HomeMy WebLinkAboutResolution 4907-02-2018 A Resolution
NO. 4907-02-2018
SUPPORTING A HOUSING TAX CREDIT APPLICATION FOR PALLADIUM FAIN
STREET, COMMITING DEVELOPMENT FUNDING,AND DETERMINING THAT
PALLADIUM FAIN STREET CONTRIBUTES MORE THAN ANY OTHER DEVELOPMENT
TO THE CITY'S CONCERTED REVITALIZATION EFFORTS OF THE RIVERSIDE
NEIGHBORHOOD EMPOWERMENT ZONE
WHEREAS,the City's 2017 Comprehensive Plan is supportive of the preservation,improvement,
and development of quality affordable accessible rental and ownership housing;
WHEREAS, the City's 2013-2018 Consolidated Plan makes the development of quality
affordable accessible rental housing units for low income residents of the City a high priority;
WHEREAS, Palladium Fain Street, Ltd., an affiliate of Palladium USA, has proposed a
development for affordable multifamily rental housing named Palladium Fain Street to be located at the
northwest corner of Fain Street and Kings Highway in the City of Fort Worth;
WHEREAS, Palladium Fain Street, Ltd. has advised the City that it intends to submit an
application to the Texas Department of Housing and Community Affairs ("TDHCA") for 2018
Competitive (9%) Housing Tax Credits for Palladium Fain Street apartments, a new complex consisting
of approximately 120 units, of which at least ten percent(10%)of the total units will be Rental Assistance
Demonstration units and at least twenty-five percent (25%) of the total units will be market rate units;
WHEREAS, TDHCA's 2018 Qualified Allocation Plan("QAP")provides that an application for
Housing Tax Credits may receive seventeen (17) points for a resolution of support from the governing
body of the jurisdiction in which the proposed development site is located;
WHEREAS, the QAP also states that an application may receive one (1)point for a commitment
of development funding from the city in which the proposed development site is located;
WHERAS, the QAP also provides that an application may qualify for an additional two(2)points
if a development is explicitly identified in a resolution as "contributing more than any other to concerted
revitalization efforts" of a municipality;
WHEREAS, the City created Neighborhood Empowerment Zones ("NEZ") in accordance with
Chapter 378 of the Texas Local Government Code beginning in 2001 in order to promote affordable
housing and economic development in the designated zones, and currently has twenty (20) NEZs (M&C
G-12897). All of the City's NEZs are included in the City's annual Comprehensive Plan as part of its
goal of revitalizing central city neighborhoods and commercial districts (2017 Comprehensive Plan, Part
III, Chapter 10:Economic Development);
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WHEREAS, the Palladium Fain Street apartments are located in the Riverside NEZ created by
the City in 2003; and
WHERAS, the City has determined that the application for Palladium Fain Street apartments
submitted to TDHCA by Palladium Fain Street, Ltd. qualifies as the development contributing more than
any other to the concerted revitalization efforts of the City in the Riverside NEZ.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH, TEXAS:
The City of Fort Worth, acting through its City Council, hereby confirms that it supports the
application of Palladium Fain Street, Ltd. to the Texas Department of Housing and Community Affairs
for 2018 Competitive (9%) Housing Tax Credits for the purpose of the development of Palladium Fain
Street apartments to be located at the northwest corner of Fain Street and Kings Highway (TDHCA
Application No. 18064), and that this formal action has been taken to put on record the opinion expressed
by the City Council of the City of Fort Worth.
The City of Fort Worth, acting through its City Council, additionally confirms that it will commit
to fee waivers in an amount not exceed $2,500.00 to Palladium Fain Street, Ltd. conditioned upon receipt
of Housing Tax Credits. The City Council also finds that the waiver of such fees serves the public purpose
of providing quality,accessible,affordable housing to low and moderate income households in accordance
with the City's Comprehensive Plan and Action Plan, and that adequate controls are in place through the
City's Neighborhood Services Department to carry out such public purpose.
The City of Fort Worth, acting through its City Council, hereby identifies Palladium Fain Street
apartments (TDHCA Application No. 18064) as the development in the 2018 Competitive (9%) Housing
Tax Credit Application round that contributes more than any other to the concerted revitalization efforts
of the City in the Riverside Neighborhood Empowerment Zone, and that this formal action has been taken
to put on record the opinion expressed by the City Council of the City of Fort Worth.
