HomeMy WebLinkAboutOrdinance 20028-12-2011Ordinance No. 20028 -12 -2011
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE GRANTS FUND IN THE AMOUNT OF $100,00.00,
FROM AVAILABLE REVENUES, FOR THE PURPOSE OF A PRE - DEVELOPMENT
LOAN TO THE YWCA OF FORT WORTH & TARRANT COUNTY; 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 2011 -2012 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Grants
Fund in the amount of $100,000.00, from available revenues, for the purpose of a pre - development loan to
the YWCA of Fort Worth & Tarrant County.
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. 19911 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ordinances and appropriations are hereby expressly repealed.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:
Assistant City Attorney
ADOPTED AND EFFECTIVE: December 13, 2011
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 12/13/2011 - Ordinance No. 20028 -12 -2011
DATE: Tuesday, December 13, 2011 REFERENCE NO.: C -25374
LOG NAME: 17YWCA AFFORDABLE HOUSING DEVELOPMENT
SUBJECT:
Authorize Conditional Commitment of $750,000.00 of Program Year 2012 -2013 HOME Investment
Partnerships Program Grant Funds with the YWCA of Fort Worth & Tarrant County for a Multifamily
Housing Development to Be Located at the Intersection of NW 26th Street, Clinton Avenue and Cliff Street,
Authorize $100,000.00 of Urban Development Action Grant Funds to the YWCA of Fort Worth & Tarrant
County for the Development, Authorize Waiver of Certain Development Fees and Adopt Appropriation
Ordinance (COUNCIL DISTRICT 2)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the City Manager, or his designee, to execute a conditional commitment with the YWCA of
Fort Worth & Tarrant County, or its designated affiliate, for a subordinate forgivable loan of $750,000.00 of
HOME Investment Partnerships Program Grant funds from Program Year 2012 -2013 for the development
of a multifamily housing complex to be located at the intersection of NW 26th Street, Clinton Avenue and
Cliff Street, subject to receipt of the HOME funds and approval of the 2012 -2013 Action Plan;
2. Authorize substitution of current and prior funding years in order to meet commitment, disbursement
and expenditure deadlines for grant funds from the United States Department of Housing and Urban
Development;
3. Authorize the expenditure of $100,000.00 of Urban Development Action Grant Funds to the YWCA of
Fort Worth & Tarrant County or its designated affiliate in the form of a pre - development loan;
4. Authorize the City Manager, or his designee, to execute a conditional commitment with the YWCA of
Fort Worth & Tarrant County, or its designated affiliate, for the pre - development loan;
5. Authorize the City Manager, or his designee, to execute a contract and any related documents with the
YWCA of Fort Worth & Tarrant County, or its designated affiliate, for the pre - development loan for a one -
year term beginning on the date of execution of the contract;
6. Authorize the City Manager, or his designee, to extend or renew the conditional commitments or the
contract for up to one -year if the YWCA of Fort Worth & Tarrant County requests an extension and such
extension is necessary for completion of the development;
7. Authorize the City Manager, or his designee, to amend the conditional commitments or the contract if
necessary to achieve project goals provided that the amendment is within the scope of the development
and in compliance with City policies and applicable laws and regulations governing the use of federal
grant funds.
8. Adopt Appropriation Ordinance increasing receipts and appropriations in the Grants Fund by
Logname: 17YWCA _AFFORDABLE_HOUSING_DEVELOPMENT Page 1 of 3
$100,000.00 from available revenues for a pre - development loan to the YWCA of Fort Worth & Tarrant
County for a multifamily housing development; and
9. Authorize the waiver of the following City fees that would otherwise be charged to the developers: (i) all
building permit, plan review, inspection, and re- inspection fees, (ii) all zoning fees, (iii) all temporary
encroachment fees, (iv) all platting fees, and (v) all fire, sprinkler and alarm permit fees.
DISCUSSION:
City Staff anticipates receiving approximately $1,250,000.00 of HOME Investment Partnerships Program
(HOME) grant funds for multi - family developments in Program Year 2012 -2013 from the United States
Department of Housing and Urban Development (HUD).
The State of Texas requires that pre - applications for Low Income Housing Tax Credit (LIHTC) projects be
filed in January including any local support. In order to meet the LIHTC application deadline, the City
issued a Request for Proposals (RFP 11 -0358) for developers on October 5, 2011 to award and expend
up to $1,750,000.00 of funds consisting of (i) HOME funds for the 2012 -2013 Program Year, (ii) General
Funds in the City's Fort Worth Housing Trust Fund (HTF), and (iii) City's Rental Rehabilitation Funds.
On November 3, 2011, the YWCA of Fort Worth & Tarrant County (YWCA) submitted a response
requesting $750,000.00 of the available funds for construction costs related to the development of a four -
story, 85 unit multifamily complex to be located at the intersection of NW 26th Street and Cliff Street with
the 2600 block of Clinton Avenue. City Staff reviewed all RFP submissions and recommends the award to
the YWCA, or an affiliate, of $750,000.00 in HOME funds in the form of a subordinate forgivable loan for
eligible soft and hard costs for the development.
In addition to the HOME award, the YWCA requested a pre - development loan in the amount of
$100,000.00 and certain permit and fee waivers to assist with zoning approvals, environmental studies,
and other reasonable soft costs related to the development. Staff recommends that Urban Development
Action Grant (UDAG) funds be used for the pre - development loan. Additionally, staff recommends that
any building permit, plan review, inspection, re- inspection, zoning, temporary encroachment, platting, fire,
sprinkler, and alarm permit fees for the development be waived.
The YWCA will acquire seven vacant lots for the development site. The development will consist of one,
two, and three - bedroom units. Forty percent of the units will serve as permanent supportive housing and
60 percent of the units will be available for rent to households earning 80 percent or less of Area Median
Income (AMI) as determined by HUD. The YWCA will primarily target low income women or women with
children for the permanent supportive housing units. However, the YWCA will not exclude men or men
with children. The YWCA will provide on -site case management and supportive services that include
employment support, subsidized child care, plus mental health and substance abuse care. The complex
will include amenities such as a community room with meeting space and a common kitchen for shared
meals and cooking demonstrations. The property will also feature an on -site playground, indoor play
space, and a computer room.
As part of the financing for the development, the YWCA, or an affiliate, will submit an application for Low
Income Housing Tax Credits (LIHTC) to the Texas Department of Housing and Community Affairs
(TDHCA). Total development cost is approximately $8.4 million.
Staff recommends the following UDAG loan terms:
i. YWCA must provide at a minimum $1,000.00 of its own funds for soft costs;
ii. UDAG funds secured by a recorded Deed of Trust on the real property;
iii. One percent interest rate; and
iv. Loan term of one year. Principal and interest will be due at equity closing or, if tax credits are not
awarded, within 30 days after receipt of notification from TDHCA.
Logname: 17YWCA _AFFORDABLE_HOUSING_DEVELOPMENT Page 2 of 3
Staff recommends the following HOME loan terms:
i. Designate HOME - assisted units according to HOME regulations with a 20 Year Affordability Period;
ii. Secure payment and performance of the HOME requirements by a recorded Deed of Trust on the
real property for the length of the Affordability Period;
iii. One percent interest rate; and
iv. Loan term runs concurrently with the Affordability Period. Loan is forgiven on expiration of the
Affordability Period so long as contract terms are met.
The commitment of HOME funds is conditioned upon the following:
i. Receipt of Program Year 2012 -2013 HOME funds from HUD;
ii. Satisfactory completion of the environmental review per 24 CFR Part 58;
iii. Authorization to use grant funds from HUD; and
iv. Award of LIHTC from the TDHCA.
The HOME funds may be used for any eligible costs related to this development. The Action Plan funding
years selected may vary and be substituted based on the Principle of First In, First Out (FIFO) in order to
expend oldest grant funds first. If the 2012 -2013 Action Plan is approved, staff will seek City Council
approval for the expenditure of $750,000.00 in HOME funds for the development, which will benefit low
and very low income citizens by providing them with quality, accessible, affordable housing.
A public comment period on the intent to use HOME funds was held from November 12, 2011
to December 12, 2011. Any comments are maintained by the Housing and Economic Development
Department in accordance with federal regulations.
This project 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
budget, as appropriated, of the Grants Fund.
FUND CENTERS:
TO Fund /Account/Centers
8) GR76 539120 017206948080
8) GR76 442216 005206948000
CERTIFICATIONS:
FROM Fund /Account/Centers
$100.000.00 8) GR76 539120 017206948080
$100.000.00
Submitted for City Manager's Office by:
Originating Department Head:
Additional Information Contact:
Fernando Costa (6122)
Jay Chapa (5804)
Cynthia Garcia (8187)
Avis F. Chaisson (6342)
$100.000.00
Logname: 17YWCA _AFFORDABLE_HOUSING_DEVELOPMENT Page 3 of 3