2007-146s:\our documents\ordinances\07\dchfc hap ordinance.doc
ORDINANCE NO. ~QQ'J- /~~p
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS
APPROVING AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON
COUNTY HOUSING FINANCE CORPORATION; PROVIDING FOR THE USE OF FUNDS
FOR REPAIlZS TO HOMEBUYER HOUSING UNITS; 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 requested and was awarded $44,000 in funding from the Denton
County Housing Finance Corporation to improve housing conditions within the City of Denton;
and
WHEREAS, the City has an existing Homebuyer Assistance Program developed to assist
low and moderate-income homebuyers with repairs to their housing units, when necessary; and
WHEREAS, funding provided by the Denton County Housing Finance Corporation and
used by the City to support the Homebuyer Assistance Program can be used as match for the
Federal Home Investment Partnership Program; and
WHEREAS, the City Council deems it in the public interest to enter into an agreement
for housing program funding with the Denton County Housing Finance Corporation; 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 Denton County Housing Finance.Corporation to provide additional funding for the
City's Homebuyer Assistance Program currently funded through the Community Development
Block Grant and Home Investment Partnership programs.
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SECTION 2. The City Manager, or his designee, is hereby authorized to expend funds
for housing rehabilitation and reconstruction projects in accordance with the terms of the
attached agreement and to exercise all rights and duties of the City of Denton under the
Agreement.
SECTION 3. This ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the -~ day of _~~~~^~
2007.
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RRY R. cNEILL, MAYOR
s:\our documents\ordinances\07\dchfc hap ordinance.doc
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPROVED AS TO LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
BY:
DENTON COUNTY HOUSING FINANCE CORPORATION
FINANCIAL ASSISTANCE AGREEMENT
This Denton County Housing Finance Corporation Financial Assistance Agreement (the
"Agreement") is dated as of June 15, 2007, by and between the Denton County Housing
Finance Corporation (the "Corporation") and City of Denton, Texas, Community Development
Division (the "Recipient"), relating to the Recipient's Home Improvement Program.
RECITALS
WHEREAS, the Corporation is a duly created and existing housing finance corporation
organized under the laws of the State of Texas;
WHEREAS, the Corporation desires to improve the housing conditions within Denton
County, Texas;
WHEREAS, one manner in which the Corporation will improve the housing conditions
within Denton County, Texas, is to provide financial assistance to entities that satisfy the criteria
set forth below;
WHEREAS, the Recipient has determined that it satisfies and that it will satisfy the
service criteria and the fiscal and program criteria set forth below;
WHEREAS, the Recipient has applied to the Corporation for financial assistance;
WHEREAS, the Corporation desires to provide the Recipient with financial assistance as
more specifically set forth below, provided the Recipient meets the criteria and makes the
representations and warranties to the Corporation herein specified;
NOW, THEREFORE, in order to induce the Corporation to grant financial assistance to
the Recipient and in furtherance of the desire of the Corporation to improve the housing
conditions within Denton County, Texas and for other good and valuable consideration, the
sufficiency of which is hereby acknowledged by the parties hereto, the parties hereto agree as
fellows:
Representations and Warranties of Recipient
A. The Recipient hereby represents and warrants to the Corporation as follows:
1. The activity of the Recipient primarily benefits low income persons;
2. The services being provided by the Recipient are currently meeting an urgent
community need;
3. The services being provided by the Recipient are related to the provisions of
housing or housing rehabilitation;
4. The service being provided by the Recipient is cost effective;
5. The services being provided by the Recipient do not exceed existing levels of
need;
6. The financial assistance granted by the Corporation herein leverages funding
that the Recipient has from other sources; and
7. The services provided by the Recipient create measurable improvement in the
lives of citizens within Denton County, Texas.
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B. The Recipient further represents and warrants to the Corporation as follows:
1. The Recipient exercises fiduciary responsibility in regard to all of its funding and
funding activities;
2. The Recipient has completed a satisfactory independent audit or an auditor's
opinion statement;
3. The administrative costs of the Recipient are not excessive in relationship to the
Recipient's function;
4. The Recipient has established and meets or exceeds stated performance
objectives;
5. The Recipient has coordinated its services with providers of services which are
related to the services being provided by Recipient; or, if the Recipient has not
previously coordinated such services, the Recipient has the capacity to
coordinate such services;
6. The services provided by Recipient are conducted within a reasonable
timeframe;
7. The Recipient has a governing board that meets on a regular basis;
8. The Recipient operates with regular and meaningful reports being made which
depict its financial and operating conditions; and
9. The Recipient maintains a level of staffing that is sufficient to accomplish the
objectives of the Recipient.
Financial Assistance
A. The Corporation hereby agrees to provide financial assistance to the Recipient in the
amount of Forty-Four Thousand Dollars ($44,000), such financial assistance being
herein called the "Grant". The Grant made to the Recipient and to be evidenced by this
Agreement is conditioned upon the Recipient continually meeting the conditions
specified below in paragraph B of this Section II. The Recipient hereby accepts the
Grant and represents and warrants to the Corporation as set forth in paragraph B of this
Section II.
B. The Grant is hereby made to Recipient in consideration of the Recipient representing
and warranting to the Corporation and agreeing as follows:
1. The Grant will be used exclusively for housing purposes;
2. No administrative costs of Recipient will be paid with Grant funds; .
3. The Grant will be spent within eighteen (18) months of the date of execution of
this Agreement, unless otherwise approved in writing by the Board of Directors of
the Corporation; and
4. The Recipient will provide a financial report and a status report on the use of
Grant funds to the Corporation at least on a quarterly basis beginning with the
calendar quarter beginning October 1, 2007 and continuing until all the Grant
funds have been expended.
C. The Grant is hereby conditioned upon the satisfaction of the additional criteria, if any, set
forth in Exhibit A, which is attached hereto and incorporated herein for all purposes.
45926674.7 /09200068 2
Miscellaneous
A. The parties hereto acknowledge and agree that the Grant is subject to the Recipient
meeting and maintaining the representations and warranties specified in Section I and in
Section II.B hereof.
B. The parties hereto acknowledge and agree that failure of the Recipient to meet and
maintain the representations and warranties referred to in Section III.A. above may result
in a cancellation of the portion of the Grant that has not been funded.
C. The entry into this Agreement has been duly authorized by each of the parties hereto.
This Agreement shall be and is the entire agreement between the Corporation and the
Recipient as it relates to the Grant and shall supersede and cancel any prior agreements
as to the Grant.
D. This Agreement shall be governed by the laws of the State of Texas.
45926674.1/09200068
EXHIBIT A
Additional Criteria for Awarding the Grant
None
45926674.1/09200068
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
date first set forth above with the actual execution of this Agreement taking place on
"Corporation"
"Recipient" CITY OF DENTON, TEXAS
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Title: l,1 ~~l 1 ~ I FYI Q l~ ~I~
45926674.1 /09200068
4
DENTON COUNTY HOUSING FINANCE CORPORATION