HomeMy WebLinkAboutContract 41395 CITY CI� T O . .
January 26, 2011
Neighborhood Land Corporation
3345 South Jones Street
Fort Worth, Texas 76110 -4312
Attention: Gage Yager, President
Reference: Neighborhood Land Corporation Single-Family Infill Homes
Dear Mr. Yager:
We are pleased to present for your review the following terms, conditions, and requirements based on
the application of Neighborhood Land Corporation (NLC) for a grant of HOME Investment
Partnerships Program Grant funds for operating expenses in an amount not to exceed $50,000.00
from the City of Fort Worth (City), subject to the following terms and conditions:
GRANTEE Neighborhood Land Corporation
GRANTOR City of Fort Worth ("City")
AMOUNT $50,000 for CHDO operating expenses, as defined under 24 CFR
92.208.
USE City will provide a list of eligible expenses for CHDO operating funds.
TERM Term of the contract and grant is twelve (12) months, with a one-year
extension upon request.
PAYMENT/ CHDO operating expenses will be provided to NLC on a reimbursement
REPAYMENT basis only. City will disburse funds upon receipt of satisfactory
documentation of eligible expenses. In the event any expense is
determined to have been an ineligible expense, the amount of the
ineligible expenses must be reimbursed to City.
CONDITIONS TO i. This letter constitutes a conditional commitment of funds.
GRANT FUNDING ii. Condition of loan based on City Council approval to award
HOME funds to NLC and receipt of HOME funds from
HUD for the Project.
iii. NLC must enter into a contract with City go erning the
Housing and Economic Development Department OFFICIAL RECORD
The City of Fort Worth * 1000 Throckmorton Street* Fort Worth. Texa gITT2Y SECRETARY
817-392-7520* Fax 817-392-2013 FT. WORTH, TX
of the HOME funds for operating expenses.
iv. The required contract and documentation for
reimbursement must be acceptable in all respects to the
City and its counsel.
COMPLIANCE WITH i. NLC agrees that as a certified Community Housing Development
FEDERAL, STATE Organization, they will comply with 24 CFR 92.300 and 92.301.
AND LOCAL LAWS ii. NLC must remain in compliance with the requirements of any City
agreements for use of HOME Funds for specific projects for
operating expense funding to continue.
iii. NLC certifies that it is not currently listed on the General Services
Administration's List of Parties Excluded from Federal
Procurement or Non-procurement Programs in accordance with
Executive Orders 12549 and 12689 and will not enter into
agreements to expend Federal Funds with contractors that are
currently listed.
iv. NLC must comply with all prescribed procedures regarding
nondiscrimination and equal opportunity, affirmative marketing,
displacement and relocation, labor relations, lead-based paint
and conflict of interest provisions described in 24 CFR 92
subpart H and 24 CFR 92.504.
V. Organizations that are directly funded under the HOME program
may not engage in inherently religious activities as defined
under 24 CFR 92.257.
vi. NLC must comply with all applicable Federal laws, laws of the
State of Texas and ordinances of the City of Fort Worth.
vii. NLC must agree to any terms and conditions as necessary in
order to ensure compliance with all federal regulations, state
laws, and local ordinances.
INSURANCE NLC must maintain and present to the City on a semi-annual basis, a
REQUIREMENTS General Liability Insurance in the amount of $500,000 each
occurrence, $1,000,000 aggregate limit.
NLC is to maintain and present to the City on a semi-annual basis, a
Business Automobile Liability Insurance as follows:
$1,000,000 each accident on combined single-limit basis, or
$250,000 Property Damage
$500,000 Bodily Injury per person per occurrence
$2,000,000 Aggregate
NLC to maintain, and present to the City on a semi-annual basis,
Workers' Compensation insurance as follows:
Statutory Limits
Employers Liability
$100,000 each accident/occurrence
$100,000 disease/per employee
$500,000 disease policy limit
AUDITS City will conduct annual audits to ensure compliance with contracts and
federal, state, and local laws. NLC will maintain records according to
the recordkeeping requirements outlined below.
