2008-122siour documents\ordinances\08\denton at7ordable housing corp second amend ord 2006-07.doc
ORDINANCE NO. X008- 122
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS,
APPROVING THE SECOND AMENDMENT TO THAT AGREEMENT BETWEEN THE
CITYOF DENTON AND THE DENTON AFFORDABLE HOUSING CORPORATION;
AUTHORIZING THE CITY MANAGER TO EXECUTE THE SECOND AMENDMENT;
AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, on October 3, 2006 the City Council entered into an Agreement with the
Denton Affordable Housing Corporation to provide certain services for the provision 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. 2006-296; and
WHEREAS, on June 12, 2007 the agreement was amended to provide that the Denton
Affordable Housing Corporation would set forth, in written agreement with each homebuyer
participant a recapture provision to be enforced in the event that the homebuyer vacates the unit
for any reason; and
WHEREAS, the City Council, by approving the 2007 Action Plan for Housing and
Community Development, has authorized additional funding for ongoing activities of the Denton
Affordable Housing Corporation and the scope of work for the Denton Affordable Housing
Corporation has expanded; and
WHEREAS, the City Council deems 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 available by the U.S. Department of Housing and Urban
Development under the National Affordable Housing Act; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION 1. The City Council hereby approves the Second Amendment to the
Agreement between the City of Denton and the Denton Affordable Housing Corporation,
executed October 6, 2006, substantially in the form of the attached Exhibit "A" which is
incorporated herein for all purposes, and further authorizes the City Manager to execute said
Second Amendment to the Agreement.
SECTION 2. The City Council authorized the expenditure of funds for operating costs
and project funding for the Denton Affordable Housing Corporation, included in the second
Amendment attached as Exhibit "A", which includes additional funding in an amount of
$164,000.
SECTION 3. This ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the day of '2008.
PERRY McNEILL, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
Q~
BY.~~j Pi\Al
APPROVED AS TO LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
BY:
sAour documentskontracts\08\denton affordable housing corp second amend 2006 agreemcntdoc Exhibit A
SECOND AMENDMENT TO AGREEMENT BETWEEN
THE CITY OF DENTON AND THE
DENTON AFFORDABLE HOUSING CORPORATION
This Second Amendment to that certain Agreement between the City of Denton (hereinafter
referred to as "Denton") and the Denton Affordable Housing Corporation (hereinafter referred to
as "Contractor"), this Agreement hereinafter referred to as "Base Agreement," which is attached
hereto as Exhibit 1.
WHEREAS, by Ordinance No. 2006-296, the City of Denton authorized its City Manager
to execute an Agreement with the Contractor to provide acquisition and renovation, and new
construction to promote affordable housing in the City of Denton in return for Denton providing
an amount not to exceed $140,000 for affordable housing projects described in the Work
Statement, Attachment A, attached to the Base Agreement; and
WHEREAS, the City Council has approved additional funding for the Contractor in
accordance with their approval of the 2007 Action Plan for Housing and Community
Development, and adequate funding 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 obligations and to the performance and accomplishment of the conditions hereinafter
described.
1.
That Section 1. "Term" of the Base Agreement is amended to read as follows:
Ilis Agreement shall commence on or as of October 3, 2006, and shall terminate on July
31, 2009, unless adjusted by the CITY. Request for such an adjustment must be in writing and is to
be submitted to the Community Development Division.
2.
That Section 2. "Responsibilities" of the Base Agreement, subsection A is amended 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 incorporated herein as if set forth at length, in 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, in as satisfactory and efficient manner as determined by City in
accordance with the terms herein.
3.
That the Base Agreement is hereby amended by substituting amended Attachments "A",
"B", and "C" which are attached hereto and incorporated herein for all purposes for the original
Attachments "A", "B", "C" of the Base Agreement.
4.
That save and except as amended hereby, the remaining sections, subsections, sentences
and clauses of the Base Agreement dated October 3, 2006 and the first amendment, dated June
12°, 2007 shall remain in full force and effect.
IN W TNESS of which this Second Amendment has been executed on this the
day of 2008, by the duly authorized officials of the City and the
Contractor.
CITY OF DENTON
EO GE C. CAMPB LLL-~
CITY MANAGER
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY: 4"
APPROVED AS TO LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
BY:
DENTON AFFORDABLE HOUSING
CORPORATION
4-,.- G, Z.,-, -
Q
1✓IN
NIE MCADAMS
BOARD PRESIDENT
ATTEST:
BY: ll 44d~ _K/I
BOARD SECRETARY
siour documents\contraccs\Wdenton affordable housing core second amend 2006 agreementdoc
ATTACHMENT "A"
WORK STATEMENT AND PERFORMANCE OUTCOME GOALS
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 cant' out the following
activities but is not limited to these: administration, rehabilitation, acquisition, new construction,
tenant-based rental assistance and public service programs.
Expenditure 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 80% of the area median income.
The Affordable Homeownership Opportunity Program provides for acquisition, renovation and
sale of single-family units. HOME Program 2006-2008 funding in the amount of 5304,000 will be
used in the Program. Proceeds from the sale of completed projects will be placed in the AHOP
program fund for future projects. Each project must include a minimum of $5,000 and no more
than $35,000 in current HOME funding. On each project, a non-specified amount of funding must
be expended on either acquisition or rehabilitation of the unit. A non-specified amount of funding
must also be expended to provide homebuyer assistance and this amount will determine the extent
of the required affordability period. No more than 10% of the HOME portion of the project
sales/proceeds may be used for project delivery costs for the program. The HOME portion of the
proceeds is based on the percentage of HOME funds included in the project. A minitnum of eight
(8) units ivill be sold to low and moderate-income homebuvers
The Affordable Housing Construction Program provides funding to construct single-family
units. Properties suitable for single-family housing will be acquired through purchase or donation.
Units will be constructed in such a way as to make them affordable to low and moderate-income
households. Units will be sold to HOME-eligible households. Not more than 10% of the total
funding amount may be used to assist buyers with down payment and closing costs. A minimum of
one (I) unit will be constructed and sold to low and moderate income homebuvers
sAour documemskontmas\Wdenton affordable housing corp second arnend 2006 agreement.doc
ATTACHMENT "B"
PROGRAM BUDGET
Affordable Homeownership Opportunity Program $304,000*
Affordable Housing Construction Program no 2006-2007 funding*
* Both programs will also use program proceeds for projects.
s:\our documctn_ckomracts\08\denton affordable housing Corp second amend 2006 agreement.doc
ATTACHMENT "C"
SCHEDULE OF CONTRACT ACTIVITIES
Activity
Previously
April-July
Aug-Nov
Dec-Mar
April-July
TOTAL
i
Expended
2008
2008
2009
2009
'..W xl
.ta_ ,b .5.:
~Yyr~'a,aixo
'~rM1 l~i"~f at'~~•~ft
~~~.,k '4zY 3'S~i~il
''ti
'
'
'
Affordable Housing Opportunity
$87,000
$3,000
$70,000
$70,000
$42
000
3
~
F
si`;'
i
$304
000
Program - Acquisition,
,
,
Rehabilitation, Homeb..Ter Asst.
New Construction Program
Use of Program Proceeds to Construct Additional Unit(s)