2006-060S:\Our Documents\Ordinances\06\Denton Affordable Housing Ord 2006.doc
ORDINANCE NO. ~DOh O(o 0
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS
APPROVING AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON
AFFORDABLE HOUSING CORPORATION; PROVIDING FOR THE TERMS OF SAID
CONTRACT; AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT
AND TO EXPEND FUNDS WITH RESPECT TO THE AGREEMENT; AND PROVIDING
FOR AN EFFECTIVE DATE.
WHEREAS, the City has received funds from the U.S. Department of Housing and
Urban Development under the National Affordable Housing Act of 1990 as amended by the
Housing and Community Development Act of 1992; and
WHEREAS, the City has adopted a budget for such funds included therein an authorized
program budget for expenditure of funds, for operating costs and project funding for the Denton
Affordable Housing Corporation ("DAHC"); and
WHEREAS, the City Manager has determined that the DAHC is the only state-certified
community housing development organization ("CHDO") that includes the required number of
low income citizens from the City on its board of directors necessary to satisfy federal
requirements to serve the City's geographical area and that DAHC has provided management
services to the City to provide affordable housing within the City which as significantly
benefited the community; and
WHEREAS, DAHC has a demonstrated history of significant service to the community
in the area of affordable housing; and
WHEREAS, this Agreement, therefore, qualifies as a sole source procurement in
accordance with §252.022(7)(f) of the TEX. LOC. GOVT CODE and does not need to be
competitively bid; and
WHEREAS, DAHC is a neighborhood-based non-profit organization and this Agreement
is also authorized by §373.005 of the TEX. LOC. GOVT CODE to meet the needs and
objectives of the City's Community Development Plan; and
WHEREAS, the City Council deems it in the public interest to enter into an agreement
for an affordable housing program with the DAHC; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The City Council hereby approves the attached Agreement between the
City and the DAHC to provide for an affordable housing program in accordance with the terms
of this Agreement, which Agreement is made a part of this ordinance for all purposes, and
authorizes the City Manager to execute this Agreement.
S:\Our Documents\Ordinances\06\Denton Affordable Housing Ord 200(i.doc
SECTION 2. The City Council authorizes the expenditure of funds for operating costs
and project funding for the DAHC in accordance with the terms of the attached Agreement.
SECTION 3. This ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the o? I'Sc day of ~_ , 2006.
EULINE BROCK, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY~ vV
APPROVED AS TO LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
BY:
4~LTYB. ~4tli W RICAIS-I~TmNO/~BC AYY1a0f Cm~u_leee
AGREEMENT BETWEEN THE CITY OF DENTON
AND THE nENTON AFFORDABLE HOUSING CORPORATION
This Agreement between the City of Denton and the Denton Affordable. Housing
Corporation ("Agreement") is made and entered into by and between the City of Denton, a Texas
municipal corporation ("CITY"), acting by and- through its City Manager, pursuant to ordinance,
and the Denton Affordable Housing Corporation, Denton, Texas a certified non-profit community .
housing development corporation, ("CONTRACTOR").
WHEREAS, CITY has received funds from the U. S. Department of Housing and Urban
Development under the Natiorial Affordable Housing .Act of 1990 as amended by the Housing and
Community Development Act of 1992, the Home Investment Partnership Program, CFDA Number
14.239.
WHEREAS, CITY has adopted a budget for such funds and included therein an authorized
Program Budget for expenditure of funds for prevision of an affordable housing program by the
Denton Affordable Housing Corporation included as Attachment "B";
WHEREAS, CITY has designated the Community Development Division as the division
responsible for the administration of this Agreement and all matters pertaining thereto; and
WHEREAS, the City Manager has determined that CONTRACTOR is the only state-
certified community housing development organization (CHDO) that includes the required number
of low-income citizens from the CITY on its board of directors to satisfy federal requirements
necessary to serve the CTTY's ,geographical azea; that the CONTRACTOR has provided
management services to the CITY to promote affordable housing within the CITY which has
significantly benefited the community; and CONTRACTOR has a demonstrated history of
significant service to the community in the area of affordable housing; and
WHEREAS, CITY wishes to engage CONTRACTOR to carry out such project;
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:
TERM
This Agreement shall commence on or as of January 25, 2006, and shall temrinate on
December 31, 2006, 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.
