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HomeMy WebLinkAbout1999-281ORDINANCE NO AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS APPROVING THE THIRD AMENDMENT TO THAT AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON AFFORDABLE HOUSING CORPORATION, AUTHORIZIING THE CITY MANAGER TO EXECUTE THE THIRD AMENDMENT AND TO EXPEND FUNDS WITH RESPECT TO THE THIRD AMENDMENT, AND PROVIDING FOR AN EFFECTIVE DATE WHEREAS, on December 17, 1996, the City Council entered into an Agreement with the Denton Affordable Housing Corporation to provide certain services for the provision of affordable housing under the National Affordable Housing Act of 1990, as amended by the Housing and Community Development Act of 1992, which Agreement was authorized by Ordinance No 96-295, and WHEREAS, the City Council, by approving the 1999 Action Plan for Housing and Community Development, as amended, has authorized additional funding for ongoing activities of the Denton Affordable Housing Corporation and the scope of work for the Denton Affordable Housing Corporation has increased, and WHEREAS, on February 17, 1998 the City Council approved the First Amendment and on November 3, 1998 the City Council approved the Second Amendment to the 1996 Agreement, deeming it in the public interest to amend the Agreement with the Denton Affordable Housing Corporation and to provide for such additional funding from funds made available by the U S Department of Housing and Urban Development under the National Affordable Housing Act and to provide other changes as set forth in the First and Second Amendments to the Agreement, and WHEREAS, the City Council now desires to amend the Agreement a third time to extend its term, provide additional funding, and amend the budget, NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION 1 That the City Council hereby approves the Third Amendment to the Agreement between the City of Denton and the Denton Affordable Housing Corporation, executed December 17, 1996, substantially in the form of the attached Exhibit "A" which is incorporated herein for all purposes, and further authorizes the City Manager to execute said Third Amendment SECTION 2. That the City Council authorizes the expenditure of funds for operating costs and project funding for the Denton Affordable Housing Corporation, included in the Third Amendment as Attachment `B", which includes additional funding in an amount not to exceed $98,000, subject to the terms and conditions of Exhibit "A" Page 1 SECTION 3 That this ordinance shall become effective immediately upon its passage and approval x PASSED AND APPROVED this the ✓ i day of' 1999 JACI ER, MAYOR ATTEST JENNIFER WALTERS, CITY SECRETARY BY /// )_4 Y—�ke APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY F l hwed\dept\LGUOur O umenb\Ordmancen\99\DAHC c Ont ordmance doc Page 2 STATE OF TEXAS § COUNTY OF DENTON § THIRD AMENDMENT (FY 99) TO AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON AFFORDABLE HOUSING CORPORATION This Third Amendment ("Third Amendment' or "FY99 Amendment') between the City of Denton, Texas ("CITY") and the Denton Affordable Housing Corporation ("CONTRACTOR") modifies the Agreement between CITY and CONTRACTOR, as approved by City of Denton Ordinance 96-295 (the "Base Agreement'), as said Base Agreement was thereafter modified by the parties in the First Amendment to said Base Agreement, approved by Denton City Ordinance 98-034 (the "FY97 Amendment' or the "First Amendment") and the Second Amendment to the said Base Agreement, approved by Denton City Ordinance 98-362 (the "FY98 Amendment' or the "Second Amendment') WHEREAS, by Ordinance No 96-295, CITY authorized its City Manager to execute an Agreement with the CONTRACTOR to provide administration, acquisition, rehabilitation, new construction, tenant -based rental development and public service programs to promote affordable housing within the City of Denton in return for CITY providing an amount not to exceed $20,000 to assist the CONTRACTOR in the operation of the Denton Affordable Housing Corporation, and an additional $68,850 (project funds) for specific housing projects described in the Work Statement, Attachment A, attached to the Base Agreement, and WHEREAS, by Ordinance No 98-034, CITY authorized the City Manager to execute the First Amendment with the CONTRACTOR to extend the term, revise the responsibilities, increase the funding level due to the passage of the 1997 Action Plan, and provide definitions and uses for program income and proceeds, and WHEREAS, by Ordinance No 98-362, CITY authorized the City Manager to execute the Second Amendment with the CONTRACTOR to extend the term, revise the responsibilities and increase the funding level due to the passage of the 1998 Action Plan, and WHEREAS, the CONTRACTOR has agreed to construct four affordable housing units to be placed on the project known as 400 Mockingbird Development (4MC) and also known as Toledo Court Project, and