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HomeMy WebLinkAbout2009/04/07-Minutes-HEDC CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE APRIL 7, 2009 Present: Council Member Jungus Jordan, Chairman (left the meeting at 2:05 p.m.) Council Member Carter Burdette, Vice Chairman Mayor Mike Moncrief(left the meeting at 2:05 p.m.) Mayor Pro tem Kathleen Hicks Council Member Salvador Espino Council Member Danny Scarth Council Member Frank Moss Council Member Joel Burns City Staff: Tom Higgins, Assistant City Manager Vicki Ganske, Assistant City Attorney Marty Hendrix, City Secretary Jay Chapa, Director of Housing and Economic Development Department Dolores Garza, Economic Development Specialist, Housing and Economic Development Department Cynthia Garcia, Assistant Director, Housing and Economic Development Department Other City Staff in Attendance: Fernando Costa, Assistant City Manager(arrived at 1:45 p.m.) Carl Smart, Executive Assistant to the City Manager Jerome Walker, Deputy Director, Housing and Economic Development Department Ardina Washington, Economic Development Manager, Housing and Economic Development Department Karen Meunier, Program Manager, Housing and Economic Development Department Henry Day, Senior Management Analyst, Housing and Economic Development Department Ossana Hermosillo, Business Development Coordinator, Housing and Economic Development Department Mark Folden, Business Development Coordinator, Housing and Economic Development Department Charlie Price, Planning Manager, Housing and Economic Development Department Guests: Cecilia Esparza, with the United Community Centers CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE APRIL 7, 2009 Page 2 of 28 With a quorum of the committee members present, Chairman Jungus Jordan called the meeting of the Housing and Economic Committee to order at 1:14 p.m., on Tuesday, April 7, 2009, in the Pre-Council Chamber of the Fort Worth Municipal Building, 1000 Throckmorton, Fort Worth, Texas 76102. Approval of Minutes of the March 6, 2009, Housing and Economic Development Committee (Agenda Item 2) Chairman Jordan opened the floor for a motion on the approval of the minutes. MOTION: Upon a motion made by Council Member Scarth and seconded by Mayor Pro tern Hicks, the Committee Members voted eight (8) "ayes" and zero (0) "nays", to approve the minutes of the March 6, 2009, Housing and Economic Development Committee meeting. The motion carried unanimously. Consideration of Written Reports: Quarterly Update on the Proposed Federal Neighborhood Stabilization Program (Agenda Item 3-A) This agenda item was received as a matter of information. There was no discussion on this item. Briefing on HUD Stimulus Grants to be Administered by the Housing and Economic Development Department (Agenda Item 4) Mr. Jay Chapa, Director of Housing and Economic Development, spoke before the committee on the HUD Stimulus Grants to be administered by the Housing and Economic Development Department that come directly to the City. He clarified that these were not the funds that would be going to the state that would have to be applied for by the City. He explained these dollars were entitlement dollars that came directly to the City and were administered by his department. He advised that they were going to prepare an amended action plan for the current year. He emphasized that these dollars were different from the dollars that will be talked about later in the meeting, which was the City's action plan for next year. Mr. Chapa explained that the Stimulus Funding was for the following: • Homelessness Prevention and Rapid Re-Housing Program (HPRP) 52.7 mil. • CDBG (S 1.79 million) CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE APRIL 7, 2009 Page 3 of 28 Briefing on HUD Stimulus Grants to be Administered by the Housing and Economic Development Department (cont'd) (Agenda Item 4) • Neighborhood Stabilization Program ($6.3 million) Mayor Pro tem Hicks requested clarification on whether these funds were over and above what the City currently received. Mr. Chapa reiterated that this funding was current year funding and not next year's funding. Mr. Chapa provided more details about the HPRP as follows: • Homelessness Prevention and Rapid Re-Housing Program under the American Recovery and Reinvestment Act of 2009 • Fort Worth Awarded: $2,746,929.00 • Eligible uses: • Financial Assistance • Relocation & Stabilization Services • Data Collection & Evaluation (HMIS) • Administrative Cost (Max 5% Total) • Financial Assistance • Short term rental (less than 3 months) • Medium term rental (4 months to 18 months) • Deposits, utility & security • Utility payments • Moving costs • Vouchers—Motel/Hotel • Time Frame o HUD Notice Published March 19, 2009 o Application due May 18, 2009 o Substantial Amendment due May 18, 2009 o HUD notification July 2, 2009 o Subgrantee agreements signed September 30, 2009 0 24 months to spend 60% of funds 0 36 months to spend 100% of funds o Will require additional reporting to Recovery.gov website and through Homeless Management Information System (HMIS) Mr. Chapa presented the next steps in the process as follows: • Notify City Council (April 7) CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE APRIL 7, 2009 Page 4 of 28 Briefing on HUD Stimulus Grants to be Administered by the Housing and Economic Development Department(cont'd) (Agenda Item 4) • Initiate amendment to Consolidated Action Plan • Consult with the Mayor's Advisory Commission on Homelessness • Consult with the Community Development Council (April 8) • Work with non-profit partners and Tarrant County Continuum of Care Mayor Moncrief spoke about the portion regarding the City's 10-year homelessness plan and he explained that he felt that it conformed to the plan. He also added that it would fit in with the housing first initiative and the permanent supportive housing that was basically the nucleus of that plan. He added that even though it had a fast fuse, he was confident that they would work in a timely fashion and maximize the use of these dollars to help the City with the homeless population. Council Member Burdette requested clarification on the use of the funds and whether they could be used on the homelessness program as already devised, since they were received from HUD. He questioned whether a separate program would have to be developed in order to separately account for these funds. Mr. Chapa stated that these funds could be used for the homelessness program; however, the City did have to account for them separately in the City's internal systems. Council Member Burdette asked again if the funds could be roll into the plan that already existed. Mr. Chapa indicated that there was a two prong attack, one of which was for prevention to keep people from being moved out of their existing apartments or houses that were in payment arrears. He stated the second piece was the rapid rehousing piece where people were placed in supportive housing. Mayor Moncrief reiterated that the funds did have to be accounted for separately. Council Member Burdette indicated that these funds would be a great supplement to what funding had already been placed in the plan. Council Member Scarth requested clarification on the process for the individuals in the continuum, i.e., if they would have to make application with the City or did the City have the ability to make this decision. Mr. Chapa indicated that the City staff was working towards trying to develop what that recommendation would be. He added that there were a couple of programs that were engaged in trying to keep people from loosing their housing; therefore, there might be a piece that would focus on that issue. He added whether that involved an RFP process or if there were so few of them, the City staff would just do a recommendation for a direct grant to them. Mr. Chapa stated that the other piece, which would be similar to the CDC process, was where an RFP would be developed for the rapid rehousing piece and permanent supportive housing. He added that they would be short-term RFPs due to the fact that all of the agreements CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE APRIL 7, 2009 Page 5 of 28 Briefing on HUD Stimulus Grants to be Administered by the Housing and Economic Development Department(cont'd) (Agenda Item 4) have to be completed by September. Council Member Scarth requested clarification as to whether the contracts had to come before the City Council. Mr. Chapa indicated that they did. Mr. Chapa added that the whole recommendation would have to come before the City Council. He pointed out that the Council had to approve it by May 12 in order for it to be turned into HUD by the 18'h. He advised also of the public notice requirements. Mayor Pro tern Hicks stated that the City Council knows that throughout the City and beyond that people were struggling. She indicated that there was a finite amount of time to get the word out to the public. She stated that even last week she and Deputy Director Jerome Walker were at the Shamblee Library where citizens were indicating that they needed assistance. She requested that the City staff use various communication tools to get the word out to the citizens. She pointed out that the funds were going to be needed throughout the City and that when the City received these funds, all of the funds needed be used. Chairman Jordan commended the Mayor and the work of the Homeless Committee, the City Council and City staff for the use of these funds in the area of homelessness and pointed out these funds were utilized in other areas. He stated that they have been applied in areas of transportation and the Council and the staff had tended to be visionary and have addressed plans that were long reaching and have shown they know how the next dollars should be spent. He added that by the same token, that same prioritization would help the City Council through the budget process of knowing what to do when the City had one less dollar in other areas. Mayor Pro tern Hicks questioned whether Mr. Chapa was going to explain what the Neighborhood Stabilization Program