17-Paris Living Inc. Homebuyer assistanceCITY COUNCIL AGENDA ITEM BRIEFING SHEET
Submittal Date:
Originating Department:
Presented By:
Agenda Item No.:
12/07/2010
Council Date:
Finance
Gene Anderson
17.
12/13/2010
RECOMMENDED MOTION:
Move to approve a Resolution to approving an agreement selecting Paris Living, Inc. as the third party
administrator of the City's Homebuyer Assistance Program.
POLICY ISSUE(S):
Fiscal management
The City of Paris has been awarded a grant from the Texas Department of Housing and Community
Affairs ("TDHCA") for Homebuyer Assistance through the HOME Investment Partnership Program in
the amount of approximately $312,000. Accordingly, the City advertized for proposals from qualified
third parties to manage the City's HOME contract activities. Only one proposal was received. Paris
Living, Inc. has performed similar duties for the City in the past. The staff recommends approval of the
attached agreement with Paris Living, Inc. Their fee for administration is 4% of project costs ($12,480).
BOARD/COMMISSION RECOMMENDATION:
None
EXHIBITS:
Resolution and Agreement
ACTION:
BUDGET INFO:
❑ Financial Report ❑ Minute Order
Expense
$12,480 for admuustration
❑ Department Report ~ Resolution
Budgeted Amt.
$312,000 for grant.
❑ Presentation ❑ Ordinance
y'I'D Actual
$0
❑ Public Hearing ❑ Other
FISCAL NOTES:
None
REVIEWED AND APPROVED BY:
0 Administration Z City Cletk ❑ Community Development ❑ EMS/IT Z Finance ❑ Fire
❑ Municipal Court Z Legal ❑ Libraty ❑ Police ❑ Eng./Public Works ❑ Utilities
City of Paris .130 Revised 2/04/08
DRAFT
S:\RESWORK\CURRENT\TDHCA - Agreement with Paris Living for Admin of Homebuyer Assistance RES 2010.docx
RESOLUTION 1V0.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS,
APPROVING AN AGREEMENT WITH PARIS LIVING FOR ADMINISTRATION
OF THE HOMEBUYER ASSISTANT PROGRAM FUNDED THROUGH THE
TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS;
AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE ALL
1VECESSARY DOCUMENTS; MAKING OTHER FINDINGS A1VD PROVISIONS
RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE.
WHEREAS, the City of Paris, Texas was awarded a grant from the Texas Department of
Housing and Community Affairs for Homebuyer Assistance through the HOME Investment
Partnership Program in the amount of approximately $312,000.00 (HOME Contract
#1001224); and,
WHEREAS, the City Council of the City of Paris did heretofore, advertise for proposals
for third-party administrators of the City's Homebuyer Assistance Program, which bids were
received unti15:00 p.m., Tuesday, the 30th day of November, 2010; and,
WHEREAS, the proposal submitted by Paris Living, Inc., has been selected by the City to
be the third-party administrator for said Homebuyer Assistance Program through the HOME
Investment Partnership Program, with an administration fee of 4% of project costs, totaling
$12,480.00; and,
WHEREAS, Paris Living, Inc. has also offered to administer the TDHCA Reservation
System for Single Family Homebuyer Assistance for the City of Paris; and,
WHEREAS, the Staff of the City of Paris recommends approval of the Agreement with
Paris Living, Inc., in the form attached hereto as Exhibit A;
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 of this resolution are hereby in
all things approved.
Section 2. That the proposal of Paris Living, Inc. for the administration of the
Homebuyer Assistance Program is hereby accepted and the Agreement for this administration
is hereby approved with the City of Paris meeting all of the terms and specifications included in
the Agreement attached hereto as Exhibit A.
Section 3. That the City Manager of the City of Paris is authorized for, on behalf
of, and in the name of the City to apply, negotiate and procure grants and loans from the
Texas Department of Housing and Community Affairs.
Section 3. That this resolution shall be effective from and after its date of passage.
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PASSED AND APPROVED this 13th day of December, 2010.
Will Biard, Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent McIlyar, City Attorney
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2800 Lamar Avenue, P.O. Box 26 ■ Paris, Texas 75460
903.739.9947 ■ fax 903.739.2104 ■ parisliving@sbcglobal.net
"0 IV (1, i Ia;ER*~
December 13, 2010
~
Mr. Kevin Carruth
City Manager
City of Paris
P.O. Box 9037
Paris, Texas 75461
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Dear Mr. Carruth:
~~RS
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 HOME Contract #1001224 funded by the Texas Department of Housing
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and Community Affairs ("TDHCA") in the amount of $312,000, including administrative cost
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allowance as well as to manage the City's participation in TDHCA's Reservation System for
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Single Family Homebuyer Assistance Activities (hereinafter collectively "Programs"). As
Paris Living will administer the above referenced programs on behalf
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outlined in our
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of the City in exchange for a fee equal to 4% of the total project costs, which is the
administrative fee allowed by TDHCA, plus other project related soft costs allowable by
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TDHCA through the HOME Program. For your convenience, I have listed some terms and
K:-An ~,,arrul°i
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 Programs at the direction of the City and in
accordance with the approved program design as submitted in the grant applications;
(b) if requested, develop and implement a marketing effort for the Programs including
writing news releases, meeting with Realtors at the request of the participating lenders,
creating public service announcements for local Radio and Television;
(c) develop and disseminate information packets to, and train, participating lenders and
Realtors;
(d) work with each participating lender to process each borrower through to closing;
(e) prepare or have prepared all forms for set-up and draw of funds as well as closeout
forms on behalf of the City;
EXHIBIT A-
133
(f) review and make recommendations designed to improve the Programs;
(g) assist the City during TDHCA monitoring visits and prepare any required response to
any monitoring findings;
(h) cause to be maintained a file on each property funded through the Programs for review
by TDHCA and/ar HUD;
(i) prepare any and all invoices from Paris Living or its consultant Hunter & Hunter
Consultants, Ina ("H&HCI") to each property closing as necessary;
(j) provide any and all other services as may be required by the City or by TDHCA and
that Paris Living has the ability and expertise to perform;
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
loan as project related soft costs as is allowed under IICJD regulations):
PROJECT MANAGEMENT
• Develop a recard 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
Projects and regulatory matters;
• Furnish the City with the necessary forms and procedures required for implementation
of the Projects;
• 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 the 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 acquiring the services of independent inspectors and to ensure that all
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.
FINANCIAL 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.
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ENVIRONMENTAL
• Prepare the administrative environmental documents for City signature;
• Prepare the Homebuyer Assistance Environmental Checklist for each property;
• Ensure that all lenders disseminate lead base paint information to prospective
borrowers;
• Ensure that all lead base paint certification and acknowledgments are signed and filed
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 affirmative marketing/equal
opportunity statements and logos;
• Maintain documentation of all program beneficiaries by ethnicity and gender.
CLIENT INTAKE 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 PROCEDURES
• Prepare the final completion report and Certification of Completion for filing with
TDHCA;
• Assist the Corporation in resolving any monitaring and audit findings;
• Assist the Corporation in resolving any third party claims;
• Provide City Auditor with HOME audit guidelines.
3. In connection with Paris Living's activities on the City's behalf, the City will cooperate
with Paris Living; furnish or cause to be furnished to Paris Living all information and data
concerning the City and the City's project(s) which Paris Living reasonably requests; and
provide Paris Living with reasonable access to its officers and appointed staff.
The City acknowledges and understands that while Paris Living or its consultant(s) will be
administering the Program on the City's behalf, that this service does not, from the perspective
of TDHCA, relieve the City from any ultimate responsibility for the appropriate administration
of the Program.
4. In consideration of services provided pursuant to this agreement, the City 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, to
be paid at each loan closing, to defray costs associated with provision of application intake,
document preparation, environmental clearances, homebuyer counseling, home inspections, or
I 13
other project specific services necessary to enable an individual property to close (presuming
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 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 milestones:
[NOTE: the following milestones are based upon 15 units to be completed as specified in
the contract between the City 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.]
ADMINISTRATNE FEES
ACTIVITY*
1. General Management and Oversight of contract
2. Information Services
3. Affirmative Marketing
4. Record Keeping
5. Financial Management
6. Administrative Environmental
TOTAL:
BILLING MILESTONES**
AMOUNT % OF TOTAL
ALLOWED CONTRACT FEE
$7,750
$3,000
$ 200
$ 800
$ 200
$ 50
1. 2°d home loan completed and reimbursed by TDHCA
2. St" home loan completed and reimbursed by TDHCA
3. 10" home loan completed and reimbursed by TDHCA
4. 13t" home loan completed and reimbursed by TDHCA
5. 15"' (or last) home completed and reimbursed by TDHCA
TOTAL: 15 home loans completed
64.58%
25.00%
1.67%
6.67%
1.67%
0.41 %
100.00%
% OF
CONTRACT FEE
10%
20%
34%
23%
13%
100%**
*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 the City at
each loan closing as project related soft costs. See below.
**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 HUD rules). UNDER THE RESERVATION SYSTEM, THE
ADMINISTRATIVE FEE (4% OF THE HARD COSTS EXPENDED, MAXIMUN OF $800
PER LOAN) WILL BE BILLED TO TDHCA UPON THE CLOSING OF EACH LOAN
PROCESSED.
SOFT COST FEES PER LOAN CLOSED
Soft Costs are fees charged to each down payment assistance loan for work activities
preparatory to closing. Soft costs are paid outside of closing. Soft costs may vary by loan
closing and applicant. Therefore the following list of fees is the maximum that can be charged
to each loan for soft costs. However, it is agreed that Paris Living will not charge mare than
13 u
$1,800 in total soft cost fees to each loan assisted. UNDER THE RESERVATION SYSTEM,
THE SOFT COST MAXIMUMS FOR EACH ITEM WILL REMAIN THE SAME, EXCEPT
THAT PARIS LIVING WILL NOT CHARGE MORE THAN $1,500 IN TOTAL SOFT
COSTS TO EACH LOAN ASSISTED.
MAXMIUM
ACTNITY
FEE
1.
Application Intake and Processing
$ 600
2.
Preparation of Loan Documents
100
3.
Site Environmental Clearance
400
4.
Project Document Preparation
100
5.
Property Inspection
350
6.
Schedule of Values
100
7.
Credit Report
50
8.
Homebuyer Counseling
300
TOT
AL ALLOWABLE BY TDHCA RULES:
$2,000
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 City 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 ar to coincide with the length and term of the
City's contract with TDHCA including any extensions to thereof, whichever period is longer.
7. It is expressly understood and agreed by the Parties to this Agreement, that Paris Living
is an independent contractor, and as such, Paris Living agrees to release, defend, indemnify and
hold the City of Paris, its elected officials, officers and employees harmless from and against
all damages, injuries, claims, property damage, losses, demands, suits, judgments and costs
including reasonable and necessary attorney's fees of any kind or character which arises from
or are related to this Agreement or the services to be provided by Paris Living, its consultants,
sub-consultants, 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.
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. 1001224 attached hereto and incorporated herein as Exhibit
«A „
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
Agreement, and will permit such representatives of the City to audit, examine, copy and make
137
excerpts ar transcripts of such records, and to audit all contracts, invoices, payroll records,
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. Far 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
Agreement. This Agreement shall become effective upon the date last signed by the parties
listed below.
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 TX 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.
Very truly yours,
Paris Living-A Community
Development Corporation
By:
Clifton Fendley, President Date
City of Paris, Texas
By:
Kevin Carruth, City Manager Date
138