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Home My WebLink AboutPR 18539: AMENDMENT NO. 4 TO THE NEIGHBORHOOD STABILIZATION PROGRAM (TDHCA) INTEROFFICE MEMORANDUM HOUSING AND NEIGHBORHOOD REVITALIZATION To: John A. Comeaux, P.E., Interim City Manager • From: Beverly A. Freeman, Acting Director of Housing & Neighborhood 4 Revitalization Date: September 8, 2014 Re: P.R. 18539 RECOMMENDATION: The Housing Division recommends the City Council adopt P.R. 18539, authorizing the City Manager to execute Amendment No. 4 to the Neighborhood Stabilization Program, (NSP) Contract Number 77090000154 between Texas Department of Housing and Community Affairs, (TDHCA) and the City of Port Arthur, to change Exhibit "B", the Budget which includes Category "C" Land Bank, Category "D" Demolition, Category "E2" New Construction (permanent housing), Category "F" the Administration, Exhibit "C" the Milestones and Thresholds and decrease the budgets in its entirety from $1,797,296.45 to $1,349,571.67. BACKGROUND: Pursuant to Resolution 09-457, the City of Port Arthur entered into a contract with Texas Department of Housing and Community Affairs, (TDHCA) to implement the Neighborhood Revitalization Program. BUDGETARY/FISCAL EFFECT: Texas NSP funds account numbers 129-1435-554.59-00 projects NSP001, NSP004, NSP005, NSP006 and NSP007 will be amended. STAFFING/EMPLOYEE EFFECT: Housing Administration staff will be responsible for administering the contract. SUMMARY: The Housing Division recommends the City Council adopt P.R. 18539, authorizing the City Manager to execute Amendment No. 4 to the Neighborhood Stabilization Program, (NSP) Contract Number 77090000154 between Texas Department of Housing and Community Affairs, (TDHCA) and the City of Port Arthur, to change Exhibit "B", the Budget which includes Category "C" Land Bank, Category "D" Demolition, Category "E2" New Construction (permanent housing), Category "F" the Administration, Exhibit "C" the Milestones and Thresholds and decrease the budgets in its entirety from $1,797,296.45 to $1,349,571.67. P. R. 18539 9/8/14 BAF/DF HOUSING RESOLUTION NUMBER A RESOLUTION AUTHORIZING EXECUTION OF AMENDMENT NO. 4 TO THE NEIGHBORHOOD STABILIZATION PROGRAM, (NSP) CONTRACT NUMBER 77090000154 BETWEEN TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, (TDHCA) AND THE CITY OF PORT ARTHUR, DECREASING THE PROGRAM CATEGORY BUDGETS FROM $1,797,296.45 TO $1,349,571.67. WHEREAS, pursuant to Resolution 09-457, the City of Port Arthur entered into a contract with Texas Department of Housing and Community Affairs, (TDHCA) to implement the Neighborhood Revitalization Program (NSP); and, WHEREAS, the City Council authorized an amendment No. 1 to the NSP contract Number 77090000154 on November 2, 2010 by Resolution No. 10-478; and, WHEREAS, the City Council authorized an amendment No. 2 to the NSP contract Number 77090000154 on March 8, 2011 by Resolution No. 11-078; and, WHEREAS, the City Council authorized an amendment No. 3 to the NSP contract Number 77090000154 on September 18, 2012 by Resolution No. 12-448; and, WHEREAS, the NSP Contract Budget, Exhibit "B", will be replaced in its entirety and shall decrease the funding from $1,797,296.45 to $1,349,571.67, as identified in Attachment "A"; and, WHEREAS, the Land Bank, Category "C", budget shall decrease to exclude the costs of lawn mowing and maintenance for 83 Land Bank properties identified in "Group 3" that have not yet been approved by TDHCA due to the need for title commitments; and, WHEREAS, the Demolition, Category "D", shall decrease which allowed for demolition of six (6) additional dilapidated structures on NSP properties that are included in "Group 3"; and, WHEREAS, the New Construction (permanent housing), Category "E2", shall decrease; and, WHEREAS, the NSP Administration Budget, Category "F", funds shall decrease; and, WHEREAS, the NSP Contract Milestones and Thresholds, Exhibit "C", shall be amended. 