HomeMy WebLinkAboutPR 15573: TDHCA INDEMNITY & HOLD HARMLESS AGREEMENTINTEROFFICE MEMORANDUM
HOUSING ASSISTANCE PROGRAMS
To: Steve Fitzgibbons, City Manager ~y~Z
From: Mike Mason, Neighborhood & Community Deve%pment Manager
Date: October 13, 2009
Re: P.R. #IS573
RECOMMENDATION:
I recommend the City Council adopt Proposed Resolution 15573, authorizing the execution
of a Indemnity and Hold Harmless Agreement ("Agreement's 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 is the following TDHCA "Agreement":
Indemnity and Hold Harmless Agreement executed by Sherman &Elouise Trice, owners and
holder of that certain superior promissory note in the original principal amount of $6,500
which is secured by a superior Deed of Trust dated September 21, 2006 from Sherman &
Elouise Trice to Stephen Fitrgibbons, Trustee to the City of Port Arthur, recorded in Lien
Document Number 2007001731 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 15573 authorizing the execution
of the Indemnity and Hold Harmless Agreement between the City of Port Arthur and
Texas Department of Housing and Community Affairs (TDHCA) for lien holder Sherman &
Elouise Trice.
P. R. 15573
10/13/09 BAF/HOUSING
RESOLUTION NUMBER
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN
INDEMNITY AND HOLD HARMLESS AGREEMENT ("AGREEMENT'
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 RITA. 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 that certain promissory note
executed by the homeowner and secured by a Deed of Trust from the homeowner to the
Trustee for the City, Stephen Fitrgibbons; and,
WHEREAS, Sherman &Elouise Trice, is the owner and holder of that certain
superior promissory note in the original principal amount of $6,500 which is secured by a
superior Deed of Trust dated September 21, 2006 from Sherman &Elouise Trice to
Stephen Fitzgibbons, Trustee to the City of Port Arthur, recorded in Lien Document Number
2007001731 official of Public Records of Jefferson County, Texas as denoted in the
Indemnity and Hold Harmless Agreement, attached hereto as Attachment"A"; and,
WHEREAS, the "Agreement" is deemed essential for the completion of
activities undertaken by TDHCA and must principally benefit low and moderate income
persons which have been determined by the parties and is established under the guidelines
of the Housing and Community Development Act of 1974, as amended; therefore,
BE IT 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 herein authorized to execute the
"Agreement" with TDHCA as outlined herein and further described in the attached
Indemnity and Hold Harmless Agreement, attached hereto as Attachment "A".
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
COUNCILMEMBERS
MAYOR
ATTEST:
CITY SECRETARY
APPROVED FOR FORM:
l/,vL
CITY ATTORN L ~ ~``
APPROVED FOR ADMINISTRATION:
_~~ ;9~1/ 9///nom-_.
CITY MANAGER
~~ ~~~~~
MIKE MASON,
NEIGHBORHOOD & COMMUNITY DEVELOPMENT MANAGER
ATTACHMENT "A"
TEI{AS DEPARTMENT OF HOUSING.IIND COMMUNITY AFFAIRS
CFDA 14.228 Community Development Block Grant Program ("CDBG")
Hurricanes Katrftia, Rita and i'r'llma in the GaIP of Mezico 2005
Federally Declared Disaster Funding. Under
Department of Defense ApproprlaHons 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-~18-0002
Federal Award Year (Year of Award from HUD to TDHCA): 2006
'TDHCA Award Year: 2007
(u
THIS AGREEMENT IS Iv1 ADE BS" AND BETWEEN City.Of Port Arthur,
a [limited partnership/corporation/individual etc.J (hereinafter called
"Indenntitor'") mid TEl'AS 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.
V6'ITNESSETH:
WHEREAS, Indemnitor is the owner and holder of that certain superior promissory note
executed by Sherman Trice and wife, Elouise Trice in the original principal amount of
S6„500.00. which is secured by a superior Deed of Trust dated September 21, 2006 from
Sherman Trice and wife, Elouise Trice to Stephen Fitzgibbons, Trustee, recorded in Lien
llocument Number 2007-001731 of the Official 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
VI HEREAS, Homeow~ter and TDHCA have executed, or plan to execute, a CDBG
Disaster Recovery HAP or SPRP Program Grant Agreement ("Grant Agreement's far TDHCA
to grant funds to Homeowner for installation and%or construction of improvements on the
Property in accordance with the CDBG regulations; and
~tiHEREAS, Homeo~troer, TDHCA, and a contractor (the "Contractor") approved by
Huureowner mid TDHCA_ have eseuuled, or plan to exeude, a CDBG Disaster Rewvery HAP
or SPRP Program Construction Crrant Agreement ("Constnuction Grant Agreement") relating to
the malwer of disbursement of the grant proceeds under the Gratrt Agreement to or for the benefit of
Homeuwner and for installation andlor construction of nnprovements on the Property, subject to
the terms contained therein; and
TDHCA Gtant Indemnity and Hold Hatmless Agreement Page l of 4
File ti 1219-2222793/ 2024
«`HEREAS. Indenmitor has been requested to consent to the plamted demolition and
replaczlnenl ur rehaliililatiuu of all or some improvements on the Property for which ltle
TDHCA's fimds will be used: and
WHEREAS. the TDHCA declines to disbulse the funds under the Grant Ageement or
Constnlction Grant Ageement for said activity on the Property unless Indemtitor 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:
NOSY, THEREFORE, in consideration of the premises, parties hereby Agee as follows:
L hi cmisideration for the TDHGY's Ageement to disburse hinds, or to evaluate
Homeowner's application fur the receipt. of fimds. tinder the Grant Ageement and Construction
Grant Agreement to improve the Property used as collateral under the Mortgage Lien.
