HomeMy WebLinkAboutIR 89556
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The purpose of this Informal Report is to provide City Council with information regarding the propose MI
loan to Fort Worth Affordability, Inc. in an amount not to exceed $2,200,000 from City HOME funds.
Mayor and Council Communication is • the June 17, 2008, City Council Agenda for consideration.
Fort Worth Affordability, Inc., (FWAI) has requested subordinate financing in an amount not to exceed
$2,200,000 to assist in the purchase and rehabilitation of the Spring Hill Apartments located at 3 100
Hamilton Drive and the Spring Glen Apartments located at 3200 Saint Juliet Street. The Spring Glen
Apartments has 176 units and the Spring Hill Apartments has 254 units. The complexes are currently low
income tax credit financed projects and have three years remaining on their respective Land Use Restriction
Agreement from the Texas Department of Housing and Community Affairs. FWAI is a 501(c) (3) non
profit corporation affiliated with the Fort Worth Housing Authority. These two complexes will include the
last 36 replacement units required under the agreement for the redevelopment of the Ripley Arnold Public
Housing site. The construction period is anticipated to take 12 months and should be completed by the
second quarter of 2009.
The total project cost will be $6,120,091 including the City's HOME funds. The loan of $2,200,000 from
HOME funds contributes $5,116 per unit towards the total per unit cost of $14,233. The leverage ratio for
the HOME funds is I to 2.8 and will produce 155 HOME assisted units. The interest rate will be set at the
Applicable Federal Rate, adjusted annually with a minimum interest rate of five percent. FWAI intends to
apply for a new allocation of Low Income Housing Tax Credit in the near future. The City's loan will be
repaid five years from the execution of the contract or when the future low income housing tax credits are
received and new financing is in place. The loan will be conditioned on a receipt of a satisfactory Phase I
environmental review, Other conditions of the contract include minority and women owned business
participation in accordance with City policy and compliance with all rules and regulations associated with
HOME funds.
The sites are located in the West 7th/University NEZ and COUNCIL DISTRICT 7. Should you have any
questions, please feel free to contact Jerome Walker at 817-3929-7537.
Dale A. Fisseler P.E.
City Manager
ISSUED BY THE C" MANAGER FORT WORTH, TEXAS
SPRING HILL SPRING GLEN
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