HomeMy WebLinkAboutC2009-477 - 10/27/2009 - ApprovedAFFORDABLE HOUSING PROJECT AGREEMENT
HABITAT FOR HUMANITY -- CORPUS CHRISTI, INC. -
NEW HOME CONSTRUCTION
This Affordable Housing Project Agreement ("Project Agreement") is entered into
between the Corpus Christi Business and Job Development Corporation
("Corporation"), the City of Corpus Christi ("City"), and Habitat For Humanity -- Corpus
Christi, Inc. ("Grantee").
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, Grantee submitted a proposal to the Board to request funds for the
construction of four new homes over a one year period in the City's Model Block Area
for low income homebuyers;
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 Grantee's proposal, which has been verbally modified to provide for
the construction of 4 homes during this fiscal year;
In consideration of the covenants, promises, and conditions stated in this Project
Agreement, the Corporation, Grantee, and the City agree as follows:
1. Project Agreement to Implement Affordable Housing Project. This Project
Agreement between the Corporation, the City, and Grantee is executed to implement
the promotion and development of an affordable housing project proposed by Grantee
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Habitat for Humanity - CC
in response to the Board's request for proposals ("Project Response"). The Project
Response submitted by Grantee, entitled "Habitat for Humanity New Home
Construction" ("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 is executes the this Project Agreement.
("Effective Date")
3. Expiration Date. This Project Agreement expires on July 31, 2010.
4. Services to be Provided by City. The City, through the City's City Manager or his
designee ("City Manager"), administers the funding and performs contract
administration responsibilities, as outlined in this Project Agreement, for the
Corporation.
5. Services to be Provided by Grantee.
a. Grantee shall construct four (4) new single-family homes for low or moderate
income families.
b. Each home constructed must be approximately 1,200 square feet depending
on family size, with from two to three bedrooms. The number of bathrooms may
range from one to two depending on the family needs.
c. The cost of each house must range from $60,000 to $65,000.
d. Grantee must offer two (2) different floor plans for the two and three bedroom
homes.
e. The houses are to be built in the City of Corpus Christi Model Block Program
area or another revitalization designated neighborhood.
f. Each homeowner must meet the qualifications in Exhibit 6.
6. Services to be Provided by Corporation. The Corporation will provide a grant of
up to $37,500.00 toward the construction of each of four new homes, but the total
granted may not exceed $150,000.00.
7. Documentation and Reports.
a. Grantee 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. Grantee shall provide access to all records, documents, reports, and audits,
regarding the funded activity under this Project Agreement, during regular
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business hours, for the purpose of inspection and copying by the City Manager.
Furthermore, Grantee 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. Grantee 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 the
development of the property and construction of the homes, to how the funds
provided under this agreement were expended, and the qualifications of the new
homeowners, and include any supporting documentation required to substantiate
the written narrative contained in the reports. The reports must document:
(1) Timelines for development of property and construction of homes.
(2) Partnership agreements for construction of the homes.
(3) Outstanding construction issues.
8. 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 Executive. Director and City Manager are authorized to
execute minor amendments or modifications to this Project Agreement, by
exchange of letters with the Grantee. 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 Grantee under this
Project Agreement.
9. 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.
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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 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 #o this Project Agreement automatically.
10. Compliance with Laws. Grantee shall comply with all applicable Federal, State,
and local government laws, rules, regulations, and ordinances which may be relevant to
Grantee's performance under this Project Agreement.
11. 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.
12. Acknowledgment and Construction of Ambiguities. The parties expressly
agree that each has independently read and does understand this Project Agreement.
By Grantee's execution of this Project Agreement, Grantee 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.
73. /ndemnity. Grantee 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 Grantee, 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
In, demnitees, but not if caused by the sole negligence of the Indemnitees
unmixed with the fault of any other person or entity. Grantee covenants
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and agrees that if Indemnitees, or any of them, are made a party to any
litigation against Grantee or in any litigation commenced by any party other
than Grantee relating to this Project Agreement or Project, Grantee shall,
upon receipt of reasonable notice regarding commencement of litigation, at
its own expense, investigate all claims and demands, attend to their
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.
14. Warranties.. Grantee warrants and represents to Corporation the following:
a. Grantee 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. Grantee has the authority to enter into and perform, and will perform, the
terms of this Project Agreement.
c. Grantee has timely filed and will timely fife 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 Project
Agreement.
d. Grantee 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.
e. If an audit determines that the funds were not used for authorized purposes,
Grantee agrees to reimburse Corporation for the sums of money spent for
purposes not authorized by law within 30 days written notice requesting
reimbursement.
f. The parties executing this Project Agreement on behalf of Grantee are duly
authorized to execute this Project Agreement on behalf of Grantee.
