HomeMy WebLinkAboutC2018-692 - 11/27/2018 - Approved AFFORDABLE HOUSING AGREEMENT
BETWEEN THE CITY OF CORPUS CHRISTI AND
COMMUNITY DEVELOPMENT CORPORATION BROWNSVILLE
1. Agreement for New Construction of Affordable Housing. This agreement
("Agreement") between the City of Corpus Christi, a Texas home-rule municipal
corporation ("City") and Community Development Corporation of Brownsville, a Non-
Profit Corporation ("CDCB") is made to govern the terms of the City's transfer of three
vacant residential lots to CDCB in return for CDCB's construction of three single-family
affordable houses on the lots.
2. Effective Date. The effective date of this Agreement is the date on which the last
party executes this Agreement.
3. Term. The term of this Agreement extends twenty-four (24) months from the
effective date.
4. CDCB's Responsibilities.
a. CDCB shall construct three new single-family houses in Corpus Christi on the
lots identified below. These houses shall be constructed in compliance with the
City's Zoning Ordinance, Unified Development Code, International Building Codes
(as amended by the City) and all other applicable city ordinances and regulations.
1. 502 18th Street, Lot 2, Block 5, H.E. Luter Partition, Corpus Christ, Texas.
2. 508 18th Street, Lot 1, being part of Tract No. 5, H.E. Luter Partition, also
known as Lots 1 and 2 of Neylands Colonia Mexicana Addition, Corpus
Christi, Texas.
3. 4238 Barrera, South one-half (1/2) of Lot 12, Block 3, Molina Addition,
Corpus Christi, Texas.
b. The City certifies only that it is the owner of lots and that there are no City liens
against the property ('hereinafter "Property"). CDCB shall be solely responsible for
obtaining title insurance, surveys or boundary line surveys for the Property if they
so desire.
c. CDCB shall complete construction of three (3) new single-family homes on the
lots referenced herein and shall offer the houses for sale as affordable housing, as
that term is defined in Title 42 of the United States Code, Section 12745.
d. CDCB shall recruit qualified homebuyers to purchase the three new houses and
CDCB shall ensure that the applicants qualify as low-income or low-to-moderate
income individuals or families who qualify under Affordable Housing Income
1..;,,--"--- r..- County, Texas and as provided in Federal law.
C2018-692 '
11/27/18
Ord. 031604
Community Dev Corp Brownsville
SCANNED
e. All construction work must be performed in a workmanlike manner and in
accordance with the applicable housing standards, building codes and other
applicable state, federal or local laws.
f. The houses must be certified to meet Texas Department of Insurance windstorm
requirements. Additionally, the houses must be constructed to meet the
requirements of the International Energy Conservation Code.
g. CDCB shall not request any funding from the City to construct the houses
identified herein which are to be used for affordable housing as that term is defined
in federal law.
h. CDCB shall start construction on at least one house within one-hundred and
eighty (180) days of the effective date of this Agreement and shall complete
construction of all three houses within thirty (30) months of the effective date of this
Agreement.
5. City's Responsibilities.
a. Following City Council approval of this Agreement and execution of the
Agreement by both parties, the City will convey the three (3) parcels of land
identified below and more particularly described in Exhibit "A" attached hereto.
(1) 502 18th Street, Lot 2, Block 5, H.E. Luter Partition;
(2) 508 18th Street, Lot 1, part of Tract 5, H.E. Luter Partition; and
(3) 4238 Barrera Drive, South 1/2 of Lot 12, Block 3, Molina Addition.
b. The City will convey the referenced vacant lots to CDCB in consideration of
CDCB's commitment to build single-family houses on each lot as affordable
housing. Once the houses are constructed, the houses must be sold to a person
or family whose income level qualifies them for affordable housing as set forth in
federal law and regulations. This transaction is also subject to the imposition of
restrictive covenants in the conveyance documents including but not limited to:
(1) A restriction that limits development of a structure on the property to
single-family residential housing and only those structures that meet
the definition of "affordable housing," as defined under federal law,
available for purchase by low income or low-to-moderate income
individuals and families; and
(2) A reversionary clause in the City's benefit, that would require the
property to be automatically reverted back to the City if CDCB fails to
construct single-family affordable houses on the lots within the time
period set out in this Agreement or should CDCB fail to sell the houses
to a low-income or low-to-moderate income person or family who
qualifies for affordable housing under federal law and regulations.
c. City's Disclaimer. Except for City's special warranty of title to be contained in
the Special Warranty Deed to CDCB at closing, but subject to the limitations
contained herein, City hereby specifically disclaims any warranty, guaranty, or
representation, oral or written; past, present or future, of, as to, or concerning
(i) the nature and condition of the Property, including but not by way of
limitation, the water, soil, geology and the suitability thereof, and of the Property,
for any and all activities and uses which CDCB may elect to conduct thereon,
income to be derived therefrom or expenses to be incurred with respect thereto,
or any obligations or any other matter or thing relating to or affecting the same;
(ii) the nature and extent of any easement, right-of-way, lease, possession, lien,
encumbrance, license, reservation, condition or otherwise; and (iii) the
compliance of the Property or the operation of the Property with any laws, rules,
ordinances, or regulations of any government or other body. City will convey the
above identified parcels of land "as is, where is," with all faults; certifying only
that there are no liens on the identified properties and the City is the current
owner of the identified properties.
d. Environmental Disclaimer. EXCEPT AS STATED IN THIS AGREEMENT, IN
CONNECTION WITH THE CONVEYANCE OF THE PROPERTY, CITY HAS
NOT MADE AND DOES NOT MAKE, ANY REPRESENTATIONS,
WARRANTIES OR COVENANTS OF ANY KIND OR CHARACTER
WHATSOEVER, WHETHER EXPRESS OR IMPLIED, WITH RESPECT TO
THE QUALITY OR CONDITION OF THE PROPERTY, THE SUITABILITY OF
THE PROPERTY FOR ANY AND ALL ACTIVITIES AND USES WHICH CDCB
MAY CONDUCT THEREON, COMPLIANCE BY THE PROPERTY WITH ANY
LAWS, RULES, ORDINANCES OR REGULATIONS OF ANY APPLICABLE
GOVERNMENTAL AUTHORITY OR HABITABILITY, MERCHANTABILITY
OR FITNESS FOR A PARTICULAR PURPOSE, AND SPECIFICALLY, CITY
DOES NOT MAKE ANY REPRESENTATIONS REGARDING HAZARDOUS
WASTE, AS DEFINED BY THE LAWS OF THE STATE OF TEXAS AND ANY
REGULATIONS ADOPTED PURSUANT THERETO OR THE U. S.
ENVIRONMENTAL PROTECTION AGENCY REGULATIONS AT 40 C.F.R.,
PART 261, OR THE DISPOSAL OF ANY HAZARDOUS WASTE OR ANY
OTHER HAZARDOUS OR TOXIC SUBSTANCES IN OR ON THE
PROPERTY. Subject to the warranties and representations made by City in this
Agreement, CDCB agrees to accept the Property at Closing with the Property
being in its present AS IS condition WITH ALL FAULTS.
6. Amendments or Modifications. No amendments or modifications to this
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.
7. Severability.
a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase
or word of this Agreement or the application of this 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 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 Agreement that every section, paragraph,
subdivision, clause, provision, phrase, and word of this 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 Agreement, then the
remainder of this 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.
8. Compliance with Laws. CDCB shall comply with all applicable federal, State, and
City laws, rules, and regulations which may be relevant to CDCB's performance under
this Agreement.
9. Jurisdiction and Venue.
a. This 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 Agreement must be brought
in Nueces County, Texas, where this Agreement was entered and must be
performed.
10. Acknowledgment and Construction of Ambiguities. The parties expressly
agree that each has independently read and does understand this Agreement. By
CDCB's execution of this Agreement, CDCB agrees to be bound by the terms,
covenants, and conditions contained in this Agreement. Any ambiguities in this
Agreement may not be construed against the drafter.
11. Notices.
a. All notices, demands, requests, or replies provided for or permitted under this
Agreement, by either party must be in writing and must be delivered by one of
the following methods: (1) by personal delivery; (2) by deposit with the United
States Postal Service as certified or registered mail, return receipt requested,
postage prepaid; (3) by prepaid telegram; (4) by deposit with an overnight
express delivery service, for which service has been prepaid; or(5) by fax
transmission.
b. Notice deposited with the United States Postal Service in the manner described
above will be deemed effective three (3) business days after deposit with the
United States Postal Service. Notice by telegram or overnight express delivery
service will be deemed effective one (1) business day after transmission to the
telegraph company or overnight express carrier. Notice by fax transmission will
be deemed effective upon transmission, with proof of confirmed delivery.
c. All such communications must only be made to the following:
If to the City: If to CDCB:
City of Corpus Christi Community Development Corporation
Housing Community Development of Brownsville
P.O. Box 9277 901 E. Levee Street
Corpus Christi, Texas 78469-9277 Brownsville, Texas 78520
(361) 826-3232 Office (956) 541-4955 Office
With a copy to:
City of Corpus Christi
Attn: City Attorney
P.O. Box 9277
Corpus Christi, TX 78469-9277
(361) 826-3361 Office
d. Either party may change the address to which notice is sent by using a method
set out above. Habitat shall notify the City of an address change within 10
working days after the address is changed.
12. Warranties. CDCB warrants and represents to the City the following:
a. CDCB is a duly organized Non-Profit Corporation, exempt from Federal
taxation under Sec. 501(c)(3) of the Internal Revenue Code of 1986, as
amended, and is a legal entity in good standing under the laws of the State of
Texas authorized to do business in the State of Texas.
b. CDCB has the authority to enter into and perform, and will perform, the terms
of this Agreement.
c. CDCB has timely filed and will timely file all local, State, and federal tax reports
and returns required by law to be filed and all taxes, assessments, fees, and
other governmental charges, including applicable ad valorem taxes, have been
timely paid, and will be timely paid, during the term of this Agreement.
d. The parties executing this Agreement on behalf of CDCB are duly authorized
to execute this Agreement on behalf of CDCB.
13. Events of Default. The following events constitute a default of this Agreement:
a. Failure of CDCB to timely, fully, and completely comply with any one or more
of the requirements, obligations, duties, terms, conditions, or warranties of this
Agreement.
b. The City determines that any representation or warranty on behalf of CDCB
contained in this Agreement or in any financial statement, certificate, report,
proposal, or opinion submitted to the City in connection with this Agreement was
incorrect or misleading in any material respect when made.
c. Any judgment is assessed against CDCB or any attachment or other levy
against the property of CDCB, with respect to a claim, remains unpaid,
undischarged, or not dismissed for a period in excess of 30 days.
d. CDCB has made an assignment for the benefit of creditors. Provided,
however, CDCB may take out a mortgage on the lots described herein for the
purposes of building single-family affordable houses on the lots.
e. CDCB files a petition in bankruptcy or is adjudicated insolvent or bankrupt.
f. If taxes on property owned by CDCB become delinquent and CDCB fails to
timely and properly follow the legal procedures to protest or contest.
14. Relationship of Parties. In performing this Agreement, the City and CDCB shall
act in an individual capacity, and not as agents, representatives, employees, employers,
partners, joint-ventures, 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.
15. No Assignment. CDCB may not transfer this Agreement or any of the rights
contained in this Agreement without the prior written consent of the other party to this
Agreement. Provided, however, this clause shall not prevent CDCB from mortgaging
the lots described herein to build single-family affordable houses on the lots as set forth
herein.
16. Disclosure of Interests. In compliance with Section 2-349 of the City's Code of
Ordinances, the Recipient shall complete the City's Disclosure of Interests form, which
is attached to this Agreement as Exhibit "B", the contents of which, as a completed
form, are incorporated in this document by reference as if fully set out in this
Agreement.
CDCB agrees to comply with Chapter 176 of the Texas Local Government Code and file
Form CIQ with the City Secretary's Office, if required. For more information and to
determine if you need to file a Form CIQ, please review the information on the City
Secretary's website at http://www.cctexas.com/government/city-secretary/conflict-
disclosure/index
17. Certificate of Interested Parties. (Exhibit "C"). CDCB agrees to comply with
Texas Government Code section 2252.908 and complete Form 1295 Certificate of
Interested Parties as part of this agreement.
Form 1295 must be electronically filed with the Texas Ethics Commission at
https://www.ethics.state.tx.us/whatsnew/elf info form1295.htm. The form must then be
printed, signed, notarized and filed with the City. For more information, please review
the Texas Ethics Commission Rules at https://www.ethics.state.tx.us/legal/ch46.html.
18. Non-discrimination. CDCB 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. The City retains the right to take any action the United States or the State of
Texas may direct to enforce this non-discrimination covenant.
19. Captions. The captions in this Agreement are for convenience only and are not a
part of this Agreement. The captions do not in any way limit or amplify the terms and
provisions of this Agreement.
20. Entire Agreement. This Agreement and the referenced and incorporated
documents constitute the entire agreement between the City and CDCB for the purpose
stated. All other agreements, promises, representations, and understandings, oral or
otherwise, with reference to the subject matter of this Agreement, unless contained in
this Agreement, are expressly revoked, as the parties intended to provide for a
complete understanding, within the provisions of this Agreement and its referenced and
incorporated documents, of the terms, conditions, promises, and covenants relating to
each party's required performance under this Agreement.
[SIGNATURE PAGE FOLLOWS]
A proved as to form:Al ?/Ali(
CITY OF CORPUS CHRISTI - 4Li1
/ /,A4A°':��� Assistant City Atte•
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/� rl/ /�//� - IrCity Attorne��
Samuel Keith" elman
Interim City Manager
Date: /2---/ r
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ATTEST REBECCA HUERTA e �1: -
COMMUNITY DEVEL• 'MENT ' •RPORATION CITY SECRETARY
OF BROWNSVI .4L •
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Name: ►1 U ► , I
Title: 011r
Date: VORT I '.S1111131 •
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EXHIBIT A
The lots to be conveyed by the City to CDCB as part of the Affordable Housing
Agreement, are described as follows:
502 18th Street:
Lot Two (2), Block Five (5), H.E. Luter Partition, City of Corpus Christi, Nueces
County, Texas, according to the established map or plat thereof recorded in Volume 31,
page 27A, Map and Plat Records of Nueces County, Texas.
