HomeMy WebLinkAboutContract 59730-A1First Amendment to CSC No. 59730
ARPA CONSTRUCTION CONTRACT |
Trinity Habitat for Humanity
Allen Village Page 1
FIRST AMENDMENT TO CITY SECRETARY CONTRACT NO. 59730
This first amendment (the “Amendment”) is made and entered into by and between the
City of Fort Worth (hereafter “City”), a Texas municipal corporation, and Trinity Habitat for
Humanity, a Texas nonprofit corporation (hereafter “Developer”). City and Developer may be
referred to individually as a “Party” and jointly as “the Parties”.
RECITALS
WHEREAS, the City entered into an agreement with Developer to utilize resources
received by City from the United States Department of the Treasury through the Coronavirus
State and Local Fiscal Recovery Funds Program, a part of the American Rescue Plan Act
(“ARPA”), more specifically described in the agreement, City Secretary Contract No. 59730 (the
“Agreement”);
WHEREAS, the Agreement contain a document labeled as Exhibit “A” that contemplates
a number of 36 units to be built;
WHEREAS, the Parties desire to amend the Agreement to change the number of units
from 36 to 35
NOW THEREFORE, City and Developer do hereby agree to the following:
I.
Amendment to the Agreement
NOW THEREFORE, for valuable consideration, the receipt and sufficiency of which are
hereby acknowledge, the Parties agree as follows:
A.Exhibit “A” Program Summary is hereby deleted and replaced in its entirety with
the one page attached hereto as Exhibit “A” Program Summary.
II.
Effective Date
This Amendment is effective as of April 1, 2025, regardless of the date of execution.
III.
Terms Not Amended Are Unchanged
All terms and conditions of the Agreement not amended herein remain unaffected and in
full force and effect, are binding on the Parties and are hereby ratified by the Parties. Capitalized
terms not defined herein shall have the meanings assigned to them in the Agreement.
First Amendment to CSC No. 59730
ARPA CONSTRUCTION CONTRACT |
Trinity Habitat for Humanity
Allen Village Page 2
ACCEPTED AND AGREED:
DEVELOPER:CITY OF FORT WORTH:
By: ________________________ By: _________________________________
Gage Yager; CEO/President Dana Burghdoff, Assistant City Manager
ATTEST:APPROVE AS TO FORM AND
LEGALITY:
By: ___________________________ By: ________________________________
Jannette Goodall, City Secretary Leslie L. Hunt,
M&C: 22-0545; June 28, 2022 Senior Assistant City Attorney
1295 Certification No. 2021-807172
Date: September 29, 2021
RECOMMENDED:
By:____________________________________
Kacey Bess, Neighborhood Services Director
CONTRACT COMPLIANCE ADMINISTRATOR:
By signing, I acknowledge that I am the person responsible for
the monitoring and administration of this , including
ensuring all performance and reporting requirements
_________________________________________
Joshua Hezlep, Neighborhood Development Coordinator
EXHIBIT “A”
PROGRAM SUMMARY
Trinity Habitat for Humanity
Allen Village Townhomes
Date of Execution by City to December 31, 2026 $1,500,000.00
PERIOD AMOUNT
Capitalized terms not defined herein shall have meanings assigned them in the Contract.
PROGRAM:
Trinity Habitat is committed to providing affordable homeownership options for the Fort Worth
workforce that live on wages at or below 80% of the area median income. Trinity Habitat will
purchase 14 lots near John Peter Smith hospital in City Council District 9. The purchase price is
$60,000.00 per lot, a total of $840,000.00. The anticipated yield for these lots is at minimum of 35
townhomes. The City’s investment in this project would indicate an ongoing commitment to a
broad range of affordable housing options in Fort Worth. The remaining funds, $659,969.05 will
be used for eligible construction costs.
All purchasers of the townhomes must be HOME Eligible Buyers. Developer must verify that a
prospective purchaser is a HOME Eligible Buyer. Any attempted sale of a house to a purchaser
who is not a HOME Eligible Buyer shall be an event of default and shall result in automatic
termination of this Contract. HOME Eligible Buyers must complete a homeownership training
and counseling program prior to closing their purchase of the house from Developer. This
requirement shall be evidenced by a completion certificate from a HUD-certified housing
counseling agency provided to City. Failure to provide a copy of such certificate to City shall be
an event of default.
All prospective purchasers of a townhome must apply and provide consistent employment and
verifiable income or if not employed verifiable income (i.e., paycheck stubs, retirement
disbursement statements, social security award letter, etc.) to demonstrate an income at or below
80% AMI at the time of application.
Clients must be income eligible households, and occupy the townhome as their principal residence.
For the purposes of this Program, all clients served shall have a household income at or below
80% of Area Median Income, as defined and published annually by the United States Department
of Housing and Urban Development.
CDBG ARPA funds will be used by Trinity Habitat to reimburse costs purchase 14 lots as well as
develop the lots purchased.
Agency is located at 9333 N. Normandale Street, Fort Worth, Texas 76116; with operating hours
of 8:30 a.m. through 5:30 p.m., Monday through Thursday and 8:30 a.m. through 4:00 p.m. on
Fridays.
Agency Program services will be delivered in the above listed neighborhoods at the homeowners'
residences during the hours of 7:00 a.m. and 6:00 p.m. Monday through Saturday.
Page
PROGRAM GOALS:
The program will purchase then develop fourteen single-family lots into at least 35 affordable
townhomes.
Page
City of Fort Worth,
Mayor and
Texas
Council Communication
DATE: 06/28/22 M&C FILE NUMBER: M&C 22-0545
LOG NAME: 19ARPA FUNDS AFFORDABLE HOUSING
SUBJECT
(CD 9) Authorize Execution of a Forgivable Subordinate Loan in the Amount of $1,500,000.00 using American Rescue Plan Act Funds, Subtitle M
(Coronavirus State and Local Fiscal Recovery Funds) to Fort Worth Area Habitat for Humanity, Inc., doing business as Trinity Habitat for Humanity,
for the Development of Twenty-Six Affordable, Single-Family Townhomes in the Vicinity of John Peter Smith Hospital, Authorize Execution of
Related Contract and Loan Documents, and Find that the Expenditure Serves a Public Purpose and that Adequate Controls are in Place (This use
of ARPA funding was previously discussed and approved by Mayor and Council)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize execution of a forgivable, subordinate loan in the amount of $1,500,000.00 in American Rescue Plan Act Funds, Subtitle M
(Coronavirus State and Local Fiscal Recovery Funds) to Fort Worth Area Habitat for Humanity, Inc., doing business as Trinity Habitat for
Humanity for the acquisition of land and construction costs associated with the development of 26 single-family townhomes in the Vicinity of
John Peter Smith Hospital;
2. Authorize the City Manager, or his designee, to execute contract and loan documents with Fort Worth Area Habitat for Humanity, Inc., doing
business as Trinity Habitat for Humanity;
3. Authorize the City Manager, or his designee, to amend the documents as necessary for completion of the project provided any amendment
is within the scope of the project and complies with City policies and all applicable laws and regulations governing the use of federal grant
funds; and
4. Find that the expenditures serves the public purpose of providing decent, safe, and affordable housing to moderate-to-low-income City
residents and that the contract and loan documents provide adequate controls to ensure the public purpose is fulfilled.
DISCUSSION:
In March 2021, President Biden signed the American Rescue Plan Act (ARPA), providing aid and relief to various sectors of the national
economy. The City of Fort Worth received a total allocation of ARPA funds of approximately $173 million, to be disbursed in two batches or
"tranches." The first tranche was received May 19, 2021, and the second tranche is expected to be received on or after May 19, 2022. On June
22, 2021, the City Council approved Mayor and Council Communication (M&C) 21-0445, establishing a general framework for the use of ARPA
funds. On October 19, 2021, the City Council approved M&C 21-0814, authorizing the allocation of $10,100,000.00 of funds to various entities;
including, the allocation to Fort Worth Area Habitat for Humanity Inc., doing business as Trinity Habitat for Humanity (Trinity Habitat). Trinity Habitat
was allocated $1,500,000.00 for the purchase, replat, design, and development of fourteen single-family lots in the vicinity of John Peter Smith
Hospital. Funding must be obligated by December 31, 2024 and fully expended by December 31, 2026.
Trinity Habitat for Humanity maintains affordability as its primary focus when constructing new homes. The median sales price of Trinity Habitat
homes closed through July of 2021 was $155,769.00. In 2017, Habitat spent $372,913.00 on the acquisition of 34 lots. By contrast, Trinity
Habitat projects a real estate budget of $2,600,000 for 2022. As anticipated, the price of real estate has a direct impact on the number of
affordable housing units that Trinity Habitat can build. As a result, Trinity Habitat is exploring developing their own neighborhoods, and building
townhomes as creative options for maximizing their resources.
