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HomeMy WebLinkAbout1995-139E:\WPDOCS\ORD\DAH.O ORDINANCE NO. ?6- AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON AFFORDABLE HOUSING CORPORATION FOR AN INCREASE IN THE SUPPLY OF AFFORDABLE HOUSING IN THE CITY OF DENTON; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That the City Manager is hereby authorized to execute an Agreement Between the City of Denton and Denton Affordable Housing Corporation for an increase in the supply of affordable housing in the City of Denton, a copy of which is attached hereto and incorporated by reference herein. SECTION II. That the expenditure of funds as provided in the Agreement is hereby authorized. SECTION III. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the J " day of ��, 1995. BOB CASTLEBERRY, MAYO ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APP VED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: l CJi`--R— PCk4.&nk AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON AFFORDABLE HOUSING CORPORATION This Agreement Between the City of Denton and the Denton Affordable Housing Corporation ("Agreement") is made and entered into by and between the City of Denton, a Texas municipal corpora- tion ("CITY"), acting by and through its City Manager, pursuant to ordinance, and the Denton Affordable Housing Corporation, Denton, Texas a not -for -profit corporation, ("CONTRACTOR"). WHEREAS, CITY has received funds from the U. S. Department of Housing and Urban Development under the National Affordable Housing Act of 1990 as amended by the Housing and Community Development Act of 1992; WHEREAS, CITY has adopted a budget for such funds and included therein an authorized Program Budget for expenditure of funds for administration costs and project funding for the Denton Affordable Housing Corporation included as Attachment "B"; WHEREAS, CITY has designated the Community Development Office as the division responsible for the administration of this Agree- ment and all matters pertaining thereto; and WHEREAS, CITY wishes to engage CONTRACTOR to carry out such project; NOW, THEREFORE, the parties hereto agree, and by the execu- tion hereof are bound to the mutual obligations and to the per- formance and accomplishment of the conditions hereinafter de- scribed. I. TERM This Agreement shall commence on or as of June 15, 1995, and shall terminate on June 14, 2005, unless adjusted by the CITY. Request for such an adjustment must be in writing and is to be sub- mitted to the Community Development Office. II. RESPONSIBILITIES A. CONTRACTOR hereby accepts the responsibility for the per- formance of all services and activities, described in the Work Statement attached hereto as Attachment "A" and incorporated herein as if set forth at length, in accordance with the Program Budget attached hereto as Attachment "B" and incorporated herein as if set forth at length, in a satisfactory and efficient manner as deter- mined by CITY, in accordance with the terms herein. CONTRACTOR's executive director shall be CONTRACTOR's representative responsible for the management of all contractual matters pertaining hereto, unless written notification to the contrary is received from CON- TRACTOR, and approved by CITY. All housing projects and programs initiated as described in Attachment "A" shall have prior written approval of the CITY. Requests for approval shall be submitted to the Community Development Office at least 90 days before initiation of the project or program. B. The CITY'S Community Development Administrator will be CITY's representative responsible for the administration of this Agreement. C. CONTRACTOR shall comply with HUD Office of Management and Budget circulars A-122 and A-110, Attachments B, F, H, paragraph 2 and Attachment 0. D. CONTRACTOR shall request certification as a "Community Housing Development Organization" (CHDO) from the Texas Department of Housing and Community Affairs within Sixty (60) days after the execution of this Agreement. CONTRACTOR shall obtain CHDO Certi- fication from the State prior to any request for funding pursuant to this Agreement. E. CONTRACTOR shall not change the Program Budget without prior written approval from the CITY. III. CITY'S OBLIGATION A. CITY in accordance with 24 CFR 92.208, Eligible CHDO Operating Expense and Capacity Building Costs, shall provide funds in the amount of $25,000 or less ("Administrative Funds") to assist the CONTRACTOR in the administration of the Denton Affordable Housing Corporation. CITY shall provide an additional $50,000 ("Project Funds") for specific housing projects and programs to be approved by CITY prior to expenditure of Project Funds. B. CONTRACTOR agrees to hold and save harmless the CITY from any and all loss, cost, or damage of every kind, nature or descrip- tion arising under this Agreement. C. CITY shall be responsible for performing an environmental review to insure necessary compliances are met. D. This Agreement and the payments made hereunder are con- tingent upon receipt of U.S. Department of Housing and Urban De- velopment funds pursuant to the HOME Investment Partnership Pro- gram, and shall terminate immediately, not withstanding the pro- visions of Article XV hereof, should such funds be discontinued for any reason. IV. COMPLIANCE WITH STATE AND LOCAL LAWS A. The CITY and CONTRACTOR agree to perform their duties arising pursuant to the Agreement in compliance with the U.S. Department of Housing and Urban Development HOME Investment Partnership Program regulations at 24 CFR 92. B. CONTRACTOR shall comply with the uniform administrative requirements, as described in 24 CFR 92.505 in the HOME Investment Partnership Program regulations, a copy of which is attached PAGE 2 hereto. C. If it is determined that the use of the funding provided by the CITY does not meet the requirements of the U.S. Department of Housing and Urban Development HOME Investment Partnership Pro- gram, the CONTRACTOR shall reimburse the CITY for the costs deter- mined to be disallowed under the U.S. Department of Housing and Urban Development HOME Investment Partnership Program regulations. V. REPRESENTATIONS A. The CITY is providing funding to the CONTRACTOR in order to promote development of affordable housing. Use of funds for both administration and programming will meet this stated goal. B. The CITY is the only agent authorized to designate changes to the Program Budget or to approve specific projects and programs authorized pursuant to the non -administration portion of the Program Budget. VI. COVENANTS A. During the term of this Agreement, CONTRACTOR shall not, without the prior written consent of CITY's Executive Director for Planning & Development or his authorized representative change the use of the funding provided by the CITY unless: (1) The proposed change meets all requirement of the U.S. Department of Housing and Urban Development HOME Invest- ment Partnership Program, and (2) CONTRACTOR obtains the prior written consent of CITY'S Executive Director for Planning & Development or his/her authorized representative. VII. PROGRAM INCOME All fees collected by CONTRACTOR for services are considered Program Income, and shall be retained by the CONTRACTOR to be used for projects and programs as previously described. CONTRACTOR shall generate and maintain Fiscal records reflecting the use and disposition of Program Income. VIII. MAINTENANCE OF RECORDS A. CONTRACTOR agrees to maintain records that will provide accurate, current, separate, and complete disclosure of the status of the funds received pursuant to this Agreement and pursuant to any other applicable Federal and/or State regulations establishing standards for financial management. CONTRACTOR's record system shall contain sufficient documentation to provide detailed support and justification for each expenditure. Nothing in this Section PAGE 3 shall be construed to relieve CONTRACTOR of fiscal accountability and liability under any other provision of this Agreement or any applicable law. CONTRACTOR shall include the substance of this provision in all subcontracts. B. CONTRACTOR agrees to retain all books, records, docu- ments, reports, and written accounting policies and procedures pertaining to the operation of programs and expenditures of funds pursuant to this Agreement for the period of time and under the conditions specified by CITY. C. Nothing in the above subsections shall be construed to relieve CONTRACTOR of responsibility for retaining accurate and current records which clearly reflect the level and benefit of services provided pursuant to this Agreement. D. At any reasonable time and as often as CITY may deem necessary, the CONTRACTOR shall make available to CITY, or any of its authorized representatives, all of its records and shall permit CITY, or any of its authorized representatives to audit, examine, make excerpts and copies of such records, and to conduct audits of all contracts, invoices, materials, payrolls, records of personnel, conditions or employment and all other data relating to the program requested by said representatives. E. The CONTRACTOR shall give the City of Denton, the U.S. Department of Housing and Urban Development, or any of their duly authorized representatives, access to and the right to examine all books, accounts, records, reports, files and other papers belonging to or in use by the CONTRACTOR pertaining to this Agreement. Such rights to access shall continue as long as the records are retained by the CONTRACTOR. IX. REPORTS AND INFORMATION A. At such times and in such form as CITY may require, CON- TRACTOR shall furnish such statements, records, data and informa- tion as CITY may request and deem pertinent to matters covered by this Agreement. B. An audit must be conducted in accordance with 24 CFR parts 44 and 45 as applicable. CONTRACTOR shall submit a copy of said audit to the Community Development Office within ten days of receipt of the completed report. X. MONITORING AND EVALUATION The CITY shall conduct a performance review of CONTRACTOR on an annual basis or as otherwise deemed necessary by the CITY to evaluate compliance with the provisions of this Agreement as neces- sary in the performance of its duties of program accountability. PAGE 4 XI. INSURANCE An insurance policy acceptable to CITY, in CITY'S sole dis- cretion, shall be secured by the CONTRACTOR on an annual basis to cover liability. A copy of this policy shall be submitted to the Community Development Office within 30 days of contract execution and each year thereafter for the ten year contract period. XII. EQUAL