HomeMy WebLinkAboutContract 29725 CITY SECRETARY
CONTRACT NO.
STATE OF TEXAS §
COUNTY OF TARRANT §
THIS contract ("Contract") is made and entered into by and between the City of Fort Worth
("City"), acting by and through Reid Rector, its duly authorized Assistant City Manager, and the Fort
Worth Housing Finance Corporation ("HFC"), a Texas nonprofit corporation organized under the
Texas Housing Finance Corporations Act, acting by and through Ralph McCloud, its duly authorized
President. RFC's business address is 1000 Throckmorton St., Fort Worth TX 76102.
WHEREAS, the City of Fort Worth has received grant funds from the United States Department of
Housing and Urban Development ("HUD") through the HOME Investment Partnership Program
(HOME), and
WHEREAS, the Fort Worth Housing Finance Corporation is an eligible housing development
entity which assists persons of low and moderate income in acquiring, owning and leasing decent, safe
and sanitary housing they can afford; and,
WHEREAS, the HFC has requested that the City allocate $1,402,218.00 of HOME funds to the
HFC in order for the HFC to administer the funds under its Housing Development Fund Program
("FWHDF Program"); and
WHEREAS, the citizens of Fort Worth and the Fort Worth City Council have determined that the
FWHDF Program is needed to provide loans, loan guarantees, and grants to qualified non-profit and
for-profit and developers for housing developments and housing developers for the preservation and
development of housing, particularly in the Central City, as defined in Mayor and Council
Communication G-12976 ("Attachment A) and other targeted areas;
NOW, THEREFORE, THIS AGREEMENT FURTHER WITNESSETH:
THAT, in consideration of the benefits received and the mutual representations and obligations set
forth herein, the parties agree as follows:
1. Scope of Services
a. City will transfer $1,402,218.00 of HOME funds ("Home Funds") allocated to the City by HUD
to the HFC so that HFC can make loans, loan guarantees or grants to qualified development
projects undertaken by qualified non-profit and for-profit land developers for housing
developments and housing developers in compliance with this contract.
b. HFC will administer and disburse the HOME Funds according to HOME Regulations contained
in 24 CFR Part 92 ("HOME Regulations"), FWHDF Policy Statement (Attachment B) and
Program Guidelines and Procedures (Attachment C) and this agreement and all federal, state
and local laws and regulations. _
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c. City will monitor the performance of the HFC against the goals and performance standards with
this Contract and the HOME Regulations. Substandard performance will require corrective
action. If action to correct such substandard performance is not taken by HFC within a
reasonable period of time after being notified in writing by City, contract suspension or
termination procedures will be initiated in accordance with the provisions set forth in this
Contract.
d. HFC will not commingle HOME Funds with any other funds in any manner.
2: General Provisions
a. HFC agrees to require all recipients of HOME Funds to submit monthly financial documents
including, but not limited to, Detail Statement of Costs, ("Attachment D") and Expenditures
Worksheet Report ("Attachment E") for payment of eligible expenses made against the HOME
Funds. HFC also agrees to require all recipients to maintain such financial documents
according to applicable federal, state and city laws, regulations and guidelines.
b. HFC agrees to require all recipients of HOME Funds maintain insurance coverages as provided
in Section 12.
c. If applicable under federal, state and local laws and regulations, HFC will require all recipients
of HOME Funds to comply with the procedures concerning lead-based paint hazards, in
accordance with HUD Lead-Based Paint Regulations.
d. If applicable under federal, state and local laws and regulations, HFC shall require all recipients
of HOME Funds to execute, prior to submission of the final statement for payment, an affidavit
and final release of lien, as approved by City, certifying that all persons, firms, associations,
corporations or other organizations furnishing labor and/or materials, have been paid in full and
that no claims are pending for labor or materials, personal injury or property damage. HFC
covenants and agrees that it shall comply with all laws of the State of Texas with respect to the
necessary retainage of payment to contractors so as to protect the owners or property
materialman's liens, and more particularly, HFC shall comply with state law with respect to
such secured by a promissory note without lien.
e. Unless terminated under the provisions of this Agreement, this Agreement shall be
automatically renewed so long as the HFC is administering the HOME Funds in accordance
with this Agreement.
3. Uniform Administrative Requirements and Program Management Standards
a. Financial Management
i. Accounting Standards
The HFC agrees to comply with 24 CFR Part 84 and agrees to adhere to the accounting
principles and procedures required therein, utilize adequate inte - 41 , an._ maintain
necessary source documentation for all costs incurred.
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ii. Cost Principles
HFC shall administer the HOME Funds in conformance with OMB Circular A-122, "Cost
Principles for Non-Profit Organizations" and attachments and revisions thereto, regarding
principles for determining costs.
b. Documentation and Record Keeping
i. Requirement
HFC shall maintain all records pertinent to the activities to be funded under this Agreement
required by HUD regulations specified in 24 CFR 92 Subpart K. In addition, HFC agrees to
keep records to fully document all expenditures charged to the HOME Fund. The
documentation must support the amounts charged to the HOME Fund and demonstrate that
the expenditures were appropriate to the stated goals of the FWHDF Program and allowable
under applicable federal, state and City guidelines. Such records shall include but not be
limited to:
(1) Records providing a full description of each activity; and
(2) Records required to document the acquisition, improvement, use or disposition of real
property acquired or improved with the HOME Fund. HFC shall maintain funding
allocation and repayment records, which clearly identify projects receiving HOME
funds under the FWHDF Program.
ii. Retention
(1) All records pertaining to the disbursement of HOME Funds shall be retained according
to applicable federal, state and city laws and regulations HFC may destroy HOME Fund
records according to applicable federal, state and city laws and regulations.
(2) HFC will retain HOME Fund loan records according to applicable federal, state and
local laws and regulations.
iii.Funding Allocation Records
The HFC shall maintain funding allocation records which clearly identify projects receiving
HOME Funds under the FWHDF Program and shall conform with applicable HOME
requirements in 24 CFR 92 Subpart F.
iv.Close Outs
The HFC's obligation to City shall not end until all close-out requirements are completed.
Activities during this close-out period shall include, but are not limited to: making final
payments, disposing of program assets (including the return of all unused materials,
equipment, unspent cash advances, program income balances, and accounts receivable to
City), and determining the custodianship of records.
v. Audits and Inspections
(1) City, HUD, and the United States Comptroller General, or their representatives, shall
have access to any books, documents, records and papers relating to the operations of
HFC under this Agreement for the purpose of audit, examination, exception and
transcription at all reasonable hours at all offices of HFC.
(2) All non-federal entities that expend $300,000 or more in federal funds within one year,
regardless of the source of the Federal award, must submit to City an annual audit
prepared in accordance with specific reference to OMB Circular A-133. The audit must
be prepared by an independent certified public accountant, be completed within twelve
(12) months following the end of the period being aud�aed:anal su mrtte to City
within thirty (30) days of its completion. Costs of prep1ration of the audit,m y be an
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allowable expenditure of federal funds in HFC's total agency operating budget. Non-
federal entities that expend less than $300,000 a year in federal funds are exempt from
Federal audit requirements for that year, but records must be available for review, or
audit by appropriate officials of the Federal agency, pass-through entity (City), and
General Accounting Office (GAO).
(3) City reserves the right to perform an audit of HFC's program operations and finances at
any time during the term of this contract, if City determines that such audit is necessary
for City's compliance with OMB Circular A-133. HFC agrees to allow access to all
pertinent materials. If such audit reveals a questioned practice or expenditure, such
questions must be resolved within fifteen (15) days after notice to HFC. If questions are
not resolved within this period, City reserves the right to withhold further funding under
this and/or future contract(s).
(4) If as a result of any audit it is determined that HFC has misused, misapplied or
misappropriated all or any part of the grant funds described herein, HFC agrees to
reimburse the City the amount of such funds so misused, misapplied or misappropriated,
plus the amount of any sanction, penalty or other charge levied against City because of
such misuse, misapplication or misappropriation.