508 18th Street:
FIRST TRACT: Lot No. One (1), being part of Tract No. Five (5), of Luter Partition and
being also known as LOT 1 OF NEYLANDS COLONIA MEXICANA ADDITION which
plat has not been filed for record, City of Corpus Christi, Nueces County, Texas, and the
tract hereby conveyed being described as follows:
BEGINNING at the point of intersection of the South line of Lot 5, of said Luter Partition
with the East line of 18th Street which is the Southwest corner of Lot 5 of said Luter
Partition and the Southwest corner of this tract;
THENCE in Northerly direction along the East line of 18th Street and West line of Lot 5,
Luter Partition a distance of 25 feet to a point for the Northwest corner of this tract;
THENCE in an Easterly direction parallel with the South line of Lot 5 Luter Partition,
102.1 feet to a point for the Northeast corner of this tract;
THENCE in a Southerly direction parallel with the East line of 18th Street and West line
of Lot 5 Luter Partition, a distance of 25 feet to point in South line of Lot 5 Luter Partition
for the Southeast corner of this tract;
THENCE in a westerly direction along the Southerly line of Lot 5 Luter Partition to the
place of beginning.
SECOND TRACT: Being part of Tract 5 of H. E. Luter Partition and being also known
as LOT 2 OF NEYLANDS COLONIA MEXICANA ADDITION, which plat has not been
filed for record, City of Corpus Christi, Nueces County, Texas, and the tract hereby
conveyed being described as follows:
BEGINNING at the point of intersection of the South line of Lot or Tract 5 of said Luter
Partition with the East line of 18th Street;
THENCE in a Northerly direction along the East line of 18th Street and the West line of
Lot 5, Luter Partition a distance of 25 feet for POINT OF BEGINNING,
THENCE continuing same direction, a distance of 25 feet for the Northwest corner of
this tract;
THENCE in an Easterly direction parallel with the South line of Lot 5 Luter Partition,
102.1 feet to a point for the Northeast corner of this tract;
THENCE in a Southerly direction parallel with the East line of 18th Street and West line
of Lot 5 Luter Partition, a distance of 25 feet to a point for the Southeast corner of this
tract;
THENCE in a Westerly direction along a line parallel with the South line of Lot 5 Luter
Partition, 102.1 feet to the Northeast corner of this tract and PLACE OF BEGINNING.
4238 Barrera Drive:
The South One-half (S 1A) of Lot Twelve (12), Block Three (3), Molina Addition, a
subdivision in the City of Corpus Christi, Nueces County, Texas, as shown by the map
or plat thereof recorded in Volume 9, Page 53, Map Records of Nueces County, Texas,
to which reference is her made for all pertinent purposes.
WNW
EXHIBIT B
CITY OF CORPUS CHRISTI - DISCLOSURE OF INTERESTS
City of Corpus Christi Ordinance 17112,as amended,requires all persons or firms seeking to do business with the
City to provide the following information. Every question must be answered. If the question is not applicable,
answer with"NA."See the definitions for the Disclosure of Interest in Section II-{General Informa on.
I '
COMPANY NAME: % I A \L $L Al1.I ! Al I L . % aai . h.
MAILING ADDRESS: CM) A- W.Xa CITY:66u,MI`I, ZIP: r_li0
FIRM is: 1. Corporation( i) 2. Partnership( ) 3. Sole Owner( )
4. Association ( ) 5. Other ( )
DISCLOSURE QUESTIONS
If additional space is necessary,please use the reverse side of this page or attach a separate sheet.
1. State the names of each"employee"of the City of Corpus Christi having an"ownership interest"constituting 3%
or more of the ownership in the above named"firm."
NaT Job Title and City Department(if known)
2. State the names of each"official"of the City of Corpus Christi having an"ownership interest"constituting 3%or
more of the ownership in the above named"firm."
Na imA Title
3. State the names of each"board member"of the City of Corpus Christi having an"ownership interest"constituting
3%or more of the ownership in the above named"firm."
Name Board,Commission,or Committee
N
4. State the names of each employee or officer of a"consultant"for the City of Corpus Christi who worked on any
matter related to the subject of this contract and has an"ownership interest"constituting 3%or more of the ownership
in the above named"firm."
Nam l Consultant
CERTIFICATE: I certify that all information provided is true and correct as of the date of this statement,that I have
not knowingly withheld disclosure of any information requested, and that supplemental statements will be promptly
submitted to the Cit f/�Coorpus Christi,CTexas as changes occur n f i' (.
Certifying Person: \U.�/(� J �1 A.k'I� `� Title:Iva l``t OWUY
(Type o iaser
Signature of Certifying Person: Date: O(JkI) ./D16