HomeMy WebLinkAboutContract 24970 CITY SECRETARY
CONTRACT NO.
STATE OF TEXAS S
8
COUNTY OF TARRANT 8
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 Mitchell
Boulevard Development Corporation ("Contractor"), by and through Gerald Shaw, its duly
authorized President. Contractor's business address is 2517 Thannisch, Fort Worth, Texas
76105.
WHEREAS, the City of Fort Worth ("City") has received a grant from the United States
Department of Housing and Urban Development ("HUD") through the Home Investment
Partnerships Program ("HOME"), Program Nos. M-98-MC-48-0204, 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, the primary purpose of the HOME program pursuant to the National
Affordable Housing Act of 1990 ("NAHA") and 24 CFR 92, ("the Regulations") is to benefit
low and very low income citizens by providing them with affordable housing; and
WHEREAS, Contractor, a nonprofit corporation managed by a volunteer Board of Directors,
is to increase the number of decent, affordable housing units available to low and moderate
income persons; and
WHEREAS, the citizens and the City Council of Fort Worth have determined that the
development of safe, decent and affordable housing is needed for moderate, low and very low
income citizen's of Fort Worth;
NOW, THEREFORE, THIS AGREEMENT FURTHER WITNESSETH:
1 GENERAL PROVISIONS
1.1 Purpose
1.1.1 The express purpose of this contract is to provide Contractor with HOME funds not to
exceed One Hundred Thirty Thousand dollars ($130,000) to provide funding for new
construction of single family infill houses.
1.1.2 The fund may be used for the construction of new homes for sale to low income
homebuyers. The following are the specific activities that are eligible for funding: 1)
acquisition of vacant lots; 2) site preparation; 3) construction of new homes; 4) related
soft costs such as appraisal fee, architect's and engineer's fees, city permits, legal fees,
Pagel
and costs associated with the sale of homes to qualified homebuyers. The objective is to
build and sell within the contract period one home to a qualified homebuyer. Contractor
will use home sale proceeds to establish a revolving fund to finance the construction of
more homes for sale to low income qualified homebuyers in accordance with the Exhibit
A.
1.1.3 The eligible costs are those allowed under the HOME regulations for the specific
activities mentioned in 1.1.2. Funds generated from the sale of each house will be
returned to the City to be deposited in the Contractor's revolving fund account. These
funds disbursed to Contractor upon request to develop additional affordable housing
projects. Funds received from the sale of each house in excess of the development cost
from the HOME project account may be retained by the Contractor, as long as the
original corpus amount of the project fund is maintained and the excess funds are used to
further the development of affordable housing for low and moderate income homebuyers.
1.1.4 The City hereby certifies that Contractor is a Community Housing Development
Organization(CHDO) and acts as a housing developer as defined by HUD.
1.1.5 The City shall act through its agent, the City Manager, or his duly authorized
representative, unless otherwise stated in this agreement. Contractor agrees to comply
with the uniform administrative requirements contained in Section 92.505 of the HOME
regulations, including Subpart F, and applicable City Codes and regulations.
1.2 Duration/Period of Affordability
1.2.1 This Contract begins on the date of execution of this contract and terminates twelve 12)
months after execution of the contract except that the provisions relating to affordability
shall remain in effect through the period of affordability of the last house sold under this
program as provided in 12.2 below. This Contract may be extended for one (1) one-year
term. Contractor shall request the extension in writing and submit the request to the City
sixty (60) days prior to the end of the contract. The City may then approve the extension
of the Contract for another year. It is specifically understood that it is the City's sole
discretion whether to approve or deny the request.
1.2.2 The housing owned or developed by Contractor shall remain affordable as required by
Section 92.254 of the Regulations. Affordability means that the actual principal, interest,
property taxes, and insurance (PITI) for the purchase does not exceed thirty percent
(30%) of the monthly adjusted income of a family with an income at or below eighty
percent (80%) of the median income of the area, adjusted for family size, as established
by HUD. If the housing does not meet the affordability requirements as stated below, the
funds used to produce said housing must be repaid to the City. HOME-funded
homebuyer programs must remain affordable housing for minimum periods of: 5 years
where the per unit amount of HOME funds provided is less than $15,000; 10 years where
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the per unit amount of HOME funds provided is $15,000 to $40,000; and 15 years where
the per unit amount of HOME funds provided is greater than $40,000. Repayment of the
HOME funds attributable to the unit or units that do not maintain the HOME affordability
requirements will be required from the Contractor, if, at any time the Contractor is found
to be non-compliant to the above time limits.