4. Reporting Procedures
a. Program Income
HFC agrees that all program income from HOME Funds created under the operation of the
FWHDF Program will be expended prior to expending Federal funds and that any such program
income is subject to the terms of this contract. The HFC may expend Federal funds only if
program income is insufficient to meet all eligible program activity expenses.
b. Progress Reports
HFC will require all recipients of HOME Funds to submit and maintain monthly reports,
including but not limited to Monthly Narrative and Funding Allocation ("Attachments F") and
Repayment Reports ("Attachments G") to City for services and activities undertaken by
recipients of HOME Funds in performance of this contract. The report will be signed by a duly
authorized agent of recipient and submitted to City and HFC by the 15`" of the month following
the month which is reported.
c. Procurement
i. Compliance
HFC agrees to notify City upon allocation of HOME funds to a project so that it may be
properly recorded. HFC shall comply with City policy concerning the purchase of equipment
and shall maintain inventory records of all non-expendable personal property, as defined by
such policy, procured with funds provided herein.
ii. OMB Standards
The HFC shall procure all materials, property, or services in accordance with the
requirements of 24 CFR Subpart 84, covering utilization and disposal of property.
d. Relocation, Acquisition and Displacement 6
The HFC shall comply with applicable HOME 24 CFR 92.353 aL RRP 24 CFR 511.14 relating
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to the acquisition and disposition of all real property utilizing Federal funds, and to the
displacement of persons, businesses, nonprofit organizations and farms occurring as a direct
result of any acquisition of real property utilizing Federal funds. The HFC shall comply with
applicable City Ordinances, Resolutions, and Policies concerning displacement of individuals
from their residences.
5. Reversion of Assets
HFC agrees to return to City any HOME funds remaining on hand upon termination of this
Agreement.
In the event the HFC administering the HOME Funds transferred under this contract is dissolved,
this contract shall thereupon terminate. In the event this contract is terminated with or without
cause, or for any reason whatsoever, all assets of the HDF including cash, interest payments thereon
from loans or otherwise, all outstanding notes, mortgages and other instruments to secure HOME
funds and any real property owned by the HFC that was acquired or improved with HOME funds
from the HDF shall belong to the City and shall be transferred to the City or to such assignees as
City may designate.
6. Applicable Laws
a. HFC agrees to comply with the following federal laws and regulations issued thereunder as they
are currently written or are hereafter amended during performance of this contract:
• Title VI of the Civil Rights Act of 1964 (42 USC 2000d et seq.)
• Title VIII of the Civil Rights Act of 1968 (42 USC 3601 et seq.)
• Executive Orders 11063, 11246, as amended by 11375 and as supplemented by Department
of Labor regulations (41 CFR , Part 60)
• The Age Discrimination in Employment Act of 1967 (29 USC 621 et seq.)
• Section 504 of the Rehabilitation Act of 1973 (29 USC 794)
• The Immigration Reform and Control Act of 1986 (8 USC 1101 et seq.), specifically
including the provisions requiring employer verification of the legal status of its employees
• The Housing and Community Development Act of 42 USC 5301 et seq.
• Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42
USC 7401 et seq.)
• The Americans with Disabilities Act of 1990 (42 USC 12101 et. seq.)
• Clean Air Act, (42 USC 7401 et seq.)
• Federal Water Pollution Control Act, (as amended 33 U.S.C. 1251, et seq.), as amended
1318 relating to inspection, monitoring, entry, reports, and information, as well as other
requirements specified in said .Section 114 and Section 308, and all regulations and
guidelines issued thereunder
• Environmental Protection Agency (EPA) regulations pursuant to 40 CFR, Part 50, as
amended
• National Environmental Policy Act of 1969 (42 USC 4321 et seq.),
• HUD Environmental Review Procedures (24 CFR, Part 58)
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b. HFC, in the operation of its FWHDF Program, will comply with all applicable laws and
regulations concerning lead-based paint, including but not limited to 24 CFR 35 and will require
any recipients of HOME Funds likewise to comply.
c. Reporting Procedures
1. Program Income
HFC agrees that all program income from HOME Funds created under the operation of the
FWHDF Program will be expended prior to expending Federal funds and that any such
program income is subject to the terms of this contract. The HFC may expend Federal funds
only if program income is insufficient to meet all eligible program activity expenses.
2. Progress Reports
HFC will require all recipients of HOME Funds to submit and maintain monthly reports,
including but not limited to Monthly Narrative and Funding Allocation ("Attachments F")
and Repayment Reports ("Attachments G") to City for services and activities undertaken by
recipients of HOME Funds in performance of this contract. The report will be signed by a
duly authorized agent of recipient and submitted to City and HFC by the 15`h of the month
following the month which is reported.
3. Procurement
i. Compliance
HFC agrees to notify City upon allocation of HOME funds to a project so that it may be
properly recorded. HFC shall comply with City policy concerning the purchase of
equipment and shall maintain inventory records of all non-expendable personal
property, as defined by such policy, procured with funds provided herein.
ii. OMB Standards
The HFC shall procure all materials, property, or services in accordance with the
requirements of 24 CFR Subpart 84, covering utilization and disposal of property.
4. Relocation, Acquisition and Displacement
The HFC shall comply with applicable HOME 24 CFR 92.353 and RRP 24 CFR 511.14
relating to the acquisition and disposition of all real property utilizing Federal funds, and to
the displacement of persons, businesses, nonprofit organizations and farms occurring as a
direct result of any acquisition of real property utilizing Federal funds. The HFC shall
comply with applicable City Ordinances, Resolutions, and Policies concerning displacement
of individuals from their residences.
d. Other Laws
HFC covenants and agrees that its officers, members, agents, employees, program participants
and recipients shall abide by and comply with all other laws, federal, state and local, relevant to
the performance of this contract, including all ordinances, rules and regulations of the City of
Fort Worth and the Housing and Community Development Act of 1974, as amended. HFC
further promises and agrees that it has read, and is familiar with, terms and conditions of the
Grant under which funds are granted (HOME Regulations) and tha it, wily"ci3iA't with
same. It is agreed and understood that, if City calls the attention of C-to any,such.vio tion
on the part of HFC or any of its officers, members, agents, employees, program participants or
recipient, then HFC shall immediately desist from and correct such violation.
7. Nondiscrimination
a. HFC, in the execution, performance or attempted performance of this contract and agreement,
will not unlawfully discriminate against any person or persons because of sex, race, religion,
age, disability, color or national origin, nor will HFC permit its officers, members, agents,
employees, recipients or program participants to engage in such discrimination.
b. In accordance with the policy of the Executive Branch of the federal government, HFC
covenants that neither it nor any of its officers, members, agents, employees, program
participants or recipients of HOME Funds, 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, discriminate against persons because of
their age except on the basis of bona fide occupational qualification, retirement plan or statutory
requirement.
c. HFC further covenants that neither it nor its officers, members, agents, employees, recipients of
HOME Funds, program 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 upon a bona fide
occupational qualification, retirement plan or statutory requirement.
d. In accordance with the provisions of the Americans With Disabilities Act of 1994 ("ADA"),
HFC warrants that it and any and all of its recipients 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 employment for applicants for employment with HFC, or employees of
HFC or any of its recipients. HFC WARRANTS IT WILL FULLY COMPLY WITH
ADA'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 RECIPIENTS OF HOME FUNDS AGAINST
CITY ARISING OUT OF HFC'S AND/OR ITS RECIPIENTS OF HOME FUNDS'
ALLEGED FAILURE TO COMPLY WITH THE ABOVE-REFERENCED LAWS
CONCERNING DISABILITY DISCRIMINATION IN THE PERFORMANCE OF THIS
AGREEMENT.
e. This Contract is made and entered into with reference specifically to the ordinances codified at
Chapter 17, Article III, Division 3'("Discrimination in Employment Practices"), of the City
Code of the City of Fort Worth, and HFC hereby covenants and agrees that HFC, its officers,
members, agents, employees and recipients of HOME Funds, have fully complied with all
provisions of same and that no employee, employee-applicant or program participant has been
discriminated against by the terms of such ordinances by either the facers,
members, agents, employees or HOME Funds. w'
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8. Prohibition Against Interest
a. No member, officer or employee of City or its designees or agents; no member of the governing
body of the locality in which the FWHDF Program is situated; and no other public official of
such locality or localities, who exercises any functions or responsibilities with respect to the
FWHDF Program funded hereunder during his or her tenure or for one year thereafter, shall
have any interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for
work to be performed hereunder. HFC shall incorporate, or cause to be incorporated, like
language prohibiting such interest in all contracts and subcontracts hereunder.
b. No member, officer, employee, or program participant of HFC or its recipients of HOME Funds
shall have a financial interest, direct or indirect, in this contract or the funds transferred
hereunder or be financially interested, directly or indirectly, in the sale to HFC of any land,
materials, supplies or services purchased with any funds transferred hereunder, except on behalf
of HFC, as an officer, employee, member or program participant. Any willful violation of this
paragraph with the knowledge, expressed or implied, of HFC or its recipients of HOME Funds
shall render this contract voidable by the City of Fort Worth.
9. Minority and Women Business Enterprise Commitment
HFC agrees to abide by the City of Fort Worth's policy to involve minority and women business
enterprises (M/WBEs) in all phases its procurement practices and to provide them an 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, HFC agrees
to incorporate City Ordinance No. 11923, and all amendments or successor policies thereto, into all
contracts and will further require all persons or entities with whom it contracts to comply with said
Policy.
10. Non-Assignment
HFC will not assign any or all of its rights or responsibilities under this contract without the prior
written approval of City. Any purported assignment without such approval will be a breach of this
contract and void in all respects.
11. Indemnification, Hold Harmless and Defense Agreement
HFC COVENANTS AND AGREES TO INDEMNIFY, HOLD HARMLESS AND
DEFEND, AT ITS OWN EXPENSE, CITY AND ITS OFFICERS, AGENTS, SERVANTS
AND 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; O1li WHATSOEVER HIND OR CHARACTER,
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.- --FWHDF GRAM
DESCRIBED HEREIN, WHETHER OR NOT CAUSED, IN HOLtg.-.0_ 9,IN T, BY
ALLEGED NEGLIGENCE OF OFFICERS, AGENTS, S RV a.MWL YEES,
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CINTRACTORS OR SUBCONTRACTORS OF CITY; AND HFC HEREBY ASSUMES
ALL LIABILITY AND RESPONSIBILITY OF CITY AND ITS OFFICERS, AGENTS,
SERVANTS, AND EMPLOYEES FOR ANY AND ALL CLAIMS OR SUITS FOR
PROPERTY LOSS OR DAMAGE AND/OR PERSONAL INJURY, INCLUDING DEATH,
TO ANY AND ALL PERSONS, OF WHATSOEVER HINDS OR CHARACTER,
WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN CONNECTION WITH
THE EXECUTION, PERFORMANCE, ATTEMPTED PERFORMANCE OR NON-
PERFORMANCE OF THIS CONTRACT AND AGREEMENT AND/OR THE
OPERATIONS, ACTIVITIES AND SERVICES OF THE PROGRAMS DESCRIBED
HEREIN, WHETHER OR NOT CAUSED IN WHOLE OR IN PART, BY ALLEGED
NEGLIGENCE OF OFFICERS, AGENTS, SERVANTS, EMPLOYEES, CONTRACTORS
OR SUBCONTRACTORS OF CITY. HFC LIKEWISE COVENANTS AND AGREES TO
AND DOES HEREBY INDEMNIFY AND HOLD HARMLESS CITY FROM AND
AGAINST ANY AND ALL INJURY, DAMAGE OR DESTRUCTION OF PROPERTY OF
CITY, ARISING OUT OR IN CONNECTION WITH ALL ACTS OR OMISSIONS OF
HFC, ITS OFFICERS, MEMBERS, AGENTS, EMPLOYEES, RECIPIENTS, INVITEES,
LICENSEES, OR PROGRAM PARTICIPANTS, OR CAUSED, IN WHOLE OR IN PART,
BY ALLEGED NEGLIGENCE OF OFFICERS, AGENTS, SERVANTS, EMPLOYEES,
CONTRACTORS OR SUBCONTRACTORS OF CITY.
12. Insurance and Bonding
HFC shall require its recipients of HOME Funds to furnish to the City, in a timely manner,
certificates of insurance as proof that it has secured and paid for policies of commercial insurance
as specified herein. Such insurance shall cover all insurable risks incident to or in connection with
the execution, performance, attempted performance or nonperformance of the contract and
agreement in which HOME Funds are disbursed. The following coverage and limits thereof shall
be required unless modified by the HFC:
a. Liability Insurance:
i. Commercial General Liability Insurance Policy:
$500,000, each occurrence
$1,000,000. aggregate limit
This insurance shall have no exclusions by endorsement unless previously approved by City.
ii. Business Auto Liability Insurance Policy:
$1,000,000, each accident on a combined single-limit basis, or
$250,000 Property Damage
$500,000 Bodily Injury per person per occurrence
$2,000,000 Aggregate
Insurance policy shall be endorsed to cover"Any Auto"
Pending availability of the following coverage, and at the discretion of the HFC, the policy
shall be the primary responding insurance policy versus a personal auto insurance policy.
iii.Directors and Officers Insurance Illy
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Note: This insurance shall cover the recipient of HOME Funds and any associated Board of
Directors members.
iv.Workers' Compensation Insurance
Part A: Statutory Limits
Part B: Employer's Liability
$100,000 each accident
$100,000 disease - each employee
$500,000 disease—policy limit
Note: Such insurance shall cover employees performing work on any and all projects
including but not limited to construction, demolition, rehabilitation. Coverage shall be
maintained by the recipient of HOME Funds. In the event the respective recipient of HOME
Funds does not maintain coverage, the HFC shall maintain the coverage on such recipient of
HOME Funds for each applicable subcontract.
b. Additional Insurance Requirements:
i. HFC shall furnish to City a certificate or certificates of insurance documenting all
insurance coverage's required herein within thirty (30) days of execution of a contract with
the recipient of HOME Funds and prior to payment of any HOME Funds hereunder.
Insurance documentation shall at all times in the course of this agreement reflect current
insurance coverages. Any failure on part of City to request such documentation shall not be'
construed as a Waiver of any insurance requirements specified herein.
ii. HFC understands and agrees that its limit of legal liability may not necessarily be limited to
the limits and lines of insurance coverages specified by City and required herein.
iii. HFC understands and agrees that insurance coverages specified herein may be revised at
the City's option and in the event such are revised upward, HFC shall revise its insurance
and provide City documentation thereof within thirty (30) days following notice to HFC of
such requirements.
iv. City shall be endorsed as additional insured on all required insurance policies.
V. All insurance policies required hereunder shall each be endorsed with a waiver of
subrogation in favor of the City.
vi. Insurers of policies must be acceptable to the City in terms of financial strength and
solvency. They shall be licensed or otherwise authorized to do business in the State of
Texas, as deemed by the Texas Department of Insurance.
13. Waiver of Immunity
If HFC, 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; HFC hereby expressly waives its rights to plead defensively such immunity or
exemption as against City. This section shall not be construed to affect a governmental entity's
immunities under constitutional, statutory or common law.
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14. Breach of Contract
All terms, conditions and specifications of the contract shall be considered material, and failure to
perform any part of the contract shall be considered breach of contract. Should the HFC fail to
remedy any breach of contract within fourteen (14) days after written notification to the HFC of the
violation, the City may, at its option and in addition to any other remedies available to it under law,
terminate the contract. This contract shall not be terminated, however, if the HFC has commenced
to cure the breach within said fourteen (14) day period, and thereafter pursues such cure with
reasonable diligence and in good faith.
15. Termination
a. In addition to, and not in substitution for, other provisions of this Contract regarding the
provision of services with federal funds, pursuant to any applicable HOME Program
regulations, it is expressly understood and agreed by and between the parties hereto that this
Contract is wholly conditioned upon the actual receipt by City of Federal funds; that all money
distributed to HFC hereunder shall be exclusively from Federal funds received under said grant
and not from any funds of City; and that if such funds under said grant are not timely
forthcoming, in whole or in part, City may, at its sole discretion, terminate this contract and
agreement and City shall not be liable for payment for any work or services performed by HFC
under or in connection with this contract.
b. City may terminate this contract whenever such termination is determined to be in the best
interest of City or in event of HFC's default, inability or failure to perform or to comply with
any of the terms herein, or for other good cause.
c. The parties acknowledge that Federal funds paid hereunder are intended to provide only partial
funding for HFC's program operations. If non-Federal funds included in the Operating Budget
are not forthcoming to HFC during the contract term, City may terminate this contract.
d. Federal funds provided hereunder may not be used as collateral for loans to HFC to defray
program operation expenses, and any attempted use of federal funds for this purpose will result
in termination of this contract by City.
e. Termination will be effected by written notice to HFC, specifying the portions of the contract
affected and the effective date of termination. Upon HFC's receipt of such termination notice,
HFC will:
i. Stop work under the contract on the date and to the extent specified by City;
ii. Cease expenditures of Federal funds, except as necessary for completion of the portions
of the contract not terminated; and
iii. Terminate all orders and contracts to the extent that they relate to terminated portions of
the contract.
f. HFC will return to City any unused funds previously advanced by City under this contract
within thirty (30) days of the effective date of contract terrft1�fl�-City wird have no
responsibility or liability for HFC's expenditures or actions occurring after the effectii e date of
contract termination.
