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: