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HomeMy WebLinkAboutRES 23-383RESOLUTION NO, 23-383 BE IT RESOLVPD BYTHE CITY COUNCIL OF 'THE CITY OF BEAUMONT: THAT the City Manager be ,And lie is hereby authorized to enter into a Grant Agreement with Legacy Coi-ninunity Development Corporation (Legacy CDC) in the total amount of $125,,479.00 (Entitlement funds), $31,370.00 for related operating expenses and $94,109,00 (CHDO Reserve ftinds) for the acquisition and the rehabilitation of one (1) home to be sold to eligible low to moderate income families, said contracts to be funded from the 2023 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 Govcrnnient Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of December, 2023. this the 19th day of Roy West - December 1, 2023 City of Beaumont Housing Programs Ms, des Prince 801 Main Street Beaumont, Texas 77701 Ms. Prince: This letter is being written to request 2023 HOME funding, Legacy CDC would like 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 operate the Housing Counseling program in the arnount of $31,370.00. These CHDO operating funds help to offset the salary of a full-time Counselor and rent expenses. Counselors meet with clients monthly to guide therm through the homebuyer process. Legacy CDC currently has 106 applicants in its Beaumont Homeownership Program. CHDO Reserve funds in the amount of $94,109.00 are also being requested to acquire and renovate one (1) home to be sold to qualified prograin participants. ISh cerely, a ou i Executive Director 700 NORTH STREET, SUITE D, BEAUMONT, TEXAS 777011 MAIN: 409 832 2723 1 FAX: 800 674 3174 'WWWW-0/2 .. . ........ . . ­­­­ HOME' CHDO A1,LOCATION FUNDING AC'rREEMENT between the CITY 01BEAUMONT 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 (Cit.), hereinafter), and the Legacy Community Development Corporation, aTexas non-profit corporation (CHDO hereinafter), located at 700 North, Ste. D Street, Beaumont, Texas 77701. WHEREAS, the City of Beaurnont has received a HOME grant from the United States Department of Housing and Urban Development (HOME Program No. M-23-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 #, passed by the Beaumont City Council on 12/12/2023 the Legacy Con-ii-nunity Development Corporation will enter into a contract with the City for 2022 HOME funds totaling Thirty -One Thousand Three Hundred Seventy Dollars and 00/100 ($31,370.00); WHEREAS, the Cite is required to reserve not more than 5 percent of the HOME allocation for any fiscal year CHDO operation and expenses to be used by certified CHDOs pursuant to applicable U S Departinent of I lousing and Urban Development (HUD) regulations including but not limited to 24 CFR 92.300 (see attached hereto as Exhibit A), and as approved in the City's 2023 Action Plan update of the 2020 - 20�24 Consolidated Plan which set aside 5% of the HOME Grant funds for CHDO operational expenses; WHEREAS, The HOME 5% CHDO Operating allocation of Thirty -One Thousand Three Hundred Seventy Dollars and 0�0/100 ($31,370.00) will be used for reasonable and necessary costs for the operation of the CHDO. Such costs include salaries, wages, and other employee compensation and benefits; employee education, training, and travel; rent; utilities; communication costs; taxes; insurance; equipment-, materials; and supplies. 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 HUI). It is the intent of this Agreement to outline what eligible activities and procedures the CHDO irmst comply with in order to qualify for a portion of the City's HOME CHDO operations, The parties have severally and collectively agreed, and by the execution hereof are b0lind, to the inutual obligations and to the performance and accomplishment. of the tasks described herein. Section I — City's 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 assure overall responsibility as the CHDO for ensuring that tile Housing Assistance progranis using HOME funds are carried out in accordance with the HOME INVESTMENT PARTNERSHIPS PROGRAM. The City shall complete an(] provide documentation as required by HUI) for program reporting requirements. C. The City agrees to pay eligible costs, up to a maximum total amount of Thirty -One Thousand Three Hundred Seventy Dollars and 00/100 ($31,370.00) on a rcirnbursenicnt basis to the CHDO for eligible activities as outlined in 24 CFR 92.30O (attached hereto as Exhibit A), carried out within the City'SjUriSdictional boundaries, specifically, the operation of a local office, Specif ically, activities carried out will include the payment of rent, utilities, purchase of equipment, travel and salaries for administrative assistant. Costs will be reimbursed as set forth in the program budget attached hereto. D. CHDO agrees that a single or program -specific audit report is a condition of funding for all entities that expend $500,000.00 or more in a year in Federal awards. The City of Beaumont requires the CHDO to submit a financial review for the 2023 fiscal year by August 30, 2025. Section 2 — 1,egacy 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 I -TOME luvestment Partnership Program, as specified in 24 CFR 92.505(b) (attached hereto as Exhibit 13) and agrees to comply with all uniform administrative requirements and standards as more particularly described in OMB Circular A-1 10 (Uniform Administrative Requirements for Grants and Cooperative Agreements to Statcand Local Governments. C. Cl IDO agrees to tnaintain itself as a City certified CI TDO in accordance with Title 11 of the National Affordable Housing Act (I 990), as it may be amended, concerning the HOME Investment Partnership prograiri (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 prior to the execution of a contract for HOME CHDO Reserve funds. D. CHDO agrees to provide the City full and complete documentation of all eligible acquisition, materials, professional Bees 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 Adruillistrator may waive this .requirement to facilitate program goals and objectives. E, 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. F. 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 prograrn/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 C). CHDO agrees that the Program will be administered according to all applicable regulations and guidelines per the City of Beaumont's 2022 Action Plan (as it may be amended), program design criteria and construction standards. G. CHDO agrees to place all sales proceeds gained from this program back into its Affordable Housing Initiative Program, and niore specifically, into other HOME eligible CHDO housing activities located within the jurisdictional boundaries of Beaumont for as Tong 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, prc-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. 1-1. CHDO agrees that the City will provide the CHDO with Thirty -One Thousand Three Hunch-ed Seventy Dollars and 00/100 ($31,370.00) of 2023 HOME funds to be available through the City's draw process on or after the effective (late 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. I. The C HD,O also understands and agrees to adhere to the City's procurement process (attached hereto as Exhibit D). 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. J. The CHDO agrees to adhere to all local, state and federal regulations applicable to rental housing qualifying as Affordable Rental Housing as per 24 CFI. 92.252, and established Fair Market Rents (Schedule B attached), Income Litnits (221(d)(3) (attached hereto as Exhibit E). Section 3 - GeneralTerins A. This Agreement shall be fully executed in writing by both parties, and extend from January 25, 2024 through January 24, 2025. With agreement by both parties, the Agrcement 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-23- 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 provides for any administrative and/or operating costs incurred by the CHDO. 11. The Agreement does not provide for Predevelopinent costs as defined in 24 CFR Part 92.301 (attached hereto as Exhibit F) 1, 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 impaircd 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 pal -ties hereto concerning the matter performed hereunder and any prior or conteiriporancous, oral or written agreement which purports to vary from rout the terms hereof shall be void. L. CHDO covenants and agrces to hold harmless the City and its officers, agents, servants and employees, from an(] against any and all clainis, 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 set -vices 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 Beauniont. 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. 0. 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 Beauniont, as amended. CHDO further covenants and agrees that it will. fally 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 Agrectrient, 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. Legacy Community Developirient Corporation By: Vivi,an L, Ballou, Executive Director Date STATE OF TEXAS ACKNOWLEDGMENT CITY OF BEAUMONT This illStrUnient was acknowledged before me on the day of 2024, by Vivian Ballou, as Executive Director of Legacy Comn-mility Development Corporation a non- profit organization, on behalf of said organization. Notary Public in and for the State of Texas Jessica D. Prince CITY OF 13EAUMONT By: Kenneth R. Williams, City Manager Date WINVIM m Tina Broussard, City Clerk Date HOME CHDO ALLOCATION FUNDING AGREEMEX.1' between the CITY OF 13EAUMONT and the Lcf,j,ac_y Community Development Corporation This Community Housing Development Allocation Funding Agreement (Agreement hereinafter) is made and entered into by and between the CITY OF Bl-1,'AUMONT, a Home Rule Municipal Corporation incorporated under the laws of the State of Texas (City hereinafter), and the Lep,,acy Community Development p ent Corporation, a Texas non-profit corporation (CHDO L -------- —_ 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-23-MC-48-020 1); WHI-'�JZEAS, 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 # ------ passed by the Beaumont City Council on 12/12/2023 the Legacy Community Development C�og�iion will enter into a contract with the City for an award of the 2023 HOME funds totaling Ninety -Four Thousand, One Hundred Nine Dollars and 00/100 ($91,109.00). 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 US Department of Housing and Urban Development (HUD) regulations including but not limited to 24 CFR 92.300 (see attached hereto as Exhibit A), and as approved in the City's 2023 Action Plan of the 2020 - 2024 Consolidated Plan which set aside a portion of HOME Grant funds for CI-1DOs to develop low-to-moderatc income housing; WHEREAS, The HOME allocation of Ninety -Four Thousand, One Hundred Nine Dollars and 0011,00 ($91,109.00) will be used for the eligible costs related to the acquisition and rehabilitation of one (1) existing unit. Stich 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 inutual 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 (lie CHDO must comply with to quality for a portion of the City's HOME CHDO set aside. The parties have severally and collectively agreed, and by the execution hereof are bound, to the mutual obligations arid to the performance and accomplishment of the tasks described herein, Section I — Ci!y's 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, tip to a maximum total amount of Ninety -Four Thousand, One Hundred Nine Dollars and 00/10O ($91,109.00). on a reirnburserrient 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 one (1) unit. Specific activities to be carried out will include acquisition, closing costs, warranties, appraisals, surveys, inspections and make- ready costs associated with one (1) unit which will be PLUChased, rehabbed and sold to low/moderate income persons at or below 80% of the median income. Costs will be reimbursed as set forth. in the program's reimbursement policy. D. C11DO agrees that a single