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HomeMy WebLinkAbout060566-A2 - General - Contract - Journey Home Housing, LLCCSC No. 60566-A2 SECOND AMENDMENT TO CITY OF FORT WORTH CONTRACT 60566 BETWEEN THE CITY OF FORT WORTH AND JOURNEY HOME HOUSING, LLC FOR CROWLEY ROAD PERMANENT SUPPORTIVE HOUSING PROJECT This second amendment (the "Amendment") is made and entered into by and between the City of Fort Woi-th, a home-rule municipality of the State of Texas (hereinafter referred to as the "City"), acting by and through Dianna Giordano, its duly authorized Assistant City Manager, and Journey Home Housing, LLC, a Texas limited liability company ("Developer"). Each party shall be individually referred to herein as Party and collectively as Parties. RECITALS WHEREAS, the City entered into an Agreement with Agency to provide seivices more specifically described in the agreement, City Secretaiy Contract No. 60566, (the "Agreement"); WHEREAS, the Parties desire amend the repoi-ting requirements in Attachment "O-3" of the Agreement to better• align perfot•mance measut�es across sevei•al permanent supportive housing programs; NOW THEREFORE City and Agency do hereby agree to the following: I. AMENDMENT TO AGREEMENT NOW THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: A. Attachment "O-3" is hereby deleted and replaced with the following: EXHIBIT "O-3" REPORTING FORMS Quarterly Report Current Reporting Quarter Submitting Agency Contact Name Please include outcome narrative that describes how measui•e was accomplished for each quarter. OFFICIAL RECORD CITY SECRETARY Second Amendment to CSC 60566 FT. WORTH, Tx CoFW and JOURN�Y HOMG HOUSING LLC Effectiveness Measures and Quarterly Outcomes Measure 1 . At least 85% of clients will be housed within 60 days of being given a voucher (Please list clients housed and those housed within 60 days) Outconze Measure 2 . Less than 15% of clients exit program and enter homelessness within a year of exit (Please list clients who exited in the time period the prior year and whether they returned to homelessness) Outcome Measure 3 • Establish a base line of income goals by tracicing income (both employment and non-employment) tlu�oughout the year I have reviewed this �•eport and cer•tify thcat the mecrsuJ�es pr•ovided ar�e accur•ate and czppropriately reflect the Homeless St��ategies goals set forth in tl�e cont�•act. Authorized Signatory Date II. Signatory Title All terms and conditions of the Agreement not amended herein remain unaffected and in full force and effect, are binding on the Parties and are hereby ratified by the Parties. Capitalized terms not defined herein shall have the meanings assigned to them in the Agreement. [SIGNATURE PAGE FOLLOWS] Second Amendment to CSC 60566 CoFW and JOURNEY HOME HOUSING LLC IN WITNESS WHEREOF, the parties hereto have executed this Amendment, to be effective this day of , 20_ FOR CITY OF FORT WORTH: FOR AGENCY: Journey Home Housing, LLC, a Texas limited liability company �I ���� Dianna Giordano (Jan 23, 2026 14:02:06 CST) Dianna Giordano Assistant City Manager O1/23/2026 Date: APPROVAL RECOMMENDED �l.` ' _ �� Bethany Warner (Jan 23, 2026 12:50:13 CST) Bethany Warner, Assistant to the City Manager O1/23/2026 Date: APPROVED AS TO FORM AND LEGALITY / Gavin Midgley, Assistant City Attorney ��--- Toby Owen (Jan 23, 2026 05:46:35 CSTI Toby Owen, Manager O1/23/2026 Date: 4 ��nu ATTEST: � °F FORr%a° a° �� o ��9a o �o �.p ' � PVo 0=4 CC��/� ../��a� �°° � �°° ° � �� � ��nb nEXp?o4o Jannette S. Goodall, City Secretaiy O1/23/2026 Date: Contract Compliance Manager: By signing I acicnowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all performance and repoi•ting requir•ements. ic� G��� Tara Perez� Manager•, Homeless Strategies Date: O1/29/2026 M&C No.: 22-0456 t�FFICIAL RECORD CITY SECRETARY Second Amendment to CSC 60566 CoFW and JOURNEY HOMG HOUSING LLC FT. WORTH, TX City of Fort Worth, Mayor and Texas Council Communication DATE: 06/14/22 M&C FILE NUMBER: M&C 22-0456 LOG NAME: 19ARPA AWARDING PERMANENT SUPPORTIVE HOUSING PROJECTS SUBJECT (CD 3 and CD 8) Authorize Forgivable Loans in the Aggregate Amount of $11,641,276.00 from Federal and City Sources to Three Developers for the Development of 128 Permanent Supportive Housing