1.3 Income Requirement and Use of House as Principal Residence
1.3.1 The HOME Program uses the income definitions used in the Section 8 Program. Annual
income includes earned income, income from assets, and income from other sources as
defined by 24 CFR 813. Annual income is used to establish homeowner eligibility. The
annual income of the homebuyer, adjusted for family size shall not exceed eighty percent
(80%) of the area median income as established by HUD. Contractor shall use the most
current HUD Program Income Guidelines to determine program eligibility.
1.3.2 The Contractor shall insure that the homebuyer will use the home purchased under this
program as his/her principal residence during the period of affordability.
1.4 Housing Quality and Other Standards.
1.4.1 Housing units built and sold to homebuyers under this program shall meet the most
current HUD Housing Quality Standards (HQS), all applicable standards under the City
Codes and ordinances, the Uniform Federal Accessibility Standards (UFAS) and for new
construction, the Model Energy Code published by the Council of American Building
officials.
1.5 Other Requirements
1.5.1 The sales price of the house shall not exceed ninety-five percent (95%) of the median
purchase price of the type of single family housing for Fort Worth as determined by
HUD.
1.5.2 The sales price of the house shall not exceed the appraised value of the property as
determined by an independent appraiser.
1.5.3 Contractor shall demonstrate that the CHDO funds shall be leveraged by other
funding sources.
1.6. Independent Contractor
1.6.1. Contractor shall operate hereunder as an independent contractor and not as an officer,
agent, servant or employee of the City. Contractor shall have exclusive control of, and
the exclusive right to control the details of the work and services performed hereunder,
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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 Contractor, 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 Contractor. It is
expressly understood and agreed that no officer, member, agent, employee, subcontractor,
licensee or invitee of the Contractor, 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 Contractor, its officers, members, agents, employees,
subcontractors, program participants, licensees or invitees.
1.6.2 City shall in no way nor under any circumstances be responsible for any property
belonging to Contractor, its officers, members, agents, employees, subcontractors,
program participants, licensees or invitees, which may be lost, stolen, destroyed or in any
way damaged; and Contractor hereby indemnifies and holds harmless City and its
officers, agents, and employees from and against any and all claims or suits.
1.7 Termination.
1.7.1 This contract may be terminated by the City in the event of default, inability, or failure to
perform on the part of Contractor, or whenever such termination is determined by the
City to be in the City's best interest. Likewise, the contract may be terminated by
Contractor if the City does not provide funds pursuant to this agreement. The contract
may be terminated for mutual convenience upon agreement of the parties.
1.7.2 The parties acknowledge that HOME funds paid hereunder are intended to provide only
partial funding for Contractor's program operations. If non-HOME funds to implement
the program are not forthcoming to the Contractor during the contract term, the City may
terminate this contract.
1.7.3 Pursuant to the City's CHDO Program and Funding Requirements, Contractor shall begin
actual acquisition and construction work within 12 months from the date of contract
execution. Failure to start within the 12-month period is grounds for contract
termination.
1.7.4 City shall notify the Contractor in writing of any breach of this contract, and specify a
reasonable time within which to cure the particular breach. After being notified of such
non-material breach, if Contractor fails to cure the non-material breach within the time
stated in the notice, this contract shall automatically terminate at the expiration of the
stated time allowed for cure.
1.7.5 Contractor will return to City any unused monies previously distributed under this
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contract within thirty (30) days of the effective date of contract termination. City will
have no responsibility or liability for Contractor's expenditures or actions occurring after
the effective date of the contract termination.
1.8 Venue
1.8.1 Should any action, whether real or asserted, at law or in equity, arise out of the execution,
performance, attempted performance or non-performance of this agreement, venue for
said action shall be in Tarrant County, Texas.
1.9 Written Instrument is Entire Agreement
1.9.1 All terms of this contract shall apply to any and all subcontractors of Contractor which
are in any way paid with HOME funds or who perform any work in connection with
Contractor's Program.
1.9.2 The provisions of this agreement 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.
1.9.3 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.
1.9.4 This written instrument and the exhibits attached hereto, which are incorporated by
reference and made a part of this contract for all purposes, constitutes the entire contract
by the parties hereto concerning the work and services to be performed under this
contract. Any prior or contemporaneous oral or written agreement, which purports to
vary the terms of this contract, shall be void. Any amendments to the terms of this
contract must be in writing and must be approved by each party to this contract.
