HomeMy WebLinkAbout027059 RES - 11/14/2006Page 1 of 3
RESOLUTION
APPROVING THE EXECUTION OF AN AFFORDABLE HOUSING PROGRAM
AGREEMENT BETWEEN THE CORPUS CHRISTI BUSINESS AND JOB
DEVELOPMENT CORPORATION AND THE CITY OF CORPUS CHRISTI TO
ALLOW THE CORPORATION TO GRANT $200,000 TO THE CITY FOR THE
MODEL BLOCK PROGRAM - INFILL 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 Corpus Christi Business and Job Development
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, the City of Corpus Christi Neighborhood Services Department submitted a
proposal to the Board to request $250,000 in grant funds for Model Block Program —
Infill Housing Project; and
WHEREAS, the Board has determined that it is in the best interests of the residents of
the City of Corpus Christi that the City be awarded affordable housing funds in the
amount of $200,000.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS,
THAT:
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027059
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SECTION 1. The City Council of the City of Corpus Christi, Texas, approves the
execution of an Affordable Housing Program Agreement between the Corpus Christi
Business and Job Development Corporation ( "Corporation ") and the City of Corpus
Christi ( "City ") to allow the Corporation to grant $200,000 to the City for the Model Block
Program - 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
reference above on behalf of the City.
ATTEST:
Armando Chapa
Assistant City Secretary
Approved as to form: November 8, 2006
strrinvi,
Gary Smith
Assistant City Attorney
For the City Attorney
CITY OF CORPUS CHRISTI
H - my Garr: t
Mayor, City of Corpus Christi
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Corpus Christi, Texas
C rj i
' 1
of NUVeotbe,I, 2006
The above resolution was passed by the following vote:
Henry Garrett
Brent Chesney
John E. Marez
Melody Cooper
Jerry Garcia
William Kelly
Rex A. Kinnison
Jesse Noyola
Mark Scott
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AFFORDABLE HOUSING PROGRAM AGREEMENT
CITY OF CORPUS CHRISTI
MODEL BLOCK PROGRAM — NEIGHBORHOOD REVITALIZATION PROGRAM
This Affordable Housing Program Agreement ( "Program Agreement ") is entered
into between the Corpus Christi Business and Job Development Corporation
( "Corporation ") and the City of Corpus Christi ( "City ") a Texas home rule municipality.
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
WHEREAS, the City through its Neighborhood Services Department manages
several programs to assist eligible citizens in purchase of affordable housing;
WHEREAS, the City submitted a proposal to the Board to request grant funds to
provide support for the neighborhood revitalization projects within the Model Block
Program that will be dedicated for the purchase of land, new construction of single
family housing, associated infrastructure, and home buyer assistance for down payment
and closing costs, and assist to buy down the cost of construction;
WHEREAS, the Board has determined that it is in the best interests of the residents
of the City of Corpus Christi that the City be awarded affordable housing funds, by
execution of this Program Agreement, to accomplish the affordable housing project
described in this agreement and in the City's proposal.
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Exhibit A
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;
WHEREAS, the City Council approved the Corporation's affordable housing
prograrn and selection of the City as a recipient of affordable housing funds on
November 14, 2006; and
In consideration of the covenants, promises, and conditions stated in this Program
Agreement, the Corporation and the City agree as follows:
1. Program Agreement to Implement Affordable Housing Project. This Program
Agreement between the Corporation and the City is executed to implement the
promotion and development of an affordable housing project proposed by the City in
response to the Board's request for proposals ( "Project Response "). The Project
Response submitted by the City titled "Project: Model Block Program — Neighborhood
Revitalization ( "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 thirty -six (36) 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 will provide various homeowner assistance to the eligible residents in
the designated Model Block Area bounded by Agnes Street, S. Staples Street,
Morgan Avenue and Texas Highway 183 (Crosstown Expressway) to include:
emergency repair grants for the elderly and disabled; homebuyer assistance of
down payment and closing costs for the purchase of existing and new
construction housing. Said home must meets the guidelines and criteria outlined
in the Corporation's Request for Proposals for Affordable Housing. Said home
must also meet definition of "affordable housing" found in Title 42 of the United
States Code, Section 12745, in accordance with the requirement in the Texas
Development Corporation Act of 1979. These services will be provided by the
Neighborhood Services Department Housing Assistance Division through the
established program administration.
