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HomeMy WebLinkAbout062717-R1A1 - General - Contract - Henderson Apartments Tenant, L.P.CSC No. 62717-RlAl RENEWAL ONE AND AMENDMENT ONE TO CITY OF FORT WORTH CONTRACT NO. 62717 This Contract Renewal and Amendment is made and entered into by and between the City of Fort Worth ("City"), and HENDERSON APARTMENTS TENANT, L.P. ("Landlord"), each individually referred to as a "Party" and collectively referred to as the "Parties." RECITALS WHEREAS, on NOVEMBER 23, 2024, the City entered into an agreement with the Landlord for rental assistance for a named tenant, City Secretary Office (CSO) Contract No. 62717 (the "Agreement"); WHEREAS, ("Tenant") is a participant in the City's rental assistance program; WHEREAS, the Parties wish to renew the Agreement for its First Renewal Term and amend the Agreement to: restructure Section 3.2.1 of the Agreement (Rent) and incorporate rental obligations for the First Renewal Term. NOW THEREFORE, City and Landlord do hereby agree as follows: RENEWAL OF AGREEMENT The Parties agree to renew this Agreement beginning on MARCH 1, 2026 and shall expire on May 31, 2027("First Renewal Term") unless earlier terminated in accordance with the terms of the Agreement. II AMENDMENTS TO AGREEMENT 1. Section 3.2.1 of the Agreement is hereby deleted in its entirety and replaced with the following: 3.2.1 Rent. Initial Term: • The City has been notified that the Tenant's Total Rent during the Initial Term is $1,424.00 per month for the Unit. • The Tenant, during the Initial Term, from NOVEMBER 23, 2024 to NOVEMBER 30, 2024 shall be responsible for $380.00 of rent per month for the Unit for early move -in. Beginning DECEMBER 1, 2024 to DECEMBER 31, 2024 the tenant shall be responsible for $0.00. Beginning JANUARY 12025 to FEBRUARY 28, 2026, the Tenant shall be responsible for $466.00 of rent per month for the Unit. • During the Initial Term, from, and until either this Agreement expires or Landlord is notified by City otherwise, beginning DECEMBER 1, 2024 to DECEMBER 31, 2024 the City shall OFFICIAL RECORD CSC No. 62717- Renewal One and Amendment One CITY SECRETARY Page 1 of 4 COFw and HENDERSON APARTMENTS TENANT, L.P.. FT. WORTH. TX be responsible for $1,424.00 for Unit. Beginning January 1, 2025 to FEBRUARY 28, 2026, the City shall pay $958.00 toward the Tenant's Total Rent for the Unit ("City Portion"), First Renewal Term: • The City has been notified that the Tenant's Total Rent during the First Renewal Term is $1,524.00 per month for the Unit. • Tenant shall be responsible for $458.00 of rent per month. • City shall be responsible for $1,066.00 of rent per month. A complete history of rental obligations due under this Agreement, per lease term, is included in Attachment A. Neither City nor HUD assumes any obligation for the Tenant's Portion of the rent, or for payment of any claim by Landlord against Tenant. The City's sole obligation is limited to paying the City Portion of the Rent in accordance with this Agreement. Tenant shall be liable for rent, payments, and other fees associated with the Unit and City shall not be obligated by law or in equity for any amount other than the City Portion. III. 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 Patties. [SIGNATURE PAGE FOLLOWS] CSC No. 62717- Renewal One and Amendment One Page 2 of 4 CoFw and HENDERSON APARTMENTS TENANT, L.P.. IN WITNESS WHEREOF, the parties hereto have executed this agreement, to be effective March 1, 2026. FOR CITY OF FORT WORTH: lrl��lll�l 58 CDT) Title: Assistant City Manager Date: APPROVAL RECOMMENDED 4al, "YAq, Kacev Thomas (Apr 6. 2026 11:53:21 CDT) Name: Kacey Thomas Title: Neighborhood Services Director APPROVED AS TO FORM AND LEGALITY Sophie mathewi Name: Sophie Mathews Title: Assistant City Attorney Contract Compliance Manager: By signing I acknowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all performance and reporting requirements. �&&' "Z I Name: Cyndee Garza Title: Sr. Human Services Specialist FOR LANDLORD: L�nu PGA Name: Linda Flotte Title: Property Manager Date: 04/02/2026 ATTEST: bo���onn� Qd- p RT as v o ........00 °�Y0� p d nnnnouoo Name: Jannette Goodall Title: City Secretary Date: 04/09/2026 M&C No.: 25-0676 OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX CSC No. 62717- Renewal One and Amendment One Page 3 of 4 CoFw and HENDERSON APARTMENTS TENANT, L.P.. Attachment A History of Rental Obligations by Lease Term Lease Term Total Rent Tenant's Portion Cit 's Portion Initial Term $1,424 NOVEMBER 23, 2024 to NOVEMBER 23, 2024 to