consisted of or what those funds could be used for. She asked if there were going to be any specifics given. Mr. Chapa explained that the staff did not have the full rules associated with the CDBG funds. He indicated that the staff had been notified that the City would be receiving about $1.8 million additionally in CDBG funds. He pointed out that the projects that would receive the preference were projects that had to be completed within 120 days of the grant agreement. He added that basically there were four months to turn around contracts for use of the dollars. He indicated that staff felt the rules might be a little bit different and they have the overall ARIA requirements of trying to put people to work, etc. He pointed out that this process was going to require additional reporting. Mr. Chapa indicated that the staff was waiting on the timeline for the guidance. Mr. Chapa stated that the staff was planning internally on how those dollars could specifically be used. He stated that they were talking with the Transportation and Public Works Department on the use of the funds for sidewalk improvements and the handicap ramp improvements that had been discussed previously and where there �'as a backlog of that type of improvement. He emphasized again the major issue CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE APRIL 7, 2009 Page 6 of 28 Briefing on HUD Stimulus Grants to be Administered by the Housing and Economic Development Department (cont'd) (Agenda Item 4) was how fast the dollars had to be turned around. Mr. Chapa stated that the City needed to make sure they could fit into those identified timeframes. Council Member Espino commended the City staff for thinking about neighborhood side walks and the handicap ramp improvements. He referenced the briefing that had been made to the Council on the funding that was necessary for these improvements. He indicated that the figure was $42 million for a 20-year period of time to address the sidewalk issued. He encouraged the use of the funds for this purpose and pointed out the particular need to put in sidewalks or improve sidewalks to and from the area schools. He stated that there was $4 million in the Safe Pathways Program in the 2004 Capital Improvement Program and in the City's budget there was funding for sidewalk maintenance. He emphasized the need for them if the City wanted to promote healthier lifestyles. He commended the staff for pursuing the funding for those items. Council Member Burns indicated that he agreed with Council Member Espino in addressing some of the City's shortcomings in the neighborhood sidewalks. He added that he also wanted to see if the City staff could explore potential use of the CDBG funds for improvements in the day labor program. He pointed out that currently it was not located in a very good place physically and it warranted some improvements. He added as more and more people find themselves without jobs there would be more and more availability for day labors and the people that wanted to use them. He felt the City needed to be mindful of that situation as the City goes forward as a way of directly impacting people's ability for bringing home money for the day, feed their kids and for whatever other expenses they may have. Mr. Chapa indicated that staff would investigate the use of the funds for that purpose. Chairman Jordan added that with the prioritization by staff knowing where the City would spend the next dollar was insuring the tax payers' dollars and money was efficiently and effectively used and the Council appreciated that effort. Mayor Pro tern Hicks added that she also felt the use of the funds for the sidewalks was a great idea. She also suggested the use of the funds for lighting because the lack of lighting related to the issue of crime issues and concerns especially in low income areas. She requested that if the staff could also try to roll in that item, she felt it would be great. Mr. Chapa's presentation on the CDBG Stimulus Allocation was as follows and the discussion by the committee was held previously: CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE APRIL 7, 2009 Page 7 of 28 Briefing on HUD Stimulus Grants to be Administered by the Housing and Economic Development Department(cont'd) (Agenda Item 4) • $1,796,412.00 allocated • Must give preference to projects that can award contracts based on bids within 120 days of the HUD Grant Agreement • Will require Amendment to City's Action Plan(Public Notice, etc.) • Will require additional reporting to national www.recovery.go website • HUD's specific guidance on timeline not yet published Program Options were as follows: • Staff is working with City Departments to discuss projects that could meet 120-day requirement • Neighborhood sidewalk improvements • Handicap ramp improvements to sidewalks in targeted low-moderate income areas • Other options yet to be identified Mr. Chapa presented the next steps in this process as follows: • HUD publishes notice & guidance • Consult with Community Development Council • Prepare draft action plan amendment • Obtain City Council Approval of Proposed uses of funds • Submit action plan amendment • Obtain HUD approval, execute grant agreement & implement projects Mr. Chapa spoke about the NSP Update as follows: • Significant Marketing of NSP continues • Local HUD office finalized the proposal and crafted contract agreement • Contract agreement executed March 31" • Program must be implemented within 21-days of contract agreement execution Mr. Chapa concluded his presentation. Chairman Jordan opened the floor for questions and/or discussion. CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE APRIL 7, 2009 Page 8 of 28 Briefing on HUD Stimulus Grants to be Administered by the Housing and Economic Development Department(cont'd) (Agenda Item 4) Council Member Espino requested to know when the City would go live on the Neighborhood Stabilization Program. Mr. Chapa indicated that it was going to be in two weeks. Council Member Espino indicated that the staff was already marketing this very well as he had been contacted by various people. He pointed out that staff had already made presentations to various professional groups. He commended staff for getting the word out about this program. He added that the theory was that in some neighborhoods or subdivisions there were foreclosed properties and so the City was providing assistance for folks to buy the properties before they do become deteriorated. He commended the staff again. There was no further presentation or discussion of this agenda item. Chairman Jordan advised that Agenda Item 6 would be considered at this time. Discussion of Challenging the Current Census Data to be Used for the Social Compact Study (Agenda Item 6) Dolores Garza, Business Development Coordinator, Housing and Economic Development Department, spoke before the committee on the challenging of the current census data to be used for the Social Compact Study. Using a PowerPoint presentation, Ms. Garza reviewed the presentation overview as follows: • Review Social Compact • Review Census Challenge Process • Next Steps She provided information on the Social Compact Study as follows: • September 2008 — Southeast Fort Worth Drilldown analysis • Traditional Methods use Census data, Claritas and private information • Determine population and buying power • Study Area— South of I-30 and East of I-35 • Social compact findings versus traditional methods found 25,000 population increase • Current stud, underw av tor the remainder of the Citv CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE APRIL 7, 2009 Page 9 of 28 Discussion of Challenging the Current Census Data to be Used for the Social Compact Study(cont'd) (Agenda Item 6) Ms. Garza spoke about the Census Challenge Program as follows: • Program Offered by U.S. Department of Commerce, Census Bureau, Population Division • On average $226 per person/year of Federal Funds is appropriated o Undercount results in loss of federal funding 0 25,000 population could result in $5.6 million o Any additional population identified in current study underway will increase potential funds Ms. Garza presented a chart titled "Successful Challenges in Texas" which showed the cities of Dallas and Houston and Lubbock County, showing their original estimate, the revised estimate and the amount added to their estimates and the impact on their federal funding which resulted in a factor of$226.30 per person/year. Mrs. Garza presented the information on the Census Challenge Program as follows: • Designed to Empower Local Governments • Census decade outcome cannot be contested. • Can only challenge estimates for years 1 through 9 of the census decade. • To revise the 2008 estimates (available in June 2009) challenge data must be submitted before October 1, 2009. She spoke about the steps to initiate the challenge to the census figures as follows: • Write a letter indicating the City's intent to challenge the Estimate. • Provide data of population change and associated estimates. • Send the letter with materials supporting the estimate change to the Census Bureau before October 1, 2009. Ms. Garza spoke before the committee on the Social Compact's Census Challenge History as follows: • Social Compact's Success n Added to Official Population • Detroit 47,700 CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE APRIL 7, 2009 Page 10 of 28 Discussion of Challenging the Current Census Data to be Used for the Social Compact Study (Agenda Item 6) • Houston 59,600 • New York City 36,100 • New Orleans 49,900 • San Francisco 34,200 • Toledo 21,800 • Miami 15,000 • City will provide data to Social Compact • Social Compact will provide o On call advice, data analysis, and review of submission materials Ms. Garza reviewed the next steps of the process as follows: • Mayor and Council Communication on April 28 requesting the authorization to enter into an agreement not to exceed $25,000 with Social Compact to provide technical assistance with the Census Challenge Program. • Submittal of Census Challenge Program data to Census Bureau Population