HomeMy WebLinkAboutRES 24-017HOME -ARP ALLOCATION FUNDING AGREEMENT
between the
CITY OF BEAUMONT
and the
Lep,ae.y,_,Coxninunijy 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 Devclot)iMnletit�Coiporation, LLC, a Texas non-profit corporation (Legacy
hereinafter), located at 700 North Street, Beaumont, Texas 77701.
WHEREAS, the City of Beaumont has received a HOME -ARP grant from the United States
Department of Housing and Urban Development (Grant HM21-MP480201,Americaii Rescue
Plan Act of 2021 P.L. 117-2);
WHEREAS, the City has the objective of providing for the acquisition and/or development
of non -congregate shelter (NCS) units for the qualifying populations outlined in Section IV.A of
the CPD-2 I - 10 Notice for residents of the City through its Community Development Division;
WHEREAS, the Legacy Community Development CoMg1qqqq, through its express purpose
as set forth in its corporate bylaws, shares this common goal with the City, as a City of
Beaumont approved non-profit organization;
WHEREAS, pursuant to the authority of Resolution Number #23-289, passed by the
Beaumont City Council on 10/10/2023 the Legacy Community..Developmerit Corporation will
enter into a grant agreement with the City for an award of the 2021 HOME -ARP fiends allocated
for acquisition or development of non -congregate shelter units, totaling One Million, Five
Hundred Seventy -Two Thousand, One Hundred Twenty -Four Dollars and 00/100
($1,572,124.00).
WHEREAS, the City reasonably anticipates that the project will be operated as HOME -ARP
NCS within 6 months of the date of acquisition and will meet the Minimum flome-ARP Property
Standards outlined in Section VI.E 7 of the CPD 21-10 Notice and as approved by Resolution
Number 23-087 in the City's Substantial Amendment of the 2021 Action Plan of the 2020 - 2024
Consolidated Plan, which sets aside a portion of HOME -ARP Grant Rinds for the acquisition and
development of NCS;
WHEREAS, The HOME -ARP allocation of One Million, Five Hundred Seventy -Two
Thousand, One Hundred Twenty -Four Dollars and 00/100 ($1,572,124.00) will be used for
the eligible costs related to the acquisition of an existing multi -family property located at 5680
Concord Beaumont, TX 77703 containing 68 housing units, to provide 23 NCS units, an eligible
activity, per the CPD-21-10 Notice. Such housing will provide decent, safe and sanitary housing
for eligible persons that meet the criteria for one or more of the qualifying populations as defined
in section TV, A of CPD 21 -10;
WHEREAS, the City desires to increase non -congregate shelter units for eligible residents to
prevent homelessness through Rinds provided by HUD's Home -ARP Program and HOME
Investment Partnerships Program (HOME Program);
NOW, THEREFORE, FOR AND IN CONSIDERATION of the mutual purposes and
obligations set forth herein, the City and Legacy covenant and agree as follows:
This Agreement sets forth the -understanding of the parties concerning the City's HOME -
ARP allocation as approved by HUD. It is, the intent of this Agreement to outline what eligible
activities, and procedures Legacy must comply with to receive the City's HOME -ARP NCS
allocation. 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 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 assume overall responsibility for ensuring that the Housing Assistance
programs using HOME -ARP funds are carried out in accordance with the HOME
INVESTMENT PARTNERSHIPS PROGRAM and HOME -ARP CPD-21-10. 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 One Million,
Five Hundred Seventy -"Two Thousand, One Hundred Twenty -Four Dollars and 00/100
($1,572,124.00) to the title company that will perform the closing for acquisition of 5680
Concord, Beaumont, Texas as identified in the Commercial Contract (attached hereto as Exhibit
A) specifically, the acquisition of 5680 Concord, Beaumont, Texas to provide 23 units of NCS.
Specific activities to be carried out will include acquisition, closing costs, warranties, appraisals,
surveys, inspections and make-ready costs associated with 5680 Concord Beaumont, Texas,
which will be purchased.
D. Legacy agrees that a single or program -specific audit 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 Legacy to submit the most current financial review for the fiscal year completed by
August 30, 2024.
