HomeMy WebLinkAboutContract 27872 CCITY ONTRACT NAO. cam( l
STATE OF TEXAS § 0'/-?
§
COUNTY OF TARRANT §
THIS contract is made and entered into by and between the City of Fort Worth ("City"),
acting by and through Reid Rector, its duly authorized Assistant City Manager, and Volunteers of
America Texas ("Contractor"), by and through David North, its duly authorized President.
Contractor's business address is 1424 Hemphill, Fort Worth, Texas 76104.
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 No. M-01-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 working to increase the number of decent, affordable housing units available to low
and moderate income persons; and
WHEREAS, Contractor is the recipient of a U.S. Department of Housing and Urgan
Development (HUD) Section 811 Supportive Housing for Persons with Disabilities' Capital
Advance Grant in the amount of$1,127,400.
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 citizens of Fort Worth;
NOW, THEREFORE, THIS AGREEMENT FURTHER WITNESSETH:
1. GENERAL PROVISIONS
A. Purpose
The express purpose of this contract is to provide Contractor with HOME funds not to
exceed ONE HUNDRED FIFTY THOUSAND DOLLARS ($150,000.00), which shall be an
non-interest-bearing loan as set forth in a Deed of Trust and Note between the City and
Contractor, for the purchase of real property legally described as Block 4 Lot A2, West Plaza
Addition, Fort Worth, Tarrant County, Texas (the"Property").
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LE-,
The eligible costs are those allowed under the HOME regulations for the specific
activities delineated in the above paragraph. These funds will be disbursed to Contractor on a
drawdown basis upon request.
The City hereby certifies that Contractor is a non-profit organization and acts as a housing
developer as defined by HUD.
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.
2. Duration/Period of Affordability/Project Reporting
This contract begins on the date of execution of this contract and terminates six (6)
months after execution of the contract except that the provisions relating to affordability and
project reporting shall remain in effect through the period of affordability of the rental units
under this program as provided by HOME Regulations. This contract may be extended for one
(6) month 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. It is specifically understood that it is the
City's sole discretion whether to approve or deny the request.
The housing owned or developed by Contractor must qualify as affordable rental housing
as defined in as required by Section 92.252 of the Regulations. If the housing does not qualify as
affordable rental housing, the loan proceeds under this contract, to the extent of any unpaid
amounts of the loan, are immediately due and payable to the City.
The rental housing project must remain affordable without regard to the term of any
mortgage or the transfer of ownership, pursuant to deed restrictions, beginning after project
completion, for not less than fifteen(15) years.
3. Income Eli 'bility
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 tenant eligibility. Contractor shall use the
most current HUD Program Income Guidelines to determine program eligibility.
4. Tenant Selection
Contractor must adopt written tenant selection policies and criteria that:
A. Are consistent with the purpose of providing housing for very low-income and low-
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income persons;
B. Are reasonably related to program eligibility and the applicants' ability to perform the
obligations of the lease;
C. Provide for a) the selection of tenants from a written waiting list in the chronological
order of their application, insofar as is practicable; and b) the prompt written
notification to any rejected applicant of the grounds for rejection.
5. Lease
The Contractor shall use a lease promulgated by the City or U.S. Housing and Urban
Development(HUD) to insure compliance with the provisions in 24 CFR 92.253.
6. Housing Quality and Other Standards.
Housing units constructed under this contract shall meet Housing Quality Standards, City
of Fort Worth Housing Rehabilitation Standards and all other applicable standards under the City
Codes and ordinances.
7. Other Requirements
VOA will be required to execute a Note and Deed of Trust and Assignment of Rents
("Loan Documents") in conjunction with this contract. The City shall retain a first lien position
on the Property prior to the consummation of the construction loan. The Loan will be
subordinated at the time of construction or permanent financing of the Project.
Contractor shall demonstrate that the CHDO funds shall be leveraged by other funding
sources on CHDO ineligible costs.
Project reporting requirements under Section 13.G "Records and Reports" survive the
expiration of this contract and are required during the entire period of affordability.
8. Independent Contractor
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, 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
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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.
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.
9. Termination.
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.
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.
Pursuant to the City's CHDO Program and Funding Requirements, Contractor shall begin
construction work within 180 days from the date of contract execution. Failure to start within the
180 day period is grounds for contract termination.
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 breach,
and if the breach is deemed to be material, Contractor shall have a reasonable time to cure the
breach. If the Contractor fails to cure the breach within a reasonable time, not to exceed (60)
days, this contract shall automatically terminate.
Contractor will return to City any unused monies previously distributed under this
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.
10. Venue
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.
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11. Written Instrument is Entire Agreement
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.
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.
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.
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.
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.
12. DUTIES AND RESPONSIBILITIES OF CITY
A. Disbursement of Funds
The City will furnish federal grant funds, (HUD HOME Investment Partnerships Program
No. M-01-MC-48-0204) for use as stated herein. The City will monitor the use of such 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 purchase of
real property described in Section I.A. will require completion of a "Request For Funds" form,
and a copy of supporting real estate closing documents, including HUD-1.
B. Amount of Funds
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
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HUNDRED FIFTY THOUSAND DOLLARS ($150,000.00).
Contractor will use the ONE HUNDRED FIFTY THOUSAND DOLLARS
($150,000.00) for the purchase of the real property located at Block 4 Lot A2, West Plaza
Addition, Fort Worth, Tarrant County, Texas for construction and lease as residential multifamily
units, in accordance with Exhibit B "Development Budget"..
13. DUTIES AND RESPONSIBILITIES OF CONTRACTOR
A. Statement of Work, Budget and Time Line for Goals and Expenditures
Contractor shall acquire land and construct multifamily units for lease to qualified low-
income tenants.
B. Budget
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 FIFTY THOUSAND DOLLARS ($150,000.00).
The funds will be payable based on a drawdown schedule based on extent of completion
of the project as approved by the City housing inspectors. Contractor shall demonstrate that the
CHDO funds shall be leveraged by other funding sources.
C. Time Line for Goals and Expenditures
Contractor shall work in accordance with the schedule in Exhibit C "Program
Timeline", and ensure that program goals and expenditures correspond with the completion of
the Program.
D. Reversion of Assets
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 development fund.
In the event the Contractor administering the development 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
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development 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 development fund shall belong
to the City and shall be transferred to the City or to such assignees as the City may designate.
E. Affirmative Marketing
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
Section I. Paragraph 2.
F. Recapture Provisions
1. If the Contractor retains ownership of the property for the full period of affordability, no
recapture restrictions will apply.
2. Any sale of the property by the Contractor during the term of affordability will require
immediate repayment of any outstanding HOME funds to the City.
3. The Contractor will establish a right of first refusal to buy the property at sale to be
recorded with the deed for the property.
4. Refinancing of the property by the Contractor shall require the review and prior approval
of the City.
5. In the event of default the order of distribution of resale proceeds are as follows:
a. payment of debt(mortgage/loans incurred to acquire the property);
b. payment of second mortgage;
c. excess proceeds shall be returned to the City of Fort Worth to the extent of the
loan balance;
d. any residual proceeds to be returned to the Contractor.
6. Contractor understands that these specific property recapture provisions are applicable on
HOME funded properties, including the requirement that the rents on the units remain
affordable during the affordability period set forth in this contract.
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G. Records and Reports
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.
2. Contractor will obtain and keep on file the following information on each client served by
the Program:
3. Annual income and size of the household;
4. 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;
5. Whether the head of household is male or female; is a
single male or female householder with or without children;
6. Additional statistical information as may be required by the City Housing
Department or HUD regulations and any amendments thereto.
Contractor will keep on file the following information and documentation on each
individual project:
1. Proof that the project meets the applicable property and other standards;
2. The per unit amount of HOME and non-HOME dollars invested;
3. The compliance with the affirmative marketing requirements and existence of
acceptable procedures;
4. Compliance with relocation requirements, if applicable;
5. Minority and female owned business data, and affirmative fair housing actions;
and
6. Compliance with conflict of interest rules.
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:
1. Progress toward goal achievement; and
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2. The amount of leveraging generated by this grant, including items that qualify as HOME
match.
3. Reports shall be submitted in the format specified by City.
H. Cost Principles
If the Contractor is operating under a non-profit status, as described in Section 501 (c)(3)
of the Internal Revenue Code of 1986, as amended, Contractor. shall comply with the
requirements and standards of OMB Circular A-122, "Cost Principles for Non-Profit
Organizations". If the Contractor is operating as a for-profit entity, Contractor shall comply with
the requirements and standards of Generally Accepted Accounting Practices.
All non-federal entities that expend $300,000 or more in federal funds within one year,
regardless of the source of the Federal award, must submit to the City an annual audit prepared in
accordance with CFR part 84 generally, with specific reference to OMB Circulars A-128 and 133
as appropriate. The 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 City within thirty(30) days of its completion. Costs of preparation of the audit may
be an allowable expenditure of federal funds in an amount proportional to that of the federal
funds used in Contractor's total agency operating budget. Non-federal entities that expend less
than $300,000 a year in federal funds are exempt from Federal audit requirements for that year,
but records must be available for review or audit by appropriate officials of the Federal agency,
pass-through entity (City), and General Accounting Office (GAO). (Exhibit D-Independent
Audit Requirement).
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).
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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I. Monitor Effectiveness of Services and Work
The City will review the activities and performance of each Contractor and subrecipient
not less than annually as required in Section 92.504 (e) of the HOME regulations.
Contractor agrees to fully cooperate with City in monitoring the effectiveness of the
services and work to be performed by Contractor's compliance with the terms of this contract.
The City shall have access at all reasonable hours to offices and records (dealing with the use of
the funds that are the basis of this contract) of Contractor, its officers, directors, agents,
employees, and subcontractors for the purpose of such monitoring.
Contractor agrees to likewise monitor the effectiveness of the services and work to be
performed by its subcontractors.
J. Compliance with All Applicable Laws and Regulations
Federal
Contractor agrees to comply with the following laws and the regulations issued
thereunder as they are currently written or are hereafter amended during performance of
this contract:
Title VI of Civil Rights Act of 1964 (42 USC 2000d et seq)
Title VIII of Civil Rights Act of 1968 (42 USC 3601 et seq)
Executive Orders 11063, 11246, as amended by 11375 and as supplemented by
Department of Labor regulations (41 CFR,Part 60)
Section 504 of the Rehabilitation Act of 1973 (29 USC 794)
The Age Discrimination Act of 1975 (42 USC 6101 et seq)
National Environmental Policy Act of 1969 (NEPA) and the related authorities
listed HUD's implementing regulations (24 CFR Part 58)
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
Housing and Community Development Act of 1987 (Pub. L. 100-242, 101 Stat.
1815, as amended)
The Americans with Disabilities Act of 1990 (42 USC 12101 et seq)
National Affordable Housing Act of 1990
The Drug Free Workplace Act of 1988 (24 CFR part 23, subpart F)
Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 USC
1701
As the work performed under this contract is on a project assisted under a program
providing direct federal financial assistance from the HUD and is subject to the requirements of
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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:
1. That, to the greatest extent feasible, opportunities for training and
employment be given to lower income residents of the project area, and
2. That, to the greatest extent feasible, contracts for work in connection with
the project be awarded to business concerns which are located in or owned in substantial
part by persons residing in the area of the project.
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.
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.
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.
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
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Clean Air Act; Clean Water Act; Environmental Protection Agency (EPA) Acts
and Regulations
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:
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;
2. Compliance with all the requirements of Section 114 of the Clean Air Act,
as amended (42 USC 1857c-8), and Section 308 of the Federal Water Pollution Control
Act, as amended (33 USC 1318), relating to inspection, monitoring, entry, reports and
information, as well as all other requirements specified in said Section 114 and Section
308 and all regulations and guidelines issued hereunder;
3. A stipulation that, as a condition for the award of the contract, prompt
notice will be given of any notification received from the Director, Office of Federal
Activities, EPA, indicating that a facility utilized or to be utilized for the contract is under
consideration to be listed on the EPA List of Violating Facilities;
4. Agreement by 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.
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.
K. Other Laws
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 comply with same. It is agreed and understood that, if City calls the
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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.
14. Prohibition Against Discrimination
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.
