HomeMy WebLinkAboutResolution 5057-02-2019A Resolution
NO. 5057-02-2019
SUPPORTING A HOUSING TAX CREDIT APPLICATION FOR PALLADIUM FAIN
STREET, COMMITTING DEVELOPMENT FUNDING, AND DETERMINING THAT
PALLADIUM FAIN STREET CONTRIBUTES MORE THAN ANY OTHER DEVELOPMENT
TO THE CITY'S CONCERTED REVITALIZATION EFFORTS OF NEIGHBORHOOD
EMPOWERMENT ZONE AREA FOUR
WHEREAS, the City's 2018 Comprehensive Plan is supportive of the preservation,
improvement, and development of quality, affordable, accessible housing;
WHEREAS, the City's 2019-2023 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 International, Inc., has
proposed a development for affordable multifamily rental housing named Palladium Fain Street to be
located at 4001 Fain Street 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 2019
Competitive (9%) Housing Tax Credits for Palladium Fain Street apartments, a new complex consisting
of approximately 108 units, of which at least five percent (5%) of the total units will be Permanent
Supportive Housing units and at least ten percent (10%) of the total units will be market rate units;
WHEREAS, TDHCA's 2019 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") beginning in 2001
in accordance with Chapter 378 of the Texas Local Government Code in order to promote affordable
housing and economic development in the designated zones. The City consolidated its 20 NEZs into six
(6) NEZs in January 2019 (M&C G-19469). 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 (2018 Comprehensive Plan, Part II, Chapter 5:Housing);
FoRTWORTH
Resolution No. 5057-02-2019
WHEREAS, the Palladium Fain Street apartments are located in NEZ Area Four; 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 NEZ Area 4.
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 2019 Competitive (9%) Housing Tax Credits for the purpose of the development of Palladium Fain
Street apartments to be located at the north side of Fain Street west of Kings Highway (TDHCA
Application No. 19008), 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 to 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. 19008) as the development in the 2019 Competitive (9%)
Housing Tax Credit Application round that contributes more than any other to the concerted
revitalization efforts of the City in Neighborhood Empowerment Zone Area Four, 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.
Adopted this 12`" day of February 2019.
A
In
ORT WO0
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 2/12/2019 - Resolution Nos. 5053-02-2019, 5054-02-2019,
5055-02-2019, 5056-02-2019, 5057-02-2019, 5058-02-2019, 5059-02-2019, 5060-02-2019 &
5061-02-2019
DATE: Tuesday, February 12, 2019 REFERENCE NO.: G-19489
LOG NAME: 192019 RESOLUTIONS 9PERCENT HTC
SUBJECT:
Consider and Adopt Resolutions of Support and Resolutions of No Objection for 2019 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, 6, 7, 8 and 9)
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 2019 Competitive (9%) Housing Tax Credits from various developers;
2. Consider and adopt the attached Resolutions of Support and Resolutions of No Objection for 2019
applications for Competitive (9%) Housing Tax Credits for the 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
that receive a Resolution of Support as the City's commitment of development funding, find that the fee
waivers for these developments 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 Palladium Fain Street, Cielo Place, Sunset at Fash Place, and Avenue at Sycamore
Park are the developments that contribute more than any other to the City's concerted revitalization efforts
either in an Urban Village, a Neighborhood Empowerment Zone, or a distinct area within a Neighborhood
Empowerment Zone with a Strategic Plan; and
5. Determine that the Columbia Renaissance Square III and Southside at Broadway developments are
specifically allowed to be located in census tracts that have more than 20 percent Housing Tax Credit
units per total households and that these developments are consistent with the City's obligation to
affirmatively further fair housing.
DISCUSSION:
On November 13, 2018, 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-19421). On December
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11, 2018, the City Council amended the policy to correct the set aside of Permanent Supportive Housing
(PSH) units from ten percent to five percent of the total units in 9% tax credit projects (M&C G-19435).
This year the City received eleven applications from developers requesting Resolutions of Support for
proposed 9% tax credit developments in Fort Worth, but one application has been withdrawn by the
developer. Staff has reviewed the applications for consistency with the City's policy.
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
City's policy. Additionally, all of these developments are located in close proximity to jobs, retail, transit
and services. None of these developments are tax exempt.
Resolutions of Support, Local Development Funding, Concerted Revitalization Plan:
The following developments are also recommended to receive local Commitments of Development
Funding and are the ones that contribute more than any other to the City's Concerted Revitalization Plans:
Palladium Fain Street to be developed by Palladium Fain Street, Ltd., an affiliate of Palladium
USA International, Inc. to be located at 4001 Fain Street (Council District 4). The site for the
proposed development is zoned "PD" — Planned Development for all uses in "D" High Density
Multifamily.
Cielo Place to be developed by Cielo Place, LLC, an affiliate of Saigebrook Development, LLC
and O -SDA Industries, LLC, to be located at 3101 Race Street (Council District 9). The site for
the proposed development is zoned "MU -1" — Low Intensity Mixed -Use and "CF" — Community
Facilities. Developer is currently working with City to determine if a zoning change is required.
Sunset at Fash Place to be developed by Sunset at Fash Place, LLC, an affiliate of Saigebrook
Development, LLC and O -SDA Industries, LLC, to be located at 2504 Oakland Boulevard
(Council District 8). The site for the proposed development is zoned "CF" — Community Facilities
and "A-10" — One Family, proposed to be changed to "PD" — Planned Development.
