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HomeMy WebLinkAbout026241 RES - 04/26/2005 1 RESOLUTION APPROVING THE EXECUTION OF AN AFFORDABLE HOUSING PROGRAM AGREEMENT BETWEEN THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION ("CORPORATION"), THE CITY OF CORPUS CHRISTI ("CITY"), AND NUECES COUNTY COMMUNITY ACTION AGENCY ("NCCAA") TO ALLOW THE CORPORATION TO GRANT $175,000 TO THE NCCAA AND THE CITY FOR AN IN FILL HOUSING PROJECT AS PART OF AN AFFORDABLE HOUSING PROGRAM; AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE PROGRAM AGREEMENT ON BEHALF OF THE CITY WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas Revised Civil Statutes (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 5, 2002, residents of the City of Corpus Christi passed Proposition 2, New and Expanded Business Enterprises. which authorized the adoption of a sales and use tax for the promotion and development of new and expanded business enterprises at the rate of one-eighth of one percent to be imposed for 15 years; WHEREAS, in the same election, the residents of the City passed Proposition 2B, Affordable Housing, which authorized the use of a portion of the sales and use tax approved under Proposition 2 for affordable housing, up to $500,000 annually, so long as there are projects for which the amount can reasonably be used; WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 2 and allocated under Proposition 2B for affordable housing was subsequently enacted by the City's City Council ("City Council") and filed with the State Comptroller of Texas, effective April 1, 2003, to be administered by the Corporation's Board of Directors ("Board"); WHEREAS, the Board issued a request for proposals for affordable housing projects as that term is defined in Title 42 of the United States Code, Section 12745, in accordance with the requirement in the Texas Development Corporation Act of 1979; WHEREAS, NCCAA submitted a proposal to the Board to request $175,000 for an infill housing project as part of an affordable housing program;; and WHEREAS, the Board has determined that it is in the best interests of the residents of the City of Corpus Christi that NCCAA be awarded affordable housing funds, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: Affordable Housing NCCAA-infill.DOC CJ2ti241 2 SECTION 1. That the City Council authorizes the execution of an affordable housing program agreement ("Program Agreement") between the Corporation, NCCAA, and the City to allow the Corporation to grant $175,000 to the NCCAA and the City for an infill housing project as part of an affordable housing program, A copy of the Program Agreement in substantial form is attached as Exhibit A, The executed Program Agreement will be filed in the Office of the Secretary, SECTION 2. That the City Manager is authorized to execute the Program Agreement referenced above on behalf of the City, ATTES~ Armando Chapa City Secretary APPROVED: .d-0 day of ~~. By: i,A'J.<. /b'6<.J2~t. Lisa Aguilar Assistant City Attorney for City Attorney ,2005, Affordable Housing NCCAA-infill.DOC Corpus Christi, Texas , ,~(~ Day of ( Lp L'-'\. ,2005 The above resolution was passed by the following vote: Mark Scott W)K- Uvt ~v wr.' Ct' () J( U~Y' UU;~0 &{~~ Henry Garrett Brent Chesney Melody Cooper Jerry Garcia Bill Kelly Rex Kinnison John E. Marez Jesse Noyola CJ262tJl AFFORDABLE HOUSING PROGRAM AGREEMENT FORA PILOT INFILL HOUSING PROJECT This Affordable Housing Program Agreement for a Pilot Infill Housing Project ("Program Agreement") is entered into between the Corpus Christi Business and Job Development Corporation ("Corporation"), the City of Corpus Christi ("City"), and the Nueces County Community Action Agency ("NCCAA"), a non-profit corporation organized under the statutes of the State of Texas, WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas Revised Civil Statutes (Development Corporation Act of 1979) empowered local com- munities with the ability to adopt an optional local sales and use tax as a means of im- proving the economic health and prosperity of their citizens; WHEREAS, on November 5, 2002, residents of the City of Corpus Christi passed Proposition 2, New and Expanded Business Enterprises, which authorized the adoption of a sales and use tax for the promotion and development of new and expanded busi- ness enterprises at the rate of one-eighth of one percent to be imposed for 15 years; WHEREAS, in the same election, the residents of the City passed Proposition 2B, Affordable Housing, which authorized the use of a portion of the sales and use tax ap- proved under Proposition 2 for affordable housing, up to $500,000 annually, so long as there are projects for which the amount can reasonably be used; WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 2 and allo- cated under Proposition 2B for affordable housing was subsequently enacted by the City's City Council ("City Council") and filed with the State Comptroller of Texas, effec- tive April 1 , 2003, to be administered by the Corporation's Board of Directors ("Board"); WHEREAS, the Board issued a request for proposals for affordable housing projects; WHEREAS, the City submitted a proposal to the Board to request funding to pur- chase real property, located