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HomeMy WebLinkAboutPR 15467: TDHCA INDEMNITY & HOLD HARMLESS AGREEMENTMemo HOUSING ASSISTANCE DIVISION To: Steve Fitzgibbons, City Manager From: Rebecca Underhil/, Assistant City Manager Date: August 27, 2009 Re: P.R. 15467 RECOMMENDATION: I recommend the City Council adopt Proposed Resolution 15467, authorizing the execution of an Indemnity and Hold Harmless Agreement "Agreement" between the City of Port Arthur and Texas Department of Housing and Community Affairs (TDHCA). BACKGROUND: The City of Port Arthur Emergency Assistance Program completed homes after the Hurricane Rita Disaster with CDBG funds executing a five year lien (With Deferral and Forgiveness Provisions)) with the homeowner for contracts exceeding $5,000. During the period of affordability (five years) Hurricane Ike struck the community. The TDHCA CDBG Disaster Recovery Program, Homeowner Assistance Program "HAP", has identified households in the City of Port Arthur CDBG area to receive assistance with the CFDA 14.228 Community Development Block Grant Program Funds. The TDHCA Indemnity and Hold Harmless Agreement ("Agreement") identifies the applicants who were previously assisted with the City's CDBG funds. The "Agreement" will allow the homeowner construction of improvements on the property while maintaining the property as the primary residence. Listed below are the following TDHCA "Agreements": Indemnity and Hold Harmless Agreement. The City is the owner and holder of that certain promissory note in the original principal amount of $6,425 which is secured by a Deed of Trust dated June 6, 2006 from Annie B. Ambrose to Stephen Fitrgibbons, Trustee to the City of Port Arthur, recorded in Lien Document Number 2007001726 official of Public Records of Jefferson County, Texas. Indemnity and Hold Harmless Agreement. The City is the owner and holder of that certain promissory note in the original principal amount of $6,500 which is secured by a Deed of Trust dated June 28, 2006 from Evelyn Madison to Stephen Fitzgibbons, Trustee to the City of Port Arthur, recorded in Lien Document Number 2006028653 official of Public Records of Jefferson County, Texas. Indemnity and Hold Harmless Agreement. The City is the owner and holder of that certain promissory note in the original principal amount of $6,400 which is secured by a Deed of Trust dated August 5, 2006 from Angelina Charles to Stephen Fitrgibbons, Trustee to the City of Port Arthur, recorded in Lien Document Number 2007029483 official of Public Records of Jefferson County, Texas. Indemnity and Hold Harmless Agreement. The City is the owner and holder of that certain promissory note in the original principal amount of $6,500 which is secured by a Deed of Trust dated October 5, 2006 from Floyd Ella Jenkins to Stephen Fitrgibbons, Trustee to the City of Port Arthur, recorded in Lien Document Number 2007001719 official of Public Records of Jefferson County, Texas. Indemnity and Hold Harmless Agreement. The City is the owner and holder of that certain promissory note in the original principal amount of $6,450 which is secured by a Deed of Trust dated September 9, 2006 from LaVonne Carter to Stephen Fitrgibbons, Trustee to the City of Port Arthur, recorded in Lien Document Number 2007001713 official of Public Records of Jefferson County, Texas. STAFFING/EMPLOYEE EFFECT: Housing Administration staff will be responsible for administering the execution of the TDHCA Indemnity and Hold Harmless Agreement. SUMMARY: I recommend the City Council adopt Proposed Resolution 15467 authorizing the execution of the Indemnity and Hold Harmless Agreements between the City of Port Arthur and Texas Department of Housing and Community Affairs (TONGA) for lien holders Annie B. Ambrose, Evelyn Madison, Angelina Charles, Floyd Ella Jenkins and LaVonne Carter. P. R. 15467 8/26/09 BF/HOUSING RESOLUTION NUMBER A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN INDEMNITY AND HOLD HARMLESS AGREEMENT ~~AGREEMENT") (ATTACHMENTS 1, 2, 3, 4 AND 5) WITH THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS (TDHCA) FOR THE COMPLETION OF RECONSTRUCTION OF HOMES THAT WERE IDENTIFIED WITH SUBSTANTIAL DAMAGE CAUSED BY HURRICANE RTfA. THE PROGRAM WILL BE ADMINISTERED BY THE STATE OF TEXAS CDBG DISASTER RECOVERY PROGRAM WHEREAS, pursuant to Resolution No. 06-142, the City obligated itself to provide owner-occupied home rehabilitation and/or reconstruction assistance for low and moderate income persons/families; and, WHEREAS, pursuant to Resolution No. 06-509, the City adopted the Housing Assistance Rehabilitation Program Guidelines presented by HUD; and, WHEREAS, the City is the owner and holder of certain promissory notes executed by the homeowner and secured by Deeds of Trust from the homeowner to the Trustee for the City, Stephen Fitrgibbons; and, Whereas, the City of Port Arthur is the owner and holder of that certain promissory note in the original principal amount of $6,425 which is secured by a Deed of Trust dated June 6, 2006 from Annie B. Ambrose to Stephen Ftrgibbons, Trustee to the City of Port Arthur, recorded in Lien Document Number 2007001726 official of Public Records of Jefferson County, Texas as denoted in the Indemnity and Hold Harmless Agreement, Attachment °1"; and, Whereas, the City of Port Arthur is the owner and holder of that certain promissory note in the original principal amount of $6,500 which is secured by a Deed of Trust dated June 28, 2006 from Evelyn Madison to Stephen Fitrgibbons, Trustee to the City of Port Arthur, recorded in Lien Document Number 2006028653 official of Public Records of Jefferson County, Texas as denoted in the Indemnity and Hold Harmless Agreement, Attachment"2"; and, Whereas, the City of Port Arthur is the owner and holder of that certain promissory note in the original principal amount of $6,400 which is secured by a Deed of Trust dated August 5, 2006 from Angelina Charles to Stephen Fitzgibbons, Trustee to the City of Port Arthur, recorded in Lien Document Number 2007029483 official of Public Records of Jefferson County, Texas as denoted in the Indemnity and Hold Harmless Agreement, Attachment"3"; and, Whereas, the City of Port Arthur is the owner and holder of that certain promissory note in the original principal amount of $6,500 which is secured by a Deed of Trust dated October 5, 2006 from Floyd Ella ]enkins to Stephen Fitrgibbons, Trustee to the City of Port Arthur, recorded in Lien Document Number 2007001719 official of Public Records of Jefferson County, Texas as denoted in the Indemnity and Hold Harmless Agreement, Attachment "4"; and, Whereas, the City of Port Arthur is the owner and holder of that certain promissory note in the original principal amount of $6,450 which is secured by a Deed of Trust dated September 9, 2006 from LaVonne Carter to Stephen Fitrgibbons, Trustee to the City of Port Arthur, recorded in Lien Document Number 2007001713 official of Public Records of Jefferson County, Texas as denoted in the Indemnity and Hold Harmless Agreement, Attachment "5"; and, WHEREAS, all Attachments are deemed essential for the completion of activities undertaken by TDHCA and must principally benefit low and moderate income persons which has been determined by the parties and is established under the guidelines of the Housing and Community Development Act of 1974, as amended; therefore, BE TT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: SECTION I. That the facts and opinions in the preamble are true and correct. SECTION 2. That the City Manager is authorized to execute the "Agreements" with TDHCA as outlined herein and further described in the attached "Agreements" marked Attachment "1", Attachment " 2", Attachment " 3", Attachment "4"and Attachment "5"; and, 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., 2009 at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: MAYOR COUNCILMEM NOES: MAYOR ATTEST: CITY SECRETARY APPROVED FOR FORM: ~~ ~~~ CITY ATTORNEY APPROVED FOR ADMINISTRATION: CITY MANAGER REBECCA UNDERHILL ASSISTANT CITY MANAGER ATTACWMENT ~~1" TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS CFDA 14.228 Community Development Block Grant Program ("CDBG°) Hurricanes Katrina, Rita and Wilma in the Gulf of Mexico 2005 Federally Declared Disaster Funding Under Department of Defense Appropriations Act, 2006 CDBG Disaster Recovery Program Homeowner .4ssistance Program "HAP" or Sabine Pass Restoration Program "SPRP" Awarding Federal Agency: United States Department of Housing and Urbao Development TDHCA Federal Award Number: B-06-DG-48-0002 Federal Award Year (Year of Award from HUD to TDHCA): 2006 TDHCA Award Year: 2007 INDEMNITY AND HOLD HARMLESS AGREEMENT ("Agreement"} THIS AGREEMENT IS MADE BY AND BETWEEN Cit_v of Port Arthur a {limited partnership/corporatiom'individual etc.] {Hereinafter called "Indemnitor") and TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas (hereinafter called "TDHCA"), on this the day of , 2009. WITNESSETH: WHEREAS, Indemnitor is the owner and holder of that certain superior promissory note executed by Annie B. Ambrose in the original principal amount of $6,425.00 which is secured by a superior Deed of Trust dated June 6, 2006 from Annie B. Ambrose to Stephen Fitzgibbons Trustee , recorded in Lieu Document Number 2007001726 official of Public Records of Jefferson County,. Texas, (hereinafter called "Mortgage Lien"), upon and against the following described real property: The real property described in Exhibit "A" attached hereto and located in Jefferson County, Texas (hereinafter called "Property"); and WHEREAS, Homeowner and TDHCA have executed, or plan to execute, a CDBG Disastcr Recovery IIAP or SPRP Program Grarrt Agreement ("Grant Agreement") for TDHCA to grant funds to Homeowner for installation and/or construction of improvements on the Property in accordance with the CDBG regulations; and R'HEREAS, Homeowner; TDHCA, and a contractor (the "Contractor") approved by Homeowner and TDHCA, have executed, or plan to execute, a CDBG Disaster Recovery HAP or SPRP Program Construction Grant Agreement ("Construction Grant Agreement") relating to the manner of disbursement of the grant proceeds under the Grant Agreement to or for the benefit of Homeowner and for installation and/or construction of improvements on the Property, subject to the terms contained therein: and 20090518 "TDHCA Grant Indemnity and Hold Harmless Agreement Page 1 of 4 File # 1219-_ 192400!6021 WHEREAS, Indemnitor has been requested. to consent to the planned demolition and replacement or rehabilitation of all or some improvements on the Property for which the TDHCA's