26-Deliberate and act on a Resolution authorizing an amendment of an agreement between the City of Paris and Paris Living to administer the Homebuyer Assistance Program
CITY COUNCIL AGENDA ITEM BRIEFING SHEET
Submittal Date: Originating Department: Presented By: Agenda Item No.:
09/10/10
Council Date: City Council Kevin Carruth 26.
09/13/10
RECOMMENDED MOTION:
Move to approve a resolution authorizing the amendment extending an agreement with Paris Living to
administer the Homebuyer Assistance Program and authorizing the City Manager to negotiate and
execute all necessary documents.
POLICY ISSUES):
Contract; Fiscal management
BACKGROUND:
In April 2009 the City and Paris Living executed an agreement for Paris Living to provide consulting
and administrative services for the City's Homebuyer Assistance Program because the City lacks in-
house capacity to administer such a program. The City received another grant ($312,000) from the
Texas Department of Housing and Community Affairs for a Homebuyer Assistance Program to benefit
15 homebuyers. Staff recommends extending the agreement with Paris Living for 12 months and have it
administer the new grant.
BOARD/COMMISSION RECOMMENDATION:
EXHIBITS:
Resolution with agreement
ACTION: BUDGET INFO:
❑ Financial Report ❑ Minute Order Expense $
❑ Department Report ® Resolution Budgeted Amt. $
❑ Presentation ❑ Ordinance YTD Actual $
❑ Public Hearing ❑ Other Acct. Name
Acct. Number
FISCAL NOTES:
The administrative fee and project related soft costs charged by Paris Living are all paid for, and will not
exceed the amount allowed, by the grant
REVIEWED AND APPROVED BY:
® Administration ® City Clerk ❑ Community Development ❑ EMS/IT ❑ Finance ❑ Fire
❑ Municipal Court ® Legal ❑ Library ❑ Police ❑ Eng./Public Works ❑ Utilities
City of Paris 191 Revised 2/04/08
DRAFT
S:\citydata\Attorney\RESWORK\CURRENT\Paris Living HomebuyerAsst Grant Amend Contract Res 2010.docx
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS,
APPROVING AND AUTHORIZING THE AMENDMENT OF AN AGREEMENT
BETWEEN THE CITY OF PARIS AND PARIS LIVING, A COMMUNITY
DEVELOPMENT CORPORATION, TO ADMINISTER THE HOMEBUYER
ASSISTANCE PROGRAM FUNDED BY THE TEXAS DEPARTMENT OF
HOUSING AND COMMUNITY AFFAIRS FOR THE HOME PROGRAM,
CONTRACT NO. 1001224; AUTHORIZING THE CITY MANAGER TO
EXECUTE THE AFORESAID AGREEMENT AND ALL OTHER DOCUMENTS
NECESSARY TO THE FORMAL APPROVAL OF SAID GRANT; MAKING
OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND
DECLARING AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Paris did heretofore, on the 24th day of
May, 2010, in Resolution No. 2010-059, authorize an application to be made to the Texas
Department of Housing and Community Affairs for the 2009 Homebuyer Assistance
Program Grant, HOME/American Dream Downpayment Initiative (HOME/ADDI) award;
and,
WHEREAS, the Texas Department of Housing and Community Affairs has issued its
HOME Program Homebuyer Assistance Contract with the City of Paris in connection with a
HOME Investment Partnerships Program award entitled "Texas Department of Housing
and Community Affairs Home Program HOME Contract No. 1001224" for the period
beginning August 3, 2010, and ending August 2, 2012, in the total amount of $312,000.00;
and,
WHEREAS, Paris Living, a community development corporation, entered into a
consulting and administrative services agreement with the City of Paris, dated April 30,
2009, to administer the City's Homebuyer Assistance Program, Texas Department of
Housing and Community Affairs HOME Contract No. 10000930 (the "Agreement"); and,
WHEREAS, Paris Living and the City of Paris mutually desire to amend the
Agreement to extend the term twelve (12) months and to add the Texas Department of
Housing and Community Affairs HOME Contract No. 1001224 to the consulting and
administrative services contract; and,
WHEREAS, the City Council of the City of Paris, Texas hereby finds that it is in the
best interest of the City of Paris and its citizens to enter into a First Amended Agreement
with Paris Living and for Paris Living to administer the City's Homebuyer Assistance
Program, Texas Department of Housing and Community Affairs HOME Contract Nos.
10000930 and 1001224, in accordance with the terms and conditions therein.
- 1 192
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 Agreement between the City of Paris and Paris Living to
administer the City's Homebuyer Assistant Program in connection with a HOME
Investment Partnerships Program be and hereby is amended to extend the term of the
Agreement an additional twelve (12) months and in accordance with First Amended
Agreement to administer the City's Homebuyer Assistant Program entitled "Texas
Department of Housing and Community Affairs Home Program HOME Contract No.
1001224" for funds to assist a minimum of fourteen (14) low- and moderate-income
families through the provision of down payment and closing cost assistance in the City of
Paris be, and is hereby approved.
Section 3. That the City Manager of the City of Paris, be, and he is hereby,
authorized and directed to execute, on behalf of the City of Paris, the First Amended
Agreement with Paris Living under the terms and conditions and in the form shown in
Exhibit A, and Exhibit B attached hereto, as well as any and all other documents incident to
implementation of the program.
Section 4. That this resolution shall be effective from and after its date of
passage.
PASSED AND APPROVED this 13 day of September, 2010.
Will Biard, Mayor
ATTEST:
Janice Ellis, City Clerk
ATTEST:
W. Kent McIlyar, City Attorney
193
2800 Lamar Avenue, P.0. Box 26 ■ Paris, Texas 75460
Parisi g 903.739.9947 ' tax 903.739.2104 • parislivins@sbudlobal.net
April 30, 2009
Mr. Jesse James Freelen
Mayor
City of Paris
P.O. Box 9037
" _ Paris, Texas 75461
- Dear Mayor Freelen:
Paris Living-A Community Development Corporation ("Paris Living" or the "Corporation") is
pleased to be selected by the City of Paris (the "City") to administer the City's Homebuyer
Assistance Program funded by the Texas Departmentlcost Community Affairs
As outlined
("TDHCA') in the amount of $208,000, including administrative
<r in our proposal, Paris Living will a~dmini~rtoh~above
costs, which is the admanistr thveCfee
in exchange for a fee equal to 4 io oft project
- allowed by TDHCA, plus other project related soft costs allowable by TDHCA through the
HOME Program. For your convenience, I have listed some terms and conditions below and, if
you concur, this letter will serve as our official Agreement (the "Agreement").
1. The City hereby engages Paris Living to provide, in general, the following: of the City andmi
a perform the overall administration of the Program at
bmitted in the direction the grant application;
accordance with the approved program design as s
b) if requested, develop and implement a marketing fort for request th thProgram
participate drlenders,
( writing news releases, meeting with Realtors at t creating public service announcements for local Radio and Television;
c) develop and disseminate information packets to, and train, participating lenders and
(
Realtors;
icipating lender to process each borrower through to closing:
(d) work with each part
(e) prepare or have prepared all forms for set-up and draw of funds as well as closeout
forms on behalf of the City;
( review and make recommendations designed to improve the Program;
E9HIBITA
194
assist City during TDHCA monitoring visits arr .pare any required response to
O
any mu-storing findings;
ch propery funded tluough the Program for review
maintained a file on ea
(h) cause to be m
byTDHCA and/or IUD,i) prepare any and all invoices from Paris Living or its
closing as nltaes annter & Hunter
Consultants, Inc. ("H&HCI") to each property
(j) provide any and all other services as may be required by the City and that Paris Living
p
has the ability and expertise to perform;
Specifically, the Scope of Work to be performed by Paris Living under this agreement
is as follows (Please note that some of tunder edlIUbelow will be D regulations) charged to each individual
loan as project related soft costs as is allowed
PROJECT MANAGEMENT
Develop a record keeping system including the establishment of a filing system;
Maintain the project and administrative files;
Provide general advice and technical assistance to the City on implementation of the
Project and regulatory matters;
Furnish the City with the necessary forms and procedures required for implementation
of the Project;
Prepare and submit to TDHCA any and all documentation necessary for amending the
HOME contract;
Prepare and submit Set-Up, Completion and other required reports;
Serve as liaison for tine City during any monitoring visit by TDHCA or HUD;
Develop a Project affirmative marketing plan for the City;
Conduct all necessary Lender/Realtor training sessions;
Review all files received from lenders to ensure that the applicant and house qualifies
for the program;
Assist the City in acquire g the services of independent inspectors and to ensure that a
houses in the program pass required inspections;
Assist the City with acquisition of homebuyer training;
Assist the City with the completion of second lien documents;
Maintain all project files in a reasonable and logical order;
Manage dispute resolution as required.
FITNANCLAIL MANAGEMENT
Assist the City in proving its ability to manage the grant funds to the state's audit
division;
Assist the City, if requested, in establishing and/or maintaining a bank account (direct
deposit account) and/or separate local bank account. journals and ledgers;
• Assist the City in responding to single audit report requests from TDHCA;
• Prepare all fund reimbursements on behalf of the City;
Review any invoices received for payment and file back-up documentation;
Provide general advice and technical assistance to City Council, staff and consultants
On implementation of the Project and regulatory matters.
195
ENVIRONM r
Prepare the administrative environmental documents for City signature;
opm
Prepare the Homebuyer Assistance Environme reformation to prospective
Ensure that all lenders disseminate lead base paint
borrowers;
Ensure that all lead base paint certification and acknowledgments are signed and file
in each individual project file;
Ensure that an environmental file is created and maintained for the Program.
FAIR HOUSING/EQUAL OPPORTUNITY
Ensure that all marketing materials prepared include affinnative marketing/equal
opportunity statements and logos;
tation of all program beneficiaries by ethnicity and gender.
Maintain documen
CLIENT INTAKE QUALIFICATION AND INTAKE
Meet with each prospective borrower and help them fill out the application for
assistance; for the assistance to
Review each applicants financial information to ensure they qualify
be provided;
Assist each applicant in completing all the forms required for assistance
Collect applicant information regarding income and employment to be included in the
project files;
Clarify and resolve any issues related to the application intake pre feed a licants;
Prepare notifications to sellers of properties to be purchased by qua pp
• Prepare approval letters to the applicants for City staff signature;
Perform any other necessary activities to ensure an effective application process.
AUDIT/CLOSE-OUT PROCEDURES
Prepare the final completion report and Certification of Completion for filing with
TDHCA;
Assist the Corporation in resolving any monitoring and audit findings;
Assist the Corporation in resolving any third party claims;
• Provide City Auditor with HOME audit guidelines. will
erate
and data
coop 3 In connection with Pans Living's ~rnished to Paris Living alll if,fthe
with Paris Living; furnish or cause to
rated ly requests; and
concerning the City and the City's project(s) whi h Paris aLl' nd a' reasonab
provide Paris Living with reasonable access to its The City acknowledges and understands that while that this service does not, from the perspective
administering the Program on the City's behalf,
of TDHCA, relieve the City from any ultimate responsibility for the appropriate administration
of the Program. t, the C
lity 4 in consideration of services provided pursuat in an amountiequal to 4o 0 of auto pay
or cause to be paid to Paris Living an administrative amo project funds upended. In addition, Pdow ~'t~avmentland ca, ~~osttawa ddtotbe paid atreach
payment
not to exceed 10% of each successful
loan closin, to defray costs associated with provision of application intake, document
196
preparation. orental, homebuver counseling, home i °ctions, or other project specific
ul7
ser ices necessary to enable an ' dividual property to close ~~,resuming that Paris Living or one
of its consultant(s) performs that actual service). Paris Living agrees that its fees will not
exceed amounts allowable as costs that can be charged against the administrative or project
related soft costs of the Program or against third pat ,,y participants.
Further it is understood that while the administrative costs will be charged for accomplishing
certain administrative tasks, that TDHCA requires that any administrative draw processed to
TDHCA not exceed the percentage of projects completed and drawn. Therefore, Paris Living
will bill the City and prepare subsequent documentation for reimbursement from TDHCA to
the City based upon the following general activity categories and per the following milestones:
[NOTE: the following milestones are based upon 20 units to be completed as specified in
the contract between the Coty of Paris and TDHCA. If that contract should be amended
to increase or decrease the number of units to be completed, the billing milestones will be
adjusted proportionately.]
% OF TOTAL
CONTRACT FEE
ACTIVITY*
25%
I. Affirmative Marketing J5%
2. Administration of the Program/Record Keeping %
3. Financial Management 38 38%
4. Administrative Environmental 101
TOTAL:
% OF
CONTRACTFEE
BILLING MILESTONES*'
1 %
1, 2nd home loan completed and reimbursed by TDHCA 10%
2 5`i' home loan completed and reimbursed by TDHCA 25%
3. 10°i home loan completed and reimbursed by TDHCA 25%
4. 15`x' home loan completed and reimbursed by TDHCA 25%
5. 19"' home loan completed and reimbursed by TDHCA
6. 20`x' (or last) home completed and reimbursed by TDHCA 5%
1 5%
TOTAL: 20 home loans completed -
*these categories reflect work activity for managing the homebuyer program in general.
Activities and work associated with individual loans and projects will be billed to each loan
closing as project related soft costs. Such activities would include such items as: document
preparation, individual property file reviews, environmental checklist preparation, and
document delivery.
**If the total contract is not completed the total administrative fees charged to the City and
subsequently to TDHCA for reimbursement under the Administrative fee portion of the
contract with the City will be in an amount that is the same percentage as the total number of
loans completed (as per the I-IUD rules).
5. Further, the City understands and agrees that Paris Living may, upon written approval
from the City Manager of the City of Paris, subcontract portions of the administration of the
Program to other entities, with the understanding that Paris Living has the ultimate
responsibility and liability to the Citv for the administration of the Program.
6. Paris Living and the City agree that the period of this Agreement will be for a minimum
of three years from the agreement signing date or to coincide with the lcngth and term of the
City's contract with TDHCA including any extensions to thereof, whichever period is longer.
- 197
7. It is expressly understood and agreed by the Pa at re s to release, ment, that Pan's Living
is an independent contractor, and as Bach, Pans Li «n_
hold the City of Paris, its elected officials, officers and employees harmless from and against
all damages, injuries, claims, property damage, losses, demands, suits, judanients and costs
including reasonable and necessary attorneys
to be provided by Paris Living, its consultants, om
or are related to this Agreement or the s
subconsultants, employees or contractors under this Agreement.
8. Paris Living shall obtain a Directors and Officers liability insurance policy in the
minimum amount of One Million Dollars ($1,000,000) insuring Paris Living, its directors,
officers, employees, consultants and subcontractors against any claims, demands, lawsuits,
settlements or costs, including reasonable attorney's fees, arising from the negligent actions or
inactions or intentional wrongful actions committed by Paris Living or its directors, officers,
agents, employees, consultants and or subcontractors related to this Agreement or the services
to be provided pursuant to this Agreement. Paris Living may invoice the City of Paris for the
annual premium for the policy.
9. Paris Living further agrees to administer the Homebuyer Assistance Program for the
City of Paris in strict compliance with the terms and requirements of the TDHCA HOME
PROGRAM, Home Contract No. 1000930 attached hereto and incorporated herein as Exhibit
10. Paris Living further agrees that at any time during normal business hours and upon
forty-eight (48) hours notice, Paris Living shall make available to representatives of the City
for examination -all of its records, and. the records of any consultant or subcontractor hired or
retained by Paris Living to administer this Program, with respect to matters covered by this
make
Agreement, and will pen-nit such representatives of the City to audit, examine, records,
excerpts or transcripts of such records, and to audit all contracts, invoices, payroll
personnel records or other data relating to matters covered by this Agreement or by the
TDHCA Homebuyer Assistance Program, all for a period of three (3) years following the date
of final settlement of this Agreement or final payment by the City under this Agreement,
whichever is later.
11. For the convenience of the parties hereto, any number of counterparts of this Agreement
may be executed by the parties hereto. Each such counterpart shall be, and shall be deemed to
be, an original instrument, but all counterparts taken together shall constitute one and the same
A--reement. This Agreement shall become effective upon the date last sighed by the parties
listed below.
If the foregoing correctly Sejoviforth ur ded and A urn one copy to us at Poo Box 26~Pa coies of ps TX 7t5461.
letter signed in the spaces p
If you have any questions or desire further comment please call me at (903) 784-0836 or our
consultant, Michael Hunter at (97 2) 771-5907.
198
en truly yours.
Paris Living-A Community
Development Corporation
By Date
Clifton Fendley, Presiders
City of Paris, Texas
By.
Kevin Carruth, ag, er Date
199
FIRST AMENDED AGREEMENT FOR
ADMINISTRATION OF HOMEBUYER'S ASSISTANCE PROGRAM
BETWEEN THE CITY OF PARIS, TEXAS AND
PARIS LIVING - A COMMUNITY DEVELOPMENT CORPORATION
The City of Paris (the "City") and Paris Living - A Community Development Corporation ("Paris
Living" or "the Corporation") previously entered into a consulting and administrative services agreement
dated April 30, 2009, under which Paris Living agreed to provide all Administrative Services to run the
City's Homebuyer Assistance Program funded by the Texas Department of Housing and Community
Affairs ("TDHCA") under HOME Contract No. 10000930 (the "Agreement").
The City of Paris and Paris Living now desire to amend the Agreement and both agree to amend this
contract in order to 1. extend the expiration date; and 2. to continue the basis of the agreed upon
relationship between the two parties, to afford Paris Living the authorization to manage future grants and
loans on behalf of and received by the City of Paris from the Texas Department of Housing and
Community Affairs.
TERM: The City of Paris and Paris Living agree that the period of this Amendment will be for a
minimum of three years from the agreement signing date or to coincide with the length and term of City
of Paris' contract with TDHCA including any extensions thereof, whichever period is longer. It is further
agreed that this amended contract may be renewed and extended at the end of the above stated term for an
additional three-year period upon the written agreement of the Parties hereto.
COMPENSATION: In consideration of services provided pursuant to this agreement, the City of Paris
agrees to pay or cause to be paid to Paris Living an administrative fee, in an amount equal to 4% of all
project funds expended. In addition, Paris Living will receive a potential additional amount, not to
exceed TDHCA allowable amounts for each successful downpayment and closing cost award to be paid
at each loan closing to defray costs associated with provision of application intake ($600), project
document preparation ($100), environmental review ($400), homebuyer counseling ($300), home
inspections ($350), information services ($200), schedule of values ($100) or other project specific
services necessary to enable an individual property to close, otherwise known as project related soft costs
(presuming that Paris Living or one of its consultant(s) or subcontractors performs that actual service).
Paris Living agrees that its fees will not exceed amounts allowable as costs that can be charged against the
administrative or project related soft costs of the Program or against third party participants.
Further it is understood that while the administrative costs will be charged for accomplishing certain
administrative tasks, that TDHCA requires that any administrative draw processed to TDHCA not exceed
the percentage of projects completed and drawn. Therefore, Paris Living will bill the City and prepare
subsequent documentation for reimbursement from TDHCA to the City based upon the following general
activity categories and per the following projected milestones:
% OF TOTAL
ACTIVITY* CONTRACT FEE
1. General Management and Oversight of contract 79.0%
2. Affirmative Marketing 2.5%
3. Record Keeping 10.0%
4. Financial Management 2.5%
5. Administrative Environmental 6.0%
TOTAL: 100.0%
Pagel of 3 ExHiBr k
200
BILLING MILESTONES: Paris Living agrees to invoice the City on a scheduled basis in accordance
with directions received from TDHCA. In that those directions may change at anytime, the following
example of billing milestones example is offered to identify how the billing will occur. The example is
based up a contract size of fifteen units. In the following example, the number of home loans completed
may change, but the percentage of home loans completed which would trigger billing remain the same.
% OF
BILLING MILESTONES** CONTRACT FEE
1. 2nd home loan completed and reimbursed by TDHCA 13%
3. 5"' home loan completed and reimbursed by TDHCA 20%
4. 10t" home loan completed and reimbursed by TDHCA 33%
5. 14"' home loan completed and reimbursed by TDHCA 27%
6. 15"' (or last) home completed and reimbursed by TDHCA 7%
TOTAL: 15 home loans completed 100%**
*these categories reflect work activity for managing the homebuyer program in general.
**If the total contract is not completed the total administrative fees charged to the City
of Paris and subsequently to TDHCA for reimbursement under the Administrative fee
portion of the contract with the City of Paris will be in an amount that is the same
percentage as the total number of loans completed (as per the HUD rules).
Activities and work associated with individual loans and projects will be billed to the City of Paris at the
time of each loan closing as project related soft costs. These costs are capped at the allowable soft cost
expenditures as published by TDHCA. Reimbursement of said costs will be requested from TDHCA at
the same time as the reimbursement for the down payment and closing costs are requested on each loan
closed. Project related soft costs are determined by TDHCA and include such items as: application
intake, document preparation, homebuyer counseling, home inspections, environmental checklist
preparation, and document delivery. If and when TDHCA changes the allowable soft costs or soft cost
caps, Paris Living will change the subsequent invoicing appropriately.
Further, the City understands and agrees that Paris Living may, at its own discretion, subcontract portions
of the administration of the Program to other entities, with the understanding that Paris Living has the
ultimate responsibility to the City of Paris for the administration of the Program.
All of the other terms and conditions of the Agreement dated April 30, 2009, which have not been
amended herein, shall remain in full force and effect.
For the convenience of the parties hereto, any number of counterparts of this Amended Agreement may
be executed by the parties hereto. Each such counterpart shall be, and shall be deemed to be, an original
instrument, but all counterparts taken together shall constitute one and the same Agreement as amended.
This Amended Agreement may not be modified or amended except in writing and signed by the parties
hereto.
If the foregoing correctly sets forth our agreement, please have both enclosed copies of this letter signed
in the spaces provided and return one copy to us at P.O. Box 26, Paris Texas 75461.
If you have any questions or desire further comment please call me at (903) 784-0836 or our consultant,
Michael Hunter at (972) 771-5907.
Page 2 of 3
201
For: Paris Living - For: The City of Paris
A Community Development Corporation
Clifton Fendley Effective Kevin Carruth Effective
President Date City Manager Date
Page 3 of 3
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