2004-227
FILE REFERENCE FORM
2004-227
X Additional File Exists
Additional File Contains Records Not Public, According to the Public Records Act
Other
FILE(S) Date Initials
Addendum to Funding Agreement r original is attached] 12/08/04 JR
First Amendment to Agreement [original is attached] 02/02/07 JR
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ORDINANCE 9
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS
APPROVING AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE
CUMBERLAND PRESBYTERIAN CHILDREN'S HOME; PROVIDING FOR THE USE OF
FUNDS FOR DEVELOPMENT FOR TRANSITIONAL HOUSING; 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 construction of four transitional housing units to be
owned and managed by the Cumberland Presbyterian Children's Home; and
WHEREAS, the Cumberland Presbyterian Children's Home has developed a program to
assist potentially homeless families that will reside in the housing units constructed through the
use of City of Denton HOME funding; and
WHEREAS, the City Council deems it in the public interest to enter into an agreement
for a transitional housing program with the Cumberland Presbyter/an Children's Home; 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 Cumberland Presbyterian Children's Home to provide for transitional housing units
and a supportive services program for residents 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 or his designee to execute this Agreement.
SECTION 2. That the City Council authorizes the expenditure of funds for construction
of four transitional housing units to be owned and managed by the Cumberland Presbyterian
Children's Home in accordance with the terms of the attached Agreement.
SECTION 3. That this ordinance shall become effective immediately upon its passage
and approval.
PASSED AND APPROVED this thc/'~~-/dayof &~U..~
,2004.
EULINE BROCK, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
HERBERT L. PROUTY, CITY ATTORNEY
AGREEMENT BETWEEN THE CITY OF DENTON
AND THE CUMBERLAND PRESBYTERIAN CHILDREN'S HOME
This Agreement between the City of Denton and the Cumberland Presbyterian Children's
Home ("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 Cumberland Presbyterian Children's Home, 1304 Bernard Street, Denton, Texas a non-
profit corporation, ("CONTRACTOR").
WHEREAS, 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;
WHEREAS, CITY has adopted a budget for such funds and included therein an authorized
Program Budget for expenditure of funds for provision of a transitional housing program and
development of transitional housing units by the Cumberland Presbyterian Children's Home
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, CITY wishes to engage CONTRACTOR to can'y 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.
This Agreement shall commence on or as of August 15, 2004, and shall terminate on
August 15, 2025, unless adjusted bythe CITY. Request for such an adjustment must be in writing
and is to be submitted to the Community Development Division, 101 S Locust Ste 500, Denton TX
76201.
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
Pa~e 1
incorporated herein as if set forth at length, in accordance with the Program Budget attached hereto
as Attachment "B" and the Schedule of Contract Activities attached hereto as Attachment "C"
incorporated herein as if set forth at length, and as otherwise set forth herein, in a satisfactory and
efficient manner 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. The CITY's Community Development Administrator will be CITY's representative
responsible for the administration of this Agreement.
D. CONTRACTOR shall comply with HUD Office of Management and Budget
circulars A-122 and the regulations found at 24 CFR Part 84.
E. 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)(2)(vii).
F. CONTRACTOR shall not change the Program Budget without prior written
approval from the CITY.
CITY'S & CONTRACTOR'S OBLIGATIONS
A. CITY shall provide funds in the amount of $350,000 or less in project funds to the
CONTRACTOR for specific housing projects and programs as described in the Work Statement,
Attachment "A".
B. CONTRACTOR agrees to hold and save harmless the CITY, its officers and
employees from any and all loss, cost, or damage of every kind [including, property damage, bodily
injury or death], nature or description arising under this Agreement.
C. CITY shall be responsible for performing an environmental review to insure
necessary compliances are met.
D. This Agreement and the payments made hereunder are contingent upon receipt of
U.S. Department of Housing and Urban Development funds pursuant to the HOME Investment
Partnership Program, and shall terminate mediately, not withstanding the provisions of Article
XIX 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 eligible costs. The amount of each request by the CONTRACTOR shall be limited
Pa~e 2
to the amount needed in accordance with 24 CFR 92.504 (c)(2)(vii) and shall involve the activities
set forth in the "Contract Activity Schedule" attached as Attachment C.
F. Upon dissolution of the CONTRACTOR any remaining funds or assets derived
from the expenditure of the CITY's funds, hereinafter sometimes described as the CITY's HOME
funds, proceeds or HOME-funded projects, must be immediately returned to the CITY.
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. CONTRACTOR shall comply with the uniform administrative requirements, as
described in 24 CFR 92.505 in the HOME Investment Partnership Program regulations.
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 as applicable.
D. If it is determined 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 Investment
Partnership Program, the CONTRACTOR shall reimburse the CITY for the costs determined to be
disallowed under the U.S. Department of Housing and Urban Development HOME Investment
Partnership Program regulations.
E. CONTRACTOR shall comply with all applicable Federal laws and regulations at 24
CFR 92 subpart H. Subpart H prescribes procedures for compliance in the following areas:
nondiscdm'mation and equal opportunity, affinnative marketing, displacement and relocation, labor
relations and conflict of interest
F. CONTRACTOR agrees that all housing assisted under this agreement will meet the
property standards requirements in 24 CFR 92.251 and the lead-based paint requirements in part 35,
subparts A, B, J, K, M and R upon project completion.
SubpartF.
CONTRACTOR agrees to comply with all project requirements in 24 CFR Part 92,
J. CONTRACTOR agrees to comply with all applicable Federal laws, laws of the
State of Texas and ordinances of the City of Denton.
Page 3
REPRESENTATIONS
A. The CITY is providing funding to the CONTRACTOR in order to promote the
expansion of an existing transitional housing program for low-income households. Use of funds for
programming will meet this stated goal.
B. The CITY is the only agent authorized to designate changes to the Program Budget
or to approve specific projects and programs authorized pursuant to the non-administration portion
of the Program Budget.
C. CONTRACTOR assures and guarantees that it possesses the legal authority,
pursuant to any 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
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 fight, 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 this 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
trader 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.
PROGRAM INCOME
A. HOME program income is defined as all fees and interest payments on HOME-
assisted units/projects and any interest income on deposited HOME funds or program proceeds
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
"B". Provided, however that any interest on deposited HOME funds must be remitted to the CITY
on a quarterly basis.
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
Page 4
writing by the CITY. Any income retained and used by the CONTRACTOR must be available to
the CITY as a matching contribution for the HOME program. Upon request, CONTRACTOR will
approve appropriate certifications stat'rog that ftmding is available as a HOME program match to
the CITY.
MAINTENANCE OF RECORDS
A. CONTRACTOR agrees to mainta'm 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. CONTRACTOR's record system shall cont~fm 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 under any other provision of this
Agreement or any applicable law. CONTRACTOR shall include the substance of this provision in
all subcontracts.
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. Nothing in the above subsections shall be construed to relieve CONTRACTOR of
responsibility for retaining accurate and current records, which clearly reflect the level and benefit
of services, provided pursuant to this Agreement.
D. At any reasonable time and as otten 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 personnel, conditions or employment and all other data relating to the program
requested by said representatives.
E. The CONTRACTOR shall give the City of Denton, the U.S. Department of
Housing and Urban Development, or any of their duly authorized representatives, 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 cont'mue as long
as the CONTRACTOR is required to retain the records.
Pa~e 5
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
covered by this Agreement. CONTRACTOR shall provide any additional information as requested
bythe CITY within 10 days.
B. An audit must be conducted in accordance with 24 CFR parts 44 and 45 as
applicable. CONTRACTOR shall submit a copy of said audit to the Community Development
Division within ten days of receipt of the completed report.
e
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,
and the employees conducting these activities, shall be covered by premise liability insurance, eom-
monly referred to as "Owner/Tenant" coverage with CITY named as an additional insured. Upon
request of CONTRACTOR, CITY may, at its sole discretion, approve alternate insurance coverage
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 continuous 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 driver's 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 insurance 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 CITY
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.
Page 6
G. Insurance to provide cost replacement will be carried on aH transitional
housing units based on the replacement cost of the structure.
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 their race, color,
religion, sex, national origin, or familial status, conceming such employment,
upgrading, demotion, or transfer; recruitment or recruitment 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
nondiscrimination clause.
(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.
11.
CONFLICT OF INTEREST
A. 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.
B. CONTRACTOR further covenants that no member of its governing body or its
staff, contractors 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.
C. 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 undertaking or
canying out of this Agreement shall participate in any decision relating to the Agreement which
affects his/her personal interest or the interest in any corporation, partnership, or association in
Page 7
which he/she has direct or indirect interest.
12.
POLITICAL OR SECTARIAN ACTIVITY
A. None of the performance 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, manner
any sectarian or religious activity.
13.
WARRANTIES
CONTRACTOR represents and warrants that:
A. All information, reports and data heretofore or hereafter requested by CITY and
furnished to CITY, are complete and accurate as of the date shown on the information, 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 furnished 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 covered by the report, and
that since said date, there has been no material change, adverse or othenvise, in the financial
condition of CONTRACTOR.
C. No litigation or legal proceedings are presently pending or threatened against
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
furnished by CONTRACTOR to CITY.
Page 8
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. CONTRACTOR agrees to execute a lien that will be placed on the property assisted
with HOME funds. The lien will name the CITY as the primary beneficiary for a period not to
exceed twenty years.
B. 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 hereafter acquired by it, or permit any
pre-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 finn,
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 fimds paid to CONTRACTOR by CITY, unless CITY authorizes such
transfer.
C. CONTRACTOR agrees, upon written request by CITY, to require its employees to
attend training sessions sponsored by the Community Development Division.
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
Page 9
Agreement.
C. CONTRACTOR agrees to cooperate fully with CITY 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 in 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 performance to the
CONTRACTOR within 30 days of the monitoring.
F. Within 60 days of notification by the CITY, 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 C1TY within five (5) working days of
receipt by CONTRACTOR.
16.
DIRECTORS' MEETINGS
A. CONTRACTOR shall ensure that the CITY is notified of all meetings, regular and
special called, of the board of directors. Notice should be received by the CITY at least 72 hours
prior to the meeting. Such notice shall include 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 CONTRACTOR's governing body shall be available to
CITY within ten (10) working days of approval.
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.
Page 10
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 fights 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 Officer 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 the default or deficiency has been satisfied,
CONTRACTOR may be restored to full compliance status and paid all eligible funds withheld or
impounded during the suspension period. If, however, CITY 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 CITY shall notify the CONTRACTOR in writing thirty (30) days
prior to the date of termination, the effective date of such termination, and 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. The CONTRACTOR shall have the right to terminate this Agreement for
convenience, in whole or in part, by whtten notification to the CITY, which shall include the reason
for such temaination, the effective date and the portion to be terminated.
D. If, in the case of a partial termination, it is the determination of CITY that the
remaining portion of the award is not sufficient to accomplish the project as described in the Work
Statement, C1TY may require that the entire grant be terminated.
20.
Page 11
INDEMNIFICATION
A. It is expressly understood and agreed by both parties hereto that CITY is
contracting with CONTRACTOR as an independent CONTRACTOR and that as such,
CONTRACTOR shall save and hold CITY, its officers, agents and employees harmless from
all liability of any nature or kind, including costs and expenses for, or on account of, any
claims, audit excepfions, demands, suits or damages of any character whatsoever resulting 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 hold
harmless CITY its agents, employees, or contractors from any and all claims, suits, causes of
action, demands, damages, losses, attorneys fees, expenses, and liability arising out of the use
of these contracted funds and program administration and implementation except to the
extent caused by the wilfful act or omission of CITY, its agents, employees, or contractors.
21.
NOTICE
For purposes of this Agreement, all official communications and notices among the parties
shall be deemed made as o£ the date mailed if sent postage paid to the parties and address set for
below:
Community Development Administrator
City of Denton
101 S Locust Ste 500
Denton, Texas 76201
TO CONTR ACTOR
Executive Director
Cumberland Presbyterian Children's Home
PO Drawer G
Denton, Texas 76202-1657
22.