or program -specific audit is a condition of funding for all entities that expend $500,000.00 or niore in a year in Federal awards. The City of Beaumont requires the CHDO to submit the most current financial review for the fiscal year completed by August 30, 2024, Section 2 — Legacy Community, Development Cor-poi-ation 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 docuinents, 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'fitle 11 of the National Affordable Housing Act (1990), as it may be arnended, 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 prior to 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 CODImunity 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 1,1xhibit 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 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 CTIDO will be required to deed to the City any real property provided. F. C1ID0 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 CIIDO prior to submittal to the City. The Community Development Administrator may waive this requirement to facilitate program goals and objectives. G. Except where unavailable, CIIDO agrees to make the homes acquired through this contract available to applicants who have been qualified through a IIUD Certified Homcbu rer Counseling A,,ency. Where applicable, CI-­IDO 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 [lie property to the new homcbuyer as specified in 24 CFR 92.252 (attached hereto as Exhibit C), These affordability requirements must be enforced by the use of 21,11 Lien Deeds of Trust and deed restrictions. 1-1. CHDO agrees to affirmatively market all properties to eligible low- or ii-Ioderatc-income families as described 24 CFI 92.351 (a) (Exhibit D). 1. 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-hou schold status). Approval by the City is required prior to the applicant receiving an approval letter from the CHDO, CJJD0 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 programlprqject status as outlined in 24 CFI. 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 nun-ibers and amounts billed and paid); use of CHDO proceeds; and other information as appropriate and required by the attached program guidelines (Exhibit E). CHDO agrees that the Program will be administered according to all applicable regulations and guidelines per the City of Beaumont's 2023 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 I lousing 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 CTID0 ffirther 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-23-MC-48-0201 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 Ninety -Four Thousand, One Hundred Nine Dollars and 00/100 ($91,109.00)�, 2023 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. 0, The CHDO also understands and agrees to adhere to the City's procureirlent process (attached hereto as Exhibit F). The City shall reserve the right to investigate, examine and monitor, at any time, all such records relating to the operations or expenditures of CHDO under this Agreement. P. The CHI.)0 agrees to adhere to all local, state and federal regulations applicable to rental housing qualifying as Affordable Rental Housing is per 24 CER 92.252, established Fair Market Rents (Schedule B), and Income I. snits (221(d)(3) (attached hereto as Exhibit Q. Section 3 - General Terins A. This Agreement shall be fully executed in writing by both parties, and extend frolu January 24, 2024 through February 25, 2025. 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 niontlis 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 Linder, 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- 23-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 Agreen-lent does not provide for any administrative and/or operating costs incurred by the CHDO. H. This Agreement does not provide for Predevelopnient costs as defined in 24 CFR Part 92,301 (attached hereto as Exhibit G) 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 coiiforrning irl all respects with applicable law and HUD regulations and directives. J. The failure of the City to insist upon the performance of any terin or provision of this ,agreement or to exercise any right herein conferred shall not be Construed as a Nvaiver 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 inStfUlnellt 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 purj)orts to vary frorn the terms hereof` shall be void. 1- CHDO covenants and agrees to hold harn-iless, 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 iqjury, 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-perforinanec of this contract and agreement and the operations, activities and set -vices 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 inernber 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. 0. 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 elripowered 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. Legacy Community Development Corporatioi By: Vivian L. Ballou, Executive Director Date STATE OF TEXAS ACKNOWLEDGrMENT CITY OF BEAUMONT 'I'his instrument was acknowledged before me on the day of January, 2024, by Vivian Ballou, as ]-,'xecutive Director of 1.egacy Community Development Corporation a 11011- profit organization, on behalf of said organization. Jessica D. Prince CITY OF 13EAUMONT By: Kenneth R. Williams, City Manager ATTEST: By: Notary Public in and for the State ol-Texas Date Tina Broussard, City Clerk Date DEFINfriDNS Fair inarket i-eni 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 market rents for existing housing are established by HUD for housing units of varying sizes (number of bedrooms), and are published in the Federal Register in accordance with 24 C TR part 888. Initial lease term. The initial term of the assisted lease. The initial lease term must be for at least one year. Initial conowa resat. In the certificate program, the contract rent at the beginning of the initial lease term, Lease. (1) 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.