HomeMy WebLinkAboutRES 10-095 RESOLUTION NO. 10-095
BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF BEAUMONT:
THAT the City Manager be and he is hereby authorized to execute a contract with Legacy
Community Development Corporation in the amount of$250,000 for the acquisition and
rehabilitation of properties for lease purchase to eligible low-to-moderate income families,
said contract to be funded from the 2008 and 2009 HOME Programs.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 13th day of April,
2010.
C ,lots
Mayor Becky Ames -
� i
HOME CHDO ALLOCATION FUNDING AGREEMENT
between the
CITY OF BEAUMONT
and the
Legacy Community Development Corporation
This Community Housing Development Allocation Funding Agreement (Agreement
hereinafter) is made and entered into by and between the CITY OF BEAUMONT, a
Home Rule Municipal Corporation incorporated under the laws of the State of Texas
(City hereinafter), and the Legacy Community Development Corporation, a Texas non-
profit corporation (CHDO hereinafter), located at 3505 Procter Street, Port Arthur,
Texas 77642.
WHEREAS, the City of Beaumont has received a HOME grant from the United States
Department of Housing and Urban Development(HOME Program No. M-08-MC-48-0201);
WHEREAS, the City has the objective of providing for the development of low-to-
moderate income housing for residents of the City through its Community Development
Division;
WHEREAS, the Legacy Community Development Corporation , through its express
purpose as set forth in its corporate bylaws, shares this common goal with the City as a
City of Beaumont approved Community Housing Development Organization (CHDO
hereinafter);
WHEREAS, pursuant to the authority of Resolution Number#10-095 , passed by the
Beaumont City Council on 4/�13/10 the Legacy Community Development Corporation will
enter into a contract with the City for 2008 HOME funds totaling Two Hundred Fifty
Thousand Dollars and no/100 ($250,000);
WHEREAS, the City is required to reserve not less than 15 percent of the HOME
allocation for any fiscal year for investment only in housing to be developed, sponsored, or
owned by certified CHDOs pursuant to applicable U S Department of Housing and Urban
Development(HUD)regulations including but not limited to 24 CFR 92.300(see attached),
and as approved in the City's 2009 Action Plan update of the 2005 Consolidated Plan
which set aside a portion of HOME Grant funds for CHDOs to develop low-to-moderate
income housing;
WHEREAS, The HOME allocation of Two Hundred Fifty Thousand Dollars and
no/100 ($250,000.00)will be used for the eligible project costs related to the acquisition of
at least two(2)existing scattered-site homes. Such housing will provide decent, safe and
sanitary housing for eligible families;
WHEREAS,the City desires to assist the CHDO in providing for the acquisition of low-
to-moderate income housing through funds provided by HUD's Home Investment
Partnerships Program (HOME Program);
NOW, THEREFORE, FOR AND IN CONSIDERATION of the mutual purposes and
obligations set forth herein, the City and CHDO covenant and agree as follows:
This Agreement sets forth the understanding of the parties concerning the City's
HOME allocation as approved by HUD. It is the intent of this Agreement to outline what
eligible activities and procedures the CHDO must comply with in order to qualify for a
portion of the CityOs HOME CHDO set aside. The parties have severally and collectively
agreed, and by the execution hereof are bound, to the mutual obligations and to the
performance and accomplishment of the tasks described herein.
Section 1 - City0s Responsibilities
A. The Community Development administrator, or other designated Community
Development Staff, will act as liaison on behalf of the City.
B. The City agrees to assume overall responsibility as the"CHDO for ensuring that the
Housing Assistance programs using HOME funds are carried out in accordance with the
HOME INVESTMENT PARTNERSHIPS PROGRAM. The City shall complete and provide
documentation as required by HUD for program reporting requirements.
C. The City agrees to pay eligible costs, up to a maximum total amount of Two
Hundred Fifty Thousand and no/100 ($250,000.00) on a reimbursement basis to the
CHDO for eligible activities as outlined in 24 CFR 92.300 (attached hereto as Exhibit"A),
carried out within the City's jurisdictional boundaries, specifically,the acquisition of at least
two (3) lease-purchase scattered site units. Specifically, activities carried out will include
acquisition, closing costs, warranties, appraisals, surveys, inspections and make-ready
costs associated with the acquisition of at least two (2)scattered-site homes which will be
leased to low/moderate income persons at or below 60%of the median income. Costs will
be reimbursed as set forth in the program budget attached hereto.
D. CHDO agrees that an annual audit report is a condition of funding, and that the City
of Beaumont will secure an acceptable audit engagement letterfor the 2010 audit report by
March 31, 2011. The completed 2010 audit report will be provided to both parties by June
30, 2011, and will be paid directly to the auditor from HOME Administration funds.
Section 2— Legacy Community Development Corporation Responsibilities
A. The Executive Director for the CHDO, or other designated CHDO staff, will act as
liaison on behalf of the CHDO.
