HomeMy WebLinkAboutContract 45301 ciTy sECRETARY
CONTRACT NO*
INT OCAL AGREEMENT
This INTERL CAL AGREEMENT ("Agreement") is made and entered into by and
between the CITY OF FORT O T:H TEXAS a home-rule municipal corporation, (hereinafter
culled "CITY"); and the TARR A NT COUNTY 14OSPITAL DISTRICT d/h/a JP,S HEALTH
NETWORK, a unit of local government and more specifically a county hospital district, created
and operating under Chapter 281 of the Texas l-lealth and Safety Code hereinafter called
"DISTRICT"'),.
RECITALS
1. This Agreement is made under the authority ranted to CITY and the DIST CT by and
pursuant to Texas Govenunent Code Chapter 791, known as the INTERLOCAL
COOPERATION ACT.
2. By its adoption of M&C G-12284 d Ordinance No. 13533 (the "Ordinance"') on
July 28, 1998, the City Council of the CITY established a procedure to convey tax
foreclosed property to eligible housing nonprofit organizations for the development of
law and moderate income housing Pursuant to Section 34.051 of the Texas Tax Code.
The Ordinance sets forth the City's goals with respect to the City's urban redevelopment
plans and affordable housing policy as follows-,
a. To provide greater opportunities for decent, affordable housing to low income
individuals and households;
h, To revitalize existing neighborhoods by building homes on vacant lots and
rehabilitating deteriorated or vacant homes;
e. To generate revenues by returning these properties to the tax rolls; and
d. 'To provide an efficient mechanism for returning deteriorated or unproductive
properties to the tax rolls, enhancing the value of' ownership to the surrounding
properties, and improving the safety and quality of life in deteriorating neighborhoods. A
copy of the Ordinance is attached as Exhibit "A" and incorporated for all purposes. The
Ordinance has been reviewed by the staff at DISTRICT and has been Presented to its
Board of Managers for review,
3. By its adoption of M C G-12284, the City Council of CITY has also authorized this
rn Agreement with DISTRICT to obtain ISTRICT's consent to the conveyance method
stated in the Ordinance and to be designated as, the sign ator y on behalf of DISTRICT to
execute Tax Resale Deeds in the conveyance under the Ordinance. A copy of the
rri
Proposed Tax Resale,heed is attached as Exhibit"B" and incorporated for all purposes.
4. ,T RICT's Board o approved alters has this Agreement at its meeting on.
ISO 2O 14.
OFFICIAL RECORD
FT. WORTH, TX
l
CITY SECRETARY'
NOW THEREFORE in consideration of the mutual covenants, here-in expressed', the parties
agree as follows:
AGREEMENT
I DISTRICT hereby approves and consents to the method of property conveyance as stated
in the Ordinance.
2. DISTRICT further designates and authorizes the City Manager or any Assistant City
Manager of the City to execute Tax Resale Deeds to be used in property conveyances
pursuant to the Ordinance on behalf of DISTRICT.
3. This Agreement is applicable and operative only with respect to tax foreclosed property
that is either vacant or distressed and has a tax delinquency of six or more years.,
4. The tax foreclosed properties being sold pursuant to this Agreement will be used only for
purposes consistent with the plans, goals, and policies, 'Identified and set forth in the
Ordinance.
5. This Agreement has been duly authorized by the governing bodies of the CITY and
DISTRICT.
6. This Agreement, and the authority granted herein, shall continue in effect until terminated
by notice in writing from one party to the other, at least thirty (30) days prior to the
effective termination date.
EXECUTED this ay of 2 0 14.
CITY off"FORT WORTH TARRANT COUNTY HOSPITAL
DISTRICT 10%
01:7
laws I
iff Ar
By B y
Fernando Cr%s,tA A sistant City Manager Name.: Rob:N Earley
Date: Title: President and C 0
Date:
A..."..roved as to Legality and Form
I 1W
tear an, Aso)stant City Attorney
Date:
2
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Attest.
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City ecret.r
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W:\00 Tc d\1 48540\D cuments\Inter lo al Agreement w City of Fes' fi nal 121113 do x.
OFFICIAL RECORD
ORD
CITY SECRETARY
FTv WORTH,TX
w
EXHIBIT' "A"
to
NT O AL AGREEMENT
by and between
THE CITY OF FORT WORTH,TEXAS
and
TARRANT COUNTY HOSPITAL DISTRICT
FORT WORTH CITY ORDINANCE NO, 13533
4
,w
ORDINANCE NO
AN ORDINANCE AMENDING THE CODE, F THE CITY OF FORS""
WORTH I EDP BY THE ADDITION OF SECTION 2-1
PRESCRIBING R U FOR THE CONVEYANCE Off"" TAX
FORECLOSURE PROPERTY TO ELIGIBLE ;SOUSING NONPROFIT
ORGANIZATIONS FOR E DEVELOPMENT O HOUSING FOR
LOS' INCOME HOUSEHOLDS PURSUANT TO SECTION 34.015 OF
THE TEXAS PROPERTY TAX CODE* PROVIDING THAT THIS
ORDINANCE SHALL E CUMULATIVE O' OTHER ORDINANCES*,
PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN
EFFECTIVE DATE
WHEREAS, Section 34 015 o the Texas Property'Tax Code allows,the govermng body
of municipality provide or,the manner in which land acqwred by the mumcipality following
e foreclosure of a tax h favor of the municipality may be sold eligible nonprofit
organizations to develop housing for low income individuals and families,and
WHEREAS, the Cif Council desires to implement such procedure by ad ptaor of is
ordinance;and
WHEREAS,the objectives of implementing those procedures are to
1 provide gre t r opportunihes for decent, affordable housing to low income
mdivioua s and households,
2. revitalize existing neighborhoods by buildffig homes on vacant, lots and
rehabilitating deteriorated or vacant homes, d
3 generate rev u s by retunung these properties to the tax rolls.
