HomeMy WebLinkAboutContract 29963 CITY SECRETARY OqqL
CONTRACT NO.
AGREEMENT WITH FORT WORTH HOUSING AUTHORITY CONCERNING
THE HOUSING CHOICE VOUCHER HOMEOWNERSHIP PROGRAM
This Agreement ("Agreement") concerning the Housing Choice Voucher
Homeownership Program is between the City of Fort Worth ("Fort Worth"), a home
rule municipal corporation organized under the laws of the State of Texas, acting by and
through its duly authorized Assistant City Manager, and the Housing Authority of the
City of Fort Worth, d/b/a/ the Fort Worth Housing Authority ("FWHA"), a Texas
municipal housing authority, acting by and through its duly authorized Executive
Director. (Sometimes Fort Worth and FWHA are referred to individually as a "Party" and
collectively as the "Parties").
RECITALS
Fort Worth and FWHA agree that the following statements are true and correct
and constitute the basis on which they have entered into this Agreement.
WHEREAS, Section 555 of the Quality Housing and Work Responsibility Act
of 1998 ("QHWRA")which amended the United States Housing Act of 1937, 42 U.S.C.
1437f(y) permits the FWHA to create a homeownership option for Section 8 Housing
Choice Voucher holders;
WHEREAS, FWHA has created a Housing Choice Voucher Homeownership
Program ("HCVHP") to convert certain eligible Section 8 Housing Choice Voucher
recipients into homeowners;
WHEREAS, the HCVHP requires applicant families to attend and satisfactorily
complete a pre-assistance homeownership and counseling program;
WHEREAS, Fort Worth offers pre-purchase and post-closing housing counseling
and homebuyers assistance programs which provide the type of services needed to fulfill
the HCVHP's requirements for pre-assistance counseling, including but not limited to
outreach and marketing of the HCVHP to eligible FWHA families, client assessment,
credit counseling, financial literacy counseling, homeownership training, lender training,
real estate agent training and financial assistance for eligible first time homebuyers; and
WHEREAS, an Applicant is defined as a person who is currently receiving
rental assistance through the FWHA's Section 8 Housing Choice Voucher rental
assistance program and has expressed an interest in participating in the HCVHP; and
WHEREAS, an Eligible Family. is defined as an Applicant who has met the
eligibility requirements for the HCVHP, completed all required counseling services and
received approval to pursue homeownership with the rental assistance voucher; and
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HOUSING CHOICE VOUCHER HOMEOWNERSHIP L 9�'�` �
PROGRAM AGREEMENT 4/30/2004 J O xa8
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WHEREAS, increasing homeownership and providing affordable housing for all
income groups are among Fort Worth's housing policy goals and are affirmed in Fort
Worth's Comprehensive Plan.
NOW THEREFORE, the Parties agree as follows:
1. PURPOSE AND SCOPE.
The purpose of this Agreement is to set forth the terms and conditions under
which Fort Worth will provide FWHA with housing counseling and homebuyer
assistance services to Applicants and Eligible Families in the HCVHP.
2. TERM.
This Agreement shall commence on the execution of this Agreement ("Effective
Date") 6�- //-6 Z- and will expire
unless terminated earlier in accordance with this Agreement. The Parties may renew this
Agreement annually for additional twelve (12) month terms by mutual written agreement.
The Parties shall execute such renewals no later than thirty (30) days prior to the
expiration of the current term. In addition to termination for default pursuant to Section 5,
either Party may terminate this Agreement without cause upon sixty (60) days' written
notice to the other Party, and neither Party shall have any further responsibility or
liability hereunder except for services previously rendered and payment for the same.
3. DUTIES OF THE PARTIES AND SERVICES PROVIDED.
3.1 FWHA will provide Fort Worth with:
a. A copy of the relevant FWHA policies and procedures currently in place
regarding the HCVHP and all future updates of such policies and procedures;
b. A copy of the current U.S. Department of Housing and Urban Development
("HUD") regulations pertaining to the HCVHP, as amended from time to
time, including but not limited to those regulations found at 24 C.F.R 982.1 et
seq.;
c. A list of Applicants from current participants in the Section 8 Housing
Choice Voucher rental assistance program who meet HUD regulations and
FWHA Administrative Plan guidelines for participation in the HCVHP;
d. A list of Applicants who are current Family Self Sufficiency ("FSS")
participants and the current balance of the participants' escrow accounts; and,
e. A list of vacant houses owned by FWHA that are available for sale to
Eligible Families.