RESPONSIBILITIES
A. CONTRACTOR hereby accepts the responsibility for the performance of all
services and activities, described in the Work Statement attached hereto as Attachment "A" and
incorporated herein as if set forth at length, in accordance with the Program Budget attached hereto
as Attachment "B" and the Schedule of Contrect Activities attached hereto as Attachment "C" and
incorporated herein as if set forth at length, and as otherwise set forth herein, in a,satisfactory and
efficient tnamter as determined by CITY, in accordance with the terms herein.
B. CONTRACTOR'S executive director shall be CONTRACTOR'S representative
responsible for the management of all contractual matters pertaining hereto, unless written notifica-
tion to the contrary is received from CONTRACTOR, and approved by CITY.
C. CONTRACTOR agrees that all individual projects under the Affordable Housing
Opportunity Program and the New Construction Program described in Attachment "A" to be
assisted with HOME funds will have prior approval from the CITY of Denton. CONTRACTOR
agrees that project delivery costs paid with HOME funds or HOME procceds will not exceed more
than 10% of the total project cost as determined by the CITY.
D. The CTI'Y's Community Development Administrator will be CiTY's representative
responsible for the administration of this Agteemenk
E. CONTRACTOR shall be certified as a "Community Housing Development
Organization" (CHDO) with the State of Texas and the City of Denton. CONTRACTOR shall
maintain CHDO Certification for the duration of the contract term.
F. CONTRACTOR shall not request disbursement of funds until they are needed for
payment of eligible costs. The amount of each request will be limited to the amount needed as per
92.504 (c)(3)(viii).
G. CONTRACTOR shall not change the Program Budget without prior written
approval from the CITY.
H. CITY shall be responsible for petfomring a general environmental review to insure
necessary compliances are met.
I. CONTRACTOR shall be responsible for performing asite-specific enviroumental
review prior to acquisition of properties W be used for affordable housing projects. The site-
specific review must be submitted to the Community Development Division prior to final project
approval.
J. CONTRACTOR shall conduct a public heating at least once amrually to review
proposed and in-progress activities and receive citizen input. Hearing(s) will be advertised at least
15 days in advance. Advertising, at a m;n;mum, must include publication in a newspaper with local
circulation. The heating may be combined with CONTRACTOR'S annual membership meeting.
A w,mms~nr of comments from the public hearing will be submitted to the Community
Development Division within 30 days of the date of the pnblic hearing.
Page 2 of 14
K. CONTRACTOR shall provide timely notice to "neighborhood" residents prior to
increasing the number of units in the area by more than two single family or four multifamily units,
or prior to renovating more than five units. Notice will include contact information or identification
of opportrmities for residents to comment on the proposed development. CITY staff will detemrine
"neighborhood" boundaries.
3.
CITY'S & CONTRACTOR'S OBLIGATIONS
A. CITY shall provide funds in the amount of $105,015 or less in project funds to the
CONTRACTOR for specific housing projects and programs as described the Work Statement,
Attachment "A"
B. CONTRACTOR may request a maximum of $30,000 in 2005 '06 fiords per unit.
Additional project costs may be paid with program proceeds and funds from other sources.
C. CONTRACTOR agrees to hold and save harmless the CITY, its officers and
employees from any and all loss, cost, oz damage of every kind [including, property damage, bodily
injury or death], nature or description arising under this Agreement.
D. This Agreement and the payments made hereunder are contingent upon receipt of
U.S. Departiment of Housing and Urban Development funds pursuant to the HOME Investment
Patmership Program, and shall terminate immediately, not withstanding the previsions of Article
XDC hereof, should such funds be discontinued for any reason.
E. The CONTRACTOR may not request disbursement of funds until they are needed
for payment of elig'ble costs. The amount of each request by the CONTRACTOR shall be limited
to the amount needed in accordance with 24 CFR 92.504 (cx3xviii) and shall involve the activities
set forth in the "Contract Activity Schedule" attached as Attachment C.
F. CONTRACTOR may not request reimbursement for expenditures that occurred
more than ninety (90) days prior to the submission of the reimbursement request to the Community
Development Division.
G. Upon dissolution of the CONTRACTOR any remaining fiords or assets derived
from the expenditure of the CTTY's fiords, hereinafter sometimes described as the CTTY's HOME
funds, proceeds or HOME-funded projects, must be immediately returned to the CITY.
4.
COMPLIANCE WITH FEDERAL, STATE AND LOCAL LAWS
A. The CITY and CONTRACTOR agree to perform their duties arising pursuant to the
Agreement in compliance with the U.S. Department of Housing and Urban Development HOME
Investment Partnership Program regulations at 24 CFR 92.
B. CONTRAC I'OR shall comply with all prescribed pmcadures regarding
nondiacriTM+~ ~ 'on and equal opportunity, affirmative marketing, displacement and relocation, labor
Page 3 of 14
relations, lead-based paint and conflict of interest provisions described in 24 CFR 92 subpart H and
24 CFR 92.504.
C. CONTRACTOR agrees to ensure that all HOME-assisted housing or housing
identified as match for the HOME program meets all affordability requirements identified in 24
CFR 92.252 or 92.254. CONTRACTOR further agrees to develop a deed of gust for use with all
HOME-assisted units that incorporates these requirements, including remedies for breach of the
agreement provisions. CONTRACTOR will provide the CITY with a copy of the deed of tnrst with
provisions described above for approval before the sale of any HOME-assisted units•
D. CONTRACTOR agrees that as a certified Community Housing Development
Corporation, they will comply with 24 CFR 92.300 and 92.301.
E. if it is detemrined that the use of the funding provided by the CITY does not meet
the requirements of the U.S. Department of Housing and Urban Development HOME Inveshnent
partnership Program, the CONTRACTOR shall reimburse the CfTY for the costs deternuned to be
disallowed under the U.S. Department of Housing and Urban Development HOME Investment
Partnership Program regulations.
F. CONTRACTOR agrees that all housing assisted under this agreement will meet the
property standards requirements in 24 CFR 92.251 and lead-based paint standards in 24 CFR
92.355.
G. CONTRACTOR agrees to comply with displacement and relocation requirements at
24 CFR 92.504 and 92.353.
H. CONTRACTOR agrees to comply with procurement requirements at 24 CFR 84.44;
84.45; 84.46; 84.47 and 84.48.
L CONTRACTOR ogees to comply with all applicable Federal laws, laws of the
State of Texas and ordinances of the City of Denton.
5.
REPRESENTATIONS
A. The CITY is providing funding to the CONTRACTOR in order to promote
development of affordable housing. Use of funds for programming will meet this stated goal.
B. The CTTY is the only agent authorized to designate changes to the Program Budget
or to approve specific projects and programs authorized pursuant to the aoa-administration portion
of the Program Budget.
C. CONTRACTOR assures and guarantees that it possesses the legal authority,
pursuant to aay proper, appropriate and official motion, resolution or action passed or taken, to
enter into this Agreement.
D. The person or persons signing and executing this Agreement on behalf of
CONTRACTOR, do hereby warrant and guarantee that he, she, or they have been fully authorized
Page 4 of 14
by CONTRACTOR to execute this Agreement on behalf of CONTRACTOR and to validly and
legally bind CONTRACTOR to all terms, performances and provisions herein set forth.
E. CITY shall have the right, at its option, to either temporarily suspend or permanently
terminate this Agreement if there is a dispute as to the legal authority of either CONTRACTOR or
the person signing the Agreement to enter into flue Agreement. CONTRACTOR is liable to CITY
for any money it has received from CITY for performance of the provisions of this Agreement if
CITY has suspended or terminated this Agreement for the reasons enumerated in this Section.
F. CONTRACTOR agrees that the funds and resources provided CONTRACTOR
under the terms of this Agreement will in no way be substituted for funds and resources from other
sources, nor in any way serve to reduce the resources, services, or other benefits which would have
been available to, or provided through, CONTRACTOR had this Agreement not been executed.
6.
PROGRAM INCOME
A. HOME program income is defined as all fees and interest payments on HOME-
assisted uoits/projects and any interest income on deposited HOME funds or program pr+~eeds
collected by the CONTRACTOR Program income may be retained by the CONTRACTOR to be
used for HOME-eligible activities included in the Work Statement included herein as Attachment
"A". Provided, however that any interest on deposited HOME funds must be remitted to the CITY
on a quarterly basis.
B. HOME program proceeds are defined as income from the sale of HOME-assisted
housing. Proceeds may be retained by the CONTRACTOR for use on other HOME-eligible
activities included in the Work Statement included here as Attachment "A".
