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HomeMy WebLinkAboutContract 38891 !rwiW'"' '""MI'fkiid GLG'k I ( Wu 4 ` ` f'r J P PyA?rrm-ycrmw Rv NO,, .. '1riUiru/Ha'MIp ,. WIIUN I' STATE OF TEXAS COUNTY OF TAR NT L THIS contract ("Contract") is made and entered into by and between the City of Fort Worth ("City"), whose address is 1000; Throel mer°ten St., Fort Worth TX 76102, ,acting by and through T.M. Higgins, its duly authorized assistant City Managerl and WOOD NT PART' E TS LTA. ("Woodm,ont"), whose address s 2 1 E. 13th street, fort Worth, Texas 776102, acting by and through Barbara Holston, the Vice President of Wind Terrace, Inc. (Sometimes City and Woodmont are referred to individually as a ``Pasty" and collectively as the ` Parties"). WHEREAS, the City of Fort worth ("City") has received a grant from the United States Department of Housing and Urban. Development ent ("HUD") through the HOME Investment Partnerships Program ("HO�ME"), Progra m No. M-0�4-MC-4 -02,04, Catalog of Federal Domestic assistance (''CFDA") No. 14.239, with which the City desires toy promote activities that expand the supply of affordable housing and the development of partnerships among the City local governments, local leaders, private industry and neighborhood-based nonprofit housing organizations* WHERE S, the primary purpose of the HOME program "HOME Program") pursuant to the HOME Investment Partnerships Act at Title 11 of the Cranston Gonzales National Affordable 4 U.S.C. 127 1 e �� ("'NAHA")1-11ousin �.et c� 1 99 , s am � c�d, �' � �" and the HOME Investment Partnerships Program Final Rule, as amended, 24 CF R Part 92 et seq. (the "HOME Regulations"" or"Regulations") is to benefit low and very-low income citizens by providing them. with affordable housing; WHEREAS, Woodm nt is a sole asset entity created for the purpose of owning and operating the Woodmont Apartments, a new affordable multifamily rental housing project, for a minimum o f thirty 3 years WHEREAS, Wcc►di-nont is a Texas limited partnership consisting of NRP Woodmont Apartments, L LC, a Texas limited liability company, as general partner and NRP Woodmont Slap, L LC, a Texas limited liability company, as Class B limited partner and Bart of America, N.A., as investor limited pa rtner the `Investor Limited Partner"'). The sole member of the general partner is Wind Terrace Inc., a. Texas nonprofit corporation created by the Fort Worth. Housing g.,authority which is the fee owner o f the land on which the project shall be constructed WHEREAS, Woodmont bas received an award of Low Income Housing Tax Credits ("LIHTC") from the Texas Department of housing and Community Affairs " `DHC " to construct the Woodmont Apartments and WHEREAS', City citizens and the City Council have determined that the development of quality, affordable, accessible rental housing is needed for moderate, low, and very low-income citizens of Fort Worth. �� nvr, rCrgmtroi,nvotivoi rti ^mwamw >t u;>p,w,IVa''ip„M;dN'm'mm'm'r �j �I��IIWVr"�' Il�pjy�,!I ��,y � hwii NPoI�zr a,w " W �m!4YyW REC 0, Ixar HOME FUNDS ��rui Pig I RY REV. 7-,28-09 Woodmont Apartments Ltd. 1"Y��y� r To wor. r ���e�+Y ,'4i'anus?,a,✓mqIfiiYM.➢lmrminrvtrunomu , ,.,—.._ ,....„ ........ ,w., nuoiwweuniarmmw NOW, THEREFORE I r FHE PARTIES AGREE AS FOLLOWS,, A., Introductory Provisions 1. Parties. The Parties to this Contract are the City of Fort Worth, Texas ("City") and Woodmont Addresses: C 0 ity 1000 Throe Orton Street Fort Worth, TX 76102 Woodmont Apartments,, Ltd. c/o Wind Terrace, Inc., 1201 E. 13 1h Street Fort Worth' 'TX. 76102 Agents: City, City Manager, or his or her duly autlion*zed representative, which will include T. M., Higgins, Assistant City Manager Woddment Barbara Holston, Vice President of Wind Terrace, Inc., sole member of NAP Woodmont Apartments, LLC, general partner of Woodmont and authorized signatory 2. Subrec,ivient. Woodmont, will operate as a subre�ciplent under this, Contract. 3, Independent Contractor. Woodmont will operate hereunder as an independent contractor and not as an officer, agent, servant or employee of City. Woodmont shall have exclusive control of and the exclusive night to control, the, details of the work and s,ervices performed hereunder, and all persons perform' ing same, and shall be solely responsible for the acts and errs sio ns of its officers, members, agents, servants,, employees, contractors, Project participants, licensees or inVitees. The doctrine of respondeat superior shall not apply as between City and Woodmont, its officers, members, agents, servants, employees,, contractors, Project participants, licensees or invitees, and nothing herein shall be construed as, creating,a partnership or joint enterprise between City and Woodmont. It is expressly understood and agreed that no officer, member, agent, employee, contractor,, licensee or invitee of either Woodmont or any Project participant is in the paid service of City and that City does not have the legal right to control the details of the tasks performed hereunder by Woodmo�nt, its officers, members, agents, employees, contractors, Project participants, licensees or, invitees,. City shall in no way nor under any ci,rcumsta,nces be responsible for any property belonging to Woodm nt, its officers, members, agents, employees, contractors, Project participants, licensees, invitees, which may be lo�s,t, stolen, destro�yed or in any way damaged and. HOME FUNDS Page 2, Woodmont Apartments Ltd. REV. 7-28-09 WOODMONT HEREBY INDEMNIFIES ANDHOLDS HARMLESS, CITY AND ITS OFFICERS, AGENTS, AND EMPLOYEES FROM AND AGAINST ANY AND ALL CLAIMS OR SUITS, PERTAINING OR CONNECTED WITH SUCH PROPERTY. 4. Purpose. The City will provide Woodmont with HOME funds ("HOME Funds") in the fo�rm of a thirty-eight (3 8) year interest bearing loan in an amount not to exceed ONE MILLION FIVE HUNDRED THOUSAND AND NO/100 DOLLARS ($1,500,000-00) for eligible costs associated with the construction (the "Loan") of the 252 unit affordable housing apartment complex commonly known as the Woodmont Apartments (the "Project"). HOME Funds must be used for eligible activities and costs, in connection, with the Project set forth in the HOME Regulations, including but not limited to, soft costs,, acquisition costs,,,, direct construction costs, architectural, engineering, attorney, consultant, appraisal and other applicab e fees directly related to carrying out the Project as well as the refinancing of such costs that were eligible initially. The Project, located at 1,029 Oak Grove Road, Fort Worth, Texas 76115 and consisting of fifteen (I 5 buildings on approximately fourteen acres of land (the "Property"), will provide rental housing for low and very low income persons. The Fort, Worth Hous,ing Authority ("FWHA") is the fee owner of the Property and shall lease it to Woodmont under a to term ground lease that will require Woodmont to construct the "improvements and lease the units. It is expressly understood and agreed that City's obligations under this Contract are contingent upon the actual receipt of adequate HOME funds and any applicable Notice Qf Removal of Grant Conditions from HUD for the Project. Should, City not receive adequate HOME funds, or the Notice,, (-.'ity shall notify Woodmont in writing and this Contract shall to mate and neither Party shall have any further rights or obligations hereunder. In the event any security, instrument has been executed and recorded in the public records, City shall promptly take all necessary steps to file the appropriate release of any such security instrument. 5. Term. The Contract term will begin on the date of its execution. Certain Contract provisions have different termination dates. (a) The City"s obligation to provide HOME Funds will terminate at the conclusion of twenty-four 24 months from the date of execution of this Contract. (b) The Loan terra shall be thirty-eight (38) years, as set forth in the Loan Documents, as hereinafter defined (c) The Affordability Period, as hereinafter defined, will be twenty (20) years. B. Woodmo'nt ryes ponsibi I i ties I. Statement of Work and Performance Ob'ectJves. Woodmont will, utilize HOME Funds 0. 1 on the Project to produce housing units ior lease to qualified 1OW-i icon ne tenants in accordance with the terms of this Contract and Exhibit"A"— Pro j'ect Summary. 2. Bud let. Wood mont agrees that the HOME Funds will be expended in accordance with Exh h "B" — Budget (the udg,eta). No change in the Budget shall be made without HOME FUNDS "'age 3 Wood mont Apartments Ltd. REV. 7-28-09 City's prior written approval. Woodmont shall demonstrate to City's satisfaction that the HOME Funds are leveraged by other funding sources, including LIHTC proceeds. 3. Time Line for Goals and Expenditures. Woodmont shall work in accordance with the schedule set forth in the attached Exhibit "C" — Project Implementation Timeline, anu ensure that Project goals and expenditures correspond with the completion of the Project. 0 4. HOME-Assisted Hou,sliag.. "Units. Fourteen (14) of the rental units, developed by Woodmont under this Contract will be considered HOME-assisted units which will be leased to qualified low income tenants. The per-unit subsidy provided for in this Contract 'is described in more detail in the attached Exhibit "A" - Project Summary. These fourteen (14) units, may "'float" throughout the total number of units in the entire apartment complex, and shall be affordable to tenants whose incomes are verified as being at or below sixty (60�%) of area median income ("AMI") as defined by HUD. Three (3) of these units will be LOW HOME units and eleven (11), of these units will be HIGH HOME units. Of these three (3) LOW HOME rent units, two (2) will be one- bedroom, and one (1) will be two-bedroom. The requirements of this paragraph are subject to the "'next available unit rule" under Internal Revenue Code Section 42,(g,) (2) (D). If these fourteen (14) housing units do not, qualify as, affordable rental housing immediately upon lease-up or at any time during the Affordability Period, the loan proceeds under this Contract will be immediately due and payable to City. In addition, eighteen (18) units, (seven percent of the total number of'units in the Project) will be access,ib�le for persons with disabilities. 5. Affordability Pefiocl. Twenty Years. The fourteen (14) HOME-assisted rental units developed by Woodmont must qualify as affordable rental housing for a period of twenty (20) years from the date these units are set up in HUD's Integrated Disbursement and Information System ("IDIS") maintained by City and HUD as required by HOME Regulations (the "Affordability Period"'). The Affordability Period shall commence on the later of: (1) the date the Project is completed and Wo!oldmont has reported all income eligible tenant leas,e-�up of all HOME,-�assisted units by reporting to City the applicable tenant beneficiary data; or (ii) the data for the HOME-assisted units 'is set up and completed in IDIS as required by the HOME Regulations.1 The fourteen (14) rental housing units assisted under this Contract will remain affordable as required by 24 CFR Part 92.252 of the Regulations. Affo�rdabilitv Periocts for HOME 'Proj*ects. Housing purchased, renovated or constructed with HOME Funds must remain affordable and subject to repayment for the following minimum time periods.