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HomeMy WebLinkAboutContract 63276-HC1STATE OF TEXAS § § CSC No. 63276-HC1 COUNTY OF TARRANT § This contract ("Contract") is made and entered into by and between the City ofFort Worth (hereafter "City") and Columbia Renaissance Square III, L.P (hereafter "Partnership"), a Texas limited partnership. City and Developer may be referred to individually as a "Party" and j ointly as "the Parties". The Parties state as follows: WHEREAS, City has received a grant from the United States Department of Housing and Urban Development through the HOME Investment Partnerships Program, Catalog of Federal Domestic Assistance No. 14.239, with which City desires to promote activities that expand the supply of affordable housing and the development ofpartnerships among City, local governments, local lenders, private industry and neighborhood -based nonprofit housing organizations; WHEREAS, the primary purpose of the HOME program pursuant to the HOME Investment Partnerships Act at Title II of the Cranston Gonzales National Affordable Housing Act of 1990, as amended, 42 U.S.C. 12701 et seq. and the HOME Investment Partnerships Program Final Rule, as amended, 24 CFR Part 92 et seq., is to benefit low and moderate income individuals and families by providing them with affordable housing; WHEREAS, Partnership is a Texas limited partnership conslsting of Columbia Renaissance Square III Partners, LLC, a Georgia limited liability company as the general partner and an affiliate of the National Equity Fund as the investor limited partner; WHEREAS, Partnership proposes to use HOME funds for an eligible project under the HOME Regulations whereby Partnership will construct, develop, own, and operate a new 100-unit mixed income multifamily rental complex in the City; WHEREAS, Partnership has received an award of 2025 non-competitive (4%) Housing Tax Credits from the Texas Department of Housing and Community Affairs for a portion of the costs of the development of the project to be commonly known as the Columbia Renaissance Square III; WHEREAS, City citizens and the City Council have determined that the development of quality, accessible, affordable housing is needed for moderate, low, and very low-income City citizens (M&C 24-1025). NOW, THEREFORE, in consideration of the mutual covenants and obligations and responsibilities contained herein, including all Exhibits and Attachments, and subject to the terms and conditions hereinafter stated, the Parties understand and agree as follows: 1. INCORPORATION OF RECITALS. HOME CONTRACT OFFICIAL RECORD Rev. July 2025 Columbia Renaissance Square III, LP CITY SECRETARY Page 1 Fr. WORTH, TX City and Partnership hereby agree that the recitals set forth above are true and correct and form the basis upon which the Parties have entered into this Contract. 2. DEFINITIONS. In addition to terms defined in the body of this Contract, the following terms shall have the definitions ascribed to them as follows: Accessible Units means units accessible to handicapped tenants. Partnership must comply with Section 504 requirements and all other applicable Federal accessibility requirements. The Required Improvements must contain 7 Accessible Units. Of these 7 units, 5 must be accessible to individuals with mobility impairments, and the other 2 must be accessible to individuals with visual or hearing impairments. Act means the HOME Investment Partnerships Act at Title II of the Cranston Gonzales National Affordable Housing Act of 1990, as amended, 42 U.S.C. 12701 et seq. Affordable Rent means a rent amount that does not exceed the High HOME Rent Limit published annually by HUD, with adjustment for the bedroom size of the housing unit as more particularly described on Exhibit "A" — Project Summary. Affordability Period means the period of time that HOME Units must be leased to HOME Eligible Households for Affordable Rent. The Affordability Period for this project is 20 years. The Affordability Period begins on the date that the project status is changed to "complete" in IDIS. Affordability Requirements means the HOME Units remain occupied by HOME Eligible Households paying Affordable Rent throughout the Affordability Period in accordance with the terms of this Contract and the HOME Regulations. Area Median Income or AMI means the median family income for the Fort Worth -Arlington metropolitan statistical area as set annually by HUD. Business Diversity Enterprise Ordinance or BDE means the City's Business Diversity Ordinance, Ordinance No. 25165-10-2021. Complete Documentation means the following documentation as applicable: 1. Attachments I and II, with supporting documentation as follows: a. Proof of expense: invoices, leases, service contracts, architect's certification, or other documentation showing the nature of the cost and that payment is due by Partnership. HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 2 b. Proof of payment: cancelled checks, bank statements, architect's certification, or wire transfers necessary to demonstrate that amounts due by Partnership were actually paid by Partnership. 2. Other documentation: (i) final lien releases signed by the general contractor or subcontractors, if applicable; (ii) copies of all City permits and City -issued "pass" inspections for such work; (iii) documentation to show compliance with BDE or DBE bidding process for procurement or Contract activities, if applicable; (iv) proof of contractor, subcontractor and vendor eligibility as described in Section 6.6; and (v) any other documents or records reasonably necessary to verify costs spent for the project. 3. Complete Documentation shall meet the standards described in Exhibit "J" — Standards for Complete Documentation. Completion means the substantial completion of the Required Improvements as evidenced by a Neighborhood Services Department Minimal Acceptable Standard Inspection report, HUD Compliance Inspection Report and any other applicable final inspection approval from the City showing that the Required Improvements have met City and HOME standards. Completion Deadline means September 30, 2027 or eighteen months after closing whichever is later. DBE means disadvantaged business enterprise in accordance with 49 CFR Part 26. Deed of Trust means any deed of trust from Partnership in favor of City covering the Property and securing the indebtedness evidenced therein and Partnership's performance of the requirements of this Contract and the of the HOME Regulations, as the same may be extended, amended, restated, supplemented or otherwise modified. The form of the Deed of Trust is attached as Exhibit "E" — Loan Documents. Director means the Director of the City's Neighborhood Services Department. Effective Date means the date of the last of the Parties to sign as indicated on the signature page. HOME means the HOME Investment Partnerships Program. HOME Eligible Household means a household whose annual income adjusted for family size does not exceed 80% of AMI using the most current HUD Income Guidelines and Technical Guidance for Determining Income and Allowances. The definition of annual income to determine tenant income eligibility shall be the definition at 24 CFR Part 5.609, as amended from time to time. HOME Funds means the HOME Program grant funds supplied by City to Partnership under the terms of this Contract. HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 3 HOME Regulations means the HOME Investment Partnerships Program Final Rule at 24 CFR Part 92 et seq. HOME Unit means a housing unit subject to the HOME Regulations leased to a HOME Eligible Household at Affordable Rent for the duration of the Affordability Period as further described in Exhibit "A" — Project Summary. The HOME Units can be designated as either High and/or Low HOME units. The HOME Units are floating. This project contains 10 Home Units. Of these HOME Units, 3 are one -bedroom units, 4 are two -bedroom units, and 3 is a three -bedroom unit. High HOME Unit means a unit that must be leased to High HOME Eligible Tenant for High HOME Rent. High HOME Units can float among units that are materially similar in number of bedrooms, square footage, and amenities; however, if the units are not materially similar, then the High HOME units must be fixed. This project contains 7 High HOME Units. Of these High HOME Units, 2 are one - bedroom units, 3 are two -bedroom units, and 2 is a three -bedroom unit. High HOME Eligible Tenant means (i) for a tenant who is the first to occupy a High HOME Unit, a tenant whose annual income adjusted for family size does not exceed 65% of AMI, and (ii) for a tenant who is not the first to occupy a High HOME Unit, a tenant whose annual income adjusted for family size does not exceed 80% of AML Tenant income must be verified using the most current HUD Income Guidelines and Technical Guidance for Determining Income and Allowances subject to the income verification requirements of Section 7.2. High HOME Rent means a rent amount that is the lesser of (i) the HUD -established Fair Market Rent for existing comparable housing units in the area, or (ii) 30% of the adjusted income of a family whose annual income equals 65% of AMI with adjustment for the bedroom size of the housing unit. High Home Rent may not exceed the maximum rent limitations set by HUD minus utility allowances. For the purposes of this Contract, "utility allowances" are those monthly allowances for utilities (excluding telephone) published annually by the Fort Worth Housing Solutions. Housing Tax Credits means the federal housing tax credits allocated by the Texas Department of Housing and Community Affairs under Section 42(h) of the Internal Revenue Code of 1986, as amended. HUD means the United States Department of Housing and Urban Development. IDIS means Integrated Disbursement Information System, HUD's project tracking system. Investor means the entity purchasing the housing tax credits, and any successors and assigns. Land Use Restriction Agreement means the document that limits the Property to a 20-year Affordability Period following the HOME Regulations the form of which is attached hereto as Exhibit "L". HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 4 Loan means the HOME Funds provided to Partnership by City under the terms of this Contract as more particularly described in the Loan Documents. Loan Documents means security instruments which Partnership or any other party has executed and delivered to City including without limitation, the City's Promissory Note, Land Use Restriction Agreement, Deed of Trust, or any other similar security instruments evidencing, securing or guaranteeing City's interest in the Required Improvements constructed under this Contract and further evidencing, securing, or guaranteeing Partnership's performance of the Affordability Requirements during the Affordability Period, as the same may from time to time be extended, amended, restated, supplemented or otherwise modified. Low HOME Eligible Tenant means a tenant whose annual income adjusted for family size does not exceed 50% of AMI set by HUD. Tenant income must be verified using the most current HUD Income Guidelines and Technical Guidance for Determining Income and Allowances subject to Section 7.2 of this Contract. Low HOME Rent means a rent amount that is no more than 30% of the annual income of a family at 50% of AMI adjusted for family size. Low Home Rent may not exceed the maximum rent limitations established by HUD minus utility allowances. For the purposes of this Contract, "utility allowances" are those monthly allowances for utilities (excluding telephone) published annually. Low HOME Unit means a unit that must be leased to Low HOME Eligible Tenant for Low HOME Rent. Low HOME Units can float among units that are materially similar in number of bedrooms, square footage, and amenities; however, if the units are not materially similar, then the Low HOME units must be fixed. If there are more than 5 HOME Units, then 20% of the total HOME units must be designated as Low. This project contains 3 Low HOME Units. Of these Low HOME Units, 1 is a one -bedroom unit, 1 is two -bedroom unit, and 1 is a three -bedroom unit. Neighborhood Services Department means the City's Neighborhood Services Department. Plans means the plans and specifications related to the Required Improvements prepared by the Partnership's architect which have been delivered to and then reviewed and approved by City on or before the Effective Date, and any and all amendments thereto approved by City. Promissory Note means any note in the amount of the HOME Funds executed by Partnership payable to the order of City, as the same may be extended, amended, restated, supplemented or otherwise modified. The form of the Promissory Note is attached as Exhibit "E" — Loan Documents. Property means the land on which the Required Improvements shall be constructed as more particularly described in and encumbered by the Deed of Trust. HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 5 Required Improvements or the project means all the improvements for a 100-unit mixed income affordable multifamily rental housing project to be constructed on the Property, together with all fixtures, tenant improvements and appurtenances now or later to be located on the Property and/or in such improvements. The Required Improvements are commonly known as the Columbia Renaissance Square III. The current street address of the project 2757 Moresby Drive, Fort Worth, TX 76119. Reimbursement Request means all reports and other documentation described in Section 10. Section 504 requirements means the requirements of Section 504 of the Rehabilitation Act of 1973 to provide accessible housing to persons with disabilities. Section 504 requires that 5% of the units (but not less than 1 unit) in a newly constructed multifamily project must be accessible to individuals with mobility impairments, and an additional 2% of the units (but not less than 1 unit) must be accessible to individuals with sensory impairments. Stabilization means the earlier of (i) the date the project's senior loan converts to its permanent phase and begins principal amortization, or (ii) June 30, 2027. Subordination Agreement means the Subordination and Intercreditor Agreement among Partnership's construction and permanent financing lender, Partnership and City outlining the relative priorities of the construction and permanent loan and the City's Loan for the project. TDHCA means the Texas Department of Housing and Community Affairs. Tenant Documentation means any documentation allowed under the definition of annual income in 24 CFR Part 5.609 sufficient to show that a tenant is a HOME Eligible Household. Documentation may include but is not limited to copies of paychecks, Social Security and disability verification letters, interest or rental income statements, retirement income statements, child support and alimony verification, unemployment benefit letters, and the like for initial tenant income eligibility verifications, and the tenant income verification required every 6tn year of the Affordability Period. Documentation for tenant income eligibility verifications for other than the initial lease and the 6th year of the Affordability Period shall be a City -approved income self - certification form. 3. TERM AND EXTENSION. 3.1 Term of Contract. The term of this Contract commences on the Effective Date and terminates in 3 years unless earlier terminated as provided in this Contract. 3.2 Extension of Contract. This Contract may be extended for 2 one-year extensions upon Partnership submitting a request for an extension in writing at least 60 days prior to the end of the Contract term. The request for extension shall include the reasons for the extension, and Partnership's anticipated budget, construction schedule and goals for the extended term. It is specifically understood that it HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 6 is within City's sole discretion whether to approve or deny Partnership's request for an additional term. Any such extension shall be in the form of an amendment to this Contract. 3.3 Term of Loan. The term of the Loan shall commence on the date of the Promissory Note and terminates (i) for the payment of $2,523,547.40 of the HOME funds, 40 years after Stabilization and (ii) for Partnership's performance of the Affordability Requirements, the termination of the Affordability Period, so long as the terms and conditions of this Contract and the Loan Documents have been met. 4. DUTIES AND RESPONSIBILITIES OF CITY. 4.1 Provide HOME Funds. City shall provide up to $2,253,547.00 of HOME Funds in the form of the Loan for part of the cost of acquisition of the Property and construction of the Required Improvements, under the terms and conditions of this Contract and the Loan Documents. 4.2 City Will Monitor. City will monitor the activities and performance of Partnership and any of its contractors, subcontractors or vendors throughout the Affordability Period, but no less than annually as required by 24 CFR Part 92.504. 5. DUTIES AND RESPONSIBILITIES OF PARTNERSHIP. 5.1 Construction of Required Improvements. Partnership shall complete the construction of the Required Improvements as described in Exhibit "A" — Project Summary in accordance with the Plans, the schedule set forth in Exhibit "C" - Construction and Reimbursement Schedule, and the terms and conditions of this Contract. 5.1.1 Written Cost Estimates, Construction Contracts and Construction Documents. Partnership shall submit any construction contracts and construction documents to City to show the work to be undertaken for the Required Improvements in sufficient detail that City can perform all required inspections in accordance with 24 CFR Part 92.251 (a)(2)(iv). City shall review written cost estimates for the construction of the Required Improvements to determine that such costs are reasonable. In the event City in its reasonable discretion determines that such costs are unreasonable, Partnership shall revise said costs estimates to City's satisfaction. 5.2 Use of HOME Funds. 5.2.1 Costs in Compliance with HOME Regulations and Contract. Partnership shall be reimbursed for eligible project costs with HOME Funds only if City determines in its sole discretion that: HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 7 5.2.1.1 Costs are eligible expenditures in accordance with the HOME Regulations. 5.2.1.2 Costs are in compliance with this Contract and are reasonable and consistent with industry norms. 5.2.1.3 Complete Documentation, as applicable, is submitted by Partnership. 5.2.2 Budget. Partnership agrees that the HOME Funds will be paid on a reimbursement basis in accordance with Exhibit "B" - Budget and Exhibit "C" - Construction and Reimbursement Schedule. Partnership may increase or decrease line item amounts in the HOME Funds Budget with the Director's prior written approval, which approval shall be in the Director's sole discretion. Any such increase or decrease in line items in the Budget shall comply with Section 5.2.1,Exhibit "A — Project Summary, and shall not increase the total amount of HOME Funds. 5.2.3 Change in Budget. 5.2.3.1 Partnership will notify City promptly of any additional funds it receives for construction of the project, and City reserves the right to amend this Contract in such instances to ensure compliance with HUD regulations governing cost allocation. 5.2.3.2 Partnership agrees to utilize the HOME Funds to supplement rather than supplant funds otherwise available for the project. 5.3 Pavment of HOME Funds to Partnership. HOME Funds will be disbursed to Partnership upon City's approval of Partnership's Reimbursement Requests. As more particularly described in the HOME Funds Budget, City will hold back $252,355.00 of the HOME Funds until City verifies that the first HOME Unit has been leased to a HOME Eligible Household. It is expressly agreed by the Parties that any HOME Funds not reimbursed to Partnership shall remain with City. 5.4 Identifv Proiect Expenses Paid with HOME Funds. Partnership will keep accounts and records in such a manner that City may readily identify and account for project expenses reimbursed with HOME Funds. These records shall be made available to City for audit purposes and shall be retained as required hereunder. 5.6. Security for City's Interest and Partnership's Performance. To secure City's interest in the Required Improvements and the performance of Partnership's obligations hereunder, Partnership shall execute the Loan Documents and record the Deed of Trust encumbering the Property at the earlier of (i) the acquisition of the Property, or (ii) the closing of Partnership's construction loan. No HOME Funds will be paid or reimbursed until the Deed of Trust is recorded. The City's interest in preserving the affordability of the HOME Units will be additionally secured by the Declaration of Land Use Restrictive Covenants HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 8 ("LURA") established and enforced by TDHCA for the Housing Tax Credits. The TDHCA's LURA shall restrict the project and Property to certain occupancy and rent requirements for a period of 40 years. 5.6.1 Loan Terms and Conditions. Partnership will be required to: 5.6.1.1 Execute and deliver Loan Documents required by City. 5.6.1.2 Provide City with a Mortgagee's Policy of title insurance in the amount of the Loan. 5.6.1.3 Pay all costs associated with closing the Loan. 5.6.1.4 Provide City with an estimated settlement statement from the title company at least 3 business days before closing. 5.6.1.5 Ensure City's lien is subordinate only to the senior indebtedness described in the Subordination Agreement. City must approve in writing any secured financing for the project that is to be subordinate to the Loan. 5.6.1.6 The term of the Loan shall be as specified in Section 3.3. 5.6.1.7 Interest on the Loan shall accrue at the lesser of the Long Term Applicable Federal Rate in effect on the date of the Promissory Note, or 1 % per annum. Payment of principal and interest on the Loan, shall be based on a 40 year amortization schedule. [Interest shall accrue beginning at Stabilization. Principal and interest shall be due and payable in equal annual installments beginning on the 5tn day of the first month starting twelve (12) months after the Certificate of Occupancy and annually thereafter through year 40. Any payments will be applied first to accrued interest and the remainder to reduction of the principal amount. Provided however, principal and interest are only payable from Net Cash Flow as defined in Partnership's Amended and Restated Limited Partnership Agreement, as may be amended from time to time (the "Partnership Agreement"). Principal and interest to the extent not paid from Net Cash Flow shall be deferred and shall be paid out of Partnership's Net Cash Flow in subsequent years. All unpaid principal and accrued and unpaid interest remaining outstanding shall be paid on or before the Final Payment Date in the Promissory Note. 5.6.1.8 INTENTIONALLY DELETED 5.6.1.9 Early repayment of the Loan shall not relieve Partnership of its obligations under this Contract or the HOME Regulations including but HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 9 not limited to the Affordability Requirements and other HOME requirements. The Deed of Trust shall secure both repayment of the HOME Funds and performance by Partnership of its obligations under this Contract during the Affordability Period. 