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HomeMy WebLinkAboutC2006-538 - 11/14/2006 - ApprovedAFFORDABLE HOUSING PROGRAM AGREEMENT CITY OF CORPUS CHRISTI IVlODEL 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. WHE~tEAS, 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 yea rs; 1lVHEREAS, 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 appraved 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; WHER~AS, 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 ("Boar~i"): 1A~HER~AS, the Board issued a request for proposals for affordable housing projects: -- ~ W~iEREAS, the City through its Neighborhood Services Department manages severai programs to assist eligible citizens in purchase of affordable housing; W~tiEREAS, the City submitted a proposal to the Board to request grant funds to provide support for the neighborhood revitalization projects within the Model Block Progr~n that wi1l be dedicated for the purchase of land, new construction of single family housing, assaciated infrastructure, and home buyer assistance for down payment and closing costs, and assist to buy down the cost of construction; WW~IIEREAS, 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. 2006-538 11/14/06 OCK REVITALIZATION PROGRAM2006.doc ~.~,8 J~C Res0270S9 Page 1 of 8 1~VHEREAS, 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; 1A/HEREAS, the City Council approved the Corporation's affordable housing program 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. P~+ogram 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 respanse 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. Ef~ective Date. The effective date of this Program Agreement is the date on which the Ci#y Council grants approval to the Corporation for this Project, so long as all parties have executed this Program Agreement. 3. Te~m. The term of this Program Agreement extends thirty-six (36) months from the date the last party executes this document. 4. Service~s to be Provided by City a. The City, through the City's City Manager or his designee ("City Manager"), shal~ administer funding and perform contract administration responsibilities, as outtined 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 ~nd 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. ~. 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. ~cumentation 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 Ciry MODELBL.OCK 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, Atnenc~ments 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. S~verability. 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. Affordabte Housing City MODELBLOCK REVITALIZATION PROGRAM2006.doc Page 4 of 8 ,~. ~ , ~. _ _~ ._ ..~. _. .~_ ~ m _ .., . ,.~ _ _ . ~__,. W.,_ .__..a~ ,.,~~ _ __.~. ~..,... ..~,..~..._. .._._...~~.. .~~..... _ ..... .,.... ~. _._.. _.,~ 11. Acknv~vledgment and Construction of Ambiguities. The parties expressly agre~ 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. Warr~tnties. The Ci#y 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 Iocal, 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 tf 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 VV~aiver. 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 A.ffordable 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. t~otices. a. Any required written notices shall be sent, certified mail, return receipt req~sted, 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. fncor}~oration of o~er documents. The Corpus Christi Business & Job Developrnent Corporation 4A Board Affordable Housing Request for Proposals issued January 9, 2006 are incorporated into this Program Agreement. 16. Rela~nship 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 em~loyees or agents of either party may not be, nor be construed to be, the employees or a~ents of the other party for any purpose. 