During the performance of this contract Contractor agrees, and will require all its
subcontractors to agree, as follows:
A. 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.
B. 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.
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.
Contractor further covenants that neither it nor its officers, members, agents, employees,
subcontractors, program participants, or persons acting on their behalf, shall specify, in
solicitations or advertisements for employees to work on this contract, a maximum age limit for
such employment unless the specified maximum age limit is based upon a bona fide occupational
qualification, retirement plan or statutory requirement.
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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.
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 under the terms of such ordinances by either the Contractor or its officers,
members, agents, employees or subcontractors.
15. Prohibition Against Interest
No member, officer or employee of City or its designees or agents; no member of the
governing body of the locality in which the Program is situated; and no other public official of
such locality or localities, who exercises any functions or responsibilities with respect to the
program funded hereunder during his tenure or for one (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.
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, 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 void able by the City of Fort Worth.
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
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for themselves or those with whom they have family or business ties, during their tenure or for
one(1)year thereafter.
16. Assignmen t
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.
17. Indemnity and Bonding
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 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.
Contractor will maintain a blanket fidelity coverage in the form of insurance or bond in
the amount of Ten Thousand Dollars ($10,000), 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.
Page 15
18. Waiver of Immunity
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.
19. Insurance Requirements
Commercial General Liability(CGL)Insurance
$500,000 each occurrence
$1,000,000 aggregate limit
Business Automobile Liability Insurance
$1,000,000 each accident on a combined single-limit basis, or
$250,000 Property Damage
$500,000 Bodily Injury per person per occurrence
$2,000,000 Aggregate
Insurance policy shall be endorsed to cover"Any Auto"
Pending availability of the following coverage, and at the discretion of the Contractor, the
policy shall be the primary responding insurance policy versus a personal auto insurance
policy if or when in the course of Contractor's business as contracted herein.
Workers' Compensation Insurance
Part A: Statutory Limits
Part B: Employer's Liability
$100,000 each accident
$100,000 disease-each employee
$500,000 disease-policy limit
Note: Such insurance shall cover employees performing work on any and all
projects including but not limited to construction, demolition, and rehabilitation.
Coverages shall be maintained by Contractor or its subcontractors. In the event
the respective subcontractors do not maintain coverage, the Contractor shall
maintain the coverage on such subcontractor for each applicable subcontract.
Directors and Officers Insurance
Optional (Highly Recommended)
Note: This insurance shall cover the Contractor and any associated Board of
Directors members.
Additional Requirements
Page 16
Such insurance amounts shall be revised upward at City's option and that Contractor shall
revise such amounts within (30) following notice to Contractor of such requirements.
Contractor will submit to City document that it has obtained insurance coverage and has
executed bonds as required in this contract and prior to payment of any monies provided
hereunder.
Each insurance policy shall be endorsed to provide City with a minimum sixty (60) days
notice of cancellation, non-renewal, and/or material change in policy terms or coverage.
Insurance policies required herein shall be endorsed to include the City of Fort Worth as
an additional insured as its interest may appear. Additional insured parties shall include
employees, officers, agents, and volunteers of the City of Fort Worth.
The Workers' Compensation Insurance policy shall be endorsed to include a waiver of
subrogation, also referred to as a waiver of rights of recovery, in favor of the City of Fort Worth.
Any failure on part of the City to request certificate(s) of insurance shall not be construed
as a waiver of such requirement nor as a waiver of the insurance requirements themselves.
Insurers of Contractor's insurance policies shall be licensed to do business in the state of
Texas by the Department of Insurance or be otherwise eligible and authorized to do business in
the state of Texas. Insurers shall be acceptable to the City insofar as their financial strength and
solvency and each such company shall have a current minimum A.M. Best Key Rating Guide
rating of ANII or other equivalent insurance industry standard rating otherwise approved by the
City of Fort Worth.
Deductible limits on insurance policies shall not exceed $5,000 per occurrence unless
otherwise approved by the City of Fort Worth.
In the event there are local, federal or other regulatory insurance or bonding requirements
for the housing program addressed in this contract, should such requirements exceed those
specified herein, the former shall prevail.
