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HomeMy WebLinkAboutContract 31951 CITY SECRETARY STATE OF TEXAS § CONTRACT NO. COUNTY OF TARRANT § THIS contract ("Contract") is made and entered into by and between the City of Fort Worth ("City"), whose address is 1000 Throckmorton St., Fort Worth TX 76102, acting by and through Dale A. Fisseler, its duly authorized Assistant City Manager, and Spirit of Prayer Community and Economic Development Corporation, Inc. ("SOP"), whose address is 3810 Alta Me'a Blvd., Fort Worth, Texas 76133, acting by and through Jeanette Nunn, its duly authorized Executive Director. (Sometimes City and SOP are referred to individually as a "Party" and collectively as the "Parties"). 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-03-MC-48-0204 and M-04-MC-48-0204, Catalog of Federal Domestic Assistance ("CFDA") No. 14.239, 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; WHEREAS, the primary purpose of the HOME program ("HOME Program") pursuant to the HOME Investment Partnerships Act at Title II of the Cranston Gonzales National Affordable Housing Act of 1990, as amended, 42 U.S.C. 12701 et seq. ("NAHA") and the HOME Investment Partnerships Program Final Rule, as amended, 24 CFR Part 92 et seq. (the "HOME Regulations" or "Regulations") is to benefit low and very-low income citizens by providing them with affordable housing; WHEREAS, SOP, a community housing development 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; WHEREAS, SOP previously received FIFTY THOUSAND AND NO/100 DOLLARS ($50,000.00) in HOME funds to be used as CHDO operating expenses for development of a housing project, and has submitted a proposal to City for HOME CHDO program funds; 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 citizens of Fort Worth; NOW, THEREFORE, THIS AGREEMENT FURTHER WITNESSETH: 1. GENERAL PROVISIONS A. Purpose I HOME CHDO PROGRAM CONTRACT SOP Page 1 l '` Rev. 6-03-0 " If 14 The express purpose of this Contract is to provide SOP with HOME funds ("HOME Funds") not to exceed TWO HUNDRED FIFTY-FIVE THOUSAND AND NO/100 Dollars ($255,000.00) for the construction of infill housing in the Stop Six Sunrise Neighborhood (the "Program"). The development by SOP of six (6) homes for sale to eligible low-income homebuyers will be in two phases, with an option to build the last three homes once the first three homes have been sold, all in accordance with the attached Exhibit "A" — Program Summary. The HOME Funds must be used for eligible costs allowed under the HOME Regulations including development hard costs, refinancing costs if applicable, acquisition costs and related soft and predevelopment costs as more specifically described in 24 CFR Part 92.206. SOP may claim a developer's fee of THREE THOUSAND AND N01100 DOLLARS ($3,000.00) upon the sale of each home. SOP may use these funds at its discretion. SOP may also retain any additional sales proceeds that exceed the development costs for that home. Such sales proceeds must be used for affordable housing purposes. No developer's fee will be paid for projects where the development costs exceed the sales price by more than ten percent (10%). If SOP maintains the Performance Standards established by the City for retention of CHDO proceeds during the term of this Contract and any extensions, it may retain the remaining proceeds from the sale of the last two houses as CHDO proceeds. For the purposes of this Contract, meeting the Performance Standards shall mean the construction and sale of a total of six homes in accordance with the attached Exhibit "A"—Program Summary. SOP will be acting as a community housing development corporation ("CHDO") under this Contract to build and sell the homes to eligible homebuyers. The City shall act through its agent, the City Manager, or his or her duly authorized representative, unless otherwise stated in this Contract. SOP agrees to comply with the HOME Regulations including but not limited to the Uniform Administrative Requirements, 24 CFR Part 92.505, and Subpart F, the Project Requirements, 24 CFR Part 92.250 et seq. B. Duration This term of this Contract begins on the date of execution and terminates eighteen (18) months thereafter. This Contract may be extended for an additional six (6) month term. SOP shall request the extension in writing at least sixty (60) days prior to the end of the Contract term. The request for extension shall include SOP's anticipated budget and goals and objectives for the extended term. It is specifically understood that it is within the City's sole discretion whether to approve or deny the request for an additional term. Any such extension must be in writing as an amendment to this Contract and approved by the City Manager or his or her designee. C. Income Eligibility and Use of House as Principal Residence The income targeting requirements for the HOME Program and for construction projects assisted with HOME Funds are contained in 92 CFR Part 203(b). Annual income is used to i HOME CHDO PROGRAM CONTRACT Pag 2 SOP Rev. -03-05 establish homebuyer eligibility. The definition of annual income to determine homebuyer eligibility under this Contract shall be the definition contained in 92 CFR Part 203(b)(2) as amended from time to time. The annual income of the homebuyer, adjusted for family size, shall not exceed eighty percent (80%) of the area median income established by HUD. SOP shall use the most current HUD Income Guidelines to determine a homebuyer's Program eligibility. SOP shall insure that the homebuyer will use the home purchased under this Program as his or her principle residence during the period of affordability. D. Housing Standards SOP is required to meet the City's minimum acceptable housing standards and all other applicable standards under City Codes and ordinances for all homes built with HOME Funds. E. Other Requirements The sales price of each home constructed and sold under this Contract shall not exceed ninety-five percent (95%) of the Single Family Mortgage Limits under Section 203 (b) of the National Housing Act as defined annually by HUD. The sales price of each home shall not exceed the appraised value of such home as determined by an independent, licensed appraiser. Housing assisted with HOME Funds under this Contract will remain affordable for the affordability period as described below. Affordable means that the actual principal, interest, property taxes, and insurance paid for the purchase of a home 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. In the case of new home construction, the percentage of the monthly-adjusted income paid for the purchase of a home shall not exceed thirty-two percent (32%). F. Independent Contractor SOP shall operate hereunder as an independent contractor and not as an officer, agent, servant or employee of City. SOP 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 invitee. The doctrine of respondeat superior shall not apply as between City and SOP, its officers, members, agents, servants, employees, subcontractors, Program participants, licensees or invitee, and nothing herein shall be construed as creating a partnership or joint enterprise between City and SOP. It is expressly understood and agreed that no officer, member, agent, employee, subcontractor, licensee or invitee of SOP, nor any Program participant, 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 SOP, its officers, members, agents, employees, subcontractors, Program participants. licensees or invitees. ------ HOME CHDO PROGRAM CONTRACT p 9e , SOP City shall in no way nor under any circumstances be responsible for any property belonging to SOP, its officers, members, agents, employees, subcontractors, Program participants, licensees or invitees, which may be lost, stolen, destroyed or in any way damaged; and SOP hereby indemnifies and holds harmless City and its officers, agents, and employees from and against any and all claims or suits pertaining or connected with such property. G. Termination The City may terminate this Contract in the event of SOP's default, inability, or failure to perform, or otherwise whenever such termination is determined by the City to be in the City's best interest. Likewise, SOP may terminate this Contract if the City does not provide the HOME Funds set forth in this Contract. The Contract may be terminated for mutual convenience upon written agreement of the Parties. SOP shall begin construction work within twelve (12) months from the date this Contract is executed pursuant to City's CHDO Program and funding requirements. Failure to begin construction work within twelve (12) months shall be grounds for termination of this Contract. City shall notify SOP in writing of any breach of this Contract, and specify a reasonable time within which to cure the particular breach. If SOP fails to cure the breach within the time stated in the notice, this Contract shall automatically terminate at the expiration of the stated time allowed for cure. SOP will return to City any unused HOME Funds previously distributed under this Contract within thirty (30) days of the effective date of Contract termination. City will have no responsibility or liability for SOP's expenditures or actions occurring after the effective date of Contract termination. H. Venue Venue for any action, whether real or asserted, at law or in equity, arising out of the execution, performance, attempted performance or non-performance of this Contract, shall lie in Tarrant County, Texas. I. Written Instrument is Entire Agreement All terms of this Contract shall apply to any and all subcontractors of SOP which are in any way paid with HOME Funds or who perform any work in connection with SOP's Program. The provisions of this Contract are severable, and, if for any reason a clause, sentence, paragraph or other part of this Contract 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 ::.. HOME CHDO PROGRAM CONTRACT Pa 4�sl� �,�� SOP Re 6-d '05' P. J �; f provision. The failure of the City to insist upon the performance of any term or provision of this Contract 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. 2. DUTIES AND RESPONSIBILITIES OF CITY A. Disbursement of Funds The City will furnish HOME Funds for use as stated herein. The City will monitor the use of such funds to ensure appropriate use. Funds shall be disbursed after execution of this Contract and compliance with the provisions herein. Disbursements of HOME Funds for Program delivery costs will not be made until actually needed for payment. Payment will require completion of Attachment I — "Request for Funds" and a copy of all relevant supporting documents. The HOME Funds will be secured by a promissory note and deed of trust on each property. SOP may request an advance for reimbursement of previously incurred acquisition, predevelopment and related soft costs as described in the attached Exhibit B-"Program Budget". B. Amount of Funds It is agreed that the total distribution of HOME Funds made available to be paid on behalf of SOP during the term of this Contract shall not exceed the total sum of TWO HUNDRED FIFTY-FIVE THOUSAND AND NO/100 DOLLARS ($255,000.00). SOP shall be paid on an advance of funds basis for reimbursement of previously incurred acquisition, predevelopment and related soft costs pertaining to the properties to be developed for the purpose of the Program. Prior to the release of funds for construction work draws, work items must pass inspection by City's Housing Department inspectors evidenced by a completed inspection form attached as Exhibit "E" — "Request for Inspection" in accordance with the schedule of inspections attached to Exhibit "E" as Addendum 41. HOME CHDO PROGRAM CONTRACT Page 5 SOP Rev. 6-03-05 3. DUTIES AND RESPONSIBILITIES OF SOP A. Statement of Work Budget and Time Line for Goals and Expenditures SOP will utilize HOME Funds to provide affordable housing opportunities to persons who are moderate, low, and very low-income citizens by building infill housing in the Stop Six - Sunrise Neighborhood. SOP will ensure that homebuyers will complete a homeownership training program prior to the completion of their purchase of a home constructed under the Program. SOP shall also assist homebuyers in obtaining closing cost and/or down payment assistance under the City's Homebuyer's Assistance Program in a minimum amount of at least ONE THOUSAND AND NO/100 DOLLARS ($1,000.00) to ensure affordability as more particularly described herein. B. Budget SOP agrees that the HOME Funds will be expended in accordance with Exhibit B - "Program Budget". Any change exceeding ten percent (10%) of the total cost per housing unit shown in Exhibit B - "Program Budget" shall be made only with City's prior written approval. Under no circumstances shall the total amount of Program funds expended by SOP from HOME Funds paid by the City exceed TWO HUNDRED FIFTY-FIVE THOUSAND AND NO/100 DOLLARS ($255,000.00). The HOME Funds may be spent only to pay construction related costs and expenses, including soft costs and related costs. Construction costs will be payable in accordance with a draw schedule based on the extent of completion of each home as approved by City Housing Department inspectors. SOP agrees to keep any excess sales proceeds as described above and any HOME Funds that have been advanced but not yet expended on hand in interest bearing accounts. All interest earned shall be reported to the City on a monthly basis, at the same time as submission of the monthly report following the end of the Contract month during which the interest was earned. Interest earned in an amount of TWENTY-FIVE AND NO/100 DOLLARS ($25.00) or less per month may be used for authorized Program expenses. These amounts must be reported on the monthly financial statements filed pursuant to this Contract. Interest earned in excess of TWENTY-FIVE AND NO/100 DOLLARS ($25.00) per month is subject to remittance to the City as directed by City. SOP will not commingle HOME Funds with any other funds in any manner that would prevent the City from readily identifying expenditures for operation of the Program. C. Time Line for Goals and Expenditures SOP will work in accordance with the schedule set forth in the attached Exhibit C - "Program Timeline", and ensure that Program goals and expenditures correspond with the HOME CHDO PROGRAM CONTRACT Page 6 SOP Rev. 6-03-05 completion of the Program. D. Reversion of Assets and Use of Program Income SOP may retain the proceeds from the sale of the first three homes to be used by SOP to build two more homes in the Stop Six - Sunrise Neighborhood for sale to eligible low-income homebuyers. If SOP does not build the additional three homes for any reason, the sale proceeds shall be returned to the City to be deposited in the City's HOME Investment Trust Fund local account or the unsold home/s shall be conveyed to City to be sold by City to income-eligible residents. To secure the City's interest in the Program in the event that SOP is unable for any reason to fully complete the Program, SOP agrees to execute appropriate security instruments including without limitation, notes, deeds of trust, security agreements, pledges or other similar security instruments. City agrees to do partial releases of such security instruments as may be necessary to allow SOP to complete construction of the second two homes. In the event SOP is dissolved, this Contract shall terminate. In the event this Contract is terminated with or without cause, for any reason whatsoever, all assets acquired with HOME Funds used in the development of the homes under the Program including cash, interest payments from loans or otherwise, all outstanding notes, mortgages or other security instruments used to secure HOME Funds and any real property owned by SOP that was acquired or improved with HOME Funds shall belong to City and shall be transferred to City or to such assignees as City may designate. E. Affirmative Marketing SOP must adopt affirmative marketing procedures and requirements for all housing assisted with HOME Funds. 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, religion or familial status are given an equal opportunity to participate in the Program. SOP will be solely responsible for the effective marketing responsibilities necessary to achieve the SOP's production goals. F. Recapture Provisions/Period of Affordability SOP understands that there are recapture requirements applicable on homes purchased in whole or in part with HOME Funds to ensure affordability as well as a requirement that the home must remain the homebuyer's principal residence during the applicable affordability period. The recapture provisions will remain in effect on homes purchased in whole or in part with HOME Funds for the specified affordability periods. If the homebuyer retains ownership of the property and continues to occupy it as homebuyer's principal residence for the full period of affordability, no recapture restrictions will apply. Any sale of the home by the homebuyer during the period of affordability will require repayment of the deferred payment loan or other subsidy provided in accordance with HOME Regulations. 24 CFR Part 92.254 (a) (4). HOME CHDO PROGRAM CONTRACT Page 7 SOP Rev. 6-03-05 Housing purchased or constructed with HOME Funds must remain affordable and subject to recapture provisions for the affordability periods described in 24 CFR Part 92.254 of the HOME Regulations. Housing assisted with HOME Funds must remain affordable housing for the following minimum periods: 5 years where the per-unit amount of HOME Funds provided is less than $15,000; 10 years where 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. To secure recapture of the HOME Funds, homebuyers will be required to execute a Note and Deed of Trust payable to the City in the amount of assistance provided. This Note and Deed of Trust, which shall be subordinate to any purchase money mortgage, shall be on forms furnished by City. To ensure that the affordability requirements are met, each homebuyer purchasing a home assisted with HOME Funds under this Contract will be provided a minimum amount of ONE THOUSAND AND NO/100 DOLLARS ($1,000.00) in the form of closing cost and/or downpayment assistance. City will administer the HOME Funds used to provide this direct assistance for closing cost and/or downpayment assistance. SOP may request City to reserve closing cost and down payment assistance in an amount greater than ONE THOUSAND AND NO/100 DOLLARS ($1,000.00) for each home, but such assistance shall not exceed FOURTEEN THOUSAND NINE HUNDRED NINETY-NINE AND NO/100 DOLLARS ($14,999.00) per home and shall be subject all requirements of City's Homeownership Assistance Program. Any HOME Funds invested in housing that fails to meet the affordability requirements for the appropriate affordability period must be repaid to the City in accordance with HOME Regulations. G. Record Retention and Reports SOP agrees to cooperate fully with City in the development, implementation, and maintenance of record-keeping systems and to provide City with any data determined by City to be necessary for the effective fulfillment of City's monitoring and evaluation responsibilities. Specifically SOP 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 five (5) years after the period of affordability mandated by the Regulations terminates. SOP will obtain and keep on file the following information on each household served by the Program in accordance with the attached Attachment IV (a) "Performance Report": a. Annual income and size of the household of which the client is a member; b. Ethnicity and race of the client, using one of the following categories: Ethnicity: Hispanic/Latino or Non Hispanic/Latino Race: White, Black/African American, Asian; American Indian/Alaskan Native & Hawaiian/Other Pacific Islander, American Indian/Alaskan Native & White, Asian & White. Black/African American & \l'hite. American lndian'Alaskan HOME CHDO PROGRAM CONTRACT Page 8 SOP Rev. 6-03-05 Native & Black/African American, Other Multi-Racial; c. Whether the head of the client's household is male or female; d. Additional statistical information as may be required by HUD regulations and any amendments thereto: SOP will keep on file the following information and documentation on each individual project: e. Proof that the project meets the applicable property standards; f. The per unit amount of HOME Funds invested; g. Compliance with the affirmative marketing requirements and existence of acceptable procedures; h. Compliance with relocation requirements; i. Records indicating whether or not any contractors or subcontractors performing work under this Contract were Minority and/or female owned, and if so, the contract amounts; , j. Records demonstrating actions taken to affirmatively further fair housing aims in the sale of the homes; k. Compliance with lead based paint requirements; and 1. Compliance with conflict of interest rules. SOP will keep on file copies of the following loan documentation for each individual loan: m. Sales Contract between seller and buyer; n. Appraisal; o. Enviromnental review; p. Housing Quality Standard Inspection Checklist q. Closing Settlement Statement (HUD-1); r. Warranty Deed; s. First Lien Promissory Note; t. First Lien Deed of Trust u. Subordinate Promissory Note; v. Subordinate Deed of Trust; w. Mortgagee's Title Policy; x. Homeowner's Insurance Policy; y. Survey; z. Termite inspection (if applicable); aa. Lead Based Paint Disclosure (if any); and bb. Notice To Seller (the Guide Form Notice). By the 15th day of each month during which the Program is supported by HOME Funds provided under this Contract (to be construed as including the use of any asset obtained through the expenditure of HOME Funds), SOP will supply the City with a report detailing: a. Program reports in accordance with Attachment IV - "Monthly Narrative Report" and Attachment IV(a) - Performance Report; F_7 - - HOME CHDO PROGRAM CONTRACT Page SOP Rev. 6-03-05 b. Expenditure detail in accordance with Attachment I - "Request For Funds", Attachment II - "Detail Statement of Costs", and Attachment III - "Expenditures Worksheet". c. The amount of leveraging generated by this grant, including items that qualify as HOME match. Reports shall be submitted in the format specified by the City. IF THE REQUIRED REPORTS ARE NOT RECEIVED BY THE DUE DATE, THE CITY RESERVES THE RIGHT TO WITHHOLD PAYMENTS REQUESTED UNDER THIS CONTRACT AND ANY OTHER CONTRACTS WITH SOP. H. Cost Principles SOP shall administer the Program in compliance with OMB Circular A-122, "Cost Principles for Non-Profit Organizations", as amended from time to time and with the following All non-federal entities that expend $500,000 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 specific reference to OMB Circular A-133. The audit may cover either SOP's fiscal year during which this Contract is in force or cover the period of this Contract. 