5.6.1.10 Except for permanent loan conversion with Partnership's permanent lender, refinancing by Partnership, or any subordinate financing other than that approved herein or otherwise by City, shall require the review and prior written approval of City for the purpose of ensuring compliance with the underwriting and subsidy layering requirements of the HOME Regulations, which approval shall not be unreasonably withheld, conditioned or delayed. 5.6.1.11 Default under the FWHFC Loan shall be considered a default of the Loan and a default of the Loan shall be considered a default of the FWHFC Loan. 5.6.1.12 Failure by Partnership to comply with this Section 5.6.1 will be an event of default under this Contract and the Loan Documents. 5.7 Maintain Affordability Requirements. Partnership shall ensure that the HOME Units shall be occupied by HOME Eligible Households throughout the Affordability Period as required by the HOME Regulations. Partnership must notify the City in writing within 30 days of either of the following occurrences: (i) a HOME Unit is occupied by a tenant who is not a HOME Eligible Household, or (ii) a HOME Unit remains vacant for more than 90 days. In the event that a HOME Unit is occupied by a tenant who is not a HOME Eligible Household, Partnership shall have 30 days to determine if a market rate tenant qualifies as a HOME Eligible Household or fill an empty market rate unit with a HOME Eligible Household. If either (i) or (ii) takes place and is not cured within the time limits described in this Section, then Partnership shall pay to City 10% of the Loan amount as liquidated damages. The Parties agree that City's actual damages in the event of either (i) or (ii) happening and remaining uncured are uncertain and would be difficult to ascertain and may include a finding by HUD, a repayment of funds to HUD by City or otherwise impact the City's HOME grant or other federal grant funds. Therefore, the Parties agree that payment under this Section of 10% of the Loan amount by Partnership to City is liquidated damages and not a penalty. 5.8 Affordability Requirements Survive Transfer. The HOME Units must remain affordable without regard to the term of any mortgage or transfer of ownership, pursuant to the terms of the Loan Documents, any deed restrictions or other mechanism provided by HUD. Any sale or transfer of the project during the Affordability Period, excluding a transfer due to condemnation or to obtain utility services, may at City's sole discretion require the repayment of the HOME Funds unless the new owner or transferee affirmatively assumes in writing the obligations established hereunder for the HOME Units for whatever time remains of the Affordability Period. Failure of the new owner or transferee to promptly assume all of Partnership's obligations under this Contract and the Loan Documents will result in HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 10 immediate termination of this Contract and any HOME Funds already paid to Partnership must be repaid to City within 30 days of such termination. In addition, City may pursue any of its remedies under the Loan documents if the new owner or transferee fails to assume Partnership's obligations to maintain the Affordability Requirements throughout the Affordability Period. 6. CONSTRUCTION. 6.1. Construction Schedule. Partnership will construct the Required Improvements in accordance with the schedule set forth in the attached Exhibit "C" — Construction and Reimbursement Schedule. Partnership shall not begin construction until City sends a Notice to Proceed. Partnership's failure to meet the Construction Schedule or the Completion Deadline shall be an event of default. Subject to Section 14.19, Partnership may not change the Construction Schedule without the Director's prior written approval, which approval shall be in the Director's reasonable discretion. 6.1.1 Written Cost Estimates, Construction Contracts and Construction Documents. Partnership shall furnish City with the written cost estimates, construction contracts and construction documents (collectively, the "Construction Documents") all of which shall describe the construction of the Required Improvements in sufficient detail so that City can perform inspections. City shall review and approve written cost estimates and determine that costs are reasonable prior to the commencement of construction. 6.1.2 Construction Inspections. City will conduct progress and final inspections of construction of the project to ensure that the work is done in accordance with the applicable building codes and the Construction Documents. The construction of the project must pass a Neighborhood Services Department Minimal Acceptable Standard Inspection report, a HUD Compliance Inspection Report and any other applicable HUD -required inspections during the construction period, along with any applicable final inspection approval from the City building inspectors at the completion of the construction of the project. 6.2 Applicable Laws, Building Codes and Ordinances. The Plans and construction for the Required Improvements shall (i) conform to all applicable Federal, state, City and other local laws, ordinances, codes, rules and regulations, including the HOME Regulations; (ii) meet all City building codes; (iii) meet the Energy Conservation requirements as required by the State of Texas in Chapter 11 of the International Residential Code; (iv) if new construction, must conform to the Model Energy Code published by the Council of American Building Officials; and (v) must pass a HUD Compliance Inspection Report and inspection by City's Neighborhood Services Department inspectors. 6.3 Property Standards During Construction. Partnership shall comply with the following as applicable during the construction of the Required Improvements: (i) the Property Standards in 24 CFR Part 92.251(a), (ii) accessibility standards under 24 CFR Part 92.25 1 (a)(2)(i), (iii) any City property standards, and (iv) all other applicable accessibility standards for the project. HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 11 6.4 Lead -Based Paint Requirements. Partnership will comply with any applicable Federal lead -based paint requirements including lead screening in buildings built prior to 1978 in accordance with 24 CFR Part 92.355 and 24 CFR Part 35, subparts A, B, J, K, M, and R, and the Lead: Renovation, Repair and Painting Program Final Rule, 40 CFR Part 745, in the construction and/or rehabilitation of the Required Improvements. 6.5 Approval of Plans and Specifications by City Not Release of Responsibility. Approval of the Plans by City shall not constitute or be deemed (i) to be a release of the responsibility or liability of Partnership or any of its contractors or subcontractors, or their respective officers, agents, employees and lower tier subcontractors, for the accuracy or the competency of the Plans or the Construction Documents, including, but not limited to, any related investigations, surveys, designs, working drawings and specifications or other documents; or (ii) an assumption of any responsibility or liability by City for any negligent act, error or omission in the conduct or preparation of any investigation, surveys, designs, working drawings and specifications or other documents by Partnership or any of its architects, contractors or subcontractors, and their respective officers, agents, employees and lower tier subcontractors. 6.6 Contractor, Subcontractor and Vendor Requirements. Partnership will use commercially reasonable efforts to ensure that all contractors or vendors utilized by Partnership or subcontractors utilized by Partnership's general contractor are appropriately licensed and such licenses are maintained throughout the construction of the Required Improvements and the operation of the project when applicable. Partnership shall ensure that all contractors utilized by Partnership, subcontractors utilized by Partnership's general contractor in the construction of the Required Improvements, or vendors utilized by Partnership in the operation of the project are not debarred or suspended from performing the contractor's, subcontractor's or vendor's work by the City, the State of Texas, or the Federal government. For purposes of this Contract, the term "vendors" does not include suppliers or materialmen. Partnership acknowledges that 2 CFR Part 200 forbids Partnership from hiring or continuing to employ any contractor, subcontractor or vendor that is listed on the Federal System for Award Management, www.sam.tiov ("SAM"). Partnership must confirm by search of SAM that all contractors, subcontractors or vendors are not listed by SAM as being debarred, both prior to hiring and prior to submitting a Reimbursement Request which includes invoices from any such contractor, subcontractor, or vendor. Failure to submit such proofs of search shall be an event of default. In the event that City determines that any contractor, subcontractor or vendor has been debarred, suspended, or is not properly licensed, Partnership or Partnership's general contractor shall immediately cause such contractor, subcontractor or vendor to immediately stop work on the project and Partnership shall not be reimbursed for any work performed by such contractor, subcontractor or vendor. However, this Section should not be construed to be an assumption of any responsibility or liability by City for the determination of the legitimacy, quality, ability, or good standing of any contractor, subcontractor or vendor. Partnership acknowledges that the provisions of this Section pertaining to the SAM shall survive the termination of this Contract and be applicable for the length of the Affordability Period. HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 12 6.7. Furnish Complete Set of "As Built" Plans. Partnership shall furnish City a complete set of "as built" or marked -up plans for the project at completion of construction after all final approvals have been obtained. 7. TENANT AND LEASE REOUIRMENTS; PROPERTY STANDARDS DURING AFFORDABILITY PERIOD. 7.1 Income Eligibility. Partnership must use the definition of annual income used by 24 CFR 5.609 to establish tenant income eligibility. Partnership shall use the most current HUD Income Guidelines. Partnership shall maintain Tenant Documentation sufficient to show that the HOME Units are occupied by HOME Eligible Households. This Section shall survive the earlier termination or expiration of this Contract and be applicable for the length of the Affordability Period. 7.2 Income Verification. 7.2.1 Partnership must verify that all tenants of HOME Units are HOME Eligible Households with full Tenant Documentation at the time the initial lease for a HOME Unit is executed. Tenants must certify the number of people in tenant's household along with such person's names and ages. Partnership shall obtain financial information on all members of a tenant's household. 7.2.2 Partnership must verify the income of the tenants of the HOME Units annually after the initial lease is executed, but may use a City -approved tenant self -certification form as Tenant Documentation. Notwithstanding the foregoing, Partnership must verify the income eligibility of all HOME Eligible Households with full Tenant Documentation every 6th year of the Affordability Period. 7.2.3 Partnership must maintain copies of Tenant Documentation as required under this Contract. 7.2.4 City will review Tenant Documentation during the Affordability Period as part of its monitoring. 7.3 Tenant Lease. 7.3.1 Partnership shall submit to City the form of its tenant lease prior to leasing any HOME Unit. Such lease shall comply with the provisions of 24 CFR Part 92.253 regarding the following issues: 7.3.1.1 Length of lease term shall not exceed 2 years and may not be shorter than 1 year for the initial lease term. If the lease is renewed, tenant and landlord may agree to a longer or shorter term as long as the term does not violate any regulations set out by TDHCA. HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 13 7.3.1.2 Lease may not include agreement by tenant to allow landlord to take, hold or sell tenant's personal property without notice and a court decision on the rights of the parties. 7.3.1.3 Lease may not include agreement by the tenant to excuse owner or owner's agents from responsibility for any action or failure to act, whether intentional or negligent acts. 7.3.1.4 Lease may not authorize landlord to institute a lawsuit without notice to the tenant. 7.3.1.5 Lease may not include agreement by tenant to waive a jury trial or right of appeal. 7.3.1.6 Lease may not include an agreement by tenant to pay legal costs of court proceeding even if the tenant prevails in those proceedings regardless of outcome. 7.3.1.7 Lease may not include an agreement by the tenant to be sued, to admit guilt or to a judgment in favor of the owner in a lawsuit brought in connection with the lease. 7.3.1.8 Lease may not include an agreement by the tenant that the owner may evict the tenant or household members without instituting civil court proceedings in which the tenant has the opportunity to present a defense, or before a court decision on the rights of the parties. 7.3.1.9 Lease may not include an agreement by the tenant to waive the tenant's right to appeal or otherwise challenge in court a court decision in connection with the lease. 7.3.1.10 Lease may not include an agreement by the tenant to accept supportive services that are offered. 7.3.2 Termination of Tenanev of HOME Units. Partnership may not terminate the tenancy of a HOME Eligible Household in a HOME Unit except for serious or repeated violation of the terms and conditions of the lease; for violation of applicable federal, state or local laws; or for other good cause. Good cause does not include an increase in the income of the HOME Eligible Household. To terminate or refuse to renew the tenancy, Partnership must serve written notice upon the tenant specifying the grounds for the action at least 30 days before the termination of tenancy. 7.3.3 Revised Lease Forms. Partnership shall provide City copies of revised lease forms within 30 days of any change to its lease form. All changes to Partnership's lease form shall comply with the requirement of Section 7.3.1. HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 14 7.4 Tenant Household Characteristics. 7.4.1 Partnership shall provide City with the information about the household characteristics of the first tenant renting a HOME Unit on Exhibit "G" — Project Compliance Report: Rental Housing. 7.4.2 At City's request, Partnership shall provide demographic information on all tenants in the project in order to show compliance with Section 7.7 during the Affordability Period. 7.5 Tenant Rent. 7.5.1 Rents charged to tenants of the HOME Units are subject to 24 CFR 92.252 (a) and (b) and are subject to review and approval by City at initial lease up and prior to any rent increases. Under no circumstances may the maximum rent charged to tenants of HOME Units exceed the High Home Rent minus utility allowances (excluding telephone). Partnership agrees to abide by HUD -approved schedules of HOME rent levels and the locally adopted utility allowances. 7.5.2 City shall provide Partnership with information on updated HOME rent limits so that rents may be adjusted (not to exceed the maximum HOME rent limits). Partnership shall provide City annually with information on rents and occupancy of the HOME Units to demonstrate compliance with 24 CFR Part 92.252 (a) and (b). City shall review the rents for compliance and approve or disapprove them every year. 7.5.3 Any increase in rents for the HOME Units is subject to the provisions of any outstanding leases for said units. Partnership shall provide tenants of the HOME Units with not less than 30 days prior written notice before implementing any increase in rents. 7.6 Tenant Selection. Within 90 days of the Effective Date, Partnership must submit to City for City's approval Partnership's tenant selection policy and criteria that address the following: 7.6.1 The tenant selection policy must be consistent with the purpose of providing housing for very low and low income persons. 7.6.2 The tenant selection policy must provide for: 7.6.2.1 Selection of tenants from a written waiting list in the chronological order of their application, insofar as is practicable; 7.6.2.2 Prompt written notification to any rejected applicant of the grounds for such rejection; and 7.6.2.3 Bi-lingual leasing and management assistance. HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 15 7.6.3 Holders of rental assistance subsidies (such as HUD's Housing Choice Voucher or similar subsidy) must not be excluded from renting a unit in the project. 7.6.4 The tenant selection policy must address non-discrimination and affirmative marketing as discussed in Section 7.7. 7.6.5 Partnership must market Accessible Units in the following order: 7.6.5.1 Within the project to persons requiring an accessible unit. 7.6.5.2 To persons on the waiting list requiring an accessible unit. 7.6.5.3 To the general community for persons requiring accessible unit. 7.6.5.4 To persons that do not require an accessible unit. 7.6.6 The tenant selection policy must (i) address the lease requirements described in Section 7.3, (ii) address managing HOME Unit requirements, and (iii) must comply with state and local tenant/landlord laws. 7.7 Affirmative Marketing. Partnership must adopt and implement affirmative marketing procedures as required by 24 CFR 92.351 if the project involves the construction of 5 or more HOME Units. The procedures and requirements must include methods for informing the public, owners and potential tenants about fair housing laws and policies so as to ensure that all individuals are given an equal opportunity to participate in the project without regard to sex, age, race, color, creed, nationality, national origin, religion, handicap status, disability, familial status, sexual orientation, gender identity, gender expression or transgender. The procedures shall include methods to be used by Partnership to inform and solicit applications for tenancy from person in the housing market area who are not likely to apply for the housing without special outreach (e.g., through the use of community organizations, places of worship, employment centers, fair housing groups, or housing counseling agencies.)The procedures and requirements must designate an individual who will be responsible for marketing the project and must establish a clear application screening plan. Partnership's affirmative marketing procedures must be submitted to City for approval prior to implementation; provided however, City shall have no responsibility for affirmative marketing of the project. 7.7.1 Partnership shall keep records describing actions taken to affirmatively market the HOME Units and the project sufficient to enable City to assess the results of the affirmative marketing. 7.8 Property Inspections During Initial Lease -Up of HOME Units; Annual Inspections of HOME Units. City shall inspect units in the project before they are placed into service. City shall inspect the HOME Units prior to a HOME Eligible Household occupying such unit to ensure that each HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 16 HOME Unit meets the appropriate HOME standards. Thereafter, City will inspect the HOME Units annually. 7.9 Proiect Maintenance and Inspections During Affordabilitv Period. Partnership shall ensure that the project is maintained in accordance with all applicable HUD property standards for the duration of the Affordability Period, which at a minimum shall be those property standards required in 24 CFR Part 92. City will verify maintenance of the project to these standards through on -site inspections every year. 7.10 Violence Against Women Act Requirements. 7.10.1 As Applicable, Partnership shall comply with the Violence Against Women Act ("VAWA") and shall ensure that its property manager shall, at the time of application for a unit in the Project, provide all potential tenants receiving rental assistance with a Notice of Occupancy Rights under the Violence Against Women Act in substantially the same form as the form attached and incorporated as Exhibit "N" — VAWA Forms in compliance with VAWA and 24 CFR Part92.359 of the HOME Regulations. 7.10.2 Partnership agrees that no applicant for a unit in the Project may be denied on the basis or as a direct result of the fact that they are or have been a victim of domestic violence, dating violence, sexual assault, or stalking, as long as they would otherwise qualify for the unit. 7.10.3 Partnership shall be responsible for reviewing VAWA and any applicable regulations and shall respond to all emergency transfer requests in accordance with the requirements of those provisions. Developer may request that all tenants requesting an emergency transfer under VAWA fill out the form attached and incorporated in Exhibit "N" — VAWA Forms or its own form that is substantially the same. 8. ADDITIONAL HOME REQUIREMENTS. Partnership agrees to comply with all requirements of the HOME Program as stated in the HOME Regulations, including, but not limited to the following: 8.1 Environmental Review. HOME Funds will not be paid and costs cannot be incurred until City has conducted and completed an environmental review and completed an Environmental Review Record as required by 24 CFR Part 58. The environmental review may result in a decision to proceed with, modify, or cancel the project. Further, Partnership will not undertake or commit any funds to physical or choice limiting actions, including if applicable, property acquisition, demolition, movement, rehabilitation, conversion, repair or construction prior to the environmental clearance. Any violation of this Section will (i) cause this Contract to terminate immediately; (ii) require Partnership to repay to City any HOME Funds received and forfeit any future payments of HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 17 HOME Funds; and (iii) Partnership must pay 10% of the HOME Funds to City as liquidated damages. The Parties agree that City's actual damages in the event of Partnership violating this Section are uncertain and would be difficult to ascertain and may include a finding by HUD, a repayment of funds to HUD by City or otherwise impact the City's HOME grant or other Federal grant funds. Therefore, the Parties agree that payment of 10% of the Loan amount by Partnership to City under this Section is liquidated damages and not a penalty. 8.1.1 Mitigation. Partnership must take the mitigation actions outlined in Exhibit "A-2" — Environmental Mitigation Actions. Failure to complete the required mitigation action is an event of default under this Contract. 8.2 Contract Not Constituting Commitment of Funds. Notwithstanding any provision of this Contract, the Parties agree and acknowledge that this Contract does not constitute a commitment of HOME Funds, and that such commitment or approval may occur only upon satisfactory completion of environmental review and receipt by City of an authorization to use grant funds from HUD under 24 CFR Part 58. 8.3. Monitoring. 