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HomeMy WebLinkAbout1998-362ORDINANCE NO 7k-3�a AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS AP- PROVING THE SECOND AMENDMENT TO THAT AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON AFFORDABLE HOUSING CORPORATION, AUTHOR- IZING THE CITY MANAGER TO EXECUTE THE SECOND AMENDMENT AND TO EX- PEND FUNDS WITH RESPECT TO THE SECOND 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 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 1998 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, on February 17, 1998 the City Council approved the First Amendment to the 1996 Agreement, deeming 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 Development under the Na- tional Affordable Housing Act and to provide other changes as set forth in the First Amendment to the Agreement, and WHEREAS, the City Council now desires to amend the Agreement a second time to ex- tend its term, provide additional funding, and amend the budget, NOW, THEREFORE, THE COUINCIL OF THE CITY OF DENTON HEREBY ORDAINS SACTION I That the City Council hereby approves the Second Amendment to the Agreement between the City of Denton and the Denton Affordable Housing Corporation, exe- cuted December 17, 1996, substantially in the form of the attached Exhibit "A" which is incorpo- rated herein for all purposes, and further authorizes the City Manager to execute said Second Amendment SECTION II That the City Council authorizes the expenditure of funds for operating costs and,prolect funding for the Denton Affordable Housing Corporation, included in the Sec- ond Amendment as an attached Exhibit "B", which includes additional funding in an amount not to exceed $294,050 SECTION III That this ordinance shall become effective immediately upon its passage and approval \SOH LOUVOLMSHAP�EY LW rNwmm"dwcaP9 HA Smod Amin wOWIv tdoc PASSED AND APPROVED this the _3Ay day of Q , 1998 KLLER, MAYOR i� ATTEST JENNIFER WALTERS, CITY SECRETARY BY di�'ll AA --- APPlaVED A TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY \\CH LGLW0LAshwedWepMW0w Dmm mw\Ordjnmcee\98\DHAC Second Ammdment Ordinmw dw Page 2 SECOND AMENDMENT (FY98) TO AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON AFFORDABLE HOUSING CORPORATION This Second Amendment ("Second Amendment' or "FY98 Amendment') between the City of Denton, Texas ("Denton") and the Denton Affordable Housing Corporation ("Contrac- tor") is intended by the parties herein to modify the Agreement between Denton and Contractor, as approved by City of Denton Ordinance 96-295 (the "Base Contract'), as said Base Contract was thereafter modified by the parties in the First Amendment to said Base Contract, approved by Denton City Ordinance 98-034 (the "FY97 Amendment' or the "First Amendment') 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, by Ordinance No 98-034, Denton 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, the City Council has approved additional funding for the Contractor and amended previous activities in accordance with their approval of the 1998 Action Plan for Housing and Community Development, and adequate funding has been obtained from the U S Department of Housing and Urban Development, and desires to further extend the term of the Base Contract 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 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, 2020, unless adjusted by the City Request for such an adjustment must be in writing and is to be submitted to the Community Development Division, Department of Planning and Development Second Amendment to DAHC Contract — Page i of 6 II That Section II Responsibilities of the Base Agreement is hereby amended by attaching the amended Attachments "A", "B", and "C" and by amending 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 also agrees to complete the Mockingbird Lane Project within a five-year period Prior to expenditure of HOME proceeds funding on the project, also described in the amended Attachment "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 $66,500 or less to assist the Contractor in the opera- tion of the Denton Affordable Housing Corporation City shall also provide an amount not to exceed $421,682 ("Project Funds") for specific housing projects and programs as described in the Work Statement, Attachment "A" Provided, however, that the Con- tractor shall make sure that its project delivery expenses shall not exceed 10% of the total project cost as determined by the City IV That save and except as amended hereby, the remaining sections, subsections, sentences, and clauses of the Base Agreement dated December 17, 1996, as amended by the First Amend- ment dated February 17, 1998, shall remain in full force and effect IN.WITN4SS of which this Second Amendment has been executed on this the day of 1998 by the duly authorized officials of the City and the Contractor Second Amendment to DAHC Contract — Page 2 of 6 CITY OF DENTON, TEXAS 'MIOTMEL JEZ TY MANAGER ATTEST JENNIFER WALTERS, CITY SECRETARY BY OalYl Jl'l jv�' ztlalLta�' APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY ATTEST SECRET Y \\CH LGL\VOLI\ohara Wtp GL\Our Da nb\Contracts\Humnn Servim\DHAC Sewnd Amendment dw Second Amendment to DAHC Contract — Page 3 of 6 ATTACHMENT"A" WORK STATEMENT Denton Affordable Housing Corporation The Denton Affordable Housing Corporation (DAHC) 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 $251,682 is being provided for DAHC's Affordable Homeownership 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 The Mockingbird Lane Project 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 Housing Construction Program previously administered by the City of Denton will be transferred to DAHC DAHC will use funding to acquire through purchase, do- nation, 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 Second Amendment to DAHC Contract — Page 4 of 6 ATTACHMENT`B" AMENDED PROGRAM BUDGET Denton Affordable Housing Corporation Operating Expenses $66,500 (HOME Funds) Including salaries, rent, utilities, telephone, supplies, postage and other eligible operating expenses This second contract amendment (FY98) increases by $24,050 the $42,450 previously budgeted in the base contract as amended in FY97 Affordable Homeownership Opportunity Program $251,682 (HOME Funds) Acquisition, rehabilitation, down payment and closing costs assistance NOTE $45,500 of this amount was previously budgeted for the Mockingbird Lane Project, and trans- ferred to this program as per the May 12, 1998 amendment to the 1996 Action Plan This second contract amendment (FY98) increases by an additional $100,000 the $106,182 previously budgeted in the base contract as amended in FY97 ($251,682 = $106,182 + $100,000 + $45,500 transferred from prior Mockingbird Lane Project funding) Mockingbird Lane Project $0 (HOME Program Proceeds Only) An unspecified amount of program proceeds retained by DAHC from previous projects as, per the Base Agreement will be used for project delivery expenses (personnel, sup- plies, telephone, etc), housing and infrastructure construction costs This second contract amendment (FY98) eliminates the $45,500 previously budgeted in the base contract as amended in FY97, to provide additional funding for the AHOP program Affordable Housing Construction Program $170,000 (est. HOME Program Income)* *Projected amount — actual amount will include remaining budget authority in the City's program as per amendment to 1994 Combined Final Statement, approved on May 12, 1998 This second (FY98) Second Amendment to DAHC Contract — Page 5 of 6 ATTACHMENT "C" 1998 Contract Amendment SCHEDULE OF CONTRACT ACTIVITIES Activity /1/98 01/01/99- 03/31/99 04/01/99- 06/30/99 07/01/99- 09/30/99 98 Contract Amendment Revised Bud et Operations/Admm t12/31/98 $6 012 50 $6 012 50 $6,012 50 $24,050 $66,500 AHOP Program Acquisition $100 000 Proceeds reinvested to produce additional units $145,500 $251,682 Rehabilitation* $45,500 Proceeds reinvested to produce additional units New Construction (in- fill $100,000 $40,000 Proceeds reinvested $140,000 $140,000 Transitional Housing Development $30,000 $30,000 $30,000 TOTAL $281 512 50 $46,012 50 $6 012 50 $6,012 50 $339,550 $488,182 * Includes $45,500 transferred from the Mockingbird Lane project as included in approved amendment to the 1996 Action Plan Second Amendment to DAHC Contract — Page 6 of 6