HomeMy WebLinkAboutContract 42289-A3 uITY SEC
CONTRACIr NO0.
THIRD AMENDMENT TO CITE" SECRETARY CONTRACT NO. 42289
WHEREAS the City of Fort Worth ("City") and Tarrant County Housing Partnership,
Inc. Developer made and entered into City Secretary Contract . 422.89 collectively with
all previous amendments, the "Contract"),
WHEREAS, the Contract provided funding to Developer pursuant to a grant received.
by ��t from the United States �tn�� t � Housing and Urban Development ("HUD"'
through the HOME Investment Partnerships Program ("HOME"), Catalog of Federal Domestic
Assistance No. 14,.239;
WHEREAS, the HOME B, re ulat ins require that 15 of the City's HOME groat funds
be set aside for housing to he developed, sponsored or owned by a Community Housing
Development Organization `CHDO" and Developer qualifies as a CHINO,
WHEREAS, the City agreed to loan Developer $1..,000,000.00 of its SOME CHINO set-
aside funds in the farm of a subordinate loan to complete the rehabilitation of a foreclosed l l
building apartment complex commonly known as the :Beaty Street Apartments, under the terms
and conditions dew ed in the Contract"
WHEREAS, the City also agreed to loan the Developer$1,699,175 of its Neighborhood
orl ood
Stabilization Program funds In the form of a subordinate loan for the project under the terns
and conditions of City Secretary Contract No. 42290, and Developer obtained a. line of credit
from a bank for additional financing for the project;
WHEREAS, due to the age of the buildings being renovated as well as other unforeseen
expenses including asbestos and lead renediatien, tie rehabilitation costs � �� � tludet
by$195, .00 so there was a gap in Developer's financing, for the .project,
WHEREAS, HUD notified the City that it had $19,526.51 of HOME CHDO
Reservation funds from 1998 that had to be expended on an eligible HOME; project and City
agreed with Developer to increase the HOME loan by that amount in the First Amendment to
the Contract to assist with the funding gap and to prevent the City from losing the CHDO
funds,
WHEREAS, HUD notified the City that $45,000.00 of 2006 HOME funds must be
upended for a HOME pr 9eet and City agreed with :Developer to increase the HOME loan by
that amount in the Second Amendment to the contract to further assist with the funding gap
and to prevent the City from losing the benefit of these funds;
WHEREAS, the total. HOME loan after the First and Second Amendments to the
Contract was $1,,064,,526.51
WHEREAS, review of the project identified potential tenants that may he eligible for
relocation payments under the Uniform Relocation Act `UR-A" as set forth. In Section 8.3 of
rri the Contract, and City Council approved an additional $,265,000.00 of HOME Funds for the
rn project and an extension of the original 2-year term t o a .year e�� t+� ��� + t URA
requirements (M&C C-26586 , and,
OFFICIAL RECORD ',
co CITY SECRETARY
Amendment No. 3 to CSC"42,28,9 FT. WORTHo TX Rev 0 1/2014
'
:1:
CHP Beaty Street Apartments � ��
WHEREAS, it is the mutual desire, of City and Agency to amend the Contract to
provide for a total HOME loan of$1 X91526.51 and a term of 6 years for the Contract to meet
URA requirements.
NOW, THEREFORE, City and Developer hereby, agree to amend the Contract as
follows*`
a. Section 3.1 is deleted in its entirety and replaced with the following.-
"The term of this Contract begins on the Effective Date and terminates in 6 years unless
earlier terminated as provided in this Contract.,"
b. Section 4.1 is deleted in its entirety and replaced Frith the following.-
"'City shall loan up to One Million Three-Hundred Twenty Nine
Thousand Five Hundred Twenty Six and 511100 Dollars ($1,329,526.,51) of
HOME Funds in the form of a subordinate loan to complete the construction of
the Required Improvements and comply with URA and other regulatory
requirements, under the terms and conditions described herein (the 'Loan .
C. Exhibit "B" — Sources and Uses attached to the Contract is hereby replaced
with the attached Exhibit"B"— Sources, and Uses Revised 01/2014
d. This amendment is effective as of the Effective Date of the Contract.
11.
Developer and City agree to enter into a separate Mod'ificatlon, Renewal and Extension
Agreement to reflect the new Loan amount.