16. Certification Regarding Lobbying
a. The undersigned representative of HFC hereby certifies, to the best of his or her knowledge and
belief, that: No federal appropriated funds have been paid or will be paid, by or on behalf of
HFC, 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 or an employee of a
member 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. HFC shall require that the language of this certification
be included in all subcontracts or agreements involving the expenditure of federal funds.
b. If any funds other than federal appropriated funds have been paid or will be paid 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, or an employee of a member of Congress in
connection with this federal contract, grant, loan or cooperative agreement, HFC shall complete
and submit Standard Form-LLL, Disclosure Form to Report Lobbying," in accordance with its
instructions.
17. Miscellaneous Provisions
a. All terms of this contract shall apply to any and all recipients of HFC who are in any way paid
with Federal funds or who perform any work in connection with HFC's program.
b. The provisions of this agreement are severable, and, if for any reason a clause, sentence,
paragraph or other part of this agreement shall be determined to be invalid by a court or federal
or state agency, board or commission having jurisdiction over the subject matter thereof, such
invalidity shall not affect other provisions which can be given effect without the invalid
provision.
c. The failure of the City 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
any extent of City's right to assert or rely upon any such term or right on any future occasion.
d. Should any action, whether real or asserted, at law or in equity, arise out of the execution,
performance, attempted performance or nonperformance of this contract and agreement, venue
for said action shall lie in Tarrant County, Texas.
e. 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 between the
parties hereto concerning the work and services to be performed hereunder, and any prior or
contemporaneous, oral or written agreement which purports to vary from the terms hereof shall
be void. Any amendments to the terms of this contract must be in wn-titng and must -b
approved by each party to this contract.
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IN WITNESS WHEREOF, the part�* s �eto have ex uted ur copies of this contract in Fort
Worth, Tarrant County, Texas, this day of I A.D. 2004.
CITY OF FORT WORTH FORT WORTH H ING FINANC CORP.
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By: ,�(c�.Cl� / 1'C � By:
Reid Rector Ralph McCloud
Assistant City Manager President, Board of Directors
APPROV AS F SND LEGALITY:
By:
ssi ant City Attorney
ATTEST:
City „ ecretary Contract Authorization
Date Date
S�. 6 1•f�I tJ .
•.1.4i1� C
13
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, a Notary public in and for the State of Texas, on this day
personally appeared Reid Rector, known to me to be the person whose name is subscribed to the
foregoing instrument, and acknowledged to me that the same was the act of the City of Fort Worth and
that she executed the same as the act of said City of Fort Worth for the purposes and consideration
therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this �' day of
A.D. 2004.
RE]
BARNES
PUBLIC Texas Notary 'ulic in and for
3-31-2005 the State of Texas
STATE OF TEXAS )
COUNTY OF TARRANT )
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day
personally appeared Ralph McCloud, known to me to be the person whose name is subscribed to the
foregoing instrument, and acknowledged to me that he executed the same for the purposes and
consideration therein expressed, as the act and deed for Fort Worth Housing Finance Corporation. and
in the capacity therein stated as its duly authorized officer or representative.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of ASCJ--c GIXZ ,
A.D. 2004.
f
tWr RONALD P. GONZALES otary Public in and(fo
Notwy PublicPublic ' The State of Texas
* t STATE OF TEXAS
°F �h My Comm. Exp•05/17/2004
14
C.,C
A
City of Fort Worth, Texas
41jagor And Councit Communication
DATE REFERENCE NUMBER LOG NAME PAGE
8/1/00 G-12976 22CENTRALCITY 1 of 2
SUBJECT ADOPTION OF A COMMON DEFINITION OF "CENTRAL CITY"
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt a common definition of the term "central city". Central city shall be defined as the area within
Loop 820 consisting of:
• All CDBG-eligible census block groups; and
• All state-designated enterprise zones; and
• All census block groups that are contiguous by 75 percent or more of their perimeter to CDBG-
eligible block groups or enterprise zones; and
2. Authorize and direct the City Manager to use the central city definition in administrating appropriate
City programs, such as tax abatement incentives, neighborhood empowerment zones, infill housing,
brownfields economic redevelopment, central city parkland acquisition, and community facility
agreement incentives.
DISCUSSION:
At its February 2000 retreat, the City Council requested the City Manager to prepare a definition of
"central city' for consideration by the City Council in setting policies and priorities for various City
programs. City staff have identified the following criteria by which a definition might be selected:
centrality of location, economic distress, consistency among economic and community development
program areas, stability of designation over time, geographic contiguity, and simplicity of definition.
Using these criteria, City staff have prepared a definition of central city and identified potential programs
to which the definition might be applied.
The central city definition would not change the areas that are eligible for City programs, but would
simply provide a geographic area on which to base policies and priorities for implementing these
programs. A particular program, for example, could provide incentives to activities within the central
city, plus additional areas as appropriate.
The proposed definition and application of the term "central city" were presented on May 16, 2000 to
the City Council's Economic Development Committee, and they subsequently requested staff to present
the proposal to the full City Council for consideration.
City of Fort Worth, Texas
"agor And Council Communication
DATE REFERENCE NUMBER LOG NAMEPAGE
8/1/00 G-12976 22CENTRALCITY 2 of 2
SUBJECT ADOPTION OF A COMMON DEFINITION OF "CENTRAL CITY"
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that adoption of the central city definition would have no material effect
on City funds.
RG:k
Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: (to)
Ramon Guajardo 6140
Originating Department Head:
Fernando Costa 8042 (from) Related Records
Additional Information Contact: � R
,v
Fernando Costa 8042
FORT WORTH HOUSING FINANCE CORPORATION
POLICY STATEMENT ON THE
FORT WORTH HOUSING DEVELOPMENT FUND (FWHDF)
I. GENERAL PURPOSE AND OBJECTIVES
A. Purpose.
The purpose of the Fort Worth Housing Development Fund (FWHDF) is to provide
loans to housing sponsors for the preservation and development of housing,
particularly in the Central City and target areas.
B. Objectives.
The objectives of FWHDF are:
1. Develop quality workforce housing for households with various incomes in the
Central City and target areas, such as Model Blocks, Neighborhood
Empowerment Zones, Urban Villages, State Enterprise Zones, Federal
Target Areas, Designated Building Areas, and Special Target Areas; and
2. Preserve and improve existing housing stock; and
3. Foster mixed-income and mixed-use developments; and
4. Encourage private sector participation in target areas (for-profit and nonprofit
developers/builders); and
5. Attract homebuyers to Fort Worth; and
6. Build production capacity of housing nonprofits and small / medium-sized
developers / builders; and
7. Spur economic development.
II. DEFINITIONS
"Affordable Housing"means housing units for persons or families with incomes at or below
120% of Area Median Family Income (AMFI) that cost no more than 30% of their monthly
incomes.
"Area Median Family Income"(AMFI) means the median income in Fort Worth adjusted by
family size, as published annually by the U.S. Department of Housing and Urban
Development (HUD).
"Central City" means the area within Loop 820 consisting of all Community Development
Block Grant (CDBG) eligible census block groups, all state-designated enterprise zones,
and all census block groups which are contiguous by 75% or more of their perimeter to
CDBG-eligible block groups or enterprise zones. This definition is adopted by the City
Council on August 1, 2000 (M&C G-12976).
"City"means the City of Fort Worth, Texas.
211
1
"Designated Building Areas"are target areas approved by the City Council for infill housing
activities of the Fort Worth Housing Finance Corporation (FWHFC).
"Federal Target Area" is defined by the U.S. Department of Treasury in connection with
issuance of single family mortgage bonds.
"Gross Floor Area" is measured by taking the outside dimensions of the building at each
floor level, except that portion of the basement used only for utilities or storage, and any
areas within the building used for off-street parking.
"Mixed-Use Development Project"is a development project which proposes to construct or
rehabilitate mixed residential-commercial facilities in which at least 80 percent of the income
generated by the project comes from residential uses, and is on property that is (or meets
the requirements to be) zoned mixed-use as described by the City of Fort Worth Zoning
Ordinance. Commercial uses include office, eating and entertainment, and/or retail sales
and service uses.
"Model Blocks" is a geographic area designated by the City Council as a Model Blocks to
receive $1.2 million funding for neighborhood improvements.
"Neighborhood Empowerment Zone"is a geographic area designated by the City Council as
a Neighborhood Empowerment Zone according to Chapter 378 of the Texas Local
Government Code.
"Special Target Area" is an area with unique development opportunities, a strategic plan,
and City Council support.
"State Enterprise Zone" is a geographic area designated by the City Council according to
Chapter 2303 of the Texas Government Code.
"Urban Village" is a mixed-use district designated by the City Council along commercial
corridors in the Central City Commercial Corridors Revitalization Strategy Report (M&C G-
13704).