The City of Fort Worth, acting through its City Council, further confirms that the City has not first
received any funding for this purpose from the applicant, affiliates of the applicant, consultant, general
contractor or guarantor of the proposed development or any party associated in any way with the applicant,
Palladium Fain Street, Ltd.
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Adopted this 131" day of February, 2018. �A OF ..O
ATE T
By: aE-k
onald P. Gonzales,Assist City SecretaryS
ORTWO T
Columbia Renaissance Square II, L.P.
Proposed Columbia Renaissance Square II - Senior - Council District 8
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 2/13/2018 Resolution Nos. 4906-0z-201,8, 49q?-02-7201,89 ,
8 49.08-02=20'18
DATE: Tuesday, February 13, 2018 REFERENCE NO.: G-19229
LOG NAME: 192018 RESOLUTIONS 9PERCENT HTC
SUBJECT:
Consider and Adopt Resolutions of Support for 2018 Competitive Housing Tax Credit Applications,
Approve Commitments of Development Funding, Determine Which Developments Contribute More Than
Any Other to the City's Concerted Revitalization Efforts, and Make Related Determinations (COUNCIL
DISTRICTS 4 and 8)
RECOMMENDATION:
It is recommended that the City Council:
1. Acknowledge the receipt of requests for City support for applications to the Texas Department of
Housing and Community Affairs for 2018 Competitive (9%) Housing Tax Credits from various developers;
2. Consider and adopt the attached Resolutions of Support for 2018 applications for Competitive (9%)
Housing Tax Credits for the three proposed multifamily housing developments listed below to be located
at various sites throughout the City;
3. Approve fee waivers in an amount not to exceed $2,500.00 for each of the developments listed below
as the City's commitment of development funding and find that such fee waivers serve the public purpose
of providing quality, accessible, affordable housing for low to moderate income households, in accordance
with the City's Comprehensive Plan and Annual Action Plan, and find that adequate controls are in place
through the Neighborhood Services Department to carry out such public purpose;
4. Determine that Columbia Renaissance Square II Senior and Palladium Fain Street are the
developments that contribute more than any other to the City's concerted revitalization efforts in the
Neighborhood Empowerment Zones in which they are located; and
5. Determine that the Columbia Renaissance Square II Senior development is specifically allowed to be
located in a census tract that has more than 20 percent Housing Tax Credit units per total households and
that the development is consistent with the City's obligation to affirmatively further fair housing.
DISCUSSION:
On November 7, 2017, the City Council adopted a policy for City support of applications to the Texas
Department of Housing and Community Affairs (TDHCA) for Noncompetitive (4%) and Competitive (9%)
Housing Tax Credits and for City commitments of development funding (M&C G-19149). This year the City
received five applications from developers requesting Resolutions of Support for proposed tax credit
developments in Fort Worth. Staff has reviewed the applications for consistency with the City's policy.
Two applications, The Somerset at Golden Triangle (4315 Golden Triangle Boulevard, Council District 7)
and The Terraces at Ohio Garden (4001 Ohio Garden Road, Council District 2) were withdrawn by the
Logname: 192018_RESOLUTIONS_9PERCENT HTC Page I of 3
developer, Atlantic Pacific Communities.
_Resolutions of Support:
Staff requests that the City Council consider and adopt Resolutions of Support for the following
developments as they have met the unit set-aside criteria and notification requirements outlined in the
policy. Additionally, all of these developments are located in close proximity to jobs, retail, transit and
services.
Avenue at Sycamore Park to be developed by GFH Avenue at Sycamore Park, Ltd., an affiliate of
Lakewood Property Management, LLC, to be located at 2601 Avenue J (Council District 8). The site for
the proposed development is zoned A-5, proposed to be changed to PD - Planned Development for all
uses in "D" High Density Multifamily.
Columbia Renaissance Square If Senior to be developed by Columbia Renaissance Square II, L.P., an
affiliate of New Columbia Residential, LLC, to be located at the northwest corner of Moresby Street and
W.G. Daniels Drive (Council District 8). The site for the proposed development is zoned PD - Planned
Development for all uses in "D" High Density Multifamily.
Palladium Fain Street to be developed by Palladium Fain Street, Ltd., an affiliate of Palladium USA, to be
located at the north side of Fain Street and west of Kings Highway (Council District 4) The site for the
proposed development is zoned E - Neighborhood Commercial, proposed to be changed to PD - Planned
Development for all uses in "D" High Density Multifamily.
Commitment of Development Funding_
The policy also allows a commitment of development funding at City Council discretion. This commitment
of development funding qualifies tax credit applicants for an additional point and increases the
competitiveness of their applications to TDHCA. Staff requests that City Council approve commitments of
development funding in the form of fee waivers in an amount not to exceed $2,500.00 for each
development recommended for a Resolution of Support. The fee waiver amount may be applied to (a)
building permit related fees (including Plans Review, Inspections and Re-inspection Fees); (b) Plat/Replat
Application Fees; (c) Board of Adjustment Application Fees; (d) Demolition Fees; (e) Structure Moving
Fees; (f) Zoning Fees; (g) Street/Alley and Utility Easement Vacation Application Fees; (h) Temporary
Encroachment Fees; (i) Consent/Encroachment Agreement Application Fees; Q) Urban Forestry
Application Fees; (k) Sign Permit Fees; (1) Community Facilities Agreement (CFA) Application Fees; and
(m) Street Closure Fees.
Fee waivers will be conditioned upon the development receiving an allocation of Housing Tax Credits from
TDHCA. The City's Neighborhood Services Department will be responsible for verifying that the public
purpose for the fee waivers is carried out.
Concerted Revitalization Plan:
TDHCA rules state that an application may receive additional points if the proposed development is
identified in a resolution as contributing more than any other development to a city or county's concerted
revitalization efforts. The City has created Neighborhood Empowerment Zones (NEZ) to promote
affordable housing and economic development in the designated zone. All of the City's NEZs are included
in the City's annual Comprehensive Plan as part of its goal of revitalizing central city neighborhoods and
commercial districts (2017 Comprehensive Plan, Part III, Chapter 10: Economic Development). The
Columbia Renaissance Square II Senior development is located in the Berry Hill-Mason Heights NEZ
created by the City Council in 2007 along with a strategic plan for the area. The Palladium Fain Street
development is located in the Riverside NEZ created by City Council in 2003.
Staff determined that these developments will significantly contribute to the City's ongoing revitalization
efforts in each NEZ since the recommended developments are new affordable housing for households
earning at or below 80% of Area Median Income. In addition, the increased density of this new housing
will support the new retail, office and other housing development located or being developed in each NEZ.
Logname: 192018_RESOLUTIONS_9PERCENT_HTC Page 2 of 3
Staff recommends that the City Council adopt the attached Resolutions determining that the Columbia
Renaissance Square II Senior and Palladium Fain Street developments contribute more than any other
developments to the City's concerted revitalization efforts underway in the NEZs in which they are located.
Limitations on Developments in Certain Census Tracts:
TDHCA rules state that if a proposed development will be located in a census tract with more than 20
percent Housing Tax Credit units per total households as established by the five year American
Community Survey, it will be ineligible for tax credits unless the governing body of the jurisdiction votes to
specifically allow it and also submits a Resolution to TDHCA stating that the proposed development is
consistent with the jurisdiction's federal obligation to affirmatively further fair housing.
The Columbia Renaissance Square II Senior development will be located in a census tract in which more
than 20 percent of the total households are Housing Tax Credit units. Staff recommends that City Council
vote to specifically allow this development and approve the additional determination in the attached
Resolution of Support that it is consistent with the City's obligation to affirmatively further fair housing.
All of these proposed developments are subject to all applicable City laws, ordinances, policies and
procedures including those pertaining to zoning changes and annexation. Councilmember support for
purposes of these Resolutions does not constitute approval of any required zoning change or annexation.
The proposed developments are located in COUNCIL DISTRICTS 4 and 8.
This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION /CERTIFICATION:
The Director of Finance certifies that this action will have no material effect on the City's Fiscal Year 2018
Budget. Upon approval, fees will be waived up to $2,500.00 for each development to assist in facilitating
the goals of the City's Comprehensive Plan and Annual Action Plan.
FUND IDENTIFIERS (FIDs):
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Fund Department ccoun Project Program ctivity Budget Reference # �mounj
ID ID Year Chartfield 2
FROM
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID ID Year Chartfield 2
CERTIFICATIONS:
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Aubrey Thagard (8187)
Avis Chaisson (6342)
Additional Information Contact: Chad LaRoque (2661)
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