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. SOP's audit certification is attached hereto as Exhibit D — "Audit Certification Form" and "Audit Requirements". The Audit Certification Form must be submitted to City within sixty (60) days of the end of period being audited (SOP's fiscal year). Costs of preparation of this audit may be an allowable expenditure of Federal funds in an amount proportional to that of the Federal funds used in SOP's total agency operating budget. Non-profit entities that expend less than $500,000 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, City, and General Accounting Office. City reserves the right to perform an audit of SOP'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-133, and SOP agrees to allow access to all pertinent materials as described in Section G. Record Retention and reports. If such audit reveals a questioned practice or expenditure, such questions must be resolved within fifteen (15) days after notice to SOP 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) with SOP. If as a result of any audit it is determined that SOP has misused, misapplied or misappropriated all or any part of the HOME Funds, SOP agrees to 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 by HUD because of such misuse. misapplication or misappropriation. HOME CHDO PROGRAM CONTRACT Page 10 SOP Rev. 6-03-05 I. Monitor Effectiveness of Services and Work The City will monitor the activities and performance of SOP and its contractors not less than annually as required by the HOME Regulations, 24 CFR Part 92.504. SOP agrees to fully cooperate with City in monitoring the effectiveness of the services and work to be performed by SOP in compliance with the terms of this Contract. 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 SOP, its officers, directors, agents, employees, and subcontractors for the purpose of such monitoring. SOP 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 SOP agrees to comply with the following laws and the regulations as they are currently written or are hereafter amended during performance of this Contract: (1) Federal 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 and 11246, as amended by Executive Orders 11375 and 12086 and as supplemented by 41 CFR Part 60 The Age Discrimination in Employment Act of 1967 (29 USC et seq.) The Age Discrimination Act of 1975 (42 USC 6101 et seq.) Section 504 of the Rehabilitation Act of 1973 (29 USC 794 et seq.) and 24 CFR Part 8 where applicable National Environmental Policy Act of 1969, as amended, 42 USC 4321 et seq. ("NEPA") and the related authorities listed 24 CFR Part 58 The Clean Air Act, as amended, (42 USC 7401 et seq.), the Clean Water Act of 1977, as amended (33 USC 1251 et seq.) and the related EPA regulations at 40 CFR Part 15, as amended from time to time, and Executive Order 11738. In no event shall any amount of the assistance provided under this Contract be utilized with respect to a facility that has given rise to a conviction under the Clean Air Act or the Clean Water Act. Immigration Reform and Control Act of 1986 (8 USC 1101 et seq.) specifically including the provisions requiring employer verifications of legal status of its employees The Americans with Disabilities Act of 1990, as amended, (42 USC 12101 et seq.), the Architectural Barriers Act of 1968, as amended, (42 USC 4151 et seq.), and the Uniform Federal Accessibility Standards, 24 CFR Part 40, Appendix A HOME Investment Partnerships Act at Title II of the Cranston Gonzales National Affordable Housing Act of 1990, as amended, 42 U.S.C. 12701 et seq. ("NAHA") Drug Free Workplace Act of 1988 (41 USC 701 et seq.) and 24 CFR part 23, Subpart F HOME CHDO PROGRAM CONTRACT Page 11 SOP Rev. 6-03-05 Regulations at 24 CFR Part 87 related to lobbying, including the requirement that certifications and disclosures be obtained from all covered persons Executive Order 12549 and 24 CFR Part 5.105 (c) pertaining to restrictions on participation by ineligible, debarred or suspended persons or entities Regulations at 24 CFR Part 882.708 (c) pertaining to site and neighborhood standards for new construction projects (2) Section 3 of the Housing and Urban Development Act of 1968, as amended, (12 USC 1701 u et seq.) and its related regulations at 24 CFR Part 135 As the work performed under this Contract is on a project assisted under a program providing direct Federal financial assistance from HUD, Section 3 of 24 CFR 135.38 ("Section 3") requires that the following clause be inserted in all covered contracts ("Section 3 Clause"): "A. The work to performed under this contract is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 170lu (Section 3). The purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD assisted or HUD-assisted projects covered by Section 3, shall, to the greatest extent feasible, be directed to low-and very low-income persons, particularly persons who are recipients of HUD assistance for housing. B. The Parties to this contract agree to comply with HUD's regulations in 24 CFR Part 135, which implement Section 3. As evidenced by their execution of this contract, the Parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the Part 135 regulations. C. The contractor agrees to send to each labor organization or representative of workers with which it has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers' representatives of the contractor's commitments under this Section 3 clause and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the Section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin. D. The contractor agrees that it will include this Section 3 clause in every subcontract to comply with regulations in 24 CFR Part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this Section 3 clause, upon finding that the subcontractor is in violation of the regulations in 24 CFR Part 135. The contractor will not subcontract with any subcontractor where it has notice or knowledge that the subcontractor has been found in violation of regulations in 24 CFR 135. E. The contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR Part 135 require employment opportunities to be directed, were not filled to circumvent the contractor's obligations under 24 CFR Part 135. F. Noncompliance with HUD's regulations in 24 CFR Part 135 may result in sanctions. termination of this contract for default, and debarment or suspension from future HUD HOME CHDO PROGRAM CONTRACT Page 1 y SOP Rev. 6- 3-o.JII' assisted contracts. G. With respect to work performed in connection with Section 3 covered Indian housing assistance, section 7(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450e) also applies to the work to be performed under this contract. Section 7(b) requires that to the greatest extent feasible (i) preference and opportunities for training and employment shall be given to Indians, and (ii) preference in the award of contracts and subcontracts shall be given to Indian organizations and Indian—owned Economic Enterprises. Parties to this contract that are subject to the provisions of Section 3 and Section 7(b) agree to comply with Section 3 to the maximum extent feasible, but not in derogation of compliance with Section 7(b)." City and SOP understand and agree that compliance with the provisions of Section 3, the regulations set forth in 24 CFR Part 135, and all applicable rules and orders of HUD shall be a condition of the Federal financial assistance provided to the Program, binding upon the City and SOP, and their respective successors, assigns and subcontractors. Failure to fulfill these requirements shall subject SOP and its subcontractors, and their respective successors and assigns, to those sanctions specified by the Grant Agreement through which Federal assistance is provided and to such sanctions as are specified by 24 CFR Part 135. (3) Lead Based Paint Requirements All houses built prior to 1978 proposed to be rehabilitated with Federal funds shall require inspection for lead based paint. Inspection and abatement work shall be carried out by contractors and workers certified and trained under the Texas Department of Health, Environmental Lead Branch. This includes inspectors, risk assessors, abatement and hazard reduction contractors. A written certification must be on file with the City Housing Department that certifies all firms, abatement supervisors, lead workers, inspectors, and risk assessors performing work on houses assisted with federal funds that require lead hazard reduction are certified under the laws and regulations of the Sate of Texas Department of Health, Environmental Lead Branch. SOP and all of its contractors shall comply with appropriate HUD and EPA regulations regarding lead-based paint notification, disclosure, or work practices during lead hazard control activities. SOP and all contractors shall prohibit the use of open-flame burning, chemical strippers containing methylene chloride, dry scraping, uncontained hydroblasting or hydrowashing, uncontained abrasive blasting, machine sanding without HEPA attachments or heat stripping above 1100°F as work practices at anytime. SOP and all of its contractors shall dispose of waste resulting from lead hazard control activities in accordance with the requirements of the appropriate local, State and Federal regulatory agencies. SOP or subcontractors must handle disposal of wastes from hazard control activities that contain lead-based paint, but are not classified as hazardous, in accordance with HOME CHDO PROGRAM CONTRACT Page 13 SOP Rev. 6-03-05 State or local law or the HUD Guidelines for the Evaluation and Control of Lead-Based Paint Hazards in Housing. City's Housing Department will conduct a final inspection of the work performed. (4) Other Laws SOP 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 City ordinances, rules and regulations and the HOME Regulations. SOP further promises and agrees that it has read, and is familiar with, the terms and conditions of the Federal grant under which HOME Funds are granted and that it will fully comply with them. It is agreed and understood that, if City calls the attention of SOP to any such violations on the part of SOP or any of its officers, members, agents, employees, Program participants or subcontractors, then SOP shall immediately desist from and correct such violation. (5) Prohibition Against Discrimination SOP, in the execution, performance or attempted performance of this Contract and agreement, will not discriminate against any person because of sex, race, religion, color, national origin or familial status, nor will SOP permit its officers, members, agents, employees, subcontractors or Program participants to engage in such discrimination. During the performance of this Contract SOP agrees, and will require all its subcontractors to agree, as follows: SOP will not unlawfully discriminate against any employee or applicants for employment because of race, color, religion, sex or national origin. SOP 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. SOP agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this nondiscrimination clause. SOP will, in all solicitations or advertisements for employees placed by or on behalf of SOP, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or national origin. SOP 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 HOME CHDO PROGRAM CONTRACT Page 14 SOP Rev. 6-03-05 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. SOP 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. In accordance with the provisions of the Americans With Disabilities Act of 1990 ("ADA"), SOP 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 SOP or any of its subcontractors. SOP 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 SOP's and/or its subcontractors' alleged failure to comply with the above-referenced laws concerning disability discrimination in the performance of this Contract. This Contract is made and entered into with reference specifically to the ordinances codified at Chapter 17, Article III, Division 3, "Discrimination in Employment Practices", of the City Code and SOP hereby covenants and agrees that SOP, 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 SOP or its officers, members, agents, employees or subcontractors. (6) Prohibition Against Interest No member, officer or employee of City or its designees or agents; no member of the governing body of the locality in which the Program is situated; and no other public official of such locality or localities, who exercises any functions or responsibilities with respect to the program funded hereunder during his tenure or for one year thereafter, shall have any interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for work to be performed hereunder. SOP shall incorporate, or cause to be incorporated, like language prohibiting such interest in all contracts and subcontracts entered into in connection with the Program. No officer, employee, member or Program participant of SOP or its subcontractors shall have a financial interest, direct or indirect, in this Contract or the HOME Funds transferred hereunder or be financially interested, directly or indirectly, in the sale to SOP of any land, materials, supplies or services purchased with any funds transferred hereunder, except on behalf of SOP, as an officer, employee, member or Program participant. Any willful violation of this HOME CHDO PROGRAM CONTRACT Page 15 SOP Rev. 6-03-05 paragraph with the knowledge, expressed or implied, of SOP or its subcontractors shall render this Contract voidable by the City. No officer, employee, agent, consultant, elected official or appointed official of the City, SOP 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 year thereafter. (7) Minority and Women Business Enterprise Commitment SOP agrees to abide by the City's policy to involve Minority and Women Business Enterprises ("M/WBEs") in all phases of its procurement practices and to provide them equal opportunity to compete for contracts for construction, provision of professional services, purchase of equipment