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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 Page 3 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