Contractor shall agree to require its subcontractors to maintain applicable insurance
coverages, limits, and other requirements as those specified herein; and, Contractor shall require
its subcontractors to provide Contractor with certificate(s) of insurance documenting same; and,
Contractor shall require its subcontractors to have the City of Fort Worth and the Contractor
endorsed as additional insureds (as their interest may appear) on their respective insurance
policies.
Contractor shall require its subcontractors to maintain builders risk insurance at the limit
Page 17
of applicable project(s) costs when the value of materials involved exceeds $10,000 or at a
different limit value as specified by the City of Fort Worth.
20. Program Income Qualifications for Families
Contractor agrees to abide by HUD income guidelines, which are specific to the type of
project that is undertaken by the Contractor.
21. Certification Regarding Lobbying
The undersigned representative of Contractor hereby certifies, to the best of his or her
knowledge and belief, that:
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.
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.
The Contractor shall require that the language of this certification be included in all
subcontracts or agreements involving the expenditure of federal funds.
Page 18
IN WITNESS WHEREOF, the parties l reto have e c ted four copies of this contract in
Fort Worth, Tarrant County, Texas, this 4" day of 4 22002.
ATTEST: CITY OF FORT WORTH
2 By: ud &Zznc
ity Secretary Reid Rector
Assistant City Manager
APPROVED AS TO FORM AND LEGALITY:
A st. Attorney
_ - 19108
contract Authorization
(Q I (1 Oa, VOLUNTEERS OF AMERICA
Date
By:
David North,President
Page 19
STATE OF TEXAS §
§
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas,
on this day personally appeared Reid Rector, 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 he 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.
GIVEN P ER MY HAND AND SEAL OF OFFICE this day of
A.D.2002.
f�Pa�°�e`• ROSELLA BARNES Notary Public in and for the State of Texas
*� ':* NOTARY PUBLIC
(,OA .rZc f state of Texas
Comm.Exp.03-31-2005
STATE OF TEXAS §
§
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas,
on this day personally-appeared David North, 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
Volunteers of America and that he-executed the same as the act of said Volunteers of America
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 l day of
C 2002.
r ADRIENNE GRACE WELLS
MY COMMISSION EXPIRES lX- F / C - J
_ = May 15,2006 Notary Public in and fbi the State of Texas
Page 20
EXHIBIT A
PROGRAM SUMMARY
PROGRAM TITLE
VOLUNTEERS OF AMERICA TEXAS SUPPORTIVE HOUSING PROGRAM
2001 HOME-CHDO
Personal Services(Support Funds) $0.00
Supplies $0.00
Contractual Services(New Multi-Family Housing Construction) $150,000.00
Capital Outla $0.00
TOTAL $150,000.00
DESCRIPTION:
Volunteers of America Texas will construct and manage 19 apartments for lease to persons with
disabilities.
The contract period begins on the date of execution and ends six months thereafter.
PROGRAM OBJECTIVES:
To construct and lease nineteen (19) new apartments in the program area.
PROGRAM MEASURES:
During the contract period, Contractor shall submit evidence of the following:
Real Estate closing documents
Monthly status reporting indicating construction start date
Volunteers of America Texas Proj c B dgget
Project Budget
Project Name:
Tremont Terrace
Item Cost Sent to Date Remaining Balance
