HomeMy WebLinkAboutIR 9044INFORMAL REPORT TO CITY COUNCIL MEMBERS
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To the Mayor and Members of the City Council
No. 9044
Page 1 of 1
SUBJECT: Construction Loan not to Exceed $1,500,000.00 to Woodmont
Apartments, Ltd
The Housing and Economic Development Department received a request from Woodmont
Apartments, Ltd., for a loan not to exceed $1,500,000.00 from City of Fort Worth HOME funds.
Woodmont Apartments, Ltd. is a partnership consisting of NRP Woodmont Apartments and Wind
Terrace, Inc., a nonprofit affiliate of the Fort Worth Housing Authority. The request for subordinate
financing is for the new construction of a 252 unit rental complex for families located at 1029 Oak
Grove Road and SE Loop 820, Fort Worth, Texas 76115. The project site consists of 14 acres.
The total project cost is $27,952,214.00.
Staff recommends a loan of an amount not to exceed $1,500,000.00 from HOME funds. This
project provides a leverage ratio of 1 to 19 and will produce 11 units that will be affordable to
families making 60% or less of the Area Median Income (AMI).
The interest rate will be 3% with no interest accruing for the first three years. Interest will begin
accruing no later than year three (3) or when 90% of the apartments have been leased for 90
days. Interest will be paid biannually, subject to available cash flow. Repayment of principal and
any accrued interest will be due no later than thirty -eight (38) years from the date of execution of
the contract. The HOME funds will be secured by a subordinate Deed of Trust on the real
property. Other conditions of the contract include minority and woman -owned business
participation in accordance with City policy.
The applicant has provided copies of project support letters from the Southland Terrace
Neighborhood Association, as well as other residents.
The site is located in Council District 8.
If you have any questions on this Informal Report, please contact Jay Chapa at ext. 5804.
Date A. Isseler
City Manager
ISSUED BY THE CITY MANAGER FART VJn2TW T=VAQ