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HomeMy WebLinkAboutContract 49481 56 7 a� co COOPERATION AGREEMENT CITY SECRETARY f G� X11 � BETWEEN CONTRACT NO. `7� aFo���PPy THE CITY OF FORT WORTH,TEXAS �yoF She AND THE leo �' TEXAS HOUSING FOUNDATION WHEREAS, on June 13, 2017 under provisions of the Texas Local Government Code, Section 392.017(d), the City of Fort Worth, Texas, a home rule municipality organized under the laws of the State of Texas (the "City"), declared that there is a need for the Texas Housing Foundation, a Texas regional housing authority organized under Chapter 392 of the Texas Local Government Code, to exercise its powers within the territorial boundaries of the City because there exists in City a shortage of safe and sanitary housing available to lower income persons at rentals they can afford; WHEREAS, Texas Local Government Code, Section 392.017(d), requires that the City Council adopt a resolution authorizing the Texas Housing Foundation to exercise its powers in the City, and authorizing a cooperation agreement under Section 392.059(a); WHEREAS, on , 2017 the Board of Commissioners of the Texas Housing Foundation also adopted a resolution to exercise its powers in the City and authorized a execution of the Agreement under Section 392.059(a); NOW,THEREFORE,the parties hereto, the City, and the Texas Housing Foundation agree as follows: Section 1: Cooperation Agreement. The City and the Texas Housing Foundation agree to cooperate under this Cooperation Agreement (the "Agreement') to allow the Texas Housing Foundation, to provide housing for lower income seniors in the City, consistent with the provisions below. Section 2: Housing Project Authorization. The Texas Housing Foundation, is authorized to exercise its powers under the Texas Housing Authorities Law, Texas Local Government Code, Chapter 392, to finance, plan undertake, or operate a housing rehabilitation project known as Casa, Inc. and located at 3201 Sondra Drive, Fort Worth, Texas 76107 as provided in this Agreement. Section 3: Housing Authority Authorization. The Texas Housing Foundation is authorized to acquire land, develop site improvements, and rehabilitate buildings for the housing development within the territorial boundaries of the City, and to operate and manage such project for the benefit of lower income seniors of the City. Section 4. Annual Reports. The Texas Housing Foundation shall submit within 120 days after the end of its fiscal year a report to the City Manager or his designee of the City describing the housing and services operation undertaken for the benefit of lower income seniors of the City of Fort Worth and other activities of the Texas Housing Foundation in the City. Cooperation Agreement 11 P a g e Texas Housing Foundation Rev. 6.1.17 Casa, Inc. Redevelopment OFFICIAL.RECORD CITY SECRETARY FT.WORTH,TX Section 5. Preservation of Authority. No applicable provision or intention in this Agreement limits the authority or power of the City to exercise its powers under any law. No provision or intention in this Agreement limits the authority or power of the Texas Housing Foundation to exercise its powers under the Texas Housing Authorities Law, Texas Local Government Code, Chapter 392, to finance, plan, undertake, construct, or operate a housing project under this Agreement or in the area of operation of the Texas Housing Foundation defined in Texas Local Government Code 392.013, Section 6. Implementation. The City Manager or his designee of the City and the President of the Texas Housing Foundation are authorized to take any reasonable and necessary action to effectuate and implement the direction and intention of this Agreement and the authorizing resolutions. EXECUTED and EFFECTIVE as of the last date indicated below by the parties' signatures. CITY OF FORT WORTH TEXAS HOUSING FOUNDATION, a Texas regional housing authority By: 4 By Fernando Cff e�st ,Assistant City Manager Mark Mayfiel , President L61-9Date: � /7 Date: 17 APPROVED AS TO FORM AND LEGALITY: By: \ w� Paige Meb e, Assistant City Attorney ATTES • OF FO/� By: C tyecxe M&C: = Date: L,_ t �-7 :Z ASS Cooperation Agreement 2 P a g e Texas Housing Foundation Rev. 6.1.17 Casa, Inc. Redevelopment OFFICIAL RECORD CITY SECRETARY FT.WORTH,TX City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 6/13/2017 -Resolution Nos. 4797-06-2017 & 4798-06-2017 DATE: Tuesday,June 13,2017 REFERENCE NO.: G-19026 LOG NAME: 19RESOLUTION OF NO OBJECTION CASA,INC. SUBJECT: Conduct Public Hearing on the Application by CI Affordable Preservation, LP, an Affiliate of Texas Housing Foundation,to the Texas Department of Housing and Community Affairs for Non-Competitive Housing Tax Credits for the Proposed Acquisition and Rehabilitation of Casa,Inc.,Located at 3201 Sondra Drive,Adopt Resolution of No Objection to the Application,Adopt Resolution Declaring a Need for and Authorizing the Texas Housing Foundation to Exercise its Powers Within the Territorial Boundaries of the City of Fort Worth and Authorizing a Cooperation Agreement Between the City and the Texas Housing Foundation(COUNCIL DISTRICT 9) RECOMMENDATION: It is recommended that the City Council: 1. Conduct a public hearing to allow citizen comment on the application of CI Affordable Preservation,LP, an affiliate of Texas Housing Foundation, to the Texas Department of Housing and Community Affairs for 2017 Non-Competitive(4%)Housing Tax Credits for the proposed acquisition and rehabilitation of Casa,Inc.,located at 3201 Sondra Drive; 2. Adopt the attached resolution of No Objection to the application by CI Affordable Preservation,LP,to the Texas Department of Housing and Community Affairs for 2017 Non-Competitive(4%)Housing Tax Credits for the proposed rehabilitation of Casa,Inc.; 3. Adopt the attached resolution declaring a need for and authorizing the Texas Housing Foundation to exercise its powers within the territorial boundaries of the City of Fort Worth and authorizing the execution of a Cooperation Agreement between the City and the Texas Housing Foundation; and 4. Authorizing the City Manager or his designee to execute a Cooperation Agreement between the City and the Texas Housing Foundation. DISCUSSION: CI Affordable Preservation,LP, an affiliate of Texas Housing Foundation (THF), is applying to the Texas Department of Housing and Community Affairs (TDHCA)for 2017 Non-Competitive(4%)Housing Tax Credits for Casa, Inc.,a multifamily development, and has requested support from the City of Fort Worth. TDHCA requires Housing Tax Credit applicants to provide a Resolution of No Objection from the governing body of the jurisdiction in which the proposed acquisition and rehabilitation is sited.As part of these TDHCA requirements, the governing body must also conduct a public hearing for citizens to provide comment on the proposed development. THF is a regional housing authority organized under Chapter 392 of the local government code and is located in Marble Falls, Texas. Their mission is to provide opportunities for lower income residents of the State of Texas to live in decent and safe housing that they can afford, located in communities of which they can be proud. Governed by a four-member board of directors appointed by the County Commissioners of each participating county,THF was created to provide a tool to create,develop, administer, manage, and provide services to affordable housing projects through related business entities and for the residents and communities in which they are located. Through 2015, over$170 million was financed to develop more than 1,700 units of affordable workforce housing across the state of Texas. In order for a regional housing authority such as THF to undertake a development in a municipality outside of its region,it is required by the local government code governing housing authorities to seek certain resolutions from both the municipality and the housing authority operating in that municipality to allow for THF to exercise its power within the territorial boundaries of the municipality. Fort Worth Housing Solutions passed its resolution approving this redevelopment on May 18, 2017. Casa,Inc., is an affordable rental housing community for seniors with 201 units and is currently owned by Catholic Charities of Fort Worth. Two hundred of these units are Housing Assistance Payments units, funded by the U.S. Department of Housing and Urban Development(HUD). The proposed development has one and two bedroom units as well as a community center, computer lab, library,laundry facilities on each floor,personal locked mailboxes, and is pet friendly. CI Affordable Preservation,LP,intends to fund the acquisition and rehabilitation through a combination of HUD funding, an allocation of a tax exempt bond from a bond issuer,and an allocation of 4%tax credits from the Texas Department of Housing and Community Affairs (TDHCA).Failure to receive a tax credit allocation could negatively impact the financial feasibility of the development and could jeopardize CI Affordable Preservation,LP, and THF's ability to proceed with the rehabilitation. On October 11,2016,the City Council adopted a policy for Council Resolutions of No Objection for 4%Housing Tax Credit applications,Mayor and Council Communication(M&C G-18831). Because the applicant for the tax credits will provide affordable housing for seniors,the proposed development is eligible for consideration for a Resolution of No Objection from the City Council. Following the close of the public hearing, Staff requests that the City Council consider the attached Resolution of No Objection to support the application for 2017 Non-Competitive (4%)Housing Tax Credits for the proposed rehabilitation of Casa,Inc., adopt the attached resolution declaring a need for and authorizing THF to exercise its powers within the territorial boundaries of the City of Fort Worth and authorizing the execution of a Cooperation Agreement between the City and THF. The redevelopment could assist the City in fulfilling its goals under its Consolidated Plan and Comprehensive Plan by supporting economic development and providing quality, accessible, affordable housing for low to moderate income residents. This redevelopment is located in COUNCIL DISTRICT 9,Mapsco 62W. This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that approval of the above recommendations will have no material effect of the Fiscal Year 2017 Budget. FUND IDENTIFIERS (FIDS): TO Department Account Project Program Activity Budget Reference# Amount Fund ID ID Year (Chartfield 2) FROM Department Account Project Program Activity Budget Reference# Amount Fund ID ID Year (Chartfield 2) CERTIFICATIONS: Submitted for City Manager's Office by: Fernando Costa (6122) Originating Department Head: Aubrey Thagard (8187) Additional Information Contact: Cannella Kendry (6658) Avis Chaisson (6342) ATTACHMENTS 1. Casa Inc Resolution of No Objection SLB AFC(v5)clean.docx (Public) 2. Casa_Inc._Man.ndf (Public) 3. City of Fort Worth Casa Inc. resolutionAFCcomments v4 clean Final.docx (Public) 4. Cooperation Agreement-City of Fort WorthAFC (vll 6.1.17 clean Final.doc (Public) City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 8/1/2017 -Resolution No.4821-08-2017 DATE: Tuesday,August 1, 2017 REFERENCE NO.: G-19057 LOG NAME: 19RESOLUTION OF NO OBJECTION CASA,INC. 2 SUBJECT: Conduct Public Hearing on the Application by THF Casa, LP,an Affiliate of Texas Housing Foundation,to the Texas Department of Housing and Community Affairs for Non-Competitive Housing Tax Credits for the Proposed Acquisition and Rehabilitation of Casa,Inc., a Multifamily Development Located at 3201 Sondra Drive and Adopt Resolution of No Objection to the Application (COUNCIL DISTRICT 9) RECOMMENDATION: It is recommended that the City Council: 1. Conduct a public hearing to allow citizen comment on the application of THF Casa,LP, an affiliate of Texas Housing Foundation,to the Texas Department of Housing and Community Affairs for 2017 Non-Competitive(4 percent)Housing Tax Credits for the proposed acquisition and rehabilitation of Casa,Inc., a multifamily development located at 3201 Sondra Drive; and 2. Adopt the attached Resolution of No Objection to the application by THF Casa,LP,to the Texas Department of Housing and Community Affairs for 2017 Non-Competitive(4 percent)Housing Tax Credits for the proposed rehabilitation of Casa,Inc. DISCUSSION: CI Affordable Preservation,LP, (CI), an affiliate of Texas Housing Foundation(THF),notified the City that it was applying to the Texas Department of Housing and Community Affairs (TDHCA)for 2017 Non-Competitive(4 percent)Housing Tax Credits for the rehabilitation of Casa,Inc., a multifamily affordable housing development for seniors currently owned by Catholic Charities of Fort Worth,and requested support from the City for its tax credit