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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: H \LEG- DIR\Shared \GaryS\ agenda \2006 \11- 14 \RES- ModelBlock.doc 027059 Page 2 of 3 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 H \LEG -DIR\ Shared \GaryS\ agenda \2006 \11- 141RES- ModelBlock.doc Page 3 of 3 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 H'`\LEG -DIR\ Shared \GaryS\ agenda\ 2006'11- 141RES- ExtremeHomes.doc 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. Affordable Housing City MODELBLOCK REVITALIZATION PROGRAM2006.doc Page 1 of 8 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 Affordable Housing City MODELBLOCK REVITALIZATION PROGRAM2006.doc Page 2 of 8 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 Affordable Housing City MODELBLOCK REVITALIZATION PROGRAM2006.doc Page 3 of 8 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. Affordable Housing City MODELBLOCK REVITALIZATION PROGRAM2006.doc Page 4 of 8 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 Affordable Housing City MODELBLOCK REVITALIZATION PROGRAM2006.doc Page 5 of 8 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 Page 6 of 8 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 Affordable Housing City MODELBLOCK REVITALIZATION PROGRAM2006.doc Page 7 of 8 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 Page 8 of 8 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