- Five ('5) years when the per unit, amount of HOME Funds, provided is less than $15,000.00-1 Ten (10) years when the per unit amount of HOME The ten'ns"set up"and"completed"as used here in context of entering the information into IDIS, shall have the meaning set out in HUD's ID,IS Manual, �which may be found at,wwmt.hud.go,v/assist/acrobat.ct*tii HOME FUNDS Page 4 Woodmont Apartments Ltd. REV. 7-28-09 I Funds provided is $1-5,0001.00 to $40,000.00; Fi fen (I 5�) year when the per unit amount of HOME Funds provided is $40,000.00, or HOME-assisted rehabilitation of the units I . involved refinancing- and twenty (20) years when the niulti-t`amil constructed. y unity are newly Failure to Maintain Afford a billity Requirements. Woodmont must repay City all HOME Funds if any of the HOME-assisted rental housing units do not maintain all the HOME affordability requirements, during the Affordability Period subject to the "next unit rule". If Woodmoint his repaid the HOME Funds to City before the lend of the Affordability Period, then Woodmont shall pay City ONE HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS ($150,000 as liquidated damages for its failure to maintain the HOME affordability requirements dun*ng the Affordability Period. Affordability Requirement Survives Transfer. Further, the rental housing units must remain affordable without regard to the term of any mortgage or transfer of ownership, pursuant to deed restrictions, the terms of the Loan Documents as hereinafter described, or other mechanism approved by HUD. Provisions to Secure Affordabilit y. a. The City's interest in preserving the affordability of the H+ ME-assisted units will be secured by a combination of the subordinate Promissory Note and Leasehold Deed of Trust Security Agreement — Financing Statement descrIbed herein, and the Land Use Restriction Agreement ("LURA") established and enforced by TDHCA for the Low Income Housing Tax Credits. The TDHCA's LUR-A shall restrict the Project and Property to certain occupancy and rent requirements for a pleriold of thirty-five (3 5) years. For the first twenty (2 0) years of the LURA, the Property will be subject to all federal laws and regulations regarding, the HOME Program and affordability requirernents. If Woodmiont retains ownership of the Project for the full Affordability Period, no further HOME restrictions, by the City will apply. bi. Any sale or transfer of the Project by Woodmont during the Affordability Period, excluding a transfer due to coindemn,ation, will require the repayment of any unpaid, principal and interest or the new owner or transferee to affin-natively assume in writing, the obligations established hereunder for the designated HOME-assisted units. C. Refinancing by Woodmoint shall require the review and prior written approval of City for the purpose of ensuring compliance with the HOME affordability requirements, which approval, shall not be unreasonably withheld. 6. Loan C Woodmont will be required to execute a subordinate Promissory Note and Leasehold Deed of 'Trust Security Agreement Financing Statement ("Loan Documents") secured by Woodmont"s leasehold interest in the Property in the amount of the Loan in conjunction with this Contract. Woodmont shall provide City with a Mortgagee's Policy of title insurance in the amount of the Loan. The City's lien priority shall be shall be subordinate to the senior indebtedness described in a subordination agreement between City and senior mortgagees including but not limited to Woodmont's HOME FUNDS Page 5 Woodmont Apartments Ltd. V. 7-28-09 bond mortgage lender, construction lender and any credit ei-ihancenient lenders but shall A 11 be superior to other subordinate gap financing including that provided by TD CA. The to of the Loan shall be thirty-eight (38) years. Interest shall accrue at the rate of three percent (3%) per annum beginning the earlier of the end of the third (3d) year of the Loan to or when, ninety percent (90%) lease up has been achieved for ninety (90) days. Interest payments shall commence upon repayment in full of the deferred development feel which is estimated to occur in the ninth (9th) year of the Loan and principal payments shall begin upon repayment in full of the accrued interest on the Loan which is estimated to occur in the eleventh (I I') year of the Loan. Principal payments shall be as on a twenty-eight year amortizatioln. Principal and interest shall be paid semiannually oil May 15 and November 15 of each year that they are due. However', principal and interest shall only be paid out of fifty percent (501%) of'Surplus Cash as defined in the Promissory Note after the deferred development fee, is paid in full and after principal and interest are paid on the TDHCA subordinate loans which have payment priority over the City Loan. Principal and interest to the extent not plaid from fifty percent (50%) of Surplus Cash shall accumulate from year to year until paid in accordance with the terms of the Promissory Note, provided that accumulated interest shall be based on simple interest. The Loan may be repaid with no prepayment penalty prior to the end of the Loan term., Repayment of the Loan shall not relieve Wooldmont of its responsibilities to maintain affordability of the HOME-assis,ted units for, the Affordability Period as set forth 'in the Regulations. Further, all provisions of this Contract and particularly those provisions regarding, the requirements of Affordability Period, Income Eligibility, Tenant Rent and Selection, Tenant Lease, and Housing Quality Standards for the designated HOME,- assisted units must be assigned to any new owner upon sale or transfer of the Project or Property. 7'. Income Eli glibUi,ty. The HOME, Program uses the income definitions used by HUD's Housing, Choice Voucher Program. Arinual income includes earned income, income from assets, and income from other sources as defined by 24 CFR Part, 5.609. Annual income is used to establish tenant eligibility. Wooldmont shall use the most current HUD Income Guidelines and Feel mical Guidance for Deten-nining Income and Allowances to deter-nine Project and tenant eligibility. 8. Tenant Lease. Woodmont shall use a tenant lease that complies with the provision in the HOME Regulations, 2,4 CPR Part 92.253, regarding,the following issues: a. Length of lease to shall not exceed two (2) years,. b. Lease may not include agreement by tenant to allow landlord to take, hold or sell tenant's property without notice. c. Lease may not include agreement by the tenant to excuse owner from responsibility for intentional or negligent acts. d. Lease may not authorize owner to institutes a lawsuit without notice to the tenant. e. Lease may not include agreement by tenant to waive a jury trial or right of appeal. f Lease may not include an agreement by tenant to pay legal costs, of court proceeding even if the tenant prevails in those proceedings. HOME FUNDS Page 6 Woodinont Apartments Ltd. V. 7-28-09 9 1 Tenant Rent and Selection. As applicable to the number of HOME-assisted units designated for the Project and outlined in Exhibit "All - Project Summary, rents charged to tenants are subject to the HOME regulatory requirements at 24 CF'R 92.252 (a) and (b). Rents charged to tenants in HOME-assisted units are subject to review and approval by City. Under no circumstances may the maximum rental amounts charged to tenants of HOME-assisted units exceed the "High HOME Rent" which is defined as the lesser of(a) the HUD established Fair Market Rent for existing comparable housing units in the area; orb thirty percent (30% of the adjusted income of a family whose annual income equals, sixty-five percent (65%) of A with applicable adjustment for the bedroom size of the relevant housing unit. Rents may not exceed the above amounts minus monthly allowances for utilities and services (excluding telephone) established by City. For projects with five (5) or more HOME-assisted units, twenty percent (20%) of the HOME-assisted units must be occupied by families with incomes no higher than fift y percent (50%) of A who are paying the "'Low HOME Rent" which is, defined as no more than thirty percent (30%) of the annual income of a family at fifty percent (50%) of AMI adjusted for family size. City agrees to provide Woodmont with copies of HUD approved schedules of these HOME rent levels and utility allowances as requested by Wood,mont. Woodmont must adopt written tenant selection policies and criteria that: a., Are consistent with the purpose of providing housing for very low income and low income persons., bi" Are reasonably related to Project eligibility and the applicants" ability to perfon-n the obligations of'the lease. c. Provide for(1) the selection of tenants fr+ a written waiting list in the chronological order of their application, insofar as is practicable-, (ii) the prompt written notification to any rejected applicant of the grounds for such rejected; and (iii) bi-lingual leasing and management assistance. d. 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 Project. 10. Other Requirements. The Parties acknowledge that the HOME Funds paid hereunder are intended to provide funding only for Woodmont's project-related costs as specified in the attached Exhibit (*%" - Budget. Woodmont shall maintain all appropriate documentation to demonstrate that the HOME Funds shall not be used for costs that are ineligible under the HOME Program and that all such costs are paid for by other funding sources. Woodmont agrees to maintain full documentation supporting, fulfillment of Project objectives in its files. All such documentation shall be furnished to City upon request if It 6, necessary for City to fulfill its obligations, unoer its Federal grant. 11, Construction and Other Local Build,ingCodes/ Hou sin gQuality standards. HOME FUNDS Page 7 Woodinont Apartments Ltd. REV. 7-28-09 Housing units constructed with HOME Funds, furnished under this Contract shall meet City's Housing Quality Standards and all other, applicable standards under City Codes and ordinances. Woodmont shall ensure that the Project Is maintained to these standards for the duration of the Affordability Period. City will verify maintenance of the Project to these standards through on-site inspections according to the following schedule as applicable: for projects with one (1) to four (4) HOME-assisted units, every three (3) years-, for proj,ects. with five (5) to twenty-five, (25) HOME-assisted units every two (2) years; for projects, with twenty-six (26) or more HOME-assisted units, every year. In addition, Woodmont shall meet all required property standards in accordance with 24 CF R 92.251 and all mandatory standards and policies relating to energy efficiency contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act, (Pub. L. 9�4A, 89 Stat. 871). All Project plans, specifications and work shall conform to all applicable Federal, state and local laws,, ordinances., rules and regulations. Approval of any plans and specifications relating to the Project by City shall not constitute or be deemed (a) to be a release of responsibility or liability of Woodmont, 'Its officers, agents, e loyees or any of its contractors, or any of their officers, agents, employees or contractors for the accuracy or the comp etency of the plans and specificatioins, including,ing, but not limited to, any related investigations surveys, designs., working,drawings and specifications, or other documents, or (b) 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 or specifications or other documents by Woodmont or any of its contractors, or any of their officers, agents, employees or contractors. 12. Reversion of Assets Woodmont agrees to return to City any HOME Funds or property acquired with HOME Funds, remaining on hand at the end of the Contract ten-n that have not been used or acquired, as the case may be in accordance with the provisions of this Contract or the HOME Regulations. This provision specifically does not apply to CHDO Proceeds, 'If' any, which shall be used as described herein. If repayments, interest or other returns on investment attributable to HOME Funds are received after the end of the to of this Contract they shall be returned to City, to be deposited in accordance with HOME Regulations. Woodmont agrees that it will reimburse City for any expenditure of HOME Funds, disallowed by HUD through its audit exception or other monetary compliance enforcement action., Any HOME Funds, invested in housing that fails to meet affordability requirements for the Affordability Period must be repaid to City in accordance with HOME Regulations. 13. Affirmative Marketing Woodmoint must adopt and implement affin-native marketing procedures and requirements for all HOME funded housing in accordance with 24 CFR 912.351. The procedures and requirements must include methods for informing the public, owners,, and potential tenants about pair Housing laws and policies so as to ensure that all individuals, without regard for race, colloir, sex, gender, religion, national origin, familial status, disability or perceived disability, are given an equal opportunity to, participate in the HOME FUNDS Page 8 Woodmont Apartments Ltd. REV 7-2,8-09 Project. r fhe procedures and requirements must also include the designation, of an individual that will be responsible for marketing the Pr *ect and establishing a clear 4 01 application screening plan and the maintenance of documentation and records to evidence affirmative marketing procedures, have been implemented. Woodmont will be solely responsible for the effective marketing responsibilities necessary to achieve Project goals. 14. Recordke ' a. Woodmont will keep or cause to be kept an accurate record of all actions taken and all funds expended in performance of this Contract. Such records and any source documents, shall be kept for the Affordability Period. b. Woodmont will obtain and keep on file the following information on each tenant served by the HOME-assisted units of the Project throughout the Affordability .Period.- 1. Annual 'income and size of the household. 2. Race and ethnicity of each tenant household, using reporting categories required by HUD. 3. Whether the head of household is male or female., whether the head of household is single, whether any member of'the household is disabled, and the number of any children in the household if any). 4. Unit number and bedroom size of each HOiME-as,sis,ted unit. 51. Type of any rental assistance being provided to each tenant, (Le. Housing Choice Voucher, Supportive Housing Program, other federally funded rental assistance, etc.). 61. Any additional Project performance data and statistical information as may be required by the City Housing and Economic Development Department, HOME Regulations or other HUD regulations and any amendments thereto. C. Woodmont will keep on file the following information and documentation: I Proof that the Project meets applicable property, building construction and housing quality standards. 2. Documentation verifying compliance with affirmative marketing requirements, and existence of acceptable procedures. 3. Documentation verifying compliance with Woodmont's temporary relocation plan and HUD relocation requirements,, as applicable. 4. Documentation and other information verifying compliance with HOME conflict of interest regulations at 24 CFR 92.356(f), which provide that no officers, agents, consultants or employees of the developer of HOB: assisted units may occupy such-units. d. City will monitor and inspect the Project throughout the Affordability Period to ensure continues compliance with rent restrictions, low-income occupancy requirements, and property standards. Woodmont shall maintain tenant income recertification docume!ntat'loin in the tenant files, available for inspection by City. 15. Reports. Woodmont shall furnish the reports, as shown on Exhl-bit "E" — Reporiti*ng #,, 4-&-, Req u irement s HOME FUNDS Page 9 Wooidmont Apartments Ltd. REV. 7-28-09 During the Affordability Period,, Woodmont shall submit unit rents including, utility allowances, income verification and beneficiary data within thirty (30) days after obtaining fall occupancy, and annually thereafter due by the 1511 day of the third month after the end of the calendar year. Woodmont will submit to Cit or activity reports During the term of this Colic-ract", 1h y and .financial reports due by the 15 of each month, during, construction, regarding the services provided by Woodmont as a result of this Contract and the expenses, charged to! the HOME Funds provided through this Contract, with the first report due on the 15 th of 1, r the month immediately following execution of this Contract Fhese reports shall be submitted in the format specified by City. The reports will provide details on: a. Progress toward achievement of objectives identified in Exhl*bit "A"' — Project Summary. b. The dollar amount of funds, leveraged by this Contract, including any items that qualify as HOME match. Woodmont will submit to, City annually during the Affordability Period a copy of its financial audit and the report Woodmont provides to TDHCA for LTHTC reporting purposes,. 1. , Cost Prin ci ics/Audit Requirements. Woodmont shall administer the Project in compliance with all applicable federal regulations as amended from,time to time and in compliance with the toll owing-, a. All non-federal entities that expend $500,000.00 or more in Federal funds within one year, regardless of the source of the Federal award, must submit to City an annual audit of construction of the Project is completed prepared in accordance either with specific reference to OMB Circular A-133, "Audits, of States, Local Governments, and Non-Profit Organizations"" or, if not applicable, the audit must be performed by a Certified Public Accountant licensed by the State of Texas at the time of the audit and shall meet all of the general standard set forth in Government Auditing Standards by the Texas Department of 11busing and Community Af I * * Y Low Income Hous*ng Tax Credits. Y�Wrs for Prop�ert*es Receiving - 1 The audit may cover either Woodmont's fiscal year during which this Contract is in force or cover the term of this Contract. The audit must be prepared by an independent cert-ified public accountant, be completed within twelve (12) ,Montbs following the end of the period being audited and be submitted to City within thirty (30) days of its completion. Woodmont's audit certification is attached hereto as Exhl*bl*t "D" — Audit Certification Form and Audit Requirements, The Audit Certification Form must be submitted to City within sixty (60) days of the end of the period being audited (Woodmoat's fiscal year). Costs of preparation of this audit may be an allowable expenditure of Federal funds in an amount proportional to that of the Federal Funds used in Wood oat's total agency operating budget as applicable. Non-profit entities that expend less than $5001000.00 a year in I teceral funds are exempt from Federal audit requirements I 10ME FUNDS Page 10 Woodinont Apartments Ltd. REV. 7-28-0,9 for that year,, but records must be available for review or audit by appropriate officials of the Federal agency, city, and General Accounting Office. b. City reserves the right to perform an audit of Wo�odmont's Project operations and finances at any time during the term of this Contract after reasonable notice if City determines that such audit is necessary for City's compliance with federal rules and regulations, governing the Project and the use of the HOME Funds and Woodmont agrees to allow access to all pertinent materials including but not limited to those records and reports described above. If such audit reveals a questioned practice or expenditure, such questions must be resolved within fifteen (15) days after notice to Woodm nt of such questioned practice or expenditure. If' questions are not resolved within this period, City reserves the n*ght to withhold further funding,under this Contract and/or future contract(s) with Woodmont. C. If as a result of any audit it is determined that Woodmont has misused, misapplied or misappropriated all or any part of the HOME Funds, Woodmont agrees to reimburse the City the amount of such monies so misused, misapplied or misappropriated, plus the amount of any sanctions,, penalty or other charge levied against City by HUD be of such misuse, misapplication or misappropriation. 17. Monitor Effectiveness of'Services and Work City will review the activities and performance of Woodinont for this Project not less than, annually during the to of the Contract as required in Section 92.504 of the HOME Regulations and not 'less, than every three (31) years during the Affordability Period following completion of construction of the HOME-assisted units as required by Section 92.504(d) (1) of the HOME Regulations. Monitoring during the Affordability Period shall include on-site inspection of all HO,ME-assisted -units no less than every three (3) years dufing the Affordability Period, and review of tenant income documentation described in this Contract. Woodmont agrees to fully cooperate, with City in monitoring the effectiveness of the services and work to be performed by Woodmont in compliance with the terms of this Contract. City shall have access at all reasonable hours for the purpose of such monitoring to offices and records of Woodmont, its officers, directors, agents, employees, and contractors and sub contractor's dealing with the use of the HOME Funds. Woodmont agrees to likewise monitor the effectiveness of the services and work to be performed by its contractors and subcontractors. 18. Assignment. Except as may be assigned to the The NR P Group or any 01 its affiliates Woodmont shall not assign all or any part of its rights, privileges, or duties under this Contract without City's prior written consent., which shall not be unreasonably withheld. Any attempted assignment of this Contract without approval shall be void, and shall constitute a breach of this Contract. It is agreed that City has the right to inspect and approve in writing any proposed contracts, between Woodmont and any contractor (and where applicable, between Woodmont's contractors and their subcontractors) engaged in any activity in conjunction with this HOME-fund,ed project prior to any charges being incurred. HOME FUNDS Page I I Woodmont Apartments:Ltd. REV. 7-28-09 19. Certification Regarding Lobbyi,ng. The undersigned representative of Woodmont hereby certifies, to the best of his or her knowledge and belief I that-, No Federal appropriated funds have been paid or will be paid, by or on behalf of Woodmont, 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. If any funds other than federally appropriated funds have been plaid 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, Wololdmolnt shall complete and submit Standard Fonn-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 USC Section 13152. 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. Wooldmoint shall require that the language of this certification be included in all contracts or agreements, involving the expenditure of Federal funds. 20. 'Indemnification. WOODMONT COVENANTS AND AGREES TO INDEMNIFY,, HOLD HARMLESS AND DEFEND, AT ITS OWN EXPENSE., CITY AND ITS OFFICERS, AGENTS, SERVANTS AN D 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 KIND OR CHARACTER, WHETHER REAL OR ASSERTED9 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 WOODMONT APARTMENTS, LTD. HEREBY ASSUMES ALL LIABILITY AND HOME FUNDS Page 12 Wood font Apartments Ltd. REV. 7-28-019 RESPONSIBILITY OF CITY AND ITS OFFICERS, AGENTS, SERVANTS, AND EMPLOYEES FOR ANY AND ALL CLAIMS OR SUITS FOR PROPERTY LOSS ORDAMAGE AND/OR PERSONAL INJURY, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF WHATSOEVER KINDS OR CHARACTER9, 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. WOODMONT LIKEWISE COVENANTS AND AGREES TO AND DOES HEREBY INDEMNIFY AND HOLD HARMLESS CITY FROM AND AGAINST ANY AND ALL INJURY,1 DAMAGE, OR DESTRUCTION OF PROPERTY OF CITY, ARISING OUT OF OR IN CONNECTION WITH ALL ACTS OR OMISSIONS OF WOODMONT APARTMENTS, LTD, ITS OFFICERS, MEMBERS, AGENTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS, INVITEES, LICENSEES, OR PROJECT PARTICIPANTS, OR CAUSED, IN WHOLE OR IN PART, BY ALLEGED NEGLIGENCE OF OFFICERS, AGENTS, SERVANTS, EMPLOYEES, CONTRACTORS OR SUBCONTRACTORS OF CITY. IT IS THE EXPRESS INTENTION' OF THE PARTIES, BOTH WOODMONT AND CITY, THAT THE INDEMNITY PROVIDED FOR THIS SECTION INCLUDES INDEMNITY BY 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. WOOD,MONT 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 THE CITY'S SOLE, OR CONCURRENT NEGLIGENCE. WOODMONT SHALL REQUIRE ALL OF ITS CONTRACTORS AND SUBCONTRACTORS TO: INCLUDE IN THEIR CONTRACTS AND SUBCONTRACTS A RELEASE AND INDEMNITY IN FAVOR OF THE CITY IN SUBSTANTIALLY THE SAME FORM AS ABOVE, 21, Waiver of Immunity. If Woodmontl as a charitable or nonprofit organization, has or .......... claims an immunity or exemption (statutory or otherwise) from and against liability for damages or injury, including death, to persons or property, it hereby expressly waives its, rights to plead defensively such, immunity or exemption as against City. This: sectio�n HOME FUNDS Page 13: Woodmont Apartments Ltd. REV. 7-28-09 shall not be construed to affect a governmental entity's immunities under constitutional, statutory or common law. 22. Insurance. Woodmont shall furnish to City, in a timely manner, certificates of insurance as proof that it has secured and paid for pol eies of commercial insurance as s �ecifi,ed herein. Such insurance shall cover all insurable risks incident to or in connection with the execution, performance, attempted performance or nonperformance of this Contract. Waodmont shall maintain the following coverages and limits thereof". Commercial General Liability(C GL) Insurance $5 ,0 each occurrence I 10 , 0 aggregate limit If applieable. Business Automobile Liability Insurance 1.000.,000 each accident on a combined single-limit basis, or, X25+ 1, 10 Property Damage $500,000 Bodily Injury per person per occurrence $2,000,000 Aggregate Insurance policy shall be endorsed rsed to cover,"Any Auto" Pending, availability of the above coverage and at the discretion of Abe Woodmont, the polies` shall be the primary responding insurance policy versus a.personal auto insurance policy if"or when in the course of oodmont s business as contracted ereir. If applicable: Workers' Compensation Insurance .dart Statutory Limits Pay B: Employer's Liability 100,000 each accident '100,000 disease-each employee $500,1000, disease-policy limit ry y ate. Such insurance shall cover employees ees p erfo . : work and and all projects including but not limited to, construction,, demolition, and rehabilitation. Woodmont or its contractors shall maintain coverages. In the event the respective contractors do not maintain coverage, Woodmont shall maintain the coverage on such contractor for each applicable contract. Directors and Officers Insurance Optional (Highly Recommended Nate.- This insurance shall cover Woodmont and any me mber of its Board of Directors. HOME F` S Page 14 Woodmont Apartments ents Ltd. REV. 7-28-09 Additional Require mants .6 Such insurance amounts, shall be revised upward at City's reasonable option., and Woodmont shall revise such amounts within thirty (30) days foillowing notice to Woodmont of such requirements. Woodmont will submit to City documentah"on show n. that it has obtam' ed insurance coverage and has executed bonds as required in this Contract prior to payment of any monies, provided hereunder. Each insurance policy shall be endorsed to provide City with a minimum 'thirty (30) days notice of cancellation, non renewal, and/or material change in policy terms or coverage., 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 the City. If applicable, the Workers' Compensation Insurance policy shall be endorsed to include awaiver of subrolgatioln, also referred to as a waiver of rights of recovery, in favor of City. Any failure on, part of the 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 We odmont'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 the 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 insurance policies shall not exceed $5,000 per occurrence unless otherwise approved by City. 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. As applicable, Woodmoint shall require its contractors to maintain applicable insurance coverages, limits, and other requirements as those specified herein" and, Wood pint shall require its contractors to provide Woodmont with certificate(s) of insurance documenting such coverage. Also, Woodmont shall require its contractors to have City and Woodmont endorsed as additional insureds as their interest may appear) on their respective insurance policies. Woodmont shall HOME FUNDS Page 15 Woodmont Apartments Ltd. REV. 7-28-09 recurs its contractors, to maintain e s risk insurance at mit of applicable project(s) costs when the value of materials involved exceeds 1 �, � 1 or at a different limit value as specified by City. C. Duties and ReTonsibi Iities of Cit Disbursement of Funds. City will furnish HOME Funds for use as stated herein. City will monitor r the use of such funds, to ensure appropriate use. Funds shall be disbursed after execution of this Contract arid, in compliance with its, rovi,sions. Would ont will be entitled to make requests for reimbursement draws for the first eighteen 18 months of the Contract term. P"a merit to oodmont shall require completion of appropriate City forms and copies of adequate supporting documentati n n*fyin the eligibility of expenses. Reimbursement of eligible expenses shall be made against the lies item budgets, specified ed ire Exhibit "B" Budget. Requests for payment shall be made by completing and submitting, to City the fora,s attached to this, Contract as Attachment I Request for Funds, Attachment II Expenditures orksheet, and Attachment III — Detail Statement of Costs. oodmoint may not increase or degrease any HOME-funded line-item amounts of the Budget without City's prior written approval. No additional funds, will be disbursed if the City has not received the necessary financial reports that account for previously disbursed funds. Costs eligible for reimbursement may include certain costs directly relatedd to and in support of the Project, as verified by City, which were incurred prier to execution of this Contract. To further the purposes of the Project and my as requested in carting by Wooedmont, City may disburse funds to directly pay Wood o t vendors in accordance with the City Housing Department's Disbursement Poky or C11D0 , Model Blocks and Subr ciplents. 2. Amount of Funds. It is agree, that the total distribution of HOME Funds made available to or paid on behalf of Woodrum during the terra of this Contract shall not exceed the total sum of.ONE .1 1+ N FIVE HUNDRED THOUSAND AN D NO/100 Dollars ($1,5001000.00). D. General l r visions L Legal Auth,o rit This Contract is governed by the statute and regulations goverriing the HOME program ("HOME Program") p to the HOME Investment Partnerships ips .pct at Title fl of the Cranston Gonzales National Affordable Housing Act of 1990, as a,mended, .S.C. sections 12701 et seq. "'NAHA") and the SOME Investment Partnerships Program Final Rule, as amended, 24 CFR Fart 92 e see . (the Regulations" or "Regulations") which are for the benefit low and very low income citizens, by providing -them with affordable h using, and City and Woodmont agree to follow these and all other applicable laws. Woodmont agrees to comply ply fully with all applicable laws and regulations, that are currently in effect or that are hereafter amended during the performance of this Contract. Those laws include, but are not limited to: HOME FUNDS Page 1 Wooldmont Apartments Ltd. REV. _2 - Federal HOME Investment Partnership Act as set out above 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 Di scrimination Act of 1975 (42 U.S.C. S ectio ns 6 101 et seq.,) The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 19,70 (42U.S.C. Sections 4601 et seq. mid 49 CFR Part 24) ("URA"), Section, 5 of the Rehabilitation Act of 1973 (29 U.S.Cl. Sections 794 et se ►.) and 24 CFR Part 8 where applicable National Environrnental Policy Act of 19169, as amended, U.S.C. sections 43,21 el seq. ("NEPA") and the related authorities listed in 24 CFR Part 58. the Clean Air Act, as an-iended, (42 U.S.C. Sections 1251 et seq.) and the Clean Water Act of 1'x, 7, as amended (33 U.S.C. Sections 1251 et seq.), and the related Executive Order 11738. 