III. FUNDING
The FWHDF shall consist of lines of credit obtained from the Federal National Mortgage
Association (Fannie Mae) or other lending institutions, federal and other funds as approved
by the City Council or Fort Worth Housing Finance Corporation (FWHFC).
IV. ELIGIBLE ACTIVITIES
The following are eligible activities for FWHDF funding:
A. Predevelopment: activities to promote housing development projects, including
but not limited to appraisal, survey, feasibility/market study, legal, architectural
and engineering service; and
B. Single Family Lot Development: land acquisition and site developme:71effamily
'
single family homes; and
C. Land Development: land acquisition and site development for sin
� .
2
subdivisions; and
D. Single Family Construction/Rehabilitation: activities related to construction,
rehabilitation (including adaptive reuse) of single family homes; and
E. Multifamily/Mixed-Use Construction: activities related to acquisition, site
development, construction or rehabilitation (including adaptive reuse) of
multifamily or mixed-use developments.
V. GENERAL GUIDELINES FOR FUND ALLOCATION
FWHDF shall be allocated according to the following guidelines:
A. All FWHDF shall be distributed to projects in the Central City and target areas;
and
B. At least 20% of FWHDF shall be distributed to provide housing for households
with incomes at or below 120% of area media family income; and
C. No more than 10% of FWHDF shall be distributed for the preservation,
rehabilitation or creation of transitional or permanent housing for persons with
special needs; and
D. No more than 5% of FWHDF shall be used for administration; and
E. Funds may be distributed through loans, loan guarantees, and grants in
extraordinary circumstances as determined by the FWHFC. Total loan
guarantees shall not exceed 5% of FWHDF; and
F. A loss reserve not to exceed 10% of FWHDF shall be established and
maintained; and
G. A reserve account not to exceed 5% of FWHDF may be established and
maintained to preserve the ability of FWHDF to take maximum advantage of
unforeseen opportunities in assisting housing and to ensure prudently against
unforeseen expenses.
VI. MANAGEMENT AND ADMINISTRATION
A. Governing Body:
The FWHFC shall determine policies and manage the FWHDF's activities such as
allocation of funds and administrative and procedural guidelines, including
underwriting and due diligence guidelines.
B. Advisory Board
The City Council's Housing and Workforce Development Committee (HWDC) shall
serve as the Advisory Board of FWHDF. The Advisory Board shall make
recommendations to the FWHFC relating to the allocation and management of the
FWHDF, administrative and procedural guidelines, including underwriting and due
diligence guidelines.
C. Administration
The City's Housing Department shall administer and monitor FWHDF allocation and
activities in accordance with the Policy Statement and Program Guidelines and
Procedures of the FWHDF.
•9
4
FORT WORTH HOUSING FINANCE CORPORATION
FORT WORTH HOUSING DEVELOPMENT FUND (FWHDF)
PROGRAM GUIDELINES AND PROCEDURES
I. GENERAL PURPOSE AND OBJECTIVES
A. Purpose.
The purpose of the Fort Worth Housing Development Fund (FWHDF) is to provide
loans to housing sponsors for the preservation and development of housing,
particularly in the Central City and target areas.
B. Objectives.
The objectives of FWHDF are:
1. Develop quality workforce housing for households with various incomes in the
Central City and target areas, such as Model Blocks, Neighborhood
Empowerment Zones, Urban Villages, State Enterprise Zones, Federal
Target Areas, Designated Building Areas, and Special Target Areas; and
2. Preserve and improve existing housing stock; and
3. Foster mixed-income and mixed-use developments; and
4. Encourage private sector participation in target areas (for-profit and nonprofit
developers/builders); and
5. Attract homebuyers to Fort Worth; and
6. Build production capacity of housing nonprofits and small / medium-sized
developers / builders; and
7. Spur economic development.
II. DEFINITIONS
"Affordable Housing" means housing units for persons or families with income at or below
120% of Area Median Family Income (AMFI) that cost no more than 30% of their monthly
income.
"Area Median Family Income" (AMFI) means the median income in Fort Worth adjusted by
family size, as published annually by the U.S. Department of Housing and Urban
Development (HUD).
"Central City" means the area within Loop 820 consisting of all Community Development
Block Grant (CDBG) eligible census block groups, all state-designated enterprise zones,
and all census block groups which are contiguous by 75% or more of their perimeter to
CDBG-eligible block groups or enterprise zones. This definition is adopted by the City
Council on August 1, 2000 (M&C G-12976). - ---_�
"City"means the City of Fort Worth, Texas.
"Designated Building Areas"are target areas approved by the City Council for infill housing
activities of the Fort Worth Housing Finance Corporation (FWHFC).
"Federal Target Area" is defined by the U.S. Department of Treasury in connection with
issuance of single family mortgage bonds.
"Gross Floor Area" is measured by taking the outside dimensions of the building at each
floor level, except that portion of the basement used only for utilities or storage, and any
areas within the building used for off-street parking.
"Mixed-Use Development Project"is a development project which proposes to construct or
rehabilitate mixed residential-commercial facilities in which at least 80 percent of the income
generated by the project comes from residential uses, and is on property that is (or meets
the requirements to be) zoned mixed-use as described by the City of Fort Worth Zoning
Ordinance. Commercial uses include office, eating and entertainment, and/or retail sales
and service uses.
"Model Blocks" is a geographic area designated by the City Council as a Model Blocks to
receive $1.2 million funding for neighborhood improvements.
"Neighborhood Empowerment Zone"is a geographic area designated by the City Council as
a Neighborhood Empowerment Zone according to Chapter 378 of the Texas Local
Government Code.
"Special Target Area" is an area with unique development opportunities, a strategic plan,
and City Council support.
"State Enterprise Zone" is a geographic area designated by the City Council according to
Chapter 2303 of the Texas Government Code.
"Urban Village" is a mixed-use district designated by the City Council along commercial
corridors in the Central City Commercial Corridors Revitalization Strategy Report (M&C G-
13704).
III. TARGET AREAS
FWHDF will be used to fund projects in the Central City and target areas, particularly the
following areas (Exhibit A) and other future target areas that may be designated by the City
Council:
A. Urban Villages:
Evans/Rosedale, Hemphill/Berry, Magnolia Village, Mercado, Paddock Bend,
Polytechnic/Wesleyan, Ridglea Village/Como, Trinity Park Village,
University/West 7th, West Berry, Oakland Corners, Handley.
B. Neighborhood Empowerment Zones (NEZs):
Evans/Rosedale, Handley, Hemphill/Berry, Magnolia Village, Polytechnic/
Wesleyan, Ridglea Village/Como, Rolling Hills, Stop Six, Riverside, Woodhaven
2
C. State Enterprise Zones (EZs):
North, South, Southeast EZs
D. Special Target Areas:
Polytechnic Heights Educational Corridor, Medical District, Downtown, Samuels
Avenue/Rock Island
IV. ELIGIBLE ACTIVITIES
The following are eligible activities for FWHDF funding:
A. Predevelopment: activities to promote housing development projects, including
but not limited to appraisal, survey, feasibility/market study, legal, architectural
and engineering service; and
B. Single Family Lot Development: land acquisition and site development for infill
single family homes; and
C. Land Development: land acquisition and site development for single family
subdivisions; and
D. Single Family Construction/Rehabilitation: activities related to construction or
rehabilitation (including adaptive reuse) of single family homes; and
E. Multifamily/Mixed-Use Construction: activities related to acquisition, site
development, construction or rehabilitation (including adaptive reuse) of
multifamily or mixed-use developments.
V. ELIGIBLE APPLICANTS
Eligible applicants shall include for-profit and/or non-profit housing development
organizations that meet all the following criteria:
A. Must demonstrate a track record in housing development for at least two years
from the date of the application, particularly in residential development as
evidenced by actual development or construction of single family or multifamily
residential units; and
B. Have good financial standing as evidenced by financial statements and
acceptable credit record; and
C. Are not delinquent in payment of any federal, state or local personal or property
taxes; and
D. Have no federal, state, or local audit findings that have not been resolved; and
E. Have no outstanding liens or other judgment from the City; and
F. Have no outstanding financial obligation with the City; and
G. Have a designated person duly authorized by its Board of Directors as signatory
on behalf of the organization; and
H. Submit a Certificate of Good Standing issued by the State of Texas Comptroller
Office of Public Accounts.
VI. APPLICATION PROCEDURES AND PROJECT SELECTION
A. The FWHFC shall issue a notice of fund availability (NOFA) �� ;
3 r. . ..