1.9.5 The paragraph headings contained herein are for convenience in reference to this contract
and are not intended to define or to limit the scope of any provision of this contract.
2 DUTIES AND RESPONSIBILITIES OF CITY
2.1 Disbursement of Funds
2.1.1 The City will furnish federal grant funds, (HUD HOME Investment Partnerships Program
No. M-98-MC-48-0204) for use as stated herein. The City will monitor the use of such
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funds to ensure appropriate use of the funds. Funds shall be disbursed after execution of
this contract and compliance with the provisions therein. Disbursements from the HOME
account for actual acquisition, construction, and/or sale will not be made until actually
needed for payment. Payment of expenses will require completion of a "Request For
Funds" form, and a copy of supporting documents, including the property sales contract,
appraisal, notice to seller, environmental review and contract between contracts and
builder.
2.2 Amount of Funds
2.2.1 It is agreed that the total distribution of federal grant funds made available to or paid on
behalf of Contractor, during the term of this contract shall not exceed the total sum of
One Hundred Thirty Thousand dollars ($130,000).
2.2.2 Contractor will use the One .Hundred Thirty Thousand dollars ($130,000) for the
acquisition of lots and construction of homes, and resale of these homes to low income
buyers in accordance with the development budget in Exhibit B.
2.2.3 Contractor shall be paid on an advance of funds basis for all expenses incurred under this
contract to pay for specific acquisition of lots, and related soft costs pertaining to property
identified for the purpose of this Program. Prior to the release of funds for construction
draws work items must pass inspection by the City's Housing Department inspectors.
3 DUTIES AND RESPONSIBILITIES OF CONTRACTOR
3.1 Statement of Work, Budget and Time Line for Goals and Expenditures
3.1.1 Contractor shall acquire vacant lots and build new homes and sell these homes to
qualified low- income homebuyers as defined in Paragraph 1.3.1 above. Contractor shall
insure that homebuyers complete a homeownership training program prior to closing.
Contractor shall also help homebuyers obtain closing cost assistance and/or deferred loan
payment under the City's Homebuyer's Assistance Program or other available programs
to make housing affordable to the homebuyers. Funds will be utilized only to provide
affordable housing within the City of Fort Worth, Texas.
3.2 Budget
3.2.1 Contractor agrees that the HOME funds will be expended in accordance with the
projected Development Budget in Exhibit B attached hereto and incorporated for all
purposes. Any change exceeding ten percent (10%) of the total cost per housing unit
shown in this Budget shall be made only with the prior written approval of the City.
Under no circumstances shall the total amount of program funds expended by Contractor
from funds paid by the City exceed One Hundred Thirty Thousand dollars ($130,000).
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3.2.2 The funds will be payable based on a drawdown schedule based on extent of completion
of each house as approved by the City housing inspectors. Contractor shall demonstrate
that the CHDO funds shall be leveraged by other funding sources.
3.3 Time Line for Goals and Expenditures
3.3.1 Contractor shall work in accordance with the schedule in the Program Implementation in
Exhibit C and ensure that program goals and expenditures correspond with the
completion of the Program.
3.4 Reversion of Assets
3.4.1 Contractor agrees to return to the City any HOME funds remaining on hand at the end of
the contract. If repayments, interest or other returns on investment attributable to HOME
funds are received after the term of this contract, they shall be returned to the City to be
deposited in the City's HOME account established for the Contractor's revolving fund.
In the event the Contractor administering the revolving fund established under this
contract is dissolved, this contract shall thereupon terminate. In the event this contract is
terminated with or without cause, or for any reason whatsoever, all assets of the HOME
revolving fund including cash, interest payments thereon from loans or otherwise, all
outstanding notes, mortgages and other instruments to secure HOME funds and any real
property valued in excess of$25,000 owned by the Contractor less than five years or a
longer period of time that was acquired or improved with HOME funds from the
revolving fund shall belong to the City and shall be transferred to the City or to such
assignees as the City may designate.
3.5 Affirmative Marketing
3.5.1 Contractor must adopt affirmative marketing procedures and requirements for all HOME
housing. The procedures and requirements must include methods for informing the
public, owners and potential homebuyers 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. The Contractor will be solely
responsible for the effective marketing responsibilities necessary to achieve the
Contractors' production goals set forth in Paragraph 1.1.1 above.
