitation, Education Accessibility and Advocacy for Citizens Accessibility Improvements for $125,000.00 with Handicaps DBA Improvements Low Income REACH, Inc. Residents Accessibility United Way of Tarrant Accessibility Improvements for $50,000.00 County Improvements Low Income Senior Residents Fort Worth Area Habitat for Preserve Aging Humanity, Inc. DBA Trinity Cowtown Brush Up $455,000.00 Housing Stock Habitat for Humanity Paint Program ICDBG Subrecipient Agencies Total $630,000.00 ITOTAL CDBG CONTRACTS $1,672,006.00 Housing Opportunities for Persons with AIDS Contracts TABLE 2: HOPWA AGENCIES AGENCY PROGRAM AMOUNT AIDS Outreach Administration, Supportive Services, Short -Term $429,850.00 Center, Inc. Rent, Mortgage, and Utility Assistance (STRMU) Tarrant County Administration, Facility -Based Operations, Samaritan Supportive Services, Tenant -Based Rental Housing, Inc. Assistance (TBRA) (TOTAL HOPWA CONTRACTS $1,085,879.00 $1, 515,729.00 Emergency Solutions Grant Contracts TABLE 3: ESG AGENCIES AGENCY The Presbyterian Night Shelter of Tarrant County, Inc. Lighthouse for the Homeless DBA True Worth Place The Salvation Army Center for Transforming Lives SafeHaven of Tarrant County ITOTAL ESG CONTRACTS PROGRAM Shelter Operations/Services Shelter Operations/Services Homelessness Prevention Rapid Re -Housing Shelter Operations/Services AMOUNT I' $130,220.00 $176, 000.00 $105,535.00 $98,743.00 $70,905.00 $581,403.00 All figures have been rounded to the nearest dollar for presentation purposes. These programs are available in ALL COUNCIL DISTRICTS. Each of these grants is an entitlement grant rather than a competitive grant received from the United States Department of Housing and Urban Development (HUD). Entitlement grants provide funds to agencies based on a formula, prescribed in legislation or regulation, rather than based on review. These specific grants are allocated to the City of Fort Worth based on population size and per capita income each year. The grants have been consistently awarded to the City since 1974 with the inception of the Community Development Block Grant (CDBG) through the Housing and Community Development Act of 1974. The Emergency Shelter (renamed Solutions) Grant (ESG) was authorized in 1987 through the McKinney-Vento Homelessness Assistance Act. The HOME Investment Partnerships Program (HOME) and the Housing Opportunities for Persons with AIDS (HOPWA) Program were authorized in 1990 through the Cranston -Gonzales National Affordable Housing Act of 1990. With these grants, administrative and program delivery allocations support approximately 72 FTE positions in the Neighborhood Services Department, which is funded nearly 70% with various grants including these entitlement grants. Positions funded with HUD Entitlement grants are subject to grant availability. In the event of a grant award being decreased or eliminated, Neighborhood Services Department would review programs and services funded by the grants and determine a level of service and staffing that aligns with the available funding. Alternative to consider may include staff and program reductions or eliminations. FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendations and adoption of the attached appropriation ordinance, funds will be available in the current operating budget, as appropriated, of the Grants Operating Federal Fund. The Neighborhood Services Department (and Financial Management Services) will be responsible for the collection and deposit of funds due to the City. Prior to an expenditure being incurred, the Neighborhood Services Department has the responsibility to validate the availability of funds. This is a reimbursement grant. Submitted for Citv Manaaer's Office bv: Fernando Costa 6122 Oriainatina Business Unit Head: Victor Turner 8187 Additional Information Contact: Sharon Burkley 5785