17. Nonassignment. This Program Agreement may not be assigned, mortgaged, plec~ged, 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 _ , .~ ~ .~. ._ .~,._ ... ,~,~ ~. . . ~. dn ~_ .~ ._ ~ ..a.~{~~.~.~_~.. ._.~.~.. ~.~..,~.._._.. relig~on, age, or national origin in any manner prohibited by the laws of the United States or fihe State of Texas. 19. Capt~ons. 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 incorporafied 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 ATTEST: ,-, Armando Chapa, City Secretary CORPUS CHRISTI BUSINESS & JOB DEVELOPMENT CORPOR~4TION n, C;hair~~~sc~n Date: ACKNOWLEDGMENT STATE OF TEXAS § § COUNTY OF NUECES § KNOW ALL BY THESE PRESENTS: ,~,, ,-, This instrument was acknowledged before me on ~,~1~~,.~-~~ Z~% , 2006, by GAIL HOFFMAN as the Chairperson of the Corpus Christi Business and Job De~eloprnent Corporation, a Texas nonprofit corpb~tion, on behalf of the ~orporation. '~ ~ } 1`,...~ t.: ~•~ ,~ ~ ~`-''~~' ~~~~ TAMERA L RILEY State of Texa ~ NOTARY PUBLIC, ;.;,~1,, Notary Public ~~~~~J STATE OF 7EXAS My Comm. Exp. 05-26-2008 Afforclable Housing City MODELBLOCK REVITALIZATION PROGRAM2006.doc Page 7 of 8 ATTEST: ~ Arm~ndo Chapa City Secretary CITY F CORPUS CHRISTI ,~~ Ge e K. Noe City Manager ~ ~ -~ ~ ~ ~ ~ Date: APPfZOVED AS TO FORM: ~/t~rervibw 4, ~oOL !'fk., G ry . Smith Assistant City Attorney for the City Attorney ~ c ~,~ ~,~,GZ~l t S r ~~,U a~c~~~t.~~.~ ~~! ~?~~Gi~. ~._...~.._. I I i ( ut, . _. ~. _.,. _.. _.., . _.......... . ...... ~ ~;~t'~ra~~.,~~~ Affordable Housing City MODELBLOCK REVITALIZATION PROGRAM2006.doc Page 8 of 8 C~rpus Christi Business and Job ~3e~eloprr~ent Corporation Affordable Hou~ing Project Cr~-T~GORY Iil. OTHER ~RG~INIZA~'ION: CITY OF CORPUS CHRISTI, NEIG#-IBORHOOD SERVICES DEPARTMENT !=xhibit A Response to Z006 Request for Proposal "4A ~ard A#for+dable Housing Program" Subn~itted By: City of Corpus Christi NI~It~180R~OD S~RVICES ~PARTMENT Project: ;250,OOt1 Model Bbck Program - Af'fo~d~le Housing February 3, 2006 City Secretary ~c~e City of ~ Christi Att~#io~: A~endo Chapa, City Secretary 1201 La~perd Corpus Chris~, TX 78~9-~77 Dea~ Mr. Chape: Endose~d is !#~e City of Corpus Christi, Neigt~b~orhood Servic~s Department's ~006 proposai in Mt~e amaxrt d 5250,000 regarding the 4a Board's AfFordat~le Housing Prograr~s for ~onsid~eration snd fimding. VVe have reviewed the proposal reqt~rements and we ~e s~bmitting the proposal doam~ents. For any addi~nal infamatian regerding this proposal, please contad me at 826-3234. We loolr #orw~rd to working with the 4a Board's AfFord~le Housing Program. Sincer~, t~-~ a~s Haeg Neighbdtwod Servioes D~erbnent QUALIF~CATIDNS 8~ EXPERIENCE The Cii~r of C~orpus Christi throu~ the Neighborhood Senric~s Department (NSD) is applyinQ for ~t50,000 through the 4a Board AifoMable Housing Pro~am. tt is our desire ~ con~nue to assist in the develc~prnen# af affordable housing by expanding the number of a~Aordable housing un~s in the City ofi Cor~ws Christi. Neighborhood Services Depf~rtmerrt is the main entity that has carried the responsibility of developing and pro~notir~g affondable hcwsing in the City aF Corpus Christi for low income and very fow incx~rne fa~nilies for the Isst 30 years. Qu~ifi~tior~ ~ Exosrience Neigi~bvrhood Servicss Depertment hes extensive experienoe managing and adminis~tatin~ housin8 pro~r~rrns for low irx~ome families. NSD has w~orked with new constn~ion ~nd rehabitita!i~n pro~~ for the tast 30 years and has assisted over a thousand ha~reowners and homebuyers with their housing needs. The programs adminislered by NSD ere monitored by HUD, and are found to be managed withhin approved propram guideline,s. NSD has a s~lFf that is high~r quat'tfied and experienced in marmging housing programs. The tea~ that wiU be manaping the 4a Board Aifordable Housing Program has over 30 years e~eperiet~ce administering