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 19,86 (8 U.S.C,. Sections H 01 et seq.) specifically including the provisions requiring employer verificatilons, of legal status of its employees, The American, with Disabilities Act of 19910 (4,2 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 ftom . all covered persons Drug Free Workplace Act, of 1988 (41 U.S.C. Sections 701 et seq.) and 24 CFR Part 23, Subpart F Executive Order 12,549 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 2,4 CFR Part 9183.61 for Site and Neighborhood Standards Review 0 Certain Requirements Pertaining to Section 3 of the Housing and Urban Develo ent Act of 19618 as, amended (12 U.S.C. Sections 1701 et sea'.) and its Pm related regglations at 24 CFR Part 135 If the work performed under this Contract is on a project assisted under a program providing direct Federal financial assistance from HUD,, Section 3 of 24 CFR HOME FUNDS Page 17 Woodmont Apartments Ltd. REV. 7-28-09 1351.38 ("Section 3") requires that the foillowing clause be inserted in all covered contracts ("'Section 3 Clause").- "A. The work to be performed under this contract is, sub ect to the requirements of Section 3 of Housing and Urban Development Act of 1968,, as amended, 12 U.S.C. section 1701u. (Section 3). The purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD assisted or HUD-assisted projects covered by Section 31,1 shall to the greatest extent feasible, be directed to low- and very-low income persons, particularly persons who are recipients of HUD assistance for housing. B. The parties to this contract agree to comply with HUD's regulations, in 24 CFR Part 135,, which implement Section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the Part 135 regulations. C. The contractor agrees to send to each labor organization or representative of workers with which it has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers' representatives of the contractor's commitments under this Section 3 clause and will post copies of the notice in conspicuous places at the work site where both empiloyees and applicants, for training and employment positions can see the notice. The notice shall describe the Section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprentice and training positions, the qualifications for each and the name and location of the person(s) taking appl ications, for each of'the positions-, and the anticipated date the work shall begin. D. The contractor agrees that it will include this Section 3 clause in every subcontract to comply with regulation in 24 CFR Part 135, and agrees to to appropriate action, as provided in an app:licable provision of the subcontract, or in this Section 31 clause, upon finding that the subcontractor is in violation of the regulations in 24 CFR Part 135. The contractor will not subcontract with any subcontractor where it has notice or knowledge that the subcontractor has been found in violation of regulations in 24 CFR 135.: E. The contractor will certify, that any vacant employment positions, including training positions that are filed.- (I) after the contractor is selected but before, the contract is executed, and (2) with persons other than those to whom the regulations of 24 C'FR Part 135. The contractor will not subcontract with any subcontractor where it has notice or knowledge that the subcontractor has been found in violation of regulations in 24 CFR 135. F. Noncompliance with HUD's regulation in 24 CFR Part 135 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD assisted contracts. G. With respect to work performed in connection with Section 3 covered Indian housing assistance, section 7(b), of the Indian Self-Determination 1410ME FUNDS Page 18 Woo:ldmont Apartments Ltd. REV.7-28-09 and Education Assistance Act (25 U.S.C. section 450e) also applies to the work to be perfon-ned under,this Contract. Section 7(b) requires that to the greatest extent feasible (i), preference and opportunities for training and employment shall be given to Indians,, and (ii) preference in. the award of' contracts and subcontracts shall be given to Indian organizations and Indi,an-owned Economic, Enterprises. Parties to this contract that are subject to the provisions of Section 3 and Section 79b) agree to comply with Section 3 to the maximum extent feasible, but not in derogation of compliance with Section 7(b)." City and Woodmont -understand and agree that, If applicable to the Project, compliance with the provisions of Section 31 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 the City and Woodmont, and their respective successors, assigns and the contractors. Failure to fulfill these requirements, shall subject Woodmont and its contractors and their respective successors and assigns to those sanctions specified by the Grant Agreement t which Federal assistance is provided and to such sanctions as are specified by 24 C'FR Part 135. Prohibition Against Discrimination General Statement Woodmont, in the execution, performance or attempted performance of this Contract, will not discriminate against any person because of race, color, sex, gender, relipon, national origin, familial status, disability or perceived disability, nor will Woodmont permit its officers, members, agents, employees, or Project participants to engage in such discrimination. A& 0 No,Discrimination in Employment during,the Performance of this Contract During the performance of this Contract Woodmont agrees, and will require all its contractor's to agree, as follows-, Woodmont 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. Wo:odmont will take affi rmative action to ensure that applicants are hired without regard to race, color, sex, gender, religion, national origin, familial status, disability or perceived disability 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. Such action, shall include, but not be limited to,, the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or terminatton, rates of' pay or, other forms, of compensation, and selection for training,, including apprenticeship. Woodmont agrees to post, in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this nondi scrimi nation clause. HOME FINDS Page 19 Wolodmont Apartments Ltd. REV. 7-28-09 Woodmont will., in all solicitations or advertisements for employees, placed by or on behalf of Woodmont, 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. Woodmont covenants that neither it nor any of its officers, members, agents,, employees, Project participants or co�ntractors, 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, di.scn*minate 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. Woold t further covenants that neither it nor its officers, members, agents, employees, contractors, Project participants,, 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 upoin a bona fide occupational qualification, retirement plan or statutory requirement. In accordance with the provisions of the Amen'cans With Disabilities Act of 1990 (,"ADA"), Wog moot warrants that it and any of its contractors 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'emplo ent for applicants for employment with, or employees of Wolodmont or any of its contractors. WI OD WARRANTS IT WILL FULLY COMPLY WITH :ID 'S PROVISIONS AND ANY OTHER APPLICABLE FEDERAL, STATE AND LOCAL LAWS CONCERNING DISABILITY AND WILL DEFEND,, INDEMNIFY AND HOLD CITY HARMLESS AGAINST ANY CLAIMS OR ALLEGATIONS ASSERTED BY THIRD PARTIES OR CONTRACTORS AGAINST CITY ARISING OUT OF WOOD,MONT'S, AND ITS CO,NTRACTO,RS t ALLEGED FAILURE TO COMPLY WITH THE ABOVE-REFERENCED LAWS CONCERNING DISABILITY DISCRIMINATION IN THE PERFORMANCE OF THIS CONTRACT. This, Contract is made and entered into with reference specifically to the ordinances codified at Chapter 17', Article 111, Division 3 ("Disc6minatilon in Employment Practices") of the City Code, and Woodmont hereby covenants and agrees that Woodmont, its officers, members, agents, employees, and contractors,,, have fully complied with all provisions of same and that no employee, applicant or Project participant has been discriminated against under the terms of such ordinances by either or its officers, members, agents, employees or contractors. 0, No Discrimination in Housing HOME FUNDS Page 20 Woad rat Apartments Ltd. V. 7-28-09 cod ant will fo�llow all the laws set out in this Contract in the provision of housing and will not discriminate based upon race, color, religion,, sex, gender,, national origin, familial status, disability or perceived disability. Wolodmont will follow all provisions previously set out in regard to affirmative marketing and 0 . other anti-discri*mination provisions. Pro ibition Against Interest/Conflict of Interest Persons Covered This section (Prohibition Against Interest / Conflict of Interest) applies to any person who is an employee, agent, consultant, officer, contractor, subcontractor, elected official or appointed official of the Parties to this Contract. Conflicts Prohl'bited No person described in the above paragraph, who exercises or has exercised any function or responsibility with respect to activities assisted with HOME funds or who is in an position to participate in a decision making process or gain inside information with regard to these activities, may obtain a financial interest or benefit frorn 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 the tenure of this Contract or for one (1) year thereafter. Exceptions The only exception shall be those allowed by applicable law or regulations. To request an exception, the process required by law and regulations shall be followed. Except as disclosed, no member, officer or employee of City or its designees or agents; no member of the governing body of the locality in which the Project is situated; and no other public official of such locality or localities, who exercises any functions or responsibilities with respect to the Project funded hereunder during his or her tenure or for one (1) year the eafter, shall obtain a financial benefit or have any interest, direct or indirect, in any contract or subcontract or the proceeds thereof, for work to be performed hereunder. Woodmont shall incorporate,, or cause to be incorporated, like language prohibiting such interest in all contracts and subcontracts entered into, in. connection with the Project. No officer, employee, member or Project participant of Woodmont or its contractors shall have a financial interest, direct or indirect, in this Contract or the HOME Funds transferred hereunder or be financially interested, directly or indirectly, in the sale to Woodmont of any land, materials, supplies or services purchased with any funds transferred hereunder, except Woodmont as an officer, or employee. Any willful violation of this paragraph with the knowledge, expressed or implied, of Woodmoont or its contractors shall render this Contract voidable by the City. HOME FUNDS Page 21 Woodmont Apartments Ltd. REV. 7-28-09 No officer, employee, agent, consultant, elected official vial or appointed official of the participating jurisdiction, Woodmont or its contractors who 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 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, eith.er for themselves or those with whom they have family or business ties, during their, tenure or for one l) year thereafter., In the procurement of property and services by Woodmont, the conflict of interest provisions of 24 CFR Part 8536 and 24 CFR fart X4.4 , respectively, shall apply. In all cases not governed by those sections, the provisions of 24 CFA :part 92.356 of the HOME Regulations shall apply. Lalb r Standards i. As applicable, Woodmont agrees to comply