funds will be used; and WHEREAS, the TDHCA declines to disburse the funds under the Grant Agreement or Constnlction Grant Agreement for said activity on the Property unless Indemnitor consents to the demolition and replacement or rehabilitation of improvements on the Property and indemnifies and holds harmless the TDHCA from any loss, reduction of value or damage which may result from said activity; NOW, THEREFORE, in consideration of the premises, parties hereby agree as follows: 1. In consideration for the TDHCA's agreement to disburse funds, or to evaluate Homeowner's application for the receipt of funds, under the Grant Agreement and Construction Grant Agreement to improve the Property used as collateral under the Mortgage Lien, Indenmitor hereby releases, waives, discharges and covenants not to sue the TDHCA, its officers, agents, or employees from any and all liability, claims, demands, actions and causes of action whatsoever arising out of or related to any loss, reduction of value or damage to the Property in the demolition, rehabilitation and/or constmction of improvements on the Property, whether caused by the negligence of the TDHCA, its agents, Homeowner, Contractor, or otherwise, while performing or funding such activity. 2. Indemnitor also has a signiLcant financial interest in the Property to be demolished and rehabilitated. Accordingly, Indemnitor and TDHCA furthcr agree as follows: A. Indemnitor is fully aw~aze of the risks involved with the demolition and construction of improvements on the Property, including but not limited to the depreciation of value in the collateral securing Indemnitor's Mortgage Lien, and Indemnitor hereby conscnts to said activity by Contractor and their employees and sub-contractors, including the funding of said activity by TDHCA, with full knowledge that said activity may damage and/or reduce the value of the collateral securing Indemnitor's Mortgage Lien. B. Indemnitor further hereby agrees to indemnify and hold harmless the TDHCA, its officers, agents, or employees tiom any loss, liability, damage or costs, including court costs and attome}~ fees, that they may incur duc to claims made by Indemnitor, its affiliates, subsidiaries, parent companies, assignees and/or any third parties who aze party to a contractual service agreement with Indemnitor, relating to the TDHCA's disbtusement of grant funds under the Grant Agreement and Construction Grant Agreement nr the performance by Contractor or subcontractors under the Construction Grant Agreement for the demolition and construction of improvements on the Property, whether caused by negligence of the TDHCA, its agents, Homeowner, Contractor and their employees and sub-contractors, or otherwise. C. Indemnitor understands that the TDHCA does not maintain any insurance policy covering any circumstance arising from Indemnitor's consent to the demolition and Constnlction of the Propert}° which serves as collateral for the Mortgage Lien. 200401 18 TDHCA Grant Indemnity and Hdd Harmless Agreement Page 2 of 4 File b 1219-2192400/6021 3. It is the parties express intent that this Agreement shall bind the parties hereto and their respective successors and assigns. The parties hereby further agree that this Agreement shall be construed in accordance with the laws of the State of Texas. 4. In signing this Agreement, Indemnitor acknowledges and represents that Indemnitor has read the foregoing Agreement, understands it and signs it voluntarily as Indemnitor's own free act and deed. No oral representations, statements, or inducements, apart from those expressly set forth in this Agreement, havc bccn made. 5. The person signing this Agreement on behalf of each party represents that he or she has the full legal authority to execute this Agreement on behalf of the party for which he or she signs. IN WITNESS WHEREOF, Indemnitor and TDHCA have executed this Agreement to be effective as of the date first above written. City of Port Arthur By: Name: Title: Date: 20090518 7DHCA Grant Indemnity and Huld Harmless Agreement Pege 3 of 3 Filc N 1219-2192JOOi6021 TDHCA: TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas sy: Name: Title: Date: 200905 [8 TDHCA Grant Indemnity and Hold Harmless Agreement Page 4 of 4 File til?19.2192400!603! ATTACHMENT ~~2" TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS CFDA 14.228 Community Development Block Grant Program ("CDBG") Hurricanes Katrina, Rita and Wilma in the Gulf of Mexico.2005 Federall}• Declared Disaster Funding Under Department of Defense Appropriations Act, 2006 CDBG Disaster Recovery Program Homeowner Assistance Program "HAP" or Sabine Pass Restoration Program "SPRP" Awarding Federal Agency: United States Department of Housing and Urban Development TDHCA Federal Award Number: B-06-DG-48-0002 Federal Award Year (Year of Award from HUD to TDHCA): 2006 TDHCA Award Year: 2007 INDEMNITY AND HOLD HARMLESS AGREEMENT ("Agreement") THIS AGREEMENT 1S MADE BY AND BETWEEN City of Port Arthur a [limited partnership/corporation/individual etc.] (Hereinafter called °Indemnitor") and TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas (hereinafter called "TDHCA"), on this the day of , 2009. WITNESSETH: WHEREAS, Indemnitor is the owner and holder of that certain superior promissory note executed by Evenly Madison in the original principal amount of 56,500.00 which is secured by a superior Deed of Trust dated June 28, 2006 from Evenly Madison to Stephen Firtzgibbons Trustee. recorded in Lien Document Number 2006-28653 official of Public Records of Jefferson County, Texas, (hereinafter called "Mortgage Lien"), upon and against the following described real property: The real property described in Exhibit "A" attached hereto and located in Jefferson County, 'Texas (hereinafter called "Property"); and WHEREAS, Homeowner and TDHCA have executed, or plan to execute, a CDBG Disaster Recovery -HAP or SPRP Program Grant Agreement ("Grant Agreement") for TDHCA to grant funds to Homeowner for installation and/or construction of improvements on the Property in accordance with the CDBG regulations; and WHEREAS, Homeowner, TDHCA, and a contractor (the "Contractor") approved by Homeowner and TDHCA, have executed, or plan to execute, a CDBG Disaster Recovery HAP or SPRP Program Construction Grant Agreement ("Construction Grant Agreement") relating to the manner of disbursement of the grant proceeds under the Grant Agreement. to or for the benefit of Homeowner and for installation and/or construction of improvements on the Property, subject to the terms contained therein; and 2P090? 18 TDHCA Grant indemnity and Hold Harmless Agreement Page ] of 4 File #1?79.219U707~7346 WHEREAS. Indemnitor has been requested to consent to the planned demolition and replacement or rehabilitation of all or some improvements on the Property for which the TDHCA's funds will be used; and WHEREAS. the. TDHCA declines to disburse the funds under the Grant Agreement or Construction Grant Agreement for said activity on the Property unless Indemnitor consents to the demolition and replacement or rehabilitation of improvements on the Property and indemnifies and holds harmless the TDHCA from any toss, reduction of value or damage which may result from said activity: NOW, THEREFORE, in consideration of the premises, parties hereby agree as follows: 1. In consideration for the TDHCA's agreement to disburse funds, or to evaluate Homeowner's application for the receipt of funds, under the Grant Agreement and Construction Grant Agreement to improve the Property used as collateral under the Mortgage Lien, Indemnitor hereby releases, waives, discharges and covenants nol to sue the TDHCA, its officers, agents; or employees from any and all liability, claims, demands, actions and causes of action whatsoever azising out of or related to any loss, reduction of value or damage to the Property in the demolition, rehabilitation and/or construction of improvements on the Propert}•, whether caused by the negligence ot; the TDHCA, its agents, Homeowner, Contractor, or otherwise, while performing or funding such activity. 2. Indemnitor also has a significant financial interest in the Property to be demolished and rehabilitated. Accordingly, Indemnitor and TDHCA further agree as follows: A. Indemnitor is fully aware of the risks involved with the demolition and construction of improvements on the Property, including but not limited to the depreciation of value in the collateral securing Indemnitor's Mortgage Lien, and Indemnitor hereby consents to said activity by Contractor and their employees and sub-contractors, including the funding of said activity b}- TDHCA, with full knowledge that said activity may damage and/or reduce the value of the collateral securing Indcmnitor's Mortgage Lien. B. Indemnitor further hereby agrees to indemnify and hold harmless the TDHCA, its officers, agents, or employees from any loss, liability, damage or costs, including court costs and attomcy fees, that they may incw due to claims made by Indemnitor, its affiliates, subsidiaries, parent companies, assignees and/or any third parties who aze party to a contractual service agreement with Indemnitor, relating to the TDHCA's disbtusement of, grant funds under the Grant Agreement and Construction Grant Agreement or the performance by Contractor or subcontractors under the Construction Grant Agreement for the demolition and construction of improvements on the Property, whether caused by negligence of the TDHCA, its agents, Homeowner; Contractor and their employees and sub-contractors, or otherwise. C. Indemnitor understands that the TDHCA does not maintain any inswance policy covering any circumstance arising from Indemnitor's consent to the demolition and construction of the Property which serves as collateral for the Mortgage Lien. 20090518 TDHCA Grant Indemnity and Hold Harmless Agreement Page 2 of A File N1219.21907077734b 3. It is the parties express intent that this Agreement shall bind the parties hereto and their respective successors and assigns. The parties hereby further agree that this Agreement shall be construed in accordance with the laws of the State of Texas. 4. In signing this Agreement, Indemnitor acknowledges and represents that Indemnitor has read the foregoing Agreement, understands it and signs it voluntazily as Indemnitor's own free act and deed. No oral representations, statements, or inducements, apart from those expressly set forth in this Agreement, have been made. ~. The person signing this Agreement on behalf of each party represents that he or she has the full legal authority to execute this Agreement on behalf of the party for which he or she signs. IN WITNESS WHEREOF, Indemnitor and TDHCA have executed this Agreement to be effective as of the date first above written. City of Port Arthur sy: Name: Title: Date: 2U090518 TllHCA Grant Indemnity and Hold Harmless Agreement Page 3 of 4 File # 12 ] 9-219010717346 TDHCA: TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS; a public and official agency of the State of Texas sy: Name: Title: Date: 20090518 TDHCA Grant Indemnitq and Hold Harmless Agreement Page 4 of 4 File k 1219-2190707/73A6 ATTACHMENT " 3" TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS CFDA 14.228 Community Devclopment Block Grant Program ("CDBG") Hurricanes Katrina, Rita and Wilma in the Gulf of Mexico 2005 Federalty Declared Disaster Funding Under Department of Defense Appropriations Act, 2006 CDBG Disaster Recovery Program Homeowner Assistance Program "HAP" or Sabine Pass Restoration Program "SPRP" Awarding Federal Agency: United States Department of Housing and Urban Development TDHCA Federal Award Number: B-06-DG-48-0002 Federal Award Year (Year of Award from HUD to TDHCA): 2006 TDHCA Award Year: 2007 INDEMNITY AND HOLD HARMLESS AGREEMENT ("Agreement") THIS AGREEMENT IS MADE BY AND BETWEEN City of Port Arthur a (limited partnership~corporation/individual etc.} (lereinafter called "Indernnitor") and TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas (hereinafter called "TDHCA"), on this the _ day of , 2009. WITNESSETH: WHEREAS, Indemnitor is the owner and holder of that certain superior promissory note executed by Angelina Charles in the original principal amount of $6,400.00 which is secured by a superior Deed of Trust dated August O5, 2006 from Angelina Charles to Stephen Fitzgibbons Trustee , recorded in Lien Document Number 2007029483 official of Public Records of Jefferson County, Texas, (hereinafter called "Mortgage Lien"), upon and against the following described real property: The real property described in Exhibit "A" attached hereto and located in Jefferson County, Texas (hereinafter called "Property"}; and WHEREAS, Homeowner and TDHCA have executed, or plan to execute, a CDBG Disaster Recovery HAP or SPRP Program Grant Agreement ("Grant Agreement") for TDHCA to grant funds to Homeowner for installation and~or construction of improvements on the Property in accordance with the CDBG regulations; and WHEREAS, Homeowner, TDHCA, and a contractor (the "Contractor") approved by Homeowner and TDHCA, have executed, or plan to execute, a CDBG Disaster Recovery HAP or SPRP Program Construction Gran[ Agreement ("Construction Grant Agreement") relating to the manner of disbursement of the grant proceeds under the Grant Agreement to or for the benefit of Homeowner and for installation and!or construction of improvements on the Property, subject to the terms contained therein; and 20090518 TDHCA Grant lndemniry and Hold Harmless Agreement Page 1 of 4 Fik 171219.219380214252 WHEREAS, lndemrtitor has been requested w consent to the planned demolition and replacement or rehabilitation of all or some improvements on the Property for which the TDHCA's funds will be used; and WHEREAS, the TDHCA declines to disburse the funds under the Grant Agreement or Construction Grant Agreement for said activity on the Property unless Indemnitor consents to the demolition and replacement or rehabilitation of improvements on the Property and indemnifies and holds harmless the TDHCA from any' loss, reduction of value or damage which may result from said activity; NOW, THEREFORE, in consideration of the premises, parties hereby agree as follows: L In consideration for the TDHCA's agreement to disburse funds, or to evaluate Homeowner's application for the receipt of funds, under the Grant Agreement and Construction Grant Agreement to improve the Property used as collateral under the Mortgage Lien, Indemnitor hereby releases, waives, discharges and covenants not to sue the TDHCA, its officers, agents, or employees from any and all liability, claims, demands, actions and causes of action whatsoever azising out of or related to any loss, reduction of value or damage to the Property in the demolition, rehabilitation attd/or construction of improvements on the Property, whether caused b}' the negligence of the TDHCA, its agents, Homeowner, Contractor, or otherwise, while performing or fimding such activity. 2. Indemnitor also has a significant financial interest in the Property to be demolished and rehabilitated. Accordingly, Indemnitor and TDHCA filrther agree as follows: A. Indemnitor is fully aware of the risks unsolved with the demolition and construction of improvements on the Property, including but not limited to the depreciation of value in the collateral securing Indemnitor's Mortgage Lien. and Indemnitor hereby consents to said acrivity by Contractor and their employees and sub-contractors, including the funding of said activity by TDHCA, with full knowledge that said activity may daniage and/or reduce the value of the collateral securing Indemnitor's Mortgage Lien. B. Indemnitor further hereby agrees to indemnify and hold harmless the TDHCA; its officers, agents; or employees from any loss, liability, damage or costs, including court costs and attorney fees, that they may incur due to claims made by Indemnitor, its affiliates, subsidiaries, parent