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HomeMy WebLinkAboutPR 22511: EXECUTION OF THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS HOME INVESTMENT PARTNERSHIPS PROGRAM HOUSEHOLD COMMITMENT CONTRACT INTEROFFICE MEMORANDUM HOUSING ASSISTANCE PROGRAMS Date: April 12,2022 To: Ron Burton, City Manager Mayor and City Council • From: Beverly A. Freeman, Housing&Neighborhood Revitalization Manager RE: P.R. 22511 —Authorizing execution of the Texas Department of Housing and Community Affairs HOME Investment Partnerships Program Household Commitment Contract for two Applicants in the Homeowner Rehabilitation Assistance Program Nature of the request: The Housing Division recommends City Council approve Proposed Resolution No. 22511 authorizing the City Manager to execute the Texas Department of Housing and Community Affairs (TDHCA) HOME Investment Partnerships Program (HOME) Household Commitment Contracts (HCC) for two applicants participating in the Homeowner Rehabilitation Assistance Program. Staff Analysis/Considerations: The HOME Program HCC for the Homeowners Rehabilitation Assistance Program is made and entered into by and between City of Port Arthur and, the TDHCA in connection with the HOME Program Reservation System and Reservation System Participant Agreement #20180039 executed by the TDHCA for the demolition and reconstruction of two homes for low and moderate-income families. The City wishes to and the TDHCA is authorized to make a Commitment of Funds to Qualified Household for the demolition and reconstruction of their homes. The homeowners were reviewed by the City and verified by the TDHCA that the qualified households meet the Program requirements and the requirements of the TDHCA's HRA Program. Budget Consideration: The TDHCA shall make a Commitment of Funds to the City in an amount not to exceed ONE HUNDRED THIRTY-FIVE THOUSAND AND 00/100 DOLLARS ($135,000.00) in Project funds and THIRTEEN THOUSAND SEVEN HUNDRED TEN AND 00/100 DOLLARS ($13,710.00) in soft costs for Reconstruction of the housing unit located at 1001 W. 6th St., Port Arthur, Texas, and in an amount not to exceed ONE HUNDRED THIRTY-FIVE THOUSAND AND 00/100 DOLLARS ($135,000.00) in Project funds and THIRTEEN THOUSAND SEVEN HUNDRED TEN AND 00/100 DOLLARS ($13,710.00) in soft costs for Reconstruction of the housing unit located at 3847 32nd St., Port Arthur, Texas, which both homes are owned by Qualified Household and occupied as their primary residence in accordance with the Program Requirements. The total construction costs are estimated is $181,415.50 for 1001 W. 6th St., and $175,863.35 for 3847 32nd St. The supplemental funds will be provided by the Federal CDBG Program funds are available in account number 105-13- 033-5470-00-40-000,project numbers CD5115, CD6145 and CD7145. Recommendation: The Housing Division recommends City Council approve Proposed Resolution No. 22511 authorizing the City Manager to execute the Texas Department of Housing and Community Affairs (TDHCA) HOME Investment Partnerships Program (HOME) Household Commitment Contract for two applicants participating in the TDHCA's Homeowner Rehabilitation Assistance Program. P. R.No 22511 04/12/22 BAF RESOLUTION NUMBER A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE THE TEXAS DEPARTMENT OF HOUSING AND COMMUNTIY AFFAIRS (TDHCA) HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME) HOUSEHOLD COMMITMENT CONTRACTS FOR TWO APPLICANTS PARTICIPATING IN THE HOMEOWNER REHABILITATION ASSISTANCE PROGRAM (HRA). WHEREAS, the Texas Department of Housing and Community Affairs (TDHCA) has authorized two HOME Investment Partnerships Program (HOME) Household Commitment Contracts (HCC) for two applicants participating in the Homeowner Rehabilitation Assistance (HRA) Program; and WHEREAS, the HCCs for the HRA Program is made and entered into by and between the City of Port Arthur and the TDHCA in connection with the HOME Program Reservation System and Reservation System Participant Agreement #20180039, executed by the TDHCA for the demolition and reconstruction of two homes for low and moderate-income families; and WHEREAS, the homeowners were reviewed by the City and verified by the TDHCA that the qualified households meet the Program requirements and the requirements of the TDHCA's HRA Program; and WHEREAS, the City wishes to and the TDHCA is authorized to make a Commitment of Funds to Qualified Household for the demolition and reconstruction of their homes; and WHEREAS, the homeowners were reviewed by the City and verified by the TDHCA that the qualified households meet the Program requirements and the requirements of the TDHCA's HRA Program; and WHEREAS, the TDHCA agrees and acknowledges that this Contract serves as a supplement to the TDHCA Agreement and, by execution hereof, shall be subject to all terms and conditions of TDHCA Agreement, as