26 - Amendment to MOU between the City of Paris and the RAM Foundation

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Item No. 26 TO: Mayor, Mayor Pro Tem, and City Council Grayson Path, City Manager FROM: Stephanie H. Harris, City Attorney SUBJECT: Amendment to Memorandum of Understanding between the City of Paris and the RAM Foundation DATE: January 22, 2024 BACKGROUND: As you may recall, in December of 2021, the RAM Foundation (RAM) made a sizeable donation of $300,000.00 to the city for the use in the city's HOME program to further RAM'S program of making affordable housing available to the city's residents. In conjunction with that donation, the parties entered into a memorandum of understanding (MOU) which provided that the city would continue its annual funding for the program and would exhaust those budgeted funds prior to accessing the donated funds. The MOU also provided that after the expiration of three years, RAM would be able to review the use of the donated funds, and, if less than half of the funds had been used, recoup all of the unused funds. STATUS OF ISSUE: Since the city's acceptance of the donation and the execution of the MOU, the city has not had occasion to tap into the donated funds. Given that none of those funds have been used in the last 2 years, RAM has requested a return of a portion of donation to fund its own affordable housing project. The plats for that project, which is for the construction of a single family home for an identified individual, are on this same agenda for approval. To facilitate this and future projects, the parties have agreed to amend the MOU as follows: Para gra . h 2,2.1(b) is hereby amended to read as follows: 2.1 (b) RAM reserves the right to recoup portions of the RAM funds which the City has neither expended nor dedicated to a particular future HOME or HANC project, such recouped funds to be used by RAM for other affordable housing initiatives. In order to exercise this right, RAM shall make written