HomeMy WebLinkAboutC2020-103 - 2/11/2020 - Approved AGREEMENT BETWEEN CORPUS CHRISTI B CORPORATION AND
THE SALVATION ARMY A CatuRGW CORPORATION
This Agreement for the Type B Affordable Housing Program Redevelopment ("Agreement") is
entered into between the Corpus Christi B Corporation ("Corporation") and The Salvatj EOR�amy ( e_ TION
"Developer).
WHEREAS, the Texas Legislature in Section 501 of the Local Government Code (Development
Corporation Act of 1979) empowered local communities with the ability to adopt an optional local
sales and use tax as a means of improving the economic health and prosperity of their citizens;
WHEREAS, on November 8, 2016, residents of the City passed Proposition 1, Adopt Type B Sales
Tax to Replace Expiring Portion of Type A Sales Tax, which authorized the adoption of a sales and use
tax to be administered by a Type B Corporation at the rate of one-eighth of one percent to be imposed
for 20 years with use of the proceeds for (1) 50% to the promotion and development of new and
expanded enterprises to the full extent allowed by Texas law, (2) $500,000 annually for affordable
housing, and (3) the balance of the proceeds for the construction, maintenance and repair of arterial
and collector streets and roads;
WHEREAS, the 1/8th cent sales tax authorized by passage of Proposition 1 was subsequently
enacted by the City Council and filed with the State Comptroller of Texas, effective April 1, 2018, to be
administered by the Corpus Christi B Corporation Board;
WHEREAS, Section 501.073 of the Act requires the City Council to approve all programs and
expenditures of the Corporation;
WHEREAS, the Board wishes to fund affordable housing projects in an effective manner;
WHEREAS, the Developer has proposed to develop new affordable transitional housing units in
the City;
WHEREAS, the Board has determined that it is in the best interests of the residents of the City
that the Developer be awarded affordable housing funds, by execution of this Agreement, to
accomplish the affordable housing project described in the Scope of Work, which is attached hereto
as Exhibit A and incorporated herein by reference as if laid out here in its entirety and the Board has
determined that such a development is required or suitable for the promotion of development and
expansion of affordable housing;
In consideration of the covenants, promises, and conditions stated in this Agreement, the
Corporation and the Developer agree as follows:
1. Agreement to Provide Affordable Housing Services. This Agreement between the
Corporation and the Developer is executed to implement the promotion and development of
the Project. In performance of the Agreement, Developer will:
Page 1 of 7
SCANNED
a. Construct 2 affordable housing oaf-units at 1820 Buford Street to provide
transitional housing for homeless persons. The Project must be an affordable housing
project, as described by 42 U.S.C. Section 12745, and must contain 2 units
available to qualified individuals. The development must comply with all requirements of
42 U.S.C. Section 12745, including environmental building standards.
b. Complete construction of the project and obtain a Certificate of Occupancy ("C of 0")
from the City's Development Services Department within two years following the
Effective Date. Developer will comply with all laws, rules, and ordinances in the
` Y construction of the Project and will obtain all required permits.
c. Developer will maintain the property and continue to rent make available 2 units only
to qualified individuals as affordable housing in accordance with 42 U.S.C. Section
12475 for twenty years. If the property ceases to operate as an affordable housing
facility during that twenty-year period, the Developer will immediately reimburse the
Corporation all amounts paid to the Developer under this Agreement. If the Corporation
is dissolved prior to the end of the twenty-year period and such reimbursement of funds
is required under this provision, the Developer will immediately reimburse the City all
amounts paid under this Agreement. The obligation to reimburse funds under this
section will survive the termination or earlier expiration of this Agreement.
d. Any single-room occupancy units within the development must comply with the housing
quality standards of 24 CFR 982.605. Any shared housing units for family occupancy
must comply with the housing quality standard of 24 CFR 982.618.
2. Compensation. Upon receipt of the C of 0 for the completed development, Developer shall
request payment from the Corporation by providing notice in accordance with Section 8 below.
The request for payment will include evidence that all costs of construction have been paid and
that there are no liens on the property for unpaid construction costs. Upon receipt of the
request for payment and verification that the development complies with all requirements of
this Agreement, the Corporation shall, as soon as practicable, pay the developer an amount
not to exceed $$500,000 as a reimbursement for the costs of creating transitional housing units
to provide affordable housing.
3. Property Sale Limited to Affordable Housing. During the term of this Agreement and the
Affordability Period, Developer may only sell the property or the Project to qualified individuals
for use as affordable housing. Sale of the property for any other purpose will require
repayment of all funds under Section 1(c) above.
4. Effective Date. The effective date of this Program Agreement is the date on which the City
Council grants approval to the Corporation for this Project, so long as all parties have executed
this Agreement.
5. Term. The term of this Agreement is for two years beginning on the effective date.
6. Termination. Corporation may terminate this Agreement 30 days' written notice of Developer's
failure to comply with any terms of the Agreement.
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7. Amendments or Modifications. No amendments or modifications to this Agreement or to the
Project may be made, nor any provision waived, unless the amendment or modification is
made in writing and signed by persons duly authorized to sign agreements on behalf of all
parties.
8. Notices. Any required written notices shall be sent, certified mail, return receipt requested,
addressed as follows:
If to Corporation:
City of Corpus Christi B Corporation
Attn: President
1201 Leopard Street
Corpus Christi, Texas 78401
With a copy to:
City of Corpus Christi
Attn.: City Attorney
P.O. Box 9277
Corpus Christi, Texas 78469-9277
If to Developer:
The Salvation Army
Attn: Captain Patrick Gesner
P.O. Box 2507
Corpus Christi, Texas 78403
Notice is effective upon deposit in the United States mail in the manner provided above.