HOUSING CHOICE VOUCHER HOMEOWNERSHIP
PROGRAM AGREEMENT 4/30/2004 l' I rge"2
3.2. Fort Worth will:
a. Administer all functions of the HCVHP with respect to determining
eligibility, providing counseling and training, and assisting Eligible Families
through closing and post-closing counseling in compliance with FWHA's
Section 8 Administrative Plan and HUD regulations as set forth in 24 CFR
Part 982.1 et seq.;
b. Provide FWHA a copy of Fort Worth's existing guidelines for the pre-
assistance homeownership and housing counseling program, as amended from
time to time;
c. Develop and implement a marketing and training plan for lenders and real
estate agents including outreach and distribution of printed materials to
those lenders and real estate agents who will participate in the HCVHP;
d. Develop and distribute written materials about the HCVHP to Applicants
and Eligible Families;
e. Provide each Applicant with an individual, initial counseling session to
describe the counseling process and the schedule of all necessary
appointments, and to review the intake form completed by the Applicant
prior to the initial counseling session;
f. Provide an assessment of each Applicant's qualifications to continue in the
HCVHP which will include an initial assessment of Applicant's credit
worthiness and employment and income history;
g. Provide each Applicant with information on Applicant's eligibility and a
preliminary action plan to enable the Applicant to become a homeowner under
the HCVHP;
h. Review all documents furnished by the Applicant which are necessary to
verify information provided on the intake form;
i. Coordinate with FWHA to resolve any discrepancies found in the initial
intake form;
j. Determine whether an Applicant is ready to apply for a mortgage, or
whether further counseling is needed;
k. Assist Eligible Families in the selection of a mortgage lender and provide
copies of the Eligible Family's intake form to the selected mortgage lender
and FWHA;
1. Provide Eligible Families with follow up session(s) on financial literacy;
m. Develop financial goals and an action plan for each Eligible Family;
n. Work with each Eligible Family and the family's mortgage lender to resolve
any credit issues;
o. Provide Homeownership Training Seminars to Applicants and Eligible
Families;
p. Assist Eligible Families in the selection of a real estate agent and sales
contract negotiations;
HOUSING CHOICE VOUCHER HOMEOWNERSHIP
PROGRAM AGREEMENT 4/30/2004 ;=` Page 3
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q. Provide FWHA and each Eligible Family's mortgage lender with a copy of
the sales contract entered into with a seller;
r. Complete a homeownership housing quality standard ("HQS") inspection
and counsel the Eligible Family on the HQS inspector's findings;
s. Assist in the selection of a licensed residential real estate inspector and
review the real estate inspector's findings with the Eligible Family;
t. Assist the Eligible Family in re-negotiating the sales contract with the seller,
if necessary;
u. Provide homeownership subsidy under Fort Worth's homeownership program
to eligible HCVHP participants;
v. Provide continued assistance to Eligible Families through closing;
w. Review the Eligible Family's closing documents for accuracy to ensure that
any homeownership down payment requirements have been met, and
appropriate financing and information have been utilized by the mortgage
lender;
x. Provide a complete copy of the file on each Eligible Family to FWHA;
y. Follow- up with each Eligible Family quarterly for a period of one year from
the closing; and
Z. Provide monthly activity reports to FWHA on Eligible Families
participating in the pre-assistance homeownership and housing counseling
program and those participating in post-closing counseling.
4. CONSIDERATION.
FWHA agrees to provide a grant up to, but not to exceed, $100,000.00 and Fort
Worth agrees to provide in-kind services valued up to, but not to exceed, $60,000.00 for
the costs of the operation of the pre-assistance and post-closing homeownership and
housing counseling program for the HCVHP as follows:
FWHA $100,000.00
Fort Worth (in kind services) 60,000.00
Total $160,000.00
FWHA shall pay its portion of the costs to Fort Worth as follows: $25,000.00
upon execution of this Agreement; $25,000.00 on September 30, 2004; $25,000.00 on
December 31, 2004 and $25,000.00 on March 31, 2005. Fort Worth will provide
FWHA with a quarterly accounting of the monies used by Fort Worth and the in- kind
services provided by Fort Worth in the administration of the HCVHP. During any
renewals of this Agreement, FWHA shall provide Fort Worth with funds in accordance
with the terms of any renewal agreement.
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HOUSING CHOICE VOUCHER HOMEOWNERSHIP
PROGRAM AGREEMENT 4/30/2004 Page 4
5. DEFAULT.
If either FWHA or Fort Worth fails, for any reason, to perform any provision or
condition of this Agreement, this Agreement may be terminated if the default continues
for a period of thirty (30) days after the notifying Party notifies the defaulting Party in
writing of the default and its intention to declare this Agreement terminated for cause. If
the defaulting Party does not cure or correct such breach within the thirty (30) day.
period, the notifying Party shall have the right to declare this Agreement immediately
terminated, and neither Party shall have any further responsibility or liability hereunder
except for services previously rendered and payment for the same.
6. GENERAL PROVISIONS.
6.1 Request for Information. FWHA and Fort Worth agree to provide each
other any information on the Eligible Families within two (2) business
days of the request.
6.2. No Waiver. The failure of either Party to insist upon the performance of
any provision or condition of this Agreement or to exercise any right
granted herein shall not constitute a waiver of that Party's right to insist
upon appropriate performance or to assert any such right on any future
occasion.