B. CHDO agrees to execute any and all documents requested by the City for
compliance with the HOME Investment Partnership Program, as specified in 24 CFR
92.505(b) (attached hereto as Exhibit B) and agrees to comply with all uniform
administrative requirements and standards as more particularly described in OMB Circular
A-110 (Uniform Administrative Requirements for Grants and Cooperative Agreements to
State and Local Governments.
C. CHDO agrees to maintain itself as a City certified CHDO in accordance with Title II
of the National Affordable Housing Act (1990), as it may be amended, concerning the
HOME Investment Partnership program (HOME) (24 CFR 92.300) (see attached Exhibit
A), and the regulations policies and reporting requirements established by the City in
conjunction with HUD, including CHDO recertification annually and/or priorto the execution
of a contract for HOME CHDO Reserve funds..
D. CHDO agrees to assure that all acquisition or rehabilitation projects will meet or
exceed all written locally adopted Property Standards as well as all applicable local and
state codes and other federal requirements. Within ninety (90) days of the execution of
this agreement, the Legacy Community Development Corporation will adopt the City's
construction specifications and standards to be used on projects funded by this agreement.
Where applicable, all floor plans must be certified as having met or exceeded the Model
Energy Code prior to construction. Variations from these standards should be approved in
writing by the City's representative. Quality and affordability shall be the criteria used to
determine whether a requested variance will be approved.
E. CHDO agrees to complete all acquisition, rehabilitation or new construction projects
within two years from the date of this agreement, or by federally required deadlines,
whichever is sooner. For projects including acquisition for new construction, the
construction must begin within one(1)year of the acquisition of the property. The issuance
of a building permit will constitute start of construction. If construction cannot be
commenced by its start date as set out in Exhibit A, the CHDO shall notify the City in
writing at least 30 days prior to the commencement date of the specific nature of the
events that prevent the commencement of construction. The City shall either approve a
new commencement date or deny the request for extension. The decision of the City0s
representative shall be final. If a new start date is not approved, funds allocable to the
structure will be removed from the contract and the CHDO will be required to deed to the
City any real property provided.
F. CHDO agrees to provide the City full and complete documentation of all eligible
acquisition, materials, professional fees and labor expenses fourteen (14) calendar days
prior to the requested reimbursement date. All eligible expenses must be already paid in
full by CHDO prior to submittal to the City. The Community Development Administrator
may waive this requirement to facilitate program goals and objectives.
G. Except where unavailable, CHDO agrees to make the homes acquired through this
contract available to applicants who have been qualified through a Homebuyer Counseling
agency name. Where applicable, CHDO agrees to collect homeownership applications,
determine eligibility, gather all initial data connected with these applications, and to assist
the prospective homebuyer with the negotiation of permanent financing with participating
lenders. CHDO agrees to ensure the long term affordability of the property to the new
homebuyer as specified in 24 CFR § 92.252 (attached hereto as Exhibit C). These
affordability requirements must be enforced by the use of 2nd Lien Deeds of Trust and deed
restrictions.
H. CHDO agrees to affirmatively market all properties to eligible low or moderate
income families as described 24 CFR 92.351 (a) (Exhibit D).
I. CHDO agrees to furnish the City with information on the program participants
necessary to meet HUD reporting requirements (i.e., income verifications, ethnicity, age,
sex, family status, disability status and head-of-household status). Approval by the City is
required prior to the applicant receiving an approval letter from the CHDO. CHDO also
agrees to make all files on projects/programs funded by this agreement available for
inspection by City staff. CHDO will report any project and/or program delays or
modifications and await City approval before proceeding. CHDO will also report any
instances of client fraud or program abuse to the City.
J. CHDO agrees to refund all HOME funds found to have been used for ineligible
and/or unapproved programs or activities. These repayments will be made within thirty
(30) days of notification by the City of the ineligible expenditures.
K. CHDO agrees to meet with the City to discuss progress or concerns as the need
arises and at the City's request. CHDO also agrees to report on a bi-annual basis to the
City on program/project status as outlined in 24 CFR 92.300 (attached hereto as Exhibit
A). This must be a written report of the status on recently completed, ongoing, and pre-
approved programs and/or projects, and must include information for the reporting period
to include the status on applicant approvals/denials; projects/programs approved; fund
disbursements; project bidding information; property sales; contractor/subcontractor
utilization(amounts, ethnicity, addresses, social security numbers and amounts billed and
paid); use of CHDO proceeds; and other information as appropriate and required by the
attached program guidelines (Exhibit D). CHDO agrees that the Program will be
administered according to all applicable regulations and guidelines per the City of
Beaumont's 2001 Action Plan (as it may be amended), program design criteria and
construction standards.
L. CHDO agrees to place all sales proceeds gained from this program back into its
Affordable Housing Initiative Program, and more specifically, into other HOME eligible
CHDO housing activities located within the jurisdictional boundaries of Beaumont for as
long as the CHDO is certified by the City as a CHDO. Eligible activities include(a)eligible
project costs related to the development and construction of new houses AND (b) home
buyer assistance including, but not limited to, lease-purchases, mortgage principal buy
down, closing costs, pre-paid or any other reasonable AND necessary eligible expenses.
