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HomeMy WebLinkAboutRES-24-322RESOLUTION NO.24-322 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to enter into a Grant Agreement with Legacy Community Development Corporation, LLC, in an amount up to $745,214.00 from the HOME -ARP funds for the acquisition and/or development of non -congregate shelter units (NCS) to Legacy Community Development Corporation, LLC; and, THAT Legacy Community Development Corporation, LLC, is proposing to acquire 2670 Broadway Street, Beaumont, Texas, which contains an eight (8) unit multi -family for NCS for the restricted use period for this project, as outlined and required by HUD. 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 3rd day of December, 2024. - ayor Roy West - HOME -ARP 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 government entity incorporated under the laws of the State of Texas (City hereinafter), and the Legacy Community Development Corporation, LLC, a Texas non-profit corporation (Legacy hereinafter), located at 700 North Street, Beaumont, Texas 77701, and collectively as the Parties, WHEREAS, the City of Beaumont has received a HOME -ARP grant from the United States Department of Housing and Urban Development (Grant #M21 -MP48020 1, American Rescue Plan Act of 2021 P.L. 117-2); WHEREAS, the City aims to provide for the acquisition and/or development of non -congregate shelter (NCS) units forthe qualifying populations outlined in Section IV.A of the CPD-21-10 Notice 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 non-profit organization; WHEREAS, pursuant to the authority of Resolution Number 923-289, passed by the Beaumont City Council on 10/10/2023 the Legacy Community Development Corporation will enter into a grant Agreement with the City for an award of the 2021 HOME -ARP funds allocated for the acquisition or development of non -congregate shelter units, totaling Seven Hundred Forty -Five Thousand Two Hundred and Fourteen Dollars and 00/100 ($745,214.00). 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 Home -ARP Property Standards outlined in Section VI.E7 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 funds for the acquisition and development of NCS; WHEREAS, The HOME -ARP allocation of Seven Hundred Forty -Five Thousand Two Hundred and Fourteen Dollars and 00/100 ($745,214.00) will be used for the eligible costs related to the acquisition, development and rehabilitation of an existing multi -family property located at 2670 Broadway Beaumont, TX containing 8 housing units, to provide 8 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 N.A of CPD 21-10; This CPD 21-10 Notice defines a non -congregate shelter (NCS) as one or more buildings that provide private units or rooms as temporary shelter to individuals and families and does not require occupants to sign a lease or occupancy Agreement. WHEREAS, the City desires to increase non -congregate shelter units for eligible residents to prevent homelessness through funds 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 1 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— 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 amaximum total amount of Six Hundred Thirty Thousand Dollars and 00/100 ($630,000.00) to the title company, Texas Regional Title Company that will perform the closing for the acquisition of 2670 Broadway, Beaumont, Texas as identified in the Commercial Contract (attached hereto as Exhibit A) specifically, the acquisition of 2670 Broadway, Beaumont, Texas to provide 8 units of NCS. An additional amount may also be paid to Texas Regional Title Company for closing costs associated with the acquisition. The remaining amount of up to One Hundred Fifteen Thousand Two Hundred Fourteen Dollars and 00/100 ($115,214.00) will be reimbursable to Legacy and may not be requested until the funds are needed. Specific activities to be carried out will include acquisition, closing costs, warranties, appraisals, surveys, inspections, repairs, furnishings, appliances, replacement reserve and make-ready costs associated with 2670 Broadway Beaumont, Texas, -which will be purchased. The project budget is outlined. (attached hereto as Exhibit B). Section 2 — Legacy Community Development Corporation, LLC Responsibilities 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 subpartH and 92.505(b) and agrees to comply with all uniform administrative requirements and standards 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 Legacy Community 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 2670 Broadway, Beaumont, Texas within three (3) months from the date of this Agreement, or by federally required deadlines, whichever is sooner. If acquisition cannot be completed within this timeframe, Legacy shall notify the City in writing at least thirty (30) days prior to the commencement date of the specific nature of the events thatprevent 2 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. Legacy will have E. Legacy agrees to provide the City full 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, page 56, which states "Admission and Occupancy: HOME -ARP NCS units may only be occupied by individuals or families that meet the criteria for one or more of the qualifying populations as defined in Section N.A. of this Notice. Where applicable, occupancy of NCS units by qualifying populations must be in accordance with the requirements in Section IV.0 of this CPD 21-10 Notice. The PJ must not allow qualifying populations to be charged occupancy fees or other charges to occupy a HOME -ARP NCS unit. unless the PJ determines such fees and charges to be customary and reasonable and the charges comply with 24 CFR 578.77(b)." Where applicable, Legacy agrees to collect applications, determine eligibility, gather all initial data connected with these applications, and assist the prospective residents. Legacy agrees to ensure the long-term affordability of the property as specified in 24 CFR 92.252. These affordability and minimum use requirements must be enforced using a 2nd Lien Deed of Trust and deed restrictions. G. Legacy agrees to affirmatively market all properties to eligible low- or moderate -income families as described in 24 CFR 92.351 (a). H. Legacy 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). 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. I. 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) days of notification by the City of the ineligible expenditures. J. Legacy agrees to meet 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 of recently completed, ongoing, and pre -approved programs and/or projects, and must include information for the reporting period to include the status of applicant approvals/denials; Legacy agrees that the Program will be administered according to all applicable regulations and guidelines per the City of Beaumont'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, 3 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 Seven Hundred Forty -Five Thousand Two Hundred and Fourteen Dollars and 00/100 ($745,214.00) of the 2021 HOME -ARP funds to be available for the acquisition of 2670 Broadway, Beaumont Texas. This multi -family complex contains 8 units. Legacy has stated its intent to designate all 8 units as NCS at this location for qualifying populations for the restricted use period defined in CPD Notice 21-10. Payment forthis 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. The remaining funding associated with this projectwill be reimbursable, as needed and paid out as proof of payment is produced. 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 (if the property converts to permanent affordable housing), and Income Limits (relevant to 2028 or later). O. 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 requires Legacy to submit the most current financial review for the fiscal year completed by December 31, 2024. P. Legacy agrees that should this property be converted to permanent affordable housing after the minimum use period as described in Section VI.E.9 of the CPD 21-10 Notice, the units will remain affordable as rental units. Section VI.E.9 states the following: This use restriction must require that the property is operated as HOME -ARP NCS or non - congregate emergency shelter under ESG for the required restricted use period except that HOME - ARP NCS projects may be converted to permanent affordable housing or CoC permanent housing after being operated as HOME -ARP NCS for the applicable minimum use period prior to conversion as described in Section VI.E.11. ARP authorizes the conversion of the HOME -ARP NCS units into permanent housing under subtitle C of title IV of McKinney-Vento or permanent affordable housing. Any conversion of the property from NCS units to permanent affordable units must be approved in advance by the City priorto the conversion. No HOME -ARP funds may be used forthis conversion. Conversion of this property from NCS to affordable units will notbe permitted until the property has operated as a non -congregate shelter for no less than three (3) years. The minimum use period will not begin until the property is operating as a non -congregate shelter. If the HOME -ARP NCS is converted, the City will amend its use restriction to reflect the change in requirements for the remainder of the restricted use period. The restricted use period begins at project completion as defined in Section VI.E.8 of this Notice. Section 3 - General Terms A. This Agreement shall be fully executed in writing by'both Parties, and extend from [insert date], with Agreement by both Parties, the Agreement may be extended for a time specified in a j ointly signed and approved term extension memorandum, not to exceed twenty-four (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. M D. This Agreement may only be amended by written instrument, approved and executed by both Parries. E. The City may terminate this Agreement if at any time, after a thirty (30)-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 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 Parries 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 the 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 Agreement voidable by the City. 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 willful violation of this paragraph with the knowledge, expressed or implied, of Legacy shall renderthis Agreement voidable by the City. O. 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, R including all ordinances, rules and regulations of the City, 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 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. R. HOME -ARP -assisted units must comply with the requirements of this Notice for a minimum period of fifteen (15) years, irrespective of the amount of HOME -ARP funds invested in the project or the activity being undertaken. Legacy Community Development Corporation Vivian L. Ballou, Executive Director Date Co STATE OF TEXAS ACKNOWLEDGMENT CITY OF BEAUMONT This instrument was acknowledged before me on the day of [insert month], 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: -00 Tina Broussard, City Clerk Date 7 DEFINITIONS Fair market rent (FAR). 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 term 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. 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LI'il._ 5?92 N'1_i !,SSOCUTES i AL'13Oi"iT; TS;AS 7ii28-513� i`•i "!�R^i1RATED 40-A9?-0421 CONSULTuir, ?So &A,3 I E., FP W; . 03 (FA , 1`09-a-92-19 is Z 2670 Broadway Exhibit B Profit and Loss Rental Income Acquisiton Grant Total Income Expenses Utilities Closing Costs, Appraisal, Inspection Insurance Linen, Bedding & Supplies Furnishing Appliances Security Costs Cell, Alarm & Communication Costs Tolietry Kits Maintenance Property Manager Costs Case Management Legal & Accounting Pest Service Kitchen supplies Replacement Reserve* Make Ready Costs Total Expenses Acquisition Costs Expenses & Acquisition Net Income (loss) *Roof, AC, Property Inflation Rate 2.00% Aquistion Costs Legacy City of Beaumont Three Year Grant Year One YearTwo Year Three Total $0 $0 $0 $0 $630,000 $0 $0 $0 $0 $630,000 $0 $0 $0 $0 $7,360 $5,000 $7,507 $7,657 $20,164 $10,000 $0 $22,829 $0 $23,286 $23,752 $47,038 $10,000 $0 $0 $0 $0 $32,000 $0 $0 $4,500 $4,500 $9,600 $0 $0 $0 $0 $1,800 $500 $3,000 $3,060 $6,560 $500. $510 $520 $1,530 $825 $0 $0 $0 $0 $3,536 $3,607 $3,679 $10,822 $10,000 $10,200 $10,404 $30,604 $0 $0 $0 $0 $4,000 $4,080 $4,162 $12,242 $1,000 $1,020 $1,040 $3,060 $4,800 $0 $594 $606 $1,200 $12,000 $0 $0 $0 $0 $4,000 $0 $12,000 $24,000 $36,000 $115,214 $24,536 $65,804 $83,380 $173,719 $630,000 $0 $0 $0 $0 $745,214 $24,536 $65,804 $83,380 $173,719 -$115,214 -$24,536 -$65,804 -$83,380 -$173,719