C 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-eligible activities included in the Work Statement in the City of Denton. Use of the
funds on projects or programs other than those identified in this Agreement must be approved in
writing by the CITY. Any income retained and used by the CONTRACTOR must be available to
the CTI'Y as a matching contribution for the HOME program. Upon request, CONTRACTOR will
approve appropriate certifications stating that funding is available as a HOME program match to
the CITY.
7.
MAINTENANCE OF RECORDS
A. CONTRACTOR agrees to maintain records that will provide accurate, current,
separate, and complete disclosure of the status of the funds received pursuant to this Agreement and
pursuant to any other applicable Federal and/or State regulations establishing standards for financial
management. CONTRFrCTOR's record system shall contain sufficient documentation to provide
detailed support and justification for each expenditure. Nothing in this Section shall be construed
to relieve CONTRACTOR of fiscal accountability and liability rmder any other provision of this
Agreement or any applicable law. CONTRACTOR shall include the substance of this provision in
all subcontracts.
Page 5 of 14
B. CONTRACTOR agrees to retain all books, records, documents, reports, and written
accounting policies and procedures Pertaining to the operation of programs and expenditures of
funds pursuant to this Agreement for the period of time and under the conditions specified by
CITY.
C. CONTRACTOR shall submit a copy of each amoral independent audit or any
organizational audit conducted, to the Community Development Division within 30 days of the
date of completion.
D. Nothing in the above subsections shall be construed to relieve CONTRACTOR of
responsibility for retaining accurate and current records, wlvch clearly reflect the level and benefit
of services, provided pursuant to this Agreement.
E. At any reasonable time and as often as CITY may deem necessary, the
CONTRACTOR shall make available to CITY, or any of its authorized representatives, all of its
records and shall permit CITY, or any of its authorized representatives to audit, examine, make
excerpts and copies of such records, and to conduct audits of all contracts, invoices, materials,
payrolls, records of persomrel, conditions or employment and all other data relating to the program
requested by said representatives.
F. The CONTRACTOR shall give the City of Denton, the U.S. Department of
Housing and Urban Development, or any of their duly authorized represcetatives, access to and the
right to examine all books, accounts, records, reports, files and other papers belonging to or in use
by the CONTRACTOR pertaining to this Agreement Such rights to access shall continue as long
as the CONTRACTOR is required to retain the records.
8.
REPORTS AND INFORMATION
A. CONTRACTOR shall provide quarterly financial and beneficiary reports that shall
contain such records, data and information as CITY may request and deem pertinent to matters
coveted by this Ageement. Reports shall be due to the Community Development Division within
45 days of the end of the quarter. CONTRACTOR shall provide any additional information as
requested by the CITY within 10 days.
B. CONTRACTOR shall submit copies of all public meeting advertisements and
residents notifications setting forth the time and place thereof, including without limitation board of
director meetings, to the Community Development Division office at least 72 hours prior to the
meeting in accordance with Section 16 of this Agreement.
9.
INSURANCE
A. CONTRACTOR shall observe sound business practices with respect to providing
such bonding and insurance as would provide adequate coverage for services offered under this
Agreement
B. The premises on and in which the activities described in Exhibit A are conducted,
Page 6 of 14
and the employees conducting these activities, shall be covered by premise liability insurance, com-
monly referred to as "gwrrer/Tenant" coverage with CITY named as an additional insured. Upon
request of CONTRACTOR, CTfY may, at its sole discretion, approve alternate insurance wverage
arrangements.
C. CONTRACTOR will comply with applicable workers' compensation statutes and
will obtain employers' liability coverage where available and other appropriate liability coverage for
Program participants, if applicable.
D. CONTRACTOR will maintain adequate and contimrous liability insurance on all
vehicles owned, leased or operated by CONTRACTOR All employees of CONTRACTOR who
are required to drive a vehicle in the normal scope and course of their employment must possess a
valid Texas drives license and automobile liability insurance. Evidence of the employee's current
possession of a valid license and insurance must be maintained on a current basis in
CONTRACTOR'S files.
E. Actual losses not covered by ~ncnranre as required by this Section are not allowable
costs under this Agreement, and remain the sole responsibility of CONTRACTOR
F. The policy or policies of insurance shall contain a clause which requires that CfI'Y
and CONTRACTOR be notified in writing of any cancellation or change in the policy at least thirty
(30) days prior to such change or cancellation.
10.
EQUAL OPPORTUNITY
During the performance of this Agreement, the CONTRACTOR is subject to Executive
Order 11246, as amended, and, therefore, agrees to the following:
(1) The CONTRACTOR will not discriminate against any employee or applicant for
employment because of race, color, religion, sex, national origin, or familial status.
The CONTRACTOR will take affirmative action to ensure that applicants who are
employed are treated during employment without regard to them race, color,
religion, sex, national origin, or familial status, concerning such employment,
upgrading, demotion, or transfer, recruitment or recnritment advertising; layoff or
termination; rates of pay or their apprenticeship. The CONTRACTOR agrees to
post in conspicuous places, available to both employees and applicants for
employment, notices to be provided by the CITY setting forth provisions of this
aondiscriminationclouse.
(2) The CONTRACTOR, in all solicitations or advertisements for employees placed by
or on behalf of the CONTRACTOR, shall state that all qualified applicants will
receive consideration for employment without regard to race, color, religion, sex,
national origin, or familial status:.
Page 7 of 14
11.
CONFLICT OF INTEREST
A. CONTRACTOR agrees to comply with the federal regulations at 24 CFR 92.356.
B. CONTRACTOR covenants that neither it nor any member of its governing body
presently has any interest, direct or indirect, which would conflict in any manner or degree with the
performance of services required to be performed under this Agreement. CONTRACTOR further
covenants that in the Performance of this Agreement, no person having such interest shall be
employed or appointed as a member of its governing body.
C. CONTRAC rOR further covenants that no member of its governing body or its
staff, subcontractors or employees shall possess any interest in or use this position for a purpose that
is or gives the appearance of being motivated by desire for private gain for themselves, or others,
particularly those with which they have family, business, or other ties.
D. No officer, member, or employee of CITY and no member of its governing body
who exercises any function or responsibilities in the review or approval of the undertalting or
carrying out of this Agreement shall participate in any decision relating to the Agreement which
affects his personal interest or the interest in any corporation, partnership, or association in which
he has director indirect interest.
12.
POLITICAL OR SECTARIAN ACTIVITY
A. None of the perfomrance rendered hereunder shall involve any political activity
(including, but not limited to, any activity to further the election or defeat of any candidate for
public office) or any activity undertaken to influence the Passage, defeat or final content of
legislation
B. None of the performance rendered hereunder shall involve or benefit in any, mamrer
any sectarian or religious activity.
13.
WARRANTIES
CONTRACTOR represents and warrants that:
A. All information, reports and data heretofore or herea8er requested by CITY and
famished to CITY, are complete and accurate as of the date shown on the infomsation, data, or
report, and, since that date, have not undergone any significant change without written notice to
CITY.
B. Any supporting financial statements heretofore requested by CITY and famished to
CITY, are complete, accurate and fairly reflect the financial condition of CONTRACTOR on the
date shown on said report, and the results of the operation for the period coveted by the report, and
that since said date, there has been no material change, adverse or otherwise, in the financial
condition of CONTRACTOR.
Page 8 of 14
C. No litigation or legal proceedings are presently pendutg or threatened agautst
CONTRACTOR
D. None of the provisions herein contravenes or is in conflict with the authority under
which CONTRACTOR is doing business or with the provisions of any existing indenture or
agreement of CONTRACTOR
E. CONTRACTOR has the power to enter into this Agreement and accept payments
hereunder, and has taken all necessary action to authorize such acceptance under the terms and
conditions of this Agreement.
F. None of the assets of CONTRACTOR is subject to any lien or encumbrance of any
character, except for current taxes not delinquent, except as shown in the financial statements
famished by CONTRACTOR to CITY.
G. Each of these representations and warranties shall be continuing and shall be
deemed to have been repeated by the submission of each request for payment.
14.
COVENANTS
A. During the period of time that payment may be made hereunder and so long as any
payments remain unliquidated, CONTRACTOR shall not, without the prior written consent of the
Community Development Administrator or her authorized representative:
(1) Mortgage, pledge, or otherwise encumber or suffer to be encumbered, any of
the assets of CONTRACTOR now owned or hereaRer acquired by it, or permit any
pro-existing mortgages, liens, or other encumbrances to remain on, or attached to, any assets
of CONTRACTOR which are allocated to the performance of this Agreement and with
respect to which CITY has ownership hereunder.
(2) Sell, assign, pledge, transfer or otherwise dispose of accounts receivables,
notes or claims for money due or to become due.
(3) Sell, convey, or lease all or substantial part of its assets.