Section 2 — LefyacyCommunily Development Corporation, TALC Resnonsibilifies
A. The Executive Director for Legacy, or other designated staff, will act as liaison on behalf
of the non-profit organization.
B. Legacy agrees to execute any and all documents requested by the City for compliance
with the HOME -ARP Notice CPD-21-10 and HOME Investment Partnership Program, as
specified in 24 CFR 92.505(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. Legacy agrees to assure that the project 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 Lepa-fornmunity Development
Corporation will adopt the City's construction specifications and standards to be used on projects
funded by this agreement. Additionally, Legacy will comply with 24 CFR 92.206(a) and Section
VI.E.7 regarding Minimum Home -ARP Property Standards in Notice CPD 21-10. 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.
D. Legacy agrees to complete the acquisition of 5680 Concord, Beaumont, Texas, within 3
months, from the date of this agreement, or by federally required deadlines, whichever is sooner.
If acquisition carrot be completed within this timeframe, Legacy 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 closing of the property. The City shall either approve a new commencement date or deny the
request for an 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,
E. Legacy agrees to provide the City Rill and complete documentation of all eligible
expenses relevant to the acquisition within fourteen (14) calendar days prior to the requested
date.
F. Legacy agrees to make the units acquired through this contract available to applicants
who have been qualified through a coordinated entry process as outlined in the CPD 21-10
Notice. Where applicable, Legacy agrees to collect applications, determine eligibility, gather all
initial data connected with these applications, and to assist the prospective residents. Legacy
agrees to ensure the long-term affordability of the property as specified in 24 CFR 92.252 ,
These affordability requirements must be enforced by the use of 21,d Lien Deeds of Trust and
deed restrictions.
G. Legacy agrees to affirmatively market all properties to eligible low- or moderate -income
families as described 24 CFR 92.351 (a).
H. Legacy agrees to famish 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 licad-of-household status). Legacy also agrees to make all files on
projects/programs funded by this agreement available for inspection by City staff for the
retention period. Legacy will report any project and/or program delays or modifications and
await City approval before proceeding. Legacy will also report any instances of client fraud or
program abuse to the City,
1. Legacy agrees to refund all HOME -ARP funds found to have been used for ineligible
and/or unapproved programs or activities. These repayments will be made within thirty (30)
(lays of notification by the City of the ineligible expenditures.
J. Legacy agrees to niect with the City to discuss progress or concerns as the need arises
and at the City's request. Legacy also agrees to report on a bi-annual basis to the City on
program/project status as outlined in 24 CFR 92.300. 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; Legacy
agrees that the Program will be administered according to all applicable regulations and
guidelines per the City of Beaurnont's 2021 Action Plan (as it may be amended), program design
criteria and construction standards.
K, As the designated CHDO with. the City of Beaumont, Legacy 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. 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.
L. Legacy agrees that the City will provide One Million, Five Hundred Seventy -Two
Thousand, One Hundred T-sventy-Four Dollars and 00/100 ($1,572,124.00) of the 2021
HOME -ARP funds to be available for the acquisition of 5680 Concord, Beaumont Texas. This
multi -family complex contains 68 units. Legacy has stated their intent to designate 23 units as
NCS at this location for qualifying populations for the restricted use period defined in CPD
Notice 21-10. Payment for this acquisition shall be made directly to the Title Company at
closing, upon receipt of the Settlement Statement and closing documents from the Title
Company, certifying that all requirements have been met.
M. The City shall reserve the right to investigate, examine and monitor, at any time, all such
records relating to the operations or expenditures of Legacy under this Agreement.
N. Legacy 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, established Fair Market
Rents (Schedule B), and Income Limits (221(d)(3) (attached hereto as Exhibit C).
Section 3 - General Terms
A. This Agreement shall be fully executed in writing by both parties, and extend from
"'insert date". With agrecinent by both parties, the Agreement may be extended for a tirric
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.
H. 'Phis 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,
Legacy 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 -ARP funds.
F. It is expressly understood and agreed by and between the City and Legacy that this
Agreement is wholly conditioned upon the actual availability of federal HOME -ARP funds
allocated to the City by the U S, Department of Housing and Urban Development (HOME -ARP
Grant Agreement No. M-21-MP480201), and that all monies distributed to, or on behalf of
Legacy hereunder shall be exclusively from federal monies received under said HOME -ARP
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 Legacy.
H. This Agreement does not provide for Predevelopment costs as defined in 24 CFR Part
92.301
I. If any provision(s) of this Agreement shall be held to be invalid, illegal, or unenforceable
by a court, by I -IUD, 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. Legacy 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 ironies 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 CHINO. Any willful violation of
this paragraph with the knowledge, expressed or implied, of CHINO or its subcontractors, shall
render this contract voidable by the City of Beaumont,
N. No grants shall be made by Legacy to its directors or officers, either directly or indirectly,
through family members, business partners or employees. Legacy agrees that no HOME -ARP
funds shall be used, either directly or indirectly, for religious purposes. Any willftil violation of
this paragraph with the knowledge, expressed or implied, of Legacy shall render this contract
voidable by the City.
C. Legacy 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. Legacy
further covenants and agrees that it will fully comply with the terms and conditions of the
HOME -ARP 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,
Legacy Community Development CgW2K4jQn
0
Vivian L. Ballou, Executive Director Date
STATE OF TEXAS
ACKNOWLEDGMENT
CITY OF BEAUMONT
This instrument was acknowledged before me on the day of January, 2024, by
Vivian Ballou, as Executive Director of Legacy Community 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 BEAUMONT
By:
Kenneth R. Williams, City Manager Date
ATTEST:
Im
Tina Broussard, City Clerk Date
DEFTNITIONS
T'air niarket rent (EMR). 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 CFR part 888.
Initial lease term, The initial terns of the assisted lease, The initial lease term must be for at least
one year,
Initial contract rent. 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.
No Text
Legal Description: 2,291 Acre Tract or Parcel of Land
Frederick Bigner Sin vey, Abstract No. I
Beaumont, Jefferson County, Texas
BEING a 2.291 acre tract or parcel of land situated in the Frederick Bigner Survey, Abstract No.
1, Jefferson County, Texas and being out of and part of that certain called 2.331 acre tract of land
as described in a deed from Bill L. Holland, Jr,, James R. Smith and Ronald D, Beddingfield,
Trustee to W,H. Watkins, Jr. and Billy Ray Casey as recorded in Volume 1982, Page 183, Deed
Records, Jefferson County, Texas and being out of and part of the remainder of that certain called
1.047 acre tract, identified as TRACT 11, as described in a "Special Warranty Deed" from B.R.
Casey to W.H. Watkins, Jr, as recorded in Clerk's File No. 1999007120, Official Public Records
of Real Property, Jefferson County, Texas and being out of and part of the remainder of that certain
tract of land being called a 2.331 acre tract, save and except a 1.047 acre tract, as described in a
"Correction Special Warranty Deed" from B.R. Casey to W.H. Watkins, Jr. as recorded in Clerk's
File No. 2011028944, Official Public Records of Real Property, Jefferson County, Texas, said
2.291 acre tract being more particularly described as follows:
NOTE: 411 bearings are referenced to the North line of the reinainder of the said
2.33.1 acre Watkins and Casey tract as NORTH 89'17'00" EAST as recorded in the
above referenced P'olwne 1982, Page 183, Deed Records, Jefferson County, Texas.
All set.518" iron rods set with caps stamped "M. W. "iteley & Associates ".