NOVEMBER 30, 2024 NOVEMBER 30, 2024 $380.00 $0.00 DECEMBER 1, 2024 to DECEMBER 1, 2024 to DECEMBER 31, 2024 DECEMBER 31, 2024 $0.00 $1424 JANUARY 1, 2025 to JANUARY 1, 2025 to FEBRUARY 28, 2026 FEBRUARY 28, 2026 $466.00 $958.00 First Renewal $1,524.00 $458.00 $1,066.00 EXHIBIT A Copy of Lease Agreement CSC No. 62717- Renewal One and Amendment One Page 4 of 4 CoFW and HENDERSON APARTMENTS TENANT, L.P.. M&C Review Page 1 of 5 A Official site of the City of Fort Worth, Texas CITY COUNCIL AGEND FORTYRT111 Create New From This M&C 192025-2026 H U D DATE: 8/12/2025 REFERENCE NO.: M&C 25-0676 LOG NAME: ANNUAL ACTION PLAN CODE: C TYPE: NON- PUBLIC CONSENT HEARING: YES SUBJECT: (ALL) Conduct Public Hearing and Approve the City of Fort Worth's 2025-2026 Annual Action Plan for the Use of Federal Grant Funds in the Amount of $13,273,355.77 to be Awarded by the United States Department of Housing and Urban Development from the Community Development Block Grant, HOME Investment Partnerships Program, Emergency Solutions Grant, and Housing Opportunities for Persons with AIDS Program, Authorize Collection and Use of Program Income, Authorize Execution of Related Contracts, Adopt Appropriation Ordinance, and Authorize Waiver of Indirect Costs (PUBLIC HEARING - a. Staff Available for Questions: Juliet Moses; b. Public Comment c. Council Action: Close Public Hearing and Act on M&C) RECOMMENDATION: It is recommended that City Council: 1. Conduct a public hearing to allow citizen input and consideration of the City's 2025-2026 Annual Action Plan for use of federal grant funds to be awarded by the United States Department of Housing and Urban Development in the amount of $13,273,355.77 for the Community Development Block Grant, HOME Investment Partnerships Program, Emergency Solutions Grant, and Housing Opportunities for Persons with AIDS grant programs; 2. Approve the City's 2025-2026 Annual Action Plan for submission to the United States Department of Housing and Urban Development, including allocations of grant funds to particular programs and activities as detailed below; 3. Authorize the collection and use of an estimated $30,000.00 of program income which is expected to result from activities using prior years' Community Development Block Grant funds for the City's Priority Repair Program; 4. Authorize the collection and use of an estimated $30,000.00 of program income which is expected to result from activities using prior years' HOME Investment Partnerships Program grant funds for the City's Homebuyer Assistance Program, and authorize the use of 10 percent of the program income for administrative costs; 5. Authorize the City Manager or his designee to execute contracts for one-year terms with the agencies listed in Tables 1, 2, and 3 below for Program Year 2025-2026 for Community Development Block Grant, Emergency Solutions Grant, and Housing Opportunities for Persons with AIDS grant funds, contingent upon receipt of funding, and satisfactory completion of all federal regulatory requirements; 6. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Grants Operating Federal Fund in the total amount of $13,273,355.77 consisting of $7,116,438.00 in Community Development Block Grant funds, $2,814,431.77 in HOME Investment Partnerships Program funds, $615,818.00 in Emergency Solutions Grant funds, and $2,726,668.00 in Housing Opportunities for Persons with AIDS grant funds, all subject to receipt of such funds; and 7. Authorize a waiver of the Neighborhood Services Department indirect cost of 21.05\%, estimated total of $264,698.00. DISCUSSION: The City's 2025-2026 Annual Action Plan summarizes the major housing and community development activities and proposed expenditures for the program year beginning October 1, 2025 and ending http://apps.cfwnet.org/council_packet/mc_review.asp?ID=33536&councildate=8/12/2025 9/9/2025 M&C Review Page 2 of 5 September 30, 2026 for use of federal grant funds totaling $13,273,355.77 from the United States Department of Housing and Urban Development (HUD) from the Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), Emergency Solutions Grant (ESG), and Housing Opportunities for Persons with AIDS (HOPWA) grant programs, plus program income from the CDBG and HOME grant programs totaling $60,000.00. It also summarizes the use of program income resulting from activities using prior years' CDBG and HOME funds, the primary purpose of which is to benefit low -and moderate -income persons in Fort Worth. ESG funds primarily benefit persons experiencing homelessness, and HOPWA funds primarily benefit low -and moderate -income persons with HIV/AIDS. A Request for Proposals from social service agencies and nonprofit organizations seeking grant funding was published on January 15, 2025. All proposals were received on March 3, 2025. Staff reviewed all proposals and developed recommendations for the allocation of estimated funding from HUD based on the capacity of applicant organizations, grant experience, fiscal stability, and compliance with applicable federal regulations. One public hearing was held on July 14, 2025, to provide citizens with the opportunity to participate in the development of the Annual Action Plan. Recommendations for award amounts were considered and adopted by the Community Development Council on June 11, 2025. A 30-day public comment period was held from June 16, 2025, through July 16, 2025. Notice of this public comment period was published in the Cleburne Times Review on June 10, 2025; in the Fort Worth Star Telegram and Weatherford Democrat on June 11, 2025; and in La Vida News and the Wise County Messenger on June 12, 2025. Any comments received are maintained by the Neighborhood Services Department in accordance with federal regulations. The City held two public hearings as a part of the HUD required citizen participation process. The first public hearing was held by staff on July 14, 2025, and the second public hearing is scheduled for the City Council Meeeting on August 12, 2025. A summary of staffs final funding recommendations is provided below in Tables 1, 2, and 3. The 2025- 2026 Annual Action Plan will be submitted to HUD by August 15, 2025. Indirect costs totaling approximately $264,698.00 could be charged to these grants, as the Neighborhood Services Department indirect cost rate is 21.05\% in the City's most recent Cost Allocation Plan. A waiver of these costs is requested to allow allocation of these funds to further support the programs and services to assist low -to -moderate income citizens. COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) For Program Year 2025-2026, it is recommended that the amount of $7,116,438.00 in CDBG funds and an estimated amount of $30,000.00 in CDBG program income totaling $7,146,438.00 be allocated as follows: Public Service Agencies - $1,067,465.00 (Limited to 15\% of the grant allocation): Includes social services for low- and moderate income persons, persons with disabilities, and disadvantaged persons; Housing Programs - $2,665,000.00: Includes funding for the City's Priority Repair Program, Cowtown Brush -Up, and accessibility modifications for seniors and persons with disabilities; Major Projects - $1,000,685.00: Includes funding for street improvements; Program Delivery - $960,000.00: Includes program delivery costs for housing programs; Administration - $1,423,288.00 (Limited to 20\% of the grant allocation): Includes costs for administering the CDBG grant; Estimated Program Income - $30,000.00: Includes up to $30,000.00 in funding for the City's Priority Repair Program. Any CDBG program income over the estimated amount not used for the Priority Repair Program will be allocated to priority activities in the City's Consolidated Plan, subject to the City Council approval. HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME) For Program Year 2025-2026, it is recommended that the amount of $2,814,431.77 in HOME funds and an estimated amount of $30,000.00 in HOME program income totaling $2,844,431.77 be allocated as follows: Homebuyer Assistance Program - $1,110,824.77: Includes funding for down payment and closing cost assistance for low- and moderate -income homebuyers through the Fort Worth Community Land Trust, the City of Fort Worth and Trinity Habitat for Humanity; Community Housing Development Organizations (CHDOs) for affordable housing projects - $422,164.00: These funds will be used by Housing Channel for the Mason Heights affordable housing development in southeast Fort Worth. Funds will be used for the acquisition of land and the new construction of 236 units. An estimated 183 units (approximately 77\%) will be sold to low to moderate income households at or below 80\% Area Median Income (AMI); Major Projects - $1,000,000.00 allocated to Fort Worth Housing Solutions (FWHS) as a part of Phase Six of the http://apps.cfwnet.org/council_packet/mc_review.asp?ID=33536&councildate=8/12/2025 9/9/2025 M&C Review Page 3 of 5 Choice Neighborhood Initiative (CNI) grant benefiting low -moderate come residents in the Stop Six Neighborhood of Fort Worth; Administration - $281,443.00 (Limited to 10\% of the grant