3.6 Recapture Provisions
3.6.1 Contractor understands that there are specific property recapture requirements on HOME-
funded properties and a requirement that the homebuyer must use the property as its
principal residence. These requirements shall be incorporated in the property deed
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restriction or covenant running with the land. In addition, the loan documents (Deed of
Trust Note) should also incorporate these requirements. The recapture provisions will
remain in effect on property purchased with HOME funds for the affordability periods
described in Paragraph 1.2.2 above.
3.7 Records and Reports
3.7.1 Contractor 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 the Regulations.
3.7.2 Contractor will obtain and keep on file the following information on each client served
by the Program:
3.7.2.1 Annual income and size of the household;
3.7.2.2 Ethnic group, using one of the following five categories:
White, not Hispanic; Black, not Hispanic; Hispanic;
Asian or Pacific Islander; American Indian or Alaskan Native;
3.7.2.3 Whether the head of household is male or female; is a
single male or female householder with or without children;
3.7.2.4 Additional statistical information as may be required by the City Housing
Department or HUD regulations and any amendments thereto.
3.7.3 Contractor will keep on file the following information an
documentation on each individual project:
3.7.3.1 Proof that the project meets the applicable property and other standards;
3.7.3.2 The per unit amount of HOME and non-HOME dollars invested;
3.7.3.3 The compliance with the affirmative marketing requirements and existence of
acceptable procedures;
3.7.3.4 Compliance with relocation requirements, if applicable;
3.7.3.5 Minority and female owned business data, and affirmative fair housing actions;
and
3.7.3.6 Compliance with conflict of interest rules.
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3.7.4 By the 15th of each month for the duration of the contract, including the period
of affordability as applicable, Contractor will supply the City with a report
detailing:
3.7.4.1 Progress toward goal achievement; and
3.7.4.2 Expenditure detail.
3.7.4.3 The amount of leveraging generated by this grant, including items that qualify as
HOME match.
3.7.5 Reports shall be submitted in the format specified by City.
3.8 Cost Principles
3.8.1 Contractor shall comply with the requirements and standards of OMB Circular A-122,
"Cost Principles for Non-Profit Organizations"
3.8.2 For all HOME funded contracts in the amount of$300,000 or more, Contractor must
submit to City an annual audit prepared in accordance with 24 CFR part 84 generally,
with specific reference to OMB Circular A-133. The audit may cover the period of the
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.
3.8.3 City reserves the right to perform an audit of Contractor'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 Contractor agrees to
allow access to all pertinent materials as described in section headed records and reports
above. If such audit reveals a questioned practice or expenditure, such questions must
be resolved within fifteen (15) days after notice to Contractor 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).
3.8.4 If as a result of any audit it is determined that Contractor has misused, misapplied or
misappropriated all or any part of the grant funds described herein, Contractor agrees to
immediately reimburse the City the amount of such monies so misused, misapplied or
misappropriated, plus the amount of any sanctions, penalty or other charge levied
against City because of such misuse, misapplication or misappropriation.
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3.8.5 Contractor agrees to likewise monitor the effectiveness of the services and work to be
performed by its subcontractors.
3.9 Compliance with All Applicable Laws and Regulations
3.9.1 Federal
3.9.1.1 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:
3.9.1.1.1 Title VI of Civil Rights Act of 1964 (42 USC 2000d et seq)
3.9.1.1.2 Title VIII of Civil Rights Act of 1968 (42 USC 3601 et seq)
3.9.1.1.3 Executive Orders 11063, 11246, as amended by -11375 and as
supplemented by Department of Labor regulations (41 CFR, Part 60)
3.9.1.1.4 Section 504 of the Rehabilitation Act of 1973 (29 USC 794)
3.9.1.1.5 The Age Discrimination Act of 1975 (42 USC 6101 et seq)
3.9.1.1.6 National Environmental Policy Act of 1969 (NEPA) and the related
authorities listed HUD's implementing regulations (24 CFR Part 58)
3.9.1.1.7 Immigration Reform and Control Act of 1986 (Pub. L. 99-603, 100 Stat
.3359, as amended) specifically including the provisions requiring
employer verifications of legal worker status of its employees
3.9.1.1.8 Housing and Community Development Act of 1987 (Pub. L. 100-242, 101
Stat. 1815, as amended)
3.9.1.1.9 The Americans with Disabilities Act of 1990(42 USC 12101 et seq)
3.9.1.1.10 National Affordable Housing Act of 1990
3.9.1.1.11 The Drug Free Workplace Act of 1988 (24 CFR part 23, subpart F)
3.9.1.2 Contractor, in the operation of its program, will also comply with Office of
Management and Budget Circular A-122 and attachments and revisions thereto,
regarding principles for determining costs for HOME-funded programs.
