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2010-096 RES APPROVING AMENDMENT OF AGREEMENT BETWEEN THE CITY OF PARIS AND PARIS LIVING TO ADMIN HOMEBUYER PROGRAM CONTRACT NO 1001224RESOLUTION NO. 2010-096 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 IVo. 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 Z, 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. 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: • ice Ellis, City Clerk ATTEST: W. Kent McIlyar, City Attorney 2S00 Lamar Avenue, P.O. Box 26 ■ Paris, Texas 75460 903.739.9947 ■ fax 903.739.2104 ■ parisliving@sbcblobai.net Apri130, 2009 .:g~4: Mr. Jesse James Freelen Mayor City of Paris P.O. Box 9037 Paris, Texas 75461 D ~ u'4 r~L..:. ~.;t0 'r~4 Dear Mayor Freelen: % ,l;~; Paris Living-A Community Development Corporation ("Paris LivinQ" or the "Corporation") is ;e°: M:w~~km pleased to be selected by the City of Paris (the "City_") to administer the City's Homebuyer 'GA `"WI ` Assistance Program funded by the Texas Department of Housin~ and Comrnunity Affairs ("TDHCA") in the amount of $208,000, including administrative cost allowance. As outlined _U in our proposal, Paris Livin- will administer the above referenced program on behalf of the City in exchanQe for a fee equal to 4% of the total project costs, which is the administrative fee aiiowed by TDHCA, plus other project related soft costs allowable by TDHCA throuQh the HOME Program. For your convenience, I have listed soine 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: (a) perform the overall administration of the Program at the direction of the City and in accordance with the approved program desigm as submitted in the grant application; (b) if requested, develop and 'unpleinent a marketing effort for the Prograin including wnting news releases, meeting with Realtors at the request of t11e participating lenders, creating public service aimouncements for local Radio and Television; (c) develop and disseminate irifonnation packets to; and train, participating lenders and Realtors; (d) work with each participating lender to process each boirower throuLh to closing; (e) prepare or have prepared all fonns for set-up and ciraw of funds as well as closeout fonzis on belialf of the City; ( fl review aild make reconunendations desi-m7ed to improve the Pro gram; EXHIBIT .Q_ (U) assist Citv dunnL, TDI-ICA monitoz-na visits an °pare any required response to anv mu-itonnLT findin2s; (11) cause to be maintained a file on each propcry fu.lded tlirough the Promam for revit.w bvTDHCA and/or HLiD; (i) prepare any and all invoices from Paris LivinQ or its consultant Hunte: & Hunter Consultants, Inc. ("H&HCP') to each property closina as necessarv; (j) provide any and a11 other services as may be requll-ed by the City and that Paris LivincT has the ability and expertise to perfoizn; 2. Specifically, the Scope of Work to be performed by Paris Living under this agreement is as follows (Please note that some of the items listed below will be charged to each individual 1oan as project related soft costs as is allowed under HtJD re(yulations): PROJECT NIA1~tAGEMENT • Develop a record keepin~ systen~ includin~ the establishment of a filin- 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 tne City during any monitonng 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 acquiruig the services of indepencient inspectors and to eizsure that all houses in the program pass required inspections; • Assist the City with acquisition of homebuyer trainulg; m Assist the City with the completion of second lien documents; • Maintaiil all project files in a reasonableand lomical oxder; v Vlailage dispute resolution as required. FINAIvCiAi. MANAGEMENT • Assist the City in provin- sts ability to manaQe the grant funds to the state's audit divisioil; • Assist the City, if requested, in establislun, and/or maintainina a bank account (direct deposit account) ancUor separate local bank account, journals and led,ers; • Assist the City in responding to sinRle audit report requests from TDHGA; • Prepare all fui7d reimbursements on behalf of the City; • Review ai7y invoices received for payment and file back-up documentation; • Providc Reneral advice and teclinical assistance to Citv Council, staff and consultants on implementation ot tl-le Project aT7d regulatoi-v mattz;s. ENti IRONti1 7AL • Prepare the adrninistrative em,'iroiunental docunlents for Ciry signature; • Prepare the Homebuyer Assistance Environmental C11ec1:list for each property; • Ensure that all lenders disseminate lead base paint information to prospective borTcwers; • Ensure that all lead base paint certification and acla-,owled,-Yments are sizned and i`iled in each individual project file; • Ensure that an environmental file is created and maintained for the Proaram. FA1IR HOUSING/EQUAI, OPPORTUNITY Ensure that all marketing materials prepared include affirmative rnarketine'/equal opportunity statements and loQos; Maintain documentation of all pro~ram beneficiaries by etlunicity and trender. CLIENT 1NTAKE QUALIFICATION AND 1NTAKE • Meet with each prospective borrower and help them fill out the application for assistance; • Review each applicants financial information to ensure they qualify for the assistance to 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 process; • Prepare notifications to sellers of properties to be purchased by qualified applicants; • Prepare approval letters to the applicants for City staff signature; • Perform any other necessary activities to ensure an effective application process. AUDIT/CLOSE-OUT PROCEDtTRES • Prepare the final completion report and Certification of Completion for filing with TDHCA; • Assist the Corporation in resolving any monitoring and audit findin~s; o Assist the Corporation in resolvina any third pai~ty claims; a Provide City Auditor with HOME audit guidelines. 3. In connection with Paris Livin~'s ac~ivities on the City's behalf, the City will cooperate with Paris Living; furnish or cause to be furnished to Paris Liviiig all inforniation and data concei-nin(a the City and the City's project(s) which Pai-is Living reasonably requests; and provide Pans Living with reasonable access to its officers and appointed staff. The City aclalowledges aild understands that while Paris Liviilg or its consultant(s) will be administering the Pro<7ram on tlle City's behalf, that this service does not, from the perspective of TDHCA, relieve tlie City from any ultimate responsibility for the appropriate administration of the Proaram. 4. Lu consideration of services provided pursuant to this agreement, the City agrees to pay oi- cause to be paid to Pans Liviia, an administrative fee, in an amount equal to 4° o of all proj ect funds expended. In addition, Paris Living will receive a potential additional anlouilt, not to exceed 10°,~0 oi each successful down payment and closing cost award to be paid at eacil loail closin~~ to defray costs associated with provision of application intake, document preparation, c oi7ental, homebnver couilselinQ, home i °ctions, or oCher project specific sen,ices necessalv to enable an uldividual property to close ~,,iesuming that Paris LivinR or one of its collsultant(s) perfonlls that actual se;ti-ice). Pans LivinL, azrees that its fees will noi e~ceed an.ounts allowable as eosts that can be charged aL'alnst the administrative or prolect relatea soft costs of the ProQrain or at7aiilst third party panicipants. Further it is understood that while tl,~.e administrative costs wili be charQed for accomplishing certain administrative tasks, that TDHCA requires that any administrative draw processed to TDHCA not exceed the percentage of projects coinpleted and drawn. Therefore, Paris Living will bill the City and prepare subsequent documentation for reimbursement from TDHCA to the City based upon the following acneral 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 Uillins milestones will be adjusted propoi-tionately.] % OF TOTAL ACTNITY* CONTRACT FEE 1. Affirmative Marketing 25% 2 Administration of the Pro;ram/Record Keeping 36% 3. Financial ManaQement 'g% 4. Administrative Environmental 01 % TOT.AL: 100% °'o OF BILLING MILESTQivES*'" CONTRACT FEE 1, 2°d home loan completed and reimbursed by TDHCA 10% 2. 5`I' home loan completed and reimbursed Uy TDHCA 1 5% 3. 10"' home loaiz completed aiid reimbursed by TDHCA 25% : 4. 15"' home loan completed and reimbursed by TDHCA 25% 5. 19`'home loan completed and reimbursed by TDHCA 20% 6. 20°i (or last) home completed and reimbursed by TDHCA 5% °aT* TOTAL: 20 home loans comoleted 100 _ *these cateQories 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 suc11 items as: document preparation, individual property file reviews, eilviromllental checklist preparation, and document deliverv_ **If the total contract is not completed the total administrative fees charged to the City aild subsequently to TDIICA for reinlbtusement under the Administrative fee portion of the contract with the City will be i11 an amount that is the sanie percentage as the total nuinber of loans completed (as per the HLTD rules). Further, the City understands and a,-,rees that Paris Living may, upoi1 u-ritten approval from the City Mazla;er of the City of Paris, subcontract poi Lions oi the administration of the Proaram to other entities, with the understandinL tha± Paris Livina has the ultiniate rarn. responsibility and liability to the City for the administration of the ProL 6. Par,s Living, and the Ci?}- agree that the pe.-iod of this Agreement will be for a minimum of tluce vears from the agreei7lent si7ning date or to coincide with tlle length and teizli of the ever period is lon~er. whicll Citv's contract with TDHCA incltidina any extensions to thereof. 7. It is expressly understood and a;reed by the Parties t~, this aQreement, that Pan's Living is an independent contractor, and as such, Pans Livii~g agrees to release, defend, indemnify and hold the Citv of Paris. its elected otficiais, officers a;ld employees hanilless irom and avainst al1 darnaaes, injunes, claims, prope:ty damage, losses, demands, suits, judgments and costs including reasonable and necessary attomey's fees of any kind or character which arises from or are 1'elated to this A;reement or tl.ie services to be provided by Pans Liv=), its consultants, subconsu.tants, employees or contractors under this Agreement. S. Paris Living shall obtain a Directors and Offieers liability insurance policy in the ninimum amount of One Million I)ollars ($1,000,000) insunna Paris LivinQ, its directors, officers, employees, consultants and subcontractors against any claims, demands, lawsuits, settlements or costs, ii7cludina reasonable attorney's fees, arising from the negligent actions or inactions or intentional wrongful actions committed by Pan's Living or its directors, officers, a-ents, employees, consultants and or subcontractors related to this Agreement or the services to be provided pursuant to this Agreement. Paris Livins 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 Pan's in strict compliance with the terms and requirements of the TDHCA HOME PROGRAM, Home Conhact No. 1000930 attached hereto and incorporated hereu7 as Exh-ibit «A 10. Paris Living further agorees that at any time during normal business hours and upon forty-eight (48) hours notice, Pan's 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 Pan's Livina to administer this Program, with respect to matters covered by this Agreement, and wi11 pern-iit such representatives of the City to audit, examine, copy and make excerpts or transcripts of such records, and to audit all contracts, invoices, payroll records, personnel records or other data relatina to matters covered by this Ab eement or by the TDHCA Homebuyer Assistance ProDram, all for a period of three (3) years following the date of final settlement of this A;reement or final payment by the City under this Atrreemeilt, whichever is later. 11. For the convenience of the parties hereto, aily number of counterparts of this Aareement may be executed by the parties hereto. Each such counterpart shall be, and shall be deemed to be, an oriclinal instrument, but all counterparts taken together shall constitute one and the same Aareement. Tlzis Agreement shall become effective upon the date last sigiled by the parties listed below. If the foregoing coi-rectly sets forth our Agreement, please have both enclosed copies of this letter signed in the splces provided and return one copy to us at P.O. Box 26, Pan's TX 75461. If you have any questions or desire further commeilt please call me at (903) 754-0836 or our consultant, Nlicliael Htmter at (972) 771-5907. trulv vours, Paris Livina-A Community Development Corporation By. _ 5/Z9 Clifton Fendley, Presiden Date City of Paris, Texas `Se By: &J~ja/,ger Kevin Carrut, Date 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 subcontractars 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% Page 1 of 3 EXH1B1T .3~ 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 MILESTONF,S** CONTRACT FEE 1. 2"d home loan completed and reimbursed by TDHCA 13% 3. 5t" home loan completed and reimbursed by TDHCA 20% 4. 10"' home loan completed and reimbursed by TDHCA 33% 5. 14°i 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 fhe 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 faregoing 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 ar our consultant, Michael Hunter at (972) 771-5907. Page 2 of 3 For: Paris Living - For: The City of Paris A Community Development Corporation Effective Date Clifton Fendley President Effective Kevin Carruth Date City Manager Page 3 of 3