Soft Costs
Architectural Fee
Design M,$6 29," $0 $69,229
Supervision $21656 $0 $21,656
A raisal Fees $950! $0 $950
Consultant Fees $50,000+, $0 $50,000
Engineering Fees $3100 $0 $3,100
Legal Fees , 8 060 $0 $8000
Surveys %' $10000:: $0 $10000
Soils $3100 $0 $3100
Cost Certification $1690 $0 $1,690
Insurance ;,,,:$1000 00 $0 $10,100
Environmental Assessment $2,500 $0 $2,500
Title&Recording $8000': $0 $8,000
Plat/Subdivide
Inspection Fees TAS/Foundat ,"43,046
Cost Certification/Audit Fees i $3 500- $0 $3,500
Misc.Charges
1,09's $0 $1,095
Wastewater/Impact Fees A- $13lAs
Contingency/Change Order $22,548 $0 $22,548
,Organizational Fees $5 000 $0 $5,000
MCI $5637 $0 $5,637
Total All Soft Costs $245,415 $0 $245,415
Hard Costs
Concrete $78,206 $0 $78,206
Masonry $0 $0 $0
Metals $2,016 $0 $2,016
Rough C $125,530 $0 $125,530
Finish C $17,229 $0 $17,229
Waterproofing $1508 $0 $1508
Insulation $15,503 $0 $15,503
Roofing $10,560 $0 $10,560
Sheet Metal $0 $0 $0
Doors $30,060 $0 $30,060
Windows $9,960 $0 $9,960
Glass $400 $0 $400
Lath and Plaster $0 $0 $0
Drywall $45,250 $0 $45,250
Tile Work $15,350 $0 $15,350
Acoustical $0 $0 $0
Wood Flooring $0 $0 $0
Resilient Flooring $12,710 $0 $12,710
Painting and Decorating $24,656 $0 $24,656
Specialities $12,095 $0 S12,095
Special E ui ment $0 $0 $0
Cabinets $29,400 $0 $29,400
Appliances $14100 $0 $14100
Blinds and Shades Artworl $4,800 $0 $4,800
Carpets $10710 $0 $10710
Special Construction $0 $0 $0
Elevators $0 $0 $0
Plumbing and Hot Water $75,021 $0 $75,021
Heat and Ventilation $0 $0 $0
Air Conditioning $39,970 $0 $39,970
Electrical $85,089 $0 S85,089
Subtotal Structures $0 $660123
Accessory Structures }- 0 0 $31,720
Total lines 60-61 $691,043 SO $691,843
Item Cost Sent to Date Remaining Balance
Earth Work $133,250 $0 $133,250 Exhibit B-
Site Utilities $77,846 $0 $77,846 Project Budget
• Roads and Walks $81,429 $0 $81,429
Site Improvements $26,053 $0 $26,053
Lawns and Plantiniz $40,000 $0 $40,000
Unusual Site Conditions $0 $0 $0
Total Land Improvements $35U21 0 $358,578
Total Structural&Land Impro 1 050 421 ', 0 $1,050,421
General Requirements $63,025 $0 $63,025
Subtotal $11111446 $0 $1,113,446
Builder's Overhead $22.26 $0 $22,269
Builder's Profit $68 143 $0 $68,143
Subtotal $1 203 858 SO $1,203,858
Fees Permits $6,500 $0 $6,500
Taps 1900'; $0 $1,900
As-built Surve $2,000 $0 $2,000
Other Fees $p $0 $0
Bond Premium $15,901'; $0 $15,801
Subtotal Fees $26,201 $0 $26,201
Total for All Im rovements $1,230,059 $0 $1.230,059
Total for all Soft Costs $245,415 $0 $245,415
Profit Paid for Other Than Cash
Total for All Im rovements $1,475,474 $0 $1,475,474
Land Costs Land Costs $150,000 $0 $150,000
Total Costs Total Project Costs $1,625,474 $0 $1,625,474
Revenue
HUD Capital Advance $1,127,700 $0 $1,127,700
City of Fort Worth $25,000 $0 $25,000
County of Tarrant $0 $0 $0
TDHCA $0 $0 $0
FHLB $0 $0 $107,715
Other Amendment Funds $472,774 $0 $365,059
Total Revenue $1,625,474 $0 $1,625,474
Total Cash Requirements $1,625474 $0 $0
Less Total Revenue $1.625 474 $0 $0
Net Cash Surplus eficienc $0 $0 $0
Per Unit Cost $77,656.53
7/12/02 page 2 of 2
Exhibit C -
Program Timeline
TREMONT TERRACE PROJECT TIMELINE
Firm Commitment Issued by HUD September 1, 2002
Initial Closing October 1, 2002
Start Construction October 15, 2002
Complete Construction Au ust 11, 2003
Certificate of Occu anc Issued Se tember 15, 2003
Lease up/Oc-upancy September 25, 2003
Exhibit D
INDEPENDENT AUDIT REQUIREMENT
BUSINESS /AGENCY NAME: Volunteers of America Texas, Inc.