NOW, THEREFORE., BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
F FORT WORTH,TEXAS
t.
SECTION I
Chapter 2, of the Code of the City of Fort Worth (1986), as amended, is amended by
adding a new Section 2,-13 to read as,follows.
213 Conveyance of tax foreclosure property to, eligible housing nonprofit organizations
for the development,of low Income housing,
(a) Defini'dous.
I E11gible property. Real property obtained by the City following, the
foreclosure of a tax lien in favor of the City and other taxing entities, that is capable o '
being developed for low income housing.
2. Eligible housing nonprofit organization. A current and, active nonprofit
organization which meets the following requirements.
(A) (1)� a nonprofit corporation described by 26 US C. Sec. 501(c)(3)that-,
I. has been incorporated in the state of Texas for at least one year,
I. has, a corporate purpose to develop affordable housing that is stated
in its articles of incorporation,bylaws or charter; and
Ill. has at least one-fourth of its board of directors residig in Fort
Worth,and
IV engages primarily in the building, repair, rental or sale of housing
for low income individuals and families C"low"income households),or
(2) a nonprofit organIzation that develops housing for low income households
as a primary activity to promote commuruty-based neighborhood
revitalization m the City of or Worth,and
2
(B) has a satisfactory record in leasing,acquiring,,ba ld or rehabilitating residential
property and selling the property to low income households for the two years
immediately preceding the application,and
(C) demonstrates financial and management capacity to complete projects on the
property after acquisition,and
(D) has the capability, upon conveyance of the property, to obtam, insurance to cover
liabilities that may anse out of holding and developing,the property; and.
(E) has a designated person autlionzed by its beard of directors as signatory ry on behalf
of the orgariization,
Housing development as a pnwary activity. A nonprofit organ zat on is
considered to develop housing for low income households as a "Primary activity" or
"J engaged pn ari d' in housing development t act vit for low come households,if it.
(A) has a corporate purpose of developing and managing, affordable housing for
low income households as,stated n its articles of incorporation or bylaws, and
(B) more than 50% of its budget or actual expenditures is related to housing
development activities for low income households;or
(C) has, a comprehensive or, strate 91 ic, revitalization or redevelopment pl which is
ap roved,r " , or acknowledged b the Cif d includes the provision of
housing development activities for low income households a major,strategy
4 Low income households.1 households. Individuals and/or families whose annual incomes
do not exceed 80%of the m an come for the area with adjustments for family size,as
detenruned and updated by the US Department of Housing and Urban Development
3
Affordable housing. Housing is considered affordable i the monthly hour
cost does not exceed 3,0% of the household's monthly gross income. For hn a uy
.housing cost includes the payment of principal,interest,taxes,and insurance, For renters,
it means the, t of rent paid not to exceed the Fair Market Rent for comparable units
in the area as determined by HUD For,multi-family projects, at least twenty percent of
the u.ta should he affordable to low income households.
Tax resale deed witholut warranty. The legal instrument used by the City to
transfer fer its interest and that, of all the other taxing entities m the property to eligible
housing nonprofit orgamzation pursuant to a ordmance.
Tax appraisal value. The value of specific parcel of property 'ete a by
the Tarrant Appraisal DI'strict as of January l of the year e prop a conveyed to
eligible housing nonprofit organization ton or by an independent certified appraiser
Costs and expenses. Costs and expenses shall mean the costs and expenses as
provided m Sections 34 02 and 34 06 of the Texas Property Taxi cede.
9 Application fee a non-refundable $100 00 fee charged l by the City to
process a application of'an of' eligible housing, nonprofit org&wation for the conveyance
of tax foreclosure proper n accordance this or ice'
(b) Method of sale.
I The City may sell eligible propel to an eligible housing nonprofit orgaruzation
for the development of low income housing for an amount that is less than the lesser art:
A) the market value specified in the judgment of foreclosure,or
(B) the total amount of'judgments ag * st the property;
4
In general., the propel shall be transferred to an ch `ale housing nonprofit
organization, for an amount equal to 20% of the tax appraisal value of the property plus
cosh and expenses. Provided, the Real Property Management Division of the
Engineering Department may 'n extraordinary circumstances, recd end a lugher or
owner purchase price,but in no case shall the propel be conveyer for less than the total
of the costs and expenses incurred on the property
3 All conveyance shall be approved by the City Council,
(c) Application fee.
* The City shall charge an application fee for the processing of each application for the
conveyance of eligible property
(d) Procedure of sale.
The Real Property Management Division of the Engineefing Department and the Housing
Department may develop procedures to implement tins ordinance.
SECTION 2.
Tlus ordinance shall be cumulative of all provisions of ordmances, and of the Code of the
City of Fort Worth,Texas 986).as ended,except where the provisions of i s ordinance am ITI
met is � the vis of such ordinances and such Code, in which egret confficting
provisions:of such ordinances and such Code are hereby repealed.
SECTION 3
It is hereby declared to be the intention of the City Council OW the sections, paragraphs,
sentences, clauses and phrases,of s ordinance are severable, and, if any phrase, clause,
paragraph or section of this ordinance shall be declared unconstitutional by the valid judgment or
decree of any court of competent j pct on, such unconstitutionality shall not affect any of the
5
reanammg phrases, clauses, sentences, g` h and sections of this ordffiance,, since the same
would have been enacted by the City Council without to nmrpomfion in this ordmance of y
such unconstitutional phrase,clause,sentence,paragraph or section..
SECTION
This ordinance shall take effect and be in full force and effect from and der its passage,
and it is so ordained.
APPROVED AS TO FORM AND LEGALITY
Assistant City Attorikey
DATE, -7/-) F/9Y- ..� --
0;2 PTE
—T00
7 pt 4g
6
PROCEDURE FOR THE CONVEYANCE, OF TAX FORECLOSURE
PROPERTY TO ELIGIBLE HOUSING, NONPRO
ORGANIZATIONS FOR
THE DEVELOPMENT OF LOW INCOME HOUSING PURSUANT
ORDINANCE NO.
The following procedures shall be used for transferring eligible tax foreclosure
properly to eligible nonprofit organizations pursuant to Ordinance No. W.,("the
Ordniance')
The Real Property Management M division of the Engineering Department
shall provide the f ow*
Ing
City Departments with a written notice which includes a list
of tax foreclosure properties., Development,Environmental Management, Housing, Parks
d Community Services, Transportation/Public, Work, and Water Departments, These
departments will be contacted t determine if a particular property should be retamed by
the City of Fort Worth for any reason (e.g., easements, r of way, park land, housing
programs). The Clety Departments shall have sixty days from the date of the notice,
with the option to extend for another 30 days,to request that the City retmri the property
M shall also provide all ether local taxing entities with the same list and Glow them
diirty(30)days from the date of the notice t o decide whether they need a specific piece of
property for their projects. If RPM gar,the Housing Department receives a request from a
City department or a taxing entity, the subject property 'may he released from the
a l h e list for conveyance under s ordinance until such time t is no longer needed
by the City or another taxing entity
2. Applications from nonprofit organizations for housing `initiatives, MC n ' g the
conveyance of C1`ty tax foreclosure property under the Ordinance shall he made to the
Housing Department. A nonprofit orgamzation shall pay the City a $ 0 (non-,
refundable) Application Fee for each property requemed. The application shall include
the location and description of the property being requested, the organization's
development plans (including specifications, estimated cost,, and sales price) for the
property,and the estimated time line in the marketing and sale of the property
3 The Housing Department shall determine and certify the eligibility of a non-profit
organizabon, to acquire City tax foreclosure property under Ous ordinance. Thereafter,
the Housing Department shall forward qualified applications to RPM#
4 RPM shall review the application to ven*fy availability of property and the
applicable tax foreclosure judgment and market value of the property, and determine the
amount for Much a piece of property may be conveyed. In general,the property shall be
transferred to the eligible housing nonprofit organiezatun,for an amount equal to 200/a of
the fair market value of the property as defined in the Ordinance plus costs and expenses.
11 41
Pr co
ovided,RPM,may in extraordinary circumstances remmend a tugner or lower price,
but in no case shall the property be conveyed for less than the to of the costs and
expenses incurred on the property The Tax Resale Deed Without Warranty shall include
00
the following statement: 'I'his quit claim,is made subject to, and grantee acknowledges,
the right of redemption as provided in Sections 34 05, and 34.21 of the Texas Property
Tax Code,,V T C.A."'
5 RPM shall notify the Code Enforcement Division of the City Services Department
to hold in abeyance any scheduled demolition of structure on the subject property
6 RPM shall obtam' C'ity Council's prior approval of the conveyance of the property
and the terms of conveyance.
7 It is the responsibility of the recipient organization to select the title company,
Provide any,required closing documents,pay all costs associated with closing and arrange
for the closing on the property
8. RPM shall ftirnish information to the Housing Department on each property
conveyed under this ordinance, including the name of the organization, property
description, tax apprmsal value of the property,taxes, fees and other amounts paid by the
organization for the property
9 Immediately following the date of closing, the recipient organization shall be
responsible for all maintenance of the acquired property The orgam*zation shall also start
construction or rehabilitation of the property according to its, approved plans, and in
compliance with the Housing Quality Standards set forth in 24 CFR 882.109, other
applicable federal, state and local laws and regWations as well as City Codes and
ordinances. Following completion of construction or rehab ilit, tion, the property must be
sold, leased, or used by the nonprofit organizati"on for affordable housing for low income
households. The recipient organization shall ensure that the property is used for
affordable housm* g for low 'income households for a period of at least five(5 years from
the date of its conveyance to a qualified homebuyer or issuance of certificate of
occupancy
10 The Housing Department shall monitor housmg development activities in
accordance with the terms set forth m the Ordu' mce and in this procedtae. Any violation
y, housingnonpront organization of the terms of the Ordinance and the procedure shall
W
constitute grounds for rejection of any fu on fiat by the organization to acquire
property under the Ordinance,at the discretion of the City
11 The terms and definitions used w the procedure shall be the same as defined M
the Orchnance.
12. 'The tenns, of the procedure may be amended from time to Ume by RPM and
Housing Department to ensure compliance with applicable laws and t]he Ordinance.
ADOPTED-
(Date)
r En eenng
DV*=tor,Housing Department
D* togm Department
City
"AVor a l
leation
DATE' REFERENCE NUMBER LoG NAME PAGE
7128/198 "Goo 2284, 05L W 1 of 2
SUBS ORDINANCff ESTABLISHING PROCEDURE S FOR THE CONVEYANCE OF TAX
FORECLOSURE PROPERTY TO QUALIFIED NONPROFIT ORGANIZATIONS FOR
SOW INCO E HOUSING-__
RECOMMENDAJIQN
It is recwrnrnen ed that the City Counal
1 Adopt the attached "Ordinance for the Conveyance of Tax Foreclosure Property to Eligible
Nonprofit Organizations: for the Development of Housing for Low Income Individuals and Families
Pursuant nt to Section 34 015 of the Texas Property Tax Codes'", and
2. , uth dze the City Manager to enter into interlocal agreements other taxing entities, to obtain their
1
consent of the sale method as stated in the ordinance,, end for the City Manager to be authorized as
the signatory n the Tax Resale Deed used to convey propel pursuant to the ordinance.
1
Section 34 015 of the Texas Property Tex Cede, as amended in 1997, allows municipalities to
determine the manner in which tax, fnreciosure properties can be transferred to qualified nonprofit
organizations for the development of low income housing The statute enables the City to sell the
properties to qualified nonprofit organizations without competitive b"Ids for less than the judgment
amount or the fair market value as specified in the tax foreclosure losure lawsuit judgment.
The City's current policy on the conveyance of all surplus property (including tax foreclosure property)
was shared with and approved by other local t a)dng, entities. arrant County, as a condition of' its
approval of the current policy, requirea that the City insert a "reverter clause" into the tax resale deed
for any property conveyed to nonprofit organizations for less than the Judgment amount or fair market
et
value The reverter clause states that if the property is sold to a non-profit organization vAthin five (5)
years from the date of the conveyance and it ceases to he lowincorne housing, it automafically reverts
back to the City-trustee for all the taxing entities. The reverter clause has made it extremely difficult for
in ividuel purchasers,to tain permanent mortgage financing.
The staff from the City of Fort Forth lam► and Housing Departments and the Reel Property
Management Division of the Engineering Department developed the proposed ordinance to 1
implement Sec. 34 015, 2 encourage the development of affordable housing and 3 place vacant
properties hack can the tax rolls. Adoption of the proposed ordinance will also, provide an incentives for
qualified nonprofit organizations, including the Fort Worth, lousing Finance Ccrperefion, to expand their
activities through acquisition of vacant properties, construction of new houses or rehabilitation of
existing houses. 'These activities are particularly important in revitalizing the central city neighborhoods
where affordable housing is most needs Because the proposed, deed, under this ordinance does not
include the reverter clause, it will also attract more private lending Institutions, to provide financing
assistance to low-income buyers.
city of Folil W91*1h, Tewin
admor And r-youncill 0 i
unleation
"o-'m - I I,Maw*"
DATE REFER' E,NUMBER LOG NAME PAG
7/28/9 G 2 5 2 of 2
SUBJECT ORDINANCE ESTABLISHING PROCEDURES FAR THt CONVEYANCE
FORECLOSURE TO QUALIFIED O P
LOWINCOME, HOUSING
low
The Safe and Community Development Committa endorsed the procedures in the, proposed
ordinance n April '4, 998 A copy of the procedure Is attached for additional Information o the City
Council. City staff have also provided other,local taxing entities,with a copy of the proposed ordinance,
considered their m and' requested their consent to the conveyance method stated In the
ordinance,
phis i's a city-widle program said covers all Council Districts.
FISCAL lNFQflMAj1QN&ERT`lE_IQM
The Finance Director certifies ghat his action Will have no varier effect on City funds.
L j
Subrahted for City Mituagees ACCOUNT AMOUNT C SEC Y�
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Libby WWn 6
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EXHIBIT"B"
to
INTERLOCAL AGREEMENT
by and be een
THE CITY OF FORT WORTH,TEXAS
and
TARRANT COUNTY HOSPITAL DISTRICT
NOTICE OF CONFIDENTIALITY RIGHTS:
IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY
OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT
THAT TRANSFERS AN INTEREST' IN REAL PROPERTY BEFORE. IT IS
FILED FOR RECORD IN THE PUBLIC RECORDS,,, YOUR SOCIAL SECURITY
NUMBER OR YOUR DRIVER'S LICENSE NUM13ER
TAX RESALE DEED
WITHOUT WARRANTY
STATE, OF TEXAS §
COUNTY OF TA ANT §
THAT the City of Fort Worth, a municipal c,oirpora,tioln of Tarrant, County, Texas,
Grantor, acting, by and through Fernando Costa, its duly authorized Assistant City
Manager, acting for the use and benefit of itself"and STATE OF TEXAS, COUNTY
OF Tai T, TARRANT REGIONAL WATER DISTRICT, TA NT'
COUNTY HOSPITAL DISTRICT, TAIL: NT COUNTY COLLEGE DISTRICT
AND FORT WORTH INDEPENDENT SCHOOL DISTRICT, here nafter referred
to collectively as "Grantor", for and in consideration of
Dollars (S), paid to it by W-9
"Grantee", the receipt and sufficiency of which is hereby acknowledged, does convey
unto the said Grantee, all of its fight, title and interest acquired or held by the Grantor in
and to the following,described real property situated in Tarrant County, 'Texas, to wit:
Legal Description
Aka,- Address M&C No.L-
r i ne City of Fort Worth was named Grantee on its own behalf and on behalf of
the taxing entities named above in a deed dated recorded as
County Records, Tarrant County, 'texas,,on 6,
This Tax Resale Deed Without Warranty is made subject to, and Grantee
acknowledges, the right of'redemption as provided in the Texas Tax Code, v.T.C.A.
Grantee acknowledges that Grantor has not made and does, not make any
representations as to the physical condition, or any other matter affecting or related to the
property or any improvements thereon.
