HomeMy WebLinkAbout027802 RES - 08/12/2008Page 1 of 3
RESOLUTION
AUTHORIZING THE CORPUS CHRISTI BUSINESS AND JOB
DEVELOPMENT CORPORATION TO EXECUTE AN
AFFORDABLE HOUSING PROJECT AGREEMENT WITH CITY
OF CORPUS CHRISTI, IN THE AMOUNT OF $32,500, FOR
REIMBURSEMENT OF SUPPORT SERVICES PROVIDED TO 4A
AFFORDABLE HOUSING PROGRAMS, AND AUTHORIZING
THE CITY MANAGER, OR DESIGNEE, TO EXECUTE AN
AFFORDABLE HOUSING PROJECT SERVICE AGREEMENT
WITH THE CORPUS CHRISTI BUSINESS AND JOB
DEVELOPMENT CORPORATION REGARDING
IMPLEMENTATION AND ADMINISTRATION OF THE
AFFORDABLE HOUSING PROJECT AGREEMENT BETWEEN
CORPORATION AND CITY OF CORPUS CHRISTI
WHEREAS, there is a need for an affordable housing project service agreement
between the City of Corpus Christi and the Corpus Christi Business and Job
Development Corporation for the implementation and administration of the
affordable housing project agreement with City of Corpus Christi for
Reimbursement of Support Services Provided to 4A Affordable Housing
Programs.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF CORPUS CHRISTI, TEXAS:
SECTION 1. The Corpus Christi Business and Job Development Corporation is
authorized to execute the affordable housing project agreement with City of
Corpus Christi for Reimbursement of Support Services Provided to 4A Affordable
Housing Programs, which is attached to this resolution as Exhibit A, and expend
up to $32,500 of funds available to the Corporation for that purpose.
SECTION 2. That the City Manager, or designee, is authorized to execute the
affordable housing project service agreement between the City of Corpus Christi
and the Corpus Christi Business and Job Development Corporation for the
implementation and administration of the affordable housing project agreement
with City of Corpus Christi, which is attached to this resolution as Exhibit B.
ATTEST:
Armando Chapa
City Secretary
CITY OF CORPUS CHRISTI
eery Garrtt
Mayor
027802
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Page 2of3
APPROVED as to form: July /2008
R. Jay
First Pssista'nt City ' orney
For the City Attor -y
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Corpus Christi, Texas
Iz
of
, 2008
The above resolution was passed by the following vote:
Henry Garrett
Melody Cooper
Larry Elizondo, Sr.
Mike Hummel'
Bill Kelly
Priscilla G. Leal
John E. Marez
Nelda Martinez
Michael McCutchon
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027802
H:ILEG-DIR\SharedUayAgenda1200818-121Res-Affordale Housing-CityofCC.doc
print on Green Paper] I
CITY OF CORPUS CHRISTI
CERTIFICATION OF FUNDS
(City Charter Article IV, Sections 7 & 8)
I, 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: August 12, 2008
Agenda Item:
D. Resolution authorizing the Corpus Christi Business and Job Development Corporation to
execute an affordable housing project agreement with City of Corpus Christi for
reimbursement of support services provided to 4A affordable housing programs, and
authorizing the City Manager, or designee, to execute an affordable housing project service
agreement with the Corpus Christi Business and Job Development Corporation regarding
implementation and administration of the affordable housing project agreement between
Corporation and City of Corpus Christi.
Amount Required:
$ 32,500.00
Fund Name
Fund No.
Org. No.
Account
No.
Project
No.
Amount
4A 118th Cent Sales Tax for
Economic Development
1 qv
15000
S/ o P,
$32,500.00
Total
$32,500.00
Certification Not Required
Director of Fine ncialS rvices
Date: y�Adi
AFFORDABLE HOUSING PROJECT AGREEMENT
CITY OF CORPUS CHRISTI — REIMBURSEMENT OF SUPPORT SERVICES
PROVIDED TO 4A AFFORDABLE HOUSING PROGRAMS
This Affordable Housing Project Agreement ("Project Agreement") is entered into
between the Corpus Christi Business and Job Development Corporation ("Corporation")
and the City of Corpus Christi ("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;
WHEREAS, the City submitted a proposal to the Board for reimbursement of
administrative services provided to support 4A affordable housing programs;
WHEREAS, the Board has determined that it is in the best interests of the residents of
the City of Corpus Christi that affordable housing funds be awarded, by execution of this
Project Agreement, to accomplish the affordable housing project described in this
agreement and in the City's proposal;
In consideration of the covenants, promises, and conditions stated in this Project
Agreement, the Corporation and the City agree as follows:
1. Project Agreement to Implement Affordable Housing Project. This Project
Agreement between the Corporation and 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, entitled "Reimbursement of Administrative Services Provided to
Affordable Housing - CofCC - 4A Admin 07222008.doc
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Exhibit A
Support 4A Affordable Housing Programs" ("Project") is attached to this Project
Agreement as Exhibit A, and is incorporated in this Project Agreement by reference.