9. Relationship of Parties. In performing this Agreement, the Corporation and the Developer
shall act in an individual capacity, and not as agents, representatives, employees, employers,
partners, joint-venturers, or associates of one another. The employees or agents of either
party may not be, nor be construed to be, the employees or agents of the other party for any
purpose.
10.Insurance; Bonds. Not applicable.
11.Non-Appropriation. The continuation of this Agreement after the close of any fiscal year of the
City and Corporation, which fiscal year ends on September 30th annually, is subject to
appropriations and budget approval specifically covering this Agreement as an expenditure in
said budget, and it is within the sole discretion of the City's City Council and the Corporation's
Board to determine whether or not to fund this Agreement. The Corporation does not represent
that this budget item will be adopted, as said determination is within the City Council's sole
discretion when adopting each budget.
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17.Governing Law. Developer agrees to comply with all federal, Texas, and City laws in the
performance of this Agreement. The applicable law for any legal disputes arising out of this
Agreement is the law of the State of Texas, and such form and venue for such disputes is the
appropriate district, county, or justice court in and for Nueces County, Texas.
18.Undocumented Workers. Developer does not and agrees that it will not knowingly employ any
undocumented workers. If, after receiving payments under this Agreement, Developer is
convicted of a violation under 8 U.S.C. Section 1324a(f), Developer shall repay the payments
received under this Agreement, including the cost of property acquisition, to the Corporation,
with interest at the Wall Street Journal Prime Rate, not later than the 120th day after the date
Developer has been notified of the violation.
19.Entire Agreement. This Agreement constitutes the entire agreement between the parties
concerning the subject matter of this Agreement and supersedes all prior negotiations,
arrangements, agreements and understandings, either oral or written, between the parties.
[Signature Page Follows]
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CORPUS CHRISTI B ORPORATION THE SALVATION ARMY AGEORGtAcoR9PORATION
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Scott Hams a gy: Austruberto z �, _
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President Title: ASSISTANT TREASURER r
Date: /bDate: JAN 2 2 2010 ,_-_ _ -
ATTEST: :• ,J' `,
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Rebecca Huerta
City Secretary / '��1
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Date:
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APPROVED AS TO FORM: _....
SECRETARY
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Aimee Alcorn-Reed
Assistant City Attorney
Attorney for Corporation
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Exhibit A— Scope of Work
Insert Scope of Work from Developer
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�'�{ D
OING
William Booth,Founder
VAT�O Andre Cox,General
sAtiY THE mos Tavid Hudson,Commissioner,National Commander
ARGOOD Villis Howell,Commissioner,Territorial Commander
Ronnie Raymer,Lt.Colonel,Divisional Commander
k.apiain Patrick&Lt.Laura Gesner,Regional Coordinators
Transitional Housing Program
The Salvation Army of the Coastal Bend is proud to serve families and individuals
experiencing homelessness, we have a dedicated team and program to assist those in
need. Our goal is to successfully transition families and individual from homelessness
into permanent sustainable and affordable housing.
The Center of Hope will have 60 single beds and 30 family rooms, which will provide
clients the time and resources they need to get back on their feet. Each household is
referred to us by Coordinated Entry based on their vulnerability index score and needs.
We offer intense case management to ensure our program participant have every tool
necessary to be successful in our program. Our program participants take advantage of
life skills classes, financial literacy classes, planned activities, tutoring, youth& adult
programs. During their stay our program participants have access to a designated laundry
room, hygiene kits, transportation assistance, 3 meals per day, family lounge, playground,
computer room and library. Once specific case management goals have been met, clients
transition from the Center to off-site, market based apartments. The Salvation Army of
the Coastal Bend assists paying for deposits and rent, gradually increasing the percentage
paid by the client until self-sufficiency is attained.
The Center of Hope will have a total of 192 beds available. Each unit will comply with
HUD affordable housing guidelines for single room occupancy or shared family housing.
Two units, totaling 8 beds, will be set aside and permanently designated as program fee-
based transitional housing. The remaining units will have flexible designation as either
emergency shelter or transitional housing, dictated by the needs of Salvation Army's
clients and the community at large. Clients will have the opportunity to transition in place
through Salvation Army's programs, providing stability for residents and flexibility for
the Salvation Army.
Corpus Christi Corps,PO Box 2507,Corpus Christi,Texas 78403,(361)884-9497
fro 11)01 (j William Booth,Founder
Vp ��Andre'Cox,General
Spti THE MO S T�avid Hudson,Commissioner,National Commander
AR GOODVas Howell, Commissioner,Territorial Commander
Ronnie Raymer,Lt.Colonel,Divisional Commander
t.aprain Patrick&Lt.Laura Gesner,Regional Coordinators
Program Requirements
Program participants in the Transitional Housing program are required to obtain a job and
save money during their stay. The percentage of savings is based on the program
participant's budget and income. Many participants save up to 70% of their income, the
minimum goal is 25%. Program participants are required to pay a program fee, the fee is
calculated based on their income, fees are recertified every 90 days. Participants can be
enrolled in the Transitional Housing program for up to 24 months, and must recertify
every 90 days. The Salvation Army and the Center of Hope operate drug and alcohol free
programs, and all participants are expected to be sober and substance free while enrolled.
Participants are also expected to abide by program specific guidelines while enrolled in
the Transitional Housing program.
Corpus Christi Corps,PO Box 2507,Corpus Christi,Texas 78403,(361)884-9497