BY THE ACCEPTANCE OF THIS DEED, GRANTEE ACKNOWLEDGES
AND AGREES THAT GRANTOR HAS NOT MADE, DOES NOT MAKE AND
SPECIFICALLY NEGATES AND DISCLAIMS ANY REPRESENTATIONS,
WARRANTIES, PROMISES, COVENANTS, AGREEMENTS, OR GUARANTIES
OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS OR
IMPLIED, ORAL OR WRITTEN, PAST, PRESENT OR FUTURE, OF, AS, TO,
CONCERNING OR WITH RESPECT TO (A) THE VALUE.,NATURE, QUALITY"
OR CONDITION OF THE PROPERTY INCLUDING, WITHOUT LIMITATION,,
THE WATER, SOIL AND GEOLOGY, (B) THE INCOME TO BE DERIVED
FROM THE PROPERTY, (C) THE SUITABILITY OF THE PROPERTY FOR
ANY AND ALL ACTIVITIES AND USES WHICH GRANTEE MAY CONDUCT
THEREON, (Di) THE COMPLIANCE OF OR BY THE PROPERTY OR ITS
OPERATION WITH ANY LAWS, RULES, ORDINANCES OR REGULATIONS
OF ANY APPLICABLE GOVERNMENTAL AUTHORITY OR BODY, (E) THE
HABITABILITY, MERCHANTABILITY, MARKETABILITY, PROFITABILITY
OR FITNESS FOR A PARTICULAR PURPOSE OF THE PROPERTY, (Fl) THE
MANNER OR QUALITY OF' THE CONSTRUCTION OR MATERIALS, IF ANY,
INCORPORATED INTO THE PROPERTY, (G) THE MANNER, QUALITY,
STATE, OF REPAIR OR LACK OF REPAIR OF' THE PROPERTY, OR (H) ANY
OTHER MATTER WITH RESPECT TO, THE PROPERTY, AND
SPECIFICALLY, THAT GRANTOR HAS NOT MADE, DOES NOT MAKE AND
SPECIFICALLY DISCLAIMS ANY REPRESENTATIONS REGARDING
Aka: Address 2 M&C No,L-
COMPLIANCE WITH ANY ENVIRONMENTAL PROTECTION, POLLUTION
R LAND USE LAWS, RULES, REGULATIONS, ORDERS OF
REQUIREMENTS, INCLUDING SOLID WASTE, AS DEFINED Y THE U, S.
ENVIRONMENTAL PROTECTION AGENCY REGULATIONS ACT 40 C,*F,*R,
.BART 261, OR THE DISPOSAL OR EXISTENCE IN OR ON THE PROPERTY
OF ANY HAZARDOUS SUBSTANCE AS DEFINED BY THE
COMPREHENSIVE ENVIRONMENTAL RESPONSE COMPENSATION AND
LIABILITY ACT" OF 19809 AS AMENDED11, D REGULATIONS
PROMULGATED THER UNDER. GRANTEE FURTHER ACKNOWLEDGES
THAT IT IS NOT RELYING ON ANY INFORMATION I ROVI ED, OR T01 BE
PROVIDED BY GRANTOR RELATING TO THE PROPERTY.Y. AS A
MATERIAL PART' OF THE, CONSIDERATION FOR THIS DEED, GRANTOR
AND GRANTEE AGREE THAT GRANTEE IS. 'TAKING THE PROPERTY "AS
is"' ""'SITI-I ANY AND ALL LATENT AND PATENT DEFECTS AND 'HAT"
THERE IS NO WARRANTY BY GRANTOR THAT THE PROPERTY IS FIT
FOR A PARTICULAR PURPOSE, GRANTEE ACKNOWLEDGES TITAN" IT IS
NOT RELYING UPON ANY REPRESENTATIONS, STATEMENTS,
ASSERTIONS OR NON-ASSERTIONS 13Y THE GRANTOR WITH RESPECT
TO THE, PROPERTY CONDITION, GRANTEE TAKES THE PROPERTY
UNVEIL THE EXPRESS UNDERSTANDING THAT THE" A NO, EXPRESS
OR IMPLIED A TI S IT IS UNDERSTOOD AND AGREED THAT THE
III AMOUNT' AND, THE SU]3SEQUENT PURCHASE PRICE HAVE BEEN
ADJUSTED TO REFLECT "I"HAT: ALL OF THE PROPERTY S SOLD BY
SELLER AND PURCHASED BY PURCHASER SUBJECT TO THE
FOREGOING, GRANTEE ACKNOWLEDGES AND ACCEPTS ALL THE
TERMS S ANT PROVISIONS Y HIS ACCEPTANCE HEREOF.,
This Tax Resale Deed Without Warranty is expressly made and accepted by
Grantee subject to y and all restrletions existing e emer is rights-of-way and
prescriptive rl lets, whether of record or not all presently recorded and validly existing
instruments, covenants conditions, zoning laws, regulations, ordinances of municipal
and other governimental authorities and reservations, including, but not limited to,
Aka: Address 3 M&C No.Lo-
minerals previously reserved or conveyed, if any, relating to the property, but only to
the extent that they are still in effect.
TO HAVE AND TO HOLD all of its right, title and interest in and to the above
It
described premises,, together with, all and singular, the rights and appurtenances thereto
in any mamier belonging unto Urantee, and assigns, forever, so that neither Grantor nor
its successors and assigns, nor any person or persons claiming under it, shall at any time
hereafter have, claim or demand any right, title or interest to the aforesaid property,
premises or appurtenances, or any part thereof When the context requires, singular
nouns,and pronouns include the plural,
IN WITNESS WHEREOF, this instrument is executed on the day of
2013.
CITY OF FORT WORTH
By:
Assistant City Manager
APPROVED AS TO FORM AND LEGALITY:
By:
Assistant City Attorney
City of Fort Worth
Please Return Recorded Deed To
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared
Fernando Costa, known to me to be the person and officer whose name is subscribed to
the foregoing instrument, and acknowledged to me that he executed the same as the act
and deed of the City of Fort Worth, a municipal corporation of Tarrant County, Texas,
for the purpose and consideration therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND, AND SEAL OF OFFICE this day of
2013.
Akan Address 4 MC No. L-
Notary Public in and for the State of Texas
Aka: Address M 1 o.L-
U o ►
. n- Worth texas
am am 0
rOa
"d Ou"Cl C,
!fat o
DATE REFERENCE NUMBER LOG
7/28/918 **G4 5LO
SUBJECT ORDINANCE ESTABLISHING PROCEDURES FOR THE CONVEYANCE F TAX
FORECLOSURE PROPERTY TO QUALIFIED NONPROFIT ORGANIZATIONS FOR
LOW IN'COM'E HOUSING
RECOMMENDATION.:
It is recommended that the City Council:
1. Adopt the attached "Ordinance for the Conveyance of Tax Foreclosure property to Eligible
Nonprofit fit rganizat'ions for the Development of Housing for Low Income Individuals and Families
Pursuant to Section 3 . 15 of the T xas Property Tax Code", and
2 Authorize the City Manager to enter into interliocal a i'reerner is other taxing entities, to obtain their
consent of the sale method as stated in the ordinance, and for the City Manager to he authorized as
the signatory on the Tax Resale Deed used to convey property pursuant to the ordinance.
Section 34.015 of the Texas Property Tux Code, as amended in 1997, allows municipalities t ,
determine the manner in which tax foreclosure properties can he transferred to qualified nonprofit
organizations for the devel pm nt of low income houausiru . The statute enables the City to sell the
properties to qualified nonprofit organizations, without competitive bids for less than the judgment
mount or the Bair market value ue as specified in the tux foreclosure lawsuit judgment.
The City's current p+ lic n the conveyance f all surplus property (incluaing t ux foreclosure property
was shared, with and approved by other local taxing entities. Tarrant County, �s � condition of its
approval of the current policy, required that the City insert a reverter clause"' into the tax resale deed
for any property conveyed to nonprofit organizations for leas than the judgment amount or fair market
valiuuo. The reverter clause states that if the property is sold to o non-profit organization within five (5),
years from the dote of the conveyance and it ceases, to he love income housing, it automatically reverts
hack to the City-trustee for all the taxing entities. The reverter c,llausie has made it extremely difficult for
individual, purchasers to obtain permanent mortgage financing.
The staff from the City of Fort "worth Law and Housing Departments and the Deal Propel
Ma,nagement Division of the Engineering Department developed the proposed ordinance to 1)
implement Sec. 34.015, 2 encourage the development of' affordable housing Fund 3 price vacant
properties hack on the tax rolls. Adoption of the proposed ordinance will also provide an incentive for
qualified nonprofit organiz tions,, including, the Fort Worth Housing Finance Corporation,, to expand their
activities, through acquisition of vacant properties, construction of nova horses or rehabilitation of
� p p
existing houses. These activities are particularly important in revitalizing the central city neighborhoods
where affordable housing is most needed. Because the proposed deed sunder this ordinan le does not
include the reverter clause, it will also attract moire private lending institutions to provide financing
assistance to low-income buyers.
co 'ForIt Worth, Texas
I ty 0j,
Aa
anti cloulge1*1 clom U"Icattoll
VD 47
I I
i DATE REFERENCE NUMBER _ ►G NAMlE PAGE
7/28/98 **G;,,l 2284 05LOW 2 of'2,
SUBJECT ORDINANCE ESTABLISHING PROCEDURES FOR THE CONVEYANCE OF TAX
FORECLOSURE PROPERTY TO, QUALIFIED NONPROFIT ORGANIZATIONS FOR
INCOME HOUSING
The Safety and C,ommiu,nity Development Committee endoirsed the procedures, in the proposed
ordinance on April 14, 1998. A copy of the procedure is attached for additional information to the City
CounciL City staff have also provided other local taxing entities with a copy of the proposed ordinance,
consl
'dered their comments and requested their consent to, the conveyance method, stated in the
ordinance.
This 'is,a city-wide program and covers aill Council Districts.
FISCAL IN FOR MAT'ION/C E RTI F'l CATI ON
The Finance Director certifies that this action wits have no material l effect on City funds.,
LW•*
Submitted for City Manageris FU ACCOUP R, AMOUNT—, CITY SECRKrA'RY
Office by: (to)
Libby Watson 6183
--d—ri gin ating Department Head-,
Jerome Walker, 7537 (morn) APPROVED 7-28-98
AddRional Information Contact*.
Jerome Walker 75'37
ORDINANCE 3
AN ORDINANCE AMENDING THE CODE OF THE CITY OF FORT
WOO (1986) BY THE, DDDTI " OF SECTION 2-13
PRESCRIBING "' O DU S FOR E CONVEYANCE OF TAX
FORECLOSURE PROPER TO ELIGIBLE HOUSING NONPROFIT
ORGANIZATIONS FOR THE DEVELOPMENT OF HOUSING FOR
LOW INCOME HOUSEHOLDS PURSUANT TO SECTION 34.015 OF
THE TEXAS ER TAX CODE; PROVIDING THAT THIS
ORDINANCE SL L E CUMULATIVE OF OTHER ORDINANCES;
PROVIDING A S I CLAUSE- D PROVIDING
EFF'ECTIVE DATE
WHEREAS, Section 34 015 of the Teas Propel Tax Code meows the govcnung body
of a municipality to provide for the tri er in which land acquire by the municipality folio o
the foreclosure of a, tax hen in favor of the municipality may he sold to eligible non rofit
orgamzations,to develop housing for low income individuals and farnifies,and
WHEREAS, they City Council desires to implement such procedure by adoption of du
ordinam e and
WHEREAS,the objectives of pleme t g,these procedures are to
I provide ,greater opportunities for decent, affordable housing to tow income
and vi oals and households,
2. revitalize existing, ne borheeds by buildi"ng homes on ae t lets and
rehabilitating deteriorated or vacant homes,and
3 generate revenues,by rehuming these properties to the tax rolls.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF FORT`FORTH,TEXAS
t
SECTION I
Chapter 2 of the Code of the City of Fort Worth (1986), as wnended is amended by
ad&mg a new Section 2-13 to read as follows.
2-13 Conveyance of fax foreclosure property to eligible housing nonproflt organizattons
for the development of low Income houslingt
(a) Definitions.
I Eligible property. Real property obtained by the City followmg the
foredo sm of a tax hen m favor of the City and other taxing entities that is capable of
being developed for low income housmg.
2. Eligible housing nonprofit organizationN A current and active nonprofit
organization which meets the following requffements.
(A) (1) a nonprofit corporation described by 26 US C. See,501(c)(3)that:
I. has been incorporated m the state of Texas,for at least one year',
11. has,a corporate purpose to develop affordable housing that is stated
m its articles of'incorporation,bylaws or charter; and
M. has at least one-fourth of its board of directors residing in Fort
Worth,and
IV engages prumanly in the building, repair, rental or sale of housing
for;low,income individuals and fam flies "tow m' corne households'),or
(2) a nonprofit organization that develops housing for low income households
as a primary activity, to promote community-based neighborhood
revitalization in the City of Fort Worth,and
2
(13) has a satisfactory record in leas &acquiring,,building or rehabilitating residential
property and selling the property to low income households for the two years
immediately preceding the application,and
(C') demons tea financial and management capacity to complete projects on the
property after acquisition,and
(D) has the capability, upon conveyance of the property, to obtain insurance to cover
liabilities that may anse,out of holding and developing the property;and
(E) has a designated person authorized by its board of directors as signatory on behalf
of the organization,
3 Housing developiment as a, primary activity. A nonprofit orgaruzation is
considered to develop housmig f o r o w n ncome households as a "'primary activity" or
"engaged pri oar ily"in housing development activities for low income households 'if it:
(A) has as a co rote purpose, of developing and managing affordable housing for
low income households as stated in its articles of incorporation or bylaws,and
(B) more than 50% of its budget or actual expenditures is related to housmg
develo ment,aefivities for low income households-or
P P
(C) has a comprehensive or strategic revitalization or redevelopment plan which is
approved,recoozed',or acknowledged by the City and mcludes,the provision of
housing development,activities for low income households as a major strategy
4 Low Income bous,eholds. Individuals and/or families whose anrival incomes
do not exceed 80%of the median'Income for the area with adjustments for family sm.as
determmed and updated by the US Department of Housing and Urban Development
#Al_=
3:
5 Affordable housing. Housing is considered affordable if the mo th y housing
cost dms, not exceed 30% of the household's monthly gross income. For homebuyers,
housing cost nic1u es,the payment ofpnnc pa,interest,taxes,andi"nsurance. For renters,
it means the amount ofrent paid not to exceed the Fair Market Rent for comparable units
in the area as determined by For multi-family projects, at least twenty"percent of
the umts,should be affordable to low income households.
6 "fax resale-deed without warranty. The legal instrument used by the City to
transfer its interest and that of all the other taxmg entittes m the property to an eligible,
housing nonprofit or; anizafon pursuant to this ordinance.
Tax appralsat val,ue. The value of a specific parcel of property as detemined by
the Tarrant Appraisal District as of January t of the year the property is conveyed to,
eligible housing nonprrobt organization or by an mdependent certified appraiser
Costs and expenses. Costs and expenses shall means the costs and expenses as
provided in Sections 34 012 and 34 016 of the Texas Property Tax code.
pllcatlon fee. a non-re le $100 00 fee charged by the City to
prods the application of eligible ho lug nonprofit t or at on for the conveyance
of tax foreclosure property in accordance with this ordinance.
(b) Method of
I The City may sell eligible props to elt bhle housing nonpYrvut or anizati+ n
for the development of low income housing for an,amount,that is less than the lesser of:
the market,value specified e ju ant of foreclosure,or
the total amount ofiudgments,against the property
4
2. general, the propel shall be transferred to an ellipble housing nonprofit
organization for an amount equal to 200/c, of the tax apprwsal value of the proper plus
costs and expenses. Provided, the deal Property g t Division of the
Engineering Department may in extraordinary cimurnstances recommend a higher or
lower purchase price,but in no case shill the proper""he conveyed for less than the total
of'the costs and expenses incurred on the,pwrperty
3 All conveyance shall he approved by the City Council,
(C) AppUcation fee*
The City shall charge an application fee for the processing u each application for the
conveyance of eligible property
d Procedure of sale,
The Real Property Management ivs on of the Engineering Department and the Housing,
Department may devel 'p"procedures to implement t1us ordinance.
SECTION 2.
Tims ordwance shall be cumulative cif all provisions u of ordmances and of the Code of the
City of Fort Worth,Texas(1986),as amended,except where the provisions of dusi ordinance M
t conflict with the provisions of such oirch=m and such Code, m wtueh event confticting
provisions of such ordinances and such Code are hereby_repealed.
SECTION 3
It is hereby doellared, to be the intention of the City Council that the sections, pwagrapbst
sentences,clauses and phrases t"' s ordinance severable,and, if y phrase,clause,sentenoe,
paragraph or section of this ordinance shall be declarW unconstitutional by the vabd Udgment or
decree of any court of emnpetent,j sctie% such unconstitutionality shall not affect any of the
5
remauM , clauses,, , paragraphs, and sections of s ordinance, since the same
would have been enacted by the City Council Without the inc*rporation m,ft ordmaxice of any
such unconstitutional phrase,clause, cep,pamgraph or section.
SECTION
This ordinatice shall take effect and be in fill force and effect from and after its passage,,
and it is so ordained.
PROVED AS TO FORM AND LEGALITY
Assistant City Attu e'
DATE,
OC
EFFECTIVE, :2--o??-
6
PROCEDURE FOR THE CONVEYANCE OF TAX FORECLOSURE,
PROPERTY TO ELIGIBLE HOUSING NONPROFIT ORGANIZATIONS FOR
THE DEVELOPMENT OF' LOW INCOME HOUSING PURSUANT TO
ORDINANCE NO,
The follow m* 8 procedures shall be used for ter ans,ferring eligible tax foreclosure
property to eligible,nonprofit orb bons pursuant to Ordmance No. cue
Ordirianct!)
I The Real Property Management (RPM) division of the Engineering Department
all provide the, followl"ng City,Deparlinentswith,a written notice Much includes a list
oIf tax foreclosure properties.Development,Environmental Management,Housing,Parks
and Cortmunity Services, Tr Works, and Water Departments. Thes,e
departments will be contacted to,determine if a,particular property sh retamed by
the City of Fort Worth for any reason(e.g., casements,right of way, park,land, housing
programs). The City Departments shall have sixty(60)days ftom the date of the notim,
wiffi the option to extend for another 30 days,,to request,that the City retam the.property
RPM sha11 also provide all,other local taxing entities with the same list and allow them
thirty(30)days from the date of the notice to dect"de whether they need a specific piece of
0
property for their projects. If RPM or,the Housing Department receives a request from a
City department or, a taxing entity,, the subject property may be released from, the
available list for conveyance under this ordinance until such time,it is no longer needed
by the City or another taxing entity
0
2. Applications from nonprofit organizations for hou g, intitiatives m' cludmg the
convey mice of City tax foreclosure property under the Ordinance shall be made to the
Housing Department, A nonprofit organization shall pay the City a $1,100 (non-
refundable)Application Fee for each property requested. The application, shall include
the location and descri'ption of the property being request:4, the orgaruzation's
development plans Oncluding, specifications, estimated cost, and sales price) for the
property,and the estimated time line in the marketing and sale of the property
3 Ile Housmg Department shall detennine and certify the eligibility of a non-profit
organization to acquim City tax foreclosure property under flus ordinance. Thereafter�,
the Housing Department shall fo ualified applications to RPM.,
4 RPM, shall review the application to v y availability of property and the
appl,is tax foreclosure j udgment and market value of the property, and determine the
amount for which,a piece of property may be conveyed. In general,the property shall be
transferred to the eligible housing nonprofit organi I zation for an amount equal to 201% of
the fair market value of the property as defined in the Ordinance;,plus costs and expenses,
Provided,RPM may in extraordinary circumstances recommend a lugher or lower price,
but in no case shall the property be conveyed for less than the total of the costs and
expenses incurred on the property The Tax Resole Deed Without Wamnty shall include
the following statement: '7his quit claim is made subject to, and gmtee acknowledges,
the right of rcdemption as provided in Sections 34 05 and 34.21, of the Texas Property
Tax Code,V T C.A.,"
51 RPM shall notify the Code Enforcement Division of the City Services Department
to hold in abed nce any scheduled demolition of structure on the subject property
Y J
6 RPM shad obtain City Council's prior approval of'the conveyance of the property
and the terms of conveyance.
7 it is the responsibility of the recipient organization to select the title company,
provide any required closing documents,pay all costs associated with closing and arrange
for the closing on the property
8. RPM shall fin-nish information to the Housing Department on each property
conveyed under this ordinance, including the name of the orgaziizatior4 property,
descri*ption,tax appraisal value of the property,taxes,fees,and other amounts paid by the
organ zation for the property
9 Immediately following the date of closingo the recipient orgamzation shall be
"ble for all,ma' anization s
responsi intenance of the acquired property The org hall also start
construction or rehabilitation of the property according to its approved plans and, in
compliance with the Housing Quality Standards set forth in 24 CFR 882.109, other
applicable federal, state and local laws and regulations as well as City Codes and
ordinances, Following completion of construction or rehabilitation,the property must be
sold,leased, or used by the nonprofit organization for affordable housing for low 'income
households. The recipient organization shall emure that the property is used for
affordable housm" s for low income households for a penod of at lemt five(5)years from
the date of its conveyance to a qualified hornebuyer or issuance of certificate of
occupancy
10 The Housing Department shall monitor housing development activities in
accordance With the terms set forth in the Ordm' ance and in this procedure. Any violation
by a housing nonprofit organization of the terms of the Ordinance and the procedure shall
constitute grounds for rejection of any future application by the organization to acquire
pro perty'under the Ordinance,at the discretion of the City
I I The to and definitions, used in the procedum shall be the same as defined M
the Ordinance.
12. The te of the procedure may be amended fmm time to time by RPM and
Housing Department to ensure compliance with applicab�le laws and the Ordm' ance.
ADOPTED$
(Date)
DI"rector,,Engmeen"ng Department N"rector,Housmg Department