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1998-034AN 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 prowde certain services for the prowslon of afford- able housing under the National Affordable Housing Act of 1990, as amended by the Housing Commumty Development Act of 1992, which Agreement was authorized by Ordmance 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 Corporatmn and the scope of work for the Denton Affordable Housing Corporation has creased, and WHEREAS, the City Council deems it in the public interest to amend the Agreement with the Denton Affordable Housmg Corporation to provide for such additional funding to be promded from fimds 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 an the First Amendment to the Agreement, NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I. That the City Council hereby approves the First Amendment to the Agree- ment between the Cxty of Denton and the Denton Affordable Housing Corporation, executed De- cember 17, 1996, substantmlly m the form of the attached Exhibit "A" which as incorporated herein for all purposes, and further anthonzes the City Manager to execute said First Amend- ment $]~CTION II. That the Cxty Council authorizes the expenditure of funds for operating costs andl project fundmg for the Denton Affordable Housing Corporation, included m the First Amendment as an attached Exhibit "B", wluch includes addmonal funding ~n an amount of $105, 282 SECTION III. That this ordinance shall become effective xmmedlately upon its passage and appr0val JAC~ ATTEST JENNIFER WALTERS, CITY SECRETARY HERBERT L PROUTY, CITY ATTORNEY 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 (heremaf~er referred to as "Denton") and the Denton Affordable Housmg Corporataon (heremafter referred to as "Contractor"), thas Agreement hereinafter referred to as "Base Agreement" WHEREAS, by Ordinance No 96-295, Denton authorized ats Caty Manager to execute an Agreement wath the Contractor to provide admamstrataon, rehabxlatataon, acquxsataon, new con- stmct~on, and tenant based rental development and pubhc servace programs to promote afford- able housing wathm Caty of Denton m return for Denton prowdlng an amount not to exceed $20,000 to assast the Contractor m the operation of the Denton Affordable Housing Corporataon, and an addattonal $68,850 (project funds) for specific housing projects described an the Work Statement, Attachment A, attached to the Base Agreement, and WHEREAS, the C~ty Councal has approved addxtaonal funding for the Contractor an cordance wath thear approval of the 1997 Commumty Development Actaon Plan, and adequate fundmg 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 obhgataons and to the performance and accomphshment of the condataons hereanafter described I That Sectaon I "Term" of the Base Agreement xs hereby amended to read as follows Thas Agreement shall commence on or as of September 1, 1996, and shall terminate on August 31, 2018, unless adjusted by the Caty Request for such an adjustment must be in wntmg and is to be submatted to the Community Development Office II That Sectxon II Responsabthtxes 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 responsxb~hty for the performance of all serv- aces and actlwtaes described an the amended Work Statement attached hereto as Attach- ment "A" and mcorporated herem as af set forth at length, an accordance v~th the amended Program Budget attached hereto as Attachment "B" and the amended Schedule of Contract Act~vataes attached hereto as Attachment "C" and incorporated herem as if set forth at length, an a satisfactory and efficxent manner as determined by Cxty, an accor- dance wath the terms hereto C Contractor agrees that all m&vldual projects under the Single Family Disposi- tion Program described m 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 Obhgatlons of the Base Agreement is hereby amended to read as follows A City, in accordance w~th 24 CFR 92 208, Ehglble CHDO Operating Expenses, shall provide funds in the amount of $42,450 or less to assist the Contractor in the opera- tlon 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 ars project delivery expenses shall not exceed 10% of the total project cost as determmed by the City IV That Section III City's and Contractor's Obligations of the Base Agreement is hereby amended by adding an additional subsection F, wfuch shall read as follows F That upon dlssolutiun of the Contractor, any remaamng 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 umts/projeets 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 an 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-ehgIble 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 m ,wntmg by the City Any income retained and used by the Contractor must be avail- able to the City as a mateinng contribution for the HOME program Upon request, Con- tractor will approve appropriate certifications stating funding is available as a HOME program match to the Clt3' VI That save and except as amended hereby, the remmnmg sections, subseeUons, sentences, and clauses of the Base Agreement dated December 17, 1996 shall remain m full force and ef- fect h een executed on tins the ,,v~[ · IN WITNESS of winch this First Amendment as b / y day of ]s-:~t~'?.iZl~'?J , 1998 by the duly authonzed officials of the CIty and the Contractor CITY OF DENTON TED BENAVIDES, CITY MANAGER ATTEST JENNIFER WALTERS, CITY SECRETARY HERBERT L PROUTY, CITY ATTOI~IEY DENTON AFFORDABLE HOUSING CORPORATION SECRETAR--~ Page 3 JAN ? ~ *T~,~ .... 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