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CITY SECRET~Zl)6 CJ -~ 3 CONTRACT NO . .:.i-~-~;..:....; ............
THIRD AMENDMENT TO CITY SECRETARY CONTRACT NO. 42289
WHEREAS the City of Fort Worth ("City ") and T arrant County Housing Partnership,
Inc. ("Developer") made and entered into C it y Secretar y Contract No. 42289 (collectively with
all previous amendments , the "Contract");
WHEREAS, the Contract provided 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"), Catalog of Federal Domestic
As sistance 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 ("CHDO ") and Developer qualifies as a CHDO;
WHEREAS , the City agreed to loan Developer $1,000,000 .00 of its HOME CHDO set-
aside funds in the form of a subordinate loan to complete the rehabilitation of a foreclosed 11
building apartment complex commonly known as the Beaty Street Apartments, under the terms
and conditions described in the Contract;
WHEREAS, the City also agreed to loan the Developer $1,699 ,175 of its Neighborhood
Stabilization Program funds 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 for additional financing for the project;
WHEREAS , due to the age of the buildings being renovated as well as other unforeseen
expenses including asbestos and lead remediation , the rehabilitation costs exceeded the Budget
by $195 ,000 .00 so there was a gap in Developer 's financin g for the project;
WHEREAS , HUD notified the City that it had $19 ,526 .51 of HOME CHDO
Reservation funds from 1998 that had to be expended on an eligible HOME project and City
agreed with Developer to increas e the HOME loan by that amount in the First Amendment to
the Contract to assist with the funding gap and to prevent the City from losing the CHOO
funds;
WHEREAS, HUD notified the City that $45,000 .00 of 2006 HOME funds must be
expended for a HOME project and City agreed with Dev eloper to increase the HOME loan by
that amount in the Second Amendment to the Contract to further assist with the funding gap
and to prevent the City from losing the benefit of these funds ;
WHEREAS, the total HOME loan after the First and Second Amendments to the
Contract was $1,064 ,526 .51 ;
WHEREAS , review of the project identified potential tenant s that may be eligible for
relocation payments under the Uniform Relocation Act ("URA") as set forth in Section 8.3 of
the Contract, and City Council appro ved an additional $265 ,000.00 of HOME Funds for the
project and an extension of the original 2-year term to a 6-year term to m~ et URA
requirements (M&C C-26586); and ,
Am endment No. 3 to C SC 4 22 89
TCHP-Bea ty Stree t Apartment s (HOME)
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX Rev 0 1/20 14
Page I
,
WHEREAS, it is the mutual desire of City and Agency to amend the Contract to
pro vide for a total HOME loan of $1,329,526.51 and a term of 6 years for the Contract to meet
URA requirements.
NOW, THEREFORE, City and Developer hereby agree to amend the Contract as
follows:
. I.
a. Section 3 .1 is deleted in its entirety and replaced with the following:
"The term of this Contract begins on the Effective Date and terminates in 6 years unless
earlier terminated as provided in this Contract."
b. Section 4.1 is deleted in its entirety and replaced with the following:
"City shall loan up to One Million Three-Hundred Twenty Nine
Thousand Five Hundred Twenty Six and 51/100 Dollars ($1 ,329 ,526.51) of
HOME Funds in the form of a subordinate loan to complete the construction of
the Required Improvements and comply with URA and other regulatory
requirements , under the terms and conditions described herein (the "Loan").
c. Exhibit "B" -Sources and Uses attached to the Contract is hereby repl aced
with the attached Exhibit "B" -Sources and Uses Revised 01/2014
d . 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 Parties 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. 3 to CSC 4 2289
TCHP-Be aty Street Apartments (HOME)
Rev 0 1/2 014
P age 2
' ACCEPTED AND AGREED:
TARRANT COUNT HOUSING
PARTNERSH•.._... .. .,_
!
City Secret
M&C: C-26586
Date : 12 /10/2013
Amendment No . 3 to CSC 42289
TCHP-Beaty Street Apartments (HOME)
CITY OF FORT WORTH
By:~~d,C,i
Fernando Costa,
Assistant City Manager
•
APPRO l AS TO FfJRf1 AND LEGALITY:
L{'Juv fJ~
Assistant City Attorney
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
Rev 01 /2014 ______ __, Page 3
C
EXHIBIT "B"
Sources and Uses Revised 01/2014
COFWNSP COFWUOME COFW TCHP TOTAL WAP** LOC
Acquisition $1,150 ,0 00 $1,150,000
Acquisition -Insurance -property $20,000 $20,000
liability, builder's risk
Acquisition -Closing costs , $118,801 $118 ,8 01
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*** $265,000.00 $265,000
Architectural $8,360 $8,360
Rehab and Hard Costs $208,341 $1,064,526.51 $248,750 $506,640 $2,028,257.51
Developer Fee 5% NSP* $84,988 $84,988
T O TAL $1,737,255 $1,329,526.51 $248,750 $515,000 $3,830,531.51
*$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 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.