htdemnitor hereby releases, naives, discharges and covenants not to sue the TDHCA. its
ot~ticers_ agents. or employees from env and all liability, claims, demands, actions and causes of
:u-tion whatsozver arising out of or related to any loss, reduction of value or damage to the
Property in the demolition. rehabilitation and`or constnlction of improvements on the Property,
whether caused by the negligence. oT the TDHCA. its agents, Homeowner, Contractor, or
otherwise, whit: pcrfonuing or fielding such activit}'.
2. Indenmitor also leas a significant financial interest in the Property to be demolished and
rehabilitated. Accordingly. htdernnitor and TDHCA fiuther agree as follows:
A. Btdeumitor is filth- a~rare of the risks invoked tt'itb the demolition and constnletion of
improvements on the Property, including but not limited to the depreciation of value in
thz collateral securing Indenmitor"s Mortgage Lien. vtd Indenmitor hereby consents to
said activity by Contractor and their employees and Sub-COtltl'aCtof S. 1tlCltldlllg the
fimdiug of said~aetivity b} TDHCA, with fitll knowledge that said activit}' may damage
and; nr reduce the value of the collateral securing Indeuulitor s &tortgage Linn.
B. Indenmitor fiather hereby agees to mdenuufy and hold harmless the TDHCA, its
officers, agents. or employees from any loss, liability, damage or costs, inchlding coup
costs and attorney fees, that that' may incur due to claims made by hldemnitor, its
affiliates. subsidiaries. parent compemies, assignees and'or any third parties who are party
to a contractual service agreement with hldenmiior, relating to the TDHCA's
disbursement of gent fimds under the Grant Agreement and Construction Grant
Agecnlenl or the perlinnt:tnce by Contractor ur subconlraclul5 under the Cunslructiot]
Grant Agreement for the demolition and constntction of improvements on the Property,
whether CallSed UV 11eg11get1Ce of the TDHC.1, its agents, Homeowner, Contractor and
their employees and sub-contractors. or otherwise.
TDHCA Grant Indenniln~ and Hold Harmless AZree[netm Paee 2 of 4
File = 1 ? j 9_„'''"o3I '_o'_~t
C. Indzmnitor understands that the TDHCA does not mavrtain any insurance policy
covering any circumstance arising from Indemnitor's consent to the demolition and
uonstruclion of the Property which szrves as collateral 1'or the Mortgage Lien.
3. It is the parties exprzss intent that this Agreement shall bind the patties hereto and their
respective suzcessors and assigns. The parties hzrzby- fiulhzr agree that this Agreement shall be
constnred in accordanoe with the laws of the State of Texas.
4. -t signing this Agreement, Indenmitor acknowledges and represents that indernnitor has
rzad the foregoing Agrzamzttt, understands it and signs it voluntarily as Indemnitor's own free
act and dezd. No oral rapreszntations. statzmznts, or inducements, apart from thosz expressly set
forth in this Agrzzmetit, havz been madz.
?. The parson sigting this Agreement on behalf of each party represents that he or she has
thz full legal authority to exzcutz this Agreement on bzhalf of thz party for which hz or she
SIgi1S.
IN ~%ITNESS ~~'HERF,OF. htdanutitor and TDHCA have execirted this Agreement to bz
zttzctiva as of the datz first above writtzn.
CITY OF PORT ARTHUR:
a
Bv:
Name:
Titlz:
Data:
TllH~:4 Grant Indenurin~ and Hold Harmless Agreernant Page ? of 4
File' 1'19-22,,,93; ^b29
TDHCA:
TELLS DEP_~RTNIENT
CONINIUNTTY AFFAIRS
agency of the State ofTetas
Bv:
Name:
Title:
Date:
OF HOUSING AND
a public and official
TDHiIA vimV Indemtury and Hold Hannlz_s:~grzzmeatt Page d of J
Filz = 1219.22'_2793 (^_o2a
EXHIBIT "A"
LOT SEVEN (7 ), BLOCK FIVE HUNDRED FIFTY ONE (551 ), OF MODEL
ADDITION THE CITY OF PORT ARTHUR, IN JEFFERSON COUNTY, TEXAS,
AS THE SAME APPEARS UPON THE MAP AND PLAT THEREOF, ON FILE
AND OF RECORD IN THE OFFICE OF THE COUNTY CLERK OF JEFFERSON
COUNTY, TEXAS AT BEAUMONT.
115.2nd lien deed of trust 14