companies, assignees and/or any third parties who are party to a contractual sen'ice agreement with Indemnitor, relating to the TDHCA's disbursement of gran) funds wider the Grant Agreement and Construction Grant Agreement or the performance by Contractor or subcontractors under the Construction Grant Agreement for the demolition and construction of improvements on the Property, whether caused by negligence of the '1 DHCA, its agents, Homeowner, Contractor and their employees and sub-contractors, or otherwise. C. Indemnitor understands that the TDHCA does not maintain any insurance policy covering any ciretunstance arising from Indemnitor's consent to the demolition and construction of the Property which serves as collateral for the Mortgage Lien. 20090518 TDHCA Grant Indemnitr• mid Hold Harmless Agreement Page 2 of 4 Fi4 M7219-2193802!5252 3, ll is the parties express intent that this Agreement shall bind the patties hereto and their respective successors and assigns. The parties hereby further agree that this Agreement shall be construed in accordance with the laws of the State of Texas. 4. In signing this Agreement, Indemnitor acknowledges and represents that Indemnitor has read the foregoing Agreement, understands it and signs it voluntazily as Indemnitor's own free act and deed. 130 oral representations, statements, or inducements, apart from those expressly set forth in this Agreement, have been made. 5. The person signing this Agreement on behalf of each party represents that he or she has the full legal authority to execute this Agreement on behalf of the party for which he or she signs. IN WITNESS WHEREOF, Indemnitor and TDHCA have executed this Agreement to be effective as of the dale first above written. City of Port Arthur a By: Nance: Title: Date: Page 3 of 4 20090518 TDHCA Gram Indzmniry and Hold Harmless Agreement Filc H 1219-2193802id252 A°~"PACHIVIEN'T '~4" "1'1•;.CAS DF,PAR'I'141EN'1' OF 110USiNC AND COMMUNITY AFFAl125 CPUA IA.22R Community Development 131ock (,rmt Prn~mm ("CUBG") Hurtiumcs Katrina, lino and Wilma in tIK~ Golf of Mcxicu ZU05 Federnlly Declared Disaster Fundutg Under Department of Dcfrnse Appropriations Aet, 200[, CURD Dix:wvt~+r RtY~rvcty 1'rv~rrm (°IGrmeowner Assisbrnce ItroKrnn'•HAP" or Sabine Pass Restoration Yro~mm "SYRP" ") ,4wenlin~ 1%cderal Apency: lJnitcd States Department of Ilousin~ and Urban llevclopment TDiIC,\ Fedcr;rl Award Number: R-0(-DC-41i-0002 Fcdct :rl Award Ycar (Year of Award from H1JU to Tl)HC'A): ZOUG '1'UIICA Award Ycar: 211117 INDEMN.-TY AND HOLD HARMLESS AGREEMENT ("A(;reement") "PHIS AGI2GG~9i•:N'I' IS ~tAl)E 131' AND 13I:`fWEGN CITY OF YOR'1' AR'f11UR.,., a (limited partaership/corpurativn/individual etc.J (hcrcinaftzr allied ..._ "Tndclnnitor") :uui TT\:1S UEYAIi"1'MTNT OF HOlIS1Nf: AND COMMUNITY :\FF:11RS, a puhl is sod vilicial agzncy o1'thc State of Texas (hcroinaftcr called ""fDIICA"), nn ibis the __-___ day of ___ _..--_--_J, 20 W I'1'NIiSSli'fI1: WITF.Ri?A5, Indentnitor ix the ownzr and holder of that tahtain superior promissory, notz executed by FLOYD !?l.f~:1 .1GNir;I:VS ("Ikmtzowner") in the original principal amount of SG,51111.IN1, which is secured by a superior Deed of "Trust dated October 5, 200G !i•om lhnnco+vnzr to S'fLP111iN FITZGIi3130N5, "I'nlstuc, recorded in ZUU7W1719 of the Ollicial }'tlblic Records of,iL;FFLRSON Cuunty, Texas, (hereinaftercalled "Mortgage-Lien"), upon and against the ti>Ilo+vittg dcxerihcd real property: Lot Number Ten (10), in (/lock Number 'Cwo-llundred Ninr. (209 of the CTTY OF PORT ART}(i1R, .lefferson County, Tea:+., according fat the map yr plat thereof filed of rcrord in Volume 1, Pale 49, of'1'he Map Records of .leffct•son (:'onnty, "I'csas nt Ileaunutnf.. (hcreinallor called "Yropertv'"); and N'IIRRI!:AS, liontcomler and '1'Dl•1CA have executed, or plan to execute. a Cll13G Disaster Rt:cavcry IL11' or 5I'RP I'rol,~nrn Grant Agreement ("Grant Agreemchtt") lbr TDIICA to grant funds to }lotncowncr 1'or installation and/or constnlctiun of improvements on the fropzrty in acwrdance with the Cl)BCi regulations; and \VI-lEI2E:.4ti, Ilomeownzr, `1'llllC.~. and a coniracl~r (the "Contractor") approved by Huntcowncr autd'1'DIIC:1. have executed. or plan to execute, a CDI1C, Disvetcr Recovery fIAP or SI'R1' Yrotram Constnlction Grant Atrcancnt ("Constniclion Grant Agreement") relating, to the manner of disbursement ul'thc grant jmx:ccds under the Grant Agrecmenl lv yr fiir Utc benefit of tUUJU'.l8 TI?Hi'A Gmni SuckMtip Indcrnnity :u,d Hold H~arndtss Agranmm Pagc 1 .1'4 File R I) t 7-I 99ti 105 l 25552.110 Tiomcowncr and fix installation an<tlnr artstntcl.ion of improventc~ttls on the Prolteny, suhjcM to the leans contained therein: and ~VII);RTAS, Indcmnitor has lx;cn requested to consent to the planned demolition and replacement or rehabilitation of all or sotrn improvements nn the Property for which the 1'1)IiCA's funds will he used; and Wlil'sRHA5, the 'I'DIICA declines to disbutne the funds under the Grant Agr~romcnt or Consuvetion Cinnt Agreement for said activity on the Property unless Indentnitor consents to the demolition and rcplaccnteni or rehabilitation o1' improvetmnts on the pritp~ti1y amd indcmnitics and holds harmless the TnIICA from any loss, redaction of value or damage which may result tiom said activih; NOW,'1'HSILEFORIi, in