BEGINNING at a 1/2" iron rod found for the Northeast comer of the tract herein described, said
comer also being the Northeast comer of the remainder of the said 2.331 acre Watkins and Casey
tract, the same being the Northeast comer of the remainder of the said Watkins 2.331 acre tract,
save and except a 1.047 acre tract, and being the Southeast comer of that certain called 5.277 acre
tract, identified as TRACT 11, as described in a "General Warranty Deed" with Vendor's Lien in
Favor of Third Party" from Paulette French, Richard H. French, Jr., Douglas K. French and
Michele French to Harry Burleigh, Jr. as recorded in Clerk's File No. 2018033414, Official Public
Records of Real Property, Jefferson County, Texas and being in the West line of tile remainder of
that certain called 3.9059 acre tract of land as described in a "General Warranty Deed" from
Mohammad A. Swati to Land Manor, Inc. as recorded in Clerk's File No. 94-9407991, Official
Public Records of Real Property, Jefferson County, Texas;
THENCE SOUTH 00002'44" EAST, along and with the boundary between the tract herein
described and the West line of the remainder of the said 3.9059 acre Land Manor, Inc. tract, the
,same being the East line of the remainder of the said 2.331 acre Watkins and Casey tract and the
East line of the remainder of the said Watkins 2.331 acre tract, save and except a 1.047 acre tract,
passing at a distance of 397.45 feet a found 5/8" iron rod and continuing for a total distance of
400.38 feet to a 5/8" iron rod set for comer, said corner being in the Northerly right-of-way line of
Concord Road and being the apparent Southwest comer of the said 3.9059, acre Land Manor Inc.
tract and said comer also being the beginning of a curve turning to the right having a radius of
970.00 feet and being subtended by a chord bearing NOR'1TI 65'59'29" WEST having a chord
length of 229.86 feet;
THENCE WESTERLY, along and with the Northerly right-of-way line of Concord Road and the
said curve, the same being the Northerly line of that certain called 0.0233 acre tract of land for
right-of-way of Concord Road as described in a "Special Warranty Deed" from Concord Manor,
L.P. to the City of Beaumont as recorded in Clerk's File No. 2011028946, Official Public Records
AIARK11". INC,
of Real Property, Jefferson County, Texas and the Northerly line of that certain called 0.0304 acre
tract of land for right-of-way of Concord Road as described in a "Special Warranty Deed" from
W.H. Watkins, Jr. to the City of Beaumont, Jefferson County, Texas, for an are length of 230.40
feet to a 5/8" iron rod set for comer;
THENCE NORTH 5901 P1 3 " WEST, continuing along and with the Northerly right -of -,way line
of Concord Road and the Northerly line of the said 0.0304 acre City of Beaumont tract, for a
distance of 102.47 feet to a 5/8" iron rod set for comer, said comer being the apparent Southwest
comer of the remainder of the said 1.047 acre Watkms tract and the apparent Southeast comer of
that certain tract of land as described in a "General Warranty Deed with Vendor's Lien" from HIRA
Ventures, LLC to Muhammad Jai -nail Akell and wife, Aniba Zahid Shah as recorded in Clerk's
File No. 2017027172, Official Public Records of Real Property, Jefferson County, Texas;
THENCE NORTH 00"46'06" WEST, along and with the boundary between the tract herein
described and the said Akell tract, the same being the West line of the remainder of the said 2.331
acre Watkins and Casey tract, the same being the West line of the remainder of the said 1.047 acre
Watkins tract, passing at a distance of 2.98 feet a found 1/2" iron rod with a cap stamped "Access"
and continuing for a total distance of 250.62 feet to a 5/8" iron rod set for corner, said comer being
the Northeast comer of the said Akell tract and the Northwest comer of the remainder of the said
1,047 acre Watkins tract, the same being the Northwest comer of the remainder of the said 2.331
acre Watkins and Casey tract and being in the South line of the said 5.277 acre Burleigh tract and
said comer bears NORTH 89'1700" EAST a distance of 128.00 feet from a concrete monument
found for the Northwest comer of the said Akell tract, the same being the Southwest comer of Lot
2, Block 2 of Paddington Place Addition, a subdivision of the City of Beaumont, Jeff"erson County,
Texas, according to the plat thereof recorded in Volume 10, Page 68, Map Records, Jefferson
County, Texas and from said comer a 1/2" iron rod with a cap stamped "Access" bears NORTH
23'29'0 1 " EAST a distance of 1.21 feet;
THENCE NORTH 8901700" EAST, along and with the boundary between the tract herein
described and the said 5.277 acre Buricigh tract, the same being the North line of the remainder of
the said 2.33,1 acre Watkins and Casey tract and the same being the North line of the said 1.047
acre Watkins tract and the North line of the said Watkins 2.331 acre tract, save and except a 1.047
acre tract, for a distance of 301.04 feet to the POINT OF BEGINNING and containing 2.291
Acres, more or less.
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