HomeMy WebLinkAboutContract 42289-A2SECOND AMENDMENT TO CITY SECRET ARY CONTRACT NO. 42289
WHEREAS the City of Fort Worth ("City") and TaiTant County Housi ng Partnership ,
Lnc . ("Developer") made and entered into City Secretary Contract No. 42289 (collectively
with all previous amendments, the "Contract");
WHEREAS, the Contract prov ided funding to Deve loper pursuant to a grant received
by City from the United States Depaitment of Hous ing and Urban Development ("HUD ")
through the HOME Investment Paitnerships Program ("HOME"), Catalog of Federal Domestic
Assistance No. 14.239 ;
WHEREAS , the HOME regulations require that 15 % of the City 's HOME grant funds
be set aside for housing to be developed , sponsored or owned by a Community Housing
Development Organization ('·CHOO ") and Developer qualifies as a CHDO;
WHEREAS, the City agreed to loan Developer $1,0 00,000 .00 of its HOME CHDO set-
aside funds in the fo1m of a subordinate loan to complete the rehabilitation of a foreclosed 11
building apartment complex commonly known as the Beaty Street Apartments, und er the te1ms
and conditions described in the Contract;
WHEREAS, the City also agreed to loan the Dev eloper $1,699,175 of its Neighborhood
Stabilization Program fund s in the form of a subordinate loan for the project under the terms
and conditions of City Secretary Contract No. 42290, and Developer obtained a line of credit
from a bank ;
WHEREAS, due to the age of the buildings being renovated as well as other unforeseen
expenses including asbestos and lead remedi at ion, the rehabilitation costs exceeded the Budget
by $195 ,000 .00 so there is a gap in Developer 's financin g for the project;
WHEREAS, HUD notified the City that it had available $19 ,526.5 1 of HOME CHDO
Reservation funds from 1998 that had to be expended on an eligible HOME project and in the
. First Amendment to the Contract, City agreed with Developer to increase the Loan by that
amount to assist with the funding gap and to prevent the City from losing the CHDO funds ;
WHEREAS , HUD has now notified the City that $45,000 .00 of 2006 HOME funds
must be expended for a HOME project and City is willing to use these funds to increase the
Loan to Developer to fu1ther assist with the funding gap and to prevent the City from losing the
benefit of these funds;. and,
WHEREAS, it is the mutual desire of City and Agency to amend the Contract to
prov ide for a total Loan of $1,064,526.51;
NOW, THEREFORE, City and Developer hereby agree to amend the Contract as
follows:
RECEI VED SEP 18 2013
Amendment No. 2 to CSC 42289
TCHP-Beaty Street Apartments (HOME)
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
R ev 09 /2013
Page I
I.
a. Section 4 .1 is deleted in its entirety and replaced with the following:
City shall loan up to One Million Sixty-Four Thousand Five Hundred Twenty Six and
51/100 Dollars ($1 ,064 ,526 .51) of HOME Funds in the form of a subordinate loan to complete
the construction of the Required Improvements, under the tem1s 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 9/2013
c. This amendment is effective as of the Effective Date of the Contract.
II.
Developer and City agree to enter into a separate Modification, Renewal and Extension
Agreement to reflect the new Loan amount.
III.
All terms and conditions of the Contract not amended herein remain unaffected and in
full force and effect, are binding on the Pai1ies and are hereby ratified by the Parties. Terms
not specifically defined herein shall have the same meaning as in the Contract.