may be amended from time to time, unless otherwise specified herein; and WHEREAS, The TDHCA shall make a Commitment of Funds to the City in an amount not to exceed ONE HUNDRED THIRTY-FIVE THOUSAND AND 00/100 DOLLARS ($135,000.00) in Project funds and THIRTEEN THOUSAND SEVEN HUNDRED TEN AND 00/100 DOLLARS ($13,710.00) in soft costs for Reconstruction of the housing unit located at 1001 W. 6th St., Port Arthur, Texas and in an amount not to exceed ONE HUNDRED THIRTY-FIVE THOUSAND AND 00/100 DOLLARS ($135,000.00) in Project funds and THIRTEEN THOUSAND SEVEN HUNDRED TEN AND 00/100 DOLLARS ($13,710.00) in soft costs for Reconstruction of the housing unit located at 3847 32nd St., Port Arthur, Texas, which both homes are owned by Qualified Household and occupied as their primary residence in accordance with the Program Requirements. The total construction costs are estimated is $181,415.50 for 1001 W. 6th St., and $175,863.35 for 3847 32nd St. The supplemental funds will be provided by the Federal CDBG Programs and are available in account number 105-13-033-5470-00-40-000, project numbers CD5115, CD6145 and CD7145. 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 City Council hereby authorizes the City Manager to execute the TDHCA HOME Program Household Commitment Contracts for two applicants participating in the TDHCA's Homeowner Rehabilitation Assistance Program for the property located at 1001 W. 6th Street and 3847 32nd Street, Port Arthur, Texas, in substantially the same form as attached hereto as Exhibits"A", and`B" . Section 3. 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., 2022 at a Regular Meeting of the City Council of the City of Port Arthur,Texas by the following vote: AYES: MAYOR COUNCILMEMBE R S NOES: THURMAN "BILL" BARTIE, MAYOR ATTEST: SHERRI BELLARD, CITY SECRETARY APPROVED FOR FORM: VAL TIZ NO, CITY ATTORNEY APPROVED FOR ADMINISTRATION: RON BURTON, CITY MANAGER BEVERLY FREE N, HOUSING & NEIGHBORHOOD REVITALIZATION MANAGER CLIF ON ILLI , CPPB, PURCHASING MANAGER APPROVED AS TO AVAILABILITY OF FUNDS: KANDY DANI INTERIM DIRECTOR OF FINANCE EXHIBIT "A" TDHCA HOME Program Household Commitment Contract 1001 W. 6th Street TEXAS DEPARTMENT OF HOUSING COMMUNITY AFFAIRS HOME INVESTMENT PARTNERSHIPS PROGRAM HOUSEHOLD COMMITMENT CONTRACT FOR HRA WITH City of Port Arthur, a political subdivision of the State of Texas CFDA 14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM Awarding Federal Agency: U.S. Department of Housing and Urban Development Award Number: M- -SG-48-0100 Federal Award Year: 20 Pass Through Entity:Texas Department of Housing and Community Affairs HUD Entity Type: State Recipient Unique Entity Identifier Number: 137134909 Single Family HOME Program Rule Adoption Date: November 26, 2020 This HOME HOUSEHOLD COMMITMENT CONTRACT FOR HRA (Contract) is made and entered into by and between CITY OF PORT ARTHUR, a political subdivision of the State of Texas (Administrator)and TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS,a public and official agency of the State of Texas (Departments) herein collectively referred to as Parties in connection with the HOME Investment Partnerships Program Reservation System and Reservation System Participant Agreement # 20180039 executed by the Department and Administrator("Administrator Agreement"). RECITALS WHEREAS,Administrator wishes to make a Commitment of Funds to Qualified Household, as defined in Article I of this Contract, in accordance with and subject to all provisions of(1) the Administrator Agreement,as amended from time to time, (2)the HOME Investment Partnerships Act of 1990 (42 U.S.C. 12721-12839) (the Federal Act), (3) applicable Federal and CPD Notices issued by HUD, (4) implementing regulations at 24. CFR Part 92, (5) Chapter 2306 of the Texas Government Code (State Act), (6) 10 TAC Chapter 20 (Single Family Programs Umbrella Rule) in effect at the time of the execution of this Contract, (7) 10 TAC Chapter 23 (Single Family HOME Program Rule) in effect at the time of the execution of this Contract, and (8) "Application and Application Submission Procedures Manual" as defined in the Administrator Agreement, (collectively, Program Requirements); WHEREAS, Administrator agrees and acknowledges that this Contract serves as a supplement to the Administrator Agreement and, by execution hereof, shall be subject to all terms and conditions of Administrator Agreement, as may be amended from time to time, unless otherwise specified herein. 1002851 Carolyn Francis NOW, THEREFORE, in consideration of the mutual covenants and conditions set forth herein, including the Recitals, which are contractual in nature, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, each intending to be legally bound, hereby agree as follows: ARTICLE I QUALIFIED HOUSEHOLD Administrator has reviewed the income and all other documentation necessary for the household of Carolyn Francis (Qualified Household). Administrator has verified that the Qualified Household meets the Program Requirements and the requirements of the Administrator Agreement, as may be amended from time to time. ARTICLE II CONTRACT TERM Section 2.1 Contract Term A. This Contract shall be effective on the latter of the date executed by an authorized representative of the Department and the Administrator and shall remain in full force and effect for twelve (12) months after the effective date (Contract Term), unless earlier terminated or amended in accordance with the provisions herein. B. Without limitation, this Contract shall be subject to the terms and conditions of the Administrator Agreement, as may be amended from time to time, and Program Requirements for the entire Contract Term regardless of the Term of Administrator Agreement. ARTICLE III COMMITMENT OF FUNDS Section 3.1 HOME Funds A. The Department shall make a Commitment of Funds to Administrator in an amount not to exceed ONE HUNDRED THIRTY-FIVE THOUSAND AND 00/100 DOLLARS ($135,000.00) in Project funds and THIRTEEN THOUSAND SEVEN HUNDRED TEN AND 00/100 DOLLARS($13,710.00) in soft costs for Reconstruction of the housing unit located at 1001 W. 6th St., Port Arthur, Texas which is owned by Qualified Household and occupied as their primary residence in accordance with the Program Requirements. B. To the extent that funds are available, the Commitment of Funds shall be made in the Reservation System under the following set-aside: 0 Homeowner Rehabilitation Assistance (HRA) Set-Aside#(10 TAC §§23.30-32) 1002851 Carolyn Francis ❑ Contract for Deed Conversion (CFDC) Set-Aside# (10 TAC§§23.50-52) ❑ Tenant-Based Rental Assistance(TBRA) Set-Aside # (10 TAC §§23.60-62) 0 Homebuyer Assistance with New Construction (HANC) or Rehabilitation Set- Aside# (10 TAC §§23.80-82) ❑ Single-Family Programs for Persons with Disabilities (PWD) Set-Aside including the following activities: ❑TBRA#_(10 TAC §§23.60-62) ❑ HRA# (10 TAC §§23.30-32) E Disaster Relief Set-Aside including the following activities: ❑TBRA# (10 TAC §§23.60-62) ❑x HRA#1002851 (10 TAC§§23.30-32) C. Notwithstanding any other provision of this Contract to the contrary, the total of all payments and other obligations incurred by Department under this Contract shall not exceed the amounts set forth in Subsection A of this Section 3.1. D. Department's obligations under this Contract are contingent upon the actual receipt and availability by Department of adequate HOME federal funds. If sufficient funds are not available to fund this Contract, Department shall notify Administrator in writing within a reasonable time after such fact is determined and the Administrator shall immediately notify the Qualified Household. Department may then terminate this Contract and will not be liable for the failure to make any payment to Administrator under this Contract. Section 3.2 Compliance with Federal, State, and Local Law A. Unless otherwise noted, Administrator shall comply with the Single Family Programs Umbrella Rule and the Single Family HOME Program Rule in effect at the time the Administrator applied for HOME funds. B. Should the Federal or State Act change so that compliance with the applicable Single Family Programs Umbrella Rule and the Single Family HOME Program Rule is not possible, the Administrator shall comply with the applicable changes to the Federal and State Acts. C. Commitments resulting from Reservations submitted under an RSP agreement will be subject to the provisions of Single Family HOME Program Rule in effect as of the date of submission of the Reservation by the Administrator. 1002851 Carolyn Francis ARTICLE IV LOAN/GRANT DOCUMENTS Section 4.1 Qualified Household Grants In the event Administrator qualifies a Qualified Household for a grant under the Program Requirements based upon a Qualified Household's information in the program application, Administrator agrees to the following: A. Administrator will prepare the Grant Documents(as defined in the Administrator's Agreement)for the Qualified Household. B. The Qualified Household shall execute the applicable Grant Documents (as defined in the Administrator's Agreement) for an amount in accordance with Section 3.1 of this Contract and the Program Requirements. Section 4.2 Qualified Household Loans In the event Administrator qualifies a Qualified Household for a residential mortgage loan (Qualified Household Mortgage Loan) under the Program Requirements based upon a Qualified Household's information in the program application,Administrator agrees to the following: A. Administrator will require a Qualified Household to complete the loan application supplement to the program application, hereinafter referred to as "loan application". B. Administrator will take the loan application of a Qualified