1998-362 ORDINANCE NO qatg-.~d~
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 prowslon of afford-
able housmg 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 approvmg the 1998 Community Development Action
Plan, has authorized additional funchng for ongoing activities of the Denton Affordable Housing
Corporation and the scope of work for the Denton Affordable Housing Corporation has
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 avatlable by the U S Department of Hous,ng 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 COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION ~ 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 operattng
costs and,project funding for the Denton Affordable Housing Corporation, included in the Sec-
ond Amendment as an attached Exhibit "B", wluch includes additional funding in an amount not
to exceed $294,050
SECTION III That this orchnance shall become effective immediately upon its passage
and approval
JA~'LLER, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
HERBERT L PROUTY, CITY ATTORNEY
/
Page 2
SECOND AMENDMENT (FY98) TO AGREEMENT BETWEEN
THE CITY OF DENTON AND THE
DENTON AFFORDABLE HOUSING CORPORATION
Tl~s Second Amendment ("Second Amendment" or "FY98 Amendment") between the
City of Denton, Texas ("Denton") and the Denton Affordable Housing Corporation ("Contrac-
tor'') ~s intended by the parties herem to modify the Agreement between Denton and Contractor,
as approved by C~ty of Denton Ordinance 96-295 (the "Base Contract"), as smd Base Contract
was thereafter modified by the part,es in the F~rst Amendment to stud 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
Agreemeat with the Contractor to prowde admm~straUon, rehablhtatlon, acqms~t~on, new con-
struct~on, and tenant based rental development and public servme programs to promote afford-
able housing w~thm C~ty of Denton m return for Denton prowdmg an amount not to exceed
$20,000 to assist the Contractor m the operation of the Denton Affordable Housing Corporation,
and an additional $68,850 (proJect funds) for specffic housing projects descnbed in the Work
Statement, Attachment A, attached to the Base Agreement, and
WHEREAS, by Ordanance No 98-034, Denton authorized the City Manager to execute
the F~rst Amendment w~th the Contractor to extend the term, mwse the responmbthtles, increase
the funding level due to the passage of the 1997 Action Plan, and prowde defimtlons and uses for
program income and proceeds, and
WHEREAS, the C~ty Council has approved additional funding for the Contractor and
amended prewous activities m accordance w~th 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 obhgat~ons and to the performance and accomphshment of the conditions hereinafter
described
I
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 C~ty Request for such an adjustment must be m
writing and ~s to be submitted to the Community Development D~wslon, Department of
Planning and Development
Second Amendment to DAHC Contract - Page 1 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 m the amended Work Statement attached hereto as Attach-
ment "A" and mcorporated herein as if set forth at length, 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 incorporated herein as if set
forth at length, m 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 m the amended Attachment "A", Contractor will provide City wath a project
proforrna 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 IH City's and Contractor's Obligations of the Base
Agreemelat is hereby amended to read as follows
A City, m accordance with 24 CFR 92 208, Ehg~ble CHDO Operating Expenses,
shall provide funds m the amount of $66,500 or less to assist the Contractor in the opera-
tlon of the Denton Affordable Housing Corporation C~ty shall also provide an amount
not to exceed $421,682 ("ProJect Funds") for specific housing projects and programs as
described m 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 remmmng 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 remmn in full fume and effect
d h h ~,E~
IN ,WlTNI~SS of which this Second Amendment has been execute on t is t e -9 --
day of /[//~.t?~/'- , 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
MICrFI~A~L ~ )~Z(~Y i~IANAGER
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
ATTEST/
SECRETAI~[y
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 admlmstratlon, rehabilitation, acquisition, new construction,
tenant-based rental assistance and pubhc 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
Fundang of $251,682 is being provided for DAHC's Affordable Homeownershm Onnortunitv
~ Ttus will be used to assist in the acquisition and rehablhtatlon of single
family homes m 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 Mockmobird 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 Houslne Construction Pro,ram 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 tangle-family housing DAHC
will constYuct single family umts 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 prowded 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 Contxact - 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 m the base contract as amended m FY97
Affordable Homeownership Opportunity Program $251,682 (HOME Funds)
Acqmsltlon, rehabilitation, down payment and closing costs assistance NOTE $45,500
of tins 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 m the base contract as amended m 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 09/1/98- 01/01/99- 04/01/99- 07/01/99- 98 Contract Revised
12/31/98 03/31/99 06/30/99 09/30/99 Amendment Budget
Operations/Admm $6~012 50 $6~012 50 $6~012 50 $6,012 50 $24,050 $66,500
AHOP Program
Acquisition $100~000 Proceeds reinvested to produce additional umts $145,500 $251,682
Rehabilitation* $45,500 Proceeds reinvested to produce additional tm~ts
I
New Construction (in- $100,000 $40,000 Proceeds remvested $140,000 $140,000
t~ll)
Transitional Housing $30,000 $30,000 $30,000
Development
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 Amondment to DAHC Con~act - Page 6 of 6