[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]
Amendment No. 2 to CSC 42289
TCHP-Beaty Street Apa11ments (HOME)
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
Rev 09 /2013
Page 2
ACCEPTED AND AGREED:
TARRANT COUNT HOUSING
PARTNERSH
Date: 7/26/2011
Amendment No. 2 to CSC 42289
TCHP-Beaty Street Apartm ents (HOME)
CITY OF FORT WORTH
Bys:.1.CL
Fernando Costa,
Assistant City Manager
APP~F~ALITY:
Assistant City Attorney
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
Rev 09 /20 13
Page 3
EXHIBIT "B"
Sources and Uses Revised 9/2013
COFWNSP COFWHOME COFW TCHP TOTAL WAP** LOC
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 $13 5 ,000
Relocation Expenses (1 tenant) $15 ,000 $1 5 ,000
Architectural $8,360 $8,360
Rehab and Hard Costs $208,34 1 $1,064,526.51 $248,750 $506,640 $2,028,25 7 .5 1
Deve loper Fee 5% NSP* $84,988 $8 4 ,988
TOTAL $1,737,255 $1,064,526.51 $248,750 $530,000 $3,580,531.51 .
*$50 ,000 of Developer Fee to be paid upon closing of Beaty Street prope11y, and the remainder to be
paid when City has received from Developer all info1mation required to close the 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 . 2 to CSC 42289
TCHP-Beaty Street Apartments (HOME)
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
R ev 09 /2013
Page 4
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:
1. 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 A venue
(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 consists 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 (CHOO) Set-Aside
funds to TCHP, a certified CHOO for this project. The funds can be used for acquisition, predevelopment
costs, rehabilitation and redevelopment costs, including, among other things, making the project more
sustainable and energy efficient.
StaUrecommends the followine 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 exgenditure of HOME funds is conditioned upon the followine:
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 CHOO 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.
Elll'Sll CENIERS:
IO Eu.nd/ A!.:!.:2untlC1mter5 EROM Eund/ A!.:!.:2untlCenter5
QB.:Z6 S3212Q QQS2Q6128SQQ $3]],47 QR76 S3212Q OOS2Q612821Q $37] ,47
QR76 S3212Q QQS2Q6128SQQ $22,222,00 QR76 S3212Q OOS2Q612816Q $22,222,00
QR76 S3212Q QQS2Q6628SOO $1Q,745,27 QE.76 S3212Q OOS2Q662846Q $1Q,715,27
QE.76 S3212Q QQS2Q6772SOO $44,227,00 QR7g S3212Q OOS2Q677246Q $44,227,00
QR76 S3212Q OOS2Q6816SQQ $25.00Q.QQ QR76 S3212Q OOS2Q681628Q $25,QOO.OO
QR76 S3212Q QQS2Q6816SQQ $25.00Q.QQ QR76 S3212Q OOS2Q681627Q $25,QQQ.OO
GR76 S3212Q QQS2Q623QSQQ $16,QS9,6S GR16 S3912Q OOS2Q693Q21Q
GE.16 SJ912Q QQS2Q693QSQQ $39,135.83 GR16 S3912Q OOS2Q693Q22Q
GR16 S3912Q QQS2Q693QSQQ $2.316.% GR16 S3912Q OOS2Q693Q28Q
GB.16 S3212Q QQS2Q6QQ6SQQ $3:lQ.326,61 GB.16 S3212Q OOS2Q60062JQ
GE.16 S3912Q QQS2Q6QQ6SQQ $34.384, 11 GR16 S3212Q OOS2Q600622Q
GR16 S3912Q QQS2Q6QQ6SQQ $1%.494,QQ GR16 S3212Q OOS2Q600622Q
GR16 S3912Q QQS2Q6QQ6SQQ $36,119.46 GR16 S3912Q OOS2Q600628Q
GR16 S3912Q QQS2Q6141SQQ $181.19Q,68 GR16 S3912Q OOS2Q614122Q
CERTIFICATIONS:
Submitted for City Manmier's Office by: Susan Alani s (8180)
Jay Chapa (5804)
Cynthia Garcia (8187)
Originating Department Head:
Additional Information Contact: Ryan Haden (7329)
ATTACHMENTS
1. Available Funds -Beaty Street Apartments,pdf
2. Available Funds,pdf
3. Beaty Street Apartments Map.doc
$16,QS9,6S
$32.135.83
$2,316.86
$3:lQ.326,61
$34,384.11
$136,494.00
$36,119.46
$181,19Q,68