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HomeMy WebLinkAboutPR 17340: TENDER LOVING CARE CENTER FOR CHILDREN - HOUSING INTEROFFICE MEMORANDUM HOUSING & NEIGHBORHOOD REVITALIZATION DEPARTMENT To: Floyd 7. Johnson, City Manager From: Beverly A. Freeman, Housing Programs Administrator Date: Monday, October 15, 2012 Re: P.R. 17340 RECOMMENDATION: I recommend the City Council adopt Proposed Resolution 17340, authorizing the execution of Amendment No. 1 to the contract between the City of Port Arthur and Tender Loving Care Center for Children, d /b /a Legacy Community Development Corporation, (Legacy CDC) authorizing the allocation of additional funding in the amount of $265,000 and extending the contract for a six (6) month period from June 20, 2013 to December 20, 2013. BACKGROUND: The City of Port Arthur has obligated itself to fulfill the requirements of the Federal HOME Investment Partnerships Program (HOME) and is required to set aside and allocate a minimum of 15% of its annual HOME Investment Partnerships Program (HOME) funds for eligible Community Housing Development Organization (CHDO) activities in accordance with 24 Code of Federal Regulations Part 92.300. Tender Loving Care Center for Children, d /b /a Legacy CDC is a Texas non - profit corporation and a Certified Community Housing Development Organization (CHDO) that is committed to assisting the City in carrying out its mission of providing safe, decent, sanitary and affordable housing for low and moderate - income persons /families. Legacy CDC will purchase, rehabilitate and sell three (3) additional homes to low and moderate income persons /families within the City of Port Arthur. Down payment assistance of $10,500 each will be provided to assist the buyers with principal reduction and closing costs associated with the purchase of a home. BUDGETARY /FISCAL EFFECT: Funding will be provided by the Federal HOME Program funds, account number 108 -2141- 626.59 -00, Project HE1101. STAFFING /EMPLOYEE EFFECT: Housing & Neighborhood Revitalization Department staff will be responsible for administering the contract with Legacy CDC. SUMMARY: I recommend the City Council adopt Proposed Resolution 17340, authorizing the execution of Amendment No. 1 to the contract between the City of Port Arthur and Tender Loving Care Center for Children, d /b /a Legacy Community Development Corporation, (Legacy CDC) authorizing the allocation of additional funding in the amount of $265,000 and extending the contract for a six (6) month period from June 20, 2013 to December 20, 2013. P. R. 17340 10/15/12 BAF /Housing RESOLUTION NUMBER A RESOLUTION AUTHORIZING THE EXECUTION OF AMENDMENT NO. 1 TO THE CONTRACT BETWEEN THE CITY OF PORT ARTHUR AND TENDER LOVING CARE CENTER FOR CHILDREN, D /B /A LEGACY COMMUNITY DEVELOPMENT CORPORATION FOR THE ALLOCATION OF ADDITIONAL FUNDING IN THE AMOUNT OF $265,000 TO PURCHASE, REHABILITATE AND SELL THREE (3) ADDITIONAL HOMES TO LOW AND MODERATE INCOME PERSONS /FAMILIES, OPERATING EXPENSES AND EXTENDING THE CONTRACT EXPIRATION DATE FOR A SIX (6) MONTH PERIOD FROM JUNE 20, 2013 TO DECEMBER 20, 2013. WHEREAS, Tender Loving Care Center for Children d /b /a Legacy Community Development Corporation, Port Arthur, Texas was chartered as a Texas non - profit corporation to provide safe, decent, sanitary and affordable housing to the low and moderate income persons /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 12- 160, (authorizing submission of a 2012 Consolidated Plan) the City has obligated itself to provide homeownership and direct financial assistance to low and moderate income persons /families; and, WHEREAS, pursuant to Resolution 12 -294, the City of Port Arthur entered into a contract with Tender Loving Care Center for Children, d /b /a Legacy CDC, for new construction of two (2) homes; and, WHEREAS, under the terms of the grant, the City is to review the requests for the disbursement of funds to the Tender Loving Care Center for Children d /b /a Legacy Community Development Corporation, CHDO, in the amount of $265,000 to purchase, rehabilitate and sell three (3) additional homes to low and moderate income homebuyers, of which $15,000 will be utilized to assist with operating expenses; and, WHEREAS, it is deemed viable to amend the contract as to allocate additional funding to Legacy CDC in the amount of $265,000 to purchase, rehabilitate and sell three (3) additional homes to low and moderate income homebuyers, assist with operating expenses and extending the expiration date for a six (6) month period from June 20, 2013 to December 20, 2013. 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 Manager is authorized to execute Amendment No. 1 to the contract with Tender Loving Care Center for Children d /b /a Legacy Community Development Corporation to allocate additional funding in the amount of $265,000 to purchase, rehabilitate and sell three (3) additional homes to low to moderate income persons /families, operating expenses and extending the contract expiration date for a six (6) month period from June 20, 2013 December 20, 2013, in substantially the same form as attached hereto in the Amendment No. 1 attached marked as Exhibit "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., 2012 at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: MAYOR COUNCILMEMBERS NOES: MAYOR ATTEST: APPROVED FOR AVAILABILITY OF FUNDS: 4 4 4 Al‘h , DIRECTOR OF FINANCE CITY SECRETARY APPROVED FOR FORM: t CITY ATTOR E % G APPROVED FOR ADMINISTRATION: CITY MANAGER • 1 A. irJ,Ita+ BEVERLY A. FR AN, HOUSING PROGRAMS ADMINISTRATOR EXHIBIT "A" AMENDMENT NO. 1 TO THE CONTRACT BETWEEN THE CITY OF PORT ARTHUR AND TENDER LOVING CARE CENTER FOR CHILDREN, D /B /A/ LEGACY COMMUNITY DEVELOPMENT CORPORATION Section 2 — Contract Period of the Agreement is amended as follows: This contract and agreement shall be extended from June 20, 2013 to December 20, 2013. EXHIBIT A — Performance Statement of the Agreement is amended as follows: Tender Loving Care Center for Children d /b /a Legacy Community Development Corporation performance is extended to add: Purchase, Rehabilitate and Sell of three (3) additional homes for low and moderate income p ersons / families. EXHIBIT B — BUDGET of the Agreement is amended to include additional funding as follows: Purchase, Rehabilitate and Sell three (3) additional homes $250,000 CHDO Operating $ 15,000 TOTAL Amount of Additional Funds shall not exceed $265,000 SIGNED AND AGREED TO on the day of , 2012. CITY OF PORT ARTHUR BY: FLOYD T. JOHNSON, CITY MANAGER SIGNED AND AGREED TO on the day of , 2012. TENDER LOVING CARE CENTER FOR CHILDREN, D /B /A LEGACY CDC BY: VIVIAN L. BALLOU, EXECUTIVE DIRECTOR