6.3. Severability. If any provision of this Agreement is held by a court of
competent jurisdiction to be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any
way be affected or impaired.
6.4. Force Maieure. The Parties shall exercise their best efforts to meet their
respective duties and obligations hereunder, but shall not be held liable
for any delay in or omission of performance due to force majeure or other
causes beyond their reasonable control, including, but not limited to,
compliance with any state or federal law or regulation, acts of God, fires,
strikes, lockouts, national disasters, wars, riots, material or labor
restrictions, transportation problems or existing contractual obligations
directly related to the subject matter of this Agreement.
6.5 Venue and Jurisdiction. This Agreement shall be construed in
accordance with the laws of the State of Texas. Venue for any action
brought on the basis of this Agreement shall lie exclusively in state courts
located in Tarrant County, Texas. In any such action, the prevailing party
HOUSING CHOICE VOUCHER HOMEOWNERSHIP
PROGRAM AGREEMENT 4/30/2004 Page 5 1
shall recover from the other all reasonable attorneys' fees, court costs and
other reasonable expenses incurred as a result of the action.
6.6 Entirety of Agreement. This Agreement, including all Exhibits attached
hereto and any documents incorporated herein by reference, contains the
entire understanding and agreement between Fort Worth and FWHA as to
the work and services to be performed. Any prior or contemporaneous oral
or written agreement is hereby declared null and void to the extent in
conflict with the provisions of this Agreement.
6.7 Compliance with Laws, Ordinances, Rules and Rep-ulations. This
Agreement is subject to all applicable federal, state and local laws,
ordinances, rules and regulations, including but not limited to all
provisions of Fort Worth's charter.
6.8 Independent Contractors. Fort Worth shall operate hereunder as an
independent contractor and not as an officer, agent, servant or employee of
FWHA. FWHA shall operate hereunder as an independent contractor and
not as an officer, agent, servant, or employee of Fort Worth. Fort Worth
shall have the exclusive control of, and the exclusive right to control the
work designated to be performed by Fort Worth under the terms of this
Agreement, and of all persons performing the same and shall be solely
responsible for the acts and omissions of its officers, members, agents and
employees. Neither Fort Worth nor FWHA shall be responsible under the
Doctrine of Respondeat Superior for the acts or omissions of its officers,
members, agents, employees or officers of the other. No partnership or
joint venture is intended or formed between Fort Worth and FWHA by
this Agreement.
6.9 Immunity and Third Parties. It is expressly agreed that, in the execution
and performance of this Agreement, neither Fort Worth nor FWHA waives,
nor shall be deemed to waive, any immunity or defense that would
otherwise be available to it against claims arising in the exercise of their
respective powers and functions. Nothing in this Agreement shall be
construed to benefit any third party other than an employee or officer of
Fort Worth or FWHA while in the performance of this Agreement. This
Agreement may not be construed to expand the liability of Fort Worth or
FWHA beyond the scope of Chapter 101 of the Texas Civil Practice and
Remedies Code, Vernon's Texas Codes Annotated, unless specifically
stated herein.
PF
HOUSING CHOICE VOUCHER HOMEOWNERSHIPPROGRAM AGREEMENT 4/30/2004
6.10 Amendment. No amendment, modification or alteration of this
Agreement shall be binding unless the same is in writing, dated
subsequent to the date hereof and executed by the Parties.
7. NOTICES.
All notices required by this Agreement shall be addressed to the Parties at the
following address, or at such other address as either Party designates in writing, by
certified mail, postage prepaid or hand delivery:
Fort Worth: Jerome C. Walker, Director
Fort Worth Housing Department
908.Monroe St.
Fort Worth, TX 76102
FWHA: Betty Bjork
Director of Assisted Housing
Fort Worth Housing Authority
1201 E. 13`h Street
Fort Worth, TX 76102
EXECUTED in multiple originals as of the last date indicated below:
CITY OF FORT WORTH: FORT WORTH HOUSING
r AUTHORITY:
/ i
By: /7"W fil"�r By: 13 a&�
Reid Rector Barbara Holston
Assistant City Manager Executive Director f' I
Date: ��/���� Date: 06-- �S— D `
ATTEST: ;. 'TTEST• '-7
i
By: L.,L.4) By:
SylvA Glover Name: yl
Acting City Secretary Title:
Contract Authorf/iz(\yyaVltioa
Date
HOUSING CHOICE VOUCHER HOMEOWNERSHIP -..�u
PROGRAM AGREEMENT 4/30/2004, ;"s r ► °P;�ge 7
APPROVED AS TO FORM AND LEGALITY:
By: 15-
Vicki S. Ganske
Senior Assistant City Attorney
M&C: L 7
Browz
seman, Liser,Proctor & Hart, L.L.P
By:
AFort Worth Housing
Authority
HOUSING CHOICE VOUCHER HOMEOWNERSHIP
PROGRAM AGREEMENT 4/30/2004 Page 8