(4) Make any advance or loan to, or incur any liability for any other fum,
person, entity or corporation as guarantor, surety, or accommodation
endorser.
(5) Sell, donate, loan or transfer any equipment or item of personal. property
purchased with funds paid to CONTRACTOR by CITY, unless CITY
authorizes such transfer.
B. CONTRACTOR agrees, upon written request by CITY, to require its employees to
attend training sessions sponsored by the Community Development Division.
Page 9 of 14
15.
MONITORING AND EVALUATION
A. CITY shall perform on-site monitoring of CONTRACTOR's performance under this
Agreement.
B. CONTRACTOR agrees that CITY may carry out monitoring and evaluation
activities to ensure adherence by CONTRACTOR to the Work Statement, and Program Goals and
Objectives, which are attached hereto as Attachment A, as well as other provisions of this
Agreement.
G CONTRACTOR agrees to cooperate fully with CTfY in the development,
implementation and maintenance of record-keeping systems and to Provide data determined by
CITY to be necessary for CITY to effectively fulfill its monitoring and evaluation responsibilities.
D. CONTRACTOR agrees to cooperate m such a way so as not to obstruct or delay
CITY in such monitoring and to designate one of its. staff members to coordinate the monitoring
process as requested by CITY staff.
E. CITY shall provide a written evaluation of contract perfomrance to the
CONTRACTOR within 30 days of the monitoring. Written notification will be provided to staff
and the board of directors.
p, Within 60 days of notification by the CTfI', the CONTRACTOR shall provide
complete responses include a statement acknowledging any corrective action required to be taken
due to City of Denton monitoring findings and concerns.
G. CONTRACTOR shall submit copies of any fiscal, management, or audit reports by
any of CONTRACTOR'S funding or regulatory bodies to CITY within fifteen (15) working days of
receipt by CONTRACTOR
16.
DIItECTORS' MEETINGS
A. CONTRACTOR shall ensure that al] board of directors and membership meetings
are publicly advertised and an agenda posted with the City Secretary and the Community
Development Division at least 72 hours prior to the meeting. Such notice shall inchtde an agenda
and a brief description of the matters to be discussed.
B. CONTRACTOR understands and agrees that CITY representatives shall be afforded
access to all of the Board of Directors' meetings.
C. Minutes of all meetings of CON'I'RACTOR's governing body shall be available to
CITY within ten (10) working days of approval.
Page 10 of 14
17.
NEPOTISM
CONTRACTOR shall not employ in any paid capacity any person who is a member of the
immediate family of any person who is currently employed by CONTRACTOR, or is a member of
CONTRACTOR's governing board. The term "member of immediate family" includes: wife,
husband, son, daughter, mother, father, brother, sister, in-laws, aunt, uncle, nephew, niece,
step-parent, step-child, half-brother and half-sister.
18.
SUSPENSION OF FUNDING
A. Upon determination by CITY of CONTRACTOR's failure to timely and properly
perform each of the requirements, time conditions and duties provided herein, CITY, without
limiting any rights it may otherwise have, may, at its discretion, and upon ten (10) working days
written notice to CONTRACTOR, withhold further payments to CONTRACTOR Such notice
may be given by mail to the Executive Nicer and the Board of Directors of CONTRACTOR The
notice shall set forth the default or failure alleged, and the action required for cure.
B. The period of such suspension shall be of such duration as is appropriate to
accomplish corrective action, but in no event shall it exceed thirty (30) calendar days. At the end of
the suspension period, if CITY determines ffie default or deficiency has been satisfied,
CONTRACTOR may be restored to full compliance status and paid all eligible fiords withheld or
impounded during the suspension period. if, however, CfTY determines that CONTRACTOR has
not come into compliance, this Agreement may be terminated under Section 19 of this Agreement.
19.
TERMINATION
A. The CITY shall have the right to terminate this Agreement, in whole or in part, at
any time whenever the CITY determines that the CONTRACTOR has failed to comply with any
term of this Agreement. The CTfY shall notify the CONTRACTOR in writing thirty (30) days
prior to the date of termination, the effective date of such termination, arm in the case of partial
termination, the portion of the Agreement to be terminated. Property shall be subject to disposition.
B. The CITY shall have the right to terminate this Agreement for, convenience, in
whole or in part by written notification to the CONTRACTOR which shall include the reason for
such termination, the effective date and the portion to be terminated.