PROGRAM: VOA Texas Calmont Place
AMOUNT FUNDED: $150,000
Name of Independent Auditor who will perform the agency audit:
Pickens Snodgrass Koch $ Co
Date audit is to be performed:
July, 2003
The following language is a condition of your contract with the City:
"All non-federal entities that expend $300,000 or more in federal funds
within one year, regardless of the source of the Federal award, must submit
to City an annual audit prepared in accordance with CFR part 84 generally,
with specific reference to OMB Circulars A-128 and A-133 as appropriate. .
The 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 City within thirty (30) days of its completion.
Costs of preparation of the audit may be an allowable expenditure of federal
funds in an amount proportional to that of the federal funds used in
Contractor's total agency operating budget. Non-federal entities that expend
less than $300,000 a year in federal funds are exempt from Federal audit
requirements for that year, but records must be available for review or audit
by appropriate officials of the Federal Agency, pass-through entity (City),
and General Accounting Office(GAO)."
Signature ���_ -��'�D Dat
City of Fort Worth, Texas
Mayor and Council Communication
DATE REFERENCE NUMBER LOG NAME PAGE
6/4/02 C-19108 05VOA 1 of 2
SUBJECT EXECUTE A CONTRACT AND ANCILLARY LOAN DOCUMENTS WITH VOLUNTEERS
OF AMERICA TEXAS TO ACQUIRE LAND LOCATED AT 8017 CALMONT AVENUE
RECOMMENDATION:
It is recommended that the City Council
1. Authorize the City Manager to execute a contract and ancillary loan documents with Volunteers of
America (VOA) Texas to acquire the vacant land located at 8017 Calmont Avenue for an amount
not to exceed$150,000 in Fiscal Year 2000 HOME funds; and
2. Authorize the contract performance period to begin on the date of contract execution and expire six
months thereafter; and
3. Authorize the extension or renewal of the contract for an additional six month period, if VOA
requests an extension; and
4. Authorize the City Manager to amend the contract, 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:
The Home Investment Partnerships Program (HOME) is intended to be a partnership between federal,
state and local governments and non-profit and for-profit agencies that build, own, manage, finance and
support low-income housing initiatives.
VOA is proposing to acquire the vacant land located at 8017 Calmont Avenue to build a multi-family
apartment building consisting of 19 one-bedroom apartments, to rent to chronically mentally ill persons.
VOA is requesting a no-interest loan to secure site control of this property until it closes on its U.S.
Department of Housing and Urban Development (HUD) Section 811 Supportive Housing for Persons
with Disabilities' Capital Advance Grant funding in the amount of $1,127,400. It is anticipated that the
HUD Section 811, Capital Advance Grant will close in September 2002.
VOA previously had a purchase option on this property. The option has expired and the owner will not
give VOA an extension. In addition, the owner's asking price has increased from $125,000 to
$150,000. VOA will repay the City's loan when it closes on the HUD Section 811, Capital Advance
Grant for which it has been approved. VOA is requesting that HUD increase the $125,000, currently
approved for land acquisition, to $150,000 to cover the increased cost of the property.
•
City of Fort Worth, Texas
Mayor and Council Communication
DATE REFERENCE NUMBER LOG NAME PAGE
6/4/02 C-19108 05VOA 2 of 2
SUBJECT EXECUTE A CONTRACT AND ANCILLARY LOAN DOCUMENTS WITH VOLUNTEERS
OF AMERICA TEXAS TO ACQUIRE LAND LOCATED AT 8017 CALMONT AVENUE
If HUD approves VOA's request, VOA will reimburse the City the full cost of $150,000 for the property.
If VOA receives only the $125,000 currently approved by HUD, VOA will repay the City $125,000 of the
loan amount and the City will convert the $25,000 balance to a deferred payment loan, to be repaid
only if the property is sold or ownership is transferred during the term of the loan or from residual
receipts. To secure its investment, the City will hold a deed of trust and note on the property, and the
financing will be in the form of a no-interest, payback loan.
This project is located in COUNCIL DISTRICT 3.
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.
RR:n
Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: (to)
Reid Rector 6140
Originating Department Head:
Jerome Walker 7537 (from) APPROVED 06/25/02
GR76 539120 005206133060 $150,000.00
Additional Information Contact:
Jerome Walker 7537