in developed neighborhoods within the territorial limits of the City of Corpus Christi, in order to construct infill housing, a project that is suitable for the promotion and development of affordable housing within the City; WHEREAS, the City desires to partner with the NCCAA in order to carry out this project; WHEREAS, Section 21 of the Texas Development Corporation Act of 1979, Article 5190,6, Vernon's Texas Revised Civil Statutes, requires the City Council to approve all programs and expenditures of the Corporation; Affordable Housing- NCCAA Pilot Infill Proj Agmt doc. doc Page 1 of 11 WHEREAS, the City Council approved the Corporation's affordable housing pro- gram and selection of the City and NCCAA as a recipient of affordable housing funds on , 2005; and WHEREAS, the Board has determined that it is in the best interests of the resi- dents of the City of Corpus Christi that the City and NCCAA be awarded affordable housing funds, by execution of this Program Agreement, to promote and develop the affordable housing project stated in the City's "Infill Neighborhood Revitalization Pro- ject," a pilot in-fill housing project ("Project"), which was submitted in response to the Board's request. In consideration of the covenants, promises, and conditions stated in this Program Agreement, the Corporation, the City, and the NCCAA agree as follows: 1. Program Agreement to Implement Affordable Housing Project. This Program Agreement between the Corporation, the City, and the NCCAA is executed to imple- ment the promotion and development of an affordable housing project proposed by the City and NCCAA in the City's response to the Board's request for proposals ("Project Response"), The Project Response submitted by the City, entitled "Infill Neighborhood Revitalization Project" ("Project") is attached to this Program Agreement as Exhibit A and is incorporated in this Program Agreement by reference, 2. 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 Program Agreement. 3. Term. The term of this Program Agreement extends eighteen (18) months from the date the last party executes this document. 4. Services to be Provided by City. a. The City, through the City's City Manager or his designee ("City Manager"), shall administer funding and perform contract administration responsibilities, as outlined in this Program Agreement, for the Corporation, b. The City, in partnership with the NCCAA, shall implement and accomplish the objectives of the Project as stated in the Project Response, 5. Services to be Provided by NCCAA. a. The NCCAA shall acquire, in the NCCAA's name only, parcels of real property within developed neighborhoods ("lots"), as outlined in the Project Response, In no event may the funds provided under this Program Agreement be utilized to purchase any other parcels of real property without the NCCAA obtaining the prior written approval of the City and the Corporation, b. The NCCAA covenants to purchase not more than ten (10) lots for the develop- ment of up to ten (10) single-family residential dwellings as affordable housing, Affordable Housing- NCCAA Pilot Infill Proj Agmt doc. doc Page 2 of 11 as the term is defined in Title 42 of the United States Code, Section 12745, in accordance with the requirement in the Texas Development Corpo-ration Act of 1979, c. Prior to the purchase of each lot, the NCCAA must coordinate with the Director of the City's Neighborhood Services Department or the Director's designee ("Director") to review the anticipated purchase transaction as it pertains to loca- tion and amount. The cost of the lots purchased for the Project may not exceed $80,000 inclusive of all closing costs, d. The title to each lot purchased by the NCCAA under this Program Agreement must be conveyed, to the NCCAA as purchaser, by a general warranty deed and must include title insurance, e. The NCCAA shall provide homeownership counseling to all qualified home- buyers of lots purchased for development pursuant to this Program Agreement, such homeownership counseling having an agreed value of $1 ,500 per lot. f. The NCCAA shall utilize its outreach and marketing resources to secure home- builders capable of constructing affordable housing on each purchased lot. The NCCAA shall competitively bid the housing construction costs for each lot to be developed under this Program Agreement. The cost of each home constructed on a purchased lot may not exceed $50,000 exclusive of lot acquisition costs, g. The NCCAA shall recruit potential homebuyers for ownership of each pur- chased lot to be developed as affordable housing pursuant to this Program Agreement. The NCCAA shall ensure that each potential homebuyer's family qualifies as a low-to-moderate income family in accordance with federal and State laws, rules, and regulations, Qualified homebuyers will be provided with up to $9,500 in down payment and closing cost assistance per developed lot. 6. Payment of Funds. a. The Corporation authorizes the City to pay, from allocated sales tax revenues, up to $175,000 to fund the purchase of 10 lots and provide down payment and closing cost assistance to qualified homebuyers pursuant to this Program Agreement. b. Any payments by the Corporation under the provisions of this Program