HomeMy WebLinkAboutContract 42289-A1CITYSECR!T.
CONTRACT NO. L\ '11-~q -~ \
FIRST AMENDMENT TO CITY SECRETARY CONTRACT NO. 42289
WHEREAS the City of Fort Worth ("City") and Tarrant County Housing
Partnership, Inc. ("Developer") made and entered into City Secretary Contract No.
42289 ( collectively with all previous amendments, the "Contract");
WHEREAS, the Contract provides funding to Developer pursuant to a grant
received by City from the United States Department of Housing and Urban Development
("HUD") through the HOME Investment Partnerships Program ("HOME"), Program No.
M-09-MC-480204 Catalog of Federal Domestic Assistance No. 14.239;
WHEREAS, in Section 4.1 of the Contract, the City agrees to loan the Developer
up to One Million and 00/100 Dollars ($1,000,000.00) in HOME funds in the form of a
subordinate loan to complete the construction of the Required Improvements, under the
terms and conditions described in the Contract ; and
WHEREAS, HUD notified the City that available HOME Community Housing
Development Organization (CHDO) Reservation funds from 1998 must be committed
and expended for a HOME project or the City will lose the funds.
WHEREAS, Developer has is in need of additional HOME funds to finish out the
Required Improvements in the Contract; and
' WHEREAS, City has agreed to provide an additional Nineteen Thousand Five
Hundred Twenty Six and 51/100 Dollars ($19,526.51) to the Loan for rehabilitation
costs; and
NOW, THEREFORE, City and Developer hereby agree as follows:
I.
a. Section 4.1 is deleted in its entirety and replaced with the following:
City shall loan up to One Million Nineteen Thousand Five Hundred Twenty Six
and 51/100 Dollars ($1,019,526.51) of HOME Funds in the form of a subordinate loan to
complete the construction of the Required Improvements, under the terms and conditions
described herein (the "Loan").
b. Exhibit "B" -Sources and Uses attached to the Contract is hereby
replaced with the attached Exhibit "B" -Sources and Uses Revised 1/2013
c. This amendment is effective as of the Effective Date of the Contract.
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Amendment No. 1 to CSC 42289
TCHP -Beaty St. Apartments (HOME)
0 2 -11 -1 3 P02 :35 I N
ACCEPTED AND AGREED:
TARRANT COUNT HOUSING
PARTNERSHIP, INC.
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Pres1dent/CEO
ATTEST:
Amendment No. 1 to CSC 42289
TCHP-Beaty St. Apartments (HOME)
CITY OF FORT WORTH
APPROVED AS TO FORM AND LEGALITY:
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
EXHIBIT "B"
Sources and Uses Revised 1/2013
w, '::ii \\ COFW TCHP COFWNSP COFWHOME WAP** LOC TOTAL
Acquisition $1,150,000 $1,150,000
Acquisition -Insurance -property $20,000 $20,000
liability, builder's risk
Acquisition -Closing costs, $118,801 $118,801
extension/legal fees
Acquisition-Asbestos Survey $6,125 $6,125
Acquisition-Lead Base Paint $14,000 $14,000
Testing
Relocation Agent Fees $135,000 $135,000
Relocation Expenses (1 tenant) $15,000 $15,000
Architectural $8,360 $8,360
Rehab $208,341 $1,019,526.51 $248,750 $506,640 $1,983,257.51
Developer Fee 5% NSP* $84,988 $84,988
TOTAL $1,737,255 $1,019,526.51 $248,750 $530,000 $3,535,531.51
*$50,000 of Developer Fee to be paid upon closing of Beaty Street property, and the remainder
to be paid when City has received from Developer all information required to close Project in
IDIS and begin the Affordability Period.
**Nothing in this Contract shall be construed as a commitment by the City to provide these
funds.
Amendment No. 1 to CSC 42289
TCHP-Beaty St. Apartments (HOME)
I
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 7/26/2011
DATE: Tuesday, July 26, 2011 REFERENCE NO.: C-25072
LOG NAME: 17BEATY STREET APARTMENTS-ADDITIONAL CHDO FUNDING
SUBJECT:
Authorize Change in Use and Expenditure of $1,000,000.00 of HOME Investment Partnerships Program
Grant Funds to Tarrant County Housing Partnership, Inc., in the Form of a Subordinate Forgivable Loan for
the Beaty Street Apartments Located in the 5500 Block of Beaty Street, Authorize the Execution of a Contract
and Authorize Substitution of Funding Years (COUNCIL DISTRICT 8)
RECOMMENDATION:
It is recommended that the City Council:
I. Authorize a change in use and expenditure of $1,000,000.00 in prior year's HOME Investment
Partnerships Program Grant funds to Tarrant County Housing Partnership, Inc. in the form of a subordinate
forgivable loan for the acquisition, rehabilitation and redevelopment of the Beaty Street Apartments located
in the 5500 block of Beaty Street;
2. Authorize the City Manager, or his designee, to execute a contract and any related documents for the
project with the Tarrant County Housing Partnership, Inc., for a two-year term beginning on the date of
execution of the contract;
3. Authorize the City Manager, or his designee , to extend or renew the contract for up to one year if Tarrant
County Housing Partnership, Inc. requests an extension and such extension is necessary for completion of the
project;
4. Authorize the City Manager, or his designee, to amend the contract if necessary to acheive project goals
provided that the amendment is within the scope of the project and in compliance with City policies and
applicable laws and regulations governing the use of federal grant funds; and
5. Authorize the City Manager to substitute funding years in order to meet commitment, disbursement, and
expenditure deadlines for grant funds from the United States Department of Housing and Urban
Development.