3.9.2 Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 USC
1701
3.9.2.1 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, 12 USC 1701, Contractor covenants to abide by the requirements of the said
Section 3. It requires as follows:
3.9.2.1.1 That, to the greatest extent feasible, opportunities for training and
employment be given to lower income residents of the project area, and
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3.9.2.1.2 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.
3.9.2.2 Contractor 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.
Contractor certifies and agrees that it is under no contractual or other
impediment, which would prevent it from complying with the requirements.
3.9.2.3 Contractor 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 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.
3.9.2.4 Contractor 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, CFR135. Contractor 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 Contractor with
a preliminary statement of ability to comply with the requirements of these
regulations.
3.9.2.5 City and Contractor 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 City and Contractor, and their respective successors,
assignees and subcontractors. Failure to fulfill these requirements shall subject
Contractor and its subcontractors, its successors and assignees, to those
sanctions specified by the Grant Agreement through which federal assistance is
provided and to such sanctions as are specified by 24 CFR
3.9.3 Clean Air Act; Clean Water Act; Environmental Protection Agency(EPA) Acts
and Regulations
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3.9.3.1 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 EPA 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, Contractor agrees and, with respect to a
nonexempt transaction, shall require each subcontractor to agree to the
following requirements:
3.9.3.1.1 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(EPA)pursuant to 40 CFR 15.20;
3.9.3.1.2 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;
3.9.3.1.3 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;
3.9.3.1.4 Agreement by Contractor that it will include or cause to be included the
criteria and requirements of this section in every nonexempt subcontract,
requiring that Contractor will take such action as City may direct as a
means of enforcing such provisions.
3.9.3.2 In no event, shall any amount of the assistance provided under this contract be
utilized with respect to a facility which has given rise to a conviction under the
Clean Air Act or the Clean Water Act.
3.9.4 Other Laws
3.9.4.1 Contractor 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 the Regulations.
Contractor further promises and agrees that it has read, and is familiar with, terms and
conditions of the Regulations under which funds are granted and that it will fully
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comply with same. It is agreed and understood that, if City calls the attention of
Contractor to any such violations on the part of Contractor or any of its officers,
members, agents, employees, program participants or subcontractors, then Contractor
shall immediately desist from and correct such violation.
3.10 Prohibition Against Discrimination
3.10.1 Contractor, in the execution, performance or attempted performance of this contract
and agreement, will not discriminate against any person because of sex, race, religion,
color or national origin, nor will Contractor permit its officers, members, agents,
employees, subcontractors or program participants to engage in such discrimination.
3.10.2 During the performance of this contract Contractor agrees, and will require all its
subcontractors to agree, as follows:
3.10.2.1 Contractor will not unlawfully discriminate against any employee or
applicant for employment because of race, color, religion, sex or national
origin. Contractor 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. Contractor agrees to post
in conspicuous places, available to employees and applicants for
employment, notices setting forth the provisions of this nondiscrimination
clause.
3.10.2.2 Contractor will, in all solicitations or advertisements for employees placed by or
on behalf of Contractor, state that all qualified applicants will receive
consideration for employment without regard to race, color, religion, sex or
national origin.
3.10.3 In accordance with the policy of the Executive Branch of the federal government,
Contractor 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.
3.10.4 Contractor further covenants that neither it nor its officers, members, agents,
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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 such employment unless the specified maximum
age limit is based upon a bona fide occupational qualification, retirement plan or
statutory requirement.
3.10.5 In accordance with the provisions of the Americans With Disabilities Act of 1990
("ADA"), Contractor warrants that it and any 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 Contractor or any of its subcontractors.
Contractor 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 Contractor's and/or its
subcontractors' alleged failure to comply with the above-referenced laws concerning
disability discrimination in the performance of this agreement.
3.10.6 This agreement 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 Contractor hereby
covenants and agrees that Contractor, its officers, members, agents, employees and
subcontractors, have fully complied with all provisions of same and that no employee,
applicant or program participant has been discriminated against by the terms of such
ordinances by either the Contractor or its officers, members, agents, employees or
subcontractors.
4.1 Prohibition Against Interest
4.1.1 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 (1) year
thereafter, shall have any interest, direct or indirect, in any contract or subcontract, or
the proceeds thereof, for work to be performed hereunder. Contractor shall
incorporate, or cause to be incorporated, like language prohibiting such interest in all
contracts and subcontracts hereunder.