housing programs that assist low irx~ome famifies. Currenflyr, th~ team man~es a$5,000 Homebuyer Assistanoe Program and a New Constn~tion Hanebuyer Program. AdditionaNy, this team manages a Reh~ilitation Loan Rr~gra~, Demolition and Replaoement Loan Program and an Emergency Home Repair Grant Program. ll~rough these pnograms approximately 500 families are assisted on an anrxaal basis. Neigl~rhood Servic~s Department has aiso played an integr~ role in assisting a~her c~mm~t~r a~enizations in d~~~loping their capaaty to provide affordable housing. NSD cx+~eted ~and provides support sta~f for the Corpus Christi Community Development Corpora~ion (CDC) which was established to provide and assist in cr~ting a~foirdable housing. NS~ also was ir~trumental in assisting Nueces County Community Action Agency with ~ablishing thsir homebuyer programs. CAR~IBILITES STATEMENT Neighbr~rt~ood Servioes D~tment (NSD) has adminisEered artd martaged various housin~ propr~ems indudir~ homebuyer programs- During the last 30 ye~rs NSD has assiste~ over one thousand famiiies tlxou8h its varic~us p~+ograms. Throughvut these years t++~SD Mes provided assistarx~ in rehabiiita#icm, en~ergency repairs, and home buying end is highly sKiapt at vvorking w~th law income househdds, realtors, buikiers and lenders. NSD is respa~ible for mar~eging ~d administering the funds the City aF Corpus Ctxisti receive~ from the Departmmt of Housing and Urban Deveiopmerrt. During the past 30 years P~SD t~s reoeived an average of 5 milHon doll~s per year to c~ry aat verfous housinQ pro~ams and ae~sist community non profit orger~izations with their faality needs. NS~ ~taff has sho~m they are capabie of rnanaging HUD funds ~d fol{owing federal t~eguls~ons. A~K[VQWLEDGEMENT This is to ~v~owlecl~e thet w~e ha~ve revi~w~d all the provisions ofi the request for P~'oPo~ ~d lurther c~ertify we wiN oorripiy wifh aN its requir~ments. ~ Mo Hasg, Dit~ecta LE~/EL OF ASSISTANCE Project Scop~: Neig~borht~wd Services Departme~t is requesting $250,00p in 4A fimds to provide supp~rt for the neighbo~hood nevit~ pro~ts within the Mociei Biock Program that will be dediceted tor the purchese af Gand, ngw construction of singie famiiy housing ('m-fill hous~n9), associeted iMrastr~x~ure, and home buyers assistarx~e for down payment and dosing costs. The t~lodel Blodc Pro~am is a new initiative devel~ed by the City of Corpus Christi as an ot~Ctive to aocomptish a Cit~r Counci{ priority goal of Neighbofiood Revii~liz~q~. The Mvdel Bbdc Program is a oomprehensive plan to pcovide opportunities and resa~e,ir+ces for an improved quatity of life in a des~ignated neighbor~t~ditarget aree (15-20 city blodc radius~ identified for potential revitalization and devek~prnent- The Modei Blodc Program is designed to identify and address several major issues within a tar~eted area induding: Neighbort~ood ~d ec~onomic stability; prev~ention of furth~r houting and neighborhood deteriora#ion; resouroe availability; land ass~nbly for rsnova~cx~ and redevelopmerrt (infill housing); a~fordable housing development; and a~peci~ needs hous~ng issues. The targeted area will be determined bases on a neigF~bort~od needs assessment conducted by a consultant funded by aHocabons from ~e D~epartment of Housing and Urban Development, Community Development Block Grarrt. Leveraling: Neig~borh~ad Senrices Department plans to leverage 4A funds with HUD Home Prog~em a~d Communi~r [~evelopment Blodc Grent funds for a total projec~ oost of one r~iilion dotlars. Nuntbe~ Assisted: Neig~IbcxMviod Services Departmerrt anticipates that throu~t the Nbdel Blodc ProgA~m wre wilt be abie to assist approximately 50 or more families with the $250,~00 in 4a funds. Time Fe~me: Neig~orh~d Servic~s Department antiapates cerrying out the Affordable Housing aspe~t af ~e Mode! Bbdc Program within a iwo-three year contraci with the desig~ated neighba'hood.