HomeMy WebLinkAboutResolution 4967-08-2018 A Resolution
NO. 4967-08-2018
A RESOLUTION OF NO OBJECTION TO SUPPORT A HOUSING TAX CREDIT
APPLICATION FOR THE DEVELOPMENT OF THE KATY STATION LOFTS
WHEREAS, the City of Fort Worth's 2018 Comprehensive Plan is supportive of the
preservation, improvement, and development of quality, affordable, accessible rental and
ownership housing;
WHEREAS, the City of Fort Worth's 2013-2018 Consolidated Plan makes the
development of quality, affordable, accessible rental housing units for the City's low income
residents a high priority;
WHEREAS, FW Katy Station, LP, an affiliate of RMGM Developers, LLC and Fort
Worth Housing Solutions, has proposed the development of an approximately 236-unit mixed
income multifamily rental housing development named the Katy Station Lofts,located at 200 West
Vickery Street in the City of Fort Worth, which includes units affordable to households with
incomes at or below sixty percent (60%) of Area Median Income, Rental Assistance
Demonstration units, and market rate units;
WHEREAS, FW Katy Station, LP has advised the City that it intends to submit an
application to the Texas Department of Housing and Community Affairs ("TDHCA") for 2018
Non-Competitive (4%) Housing Tax Credits to finance a portion of the costs of development;
WHEREAS,the proposed development site of the Katy Station Lofts is located one linear
mile or less from another development which serves similar types of households and which
received an allocation of Housing Tax Credits or private activity bonds on July 27, 2017, and
TDHCA's One Mile Three Year Rule in the 2018 Qualified Action Plan ("QAP") requires the
governing body of the local jurisdiction to vote specifically to allow the construction of a new
development located within one (1) mile or less of a current development which received tax
credits within the last three (3) years; and
WHEREAS, the 2018 QAP also states that applications for developments that will be
located in a census tract with more than twenty percent (20%) Housing Tax Credit units per total
households as established by the five (5) year American Community Survey must be specifically
allowed by the governing body of the jurisdiction, and that the governing body must also submit
a resolution to TDHCA stating that the proposed development is consistent with the jurisdiction's
obligation to affirmatively further fair housing.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF FORT WORTH, TEXAS, THAT:
ORT WO T
1. Notice of intent to file an application for Non-Competitive (4%) Housing Tax Credits
for the development of the Katy Station Lofts has been provided to the City Council by
FW Katy Station, LP in accordance with Section 2306.67071(a) of the Texas
Government Code.
I 2. The City Council has had sufficient opportunity to obtain a response from FW Katy
Station, LP regarding any questions or concerns about the proposed development.
3. The City Council has held a hearing for the purpose of receiving public comment on
the proposed development in accordance with Section 2306.67071(b) of the Texas
Government Code.
4. Pursuant to Section 11.3(d) of the Texas Administrative Code, the City of Fort Worth,
acting through its City Council, acknowledges that the proposed development site of
the Katy Station Lofts is located one (1) linear mile or less from another development
which serves the similar household types and which received an allocation of Housing
Tax Credits for New Construction on July 27, 2017, that it has voted specifically to
allow the construction of the Katy Station Lofts and to authorize an allocation of
Housing Tax Credits for the development, 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.
5. Pursuant to Section 11.3(e) and 11.4(c)(1) of the Texas Administrative Code, the City
of Fort Worth, acting through its City Council, acknowledges that the Katy Station
Lofts will be located in a census tract that has more than twenty percent(20%)Housing
Tax Credit units per total households, that the City Council has voted specifically to
allow the construction of the development,that it has determined that the development
is consistent with the City's obligation to affirmatively further fair housing, 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.
6. After due consideration of the information provided by FW Katy Station, LP and any
public comment on the proposed development, the City Council does not object to the
application of FW Katy Station, LP to the for 2018 Non-Competitive (4%)
Housing Tax Credits for the purpose of "` .e op of the Katy Station Lofts.
Adopted this 14th day of August, 2018.
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 8/14/2018 Resolution.No. 4967-08-2018
DATE: Tuesday, August 14, 2018 REFERENCE NO.: G-19342
LOG NAME: 19KATYSTATIONLOFTSRESOLUTION
SUBJECT:
Conduct Public Hearing on the Application by FW Katy Station, LP to the Texas Department of Housing
and Community Affairs for Non-Competitive Housing Tax Credits for the Katy Station Lofts, a Tax Exempt
Affordable Housing Development to be Located at 200 West Vickery Boulevard, Waive Policy and Adopt
Resolution of No Objection to the Application, Acknowledge that the One Year, Three Mile Rule Applies to
the Proposed Development, and Make Related Determinations (COUNCIL DISTRICT 9)
RECOMMENDATION:
It is recommended that the City Council:
1. Conduct a public hearing to allow citizen comment on the application of FW Katy Station, LP to the
Texas Department of Housing and Community Affairs for 2018 Non-Competitive (4%) Housing Tax
Credits for the tax exempt development of the Katy Station Lofts, a proposed mixed use, mixed income
multifamily tax exempt development to be located at 200 West Vickery Street;
2. Waive the requirement in the Housing Tax Credit Policy for review of applications to the Texas
Department of Housing and Community Affairs that requires the Katy Street Lofts to have ten percent of
its total units dedicated as Rental Assistance Demonstration units;
3. Adopt the attached Resolution of No Objection to the application by FW Katy Station, LP to the Texas
Department of Housing and Community Affairs for 2018 Non-Competitive (4%) Housing Tax Credits for
the Katy Station Lofts, a proposed tax exempt development;
4. Acknowledge that the One Year, Three Mile Rule applies to the Katy Station Lofts and agree to
specifically allow the construction of the development and an allocation of Housing Tax Credits for it; and
5. Determine that the Katy Station Lofts are specifically allowed to be located in a census tract that has
more than 20 percent Housing Tax Credit units per total households and affirm that the development is
consistent with the City's obligation to affirmatively further fair housing.