with the requirements of the Secretary of Labor in accordance with the {Davis-Bacon Act (40 U.S.C. 2 a 27 a-5 as amended,, the provisions of Contract Work Hours and Safety Standards Act 40, U.S.C. 327 et seq.) and all ether applicable Federal, state and local laws and regulations pertaining to labor standards insofar as these acts apply to the performance of this Contract. Woodmont, agrees to comply with the Copeland Anti-Kick Back pct l .U.S.C. 874 et seq.) and its implementing regrlati ins of the U.S. Department of Labor at 29 CFR Part 51. Woodmont shall maintain documentation that demonstrates compliance with hour and wage requirements of this Contract and HOME Regulations. Such documentation shall he made available promptly to City for review upon request. ii. Woodmont agrees that, except p , with respect to -t e rehabilitation or construction of residential property containing, less than twelve 12 units assisted with HOME funds, all contractors engaged under contract in excess of' $2,000.00 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 s of the Department of labor under 29 CFR Parts l,3 5 and governing the payment of wages and ratio of apprentices and trainees to Journey workers;ers 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 Wooldmont of its obligation, if any, to require payment of the higher wage. Woodmont shall cause or require to be inserted in ill, in all such contracts sub.ect to such regulations, provisions meeting the requirements of this paragraph. Minority and Women business Ente rise Commitment ooldrnoint agrees to abide by the City's policy to involve Minority and Women Business Enterprises ` / ,BEs" in all phases of its procurement practices and HOME FUNDS Page 2 Woodmont Apartments Ltd. REV. 7-28-019 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. Therefore, Woodmont agrees to incorporate City Ordinance No. 15530, and all amendments or successor policies thereto, into all contracts and subcontracts and will further require all persons or entities with whorn it contracts to comply with said ordinance. 2. Ten' l-Inination. 0 10 City may terminate this Contract in whole or in part in the event of Woodmont's default, inability or failure to perform., City shall notify Woodmont and its Investor Limited Partner in writing of any breach of this Contract and specify a reasonable time but not less than thirty days to cure the breach. If"''mac odmont falls to cure the breach. within the time stated in the notice, City may take any of the! f'ollo Vin g actions.-, a. Temporarily withhold disbursements pending correction of the deficiency; b. Disallow all or part of the cost of the activity or action not in compliance; C. Accept Woodmont's failure to comply or correct any deficiency or breach within the time period specified as evidence of'Wood mant's inability to perfon-n under the to of this Contract and intent to terminate this Contract and surrender all rights to any remaining HOME, Funds- d. Withhold any other HOME awards from Woodmont or any affiliates; e. Pursue any other legal remedies available to City to ensure compliance with this Contract and the Loan Documents. If Woodmont has not commenced construction within six (6) months of'the date of this Contract, City may terminate this Contract. . Woodmont-, Wooldmont may terniinate this Contract if the City does not provide the HOME Funds set forth in this Contract,. Unused Home Funds. Upon termination, either by Woo dmont or City, Woodmont will, return to City all unused HOME Funds previously distributed 'under this Contract within thirty (30) days of' the effective date of Contract termination. City will have no responsibility or liability for, Woodmont's expenditures or actions occurring after the effective date of Contract termination. City reserves the right to recapture HOME Funds provided under this Contract in the event City determines that Wood moint will be unable to expend all HOME Funds, within the term of the Contract. Affordability and Certain Other Requirements Survive Termination. coo cent agrees that any provision of this Contract that pertains to affordability, tenant eligibility, and City Building Codes, ordinances and housing quality standards, as well as any applicable HOME requirements shall survive the termination of this Contract and shall be governed by the HOME Regulations, and the provisions of the TDHCA LURA as well as the Loan, Documents securing affordability. HOME FUNDS Page 23 Woodmont Apartments Ltd. . 7-28-09 Mutual Agreement. This Contract may be terminated for mutual convenience upon written agreement oaf'the Parties. 3. Venue. Venue for any action, whether real or asserted, at law or in equity, regarding the execution, performance, attempted performance or non-performance or any other action or claim arising out of this Contract shall lie in Tarrant County, Texas. 4. Written Instrument Entire, geeme A nt. This written instrument and the exhibits attached hereto, which are incorporated by reference and made! a part of this Contract for all purposes, constitute the entire agreement by the City and Woodmont concerning the work and services to be performed under this Contract. Any prior or contemporaneous oral or written agreement which purports to vary the ten*ns of this Contract shall be void. Any amendments to 'the terms of this, Contract must be in writing and must be approved by each Party to this Contract. 5. Severable. 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 hereof, such invalidity shall not affect other provisions which can be given effect w'tb i ion. I -o�ut the invalid p�ro�v's' 6. No Waiver. The City's failure to insist upon the performance of any term or provision of this Contract or to exercise any right herein conferred shall not be construed as a waiver or relinquishment to a. y extent of the City's right to assert or rely upon any such to or right on any future occasion. 7. Paragaph_ffeadings. 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. 8. Miscellaneous Provisions,. All terms of this Contract shall apply to any and all contractors of Woodi-nont who are in any ay pal OME 'd with H Funds or who perform i any work in connection w► th the w Project. All notices required or permitted by this Contract must be in writing and are deemed delivered, on the earlier date of the date actually received or the 'third day following (1) deposit in a Untied States, Postal Service post office or receptacle, (11), with proper postage, certified mail return receipt requested; and (111) addressed to the other Party at the address set out in the preamble of this Contract or at such other address as the receiving,Party designates by proper notice to the sending Party. If applicable, must meet conditions and limitations for use of HOME Funds, 'Involving a primarily religious entity as set forth in the HOME Regu,latioinsi. If applicable,, Woodmont shall notify it in writing, of any changes in its 501 (c) (3) tax HOME FUNDS Page 24 Woodmont.Apartments Ltd. REV. 7-28-09 exempt status during the to of this Contract. Woodmont represents, and warrants, that it possesses the legal authority to enter into this, Contract, to receive the HOSE Funds, and to perform the services, it has obligated to perforrn under this Contract. All oral and written agreements, between the Parties relating to the subject matter of this Contract that were made prior to the execution, of this Contract have been reduced to writing and are contained in this Contract. This Contract may be executed in one or more counterparts each of which shall be deemed an original but all of which together shall constitute one and the same instrument. Signed signature pages may be transmitted by facsimile or electronic transmission, and any such signature shall have the sane legal effect as an original. [SIGNATURES APPEAR ON FOLLOWING PAGE] HOME FUNDS Page 25 Woodmont Apartments Ltd. R. 7-28-09 Ili WITNESS WHEREOF, the :Parties have uteri four copies of this Contract in Fort Worth, Tarrant County, Texas, this day of , 2009. ATTEST. CITY OF FORT T O TH City Secretary T. M. Higgins, Assi40afff City Manager M&C: C-23550 Fate May 26, 2009 APPR 1 D AS T F *-AND LEGALITY: Assistant City Attorney WOO,DMONTI APARTMENTS, LTD. By: NRP WOODMONT APARTMENTS,,TS, LLC its general partner Contract author f zata.OA 51 : Wind Terrace Inc. Date its B ",sol member y: Barbara Holston, Vice President STATE OF TEXAS COUNTY OF TARRA T This instrument was acknowledged before nee on J u L k 200 T.M. Biggins, Assistant City Manager of the City of Fort Worth, Zin behalf the City of Fort worth. EVONIA DANIELS »: My C cltary�"ub�llc, Mate of Texas ' - J 1 Of 2013 STATE OF TEXAS COUNTY OF TARRANT § This instrument was acknowledged before me on �k[�A a5 200 by Barbara Rolston, Vice President of Wind Terrace, Inc., a Texask nonprofit corporation, on behalf of said corporation, sole member of Nip' Waodmo t .Apartments, LLC, a Texas limited liability company, general partner ofWoodmont Ap nth, Ltd, a Te limite partnership., Notary Public, 'State of Texas MY JOE R,HENDEM COMMISSION EXPIFES ",.wwr®r ,yuur�,io�mm iuurou!wummomwuuuuumumi wuuwaumm'nv Y f0 od*r 301 201 1 . OFFICIAL i Jf4 RECORD H :�F�I�s C17Y 'age 2 -21-4 Wdcnt Apartments Ltd. E . 7 EXHIBIT 44A" PROJECT SUMMARY - SCOPE OF WORK WOODMONT APARTMENTS, LTD, DESCRIPTION. Woodmont Apartments, Ltd. ("Woodmont") will construct a 252-unit affordable housing apartment complex known as the Woodmont, Apartments,, located at 102,9 Oak, Grove Road, Fort Worth, TX. 76115 (the "Project"). The Fort Worth Housing Authority owns the land and wifl enter 'into a lo�ng-term ground lease with Woodmo�nt. Primary funding,for the Project will be from Low Income Hous,i I ng Tax Credits, ('1LIHTC") allocated by the Texas Department of Housing and Community Affairs ("TI)HCA."). The Project will be constructed 'in accordance with the LIHT'C proposal and all applicable amendments subnu*tted to TDHCA during the 2008 application round. For the twenty (20) year HOME- required Affordability Period, the Project will be managed in compliance with this Contract and applicable provi,sions, of all HOME Regulations governing rental projects. All u *ts *in the Project wifl be affordable to households at or below 60% of Area Median ni Income ("AMI") as established by HUD. The term of the contract for the HOME Funds i's twenty-four (24) months and the term of the loan is thirty-eight (38) years. Simple 'Interest at 3% per annum,will begin to accrue the earlier of the end of year three (3) of the Loan term or when 90% lease up has been achieved for 90 days. Interest only semi-annual installments will be due on May 15, and, November 15 of each year beginning in year ni I ne (9) of the loan term but only after the deferred developer fee i's paid in full. Payment of all principal and any accrued but unpaid i I nterest will be due and payable thirty-eight (38) years from anniversary date of execution of the Loan Documents. In cons ideration for HOME Funds provided through this Contract, Woodmont Apartments, Ltd. agrees to provide the following 1 0 nformation and meet the following requirements Designate fourteen (14) units in