VENUE
This Agreement shall be interpreted in accordance with the laws of the State of Texas and
venue of any litigation concerning this Agreement shall be in a court of competent jurisdiction
sitting in Denton County, Texas.
~ INWITN~SS OF been executed on tlfis the //~/day of
,2004.
~gLk-~z~Lt.~__, WHICH this Agreement has
Page 12
CITY OF DENTON
MICHAEL A. CONDUFF, ~Jtr MANAGER
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
HERBERT L. PROUTY, CITY ATTORNEY
ATTEST:
CUMBERLAND PRESBYTERIAN
CHILDREN'S HOME
BOA~fl3 IflRESIDENT '
SE~6,.ETARY '
Pa~e 13
ATTACHMENT "A"
WORK STATEMENT
Cumberland Presbyterian Children's Home
Transitional Housing Program
Funding provided will assist in the construction of two duplex living units of
approximately 2,200 per duplex. Each of the four living units will have two
bedrooms, two baths, a kitchen, dining area and living area
Cumberland Presbyterian Children's Home (CPCH) will use the units constructed
with City of Denton HOME funding to house single-parent families participating in
a transitional housing program. The goal of the "Single Parent Family" program is
to support single-parent families and help them reach self-sufficiency. The program
provides residential care for single parents and their children for up to twelve
months. Housing is provided with rent charged on a graduated scale. The first two
months are rent-flee and residents will then begin paying some rent up to a
maximum of $300 per month for the final two months. Utilities are provided flee of
charge. Along with housing, the program also provides case management and
provides family therapy and counseling in the areas of finance, education,
employment, parenting and life skills. Families set goals and are expected to seek
employment or job training and education that will lead to employment. Residents
will be evaluated every three months and approved for continuation in the program
based on specific criteria.
Page 14
ATTACHMENT "B"
PROJECT BUDGET
Construction
$3307000
Professional/Architectural/Engineering Fees
TOTAL PROJECT BUDGET
$20~000
$350,000
* Please note, funds for architectural and engineering fees may be reallocated for
construction costs.
Page 15
ADDENDUM TO FUNDING AGREEMENT BETWEEN
CITY OF DENTON AND CUMBERLAND PRESBYTERIAN CHILDREN'S
HOME
The following provision is incorporated into the Agreement dated December 3, 2004 and
will control to the extent of any conflict:
· 1. To secure and execute the promise in paragraph 14, A Of the agreement. The
payment and obligations of the Agreement will be secured by all of the fights, title,
interest, liens, powers and equities in, to and against the grantor's interest in real
property, personal property thereon or used in connection therewith covering certain
lands in the County of Denton and State of Texas, given and provided for in a certain
deed of trust bearing even date herewith, executed by the grantor hereof to City Manager,
City of Denton, Texas, Trustee, for the benefit of the beneficiary hereof.
Attest: Jennifer Walters
City Secretary !
A!Yproved as to Form:
Herbert L. Prouty, City Attorney
Cumberland Presbyterian Children's Home
Ka~ Vv~. Goodman
Board President ~
City of Dentgta
City Manager
DEED OF TRUST
Date: December 3, 2004
Grantor: Cumberland Presbyterian Children's Home
Grantor's Mailing Address: PO Drawer G, Denton, Texas 76202-1657
Trustee: City Manager of the City of Denton, or his designated representative.
Trustee's Mailing Address: 215 E. McKinney Street, Denton, Denton County ~X 76201
Beneficiary: The City of Denton, Texas
Beneficiary's Mailing Address: 215 E McKinney St., Denton, Denton County, TX 76201
Funding Agreement
Date: August 17, 2004
Amount: $350,000
Maker: Cumberland Presbyterian Children's Home'
Payee: City of Denton
Final Maturity Date: August 17, 2025
Terms of Payment (optional): According to the term and tenor of said funding agreement
dated August 17, 2004.
Property (including any improvements): See Exhibit A, Field Notes and Exhibit B, Proposed
Duplex Site.
Prior Lien(s) None
Other Exceptions to Conveyance and Warranty: Easements, rights-of-way, and prescriptive
rights, whether Of record or not and all presently recorded instruments.