Household applicant for a Qualified Household Mortgage Loan, originate the Qualified Household Mortgage Loan, , and conduct loan closings of the Qualified Household Mortgage Loan in accordance with the Section 5.3 of the Administrator's Agreement, the Mortgage Loan Disclosure Regulations, all applicable state and federal laws and regulations regarding the origination and closing of residential mortgage loans. C. Administrator's failure to originate Qualified Household Mortgage Loans or conduct loan closings in accordance with all applicable state and federal laws and regulations will be deemed an event of default under this Contract. D. Administrator expressly acknowledges that compliance with state and federal laws and regulations regarding residential mortgage loan origination, residential mortgage disclosures and residential mortgage loan closing is Administrator's responsibility, and the fact that Administrator or anyone acting on Administrator's behalf, either takes a residential mortgage loan application and submits it to the Department or prepares and delivers a mortgage disclosure to the Qualified Household and that the Department proceeds with closing of a loan does not in any manner constitute a finding, conclusion, or representation by the Department that the Administrator is in compliance with or exempt from such legal requirements. 1002851/Carolyn Francis ARTICLE V AMENDMENTS Section 5.1 Changes, Amendments and Extensions Except as specifically provided otherwise in this Contract, the Single Family Programs Umbrella Rule or the Single Family HOME Program Rule, any changes, additions, or deletions to the terms of this Contract shall be in writing and executed by both Parties to this Contract in accordance with Section 20.14 of the Single Family Programs Umbrella Rule and shall comply with the extension requirements of Subchapter B of the Single Family HOME Program Rule. Section 5.2 Changes and Amendments Required by Law Any changes, additions, or deletions to the terms of this Contract, which are required by changes in federal or state law, or regulations, are automatically incorporated into this Contract and shall become effective on the date designated by such law or regulation without the requirement of a written amendment hereto. Said changes, additions, or deletions referenced under this Subsection B of Section 4.1 may be further evidenced in a written amendment. Section 5.3 Modifications to Qualified Household Mortgage Loan Documents If any amendment to this Contract affects the Qualified Household Mortgage Loan documents,the documents may be modified accordingly in accordance with Section 20.14 of the Single Family Umbrella Program Rules. Section 5.4 Facsimile Signatures A facsimile or electronic copy executed by both Parties will be sufficient to evidence the Parties agreement to any amendment, revision or change to this Contract. If any Party returns this copy by facsimile machine or electronically, the signing party intends the copy of its authorized signature printed by the receiving machine, or the electronic copy, to be its original signature. 1002851 Carolyn Francis IN WITNESS WHEREOF, each of the Parties has executed this Contract as of the dates written below. DEPARTMENT: TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas By: Its duly authorized officer or representative Date: ADMINISTRATOR: City of Port Arthur, a political subdivision of the State of Texas By: Ronald Burton, City Manager Date: 1002851 Carolyn Francis EXHIBIT "B" TDHCA HOME Program Household Commitment Contract 3847 32nd Street TEXAS DEPARTMENT OF HOUSING COMMUNITY AFFAIRS HOME INVESTMENT PARTNERSHIPS PROGRAM HOUSEHOLD COMMITMENT CONTRACT FOR HRA WITH City of Port Arthur, a political subdivision of the State of Texas CFDA 14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM Awarding Federal Agency: U.S. Department of Housing and Urban Development Award Number: M- -SG-48-0100 Federal Award Year: 20 Pass Through Entity:Texas Department of Housing and Community Affairs HUD Entity Type: State Recipient Unique Entity Identifier Number: 137134909 Single Family HOME Program Rule Adoption Date: November 26, 2020 This HOME HOUSEHOLD COMMITMENT CONTRACT FOR HRA (Contract) is made and entered into by and between CITY OF PORT ARTHUR,a political subdivision of the State of Texas (Administrator)and TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS,a public and official agency of the State of Texas (Department,) herein collectively referred to as Parties in connection with the HOME Investment Partnerships Program Reservation System and Reservation System Participant Agreement # 20180039 executed by the Department and Administrator("Administrator Agreement"). RECITALS WHEREAS,Administrator wishes to make a Commitment of Funds to Qualified Household, as defined in Article I of this Contract, in accordance