All terms and conditions of the Contract not amended herein remain unaffected and in
full force and effect, are binding on the Parties and are hereby ratified by the Parties. Terms
not specifically defined herein shall have the same meaning as in the Contract.
[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]
Amendment No. 3 to CSC 42289 Rev 0 1/2 0114
TCHP-Beaty Street Apartments(HOME) Page 2
ACCEPTED AND AGREED.
'TARRANT COUNT HOUSING CVIN OF FORT' WORTH
PAR,TNERSH
177;Wa
By* By-* AA,0
Don a Fernando Costa,
Pries e,nt,/,CEO Assistant City Manager
A rTEST 0, APPROV AS TO F AND LEGALITY:
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City Secret Ass'stant City Attomey
M&�C,#,� C-26586 Oil Olt
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Date,.- 12/1 0/2�O 1.3 ox
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OFFICIAL
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CITTSECRETARY
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CITY S R I y
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Amendment No. 3 to CSC 42289 Re WORTH, TX Rev 0 1/20 14
TCf]P,-Bea*,y Street Apartments(HOME) Page 3
EXIIIJBIT "B"'
Sources, and Us I Revised
.�,� r�„f/ ./„ .,/fir, /. ,,r..i... �„ ,, J ,, r...././ ,,, ,...,. / .,. / .✓ r ,r,/,>. / / /,.,r /.
/
/ I
/
/
si5I '
Acquisition Insurance_ property y $20I, 0I I0
liability, builder's risk
Acquisition- Closing costs, $118 8O 1 80 1
$1 181
extension/legal fees,
......
,.Ac u1sition- Asbestos Survg $6,12 5 $6,1125
Acquisition- Lead Base Paint $ 41000 $14,10010
Test
Relocation Agent Fees, $1351000 $13 51000
Relocation e n s e $ 6 51 0 0I01. ...... �.:,,,�. $26,51000
Architectural a1 $8 36 $8,360
Rehab and Hari Costs $208341 $1,06141512.06.51 $2481,75O
I
Devel2p Fee 5,% NSP* $849:88 $841988
'TOTAL $1 17371255 $1 12 915216,5 1 $248,7501 $5151000
01531,51
1 $3183
*S50,000 Developer Fee to be pa Id upon c11os g o1'Beaty Street property, and the remainder be
paid when,City has receivv�ed from Developer all information equire�d to close the project n IDIS and
egin the Affordability Period
"Nothing in this Contract h�all be construed as a commitment by the City to provide these funds.
***Relocation Expenses are project soft costs and e1 g b11e URA costs re1a e 1 to the project 'Including
,'e f ll wing for tenants determined to e displaced ��y the project:
�
* Moving expenses
Replacement hung payments
Amendment No.3 to CSC 42289 Rev 0 1/2014
T'CH -Beaty Street Apartments,(HOME) Page
t Fort Worth, Texas
y
Mayor and Council Com unication
EROSION
COUNCIL,ACTION: Approved on 12/10/2013
DATE: Tuesday', December 10,, 20:1�3 REFERENCE NO.: **C-26586
LOG NAME.- 17'BEATY STREET APARTMENTS-ADDuTIONAL CH DO FUNDING
S-U-B1J-EQT1-ff1
Authorize Change of Use and Expenditure of Additional HOME Investment Partnerships Program Grant
Funds in the Amount of$265,000.001 for a Total Amount of$1 329,526.51, to Tarrant County Housing
Partnership, Inc., in the Form of a Subordinate Forgivable Loan,for the Beaty Street Apartments Located in
the 5500 Block of Beaty Street, Authorize Execution of a Contract Amendment, and Authorize Substantial,
Amendment to the City's 2004-2005, 2008-2009 and 20019-2010 Action Plans, and Substitution of Funding
Years (CO CIL DISTRICT 5)
RECOMMENDATION.
It is recommended that the City Council.-,
1. Authorize a substantial amendment to the City's 2004-20051, 20081-20091, and 2,009-201 0 Action Plans,
2., Authorize the substitution of current and prior funding years in order to meet commitment,
d a
isburs,elment and expenditure d,eadl,ines for grant,funds from the United States Department of Housing
and Urban, Development;
3. Authorize a change in use and, expenditure of additional HOME Investments Partnerships Program
Grant funds, in the,amount of$2,65,,000.00 for a tota,l amount of$1,329,526.51 toTarrant County Housing
Partnership, Inc., in the form of a, subordiinate, forg,iveable loan for the acquisition, rehabilitation and
redeve�lolpment of the Beaty Street Apartments located in the 5500 block of Beaty Street,
4. Authorize,the City Manager, or his,designee,, to execute a contract amendment and any related
documents for the project with the Tarrant County Housing, Partnership, Inc.,, and extend the contract to a
six-year term bleig,inining on the date of execution of the contract;
5. Authorize the City Manager or his designee to extend or renew the contract,for up to one year if'Tarrant
County Housing, Partnership, Inc., requests an extension and such extension is necessary for completion
of the project,
6. Authorize the City Manager, or his designee, to,amend the contract if necessary,to achieve project
goals provided that the,amendment is within the scope of the project and in, compliance with City policies
and applicable laws and regulations governing the use of federal grant funds and
7. Authorize the City Manager to substitute funding years in order to meet commitment, disbursement,
and expenditure deadlines for grant funds from the United States, Department of Housing and Urban
Development.
.............. ......................................... ...... ........
DISCUSSION:
Logname: 17BEATY STREET APARTMENTS-ADDITIONAL CHDO FUNDING Page I of 2
City Council awarded grant funds and contracts to Tarrant County Housing Partnership, Inc,. (TCHP), a
Community Housing Development Organization (CHDO), for the acquisi,tion, and redevelopment of Beaty
Street,Apartments located in the 551010 block of Beaty Street just north of East Lancaster Avenue. City
Council approved the amount of$1,699,7,55. in Neighborhood Stabilization, Program, grant funds (ICI&C s
C-24344 and C-244,55), and the amount of$1,0001,000.00 in HOME CHDO funds (M&C C-25072)for the
project. City also executed two contract amendments in the amounts of$19,,526.51, and $145,0010.00 of
additional HOME CHDO funds,to assist TCHP with its construction funding gap for a total in the amount of
$1,064,526-51 in HOME CHDO funds for the project to date.
The project consists of the acquisition, rehabilitation, and conversion of 73 units in 11 buildings to 66 units
in 110 buildings. One building was converted to a community and leasing office. Subsequent review and
monitoring, of the project identified tenants that,may be eligible for relocation payments, under the Uniform
Relocation Act (URA).
Staff recommends additional HOME CH,DO funding in the amount of$265,000.00 and, an extension of the
contract term to six years in order to meet federal U,RA relq ul ireme nits. The additional -fund's will be used for
any eligible URA costs related to the project. Upon approval of this M&C,, total HOME C funds for the
project will be $1,329,1526.51.
The Action Plan funding years selected may vary and be substituted based on the Principle of First In,
First Out, in, order to expend oldest grant funds first. The project, benefits, low and very low-income, citizens
by providling them with quality, accessible, affordable housing. A public comment period on the
Substantial Amendment to the 2004-2005, 2008-2009, and 2009-201 0 Action Plans, including the intent to
change use and expend HOME funds, was held October 3, 2013 to November 4, 2013., Any comments
are maintained, by the Housing and Economic Development Department, in accordance with federal
reigulla�tions.
This project is located in COUNCIL DISTRICT 5, Mapsco, 79G.
FISCAL INFORMATION CERTIFICATION,,
The Financial Management Services Director certifies that upon approval of the above recommendation
and receipt of grant funds,, funds will be available in the current and future operating budget, as
appropriated, of the Grants Fund.
FUND CENTER ENTERS.-
TO Fund/Account/Centers FROM Fund/Account/Centers
QR76-_539120 005206930500 $24_,77.00 GR76 539120 $Z4_1 37-010
GIR76 539120 005206271500 $1_Q5,000-00 G 876 539120 00562�7
1201090 19501001.00
GR76 5319120 0172063515010 $145,263.00 GR76 539120 017206351090 $A5.263-00
CER'"ll-IFICATIONS:
Submitted for Co Managor's Offil,ce _y,4 Fernando Costa (6122)
o1r inafin Pep rtment Headi Jay Chapa (5804)
Cynthia Garcia (8187)
Add1fional Informafilion, Contact: Jesse Madsen (7337)
........... ...........__111111111111.....................
ATTACHMENT'S
1., available funds.PD,F (CFW Internal)
2. Street ritinents mappdf (Public)
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_a-
Logname: 17BEATY STREET APARTMENTS-ADDITIONA"L CHDO FUNDING Page 2 of 2