allocation): Includes costs for administering the HOME grant; Estimated Program Income - $30,000.00: Includes funding for the Homebuyer Assistance Program and HOME grant administrative costs. HUD allows the City to use 10 percent of any HOME program income towards the cost of administering the HOME grant. HOME program income over the estimated amount not used for the Homebuyer Assistance Program will be allocated to priority activities in the City's Consolidated Plan, subject to City Council approval. HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS (HOPWA) For Program Year 2025-2026, it is recommended that the amount of $2,726,668.00 in HOPWA funds be allocated as follows: Public Service Agencies - $1,670,868.00; Neighborhood Services Department - $974,000.00; Administration - $81,800.00 (Limited to 3\% of the grant allocation) EMERGENCY SOLUTIONS GRANT (ESG) For Program Year 2025-2026, it is recommended that the amount of $615,818.00 in ESG funds to be allocated as follows: Public Service Agencies - $569,632.00; Administration - $46,186.00 (Limited to 7.5\% of the grant allocation) CONTRACT RECOMMENDATIONS The Community Development Council and Neighborhood Services Department staff recommend that contracts be executed with the public service and subrecipient agencies listed below for the amounts shown in the following tables: Community Development Block Grant Contracts TABLE 1: CDBG AGENCIES AGENCY CONSOLIDATED PLAN PROGRAM AMOUNT GOAL Housing Channel Affordable Housing Housing Counseling & $111,000.00 Education Meals -On -Wheels, Inc. of Healthy Living and Nutrition Program $120,000.00 Tarrant County Wellness Money Smart+ Elder Guardianship Services Inc. Aging In Place Financial Fraud $80,000.00 Prevention Workshops United Community Centers, Inc Children and Youth Education Literacy $125, 000.00 Services Program Boys & Girls Club of Greater Children and Youth Youth Development at lEastside $72,000.00 Tarrant County Services Branch Girls Inc of Tarrant County Children and Youth Whole Girl Program $90,281.00 Services Camp Fire First Texas Children and Youth Teens In Action $62, 184.00 Services Junior Achievement of the Children and Youth Cradle to Career Chisholm Trail, Inc. Services Initiative $50,000.00 The Women's Center of Tarrant Economic Empowerment Employment Solutions $90,000.00 County and Financial Resilience Easter Seals North Texas, Inc. Economic Empowerment Employment Services $92,000.00 and Financial Resilience Homelessness Presbyterian Night Shelter Prevention and Special Moving Home Program $175,000.00 Needs Support CDBG Public Services Agencies Total $1,067,465.00 http://apps.cfwnet.org/council_packet/mc_review.asp?ID=33536&councildate=8/12/2025 9/9/2025 M&C Review Page 4 of 5 'Rehabilitation, Education and Accessibility Advocacy for Citizens with Improvements Project Ramp $165,000.00 Handicaps dba REACH, Inc. "Fort Worth Area Habitat for Humanity, Inc. DBA Trinity Housing Preservation and Rehabilitation Cowtown Brush Up $500,000.00 Habitat for Humanity CDBG Subrecipient Agencies Total $665,000.00 TOTAL CDBG CONTRACTS $1,732,465.00 "REACH and Trinity Habitat will be funded from the CDBG Housing Programs and Services budget. Housing Opportunities for Persons with AIDS Contracts TABLE 2: HOPWA AGENCIES AGENCY CONSOLIDATED PLAN PROGRAM AMOUNT GOAL HOPWA Program - Administration, Tenant - Based Rental Assistance Tarrant County Homelessness Prevention (TBRA), Short -Term Samaritan Housing, and Special Needs Rent, Mortgage, and $1,406,188.00 Inc. Support Utility Assistance (STRMU), Supportive Services, Facility -Based Operations (FBO) The Housing Assistance Program - Administration, Tenant - AIDS Outreach Homelessness Prevention Based Rental Assistance Center, Inc. and Special Needs (TBRA), Short -Term $264,680.00 Support Rent, Mortgage, and Utility Assistance (STRMU), Supportive Services TOTAL HOPWA CONTRACTS $1,670,868.00 Emergency Solutions Grants Contracts TABLE 3: ESG AGENCIES AGENCY CONSOLIDATED PLAN GOAL PROGAM AMOUNT The Presbyterian Night Shelter of Tarrant County, Homelessness Prevention and Shelter $139,491.00 Inc. Special Needs Support Operations/Services Lighthouse for the Homeless dba True Worth Homelessness Prevention and Day Shelter $150,000.00 Place Special Needs Support Operations/Services Homelessness Prevention and Homelessness The Salvation Army Special Needs Support Prevention $127,141.00 Center for Transforming Homelessness Prevention and [Rapid Re -Housing $73,000.00 Lives Special Needs Support IF— 11 $80,000.00 http://apps.cfwnet.org/council_packet/mc_review.asp?ID=33536&councildate=8/12/2025 