Project as HOME-assisted units, affordable to low- income tenants: at 60% of AMI or below. Three (3) of these units will be LOW HOME units. Of these three (3) LOW HOME units, two (2) will be one-bedroom and one (1), will be two-bedroom Eleven (11) of these units will be HIGH HOME, units. These units shall not be fixed, but shall "float" 'throughout the Project. During lease-�up perl*od,, and until Project i's fully leased, on a, monthly basis, report summary beneficiary data regarding the household 'income, size, race, ethnl*c*tY, gender of head of household, disability status, and rental assistance type for all 01 IN tenants residing "in HOME-assisted units, on Form E-2 - Beneficiary Performance Report. If these fourteen (14), housing units do not qualify as affordable rental housing 'immediately upon lease-up or at any time during the Affordability, Period, the Loan wil,l be *Immediately due and payable to the City, subject ,to the "next unit rule". a A 21 During me Affordabifinty Period,, submit to City annually a copy of Woodmon,t Apartments,Ltd. annual audit, and, TDIICA LIHTC compliance report. SPECIFIC PURPOSE: The specific purpose of this Project i's, to increase the availability of 0 # quality, accessible, and affordable housing for low income City residents. PROJECT OBJECTIVES: Construction of affordable housing project to create 2512 new 0, it its. Fourteen (14) of these units, w"fl be dedicated HOME-assi I I I unt I i sted units, with a per-un subsidy amount of$107,1143.00 per unit ($1,500,000.00/14 = $107,143.00�). HOME Funds - Exhibits Woodmont Apartments, Ltd. Page I EXHIBIT "B" WOODMONT APAR TEEN TS, 'LTD. Woodmont Apartments SOURCES OF FUNDS City of Fort Worth HOME funds $115001000 Freddie Mac $15,000,1000 Tax,Credit Equity— Federal 81712,065 TDHCA PWD HOME funds 316,0001 TDHCA HT F 460,000 1 GIC Incorne/N01 7951700 Deferred Developer Fees 2,657j 6 TOTAL $291,441 1311 Land Acquisition Cost &Title Costs, 1,5801,977 Construction Costs & Fees 17,820,533 Developer Fees &Overhead 51,364,227 Deposit to Capitalized Moneys Acct 573,075 Financing Costs 3$79119184 Marketing/Start Up Reserves 21 1200 Tax Credit Related Costs 96J315 TOTAL $2914119311 HOME Funds - Exhib,its, Woodmiont Apartments, Ltd. Page 2 "HI IT "C91 PROJECT IMPLEMENTATION TIMEL,INE Woodmont Apartments, Ltd., A!LQUISTION SCHEDULE, Tax Credit Award July 2008 HOME Loan Closing Jul y3 , 20019 Begin Construction August 2009 HOME Funds Repaid 38, years from date of Loan Documents Construction Completion February 2 011 LEASE-UPI INSPECTION & REPORT' ►SCHEDULE TARGET DESCRIPTION DATE,/ACTIVITY July 2009 to May, During the Contract terra, Wood. _. mont Apartments, Ltd will submit monthly July 2011 and _ finan�ial reports as d signated by the City. July 20019 Construction Loan Closing - Woodi-not Apartments, Ltd. will execute all City Loan documents necessary to secure the City's HOME Funds investment in the Project. These docun-cents will include, but not be limited to, a subordinate note and deed of trust on the Property. August 2009 Woodmont Apartments, Ltd. will. begin construction on_252'-unit Woodmont Apartments February 2011 Tenant lease up begins; Designation by unit of the fourteen (14) floating HOME-as,sisted units that year, and the status, report on occupancy of those units and income eligibility of the tenants. Annual Inspections Annual On-Site inspection to occur each year during AffordabIlity Period Reporting Woodmont Apartments, Ltd. shall ffirnish City with the following, information.- a), during lease-up, and until Project is fully leased, on a monthly basis, summary beneficiary data regarding the household income, size, race, ethnicity, gender of head, of household, disability status and rental assistance type for all tenants., b) During the 20 year Affordability Pen*od, copy of rent rolls and copy of lease forms used. c) Other such inforrnation as may be necessary to verify compliance with HOME Regulations. d) Report of HOME match should be reported quarterly each month from date of Contract. HOME Funds, - Exhibits, Woodmont Apartments, Ltd. Page 3 X-1 Xr EM11BIT I'D" AUDIT REQUIREMENTS Woodland Apartments, Ltd. CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT DEPARTMENT AUDIT REQUIREMENTS Organizations, expending $500,000 or more in federal awards (from City of Fort Worth and other funding sources) during their fiscal years shall obtain either an annual single audit or a program specific audit. Organizations may have a program specific audit in accordance with OMB Circular A-13 , or other standard federal set forth 'in the Contract if applicable, if the expended funds for only one tecteral program as listed in the y I Catalog of Federal Domestic Assistance (CFDA). If funds are spent for more than one federal program, a single audit is required. 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 CFDA number(OMB A-133 § .310 . The independent, auditor's report should include all of the relevant items listed on the "'Audit Report Checklist." Additional guidance on the conduct and reporting of these audits is contained in the latest issuance of the following publications,-. Government Auditing Standards issued by the Comptroller General of the United States, 2003 COMB C ircul ar A-13 3 as revised 6/30/97 and amended June 2003 OMB Circular A-133 Compliance Supplement AICPA's Statement of Position 98-3. "Audits of States, Local Goverrtments, and Not-for-Profit Organizations Receiving Federal Awards"" Various AICPA audit guides for nonprofits, colleges and universities and health and welfare organizations AICPA's Audit Risk Alert"State and Local Governmental Developments" Government Auditing Standards by the Texas Department of Housing and Community Aff irs for Properties Receiving Low Income Housing Tax Credits 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/program, audit. Organizations receiving federal awards from the City of Fort Worth who are not required to have an audit shall certify in writing to the agency. 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. The following items should be submitted to the City of Fort Worth Housing and Economic Development Department within the required timeframe: HOME Funds - Exhibits Woodmont Apartments, Ltd. Page 4 Due 60-days, after grganization s .iscal year end in,-the vear"that, the ro ect was coi uifeted.- (required for all subrecip tents ) Completed Audit Certification Form Due within the earlier of 30 dam after rece the door's r months after the end of the audit of I evort or nine ,period. Two copies, of the entire audit report issued by the CPA Two copies of any management letter issued by the CPA in conjunction with the audit report V .0, T,wo copies of m,anageinent's, comments on all findi*ngs, relcorn,iTlenaanions, & questioned costs confairied in the audit r ort and management letter, inctuding a de tai led corrective action plan Failure to submit any of these items by the required due date may result in holds on current draw requests, suspension of the organizat ion's con tray,t,(s) and eligibility for future funding. If the organization does not 'ineet the, requirements of having a, s,ingle/progra,m audit conducted, records must still be kept available for review or audit by City of Fort Worth staff(OMB A-133 Subpart, B Sec 200(d). If additional inforniation Is, needed concerning the audit requirements, pTease call (817)1392-614'1. HOME Funds - Exhibits Page 5 Woodmont Apartments, Ltd. CITY OF FORT WORTH HOUSI­NG AND ECONOMIC DEVELOPMENT DEPARTMENT SINGLE AUDIT REPORT CHECKLIST' The Department developed this checklist to help organizations improve the quality and completeness of audit reports., General Purpose or Basic Financial Statements of the Organization Opinion/Report on Organization's Financial Statements, 'in accordance with Government Audi'ling Stam/ards Notes to, the General Purpose or Basic Financial Statements of the Organization to A Schedule of E,xpenditures of F'elderal, Awards, Incluaing the Department's contract numtiers, the total ex d for the federal program, and the CF DA number -13 3 Subpart, C Sec 310)1. Opinion/Report on Schedule of Expenditures of Federal and State Awards Report on Coy lmpljance and on Internals Control Over Financial Reportinv, Based on an Audit of,Fin ancial Statements Perfori-ned. 'in Accordance With Governinent Aucliting,Stam dardv. (OMB A-133 § 505 (b)) , a Re port on Compliance with Re uirements_Applicable to, Each Major Program and 'Internal Control over Compliance in Accordance, with OMB Circular A-133. (OMB A-133 § 505 (c)) uestionea Costs (OMB A-1 33 §. 505d), including-, Summary Schedule!of Prior Audit and��1.... n s� Schedule of'Fj�ndi� ,F'indin&sLreporting the status of all findings included in the prior audit's schedule offin dings and questioned costs. (OMB A-]33 See., 315 (a) and (b)) Corrective Action Plan including(OMB A-1 33 Sec. 3 15 (c), name of'person responsible for the corrective action, corrective action planned, anticipated completion, date, and explanation and reason if audittie does, not agree with findings or believes correction is, not required. All reports are signed and dated by the auditor Two copies of the audit reports are submitted Two copies of the management letter,, if'issued in conjunction wi,th the audit report. Two es of comments, by management concerning all findings and recomniendshone include in management letter, inclu,d,ing a corrective action plan. HOME Funds - Exhibits Wolodmoint Apartments, Ltd. Page 61 CIF'FY OF FORT' WOR"FH HOUSING AND ECONOMIC DEVELOPMENT, DEPARTMENT Audit Certification Form Subrecipient., Fiscal Year Ending.