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HomeMy WebLinkAboutContract 56989-CD1D223091126 05/25/2023 02:27 PM Page: 1 of 9 Fee: $51.00 Submitter: Providence Title Company Electronically Recorded by Tarrant County Clerk in Official Public Records MARY LOUISE NICHOLSON COUNTY CLERK NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER DEED OF TRUST CSC No. 56989-CD1 Date: May 24, 2023 Grantor: Development Corporation of Tarrant County a Texas non-profit corporation. Grantor's Mailing Address: 1509-B S. University Dr., Suite 208, Fort Worth, Tarrant County, TX 76107 Trustee: Denis McElroy Trustee's Mailing Address: C/O City Attorney's Office 200 Texas St. Fort Worth, Tarrant County, TX 76102 Lender: City of Fort Worth, Texas, a Texas municipal corporation Lender's Mailing Address: C/O Neighborhood Services Department 200 Texas Street Fort Worth, Tarrant County, TX 76102 Loan Authority: The loan evidenced by the Note and secured by this Deed of Trust is being made pursuant to the HOME Investment Partnerships Program authorized under Title II of the Cranston - Gonzales National Affordable Housing Act of 1990, as amended, 42 USC 12701 et seq. (the "HOME Program") and the HOME Investment Partnership Program Final Rule, as amended, 24 CFR Part 92 et seq. (the "HOME Regulations") with HOME funds. Obligation Note Date: Even date herewith Original principal amount: $176,485.00 Borrower: Development Corporation of Tarrant County, a Texas non-profit corporation Lender: City of Fort Worth, Texas, a Texas municipal corporation Maturity Date: Three years after the execution of the Contract Property (including any improvements): CHDO SINGLE FAMILY CONTRACT Polytechnic Single -Family Infill Project Development Corporation of Tarrant County— 3732 Avenue J Rev 5/23/2023 OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX SEE EXHIBIT "A" ATTACHED HERETO AND INCORPORATED HEREIN FOR ALL PURPOSES Prior Lien: The lien created by this Deed of Trust will be subordinate to the lien securing payment of a note, and any renewals, extensions, and modifications thereof, in the original principal amount of $100,567.39 dated May 24, 2023, executed by Borrower, payable to Veritex Community Bank, a Texas banking association ("First Lien Note"), and more fully described in a deed of trust recorded in the Real Property Records of Tarrant County, Texas. Subject to waiver, notice, grace and cure period, if any, if default occurs in payment of any part of principal or interest of the First Lien Note or in observance of any covenants of the deed of trust or other loan documents securing it, the entire debt secured by this Deed of Trust will immediately become payable at the option of Lender. Other Exceptions to Conveyance and Warranty: Easements, rights -of -way, and prescriptive rights, whether of record or not; all presently recorded and validly existing recorded instruments other than conveyances of the surface fee estate that affect the Property; liens described in this Deed of Trust; and, taxes for the current year. For value received and to secure payment of the Obligation, Grantor conveys the Property to Trustee in trust. Grantor warrants and agrees to defend the title to the Property, subject to the Other Exceptions to Conveyance and Warranty. On payment of the Obligation and all other amounts secured by this Deed of Trust, this Deed of Trust will have no further effect, and Lender will release it at Grantor's expense. Clauses and Covenants A. Grantor's Obligations Grantor agrees to- 1. keep the Property in good repair and condition; 2. pay all taxes and assessments on the Property before delinquency and provide proof of payment of same upon request by Lender; 3. defend title to the Property subject to the Other Exceptions to Conveyance and Warranty and preserve the lien's priority as it is established in this Deed of Trust; 4. maintain, in a form acceptable to Lender, an insurance policy that — a. covers all improvements for their full insurable value as determined when the policy is issued and renewed, unless Lender approves a smaller amount in writing; CHDO SINGLE FAMILY CONTRACT Polytechnic Single -Family Infill Project Development Corporation of Tarrant County — 3732 Avenue J Rev 5/23/2023 b. contains an 80 percent coinsurance clause; C. provides all-risk coverage; d. protects Lender with a standard mortgage clause; e. provides flood insurance at any time the Property is in a flood hazard area; and f. contains such other coverage as Lender may reasonably require; 5. comply at all times with the requirements of the 80 percent coinsurance clause; 6. deliver the insurance policy to Lender within ten days of the date of this Deed of Trust and deliver renewals to Lender at least fifteen days before expiration; 7. obey all laws, ordinances, and restrictive covenants applicable to the Property; 8. keep any buildings occupied as required by the insurance policy; 9. if the lien of this Deed of Trust is not a first lien, pay or cause to be paid all prior lien notes and abide by or cause to be abided by all prior lien instruments; and, 10. notify Lender of any change of address. B. Lender's Rights 1. Lender may appoint in writing a substitute trustee, succeeding to all rights and responsibilities of Trustee. 