and supplies and provision of other services required by City. Therefore, SOP agrees to incorporate City Ordinance No. 15530, and all amendments or successor policies thereto, into all contracts and subcontracts and will further require all persons or entities with whom it contracts to comply with said ordinance. K. Assignment SOP 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 SOP and any subcontractor engaged in any activity in conjunction with this HOME funded project prior to any charges being incurred. L. Indemnification and Release SOP 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/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 SOP HEREBY ASSUMES ALL LIABILITY AND RESPONSIBILITY OF CITY AND ITS OFFICERS, AGENTS, SERVANTS, AND EMPLOYEES FOR ANY AND ALL CLAIMS OR SUITS FOR HOME CHDO PROGRAM CONTRACT Page 16 SOP Rev. 6-03-05 PROPERTY LOSS OR DAMAGE AND/OR PERSONAL INJURY, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF WHATSOEVER KINDS 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. SOP LIKEWISE COVENANTS AND AGREES TO AND DOES HEREBY INDEMNIFY AND HOLD HARMLESS CITY 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 SOP, 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. IT IS THE EXPRESS INTENTION OF THE PARTIES, BOTH SOP AND CITY, THAT THE INDEMNITY PROVIDED FOR THIS SECTION INCLUDES INDEMNITY BY SOP TO INDEMNIFY AND PROTECT CITY FROM THE CONSEQUENCES OF CITY'S OWN NEGLIGENCE, WHETHER THAT NEGLIGENCE IS ALLEDGED TO BE THE SOLE OR CONCURRING CAUSE OF THE INJURY, DAMAGE OR DEATH. SOP AGREES TO AND SHALL RELEASE CITY, ITS AGENTS, EMPLOYEES, OFFICERS AND LEGAL REPRESENTATIVES FROM ALL LIABILITY FOR INJURY, DEATH, DAMAGE OR LOSS TO PERSONS OR PROPERTY SUSTAINED IN CONNECTION WITH OR INCIDENTIAL TO PERFORMANCE UNDER THIS CONTRACT, EVEN IF THE INJURY, DEATH, DAMAGE OR LOSS IS CAUSED BY THE CITY'S SOLE OR CONCURRENT NEGLIGENCE. SOP SHALL REQUIRE ALL OF ITS SUBCONTRACTORS TO INCLUDE IN THEIR SUBCONTRACTS A RELEASE AND INDEMNITY IN FAVOR OF THE CITY IN SUBSTANTIALLY THE SAME FORM AS ABOVE. M. Waiver of Immunity If SOP, 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, SOP 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. HOME CHDO PROGRAM CONTRACT Page 17 SOP Rev. 6-03-05 N. Insurance and Bonding SOP will maintain blanket fidelity coverage in the form of insurance or bond in the amount of $30,000, to insure against loss from the fraud, theft or dishonesty of any of SOP'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 Funds 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 use and benefit of SOP. SOP shall furnish to City, in a timely manner, certificates of insurance as proof that it has secured and paid for policies of commercial insurance as specified herein. Such insurance shall cover all insurable risks incident to or in connection with the execution, performance, attempted performance or nonperformance of this Contract. SOP shall maintain the following coverages and limits thereof: 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 above coverage, and at the discretion of the SOP, the policy shall be the primary responding insurance policy versus a personal auto insurance policy if or when in the course of SOP'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. SOP or its subcontractors shall maintain coverages. In the event the respective subcontractors do not maintain coverage, SOP shall maintain the coverage on such subcontractor for each applicable subcontract. Directors and Officers Insurance Optional (Highly Recommended) Note: This insurance shall cover SOP and any associated Board of Directors members. HOME CHDO PROGRAM CONTRACT Page 18 SOP Rev. 6-03-05 Additional Requirements Such insurance amounts shall be revised upward at City's option and that SOP shall revise such amounts within thirty (30) days following notice to SOP of such requirements. SOP will submit to City documentation that it has obtained insurance coverage and has executed bonds as required in this Contract 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 City as an additional insured as its interest may appear. Additional insured parties shall include employees, officers, agents, and volunteers of the City. 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 City. Any failure on part of the City to request certificate(s) of insurance shall not be construed as a waiver of such requirement or as a waiver of the insurance requirements themselves. Insurers of SOP'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 A: VII or other equivalent insurance industry standard rating otherwise approved by City. Deductible limits on insurance policies shall not exceed $5,000 per occurrence unless otherwise approved by City. In the event there are any local, federal or other regulatory insurance or bonding requirements for the Program, and such requirements exceed those specified herein, the former shall prevail. SOP shall require its subcontractors to maintain applicable insurance coverages, limits, and other requirements as those specified herein; and, SOP shall require its subcontractors to provide SOP with certificate(s) of insurance documenting such coverage. Also, SOP shall require its subcontractors to have City and SOP endorsed as additional insureds (as their interest may appear) on their respective insurance policies. SOP shall require its subcontractors to maintain builders risk insurance at the limit of applicable project(s) costs when the value of materials involved exceeds $10,000 or at a different limit value as specified by City. O. Certification Regarding Lobby" in CHDO PROGRAM CONTRACT Page 19 SOP Rev. 6-03-05 The undersigned representative of SOP 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 SOP, 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, SOP shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. This certification is a material representation of fact upon which reliance was placed when this Contract was made or entered into. Submission of this certificate is a prerequisite for making or entering into this Contract imposed by 31 USC Section 1352. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000.00 and not more than $100,000.00 for each such failure. SOP shall require that the language of this certification be included in all subcontracts or agreements involving the expenditure of Federal funds. P. MISCELLANEOUS PROVISIONS All terms of this Contract shall apply to any and all subcontractors of SOP who are in any way paid with HOME Funds or who perform any work in connection with SOP's program. All notices required or permitted by this Contract must be in writing and are deemed delivered on the earlier date of the date actually received or the third day following (i) deposit in a Untied States Postal Service post office or receptacle; (ii) with proper postage, certified mail return receipt requested; and (iii) addressed to the other Party at the address set out in the preamble of this Contract or at such other address as the receiving Party designates by proper notice to the sending Party. If applicable, SOP must meet conditions and limitations for use of HOME Funds involving a primarily religious entity as set forth in the HOME Regulations. SOP shall notify City in writing of any changes in its 501 (c) (3) tax exempt status during the term of this Contract as well as any other change that alters SOP's certification as a CHDO