Agree- ment are subject to the receipt of sales taxes, by the City, from the Office of the Comptroller of the State of Texas and payment of the sales taxes to the Corpo- ration by the City, c. Payments for the purchase of the lots will be made by the City directly to the title company involved in the closing transaction, Payments for the provision of down payments and closing costs will be made directly by the City to the title company or mortgage company involved in the purchase of the constructed residence, Supporting documentation, such as closing and settlement forms, Affordable Housing- NCCAA Pilot tnfill Proj Agmt doc. doc Page 3 of 11 must be provided to the City by the NCCAA prior to processing a request for payment. d. The NCCAA shall secure for the Corporation the recapture of lot acquisition costs, down payments, and closing costs by having each homebuyer execute a 20-year deferred, forgiveable note secured by a deed of trust that represents a second mortgage lien on the property, provided however, that for each month the property is occupied as the original homebuyer's principal residence, a fractional amount, stated as a numerator of 1 and a denominator of 240, of the total funding expended on the lot and home purchase under this Program Agreement will be waived and forgiven, 7. Documentation and Reports. a. The City and NCCAA shall maintain all documentation relating to the receipt and expenditure of the funds provided under this Program Agreement for a period of three years following the expiration of this Program Agreement or for such longer period as may be required by federal or State law, Additionally, the NCCAA shall keep records that document the provision and extent of home- buyer counseling that was provided to each qualified homebuyer. Each coun- seling record must be signed by the homebuyers and the NCCAA upon the completion of counseling, b. The NCCAA shall provide access to all records, documents, reports, and audits, regarding the funded activity under this Program Agreement, during regular business hours, for the purpose of inspection and copying by the City Manager. Furthermore, the NCCAA shall provide to the City Manager any information per- tinent to this Program Agreement, as may be requested during the term of this Program Agreement. c. The NCCAA shall submit a performance report ("Report") to the City and the Corporation at least once each quarter and a final Report within 30 days of the expiration of this Program Agreement. The Report must contain all relevant details pertaining to the lot and home purchases and include any supporting documentation required to substantiate the written narrative contained in the Report, 8. Amendments or Modifications. No amendments or modifications to this Program Agreement may be made, nor any provision waived, unless the amendment or modifica- tion is made in writing and signed by persons duly authorized to sign agreements on behalf of all parties, 9. Severability. a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of this Program Agreement or the application of this Program Agree- ment to any person or circumstance is, to any extent, held illegal, invalid, or un- enforceable under present or future law or by a final judgment of a court of com- Affordable Housing- NCCAA Pilot tnfill Pro; Agmt doc.doc Page 4 of 11 petent jurisdiction, then the remainder of this Program Agreement, or the appli- cation of the term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it is the definite intent of the parties to this Program Agree- ment that every section, paragraph, subdivision, clause, provision, phrase, and word of this Program Agreement be given full force and effect for its purpose, b. To the extent that any clause or provision is held illegal, invalid, or unenforce- able under present or future law effective during the term of this Program Agree- ment, then the remainder of this Program Agreement is not affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to the illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid, and enforceable, will be added to this Program Agreement automatically, 10. Compliance with Laws. The NCCAA shall comply with all applicable federal, State, and local government laws, rules, regulations, and ordinances which may be rele- vant to the NCCAA's performance under this Program Agreement. 11. Jurisdiction and Venue. a. This Program Agreement will be governed by and construed in accordance with the laws of the State of Texas, b. All actions brought to enforce compliance with this Program Agreement must be brought in Nueces County, Texas, where this Program Agreement was entered into and must be performed, 12. Acknowledgment and Construction of Ambiguities. The parties expressly agree that each has independently read and does understand this Program Agreement. By the NCCAA's execution of this Program Agreement, the NCCAA agrees to be bound by the terms, covenants, and conditions contained in this Program Agreement. Anyam- biguities in this Program Agreement may not be construed against the drafter. 