i. NLC must maintain records that will provide accurate, current,
RECORDKEEPING separate, and complete disclosure of the status of the funds
received pursuant to this Agreement and pursuant to any other
applicable Federal and/or State regulations establishing
standards for financial management.
ii. Upon receipt of reasonable written notice by the City and as often
as City may deem necessary, NLC will make available to the
City all of its records and will permit City to conduct audits of all
contracts, invoices, materials, payrolls, records of personnel,
conditions or employment and all other data relating to the
stated Use.
iii. NLC will provide quarterly financial and beneficiary reports that
will contain such records, data and information as City may
request pertinent to matters covered by this Agreement. Reports
will be due to the Housing and Economic Development
department within 45 days of the end of the quarter. Required
report format/template and /or instructions to be provided by the
City. NLC will provide any additional information as requested
by the City within 10 days of date of receipt of written request.
CLOSING COSTS The Grant is to be closed at no cost to the City. Borrower shall be
responsible for all costs associated with this transaction, including title
insurance, attorney fees, filing fees, closing costs, etc.
In order for this Conditional Commitment to remain effective, an original
ACCEPTANCE must be executed by Grantee and returned to the City on or
before July 23, 2011. Any extension of such time for
acceptance must be in writing and signed by a City
representative. These terms can be modified or other terms
negotiated between the parties upon mutual written agreement.
EXPIRATION To cause this Conditional Commitment to remain in effect, the Contract
between NLC and the City must be executed on or before August 31,
2011. Any extension of such date must be in writing and signed by the
City.
Any funds disbursed against this Conditional Commitment will be subject to the City's receipt of
satisfactory documentation of the Grant and due diligence satisfaction. Should additional facts
become known to either party, this Conditional Commitment may be terminated by either party upon
written notice to the other party. This Commitment is confidential and is intended solely for the use of
NLC. No other person or parties has any rights whatsoever with respect to the above terms and
conditions. In the event of a conflict between any of the terms or conditions presented in this
commitment and the subsequent contract, the terms and conditions presented in the contract would
supersede those presented in this commitment.
.'CV0c°F00 r
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We hope the foregoing is responsive to your needs and that you will accept this offllf n ' �
your acceptance with your signature below and by returning a signed copy to: O o P.
° °0 ��
City of Fort Worth 0' 0° °° K�
Housing and Economic Development Department Attes yo as 0000000 '0
1000 Throckmorton
Fort Worth, TX 76102riC C
Attn: Fabiola Suarez, Economic Development Specialist Hendrix, City Se tart'
Sincerely,
cx) , Date: i 1
Susa Al is
Assista City Manager
App , ved as t or, and legality:
I �
Date:
L Guzman
Assistant City Attorney
The undersigned hereby accepts the foregoing Commitment and the terms and requirements herein set for
and agrees to be bound thereby.
GRANTEE
Neighborhood Land Corporation
Signed:
A""�V��. "11111� Date: //Iq A
Ga a Ya r
Pr siden , Nei borh od Land Corporation
.ont.ract Author i zatios,.
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 1/25/2011
DATE: Tuesday,January 25,2011 REFERENCE NO.: C-24712
LOG NAME: 17NLCCHDO7
SUBJECT:
Authorize a Change in Use and Expenditure of Up to$470,000.00 of HOME Investment Partnerships
Program Grant Funds to the Neighborhood Land Corporation for the Development of Up to Seven Single
Family Houses,Authorize the Execution of a Conditional Commitment and Contract and Authorize a
Substantial Amendment to the City's 2007-2008,2008-2009,2009-2010 and 2010-2011 Action Plans
(COUNCIL DISTRICTS 5 &7)
RECOMMENDATION:
It is recommended that the City Council:
1.Authorize a Substantial Amendment to the City's 2007-2008,2008-2009,2009-2010 and 2010-2011
Action Plans;
2.Authorize the City Manager,or his designee, 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;
3.Authorize a change in use and expenditure of up to$470,000.00 in prior year's HOME Investment
Partnerships Program Grant funds to the Neighborhood Land Corporation, a certified Community Housing
Development Organization,for the development of up to seven single family houses located at scattered sites
throughout the City of Fort Worth;
4.Authorize the City Manager,or his designee,to execute a conditional commitment with the Neighborhood
Land Corporation that conditions funding,among other things,on satisfactory completion of HOME
requirements;
5.Authorize the City Manager,or his designee, to execute a Contract with the Neighborhood Land
Corporation for the project for a two year term beginning on the date of execution of the Contract;
6.Authorize the City Manager,or his designee,to extend or renew the conditional commitment or the
Contract if the Neighborhood Land Corporation requests a written extension and such extension is necessary
for completion of the project;and
7. Authorize the City Manager,or his designee,to amend the conditional commitment or 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.