8.3.1 Partnership understands and agrees that it will be subject to monitoring by City for compliance with the HOME Regulations, the terms of this Contract and the Loan Documents during the Affordability Period. Partnership will provide reports and access to project files as requested by City during the Affordability Period and for 5 years after it ends. 8.3.2 Representatives of City, HUD, HUD Office of the Inspector General, and the United States Comptroller General shall have access during regular business hours, upon at least 48 hours prior notice, to Partnership's offices and records and to Partnership's officers and agents that are related to the use of the HOME Funds and the requirements of the HOME Regulations during the Affordability Period, and to Partnership's officers, agents, employees, contractors, subcontractors and vendors for the purpose of such monitoring 8.3.3 In addition to other provisions of this Contract regarding frequency of monitoring, City reserves the right to perform desk reviews or on -site monitoring of Partnership's compliance with the terms and conditions of this Contract and the Loan. After each monitoring visit, City shall provide Partnership with a written report of the monitor's findings. If the monitoring report notes deficiencies in Partnership's performance, the report shall include requirements for the timely correction of said deficiencies by Partnership. Failure by Partnership to take the action specified in the monitoring report may be cause for suspension or termination of this Contract as provided herein, or City may take all actions allowed in the Loan Documents. 8.3.4 Partnership shall annually provide to City the results of any state or federal monitoring related to the project including any monitoring by TDHCA. Such results shall be submitted annually to City with the submission of its annual audit and financial statements. HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 18 8.3.5 This Section 8.3 shall be applicable for the duration of the Affordability Period and shall survive the earlier termination or expiration of this Contract. 8.4 Compliance with the Uniform Relocation Act. If applicable, Partnership shall comply with the relocation requirements of 24 CFR Part 92.353 and all other applicable federal and state laws and City ordinances and requirements pertaining to relocation. 8.5 Compliance with Davis -Bacon Act. If applicable, Partnership and its general contractor and all lower tier subcontractors will comply with the Davis -Bacon Act as described in Section 14.14 and Exhibit "H" — Federal Labor Standards Provisions - Davis -Bacon Requirements. 8.6 Partnership Procurement Standards. Partnership shall ensure that procurement of materials and services is done in a cost effective manner. Partnership shall comply with all applicable federal, state and local laws, regulations, and ordinances for making procurements under this Contract. Partnership shall establish written procurement procedures to ensure that materials and services are obtained in a cost effective manner 8.7 Cost Principles/Cost Reasonableness. The eligibility of costs incurred for performance rendered shall be determined in accordance 2 CFR Part 200.402 through 2 CFR Part 200.405, as applicable, regarding cost reasonableness and allocability. 8.8 Financial Management Standards. Partnership agrees to adhere to the accounting principles and procedures required in 2 CFR Part 200, as applicable, utilize adequate internal controls, and maintain necessary supporting and back-up documentation for all costs incurred in accordance with 2 CFR Part 200.302 and Part 200.303. 8.9 Uniform Administrative Requirements. Partnership will comply with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards in 2 CFR Part 200, as applicable, or any reasonably equivalent procedures and requirements that City may require. 8.10 Compliance with FFATA and Whistleblower Protections. Partnership shall provide City with all necessary information for City to comply with the requirements of 2 CFR 300(b), including provisions of the Federal Funding Accountability and Transparency Act ("FFATA") governing requirements on executive compensation and provisions governing whistleblower protections contained in 10 U.S.C. 2409, 41 U.S.C. 4712, 10 U.S.C. 2324, 41 U.S.C. 4304 and 41 U.S.C. 4310. 8.10.1 Partnership shall provide City its DUNS number prior to the payment of any Reimbursement Requests. HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 19 8.11 Internal Controls. In compliance with the requirements of 2 CFR 200.303, Partnership shall: 8.11.1 Establish and maintain effective internal control over the HOME Funds that provides reasonable assurance that Partnership is managing the HOME Funds in compliance with federal statutes, regulations, and the terms and conditions of this Contract. These internal controls shall be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework" issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"); 8.11.2 Comply with federal statutes, regulations, and the terms and conditions of this Contract; 8.11.3 Evaluate and monitor Partnership's compliance with statutes, regulations and the terms and conditions of this Contract; 8.11.4 Take prompt action when instances of noncompliance are identified including noncompliance identified in audit findings; and 8.11.5 Take reasonable measures to safeguard protected personally identifiable information and other information that HUD or City designates as sensitive or Partnership considers sensitive consistent with applicable federal, state, local and tribal laws regarding privacy and obligations of confidentiality. 8.12 Copvright and Patent Rights. No reports, maps, or other documents produced in whole or in part under this Contract shall be the subject of an application for copyright by or on behalf of Partnership. HUD and City shall possess all rights to invention or discovery, as well as rights in data which may arise as a result of Partnership's performance under this Contract. 8.13 Terms Applicable to Contractors, Subcontractors and Vendors. Partnership understands and agrees that all terms of this Contract, whether regulatory or otherwise, shall apply to any and all contractors, subcontractors and vendors of Partnership which are in any way paid with HOME Funds or who perform any work in connection with the project. Partnership shall cause all applicable provisions of this Contract to be included in and made a part of any contract or subcontract executed in the performance of its obligations hereunder, including its obligations regarding the Affordability Requirements and the HOME Regulations during the Affordability Period. Partnership shall monitor the services and work performed by its contractors, subcontractors and vendors on a regular basis for compliance with the Affordability Requirements, the HOME Regulations and Contract provisions. Partnership is responsible to cure all violations of the HOME Regulations committed by its contractors, subcontractors or vendors. City maintains the right to insist on Partnership's full compliance with the terms of this Contract and the HOME Regulations and Partnership is responsible for such compliance regardless of whether actions to fulfill the requirements of this Contract or the HOME Regulations are taken by Partnership or by Partnership's contractors, subcontractors or vendors. Partnership acknowledges that the HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 20 provisions of this Section shall survive the earlier termination or expiration of this Contract and be applicable for the length of the Affordability Period and for 5 years thereafter. 8.14 Pavment and Performance Bonds. Subject to the requirements of 2 CFR Part 200, Partnership shall furnish City with payment and performance bonds in a form acceptable to City in the amount of the construction cost for the project but not less than $2,523,247.40, which is the total amount of the Loan and the FWHFC Loan. At City's discretion, other forms of assurance may be acceptable so long as they meet the requirements of the HOME Regulations. 9. RECORD KEEPING. REPORTING AND DOCUMENTATION REOUIREMENTS. RIGHT TO AUDIT. 9.1 Record Keeping. Partnership shall maintain a record -keeping system as part of its performance of this Contract and shall promptly provide City with copies of any document City deems necessary for the effective fulfillment of City's monitoring and evaluation responsibilities. Specifically, Partnership will keep or cause to be kept an accurate record of all actions taken and all funds spent, with supporting and back-up documentation as well as all Tenant Documentation. Partnership will maintain all records and documentation related to this Contract for 5 years after the end of the Affordability Period. If any claim, litigation, or audit related to this Contract or the project is initiated before the expiration of the 5 year period, the relevant records and documentation must be retained until all such claims, litigation or audits have been resolved. 9.1.2 Access to Records. City representatives and HUD and any duly authorized officials of the federal government will have full access to, and the right to examine, audit, excerpt and/or transcribe any of Partnership's records pertaining to all matters covered by this Contract throughout the Affordability Period and for 5 years thereafter. Such access shall be during regular business hours upon at least 48 hours prior notice. 9.2 Reports. Partnership will submit to City all reports and documentation described in this Contract in such form as City may prescribe. Partnership may also be required to submit a final performance and/or final financial report if required by City at the termination of this Contract and/or the termination of the Loan in such form and within such times as City may prescribe. Failure to submit any report or documentation to City required by this Contract shall be an event of default and City may exercise all of it remedies for default under this Contract and Loan Documents. City shall not exercise its rights hereunder for default until its gives Partnership 30 days' notice of such failure and Partnership has failed to cure such default. 9.2.1 Additional Information. Partnership shall provide City with additional information as may be required by state or federal agencies to substantiate HOME Program activities and/or expenditure eligibility. 9.3 Change in Reporting Requirements and Forms. HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 21 City retains the right to change reporting requirements and forms at its reasonable discretion. City will notify Partnership in writing at least 30 days prior to the effective date of such change, and the Parties shall execute an amendment to the Contract reflecting such change if necessary. 9.4 City Reserves the Right to Audit. City reserves the right to perform an audit of Partnership's project operations and finances at any time during the term of this Contract and during the Affordability Period and for 5 years thereafter, if City determines that such audit is necessary for City's compliance with the HOME Regulations or other City policies, and Partnership agrees to allow access to all pertinent materials as described herein. If such audit reveals a questioned practice or expenditure, such questions must be resolved within 15 business days after notice to Partnership of such questioned practice or expenditure. If questions are not resolved within this period, City reserves the right to withhold further funding under this and/or other contract(s) with Partnership. IF AS A RESULT OF ANY AUDIT IT IS DETERMINED THAT PARTNERSHIP HAS FALSIFIED ANY DOCUMENTATION OR MISUSED, MISAPPLIED OR MISAPPROPRIATED HOME FUNDS OR SPENT HOME FUNDS ON ANY INELIGIBLE ACTIVITIES, PARTNERSHIP AGREES TO REIMBURSE CITY THE AMOUNT OF SUCH MONIES PLUS THE AMOUNT OF ANY SANCTIONS, PENALTY OR OTHER CHARGE LEVIED AGAINST CITY BY HUD BECAUSE OF SUCH ACTIONS. 10. REIMBURSEMENT REQUIREMENTS. Partnership shall provide City with Complete Documentation and the following reports as shown in Exhibit "F" — Reimbursement Forms with each Reimbursement Request: 10.1 Attachment I — Invoice. This report shall contain the amount requested for reimbursement in the submitted request, and the cumulative reimbursement requested to date (inclusive of the current request). This report must be signed by an authorized signatory of Partnership. By signing Attachment I, Partnership is certifying that the costs are valid, eligible, and consistent with the terms and conditions of this Contract, and the data contained in the report is true and correct. 10.2 Attachment II — Expenditure Worksheet. This report shall itemize each expense requested for reimbursement by Partnership. In order for this report to be complete the following must be submitted: 10.2.1 Invoices for each expense with an explanation as to how the expense pertains to the project, if necessary; and 10.2.2 Proof that each expense was paid by Partnership, which proof can be satisfied by cancelled checks, wire transfer documentation, paid receipts or other appropriate banking documentation. 10.3. Deadline for Submitting Reimbursement Requests. HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 22 All Reimbursement Requests along with Complete Documentation shall be submitted by Partnership to City within 60 calendar days from each of the deadlines as shown in Exhibit "C" — Construction and Reimbursement Schedule. 10.3.12 CITY SHALL HAVE NO OBLIGATION TO MAKE PAYMENT ON ANY REIMBURSEMENT REQUEST THAT IS NOT RECEIVED WITHIN 60 DAYS OF THE DEADLINES SHOWN IN EXHIBIT "C" — CONSTRUCTION AND REIMBURSEMENT SCHEDULE. In addition, Partnership's failure to timely submit Reimbursement Requests and Complete Documentation along with any required reports shall be an event of default. 10.3.2 CITY SHALL HAVE NO OBLIGATION TO MAKE PAYMENT ON ANY REIMBURSEMENT REQUEST THAT IS NOT RECEIVED WITHIN 30 CALENDAR DAYS OF THE COMPLETION DEADLINE. 10.3.3 Final Pavment. Partnership shall not be reimbursed for Final Payment until it submits Exhibit "G" — HOME Project Compliance Report to City. 10.4 Withholding Pavment. CITY SHALL WITHHOLD PAYMENT ON ANY REIMBURSEMENT REQUEST THAT DOES NOT INCLUDE THE REQUIRED COMPLETE DOCUMENTATION. 11. DEFAULT AND TERMINATION. 11.1 Failure to Begin or Complete the Required Improvements 11.1.1 If Partnership fails to begin construction within 9 months of the Effective Date, this Contract shall automatically terminate without further warning or opportunity to cure, and with no penalty or liability to City. 11.1.2 If City determines that the Required Improvements were not completed by the Completion Deadline (as may be modified in accordance with Section 14.19) or have failed to pass any of the inspections described in Section 6.1.1 (or to promptly correct any noted deficiency and subsequently pass such inspection), City shall have the right to terminate this Contract with no penalty or liability to City, with such termination to be effective immediately upon written notice. City shall also be entitled to demand repayment of the HOME Funds and enforce any of the provisions of Loan documents for default. 11.2 Failure to Submit Complete Documentation During Construction. 11.2.1 If Partnership fails to submit all applicable Complete Documentation during construction of the Required Improvements in accordance with Exhibit "C" — Construction and Reimbursement Schedule, or if any report or documentation submitted as part of Complete Documentation is not in compliance with this Contract or the HOME Regulations as determined by City, City will notify Partnership in writing and the Partnership will have 15 calendar days from HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 23 the date of the written notice to submit or resubmit any such report or documentation. If Partnership fails to submit or resubmit any such report or documentation within such time, City shall have the right to withhold payments. If such failure continues for an additional 15 days (a total of 30 days) City shall have the right to terminate this Contract effective immediately upon written notice of such intent with no penalty or liability to City. Notwithstanding anything to the contrary herein, City will not be required to pay any HOME Funds to Partnership during the period that any such report or documentation is not in compliance with this Contract or the HOME Regulations. 11.2.2 If any of Partnership's Reimbursement Requests are incomplete or otherwise not in compliance with this Contract or the HOME Regulations as determined by City, City will notify Partnership in writing of such default and the Partnership will have 15 calendar days from the date of the written notice to resubmit any such Reimbursement Request to cure the default. If the Partnership fails to cure the default within such time, Partnership shall forfeit any payments otherwise due under such Reimbursement Request. If such failure to resubmit such Reimbursement Request continues for an additional 15 days (a total of 30 days) the City shall have the right to terminate this Contract effective immediately upon written notice of such intent with no penalty or liability to City. Notwithstanding anything to the contrary herein, City will not be required to pay any HOME Funds to Partnership during the period that any such Reimbursement Request is not in compliance with this Contract or the HOME Regulations. 11.2.3 In the event of more than 3 instances of default, cured or uncured, under Sections 11.2.1 or 11.2.2 which have a material adverse impact on the project, City reserves the right at its sole option to terminate this Contract effective immediately upon written notice of such intent with no penalty or liability to City. 11.2.4 Notwithstanding anything to the contrary herein, City will not be required to pay any HOME Funds to Partnership during the period that any Reimbursement Requests, reports or documentation are past due or are not in compliance with this Contract or the HOME Regulations, or during any period during which Partnership is in default of this Contract. 11.2.5 In the event of termination under this Section 11.2, all HOME Funds awarded but unpaid to Partnership pursuant to this Contract shall be immediately forfeited and Partnership shall have no further right to such funds. Any HOME Funds already paid to Partnership must be repaid to City within 30 days of termination under this Section. Failure to repay such HOME Funds will result in City exercising all legal remedies available to City under this Contract and the Loan Documents. For clarification, the defaults and related remedies set out in this Section 11.2 are not intended to arise from mathematical errors or other minor defects in a Reimbursement Request. 11.3 Failure to Submit Required Reports and Documentation During Affordabilitv Period. If Partnership fails to maintain all records and documentation as required in Section 9, or fails to submit any report or documentation required by this Contract after the Required Improvements are completed, or if the submitted report or documentation is not in compliance with this Contract or the HOME Regulations as determined by City, City will notify Partnership HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 24 in writing and the Developer will have 30 calendar days from the date of the written notice to obtain or recreate the missing records or documentation, or submit or resubmit any such report or documentation to City. If Developer fails to maintain the required reports or documentation, or submit or resubmit any such report or documentation within such time, City shall have the right to terminate this Contract effective immediately upon written notice of such intent with no penalty or liability to City. In the event of termination under this Section 11.3, any HOME Funds paid to Partnership must be repaid to City within 30 days of termination. Failure to repay such HOME Funds will result in City exercising all legal remedies available to City under this Contract and the Loan Documents. 11.4 In General. 11.4.1 Subject to Sections 11.1, 11.2 and 11.3, and unless specifically provided otherwise in this Contract, Partnership shall be in default if Partnership breaches any term or condition of this Contract. In the event that such a breach remains uncured after 30 calendar days following written notice by City (or such other notice period as may be specified herein), or if Partnership has diligently and continuously attempted to cure following receipt of such written notice but reasonably required more than 30 calendar days to cure, as determined by both Parties mutually and in good faith, City shall have the right to elect, in City's sole discretion, to (i) extend Partnership's time to cure, (ii) terminate this Contract effective immediately upon written notice of such intent to Partnership, or (iii) pursue any other legal remedies available to City. 11.4.2 City's remedies may include: 11.4.2.1 Direct Partnership to prepare and follow a schedule of actions for carrying out the affected activities, consisting of schedules, timetables and milestones necessary to implement the affected activities, including extending the Affordability Period. 11.4.2.2 Direct Partnership to establish and follow a management plan that assigns responsibilities for carrying out the remedial activities. 11.4.2.3 Cancel or revise activities likely to be affected by the performance deficiency, before expending HOME Funds for the activities. 11.4.2.4 Reprogram HOME Funds that have not yet been expended from affected activities to other eligible activities or withhold HOME Funds. 11.4.2.5 Direct Partnership to reimburse City in any amount of HOME Funds not used in accordance with the HOME Regulations. 11.4.2.6 Suspend reimbursement of HOME Funds for affected activities. 11.4.2.7 Any other appropriate action including but not limited to any remedial action legally available such as declaratory judgment, HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 25 specific performance, damages, temporary or permanent injunctions, termination of this Contract or any other contracts with Partnership, and any other available remedies. 11.4.3 In the event of termination under this Section 11.4, all HOME Funds awarded but unpaid to Partnership pursuant to this Contract shall be immediately rescinded and Partnership shall have no further right to such funds and any HOME Funds already paid to Partnership must be repaid to City within 30 days of termination. Failure to repay such HOME Funds will result in City exercising all legal remedies available to City under this Contract or the Loan Documents. 11.5 No Funds Disbursed while in Breach. Partnership understands and agrees that no HOME Funds will be paid to Partnership until all defaults are cured to City's satisfaction. 11.6 No Compensation After Date of Termination. In the event of termination, Partnership shall not receive any HOME Funds in compensation for work undertaken after the date of termination. 11.7 Rights of Citv Not Affected. Termination shall not affect or terminate any of the existing rights of City against Partnership, or which may thereafter accrue because of such default, and this provision shall be in addition to any and all other rights and remedies available to City under the law and Loan Documents including, but not limited to, compelling Partnership to complete the Required Improvements in accordance with the terms of the Contract. Such termination does not terminate any applicable provisions of this Contract that have been expressly noted as surviving the term or termination of this Contract. No delay or omission by City in exercising any right or remedy available to it under this Contract shall impair any such right or remedy or constitute a waiver or acquiescence in any Partnership default. 11.8 Waiver of Breach Not Waiver of Subsequent Breach. The waiver of a breach of any term, covenant, or condition of this Contract shall not operate as a waiver of any subsequent breach of the same or any other term, covenant or condition hereof. 11.9 Civil, Criminal and Administrative Penalties. Failure to perform all the Contract terms may result in civil, criminal or administrative penalties, including, but not limited to those set out in this Contract. 11.10 Termination for Cause. 11.10.1 City may terminate this Contract in the event of Partnership's default, inability, or failure to perform, subject to notice, grace and cure periods. In the event City terminates this Contract for cause, all HOME Funds awarded but unpaid to Partnership pursuant to this Contract shall be immediately rescinded and Partnership shall have no further right to such funds and any HOME Funds already paid to Partnership must be repaid to City within 30 calendar days of termination. Failure to repay such HOME Funds will result in City exercising all legal remedies HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 26 available to City under this Contract or the Loan Documents. PARTNERSHIP ACKNOWLEDGES AND AGREES THAT IF CITY TERMINATES THIS CONTRACT FOR CAUSE, NEITHER PARTNERSHIP NOR ANY AFFILIATES OF PARTNERSHIP SHALL BE CONSIDERED FOR ANY OTHER CITY CONTRACT FOR HOME FUNDS FOR A MINIMUM OF 5 YEARS FROM THE DATE OF TERMINATION. This provision shall not apply to the Investor. 11.10.2 Partnership may terminate this Contract if City does not provide the HOME Funds substantially in accordance with this Contract. In such event, the termination of the Contract shall have the effect of returning the Parties to their respective circumstances as existed prior to the execution of this Contract, and no terms or obligations shall survive the date of termination, including but not limited to, reporting, inspections or the Affordability Period. 11.10.3 City may terminate this Contract if Partnership defaults on the FWHFC Loan. 11.11 Termination for Convenience. In terminating in accordance with 2 CFR 200, Appendix II, this Contract may be terminated in whole or in part only as follows: 11.11.1 By City with the consent of Partnership in which case the Parties shall agree upon the termination conditions, including the effective date and in the case of partial termination, the portion to be terminated; or 11.11.2 By Partnership upon written notification to City setting forth the reasons for such termination, the effective date, and in the case of partial termination, the portion to be terminated. In the case of a partial termination, City may terminate the Contract in its entirety if City determines in its sole discretion that the remaining portion of the Contract to be performed or HOME Funds to be spent will not accomplish the purposes for which this Contract was made. 11.12 Dissolution of Partnership Terminates Contract. In the event Partnership is dissolved or ceases to exist, this Contract shall terminate. In the event of termination under this Section, all HOME Funds are subject to repayment and/or City may exercise all of its remedies under this Contract and the Loan Documents. 11.13 Reversion of Assets. In the event this Contract is terminated with or without cause, all tangible personal property owned by Partnership that was acquired or improved with the HOME Funds shall belong to City and shall automatically transfer to City or to such assignees as City may designate. 11.14 Notice of Termination under Subordination Agreement. City shall not terminate this Contract without first giving notice and opportunity to cure as required in the Subordination Agreement. 11.15 Notice to Investor of Default. City shall furnish Investor with notice of any default under this Contract at the address shown below. HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 27 12. REPAYMENT OF HOME FUNDS. All HOME Funds are subject to repayment in the event the project does not meet the requirements as set out in this Contract or in the HOME Regulations. If Partnership takes any action that results in City being required to repay all or any portion of the HOME Funds to HUD, Partnership agrees it will reimburse City for such repayment. If Partnership takes any action that results in City receiving a finding from HUD about the project, whether or not repayment to HUD is required of City, Partnership agrees it will pay City 10% of the HOME Funds as liquidated damages. The Parties agree that City's damages in the event of either repayment to HUD being required or receiving a finding from HUD are uncertain and would be difficult to ascertain and may include an impact on City's HOME grant or other Federal grant funds, in addition to a finding by HUD or a repayment of funds to HUD by City. Therefore, the Parties agree that payment under this Section of 10% of the Loan amount by Partnership to City is liquidated damages and not a penalty. 13. MATERIAL OWNERSHIP CHANGE. Subject to the terms of the Deed of Trust and transfers in accordance with Partnership's Limited Partnership Agreement, as may be amended and restated from time to time to admit Investor Member or other members, or otherwise with City consent, if ownership of Partnership materially changes after the date of this Contract, City may, but is not obligated to, terminate this Contract. City has 30 days to make such determination after receipt of notice from Partnership and failure to make such determination in that time period will constitute a waiver. In the event of termination under this Section 13, all HOME Funds awarded but not yet paid to Partnership pursuant to this Contract shall be immediately rescinded and Partnership shall have no further right to such funds. Any HOME Funds already paid to Partnership must be repaid to City within 30 days of termination under this Section. 14. GENERAL PROVISIONS 14.1 Partnership an Independent Contractor. Partnership shall operate hereunder as an independent contractor and not as an officer, agent, servant or employee of City. Partnership shall have exclusive control of, and the exclusive right to control, the details of the work and services performed hereunder, and all persons performing same, and shall be solely responsible for the acts and omissions of its officers, members, agents, servants, employees, contractors, subcontractors, vendors, tenants, licensees or invitees. HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 28 14.2 Doctrine of Resvondeat Superior. The doctrine of respondeat superior shall not apply as between City and Partnership, its officers, members, agents, servants, employees, contractors, subcontractors, vendors, tenants, licensees or invitees, and nothing herein shall be construed as creating a partnership or joint enterprise between City and Partnership. City does not have the legal right to control the details of the tasks performed hereunder by Partnership, its officers, members, agents, employees, contractors, subcontractors, vendors, licensees or invitees. 14.3 Partnership Propertv. City shall under no circumstances be responsible for any property belonging to Partnership, its officers, members, agents, employees, contractors, subcontractors, vendors, tenants, licensees or invitees that may be lost, stolen or destroyed or in any way damaged and PARTNERSHIP HEREBY INDEMNIFIES AND HOLDS HARMLESS CITY AND ITS OFFICERS, AGENTS, AND EMPLOYEES FROM ANY AND ALL CLAIMS OR SUITS PERTAINING TO OR CONNECTED WITH SUCH PROPERTY. 14.4 Religious Organization. No portion of the HOME Funds shall be used in support of any sectarian or religious activity. In addition, there must be no religious or membership criteria for tenants of a HOME -funded property. 14.5 Venue. Venue for any action, whether real or asserted, at law or in equity, arising out of the execution, performance, attempted performance or non-performance of this Contract, shall lie in Tarrant County, Texas. 14.6 Governing Law. This Contract shall be governed by and construed in accordance with the laws of the State of Texas. If any action, whether real or asserted, at law or in equity, arises out of the execution, performance or non-performance of this Contract or on the basis of any provision herein, for any issue not governed by federal law, the choice of law shall be the laws of the State of Texas. 14.7 Severabilitv. The provisions of this Contract are severable, and if for any reason a clause, sentence, paragraph or other part of this Contract shall be determined to be invalid by a court or federal or state agency, board or commission having jurisdiction over the subject matter thereof, such invalidity shall not affect other provisions which can be given effect without the invalid provision. 14.8 Written Agreement Entire Agreement. This written instrument and the Exhibits, Addendums and Attachments attached hereto, which are incorporated by reference and made a part of this Contract for all purposes, constitute the entire agreement by the Parties concerning the work and services to be performed under this Contract. Any prior or contemporaneous oral or written agreement which purports to vary the terms of this Contract shall be void. Any amendments to the terms of this Contract must be in writing and be executed by the Parties. HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 29 14.9 Paragraph Headings for Reference Onlv, No Legal Significance; Number. The paragraph headings contained herein are for convenience in reference to this Contract and are not intended to define or to limit the scope of any provision of this Contract. When context requires, singular nouns and pronouns include the plural and the masculine gender shall be deemed to include the feminine or neuter and the neuter gender to include the masculine and feminine. The words "include" and "including" whenever used herein shall be deemed to be followed by the words "without limitation". 14.10 Compliance With All Applicable Laws and Regulations. Partnership agrees to comply fully with all applicable laws and regulations that are currently in effect or that are hereafter amended during the performance of this Contract. These laws include, but are not limited to: ➢ HOME Investment Partnerships Act as set out above ➢ Build American Buy America Act ➢ Title VI of the Civil Rights Act of 1964 (42 U.S.C. Sections 2000d et seq.) including provisions requiring recipients of federal assistance to ensure meaningful access by person of limited English proficiency ➢ The Fair Housing Act, Title VIII of the Civil Rights Act of 1968 (42 U.S.C. Sections 3601 et seq.) ➢ Executive Orders 11063, 11246 as amended by 11375 and 12086 and as supplemented by Department of Labor regulations 41 CFR, Part 60 ➢ The Age Discrimination in Employment of 1967 ➢ The Age Discrimination Act of 1975 (42 U.S.C. Sections 6101 et seq.) ➢ The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. Sections 4601 et seq. and 49 CFR Part 24) ("URA") ➢ Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. Sections 794 et seq.) and 24 CFR Part 8 where applicable ➢ National Environmental Policy Act of 1969, as amended, 42 U.S.C. sections 4321 et seq. ("NEPA") and the related authorities listed in 24 CFR Part 58. ➢ The Clean Air Act, as amended, (42 U.S.C. Sections 1251 et seq.) and the Clean Water Act of 1977, as amended (33 U.S.C. Sections 1251 et seq.), related Executive Order 11738 and Environmental Protection Agency Regulations at 40 CFR Part 15. In no event shall any amount of the assistance provided under this Contract be utilized with respect to a facility that has given rise to a conviction under the Clean Air Act or the Clean Water Act. ➢ Immigration Reform and Control Act of 1986 (8 U.S.C. Sections 1101 et seq.) specifically including the provisions requiring employer verifications of legal status of its employees ➢ The Americans with Disabilities Act of 1990 (42 U.S.C. Sections 12101 et seq.), the Architectural Barriers Act of 1968 as amended (42 U.S.C. sections 4151 et seq.) and the Uniform Federal Accessibility Standards, 24 CFR Part 40, Appendix A ➢ Regulations at 24 CFR Part 87 related to lobbying, including the requirement that certifications and disclosures be obtained from all covered persons ➢ Drug Free Workplace Act of 1988 (41 U.S.C. Sections 701 et seq.) and 24 CFR Part 23, Subpart F HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 30 ➢ Executive Order 12549 and 24 CFR Part 5.105(c) pertaining to restrictions on participation by ineligible, debarred or suspended persons or entities ➢ Regulations at 24 CFR Part 882.708(c) pertaining to site and neighborhood standards for new construction projects ➢ Regulations at 24 CFR Part 983.6 for Site and Neighborhood Standards Review ➢ Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act ➢ Guidelines of the Environmental Protection Agency at 40 CFR Part 247 ➢ For contracts and subgrants for construction or repair, Copeland "Anti -Kickback" Act (18 U.S.C. 874) as supplemented in 29 CFR Part 5 ➢ For construction contracts in excess of $2,000, and in excess of $2,500 for other contracts which involve the employment of mechanics or laborers, Sections 103 and 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 327A 300) as supplemented by 29 CFR Part 5 ➢ Lead -Based Paint Poisoning Prevention Act (42 U.S.C. 4801 et seq.), as amended by the Residential Lead -Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851 et seq.) and implementing regulations at 24 CFR Part 35, subparts A, B, M, and R ➢ Regulations at 24 CFR Part 92, Home Investment Partnerships Program Final Rule ➢ Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 2 CFR Part 200 et seq. ➢ Federal Funding Accountability and Transparency Act of 2006, (Pub.L. 109-282, as amended by Section 6205(a) of Pub.L. 110-252 and Section 3 of Pub.L. 113-101) ➢ Federal Whistleblower Regulations, 10 U.S.C. 2409,41 U.S.C. 4712, 10 U.S.C. 2324, 41 U.S.C. 4304 and 41 U.S.C. 4310. 14.11 HUD -Assisted Proiects and Emplovment and other Economic Opportunities; Section 3 Requirements. 14.11.1 Requirement that Law Be Ouoted in Covered Contracts. — Certain Requirements Pertaining to Section 3 of the Housing and Urban Development Act of 1968 as Amended (12 U.S.C. Sections 1701 et seq.) and its Related Regulations at 24 CFR Part 135 As mandated by Section 3 of the Housing and Urban Development Act of 1968 and its related regulations at 24 CFR Part 75, FWAI shall ensure that Developer and Project Construction Contractors shall, to the greatest extent feasible, provide employment opportunities to low and moderate income workers and to low and moderate income residents of the Project Service Area and to businesses owned by or employing low and moderate income workers, as further defined and described in the Sections below. 14.11.2 Section 3 Definitions 14.11.2.1 Section 3 Worker means either a) a worker whose income is below the income established by HUD for Section 3 compliance, which is 80% of the area median income, or b) a worker that is employed by a Section 3 Business. HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 31 14.11.2.2 Targeted Section 3 Worker means a worker that lives within the Project Service area and also meets the definition of a Section 3 Worker. 14.11.3 Section 3 Business means a business that meets one of the following conditions: a) is at least 5 1 % owned by low or moderate income persons; b) has had over 75% of its labor hours performed over the last the months by low or moderate income persons; or c) is at least 5 1 % owned by public housing residents or residents that currently live in Section 8-assisted housing. 14.11.4 Project Service Area means the geographic area within one mile of the Project Site which includes 5000 population, or the geographic area around the Project Site which is large enough to include 5000 residents, as represented on Section 3 Project Service Area Map attached as Exhibit "I" to this Contract. 14.11.2 Partnership Responsibilities for Section 3 Requirements. City and Partnership understand and agree that compliance with the provisions of Section 3, the regulations set forth in 24 CFR Part 135, and all applicable rules and orders of HUD shall be a condition of the federal financial assistance provided to the project binding upon City and Partnership, and their respective successors, assigns, contractors and subcontractors. Failure to fulfill these requirements shall subject Partnership and its contractors and subcontractors and their respective successors and assigns to those sanctions specified by the grant agreement through which federal assistance is provided and to such sanctions as are specified by 24 CFR Part 135. Partnership's responsibilities include: 14.11.2.1 Implementing procedures to notify Section 3 residents and business concerns about training, employment, and contracting opportunities generated by Section 3 covered assistance; 14.11.2.2 Notifying potential contractors working on Section 3 covered projects of their responsibilities; 14.11.2.3 Facilitating the training and employment of Section 3 residents and the award of contracts to Section 3 business concerns; 14.11.2.4 Assisting and actively cooperating with the Neighborhood Services Department in making contractors and subcontractors comply; 14.11.2.5 Refraining from entering into contracts with contractors that are in violation of Section 3 regulations; 14.11.2.6 Documenting actions taken to comply with Section 3; and 14.11.2.7 Submitting Section 3 Annual Summary Reports (form HUD- 60002) in accordance with 24 CFR Part 135.90. HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 32 14.11.3 Section 3 Reporting Requirements. In order to comply with the Section 3 requirements, Partnership must submit the forms attached hereto as Exhibit "I" - Section 3 Reporting Forms and take the following actions: 14.11.3.1 Report to the City all applicants for employment, and all applicants for employment by contractors and any subcontractors on a quarterly basis. This shall include name, address, zip code, date of application, and status (hired/not- hired) as of the date of the report. 14.11.3.2 Advertise available positions to the public for open competition and provide documentation to City with the quarterly report that demonstrates such open advertisement, in the form of printout of Texas Workforce Commission posting, copy of newspaper advertisement, copy of flyers and listing of locations where flyers were distributed, and the like. 14.11.3.3 Report to the City all contracts awarded by contractors and any subcontractors on a quarterly basis. This shall include name of contractor and/or subcontractor, address, zip code, and amount of award as of the date of the report. 14.12 Prohibition Against Discrimination. 14.12.1 General Statement. Partnership, in the execution, performance or attempted performance of this Contract, shall comply with all non-discrimination requirements of 24 CFR 92.350 and the ordinances codified at Chapter 17, Article III, Division 4 — Fair Housing of the City Code. Partnership may not discriminate against any person because of race, color, sex, gender, religion, national origin, familial status, disability or perceived disability, sexual orientation, gender identity, gender expression, or transgender, nor will Partnership permit its officers, members, agents, employees, contractors, vendors or project participants to engage in such discrimination. This Contract is made and entered into with reference specifically to the ordinances codified at Chapter 17, Article III, Division 3 - Employment Practices of the City Code, and Partnership hereby covenants and agrees that Partnership, its officers, members, agents, employees and contractors, have fully complied with all provisions of same and that no employee, or applicant for employment has been discriminated against under the terms of such ordinances by either or its officers, members, agents, employees, contractors or vendors. 14.12.2 No Discrimination in Emplovment during the Performance of this Contract. During the performance of this Contract Partnership agrees to the following provision, and will require that its contractors, subcontractors and vendors also comply with such provision by including it in all contracts with its contractors and vendors: HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 33 (Contractor's, Subcontractor's or Vendor's Name] will not unlawfully discriminate against any employee or applicants for employment because of race, color, sex, gender, religion, national origin, familial status, disability or perceived disability, sexual orientation, gender identity, gender expression or transgender. f Contractor's, Subcontractor's or Vendor's Name] will take affirmative action to ensure that applicants are hired without regard to race, color, sex, gender, religion, national origin, familial status, disability or perceived disability, sexual orientation, gender identity, gender expression or transgender and that employees are treated fairly during employment without regard to their race, color, sex, gender, religion, national origin, familial status, disability or perceived disability, sexual orientation, gender identity, gender expression or transgender. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. (Contractor's, Subcontractor's or Vendor's Namel agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this nondiscrimination clause. f Contractor's, Subcontractor's or Vendor's Name] will, in all solicitations or advertisements for employees placed by or on behalf of f Contractor's, Subcontractor's or Vendor's Name] , state that all qualified applicants will receive consideration for employment without regard to race, color, sex, gender, religion, national origin, familial status, disability or perceived disability, sexual orientation, gender identity, gender expression or transgender. f Contractor's, Subcontractor's or Vendor's Name] covenants that neither it nor any of its officers, members, agents, employees, or contractors, while engaged in performing this Contract, shall, in connection with the employment, advancement or discharge of employees or in connection with the terms, conditions or privileges of their employment, discriminate against persons because of their age or because of any disability or perceived disability, except on the basis of a bona fide occupational qualification, retirement plan or statutory requirement. f Contractor's, Subcontractor's or Vendor's Name] further covenants that neither it nor its officers, members, agents, employees, contractors, or persons acting on their behalf, shall specify, in solicitations or advertisements for employees to work on this Contract, a maximum age limit for such employment unless the specified maximum age limit is based upon a bona fide occupational qualification, retirement plan or statutory requirement. 14.12.3 Partnership's Contractors and ADA. In accordance with the provisions of the Americans With Disabilities Act of 1990 ("ADA"), Partnership warrants that it will not unlawfully discriminate on the basis of disability in the provision of services to the general public, nor in the availability, terms and/or conditions of employment for applicants for employment with, or employees of Partnership. PARTNERSHIP WARRANTS IT WILL FULLY COMPLY WITH ADA'S PROVISIONS AND ANY OTHER APPLICABLE FEDERAL, STATE AND LOCAL LAWS CONCERNING HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 34 DISABILITY AND WILL DEFEND, INDEMNIFY AND HOLD CITY HARMLESS AGAINST ANY CLAIMS OR ALLEGATIONS ASSERTED BY THIRD PARTIES, CONTRACTORS, SUBCONTRACTORS OR VENDORS AGAINST CITY ARISING OUT OF PARTNERSHIP'S AND/OR ITS CONTRACTORS', SUBCONTRACTORS', VENDORS', AGENTS' OR EMPLOYEES' ALLEGED FAILURE TO COMPLY WITH THE ABOVE -REFERENCED LAWS CONCERNING DISABILITY DISCRIMINATION IN THE PERFORMANCE OF THIS CONTRACT. 