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 Amendment No. 4 to the Neighborhood Stabilization Program, (NSP), Contract Number 77090000154. Section 3. That the NSP Contract Budget, Exhibit "B", is replaced in its entirety and shall decrease the funding from $1,797,296.45 to $1,349,571.67, as identified in Attachment "A". Section 4. That the Land Bank, Category "C", budget shall decrease to exclude the costs of lawn mowing and maintenance for 83 Land Bank properties identified in "Group 3" that have not yet been approved by TDHCA due to the need for Title Commitments. Section 5. That the Demolition, Category "D", shall decrease which allowed for demolition of six (6) additional dilapidated structures on NSP properties that are included in the "Group 3". Section 6. That the NSP New Construction Budget, Category "E2", funds shall decrease. Section 7. That the NSP Administration Budget, Category "F", funds shall decrease. Section 8. That the NSP Contract Milestones and Thresholds, Exhibit "C", shall be amended. Section 9. 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., 2014 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: �1/(,_‘( C SHERRI BELLARD, CITY SECRETARY DEBORAH ECHOLS, FINANCE CO,RECTOR APPROVED FOR FORM: VALECIA TIZENO, ITY ATTORNEY APPROVED FOR ADMINISTRATION: JOHN A. COMEAUX, P.E., INTERIM CITY MANAGER , . BEVERLY A. EEMAN, ACTING DIRECTOR OF HOUSING & SIGHBORHOOD REVITALIZATION ATTACHMENT "A" ATTACHMENT "A" TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS TEXAS NEIGHBORHOOD STABILIZATION PROGRAM CONTRACT NO. 77090000154 City of Port Arthur AMENDMENT NO. 4("Fourth Amendment") Section 1. The TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas( "Department")and the City of Port Arthur,a political subdivision of the State of Texas("Contractor"),hereinafter collectively referred to as("Parties"),do hereby contract and agree to amend Contract No.77090000154("Contract"),executed by the Parties to be effective on September 1, 2009, as amended by Amendment No. 1 ("First Amendment")executed by Parties on or about August 24, 2010 and Amendment No. 2("Second Amendment")executed by Parties on or about June 1, 2011, and Amendment No. 3 ("Third Amendment")executed by Parties on or about October 17, 2012. Section 2. Under the authority described in Section 16 of the Contract and under 10 TAC Section 9.4,and for valuable consideration, the receipt and sufficiency which are hereby acknowledged,the Parties hereby agree to further amend the Contract in the manner provided herein below: 1. [Section 4, Department Obligations, Subsection C,"Limit of Liability", of the Contract is hereby amended to read as follows: "Notwithstanding any other provision of this Contract, the total of all payments and other obligations incurred by the Department under this Contract shall not exceed the sum of One Million Three Hundred Forty-Nine Thousand Five Hundred Seventy One and 67/100 Dollars($1,349,571.67)." 2. Exhibit B to the Contract, "Budget", is replaced in its entirety with the attached amended Exhibit B (consisting of one(1) page). 3. Exhibit C to the Contract, "Milestones and Thresholds", is replaced in its entirety with the attached Exhibit C consisting of I page. Section 3. This Fourth Amendment shall become effective on the last date of execution of this Fourth Amendment by both Parties. Section 4. Except as amended hereby,the terms of the Contract as amended by First, Second and Third Amendment identified in Section 1, shall remain in effect as therein set forth and will continue to govern except to the extent that said terms conflict with the terms of this Fourth Amendment,and the Contractor hereby acknowledges and reaffirms its liability there under. In the event of an inconsistency between this Fourth Amendment and the terms of the Contract as amended by First, Second and Third Amendment, this Fourth Amendment shall govern. Section 5. This Fourth Amendment may be executed in several counterparts, each of which shall be deemed to be an original copy, and all of which together shall constitute one agreement