Units, Authorize Execution of Related Contract and Loan Documents, Waive or Defer Certain City Fees Related to the Development of Two of the Projects, and Find a Public Purpose and that Adequate Controls are in Place RECOMMENDATION: It is recommended that the City Council: 1. Award $4,028,476.00 of HOME Investment Partnerships American Rescue Plan Program funds in the form of a forgivable loan to New Leaf Community Services or an affiliate for the development of 48 units of permanent supportive housing; 2. Award (i) $4,928,000.00 of HOME Investment Partnerships American Rescue Plan Program funds, (ii) $421,999.00 of American Rescue Plan Act, Subtitle M(State and Local Fiscal Recovery Funds) funds, and (iii) $1,262,801.00 of Directions Home capital funds to Presbyterian Night Shelter of Tarrant County or an affiliate in the form of forgivable loans for the development of 72 units of permanent supportive housing; 3. Award $1,000,000.00 of American Rescue Plan Act, Subtitle M(State and Local Fiscal Recovery Funds) funds to OPG Clifton Riverside Partners, LLC or an affiliate in the form of a forgivable loan for the development of 8 units of permanent supportive housing; 4. Authorize execution of related contract and loan documents with New Leaf Community Services, Presbyterian Night Shelter of Tarrant County and OPG Clifton Riverside Partners, LLC, or any affiliates of the same; 5. Waive or defer certain City fees related to the New Leaf Community Services and Presbyterian Night Shelter developments in the approximate amount of $400,000.00; 6. Authorize the City Manager, or his designee, to amend contracts and loan documents as necessary for completion of the projects provided any amendments are within the scope of the projects and comply with City policies and all applicable laws and regulations governing the use of federal grant funds; and 7. Find that the expenditures and waiver or deferral of City fees serves the public purpose of providing decent, safe, and affordable housing to extremely low-income residents in the Ciry and that adequate controls are in place through the loan documents to ensure the public purpose is carried out. DISCUSSION: The purpose of this Mayor and Council Communication (M&C) is to award three projects forgivable loans funded from three funding streams: American Rescue Plan Act ("ARPA") State and Local Fiscal Recovery Funds (SLFRF), HOME Investment Partnerships American Rescue Plan Program (HOME-ARP) and Directions Home capital funds to provide a total of 128 permanent supportive housing (PSH) units. Backpround The City of Fort Worth is part of the local Continuum of Care (CoC), and one of the priorities of the CoC is to address the current level of chronic homelessness. Tarrant Counry Homeless Coalition (TCHC) evaluated the homelessness situation in the CoC area, which encompasses Tarrant and Parker counties, and identified strategies, resources, and the estimated number of new physical units of PSH needed. In addition to other strategies, TCHC determined one of the greatest needs is for physical units designated for the chronically homeless. On December 14, 2021, to help address this need in the City of Fort Worth, Mayor and Council approved a substantial amendment to the City's 2021-2022 Annual Action Plan for the use of $10,537,030.00 in HOME-ARP Federal Grant funds to be awarded by the United States Department of Housing and Urban Development for the purpose of funding the development of PSH (M&C No. 21-0968) through a competitive Notice of Funding Availability process ("NOFA"). The Fort Worth Housing Finance Corporation (FWHFC), which had previously set aside $5,000,000.00 for the development of PSH in the city, allocated $2,550,000.00 of the set-aside funds to be included with the HOME-ARP funds in the NOFA (Resolution No. FWHFC 2019 07). FWHFC PSH funds require a dollar for dollar match from private foundations. These funds were combined with a goal to develop 125 PSH units in the City. On March 8, 2022, the Neighborhood Services Department (NSD) released the NOFA. However, it was noted that the 125 PSH units was not su�cient to meet the City's need for PSH units. On April 12, 2022, the City Council allocated an additional $5,000,000.00 of general ARPA funds for the development of PSH units (M&C 22- 0270). This amount was included in the NOFA to be awarded for PSH development, and the unit goal increased to 165. Scoring - NSD staff and a philanthropic representative scored the six applications that were submitted. Based on scores, responsiveness to Minority/Women Business Enterprise (M/WBE) requirements, and project feasibility, three projects are being recommended by staff for funding. One project was non-responsive due to failure to meet the M/WBE requirement, and two were found to be lacking in one or more key areas of evaluation. Area of Evaluation Project Description Agency Experience Project Delivery/Occupancy Financial Capacity/Leveraging Total Score Available Points 30 15 25 30 100 # of Applicant Agency Name Project Name PSH M/WBE Status Score Units The Phan Foundation Doors of Opportunity 32 RESPONSIVE 60 New Leaf Community 8843 Camp Bowie 48 RESPONSIVE Services West Presbyterian Night Journey Home Shelter Housing OPG Clifton Riverside Clifton Riverside Partners, LLC Atlantic Housing Quail Ridge Foundation Inc. Apartments Tarrant Counry Samaritan Housing Permanent Supportive Housing for Chronically Homeless Individuals 72 RESPONSIVE 8 RESPONSIVE :• :: 83 0 NON-RESPONSIVE 54 60 RESPONSIVE 82 Accordingly, staff is recommending awarding 3 developments, which will create a total of 128 PSH units, forgivable loans as listed below. A second NOFA will be issued to develop at least 37 PSH units with the funds that were not allocated through the first NOFA. The total number of PSH units from both NOFAs will be at least 165. Recommended Awards The following three projects are recommended for funding: New Leaf Community Services New Leaf Community Services will create 48 new units of PSH at 8843 Camp Bowie West (CD 3). Partners in the project include L2L Development Advisors LLC. In addition to the HOME- ARP funding recommended through this M&C, staff will be recommending that an allocation of funds also be made from the FWHFC, as listed below. HOME-ARP (This M&C) $4,028,476.00 Requesting from Fort Worth Housing Finance Corporation Foundation Matching Funds Total NOFA Funding Allocations $1,200,000.00 $1,200,000.00 $6,428,476.00 Staff recommends execution of all necessary documents with New Leaf Community Services or an affiliate for a forgivable loan in the amount of $4,028,476.00 on the following terms and conditions: Loan Terms Loan term to commence on execution of loan documents and terminate at the end of the 20-year Affordability Period defined in the contract. Loan will be forgiven at the end of the Affordability Period provided that borrower has complied with all of the terms of the contract and the loan documents; Performance of the HOME-ARP requirements and payment of the HOME-ARP loan, if required, will be secured by a deed of trust and HOME-ARP Deed Restriction on the real property through the Affordability Period; Interest rate of zero percent so long as borrower complies with all of the terms of the contract and loan documents; HOME-ARP loan to be subordinate to any financing provided by Fort Worth Housing Finance Corporation. HOME-ARP loan may also be subordinated to other financing if such financing meets appropriate underwriting criteria, City policies and applicable HOME-ARP requirements; and Designate HOME-ARP assisted units according to the HOME-ARP regulations with a 20-year Affordability Period. The exoenditure of HOME-ARP funds is conditioned unon the followina: 1. Satisfactory underwriting in accordance with federal guidance for use of funds and City policies for funding of PSH units; 2. All financing including any grants to be acceptable to City to show long term viability of the project; 3. Satisfactory completion of an environmental review pursuant to 24 CFR Part 58; 4. Receipt of authorization to use grant funds from HUD; and 5. Closing on all other financing for the project Presbyterian Night Shelter Presbyterian Night Shelter of Tarrant County will create 72 new units of PSH at 7600 Crowley Road (CD 8). Partners in the project include L2L Development Advisors LLC and Construction Advisory Specialists. In addition to the funding recommended through this M&C, staff will be recommending that an allocation of funds also be made from the FWHFC, as listed below. HOME-ARP (This M&C) ARPA SLFRF (This M&C) Directions Home Capital Funds (This M&C) Requesting from Fort Worth Housing Finance Corporation Foundation Matching Funds Total NOFA Funding Allocations $4,928,000.00 $421,999.00 $1,262,801.00 $1,350,000.00 $1,350,000.00 $9,312,800.00 Staff recommends execution of all necessary documents with Presbyterian Night Shelter of Tarrant County or an affiliate for a forgivable loan in the amount of $6,612,800.00 on the following terms and conditions: Loan Terms: 1. Loan term to commence on execution of loan documents and terminate at the end of the 20-year Affordability Period defined in the contract. Loan will be forgiven at the end of the Affordability Period provided that borrower has complied with all of the terms of the contract and the loan documents; 2. Performance of the HOME-ARP, ARPA SLFRF and Directions Home requirements and payment of the HOME-ARP, general ARPA and Directions Home loans, if required, will be secured by a deed of trust and HOME-ARP, ARPA SLFRF and Directions Home Deed Restrictions on the real property through the Affordability Period; 3. Interest rate of zero percent so long as borrower complies with all of the terms of the contract and loan documents; 4. HOME-ARP, ARPA SLFRF and Directions Home loans to be subordinate to any financing provided by Fort Worth Housing Finance Corporation. HOME-ARP, ARPA SLFRF and Directions Home loans may also be subordinated to other financing if such financing meets appropriate underwriting criteria, City policies and applicable HOME-ARP, ARPA SLFRF and Directions Home requirements; and 5. Designate HOME-ARP assisted units according to the HOME-ARP regulations with a 20-year Affordability Period. The exnenditure of Directions Home. aeneral ARPA and HOME-ARP funds is conditioned unon the foliowina: 1. Satisfactory underwriting in accordance with federal guidance for use of funds and City policies for funding of PSH units; 2. All financing including any grants to be acceptable to City to show long term viability of the project; 3. Satisfactory completion of an environmental review pursuant to 24 CFR Part 58; 4. Receipt of authorization to use grant funds from HUD; and 5. Closing on all other financing for the project There is a business equiry goal of 25% for this project because part of the funding is City general funds. OPG Clifton Riverside Partners OPG Clifton Riverside Partners, LLC will create 8 units new units of PSH within a larger project at 2406 E. Belknap (CD 8). Partners in the project are Overland Property Group and Across, LLC. ARPA SLFRF (This M&C) Staff recommends execution of all necessary documents with OPG Clifton Riverside Partners, LLC or an affiliate for a forgivable loan in the amount of $1,000,000.00 on the following terms and conditions: Loan Terms: 1. Loan term to commence on execution of loan documents and terminate at the end of the 20-year Affordability Period defined in the contract. Loan will be forgiven at the end of the Affordability Period provided that borrower has complied with all of the all the terms of the contract and the loan documents; 2. PerFormance of the ARPA and any City requirements and payment of the ARPA loan, if required, will be secured by a deed of trust and deed restrictions on the real property through the Affordability Period; 3. Interest rate of zero percent so long as borrower complies with all of the terms of the contract and loan documents; and 4. ARPA loan to be subordinate to any financing provided by Fort Worth Housing Finance Corporation and any permanent financing. ARPA loan may also be subordinated to other financing if such financing meets appropriate undernrriting criteria, City policies and applicable ARPA requirements. The exoenditure of ARPA funds is conditioned uoon the followina: 1. Satisfactory underwriting in accordance with federal guidance for use of ARPA funds and City policies for funding of PSH units; 2. All financing including any grants to be acceptable to City to show long term viabiliry of the project; 3. Satisfactory completion of an environmental review pursuant to 24 CFR Part 58; and 4. Closing on all other financing for the project. By approval of this M&C, the City Council finds that the following actions are necessary to achieve the vital public purpose of providing decent, safe, and affordable housing to extremely-low-income residents: (i) providing forgivable loans to the three developments listed above for the development of PSH units in the City, and (ii) the waiver or deferral of certain related City fees for the New Leaf Community Services and Presbyterian Night She�ter developments, including all fees charged by the Development Services Department (waived), park dedication fees (conditionally deferred), and transportation impact fees, for which a variance was granted by Development Services Department, in the collective approximate amount of $400,000.00; however the actual amount could vary. $1,000,000.00 New Leaf Community Presbyterian Night Services PSH Project Shelter PSH Project Park Fees (Deferred) $58,824.00 $71,543.00 Transportation Impact Fees (Waived) Estimate of Other Development Services Department fees (Waived) Total Fees Waived or Deferred $50,832.00 $54,064.00 $163,720.00 $76,248.00 $73,929.00 $221,720.00 Staff has reviewed and verified, and Council by approval of this M&C finds, that the waiver or deferral of the fees is necessary for the financial feasibility of the two identified developments. The City Council further finds that adequate controls are in place through the loan documents to ensure the public purpose is carried out. Park fees will be payabte in the event the property is transferred to a for-profit entity and will no longer be operated solely as a PSH housing development. The conditional imposition of the Park fees will be secured by liens on the properties. Because of the high priority the City Council has placed on the development as PSH and the fact that the New Leaf Community Services and Presbyterian Night Shelter of Tarrant County developments will be operated on a not-for-profit basis, Development Services and Park & Recreation departments support the deferring or waiving of fees so these projects may be developed. NSD thanks and recognizes the Development Services and Park & Recreation departments for their commitment to PSH. FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendations, funds are available in the current operating and capital budgets, as appropriated, of the Grants Operating Federal Fund HOME-ARP and American Rescue Plan Act projects and the General Capital Projects Fund Development of PSH project. Prior to an expenditure being incurred, the Neighborhood Services Department has the responsibility of verifying the availability of funds and to ensure that only expenditures allowed under the ARPA SLFRF, HOME-ARP and Directions Home programs are charged to these funding sources. Submitted for Citv Manaaer's Office bv: Fernando Costa 6122 Oriainatina Business Unit Head: VictorTurner 8187 Additional Information Contact: Tara Perez 2235 Expedited FORTWORTHo City Secretary's Office Contract Routing & Transmittal Slip Contractor's Name: Journey Home Housing LLC SUbjBCt Of tile f�g2'eerilerit: This is an amendment to a permanent supportive housing services contract 60566 for Crowley Road permanent supportive housing. M&C Approved by the Council? * Yes � No ❑ Ifso, the M&C »ai�st be altnched to the contr•nc1. Is this an Amendment to an Existing contract? Yes 8 No ❑ 60566 If so, provide the original conlracl nionber and the amendment m�»�ber. Is the Contract "Permanent"? *Yes ❑ No � If uf�szn•e, see back page fo�• perma�ent conl�•act listing. Is this entire contract Confidential? xYes ❑ No � Ifonly specific info��mation is Con�de»tial, please list ��hat infor•n�atio» rs Confdential and the page it is located. Effective Date: If di ffer•e�t fi�o�n the approval date. Expiration Date: If applicab/e. Is a 1295 Form required? * Yes ❑ No � *If so, plense ensin-e it is attached to !he appro��ing McgcC or attached to tl�e co»t�•act. Project Number: Ifnpplicnble. *Did you include a Text field on the contract to add the City Secretary Contract (CSC) number? Yes 8 No ❑ Contracts need to be routed for CSO processin� in the followin� order: l. Katherine Cenicola (Approver) 2. Jannette S. Goodall (Signer) 3. Allison Tidwell (Form Filler) *Indicates the information is reqarired and if the infor•naalio» is no! provided, tl�e conlracr �,�ill be relurned to the depn�•tmei�t.