to release CITY from any liability growing out of that project, and WHEREAS, the CONTRACTOR, along with CITY and the Singing Oaks Neighborhood have entered into a Memorandum of Understanding Toledo Court Subdivision and the parties wish to amicably resolve any disputes between them, and Page 1 C 1WMWWMMMAHC THIM AM MH E- WHEREAS, the City Council has approved additional funding for the CONTRACTOR and amended previous activities in accordance with their approval of the 1999 Action Plan for Housing and Community Development, as amended, and adequate funding has been obtained from the U S Department of Housing and Urban Development, and desires to further revise the Base Agreement as amended herein, NOW, THEREFORE, the parties hereto agree, and by the execution hereof are bound to the mutual obligations and to the performance and accomplishment of the conditions hereinafter described 1 That Section II Responsibilities of the Base Agreement, as amended, is hereby amended by attaching the amended Attachments "A", `B" and "C" and by amending subsection A and adding subsections K, and L to read as follows A CONTRACTOR hereby accepts the responsibility for the performance of all services and activities described in the amended Work Statement attached hereto as Attachment "A" and in accordance with the amended Program Budget attached hereto as Attachment "B" and the amended Schedule of Contract Activities attached hereto as Attachment "C" and all of these Exhibits are incorporated herein as if set forth at length, in a satisfactory and efficient manner as determined by CITY, in accordance with the terms herein K In consideration of the grant of additional funding by CITY, CONTRACTOR agrees to complete the construction of four affordable housing units relocated on the project known at 400 Mockingbird Development (4MC) and also known as the Toledo Court Project and being near the 300 block of Mockingbird Lane in Denton to complete construction and renovation of the houses in complete compliance with all applicable provisions of Denton's Code of Ordinances and all other applicable laws and to fully comply with the Memorandum of Understanding Toledo Court Subdivision, executed by City, Contractor and the Singing Oaks Neighborhood Association Any failure by CONTRACTOR to comply with this subsection shall be considered a material breach of this Agreement and shall result in the forfeiture of the $98,000 in 0`N'T' additional funding approved by Denton's City Council on July 27, 1999 L In consideration of the additional funding by CITY and for other v and valuable consideration, the receipt and sufficiency of wh s hereby FRt% acknowledged by CONTRACTOR, CONTRACTOR fu eases, discharges, and acquits CITY, its officers and emplo om, and agrees that the consideration expressed above shall be and final satisfaction of all actions, causes of action, claims (mcl subrogation claims and claims for contribution and indemnity) o unt of or in any way growing out of any and all negligenc n fnal misconduct, violation of constitutional or statutory rights, racies, breach of any duty of good faith and fair dealing, death, personal Page 2 C\WMWWB\18 MMC TMW"MDM8 E injuries, damage to reputation, pain and suffering, grief, bereavement, m al injury, loss of earning capacity, loss of money, damage to property, t ng of property, attorney's fees, pre- and post judgment interest, and all othe claims or causes of action whether known or unknown and whether herefore erted or not, owned or possessed by CONTRACTOR, its officers or employ s against CITY, its officers or employees growing out of or any way conne ed with the Denton City Council and its officers and employees consideratio approval, and action in regard to the funding of Denton Affordable Housm orporation's request as a part of the approval of Denton's 1999 Action PI for Housing and Community Development, including without limitation, th ouncil's actions with respect to the stop work order, negotiations of any se ement with respect to the stop work order, or any other actions whatsoeve f the City Council with regard to the project known as 400 Mockingbird evelopment (4MC) and also known as the Toledo Court project being the ing of several houses to be rehabilitated on or near the 300 block of Mock bird Lane in the City of Denton, Texas and any action in regard to this endment or the funding of the Denton Affordable Housing Corporation ough HOME Investment Partnerships Program funds whatsoever for this d any previous year CONTRACTOR does hereby agree to indemnify and ve harmless CITY, its officers and employees, of and from all claims, de ds, costs, or expenses ansmg out of any injuries and damages sustame y CONTRACTOR, its officers or employees, as a result of the above- ment ed facts and circumstances, including any of them connected thereto w ch occurred prior to the date of the execution of this amendment That subsection A of Section III CITY's and CONTRACTOR's Obligations of the Base Agreement, as amended, is hereby amended to read as follows A CITY in accordance with 24 CFR 92 208, Eligible CHDO Operating Expenses, shall provide funds in the amount of $86,500 or less to assist the CONTRACTOR in the operation of the Denton Affordable Housing Corporation CITY shall also provide an amount not to exceed $499,692 ("Project Funds") for specific housing projects and programs as described in the Work Statement, Attachment "A" Provided, however, that the CONTRACTOR shall make sure that its project delivery expenses shall not exceed 10% of the total project cost as determined by the CITY 3 That save and except as amended hereby, the remaining sections, subsections, sentences and clause of the Base Agreement dated December 17, 1996, as amended by the First Amendment dated February 17, 1998 and the Second Amendment dated November 3, 1998, shall remain in full force and effect Page 3 C\WINMWMMM"MC THH "EMMC 6c WITNESS of which this Third Amendment has been executed on this the day of , 1999 by the duly authorized officials of the CITY and the CONTRACTOR CITY OF DENTON, TEXAS ATTEST JENNIFER WALTERS, CITY SECRET BY APPROVED AS TCUffGAL FORM HERBERT L PROUTY, CITY ATTORNEY I ATTEST SECRET w DENTON AFFORDABLE HOUSING CORPORATION Page 4 "M DMEMtl ATTACHMENT "A" WORK STATEMENT Denton Affordable Housing Corporation The Denton Affordable Housing Corporation (DAHQ was developed to increase the supply of affordable housing in the Denton area The organization is designed to carry out the following activities but is not limited to these administration, rehabilitation, acquisition, new construction, tenant -based rental assistance and public service programs Expenditure of City funds, including HOME proceeds, for housing projects is limited to projects within the city limits of Denton DAHC `s projects and programs will benefit low and moderate income households Low and moderate income is defined as households below 80% of the area income Funding of $329,682 is being provided for DAHC's Affordable Homeownershm Opportunity Program (AHOP) This will be used to assist in the acquisition and rehabilitation of single family homes in existing Denton neighborhoods After rehabilitation, the homes will be sold to first-time, low or moderate -income households Funds may be used for down payment and closing costs assistance for eligible homebuyers Up to $73,000 in AHOP funding may be used to pay rehabilitation and site improvement costs for the Toledo Court Affordable Housing Development These units will also be sold to first-time, low or moderate -income households The Mockingbird Lane Protect will culminate in the development of a minimum of 15 single family housing units on property donated to and acquired by the Denton Affordable Housing Corporation The project includes acquisition of property adjacent to the donated site off Mockingbird Lane, project planning, site development, construction and sale of the single-family units An unspecified amount of HOME program proceeds retained by DAHC from previous projects may be used for the project The Affordable Housine Construction Program previously administered by the City of Denton will be transferred to DAHC DAHC will use funding to acquire properties through purchase, donation or other methods properties suitable for construction of single family housing DAHC will construct single family units in such a way as to make the units affordable for persons of low and moderate -income Units will be sold to income - eligible households Not more than 7% of the funds may be used to assist buyers with down payment and closing costs Up to $30,000 of the funding provided under this program may be used to support DAHC's transitional housing program This program is a cooperative effort with HOPE, Inc F \SHARED\DEPnLOL\Our Documents\Contracts\99\DAHC Work State3rd amend doe ATTACHMENT`B" PROGRAM BUDGET Denton Affordable Housing Corporation Operating Expenses $86,500-HOME Including salaries, rent, utilities, telephone, supplies, postage and other eligible operating expenses Affordable Homeownership Opportunity Program $329,682-HOME Acquisition, rehabilitation, down payment and closing costs assistance Mockingbird Lane Project HOME Program Proceeds An unspecified amount of program proceeds retained by DAHC from previous projects as per the Based Agreement will be used for project delivery expenses (personnel, supplies, telephone, etc), housing and infrastructure construction costs Affordable Housing Construction Program $170,000-HOME Program Income* *Projected amount — actual amount will include remaining budget authority in the City's program as per amendment to 1994 Action Plan approved on May 12, 1998 F \SHARED\DEP ALGL\Our Documents\Contracts\99\DAHC Budget 3rd amend doe 4 f . p 1112, Fte E. og dui i �+�^Rg {P 2 ". gi 4 µ ..� E K' 12 E _ lul I Egg bi 10, "Ell MIR zt 117 — _ c� E �5 { P, I rgl 9 3IX I'�-� Weil&} � �mva'i P_ Jimk grg NIB g I Nsu 3 f y t Y WIN i = i$ gM