2. If the proceeds of the Obligation are used to pay any debt secured by prior liens, Lender is subrogated to all the rights and liens of the holders of any debt so paid. 3. Lender may apply any proceeds received under the insurance policy either to reduce the Obligation or to repair or replace damaged or destroyed improvements covered by the policy. If the Property is Grantor's primary residence and Lender reasonably determines that repairs to the improvements are economically feasible, Lender will make the insurance proceeds available to Grantor for repairs. 4. Notwithstanding the terms of the Note to the contrary, and unless applicable law prohibits, all payments received by Lender from Grantor with respect to the Obligation or this Deed of Trust may, at Lender's discretion, be applied first to amounts payable under this Deed of Trust and then to amounts due and payable to Lender with respect to the Obligation, to be applied to late charges, principal, or interest in the order Lender in its discretion determines. 5. If Grantor fails to perform any of Grantor's obligations, Lender may perform those obligations and be reimbursed by Grantor on demand for any amounts so paid, including attorney's fees, plus interest on those amounts from the dates of payment at the rate stated in the Note for matured, unpaid amounts. The amount to be reimbursed will be secured by this Deed of Trust. CHDO SINGLE FAMILY CONTRACT Polytechnic Single -Family Infill Project Development Corporation of Tarrant County — 3732 Avenue J Rev 5/23/2023 6. If there is a default on the Obligation or if Grantor fails to perform any of Grantor's obligations and the default continues after any required notice of the default and the time allowed to cure, Lender may — declare the unpaid principal balance on the Obligation immediately due; b. direct Trustee to foreclose this lien, in which case Lender or Lender's agent will cause notice of the foreclosure sale to be given as provided by the Texas Property Code as then in effect; and C. purchase the Property at any foreclosure sale by offering the highest bid and then have the bid credited on the Obligation. 7. Lender may remedy any default without waiving it and may waive any default without waiving any prior or subsequent default. 8. If the Property is acquired by Lender by foreclosure, Grantor's right to any insurance policies and proceeds resulting from damage to the Property prior the acquisition shall pass to Lender to the extent of the sums secured by this Deed of Trust immediately prior to the acquisition. 9. Lender or its agents may make reasonable entries upon and inspections of the Property. Lender shall give Borrower notice at the time of or prior to an inspection giving reasonable cause for the inspection. C. Trustee's Rights and Duties If directed by Lender to foreclose this lien, Trustee will — I. either personally or by agent give notice of the foreclosure sale as required by the Texas Property Code as then in effect; 2. sell and convey all or part of the Property "AS IS" to the highest bidder for cash with a general warranty binding Grantor, subject to the Prior Lien and to the Other Exceptions to Conveyance and Warranty and without representation or warranty, express or implied, by Trustee; 3. from the proceeds of the sale, pay, in this order — a. expenses of foreclosure, including a reasonable commission to Trustee; b. to Lender, the full amount of principal, interest, attorney's fees, and other charges due and unpaid; C. any amounts required by law to be paid before payment to Grantor; and d. to Grantor, any balance; and CHDO SINGLE FAMILY CONTRACT Polytechnic Single -Family Infill Project Development Corporation of Tarrant County — 3732 Avenue J Rev 5/23/2023 4. be indemnified, held harmless, and defended by Lender against all costs, expenses, and liabilities incurred by Trustee for acting in the execution or enforcement of the trust created by this deed of trust, which includes all court and other costs, including attorney's fees, incurred by Trustee in defense of any action or proceeding taken against Trustee in that capacity. D. General Provisions 1. If any of the Property is sold under this Deed of Trust, Grantor must immediately surrender possession to the purchaser. If Grantor fails to do so, Grantor will become a tenant at sufferance of the purchaser, subject to an action for forcible detainer. 2. Recitals in any trustee's deed conveying the Property will be presumed to be true. 3. Proceeding under this Deed of Trust, filing suit for foreclosure, or pursuing any other remedy will not constitute an election of remedies. 4. This lien will remain superior to liens later created even if the time of payment of all or part of the Obligation is extended or part of the Property is released. 5. If any portion of the Obligation cannot be lawfully secured by this Deed of Trust, payments will be applied first to discharge that portion. 6. Grantor assigns to Lender all amount/ payable to or received by Grantor from condemnation of all or part of the Property, from private sale in lieu of condemnation, and from damages caused by public works or construction on or near the Property. After deducting any expenses incurred, including attorney's fees and court and other costs, Lender will either release any remaining amounts to Grantor or apply such amounts to reduce the Obligation. Lender will not be liable for failure to collect or to exercise diligence in collecting any such amounts. Grantor will immediately give Lender notice of any actual or threatened proceedings for condemnation of all or part of the Property. 7. Grantor assigns to Lender absolutely, not only as collateral, all present and future rent and other income and receipts from the Property. Grantor warrants the validity and enforceability of the assignment. Grantor may as Lender's licensee collect rent and other income and receipts as long as Grantor is not in default with respect to the Obligation or this Deed of Trust. Grantor will apply all rent and other income and receipts to payment of the Obligation and performance of this Deed of Trust, but if the rent and other income and receipts exceed the amount due with respect to the Obligation and the deed of trust, Grantor may retain the excess. If Grantor defaults in payment of the Obligation or performance of this Deed of Trust, Lender may terminate Grantor's license to collect rent and other income and then as Grantor's agent may rent the Property and collect all rent and other income and receipts. Lender neither has nor assumes any obligations as lessor or landlord with respect to any occupant of the Property. Lender may exercise Lender's rights and remedies under this paragraph without taking possession of the Property. Lender will apply all rent and other income and receipts collected under this paragraph first to expenses CHDO SINGLE FAMILY CONTRACT Polytechnic Single -Family Infill Project Development Corporation of Tarrant County — 3732 Avenue J Rev 5/23/2023 incurred in exercising Lender's rights and remedies and then to Grantor's obligations with respect to the Obligation and this Deed of Trust in the order determined by Lender. Lender is not required to act under this paragraph, and acting under this paragraph does not waive any of Lender's other rights or remedies. If Grantor becomes a voluntary or involuntary debtor in bankruptcy, Lender's filing a proof of claim in bankruptcy will be deemed equivalent to the appointment of a receiver under Texas law. 8. Interest on the debt secured by this Deed of Trust will not exceed the maximum amount of non -usurious interest that may be contracted for, taken, reserved, charged, or received under law. Any interest in excess of that maximum amount will be credited on the principal of the debt or, if that has been paid, refunded. On any acceleration or required or permitted prepayment, any excess interest will be canceled automatically as of the acceleration or prepayment or, if already paid, credited on the principal of the debt or, if the principal of the debt has been paid, refunded. This provision overrides any conflicting provisions in this and all other instruments concerning the debt. 9. In no event may this Deed of Trust secure payment of any debt that may not lawfully be secured by a lien on real estate or create a lien otherwise prohibited by law. 10. When the context requires, singular nouns and pronouns include the plural. 11. The term Note includes all extensions, modifications, and renewals of the Note and all amounts secured by this Deed of Trust. 12. This Deed of Trust binds, benefits, and may be enforced by the successors in interest of all parties. 13. If Grantor and Borrower are not the same person, the term Grantor includes Borrower. 14. Grantor and each surety, endorser, and guarantor of the Obligation waive all demand for payment, presentation for payment, notice of intention to accelerate maturity, notice of acceleration of maturity, protest, and notice of protest, to the extent permitted by law. 15. Grantor agrees to pay reasonable attorney's fees, trustee's fees, and court and other costs of enforcing Lender's rights under this Deed of Trust if this Deed of Trust is placed in the hands of an attorney. 16. If any provision of this Deed of Trust is determined to be invalid or unenforceable, the validity or enforceability of any other provision will not be affected. 17. The term Lender includes any mortgage servicer for Lender. 18. Grantor represents that this Deed of Trust and the Note are given for the following purposes: The debt evidenced by the Note is in payment of the development costs of the Required Improvements as described in the Contract; the debt is secured by this Deed of Trust. CHDO SINGLE FAMILY CONTRACT Polytechnic Single -Family Intill Project Development Corporation of Tarrant County — 3732 Avenue J Rev 5/23/2023 19. If the Property is transferred by foreclosure, the transferee will acquire title to all insurance policies on the Property including all paid but unearned premiums. 20. Lender may declare the debt secured by this Deed of Trust immediately payable and invoke any remedies provided in this Deed of Trust for default if Grantor transfers any of the Property to a person who is not a permitted transferee without Lender's prior written consent. "Permitted transferee" means any other person controlling, controlled by, or under common control with Grantor. Lender shall not exercise this option if federal law as of the date of this Deed of Trust prohibits such exercise. 21. THIS CONVEYANCE IS MADE AND ACCEPTED SUBJECT TO THE FOLLOWING CONDITIONS AND RESTRICTIONS: The Note is the Note required in City Secretary Contract No. 56986 between Grantor and Lender of even date and has been executed and delivered in accordance with that contract (the "Contract"). The funds provided by Lender are HOME funds and the Contract requires that the residential housing located on the Property and constructed with a portion of the HOME funds must qualify and remain affordable housing in accordance with the HOME Program and the HOME Regulations for a specified time period as more particularly described in the Contract (the "Affordability Period"). The loan evidenced by the Note and secured by this Deed of Trust will be in default and the Principal Amount and any other sums due thereunder may be declared immediately payable if the residential housing located on the Property is not sold to a HOME Eligible Buyer as more particularly described in the Contract and the HOME Regulations. This Deed of Trust has also been executed and delivered pursuant to the terms of the Contract. Grantor agrees to perform each and every obligation set forth therein and will not permit a default to occur thereunder. Any default in the performance of Grantor's obligations under the terms of the Contract or the HOME Program or HOME Regulations shall be deemed a default in the terms of the Note and Lender may declare the debt secured by this Deed of Trust immediately payable and invoke any remedies provided herein for default. 22. THE CONTRACT, NOTE, AND THE DEED OF TRUST CONSTITUTE THE FINAL AGREEMENT OF THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. [SIGNATURE PAGES IMMEDIATELY FOLLOW] CHDO SINGLE FAMILY CONTRACT Polytechnic Single -Family Infill Project Development Corporation of Tarrant County — 3732 Avenue J Rev 5/23/2023 DEVELOPMENT CO TION OF TARRANT COU(N�F'�j/f� -� Charles Price, Pr dent STATE OF TEXAS COUNTY OF TARRANT This instrument was acknowledged before me on 1 v\ 2-� , 2023 by Charles Price, the President of Development Corporation of Tarra14 County, a Texas non-profit corporation, on behalf of said corporation. NOTARY P IC, STATE OF TEXAS AFTER RECORDING RETURN TO: City of Fort Worth C/O Neighborhood Services Department 200 Texas St. Fort Worth, Tarrant County, TX 76102 CHDO SINGLE FAMILY CONTRACT Polytechnic Single -Family Infill Project Development Corporation of Tarrant County — 3732 Avenue J o�PRYP�eL MELISSA MUTCHLER r * Notary Public, State of Texas _ Comm. Expires 09-20-2025 OF Notary ID 12399185-0 OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX Rev 5/23/2023 EXHIBIT "A" Property Description 3732 Ave J, Fort Worth, TX 76105 also known as; Lot 1, Block 77, Polytechnic Heights Addition, an addition to the City of Fort Worth, Tarrant County, Texas, according to the plat thereof recorded In Volume 63, Page 109, Plat Record, Tarrant County, Texas. Commonly known as 3732 Avenue J, Fort Worth TX 76105 CHDO SINGLE FAMILY CONTRACT Polytechnic Single -Family Infill Project Development Corporation of Tarrant County — 3732 Avenue J Rev 5/23/2023 M&C Review Page I of 2 A CITY COUNCIL AGEND Create New From This M&C Official site of the City of Fort Worth, Texas FoRT WORTH REFERENCE **M&C 23- 19CHDO POLY INFILL DATE: 3/21/2023 NO.: 0224 LOG NAME: SPENDING AUTHORITY INCREASE CODE: G TYPE: CONSENT PUBLIC NO HEARING: SUBJECT: (CD 8 / Future CD 8) Authorize $133,077.00 Increase in Contract Authority with the Development Corporation of Tarrant County, a Certified Community Housing Development Organization, for the Development of Four Single -Family Homes in the Polytechnic Neighborhood, Resulting in a New Aggregate Total of $707,430.00 in Federal Funds RECOMMENDATION: It is recommended that the City Council authorize an increase of $133,077.00 in contract authority with the Development Corporation of Tarrant County, a Certified Community Housing Development Organization, for the development of four single-family homes in the Polytechnic