B. The applicant shall respond to the NOFA by submitting their applications to the
Housing Department. Applications may be submitted at any time after a NOFA
is issued. Approved projects will be funded until the annual allocation is
exhausted. Applications shall include the following:
1. Completed application form; and
2. Application fee ($50), non-refundable in cashier's check or money order; and
3. Any supporting documents required in the application form, such as prior
experience, financial statements, plans and specifications, development
budget, pro-forma, management plan, security plan.
C. The Housing Department shall review completed applications to ensure the
eligibility of the applicant and the proposed project.
D. The Housing Department staff may arrange meetings with the applicant and
visits to the project site.
E. The Housing Department shall evaluate the proposed project based on the
following criteria:
1. Feasibility of the project;
2. Consistency with existing City policies including City Council Strategic Goals,
Comprehensive Plan, Consolidated Plan and Housing Policy;
3. Compatibility with neighborhood characteristics of proposed location;
4. Capacity of the applicant to implement the proposed project;
5. Leverage of funds;
6. Community involvement;
7. Need for funding in the case of gap financing;
8. Meeting needs of workforce housing by providing residential units affordable
and set-aside for individuals or households with incomes at or below 120% of
area median income adjusted by family size (as defined by the U.S.
Department of Housing and Urban Development);
9. Support innovative concepts such as mixed-use and mixed-income
development;
10. Located in target areas as specified in Section III;
11.Community services available and distance to proposed project;
12.Quality of the project, such as design, amenities, services available to
residents, cost efficiency, management and security plan.
The weights of these criteria shall be specified in the NOFA. Any application
which scores less than 70 out of 100 will be disqualified.
F. The Housing Department shall recommend the amount and terms of the award to
the City Council's Housing and Workforce Development Committee (HWDC).
G. In making a recommendation to the FWHFC Board, HWDC may approve, reject,
or amend the Housing Department's recommendations.
H. The FWHFC Board may approve, reject, or amend HWDC's recommendations.
I. The Housing Department shall issue a Letter of Award to the selected applicant.
Unsuccessful applicants shall likewise be notified.
J. The FWHFC and the selected applicant shall enter into a contract to formalize
the award. The contract shall be reviewed and approved by the FWHFC Attorney
before execution. The contract shall prescribe, but not limited to the following:
1. Amount and terms of the award, including interest rate, loan term, fees
and payment or if the award is a grant, list the amount; and
2. Project completion schedule; and
3. Performance standards; and
4. Disbursement schedule and inspections; and
5. Compliance reporting, monitoring and auditing; and
6. Delinquency and recapture; and
7. Minority and Women Business Enterprise (MWBE) participation
requirements; and
8. Effect of sale, assignment or lease of property
VII. LOAN and GRANT STANDARDS/UNDERWRITING GUIDELINES/DUE
DILIGENCE GUIDELINES
The Housing Department shall evaluate the applicant's project financing and
recommend appropriate loan terms or grant funding to HWDC according to the
following guidelines:
A. Grants
Grants can be funded only out of HOME and other federal or local funds allocated to
FWHDF. Grants will be subject to compliance with regulations pertaining to the
funding source.
Grants will be considered only under extraordinary circumstances as determined by
the FWHFC. Examples of projects falling in the category are rehabilitation of
severely deteriorated, abandoned, or vacant housing units that pose health and
safety hazards to the larger community.
Grants provide funds that may be used for the following eligible activities:
predevelopment, single-family lot development, land development, single-family
construction/rehabilitation, or multifamily/mixed-use construction. The grant award
amount and the schedule for disbursement of the grant funds is based on each
application submitted.
B. Predevelopment Loans
Predevelopment loans provide funds needed to facilitate the preservation and
development of housing, and to spur economic development in t e en haT City
and target areas.
5
1. Term: 6 months with extension of 1 to 6 months. FWHFC may extend loan
terms beyond the initial loan term upon the borrower's submission of a written
request for extension and other information as required by the FWHFC.
2. Interest Rate: The rate will depend on the project financing and is set when
the project is approved for funding, but no more than Prime plus 1.5%.
3. Origination Fee: 1% of the total loan amount. FWHFC may reduce or waive
the fee.
4. Repayment: Loans will be repaid out of the construction or permanent loan
for the project or other income. FWHFC may forgive all or part of the loan if
there are impediments to project development that FWHFC believes are
reasonably beyond the control of the borrower or if the project is deemed to
be infeasible.
5. Covenant: A covenant may be recorded against the property if required by
funding source.
6. Collateral: If applicable, first lien Deed of Trust on each lot and improvements
or any other form of collateral as relevant to loan use
7. Loan Amount:
a. Maximum: $300,000
b. Minimum: $10,000
8. Other Guidelines: No more than once a month draw prepared on draw
spreadsheet with supporting documentation
C. Single Family Lot Development
These loans provide funds to purchase land and to develop infill single family
homes. A loan can be structured as an individual loan on one lot/packaged lots
or a revolving fine of credit allowing a borrower to purchase and repay the loan
based on criteria approved by FWHFC.
1. Term: 6 or 12 months
2. Interest Rate: The rate will depend on the project financing and is set when
the project is approved for funding, but no more than Prime plus 1%.
3. Origination Fee: 1% of the total loan amount plus $50 on each lot under
revolving line of credit. FWHFC may reduce or waive the fee.
4. Repayment: Upon construction of single family house or loan maturity,
whichever is first.
5. Covenant: A covenant may be recorded against the property if required by
funding source.
6. Collateral: First lien Deed of Trust on each lot and improvements
7. Maximum Loan Amount: $50,000
8. Maximum Loan to Value Ratio: Lower of 65% or 100% of cost
9. Other Guidelines: No more than once a month draw prepared on a draw
spreadsheet with supporting documentation
D. Land Development
These loans provide funds to purchase land and to develop single family
subdivisions.
6
1. Term: 12 to 24 months
2. Interest Rate: The rate will depend on the project financing and is set when
the project is approved for funding, but no more than Prime plus 1%.
3. Origination Fee: 1% of the total loan amount. FWHFC may reduce or waive
the fee.
4. Repayment: Upon sale of lots to builders
5. Covenant: A covenant may be recorded against the property if required by
funding source.
6. Collateral: First lien Deed of Trust on each lot and improvements
7. Maximum Loan Amount: $1,000,000
8. Maximum Loan to Value Ratio, Up to 75%
9. Other Guidelines:
a. No more than once a month draw prepared on a draw spreadsheet with
supporting documentation
b. Acceptable contract(s) with builder(s) to purchase lots at an agreed upon
price and time
c. Construction inspection prior to start of construction and monthly
thereafter
d. FWHFC must approve all equity sources and will require funding of equity
prior to loan approval.
E. Single Family Construction/Rehabilitation
These loans provide funds to construct or rehab single family homes. A loan can
be structured as an individual loan on one house or a revolving line of credit
allowing the borrower to purchase and repay loan based on criteria approved by
FW HDC.
1. Term: 6 or 12 months
2. Interest Rate: The rate will depend on the project financing and is set when
the project is approved for funding, but no more than Prime plus 1%.
3. Origination Fee: 1% of the total loan amount with $150 on each house under
revolving line of credit. FWHFC may reduce or waive the fee.
4. Repayment: Interest payments are due monthly. Principal payments are due
at maturity of the loan or when each house is sold, whichever comes first.
5. Covenant: A covenant may be recorded against the property if required by
funding source.
6. Collateral: First lien Deed of Trust on each lot and improvements
7. Maximum Loan Amount: $500,000
8. Maximum Loan to Value Ratio:
a. Pre-Sold Homes: Lower of 90% loan-to-value or 100% of cost
b. Speculative Homes: Lower of 50% loan-to-Value or 100% cost
9. Limit on Speculative Homes: 2 homes, but may be increased depending on
the size of the project
10. Conditions for Funding:
a. Evidence of required equity or other funding sources on speculative
homes
b. Contract for sale to a qualified homebuyer for each house to be
constructed
7
c. Title insurance naming FWHFC as lien holder of the lot and improvements
required
d. Approved budget for each house to be constructed
e. General liability and workers compensation required according to the
City's policy
f. Multi-peril insurance maintained on each property, for no less than the
related loan amount, listing FWHFC as mortgagee
g. An independent appraisal for each house to be constructed
h. Environmental review required
i. Third party or FWHFC inspections due at 50% and 100% of construction
completion for each house
j. No more than twice a month draw prepared on draw spreadsheet with
supporting documentation
F. Multifamily/Mixed-Use Construction:
These loans provide funds for construction or rehabilitation of multifamily housing
or mixed-use developments.
1. Term: Up to 24 months
2. Interest Rate: The rate will depend on the project financing and is set when
the project is approved for funding, but no more than Prime plus 1%.