binding on all Parties hereto, notwithstanding that all the Parties shall not have signed the same counterpart. Section 6. If either of the Parties returns this copy by facsimile machine or electronic transmission, the signing party intends the copy of its authorized signature printed by the receiving machine or electronic transmission to be its original signature. Section 7. By signing this Fourth Amendment, the Parties hereto expressly understand and agree that this Fourth Amendment shall become a part of the Contract identified above in Section 1 above as amended as though it were set forth word for word therein. WITNESS OUR HANDS EFFECTIVE: CONTRACTOR: City of Port Arthur. a political subdivision of the State of Texas By: Name: John A. Comeaux, P.E. Title: Interim City Manager Date: THIS FOURTH AMENDMENT IS NOT EFFECTIVE UNLESS SIGNED BY THE EXECUTIVE DIRECTOR OF THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, OR HIS/HER AUTHORIZED DESIGNEE. APPROVED AND ACCEPTED ON BEHALF OF: DEPARTMENT: TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas By: ' z)8ee, _ Name: rctk.e, '.4&- Its: Duly authorized officer or representative Date: �Jd\ J1 EXHIBIT B BUDGET TEXAS NSP CONTRACT NO. 77090000154 City of Port Arthur AMENDMENT NO. 4 OTHER LINE CATEGORIES CONTRACT FUNDS FUNDS* TOTAL A Financing Mechanisms(use subcategories) Al Permanent Financing A2 Homebuyer Assistance B Purchase and Rehabilitation (use subcategories) Bl Acquisition/Disposition $ 0.00 $ 0.00 B2 Rehabilitation/Reconstruction $ 0.00 $ 0.00 C Land Bank $265,963.24 $265,963.24 Demolition $52,186.92 $52,186.92 E Redevelopment(use subcategories) El Acquisition/Disposition $12,112.30 $12,112.30 E2 New Construction(permanent housing) $926,997.96 $926,997.96 F Administration $92,311.25 $92,311.25 Totals $1,349,571.67 $ - $1,349,571.67 Exhibit"C" Amendment No.4 Contract No. 77090000154 CITY OF PORT ARTHUR MILESTONES AND THRESHOLDS All contract funds 100% Obligated September 3,2010 Contract 100% Expended August 17, 2013 All redevelopment properties in eligible use August 31, 2015 All land bank properties in eligible use August 31, 2019 • • a,•Vag s'; ��'°_, ' 1%J TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS ww w.ldbca.r[ate.t.in BOARD MEMBERS J.Paul Oxer,Chair Rick Perry Juan S.Munoz,PhD,Vice Chair GOVERNOR Leslie Bingham-Escareno Tom H.Gann J.Mark McWatters Robert D.Thomas August 20, 2014 Writer's direct phone tI 512-475-1762 Email:brooke.boston @tdhca.state.tx:us John A. Comeaux, P.E. Interim City Manager City of Port Arthur 444 4th St., Ste. 203 Port Arthur, Texas 77640 RE: TEXAS NEIGHBORHOOD STABILIZATION PROGRAM CITY OF PORT ARTHUR CONTRACT NO 77090000154 CONTRACT BUDGET AMENDMENT Dear Mr. Comeaux: The enclosed amendment to your NSPI contract adjusts your budget to accurately reflect the expenditures you previously reported for this contract, and updates your milestones. This updated budget leaves sufficient funds available to draw reimbursement for your reported, but still unpaid expenditures. For any unpaid soft costs expenses that were included in your expenditure report, I request that you submit draws for reimbursement of those expenses as soon as possible. Any remaining unpaid construction/hard cost will be reimbursed at the homebuyer closing table, less seller and homebuyer closing costs. Our records indicate as of August 20, 2014, you have drawn $629,693.67 of your project dollars and $34,286.46 in admin, leaving$627,566.75 remaining in project and $58,024.79 remaining in your admin budget to draw. Your contract end date is August 31, 2019 in order to complete homebuyer transactions for the fifty-three (53) properties that are currently being held in land bank. For your eight (8) redevelopment properties, you have closed homebuyers into 5 properties, and 3 remain to be closed by August 31, 2015 as indicated under your milestones attached as Exhibit"C". Here is a list of your remaining properties to be closed to eligible homebuyers: (See attached Exhibit"A") For new construction properties that have closed into an eligible homebuyer, funds to reimburse closing costs and similar expenses for the remaining homebuyers will be available under your NSPI-Program Income Reservation System Agreement. For those properties we will need an itemized listing of expenses in order to prepare a Project Commitment Contract. 