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HomeMy WebLinkAboutResolution 4908-02-2018 A Resolution NO. 4908-02-2018 SUPPORTING A HOUSING TAX CREDIT APPLICATION FOR AVENUE AT SYCAMORE PARK AND COMMITTING DEVELOPMENT FUNDING 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, GFH Avenue at Sycamore Park, Ltd. an affiliate of Lakewood Property Management, LLC,has proposed a development for affordable multifamily rental housing named Avenue at Sycamore Park to be located at 2601 Avenue J in the City of Fort Worth; WHEREAS, GFH Avenue at Sycamore Park, 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 the Avenue at Sycamore Park apartments, a new complex consisting of approximately 154 units, of which at least ten percent (10%) of the total units will be dedicated for Rental Assistance Demonstration units and at least thirty five percent(35%)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; and 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. 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 GFH Avenue at Sycamore Park, Ltd. to the Texas Department of Housing and Community Affairs for 2018 Competitive(9%)Housing Tax Credits for the purpose of the development of the Avenue at Sycamore Park apartments to be located at 2601 Avenue J (TDHCA Application No.18267), 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 GFH Avenue at Sycamore Park, Ltd. conditioned FUTWORTH 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, 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, GFH Avenue at Sycamore Park, Ltd. Adopted this 13th day of February, 2018. ATT S By: 2 onald P. Gonzales, As ' nt City Secretary FoRT%bRTH Columbia Renaissance Square II, L.P. Proposed Columbia Renaissance Square II - Senior - Council District 8 N R E NA I S S,A N' E +r 1 114 r t 15W-*E J i a 287 170 114 i AR MF M 4 „ 81 fi = _ 26 ARM i� t,"— Ei w _ y A 121 360 199 26 ' ;, i • " , . " a '. - 183 77 Q 10 a . • . s , , 1 , r , " " , 199 121 proposed Site 1 1 , 1 " . ♦ _ 1 " }-1 {� +y . 183 180 60 �� , t . t r " _1 1* 'ice ►'�• . 180 ' 303 ' 1^ 183 AW Am ' _ 377 87 60 Ir - V, . n1b kkt, 7P �r r_ f... _{ .-.f GRAYS`S ,. Columbia Renaissance Square II-Senior E Palladium at Fain St Council District 4 l E �. 87 -== $ Proposed site tAr , c rc s1. I ,a District 4 n, ,R i r F _ 0 ;--<111 If A - ,moi AIMIII L Ile I � �11- r Palladium at Fain Street • � i Rf I r r a� rN. �y t� Proposed site 620 V4 District 8 jr b k folio r . IL._ _ + . IisM s�'•� s+. �r �+ Y� _ � fie;. ' 17 WrAi k City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 21.1312018 Resolution Nos.4906-0272018, 4907 &.49p$ 02;201&t .. 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 11 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 II 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 11 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 MSEC does not request approval of a contract with a business entity. FISCAL INFORMATION I 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): TO Fund Department ccoun Project JProgram ctivity Budget Reference # moun ID ID Year (Chartfield 2) FROM JIF-u—ndil Department Accoun 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) Logname: 192018 RESOLUTIONS_9PERCENT HTC Page 3 of 3