under the HOME Regulations. SOP agrees to document its continued compliance, including but HOME CHDO PROGRAM CONTRACT F agec430 SOP F ev.'lbLo31 (65-`,; 3 V not limited to an annual board roster and certification of continued compliance. SOP represents that it possesses the legal authority, pursuant to any proper, appropriate and official motion, resolution or action passed or taken, to enter into this Contract and to perform the responsibilities herein required. [SIGNATURES APPEAR ON FOLLOWING PAGE] HOME CHDO PROGRAM CONTRACT Page 21 SOP Rev. 6-03-05 i IN WITNESS WHEREOF, the Parties $ereto have executed four copies of this Contract in Fort Worth, Tarrant County, Texas, this day of `Ts�r1� , , 2005. ATTEST: CITY OF FORT WORTH i y ` By:_2 City Secretary Dale A. Fisseler A Assistant City Manager APPROVED AS TO FORM AND LEGALITY: Assistant City Attorney SPIRIT OF PRAYER COMMUNITY AND ECONOMIC DEVELOPMENT CO 0) TION, INC. Contract Author atiou _ By: C Date Jean- e Nunn, Executive Director STATE OF TEXAS § COUNTY OF TARRANT § This instrument was acknowledged before me on f- (p , 2005 by Dale A. Fisseler, the Assistant City Manager, of the City of Fort Worth, on behalf the City of Fort Worth. Notary Publi , State of Texas =�st.,rte: KATHY F.DURHAM MY COMMISSION EXPIRES January 24,2009 STATE OF TEXAS § COUNTY OF TARRANT § This instrument was acknowledged before me on �� (,� C IC 2005 by Jeanette Nunn, the Executive Director of Spirit of Prayer Community and Economic Development, Inc., a Texas non-profit corporation, on ehalfof said cp ration. N,o ary Public, State of Texas =N I ES i 'f,R; w HOME CHDO PROGRAM CONTRACT (Page 22 ' SOP Rev. 6-03-05 EXIIIBIT"A" PROGRAM SUMMARY SCOPE OF WORK Spirit of Prayer Community and Economic Development Corporation,Inc. DESCRIPTION: Spirit of Prayer Community and Economic Development Corporation, Inc. (SOP ) plans to build three, three bedroom, two bath, two car garage infill homes in the Stop Six-Sunrise Neighborhood with an option to build in the second phase three more homes in the Stop Six- Sunrise Neighborhood once the first three homes have been sold. At the completion of all six homes the remaining funds will be considered CHDO proceeds enabling SOP to retain all proceeds from the sale of the last two homes. The HOME regulations allow a CHDO to retain sales proceeds, upon approval by the City. The City of Fort Worth's investment in these properties will be secured through a first lien deed of trust to be paid off when the first two homes sell. SPECIFIC PURPOSE: The City Council of Fort Worth has determined that the development of safe, decent, and affordable infill housing is needed for moderate, low, and very low-income citizens of Fort Worth. These homes will be built to City of Fort Worth housing standards. These homes will be sold to income-eligible residents who do not exceed 80% of area median income. PROGRAM OBJECTIVES: 6 infill homes to be built. PROGRAM MEASURES: Estimated Budget 2005 • 1. Build 6 Quality homes that meet the Two homes to be build in one phase $ 255,000 City of Fort Worth's housing standards for residents who do not exceed 80% of AMI. Final Program Operation Costs $ 255,000 TOTAL PROGRAM BUDGET $ 255,000 Total CDBG HOME Other Sources Budget Fundraising Funds Funds [A] [B] [C] [D] Reimbursement of Land $12,000.00 Acquisition Payment of Soft Costs& $4,000.00 Related Costs(Appraisal, Survey,Architectural, Soil Test) Permits $600.00 $600.00 Construction Financing $2,100.00 $2,100.00 Slab Foundation $14,629.00 $14,629.00 Framing $43,320.00 $43,320.00 Roof Labor& Shingles $3,420.00 $3,420.00 Windows/Door Ext. $7,350.00 $7,350.00 Electric Rough In & Trim $13,500.00 $13,500.00 HAVAC Rough In $9,000.00 $9,000.00 HAVAC Trim $7,500.00 $7,500.00 Plumbing Rough In $7,500.00 $7,500.00 Plumbing Top Out $7,500.00 $7,500.00 Fireplace and Insulation $1,800.00 $1,800.00 Brick $13,995.00 $13,995.00 Sheetrock: Tap/Bed/Texture $10,278.00 $10,278.00 Paint: Interior/Exterior $17,063.00 $17,063.00 Interior: Doors and Trim $3,660.00 $3,660.00 Cabinets $8,100.00 $8,100.00 Bath Hardware & Labor $1,500.00 $1,500.00 Carpet/Flooring $5,100.00 $5,100.00 Tile $1,800.00 $1,800.00 Counter Tops $3,000.00 $3,000.00 Appliances $4,500.00 $4,500.00 Final Clean $2,100.00 $2,100.00 Landscape $5,000.00 $5,000.00 Specialty Options $900.00 $900.00 Mailbox $840.00 $840.00 Home Warranty $0.00 $0.00 Job Site Supervision $42,945.00 $42,945.00 EXHIBIT "C" SDI PROJECTS PROGRAM TIMELINE 1-3 4-6 7-9 10-12 months months months months Activity Home #1 5212 Pinson ❖ Construction ❖ Selling Period Home#2 5216 Pinson ❖ Construction ❖ Selling Period Home #3 5221 Pinson Construction ❖ Selling Period EXHIBIT "D" ATTACH AUDIT CERTIFICATION FORM AS EXHIBIT D INSTEAD OF THIS FORM INDEPENDENT AUDIT REQUIREMENT BUSINESS/AGENCY NAME: SPIRIT OF PRAYER COMMUNITY AND ECONOMIC DEVELOPMENT CORPORATION,INC. PROGRAM: Infill Development CHDO Program AMOUNT FUNDED: $255,000 Name of Independent Auditor who will perform agency audit: (Independent Auditor) Date audit is to be performed: (Month and Year) The following language is a condition of your contract with the City: All non-federal entities that expend $500,000 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 specific reference to OMB Circular A-133. The audit may cover either Contractor's fiscal year during which this contract is in force or cover the period of this contract. The Audit must be prepared by an independent certified public accountant, be completed within (12) months following the end of the period being audited and be submitted to City within thirty(30) dqys of its completion. Cost of preparation of this 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 ****The contractor does not meet the $500,000 Threshold*** Exhibit F REQUEST FOR PAYMENT OWNER: CONTRACTOR: ADDRESS: AMOUNT REQUEST: CONTRACTOR: I hereby request an inspection on to receive payment in the above amount. I certify that I have satisfactorily accomplished the necessary work to justify this request and that all bills incurred for the labor used and material furnished in making of said repairs and improvements have been paid in full to this date. Contractor's Signature: Date: ADDENDUM #1 A minimum of five (5) inspections is required: (1) FIRST REQUIRED INSPECTION Foundation-No concrete shall be placed without the steel, poly, plumbing and beams inspection. After the slab is poured, Contractor will receive the first draw in the amount of 18% of the Contract Price. (2) SECOND REQUIRED INSPECTION Framing- After the house has been framed, decked, cornice installed, window installation, roofing and siding is completed, Contractor will receive the second draw in the amount of 18% of the Contract Price. (3) THIRD REQUIRED INSPECTION After the electrical rough in, plumbing top-out, HVAC rough in and the wall insulation are completed (prior to installation of drywall),Contractor will receive the third draw in the amount of 18% of the Contract Price. (4)FOURTH REQUIRED INSPECTION After the installation of the brick, drywall, tape/ bed/texture, trim-out, interior and exterior paint, floor coverings, cabinets and counter tops and the plumbing trim out are completed, Contractor will receive the fourth draw in the amount of 18% of the Contract Price. (5) FIFTH REQUIRED INSPECTION Final inspection- After all finish work, the drive and approach, grading, electrical, HVAC, attic insulation have been completed