221 East 11th Street P.O. Box 13941 Austin,Texas 78711-3941 (800) 525-0657 (512) 475-3800 p. Exhibit "A" Activity_No I HSHLD_LAST_NAME Address Line 1 NSP activity 154003 Priscilla Campbell 1601 9th St- corner lot construction Redevelopment 154004 City of Port Arthur 1742 9th St-construction Redevelopment 154006 Linda Franklin 1947 9th St- corner lot construction Redevelopment 154011 City of Port Arthur 2341 4th Street-demolition -gp 1 Land Bank 154012 City of Port Arthur 1543 9th Street-demolition -gp 1 Land Bank 154017 City of Port Arthur 1216 6th St-gp 1 Land Bank 154018 City of Port Arthur 1706-1710 10th Street-gp 1 Land Bank 154021 City of Port Arthur 2216 5th Street-gp 1 Land Bank 154024 City of Port Arthur 2601 5th Street-gp 1 Land Bank 154026 City of Port Arthur 2043 6th Street-gp 1 Land Bank 154027 City of Port Arthur 1400 9th Street-gp 1 Land Bank 154028 City of Port Arthur 1630 Rev Ransom Howard -gp 1 Land Bank 154029 City of Port Arthur 1425 Rev Ransom Howard St.-gp 1 Land Bank 154031 City of Port Arthur 330 Richmond Avenue-gp 1 Land Bank 154032 City of Port Arthur 2226 9th Street-gp 1 Land Bank 154033 City of Port Arthur 1037 6th Street-gp 1 Land Bank 154035 City of Port Arthur 1237 6th Street-gp 1 Land Bank 154036 ;City of Port Arthur .430 Charleston Avenue-gp 1 Land Bank 154037 City of Port Arthur 621 Charleston Avenue-gp 1 'Land Bank 154038 City of Port Arthur 627 W 10th Street-,gp 1 Land Bank 154040 City of Port Arthur 800 6th Street-gp 1 Land Bank 154041 City of Port Arthur 1319 6th Street-gp 1 Land Bank 154042 City of Port Arthur 1310 Rev Ransom Howard -gp 1 Land Bank 154043 City of Port Arthur 1011-1015 Rev Ransom Howard -gp 1 Land Bank 154044 City of Port Arthur 1021 Rev Ransom Howard -gp 1 Land Bank 154045 City of Port Arthur 1035 Rev Ransom Howard -gp 1 Land Bank 154046 City of Port Arthur 840 Rev Ransom Howard -gp 1 Land Bank 154047 City of Port Arthur 618 Savannah Avenue- gp 1 Land Bank 154048 City Of Port Arthur 633 W. 5th Street-gp 1 Land Bank 154049 City of Port Arthur 1047-1049 Rev Ransom Howard -gp 1 Land Bank 154050 City of Port Arthur 2818 9th Street- gp 2 Land Bank 154051 City of Port Arthur 1942 6th Street-gp 2 Land Bank 154052 City of Port Arthur 501 W 9th Street-gp 2 Land Bank 154053 City of Port Arthur 714 W 9th Street-gp 2 Land Bank 154055 City of Port Arthur 1018 Grannis Avenue-gp 2 Land Bank 154056 City of Port Arthur 1238 5th Street-gp 2 Land Bank 154057 City of Port Arthur 410 Grannis avenue-gp 2 Land Bank 154058 City of Port Arthur 1445 W 8th Street-gp 2 Land Bank 154059 City of Port Arthur 619 Mobile Avenue-gp 2 Land Bank 154060 City of Port Arthur 1300 Rev Ransom Howard -gp 2 Land Bank 154061 City of Port Arthur 712 W 5th Street- gp 2 Land Bank 154062 City of Port Arthur 732 W 5th Street-gp 2 Land Bank 154063 City of Port Arthur 728 W 5th Street-gp 2 Land Bank Exhibit "A" 154064 City of Port Arthur 720 W 5th Street-gp 2 Land Bank 154065 Cityof Port Arthur 605 W 5th Street -gp 2 Land Bank 154066 City of Port Arthur 600 Blk W. 5th Street-gp 2 Land Bank 154067 City of Port Arthur 500 Blk Harry Denbo Street-gp 2 Land Bank 154068 City of Port Arthur 419 W. 8th Street-gp 2 Land Bank 154069 City of Port Arthur 930 Abe Lincoln Avenue -gp 2 Land Bank 154070 City of Port Arthur 632 W. 6th Street -gp 2 Land Bank 154071 City of Port Arthur 519 Mobile Avenue-gp 2 Land Bank 412 Grannis Avenue- Lot 12-16 Blk 6- 154072 City of Port Arthur gp 2 Land Bank 154073 City of Port Arthur 517 W. 6th Street-gp 2 Land Bank 154074 City of Port Arthur 523 W. 6th Street-gp 2 Land Bank 154075 City of Port Arthur 404 Grannis Avenue * -gp 2 Land Bank 154076 City of Port Arthur 500 Blk (520) Grannis Av-gp 2 Land Bank