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HomeMy WebLinkAboutRES 97-123 RESOLUTION NO. 9Y-1 0 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to reallocate 1995 HOME Grant Program funds to the Southeast Texas Community Development Corporation (SETCDC) and Statewide Consolidated Community Development Corporation, Inc. (SCCDC) by contracts substantially in the forms attached hereto as Exhibits "A" and "B" to provide assistance for the purchase of newly constructed homes and renovation of homes in the Charlton Pollard neighborhood. PASSED BY THE CITY COUNCIL of the City of Beaumont this the-) 'day of ) , 1997. VV ii - Mayor- I CONTRACT THE STATE OF TEXAS § COUNTY OF JEFFERSON § WHEREAS, the City of Beaumont has received a HOME grant from the United States Department of Housing and Urban Development (HOME Program No. M-95- MC-48-0201); WHEREAS, pursuant to the authority of Resolution Number , passed by the Beaumont City Council on May , 1997, the Southeast Texas Community Development Corporation, Inc. (SETCDC) an authorized Community Housing Development Organization (CHDO) will enter into a contract with the City for HOME funds totaling ONE HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS ($150,000); WHEREAS, the HOME allocation of ONE HUNDRED FIFTY THOUSAND AND NO/100 ($150,000) will be used for the development of five (5) new homes in the Charlton-Pollard Neighborhood. New construction will provide decent, safe and s sanitary housing for low and moderate income families. Funds may be used for home buyer's assistance to include, but not limited to down payment, mortgage principal .buy down, closing costs, pre-paids or any eligible expenses; WHEREAS, an eligible development cost of $2,000 per completed unit will be provided to SETCDC and dispersed at the closing of the completed unit; WHEREAS, the Southeast Texas Community Development Corporation, Inc. provides various services to low-income and moderate-income families of the City of 1 EXHIBIT "A" Beaumont, Jefferson County, Texas that enable such families to obtain a suitable place to reside; WHEREAS, the SETCDC will secure the financial match requirements for the M-95-MC-48-0201 HOME grant. The financial funding match requirement totals $18,750.00; NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS: That for and in consideration of the mutual covenant, promises, and agreements contained therein, the City of Beaumont, hereinafter referred to as "City", acting by and through Ray A. Riley, its duly authorized City Manager, and the Southeast Texas Community Development Corporation, Inc., hereinafter referred to as "Grantee", acting by and through Albert J. Price, Sr., its duly authorized President, do hereby covenant and agree as follows: 1 . Grantee, located at 1190 Grand Street, shall use the Federal 1995 HOME grant funds, herein provided, to construct single-family housing units for lease or sale to low to moderate income families. Grantee covenants and agrees to expend federal grant funds in accordance with 24 CFR Part 92 (as now in effect and as may be amended from time to time), which is incorporated by reference and constitutes part of the agreement. It is expressly understood and agreed by Grantee that this contract and the procurement authorized and provided for hereunder have as their purpose or goal to provide decent, safe and sanitary housing units to low and moderate income 2 persons. Grantee agrees to do all things necessary under this contract to complete the program set out in "Exhibit A" attached hereto. 2. It is understood and agreed that in no event shall the total distribution of federal grant funds made to or in behalf of the Grantee pursuant to this agreement exceed the total sum of $150,000. 3. The City agrees to provide Grantee with ONE HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS ($150,000) of 1995 HOME Grant funds to be available through the City's draw process on or after the effective date of this contract. Grantee agrees and understands that this contract shall terminate on December 31, 1997. Payment shall be made by the U. S. Treasury, who will disburse 1995 HOME funds (wire transfer) through Cash Management information System (CM/1) directly to the City, who will make payments upon receipt of invoices or payment vouchers from Grantee certifying that all requirements have been met. Grantee understands and agrees that project activities (construction) must be committed (an acceptable Project Set-up Report is entered into the CM/1) by October 31, 1997. Failure to comply with the aforementioned commitment will jeopardize funding. The Grantee understands that all grant monies awarded may be terminated for cause or convenience. It is expressly understood and agreed by and between the City and Grantee that funds will be used for (a) cost related to the development and construction of five new houses in the Charlton-Pollard Neighborhood and (b) for 3 home buyer's assistance to include but not limited to mortgage principal buy down, closing costs, pre-paids or any other eligible expenses. Grantee further agrees that any grant funds remaining after this agreement expires will revert to the City of Beaumont. 4. Grantee understands and agrees that should Grantee become defunct or insolvent, any and all grant funds on hand and any accounts receivable attributable to the use of grant funds shall transfer to the City of Beaumont. Grantee further understands and agrees to and shall transfer to the City of Beaumont any program income, real properties, equipment, supplies and any assets acquired as a result of grant funds if Grantee becomes defunct or insolvent. 5. It is expressly understood and agreed by and between the City and Grantee that this agreement is wholly conditioned upon the actual availability of federal grant HOME funds under the United States Department of Housing and Urban Development (HOME Program No. M-95-MC-48-0201) and that all monies distributed to or in behalf of Grantee hereunder shall be exclusively from federal monies received under said HOME Program, and not from any other monies of the City. 6. Grantee agrees to keep accurate records to document its adherence to applicable federal regulations and all "other federal requirements", along with documentation and records of all expenditures of said HOME Program funds. Grantee 4 further understands and agrees to comply with the applicable requirements and standards of OMB Circular A-110 (Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments), said provisions being incorporated herein by reference. The Grantee also understands and agrees to adhere to the City's procurement process. The City shall reserve the right to investigate, examine and audit, at any time, any and all such records relating to the operations or expenditures of Grantee under this Agreement. The SETCDC will provide an audit by an independent auditor by June 30, 1998. 7. Grantee covenants and agrees to fully cooperate with the City in monitoring the effectiveness of the expenditure of grant funds and the City shall have access at all reasonable times to the offices, premises and records of Grantee in regard to the administration of this Contract. 8. Grantee shall operate hereunder as an independent contractor and not as an officer, agent, servant or employee of the City. Grantee shall have exclusive control of the program and all persons involved in same subject only to the terms of this agreement and shall be solely responsible for the acts and omissions of its officers, members, agents, servants, employees, subcontractors, program participants, licensees and invitees. It is expressly understood and agreed that, other than those people who receive wages on a regular basis from Grantor, that no officer, member, agent, servant, employee, subcontractor, licensee, invitee of Grantee nor any program 5 participant hereunder is in the paid service of the City. It is also expressly understood and agreed that Grantor will provide technical assistance to Grantee in the furtherance of its program. 9. Grantee hereby covenants and agrees, in consideration for the funds herein provided to provide decent, safe and sanitary housing to low and moderate income families of the City of Beaumont, Jefferson County, Texas by constructing new homes in the. Charlton-Pollard Neighborhood for sale. It is understood that Grantee adheres to HOME affordability requirements. 10. No officer, employee or member of Grantee or Grantee's subcontractors shall have a financial interest, direct or indirect, in this contract or the monies transferred hereunder, or be financially interested, directly or indirectly, in any contract relating to the operations conducted by it, nor in any contract for furnishing services or supplies to Grantee, with the exception of the service fee on a per unit basis from grant for the administration of this contract. Any willful violation of this paragraph with the knowledge, expressed or implied, of Grantee or its subcontractors, shall render this contract voidable by the City of Beaumont. 11 . No grants shall be made by Grantee to its directors or officers, either directly or indirectly, through family members, business partners or employees. Grantee agrees that no HOME funds shall be used, either directly or indirectly, for religious 6 purposes. Any willful or violation of this paragraph with the knowledge, expressed or implied, of Grantee shall render this contract voidable by the City of Beaumont. 12. Grantee covenants and agrees that its officers, members, agents, employees, program participants and subcontractors shall abide by and comply with all Federal, State and local laws, including all ordinances, rules and regulations of the City of Beaumont, as amended. Grantee further covenants and agrees that it will fully comply with the terms and conditions of the HOME Program under which these funds are granted. 13. 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 the other provisions which can be given effect with the invalid provision. 14. The failure of the City to insist upon the performance of any term or provision of this agreement or to exercise any right herein conferred shall not be construed as a waiver or relinquishment to any extent of the City's right to assert or rely upon any such term or right on any future occasion. 7 15. This written instrument and attachments constitute the entire agreement by the parties hereto concerning the matter performed hereunder and any prior or contemporaneous, oral or written agreement which purports to vary from the terms hereof shall be void. 16. Grantee covenants and agrees to hold harmless the 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, or whatever kind of 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 program described herein, whether or not caused, in whole or in part, by alleged negligence of officers, agents, servants, employees, contractors, or sub- contractors of the City. 8 IN WITNESS WHEREOF, the parties hereto have executed this Agreement in Beaumont, Jefferson County, Texas, this day of A.D., 19 THE CITY OF BEAUMONT ATTEST: By: Ray A. Riley Patrice Fogarty City Manager City Clerk THE SOUTHEAST TEXAS COMMUNITY DEVELOPMENT CORPORATION, INC. ATTEST: By: Albert J. Price, Sr. Antoinette Hardy President Director 9 "EXHIBIT A" PROGRAM BUDGET 1. Eligible project cost to construct five $150,000 (5) new homes TOTAL PROGRAM BUDGET $150,000 PROJECT SCHEDULE 1. Construction of 5 homes