1999-281ORDINANCE NO qq~' ~ ~ /
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 prowde certain services for the
prowmon 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 anthonzed additional funding for
ongoing activities of the Denton Affordable Housing Corporation and the scope of work
for the Denton Affordable Housing CorporaUon 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
ad&tlonal fundmg from funds made avmlable by the U S Department of Housing and
Urban Development under the National Affordable Houmng Act and to prowde other
changes as set forth in the F~rst and Second Amendments to the Agreement, and
WHEREAS, the City Council now desires to amend the Agreement a third Ume 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 m the form of the attached
Exhibit "A" which is mcorporated hereto for all purposes, and further authorizes the City
Manager to execute smd Third Amendment
SECTION 2. That the City Council authorizes the expendature of funds for
operating costs and project funding for the Denton Affordable Housing Corporation,
included in the Third Amendment as Attachment "B", which includes addlUonal
funding m 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 lmme&ately upon ~ts
passage and approval
PASSED AND APPROVED th~s the ~ / ~
dayof//~/~vv~. -a--- ,
1999
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
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 stud Base
Agreement was thereafter modified by the parties in the First Amendment to smd Base
Agreement, approved by Denton City Ordinance 98-034 (the "FY97 Amendment" or the
"F~rst Amendment") and the Second Amendment to the stud 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 admlmstratlon, acqmsltlOn,
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 m 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 fundmg level due to the passage of the 1997 Action Plan,
and provide defimtlons 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
umts 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 w~th 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
WHEREAS, the City Cotmcfl has approved additional funding for the
CONTRACTOR and amended previous activities in accordance with their approval of
the 1999 Action Plan for Housing and Commtmay 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
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 m 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
mcorporated hereto 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 Assomat~on Any failure by
CONTRACTOR to comply with tbas subsection shall be considered a material
breach of this Agreement and shall result in the forfeiture of the $98,000 in
additional funding approved by Denton's City Council on July 27, 1999
L In consideration of the additional funding by CITY and for ot~
and valuable consideration, the receipt and sufficiency of wh_..~:l~ hereby
acknowledged by CONTRACTOR, CONTRACTOR fu_.gll.~r~ases, discharges,
and acquits CITY, 1ts officers and emplo_~w'ff6m, and agr_ees ._that the
cons~deranon expressed above ~CtlOn~of all a?ons,
causes of action, clal~ms four contnbu, tlo~
and lnde~ay growing out of any and all
ne~. o sta. tU.tory rights:
racles, breach of any duty of good faith and fair dealing, death, personal
Page 2
injuries, damage to reputation, pmn and suffenng, grief, bereavement,
injury, loss of earning capamty, loss of money, damage to property,
property, attorney's fees, pre- and post-judgment ~nterest, and all
causes of actmn whether known or unknown and whether herefore ~
owned or possessed by CONTRACTOR, ~ts officers or
Its officers or employees growing out of or any way
City Council and Its officers and
regard to the funding of Denton
part of the approval of Denton's 1999 Action P1
Development, including without
the stop work order, negotmtlons of any s
order, or any other actions
project known as 400
Toledo Court project being the:
near the 300 block
action ~n regard to this
of
agmnst CITY,
with the Denton
and action m
request as a
Housing and Community
actions with respect to
with respect to the stop work
the City Council with regard to the
(4MC) and also known as the
to be rehabilitated on or
in the City of Denton, Texas and any
or the funding of the Denton Affordable
Housing HOME Investment Partnerships Program funds
previous year CONTRACTOR does hereby agree to
~ndemmfy and harmless CITY, its officers and employees, of and from all
claims, costs, or expenses arising out of any ~njunes and damages
~ CONTRACTOR, Its officers or employees, as a result of the above-
facts and circumstances, including any of them connected thereto
prior to the date of the execution of th~s amendment