application. TDHCA requires Housing Tax Credit applicants to provide a Resolution of No Objection from the governing body of the jurisdiction in which the proposed development is sited. As part of these TDHCA requirements,the governing body must also conduct a public hearing for citizens to provide comment on the proposed development. On June 13,2017, the City Council conducted a public hearing and approved a Resolution of No Objection to Support a Housing Tax Credit Application for the Rehabilitation of Casa,Inc.,by Cl(M&C G-19026 and Resolution No. 4797-06-2017). At the same time the Council also approved a Resolution authorizing THF, a Texas regional housing authority,to exercise its powers within the City's boundaries and authorized a Cooperation Agreement between THF and the City for the purposes of the project(Resolution No. 4798-06-2017). Other affiliates of THF requested Resolutions of No Objection for the rehabilitation of affordable multifamily projects located in Arlington and Stephenville. The Arlington and Stephenville properties, along with Casa,Inc.,will be part of the same bond issue by TDHCA which will provide a portion of the funding for the rehabilitation of all three complexes. THF is pursuing the acquisition and development or rehabilitation of 21 affordable projects throughout Texas.Fort Worth Housing Solutions (FWHS) also passed a resolution on May 18,2017 approving THF exercising its powers in the City of Fort Worth,FWHS's area of operation. THF has determined that,for consistency in its state-wide operations,the names of its owner affiliates for its various affordable housing developments should include 'THF' in the owner entity name. This change will also be helpful to THF in seeking ad valorem tax exemptions in the various jurisdictions in which. In addition,THS has determined that the developer entities should be structured as limited partnerships instead of limited liability companies. As the owner entity for the rehabilitation of Casa,Inc. is now THF Casa,LP,this is considered a new application for City support and it is necessary for Council to pass a new Resolution of No Objection and hold a public hearing to give citizens an opportunity to comment. Casa,Inc.,has approximately 200 units, all but one of which are Housing Assistance Payment units funded by the U.S. Department of Housing and Urban Development(HUD). The rehabilitated development will have one-and two-bedroom units as well as a community center, computer lab,library, laundry facilities on each floor,personal locked mailboxes,and will be pet friendly. The costs of the acquisition and rehabilitation of the complex will be funded with an allocation of tax exempt bonds issued by TDHCA Non-Competitive(4 percent)Housing Tax Credits from TDHCA and HUD funding.As the only change is the name of the owner entity applying for the tax credits,the proposed project still meets the City's policy for 4 percent housing tax credit applications adopted by the City Council on October 11,2016 (M&C G-18831 Revised). Following the close of the public hearing, Staff requests that the City Council consider the attached Resolution of No Objection to support the application of THF Casa,LP for 2017 Non-Competitive(4%)Housing Tax Credits for the rehabilitation of Casa,Inc. The redevelopment could assist the City in fulfilling its goals under its Consolidated Plan and Comprehensive Plan by supporting economic development and providing quality, accessible, affordable housing for low to moderate income seniors. This development is located in COUNCIL DISTRICT 9. This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that approval of the above recommendations will have no material effect of the Fiscal Year 2017 Budget. FUND IDENTIFIERS (FIDs): TO Department Account Project Program Activity Budget Reference# Amount Fund ID ID year (Chartfield 2) FROM Department Account Project Program Activity Budget Reference# Amount Fund ID ID year (Chartfield 2) CERTIFICATIONS: Submitted for City Manager's Office by: Fernando Costa (6122) Originating Department Head: Aubrey Thagard (8187) Additional Information Contact: Carmella Kendry (6658) Avis Chaisson (6342) ATTACHMENTS 1. Casa_Inc._Map.pdf (Public) 2. THF Casa Inc Resolution of No Objection SLB VG(v5)FINAL.docx (Public)