4.11.2 No officer, employee, member or program participant of Contractor 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 Contractor of any land, materials, supplies or services purchased with any
funds transferred hereunder, except on behalf of Contractor, as an officer, employee,
Page 14
member or program participant. Any willful violation of this paragraph with the
knowledge, expressed or implied, of Contractor or its subcontractors shall render this
contract voidable by the City of Fort Worth.
4.11.3 No officer, employee, agent, consultant, elected official or appointed official of the
participating jurisdiction, Contractor or its subcontractors who exercised any
functions or responsibilities with respect to activities assisted with HOME funds or
who are in a position to participate in a decision making process or gain inside
information with regard to these activities, may obtain a financial interest or benefit
from a HOME assisted activity, or have an interest in any contract, subcontract, or
agreement with respect thereto, or the proceeds thereunder, either for themselves or
those with whom they have family or business ties, during their tenure or for one (1)
year thereafter.
4.12 Assignment
4.12.1 Contractor shall not assign all or any part of its rights, privileges, or duties under this
contract without the prior written approval of City. Any attempted assignment of
same without approval shall be void, and shall constitute a breach of this contract. It
is agreed that the City has the right to inspect and approve in writing any proposed
subcontracts between Contractor and any subcontractor engaged in any activity in
conjunction with this HOME funded project prior to any charges being incurred.
4.13 Indemnity
4.13.1 Contractor covenants and agrees to indemnify, hold harmless and defend, at its own
expense, City and its officers, agents, servants and employees from and against any
and all claims or suits for property loss or damage and/or personal injury, including
death, to any and all persons, of whatsoever kind or character, whether real or
asserted, arising out of or in connection with the execution, performance, attempted
performance or nonperformance of this contract and agreement and/or the operations,
activities and services of the Program described herein, whether or not caused, in
whole or in part, by alleged negligence of officers, agents, servants, employees,
contractors or subcontractors of City; and Contractor hereby assumes all liability
and responsibility of City and its officers, agents, servants, and employees for any and
all claims or suits for property loss or damage and/or personal injury, including death,
to any and all persons, of whatsoever kind or character, whether real or asserted,
arising out of or in connection with the execution, performance, attempted
performance or nonperformance of this contract and agreement and/or the operations,
activities and services of the programs described herein, whether or not caused in
whole or in part, by alleged negligence of officers, agents, servants, employees,
contractors or subcontractors of City. Contractor likewise covenants and agrees to
and does hereby indemnify and hold City harmless from and against any and all
Page 15
injury, damage or destruction of property of City, arising out of or in connection with
all acts or omissions of Contractor, its officers, members, agents, employees,
subcontractors, invitees, licensees, or program participants, or caused, in whole or in
part, by alleged negligence of officers, agents, servants, employees, contractors or
subcontractors of City.
4.13.2 Contractor will maintain a blanket fidelity coverage in the form of insurance or bond
in the amount of One Hundred Thirty Thousand dollars ($130,000), to insure against
loss from the fraud, theft or dishonesty of any of Contractor's officers, agents,
trustees, directors or employees. The proceeds of such ,bond shall be used to
reimburse City for any and all loss of HOME monies occasioned by such misconduct.
To effectuate such reimbursement, such bond shall include a rider stating that
reimbursement for any loss or losses thereunder shall be made directly to City for the
uses and benefit of Contractor.
4.14 Waiver of Immunity
4.14. 1 If Contractor, 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, Contractor 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 or common law.
4.15 Insurance Requirements
4.15.1 Directors and Officers (D. & O) Liability Insurance One Million dollars ($1,000,000)
each claim. The volunteer board of directors is to be covered in addition to the entity,
per se,that is Mitchell Boulevard Development Corporation.
4.15.2 Commercial General Liability (CGL) Insurance One Million dollars ($1,000,000)
each occurrence
4.15.3 Business Automobile Liability(BAP) Insurance One Million dollars($1,000,000)
each accident: The policy is to be endorsed to cover"Any Auto' used in the course of
services contracted herein. Such insurance may be excess to primary personal auto
liability insurance maintained by employees and volunteers to the Contractor.
4.15.4 Terms of Coverages
4.15.4.1 The City of Fort Worth is to be endorsed as an additional insured under the CGL
and AL insurance policies.
Page 16
4.15.4.2 Each insurance policy shall be endorsed to provide the City of Fort Worth a
minimum thirty(30) days' notice of cancellation or non-renewal.