14.13. Conflict of Interest and Violations of Criminal Law. 14.13.1 Partnership Safeguards. Partnership shall establish safeguards to prohibit its employees, board members, advisors and agents from using positions for a purpose that is or gives the appearance of being motivated by a desire for private gain for themselves or others, particularly those with whom they have family, business or other ties. Partnership shall disclose to City any conflict of interest or potential conflict of interest described above, immediately upon discovery of such. 14.13.2 General Prohibition Against Conflicts of Interest. No persons who are employees, agents, consultants, officers or elected officials or appointed officials of City or of Partnership who exercise or have exercised any functions or responsibilities with respect to activities assisted with HOME funds or who are in a position to participate in a decision -making process or gain inside information with regard to these activities may occupy a HOME Unit, may obtain a financial interest or benefit from a HOME -assisted activity, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during their tenure or for 1 year thereafter, unless they are accepted in accordance with the procedures set forth at 24 C.F.R. Part 92.356. 14.13.2.1 Partnership shall establish conflict of interest policies for Federal Awards and shall provide such policies in writing to City in accordance with the requirements of 2 CFR Part 200.112. 14.13.3 Disclosure of Conflicts of Interest. In compliance with 2 CFR Part 200.112, Partnership is required to timely disclose to City in writing any potential conflict of interest, as described in this Section. 14.13.4 Disclosure of Texas Penal Code Violations. Partnership affirms that it will adhere to the provisions of the Texas Penal Code which prohibits bribery and gifts to public servants. 14.13.5 Disclosure of Federal Criminal Law Violations. In compliance with 2 CFR Part 200.113, Partnership is required to timely disclose to City all violations of federal criminal law involving fraud, bribery or gratuity violations potentially affecting this Agreement. 14.14 Labor Standards. HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 35 14.14.1 As applicable, Partnership agrees to comply with the requirements of the Secretary of Labor in accordance with the Davis -Bacon Act (40 U.S.C. 276a-7) as amended, the provisions of Contract Work Hours and Safety Standards Act (40 U.S.C. 327 et seq.) and all other applicable Federal, state and local laws and regulations pertaining to labor standards insofar as those acts apply to the performance of this Contract. Partnership agrees to comply with the Copeland Anti -Kick Back Act (18 U.S.C. 874 et seq.) and its implementing regulations of the United States Department of Labor at 29 CFR Part 5. Partnership shall maintain documentation that demonstrates compliance with hour and wage requirements of this Contract and HOME Regulations. Such documentation shall be made available promptly to City for review upon request. 14.14.2 Partnership agrees that, except with respect to the rehabilitation or construction of residential property containing less than 12 units assisted with HOME funds, all contractors engaged under contract for construction, renovation or repair work financed in whole or in part with assistance provided under this Contract, shall comply with Federal requirements adopted by City pertaining to such contracts and with the applicable requirements of the regulations of the Department of Labor under 29 CFR Parts 1, 3, 5 and 7 governing the payment of wages and ratio of apprentices and trainees to journey workers; provided that, if wage rates higher than those required under these regulations are imposed by state or local law, nothing hereunder is intended to relieve Partnership of its obligation, if any, to require payment of the higher wage. Partnership shall cause or require to be inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements of this paragraph. 14.14.3 If Davis -Bacon is applicable, Partnership shall provide City access to employee payrolls, contractor and subcontractor payrolls and other wage information for persons performing construction of the Required Improvements. Payrolls must be submitted to the Neighborhood Services Department with each Reimbursement Request, and must be available to Neighborhood Services Department staff upon request. In addition, Partnership shall ensure that City will have access to employees, contractors and subcontractors and their respective employees in order to conduct onsite interviews with laborers and mechanics. Partnership shall inform its contractors and subcontractors that City staff or federal agencies may conduct periodic employee wage interview visits during construction of the project to ensure compliance. 14.15 Subcontracting with Small and Minoritv Firms, Women's Business Enterprises and Labor Surplus Areas. 14.15.1 For procurement contracts $50,000.00 or larger, Partnership agrees to abide by City's policy to involve Minority Business Enterprises and Small Business Enterprises and to provide them equal opportunity to compete for contracts for construction, provision of professional services, purchase of equipment and supplies and provision of other services required by City. Partnership agrees to incorporate the City's BDE Ordinance, and all amendments or successor policies or ordinances thereto, into all contracts and subcontracts for procurement $50,000.00 or larger, and will further require all persons or entities with which it so contracts to comply with said ordinance. HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 36 14.15.2 It is national policy to award a fair share of contracts to disadvantaged business enterprises ("DBEs"), small business enterprises ("SBEs"), minority business enterprises ("MBEs"), and women's business enterprises ("WBEs"). Accordingly, affirmative steps must be taken to assure that DBEs, SBEs, MBEs, and WBEs are utilized when possible as sources of supplies, equipment, construction and services. 14.15.3 In order to comply with the reporting requirements of 24 CFR Part 92.508 (a)(7)(ii), Partnership must submit the form attached hereto as Exhibit "K" — MBE Reporting Form for each contract or subcontract with a value of $25,000 or more paid, or to be paid, with HOME funds. This form shall be submitted with the final Reimbursement Request. 14.16 Other Laws. The failure to list any federal, state or City ordinance, law or regulation that is applicable to Developer does not excuse or relieve Developer from the requirements or responsibilities in regard to following the law, nor from the consequences or penalties for Developer's failure to follow the law, if applicable. 14.17 Assignment. Partnership shall not assign all or any part of its rights, privileges, or duties under this Contract without the prior written approval of City. Any attempted assignment of same without approval shall be void, and shall constitute a breach of this Contract. 14.18. Right to Inspect Partnership Contracts. It is agreed that City has the right to inspect and approve in writing any proposed contracts between Partnership and (i) its general contractor and subcontractors, including any lower tier subcontractors engaged in any activity that is funded as part of the construction of the Required Improvements, (ii) any vendor contracts arising out of the operation of the project, and (iii) any third party contracts to be paid with HOME Funds, prior to any charges being incurred. 14.19 Force Maieure If Partnership becomes unable, either in whole or part, to fulfill its obligations under this Contract due to acts of God, strikes, lockouts, or other industrial disturbances, acts of public enemies, wars, blockades, insurrections, riots, epidemics, pandemics earthquakes, fires, hurricanes, tornadoes, floods, restraints or prohibitions by any court, board, department, commission or agency of the United States or of any States, civil disturbances, or explosions, or some other reason beyond Partnership's control (collectively, "Force Majeure Event"), the obligations so affected by such Force Majeure Event will be suspended only during the continuance of such event and the completion date for such obligations shall be extended for a like period. Partnership will give City written notice of the existence, extent and nature of the Force Majeure Event as soon as reasonably possible after the occurrence of the event. Failure to give notice will result in the continuance of the Partnership's obligation regardless of the extent of any existing Force Majeure Event. Partnership will use commercially reasonable efforts to remedy its inability to perform as soon as possible. 14.20 Survival. HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 37 Any provision of this Contract that pertains to Affordability Requirements, auditing, monitoring, tenant income eligibility, record keeping and reports, City ordinances, the provisions of Section 6.6 pertaining to SAM, or any HOME requirements, and any default and enforcement provisions necessary to enforce such provisions, shall survive the termination of this Contract for the longer of (i) 5 years after the termination date of this Contract, or (ii) 5 years after the termination of the Affordability Period unless a different survival period is specifically set forth herein, and shall be enforceable by City against Partnership. 14.21 REVIEW OF COUNSEL. The Parties acknowledge that each Party and its counsel have reviewed and revised this Contract and that the normal rules of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Contract or any of the exhibits attached hereto. 15. INDEMNIFICATION AND RELEASE. PARTNERSHIP COVENANTS AND AGREES TO INDEMNIFY, HOLD HARMLESS AND DEFEND, AT ITS OWN EXPENSE, CITY AND ITS OFFICERS, AGENTS, SERVANTS AND EMPLOYEES FROM AND AGAINST ANY AND ALL CLAIMS OR SUITS FOR PROPERTY LOSS OR DAMAGE AND/OR PERSONAL INJURY, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF WHATSOEVER HIND OR CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN CONNECTION WITH THE EXECUTION, PERFORMANCE, ATTEMPTED PERFORMANCE OR NONPERFORMANCE OF THIS CONTRACT AND/OR THE OPERATIONS, ACTIVITIES AND SERVICES OF THE PROJECT DESCRIBED HEREIN, WHETHER OR NOT CAUSED IN WHOLE OR IN PART, BY ALLEGED NEGLIGENCE OF OFFICERS, AGENTS, SERVANTS, EMPLOYEES, CONTRACTORS OR SUBCONTRACTORS OF CITY, AND PARTNERSHIP HEREBY ASSUMES ALL LIABILITY AND RESPONSIBILITY OF CITY AND ITS OFFICERS, AGENTS, SERVANTS, AND EMPLOYEES FOR ANY AND ALL CLAIMS OR SUITS FOR PROPERTY LOSS OR DAMAGE AND/OR PERSONAL INJURY, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF WHATSOEVER HINDS OR CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN CONNECTION WITH THE EXECUTION, PERFORMANCE, ATTEMPTED PERFORMANCE OR NONPERFORMANCE OF THIS CONTRACT AND AGREEMENT AND/OR THE OPERATIONS, ACTIVITIES AND SERVICES OF THE PROJECT DESCRIBED HEREIN, WHETHER OR NOT CAUSED IN WHOLE OR IN PART BY ALLEGED NEGLIGENCE OF OFFICERS, AGENTS, SERVANTS, EMPLOYEES, CONTRACTORS OR SUBCONTRACTORS OF CITY. PARTNERSHIP LIKEWISE COVENANTS AND AGREES TO AND DOES HEREBY INDEMNIFY AND HOLD HARMLESS CITY FROM AND AGAINST ANY AND ALL INJURY, DAMAGE OR DESTRUCTION OF PROPERTY OF CITY, ARISING OUT OF OR IN CONNECTION WITH ALL ACTS OR OMISSIONS OF PARTNERSHIP, ITS OFFICERS, MEMBERS, AGENTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS, INVITEES, LICENSEES, OR PROJECT PARTICIPANTS, OR CAUSED, IN WHOLE OR IN PART, BY ALLEGED HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 38 NEGLIGENCE OF OFFICERS, AGENTS, SERVANTS, EMPLOYEES, CONTRACTORS OR SUBCONTRACTORS OF CITY. IT IS THE EXPRESS INTENTION OF THE PARTIES, BOTH PARTNERSHIP AND CITY, THAT THE INDEMNITY PROVIDED FOR THIS SECTION INCLUDES INDEMNITY BY PARTNERSHIP TO INDEMNIFY AND PROTECT CITY FROM THE CONSEQUENCES OF CITY'S OWN NEGLIGENCE, WHETHER THAT NEGLIGENCE IS ALLEGED TO BE THE SOLE OR CONCURRING CAUSE OF THE INJURY, DAMAGE OR DEATH. PARTNERSHIP AGREES TO AND SHALL RELEASE CITY, ITS AGENTS, EMPLOYEES, OFFICERS AND LEGAL REPRESENTATIVES FROM ALL LIABILITY FOR INJURY, DEATH, DAMAGE OR LOSS TO PERSONS OR PROPERTY SUSTAINED IN CONNECTION WITH OR INCIDENTAL TO PERFORMANCE UNDER THIS CONTRACT, EVEN IF THE INJURY, DEATH, DAMAGE OR LOSS IS CAUSED BY CITY'S SOLE OR CONCURRENT NEGLIGENCE. PARTNERSHIP SHALL REQUIRE ALL OF ITS CONTRACTORS AND SUBCONTRACTORS TO INCLUDE IN THEIR CONTRACTS AND SUBCONTRACTS A RELEASE AND INDEMNITY IN FAVOR OF CITY IN SUBSTANTIALLY THE SAME FORM AS ABOVE. 16. WAIVER OF IMMUNITY BY PARTNERSHIP. If Partnership is a charitable or nonprofit organization and has or claims an immunity or exemption (statutory or otherwise) from and against liability for damages or injury, including death, to persons or property, Partnership hereby expressly waives its rights to plead defensively such immunity or exemption as against City. This section shall not be construed to affect a governmental entity's immunities under constitutional, statutory or common law. 17. INSURANCE AND BONDING. Partnership will maintain coverage in the form of insurance or bond in the amount of $2,523,547.40, which is the total amount of the Loan, to insure against loss from the fraud, theft or dishonesty of any of Partnership's officers, agents, trustees, directors or employees. The proceeds of such insurance or bond shall be used to reimburse City for any and all loss of HOME Funds occasioned by such misconduct. To effectuate such reimbursement, such fidelity coverage shall include a rider stating that reimbursement for any loss or losses shall name the City as a Loss Payee. Partnership shall furnish to City, in a timely manner, but not later than 60 days after the Effective Date, certificates of insurance as proof that it has secured and paid for policies of commercial insurance as specified herein. If City has not received such certificates as set forth herein, Partnership shall be in default of the Contract and City may at its option, terminate the Contract. HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 39 Such insurance shall cover all insurable risks incident to or in connection with the execution, performance, attempted performance or nonperformance of this Contract. Partnership shall maintain, or require its general contractor to maintain, the following coverages and limits thereof: Commercial General Liabilitv (CGL) Insurance $1,000,000 each occurrence $2,000,000 aggregate limit Business Automobile Liabilitv Insurance $1,000,000 each accident on a combined single -limit basis, or $ 250,000 Property Damage $ 500,000 Bodily Injury per person per occurrence $2,000,000 Aggregate Insurance policy shall be endorsed to cover "Any Auto" defined as autos owned, hired and non -owned. Pending availability of the above coverage and at the discretion of City, the policy shall be the primary responding insurance policy versus a personal auto insurance policy if or when in the course of Partnership's business as contracted herein. Workers' Compensation Insurance Part A: Statutory Limits Part B: Employer's Liability $100,000 each accident $100,000 disease -each employee $500,000 disease -policy limit Note: Such insurance shall cover employees performing work on any and all projects including but not limited to construction, demolition, and rehabilitation. Partnership or its contractors shall maintain coverages, if applicable. In the event the respective contractors do not maintain coverage, Partnership shall maintain the coverage on such contractor, if applicable, for each applicable contract. Additional Requirements Such insurance amounts shall be revised upward at City's reasonable option and no more frequently than once every 12 months, and Partnership shall revise such amounts within 30 days following notice to Partnership of such requirements. Partnership will submit to City documentation that it, and its general contractor, have obtained insurance coverage and have executed bonds as required in this Contract prior to payment of any monies provided hereunder. Where applicable and appropriate, insurance policies required herein shall be endorsed to include City as an additional insured as its interest may appear. Additional insured parties shall include employees, officers, agents, and volunteers of City. HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 40 The Workers' Compensation Insurance policy shall be endorsed to include a waiver of subrogation, also referred to as a waiver of rights of recovery, in favor of City. Any failure on part of City to request certificate(s) of insurance shall not be construed as a waiver of such requirement or as a waiver of the insurance requirements themselves. Insurers of Partnership's insurance policies shall be licensed to do business in the state of Texas by the Department of Insurance or be otherwise eligible and authorized to do business in the state of Texas. Insurers shall be acceptable to City insofar as their financial strength and solvency and each such company shall have a current minimum A.M. Best Key Rating Guide rating of A: VII or other equivalent insurance industry standard rating otherwise approved by City. Deductible limits on the foregoing insurance policies shall be at commercially reasonable levels, and in no event exceed $100,000 per occurrence. In the event there are any local, federal or other regulatory insurance or bonding requirements for the project, and such requirements exceed those specified herein, the former shall prevail. Partnership shall require its contractors to maintain applicable insurance coverages, limits, and other requirements as those specified herein; and, Partnership shall require its contractors to provide Partnership with certificate(s) of insurance documenting such coverage. Also, Partnership shall require its contractors to have City and Partnership endorsed as additional insureds (as their interest may appear) on their respective insurance policies where applicable and appropriate. Professional Liability coverage shall be in force and may be provided on a claim's made basis. This coverage may also be referred to as Management Liability, and shall protect the insured against claims arising out of alleged errors in judgment, breaches of duty and wrongful acts arising out of their management duties. Partnership shall require its builder to maintain builders risk insurance at the value of the construction. 18. CERTIFICATION REGARDING LOBBYING. The undersigned Partnership hereby certifies, to the best of its knowledge and belief, that: No Federal appropriated funds have been paid or will be paid, by or on behalf of Partnership, to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress in connection with the awarding of any Federal contract, the making of any federal grant, the making of any Federal loan, the entering into of any cooperative agreement and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan or cooperative agreement. HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 41 If any funds other than federally appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, member of Congress in connection with this Federal contract, grant, loan or cooperative agreement, Partnership shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying, " in accordance with its instructions. This certification is a material representation of fact upon which reliance was placed when this Contract was made or entered into. Submission of this certificate is a prerequisite for making or entering into this Contract imposed by 31 U.S.C. Section 1352. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000.00 and not more than $100,000.00 for each such failure. Partnership shall require that the language of this certification be included in all subcontracts or agreements involving the expenditure of federal funds. 19. RELIGIOUS ORGANIZATION. Partnership to acknowledges and shall comply with all applicable requirements as more particularly described in 24 CFR Part 5.109. No portion of the HOME Funds shall be used in support of any sectarian or religious activity. In addition, there must be no religious or membership criteria for tenants of a HOME -funded unit. 19.1 Separation of Explicitly Religious Activities. Partnership acknowledges and agrees to retain its independence and may continue to carry out its mission, including the definition, development practice, and expression of its religious beliefs, provided that it does not use HOME Funds to support or engage in any explicitly religious activities (including activities that involve overt religious content such as worship, religious instruction, or proselytization), or in any other manner prohibited by law. 19.2 Explicitly Religious Activities. Partnership to acknowledges and agrees that if Partnership engages in explicitly religious activities (including activities that involve overt religious content such as worship, religious instruction, or proselytization), the explicitly religious activities must be offered separately, in time or location, from the programs or activities supported by HOME Funds and participation must be voluntary for tenants of a HOME -funded unit. 20. LITIGATION AND CLAIMS. Partnership shall give City immediate notice in writing of any action, including any proceeding before an administrative agency, filed against Partnership in conjunction with this Contract or the project. Partnership shall furnish immediately to City copies of all pertinent papers received by Partnership with respect to such action or claim. Partnership shall provide a notice to City within 10 days upon filing under any bankruptcy or financial insolvency provision of law. HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 42 21. NOTICE. All notices required or permitted by this Contract must be in writing and shall be effective upon receipt when (i) sent by U.S. Mail, with proper postage, certified mail return receipt requested or by a nationally recognized overnight delivery service; and (iii) addressed to the other Party at the address set out below or at such other address as the receiving Party designates by proper notice to the sending Party. City: Neighborhood Services Department Attention: Chad LaRoque, Housing Development Manager 100 Fort Worth Trail Fort Worth, TX 76102 Telephone: 817-3 92-7540 Copy to: City Attorney's Office Attention: Leslie Hunt, Senior Assistant City Attorney 100 Fort Worth Trail Partnership: Carmen Chubb President Columbia Renaissance Square III, LP 1718 Peachtree St. NW Ste. 684 Atlanta, GA 30309 Telephone: 404-874-5000 Copy to: Shikha Jerath Development Manager Columbia Residential Communities 1718 Peachtree St. NW Ste. 684 Atlanta, GA 30309 Telephone: 706-951-2510 Copy to: Antoinette M. Jackson Principal The Banks Law Firm 2929 Allen Parkway Ste. 200 Houston, TX 77019 Telephone: 832-954-2533 22. PARTNERSHIP HAS LEGAL AUTHORITY TO ENTER INTO CONTRACT. HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 43 Partnership represents that it possesses the legal authority, pursuant to any proper, appropriate and official motion, resolution or action passed or taken, to enter into this Contract and to perform the responsibilities herein required. 23. INVESTOR'S RIGHT TO CURE. The Parties agree that the Investor shall have the right, but not the obligation, to cure any default by or complete any obligation of the Partnership under the Loan Documents during the cure period or completion period provided therein, and the Parties hereto agree to accept any such cure or completion tendered by the Investor. 24. BOYCOTTING ISRAEL PROHIBITED Partnership acknowledges that in accordance with Chapter 2270 of the Texas Government Code, Lender is prohibited from entering into a contract with a company for foods or services unless that contract contains a written verification from the company that it: (1) does not boycott Israel; and (2) will not boycott Israel during the term of the contract. The terms "boycott Israel" and "company" shall have the meanings ascribed to those terms in Section 808.001 of the Texas Government Code. By signing this Contract, Partnership certifies that Partnership's signature provides written verification to Lender that Partnership: (1) does not boycott Israel; and (2) will not boycott Israel during the term of this Contract. 25. IMMIGRATION NATIONALITY ACT Partnership shall verify the identity and employment eligibility of its employees who perform work under this Contract, including complete the Employment Eligibility Verification Form (I-9). Upon request by Lender, Partnership shall provide Lender with copies of all I-9 forms and supporting eligibility documentation for each employee who performs work under this Contract. Developer shall adhere to all Federal and State laws as well as establish appropriate procedures and controls so that no services will be performed by any Partnership employee who is not legally eligible to perform such services. PARTNERSHIP, TO THE EXTENT PERMITTED BY APPLICABLE LAW, SHALL IDEMIFY LENDER AND HOLD LENDER HARMLESS FROM ANY PENALTIES, LIABILITIES, OR LOSSES DUE TO VIOLATIONS OF THIS PARAGRAPH BY PARTNERSHIP, PARTNERSHIP'S EMPLOYEES, SUBCONTRACTORS, AGENTS OR LICENSEES. Lender, upon written notice to Partnership, shall have the right to immediately terminate this Contract for violations of this provision by Partnership. 26. COUNTERPARTS. This Contract may be executed in multiple counterparts, each of which shall be considered an original, but all of which shall constitute one instrument which may be sufficiently evidenced by one counterpart. 27. Partnership as an Independent Contractor. HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 44 Partnership shall operate hereunder as an independent contractor and not as an officer, agent, servant or employee of City. Partnership shall have exclusive control of, and the exclusive right to control, the details of the work and services performed hereunder, and all persons performing same, and shall be solely responsible for the acts and omissions of its officers, members, agents, servants, employees, contractors, subcontractors, vendors, tenants, licensees or invitees. 28. Doctrine of Respondeat Superior. Partnership agrees that: the doctrine of respondeat superior shall not apply as between City, Partnership, and, any officers, members, agents, servants, employees, contractors, subcontractors, vendors, tenants, licensees or invitees. Partnership agrees that nothing herein shall be construed as the creation of a partnership or joint enterprise between City and Partnership. It is further understood that City shall in no way be considered a Co -employer or a Joint employer of Partnership or any officers, agents, servants, employees or subcontractor of Partnership. Neither Partnership, nor any officers, agents, servants, employees or subcontractor of Partnership shall be entitled to any employment benefits from City. Partnership shall be responsible and liable for any and all payment and reporting of taxes on behalf of itself, and any of its officers, agents, servants, employees or subcontractor. City does not have the legal right to control the details of the tasks performed hereunder by Partnership, its officers, members, agents, employees, contractors, subcontractors, vendors, licensees or invitees. 29. Partnership Property. Partnership agrees that City shall under no circumstances be responsible for any property belonging to Partnership, any officers, members, agents, employees, contractors, subcontractors, vendors, tenants, licensees or invitees that may be lost, stolen or destroyed or in any way damaged and Partnership, TO THE EXTENT PERMITTED BY APPLICABLE LAW, AND DEVELOPER HEREBY INDEMNIFIES AND HOLDS HARMLESS CITY AND ITS OFFICERS, AGENTS, AND EMPLOYEES FROM ANY AND ALL CLAIMS OR SUITS PERTAINING TO OR CONNECTED WITH SUCH PROPERTY, SAVE AND EXCEPT THOSE ARISING OUT OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE CITY, ITS OFFICERS, AGENTS OR EMPLOYEES. 30. Survival. Any provision of this Contract that pertains to Performance Requirements, indemnity obligations, reporting requirements, auditing, monitoring, tenant income eligibility, record keeping and reports, City ordinances, compliance with any federal obligations, and any default and enforcement provisions necessary to enforce such provisions, shall survive the termination of this Contract for the longer of (i) 5 years after the termination date of this Contract, or (ii) 5 years after the termination of the Performance Period unless a different survival period is specifically set forth herein, and shall be enforceable by City against Partnership. 31. Prohibition on BovcottinL, Energv Companies. HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 45 Partnership acknowledges that in accordance with Chapter 2274 of the Texas Government Code, as added by Acts 2021, 87th Leg., R.S., S.B. 13, § 2, the City is prohibited from entering into a contract for goods or services that has a value of $100,000 or more that is to be paid wholly or partly from public funds of the City with a company with 10 or more full-time employees unless the contract contains a written verification from the company that it: (1) does not boycott energy companies; and (2) will not boycott energy companies during the term of the contract. The terms "boycott energy company" and "company" have the meaning ascribed to those terms by Chapter 2274 of the Texas Government Code, as added by Acts 2021, 87th Leg., R.S., S.B. 13, § 2. To the extent that Chapter 2274 of the Government Code is applicable to this Agreement, by signing this Agreement, Partnership certifies that Partnership's signature provides written verification to the City that Partnership: (1) does not boycott energy companies; and (2) will not boycott energy companies during the term of this Contract. 32. Prohibition on Discrimination Against Firearm and Ammunition Industries. Partnership acknowledges that except as otherwise provided by Chapter 2274 of the Texas Government Code, as added by Acts 2021, 87th Leg., R.S., S.B. 19, § 1, the City is prohibited from entering into a contract for goods or services that has a value of $100,000 or more that is to be paid wholly or partly from public funds of the City with a company with 10 or more full-time employees unless the contract contains a written verification from the company that it: (1) does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association; and (2) will not discriminate during the term of the contract against a firearm entity or firearm trade association. The terms "discriminate," "firearm entity" and "firearm trade association" have the meaning ascribed to those terms by Chapter 2274 of the Texas Government Code, as added by Acts 2021, 87th Leg., R.S., S.B. 19, § 1. To the extent that Chapter 2274 of the Government Code is applicable to this Agreement, by signing this Agreement, Partnership certifies that Partnership's signature provides written verification to the City that Partnership: (1) does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association; and (2) will not discriminate against a firearm entity or firearm trade association during the term of this Contract. 33. Waiver of Immunitv by Partnership. If Partnership a charitable or nonprofit organization and has or claims an immunity or exemption (statutory or otherwise) from and against liability for damages or injury, including death, to persons or property, Partnership hereby expressly waives its rights to plead defensively such immunity or exemption as against City. This section shall not be construed to affect a governmental entity's immunities under constitutional, statutory or common law. 34. ELECTRONIC SIGNATURES. This Agreement may be executed by electronic signature, which will be considered as an original signature for all purposes and have the same force and effect as an original signature. For these purposes, "electronic signature" means electronically scanned and transmitted versions (e.g. HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 46 via pdf file or facsimile transmission) of an original signature, or signatures electronically inserted via software such as Adobe Sign. [SIGNATURES APPEAR ON NEXT PAGE] HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P Page 47 [Executed effective as of the date signed by the Assistant City Manager below.] [ACCEPTED AND AGREED:] City of Fort Worth: By: Name: Dana Burghdoff Title. Assistant City Manager Date: PARTNERSHIP: COLUMBIA RENAISSANCE SQUARE III, LP, a Texas limited partnership By: Columbia Renaissance Square III Partners, LLC, a Georgia limited liability company, its general partner By. Name. Carmen Chubb Title: President Date: CITY OF FORT WORTH INTERNAL ROUTING PROCESS: Approval Recommended: By: Name: Kacey Bess Title: Director, Neighborhood Services Approved as to Form and Legality: By: Name: Leslie Hunt Title: Senior Assistant City Attorney Contract Authorization: M&C: 24-1025 HOME DEVELOPER RENTAL CONTRACT Columbia Renaissance Square III, LT Contract Compliance Manager: 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. By: Name: Chad LaRoque Title: Housing Development Manager City Secretary: By: Name: Jannette S. Goodall Title: City Secretary Rev. May 2025 Signature Page [Executed effective as of the date signed by the Assistant City Manager below.] [ACCEPTED AND AGREED:] City of orth: All By: Natnv: Dana UuTgfid6ff --itie- Ass' sta t CiV Man a er Date: PARTNERSHIP: COLUMBIA RENAISSANCE SQUARE III LP, a Texas limited partnership By: Columbia Renaissance Square III Partners, LLC, a Georgia limited liability company, its general partner By: Name: Carmen Chubb Title: President Date: CITY OF FORT WORTH INTERNAL ROUTING PROCESS: Approval Recommended: By: b,4& Name: Kacey Bess Title: Director, Neighborhood Services Approved as to Form and Legality: By: Le ie unt(Ju116,2025�CDT) Name: Leslie Hunt Title: Senior Assistant City Attorney Contract Authorization: M&C: 24-1025 HOME DEVELOPER RENTAL CONTRACT Columbia Renaissance Square III, L.P Contract Compliance Manager: 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. y-, 9,v— Y: Chad LaVoque (Jul 16, 2025 09:58 CDT) Name: Chad LaRoque Title: Housing Development Manager City Secretary: 4FORTq�C G � 1 �O9o, /.g Opa o=0 �cygTExaega By: Name: Jannette S. Goodall Title: City Secretary OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX Rev. May 2025 Signature Page EXHIBITS: Exhibit "A" — Project Summary Exhibit "A-1" — HUD Rent Limits Exhibit "A-2" — Environmental Mitigation Action Exhibit "B" — Budget Exhibit "C" — Construction and Reimbursement Schedule Exhibit "D" — Audit Requirements — Not Applicable Exhibit "E" — Loan Documents Exhibit "F" — Reimbursement Forms Exhibit "G" — Project Compliance Report: Rental Housing Exhibit "H" — Federal Labor Standards Provisions — Davis -Bacon Requirements Exhibit "I" — Section 3 Reporting Forms Exhibit "I-1" — Section 3 Project Service Area Map Exhibit "J" — Standards for Complete Documentation Exhibit "K" - Contract and Subcontract Activity Reporting Form Exhibit "L" - Land Use Restriction Agreement Exhibit "M" - VAWA Forms Exhibit "N"— HOME Requirements Exhibit "O"--Build America Buy America Forms HOME CONTRACT Rev. July 2025 Columbia Renaissance Square III, L.P List of Exhibits Page EXHIBIT "A" PROJECT SUMMARY Columbia Renaissance Square III Capitalized terms not defined herein shall have meanings assigned to them in the Contract. DESCRIPTION: Partnership will use HOME Funds for a portion of the costs to develop Columbia Renaissance Square III, an affordable housing development for families to be located at 2757 Moresby Street, Fort Worth, Texas, 76105. The Project will have a total of approximately 100 units all of which are affordable, targeting different income brackets for those earning no more than 80% of the Area Median Income (AMI). Ten (10) units are set aside as Deeply Affordable. The development will consist of 30 one - bedroom, 40 two -bedroom, and 30 three -bedroom units with community and activity space including a business center and landscaped courtyards. In consideration for the HOME Funds, Partnership agrees to provide the following information and meet the following requirements: • Designate 7 Accessible Units in accordance with Section 504 requirements and the terms of the Contract, of which 5 must be accessible to individuals with mobility impairments, and 2 must be accessible to individuals with visual or hearing impairments. Accessible Units shall be marketed in accordance with Section 7.7 of the Contract. • Designate 10 floating HOME Units in the project. Of these 10 HOME Units, 7 will be High HOME Units and 3 will be Low HOME Units. HOME Rents will be charged in accordance with the rents set forth in Exhibit "A-1" — HUD Rent Limits, published annually by HUD, and shall not exceed the Low HOME Rent. • Submit Exhibit "G" - Project Compliance Report: Rental Housing regarding the household income, size, race, ethnicity, gender of head of household, disability status, and rental assistance type for the initial tenant of the first HOME Unit to be leased. LENDER WILL WITHHOLD 10% OF THE HOME FUNDS UNTIL LENDER VERIFIES THAT ALL HOME UNITS ARE LEASED TO HOME ELIGIBLE HOUSEHOLDS. • If the HOME Units do not qualify as affordable rental housing immediately upon lease -up or at any time during the Affordability Period, Lender may invoke any remedies provided in the Contract or the Loan Documents. • Submit to Lender, throughout the Affordability Period, a copy of its annual audit and annual reports that are submitted to TDHCA. SPECIFIC PURPOSE: The specific purpose of this project is to benefit low- and moderate -income individuals and families by providing them with affordable housing. PROJECT OBJECTIVES: The project will support the need for the construction of 100 affordable housing units as further detailed in Fort Worth City Secretary Contract Number 63276. HOME CONTRACT — EXHIBITS Rev. July 2025 Columbia Renaissance Square III, L.P Pagel EXHIBIT 66A-1" HUD RENT LIMITS Columbia Renaissance Square III U.S DEPARTMENT OF HUD STATE:TEXAS PROGRAM Fort Worth -Arlington TK EM Metro FMR Area LOW HOME RENT LIMIT NA HIGH HOME RENT LIMIT 1028 For Information Only; FAIR MARKET RENT 1028 50k RENT LIMIT NA 654 RENT LIMIT NA 2025HOME PROGRAM RENTS EFFICIENCY 1 BR 2 BR 3 BR 4 BR 5 BR 6 BR 933 1000 1201 1387 1547 1708 1867 1194 1281 1539 1769 1954 2137 2321 1371 1461 1705 2256 2752 3165 3578 933 1000 1201 1367 1547 1708 1867 1194 1281 1539 1769 1954 2137 2321 Effective June 1, 2025 *Rent limits are published annually by HUD. HOME CONTRACT — EXHIBITS Rev. July 2025 Columbia Renaissance Square 111, L.P Page 2 EXHIBIT "A-2" ENVIRONMENTAL MITIGATION ACTION Columbia Renaissance Square III HOME Funds may be reimbursed for exempt activities; however, HOME funds will not be paid, and costs cannot be incurred, until Lender has conducted and completed an environmental review of the proposed project site as required under 24 CFR Part 58. The environmental review may result in a decision to proceed with, modify, or cancel the project. Further, Developer will not undertake or commit any funds to physical or choice limiting actions, including property acquisition, demolition, movement, rehabilitation, conversion, repair or construction until satisfactory completion of environmental review and receipt by Lender of an authorization to use grant funds from HUD under 24 CFR Part 58. Special conditions, procedures, and requirements identified for the project may include and are not limited to mitigation of any adverse effects identified by the environmental review process. The special conditions, procedures, and requirements may differ and are subject to approval by Lender and HUD. Environmental Mitigations are as follows: Lender will provide Developer the executed environmental review record and certifications. Developer agrees to abide by the special conditions, procedures, and requirements of the executed environmental review certification approved by HUD. Law, Authority, or Factor Mitigation Measure Contamination and Toxic Site contamination was evaluated as follows: ASTM Phase I ESA. On -site or nearby Substances toxic, hazardous, or radioactive substances that could affect the health and safety 24 CFR 50.3(i) & 58.5(i)(2)] of project occupants or conflict with the intended use of the property were not found. Radon analysis indicated elevated levels of radon or consideration of radon will occur following construction. Adverse radon impacts can be mitigated through post -construction testing. Radon results, along with any needed mitigation plan* must be provided to the City no later than six months after construction. *Mitigation plan required for radon levels at 4.0 pCi/L and above. Mitigation requirements include all clean-up requirements required by applicable federal, state, tribal, or local law. Additionally, the long-term operations and maintenance plan, Remedial Action Work Plan, and other equivalent documents are required. HOME CONTRACT — EXHIBITS Rev. July 2025 Columbia Renaissance Square III, L.P Page 3 EXHIBIT "B" BUDGET Columbia Renaissance Square III Sources Priority Source # Funding Description of Lien Financing Financing Participants Tarrant County Housing Finance Corporation and 1 Conventional Loan 1 st $7,982.000 Citibank, N.A. HOME Investment 2 Partnerships (HOME) 2 d $2,523,547 City of Fort Worth American Rescue Plan Act 3 (ARPA) 3rd $1,500,000 City of Fort Worth Emergency Rental 4 Assistance 2 (ERA2) 4th $4,000,000 City of Fort Worth Community Foundation 5 Philanthropic Financing 5th $1,500,000 of North Texas Columbia Residential 6 Interest Earnings N/A $490,967 Communities 7 LIHTC Equity N/A $12,514,125 National Equity Fund Columbia Renaissance 8 Deferred Developer Fee N/A $1,461,363 Square III, LP TOTAL SOURCES OF FUNDS $31,972,002 Uses Use # Purpose Amount 1 Predevelopment $124,073 2 Acquisition $1,500,000 3 Construction $20,296,869 4 Financing & Financing Fees $2,760,337 5 Local Government Fees $218,246 6 Tax Credit and Equity Costs $186,730 7 Professional Services $1,456,950 8 Start Up and Reserves $1,745,396 9 Developer Fee $3,608,401 10 Other $75,000 TOTAL USES OF FUNDS $31,972,002 HOME Funds Budget Construction Hard Costs $2,271,192 Holdback $252,355 TOTAL $2,523,547 HOME CONTRACT — EXHIBITS Rev. July 2025 Columbia Renaissance Square III, L.P Page 4 EXHIBIT "C" CONSTRUCTION AND REIMBURSEMENT SCHEDULE Columbia Renaissance Square III Phase* IActivity HOME Funds • Preparation and submission to TDHCA for 4% tax credits and multifamily revenue bonds Predevelopment and Real • Architectural and engineering Estate Closing procurement and fees COMPLETED by: July 18, • Procurement of lender/investor $0.00 2025 and underwriting • Procurement of contractor • Closing activities associated with 2757 Moresby St. 25% Construction Completion COMPLETED BY: Construction activities $1,000,000 October 31, 2025 50% Construction Completion COMPLETED BY: • Construction activities $750,000 February 28, 2026 75% Construction Completion COMPLETED BY: • Construction activities $521,192 May 31, 2026 100% Construction Completion • Construction complete COMPLETED BY: • C/O Issued $252,355 September 30, 2026 • Leasing begins TOTAL HOME FUNDS $2,523,547 *Contractor/subcontractor/vendor searches under the Federal System for Award Management (www.sam.Qov) and Complete Documentation as specified in Exhibit J" must be submitted prior to any reimbursement under the Phase. HOME CONTRACT — EXHIBITS Rev. July 2025 Columbia Renaissance Square III, L.P Page 5 EXHIBIT "D" AUDIT REQUIREMENTS Columbia Renaissance Square III CITY OF FORT WORTH NEIGHBORHOOD SERVICES DEPARTMENT AUDIT REQUIREMENTS Organizations expending $1,000,000 or more in federal awards (from City of Fort Worth and other funding sources) during their fiscal years shall submit to City an annual audit prepared in accordance with specific reference to 2 CFR Part 200. The audited time period is the organization's fiscal year, and not the City of Fort Worth's funding period. The audit shall be conducted by a certified public accountant ("CPA") that is licensed at the time of the audit by the appropriate regulatory body. The CPA shall meet all of the general standards concerning qualifications, independence, due professional care and quality control as required by Government Auditing Standards, including the requirements for continuing professional education and external peer reviews. Auditor selection must adhere to federal procurement requirements. A separate supplementary schedule of revenues, expenditures and changes in fund balance for each City of Fort Worth contract is no longer required. The Schedule of Expenditures of Federal Awards should list City of Fort Worth 's contract numbers, the total expended for each individual federal program, and the Assistance Listing Number (formerly known as the Catalog of Federal Domestic Assistance [CFDA] Number. The independent auditor's report should include all of the relevant items listed on the "Single Audit Report Checklist." All organizations that receive a City of Fort Worth award must submit the provided Audit Certification Form which certifies whether you are subject to a single audit. Organizations receiving federal awards from the City of Fort Worth who are not required to have a single audit shall certify in writing to the City. The organization's Chief Executive Officer or Chief Financial Officer shall make the certification within 60 days of the end of the organization's fiscal year in the year that the Project was completed. Failure to submit any of these items by the required due date may result in holds on current draw requests, suspension of the organization's contract(s) and eligibility for future funding. If the organization does not meet the requirements of having a single/program audit conducted, records must still be kept available for review or audit by City staff (OMB A-133 Subpart B Sec 200(d). If additional information is needed concerning the audit requirements, please call (817) 392-7540 and ask for the Senior Contract Compliance Specialist. HOME CONTRACT — EXHIBITS Rev. July 2025 Columbia Renaissance Square III, L.P Page 6 CITY OF FORT WORTH NEIGHBORHOOD SERVICES DEPARTMENT SINGLE AUDIT REPORT CHECKLIST The items listed below should be submitted to the City of Fort Worth Neighborhood Services Department Compliance Division within the required timeframe: Due 60 days after oraanization's fiscal year end in the vear that the Project was completed. ❑ General Purpose or Basic Financial Statements of the Organization Opinion/Report on Organization's Financial Statements in accordance with Government Auditing Standards ❑ Notes to the General Purpose or Basic Financial Statements of the Organization ❑ Opinion/Report on Schedule of Expenditures of Federal and State Awards ❑ Two copies of the audit reports issued by the CPA ❑ Two copies of any management letter issued by the CPA in conjunction with the audit report. Two copies of comments by management concerning all findings and recommendations included in management letter, including a corrective action plan. ❑ Two copies of management's comments on all findings, recommendations, and questioned costs contained in the audit report and management letter, including a detailed corrective action plan. HOME CONTRACT — EXHIBITS Rev. July 2025 Columbia Renaissance Square III, L.P Page 7 CITY OF Fort Worth NEIGHBORHOOD SERVICES DEPARTMENT Audit Certification Form Due within the earlier of 30 days after receipt of the auditor's report or nine months after the end of the audit period. Developer: Fiscal Year Ending: Month Day Year ❑ We have exceeded the federal expenditure threshold of $1,000,000. We will have our Single Audit or Program Specific Audit completed and will submit the audit report within nine (9) months after the end of the audited fiscal year. ❑ We did not exceed the $1,000,000 federal expenditure threshold required for a Single Audit or a Program Specific Audit to be performed this fiscal year. (Fill out schedule below) Must be filled out if Single Audit or Program Audit is not required: Federal Expenditure Disclosure Federal Funds Pass Through Program Name & Federal Grantor Grantor Assistance Listine Number Total Federal Expenditures for this Fiscal Year Printed Name Contract Number Expenditures Title (Must be CFO, CEO or equivalent) Authorized Signature (Must be CFO, CEO or equivalent) Phone Number Date Failure to submit this or a similar statement or failure to submit a completed single audit package as described in the audit requirements by the required due date will result in suspension of funding and will affect eligibility for future funding. HOME CONTRACT — EXHIBITS Columbia Renaissance Square III, L.P Rev. July 2025 Page 8 EXHIBIT "E" LOAN DOCUMENTS Columbia Renaissance Square III • Deed of Trust • Promissory Note Filed separately with the City Secretary's Office as addendums to CSO#63276 HOME CONTRACT — EXHIBITS Rev. July 2025 Columbia Renaissance Square III, L.P Page 9 EXHIBIT "F" REIMBURSEMENT FORMS Columbia Renaissance Square III Attachment I HOME INVOICE Developer: Columbia Renaissance Square III, LP Address: City, State, Zip: Project: Columbia Renaissance Square III PO.: Amount This Invoice Cumulative to Date Developer's Certification: I certify that the costs incurred are valid and consistent with the terms and conditions of the Contract between City and Developer. By signing this invoice, I certify that to the best of my knowledge and belief the data included in this report is true and accurate. It is acknowledged that the provision of false information could leave the certifying official subject to the penalties of federal, state, and local law. Signature and Date: Name: Title: HOME CONTRACT — EXHIBITS Rev. July 2025 Columbia Renaissance Square III, L.P Page 10 Attachment II City of Fort Worth Neighborhood Services Department Expenditure Worksheet Developer: Columbia Renaissance Square III, LP Project: Columbia Renaissance Square III Line No. I Date I Check No. I Pavee or Beneficiarv* I Description* Amount 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Total *Payroll must identify employee. Rent must identify tenant. Other payments should identify individuals, if applicable. HOME CONTRACT — EXHIBITS Rev. July 2025 Columbia Renaissance Square III, L.P Page 11 EXHIBIT "G" PROJECT COMPLIANCE REPORT: RENTAL HOUSING Columbia Renaissance Square III PROJECT COMPLIANCE REPORT: RENTAL HOUSING EXHIBIT "G" Project Name: Contras #: Owner Name: Reporting Period. From To is of HOME -Assisted Units: # of High HOME Units Required: # of Low HOME Units Required: 'All data reported should be consistent with requirements described in contract and any amendments Low or High # Of Date of Last Unit Te-a't s % of OVW HOME Persons Income Utility Monthly Annual Mea an Hispanic? Race Assistance Type of Lease date Unit Number Rent Unit? Tenant Name in HH # Of BRs Cert icatlon Max Rent Allowance Rem Gross Income Type -,ousetloc Type of HOUbenoa Oster r991atance Type Race I� Se�ec[ Select Select: 1 Srigle, roneloeny t .^.ectloi 3 1 White 6 AmenAl car Indlanaslal Native A White 2 Eldery 2 HOME TBRA 2 Black i AFIcar Amercar 7 Klan a Wh:e S ling e 3 Odtef'eoeral, 6•2te 3 Asian 6 Black 6 White S Tw0 parert or iota assistance d Amercan noall:Aaskan Naive 3 American IrdlanfAla6tan Native 6 Black 5 Omer 3 No assistance E Native Hawa. an:Otner Pacific sianoer 10 02w LON HOME rents Tay not exceed K% O' me adlus*d ndome of househc as at 50% of area Than r cc Te, adjul:ea for houlieiloia see ano adjusled for tenant -pals Itt tes Adattlonay. ICY HOME rents 'ray not exceed Cie 1111 HOME slanoara ra-liCh maybe Capped Dy me FMR;. At lease 2C% oT HOME UM16 In projeV..6 Ndh 5 or More HOME-36616tea units must have ION HOME rent. High HOME rents apply to all DMef HOME-ai sled urt6 and are ralcuated a6 the lesser of the ,Secton 6 Chdce VOUCherii Far Market Rent of 30% of adjusted monthly ncome -or nousenclas X 6!% are Teaar scone. adjusted -of nousehda size, and as Jstea for terafo-pale ut Ite6. Boar lie.6 of arts are puolishea by HUD, ano doh Iln: Lie Kcal Coruact rent Including rer:a a6616t3nce. exceot for "ea -based aiislstarce'Of :he LCAHOME rent WIS. Certificaton: The undersigned hereby, gives assurance that to the best of my knowledge and belie', the data ncluded in this report s true and accurate, and d is a non-profit agency, has been appnoved by C:e govern rig body of the organ zation prior to submission. This completes and s gned cocument should be submlded to the City annually per your contract A copy shou a be retaned r your files. Tde: Pint Name Sgnahre. Date: Phone No HOME CONTRACT — EXHIBITS Rev. July 2025 Columbia Renaissance Square III, L.P Page 12 EXHIBIT "H" FEDERAL LABOR STANDARD PROVISIONS - DAVIS-BACON REQUIREMENTS Columbia Renaissance Square III NOT APPLICABLE HOME CONTRACT — EXHIBITS Rev. July 2025 Columbia Renaissance Square III, L.P Page 13 EXHIBIT "I" SECTION 3 REPORTING FORMS Columbia Renaissance Square III SECTION 3 BUSINESS CERTIFICATION FORT WORTH. City- of Fart NVorth Section 1 Business Certification for C oah'a€ting Insn-ucdon: Enter the following information and select the criteria that apply to certif , your business' Section Business status. Business Information: Name of Business: Address of Business: Name of Business Oi%mer Telephone and Email of Business Owner: Type of Business: Corporation Partnership (check ope that al pFies) Sole Proprietorship Joint Venture Select from ONT of the follon-ing four options that applies: At least 51% of the business is owned and controlled by low- or very law -income persons. A low- or vrenr low-income person is an individual who earns at or below 80"F AN+lI or no more than S59,750.00 wally effect,"; June 1. 2025_ At least 51 % of the business is owned and controlled by morent public housing residents who currently live in Section "misted housing. _Over 75% of the labor hours performed for the business m-er the prior three-month period are performed by Section 3 woikers. A Section 3 worker is an urdixidual who earns at or below 80% ANT! or no more than 5.�4.'• a0,00 annually effecthT June 1.2025_ The above -named business is not a Section 3 Business Concern, but commits to meeting the Section 3 minimum labor hour benchnis: Beackmark 1 (Secton 3 Labor Hours'lotal Labor Hours-25%) Benchinark {Targeted Section 3 Labor Hours, -Total Labor Hours=5 /.) Section 3 Worker C ertificadon Report 2309 Business fk nation: I affirm that the above statements are true, complete, and correct to the best of my knowledge. I understand that businesses who misrepresent themselves as Section 3 businesses and report false information to the City of Fort Worth may have their contras terminated as default and be barred from ongoing and future considerations for contracting opportunities. I hereby certify, under penalty of law, we meet the definition of a Section 3 Business tinder federal r;egrrlations of the ULS_ Department of Housing and Urban Development at 24 CFR Part 75, and that the following information is correct to the best o£my knowledge. Print Name: Siguatiue: Date: —FOR MY USE ONLY Is the bumness a 5ectron 3 business based upon their oettifi+ate? YES NO EWPLOFERS1fUSTR€TAEVUM FORMEV TM2RSEC77ON3CO &LUNCE=FORFITEYEARS. eiry of car warm Neu kb uihaoCSenn resnepr Effective as of .May 2025 HOME CONTRACT — EXHIBITS Rev. July 2025 Columbia Renaissance Square III, L.P Page 14 yI Section 3 WorteradrarS.-d Section 3 Wenker Certih000n Ba[k Mrad: Section 3 is a prevision of lM ',I that promotes oG economic 11, 1 1 IIII ! 1• rrevem spert. and individual self —Rid ms I, !,I Iatpible Sectian3requimthathetityaf Fort Wroth 'lII J as� Anl a ,,, 1: I . I' . am, I .I n: izbnce le.g., II 1. I'',. I I pro(tam fundsl p rsv Ov II I I I III a IIII Ind employment opport mes to eIw-or very k—ircorne a e p n e t :I I w I; I m .. 11. 1 Im l provide in thear neighborhoods, Deere —trecturs receiving CFW fun die affor<s to comply with this program. Th I I„I . I I I I III hoer business entities certify the Section 3 status of their employees and I . I I' I I . n I :I IpportSec ion 3—PWyrnent goals- � TW(1 Project Name and Address:1 _H Business Information Name of 13mntls: II Address. I I Zen. of ConbR s Contact Telephone: ' CeriaR Erred: I AS Il0IN— :er I, 1111 IIA. IA 0 1111,11 II 11 i 111 .,;I II i IIA II 1111111 Pmt Proje Start Date: Pteporting Pcnod:I E Employee Neme Employee 4ddress Section 3 — I4 ee Date d r�Kd by lie Bmioe Wahin the Pest 5 Years lives within the Service Area Noudy Youth Build W pate or Me Neighborhood of the t °3e JeR O�On Fulltime Wye pate Annudi ( "d) Low- krcorna Worker Total No. of Labor Nours Cemtrrrmon Professiond Serv:ee �T"etd S-- 3 Warner Section 3 Worker No No INo I I I I No Ne Ne No No lNo No No No No No No No No No No No No No No No No No No No No No No No No Ne No No Na No No No No Na Na No No No No No Ne No No No No Ne No No I J No Ne I I I 1 No No No No No No No No No 1 No No No I I No No No I I I I No No No NO No No I No No No No No No No No No No No No I I J I I Ne _ I No No No No No I Ne No No No No No J No No No No No No I / Tool Labor hours 0001 0.00 HOME CONTRACT — EXHIBITS Rev. July 2025 Columbia Renaissance Square III, L.P Page 15 Gwls summary HUD heel $.Cloth 3 6oab to FOW —pi— pile —) accourrtablefartheir eHorss M support the pro6ram.The fioalz see arc Mx ZS%of Me total labor FOLr_ po ad a e pertormetl by Section 3 eskers and Mat SY of the taco. labor Fours rcpartetl ae.fermM W Ta.eeMd Sarzion 3 wnharz I� D-IToMl—Haas mane m eu anxu sIw srnx�mm ao uw sign.. a as m nab i dmeMe oml ba rwz. Goal nren i rtleart 25Y o£Me Pmletx M1ours arc xrributed to action 3 Workers. I O.mI Se on 3 W.— labor H. 6dV D! Y W To d abor Ice mrmeuanchM EoyuDevnwe'6ea:dCt oenvvanaao.ner mmWusotrmpmemu� aiab NFatlirm ortrTay.anpamMaefeeybmahaeavlwea mm ent 000a�rtnv f<ers areoub _v,zet or. aan dzeeryomIsmuo-nif itTyafmdaeep.bebnraemr .nHHOza Mw aaaFraemamploolyamz eoGGnfooxddanbMMvtlmaettre?Tas �naircr� macPWPodrtadv��S'nieni n�thioume_n moOQ3t eviWfiGfareraroirtteharineeweawrsicfe .mSe5% afmollaartownsndHmc. —yazenGmowrnedelnapbnjueesemtseeahetM— . noytelIl.omew i—Hifuftroim—t, mEndeYtm.aialrn CurtdI .mI v3WHuA—, er � De,�eaenna P.ee �a I F.t P>,nar x camw.nds. earn corn craac..ncnm.n�tnvey coerce. aearat.s,oac caammParswe arancana, w.rw.d eepocaenru are..:an.er I - if either coal was not met lmeanine the .cal labor hours cell i,, yellowl..1.... ... lam your efforts to meet the unmet coal. you may reference the above events held and activities Und.—M.. flf[siness Affirtnadon: . um complete. and cor.ect to Me bestdmy knowlerta�lundersbnd Mxbusinesus who misrcprazantiniw.nae:w+abu.rt tFer emptvraesa - CitydFum Wa.M ones boos Me. nnin a: defwH antl b<barretl tram on6oiri6 and tutu. oonatle .s far musts S opportvnm— I hereby certify, antler penalty of law. we meet tFe debnnion ,Fa Seca« 3.uzinazs antler hderal ra6u1ations of tfc US. Department of itar 6 nd Urban Desabpmentx26 CfR PatTS-a�sdthrt Mefdbwin6info.m..bon ucor.ecttoMabetoimyb,vwled6a- O m N. S�nawrc. Dxc Definlllons Forthe purposes of this report. a low orverylow-income worker is one who cams at or bei— W% and 50% of the sees median income {AMI), respectively. F«fixal year 2021, HUD has established a low income salary for an individual as no more than $45,300.00 annually (effective April 1, 2021). Out--h efforts ind.dr but are not limited to the f. l..vi erg: {ij E.p;;. in .umeach efforts to Generate job 6ppl'carts who arc Targeted Section 3 workers {2j P prided training or apprentim h ip opportunities. {3j P—,ded techniol assisbncr to help Section 3 workers compete Tor jab: (eG., resume assistance, coxhing). {5: Held one «more job fares. {Sj Provided assistance to appN forjw amend comm—AN college, a four-year educatimd ins titution, or v.oti—V rech of tni i G. {6j P—ided techniol assistance to help Section 3 business c.rxerns understand and bid.n contracts. {7j Divided contracts into smaller jobs to facilitate participation by Section 3 business .mecums. Prafesd.nA se n—means noncanmuction services that require an advanced decree « pr.fersi.n.1 licensing, including, but not limited to, twntracts for )eg:'�. sery es, financial consulting, xcou nting services, ernironmental asessment,—hi—ral services. and evil engineering sconces. professional service hours are eaduded from the total labor hours but can be included in the Section 3 or Targeted S—on 3 Labor hours i the employee meets the definition of a Section 3 «Targeted Section 3 worker. A Section 3 business is one that meets of least cum of the fogowing criteria. documented within the prior sia-month period of submitting the certif .bon and report: {1j At least 11% owned and ontr.11ed by I — or very low-income persons; OR {2j Over 75%.F the labor hours performed for the business over the pri«three-month period are performed by Section 3 workers OR {3j It is a buimess at least 51% owned and controlled by cument public housing residents or residents who cuemntiy live in Section 3-assisted Fouling. A Section 3 worker is arty worker who currc.tfy Fits or when hsed within the past five years fit M least — wF the following categories, as documented: {1j The workei s income for the previous or annudined caleM ar year is below the irc«nr limit established by HUD; OR {2j The works is eon pi Wd by a certified Section 3 busines:OR {3j The worker is a Ymthguild participant. ATwgeted Section3 woekerf« pmj«ts receiving horsing and mmmunicty developmertt financial aszimrce meats a Section $worker who: {Sj is employed by a Section 3 busincs; OR {2j currently fits or when hired fit at least one of the following oteg.res, as documented within the past five years: {] Living within the service area «the neighborhood of the project or {ilj AYouthBldld participant HOME CONTRACT — EXHIBITS Rev. July 2025 Columbia Renaissance Square III, L.P Page 16 EXHIBIT "I-1" SECTION 3 Project Service Area Map Columbia Renaissance Square III Columbia Renaissance Square III I -Mile Buffer Radius Maddox Ave E ell, Derr} S, f M£L,F, Berry % E 4viti�a� 'i M semmar1 �', -V i olur ffer FLIRT WORTH. Il ®��m6in fxendissdnee 0 UCC squdee as 2,000 Feet I i I HOME CONTRACT — EXHIBITS Rev. July 2025 Columbia Renaissance Square III, L.P Page 17 EXHIBIT "J" STANDARDS FOR COMPLETE DOCUMENTATION Columbia Renaissance Square III Fo T WORTH. Standard of Documentation for Reimbursement of Development Costs Cost Type Documentation Standard Acquisition of Real Property ■ Notice to Seller (date must be cn or before the date cf options agreeme-it or sales contract and signed by the buyer anc seller) ■ Recorded deed of Trust ■ Purchase Agreement w/ Required HUD language ■ MasterSettlement Statement/ HUD-1 ■ Appraisal or other document used to determine purchase price ■ Proof of Payment (i_e_, bank state me nt/ca ncelled check) ■ Verification of Vacant Status (as applicable) Pre -Development and Soft . Invoice should include: Costs (Architect, Engineer, ■ date; Landscape Design, Surveys, ■ company's letterhead; Appraisals, Environmental, Legal ■ address for which service is provided; Fees, Other Consultants, Etc-) ■ description of service(s) and itern(s); ■ amount for itemized services; and ■ total amount ■ Proof of Payment (i_e_, bank statement or cancelled check) ■ Fully executed contract/service agreements/ letter agreements a n d applicabl e a mend me nts o Provide printout from www_sam_eovverifying cont ractorfsubcontractoris not listed on the debarred and Stispe-ision list ■ If only a portion is oeing paid with City funds, then show calculation and documen`ation of hove costs are allocated_ [Neighborhood Services FINAL as of 6/2 1f 2017 Page 1 HOME CONTRACT — EXHIBITS Columbia Renaissance Square III, L.P Rev. July 2025 Page 18 FoRT WORTH Standard of Documentation for Reimbursement of Development Costs Constructicn Costs - Invoiceshould include: (Contra ors & 5ubcontractors� ■ date; ■ company's letterhead; ■ address for wh ch service is provided; ■ description of service(s) and item(s); ■ a mount for itemized services; and ■ total amount Proof of Payment (i_e_, bank statement or cancelled check) Copy of applicable inspection re port(s) conducted by NSD Inspector Copy of executed agreements ■ Provide printout from www-sarn_dzavverifying contractor/subcontractor is not listed on the debarred and suspension list If only a portion is being paid with sty funds, then show calculation and documentation of how costs are allocated_ For payment of final retainagefor the prime contractor, provide lien vuaivers foe the prime and all subcontractors_ List of subcontractors [Materials Purchased by Developer - invoice sh o u Id include: (if applicable) ■ date; ■ company's letterhead; ■ addressfor which service is provided; ■ description of service(s) and item(s); ■ a mount for itemized services; and ■ total amount Proof of Payment (Le_, bank statement or cancelled check) Verification of delivery Developer Fee - Final Invoice Reflecting Total Development Cost (if paid directly from HOME funds) - Proof of payment for any other entityffunding source contributing to developmertcosts Show calculation of agreed upon developer fee percentage Copies of final Iien releases from contractor{subcontractor Complete Documentation incomeeligibility of buyers/renters (i.e_, income documents for eligible homebuyeritenants, sales contract between d evelo per/homebuyer, HAP Deed of Trust with required affordability period language, etc_) Lease documents Final inspections of completed units Neighborfiood S arvices FINAL as of 6/2 1/2017 Page 2 HOME CONTRACT — EXHIBITS Rev. July 2025 Columbia Renaissance Square III, L.P Page 19 W Contract and Subcontract Activity U.S. Department of Housing and Urban Development OMB Approval No.: 2535-0117 (exp. 113112013) Public Reporting Bunten for this collection of information m estimated to average .50 Mum per response, Including the time for reviewing instructi—, searching existing data sources, gamenng and maintaining the data needed, and completing and reviewing the collection of Information. This information 6 voluntary. HUD may not collect this information, and you are not required to complete this form. unless a displays a currently valid OMB Control Number, Executive Order 12421 dated Jury 14. 1983, directs the Minority Business Development Plans shall be developed by each Federal Agency and that these annual plans shall establish minority business development objectives. The information is used by HUD to monitor and evaluate MBE a WRIes against the total program activity and MDepartment e designated minority business enterprise (MBE) goals. The Deparent requires Me information to provide guidance and oversight for programs for Me development of minority business enterprise ming Minority Business Development. 9 the information is not collected HUD would not be able to establish meaningful MBE goals nor evaluate MBE perlor lance against these goals. While no, assurances of confidentiality is pledged to respondents, HUD generally discloses this data only in response to a Freedom of Information request. Privacy Act Notice - The United States Department of Housing and Urban Development, Federal Housing Administration. a authorized to solicit the information requested in this form by virtue of T le 12, Untied States Code, Section 1701 et seq., and regulations promulgated thereunder at Title 12, Code of Federal Hegulallons. It will not be disclosed or released outside the United States Department of Housing and Urban Development without your consent, except as required or permitted by law. 1. GranwWProjactc—,r vabl USporxuxHi—gency Chxk tl: 2. Lo In(Cm, Seta. ZIP D l PHA IHA 3a. Name of Confect Parson 30. Phone Number 1—udng Area Coda) 6. Rapomrg P S. Program Coon (Not ig,0 bla for CPD pogroms.) 6. Dele S—.d to Rat ORiro Oct. 1 - Sept. 30 (Annual-FY) sea exgenar n of Moms at bosom a page. Use a separate sheet for each program code. Conlieaoror Grimr Project Number or Anwunl of Typed Subcontractor Woman Prime Contractor Sac. Subcoamcor Sit HUD Case Number or Corn— Tiede Business Oxrwd Identi! llon(ID) 3 Iden4fi illxi(ID) 3 .msr-rtihcabonofpropeny, o,Su—t,ct Code na—Em— Business Number Number subdvlsion, dweninq unit. etc. lsee Cone (Y. or below) (Sea below) No) 7a. 7b, 7c. 7d. 7a. 71. 79. M. Ti. 7c: Type of Trade Codes: CPD: HousinglPubllc Housing: i = New Construction 1 = New Construction 6 = Professional 2 = Educationrtraining 2 = Substantial Rehab. 7 = Tenant Services 3 = Other 3 = Repair 8 = Educationrrmining a = Service 9 = Aron./Engrg. Appraisal 5 = Project Mangt. 0 = Other PMVlous editions are obsolete. W Cmtractormub,xmr—r Name and Address TI. Name Street CM State opCode 7d: BacialfEthnlc Codes: 5: Program codes (Compete for Housing and Pubic and In6an Housing progams only): 1 = White Americans 1 = All insured, including Section 8 5 = Section 202 2 = Black Americans 2 = Flexible Subsidy 6 = HUD -Held (Management) 3 = HispaNativnic Americans 3 = Sedan 8 Noninsured, Non-HFDA 7 = P1rbYdlndian Housing 5 = Hispanic Americans a = Insured (Management 5 = Ass Hasidic Jews Americans 6 = Hasidic Jews ton HUD-2516 (8/98) as a EXHIBIT "L" Land Use Restriction Agreement Columbia Renaissance Square III Filed separately with the City Secretary's Office as an addendum to CSO#63276 HOME CONTRACT — EXHIBITS Rev. July 2025 Columbia Renaissance Square III, L.P Page 21 EXHIBIT "M" VAWA FORMS Columbia Renaissance Square III Notice of Occupancy Rights under the Violence Against Women Act (Form HUD-5380) Model Emergency Transfer Plan for Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking (Form HUD-5381) Emergency Transfer Request for Certain Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking (Form HUD-5383) Certification of Domestic Violence, Dating Violence, Sexual Assault, or Stalking and Alternate Documentation (Form HUD-5382) Violence, Dating Violence or Stalking Lease Addendum (Form HUD-91067) Where permitted by federal regulations, Developer may use its own forms so long as they meet the requirements of the VAWA and its accompanying regulations. Developer is responsible for ensuring that the proper forms and required actions are taken in compliance with VAWA and any applicable regulations, and acknowledges that it is solely responsible for using the appropriate forms as they may be changed from time to time. HOME CONTRACT — EXHIBITS Rev. July 2025 Columbia Renaissance Square III, L.P Page 22 EXHIBIT "N" HOME REQUIREMENTS Columbia Renaissance Square III Capitalized terms not defined herein shall have meanings assigned to them in the Contract. Developer shall ensure that the Property Manager receives a copy of the HOME Contract which outlines the HOME Regulations. Below is an outline of the HOME Requirements that the Property Manager will be responsible for while managing the HOME Units in the project. Developer shall ensure compliance with the following and include the following requirements in its property management agreement: Property Manager acknowledges that the project operates under the HOME Program's Section 504 requirements. Accordingly, Property Manager shall exercise its commercially reasonable efforts to take the following steps to: Comply with Section 504 requirements and other federal accessibility requirements. The project must contain [7 Accessible Units. Of these, 5 must be accessible to individuals with mobility impairment, and 2] must be accessible to individuals with visual impairments. 