That subsection A of Section III CITY's and CONTRACTOR's Obllgat~ons of
the Base Agreement, as amended, is hereby amended to read as follows
A CITY ~n accordance with 24 CFR 92 208, Eligible CHDO Operating
Expenses, shall prowde funds m the amount of $86,500 or less to assist the
CONTRACTOR in the operation of the Denton Affordable Housing Corporation CITY
shall also promde an amount not to exceed $499,682 ("ProJect Funds") for specific
housing projects and programs as described ~n the Work Statement, Attachment "A"
Provided, however, that the CONTRACTOR shall make sure that ~ts project dehvery
expenses shall not exceed 10% of the total project cost as determined by the CITY
3
That save and except as amended hereby, the remmmng sections,
subsections, sentences and clause of the Base Agreement dated December 17,
1996, as amended by the F~rst Amendment dated February 17, 1998 and the
Second Amendment dated November 3, 1998, shall remain In full force and
effect
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IN WITNESS o£ which this Third Amendment has been executed on thru the
day
by
duly
CITY
of the
,'7/5-~z: of~, 1999 the authorized officmls
and the CONTRACTOR ~
CITY OF..DENTON, TEXAS /
jAEI'lxTNEISF~R WALTERS, CITY SECRE//T~
APPROVED ./IS TCKI~GAL FORM
DENTON AFFORDABLE HOUSING
CORPORATION
BzOA~ PRESIbENT ' ' '
ATTEST
Page 4
ATTACHMENT "A"
WORK STATEMENT
Denton Affordable Housing Corporatxon
The Denton Affordable Housing Corporation (DAHC) was developed to ~ncrease the
supply of affordable housmg m the Denton area The orgamzat~on is designed to carry
out the following actlwtles but is not hmlted to these admlmstratlon, rehablhtatlon,
acqmsxt~on, new construction, tenant-based rental assistance and public service programs
Expenditure of C~ty funds, lncludmg HOME proceeds, for housing projects is hmlted to
projects within the city limits of Denton DAHC's projects and programs will benefit
low and moderate income households Low and moderate ~ncome is defined as
households below 80% of the area income
Fun&ng of $329,682 ~s being provided for DAHC's Affordable Homeownershm
Onnortunitv Prooram (AHOP) This will be used to assist m the acquisition and
rehabflltatlon of single family homes m existing Denton neighborhoods After
rehabilitation, the homes will be sold to first-t~me, low or moderate-income households
Funds may be used for down payment and closing costs assistance for ehglble
homebuyers Up to $73,000 m AHOP funding may be used to pay rehabilitation and site
improvement costs for the Toledo Court Affordable Housln~ Develonment These
units will also be sold to first-time, low or moderate-income households
The M0ekin~b~rd Lane Proleet will culminate ~n the development of a minimum of 15
single family housing umts on property donated to and acquired by the Denton
Affordable Housing Corporation The project includes acqmslt~on of property adjacent to
the donated rote offMocklngb~rd Lane, project planning, site development, construction
and sale of the single-family units An unspecified amount of HOME program proceeds
retmned by DAHC from previous projects may be used for the project
The Affordable Housing Construction Pronram previously adm~nlstered by the C~ty of
Denton will be transferred to DAHC DAHC will use funding to acqmre properties
through purchase, donation or other methods properties statable for constmetmn of single
family housing DAHC will construct single family units m such a way as to make the
units affordable for persons of low and moderate-mcome Units will be sold to mcome-
ehg~ble households Not more than 7% of the funds may be used to asmst buyers wath
down payment and closing costs Up to $30,000 of the fimdmg provided under thru
program may be used to support DAHC's transitional housing program This program ~s
a cooperative effort with HOPE, Inc
F \SHARED~DEPT~LGL\Our Documents\Contracts\99\DAHC Work State3rd amend doc
ATTACHMENT "B"
PROGRAM BUDGET
Denton Affordable Housing Corporation
Operating Expenses $86,500-HOME
Including salaries, rent, ut:ht~es, telephone, supphes, postage and other eligible operating
expenses
Affordable Homeownersh~p Opportunity Program $329,682-HOME
Acqmmtlon, rehabilitation, down payment and closing costs assistance
Mockingbird Lane Project HOME Program Proceeds
An unspecW~ed amount of program proceeds retained by DAHC from prewous projects as per
the Based Agreement will be used for project dehvery expenses (personnel, supphes,
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 m the C~ty's
program as per amendment to 1994 Action Plan approved on May 12, 1998
F \SHARED\DEPT~LGL\Our Documents\Contcact s\99\DAHC Budget 3rd amend doc