4.15.4.3 Insurers of policies shall be authorized by the Texas Department of Insurance
(TDI) to do business in the state of Texas and shall be of financial strength and
solvency equivalent to the A.M. Best Key Rating A: VII.
4.15.4.4 Contractor shall provide the City of Fort Worth certificate(s) of insurance
documenting coverages specified in 3.15
4.15.5 In the event any state or federal or other applicable regulatory entity requires
additional insurance or bonding requirements which supersede those specified herein,
such state or federal or other applicable regulatory entity's requirements shall prevail.
4.15.6 Contractor performing construction items also convenants and agrees to furnish the
City 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
Contractor agrees to require its subcontractors to carry adequate Workers'
Compensation Insurance in the amounts required by State law.
4.15.7 Contractor 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.
4.16 Program Income Qualifications for Families
4.16.1 Contractor agrees to abide by HUD income guidelines, which are specific to the type
of project that is undertaken by the Contractor.
4.17 Certification Regarding Lobbying
4.17.1 The undersigned representative of Contractor hereby certifies, to the best of his or her
knowledge and belief, that:
4.1.7.1.1 No federal appropriated funds have been paid or will be paid, by or on behalf of
Contractor, 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.
Page 17
4.1.7.1.2 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, member of Congress in connection with this federal contract, grant,
loan or cooperative agreement, Contractor shall complete and submit Standard
Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its
instructions.
4.1.7.1.3 The Contractor shall require that the language of this certification be included in
all subcontracts or agreements involving the expenditure of federal funds.
IN WITNESS WHEREOF, the parties her o have executed four copies of this contract in
Fort Worth, Tarrant County, this Y> y of�._ , A.D. 19
ATTEST: CITY OF ORT WORTH
By:
City ecretary Lib y Watson
Assistant City Manager
APPROVED AS TO FO M AND LEGALITY:
Ching '
c ng Hua, sst. City Attorney
MITCHE =T, B VARD DE LO NT
contract Authorization
By:
rald S , President
Date
Page 18
STATE OF TEXAS g
8
COUNTY OF TARRANT 8
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.
At
GIVEN UN ER MY HAND AND SEAL OF OFFICE this day of
, A.D. 19 q41.
ROSELLA BARNES �� .s
* * NOTARY PUBLIC
State of Texas Notary Public in and for the State of Texas
a'� Comm. Exp. 03-31-2001
STATE OF TEXAS S
COUNTY OF TARRANT
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas,
on this day personally appeared Gerald Shaw, known to me to bP the person whose name is
subscribed to the foregoing instrument, and acknowledged to me that the same was the act of
Mitchell Blvd. Development Corporation and that he executed the same as the act of said
Mitchell Blvd. 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 /�th day of
du.xve )A.D. 19 qj.
Notary Public in and for the State of T&as
P`"���, ANN MARIE MENDEZ
• .} Notary Public,state of Texas
MY commission Fires
`;` `%� SEPT.8,2002
Page 19
i
EXHIBIT A
PROGRAM SUMMARY
PROGRAM TITLE
MITCHELL BLVD.DEVELOPMENT CORP.(MBDC)-CHDO PROJECT
1998 HOME-CHDO
PERSONAL SERVICES
$0
SUPPLIES
$0.00
CONTRACTUAL SERVICES $130,000.00
CAPITAL OUTLAY
$0.00
TOTAL
$130,000.00
DESCRIPTION:
MBDC will acquire vacant lots in the Mitchell Blvd.neighborhood for new home construction.These newly constructed homes
will be sold to low and very-low income homebuyers.
Funds generated from sale of houses will be returned to the City to establish a revolving fund for MBDC to use to build
additional affordable homes.
The contract period begins on the date of execution and ends twevel months thereafter.
PROGRAM OBJECTIVES:
To build and sell two houses within the contract period.
PROGRAM MEASURES: Projected
Number of homes built Goals 2
Number of homes sold 2
G. Development budget: Fill out the following form: EXHIBIT B
USE OF FUNDS SOURCE OF FUNDS
ITEMS TOTAL COST 1998 1998 OTHER SOURCES AMOUNTS
0 DO
H#SSE lgOBU?SE
PREDEVELOPMENT
1. Market Study 0
2. Site Control
3.Architectural Feasibility
4.Other, SURVEY $400.00 $200 5200
Total Predevelopment Cost $400.00 5200
DEVELOPMENT
S.Land Acquisition $5,000.00 S?
6.Building Acquisition
7.Site Preparation $3,000.00 51,500: S_I,500
Total Acquisition Cost $8,000.004,F100
8.Materials $83,000.00 541,500 $¢1,500
9.Labor $36,800.00 518,400 518,400
10.Contingency
559,940 SS9 `:
Total Construction/Rehab Cost $119,800.00
11.Appraisal $500.00 5250:.> 5250
12.Architect.&Engineer Fees 0
13.Construction Management Fee
14.City Permits
1 S.Insurance
5800.00 5400 5400
16.Construction loan interest 0
17.Property survey 0
18.Legal fees
19.Real estate fees
20.Utility hook-up fees $500 <5250 .5250
21.Title&Recording fees
22. Developers fee
TOTAL DEVELOPMENT COST 565,000, $65,040
130,000.00
4
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City of Fort Worth, Texas
qVinvor And commu"ientio"il ouncC
DATE REFERENCE NUMBER LOG NAME :EPA7GE
5/11/99 **C-17423 05FUNDING 1 of 2
SUBJECT 1998 HOME PROJECT FUNDING FOR COMMUNITY HOUSING DEVELOPMENT
ORGANIZATIONS CHDO'S
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the use of$382,200 for Community Housing Development Organizations (CHDO's) under
the Federal HOME Program Year 1998; and
2. Authorize the City Manager to execute contracts, not to exceed a combined total of $382,200 in
Fiscal Year 1998 HOME funds, with the following CHDO's to implement their respective projects as
follows; and
a) $50,000 to JMSL-NDC for construction of single-family infill housing; and
b) $65,000 to Lake Como Area Council, Inc. for construction of single-family infill housing; and
c) $130,000 to Mitchell Boulevard Development Corporation for construction of single-family
infill housing; and
d) $137,200 to Neighborhood Housing Services, Inc. for construction of single-family housing.
3. Authorize the contract performance period on all four contracts to begin on the date of contract
execution and end twelve months thereafter; and
4. Authorize the City Manager to amend the contracts, if necessary, to achieve project goals provided
that the amendment is within the scope of the project and in compliance with applicable laws and
regulations.
DISCUSSION:
On October 13, 1998, the Safety and Community Development Committee (SCDC) approved the
reservation of HOME CHDO Program funds for the following CHDO projects contingent upon the
CHDO's demonstrating capacity and providing evidence of project readiness:
AGENCY PROGRAM
SCOPE OF WORK FUNDS
JMSL-NDC Infill housing construction/acquisition (1 Unit) $ 50,000
Lake Como Area Council Infill housing construction/acquisition (1 Unit) $ 65,000
Mitchell Blvd. Development Corp. Infill housing construction/acquisition (2 Units) $130,000
Neighborhood Housing Services Infill housing construction/acquisition (2 Units) $137,200
City of Fort Worth, Texas
4vagor And Council
DATE REFERENCE NUMBER LOG NAME J PAGE
5/11/99 **C-17423 05FUNDING 2 of 2
SUBJECT 1998 HOME PROJECT FUNDING FOR COMMUNITY HOUSING DEVELOPMENT
ORGANIZATIONS CHDO'S
The agencies were given a deadline of January 31, 1999 to submit the required documentation and
meet certain benchmarks identified by City staff to obtain a recommendation to the SCDC for funding.
All four agencies have met these requirements and project funding is recommended.
As each property is constructed and sold, the proceeds from the sale will be returned to the City and a
revolving fund established for each agency to continue to use the funds to construct additional housing
units.
The proposed projects are located in COUNCIL DISTRICTS 2, 5, 7, 8 and 9.
The SCDC approved this recommendation at its April 13, 1999 meeting.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that upon approval of the above recommendations, funds will be
available in the current operating budget, as appropriated, of the Grants Fund.
LW:j
Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: (to)
1)GR76 539120 005206123180 $ 50,000.00 �e
Libby Watson 6183 1)GR76 539120 005206123190 $ 65,000.00 AP
Originating Department Head: 1)GR76 539120 005206123200 $130,000.00 OITY COUNCIL
1)GR76 539120 005206123340 $137,200.00
Jerome Walker 7537 (from) MAY 11 W
1)GR76 539120 005206123130 $382,200.00
Additional Information Contact: 2)GR76 539120 005206123180 $50,000.00-6
(7l�w�tJ
2)GR76 539120 05206123190 $ 65,000.00 City Secretary of the
2)GR76 539120 005206123200 $130,000.00 City of Fort Worth.Tai,F
Jerome Walker 7537 2)GR76 539120 005206123340 $137,200.00