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HomeMy WebLinkAboutC2008-289 - 8/12/2008 - ApprovedAFFORDABLE 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 26, 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 26 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 s~~hmit+arl h.. +he r`:+.. --titled "Reimbursement of Administrative Services Provided to 2008-289 08/12/08 Page 1 of 8 Res. 027802 nin o~zzzooe.doc City of Corpus Christi - 4A Board 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 pertorms 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: Page 2 of 8 Affordable Housing • CofCC - 4A Admin 07222008.doc (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. Page 3 of 8 Affordable Housing - CofCC - 4A Admin 07222008.doc 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 Page 4 of 8 Affordable Housing - CofCC - 4A Admin 07222008.doc settlement or other disposition, defend /ndemnitees in all actions based thereon with legal counsel satisfactory to /ndemnitees, 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 carryon 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. Page 5 of 8 Affordable Housing - CofCC - 4A Admin 07222008.doc 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 covenantor 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: Page 6 of 8 Affordable Housing - CofCC - 4A Admin 07222008.doc 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. Page 7 of 8 Affordable Housing - CofCC - 4A Admin 07222008.doc 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 EI Sa zar C airman ATTEST: Armando Chapa City Secretary Date: ~~6d' ~~~-©~' Date CITY OF CORPUS CHRISTI Ge rge K. Noe City Manager Date: 8~l/~~ APPROVED AS TO FORM: .)vl~ a`ji avo$ ~~ ~~ ~' R. Jay Re ng First Assistant City Attorney for the City Attorney ~~oa AUTNOR~ZeD !<Y C-0UNCIL... ~g.~.L~~B ~r~BECREf~ ~• Page 8 of 8 Affordable Housing - CofCC - 4A Admin 07222008.doc 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: E27,500 (Grant) Exhibit A LETTER OF TRANSMITTAL May 7, 2008 City Secretary Office City of Corpus Christi Attention: Armando Chapa, City Secretary 1201 Leopard Corpus Christi, TX 78469-9277 Enclosed is the Ciry 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, Morales Di 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. ~`~- 3~- 08 Yv nne Morales Haag, Director Date LEVEL OF ASSISTANCE Project Scope: 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 Development's (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- federallyfunded 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. Leveraging: 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. Time Frame: 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 $2,75 5 minutes per case x $2.75 per case 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 21 (Existing homes $5,000 loans) 14 -New Construction projects processed 14 (New homes $15,000 to $20,000) 16 -New Construction -Extreme Homes 16 12 -New Construction - NCCAA 12 6 - In-Fill Housing projects g Total Number of 4a cases processed 89 69 cases x $395.50 per case = $27,289.50