with and subject to all provisions of (1) the Administrator Agreement,as amended from time to time,(2)the HOME Investment Partnerships Act of 1990 (42 U.S.C. 12721-12839) (the Federal Act), (3) applicable Federal and CPD Notices issued by HUD, (4) implementing regulations at 24. CFR Part 92, (5) Chapter 2306 of the Texas Government Code (State Act), (6) 10 TAC Chapter 20 (Single Family Programs Umbrella Rule) in effect at the time of the execution of this Contract, (7) 10 TAC Chapter 23 (Single Family HOME Program Rule) in effect at the time of the execution of this Contract, and (8) "Application and Application Submission Procedures Manual" as defined in the Administrator Agreement, (collectively, Program Requirements); WHEREAS, Administrator agrees and acknowledges that this Contract serves as a supplement to the Administrator Agreement and, by execution hereof, shall be subject to all terms and conditions of Administrator Agreement,as may be amended from time to time, unless otherwise specified herein. 1002851/Thuy B.Dang NOW, THEREFORE, in consideration of the mutual covenants and conditions set forth herein, including the Recitals, which are contractual in nature, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, each intending to be legally bound, hereby agree as follows: ARTICLE I QUALIFIED HOUSEHOLD Administrator has reviewed the income and all other documentation necessary for the household of Thuy B. Dang (Qualified Household). Administrator has verified that the Qualified Household meets the Program Requirements and the requirements of the Administrator Agreement, as may be amended from time to time. ARTICLE II CONTRACT TERM Section 2.1 Contract Term A. This Contract shall be effective on the latter of the date executed by an authorized representative of the Department and the Administrator and shall remain in full force and effect for twelve (12) months after the effective date (Contract Term), unless earlier terminated or amended in accordance with the provisions herein. B. Without limitation, this Contract shall be subject to the terms and conditions of the Administrator Agreement, as may be amended from time to time, and Program Requirements for the entire Contract Term regardless of the Term of Administrator Agreement. ARTICLE III COMMITMENT OF FUNDS Section 3.1 HOME Funds A. The Department shall make a Commitment of Funds to Administrator in an amount not to exceed ONE HUNDRED THIRTY-FIVE THOUSAND AND 00/100 DOLLARS ($135,000.00) in Project funds and THIRTEEN THOUSAND SEVEN HUNDRED TEN AND 00/100 DOLLARS ($13,710.00) in soft costs for Reconstruction of the housing unit located at 3847 32nd St., Port Arthur, Texas which is owned by Qualified Household and occupied as their primary residence in accordance with the Program Requirements. B. To the extent that funds are available, the Commitment of Funds shall be made in the Reservation System under the following set-aside: ❑ Homeowner Rehabilitation Assistance (HRA) Set-Aside# (10 TAC §§23.30-32) 1002851 /Thuy B.Dang ❑ Contract for Deed Conversion (CFDC)Set-Aside# (10 TAC §§23.50-52) ❑ Tenant-Based Rental Assistance(TBRA) Set-Aside#(10 TAC §§23.60-62) ❑ Homebuyer Assistance with New Construction (HANC) or Rehabilitation Set- Aside#(10 TAC §§23.80-82) O Single-Family Programs for Persons with Disabilities(PWD)Set-Aside including the following activities: ❑TBRA#_(10 TAC §§23.60-62) ❑ HRA#(10 TAC §§23.30-32) E Disaster Relief Set-Aside including the following activities: ❑TBRA# (10 TAC §§23.60-62) xO HRA#1002851 (10 TAC §§23.30-32) C. Notwithstanding any other provision of this Contract to the contrary, the total of all payments and other obligations incurred by Department under this Contract shall not exceed the amounts set forth in Subsection A of this Section 3.1. D. Department's obligations under this Contract are contingent upon the actual receipt and availability by Department of adequate HOME federal funds. If sufficient funds are not available to fund this Contract, Department shall notify Administrator in writing within a reasonable time after such fact is determined and the Administrator shall immediately notify the Qualified Household. Department may then terminate this Contract and will not be liable for the failure to make any payment to Administrator under this Contract. Section 3.2 Compliance with Federal,State, and Local Law A. Unless otherwise noted, Administrator shall comply with the Single Family Programs Umbrella Rule and the Single Family HOME Program Rule in effect at the time the Administrator applied for HOME funds. B. Should the Federal or State Act change so that compliance with the applicable Single Family Programs Umbrella Rule and the Single Family HOME Program Rule is not possible, the Administrator shall comply with the applicable changes to the Federal and State Acts. C. Commitments resulting from Reservations submitted under an RSP agreement will be subject to the provisions of Single Family HOME Program Rule in effect as of the date of submission of the Reservation by the Administrator. 