For value received and to secure payment of the note, Grantor conveys the property to Trustee in
trust. Grantor warrants and agrees to defend the title to the property. If Grantor performs all the
covenants and meets all obligations of the funding agreement, including the 20-year affordability
period, this deed of trust shall have no further effect, and Beneficiary shall release it at Grantor's
expense.
Grantor's Obligations
Grantor agrees to:
keep the property in good repair and condition;
pay all taxes and assessments on the property When due;
preserve the lien's priority as it is established in this deed of trust;
maintain, in a form acceptable to Beneficiary, an insurance policy that;
a. covers all improvements for their full insurable value as determined when the policy is
issued and renewed; unless Beneficiary approves a smaller mount in writing;
b. contains an 80% coinsurance clause;
c. provides fire and extended coverage, including windstorm coverage; ·
d. protects Beneficiary with a standard mortgage clause;
e. provides flood insurance at any time the property is in a flood hazard area; and
f. contains such other coverage as Beneficiary may reasonably require;
5. comply at all times with the requirements of the 80% coinsurance clause;
6. deliver the insurance policy to Beneficiary and deliver renewals to Beneficiary at least ten
days before expiration;
7. keep any buildings occupied as required by the insurance policy; and
8. if this is not a first lien, pay all prior lien notes that Grantor is personally liable to pay and
abide by all prior lien instruments.
9. comply, for a period of twenty years (20) years from the date of this deed of trust, with the
following conditions:
a. the property shall remain in private non-profit organization ownership and used only
for residential purposes.
b. Grantor shall not discriminate against prospective tenants on the basis of their receipt
of, or eligibility for, housing assistance under any Federal, State, or local housing
assistance program, or, except for housing for elderly persons, on the basis that the
tenants have a minor child or children who will be residing with them.
2.
3.
4.
Grantor shall comply with all requirements of the Federal Fair Housing Law, 42 USC
3601, with Title VI of the Civil Rights Act of 1964, 42 USC 2000d, with E.O. No.
11063, as amended by E.O. 12249, and with 24 CFR 107.
Grantor shall purchase Federal Flood Insurance as required under the Flood Disaster
Protection Act of 1973, 42 USC 4001, et seq, if property the subject of this deed of
trust lies within the 100 year flood plain.
Beneficiary's Rights
Beneficiary may appoint in writing a substitute or successor trustee, succeeding to all rights
and responsibilities of Trustee.
2. If the proceeds from the sale of the property are used to pay any debt secured by prior liens,
Beneficiary is subrogated to all of the rights and liens of the holders of any debt so paid.
Beneficiary may apply any proceeds received under the insurance policy either to reduce the
note or to repair or replace damaged or destroyed improvements covered by the policy.
If Grantor fails to perform any of Grantor's obligations, Beneficiary may perform those
obligations and be reimbursed by Grantor for any sums so paid, including attorney's fees.
The sum to be reimbursed shall be secured by this deed of trust.
If Grantor defaults on ~e agreement or fails to perform any of Grantor's obligations or if
default occurs on a prior lien note or other instrument, and the default continues after
Beneficiary gives Grantor notice of the default and the time within which it must be cured,
as may be required by law or by written agreement, then Beneficiary may:
a. declare the $350,000 in Home Investment Partnership Program funding provided under
the funding agreement immediately due;
request Trustee to foreclose this lien, in which case Beneficiary or Beneficiary's agent
shall give notice of the foreclosure sale as provided by the Texas Property Code as
then amended; and
c. purchase the property at any foreclosure sale by offering the highest bid and then have
the bid credited on the note.
Trustee's Duties
If requested by Beneficiary to foreclose this lien, Trustee shall:
Deed of Trust / Page 3
either personally or by agent give notice of the foreclosure sale as required by the Texas
Property Code as then amended;
sell and convey all or part of the property to the highest bidder for cash with a general
warranty binding Grantor, subject to prior liens and to other exceptions to conveyance and
warranty; and
3. from the proceeds of the sale, pay, the Beneficiary all funding available from the sale.
General Provisions
If any of the property is sold under this deed of trust, Grantor shall immediately surrender
possession to the purchaser. If Grantor fails to do so, Grantor shall become a tenant at
sufferance of the purchaser, subject to an action for forcible detainer.
2. Recitals in any Trustee's deed conveying the property will be presumed to be tree.
3. Proceeding under this deed of l~'ust, filing suit for foreclosure, or pursuing any other
remedy will not constitute an election of remedies.
4. This lien shall remain superior to liens later created even if the time of payment of all or
part of the note is extended or part of the property is released.
If the funding agreement cannot be lawfully secured by this deed of trust, payments shall be
applied first to discharge that portion.
Interest on the debt secured by this deed of trust shall not exceed the maximum amount of
nonusurious interest that may be contracted for, taken, reserved, charged, or received under
law; any interest in excess of that maximum amount shall be credited on the pr'mcipal of the
debt or, if that has been paid, refunded. On any acceleration or required or permitted
prepayment, any such excess shall be canceled automatically as of the acceleration or
prepayment or, if already paid, credited on the principal of the debt or, if the principal of
the debt has been paid, refunded. This provision overrides other provisions in this and all
other instruments concerning the debt.
7. When the context requires, singular nouns and pronouns include the plural.
8. The term funding agreement includes all sums secured by this deed of trust.
9. This deed of trust shall bind, inure to the benefit of, and be exercised by successors in
interest of all parties.
Deed of Trust / Page 4
10.. If Grantor and Maker are not the same person, the tetra Grantor shall include Maker.
Grantor(s)
EXECUTED on
Kay ~. ~oodman
President
Board Of Directors
Executive Director
ACKNOWLEDGMENTS
THE STATE OF TEXAS §
COUNTY OF DENTON §
This instrument was acknowledged
Kay W. Goodman
Notary ~O~~
Seal
~y Public in and for Texas
THE STATE OF TEXAS'§
COUNTY OF DENTON §
This instrument was acknowledged before me on
Judith B. Keith ,,~ ~.E.. ~'X:;2 ,,
~-~&~.... ~l~lv ~:.,.t¢'~ -.,
.-
Notary ........
Seal '~m~ou Notary Public in and for Texas
by
by
Deed of Trust / Page 5
EXHIBIT A
FIELD NOTES
BEING A 0.909 ACRE TRACT OF LAND OUT OF THE E. PUCHALSKI SURVEY, ABSTRACT
NO. 996 IN THE CITY OF DENTON, DENTON COUNTY, TEXAS ALSO BEING A PORTION
OF LOT 1, BLOCK 1, OF THE CUMBERLAND CHILDRENS HOME ADDITION AN ADDITION
TO THE CITY OF DENTON AS RECORDED IN CABINET F, PAGE 174 OF THE PLAT
RECORDS OF DENTON COUNTY, TEXAS. SAID 0.909 ACRE TRACT BEING MORE
PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS:
COMMENCING at a lA inch iron rod found for the most northerly northwest comer of said
Lot 1, in the south line of Greenlee Street;
THENCE S 00° 35' 51" W [S 00020'47'' El, along a west line of said Lot 1 the east line of
Central Avenue a distance of 222.74 feet to the POINT OF BEGINNING of the herein
described tract;
THENCE S 00° 35' 51" W, continuing along said west line passing at a distance of 108.97
feet, a fence post found for an interior ell comer of said Lot 1, continuing in all, a total
distance of 148.83 feet, to a point for the southwest comer hereof;
THENCE over and across said Lot 1 the following eight courses and distances:
1. N 89° 48' 10" E, a distance of 269.99 feet, to a point for the southeast comer hereof;
2. N 00° 35' 51" E, a distance of 169.92 feet, to a point for the northeast corner hereof;
o
S 89° 11' 06" W, a distance of 74.67 feet, to a point for the beginning ora non-tangent
curve to the right having a radius of 62.00 feet, a chord which bears S 85° 11' 34" W
and a chord distance of 122.11 feet;
4. Along said curve to the right an arc length of 173.12 feet, to a point for corner;
S 89° 11' 06" W, a distance of 63.95 feet, to a point for the beginning of a curve to the
left having a radius of 7.00 feet, a chord which bears S 43° 28' 42" W and a chord
distance of 10.02 feet;
6. Along said curve to the left an arc length of 11.17 feet, to a point for comer;
7. S 02° 13' 41" E~ a distance of 2.50 feet, to a point for corner;
8. S 89° 11' 06" W, a distance of 3.12 feet, to the POINT OF BEGINNING and
containing 0.909 acres of land more or less.
