Ordinance No. 7,169941121 -4
ORDINANCE NO. 7169
• AN ORDINANCE AUTHORIZING AND DIRECTING THE MAYOR TO
EXECUTE AND THE CITY CLERK TO ATTEST TO A CONTRACT WITH
HOUSTON HOUSING PARTNERSHIP, INC. FOR THE CITY'S
PARTICIPATION IN THE FIRST -TIME HOMEBUYERS PROGRAM;
AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN OF COMMUNITY
DEVELOPMENT BLOCK GRANT FUNDS, THE SUM OF TWENTY -FOUR
THOUSAND AND NO /100 DOLLARS ($24,000.00); AND PROVIDING
FOR THE EFFECTIVE DATE THEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS:
Section 1: That the City Council of the City of Baytown,
Texas, hereby authorizes and directs the Mayor and City Clerk of
the City of Baytown to execute and attest to a contract with
Houston Housing Partnership, Inc., for the City's participation in
the First -Time Homebuyers Program. A copy of said contract is
attached hereto, marked Exhibit "A," and made a part hereof for
all intents and purposes.
Section 2: That the City Council of the City of Baytown
authorizes payment of Community Development Block Grant funds to
Houston Housing Partnership, Inc., the sum of TWENTY -FOUR THOUSAND
AND NO 1100 DOLLARS ($24,000.00), pursuant to the contract.
Section 3: This ordinance shall take effect immediately from
and after its passage by the City Council of the City of Baytown.
INTRODUCED, READ and PASSED by the affirmative vote of the
City Council of the City of Baytown this the 21st day of November,
1994.
PETE C. ALFARO, Mayor
ATTEST:
EILEEN P. , City Clerk
APPROVED AS TO FORM:
CIO RAMIREZ, SR., City Attorney
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•
THE STATE OF TEXAS:
COUNTY OF HARRIS:
WHEREAS, the City of Baytown has received a grant from the
United States Department of Housing and Urban Development (CDBG
Program No. B- 93- MC- 48- 0033);
WHEREAS, these funds will be used to subsidize the purchase of
standard housing units to enable low to moderate income families to
own their own homes;
WHEREAS, the Houston Housing Partnership, Inc. (HHP) provides
various services to low to moderate income families of the City of
Baytown, Harris County, Texas that enable such families to obtain
a suitable place to reside;
WHEREAS, the City of Baytown and the HHP desire to enter into
a Contract and Agreement whereby the City of Baytown will furnish
said federal grant funds to the HHP for the purposes of providing
financial assistance in the payment of the closing costs, and any
other eligible costs for low to moderate income families.
NOW, THEREFORE, KNOW ALL MEN BY THESES PRESENTS:
That for and in consideration of the mutual covenant,
promises, and agreements contained therein, the City of Baytown,
hereinafter referred to as "City",. acting by and through Pete C.
Alfaro, its duly authorized Mayor, and the HHP, hereinafter
referred to as "Grantee", acting by and through David M. Wood, its
• duly authorized Representative, do hereby covenant and agree as
follows:
pxHIBIT A
0 1.
Grantee covenants and agrees to expend federal grant funds
herein provided in accordance with its proposed HHP Guidelines
contained in Exhibit "A ". It is expressly understood and agreed by
Grantee that this Contract and the procurement authorized and
provided for hereunder have as their purpose or goal of assisting
in the payment of closing costs for low to moderate income
families. Grantee agrees to do all things necessary under this
Contract to complete the program set out in Exhibit "A ", attached
hereto.
2.
It is understood and agreed that in no event shall the total
distribution of federal grant funds made to or in behalf of the
Grantee pursuant to this Agreement exceed the total sum of TWENTY -
FOUR THOUSAND AND NO 1100 DOLLARS ($24,000.00)
3.
The City agrees to provide Grantee with TWENTY -FOUR THOUSAND
AND NO 1100 DOLLARS ($24,000.00) to be available on or after the
effective date of this Contract. Grantee agrees to complete the
program set in Exhibit "A ", attached hereto, within one (1) year
from the execution of the agreement with the City of Baytown,
Texas. Payment shall be made by the U. S. Treasury, who will
disburse CDBG funds (wire transfer) through Cash Management
Information System (CM /I) directly to the City, who will make
payments upon receipt of invoices or payment vouchers from Grantee
• certifying that all requirements have been met and a closing date
has been finalized. The Grantee understands that all grant monies
iawarded may be terminated for convenience. Grantee further agrees
that any funds remaining after this Agreement expires will revert
to the City.
4.
It is expressly understood and agreed by and between the City
and Grantee that this Agreement is wholly conditioned upon the
actual availability of federal grant funds under the United States
Department of Housing and Urban Development (CDBG Program No.
B- 93 -MC -48 -0033) and that all monies distributed to or in behalf of
Grantee hereunder shall be exclusively from federal monies received
under said CDBG Program, and not from any other monies of the City.
S.
Grantee agrees to keep accurate records to document its
adherence to applicable federal regulations and all "other federal
requirements ", along with documentation and records of all
expenditures of said CDBG Program funds. City shall reserve the
right to investigate, examine and audit, at any time, and all such
records relating to the operations or expenditures of Grantee under
this Agreement.
6.
Grantee covenants and agrees to fully cooperate with the City
in monitoring the effectiveness of the expenditure of grant funds
and the City shall have access at all reasonable times to the
offices, premises and records of Grantee in regard to the
administration of this Contract.
0
• 7.
Grantee shall operate hereunder as an independent contractor
and not as an officer, agent, servant or employee of the City.
Grantee shall have exclusive control of the program and all persons
involved in same, subject only to the terms of this Agreement and
shall be solely responsible for the acts and omissions of its
officers, members, agents, servants, employees, subcontractors,
program participants, licensees and invitees. It is expressly
understood and agreed, other than those people who receive wages on
a regular basis from the City, that no officer, member, agent,
servant, employee, subcontractor, licensee, invitee of Grantee nor
any program participant hereunder is in the paid service of the
City. It is also expressly understood and agreed that City will
provide technical assistance regarding the CDBG guidelines to the
Grantee in furtherance of the program.
S.
Grantee hereby covenants and agrees, in consideration for the
funds herein provided, to subsidize the purchase of standard,
detached single - family housing units for low to moderate income
families in Baytown, Harris County, Texas, by using the funds to
assist in the payment of closing costs, or any other eligible
subsidy assistance. The Grantee will adhere to all CDBG
affordability requirements.
9.
No officer, employee or member of Grantee or Grantee's
subcontractors shall have a financial interest, direct or indirect,
in this Contract or the monies transferred hereunder, or be
• financially interested, directly or indirectly, in any Contract
relating to the operations conducted by it, nor in an Contract for
furnishing services or supplies to Grantee. Any willful violation
of this paragraph with the knowledge, expressed or implied, of
Grantee or its subcontractors, shall render this Contract voidable
by the City of Baytown.
10.
No grants shall be made by Grantee to its directors or
officers, either directly or indirectly, through family members,
business partners or employees. Grantee agrees that no CDBG funds
shall be used, either directly or indirectly, for religious
purposes. Any willful violation of this paragraph with the
knowledge, expressed or implied, of Grantee shall render this
Contract voidable by the City of Baytown.
11.
HHP agrees to and shall indemnify, defend and hold harmless
the City, its officers, agents and employees from and against any
and all claims, losses, damages, causes of action, suits and
liability of every kind, including all expenses of litigation,
court costs and reasonable attorneys' fees, for injury to or death
of any person, or for damage to any property, arising out of or in
connection with the work contemplated herein, where such injuries,
death or damages, are caused by the City's sole negligence or joint
negligence of the City and any other person or entity. It is the
expressed intention of the parties hereto, both HHP and the City,
that the indemnity provided for in this paragraph is indemnity by
HHP indemnify and protect the City from the consequences of the
• City' s own negligence, whether that negligence is the sole or a
concurring cause of the injury, death or damage.
12.
Grantee covenants and agrees that its officers, members,
agents, employees, program participants and subcontractors shall
abide by and comply with all Federal, State and local laws,
including all ordinances, rules and regulations of the City of
Baytown, as amended. Grantee further covenants and agrees that it
will fully comply with the terms and conditions of the CDBG Program
under which these funds are granted.
13.
The provisions of this Agreement are severable and if for any
reason a clause, sentence, paragraph or other part of this
Agreement shall be determined to be invalid by a court or federal
or state agency, board or commission having jurisdiction over the
subject matter thereof, such invalidity shall not affect the other
provisions which can be given effect with the Invalid provision.
14.
The failure of the City to insist upon the performance of any
term or provision of this Agreement or to exercise any right herein
conferred shall not be construed as a waiver or relinquishment to
any extent of the City's right to assert or rely upon any such term
or right on any future occasion.
15.
This written instrument constitutes the entire Agreement by
the parties hereto concerning the matter performed hereunder and
any prior or contemporaneous, oral or written Agreement which
! purports to vary from the terms hereof shall be void.
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement in Baytown, Harris County, Texas, this day of
, A.D., 19
THE CITY OF BAYTOWN
By: Pete C. Alfaro
Mayor
ATTEST: Ignacio Ramirez
Eileen P. Hall City Attorney
Clerk
ATTEST:
Executive Committee
David M. Wood, Chairman
Houston Housing Partnership, Inc
• EXHIBIT "A"
HOUSTON HOUSING PARTNERSHIP, INC.
GUIDELINES
The Houston Housing Partnership provides financial benefits and
pre - purchase counseling to qualified low and moderate income
individuals and families who wish to purchase a home within Houston
or Harris County. Eligible applicants may not have a gross annual
household income that exceeds Sot of the area median.
The Houston Housing Partnership helps arrange loans for quality
homes in Houston and Harris County through participating financial
institutions. We offer relaxed qualifying requirements and provide
assistance with closing costs. In addition, under this program the
buyer does not have to pay either an origination fee or the first -
year private mortgage insurance costs. Generally, the program is
designed to provide loans for homes valued at $57,500 or less.
However, under certain circumstances, home values may exceed this
limit.
The funding for this agreement is provided through the U. S.
Department of Housing and Urban Development's Community Development
Block Grant Program. The Mayor and City Council of Baytown, Texas
appropriated $24,000 in CDBG funds for this activity.
ig'bility Regu rementsi
To be eligible to receive a grant from the Houston Housing
Partnership, Inc. (HHP), applicants must meet the following
requirements:
1. Applicants total family income must be eighty percent (Sot) or
less than the current Harris County median income range as
established; by the Department of Housing and Urban
Development (HUD).
2. Applicants must be a first time homebuyer.
3. Applicants must have at least two (2) or more related persons
residing in the household; they must be related or any co-
borrower willing to enter a contractual Agreement must occupy
the mortgage premises as his /her primary residence if any
income was used to qualify.
4. Applicants must be a resident of the City of Baytown or
currently employed by a business. located and operating in
Baytown, Texas.
• 5. Applicants must be 18 years old or older.
6. Applicants must be citizens of United States or a registered
legal alien.
7. Applicants must be able to obtain financing from private or
public lending sources.
8. Applicants' family size must be appropriate for the number of
bedrooms in the available units.
9. Applicants must successfully complete a homebuyers course
sponsored by HHP.
10. Applicants must sign an Authorization For Release Of
Information for verification of credit report.
il. Applicants must provide proof of income.
Applicants meeting these criteria shall be processed on a first -
come, first - served basis.-
First, each participating lender waives the origination fee and the
first -year private mortgage insurance cost, saving what can often
be a considerable outlay of cash. And second, up to $1,500 for
closing costs is provided through the City of Baytown's Community
Development Block Grant Program once you are qualified. In
addition to financial assistance, HHP provides pre - purchase
counseling covering a broad range of home buying concerns.
Specifically, every candidate who is eligible for the program will
be required to complete a total of six hours, of free counseling
that explains everything from how to purchase a home to how to
build and maintain banking relationships.
• EXHIBIT "A" (continued)
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM REQUIREMENTS
FOR NON PROFIT ORGANIZATIONS
I.
TITLE VI OF THE CIVIL RIGHTS ACT OF 1964
The Contractor shall comply with Title VI of the Civil
Rights Act of 1964 (P.L.880 -352) and Title 24 Code of Federal
Regulations Part 1. In accordance with the Act, no person in the
United States shall, on the ground of race, color, or national
origin, be excluded from participation in, be denied the benefits
of, or be otherwise subject to discrimination under any program
or activity for which the Contractor receives Federal financial
assistance. The contractor will immediately take any measures
necessary to comply with Title VI. If any real property of
structure is thereon provided or improved with the aid of Federal
financial assistance, this clause shall obligate the owner, or in
the case of any transfer of such property, an transferee, to
comply with the requirements and restrictions contained in this
clause for the period during which the real property or structure
is used for a purpose for which the Federal financial assistance
is extended or for another purpose involving the provision of
similar services or benefits. The Contractor will further comply
with federal regulation, 24 CFR Part 1, which implement the act.
II.
EXECUTIVE ORDER 11063
The Contractor shall comply with Executive Order 11063 as
amended by Executive Order 12259 and is contained in 24 CFR Part
107. Contractor will take all action necessary and appropriate
to prevent discrimination because of race, color, religion
(creed), sex, or national origin, in the sale, leasing, rental,
or other disposition of residential property and related
facilities (including land to be developed for residential use),
or in the use or occupancy thereof, if such property and related
facilities area, among other things, provided in whole or in part
with the aid of loans, advances, grants, or contributions agreed
to be made by the Federal Government.
III.
SECTION 109 OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974
The Contractor shall comply with Section 109 of the Housing
and Community Development Act of 1974 as contained in 24 CFR Part
570.602 issued pursuant to Section 109. No person in the United
• States shall, on the ground of race, color, national origin or
sex be excluded from participation in, be denied the benefits of,
or be subjected to discrimination under any program or activity
funded in whole or part with community development funds.
"Program activity" is defined as any function conducted by an
identifiable administrative unity of the City, or by any unit of
government, subrecipient (Contractor) or private contractor
receiving community development funds or loans from the County.