- Month Day Year We have exceeded the federal expenditure threshold off`$500,000. We will have our Single Audit or Program ecific 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 $500,000 federal expenditure threshold re,quired for a in teAudit or a Program Specific Audit to be perfon-ned this fiscal year. (:Fill out schedule belmi) Must befilled out if Single Audit o�r Prograrn Audit is not required: Federal Expenditure Disclosure Federal unds Pass Through Pro rani Name& Contract F'ederal Grantor Grantor CFDA Number Number V--,xpe n d i t u,res Total Federal ExI),endituresfog.this Fiscal Year ........... Printed N rne Title(Must CFO,CEO or eqUivalent) Authorized Signature(Must be CFO,CEO or equivalent) Phone Number Date r 9-1 .I aiture, to submit this or a similar statement or failure to submit a compl,eted single audit package as I #I c I tescrined in the audit requirements by the required due date will result in suspension off din and will affect -lit el'igib I y for future funding. Subm*t this I I ,Department,within 60 days aji,er the endqfyour I brm to the Gty of Fort W6rIh flousing a,nd L'o"conointIc Development Fiscal year HOME Funds - Exhibits Woodmont Apartments, Ltd. Page 7' E I I "E" REPORTING REQUIREMENTS Woo'dmont Apartment, Ltd. ("Woo�dmont") PLoject Pro,press "Keport. Within fifteen (15) days follo,wing the end of each quarter during the term of the Contract, Woodmont must submit a report detailing Project construction progress, the percent of construction completion, anticipated construction completion date and any construction problems encountered and solutions proposed. Submissions must be signed by a duly authorized agent of Woodmont (Form E-1). Benelicl a Performance R rt. During, lease-up period,, and until Project is fully leased, on a monthly basis, report summary beneficiary data regarding the household income, size, race, ethnicity, gender of head of household, disability status, and rental assistance type for all tenants residing in HOME-assisted units (Form E- 2). After the end of the to of the Contract during the Affordability Period, Woodmont shall submit this report at least annually on for all tenants residing in HOME-assisted units. The annual report during the Affordability Period shall be due by the 15 1h day of the third month after the end of the calendar year. HOME, Match Report Within fifteen (1,5) days following the end of each calendar quarter during the term of the Contract, a report detailing HOME Match Dollars Submissions will be signed by the duly authorized agent of Woodmont (Form.E-3). NI/WBE Compliance. An M/WBE Monthl Participation Rqport must be submitted monthly to City's, M/WBE Office and the Housing, and Economic Development Department until the Contract is completed. The first report will be due ninety (90) days after commencement of work. The monthly report must have an original signature to ensure accountability for audit purposes. These reports, are to be submitted regardless of whether or not N1VWBEs, were utilized. If there was no activity by an M/WBE in a particular month, place a "0" or "no participation" in the spaces provided, and provide a brief explanation. Provide the City's M/VVB,E office with proof of pay Iwent to your M/WBE subcontractors and suppliers (Fon-n E-4). Final SummaKy Pia vrqent Roort.— Upon completion of the Project, or within ten (10) days after receipt of final payment from the City, whichever is later, Woodmont shall provide the Housing Department with a Prime Contractor's/Consultant's, Final Summary Payment Report to reflect the total participation from ALL subcontractors/suppliers utilized on the Project(Form E-5). TDHCA Certificate of Completion. Within thirty(30) days of completion of the construction of Project, a duly authorized agent of Woodmont must provide the City with a copy of the TDHC'A HOME Investment Partnerships I .. Program Certificate of Compietion report. Annual Owner's CoMp,liance Report. Each year during the Aflo rdability Period, Woodmont will provide the City a copy of the TDHCA.Annual O rne:r's Cqmp[iance Report , Parts A, B, C., and no later than March I" of year following the reporting year. Rent Rolls and Lease Forms. Annually during the Affordability Period, Woodmont shall provide the City with copies of rent rolls and copies of the lease forms used. HOME Funds - Exhibits "weed cent Apartments, Ltd. Page 8 corm E" PROJECT PROGRESS REPORT FRO TOG `lease provide ire or ation ': �rojec construction posses, the percent of construction completion, anticipated construction completion date,e, and- construction problems encountered and solutions proposed. I. ACCOMPLISHMENTS. 110 ADDITIONAL COMMENTS REGARDING ACCOMPLISHMENTS THIS MONTH: Ill, PROBLEMS ENCOUNTERED AND SOLUTION RO O EDO V ANTICIPATED ACTIVITIES DURING NEXT MONTH* HOME Funds - Exhibits Woodmont Apartments, Ltd. Page 9 A 42 10 I III utM yy bw to CLI "P-.g II to ry Qu. ?SOS 10 too r 1� 4 Z, X 7:1 CO cd Form E-3 HOME Match Reporting Form For Su wrec p ent HDO Agencies City of Fort Worth Housing and Economic Development Department Agency Name Contract No. Month Ending Page of 'Prepared By- Date H' ME Match Contribution, by Housing Unit Address. T his Cumulative A i Descri pton & Source* Month Total Cash First Presbyterian Church do,na, ttors, 1940 Spring St. 101 000 30,000 In-Kind • Materials, A ppiiances, ete; I A T. Example.- Whiripoot Appliances, 1,950 1952, & 191� S p rin St. 7,000 12 00 g In-Kind, Value of Professional Services Donated Example.• XYZ Arc hitects, discounted services, 10 site plans (see $1000 address on attached letter) In-Kind Value of Volunteer Hours Example: March volunteer hoursfior 1950,1 1952' & 19,65 Spring St. $3000 (See attached volunteer Log)_ Governmentako Fee Waivers/Tax Abatements/rand, Purchase Example.-, Reduced ice purchase of cit d vacant lots,, 1234p 1236, 1238, 1240 Greer fie Way $816010, Exa le,.,• NEYBuilcUM Permit Fee, Waivers, Travis Ave. $150!0 Total, All Match Contributions Copies f'supporting documentation should be attached.- Lettersfirom donors; Copi,-�s-oj'donor checks or invoices showing reduced prices;copies of volunteer to with hours worked ky address,-copies of supplier invoices.for donated materials;copies oj* documentation regardingfte waivers or tax abatements. f-C, HOME Funds - ExhibAS Woodmont Apartinents, Ltd. Page 13 All M L U. J I CL I III;" LU """ R 2 0. a mow om z it � z 0 .■ w z Id. m W o ow U. z 01 U) LU EPM1 N W H 001 Z U 1-- 0. Lu 0 a uj LL co z w Ex (n LU �I w LU (D c i"i"" w w 0 LU ANILA W a) -- , uj a L z LL W Z CL 7t 01 LL 0 4 0 64 • c 4 > 0 all 0 -W . .•.a 0 ca. w --- ' a. > w ^w a C W a) 0) (n X CL I co b3l.L co I z AMA 01 u -= z. ce 0 CL Arm w LL. u w z UJ UJ W CL ' I x*= " w 7 i5 z z 0 z c M ... Z 0 � w a, u +r► �„ �s 0. F Z M) z LU 0 >0 14CL CL Iwo .J Z 0 z z o m INNNNINN, UL 0 z 0 LL 0 0 z w um z 0 z .J um) 0 cl M:t uj 1 01 CL III'Wii '.- L UL C ui w 0 LL Z5 CL �_ LIJ 0 Z UL Z ' Z �., ---LLJ�� < 0 z ... 0 n w u CL � � z " LL# Iwo CL 00) 0 Li- C) 0 LL F-- w o W CL 01 (a �— gUj! �-- , Z ' 0 UU � � w w ui W 3: W C uj � W 0 >= C) z 0 w UL UL � W (J CL � X � ui 0 < ui w LU -�- < � � � � Z � D LL co . 0 3: L.L. �, co W 0' 0 z 'ZZ 0 rw �. W W' -- " 0 � m u� , LLJ Co 0 ��" M CL U. z Z ""� < w mom oft �* 1(1) �­ F- (J) (:)a, z z Z U. z z ongm 2 00 LL w �" ■ �"" W on C3 w co < C CL 0. J z �, o 20 F460 mimommoo 2 L) x 0 z W6 a, W_ Lij Z UJ _ 0 0 z z CE� F- U_ w g z 0 ti co uj 0 ONE C3 z Co c z 0 ) L >_ —M � z �ULJ,;z Cc 0 0 01 W Q_ E LL 0 Lul 0 0 o -C� 41' MI&C Review Page I of 2 Official site the City of Fort'"earth,Texas CITY COUNCIL AGENDA ORTWORTH COUNCIL AC1111b,41-0 Approved on 5126/2009 DATE.: 5/26/2009 REFERENCE C-23550 LOG NAME: 17WOOlDMONTAPTS REV 0 — N0405 CODE: C TYPE: NOW PU�BLIC No CONSENT GI- SUBJECT: Reallocate,City HOME Program,funds,, Approve a Subordinate Loan Not to Exceed $1,500,000.00 to Woodmont APartments, Ltd., Utilizing City HOME Program Funds for Woodmon,t Apartments and Authorize Contract for Project 0 1 N N 011 ....................... I _00.NOW W RECOMMENDATP,N0 It is recommended that the City Council.- 1. Authorize the reallocation of City HOME Program funds for the construction of the Woodmont Apartments; 2. Approve a subordinate loan to Woodmont Apartments, Ltd., for the project in an amount not to,exceed $1,5 1,000.00 from the City of Fort Worth utilizing its HOME Program funds-, 3. Authorize the City Manager or his designee to execute a contract for the project with Woodmont Apartments, Ltd., for a two year term beginning on the date of execution of the contract", 4. Authorize the extension or renewal of t ,lqnWac"t for up to six months if Woodmont Apartments, Ltd. requests an extension and is not in default under the terms of the contract; and 5. Authorize the City, Manager or his designee to amend the contract if necessary to achieve project goals provided that the amendment i's within the scope of the project and in compliance with applicable laws and regulations, governing federal grant funds, D ISQUSSION. Woodmont Apartments, Ltd., a Texas limited _"kh" larship oonsisting of NRP Woodmont Apartments, LLB, and Wind Terrace, Inc., a nonprofit affiliate of the Fort Worth Housing Authority, has requested a subordinate loan for an amount not to exceed $1,500,000.00 for the construction of Woodmont Apartments, a 252-unit,affordable rentall' complex for families located at 10,29 Oak Grove Road and Southeast Loop 820, Fort Worth, Tarrant County, Texas 76115. The project site consists of 14 acres as shown on the attached exhibit. NRP Wo ►dmont Apartments, LLC, is,the general partner and NRP Contractors, LLC, is the contractor. The 14 month estimated construction period is anticipated to begin June 2009, and be completed in August 2010. The development will feature a children's learning center, a swimming pool, a computer lab, a fitness center and other resident services. Total project cost is $27,952,214.100 including the City's HOME funds. The loan of$1,500,000.00 from HOME,funds contributes $5,952.00 towarOsfhe tot6l per unit cost of$110,921.00. The leverage ratio for the HOME funds is 1 to 19 and will produQq-1A HOME-assisted units. The term of the contract is for two years, the estimated time of construction df1'i4'prpje'ct, The term of the loan is 38 years,. The interest rate willl: be 3 percent but no interest will ac cru6 during the construction and lease up phase of the project. Interest will begin to accrue no Doter than the end of the first three years of the loan term. Principal payments will begin in year 10 of the l'aan term. Both interest and principal payments will be made from available cash flow. The HOME funds will be secured by a subordinate Deed of Trust,on the real http,-,//apps.cfwnet.org/counc*l iew,.asp. 1 _packet/mc—rev' ?]D=1 1 468&counc11date=5/26/2009 7123/2009 o M&C Review Page 2 of 2 property. Repayment,of principal and any accrued interest will, be due not later than 38 years from the date of the contract between the Lender and Borrower. Other conditions of the contract include minority and women owned business participation in accordance with City policy. In accord�ance with the HOME regula�tions, 24 CSR Part 912 et se q., the purpose of this, project, is to benefit low and very-low income citizens by providing them with affordable housingi. Woodmiont Apartments, Ltd., has provided copies of project support letters from Rep. Lon Burnam,, the Rainbow Housing Assistance Corporation, the Southland Terrace Neighborhood Association and 123 neighborhood, residents. The site is located in COUNCIL DISTRI lo`�l FISCAL INFORMATIONXERTIFICATIONN The Financial Management Services Director certifies that upon approval of the above recommendations, fuunds will be available in the current operating budgetp as appropriated, of the Grants Fund. TO Fu nd/Accou nt/C enters FROM FunO/Acgoun enters GR76 5391'x 0 005206133340 $358.657.35 GR76 539120 005206133:L30 $35846 .35 .._57_ GR76 539120 005206698340 $120,783.22 GR76 539120 005206698330 $120,783.22 GR76 539120 005206772340 $304,562.84 GR76 53,91210 52067 233 X304,562.84 G 7 539120 005206846340 14 57.26 GR76 5391 20 005206846330 i254 57.26 GR76 539120 005206930340 $421.535-00 GR76 5391 20 005206930,3301 $42 0-500 GR76 539120 00520600163401 $171,638.55 GlR76 539120 005206006,330 171 638.55 GR76 53 1201 00520,61813140 $246_196�34 GR76 539120 0052061 $24639,65.78 Submifted-for CitV Manager's Office by; i Thomas Higgins (6140) Q d9 ina 't''ng DepArtneat—H—eadz Jay Chaipa (61912) Add:Wo_na1,jnj_o_r_rnAL1QP Con-tact: Charlie Price (7381) Janet' Tie,ken (7550) ATTACHMENTS Woodmont� SftePlan.p http://apps.cfvvnet.org/cotinc*I 91D=1 1468,&counclidate=5/26/2009, 7/23/2009 1 _packet/mc–review.asp.