HomeMy WebLinkAboutContract 49481 56 7
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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)