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26 - Amendment to MOU between the City of Paris and the RAM FoundationItem 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 request to the City, and the City shall determine whether unexpended and undedicated funds are available to honor the request. If funds are available, the City shall promptly return the requested funds to RAM. RAM has the right to inquire as to the balance of any donated funds at any time, and the City will respond promptly to any such request. RAM has executed the amendment and has forwarded its written request for the return of a portion of the donated funds in the amount of $191,227.84. BUDGET: No impact. RECOMMENDATION: Move to approve a resolution approving the amendment of the December 15, 2021 MOU with the RAM Foundation to provide for the recoupment of undedicated funds for the purposes of RAM's own affordable housing initiatives and authorizing the City Manager to execute same. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, APPROVING AN AMENDMENT TO THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF PARIS AND THE RAM FOUNDATION DATED DECEMBER 15, 2021 RELATING TO DONATED 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 on or about December 15, 2021, the City of Paris, Texas ("City") and the RAM Foundation ("RAM"), collectively referred to as the "Parties," entered into a Memorandum of Understanding (the "MOU") to set forth the terms 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 donated the sum of $300,000.00 under the terms and conditions set forth therein to be used by City in the administration of the HOME programs for the provision of affordable -income housing; and WHEREAS, on December 13, 2021, the City Council of the City of Paris, Texas accepted RAM's donation by Resolution No. 2021-049; and WHEREAS, the MOU was a non-binding document setting out the anticipated roles and responsibilities of the Parties to effectuate the intent of the donation from RAM Foundation; and WHEREAS, the MOU provided that RAM could recoup unused portions of the donated funds on or after the third anniversary or the execution of the MOU; and WHEREAS, as of the date of execution of this Amendment, the City has not had cause to draw upon the donated funds; and WHEREAS, the parties have agreed to provide for RAM's recoupment of unused portions of the donated funds for the purposes of its own affordable housing initiatives: 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 approves the Amendment to Memorandum of Understanding Dated December 15, 2021 Between the City of Paris, Texas and the RAM Foundation attached hereto as Exhibit A and incorporated herein by reference 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 22nd day of January, 2024. Reginald B. Hughes, 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., 1n.c. (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 leo. {l M! gond 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 Resl)onsibilities of the Parties: 2.1 RAM a) RAM will donate the sum of $300,000.00 directly to City for use in the DOME 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 $500,000.001Z.A.Iv1/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 HANG. 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. 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 Nay'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 :infonnation 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 oven employees and staff. 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 WITLESS WHEREOF, the. Parties hereto have executed this MOU on the .date below their signatures. RAl\4 Foundation ..,. _. .. ..... Title:�.�'.W.. €� Date: / 2- - If z City of Paris, Texas . .... . . .... - . . . .......... ...... ...... By: Grayson Path Title: City Manager V) Date: 7-11T_U:,NDMENT TO MEMORANDUM OF UNDERSTANDING DATED DECEMBER a THE PARIS,r, RAM FOUNDATION ►, ► , 1 /- f ' u KA► ► x i ► ► • . ► y �► ► ► ► .`► ►i,► 1 "g, �rp o Imlits ► and " '� ► -� ► ` t ►► �, •► � �r ► ' it r1rrr r. ► ►, ► ►r ; w ► r ► ► ► x WIFE ► M ► ro7,71�� � ►, of affordable -income housing; and ' r donation Resolution ► 049and WHEREAS, the MOU was a non-binding document setting out ► ► roles and responsibilities of the Parties to effectuate the intent of the donation from RAM Foundation; and WHEREAS, the MOU provided that RAM could recoup unused portions of the donated funds on or ►a anniversary or the execution of the and WHEREAS,of date of execution of this Amendment,not .► cause to draw pon the donated r► and donated funds for the purposes of its own affordable housing initiatives: THEREFORE, to that end, the Parties hereby agree to wnend the MOU (this "Amen► ► o 2.1 ... Areserves the( ►recoup portions RAM a fundsI has neither expended nor dedicated to a particular future HOME or HANC project, such recouped ► 1+be used by RAM for other ► w, initiatives. In order to exercise this right,+shall request to the City, and the City shall determine whether unexpended and undedicated funds are available to honor the request. If funds are available, the City shall promptly return the requested funds to RAM. RAM has the right to inquire as to the balance of any donated funds at any time, and the City will respond ► "io ► 4 any such request. IN WITNESS WHEREOF. the Parties hereto have executed this Ainendrmnt on, the date below their signatures. RAM Foundation . .. . ...... . ..... Bv: Date: City of Paris, Texas BY: Gra\ son Path Title: CiLy Manager v Date: