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2004-055ORDINANCE NO. d~7~d7/- ~),-~-' AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS APPROVING THE FOURTH AMENDMENT TO THAT AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON AFFORDABLE HOUSING CORPORATION; AUTHORIZING THE CITY MANAGER TO EXECUTE THE FOURTH AMENDMENT; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on October 17, 2000 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. 2000-385; and WHEREAS, on January 15, 2002 the City Council amended the contract with the Denton Affordable Housing Corporation to provide additional funding in accordance with their approval of the 2001 Action Plan for Housing and Community Development, which Amendment was authorized by Ordinance No. 2002-330; and WHEREAS, On October 8, 2002 and September 16, 2003 the City Council again amended the contract with the Denton Affordable Housing Corporation to provide additional funding in accordance with their approval of the 2002 Action Plan and the 2003 Action Plan through Ordinance No., 2002-330 and Ordinance No. 2003-290; and WHEREAS, the City Council by approving the second amendment to the 2003 Action Plan for Housing and Community Development, which amendment was approved through Resolution 2004-006 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 a reallocation of funding from the Nevada Court Development to the Affordable Housing Opportunity Program, 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 COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the City Council hereby approves the Fourth Amendment to the Agreement between the City of Denton and the Denton Affordable Housing Corporation, executed October 17, 2000, substantially in the form of the attached Exhibit "A" which is incorporated herein for all purposes, and further authorized the City Manager to execute said Fourth Agreement to the Agreement. SECTION 2. That the City Council authorizes the expenditure of funds for operating costs and project funding for the Denton Affordable Housing Corporation, included in the Fourth S/ourdocuments/ordinances/04/DAHC fourth amendment.doc Page 1 Amendment attached as Exhibit "A", which reallocates $156,000 in funding to the Affordable Housing Opportunity Program. SECTION 3. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND AePROVED this the ~/~ .day of ~~ ,2004. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY S/ourdocumentslordinanceslO41DAHC fourth amendment.doc Page 2 FOURTH AMENDMENT TO AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON AFFORDABLE HOUSING CORPORATION This Fourth 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. 2000-385, Denton authorized its City Manager to execute an Agreement with the Contractor to provide acquisition and renovation, and new construction to promoteaffordable housing in the City of Denton in return for Denton providing an amount not to exceed $192,167 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 2003 Action Plan for Housing and Community Development, and adequate funding has been obtained form the U.S. Department of Housing and Urban Development; WHEREAS, Resolution 2004-006 amended thc 2003 Action Plan to reallocate $156,000 in HOME funding from the Nevada Court Development to the Affordable Housing Opportunity Program administered by the Denton Affordable Housing Corporation; 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. That Section 1. "Term" of the Base Agreement is amended to read as follows: This Agreement shall commence on or as of September 1, 2000, and shall terminate on August 31, 2007, unless adjusted by the CITY. Request for such an adjustment must be in writing and is to be submitted to the Community Development Division. 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. 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 ofthe Base Agreement. That save and except as amended hereby, the remaining sections, subsections, sentences and clauses of the Base Agreement dated October 17, 2000 shall remain in full force and effect. 1N WITNESS of which this Fourth Amendment has been executed on this the ~/g~ day of ~t2~L ~/L/ ,2004, by the duly authorized officials of the City and the Contractor. u CITY OF DENTON CITY MANAGER ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY ATTEST: DENTON AFFORDABLE HOUSING CORPORATION MQADAMS - BOARD PRESIDENT BOARD SECRETARY 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: administration, rehabilitation, acquisition, new construction, and tenant-hased 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 funding in the amount of $470,550 will be used in the Program. Proceeds from the sale of properties will be placed in the AHOP program fund to be used to continue the program. No more than 10% of the HOME portion of the project sales proceeds may be utilized 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. 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-elig~le households. Not more than 10% of the total funding amount may be used to assist buyers with down payment and closing costs. The Nevada Court Project will culminate in the development of a minimum of 25 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 offMockingbird Lane, project planning, site development including sidewalks sanitary and storm sewers, water lines, and utility lines and housing construction. DAHC will also be responsible for sale of the completed single-family units. Down payment, closing cost assistance and some "gap" financing will be available to households purchasing the units. The Nevada Court project will be completed within five years from the date of this amendment. An unspecified amount of HOME program proceeds retained by DAHC from previous projects may be used for the project. ATTACHMENT "B" PROGRAM BUDGET Affordable Homeownership Opportunity Program $470,550 Affordable Housing Construction Program $113,867 Nevada Court Project - An unspecified amount of HOME proceeds may be used for this project.