2. Effective Date. The effective date of this Project Agreement is the latest date on
which a party to the Project Agreement executes this Project Agreement. ("Effective
Date")
3. Expiration Date. This Project Agreement expires on July 31, 2009.
4. Services to be Provided by City.
a. The City, through the City's City Manager, or designee ("City Manager"),
administers the funding and performs support services, including contract
administration, as outlined in this Project Agreement, for the Corporation.
b. The City's Neighborhood Services Department ("NSD") Housing Division staff
will provide the support services to the various affordable housing programs that
are funded through the Corporation. Because the NSD Housing staff is funded at
100% by federal funds through the Department of Housing and Urban
Development's (HUD) Community Development Block Grants (CDBG), it is
necessary to reimburse the Housing staff time spent on the processing and
otherwise supporting the 4A affordable housing programs and projects.
5. Grant to be Provided by Corporation. The Corporation will reimburse the City up
to $32,500.00 for support services of the Corporation's affordable housing programs
and projects.
6. Documentation and Reports.
a. The City shall maintain all documentation relating to the receipt and
expenditure of the funds provided under this Project Agreement for a period of
three years following the expiration of this Project Agreement or for such longer
period as may be required by Federal or State law.
b. The City shall provide access to all records, documents, reports, and audits,
regarding the funded activity under this Project Agreement, during regular
business hours, for the purpose of inspection and copying by the City Manager.
Furthermore, the City shall provide to the City Manager any information
pertinent to this Project Agreement, as may be requested during the term of this
Project Agreement.
c. The City shall submit a performance report ("Quarterly Report") to the City
and the Corporation at least once each quarter, and a complete performance
report ("Final Report") within 30 days of the expiration of this Project
Agreement. The Quarterly and Final Reports must contain all relevant details
pertaining to the support provided for the 4A affordable housing programs and
projects, and include any supporting documentation required to substantiate the
written narrative contained in the reports. The reports must address:
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(1) Staff time sheets
2.) Documentation of projects and support provided for 4A programs
3.) Balance of project funds
4.) Anticipated project time line.
6. Amendments or Modifications.
a. No amendments or modifications to this Project 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.
b. The Corporation's Chairman and the City Manager are authorized to execute
minor amendments or modifications to this Project Agreement, by exchange of
letters with the Corporation. The minor amendments and modifications may
relate to the timing of performance and reporting, the scope of work to be
performed, the number of homebuyers assisted, or the amount of assistance
provided to each homebuyer. However, the minor amendments or modifications
may not increase the amounts of money available to the City under this Project
Agreement.
7. Severability.
a. If for any reason, any section, paragraph, subdivision, clause, provision,
phrase or word of this Project Agreement or the application of this Project
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 Project 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 Project
Agreement that every section, paragraph, subdivision, clause, provision,
phrase, and word of this Project 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
Project Agreement, then the remainder of this Project 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 Project Agreement automatically.
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8. Compliance with Laws. The City shall comply with all applicable Federal, State,
and local government laws, rules, regulations, and ordinances which may be relevant to
the City's performance under this Project Agreement.
9. Jurisdiction and Venue.
a. This Project Agreement is governed by and must be construed under the
laws of the State of Texas.
b. All actions brought to enforce compliance with this Project Agreement must
be brought in Nueces County, Texas, where this Project Agreement was
entered into and must be performed.
10. Acknowledgment and Construction of Ambiguities. The parties expressly
agree that each has independently read and does understand this Project Agreement.
By the City's execution of this Project Agreement, the City agrees to be bound by the
terms, covenants, and conditions contained in this Project Agreement. Any ambiguities
in this Project Agreement may not be construed against the drafter.
11. Indemnity. The City 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
defects, workers' compensation, and death claims) or property loss or
damage of any kind whatsoever which arise out of or are in any
manner 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 activities by the City, its officers, employees, agents, members,
invitees, or independent contractors with respect to this Project
Agreement or the Project that is the subject of this Project
Agreement, 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 City covenants and agrees that if Indemnitees,
or any of them, are made a party to any litigation against the City or in
any litigation commenced by any party other than the City relating to
this Project Agreement or Project, the City shall, upon receipt of
reasonable notice regarding commencement of litigation, at its own
expense, investigate all claims and demands, attend to their
Affordable Housing - CofCC - 4A Admin 07222008.doc
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settlement 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.
12. Warranties. The City warrants and represents to Corporation the following:
a. The City is a duly organized, validly existing, and in good standing under the
laws of the State of Texas, has all authority to carry on its business as presently
conducted in Corpus Christi, Texas.
b. The City has the authority to enter into and perform, and will perform, the
terms of this Project 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 Project Agreement must be utilized solely for purposes
authorized under State law and by the terms of this Project 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 Project Agreement on behalf of the City are duly
authorized to execute this Project Agreement on behalf of the City.
13. Events of Default. The following events constitute a default of this Agreement:
a. Failure of the City to timely, fully, and completely comply with any one or more
of the requirements, obligations, duties, terms, conditions, or warranties of this
Project Agreement.
b. The Corporation determines that any representation or warranty on behalf of
the City contained in this Project Agreement or in any financial statement,
certificate, report, proposal, or opinion submitted to the Corporation in connection
with this Project Agreement was incorrect or misleading in any material respect
when made.
c. The City changes the general character of its business as conducted on or
following the date this Agreement is approved by the Corporation.
14. Notice of Default. Should the Corporation determine that the City is in default
under the terms of this Agreement, the Corporation shall notify the City in writing of the
event of default and provide 60 days from the date of the notice ("Cure Period") for the
City to cure the event of default.
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15. 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 the City, 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. The City shall immediately repay 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 under terms of
this Project Agreement.
b. The City 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 the City under this Project
Agreement and this Project Agreement shall terminate.
d. The Corporation may be held liable for any consequential damages.
e. The Corporation may pursue all remedies available under law.
16. No Waiver.
a. No waiver of any covenant or condition, or the breach of any covenant or
condition of this Project Agreement, constitutes a waiver of any subsequent
breach of the covenant or condition of the Project Agreement.
b. No waiver of any covenant or condition, or the breach of any covenant or
condition of this Project Agreement, justifies or authorizes the nonobservance on
any other occasion of the covenant or condition or any other covenant or
condition of this Project Agreement.
c. Any waiver or indulgence of the City's 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 Project 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 Project Agreement on account of the default.
17. Notices.
a. Any required written notices shall be sent, certified mail, return receipt
requested, addressed as follows:
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If to the City:
City of Corpus Christi
Attn.: City Manager
P.O. Box 9277
Corpus Christi, Texas 78469-9277
If to Corporation:
City of Corpus Christi Business and Job Development Corporation
Attn: Executive Director
1201 Leopard Street
Corpus Christi, Texas 78401
b. Notice is effective upon deposit in the United States mail in the manner
provided in subsection a of this section.
18. Incorporation of other documents.
The Corpus Christi Business & Job Development Corporation 4A Board
Affordable Housing Request for Proposals issued April 7, 2008, is incorporated
into this Project Agreement.
19. Relationship of Parties. In performing this 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.
20. Nonassignment. The City may not assign, mortgage, pledge, or transfer this
Project Agreement or any interest contained in this Project Agreement without the prior
written consent of the other parties to this Project Agreement.
21. Non-discrimination.
a. The City 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.
b. The Corporation retains the right to take any action the United States or the State
of Texas may direct to enforce this non-discrimination covenant.
22. Captions. The captions in this Project Agreement are for convenience only and
are not a part of this Project Agreement. The captions do not in any way limit or amplify
the terms and provisions of this Project Agreement.
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23. Entire Agreement. This Project Agreement and the referenced and incorporated
documents constitute the entire agreement between the Corporation, the City, 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 Project
Agreement, unless contained in this Project Agreement, are expressly revoked, as the
parties intended to provide for a complete understanding, within the provisions of this
Project Agreement and its referenced and incorporated documents, of the terms,
conditions, promises, and covenants relating to the each party's required performance
under this Project Agreement.
CORPUS CHRISTI BUSINESS &
JOB DEVELOPMENT CORPORATION
Eloy Salazar
Chairman
ATTEST:
Date
CITY OF CORPUS CHRISTI
Armando Chapa George K. Noe
City Secretary City Manager
Date: Date:
APPROVED AS TO FORM: ..)..Ira IP'', goo8
R. Jay Re rrl'ng
First Assistant City Attorney
for the City Attorney
Affordable Housing - CofCC - 4A Admin 07222008.doc
Page 8 of 8
Response to 2008 Request for Proposal
"4A Board Affordable Housing Program"
Corpus Christi Business and Job Development Corporation
Submitted By:
City of Corpus Christi
NEIGHBORHOOD SERVICES DEPARTMENT
Project: Other
Administrative Service for 4A Projects
4A Funding Request: $27,500 (Grant)
Exhibit A
LETTER OF TRANSMITTAL
May 1, 2008
City Secretary Office
City of Corpus Christi
Attention: Armando Chapa, City Secretary
1201 Leopard
Corpus Christi, TX 78469-9277
Enclosed is the City of Corpus Christi, Neighborhood Services Department's
2008 proposal for a grant in the amount of $27,500 regarding the 4A Board's
Affordable Housing Programs for consideration and funding. We have reviewed
the proposal requirements and we are submitting the necessary 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,
e Morales Haag
tor
rghborhood Services Department
QUALIFICATIONS & EXPERIENCE
General
The City of Corpus Christi through the Neighborhood Services Department
(NSD) is applying for a grant in the amount of $27,500 through the 4A Board
Affordable Housing Program for reimbursement of administrative services
provided to support 4A Affordable Housing Programs.
It is our desire to continue to assist in the development of affordable housing
units by expanding the number of affordable housing units in the City of Corpus
Christi. Neighborhood Services Department is the main entity that has carried
the responsibility of developing and promoting affordable housing in the City of
Corpus Christi for low income and very low income families for the last 30 years.
Qualifications & Experience
Neighborhood Services Department (NSD) has extensive experience managing
and administrating housing programs for low income families. NSD has worked
with new construction and rehabilitation programs for the last 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 several years of experience administering housing programs that
assist low 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 also has played an integral role in assisting
other community organizations in developing their capacity to provide affordable
housing. NSD created and provides support staff for the Corpus Christi
Community Development Corporation (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 including homebuyer programs. During the last 30
years NSD has assisted over one thousand families through its various
programs. Throughout these years NSD has provided assistance in
rehabilitation, emergency repairs, and home buying and is highly adapt at
working with low income households, realtors, builders, and lenders.
NSD is responsible for managing 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. NSD staff has shown they are capable of managing HUD funds and
following federal regulations.
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.
nne Morales Haag, Director
041- c50- v 8
Date
Project Scope:
Leveraging:
Time Frame:
LEVEL OF ASSISTANCE
Neighborhood Services Department (NSD) is
requesting $27,500 in the form of a grant and
proposes to provide administrative services to support
various programs that are funded through the Corpus
Christi Business and Job Development Corporation
(4A Board) Affordable Housing Programs.
The Neighborhood Services Department's Housing
Division staff is funded at 100% by Federal Funds
through the Department of Housing and Urban
Developments (HUD) Community Development Block
Grants (CDBG). All staff funded by HUD CDBG is
regulated to provide services primarily for HUD
programs and within CDBG eligible areas.
It is necessary to reimburse the Housing Services
staff time spent on the processing and administering
of 4A Affordable Housing Programs or any other non -
federally funded programs.
The Neighborhood Services Housing Staff has been
providing a variety of administrative services to
support 4A Affordable Housing Programs proposed
by other non-profit and for profit organizations. In
addition, the staff provides support for the programs
proposed by the City of Corpus Christi to leverage
HUD CDBG and HOME program funds.
This proposal would eliminate the necessity to hire
staff to administer the 4A Affordable Housing
Programs. The opportunity to utilize existing,
experienced, and trained Housing Services staff
members to administer these programs is a
resourceful strategy and beneficial use of 4A funds.
NSD anticipates providing these administrative
services during the fiscal year August 2008 to July
2009.
Estimate of staff time necessary for administration and field over site for
4A Projects:
(Estimate based on 4A Projected currently allocated funding)
ADMINISTRATION COSTS:
Housing Program Administrator
5 minutes per case x $2.75 per case
$2.75
Housing Property Supervisor
.5 hours per case x $20.17 per hour= $10.00 $10.00
Property Advisors $18.00
1 hour per case x $18.30 per hour= $18.00
Loan Processor Supervisor $59.00
2.5 hours per case x $23.67= $59.17
Loan Processors $305.75
25 hours per case x $12.23 per hour=$305.75
Total Administrative cost per case $395.50
4A PROJECTS:
21 - Home Buyer Assistance Program processed
(Existing homes $5,000 loans)
14 - New Construction projects processed
(New homes $15,000 to $20,000)
16 - New Construction - Extreme Homes
12 - New Construction — NCCAA
6 - In -Fill Housing projects
Total Number of 4a cases processed
21
14
16
12
6
69
69 cases x $395.50 per case = $27,289.50
AFFORDABLE HOUSING PROJECT SERVICE AGREEMENT
This Affordable Housing Project Service Agreement (" Service Agreement") is entered
into between the Corpus Christi Business and Job Development Corporation
("Corporation") and the City of Corpus Christi, Texas ("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 ("City")
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 Corporation is authorized to promote the development and expansion
of affordable housing, as defined by 42 U.S.C. Section12745, for the citizens of Corpus
Christi, Texas;
WHEREAS, on April 7, 2008, the Board issued a request for proposals for affordable
housing projects;
WHEREAS, Section 21 of the Texas Development Corporation Act of 1979, Art. 5190.6,
Vernon's Texas Revised Civil Statutes, requires the City Council to approve all
programs and expenditures of the Corporation;
WHEREAS, City of Corpus Christi ("Grantee") submitted a proposal to the Board to
request funds for the Reimbursement of Support Services Provided to 4A Affordable
Housing Programs;
WHEREAS, the Board has determined that it is in the best interests of the residents of
the City of Corpus Christi that affordable housing funds be awarded, and by execution
of the Affordable Housing Project Agreement between the Board and Grantee, to
accomplish the affordable housing project described in that agreement and the
Grantee's proposal;
Page 1 of 3
H:1LEG-DIRISharedUay1Agenda1200818-12\Affordable Housing Project Service Agreement 4A-CityofCC.doc
Fxhibit B
WHEREAS, the City Council concurs with the Board's determination that it is in the best
interests of the residents of the City of Corpus Christi that affordable housing funds be
awarded. The City Council authorizes the Affordable Housing Project Agreement
between the Board and Grantee;
In consideration of the covenants, promises, and conditions stated in this Service
Agreement, the Corporation and the City agree as follows:
1. Service Agreement to Implement Affordable Housing Project Agreement. This
Service Agreement between the City and the Corporation is executed to implement the
Affordable Housing Project Agreement between the Corporation and Grantee.
2. Term. The term of this Service Agreement runs concurrently with the term of the
Affordable Housing Project Agreement.
3. Services to be Provided by City.
a. The City Manager, or the City Manager's designee, shall administer funding
on behalf of the Corporation.
b. The City Manager, or the City Manager's designee, shall perform contract
administration responsibilities outlined in the Affordable Housing Project
Agreement for the Corporation.
4. Appropriation of Funds. Any future payments by the City are subject to
appropriation of funds by City's Council.
5. Effective Date. The effective date of this Service Agreement is the latest date that
either party executes this Service Agreement.
6. Amendments or Modifications. No amendments or modifications to this Service
Agreement may be made, nor any provision waived, unless in writing signed by a
person duly authorized to sign agreements on behalf of each party.
7. Severability.
a. If for any reason, any section, paragraph, subdivision, clause, provision,
phrase or word of this Service Agreement or the application of this Service
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 Service 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 Service
Agreement that every section, paragraph, subdivision, clause, provision, phrase,
or word of this Service Agreement be given full force and effect for its purpose.
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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
Service Agreement, then the remainder of this Service 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 Service Agreement automatically.
8. Captions. The captions in this Service Agreement are for convenience only and are
not a part of this Service Agreement. The captions do not in any way limit or amplify the
terms and provisions of this Service Agreement.
The City of Corpus Christi Corpus Christi Business &
Job Development Corporation
George K. Noe Eloy Salazar
City Manager Chairperson
Date: Date:
Attest
Armando Chapa
City Secretary
Approved as to Legal Form this day of July, 2008.
R. Jay Reining
First Assistant City Attorney
for City Attorney
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