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Home My WebLink AboutRES 23-023RESOLUTION NO. 23-023 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 (Legacy CDC) in the amount of $200,000,00 (Entitlement funds), $26,486.15 for related operating expenses and $79,458.45 (CHDO Reserve funds) for the acquisition and the rehabilitation of three (3) properties for lease/purchase to eligible low to moderate income families, said contracts to be funded from the 2022 HOME program. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code,,Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 24th day of January, 2023. - Mayor Robin Mouton - 11/7/2022 City of Beaumont Housing Programs Ms. Patillo: This letter is being written to request 2022 HOME funding. Legacy CDC would hike to request CDHO operating and CHDO reserves funds to continue providing housing counseling and affordable housing opportunities to the citizens of Beaumont. The proposed request is for funding to operatethe Housing Counseling program in the amount of $26,486.15. These CHDO operating funds help to offset the salary of a full-time Counselor and rent expenses. Counselors meet with clients monthly to guide them through the homebuyerprocess. Legacy CDC currently has 106 applicants in its Beaumont Homeownership Program. CHDO Reserve funds in the amount of $279,458.15 are also beingrequested to acquire and renovate three (3) homes to be sold to qua. red program participants. Sin ' re1y a \1' 700 NORTH STREET, SUITE D, BEAUMONT, TEXAS 777011 MAIN: 409 832 2723 1 FAX: 800 674 3174 _HOME INVESTMENT PARTNERSHIP 11/15/22 BUDGET REPORT AS OF SEPTEMBER 30, 2022 (PERIOD 12) (Unaudited) 2021 PROGRAM YEAR 2021 PROGRAM (PERFORMANCE PERIOD: 07107/2021-09/01/2029) YEAR HOME PROGRAM 1 ADMINISTRATION (10%) HOME Administration 51,469 CHDO RESERVE (15% minimum) Legacy Community Development Corp 337,485 (CHDO) - Acquisition / Lease -Purchase (12/14/21 - R#21-335 - $337,485.00) HOME CHDO Reserve (Undesignated) (12/14/21) 0 CHDO OPERATING (5%) Legacy Community Development Corp 25,734 (CHDO) - CHDO Operating Expense (12/14/21 - R#21-335 - $25,734 - S/B $25,734.40 ) (IDIS Shows It To Be - $25,734 ) HOME CHDO Operating (Undesignated) (12/14/21 0 ENTITLEMENT (70%) Down Payment Assistance Program (12/14/21) 100,000 HOME Program (Undesignated) (12/14/21) 0 TOTAL 2021 PROGRAM YEAR PROGRAM INCOME IN IDIS Down Payment Assistance Program (2021 PI) TOTAL PROGRAM INCOME IN IDIS TOTAL 2021 PROGRAM YEAR EXPENDITURES AS OF 09/30/22 ENCUMBRANCES BALANCE ANTICIPATED AVAILABLE COMPLETION AT 09/30/22 DATE 16,892 0 34,577 6130/23 171,750 0 165,735 6/30123 0 0 0 Reprogrammed 11,438 0 14,296 6/30/23 0 0 0 Reprogrammed 72,414 0 27,586 6/30/23 0 0 0 Reprogrammed 514,688 272,494 0 242,194 5,999 5,999 0 0 Completed 5,999 5,999 0 0 520,687 278,493 0 242,194 2022 PROGRAM YEAR 2022 PROGRAM (PERFORMANCE PERIOD: 07107/2022-09/01/2030) YEAR HOME PROGRAM 1 ADMINISTRATION (10%) HOME Administration ($52,972.30) 52,972 CHDO RESERVE (15% minimum) HOME CHDO Reserve (Undesignated)($79,458.4: 79,458 CHDO OPERATING (5%) HOME CHDO Operating (Undesignated)($26,486.' 26,486 ENTITLEMENT (70%) Down Payment Assistance Program (10/31/22) 170,806 HOME Program (Undesignated) ($370,806.10) 200,000 (10/31 /22) EXPENDITURES AS OF 09/30/22 BALANCE ANTICIPATED AVAILABLE COMPLETION ENCUMBRANCES AT 09/30/22 DATE 0 0 52,972 6/30/24 0 0 79,458 6/30/24 0 0 26,486 6/30124 0 0 170,806 6/30/24 0 0 200,000 6/30/24 TOTAL 2022 PROGRAM YEAR 529,723 0 Account number information: 267-5948-759-XX-XX (2019 Grt Yr - Housing) 267-5949-759-XX-XX (2019 GrtYr- Admin) 267-6048-750-XX-XX (2020 Grt Yr - Housing) 267-6049-750-XX-XX (2020 Grt Yr - Admin) 267-5148-751-XX-XX (2021 Grt Yr -Housing) 267-5149-751 -XX-XX (2021 GrtYr- Admin) 267-5248-752-XX-XX (2022 Grt Yr - Housing) 267-5249-752-XX-XX (2022 Grt Yr - Admin) 529,723 Exhibit "A" HOME CDO ALLOCATION FUNDING AGRE EMENT between the CITY of BEAUMONT and the Legacy Conn Deeo ment 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 laves of the State of Texas (City hereinafter), and the Legacy Communily Development Corporation, a. Texas non-profit rofit corporation C D hereinafter), located at 700 North Street.,.Beaumont, Texas 77701. WHEREAS, the City of Beaumont has received a HOME grant from the United States Department of Housing and Urban Development (HOME Program No. M-22-MC-- 8-o201 ; WHEREAS, the City has the objective of providing for the development of low -to -moderate income housing for residents of the City through its Connnunity Development Division; WHEREAS, the Legacy.Comm nx Development Co oration through its express pm -pose 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 ofResolution Number #23-03, passed by the Beaumont City Council on 1/24/2023 the Legacy Community Development Co p gyration will enter into a contract with the City for an award of the 2022 HOME funds totaling Two Hundred Seventy -Nine Thousand, Four Hundred Fifty -Eight Dollars and 45 100 2 9,45 .4. WHEREAS , the City is required to reserve not less than 15 percent ofthe, HOME allocation for any fiscal year for investment only in housing to be developed, sponsored, or owned by certified C D s pursuant to applicable U S Department of Housing and Urban Development (IUD) regulations including but not Bruited to 24 CFR 92. (see attached hereto as Exhibit , and as approved in the City's 2022 Action Plan of the 2020 W 2024 Consolidated Plan which set aside a portion of BIOME Grant funds for C DOs to develop low -to -moderate income housing; WHEREAS, The DOME allocation of Two Hundred Seventy -Nine Thousand, Four Hundred Fifty -Eight Dollars and 5 100 7, 5 . will be used for the eligible costs related to the acquisition and rehabilitation of two 2 existing units. 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 UD's Hone Investment Partnerships Program (DOME 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'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 Cit 's HOME CHDO set aside. The pasties 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— C ity's Responsibilities "Itl ryiiiii+YIIYI11441IIIIIIpi A. The Community Development administrator, or other designated Community Development Staff, will act as liaison on behalf of the City. . 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 ERSHIPS PROGRAM. The City shall complete and provide documentation as required by HUD for program repoiting requirements. C. The City agrees to pay eligible costs, up to a maximum total amount of Two ndred Seventy -Nine Thousand, Four Hundred Fifty -Eight Dollars and 5 10 $ 7 , 5 , 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 and rehabilitation of two 2 units. Specific activities to be carried out will include acquisition, closing costs, warranties, appraisals, surveys, inspections and make --ready costs associated with two 2) units which will be purchased, rehabbed and sold to low/moderate income persons at or below 0% of the median income. Costs will be reimbursed as set forth in the program's reimbursement policy. D. CHDO agrees that a single orprogram-specific audit is a condition `funding for all entities that expend $ 5 00, 0 00. 0 0 or more in a year In Federal award s. The City of B eaumont requires the CHDO to submit the most current financial review for the fiscal year completed by August 3 o, 2 02 3. Section 2 — Le ae C.ommunity DevelopmentCorporation Responsibilities A. The Executive Director for the CHDO, or other designated CHDO O 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 CFI. 2.5(attached hereto as Exhibit B and agrees to comply with all uniform administrative requirements and standards as more particularly described in OMB Circular A-11o(Uniform Administrative Requirements for Grants and Cooperative Agreements to ,Mate and Local Govcimments. C. CHDO agrees to maintain itself as a City certified C14DO in accordance with Title 11 of the National Affordable Housing Act 1990, as it may be amended, concemi g the HOME Investment Partnership program (HOME) 24 CFR 92.300) (see attached Exhibit , and the regulations policies and reporting requirements established by the City in conjunction with HUD, including CHINO recertification annually and/or prior to the execution of a contract for HOME C11D0 Deserve funds. I . CHD 0 agrees to assure that all acquisition or rehabilitation prof ects 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 9 days of the execution of this agreement, the Legacy Communily Development CQrp r t 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 eertified as having reset or exceeded the Model Energy Codc 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 deter ine whether a rcqueste l variance will be approved. E. CHD 0 agrees to complete all acquisition, rehabilitation or new co ,str ction projects within two years from the date of this agreement, or by federally required deadlines, wbic .e er is sooner. For projects including acquisition for new construction, the construction must begin within one l year of the acquisition of the property. The issuance of a building perinit 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 everts that prevent the commencement of construction. The City shall either approve a new v commencement date or; deer the request for extension. The decision of the City's 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 reimb r enient elate. All eligible expenses must be already paid in full by CHDO prior to submittal to the City. The Community V l ment 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 tlu ough a HUD Certified Homeb Counsel leg Age nc . Where applicable, CHDO agrees to collect homeownership applications, determine eligibility, gather all initial data connected with these applications, and to assist the prospective homeb yer with the negotiation of permanent financing with participating lenders. CHDO agrees to ensure the long terin affordability of the property to the new homebuyer as specified in 24 C FR 92.252 (attached hereto as Exhibit Q. These affordability requirements must be enforced by the use of 2nd Dien Deeds of Trust and deed restrictions. H. CHDO agrees to affirmativelymarket all properties to eligible lour or moderate income families as described 24 CFR 92.351 a (Exhibit . I. CHDO agrees to fumish the City with information on the program participants necessary to meet HUD reporting requirements r,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 pros ects/pro grams funded by this agreement mailable for inspection by City staff. CHDO O will report any project and/or program delays or modifications and await City approval before proceeding. CHDO O will also report any instances of client fi-aud 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 thii#ty 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 reed arises and at the Cit 's request. CHDO also a recs to report on a bi-annual basis to the City on program/project status as outlined in 24 CFR 92.3 oo (attached hereto as Exhibit . This rust be a written report of the status on recently completed, ongoing, and pre -approved programsand/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 . CHDO agrees that the Program will be administered according to all applicable regulations and guidelines per the City of eaumont"s 2022 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 i 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 O understands and agrees that should the CHDO O become defunct or insolvcnt, 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 C 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 I CI-22-MC- -020l HOME funds. The financial funding match requirement is 25% of total expenditures less CHDO operating funds. N. CHDO agrees that the City will provide the CHDO with Two Hundred Seventy -Nine Thousand, Four Hundred Fifty -Eight Dollars and 10 $2 '9, 5 . , 2022 DOME 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 CHINO also understands and agrees to adhere to the City's procurement process (attached hereto as Exhibit `. The City shall reserve the right to investigate, examine and monitor, at any nixie, any and all such records relating to the operations or expenditures of Co 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 C R 92.252, established Fair Market Rents (Schedule , and Income Limits 221 d 3 (attached hereto as Exhibit Q. Section 3 - General Terms A. This Agreement shall be fully executed in writing by both parties, and extend from January 24, 2023 through February 25, 2024. With agreement by both parties, the Agreement may be extended for a time specified in a jointly signed and approved tern . 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 lags 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 O is found to have violated any federal, state or local requirements, for nonperformance of the terns of this agreement, or upon the unavailability of HOME fand . F. It is expressly understood and agreed ee by and between the City and the CHDO that this Agreement is wholly conditioned upon the actual availability of federal DOME funds allocated to the City by the U S Department of Dousing and Urban Development (DOME Program No. M-22-MC- -020I), and that all monies distributed to, or In behalf of the, CHINO hereunder shall be exclusively from federal monies received under said HOME Program, and not from any other monies of the City. G. This Agreement sloes not provide for any administrative and/or operating costs incurred by the CHDO. H. This Agreement does not provide for Predevelopment costs as defined in 24 CFR Part 92.3 01 (attached hereto as Exhibit G) I. If any provisions 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 unpaired thereby. In such event., the parties hereby agree to use their best efforts to replace the respective provision or provisions with tens and conditions approximating the original intent of the parties and conforming in all respects with applicable law and IUD 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 ht 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 d of character vhethe # real or asserted, arising out of or in connection with the execution, performance, attempted performance or nog. -- performance of this contract and agreement and the operations, activities acid services of he program described herein, whether or not caused, in whole oar in pmt, by alleged negligence of officers, agents, servants, employees, contractors, or sub -contractors of the City: A No offi cer, employee or member of CHD 0 or CHDo's subcontractors shall have a financial interest, direct or; indirect, in this contract or the monies transferred hereunder, or be fmanclally interested, directly o • indirectly, . any contract relating to the operations conducted by it, nor ire any contract for fumishing services or supplies to CHDO. Any willfal violation of this paragraph with the knowledge, expressed or implied, of CHDO or its subcontractors, shall render this c -nt 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 pailners or employees. CHDO agreesthat no HOME funds shall be used, either directly or indirectly, for religious purposes, Any willful violation of this paragraph with the Imowledge, expressed or implied, of CHDO shall render this contract voidable by the City. CHDo covenants and agrees that its officers, members, agents, employees, program participants and subcontractors shall abide by and comply with federal, state and local lags, including all ordinances, rules and regulations of the City of Beaumont, as amended. CHDo further covenants and agrees that it will dully comply with the terms and conditions of the HOME ro era ., under which these funds are granted. P. Each party has the full power and authority to enter into and per olin this Agreement, and the person signing on behalf of each party has been grope •l r authorized and empowered to execute this Agreement. Q t The parties hereby acknowledge that they have read, understand, and intend to be bound b the tees and conditions contained herein. Legacy Community.Dev went Col oration y Vivian L. Ballou, ExeciAive hector 1-31-23 Date STATE OF`111 17EXAS ACKNOWLEDGMENT crry OF BEAUMONT This instrument was, ackn, owledgeel before me on the, 3 1` dauary, 2023, by Vie Ballou, as Executive Director o�f 111",egacy Community Development Corporation a non-profit organization on behalf of said organization. All, Jo A& Patillo CITY OF BEAUMONT 0001 By: Kenneth R. Willian-is,pity Manager AT'TE r 00 By: Tina Broussard,, City Clerk 05 JO ANN PATILLO Notary ID #6463873 MY COMMissfon Expfres November �13, 2026 777��IV Date C�Z3 Date DEFINITIONS Fair market rent (AMR). The rent, including the cost of utilities (except telephone), that would be required to be paid in the housing market area to obtain privately owned, existing, decent, safe and sanitary rental housing of modest (non -luxury) nature with suitable amenities. Fair maket rents for existing housing are established by HUD for housing units of varyingsizes (number of bedrooms), and are published in the Federal Register in accordance with 24 C R part 888. Initial lease terni. The initial term of the assisted lease. The initial lease term must be for at least one year. Initial contract rent. In the certificate prograin, the contract rent at the beginning of the initial lease term. Lease. I) A written agreement between an owner and a tenant for the leasing of a dwelling unit to the tenant. The lease establishes the conditions for occupancy of the dwelling unit,