***Relocation Expenses are project soft costs and eligible URA costs related to the project including
the following for tenants determined to be displaced by the project:
• Moving expenses
• Replacement housing payments
Amendment No. 3 to CSC 42289
TCHP-Beaty Street Apartments (HOME)
Re v 01 /2014
Page 4
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 12/10/2013
DATE: Tuesday, December 10, 2013 REFERENCE NO.: **C-26586
LOG NAME: 17BEATY STREET APARTMENTS-ADDITIONAL CHOO FUNDING
SUBJECT:
Authorize Change of Use and Expenditure of Additional HOME Investment Partnerships Program Grant
Funds in the Amount of $265,000.00 for a Total Amount of $1,329,526.51 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 Execution of a Contract Amendment, and Authorize Substantial
Amendment to the City's 2004-2005, 2008-2009 and 2009-2010 Action Plans and Substitution of Funding
Years (COUNCIL DISTRICT 5)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize a substantial amendment to the City's 2004-2005 , 2008-2009, and 2009-2010 Action Plans;
2. Authorize the substitution of current and prior funding years in order to meet commitment,
disbursement and expenditure deadlines for grant funds from the United States Department of Housing
and Urban Development;
3. Authorize a change in use and expenditure of additional HOME Investment Partnerships Program
Grant funds in the amount of $265,000.00 for a total amount of $1,329,526 .51 to Tarrant County Housing
Partnership, Inc., in the form of a subordinate, forgiveable loan for the acquisition, rehabilitation and
redevelopment of the Beaty Street Apartments located in the 5500 block of Beaty Street;
4. Authorize the City Manager, or his designee, to execute a contract amendment and any related
documents for the project with the Tarrant County Housing Partnership, Inc., and extend the contract to a
six-year term beginning on the date of execution of the contract;
5. 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;
6. Authorize the City Manager, or his designee, 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 City policies
and applicable laws and regulations governing the use of federal grant funds; and
7. 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:
Logname: 17BEATY STREET APARTMENTS-ADDITIONAL CHOO FUNDING Page 1 of 2
, City Council awarded grant funds and contracts to Tarrant County Housing Partnership, Inc. (TCHP), a
Community Housing Development Organization (CHOO), for the acquisition and redevelopment of Beaty
Street Apartments located in the 5500 block of Beaty Street just north of East Lancaster Avenue. City
Council approved the amount of $1,699,755.00 in Neighborhood Stabilization Program grant funds (M&Cs
C-24344 and C-24455), and the amount of $1,000,000.00 in HOME CHOO funds (M&C C-25072) for the
project. City also executed two contract amendments in the amounts of $19,526.51 and $45,000.00 of
additional HOME CHOO funds to assist TCHP with its construction funding gap for a total in the amount of
$1,064,526.51 in HOME CHOO funds for the project to date.
The project consists of the acquisition, rehabilitation, and conversion of 73 units in 11 buildings to 66 units
in 10 buildings. One building was converted to a community and leasing office. Subsequent review and
monitoring of the project identified tenants that may be eligible for relocation payments under the Uniform
Relocation Act (URA).
Staff recommends additional HOME CHOO funding in the amount of $265,000 .00 and an extension of the
contract term to six years in order to meet federal URA requirements. The additional funds will be used for
any eligible URA costs related to the project. Upon approval of this M&C, total HOME CHOO funds for the
project will be $1,329,526.51.
The Action Plan funding years selected may vary and be substituted based on the Principle of First In,
First Out, in order to expend oldest grant funds first. The project benefits low and very low-income citizens
by providing them with quality, accessible, affordable housing. A public comment period on the
Substantial Amendment to the 2004-2005, 2008-2009, and 2009-201 O Action Plans, including the intent to
change use and expend HOME funds, was held October 3, 2013 to November 4, 2013. Any comments
are maintained by the Housing and Economic Development Department, in accordance with federal
regulations.
This project is located in COUNCIL DISTRICT 5, Mapsco 79G.
FISCAL INFORMATION/ CERTIFICATION:
The Financial Management Services Director certifies that upon approval of the above recommendations
and receipt of grant funds, funds will be available in the current and future operating budget, as
appropriated, of the Grants Fund.
FUND CENTERS:
TO Fund/Account/Centers
GR76 539120 005206930500
GR76 539120 005206271500
GR76 539120 017206351500
CERTIFICATIONS:
FROM Fund/Account/Centers
$24,737.00 GR76 539120 005206930390
$195.000.00 GR76 539120 005206271090
$45,263.00 GR76 539120 017206351090
Submitted for City Manager's Office by: Fernando Costa (6122)
Jay Chapa (5804)
Cynthia Garcia (8187)
Jesse Madsen (7337)
Ori inating DeQartment Head:
Additional Information Contact:
ATTACHMENTS
1. available funds.PDF (CFW Internal)
2. Beat¥._Street Agartments map.Qdf (Public)
Logname: 17BEATY STREET APARTMENTS-ADDITIONAL CHDO FUNDING
$24.737.00
$195.000 .00
$45,263.00
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