DISCUSSION:
FW Katy Station, LP is applying to the Texas Department of Housing and Community Affairs (TDHCA) for
2018 Non-Competitive (4%) Housing Tax Credits for the development of the Katy Station Lofts, a mixed
use, mixed income multifamily tax exempt development and has requested a Resolution of No Objection
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 development will be 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.
Logname: 19KATYSTATIONLOFTSRESOLUTION Page I of 3
The Katy Station Lofts will have approximately 236 units of workforce and market rate housing. There will
be 116 market rate units, with the remaining 120 units set aside for households earning 60% or less of
Area Median Income (AMI), 15 of which will be Rental Assistance Demonstration (RAD) units. The ten
story residential building will have one- and two-bedroom units and will include a community room,
equipped business center/computer center, controlled gate access, swimming pool and fitness center.
The Katy Station Lofts is part of a Transit Oriented Development (TOD), located within 500 feet of transit.
The mixed use development, located in the Central City at the corner of West Vickery Boulevard and
South Main Street, will also include a new six story hotel, retail space, a daycare facility, and a new six
story parking garage for residents, customers and transit riders. The total development cost is
approximately $94.2 million. City TOD Bond Funds are one possible funding source in addition to tax
credits, Southside TIF funds, Council of Government (COG) funds, tax exempt bonds and private loans.
On April 19, 2018, the Board of Commissioners of Fort Worth Housing Solutions (FWHS) approved a
partnership with RMGM Developers, LLC in which FWHS will be the sole member of FW Katy Station GP,
LLC, the general partner of FW Katy Station, LP, the entity that will construct, own and manage the Katy
Station Lofts. The FWHS will act as the general contractor. The Fort Worth Transportation Authority, now
known as Trinity Metro currently owns the land on which the development will be sited and will lease it to
the partnership under the terms of a long term ground lease. While the residential building will be exempt
from property taxes, the retail space will produce sales tax revenue and the hotel will pay property taxes
as well as hotel taxes.
FW Katy Station, LP and FWHS are requesting a waiver of the City' s Policy for Review of Applications to
TDHCA for Housing Tax Credits (HTC Policy) (M&C G-19149). The HTC Policy requires, for this
development, a set-aside of ten percent of the development' s total units as RAD units in order to receive
a Resolution of No Objection from the City Council. The RAD unit set-aside was originally added to the
policy in 2016 order to assist FWHS in converting public housing units to long term, project-based rental
assistance for its clients that it needed to move out of aging public housing properties (M&C G-18664 and
M&C G-18831). However, FWHS has informed Staff that with the 15 units in this development, it has
substantially completed its requirements for one- and two-bedroom RAD units. Additionally, TDHCA
requires a Debt Service Coverage (DSC) ratio of no less than 1.15 for project financing. The 15 RAD units
result in rental revenue that sustains a 1.16 DSC ratio. Increasing the number of RAD units to 24 in order
to meet the ten percent set-aside reduces rental revenue and results in a DSC ratio of 1.14. The
residential portion of the development cannot be funded at the lower DSC ratio.
TDHCA's One Mile, Three Year Rule requires the local jurisdiction to vote specifically to allow the
construction of a new development located within one mile or less of a current development which
received tax credits within the last three years. The Katy Station Lofts will be located within one linear mile
of another development serving similar types of households which received an allocation of Housing Tax
Credits or private activity bonds for development on July 27, 2017. Staff recommends that City Council
vote specifically to allow the development of the Katy Station Lofts.
TDHCA rules also state that if a proposed development will be located in a census tract with more than
20% Housing Tax Credit units per total households as established by the five year American Community
Survey, it will be ineligible for Housing 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 Katy Station
Lofts will be located in such a census tract. Staff recommends that City Council vote specifically to allow
the development of the Katy Station Lofts and approve the additional determination in the attached
Resolution of No Objection that the development is consistent with the City's obligation to affirmatively
further fair housing.
Following the close of the public hearing, Staff requests that the City Council waive the RAD set-aside
requirements in the HTC Policy and consider the attached Resolution of No Objection to support the
Logname: 19KATYSTATIONLOFTSRESOLUTION Page 2 of 3
application for 2018 Non-Competitive (4%) Housing Tax Credits for the proposed development of the Katy
Station Lofts. The development could assist the City in fulfilling its goals under its Consolidated Plan and
Comprehensive Plan by providing quality, accessible, affordable housing for low-to moderate income
residents and supporting economic development.
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 under the Agreement to develop The Katy Station Lofts, the Fort
Worth Transportation Authority will be the real property owner and Fort Worth Housing Solutions will be
part of the ownership of the improvements. As such, the development will be exempt from paying property
taxes in the approximate amount of$250,129.00 per year.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID ID Year Chartfield 2
FROM
Fund Department ccoun Project Program ctivity Budget Reference # �mounl
ID ID Year (Chartfield 2
CERTIFICATIONS:
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Aubrey Thagard (8187)
Chad LaRoque (2661)
Additional Information Contact: Jennifer White (6213)
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