9/9/2025 M&C Review Page 5 of 5 afeHaven of Tarrant Homelessness Prevention and 11ODerati Shelter ountv Special Needs Support ITOTAL ESG CONTRACTS 11$569.632.001 All figures have been rounded to the nearest dollar for presentation purposes. Each of these grants are an entitlement grant rather than a competitive grant received from the United States Department of Housing and Urban Development (HUD). Entitlement grants provide funds to agencies based on a formula prescribed in legislation or regulation, rather than based on review. These specific grants are allocated to the City of Fort Worth based on population size and per capita income each year. The grants have been consistently awarded to the City since 1974 with the inception of the Community Development Block Grant (CDBG) through the Housing and Community Development Act of 1974. The Emergency Shelter (renamed Solutions) Grant (ESG) was authorized in 1987 through the McKinney-Vento Homelessness Assistance Act. The HOME Investment Partnerships Program (HOME) and the Housing Opportunities for Persons with AIDS (HOPWA) Program were authorized through the Cranston -Gonzales National Affordable Housing Act of 1990. With these grants, administrative and program delivery allocations support approximately 90 FTE positions in the Neighborhood Services Department, which is funded nearly 60\% with various grants including these entitlement grants. Positions funded with HUD Entitlement grants are subject to grant availability. In the event of a grant award being decreased or eliminated, the Neighborhood Services Department would review programs and services funded by the grants and determine a level of service and staffing that aligns with the available funding. Alternatives to consider may include staff and program reductions or eliminations. The City of Fort Worth has certified that all programs receiving funding through the HOPWA, HOME, ESG, and CDBG grants comply with applicable Executive Orders. These programs are available in ALL COUNCIL DISTRICTS. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendations and adoption of the attached appropriation ordinance, funds will be available in the current operating budget, as appropriated, of the Grants Operating Federal Fund. The Neighborhood Services Department (and Financial Management Services) will be responsible for the collection and deposit of funds due to the City. Prior to an expenditure being incurred, the Neighborhood Services Department has the responsibility to validate the availability of funds. These are reimbursement grants. TO Fund Department Account Project Program Activity Budget Reference # Amount ID ID Year (Chartfield 2 FROM Fund Department Account Project Program Activity Budget Reference # Amount ID ID Year (Chartfield 2) Submitted for City Manager's Office by: Dana Burghdoff (8018) Originating Department Head: Kacey Bess (8187) Additional Information Contact: Juliet Moses (6203) ATTACHMENTS http://apps.cfwnet.org/council_packet/mc_review.asp?ID=33536&councildate=8/12/2025 9/9/2025 FORTWORTH. City Secretary's Office Contract Routing & Transmittal Slip Contractor's Name: HENDERSON APARTMENTS TENANT, L.P. Subject of the Agreement: INITIAL Aggrement for additional 18 month term TBRA rental assistance for HOPWA client. M&C Approved by the Council? * Yes ❑✓ No ❑ If so, the M&C must be attached to the contract. Is this an Amendment to an Existing contract? Yes ❑✓ No ❑ CSC 62717 R1 Al If so, provide the original contract number and the amendment number. Is the Contract "Permanent"? *Yes ❑ No ❑✓ If unsure, see back page for permanent contract listing. Is this entire contract Confidential? *Yes ❑ No ❑✓ If only specific information is Confidential, please list what information is Confidential and the page it is located. Client's name on the following pages of contract, PG 3, 5, 10 - 20, 22 - 27, 29, 31 - 36 Effective Date: 3/1 /2026 Expiration Date: 5/31 /2027 If different f •orn the approval date. If applicable. Is a 1295 Form required? * Yes ❑ No ❑✓ *If so, please ensure it is attached to the approving M&C or attached to the contract. Project Number: If applicable. *Did you include a Text field on the contract to add the City Secretary Contract (CSC) number? Yes ❑✓ No ❑ Contracts need to be routed for CSO processing in the followingorder: rder: 1. Katherine Cenicola (Approver) 2. Jannette S. Goodall (Signer) 3. Allison Tidwell (Form Filler) *Indicates the information is required and if the information is not provided, the contract will be returned to the department.