1002851/Thuy B.Dang ARTICLE IV LOAN/GRANT DOCUMENTS Section 4.1 Qualified Household Grants In the event Administrator qualifies a Qualified Household for a grant under the Program Requirements based upon a Qualified Household's information in the program application, Administrator agrees to the following: A. Administrator will prepare the Grant Documents(as defined in the Administrator's Agreement) for the Qualified Household. B. The Qualified Household shall execute the applicable Grant Documents (as defined in the Administrator's Agreement) for an amount in accordance with Section 3.1 of this Contract and the Program Requirements. Section 4.2 Qualified Household Loans In the event Administrator qualifies a Qualified Household for a residential mortgage loan (Qualified Household Mortgage Loan) under the Program Requirements based upon a Qualified Household's information in the program application, Administrator agrees to the following: A. Administrator will require a Qualified Household to complete the loan application supplement to the program application, hereinafter referred to as "loan application". B. Administrator will take the loan application of a Qualified Household applicant for a Qualified Household Mortgage Loan, originate the Qualified Household Mortgage Loan, , and conduct loan closings of the Qualified Household Mortgage Loan in accordance with the Section 5.3 of the Administrator's Agreement, the Mortgage Loan Disclosure Regulations, all applicable state and federal laws and regulations regarding the origination and closing of residential mortgage loans. C. Administrator's failure to originate Qualified Household Mortgage Loans or conduct loan closings in accordance with all applicable state and federal laws and regulations will be deemed an event of default under this Contract. D. Administrator expressly acknowledges that compliance with state and federal laws and regulations regarding residential mortgage loan origination, residential mortgage disclosures and residential mortgage loan closing is Administrator's responsibility, and the fact that Administrator or anyone acting on Administrator's behalf, either takes a residential mortgage loan application and submits it to the Department or prepares and delivers a mortgage disclosure to the Qualified Household and that the Department proceeds with closing of a loan does not in any manner constitute a finding, conclusion, or representation by the Department that the Administrator is in compliance with or exempt from such legal requirements. 1002851/Thuy B.Dang ARTICLE V AMENDMENTS Section 5.1 Changes,Amendments and Extensions Except as specifically provided otherwise in this Contract, the Single Family Programs Umbrella Rule or the Single Family HOME Program Rule, any changes, additions, or deletions to the terms of this Contract shall be in writing and executed by both Parties to this Contract in accordance with Section 20.14 of the Single Family Programs Umbrella Rule and shall comply with the extension requirements of Subchapter B of the Single Family HOME Program Rule. Section 5.2 Changes and Amendments Required by Law Any changes, additions, or deletions to the terms of this Contract, which are required by changes in federal or state law, or regulations, are automatically incorporated into this Contract and shall become effective on the date designated by such law or regulation without the requirement of a written amendment hereto. Said changes, additions, or deletions referenced under this Subsection B of Section 4.1 may be further evidenced in a written amendment. Section 5.3 Modifications to Qualified Household Mortgage Loan Documents If any amendment to this Contract affects the Qualified Household Mortgage Loan documents,the documents may be modified accordingly in accordance with Section 20.14 of the Single Family Umbrella Program Rules. Section 5.4 Facsimile Signatures A facsimile or electronic copy executed by both Parties will be sufficient to evidence the Parties agreement to any amendment, revision or change to this Contract. If any Party returns this copy by facsimile machine or electronically, the signing party intends the copy of its authorized signature printed by the receiving machine, or the electronic copy, to be its original signature. 1002851/Thuy B.Dang IN WITNESS WHEREOF, each of the Parties has executed this Contract as of the dates written below. DEPARTMENT: TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas By: Its duly authorized officer or representative Date: ADMINISTRATOR: City of Port Arthur, a political subdivision of the State of Texas By: Ronald Burton, City Manager Date: 1002851/Thuy B.Dang