3. Origination Fee: 1% of the total loan amount. FWHFC may reduce or waive
the fee.
4. Repayment: Loans to be repaid by maturity of the loan, permanent loan
proceeds or other income, whichever comes first.
5. Covenant: A covenant may be recorded against the property if required by
funding source.
6. Collateral: First lien Deed of Trust on each lot and improvements if there are
no other lending institutions that require a first lien position. Subordinate lien
on each lot and improvements in conjunction with other lending institutions
that require a first lien position.
7. Maximum Loan to Value Ratio: 80%, but not exceeding permanent loan
takeout.
8. Minimum Debt Service Coverage: 1.15.
9. Conditions for Funding:
a. Evidence of required equity or other funding sources
b. Permanent loan commitment greater than loan amount
c. Title insurance naming FWHFC as lien holder of the lot and improvements
required
d. Approved development budget and pro-forma for 10 years
e. General liability and workers compensation required according to the
City's policy
f. Multi-peril insurance maintained on the property, for no less than the
related loan amount, listing FWHFC as mortgagee
g. An independent appraisal for the property
h. Environmental review required
i. Third party and FWHFC inspections due in accord nce with agreed upon
schedule
8
}
j. No more than once a month draw prepared on draw spreadsheet with
supporting documentation and construction inspection report
Exhibit B summarizes the above FWHDF loan options. Exhibit C contains a due
diligence checklist for these loans.
9
Exhibit A Target Area Map
Housing Department Target Areas Map Fort Worth Texas
Legend a rCnyt
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10
Housing Development Fund
Exhibit B and Exhibit C
Attachment Check List
Check the following table for required attachments for your project type. All required attachments
must be submitted with the completed application form.
Soft Cost Single Family Land Single Family Multifamily/
Predevelop- Lot Development Construction Mixed-use
ment Development or Rehab Construction
Complete Application X X X X X
Borrower Structure Diagram or Description X X X X X
Showing General Partner&Limited Partners
with%Interest&Description of Control
Resumes and Bank References X X X X X
Financial Statements,Credit Reports,and Tax X X X X X
Returns
Organizational Documents X X X X X
Certificate of Good-Standing X X X X X
Opinion Letter Regarding Formation and En- X X X X
forceability
Construction Sources and Uses X X X X
Development Budgee
Income Expense&Cash Flow Proformas" ' X X X X
Other Sources:Grants,TIF,etc... X X
Appraisal no more than 12 mos.) X X X X
Market Study X ' X
Title Policy or Option to Buy X X X X
ALTA Survey X X X X
Soil&Geotechnical Report X ' X
Phase I and/or I I Environmental X ' X
Evidence of Zoning Compliance X X
Real Estate Tax Information ' X X
Land Sales Agreement X X X X
Home Sales Agreement X X
Utility Letters: Water,Gas,Sewer,Telephone, ' X ' X
Cable
Site Plan X X
Plans&Specifications X X X
Insurance:Builders'Risk,General Liability, X X X
Workers Compensation
Permits,Contractor Registration ' X X X
Construction Contract X X X
Contractors'Resume,Financials,License,and ' X X X
Tax Returns
Payment&Performance Bond X X
Deveb ment Agreement ' X
Management Agreement X
Architect's Contract X X
Architect's Resume and License X X
Civil Engineer's Contract X X
Soil Engineer's Contract ' X ' X
Permanent Loan Commitment X
Board minutes or resolution authorizing the X X X X X
submission of the application and the person
to sign the contract for the Board(Non-Profit
Only)
The organization's latest strategic, X X X X X
development or business plan(Non-Profit
Only)
X=Required
'=Document may be required based on circumstances.
"=Download sample forms from www.fortworthgov.org/housing/or request a hard copy at 817392-7507.
Housing Development Fund
Exhibit B and Exhibit C
Summary of Loan Terms
Predevelop- Single Family Land Develop- Single Family Multifamily/Mixed-
ment Lot Develop- ment Construction or use Construction
ment Rehab
Term 6 months with 1- 6 or 12 month op- 12-24 month loan. 6 or 12 months. Up to 24 months
6 month exten- tion. Loan can be Can be an individ-
sion set up as a re- ual loan on a par-
volving line of ticular house or set
credit to purchase up as a revolving
land/lots under line of credit to re-
perimeters hab or construct
agreed upon by homes under pe-
borrower and rimeters agreed
FWHFC. upon by borrower
and FWHFC.
Maximum $300,000 $50,000 $1,000,000 $500,000 $2,000,000
Loan
Size
Fee 1% 1%with$50 fee 1% 1% with$150 fee 1%
on each lot under on each house un-
revolving line of der revolving line
credit of credit
Interest No more than No more than Prime+ 1% No more than No more than Prime
Rate Prime + 1.5% Prime + 1% Prime + 1% + 1%
Max Valuation adjust- Lower of 65% Up to 75% LTV Pre-Sold Homes: Up to 80% of LTV,
Loan-to- ments are deter- LTV or 100%of Lower of 90% LTV but not exceeding
Value mined based on cost or 100%of cost. permanent loan
(LTV) circumstances Speculative takeout
supportable by Homes: Lower of
underwriting. 50%LTV or 100%
cost
Minimum N/A WA N/A N/A 1.15x Debt Service
Debt Ser- Coverage
vice Cov-
erage
Repay- Loan to be re- Loan to be repaid Loan to be repaid Loan to be repaid Loan to be repaid by
ment paid out of con- upon construction upon sale of lot to upon sale of house permanent loan pro-
struction/perma- of single family builder or loan maturity, ceeds, income or
nent loan pro- house or loan ma- whichever is first loan maturity,which-
ceeds, project turity,whichever ever is first
income or at is first
loan maturity,
whichever is
f i rst.
Collateral If applicable, 1 st 1 st lien deed of 1 st lien deed of 1 st lien deed of 1 st lien or 2nd lien
lien deed of trust trust on property. trust on property trust on property. deed of trust on
or any other A covenant may A covenant may be property. A cove-
form of collateral be recorded to recorded to certify nant may be ye-
as relevant to certify property as property as work- corded to certify
loan use workforce hous- force housing. property as work-
ing. force housing.
• CITY OF FORT WORTH ATTACHiMENT
HOUSING DEPARTMENT
MANAGEMENT AND BUDGET DIVISION
DETAIL STATEMENT OF COSTS
CONTRACT N0. DATE ,
AGENCY
TO
PROGRAM REPORTPERIOD
PROGRAM MONTHLY CUMULATIVE
COST CATEGORY ACCOUNT BUDGET EXPENDITURES TO DATE BALANCE
PERSONAL SERVICES
Salaries 516010
FICA 518010.
M
ance. 518050
urance 518060
t-Federal 518090
entTax-State 518090
orn 519040
t 518070
S .lies 521010
Po e 521020
Teachiri Aids 522030
1 ooL
lies - - 522030
Othratin Su lies 523300
COCTUAL SERVICES.
Tele hone 535040
Electric 535.020
Gas(Utilir 535010
Water/Waste Disposal 535030
Rent(Building) 537010
Custodial Services
539220
Office E ui entRental 537030
NLiaZiilhi
533030
53600
nd 538210
_ surance 534020
ccountin 538060 .
Private Auto Allowance-Local 532130
Advertising 533010
Conferences&Seminars 5311.80
Contractual Services 539120.
