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HomeMy WebLinkAboutContract 56160-A1FIRST AMENDMENT to CSC NO. 56160 Page 1 UDAG Loan Agreement Fort Worth Affordability, Inc. Rev. 05.21.2024 FIRST AMENDMENT TO CITY SECRETARY CONTRACT NO. 56160 This Amendment is entered into by and between the City of Fort Worth (hereafter "City"), a home rule municipality, with its principal place of business at 200 Texas Street, Fort Worth, Texas, and Fort Worth Affordability, Inc. (hereafter “FWAI ”), a Texas nonprofit corporation. City and FWAI shall be referred to individually as a Party and collectively as the Parties. WHEREAS, on September 13, 2021, the City and FWHS made and entered into City Secretary Contract No. 56160 (the “Contract”), as authorized by the City Council in M&C 21- 0499 adopted on June 22, 2021, which provided $360,000.00 of the City’s Urban Development Action Grant (“UDAG”) funds to FWAI; WHEREAS, the purpose of the Contract was to provide the UDAG funds for the constructions costs associated with right of way infrastructure improvements in support of the Cowan Place Affordable Housing Development (Project) located at 5400 East Rosedale Street to provide 174 units for seniors 55 and older, with 156 units set aside for households earning sixty percent or less of area median income (AMI) and at least five percent of the total units will be set aside as permanent supportive housing (PSH) units; WHEREAS, the original Completion Date was for August 31, 2023; WHEREAS,delays in the delivery of materials, onsite approvals and inspections by Oncor, and unforeseen onsite issues with construction interrupted the project timeline; WHEREAS, the Contract allows for an extension for up to two additional, one-year terms; WHEREAS, the effective date of this Amendment will be August 31, 2023 (“Effective Date”), to avoid having a gap in the Contract term; WHEREAS, it is the mutual desire of the City and Developer to amend the Contract to extend the term by one year and extend the completion deadline; and NOW, THEREFORE, the Parties, acting herein by the through their duly authorized representatives, do hereby agree to the following: I. AMENDMENTS A.Section 2. DEFINITIONS is amended to be and read as follows by deleting the original definition of Completion Deadline and substituting the following: Completion Deadline means August 31, 2024. FIRST AMENDMENT to CSC NO. 56160 Page 2 UDAG Loan Agreement Fort Worth Affordability, Inc. Rev. 05.21.2024 B. The address for FWHS in Section 15 NOTICE is amended to be and read as follows: City: City Attorney’s Office 100 Fort Worth Trail (100 Energy Way) Fort Worth, TX 76102 Attention: Leslie L. Hunt Telephone: (817) 392-6259 FWAI: Fort Worth Affordability, Inc. Attention: Mary-Margaret Lemons, Secretary and Treasurer 1407 Texas Street Fort Worth, TX 76102 Telephone: (817) 333-3401 C.EXHIBIT “C” –REIMBURSEMENT SCHEDULE attached to the Contract are hereby replaced with the attached EXHIBIT “C” REIMBURSEMENT SCHEDULE REVISED MAY 2024 attached hereto. II. This amendment is effective as of the Effective Date of the Contract. III. All other terms and conditions of the Contract not amended herein remain unaffected and in full force and effect, are binding upon the parties, and are hereby ratified by the parties. Capitalized terms not defined herein shall have the meanings assigned to them in the Contract. [SIGNATURES APPEAR ON NEXT PAGE.] ACCEPTED AND AGREED: FORT WORTH AFFORDABILITY, INC. Date: ---------- CITY OF FORT WORTH ��By:--------­Fernando Costa Assistant City Manager Date: Jul 11, 2024 ATTEST: �1� I By: _U ___________ _ Jannette S. Goodall, City Secretary M&C: 21-0498 Date: June 22, 2021 1295 Cert. No.2021-798916 Contract Compliance Manager: Approval Recommended by: By:k� Kasey Bess Interim Director of the Neighborhood Services Department Date: Jul 10, 2024 APPROVED AS TO FORM AND LEGALITY: Leslie L. Hunt, Senior Assistant City Attorney By signing, I acknowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all performance and reporting requirements. ' "'-, wName: Chad Laj!oque (Jul 9, 202417:16 CDT) Chad LaRoque Housing Development Manager Date: Jul9,2024---------- FIRST AMENDMENT to CSC NO. 56160 UDAG Loan Agreement Fort Worth Affordability, Inc. Page 3 Rev. 05.21.2024 FIRST AMENDMENT to CSC NO. 56160 Page 4 UDAG Loan Agreement Fort Worth Affordability, Inc. Rev. 05.21.2024 EXHIBIT “C” FORT WORTH AFFORDABILITY, INC. REIMBURSEMENT SCHEDULE – Revised 5/2024 Milestone Payment Amount At 25% Completion $100,000.00 At 50% Completion $100,000.00 At 75% Completion $110,000.00 Within 60 days of City’s issuance of a final “pass inspection” and acceptance of Exhibit “F” – Project Completion Report. $50,000.00 TOTAL LOAN AMOUNT $360,000.00 City of Fort Worth, Mayor and DATE: 06/22/21 Texas Council Communication M&C FILE NUMBER: M&C 21-0498 LOG NAME: 19COWAN PLACE - CDBG FUNDS SUBJECT (CD 5) Authorize Execution of a Subrecipient Agreement with the Housing Authority for the City of Fort Worth, Texas Doing Business as Fort Worth Housing Solutions in the Amount of $750,000.00 in Community Development Block Grant Funds for Construction Costs Associated with the Infrastructure Improvements in Support of the Cowan Place Affordable Housing Development Located at 5400 East Rosedale Street RECOMMENDATION: It is recommended that the City Council: 2. 