DISCUSSION:
On July 13, 2010, City Council approved a contract with Tarrant County Housing Partnership, Inc. (TCHP)
for $1,360,255 .00 of the City's Neighborhood Stabilization Program (NSP) grant funds set aside for
households earning less than 50 percent of area median income (AMI) for the acquisition and redevelopment
of the Beaty Street Apartments located in the 5500 block of Beaty Street just north of Lancaster Avenue
(M&C C-24344). On September 14, 2010, City Council approved an addtional $339,500.00 of NSP funds
for the project for a total of $1,699,755 .00 to be in the form of a subordinate forgivable loan (M&C
C-24455). The State is providing approximately $1.8 million of its NSP funds for the project and TCHP is
providing approximately $314,000.00 of its own funds for the project.
The project consi sts of the acquisition of 73 multifamily units to be rehabilitated and redeveloped into 64
units. The 64 units will be in the 10 existing multifamily buildings and a single family house located on the
site will be rehabilitated to serve as an office/community center for on-site enrichment programs such as
budget management classes, credit counseling, job skills, and resume building. The project is now owned by
a lender after foreclosure and existing tenants will be relocated in accordance with Uniform Relocation Act
requirments. The 64 apartment units will provide quality , affordable, accessible housing to individuals and
families earning 50 percent or less of AMI which will increase the total number of very low income
households served by the NSP. TCHP will develop, own, and manage the property.
State and City staff have reviewed the project's development costs and funding sources and the rents that will
be charged. Because NSP requires that the rents be affordable to families earning at or below 50 percent
AMI, State and City staff have identified a gap in the project's finances. Staff recommends awarding an
additional $1,000,000 .00 in HOME Community Housing Development Organization (CHDO ) Set-Aside
funds to TCHP, a certified CHDO for this project. The funds can be used for acquisition, predevelopment
costs, rehabilitation and redevelopment costs, including, among other things, making the project more
s ustainable and energy efficient.
Sta(f cecommends the followinr contract and loan terms:
i. Units must be rented to tenants who earn at or below 50 percent of AMI;
ii . Secure performance and repayment of HOME funds in case of default with deed of trust;
iii. 15 year Affordability Period;
iv . Loan term to run concurrently with Affordability Period;
v. Loan forgiven at end of Affordability Period if all HOME requirments and contract terms are met.
The exizendituce of HOME funds is conditioned wzon the followinr;
i. Satisfactory completion of an environmental review per 24 CFR Part 58; and
ii. Authorization to use grant funds from HUD.
Staff recommends the change in use and expenditure of $1 ,000,000.00 of HOME CHDO Set-Aside funds for
the project which benefits low and very low income citizens by providing them with affordable housing. A
public comment period on the change in use of these HOME funds was held from June 24, 2011 to July 23,
2011. Any comments are maintained by the Housing and Economic Development Department. The Action
Plan funding years selected may vary and be substituted based on the principle of first in, first out (FIFO) in
order to spend oldest grant funds first.
This project is located in COUNCIL DISTRICT 8.
FISCAL INFORMATION:
The Financial Management Services Director certifies that funds are available in the current operating
budget, as appropriated, of the Grants Fund.
FllNll CENIERS:
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QR:ZG 53212Q QQ52QG1285QQ $3:z I 4:Z QR:ZG 53212Q QQ52QG12824Q $3:Zl 4:Z
QR:ZG 53212Q QQ52QG1285QQ $22,22 2,QQ QR:ZG 53212Q QQ52QG1281GQ $22 ,222.QQ
QR:ZG 53212Q QQ52QGG285QQ $ IQ,:Z45 2:Z QRZG 53212Q QQ52QGG284GQ $JQ :Z45 2:Z
QR:ZG 53212Q QQ52QG:Z:Z25QQ $44,22:z,QQ QRZG 53212Q QQ52QG:Z:Z24GQ $44,22:Z,QQ
QR:ZG 53212Q QQ52QG8465QQ $25 ,QQQ,QQ QRZG 53212Q QQ52QG84628Q $25,Q QQ QQ
QR:ZG 53212Q QQ52QG8465QQ $25 QQQ,QQ QR:ZG 53212Q QQ52QG8462:ZQ $25 .QQQ QQ
0816 5J212Q QQ52Q62JQ5QQ $16.Q52.65 0816 5J212Q QQ52Q62JQ21Q
OB.16 5J212Q QQ52Q62JQ5QQ $J2,1J5,8J QB.16 5J212Q QQ52Q62JQ22Q
QB.16 5J212Q QQ52Q62JQ5QQ $2,316,86 OB.Zfi 5J212Q QQ52Q62JQ28Q
0B.Z6 5J212Q QQ52Q60065QQ $J:1Q ,J26.61 0B.Z6 5J212Q QQ52Q6QQ621Q
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OB.16 5J212Q QQ52Q6QQ65QQ $J6.1 l 2A6 QB.16 5J212Q QQ52Q6QQ628Q
QB.16 5J212Q QQ52Q61:115QQ $181,12Q,68 QB.Zfi 5J212Q QQ52Qfil:1122Q
CERTIFICATIONS:
Submitted for City Manager's Office by;
Originating Department Head;
Su san Alanis (8180)
Jay Chapa (5 804)
Cynthia Garcia (8187)
Additional Information Contact; Ryan Haden (7329)
ATTACHMENTS
1. Available Funds -Beaty Street Apartments pdf
2. Available Funds pdf
3. Beaty Street Apartments Map doc
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