c. The City, through the Neighborhood Services Department Model Block
Program, will conduct an assessment, inventory, and acquisition of all available
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lands for the development of affordable in -fill housing in the designated Model
Block Program area.
e. Prior to the distribution of funds provided under this Program Agreement, the
Director of the City's Neighborhood Services Department or the Director's
designee ( "Director ") shall review the anticipated purchase transaction as it
pertains to eligibility, location and amount.
f. The City shall provide homeownership counseling to all qualified Homeowners
of homes purchased with funds provided under this Program Agreement.
g. The City will provide funding assistance to supplement the fees associated with
infrastructure and construction costs to provide an economic incentive to
builders and a direct benefit to homebuyers by sustaining affordability.
h. The City shall recruit potential homebuyers for affordable housing ownership
pursuant to this Program Agreement. The Director shall ensure that each
potential homebuyer's family qualifies as a low -to- moderate income family in
accordance with Federal, State and City housing laws, rules, and regulations.
5. Payment of Funds.
a. The Corporation authorizes the City to grant, from allocated sales tax revenues,
up to $200,000 for neighborhood revitalization projects associated with the
Model Block Program pursuant to this Program Agreement.
b. Any funds provided by the Corporation under the provisions of this Program
Agreement 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
Corporation by the City.
c. Payment of the funds will be made by the City directly to the title company or
other entities involved in the purchase transactions. Supporting documentation,
such as closing and settlement forms, must be provided to the City Director
prior to processing a request for loans, and/or eligible payments.
6. Documentation and Reports.
a. The City 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 City shall keep
records that document the provision and extent of home -buyer counseling that
was provided to each qualified homebuyer. Each counseling record must be
signed by the homebuyers and the City upon the completion of counseling.
b. The City shall provide access to all records, documents, reports, and audits,
regarding the funded activity under this Program Agreement, during regular
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business hours, for the purpose of inspection and copying by the Corporation's
designee.
c. Director shall submit a performance report ("Report") to 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
home purchases and include any supporting documentation required to
substantiate the written narrative contained in the Report.
7. Amendments or Modifications. No amendments or modifications to this Program
Agreement 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. 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
Agreement to any person or circumstance is, to any extent, held illegal, invalid,
or unenforceable under present or future law or by a final judgment of a court of
competent jurisdiction, then the remainder of this Program Agreement, or the
application 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
Agreement 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
unenforceable under present or future law effective during the term of this
Program Agreement, 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.
9. Compliance with Laws. The parties shall comply with all applicable Federal, State,
and local government laws, rules, regulations, and ordinances which may be relevant to
performance under this Program Agreement.
10. 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.
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11. Acknowledgment and Construction of Ambiguities. The parties expressly
agree that each has independently read and does understand this Program Agreement
and each party agrees to be bound by the terms, covenants, and conditions contained
in this Program Agreement. Any ambiguities in this Program Agreement may not be
construed against the drafter.
12. Warranties. The City warrants and represents to Corporation the following:
a. The City has the authority to enter into and perform, and will perform, the
terms of this Program Agreement.
b. The City 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.
c. The City 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.
d. If an audit determines that the funds were not used for authorized purposes,
the City agrees to reimburse Corporation for the sums of money spent for
purposes not authorized by law within 30 days written notice requesting
reimbursement.
e. The parties executing this Program Agreement on behalf of the City are duly
authorized to execute this Program Agreement.
13. 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 default may not be considered an estoppel
against the Corporation.
d. It is expressly understood that if at any time the City 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
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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.
14. Notices.
a. Any required written notices shall be sent, certified mail, return receipt
requested, addressed as follows:
If to Corporation:
City of Corpus Christi Business and Job Development Corporation
Attn: Executive Director
1201 Leopard Street
Corpus Christi, Texas 78401
If to City:
City of Corpus Christi
Attn.: Director of Neighborhood Services Department
P.O. Box 9277
Corpus Christi, Texas 78469 -9277
City of Corpus Christi
Attn.: City Manager
P.O. Box 9277
Corpus Christi, Texas 78469 -9277
b. Notice is effective upon deposit in the United States mail in the manner
provided above.
15. Incorporation of other documents. The Corpus Christi Business & Job
Development Corporation 4A Board Affordable Housing Request for Proposals issued
January 9, 2006 are incorporated into this Program Agreement.
16. Relationship of Parties. In performing this Program Agreement, the Corporation
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.
17. Nonassignment. This Program Agreement may not be assigned, mortgaged,
pledged, or transferred without the prior written consent of the other parties to this
Program Agreement.
18. Non- discrimination. The City may not discriminate nor permit discrimination
against any person or group of persons on the grounds of race, gender, disability,
Affordable Housing City MODELBLOCK REVITALIZATION PROGRAM2006.doc
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religion, age, or national origin in any manner prohibited by the laws of the United
States or the State of Texas.
19. 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
amplify the terms and provisions of this Program Agreement.
20. Entire Agreement. This Program Agreement and the referenced and
incorporated documents constitute the entire agreement between the Corporation and
the City for the purpose stated. All other agreements, promises, representations, and
understandings, oral or otherwise, with reference to the subject matter of this Program
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.
CORPUS CHRISTI BUSINESS &
ATTEST: JOB DEVELOPMENT CORPORATION
Armando Chapa, Gail Hoffman, Chairperson
City Secretary
Date:
ACKNOWLEDGMENT
STATE OF TEXAS
KNOW ALL BY THESE PRESENTS:
COUNTY OF NUECES §
This instrument was acknowledged before me on , 2006,
by GAIL HOFFMAN as the Chairperson of the Corpus Christi Business and Job
Development Corporation, a Texas nonprofit corporation, on behalf of the corporation.
NOTARY PUBLIC, State of Texas
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ATTEST:
Armando Chapa
City Secretary
CITY OF CORPUS CHRISTI
George K. Noe
City Manager
Date:
APPROVED AS TO FORM: Wovew►bw 9, a2o04
u.Othisik
Gary,I. Smith
Assistant City Attorney
for the City Attorney
Affordable Housing City MODELBLOCK REVITALIZATION PROGRAM2006.doc
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Corpus Christi Business and Job
development Corporation Affordable
Housing Project
CATEGORY III.
OTHER
ORGANIZATION:
CITY OF CORPUS CHRISTI,
NEIGHBORHOOD SERVICES
DEPARTMENT
Exhibit A
Response to 2008 Request for Proposal
"4A Board Affordable Housing Program"
Submitted By:
City of Corpus Christi
NEIGHBORHOOD SERVICES DEPARTMENT
Project: ;250,000 Model Block Program - Affordable Housing
February 3,2006
City Secralary Office
City of Corpus Christi
Attention: Armando Chapa, City Secretary
1201 Leopard
Corpus Christi, TX 78469-9277
Dear Mr. Chapa:
Enclosed is the City of Corpus Christi, Neighborhood Services Department's 2006
proposal in the amount of 11250,000 regarding the 4a Board's Affordable Housing
Programs for consideration and trading. We have reviewed the proposal requirements
and we are submitting the proposal documents.
For any additional information regarding this proposal, please contact me at 826-3234.
We look forward to working with the 4a Board's Affordable Housing Program.
Sincerely,
Neighborhood Services Departrient
QUALIFICATIONS & EXPERIENCE
rem!
The City of Corpus Christi through the Neighborhood Services Department (NSD) is
applying for $250,000 through the 4a Board Affordable Housing Program. It is our
(testes to contra's to assist in the development of affordable housing by expanding the
number of affordable housing units in the City of Corpus Christ. Neighborhood
Services Depadrnent is the main entity that has carried the responsibility of developing
and promoting affordable housing in the City of Corpus Christi for Iow income and very
Iow income families for the Iast 30 years.
2willoilicnikfaindwa
Neighborhood Services Department has extensive experience managing and
administrating housing programs for low income families. NSD has worked with new
construclion and rehabilltation programs for the Iast 30 years and has assisted over a
thousand homeowners and homebuyers with their housing needs. The programs
administered by NSD are monitored by HUD, and are found to be managed within
approved program guidelines.
NSD has a staff that is highly qualified and experienced in managing housing programs.
The team that will be managing the 4a Board Affordable Housing Program has over 30
years experience administering housing programs that assist Iow income families.
Currently, this team manages a $5,000 Homebuyer Assistance Program and a New
Construction Homebuyer Program. Additionally, this team manages a Rehabilitation
Loan Program, Demolition and Replacement Loan Program and an Emergency Home
Repair Grant Program. Through these programs approximately 500 families are
assisted on an annual basis.
Neighborhood Services Department has also played an integral role in assisting other
community organizations in doping their capacity to provide affordable housing.
NSD creed and provides support staff for the Corpus Christi Community Development
CorporMion (CDC) which was established to provide and assist in creating affordable
housing. NSD also was instrumental in assisting Nueces County Community Action
Agency with establishing their homebuyer programs.
CAPABILITES STATEMENT
Neighborhood Services Department (NSD) has administered and managed various
housing programs inducing homebuyer programs. During the last 30 years NSD has
assisted over one thousand families through its various programs. Throughout these
years NW, has provided assistance in rehabilitabon, emergency repairs, and home
buying and is highly adapt at working with low income households, realtors, builders
and lenders.
NSD is responsible for managing and administering the funds the City of Corpus Christi
receives from the Department of Housing and Urban Development During the past 30
years NSD has received an average of 5 million dollars per year to carry out various
housing programs and assist community non profit organizations with their facility
needs. MD staff has shown they are capable of managing HUD funds and following
federal regulatkwis.
ACKNOWLEDGEMENT
This is to acknowledge that we have reviewed all the provisions of the request for
proposal and further certify we will comply with all its requirements.
44_4 azoofr
LEVEL OF ASSISTANCE
Project Scope:
Neighborhood Services Department is requesting $250,000 in 4A funds to provide
support for the neighborhood revitalization projects within the Model Biodc Program
that wil be dedicated for the purchase of land, new construction of single family
housing (in-IN housing), associated infrastructure, and home buyers assistance for
down payment and dosing costs.
The Model Mock Program is a new initiative developed by the City of Corpus Christi
as an objective to accomplish a City Council priority goal of Neighborhood
Revitalization. The Model Block Program is a comprehensive plan to provide
opportunities and resources for an improved quality of life in a designated
neighborhood/target area (15-20 city block radius) identified for potential revitalizistion
and development.
The Model B4ock Program is designed to identify and address several major issues
within a targeted area induding: Neighborhood and economic stability; prevention of
further housing and neighborhood deterioration; resource availability; land assembly
for renovation and redevelopment (infill housing); affordable housing development;
and special needs housing issues. The targeted area will be determined bases on a
neighborhood needs assessment conducted by a consultant funded by allocations
from the Department of Housing and Urban Development, Community Development
Block Grant.
Leveraging:
Neighborhood Services Department plans to leverage 4A funds with HUD Home
Program and Community Development Block Grant funds for a total project cost of
one rniiion dollars.
Number Assisted:
Neighborhood Services Department anticipates that through the Model Bloc*
Program we will be able to assist approximately 50 or more families with the
$250,000 in 4a funds.
Time Frame:
Neighborhood Services Department anticipates carrying out the Affordable Housing
aspect of the Model Block Program within a two-three year contract with the
designated neighborhood.
CITY OF CORPUS CHRISTI
CERTIFICATION OF FUNDS
(City Charter Article IV, Sections 7 & 8)
1, the Director of Financial Services of the City of Corpus Christi, Texas (or his /her duly authorized
representative), hereby certify to the City Council and other appropriate officers that the money
required for the current fiscal year's portion of the contract, agreement, obligation or expenditure
described below is in the Treasury to the credit of the Fund specified below, from which it is to be
drawn, and has not been appropriated for any other purpose. Future payments are subject to
annual appropriation by the City Council.
City Council Action Date November 14, 2006
Agenda Item:
B. Resolution approving the execution of an Affordable Housing Program Agreement between the Corpus
Christi Business and Job Development Corporation ( "Corporation") and the City of Corpus Christi
( "City") to allow the Corporation to grant $200,000 to the City for the Model Block Program - Infill
Housing Project as part of an Affordable Housing Program; and authorizing the City Manager to
execute the Program Agreement on behalf of the City.
Amount Required:
$ 200,000.00
Fund Name I
Fund No.
Org. No.
Account
No.
Project
No.
Amount
4A 118th Cent Sales Tax for
Economic Development
$200,000.00
Total
$200,000.00
Certification Not Required
1t2 z,�`
Director of Financial Se ices
Date: ! / / i