3 Authorize the City Manager to execute a subrecipient contract with the Housing Authority for the Clty of Fort Worth, Texas Doing Business As Fort Worth Housing Solutions in the amount of $750,000.00 in Community Development Block Grant Funds for the construction costs associated with infrastructure improvements in support of the Cowan Place Affordable Housing Development located at 5400 East Rosedale Street; Authorize the City Manager, or his designee, to substitute funding years in order to meet United States Department of Housing and Urban Development commitment, disbursement and expenditure deadlines; and Authorize the City Manager, or his designee, to amend contract as necessary for completion of the project provided any amendment is within the scope of the program and complies with City policies and all applicable laws and regulations governing the use of federal grant funds. DISCUSSION: On October 22, 2019, City Council authorized the City to act as a co-applicant with Fort Worth Housing Solutions (FWHS) for a Choice Neighborhoods Implementation (CNI) grant from the U.S. Department of Housing and Urban Development (HUD), adopted a revised Cavile Place/Historic Stop Six Neighborhood Transformation Plan (Transformation Plan), and committed $39,375,654.00 over a six-year period for various improvements and activities in the Cavile Place and Historic Stop Six neighborhood, subject to receipt of the grant. In Spring 2020, the City was notified that the City and FWHS had been awarded the CNI grant. (Mayor and Council Communication (M&C) 19-0268). As co-applicant, the City agreed to support FWHS in implementing the Transformation Plan by providing resources to eligible activities, including a commitment of $3,250,000.00 in Community Development Block Grant (CDBG) funds to be awarded over the next six years. The purpose of this M&C is to move forward with awarding CDBG funds for the first year in the amount of $750,000.00 for eligible activities. The Cowan Place Project (Project) is part of Phase 1 of the Transformation Plan and will consist of a new multifamily, affordable apartment complex. The Project will have up to 174 units for seniors 55 and older, with 156 units set aside for households earning sixty percent or less of area median income (AMI) and at least five percent of the total units set aside as permanent supportive housing (PSH) units. Phase 1 will also include infrastructure improvements in support of the Project. These improvements include, but are not limited to, improvements within the public right of way such as street reconstruction, water and/or sewer improvements, curb and gutter, public sidewalks, and street lights. Staff recommends the execution of a subrecipient agreement with FWHS in the amount of $750,000.00 in CDBG funds, to be paid on a reimbursement basis, to fund the construction costs of the infrastructure improvements necessary for the completion of the Project. So long as FWHS completes all obligations and complies with all City and CDBG requirements, there will be no repayment of the CDBG funds. Contract term will commence on the date of execution and will expire upon the completion of the 5-year pertormance period. In addition to CDBG funding, the City also committed to providing additional funds from various federal grants in support of the Transformation plan, including the HOME Investment Partnerships Program and the Urban Development Action Grant. Authorization for use of the additional funds for the Project is being sought through a separate M&C. The Fort Worth Housing Finance Corporation (FWHFC) approved a resolution in support of the CNI grant and the Transformation Plan on October 22, 2019. The resolution set aside $1,250,000.00 of FWHFC funds for construction-to-permanent loans for affordable housing development financing and an additional $1,250,000.00 specifically for the development of Permanent Supportive Housing. (Resolution No. FWHFC-2019-06). A portion of these funds are anticipated to be used in support of the Project. The Project will assist the City in fulfilling its goals under the City's Comprehensive Plan, Choice Neighborhoods Implementation Grant, Transformation Plan and Consolidated Plan by providing quality, accessible, affordable housing for low- to moderate- income residents and supporting economic development and revitalization. A Form 1295 is not required because: This contract will be with a governmental entity, state agency or public institution of higher education: Fort Worth Housing Solutions FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendations, funds are available in the current operating budget as appropriated, in the Grants Operating Federal Fund. Neighborhood Services (and Financial Management Services) will be responsible for the collection and deposit of funds due to the City. Prior to an expenditure being incurred, Neighborhood Services has the responsibility to validate the availability of funds. This is a reimbursement grant. Submitted for City Manager's Office bk Fernando Costa 6122 Originating Business Unit Head: Victor Turner 8187 Additional Information Contact: Chad LaRoque 2661 Leticia Rodriguez 7319 Routing and Transmittal Slip Neighborhood Services Department DOCUMENT TITLE: Cowan Place – Fort Worth Affordability, Inc – UDAG Contract - FIRST AMENDMENT to CSC NO. 56160 M&C 21-0498 CPN CSO # 56160 DOC# _ DATE: 1. Chad LaRoque 2. Kacey Bess 3. Leslie L. Hunt 4. Fernando Costa 5. Jannette S. Goodall 6. Allison Tidwell DOCUMENTS FOR CITY MANAGER’S SIGNTURE:All documents received from any and all CityDepartments 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 reviewand take the next steps. NEEDSTO BE NOTARIZED:Yes X No RUSH:Yes No SAME DAY :Yes No NEXT DAY :Yes No ROUTINGTO CSO:x Yes No Action Required: As Requested Attach Signature, Initial and NotaryTabs For Your Information X Signature/Routing and Recording Comment File