C. IF, in the case of a partial termination, it is the determination of CfTY that .the
.rma,'ning portion of the award is not sufficient to accomplish the project as described in the Work
Statement, CTfY may require that the entire grant be terminated.
20.
INDEMNIFICATION
A. It is eapressly understood and agreed by both parties .hereto that CITY is
Page 11 of 14
contracting with CONTRACTOR as an Independent CONTRACTOR and that as such,
CONTRACTOR shall save and hold CITY, its officers, agents and employee harmless from
all tiabr7ity of any eaters or Idnd, including costs sad expenses for, or on account of, any
claims, audit exceptions, demands, snits or damages of any character whatsoever resaHing in
whole or in part from the performance or omission of any employee, agent or representative
of CONTRACTOR
B. CONTRACTOR agrees to provide the defense for, and to indemnify and bold
harmless CITY its agents, employees, or contractors from any and all ch~ims, snits, tenses of
action, demands, damages, losses, attorneys fees, expenses, and liability arising out of the use
of these rnntracted fends and program administration and implementation except to the
extent caused by the willful act or omission of CITY, its agent4, employees, or contractors.
21.
NOTICE
For purposes of this Agreement, all official communications and notices among the parties
shall be deemed made as of the date mailed if sent postage paid to the parties and address set for
below:
City Manager
City of Denton
215 E. McKinney St.
Denton, Texas 76201
Director
Denton Affordable Housing Corporation
604 N Bell Avenue
Denton, Texas 76209
22.
VENUE
This Agreement shall be interpreted in accordance with the laws of the State of Texas aad
venue of any litigation concerning this Agi~eement shall be in a court of competent jurisdiction
sitting in Denton County, Texas.
23.
CONSOLIDATION AGREEMENT
This Agreement consolidates and replaces all previous Agreements between CITY and
CONTRACTOR sad all Amendments to those Agreements except where otherwise expressed
herein. Provided, however, that CONTRACTOR shall be required to maintain all affordability
requirements on all HOME funded projects, shall fully perform all continuing obligations required
under these previous Agreements aad applicable state, federal and local laws end shall continue to
use all HOME proceeds firm any CITY-funded projects since CONTRACTOR's inception for
HOME-eligible activities as described in this Ageement and as may be required by law.
Page 12 of 14
IN WITNESS OF WHICH this Agreement has been executed on this the a ~~ day of
~~'I.G~ /J./.l~ .2006.
--~
CITY OF DENTON
CITY MANAGER
ATTEST:
JENNIFER WALTERS, CTI'Y SECRETARY
o,~ r
APPROVED AS TO LEGAL FORM:
EDW
BY:
DENTON AFFORDABLE HOUSING
CORPORATION
O~IDENT
ATTEST:
SECRETARY
Page 13 of 14
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 carry 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 A8'rdable Homeownership Opportunity Program Provides for acquisition, renovation and
sale ofsingle-family units. HOME Program 2005-2006 funding in the amount of $105,015 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 $30,000 in 2005-'06 HOME finding. On each project, anon-specified amounn of funding
must be expended on either acquisition or rehabilitation of the unit. Anon-specified amount of
funding must also be expended to provide homebuyer assistance and this amount will detemtine the
extent of the required atl'ordability period. No more than 10°/a of the HOME portion of the project
sales proceeds maybe used for project delivery costs for the program. The HOME portion of the
procceds is based on the percentage of HOME funds included in the project. A m=~~^~+^~ of fn+.r /41
- '77 ha enl`i to Inw rznil nanrata-inr%emv )rnmrh~9~cre-
The Affordable Hoasmg Construction Progrsm provides funding to construct smglo-famrly
units. Properties suitable for singlo-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 paymerrt and closing costs. d.minimum_oj<'
FEB 1 3 2006
ATTACFIIv1IIdT "B"
PROGRAM BUDGET
Affordable Homeownership Opportunity Program $lOS,O1S.00
Affordable Housing Construction Program *no 20052006 funding
* Both programs will also use program proceeds for projects.
ATTACHMENT "C"
SCHEDULE OF CONTRACT ACTIVITIES
Acti ' Mar- a ~ Jwie- t-Oct Nov- tal
Affordable Housing Oppordmity Program - 30,000 $30,000 $30,000 $15,015 $105,015
Acquisition, Rehabilitation, Homebuyer
New Construction Program I Use of Program Proceeds to Construct Additional Unit(s)