will begin on or before June 30, 1997 2. Homes complete on or before October 31, 1997 3. Homes closed and occupied on or before December 31, 1997 CONTRACT THE STATE OF TEXAS § COUNTY OF JEFFERSON § WHEREAS, the City of Beaumont has received a HOME grant from the United States Department of Housing and Urban Development (HOME Program No. M-95- MC-48-0201); WHEREAS, pursuant to the authority of Resolution Number , passed by the Beaumont City Council on May , 1997, the Statewide Consolidated Community Development Corporation, Inc. (SCCDC), an authorized Community Housing Development Organization (CHDO), will enter into a contract with the City for HOME funds totaling TWO HUNDRED THOUSAND AND NO/100 DOLLARS ($200,000); WHEREAS, the HOME allocation of TWO HUNDRED THOUSAND AND NO/100 DOLLARS ($200,000) will be used to acquire and rehabilitate 6 to 10 sub-standard housing units located in strategic areas (census tracts 1 .03, 6, 7, 8, 9, 10,11, 12, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25 and 26) which will provide decent, safe and sanitary housing for low and moderate income families. The income from the rents receivables will be used to generate long term program income; thus creating a solid financial foundation for the CHDO. WHEREAS, the Statewide Consolidated Community Development Corporation, Inc. provides various services to low-income and moderate-income families of the City EXHIBIT "B" of Beaumont, Jefferson County, Texas that-enable such families to obtain a suitable place to reside; WHEREAS, the City of Beaumont and the Statewide Consolidated Community Development Corporation, Inc. desire to enter into a Contract and Agreement whereby the City of Beaumont will furnish said federal HOME grant funds to the Statewide Consolidated Community Development Corporation, Inc. for the purposes of increasing the number of affordable housing units through acquisition and rehabilitation, revitalizing communities through the elimination of blight and creating tax revenue; WHEREAS, the SCCDC will secure the financial match requirements for the M- 95-MC-48-0201 HOME grant. The financial funding match requirements totals $25,000.00; NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS: That for and in consideration of the mutual covenant, promises, and agreements contained therein, the City of Beaumont, hereinafter referred to as "City", acting by and through Ray A. Riley, its duly authorized City Manager, and the Statewide Consolidated Community Development Corporation, Inc. hereinafter referred to as "Grantee", acting by and through Robert Jones, its duly authorized President, do hereby covenant and agree as follows: 1 . Grantee, located at 1395 College, shall use the Federal 1995 HOME Grant Funds, herein provided, to acquire and rehabilitate single or multi-family housing units 2 for rent or sale to low to moderate income individuals. Grantee covenants and agrees to expend federal grant funds in accordance with 24 CFR Part 92 (as now in effect and as may be amended from time to time), which is incorporated by reference and constitutes part of the agreement. It is expressly understood and agreed by Grantee that this Contract and the procurement authorized and provided for hereunder have as their purpose or goal to provide decent, safe and sanitary housing units to low and moderate income persons with preference given to Section 8 tenants. Grantee agrees to do all things necessary under this Contract to complete the program set out in "Exhibit A" attached hereto. 2. It is understood and agreed that in no event shall the total distribution of federal grant funds made to or in behalf of the Grantee pursuant to this Agreement exceed the total sum of TWO HUNDRED THOUSAND AND NO/100 DOLLARS ($200,000). 3. The City agrees to provide Grantee with TWO HUNDRED THOUSAND AND NO/100 DOLLARS ($200,000) of 1995 HOME Grant funds to be available through the City's draw process on or after the effective date of this Contract. Grantee agrees and understands that this contract shall terminate on December 31, 1997. Payment shall be made by the U. S. Treasury, who will disburse 1995 HOME funds (wire transfer) through Cash Management Information System (CM/1) directly to the City, who will make payments upon receipt of invoices or payment vouchers from Grantee 3 certifying that all requirements have been met and a closing date has been finalized. Grantee understands and agrees that project activities (acquisition, rehabilitation) must be committed (an acceptable Project Set-up Report is entered into the CM/I) by October 31, 1997. Failure to comply with the aforementioned commitment will jeopardize funding. The Grantee understands that all grant monies awarded may be terminated for cause and convenience. It is expressly understood and agreed by and between the City and Grantee that any and all program income will be used by Grantee to build capacity, i.e., administrative costs, operational expenses, and/or any eligible activities. Grantee further agrees that any grant funds remaining after this Agreement expires will revert to the City of Beaumont. 4. Grantee understands and agrees that should Grantee (Statewide Consolidated Community Development Corporation, Inc.) becomes defunct or insolvent, any and all grant funds on hand and any accounts receivable attributable to the use of grant funds shall transfer to the City of Beaumont. Grantee further understands and agrees to and shall transfer to the City of Beaumont any program income, real properties, equipment, supplies and any assets acquired as a result of grant funds. 5. It is expressly understood and agreed by and between the City and Grantee that this Agreement is wholly conditioned upon the actual availability of federal grant funds under the United States Department of Housing and Urban Development (HOME 4 Program No. M-95-MC48-0201) and that all monies distributed to or in behalf of Grantee hereunder shall be exclusively from federal monies received under said HOME Program, and not from any other monies of the City. 6. Grantee agrees to keep accurate records to document its adherence to applicable federal regulations and all "other federal requirements", along with documentation and records of all expenditures of said HOME Program funds. Grantee further understands and agrees to comply with the applicable requirements and standards of OMB Circular A-110 (Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments), said provisions being incorporated herein by reference. The Grantee also understands and agrees to adhere to the City's procurement process. The City shall reserve the right to investigate, examine and audit, at any time, any and all such records relating to the operations or expenditures of Grantee under this Agreement. The SCCDC will provide an audit by an independent auditor by June 30, 1998. 7. Grantee covenants and agrees to fully cooperate with the City in monitoring the effectiveness of the expenditure of grant funds and the City shall have access at all reasonable times to the offices, premises and records of Grantee in regard to the administration of this Contract. 5 8. Grantee shall operate hereunder as an independent contractor and not as an officer, agent, servant or employee of the City. Grantee shall have exclusive control of the program and all persons involved in same subject only to the terms of this Agreement and shall be solely responsible for the acts and omissions of its officers, members, agents, servants, employees, subcontractors, program participants, licensees and invitees. It is expressly understood and agreed that, other than those people who receive wages on a regular basis from Grantor, that no officer, member, agent, servant, employee, subcontractor, licensee, invitee of Grantee nor any program participant hereunder is in the paid service of the City. It is also expressly understood and agreed that Grantor will provide technical assistance to Grantee in the furtherance of its program. 9. Grantee hereby covenants and agrees, in consideration for the funds herein provided to provide decent, safe and sanitary housing to low and moderate income families of the City of Beaumont, Jefferson County, Texas by acquiring and rehabilitating sub-standard housing. It is understood that Grantee adheres to HOME affordability requirements. 10. No officer, employee or member of Grantee or Grantee's subcontractors shall have a financial interest, direct or indirect, in this Contract or the monies transferred hereunder, or be financially interested, direct or indirect, in any Contract relating to 6 the operations conducted by it, nor in any Contract for furnishing services or supplies to Grantee. Any willful violation of this paragraph with the knowledge, expressed or implied, of Grantee or its subcontractors, shall render this Contract voidable by the City of Beaumont. 11 . No grants shall be made by Grantee to its directors or officers, either directly or indirectly, through family members, business partners or employees. Grantee agrees that no HOME funds shall be used, either directly or indirectly, for religious purposes. Any willful violation of this paragraph with the knowledge, expressed or implied, of Grantee shall render this Contract voidable by the City of Beaumont. 12. Grantee covenants and agrees that its officers, members, agents, employees, program participants and subcontractors shall abide by and comply with all Federal, State and local laws, including all ordinances, rules and regulations of the City of Beaumont, as amended. Grantee further covenants and agrees that it will fully comply with the terms and conditions of the HOME Program under which these funds are granted. 13. 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 7 the subject matter thereof, such invalidity shall not affect the other provisions which can be given effect with the invalid provision. 14. The failure of the City to insist upon the performance of any term or provision of this Agreement or to exercise any right herein conferred shall not be construed as a waiver or relinquishment to any extent of the City's right to assert or rely upon any such term or right on any future occasion. 15. This written instrument and attachments constitute the entire Agreement by the parties hereto concerning the matter performed hereunder and any prior or contemporaneous, oral or written Agreement which purports to vary from the terms hereof shall be void. 16. Grantee covenants and agrees to hold harmless the 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, or whatever kind of 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 program described herein, whether or not caused, in whole or in part, by alleged negligence of officers, agents, servants, employees, contractors, or sub- contractors of the City. 8 IN WITNESS WHEREOF, the parties hereto have executed this Agreement in Beaumont, Jefferson County, Texas, this day of A.D., 19 THE CITY OF BEAUMONT ATTEST: By: Ray A. Riley Patrice Fogarty City Manager City Clerk THE STATEWIDE CONSOLIDATED COMMUNITY DEVELOPMENT CORPORATION, INC. ATTEST: By: Robert Jones Leon Jake Campbell President Secretary-Treasurer 9 "EXHIBIT A" PROGRAM BUDGET I. Property Acquisition and Renovation $200,000 TOTAL PROGRAM BUDGET $200,000 PROJECT SCHEDULE 1 . Acquire and rehabilitate 2 houses by July 31, 1997 2. Acquire and rehabilitate 2 houses by September 30, 1997 3. Acquire and rehabilitate 2 houses by November 30, 1997