Deed of Trust / Page 6
FIRST AMENDMENT TO AGREEMENT BETWEEN THE CITY OF DENTON
AND CUMBERLAND PRESBYTERIAN CHILDREN'S HOME
This First Amendment to the Agreement Between the City of Denton and
Cumberland.Presbyterian Children's Home, is made by and between The City of Denton,
Texas ("CITY") and Cumberland Presbyterian Children's Home, 1304 Bernard Street,
Denton, Texas, a non-profit corporation ("DEVELOPER"), acting by and through their
respective authorized officers.
WITNESSETH:
WHEREAS, the parties previously entered into that certain Agreement, dated
August 15, 2004, for the development of transitional multi-family housing units by
Cumberland Presbyterian Children's Home (the "Original Agreement"); and
WHEREAS, the parties desire to amend certain terms and conditions of the
Original Agreement as set forth herein: and
WHEREAS, CITY and DEVELOPER have determined that this Agreement will
further the objectives of the Original Agreement and is in the best interests of the parties.
NOW, THEREFORE, in consideration of the foregoing, and on the terms and
conditions hereinafter set forth, and other good and valuable consideration, the receipt
and of which is hereby acknowledged, the parties agree as follows:
I. The parties agree that the terms "CONTRACTOR" and "SUBRECIPIENT," as
such terms are used to describe Cumberland Presbyterian Children's Home in the
Original Agreement, shall hereinafter be replaced with the term "DEVELOPER."
2. Section 4 of the Original Agreement is hereby amended so as to delete Section 4
B in its entirety.
3. Section 8 of the Original Agreement is hereby amended so as to delete Section 8
B in its entirety.
4. Section 10 of the Original Agreement is hereby amended so as to add thereto a
new Subsection 3 which shall read as follows:
"10. EQUAL OPPORTUNITY
3. DEVELOPER shall meet all federal nondiscrimination requirements
established in 24 CFR 92.350."
5. Section 12 of the Original Agreement is hereby amended so as to add thereto a
new Subsection C which shall read as follows:
Cumberland Contr.act Amendment
Page 10f3
"12. POLITICAL AND SECTARIAN ACTIVITY
C. DEVELOPER shall require acceptance of the conditions prescribed in
24 CFR 257 for the use of HOME funds by religious organizations."
6. Section 19 of the Original Agreement is hereby amended so as to add thereto a
new Subsection E which shall read as follows:
"19. TERMINATION
E. Other provisions of the Subsection notwithstanding, termination ofthis
Agreement by DEVELOPER shall be in accordance with 24 CFR 85.44."
7. "Attachment A; Work Statement" of the Original Agreement is hereby amended
to add the following:
"The initial maximum rent level of$300 may be increased after notification of the
City by Cumberland Presbyterian Children's Home and approval by the City as
per 24 CFR 92.504 (c)(3)(ii). Rental rates must not exceed HOME program
guidelines."
8. This Amendment to the Original Agreement shall take effect on the last date of
the execution hereof.
9. Except as amended herein, the' Original Agreement shall continue in full force and
effect.
PASSED AND APPROVED this the
;lrd 'ft 00)
day of ..MlLfr/ij 2Ul1.(>.
P/~d'~
CITY MANAGER
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
Cumberland Contract Amendment
Page 2 of3
APPROVED AS TO LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
BY:
DEVELOPER:
CUMBERLAND PRESBYTERIAN
CHILDREN'S HOME
L/-f;l
BY: / ~.
KEviN HENSON
BOARD PRESIDENT
Cumberland Contract Amendment
Page 3 of3