13, Indemnity. The NCCAA must fully indemnify and hold harmless the City of Corpus Christi, the Corpus Christi Business and Job Development Corporation, and their officers, employees, and agents (hereinafter, collectively "Indemnitees") from and against any and all liability, damage, loss, claims, demands, expenses, suits, and causes of action of any nature whatsoever on account of injury or damage to person (including, without limitation on the foregoing, premises de- fects, workers' compensation, and death claims) or property loss or damage of any kind whatsoever which arise out of or are in any man- ner connected with, or are claimed to arise out of or be in any way connected with, either proximately or remotely, wholly or in part, any Affordable Housing~ NCCAA Pilot Infill Proj Agmt doc.doc Page 5 of 11 activities by the NCCAA, its officers, employees, agents, members, invitees, or independent contractors with respect to this Program Agreement or the Project that is the subject of this Program Agree- ment, regardless of whether such injuries, death, or damages are caused, or are claimed to be caused, by the contributory negligence of any of the Indemnitees, but not if caused by the sole negligence of the Indemnitees unmixed with the fault of any other person or entity. The NCCAA covenants and agrees that if Indemnitees, or any of them, are made a party to any litigation against the NCCAA or in any litiga- tion commenced by any party other than the NCCAA relating to this Program Agreement or Project, the NCCAA shall, upon receipt of reasonable notice regarding commencement of litigation, at its own expense, investigate all claims and demands, attend to their settle- ment or other disposition, defend Indemnitees in all actions based thereon with legal counsel satisfactory to Indemnitees, and pay all charges of attorneys and all other costs and expenses of any kind arising from any said liability, damage, loss, demand, claim, or action. 14. Warranties. NCCAA warrants and represents to Corporation the following: a, NCCAA is a corporation duly organized, validly existing, and in good standing under the laws of the State of Texas, has all corporate power and authority to carry on its business as presently conducted in Corpus Christi, Texas, b, NCCAA has the authority to enter into and perform, and will perform, the terms of this Program Agreement. c, NCCAA has timely filed and will timely file all local, State, and Federal tax reports and returns required by law to be filed and all taxes, assessments, fees, and other governmental charges, including applicable ad valorem taxes, have been timely paid, and will be timely paid, during the term of this Program Agreement. d, NCCAA has received a copy of the Texas Development Corporation Act of 1979, Art, 5190,6, Vernon's Texas Revised Civil Statutes, and acknowledges that the funds granted in this Program Agreement must be utilized solely for purposes authorized under State law and by the terms of this Program Agreement. e, If an audit determines that the funds were not used for authorized purposes, NCCAA agrees to reimburse Corporation for the sums of money spent for purposes not authorized by law within 30 days written notice requesting reimbursement. ' f, The parties executing this Program Agreement on behalf of NCCAA are duly authorized to execute this Program Agreement on behalf of NCCAA, Affordable Housing. NCCAA Pilot lnfill Proj Agmt doc. doc Page 6 of 11 15. Events of Default. The following events constitute a default of this Agreement: a, Failure of NCCAA to timely, fully, and completely comply with anyone or more of the requirements, obligations, duties, terms, conditions, or warranties of this Program Agreement; b, The Corporation or City determines that any representation or warranty on behalf of NCCAA contained in this Program Agreement or in any financial statement, certificate, report, proposal, or opinion submitted to the Corporation in connection with this Program Agreement was incorrect or misleading in any material respect when made; c, Any judgment is assessed against NCCAA or any attachment or other levy against the property of NCCAA with respect to a claim remains unpaid, undischarged, or not dismissed for a period of 30 days. d, NCCAA makes an assignment for the benefit of creditors, e, NCCAA files a petition in bankruptcy, or is adjudicated insolvent or bankrupt. f. If taxes on property owed by NCCAA become delinquent, and NCCAA fails to timely and properly follow the legal procedures for protest or contest. g, NCCAA changes the general character of its business as conducted on or following the date this Agreement is approved by the Corporation, 16. Notice of Default. Should the Corporation or City determine that NCCAA is in default according to the terms of this Agreement, the Corporation or City shall notify NCCAA in writing of the event of default and provide 60 days from the date of the notice ("Cure Period") for NCCAA to cure the event of default. 