consideration ofthc premises, parties hereby agreras follows: 1. In consideration .fur the TDIICA's agreement to disburse tiutds, or to evaluate lhmtcowncr's applicatirnt for the receipt ol'tunds, under the Grant Agreest)ent and Construction Grant Agrocmcut to improve the Property used as collateral under the Mortgage l..icn, htdcntnitor hereby rcleas~~;, waives, discharges and covenants rwt to sue the 'I'nHCA, iLa oCGccn, agents, or untployws from mtv and alt liability. claims, demands, actions-:tad causes of action. whatsoever arising out of or related to any loss, reduction of value or damage to the Property in the dcmolitism, rehabilitation and/or constntcl.ion oC ifnprovemvtitls on the Property,. whother caused by the negligence of tttc.TnHCA, its agents, ilomcrowner, Contractor, or otherwise, white performing or lwtding such activity. 2.. Indentnitor also has a signilirant financial interest in the Property to be dcmolishcd and rehabilitated. Accordingly, indemnitor and'I'DHCA titnhcr agree as follows: .\. Indcmnitor ix filly aware of the risks involved with the demolition-and wnst.nttKion of improvements on the Properly, including but not limited to the dcprociation of value in the collalcrai securing lndcmnitor's Dortgage Licn.:utd lndcmtiitor hereby consents to said activity by Contractor and their csnpinyees and sub-contractors, including thu hording of said activity by TDHCA, with till knowledge that said activity may damage. author reduce the value o1'the atllatcral k;curiug lndenmitor's Mortgage Licn. 13. indcmnilor further hereby agrees to indemnify and hold harmless the '1 UHCA, its olliccrs, agents, or employees from :uty loss, liability, damage or costs, including court costs end attnmoy tees, th:u they oral' inalr clue to the TDHCA's dishurseinant of gr:mt tinuis under the Grant. Agreement and Construction Grutt Agreement or the perfonttanec by Contractor or subcontractors under the Construction Cirant. rlgrcement tier the demolition :utd conslntetiun of intprovcntcnts on flee Property, whether caused by negligence of the TDTICA, its agents, Homeowner, Contractor and their employees and sish-comractors ,or ulhctwisc. 2UU'~n7I s TDHCA Grans Stickb~rilt hxl~~nnity wtd Hotel H~un7lcss Ap~ecmenf Fade 2 nl' a Filetl1219.179fi105~25557. 11^ C. indcrnnitor understands that the TDl-ICA does not maintain any iessurance policy covering any circumstance arising from Indemnitor's consent to the demolition and construction of the Property which serves as collateral for die Mortgage Lien. 1, 1t is the parties express intent that this Agreement s1k~11 bind the parties-hereto and their reslxctive successors and assigns. '11+c panics hereby further a~w that this Agreement shall be coastnled in accordance with the laws of the State of Texas. ~t. In signing this Agreement. Indcmnitor acknowledges and represents that Indcmnitor has read the foregoing Agrccmv-Itt, understands it and signs it voluntarily as indcKnnitor's own tree act and deed. No oral representations, slatrmcnts, or inducements, apart from those cxpresciy set lurth in this A€rcentent, have been mode. 5. 'The parson siding this :lgrecment nn behalf of each party represents that he or she has . the lull legal authority to csccutc [his Agreement rn+ bchall' 01' the party for which Ile or she signs. IN WITNESS WIlERLOF. Indcmnitor :md "I'UHCA have: executed this Agmement to be cfI'c~tivc as ofthe date first. above wrstten. INl)G]VINITOR: ~~. Name: S% /n~~q ~ ~2g , C/Uf17 1 '1'itlc: ~ ~A n w n c' r Date: y '00?U21 K ~{~UN<:A i;nml Suckbailt Indemnity and Hold linnnle~c Agreement Yuge 3 vr4 Fi lc 7:1 J,19-1'~)tilUS! 25552410 '1'DIICA: T>itAS 1)EPA12'1'Ml"sN'1' COl<1M1.JNITY Ak'FA1125 agency of the St:+le of'1'¢xas liv: N:nnr. fitlu: llate: OP HOLISING ANll a public and utTici:+I 2ngVU2I H 7-llNCA lir:un titick6uiL Ind~nniry mid Hold }fartnlcss Agrcemc1d I'ugc a of a r~~ nlne• imio)os; isssza) o ATTACHMENT ~~5" TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIItS CFDA 14.228 Community Development Block Grant Program ("CDBG°) Harricanea Katrina, Rita and Wibaa io the Gaff of Marten 2005 Federally Declared Disaster Funding Under Department of Defense Appropriations Aet, 2006 CDBG Divaater Recovery Program ("Homeowner Assistance Program "HAP" or Sabine Pass Restoration Program "SPRP"'~ Awarding Federal Agency: United States Department of Honsiog and Urban Development TDHCA Federal Award Number. B-06-DG~8-0002 Federal Award Year (Year of Award from HUD to TDHCA): 2006 TDHCA Award Year. 2007 INDEMNITY AND HOLD HARMLESS AGREEMENT ("Agreement") THIS AGREEMENT IS MADE BY AND BETWEEN ~ty of Port ArWnr a [limited partaeishipkotporatioa/mdividual etc.] (hereinafter called "Indemnitor'~ and TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and official agency of tbe State of Texas (hereinafter called "'1'DHCA'~, on this the day of , 2U09. WIINESSETH: WHEREAS, Indemnitor is the owner and holder of that certain superior promissory note executed by ^ ("Homeowner") in the original principal amour of 56,450.00, which is secured by a superior Deed of Trust dated September 9, 2006 from LaVonne Carter tiD Stephea Fitzgibbons, City Manager, City of Port Arthur, Trustee, recorded in Lieu Doctmment Number 2007001713 Public Records of Jefferson County, Texas, (hereinafter called "Mortgage Lien"), upon and