Avenue at Sycamore Park to be developed by GFH Avenue at Sycamore Park, Ltd., an
affiliate of Ground Floor Affordable Housing, LLC, to be located at 2601 Avenue J (Council
District 8). The site for the proposed development is zoned "UR" — Urban Residential.
The proposed development will not be tax exempt.
Resolution of Support and Local Development Funding_
The following developments are also recommended to receive local Commitments of Development
Funding:
Churchill at Golden Triangle Community to be developed by Churchill at Golden Triangle
Community, L.P., an affiliate of Churchill Senior Residential, LLC, to be located in the
11000 block of Metroport Way (Council District 7). The site for the proposed development
is zoned "PD" — Planned Development for all uses in "D" High Density Multifamily.
Everly Plaza to be developed by Everly Plaza, LLC, an affiliate of Saigebrook Development,
LLC and O -SDA Industries, LLC, to be located at 1801 8th Avenue (Council District 9). The
site for the proposed development is zoned "NS" — Near Southsidle.
Resolutions of No Objection:
Staff recommends that the City Council consider and adopt Resolutions of No Objection for the following
developments as they have met the unit set aside criteria and notification requirements outlined in the
policy. None of these developments are tax exempt.
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Residences at Fairmount to be developed by NDG Fairmount Housing Partners, LTD, an
affiliate of The NuRock Companies, to be located at 2260 Hemphill Street (Council District
9). The site for the proposed development is zoned "E" - Neighborhood Commercial,
proposed to be changed to "UR" - Urban Residential.
Reserve at Risinger to be developed by Reserve at Risinger LLC, an affiliate of MVAH
Partners LLC, to be located at the southwest corner of Risinger Road and McCart Ave
(Council District 6). The site for the proposed development is zoned "C" - Medium Density
Multifamily.
Columbia Renaissance Square III to be developed by Columbia Renaissance Square III, LP,
an affiliate of New Columbia Residential, LLC, to be located at 2829 Moresby Street (Council
District 8). The site for the proposed development is zoned "PD" - Planned Development.
Southside at Broadway to be developed by FW Southside at Broadway Housing, LP, an
affiliate of OM Housing, LLC, to be located at 301 South Freeway (Council District 8). The site
for the proposed development is zoned "NS" - Near Southside.
Commitment of Development Funding:
The policy allows a local 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; 0) 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 award of 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 Urban Villages to help promote central city revitalization. They
are districts which are more compact, contain a greater mix of land uses, and give greater emphasis to
pedestrian and transit access. The City's Neighborhood Empowerment Zones (NEZs) were created to
promote affordable housing and economic development in the designated zone. Four NEZs have adopted
Strategic Plans for certain distinct areas located in the larger NEZ to guide the rebuilding neighborhoods
with compatible quality infill housing and appropriate mixed use development in commercial areas. On
January 29, 2019 the City Council amended the City's NEZ program and policies and consolidated 20
NEZ areas into six (M& Cs G-19467, G-19468 and G-19469). All of the City's Urban Villages and NEZs
are included in the City's annual Comprehensive Pian as part of its goal of revitalizing central city
neighborhoods and commercial districts (2018 Comprehensive Plan, Part II, Chapter 5: Housing, and Part
III, Chapter 10: Economic Development).
The Palladium Fain Street, Cielo Place, Sunset at Fash Place, and Avenue at Sycamore Park
developments are located either in Urban Villages created by City Council in 2002, a NEZ created by City
Council in 2019, or a distinct area within a NEZ with a Strategic Plan. Staff determined that these
developments will significantly contribute to the City's ongoing revitalization efforts in each of the Urban
Villages and NEZs in which they will be located since the recommended developments are new affordable
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housing for households earning at or below 80 per cent 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 Urban Village and NEZ. Staff recommends that the City Council adopt the
attached Resolutions determining that the Palladium Fain Street, Cielo Place, Sunset at Fash Place, and
Avenue at Sycamore Park developments contribute more than any other developments to the City's
concerted revitalization efforts underway in the Urban Villages and 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 the development, 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 III and Southside at Broadway developments will be located in census
tracts in which more than 20 percent of the total households are Housing Tax Credit units. Staff
recommends that City Council vote to specifically allow these developments, and approve the additional
finding in the attached Resolutions that they are consistent with the City's obligation to affirmatively further
fair housing.
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
approving these Resolutions does not constitute approval of any required zoning change or annexation.
The proposed developments are located in COUNCIL DISTRICTS 4, 6, 7, 8 and 9.
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 2019
Budget. Upon approval, permitting and related fees will be waived in an amount up to $17,500.00 to assist
in facilitating the goals of the City's Comprehensive Plan and Annual Action Plan.
FUND IDENTIFIERS (FIDS):
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Submitted for City Manager's Office by:
Originating Department Head:
Additional Information Contact:
Fernando Costa (6122)
Aubrey Thagard (8187)
Chad LaRoque (2661)
Logname: 192019_RESOLUTIONS_9PERCENT_HTC Page 4 of 4
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CERTIFICATIONS:
Submitted for City Manager's Office by:
Originating Department Head:
Additional Information Contact:
Fernando Costa (6122)
Aubrey Thagard (8187)
Chad LaRoque (2661)
Logname: 192019_RESOLUTIONS_9PERCENT_HTC Page 4 of 4