DISCUSSION:
On October 14, 2010, the City issued a Request for Proposals (RFP)for certified Community Housing
Development Organizations (CHDO) to award and expend up to$1,261,931.00 of HOME Investment
Partnerships Program Grant funds. The HOME funds available under the RFP were originally allocated to
other projects that were not completed either because of lack of private funding,environmental issues or
market condition. On November 18,2010,the Neighborhood Land Corporation(NLC) submitted responses
requesting$470,000.00 of the available HOME funds for the development of up to seven single family
houses on scattered sites throughout the City of Fort Worth. The request also included funds for related
CHDO operating expenses.
City staff reviewed all RFP submissions and recommended the award to NLC of$470,000.00 in HOME
funds to the Community Development Council(CDC)at its meeting held on December 1, 2010.The CDC
agreed with staffs funding recommendation for the project. Up to$50,000.00 of the awarded funds will be
used for operating expenses and$420,000.00 for construction and other development expenses. NLC,an
affiliate of Trinity Habitat for Humanity,has secured corporate and individual donations to cover the
remainder of the project costs.
NLC plans to develop seven single family houses to be located at scattered sites throughout the City that will
be,at a minimum, 1,153 square feet with three bedrooms,two baths and a one car garage. The houses will be
sold to an individual or a family that earns at or below 80 percent of the Area Median Income as determined
by the United States Department of Housing and Urban Development(HUD). Buyers must meet all HOME
program requirements including applying for and receiving at least$1,000.00 in down payment and/or
closing cost assistance from the City's Homebuyer Assistance Program and occupying the house as their
primary residence for five years.
Staff recommend the following Contract terms.-
i. Construction must begin within six months of date of contract execution;
ii.NLC's performance under the Contract and use of the HOME funds will be secured by a recorded
Deed of Trust;
iii. House must be sold to a HOME eligible buyer;and
iv.Proceeds from the sale of the house to be used to construct additional houses for a HOME
eligible buyer and construction of Proceed houses must occur within the two year contract term.
The expenditure of HOME funds is conditioned Ugon the following:
i. Satisfactory completion of the environmental review per 24 CFR Part 58;and
ii.Authorization to use grant funds from HUD.
City staff recommends the change in use and expenditure of up to$470,000.00 in HOME funds for the
project to benefit low and very low income citizens by providing affordable housing.A public comment
period on the change in use of these HOME funds was held from December 16, 2010 to January 20, 2011.
Any comments are maintained by the Housing and Economic Development Department in accordance with
federal regulations.
This project is located in COUNCIL DISTRICTS 5 &7.
FISCAL INFORMATION:
The Financial Management Services Director certifies that funds are available in the current operating
budget,as appropriated, of the Grants Fund.
FUND CENT .RS:
TO Fund/Account/Centers FROM Fund/Account/Centers
GR76 539120 017206351XXX $50.000.00 GR76 539120 00 06181 lu $131.112.32
GR76 539120 00 206181 XXX $131.112.32 GR76 539120 017206351 030 $50.000.00
GR76 539120 005206271 XXX $124.360.00 GR76 539120 00 06271030 $124.360.00
R76 539120 n 17206461 XXX $164.527.68 GR76 539120 01720646I.Q4Q $164.527.68
CERTIFI ATION
Submitted for City Manager's Office by: Susan Alanis (8180)
Originating Department Head: Jay Chapa (5804)
Additional Information .onta t• Cynthia Garcia (8187)
Fabiola Suarez (6811)
ATTACHMENTS
1.Available Funds 17N HD07 ndf