neighborhood for a new, aggregate total of $707,430.00 of HOME Investment Partnerships Program grant funds. DISCUSSION: The purpose of this Mayor and Council Communication (M&C) is to increase the contract authorization for a Community Development Housing Organization (CHDO) building affordable single family housing in the Poly Neighborhood. On August 4, 2020, the City Council approved the City's 2020-2021 Action Plan for submission to the United States Housing and Urban Development Department (HUD), which included $574,353.00 in HOME Investment Partnerships Program (HOME) grant funds to Development Corporation of Tarrant County (DCTC) for the Polytechnic Neighborhood Single Family Infill Development project (M&C 20- 0497). HUD requires the City of Fort Worth (City) to set aside 15 percent of its allocation of HOME funds for CHDO activities. DCTC is an experienced single family affordable housing developer and certified by the City as a CHDO. On November 30, 2021, the City Council authorized the expenditure of $574,353.00 in HOME grant funds to DCTC and execution of contracts totalling that amount, in the form of four, subordinate forgivable loans for the development of four single family houses in the Polytechnic Neighborhood (M&C 21-0522). On August 9, 2022, the City Council approved the annual action plan, which included additional funding for this project (M&C 22-0569); approval of this M&C will increase the corresponding contract authority, as required by the City Code. DCTC will develop four, three -bedroom, two -bath, two -car garage single family houses in the Polytechnic neighborhood with each house consisting of approximately 1,700 square foot. The houses will be sold to individuals or families that earn 80 percent or less of the Area Median Income as determined by the U.S. Department of Housing and Urban Development (HUD). Buyers must meet all HOME requirements, including applying for and receiving at least $1,000.00 in down payment and/or closing cost assistance from the City's Homebuyer Assistance Program (HAP). DCTC requested an additional $133,077.00 to account for increased costs for supplies and labor. City staff has identified additional HOME funds to fund the requested amount and recommends that the City Council increases the City's contract authority with DCTC by the requested amount for a new total of $707,430.00 of HOME grant funds to ensure the project can be completed. The Polytechnic Neighborhood is located in COUNCIL DISTRICT 8 / Future COUNCIL DISTRICT 8 http://apps.cfwnet.org/council_packet/mc—review.asp?ID=3085 I&councildate=3/21/2023 4/3/2023 M&C Review Page 2 of 2 FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendation and adoption of the attached appropriation ordinance, funds will be available in the current operating budget, as appropriated, in the Grants Operating Fund. The Neighborhood Services Department (and Financial Management Services) will be responsible for the collection and deposit of funds due to the City. Prior to an expenditure being incurred, the Neighborhood Services Department has the responsibility to validate the availability of funds. This is a reimbursement grant. TO Fund I Department Account Project Program Activity Budget Reference # Amount ID ID Year (Chartfield 2) FROM Fund Department Account Project Program Activity Budget Reference # Amount ID ID Year (Chartfield 2) Submitted for Citv Manager's Office bv: Fernando Costa (6122) Oriainatina Department Head: Victor Turner (8187) Additional Information Contact: Justin McLaughlin (7369) ATTACHMENTS 2020.2021 Action Plan M&C 20.0497.gdf (Public) POLY INFILL M&C 21-0894.r)df (Public) Revised Executed 1295 Polv Proiect.Qdf (CFW Internal) http://apps.cfwnet.org/council_packet/mc—review.asp?ID=3085 I&councildate=3/21/2023 4/3/2023 FORT WORTH Routing and Transmittal Slip Neighborhood Services Department DOCUMENT TITLE: CHDO Poly Infill Proiect — Deed of Trusts M&C 23-0224 DATE: TO: 1. Ronald Gonzales 2. Jannette S. Goodall 3. Allison Tidwell Good Afternoon, CPN CSO # 56986 DOC# CSO # 56987 CSO # 56988 CSO # 56989 INITIALS DATE OUT K c� M a r 20, 2024 Mar 20, 2024 We are filing the Deeds pertaining to the below projects. 1400 Wallace Street — CSC — 57986 2528 Wallace Street — CSC — 57987 3507 Ave G — CSC — 56988 3732 Ave J — CSC - 56989 DOCUMENTS FOR CITY MANAGER'S SIGNTURE: All documents received from any and all City Departments requesting City Manager's signature for approval MUST BE ROUTED TO THE APPROPRIATE ACM for approval first. Once the ACM has signed the routing slip, David will review and take the next steps. NEEDS TO BE NOTARIZED: ❑ Yes X No RUSH: ❑ Yes ❑ No SAM E DAY: ❑ Yes ❑ No NEXT DAY: ❑ Yes ❑ No ROUTING TO CSO: X Yes ❑ No Action Required: ❑ As Requested ❑ For Your Information X Signature/Routing and or Recording ❑ Comment ❑ File ❑ Attach Signature, Initial and Notary Tabs Return to: Please call _Virginia Villalobos_at ext._7744_for pick up when completed. Thank you.