17. Results of Uncured Default. After exhausting good faith attempts to address any default during the Cure Period, and taking into account any extenuating circumstances that might have occurred through no fault of NCCAA, as determined by the Board of Directors of the Corporation, the following actions must be taken for any default that remains uncured after the Cure Period: a. NCCAA shall immediately pay to Corporation, with interest at the interest rate paid by the City on its most recently issued general obligation bonds from date of expiration of Cure Period until fully paid, all funds not used in accordance with this Program Agreement. b. NCCAA shall pay Corporation reasonable attorney fees and costs of court to collect amounts due to Corporation, c. The Corporation shall have no further obligations to NCCAA under this Program Agreement and this Program Agreement shall terminate. Affordable Housing- NCCM Pilot Infill Proj Agmt doc. doc Page 7 of 11 d. Neither the City nor the Corporation may be held liable for any consequential damages, e. The Corporation may pursue all remedies available under law, 18. No Waiver. a, No waiver of any covenant or condition, or the breach of any covenant or condition of this Program Agreement, constitutes a waiver of any subsequent breach of the covenant or condition of the Program Agreement. b, No waiver of any covenant or condition, or the breach of any covenant or condition of this Program Agreement, justifies or authorizes the nonobservance on any other occasion of the covenant or condition or any other covenant or condition of this Program Agreement. c, Any waiver or indulgence of NCCAA default may not be considered an estoppel against the Corporation, d, It is expressly understood that if at any time NCCAA is in default in any of its conditions or covenants of this Program Agreement, the failure on the part of the Corporation to promptly avail itself of the rights and remedies that the Corporation may have, will not be considered a waiver on the part of the Corporation, but Corporation may at any time avail itself of the rights or remedies or elect to terminate this Program Agreement on account of the default. 19. Notices. a, Any required written notices shall be sent, certified mail, return receipt requested, addressed as follows: If to NCCAA: Nueces County Community Action Agency Attn: Executive Director 4760 Old Brownsville Road Corpus Christi, Texas 78405 If to Corporation: City of Corpus Christi Business and Job Development Corporation Attn: Executive Director 1201 Leopard Street Corpus Christi, Texas 78401 b, A copy of all notices and correspondence must be sent to the City at the following address: Affordable Housing- NCCAA Pilot Infill Proj Agmt doc.doc Page 8 of 11 - City of Corpus Christi Attn,: City Manager P,O, Box 9277 Corpus Christi, Texas 78469-9277 c, Notice is effective upon deposit in the United States mail in the manner provided above, 20. Incorporation of other documents. The Corpus Christi Business & Job Development Corporation 4a Board Affordable Housing Request for Proposals issued October 22, 2004 is incorporated into this Program Agreement. 21. Relationship of Parties. In performing this Agreement, the Corporation, NCCAA and the City 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, 22. Nonassignment. The NCCAA may not assign, mortgage, pledge, or transfer this Program Agreement or any interest contained in this Program Agreement without the prior written consent of the other parties to this Program Agreement. 23. Non-discrimination. The NCCAA may not discriminate nor permit discrimination against any person or group of persons on the grounds of race, gender, disability, religion, age, or national origin in any manner prohibited by the laws of the United States or the State of Texas, The City Manager retains the right to take any action the United States or the State of Texas may direct to enforce this non-discrimination covenant. 24. Captions. The captions in this Program Agreement are for convenience only and are not a part of this Program Agreement. The captions do not in any way limit or am- plify the terms and provisions of this Program Agreement. 25. Entire Agreement. This Program Agreement and the referenced and incorpo- rated documents constitute the entire agreement between the Corporation, the City, and the NCCAA for the purpose stated, All other agreements, promises, representations, and understandings, oral or otherwise, with reference to the subject matter of this Pro- gram Agreement, unless contained in this Program Agreement, are expressly revoked, as the parties intended to provide for a complete understanding, within the provisions of this Program Agreement and its referenced and incorporated documents, of the terms, conditions, promises, and covenants relating to the each party's required performance under this Program Agreement. Affordable Housing- NCCAA Pilot Infill Proj Agmt doc. doc Page 9 of 11 CORPUS CHRISTI BUSINESS & JOB DEVELOPMENT CORPORATION Signature Title Printed name: Date: ACKNOWLEDGMENT STATE OF TEXAS s s s KNOW ALL BY THESE PRESENTS: COUNTY OF NUECES This instrument was acknowledged before me on , 2005, by as the (title) of the Corpus Christi Business and Job Development Corporation, a Texas nonprofit corporation, on behalf of the corporation, (seal) NOTARY PUBLIC, State of Texas ATTEST: CITY OF CORPUS CHRISTI Armando Chapa City Secretary George K, Noe City Manager Date: Date: APPROVED AS TO FORM: Assistant City Attorney for the City Attorney NUECES COUNTY COMMUNITY ACTION AGENCY Signature Title Printed name: Date: Affordable Housing- NCCAA Pilot Infill Proj Agmt doc. doc Page 1 0 of 11 - '