Indirect Cost 517010
CAPITAL OUTLAW
Furniture,Fixtures 541330
Office Equipment 541370
Property Insurance
TOTAL
Sub-Contractors Certification_ I certify that the costs incurred ate taken from the books of accounts and that such costs are valid
and consistent with the terms of the agreement
NAALE and TITLE OF AUTHORIZED OFFICER SIGNATURE and DATE
CITY OF FORTWORTH ATTACHMENT A
HOUSING DEPARTMENT
MANAGE MMT AND BUDGET DIVISION
EXPENDITURES WORKSHEET
CONTRACT NO. DATE
AGENCY
TO
PROGRAM REPORT PERIOD
CHECK
NO. DATE # PAYEE DESCRIPTION ACCOUNT NO. AMOUNT
1 -
2
3
4
5
6
7
g
10
11
12
13
14
15
16
17
18
19
20
21 -
22
23
24
25
TOTAL
Sub-Contractors Certification: I certify that the costs iacurred are taken from the books of accounts and that such costs are vaiid
and consistent with the terms of the agreement
NAME and TITLE OF AUTHORIZED OFFICER SIGNATURE and DATE
ATTACHMEMT 4*'i G
r .
y
MONTHLY NARRATIVE REPORT
MONTH REPORTING
FROM: TO:
I . ACCOMPLISHMENTS
II . ADDITIONAL COMMENTS RE(2�;.RDING ACCOMPLISHMENTS THIS MONTH:
III . • PROBLEMS ENCOUNTERED AND SOLUTIONS PROPOSED :
IV. ANTICIPATED ACTIVITIES DURING NEXT -MONTH:
f
CITY OF FORT WORTH ATTACHMENT, }
HOUSING DEPARTMENT
SUBGRANTEE'S REQUEST FOR FUNDS
Agency
Program Name:
Contract Number: Report Period:
Date of Request:
.,
CASH BALANCE ANALYSIS FOR
1. Beginning Cash Balance $ $
2. Amount Received:
Program Income $ $
City of Fort Worth $ $
Interest Earned $ $
5. Total Funds Available(1 +2) $ $
4. Less Expenditure(detail statement cost) $ $
5. ENDING CASH BALANCE (3-4) $ $
6. Estimated Expenditures $
7. Funds Needed (6=5) $
S. Less Estimated Program Income $
9. Unpaid Request for Payment Previously Submitted $
10.Amount of This Request(7-8 &9) $
I. %MARS-Purchasing Request
A. MARS INPUT: Vendor/PO Number/Requisition Number
B. Fund/Account/Center
C. Total Amount of this Request
1. Verification
A. Model Blocks Planner:
(N—) -
B, Contract Manager:
(Namc
C. Accounting:
(Nares)
2. Authorization
A. Agency:
(t.amc
B. Mgmt &Budget
Administrator
Housing Director
W OVER 58,500.00 (N—)
City of Fort Worth, Texas
"Agar and Council Communication
DATE REFERENCE NUMBER LOG NAME PAGE
9/9/03 G-14086 05HDF 1 of 3
SUBJECT REALLOCATION OF HOME AND COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
AND RENTAL REHABILITATION PROGRAM INCOME FOR THE FORT WORTH
HOUSING DEVELOPMENT FUND AND THE FEDERAL NATIONAL MORTGAGE
ASSOCIATION LINE OF CREDIT
RECOMMENDATION:
It is recommended that the City Council:
1. Reallocate $1,402,218 in HOME funds to the Fort Worth Housing Finance Corporation (FWHFC) for
the Fort Worth Housing Development Fund (FWHDF); and
2. Reallocate $300,000 in Community Development Block Grant (CDBG) Program Income and
$200,000 in Rental Rehabilitation Program Income to provide City guarantee for a Federal National
Mortgage Association (Fannie Mae) line of credit (LOC) of $2,000,000; and
3. Authorize the City Manager to execute a financial service agreement with the FWHFC in the amount
not to exceed $1,402,218 for the FWHDF; and
4. Authorize the City Manager to amend such agreement, if necessary, to achieve program goals,
provided that the amendment is within the scope of the FWHDF and in compliance with applicable
laws and regulations.
DISCUSSION:
On December 10, 2002, the Housing Department presented to the Economic and Community
Development Committee (ECDC) of the City Council the FWHDF concept. The FWHDF is aimed at
promoting the City Council's strategic goal of revitalizing the Central City. It will provide loans to non-
profit and for-profit housing sponsors for the preservation and development of housing, particularly in
the Central City and target areas, such as urban villages, Neighborhood Empowerment Zones, Model
Blocks, Enterprise Zones, and other special target areas. The FWHDF will consist of the City's federal
HOME funds and loan proceeds from a LOC with Fannie Mae. The ECDC endorsed the concept and
directed the Housing Department to continue negotiating with Fannie Mae for the LOC and begin
developing a policy statement and program guidelines.
On July 15, 2003, the Housing and Workforce Development Committee (HWDC) of the City Council
endorsed the creation of the FWHDF, and recommended that the FWHFC adopt the FWHDF Policy
Statement and Program Guidelines and Procedures. It also recommended that the City Council
reallocate HOME funds and provide a Fannie Mae required, City guarantee of$500,000 to the FWHFC
for the creation of the loan fund.
On August 26, 2003, the FWHFC approved a resolution to create the FWHDF, adopt the FWHDF
Policy Statement and Program Guidelines and Procedures, and provide collateral of $500,000 from its
endowment fund.
City of Fort Worth, Texas
4vagor And council communication
DATE REFERENCE NUMBER I LOG NAME PAGE
9/9/03 G-14086 05HDF 2 of 3
SUBJECT REALLOCATION OF HOME AND COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
AND RENTAL REHAB ILITA-I-ION PROGRAM INCOME FOR THE FORT WORTH
HOUSING DEVELOPMENT FUND AND THE FEDERAL NATIONAL MORTGAGE
ASSOCIATION LINE OF CREDIT
The following summarizes the major features of the FWHDF:
Funding Structure
The proposed FWHDF will be funded out of a Fannie Mae LOC and federal funds, as follows:
Fannie Mae LOC not to exceed $5,000,000
HOME Funds $1 ,402,218
Total $6,402,218
The FWHDF will provide greater flexibility than federal funds alone in funding mixed-income
developments in the Central City and target areas. The initial agreement with Fannie Mae will be for
$2,000,000. Fannie Mae has agreed to increase the credit line contingent on the program's initial success.
Terms of the LOC
The LOC is structured as a non-revolving loan with a three-year term. Fannie Mae requires the
FWHFC to provide collateral equal to 25 percent, or $500,000, of the initial LOC amount of $2,000,000.
On August 26, 2003, the FWHFC approved the use of $500,000 of its endowment fund to meet this
requirement. In addition, Fannie Mae requires the City to provide a guarantee of $500,000. Staff
recommends that this guarantee to be provided using CDBG Program Income and Rental
Rehabilitation Program Income. The Finance Department and the City's financial advisor (First
Southwest Company) have reviewed the term sheet and concluded that there will be no significant
impact on the City's General Fund budget or financial rating.
Eligible Activities
The FWHDF will be used to fund the following categories of activities:
1. Predevelopment: activities to promote housing or mixed-use development projects, including but not
limited to appraisal, survey, feasibility/market study, legal, architectural and engineering service; and
2. Single Family Lot Development: land acquisition and site development for infill single family homes; and
3. Land Development: land acquisition and site development for single family subdivisions; and
4. Single Family Construction/Rehabilitation: activities related to construction, rehabilitation (including
adaptive reuse) of single family homes; and
5. Multifamily/Mixed-Use Construction: activities related to acquisition, site development, construction
or rehabilitation (including adaptive reuse) of multifamily or mixed-use developments.
City of Fort Worth, Texas
"elgor And Council Communication
DATE REFERENCE NUMBERLOG NAME PAGE
9/9/03 G-14086 05HDF 3 of 3
SUBJECT REALLOCATION OF HOME AND COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
AND RENTAL REHABILITATION PROGRAM INCOME FOR THE FORT WORTH
HOUSING DEVELOPMENT FUND AND THE FEDERAL NATIONAL MORTGAGE
ASSOCIATION LINE OF CREDIT
Oversight and Administration
The FWHDF will be managed by the FWHFC with staff support from the Housing Department. The
HWDC will serve as the advisory board and make recommendations to the FWHFC relating to fund
allocation, management, program guidelines, and approval of loan applications.
Loan Application, Approval and Servicing
The FWHDF will be allocated according to the following process:
1. The Housing Department issues a notice of funding availability (NOFA); and
2. The Housing Department reviews applications and recommends qualified projects and proposed
amounts and terms of the award to the HWDC; and
3. The HWDC approves, amends or rejects the Housing Department's recommendations and makes
recommendations to the FWHFC Board; and
4. The FWHFC Board approves, amends or rejects the HWDC's recommendations; and
5. The FWHFC executes a loan agreement or contract with the borrower; and
6. The Housing Department services the loan in-house or through subcontractors.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that funds are available in the current operating budget, as appropriated,
of the Grants Fund.
RR:r
Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: (to)
GR76 539120 005206698300 $381,657.00
Reid Rector 6140 GR76 539120 005206772210 $500,000.00
Originating Department Head: GR76 539120 005206846070 $520,561.00
GR92 539120 005206078000 $200,000.00
GR76 539120 005206065000 $300,000.00
Jerome Walker 7537 (from) APPROVED 09/09/03
GR76 539120 005206698060 $ 46,657.00
Additional Information Contact: GR76 539120 005206698270 $335,000.00
GR76 539120 005206772060 $500,000.00
GR76 539120 005206846060 $520,561.00
GR92 441112 005206078000 $200,000.00
Jerome Walker 7537 GR76 441022 005206065000 $300,000.00