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HomeMy WebLinkAbout1998-034ORDINANCE NO 3 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS AP- PROVING THE FIRST AMENDMENT TO THAT AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON AFFORDABLE HOUSING CORPORATION, AUTHORIZ- ING THE CITY MANAGER TO EXECUTE THE FIRST AMENDMENT AND TO EXPEND FUNDS WITH RESPECT TO THE FIRST AMENDMENT, AND PROVIDING FOR AN EF- FECTIVE 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 afford- able housing under the National Affordable Housing Act of 1990, as amended by the Housing Community Development Act of 1992, which Agreement was authorized by Ordinance No 96- 295, and WHEREAS, the City Council, by approving the 1997 Community Development Action Plan, 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 in- creased, and WHEREAS, the City Council deems it in the public interest to amend the Agreement with the Denton Affordable Housing Corporation to provide for such additional funding to be provided from funds made available by the U S Department of Housing and Urban Develop- ment under the National Affordable Housing Act and to provide other changes as set forth in the First Amendment to the Agreement, NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION 1. That the City Council hereby approves the First Amendment to the Agree- ment between the City of Denton and the Denton Affordable Housing Corporation, executed De- cember 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 First Amend- ment SECTION II. That the City Council authorizes the expenditure of funds for operating costs and1 project funding for the Denton Affordable Housing Corporation, included in the First Amendment as an attached Exhibit "B", which includes additional funding in an amount of $105, 282 SECTION III. That this ordinance shall become effective immediately upon its passage and approval PASSED AND APPROVED thus the �/ ih day of A nl� , 1998 �- JACK 11 I ER, MAYOR ATTEST JENNIFER WALTERS, CITY SECRETARY BY APPR ED AS LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY BY \\CH LGL\V0LI\9hnreddgANLGL\0ur Gamma.\Ord,..,,ACmhact Authod fi n\ Pim Am dmmt Ordjnmce dm Page 2 FIRST AMENDMENT TO AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON AFFORDABLE HOUSING CORPORATION This First Amendment to that certain Agreement between the City of Denton (hereinafter referred to as "Denton") and the Denton Affordable Housing Corporation (hereinafter referred to as "Contractor"). this Agreement hereinafter referred to as "Base Agreement " WHEREAS, by Ordinance No 96-295, Denton authorized its City Manager to execute an Agreement with the Contractor to provide administration, rehabilitation, acquisition, new con- struction, and tenant based rental development and public service programs to promote afford- able housing within City of Denton in return for Denton 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, the City Council has approved additional funding for the Contractor in ac- cordance with their approval of the 1997 Community Development Action Plan, and adequate funding has been obtained from the U S Department of Housing and Urban Development, 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 That Section I "Term" of the Base Agreement is hereby amended to read as follows This Agreement shall commence on or as of September 1, 1996, and shall terminate on August 31, 2018, unless adjusted by the City Request for such an adjustment must be in writing and is to be submitted to the Community Development Office II That Section H Responsibilities of the Base Agreement is hereby amended by attaching the amended Attachments "A", "B", and "C" and by amendmg subsections A and C to read as follows A Contractor hereby accepts the responsibility for the performance of all serv- ices and activities described in the amended Work Statement attached hereto as Attach- ment "A" and incorporated herein as if set forth at length, 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 incorporated herein as if set forth at length, in a satisfactory and efficient manner as determined by City, in accor- dance with the terms herein C Contractor agrees that all individual projects under the Single Family Disposi- tion Program described in the amended Attachment "A" to be assisted with HOME funds will have approval from the City Contractor also agrees that prior to the expenditure of HOME funds on the Mockingbird Lane Project, also described in the amended Attach- ment "A", Contractor will provide City with a project pro forma indicating all sources and uses of funds for the Project Contractor must also provide City with documentation of site and right-of-way control III That subsection A of Section III City's and Contractor's Obligations of the Base Agreement 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 $42,450 or less to assist the Contractor in the opera- tion of the Denton Affordable Housing Corporation City shall provide an additional amount not to exceed $151,682 ("Project Funds") for specific housing projects and pro- grams 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 IV That Section 1II City's and Contractor's Obligations of the Base Agreement is hereby amended by adding an additional subsection F, which shall read as follows F That upon dissolution of the Contractor, any remaining funds derived from the expenditure of the City's funds, hereinafter sometimes described as the City's HOME funds or HOME -funded projects, must be immediately returned to the City V That Section VII Program Income of the Base Agreement is hereby amended to read as follows HOME program income is defined as all fees and interest payments on HOME -assisted units/projects and any interest income on deposited HOME funds collected by the Con- tractor Program Income may be retained by the Contractor to be used for HOME - eligible activities and in accordance with the HOME program regulations Provided, however, that any interest on deposited HOME funds must be remitted to the City on a quarterly basis HOME program proceeds are defined as income from the sale of HOME -assisted hous- ing Proceeds may be retained by the Contractor for use on other HOME -eligible proj- ects in the City of Denton Page 2 Any income generated from the use of HOME funds, proceeds, or any income generated through subsequent use of these funds shall continue to be used by the Contractor for HOME -eligible projects/programs in the City of Denton Approval for use of the funds on projects or programs other than those identified in this Agreement must be approved in writing by the City Any income retained and used by the Contractor must be avail- able to the City as a matching contribution for the HOME program Upon request, Con- tractor will approve appropriate certifications stating funding is available as a HOME program match to the City VI That save and except as amended hereby, the remaining sections, subsections, sentences, and clauses of the Base Agreement dated December 17, 1996 shall remain in full force and ef- fect IN WITNESS of which this First Amendment has been executed on this the day of 2E f , 1998 by the duly authorized officials of the City and the Contractor CITY OF DENTON TED BENAVIDES, CITY MANAGER ATTEST JENNIFER WALTERS, CITY SECRETARY m APPRO,gED A9 TO LEGAL FORM HERBERGT�L PROUTY, CITY ATTOIJNEV. BY ` DENTON AFFORDABLE HOUSING CORPORATION OARD PRESIDENT ATTEST, SECRETAR \\CH LGL\V0Ll4hemd*pt"L\0w Do U\CmtmtuWmm Servim\DHA Pint Ammdm tdm Page 3 JAIM 2 ') j'33 C'" " 'TY DEVLLUNIAENT