2. Property Manager will follow the procedures given by Developer to rent HOME Units to tenants who have incomes at or below 80% AMI; provided however, the first tenant to occupy a High HOME Unit, as defined in the HOME Contract, must be a tenant whose annual income adjusted for family size does not exceed 65% of AMI. 3. Property Manager must manage the HOME Units as set forth in the chart below to ensure that they are occupied by tenants that are either High HOME Eligible Tenants or Low HOME Eligible Tenants as described in the chart. Of the 10 HOME Units, 7 must be HIGH HOME Units and 3 must be LOW HOME Units. The Low HOME Units must be occupied by households earning at or below 50% AMI. These very low-income tenants must occupy HOME Units at or below the Low HOME Rent. The mix of bedroom units for the HOME Units is shown on the chart below. The mix of bedrooms of the HOME Units must be proportional to the overall bedroom mix of all the units in the project. Property Manager must manage the HOME Units in accordance with the chart, the HOME Requirements and the guidelines contained in the Managing Rental Unit Mix Under HOME published by HUD at: htti)s:Hfiles.hudexchana_ e.info/resources/documents[Mana2in2-Rental-Unit-Mix-Under- HOME.Ddf. HOME CONTRACT — EXHIBITS Rev. July 2025 Columbia Renaissance Square III, L.P Page 23 HOME UNIT MIX Proposed Units 30 1-BR 40 2-BR 30 3-BR (100 total) High HOME Units 2 1-BR 3 2-BR 2 3-BR (7 total)* Low HOME Units 1 1-BR 1 2-BR 1 3-BR (3 total)* *The HOME Units may be designated as floating, if the HOME Units are comparable to the non -assisted units in the project. 4. Property Manager must notify Developer in writing within 30 days if any HOME Unit is occupied by a tenant who is not income eligible, or if any HOME Unit remains vacant for more than 90 days. 5. The HOME Units are floating. When a "floating" unit is changed within the project, the newly designated "floating" unit must be comparable to the non -HOME assisted units. 6. Property Manager must charge the appropriate High HOME and Low HOME rents and not charge rents in excess of the HOME Program rents for any given year. These program rents change annually and Lender will provide Developer and Property Manager with updated HOME rent limits so that rents may be adjusted (not to exceed the maximum HOME rent limits). For projects that have floating HOME Units, per HUD regulations, changes may need to be made where instances of tenant's income either rises above or falls below certain thresholds. Property Manager should refer to the Managing Rental Unit Mix Under HOME found at httDs:Hfiles.hudexchan2e.info/resources/documents[Mana2in2-Rental- Unit-Mix-Under-HOME.pdf for guidance. Property Manager should retain necessary documentation to demonstrate that each HOME Unit is occupied by an income -eligible tenant. General rental housing records must be kept on -file for 5 years after the Affordability Period, as defined in the HOME Contract, ends. 7. Before executing any lease for a HOME Unit, Property Manager must verify all new tenants' income eligibility using the annual income definition in 24 CFR 5.609. Income documentation must be sufficient to show that a tenant is a HOME Eligible Household. Tenant Documentation may include but is not limited to copies of paychecks, Social Security and disability verification letters, interest or rental income statements, retirement income statements, child support and alimony verification, unemployment benefit letters, and the like for initial tenant income eligibility verifications, and the tenant income verification required every 6tn year of the Affordability Period. Documentation for tenant income eligibility verifications for other than the initial lease and the 6th year of the Affordability Period shall be a Lender approved income self -certification form. Property Manager shall use the most current HUD Income Guidelines and Technical Guidance for Determining Income and Allowances to determine tenant eligibility. 8. Property Manager shall maintain copies of Tenant Documentation and all tenant self - certification forms as required under the HOME Contract. 9. Property Manager shall submit for Lender approval a sample tenant lease prior to accepting HOME CONTRACT — EXHIBITS Rev. July 2025 Columbia Renaissance Square III, L.P Page 24 tenant applications. This sample lease must include: a. Tenant must be given at least 30 days written notice before rent increases may be implemented, and 30 days written notice must be given notifying the tenant must vacate the unit. b. The lease term for a HOME Unit must be for at least 1 year, unless the tenant and Property Manager agree on a shorter term. c. Tenant rents may not increase until the original lease expires, or until the 1-year anniversary of tenant entering into the lease, whichever occurs first. d. HUD publishes the HIGH and LOW HOME rents annually, and Property Manager should use the numbers provided to calculate rents for the HOME Units. e. Maximum allowable HOME rents must be reduced if the tenant pays utilities. f. Tenant lease must inform tenant that their income will be reexamined annually, either at the anniversary of the initial income verification, or at lease renewal. g. Tenant lease must explicitly state that their rent may increase if the tenant is placed in a HOME Unit and at the time of income recertification, their income increases above the required thresholds. 10. Rents charged to tenants are subject to the HOME Regulations at 24 CFR 92.252 (a) and (b). Under no circumstances may the maximum rental amounts charged to tenants of HOME Units exceed the High Home Rent minus monthly allowances for utilities and services (excluding telephone) established by HUD. Property Manager agrees to abide by HUD -approved schedules of HOME rent levels and locally adopted utility allowances published by the local housing authority. Property Manager should keep records that include documentation to back up rent levels and utility allowances. 11. Property Manager must have a tenant selection policy which provides for: a. The selection of tenants from a written waiting list in the chronological order of their application, insofar as is practicable; b. The prompt written notification to any rejected applicant providing the grounds for such rejection; and bi-lingual leasing and management assistance. c. Ensure that holders of rental assistance subsidies (such as HUD's Housing Choice Voucher or similar subsidy) are not excluded from renting a unit in the Required Improvements. d. The tenant selection policy must address non-discrimination and affirmative marketing per federal guidelines. e. Market accessible units in the following order: 1. Market within the property to persons requiring an accessible unit. 2. Reference waiting list to check for persons requiring accessible unit. 3. Market to general community for persons requiring accessible unit. 4. Market to persons that do not require accessible unit. HOME CONTRACT — EXHIBITS Rev. July 2025 Columbia Renaissance Square III, L.P Page 25 The tenant selection policy must address managing HOME Unit mix under HOME Regulations. The tenant selection policy must comply with state and local tenant/landlord laws. Property Manager shall adopt affirmative marketing procedures and requirements for the HOME Units. The procedures and requirements must include methods for informing the public, owners and potential tenants about fair housing laws and policies so as to ensure that all individuals, without regard for sex, age, race, color, creed, nationality, national origin, religion, handicap status, disability, familial status, sexual orientation, gender identity, gender expression or transgender, are given an equal opportunity to participate in the project. The procedures and requirements must also include the designation of an individual that will be responsible for marketing the project and establishing a clear application screening plan and the maintenance of documentation and records to evidence affirmative marketing procedures have been implemented. Lender shall have no responsibility with regard to affirmative marketing of the project. Affirmative marketing procedures shall be submitted to Lender for approval prior to implementation. 12. Property Manager shall abide by all federal non-discrimination and fair housing laws. 13. Property Manager understands and agrees that it will be subject to monitoring by Lender for compliance with the HOME Regulations for the duration of the 20-year Affordability Period. Property Manager will provide reports and access to project files as requested by Lender during the Affordability Period and for 5 years after the end of the Affordability Period, and will meet all the reporting requirements set out in the HOME Contract. These requirements shall survive the early termination or expiration of the HOME Contract. Lender shall have access at all reasonable hours to the Property Manager's offices and records dealing with the HOME Units, and its officers, directors, agents, employees, and contractors for the purpose of such monitoring. HOME CONTRACT — EXHIBITS Rev. July 2025 Columbia Renaissance Square III, L.P Page 26 Monthly Reporting Period , 20XX- , 20XX EXHIBIT "O" Build America Buy America Compliance Template Columbia Renaissance Square III Number of Unique Items Purchased Infrastructure Item Order SKU Quantity Total Acquisition Current Project Type # Acquisition Date Location Cost Total Value of Materials Purchased 4 Description Supplier or Supplier or of how Manufacturer Manufacturer item is Name Location used in Project HOME CONTRACT — EXHIBITS Rev. July 2025 Columbia Renaissance Square III, L.P Page 27 City of Fort Worth, Texas Mayor and Council communication DATE: 11/19/24 M&C FILE NUMBER: M&C 24-1025 LOG NAME: 19COLUMBIA RENAISSANCE III CONTRACT FUNDS SUBJECT (CD 8) Authorize Financial Actions that Support Columbia Renaissance Square Phase III, an Affordable Housing Development Located at 2757 Moresby Street, Fort Worth, Texas, 76105, Authorize Execution of Loan Documents to Provide Federal Funding in an Amount Up to $8,023,547.40, and Find that the Financial Actions Supporting the Development Serve a Public Purpose and that Adequate Controls are in Place RECOMMENDATION: It is recommended that the City Council: 1, Authorize reallocation of $523,547.40 in HOME Investment Partnership Program funds to benefit Columbia Renaissance Square Phase III; 2. Authorize expenditure in the amount of $2,523,547.40 of HOME Investment Partnerships Program grant funds in the form of a subordinate, forgivable loan to Columbia Renaissance Square III, LP, or a related entity, for the development of Columbia Renaissance Square Phase III; 3. 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; 4. Authorize a subordinate, forgivable loan of up to $4,000,000.00 in Emergency Rental Assistance 2 funds and $1,500,000.00 in American Rescue Plan Act funds pursuant to the subrecipient awards to the Columbia Renaissance Square III, LP and documentation to ensure compliance with applicable federal regulations; 5. Authorize the City Manager or his designee to execute all related contracts, subawards, loan documents, and other documents necessary for lending activities and compliance with federally funded affordable housing projects; 6. Authorize the City Manager or his designee to extend the contracts if such extensions are necessary for completion of the project, and to extend all other required documents for lending activities as necessary for the development of the project; 7. Authorize the City Manager or his designee to amend the contracts and other required documents if necessary to achieve project goals, provided that the amendments are within the scope of the project and in compliance with City policies and applicable laws and regulations governing the use of federal funds; 8. Authorize that forgivable loans that support Columbia Renaissance Square Phase III can be converted to a non -forgivable loan if needed to reduce a risk of negative tax implications; and 9. Find that providing federally funded loans with 0% interest serves the public purpose of providing decent, safe, and sanitary housing for low- income residents, and that adequate controls are in place through the various loan documents and agreements to ensure the public purpose is carried out. DISCUSSION: Backaround The purpose of this Mayor and Council Communication (M&C) is to approve financial measures to support the affordable housing multifamily development, Columbia Renaissance Square Phase III (Project). This initiative supports the City's Comprehensive Plan by providing quality, affordable housing for low- to moderate -income residents while promoting economic development and revitalization in the City. The Project is part of the Renaissance Heights Master Plan, featuring mixed -use development that includes affordable housing for seniors and families, along with retail, community services, and other amenities in Southeast Fort Worth. Funding for the development will come from various sources, including the HOME Investment Partnership Program (HOME), Emergency Rental Assistance 2 (ERA2) funds, and American Rescue Plan Act (ARPA) funds. Additionally, it will be financed through 4% (non-competitive) Housing Tax Credits awarded by Texas Department of Housing and Community Affairs (TDHCA) and tax-exempt bonds through the Tarrant County Finance Corporation. Columbia Renaissance Square III, LP (Owner) is an affiliate of Columbia Residential Communities, LLC (Developer) of Atlanta, Georgia, a highly experienced multifamily tax credit developer who has owned and operated over 34 developments throughout the country. They currently own and operate the two affordable developments Columbia Renaissance Square Phase I and Columbia Renaissance Square Phase II. The Project will complete the multifamily component of the Renaissance Heights Master Plan. Columbia Renaissance Square Phase III will consist of 100 new and affordable housing units targeting different income brackets. 10 units will be designated as `deeply affordable' for individuals earning at or below 30% of the Area Median Income (AMI), 29 units for those earning between 31 % and 50% AMI, 41 units for those earning between 51 % and 60% AMI, 11 units for those eaming between 61 %-70% AMI, and 9 units for those earning between 71 % and 80% AMI. Construction of the Project will begin in February 2025 and take approximately 18 months to complete. Citv Fundina Sources HOME Investment ParnnershiD On August 8, 2023, City Council approved the 2023-2027 Consolidated Plan and the 2023-2024 Action Plan (M&C 23-0631) that committed $1,000,000.00 of HOME funds to the Project, and on June 25, 2024, City Council approved the 2024-2025 Action Plan (M&C 24-0552) which committed an additional $1,000,000.00 in HOME funds for a total award of $2,000,000.00. With the Developer facing a Project -financing gap, City staff identified $523,547.40 in unprogrammed HOME funds and published a notice of intent in the Fort Worth Star -Telegram to change the use of these federal grant funds to support the Project. The notice proposed the reallocation and included a substantial amendment to the City's 2018-2019, 2019-2020, and 2020-2021 Action Plans. The public comment period was from August 17, 2024 through September 16, 2024; no comments were received. HOME Loan Terms: 1. Loan term to commence on execution of the loan documents and terminate 40 years after Project stabilization. Payment of principal and accrued, unpaid interest will be due 40 years after Project conversion, coterminous with the final payment date of permanent loan; 2. Interest rate of zero percent so long as borrower complies with all of the terms of the contract and loan documents; 3. Performance of the HOME requirements and payment of the HOME loan, if required, will be secured by a deed of trust and HOME Deed Restrictions on the real property through the affordability period or the loan term, whichever is longer; 4. Affordability period to begin on the date the Project status is changed to "Complete" in the Integrated Disbursement and Information System (IDIS) and to continue for 20 years thereafter; 5. HOME loan to be subordinate to any constructionlpermanent financing and any financing provided by Fort Worth Housing Finance Corporation; 6. HOME -assisted units will be designated according to the HOME regulations with a 20-year affordability period; 7. HOME funds will be provided on a reimbursement basis for eligible costs only; and 8. Development and operation will comply with all HOME Regulations in 24 Code of Federal Regulations (CFR) Part 92 et seq. The expenditure of HOME funds is conditioned upon the following: 1. Compliance with all HOME requirements contained in 24 CFR Part 92 et seq; 2. Satisfactory underwriting in accordance with federal guidance for use of HOME funds and City policies for funding of HOME units; 3. Review of all other financial commitments including conventional and government loan commitments, equity commitments, etc., as well as any other sources of funds including grants; 4. Satisfactory completion of an environmental review pursuant to 24 CFR Part 58; 5. Receipt of authorization to use grant funds from U.S. Housing and Urban Development (HUD); 6. Receipt of acceptable, fully executed loan documents; and 7. Closing on all other financing for the Project. Approval of this M&C allows Action Plan funding years to vary and be substituted in order to expend the oldest grant funds first. Appropriations supporting the HOME loan will come from the annual program appropriation for the funding years against which the loan is booked. American Rescue Plan Act On September 12, 2023, City Council approved the reallocation of $3,000,000.00 in ARPA funds to be equally split between two housing projects, Columbia Renaissance Square Phase III and The Nest, after the permanent supportive housing project initially approved for the funding failed to materialize (M&C 23-0742). The $1,500,000.00 in ARPA funds to support the Project shall be specifically for the purpose of supporting the 10 deeply affordable units, with a goal to add permanent supportive housing to the Project as available. The Developer has agreed to coordinate with City staff and the local Continuum of Care to achieve this goal. ARPA Loan Terms: 1. Loan to be subordinate only to construction/permanent loans and the City's Home Investment Partnership loan; 2. Interest rate of 0%; 3. Deed of Trust and Promissory Note to secure both payment of the loan and performance of any requirements described in the loan agreement; 4. Loan to be forgiven at the end of the term given all requirements are met; 5. Term of the loan to be 20 years; and 6. Confirmation of loan commitments from other lenders satisfactory to the City. Emeraencv Rental Assistance 2 On September 12, 2023, City Council approved the acceptance of a $4,000,000.00 subaward of ERA2 funds from Tarrant County (County) (M&C 23-0742), and, subsequently, on January 23, 2 02 3, City Council approved entering into an InterlocaI Agreement with the County to administer the funds for the purpose of developing two affordable housing projects (M&C 24-0029). The Interlocal Agreement between the City and the County was executed on January 29, 2024 and specified $3,500,000.00 to go toward the Project and $500,000.00 toward a transitional housing development, Casa Mia. County staff and City staff determined Casa Mia ineligible for funding due to the nature of its program, and the County shall determine if these funds will be allocated to Columbia Renaissance Square Phase III, This M&C authorizes expenditures up to $4,000,000.00 to support the Project under the County's discretion and direction. ERA2 Loan Terms: 1. Loan to be subordinate only to construction/permanent loans, the City's Home Investment Partnership Loan, and the City's American Rescue Plan Act loan; 2. Interest rate of 0%; 3. Deed of Trust, Land Use Restriction Agreement, and Promissory Note to secure both payment of the loan and performance of any requirements described in the loan agreement; 4. Term of the loan to be 20 years; 5. Loan to be forgiven at the end of the term given all requirements are met; and 6. Confirmation of loan commitments from other lenders satisfactory to the City. Staff Recommendation Staff recommends approving the expenditure and execution of contracts and related loan documents with Columbia Renaissance Square Phase III, LP in the amount of $2,523,547.40 in HOME funds. In addition, Staff recommends approving the expenditure of $1,500,000.00 in ARPA funds and up to $4,000,000.00 in ERA2 funds through loans to Columbia Renaissance Square Phase III, LP. Through this M&C, the City Council finds that the Project serves a public purpose by assisting the City in fulfilling its goals under the Neighborhood Conservation and Affordability Plan, by providing accessible and affordable housing for low- to moderate -income residents and supporting economic development and revitalization. The Council further finds that adequate controls are in place through the various loan documents and agreements to ensure that the public purpose is carried out. Funding is budgeted in the Home (PY211FY22), American Rescue Plan Act, Tarrant County ERAP2 and the Home Grant (PY231FY24) projects within the Grants Operating Federal Fund for the Neighborhood Services Department for the purpose of providing federal funding for Columbia Renaissance Square Phase III City Project. FISCAL INFORMATION 1 CERTIFICATION: The Director of Finance certifies that funds are available in the current operating budget, as previously appropriated, in the Grants Operating Federal Fund to support the approval of the above recommendations and award of the contract. 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. These are reimbursement and fee for services grants. Submitted for Citv Manaaer's Office bv: Jesica McEachem 5804 Oriainatina Business Unit Head: Kacey Bess 8187 Additional Information Contact: Chad LaRoque 2661 Dyan Anderson 7398 Expedited FORT WORTH Routing and Transmittal Slip Neighborhood Services Department DOCUMENT TITLE: HOME CONTRACT City of Fort Worth and Columbia Renaissance Square III, LP M&C 24-1025 CPN CSO # 63276 DOC# DATE: TO: INITIALS DATE OUT 1. Dyan Anderson 07/16/2025 DVANAnde n(Ju116,202509:40CDT) 2. Chad LaRoque shad L' J�202509:SB CDT) 3. Kacey Bess Signed 07/15/2025 4. Leslie L. Hunt Le ie unt (Jul 16, 202510:19 CDT) 5. Dana Burghdoff Signed 07/15/2025 6. Ronald Gonzales k 07/16/2025 7. Jannette Goodall `�"" " A 1 07/16/2025 8. Allison Tidwell 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: X Yes ❑ No SAME DAY: i] Yes ❑ No NEXT DAY: XYes ❑ No ROUTING TO CSO: X Yes ❑ No Action Required: ❑ As Requested ❑ For Your Information * Signature/Routing and or Recording ❑ Comment ❑ File ❑ Attach Signature, Initial and Notary Tabs X Attach Signature