against the following described real property: The real property described in Exbibit "A" attached hereto and located in Jefferson County, Texas (hereinafter called "Property'; and WHEREAS, Homeowner and TDHCA have executed, or plan m execute, a CDBG Disaster Recovery HAP or SPRP Program Grant Agreement ("Grant Agreement's for TDHCA to grant funds to Homeowner for installation and/or coast[uction of impntvements on the Property in accordance with the CDBG regulations; aad WHEREAS, Homeowaer, TDHCA, and a Contractor (the "Contractor") approved by Homeowner and TDHCA, have executed, or plan to execute, a CDBG Disaster Recovery HAP or SPRP Program Construction Grant Agreement ("Construction Gtant .4gmeoseaP~ relating to the manner ofdisbtnsemeat of the grant proceeds ands the Grant Agrceoicet to or for the bece6t of Homeowner and for installation and/or consituction of improvements on the Property, subject to the terms contained therein; and roHCA Grant Stiel;bnilt Indwmity mid Hold Fla~mles Agwomt Page 1 of 4 rotten azaz ~toots~t3 WHEREAS, Indemnitor has been requested to consent to the planned demolition and replacement or rehabilitation of all or some improvements on the Property for which the TDHCA's fimrLs will be used; and WHEREAS, dle TDHCA declines to disburse the funds under the Grant Agreement or Construction Grant Agreement for said activity on the Property unless Indemnitor consents to the demolition and replacement or rehabilitation of improvements on the Property and indemnifies and holds harmless the TDHCA fiom any loss, reduction of value or damage which may resuh from said activity; NOW, THEREFOItF., in consideration of the premises, parties hereby agree as follows: 1. In consideration for the TDHCA's agreement to disburse funds, or to evaluate Homeowner's application for the receipt of funds, under the Grant Agreement and Constroction Grant Agreement to improve the Property used as wllateral under the Mortgage Lien, Indemaitor hereby releases, waives, discharges and rnveaants not to sne the TDHCA, its officers, agents, or employees f:om any and all liability, claims, demands, actions and causes of action whatsoever arising out of or related to any loss, reduction of value or damage to the Property in the demolition, rehabilitation and/or construction of improvements on the Propctty, whether caused by the aegGgence of the TDHCA, its agerrts, Homeowner, Contractor, or otherwise, white performing or finding such activity. 2. Indemnitor also has a significant financial interest in the Property to be demolished and rehabilitated. Accordingly, Indemnitor and TDHCA fiather agree as follows: A. Indemnitor is fully aware of the risks involved with the demolition and wnstrucrion of improvements on the Property, including but not limited to the depreciation of value in the collateral sect>ong Irtdenulitor's Mortgage Lien. and Indctmlitor hereby wnswts to said activity by Contractor and their employees and subcontractor;, inchrd'mg the funding of said activity by TDHCA, with fiill knowledge that said activity may damage and/or reduce the value of the collateral securing tndemnitor's Mortgage Lien B. Ind~rtitor furtber hereby agrees to indemnify and hold harmless the TDHCA, its officers, agents, or employees from any loss, liability, damage or ~, including wort vests and attorney fees, that they may incur dne to the TDHCA's disbursemem of grant funds under the Grant Agreement and Constntction Grant Agreement or the performance by Contractor or subcontractors under the Construction Grant Agreemem for the demolition and wnstnrction of .improvements on the Property, whether caused by negligence of the TDHCA, its agents, Homeowner, Contractor and their employees and sub-contractors >or otherwise. C. Indemnitor undeastands that the TDHCA does not maiMa;n any insurance policy wvering any circumstance arising from Indemnitor's wnsent to the demolition and wnslnrctian of the Property which serves as wllateral for the Mortgage Lien. TDHCA C>~t Srtck6u0l ledannity noel Hold Harmless Agr~t Page 2 of A TDHCA 4242 3. It is the parties express intent that this Agreement shall bind the parties hereto and their respective stirs and assigns. The parties hereby further agree that this Agreemect shall be constnred in accordance with the laws of the State of Texas. 4. In signing this Agreement, hrdemnitor acknowledges and represenu that Indemrritor has read the foregoing Agreement, understands it and signs it voluntarily as Indemnitor's own free act and deed. No oral represemations, statemems, or inducements, apart from those expressly set forth in this Agrcement, have been made. 5. The person signing this Agreemect on behalf of each party repmeseau that he or she has the full legal authority to execute this Agreement on behalf of the party for which he or she signs. IN WTfNF.SS WHEREOF, Indemnitor and TDHCA have executed this Agreement to be effective as of the date first above written. L51y of Port Arthur: Y a Name: S~t r c ~Ii,~Z a i h~~ns Title: ~ ~ T~R •. ~~ /' Dale: ~ I a-~I o y 7DHCA Gant S4ekbmll Ldmiaily and Hdd Era~mless Agaaoent Page 3 or4 7DIICA 4242 TDHCA: TEXAS DEPARTMENT' COMMUNITY AFFAIRS agency of the State of Texas T;y: Name: Tide: Date: OF HOUSING AND a public and official 77)HCA G'mrt Sdddwh Ind®nity aid Hold Nmmlca Agmemmt Page 4 of4 1DHCA 4242