Trinity Habitat is committed to providing affordable homeownership options for the Fort Worth workforce, that live on wages at or below 80% of the
area median income. Trinity Habitat will purchase 13 lots near John Peter Smith hospital in City Council District 9. The purchase price is
$65,000.00 per lot, for a total of $845,000.00. The anticipated yield for these lots is at minimum of 26 townhomes. The City's investment in this
project would indicate an ongoing commitment to a broad range of affordable housing options in Fort Worth. The remaining funds, $655,000.00,
will be used for eligible construction costs. It is currently anticipated that the City's construction loan will be the only financing necessary for the
project; however, approval of this M&C will allow for the City's loan to be subordinate in the event that additional funds are needed due to market
fluctuations in the price of materials and labor.
Staff recommends execution of a contract for a subordinate forgivable loan of ARPA funds in the amount of $1,500,000.00 Trinity Habitat,
purchase, replat, design, and development of fourteen single-family Lots based on the following terms and conditions.
ARPA Funds Contract and ARPA Funds Loan Terms:
1. Construction must begin within six months of date of Contract execution;
2. Loan term to commence on execution of the loan documents;
3. Contract term for ARPA funds contract and ARPA funds loan expires December 31, 2026;
4. First lien commercial construction loan terms must be acceptable to City;
5. ARPA funds loan will be subordinate only to first lien commercial construction loan;
6. Borrower's performance of the terms of the ARPA funds contract and ARPA funds loan will be secured by a deed of trust;
7. Payment of ARPA funds loan will only be required if Borrower fails to fulfill the ARPA funds requirements in the contract and the terms of the
ARPA funds loan;
8. Houses must be sold to HOME-eligible buyers who qualify for a HAP loan of at least $1,000.00; and,
9. Administrative costs will be accumulated as incurred by employees' work performed or expenditures related to the project.
The expenditure of ARPA funds is conditioned upon the following_
1. Satisfactory underwriting in accordance with federal guidance for use of ARPA funds and City policies for funding of ARPA units;
2. Receipt of authorization to use grant funds from HUD; and,
3. Closing on all other financing for the project.
By approval of this M&C, the City Council finds that the public purpose served by this project is to benefit low-to-moderate-income residents by
providing them with quality, affordable housing, and that the contract and loan documents are adequate controls to ensure the public purpose is
fulfilled This project will assist the City in meeting its ARPA Section 9901, Subsections 603(s)(1)(C) commitment to provide affordable housing and
funding to aid communities disproportionately impacted by the coronavirus pandemic.
TABLE 1: First Tranche of ARPA Funding
Funding ARPA Council
Agency Amount Funding Address District Funding Use
Category
Purchase of fourteen (14) detached platted
Fort lots for the development of 26 or more
Worth affordable townhomes south of John Peter
Area Non- Neighborhood
$1,500,000.00 Revenue surrounding g Smith Hospital and within NEZ Six (properties
Habitat Recovery JPS Hospital are 1701 St. Louis, 1720 Galveston, 1719
for Galveston, 1716 Galveston, 1715 Galveston,
Humanity 1709 Galveston, 1703 Galveston, 1724 S. Main,
1720 S. Main)
TOTAL $1,500,000.00
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that funds are available in the current operating budget, as previously appropriated, in the Grants Operating
Federal Fund American Rescue Plan Act project, to support the approval of the above recommendations and award of the contract. Prior to any
expenditure being incurred, the Neighborhood Services Department has the responsibility to validate the availability of funds.
Submitted for City Manager's Office b� Fernando Costa 6122
Originating Business Unit Head: Victor Turner 8187
Additional Information Contact: Justin McLaughlin 7369
Expedited
Routing and Transmittal Slip
Department
M&C: 22-0545
DOCUMENT TITLE:
CPN______________ CSO: DOC#______________
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 SAME DAY:Yes No NEXT DAY:XYes No
ROUTING TO CSO: X Yes No
Action Required:
d
our Information
X Signature/Routing and or Recording
TO:INITIALS DATE OUT
1.
2. Joshua Hezlep
3. Chad LaRoque
4. Kacey Bess
5. Leslie Hunt
6. Dana Burghdoff
7. Ronald Gonzales
8. Jannette Goodall
9. Allison Tidwell