The CHDO understands and agrees that should the CHDO 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. The CHDO further understands and agrees to, and
shall transfer to the City, any program income, real properties, equipment, supplies and
any assets acquired as a result of grant funds if CHDO becomes defunct or insolvent.
M. CHDO agrees to secure the financial match requirements for M-08-MC-48-0201
HOME funds. The financial funding match requirement is 12 1/2 % of total expenditures
less CHDO Operating funds.
N. CHDO agrees that the City will provide the CHDO with Two Hundred Fifty
Thousand Dollars and no/100 ($250,000.00) of 2008 HOME funds to be available
through the City's draw process on or after the effective date of this contract. Payment
shall be made directly to the CHDO, upon receipt of invoices or payment vouchers from
CHDO certifying that all requirements have been met.
O. The CHDO also understands and agrees to adhere to the City's procurement
process (attached hereto as Exhibit E). The City shall reserve the right to investigate,
examine and monitor, at any time, any and all such records relating to the operations or
expenditures of CHDO under this Agreement.
P. The CHDO agrees to adhere to all local, state and federal regulations applicable to
rental housing qualifying as Affordable Rental Housing as per 24 CFR 92.252, (attached),
and established Fair Market Rents (Schedule B attached), Income Limits (221(d)(3)
attached).
Section 3 - General Terms
A. This Agreement shall be fully executed in writing by both parties, and extend from
April 13, 2010 through April 12, 2011. With agreement by both parties,the Agreement may
be extended for a time specified in a jointly signed and approved term extension
memorandum, not to exceed 24 months from the original effective date.
B. This Agreement and the rights and obligations contained herein may not be
assigned by either party.
C. This Agreement has been made under, and shall be governed by, the laws of the
State of Texas. The parties agree that performance and all matters related thereto shall be
in Beaumont, Texas.
D. This Agreement may only be amended by written instrument, approved and
executed by both parties.
E. The City may terminate this agreement if at any time, after a thirty-day written
notice, the CHDO is found to have violated any federal, state or local requirements, for
nonperformance of the terms of this agreement, or upon the unavailability of HOME funds.
F. It is expressly understood and agreed by and between the City and the CHDO that
this Agreement is wholly conditioned upon the actual availability of federal HOME funds
allocated to the City by the U S Department of Housing and Urban Development(HOME
Program No. M-08-MC-48-0201), and that all monies distributed to, or in behalf of the,.
CHDO hereunder shall be exclusively from federal monies received under said HOME
Program, and not from any other monies of the City.
G. This Agreement does not provide for any administrative and/or operating costs
incurred by the CHDO.
H. The Agreement does not provide for Predevelopment costs as defined in 24 CFR
Part 92.301 (attached hereto as Exhibit F)
I. If any provision(s) of this Agreement shall be held to be invalid, illegal, or
unenforceable by a court, by HUD, or other competent tribunal, the validity, legality, and
enforceability of the remaining provisions shall not be impaired thereby. In such event,the
parties hereby agree to use their best efforts to replace the respective provision or
provisions with terms and conditions approximating the original intent of the parties and
conforming in all respects with applicable law and HUD regulations and directives.
J. 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.
K. 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.
L. CHDO 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 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 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.
M. No officer, employee or member of CHDO or CHDO'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 CHDO. Any willful
violation of this paragraph with the knowledge, expressed or implied, of CHDO or its
subcontractors, shall render this contract voidable by the City of Beaumont.
N. No grants shall be made by CHDO to its directors or officers, either directly or
indirectly, through family members, business partners or employees. CHDO 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 CHDO shall
render this contract voidable by the City.
O. CHDO covenants and agrees that its officers, members, agents, employees,
program participants and subcontractors shall abide by and comply with federal, state and
local laws, including all ordinances, rules and regulations of the City of Beaumont, as
amended. CHDO further covenants and agrees that it will fully comply with the terms and
conditions of the HOME Program, under which these funds are granted.
P. Each party has the full power and authority to enter into and perform this
Agreement, and the person signing on behalf of each party has been properly authorized
and empowered to execute this Agreement.
Q. The parties hereby acknowledge that they have read, understand, and intend to be
bound by the terms and conditions contained herein.
Le ac m Devak4A&4CamQration
Vivian L. Ballow, Execu ive Director Date
STATE OF TEXAS §
§ ACKNOWLEDGMENT
CITY OF BEAUMONT §
This instrument was acknowledged before me on the day of
2010, by , as of
a non-profit organization, on behalf of said organization.
Notary Public in and for the State of
Texas
CITY OF BEAUMONT
By:
L_ I � y- 30
Kyle Hayes, City Manager Date
ATTE : `
By:
Tina Broussard, City Clerk Date