"Funded in whole or in part with community development funds"
means that community development funds in any amount in the form
of grants or proceeds from HUD guaranteed loans which have been
transferred by the City or subrecipient (Contractor) to an
identifiable administrative unit and disbursed in program or
activity. Specific discriminatory action prohibited and
corrective actions are described in 24 CFR 570.602(b).
Section 109 of the act further provides that any prohibition
against discrimination on the basis of age under the Age
Discrimination Act of 1975 (42 U.S.C.A. 6101 et seq.) or with
respect to an otherwise qualified handicapped individual as
provided in Section 504 of The Rehabilitation Act of 1973 (29
U.S.C.A. 794) shall also apply to any program or activity funded
in whole or in part with funds made available pursuant to Act.
HUD regulations implementing the Age Discrimination Act are
contained in 24 CFR Part 146 and the regulations implementing
section 5404 are contained in 24 CFR Part 8.
IV.
EXECUTIVE ORDER 11246
The Contractor shall comply with Executive Order 11246, as
amended by Executive Order 12086, and the regulation issued
pursuant thereto (41 CFR Chapter 60) which provides that no
person shall be discriminated against on the basis of race,
color, religion, sex, or national origin in all phases of
employment during the performance of Federal or federally
assisted construction contracts.
Contractor agrees that contractors and subcontractors on
Federal or federally assisted construction contracts shall take
affirmative action to ensure fair treatment in employment,
upgrading, demotion or transfer, recruitment or recruitment
advertising, layoff or termination, rates of pay, or other forms
of compensation and selection for training and apprenticeship.
SECTION 3 OF THE HOUSING AND URBAN DEVELOPMENT ACT OF 1968
The Contractor shall comply with Section 3 of the Housing and
Urban Development Act of 1968, as amended, (12 USC 1701u).
A. The Contractor shall to the greatest extent feasible,
• give opportunities for training and employment to lower
income residents of the City and shall award contracts
for work in connection with the Project to business
CJ
concerns which are located in.or owned in substantial
part by persons residing in the City.
B. The Contractor shall include the phrase in paragraph A
in all contracts for work in connection with this
project.
VI.
USE OF DEBARRED SUSPENDED OR INELIGIBLE CONTRACTORS
The Contractor shall not use assistance to directly or
indirectly employ, award contracts to, or otherwise engage the
services of, or fund any contractor or subcontractor during any
period of debarment, suspension or placement in ineligibility
status under provisions of 24 CPR Part 24.
VII.
UNIFORM ADMINISTRATIVE REQUIREMENTS
AND COST PRINCIPLES
The Contractor and its agencies or instrumentalities, and
subrecipients shall comply with the policies, guidelines, and
requirements of 24 CFR Part 85, "Uniform Administrative
Requirements for Grants and Cooperative Agreements to State and
Local Governments,: OMB Circular No. A -122, "Cost Principles for
NonProfit Organizations, ". The applicable sections of 24 CFR
Part 85 and OMB Circular No. A -110 are set forth at 570.502.
VIII.
CONFLICT OF INTEREST
A. No member of or delegate to the Congress of the United
States, and no resident Commissioner, shall be admitted
to any share or part of this Contract or to any benefit
direct or indirect which arises from this Contract.
B. In accordance with 24 CFR Part 570.611, no persons
described in the paragraph below who exercise or have
exercised any functions with respect to CDBG activities
or who are in a position to participate in a decision
making process or gain inside information with regard
to CDBG activities, may obtain a personal or financial
interest or benefit from or have any interest in any
contract, subcontract, or agreement or the proceeds
thereunder, either for themselves or those with whom
they have family or business ties, during their tenure
or for one year thereafter.
• C. The requirements of the above paragraph apply to any
person who is an employee, agent, consultant, officer,
or elected official or appointed official of the City,
Contractor, and of any designated public agency, or
subrecipient under 24 CFR Section 570.20 which receives
funds under the CDBG grant agreement with HUD.
IX.
RECORDS FOR AUDIT PURPOSES
Without limitation to any other provision of this Agreement
the Contractor shall maintain all records concerning the Project
which the County reasonable requires for three years from the
expiration date of the Agreement unless a longer period is
required under Title 24, Code of Federal Regulation 570.510. The
Contractor shall maintain records required by 24 CFR Section
135.120 for the period that HUD requires the records to be
maintained. The Contractor will give the City, HUD, and the
Comptroller General of the United States, the General Accounting
Office or any of their authorized representative access to and
the right to examine, copy or reproduce all records pertaining to
the acquisition and construction of the Project and the operation
of the Project. The right to access shall continue as long as
the records are required to be maintained.
X.
DRUG FREE WORKPLACE ACT OF 1988
The Contractor shall comply with the Drug Free Workplace Act of
1988 and certify that it will maintain a drug -free workplace in
accordance with the requirements of 24 CFR Part 24, subpart F.
•