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HomeMy WebLinkAboutOrdinance 19669-05-2011Ordinance No. 19669-05-2011 AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE GENERAL FUND IN THE AMOUNT OF $250,000.00, FROM AVAILABLE FUNDS, FOR THE PURPOSE OF FUNDING THE RACE STREET LOFTS DEVELOPMENT; PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. That in addition to those amounts allocated to the various City departments for Fiscal Year 2010-2011 in the Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the General Fund in the amount of $250,000.00 from available funds, for the purpose of funding the Race Street Lofts development. SECTION 2. That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or void for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining provisions shall be and remain in full force and effect. SECTION 3. That this ordinance shall be cumulative of Ordinance No.19355 and all other ordinances and appropriations amending the same except in those instances where the provisions of this ordinance are in direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed. SECTION 4. This ordinance shall take effect upon adoption. APPROVED AS TO FORM AND LEGALITY: _~ %' ' ~ 7 G Assistant City Attorney ADOPTED AND EFFECTIVE: May 3, 2011 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 5/3/2011 -Ord. No. 19669-05-2011 DATE: Tuesday, May 03, 2011 REFERENCE NO.: **C-24884 LOG NAME: 17FY10-11 HOMEMATCH SUBJECT: Approve the Use of $614,972.50 from the Fort Worth Housing Trust Fund to Satisfy the City's Fiscal Year 2010-2011 HOME Investment Partnerships Program Match Obligations, Authorize the Transfer of $250,000.00 from the Fort Worth Housing Trust Fund to the General Fund, Authorize the Expenditure of $250,000.00 to Race Street Lofts, Ltd., for the Development of the Race Street Lofts Located at 2817 Race Street, Authorize the Execution of a Contract and Adopt Appropriation Ordinance (COUNCIL DISTRICT 2) RECOMMENDATION: It is recommended that the City Council: 1. Approve the use of $614,972.50 from the Fort Worth Housing Trust Fund to satisfy the City's Fiscal Year 2010-2011 HOME Investment Partnerships Program match obligations; 2. Authorize the transfer of $250,000.00 from the Fort Worth Housing Trust Fund to the the City's General Fund; 3. Authorize the expenditure of $250,000.00 to Race Street Lofts, Ltd., for development of the Race Street Lofts, an affordable multifamily development located at 2817 Race Street; 4. Authorize the City Manager, or his designee, to execute a contract for the development with Race Street Lofts, Ltd., fora 20 year term to run concurrently with the HOME Affordability Period; 5. Authorize the City Manager, or his designee, to amend the contract if necessary to achieve project goals provided that the amendment is within the scope of the project and in compliance with City policies and applicable laws and regulations; and 6. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations of the General Fund by $250,000.00. DISCUSSION: As part of its annual entitlement from the United States Department of Housing and Urban Development (HUD), the City is obligated each program year to match 12.5 percent of the HOME funds drawn from its HOME Treasury Account. The City's match obligation must be satisfied annually from non-federal sources used for qualified housing projects, such as donated materials, cash donations, in-kind contributions, and sweat equity.The City anticipates drawing down $4,919,780.00 in HOME funds for the current program year, therefore, its current match obligation is $614,972.50. In order to satisfy the City's match obligations and to simplify the documentation of eligible forms of match, staff proposes using City general funds directly in HOME-funded projects and programs. On March 22, Logname: 17FY 10-11 HOMEMATCH Page 1 of 2 2011, staff informed Council in Informal Report No. 9370 that it would request the transfer of $614,972.50 from the City's general fund portion of its Fort Worth Housing Trust Fund in order to meet the current year's match requirements and begin operating under this proposed change in policy. Staff recommends that $364,972.50 of these funds be used for the City's Homebuyer Assistance Program (HAP) and $250,000.00 be used for the development of the Race Street Lofts. The HAP program provides down payment and closing cost assistance of up to $14,999.00 in HOME funds to eligible homebuyers citywide. The Race Street Lofts will benefit low and very low income citizens by providing them with affordable housing. The City Council has previously approved the award of HOME funds to this project (M&C C-24290 and M&C C-24553). This transfer and expenditure will satisfy the City's match obligation for the Fiscal Year 2010-2011 HUD entitlement of HOME funds. In future years, staff will recommend that the match requirement be included in the Housing and Economic Development Department' s budget. The HAP program benefits residents in ALL COUNCIL DISTRICTS and the Race Street Lofts development is located in COUNCIL DISTRICT 2. FISCAL INFORMATION /CERTIFICATION: The Financial Management Services Director certifies that upon approval of the above recommendations and adoption of the attached appropriation ordinance, funds will be available in the current operating budgets, as appropriated, of the General Fund. FUND CENTERS: TO Fund/Account/Centers GG01 472109 0177000 GG01 539120 0177000 CERTIFICATIONS: FROM Fund/Account/Centers $250.000.00 GG01 539120 0177000 $250.000.00 R109 538070 005109007006 Submitted for City Manager's Office b~ Originating Department Head: Additional Information Contact: Susan Alanis (8180) Jay Chapa (5804) Cynthia Garcia (8187) Avis F. Chaisson (6342) $250.000.00 $250.000.00 Logname: 17FY 10-11 HOMEMATCH Page 2 of 2