OPPORTUNITY During the performance of this Agreement, the CONTRACTOR is subject to Executive Order 11246, as amended, and, therefore, agrees to the following: (1) The CONTRACTOR will not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, or familial status. The CONTRACTOR will take affirmative action to ensure that applicants who are employed are treated during employment without regard to their race, color, religion, sex, national origin, or familial status, concerning such employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or their apprenticeship. the CONTRACTOR agrees to post in conspicuous places, available to both employees and applicants for employment, notices to be provided by the CITY setting forth provisions of this nondiscrimina- tion clause. (2) The CONTRACTOR, in all solicitations or advertisements for employees placed by or on behalf of the CONTRACTOR, shall state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin, or familial status. XIII. CONFLICT OF INTEREST The CITY and CONTRACTOR state that to the best of their knowledge no member of the City of Denton, Texas, and no officer, employee, or agent of said authority who exercises any function or responsibilities in connection with this Agreement has a personal financial interest, direct or indirect, in this Agreement. XIV. POLITICAL OR SECTARIAN ACTIVITY A. None of the performance rendered hereunder shall involve any political activity (including, but not limited to, any activity to further the election or defeat of any candidate for public office) or any activity undertaken to influence the passage, defeat or final content of legislation. PAGE 5 B. None of the performance rendered hereunder shall involve or benefit in any, manner any sectarian or religious activity. XV. TERMINATION A. The CITY shall have the right to terminate this Agree- ment, in whole or in part, at any time whenever the CITY determines that the CONTRACTOR has failed to comply with any term of this Agreement. The CITY shall notify the CONTRACTOR in writing thirty (30) days prior to the date of termination, the effective date of such termination, and in the case of partial termination, the portion of the Agreement to be terminated. Property shall be sub- ject to disposition. B. The CITY shall have the right to terminate this Agreement for convenience, in whole or in part, with the consent of CONTRAC- TOR and when both parties agree upon the termination conditions, including the effective date and the portion to be terminated. C. The CONTRACTOR shall have the right to terminate this Agreement for convenience, in whole or in part, by written noti- fication to the CITY, which shall include the reason for such termination, the effective date and the portion to be terminated. If, in the case of a partial termination, it is the determination of CITY that the remaining portion of the award is not sufficient to accomplish the project as described in the Work Statement, CITY may require that the entire grant be terminated. XVI. INDEMNIFICATION A. It is agreed and understood by the parties that all employees and personnel furnished by the Denton Affordable Housing Corporation and engaged in the work of the Corporation shall not be deemed employees of the CITY and shall be responsible to and under the direction of the CONTRACTOR. B. For purposes of this Agreement, all official communica- tions and notices among the parties shall be deemed made as of the date mailed if sent postage paid to the parties and address set for below: TO CITY: City Manager City of Denton 215 E. McKinney St. Denton, Texas 76201 TO CONTRACTOR: Director Denton Affordable Housing Corporation 100 W. Oak, Suite 208 Denton, Texas 76201 PAGE 6 IN WITNESS OF WHICH is Agreem t has been executed on this the �— day of �.T 1995. ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APP VED S TO LEGAL FORM: MIKE BUCEK, ACTING CITY ATTORNEY BY: DENTON AFFORDABLE HOUSING CORPORA- TION BY,; 4 nx "BOARD PRESI ENT, Linnie McAdams AT T: -� Jane BurcTa Provo, Exec. Director E:\WPDOCS\K\DENTAFF.K PAGE 7 ATTACHMENT "A" WORKSTATEMENT Denton Affordable Housing Corporation The Denton Affordable Housing Corporation ("DAHC") was developed to increase the supply of affordable housing in the Denton area. Any of the following activities may be carried out: administration, rehabilitation, acquisition, new construction, tenant -based rental assistance, infrastructure construction related to housing developments and public service programs. Expenditures of City funds for housing projects is limited to projects within the city limits of Denton. DAHC's projects and programs will primarily benefit low and moderate income households. Low and moderate income is defined as households below 800 of the area median income. Most activities will produce income allowing DAHC to pay administrative costs and initiate new projects. PAGE 8 ATTACHMENT "B" PROGRAM BUDGET Administration Budget Salaries, FICA, Workers Compensation, Retirement and Health Insurance $ 15,000 Rent and Utilities 7,000 Telephone Office Supplies and Postage Total Project\Program Budget 2,000 1,000 $25,000 All projects or programs must receive approval from the City of Denton prior to expenditure of funds. All expenditures must be eligible under 24 CFR 92, HOME Program regulations. $50,000 PAGE 9