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15 - Acceptance of a donation fromt the RAM & Cecil Foundations to be used with the HOME Programs (2)Item No. 15 TO: Mayor, Mayor Pro -Tem & City Council Grayson Path, City Manager FROM: Stephanie H. Harris, City Attorney SUBJECT: Acceptance of Donation from the RAM and Cecil Foundations for use in the HOME Programs DATE: December 13, 2021 BACKGROUND: As you will recall, the city has been participating in the Homeowner Reconstruction Assistance (HRA) program for several years, a state program for the following: 1. Reconstruction of owner -occupied housing on the same site; 2. New Construction of site -built housing on the same site to replace an existing owner occupied Manufactured Housing Unit (MHU); 3. Replacement and relocation of existing housing located in a floodplain to a new MHU or New Construction of housing on an alternative site; and 4. New Construction or a new MHU to replace a housing unit that has become uninhabitable as a result of disaster or condemnation by local government. (You may be more familiar with the term HOME program, which is an umbrella term for various housing assistance programs, including HRA and Homeowner Assistance for New Construction ((HANG)) which provides mortgage financing to low-income homebuyers for the following activities: acquisition and/or New Construction of site -built housing; acquisition and/or placement of a new Manufactured Housing Unit (MHU); and acquisition and/or Rehabilitation of housing to be occupied by the homebuyer. The state has not implemented the HANC program at this time.) The RAM Foundation and the Cecil Foundation, local charities, have undertaken initiatives to assist with low-income housing projects within the City of Paris. To that end, RAM has set aside the sum of $300,000.00 to donate to the city for use in the HOME programs. RAM has set aside an additional $200,000.00 to be administered by the United Way of Lamar County to provide assistance to qualifying homeowners for the payment of back taxes, title insurance, and attorneys' fees for those participating in the programs. In addition, the Cecil Foundation has agreed to donate the sum of $200,000.00 to the City for use in the programs, $100,000.00 of which will be set aside for the HANC program should the state ever implement it. STATUS OF ISSUE: The parties have agreed to the terms of the attached draft memoranda of understanding regarding the above-mentioned donations. This item is on the consent agenda because the RAM Foundation desires that its involvement remain unpublicized. The City will work with the Cecil Foundation to craft an appropriate press release regarding its donation. BUDGET: No impact. RECOMMENDATION: Move to approve a resolution accepting donations from the RAM Foundation and Cecil Foundation for use in the Home programs and authorizing the City Manager to execute memoranda of understanding regarding same. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, ACCEPTING MONETARY DONATIONS FROM THE RAM FOUNDATION AND THE CECIL FOUNDATION FOR USE IN THE HOME PROGRAMS; APPROVING MEMORANDA OF UNDERSTANDING REGARDING THE PROVISION AND USE OF SAID FUNDS AND AUTHORIZING THE CITY MANAGER TO EXECUTE SAME; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the RAM Foundation and the Cecil Foundation wish to make donations to the City to assist in alleviating the need for affordable housing within the corporate limits of the City through the HOME programs, including the HRA (Homeowner Reconstruction Assistance) and HANC (Homeowner Assistance for New Construction) Programs, programs in which the City participates; and WHEREAS, to that end, RAM will donate the sum of $300,000.00 to be used in the HOME programs under the terms and conditions set forth in the Memorandum of Understanding (MOU) attached hereto as Exhibit A and incorporated herein by reference; and WHEREAS, RAM will donate an additional $200,000.00, to be administered by the United Way of Lamar County, to be used to assist individuals in need in paying past due taxes, title insurance and attorneys' fees in association with said HOME programs; and WHEREAS, the Cecil Foundation is donating the sum of $200,000.00 to be used in said programs under the terms and conditions set forth in the Memorandum of Understanding (MOU) attached hereto as Exhibit B and incorporated herein; and WHEREAS, the attached MOUs are non-binding documents setting out the anticipated roles and responsibilities of the Parties to effectuate the intent of the donations from RAM and the Cecil Foundations; WHEREAS, the City wishes to accept the generous donations of the RAM and Cecil Foundations to be used in connection with its participation in the HOME programs; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS: Section 1. That the findings set out in the preamble to this resolution are hereby in all things approved. Section 2. That the City Council of the City of Paris, Texas accepts the donation of $300,000.00 from the RAM Foundation and the donation of $200,000.00 from the Cecil Foundation in accordance with the terms and conditions of the MOUS set forth in Exhibit A and Exhibit B hereto, and City Council further approves said MOUS and authorizes the City Manager to execute same. Section 3. That this resolution shall be effective from and after its date of passage. PASSED AND APPROVED on this 131h day of December, 2021. Paula Portugal, Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney MEMORANDUM OF UNDERSTANDING This MEMORANDUM OF UNDERSTANDING (MOU) is entered into by and between the RAM Foundation (RAM) and the City of Paris, Texas (City), each a "Party" and collectively referred to as the "Parties." WHEREAS, the Parties wish to enter into this MOU for the use of funds to be donated by RAM to the City to assist in alleviating the need for affordable housing within the corporate limits of City; and WHEREAS, to that end, RAM will donate the sum of $300,000.00 under the terms and conditions set forth herein to be used by City in the administration of the HOME programs for the provision of affordable -income housing; and WHEREAS, the Philip and Sally Cecil Foundation, Inc. (Cecil) is donating the sum of $200,000.00 to be used in said programs, under the terms and conditions set forth herein; and WHEREAS, on December 13, 2021, the City Council of the City of Paris, Texas accepted both donations by Resolution No. ; and WHEREAS, this MOU is a non-binding document setting out the anticipated roles and responsibilities of the Parties to effectuate the intent of the donations from RAM Foundation. The Parties agree as follows: 1. Term: This agreement shall be effective immediately upon execution of the Parties and will expire upon the expenditure of all identified funds, unless terminated before that in accordance with paragraph 8 herein below. 2. Roles and Responsibilities of the Parties: a) RAM will donate the sum of $300,000.00 directly to City for use in the HOME programs, including the HRA (Homeowner Reconstruction Assistance) and HANC (Homeowner Assistance for New Construction) programs. Participation in the HANC program is dependent upon the State of Texas' implementing said program during the term of this MOU. b) RAM reserves the right to review the use of the RAM funds on or about the three year anniversary of the execution of this MOU to determine how much of said funding has been expended. At that time, should less than half of the donated funds have been utilized, RAM may recoup some or all of the funding from City to be used in other housing projects minus any funds that have already been committed for any particular home or homes under the HOME programs. c) The donated funds will be used towards the City's match for funds received from the State under the HOME programs according to the State rules, regulations, and guidelines for said programs or as otherwise needed upon the agreement of the parties. d) RAM will donate an additional $200,000.00, to be administered by the United Way of Lamar County, and which may be the subject of a separate agreement between RAM and the United Way, to go towards paying past due taxes, title insurance, and attorneys' fees for homeowners receiving assistance under the program with the City who need assistance with said expenses. 2.2 City a) City will be the recipient of the combined $500,000.00 RAM/Cecil Funding for use in the HOME programs. Use in the HANC program is dependent on the State of Texas funding and setting up the administrative foundation for the program to go forward. Should the HANC program move forward on the State level, City will designate the sum of $100,000.00 of the Cecil funds to be used in HANC. b) City will use a third -party administrator to administer the City and RAM/Cecil funding and the participation in the HOME programs. c) City will continue its annual funding for the HOME programs and will utilize the City's funding before accessing the RAM or Cecil funding. d) City will continue to follow the rules, regulations, and guidelines of the HOME programs in administering both the funding and the participation in said programs. e) City will set up a new account for the RAM/Cecil funds for accounting purposes. Funds to be used in HOME and HANC will be drawn directly from said account. f) City will not be involved with the funds provided to the United Way for administration except as may be needed to match qualifying homeowners with United Way for purposes of the United Way's disbursement of the funds. 3. This MOU does not create any legally binding obligations on any Party. 4. This MOU shall be governed by the applicable statutes, laws, and regulation of the United States and the State of Texas. 5. Should City receive a request under the Texas Public Information Act for information related to this MOU, the Parties acknowledge that such information is more than likely public for the purposes of the Act. Should the request fall within an exception to disclosure under the Act, City may request a ruling from the Attorney General's office about whether the information is excepted from disclosure and notify RAM in writing of same. 6. Each Party acknowledges that is shall only be responsible for the actions of its own employees and staff. 7. If a court of competent jurisdiction determines any of this MOU's provisions or duties imposed are illegal, invalid, or unenforceable, the rest of the agreement shall be remain in effect as if the illegal, invalid, or unenforceable provision had not been included in the original document. 8. Either party may terminate this MOU for any reason by providing written notice to the other Party no later than thirty (30) days prior to the date of termination. In that event, City will return any unexpended funds to RAM minus any funds that have already been committed regarding any particular home or homes in the HOME or HANC programs. 9. Amendments to this MOU will only be effective upon the written mutual agreement of the undersigned parties. IN WITNESS WHEREOF, the Parties hereto have executed this MOU on the date below their signatures. City of Paris, Texas By: Grayson Path Title: City Manager Date: MEMORANDUM OF UNDERSTANDING This MEMORANDUM OF UNDERSTANDING (MOU) is entered into by and between the Philip and Sally Cecil Foundation, Inc. (Cecil) and the City of Paris, Texas (City), each a "Party" and collectively referred to as the "Parties." WHEREAS, the Parties wish to enter into this MOU for the use of funds to be donated by Cecil to the City to assist in alleviating the need for affordable and low-income housing within the corporate limits of City; and WHEREAS, to that end, Cecil will donate the sum of $200,000.00 under the terms and conditions set forth herein to be used by City in the administration of the HOME programs for the provision of affordable and low-income housing; and WHEREAS, also to that end, the RAM Foundation (RAM) has agreed to donate the sum of $300,000.00 to City; and WHEREAS, on December 13, 2021, the City Council of the City of Paris, Texas accepted both donations by Resolution No. ; and WHEREAS, this MOU is a non-binding document setting out the anticipated roles and responsibilities of the Parties to effectuate the intent of the donations from Cecil and RAM. The Parties agree as follows: 1. Term: This agreement shall be effective immediately upon execution of the Parties and will expire upon the expenditure of all identified funds, unless terminated before that in accordance with paragraph 8 herein below. 2. Roles and Responsibilities of the Parties: 2.1 Cecil a) Cecil will donate the sum of $200,000.00 directly to City for use in the HOME programs, including the HRA (Homeowner Reconstruction Assistance) and HANC (Homeowner Assistance for New Construction) programs. Participation in the HANC program is dependent upon the State of Texas' implementing said program during the term of this MOU. b) Cecil reserves the right to review the use of the Cecil funds on or about the three year anniversary of the execution of this MOU to determine how much of said funding has been expended. At that time, should less than half of the donated funds have been utilized, Cecil may recoup some or all of the funding from City to be used in other housing projects minus any funds that have already been committed for any particular home or homes under the HOME programs. 151In1,61,4 `I B r . c) The donated funds will be used towards the City's match for funds received from the State under the HOME programs according to the State rules, regulations, and guidelines for said programs or as otherwise needed upon the agreement of the parties. 2.2 City a) City will be the recipient of the combined $500,000.00 RAM/Cecil Funding for use in the HOME programs. Use in the HANC program is dependent on the State of Texas funding and setting up the administrative foundation for the program to go forward. Should the HANC program move forward on the State level, City will designate the sum of $100,000.00 of the Cecil Foundation funds to be used in HANC. b) City will use a third -party administrator to administer City's and the RAM/Cecil funds and the participation in the HOME programs. c) City will continue its annual funding for the HOME programs and will utilize the City's funding before accessing the RAM/Cecil funding. d) City will continue to follow the rules, regulations, and guidelines of the HOME programs in administering both the funding and the participation in said programs. e) City will set up a new account for the RAM/Cecil funds for accounting purposes. Funds to be used in HOME and HANC will be drawn directly from said account. 3. This MOU does not create any legally binding obligations on any Party. 4. This MOU shall be governed by the applicable statutes, laws, and regulation of the United States and the State of Texas. 5. Should City receive a request under the Texas Public Information Act for information related to this MOU, the Parties acknowledge that such information is more than likely public for the purposes of the Act. Should the request fall within an exception to disclosure under the Act, City may request a ruling from the Attorney General's office about whether the information is excepted from disclosure and notify RAM in writing of same. 6. Each Party acknowledges that is shall only be responsible for the actions of its own employees and staff. 7. If a court of competent jurisdiction determines any of this MOU's provisions or duties imposed are illegal, invalid, or unenforceable, the rest of the agreement shall be remain in effect as if the illegal, invalid, or unenforceable provision had not been included in the original document. 8. Either party may terminate this MOU for any reason by providing written notice to the other Party no later than thirty (30) days prior to the date of termination. In that event, City will return any unexpended funds to Cecil minus any funds that have already been committed regarding any particular home or homes in the HOME or HANC programs. 9. Amendments to this MOU will only be effective upon the written mutual agreement of the undersigned parties. IN WITNESS WHEREOF, the Parties hereto have executed this MOU on the date below their signatures. Philip and Sally Cecil Foundation, Inc. By_....._ Title: Date: City of Paris, Texas By: Grayson Path Title: City Manager Date: