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Home My WebLink AboutPR 21373: AMENDMENT NO. 2 TO THE HOME CONTRACT TO EXTEND THE CONTRACT EXPIRATION DATE City of ,I1I'4 — � ori rthur� Texas INTEROFFICE MEMORANDUM Department of Development Services Division of Housing and Neighborhood Revitalization Date: April 20, 2020 To: City Manager Mayor& City Council 4 J From: Beverly Freeman, Housing&Neighborhood Revitalization Manager Re: P.R. 21373 —Amendment No. 2 to the HOME Contract to Extend the Con ract Expiration Date Nature of the request: The Housing and Neighborhood Revitalization Division recommends City Council authorize the City Manager to execute Amendment No. 2 to the contract between the City of Port Arthur and TLCCC, d/b/a Legacy CDC to extend the contract expiration date from May 10, 2020 to December 31, 2020. StaffAnalysis/Considerations: TLCCC d/b/a Legacy CDC is a chartered Texas non-profit corporation and has met the criteria for qualifying as a CHDO, according to their Articles of Incorporation and By-laws. TLCCC d/b/a Legacy CDC has obligated themselves to assist the City of Port Arthur with carrying out the mission to eliminate blight and provide decent, safe, sanitary and affordable housing for low and moderate-income persons/families of the community. TLCCC d/b/a Legacy CDC will purchase vacant property,clear the sites,build,market,and sell the affordable homes to eligible homebuyers whose income range between 60%up to 80%area median income(AMI). All homes will be sold at appraised value. Recommendation: The Housing and Neighborhood Revitalization Division recommends City Council authorize the City Manager to execute Amendment No. 2 to the contract between the City of Port Arthur and TLCCC, d/b/a Legacy CDC to extend the contract expiration date from May 10, 2020 to December 31, 2020. Budget Consideration: N/A P. R. No. 21373 04/20/20 BF RESOLUTION NUMBER A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 2 TO THE CONTRACT BETWEEN THE CITY OF PORT ARTHUR AND TENDER LOVING CARE CENTER FOR CHILDREN D/B/A LEGACY COMMUNITY DEVELOPMENT CORPORATION,TO EXTEND THE CONTRACT EXPIRATION DATE FROM MAY 10,2020 TO DECEMBER 31,2020. WHEREAS, Tender Loving Care Center for Children d/b/a Legacy Community Development Corporation(TLCCC dba Legacy CDC),Port Arthur,Texas was chartered as a Texas Non-profit corporation to provide safe, decent, sanitary and affordable housing to low and moderate income families; and, WHEREAS,the Department of Housing and Urban Development awards Federal HOME Program funds to the City annually,pursuant to the Housing and Development Act of 1974 for the primary benefit of low and moderate income persons/families; and, WHEREAS,the City Council,by its adoption of Resolution Number 19-226,(authorizing submission of a 2019 Consolidated Plan)has obligated the City to provide direct financial assistance for CHDOs to assist low and moderate income persons/families; and, WHEREAS,per Resolution No. 19-182,the City Council authorized the re-certification of TLCCC dba Legacy CDC and authorized the City Manager to execute a contract between the City to purchase land, construct and sale two (2)homes in the Downtown Affordable Housing Target Area; and, WHEREAS,per Resolution No. 19-522, the City Council authorized the City Manager to execute Amendment No.1 to the contract with TLCCC dba Legacy CDC, to allocate additional HOME Program Income funds in the amount of $84,825.00 for a new total amount not to exceed $309,825.00 for land acquisition, site clearance and new construction of three (3) homes in the Downtown Affordable Housing Targeted Area, and increase the developer fees from $5,000.00 to $8,000.00 per home; and WHEREAS,the Housing and Neighborhood Revitalization Division recommends the City Council authorize the City Manager to execute Amendment No. 2 to the contract between the City and TLCCC dba Legacy CDC to extend the contract expiration date from May 10, 2020 to December 31, 2020. NOW THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That the City Council hereby authorizes the City Manager to execute Amendment No.2 to the contract between the City and Tender Loving Care Center for Children d/b/a Legacy Community Development Corporation to extend the contract expiration date from May 10,2020 to December 31,2020 in substantially the same form attached hereto as Exhibit"A". Section 3. That Tender Loving Care Center for Children d/b/a Legacy Community Development will purchase vacant property, clear the sites, build, market, and sell three (3) affordable homes to eligible homebuyers whose income range between 60%up to 80%area median income(AMI). All homes will be sold at appraised value. Section 4. That a copy of the caption of this Resolution be spread upon the minutes of the City Council. READ,ADOPTED AND APPROVED this day of A.D.,2020 at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: MAYOR • COUNCILMEMBERS ; NOES: MAYOR, THURMAN "BILL" BARTIE ATTEST: SHERRI BELLARD, CITY SECRETARY APPROVED AS TO FORM: ALEC • I ENO, CITY ATT•RNEY APPROVED FOR ADMINISTRATION: RON BURTON, CITY MANAGER BEVERLY A. FREEMAN, HOUSING & NEIGHBORHOOD REVITALIZATION MANAGER AGREED TO: TENDER LOVING CARE CENTER FOR CHILDREN DB/A LEGACY COMMUNITY DEVELOPMENT CORPORATION VIVIAN BALLOU, EXECUTIVE DIRECTOR EXHIBIT "A" Amendment No. 2 (redlined) all applicable state and federal requirements are met concerning the disbursement of funds to the CHOO, per the HOME Program Regulations 24 Code of Federal Regulations 92 and per the Administrative Requirements in 24 Code of Federal Regulations 85.36 and 85.37; and, WHEREAS, projects undertaken by the CHOO pursuant to this contract must principally be of direct benefit to low and moderate income persons as has been determined by the parties and is established under the guidelines of the Housing and Community Development Act of 1974, as amended. NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS FOLLOWS: SECTION 2. CONTRACT PERIOD This contract and agreement shall commence on May 9, 2019 and shall terminate on My10, 2-0-2-0 December 31, 2020, unless otherwise specifically provided by the terms of this contract. SECTION 3. CHDO'S PERFORMANCE The CHOO shall complete site clearance, development, new construction and sale of three (3) homes to low and moderate income persons/families with projected sales prices of$135,000.00- $150,000, or as established by the appraised value. The homes are required to be sold to low and moderate income persons/families by December May 2020. It is understood by all parties that if the three homes are not sold by-December31 0,2020, ownership of the homes will automatically revert to the City of Port Arthur. The new construction house plans shall be a minimum of 1350 sq. ft. to 1500 sq. ft. maximum. The homebuyers are required to participate in a Homebuyer Education Class. The Homebuyer Education Class shall be a minimum of eight(8) hours and shall include homebuyer orientation_and education classes, credit and budget workshops, one on one counseling, pre-purchase and post- purchase counseling. The homebuyers are required to maintain the property as their primary residence for the a applicable period of affordability of me and ten (10)years with the purchase of a new construction home). Tender Loving Care Center for Children d/b/a Legacy Community Development Corporation, CHDO, will be required to provide the City of Port Arthur a full mortgage approval for the qualified buyer prior to the construction of the new home. Tender Loving Care Center for Children d/b/a Legacy Community Development Corporation, CHDO,will insure qualified buyers are conveyed full ownership to the new construction home within nine (9) months after issuance of the Certificate of Occupancy. In the event the home is not sold