and the Building card has been signed off as being complete, Contractor will receive the fifth draw in the amount of 18% of the Contract Price. RETAINAGE The 10% retainage will be released no sooner than thirty days after substantial completion and after installation of appliances, completion of the punch list, delivery of all warranties, waivers, as-built survey, bills paid affidavits and receipt of final approval for occupancy by any governmental authority. Attachment IV MONTHLY NARRATIVE REPORT Month Reporting From: To: L Accomplishments: II. Additional comments regarding accomplishments this month: III. Problems encountered and solutions proposed: IV. Anticipated activities during the next month: i ' CITY OF FORT WORTH HOUSING DEPARTMENT SUBGRANTEE'S REQUEST FOR FUNDS Agency Program Name: Contract Number: Report Period: Date of Request: CASH BALANCE ANALYSIS FOR 1. Beginning Cash Balance $ $ 2. Amount Received: Program Income $ 0 $ 0 City of Fort Worth $ $ Interest Earned $ 0 $ 0 3. Total Funds Available(1 +2) $ $ 4. Less Expenditure(detail statement cost) $ $ 0 5. ENDING CASH BALANCE (3-4) $ $ 0 �„ era ►a� , 6. Estimated Expenditures $ 7. Funds Needed(6-5) $ 8. Less Estimated Program Income $ 0 9. Unpaid Request for Payment Previously Submitted $ 0 10.Amount of This Request(7-8 &9) $ INNER I. MARS-Purchasing Request A. MARS INPUT: Vendor/PO Number/Requisition Number B. Fund/Account/Center C.�Tott(all Amount of this Request qr cTY� 4tt �a :SG hw + c " F V� 5 y 1Y NINE-, A.ee 1. Verification A. MARS-Purchasing: Name B. Contract Manager: (Name) C. Accounting: Name) 2. Authorization A. Agency: amt B. Mgmt& Budget Administrator Namo Housing Director Ul OVER$8,500.00 (Name) i i . � �':a / / / / / / / / i CITY OF FORT WORTH HOUSING DEPARTMENT MANAGEMENT AND BUDGET DIVISION DETAIL STATEMENT OF COSTS CONTRACT NO. DATE AGENCY PROGRAM REPORT PERIOD PROGRAM MONTHLY CUMULATIVE COST CATEGORY ACCOUNT BUDGET EXPENDITURES TO DATE Payment of Soft Costs&Related Costs(Appraisal, Survey, Architectural, Soil Test) Reimbursement of Acquisition Costs Site Security(1/2) Marketing(1/2) Plumbing Rough In Slab Foundation Water/Sewer/Electric Framing Roof Shingles Windows/Door Ext. Electric Rough In Electrical Trim HAVAC Rough In HAVAC Trim Plumbing Top Out Fireplace and Insulation Brick Sheetrock: Tape/Bed/Texture Stone Accents Paint: Interior/Exterior Interior: Doors and Trim Cabinets Hardware Mirrors and Shelves Lights and Fans Carpet/Flooring Tile Counter Tops Appliances Garage Door l 3 Side Walks Utilities Final Clean Landscape Fence Home Warranty Security System Contingency(Including minimum Sub-Contractors Certification: I certify that the costs incurred are taken from the books of accounts and that such and consistent with the terms of the agreement. NAME and TITLE OF AUTHORIZED OFFICER SIGNATURE and DATE BALANCE costs are valid I . CITY OF FORT WORTH HOUSING DEPARTMENT MANAGEMENT AND BUDGET DIVISION EXPENDITURES WORKSHEET CONTRACT NO. DATE AGENCY TO PROGRAM REPORT PERIOD NO. DATE PAYEE DESCRIPTION ACCOUNT NO. AMOUNT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 TOTAL Sub-Contractors Certification: I certify that the costs incurred are taken from the books of accounts and that such costs are valid and consistent with the terms of the agreement. NAME and TITLE OF AL'THORIZED OFFICER SIGNATI!RE and DATE City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 5/3/2005 DATE: Tuesday, May 03, 2005 LOG NAME: 05SOPPINSON REFERENCE NO.: C-20705 SUBJECT: Authorize Execution of Contract with Spirit of Prayer Community and Economic Development Corporation and Authorize Reallocation of Home Community Housing Development Organization Program Funds for Development of Infill Housing RECOMMENDATION: It is recommended that the City Council: 1. Authorize the reallocation of $255,000 in HOME Community Housing Development Organization (CHDO) set aside program funds to Spirit of Prayer Community and Economic Development Corporation (SOP) for the development of three homes in the Stop Six Neighborhood at 5212, 5216 and 5221 Pinson with an option to build three more homes in the Stop Six Neighborhood once the initial three homes have been sold; 2. Authorize the City Manager to execute a contract with SOP, not to exceed a total of$255,000; 3. Authorize the contract performance period to begin on the date of contract execution and end eighteen months thereafter; 4. Authorize extension or renewal of the contract for up to six months, if SOP requests an extension; and 5. 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 Community Housing Development Organization (CHDO) set aside program fund is intended to be a partnership between federal, state and local government and community based builders who build, own, manage, finance and support low income housing initiatives. HOME Participating Jurisdictions (PJs), such as the City of Fort Worth, are particularly encouraged to work with existing community-based, non- profit housing organizations, such as Spirit of Prayer Community and Economic Development Corporation (SOP). SOP has been a City of Fort Worth certified CHDO since March 25, 2004. SOP is also a non-profit organization, founded to acquire land and provide affordable housing to low and moderate-income households. The SOP staff has a combined twenty years in housing development and they have been performing minor rehabilitation and replacement housing projects in conjunction with the City's Model Blocks program since 1999. SOP's plans are to initially build three, three bedroom, two bath, two garage infill homes in the Stop Six Neighborhood with an option to build three more similar homes in the neighborhood once the initial three homes have been sold. They will build the six homes in two phases (each phase consists of three Ln�name: 05SOPPINSON Pace 1 of 7 homes). At the completion of all six homes the funds will be considered CHDO proceeds enabling SOP to retain all proceeds from the sale of the last three homes. The City of Fort Worth's investment in these properties will be secured through a first lien deed of trust. The first three homes will have a brick exterior with a landscaped lawn square footage ranging between 1340 and 1400 square feet. These homes will be sold to income-eligible residents who do not exceed 80% of area median income. SOP will serve as the general contractor and has estimated construction of all three homes to be between $79,000 and $81,000. SUB-RECIPIENT: Spirit of Prayer Community and Economic Development Corporation SCOPE OF WORK: Infill New Construction Housing FUNDING SOURCE: HOME CHDO set aside Program Funds FUNDING REQUEST: Program Costs to City of Fort Worth 6 New Homes (Request) $255,000 The Housing and Workforce Development Committee reviewed this proposal on March 29, 2005 and recommends City Council approval. This program will be administered in COUNCIL DISTRICT 5. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that funds are available in the current operating budget, as appropriated, of the Grants Fund. TO Fund/Account/Centers FROM Fund/Account/Centers GR76 539120 005206772 $84,853.65 GR76 539120 005206846030 $84,853.65 GR76 539120 005206930 $170,146.35 GR76 539120 005206930030 $170,146.35 Submitted for City Manager's Office b . Dale Fisseler (6140) Originating Department Head: Jerome Walker (7537) Additional Information Contact: Cathy Davidson (7545) Loename: 05SOPPINSON Page 2 of 2