15. Events of Default. The following events constitute a default of this Agreement:
a. Failure of Grantee 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 or City determines that any representation or warranty on
behalf of Grantee contained in this Project Agreement or in any financial
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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. Any judgment is assessed against Grantee or any attachment or other levy
against the property of Grantee with respect to a claim remains unpaid,
undischarged, or not dismissed for a period of 30 days.
d. Grantee makes an assignment for the benefit of creditors.
e. Grantee files a petition in bankruptcy, or is adjudicated insolvent or bankrupt.
f. If taxes on property owed by Grantee become delinquent, and Grantee fails to
timely and properly follow the legal procedures for protest or contest.
g. Grantee changes the general character of its business as conducted on or
following the date this Agreement is approved by the Corporation.
16. Notice of Default. Should the Corporation or City determine that Grantee is in
default under the terms of this Agreement, the Corporation or City shall notify Grantee in
writing of the event of default and provide 60 days from the date of the notice ("Cure
Period") for Grantee to cure the event of default.
17. 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 Grantee, 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. Grantee 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. Grantee 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 Grantee under this
Project Agreement and this Project Agreement shall terminate.
d. Neither the City nor the Corporation may be held liable for any consequential
damages.
e. The Corporation may pursue all remedies available under law.
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18. 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 Grantee's default may not be considered an
estoppel against the Corporation.
d. It is expressly understood that if at any time Grantee 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.
19. Notices.
a. Any required written notices shall be sent, certified mail, return receipt
requested, addressed as follows:
If to Grantee:
Habitat for Humanity -Corpus Christi, Inc.
Attn: Executive Director
P.O. Box 3032
Corpus Christi, Texas 78463-3032
If to Corporation:
City of Corpus Christi Business and Job Development Corporation
Attn: Executive Director
1201 Leopard Street
Corpus Christi, Texas 78401
b. A copy of all notices and correspondence must be sent to the City at the
following address:
City of Corpus Christi
Attn.: City Manager
P.O. Box 9277
Corpus Christi, Texas 78469-9277'
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c. Notice is effective upon deposit in the United States mail in the manner
provided in subsection a of this section.
20. 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.
21. Relationship of Parties. In performing this Agreement, the Corporation, Grantee,
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.
22. Nonassignment. Grantee 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.
23. Non-discrimination.
a. Grantee 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.
24. 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.
25. Entire Agreement. This Project Agreement and the referenced and incorporated
documents constitute the entire agreement between the Corporation, the City, and
Grantee 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.
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CORPUS CHRISTI BUSINESS &
JOB DEVELOPMENT CORPORATION
EI Salazar
President
Date
f'~ ~ ~ - ~
ACKNOWLEDGMENT
STATE OF TEXAS §
§ KNOW ALL BY THESE PRESENTS:
COUNTY OF NUECES § ~~
This instrument was acknowledged before me on ~~~~,~ ~ ~~_,,2.968'
by Eloy Salazar, President, Corpus Christi Business & Job Development Corporation, a
Texas. nonprofit corporation, on behalf of the corporation.
NOTARIiOPUBLIC ~ d _ ~~
.
,,,
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State of Texas ,~o<p"•"••"~+~
,
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H1pNIQUE TAMEZ LERMA
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Notary Public
STATE O
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My Comm. Exp
Ot-20-2013
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ATTEST:
Armando Chapa
City Secretary
~~~
Date
APPROVED AS TO FORM:
R. Jay ei 'ng
First ssistant City Attorney
for the City Attorney
CITY OF CORPUS CHRISTI
. ~av
'A el .Escobar
Ci y Manager
Date
` ~1:~..:.~...~..~ AUTH8RI2Ei~
~ c~ul~cll. ~~~2~
I!1/IN ~. V~
~~~~~ ~
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HABITAT FOR HUMANITY -- CORPUS CHRISTI, INC.
Pegg pkins
President
/Q~~ ~/~
Date
[Note: Secretary of State's office lists Lee Sloan as President, not Peggy
Hopkins. She is listed as a Director.
ACKNOWLEDGMENT
STATE OF TEXAS §
§ KNOW ALL BY THESE PRESENTS:
COUNTY OF NUECES §
This instrument was acknowledged before me on ~, , 200,
by Peggy Hopkins, President, Habitat For Humanity -- Corpus hristi, Inc. , a Texas
Domestic Non-Profit Corporation, on behalf of the corporation.
NOTA Y PUBLIC
State o Texas
'~ aav P~' ;£+i
e •' SYLVIA E. PENA
*: *' MY COMMISSION EXPIRES
;;' ~ :' July 27, 2010
o
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