Division Chief before October 1, 2009. • Reply from Census Challenge Program. Ms. Garza concluded her presentation. Chairman Jordan opened the floor for questions and/or discussion. Mayor Pro tem Hicks indicated that she felt this was awesome and money well spent. She pointed out what a difference social compacting made in Fort Worth. She pointed out that the development in the Masonic Home area probably would not have happened if it had not been for the results of the Social Compact Study. She felt it was also going to help the City in the Woodhaven area and other growth areas located throughout the City. Mayor Pro tem Hicks pointed out the large volume of dollars that are leaving southeast Fort Worth due to the lack of commercial development. She felt it was one of the most important tools that the City could use in order to recapture or capture those dollars. She indicated her full support for this item. Mayor Moncrief also indicated that he felt it was an invaluable tool and certainly helped to tell the story in southeast Fort Worth and throughout the City. He indicated that there was one area that he wanted to make sure the City was sensitive to in this census process and that was to make sure the City had an accurate count on the homeless population. whether it had increased CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE APRIL 7, 2009 Page 11 of 28 Discussion of Challenging the Current Census Data to be Used for the Social Compact Study (Agenda Item 6) or decreased. He added he felt an accurate number was necessary in order to work with the other partners involved in the 10-year plan. Council Member Espino also concurred in the presentation and what had been stated by Mayor Pro tem Hicks and Mayor Moncrief. He added that he had always had a question on the estimated population for Fort Worth from the census and the population figures from the North Central Texas Council of Governments. He indicated that they continued to show a loss in population in the Near Northside area. He added that he just had not seen it. He stated that if anything, he saw an increase in the population. He also pointed out the portable buildings that were used by the schools in that area. Council Member Espino indicated that he was all for this proposal. He added that the Census Committee was forming, the Complete Count Committee, and the census was coming up and the City needed to promote that it wanted an accurate count of every resident in the City of Fort Worth as it did affect the dollar amount of federal funding. He added his support for moving forward and that he concurred with the City staff in this process. Council Member Scarth requested further clarification on when the challenge to the census estimates could be done by the City. Ms. Garza explained that the 2008 estimates were coming out this June. She indicated that the City would challenge the 2008 estimates. She stated that the 2009 estimates then come out in 2010, which could then be challenged. She stated that the census would be conducted in 2010. She stated that the City could not challenge the actual census taken in 2010. She clarified that it was the estimates that could be challenged. Council Member Scarth stated that if the City had the Social Compact Study information then the City would use that to challenge the 2009 estimate. Ms. Garza stated that the City would challenge the 2009 estimates. She added that a lot of this would help the City to put down the foundation for the challenges and protocol just as New York City does and other larger cities do in order to use this challenge methodology every year. Chairman Jordan requested clarification was to whether it had ever gone the other way, i.e., the numbers were less that estimated. Ms. Garza indicated that the answer was "no", not to her knowledge. She pointed out that there have only been 143 cities that have contested their estimates, with more than 20,000 municipalities that have the opportunity to do so. She added that the census was very clear on how they wanted the data presented and the City had the means to do it correctly. Chairman Jordan commended Ms. Garza on her presentation. There was no further presentation or discussion on this agenda item. CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE APRIL 7, 2009 Page 12 of 28 Discussion of Renewing the Neighborhood Empowerment Zone Program (Agenda Item 7) Ms. Cynthia Garcia, Assistant Director of Housing and Economic Development Department, spoke before committee regarding the renewing the Neighborhood Empowerment Zone (NEZ) Program. Using a PowerPoint presentation, Ms. Garcia advised that the NEZ Tax Abatement Policy and basic incentives had been first adopted by the City Council on April 17, 2001. She stated that under Texas State Law, a tax abatement policy was effective for two-years and the City had renewed the policy every two years. She pointed out that the current NEZ Tax Abatement Policy expired on May 14, 2009. Ms. Garcia presented a color-coded map showing all of the current NEZ areas located within the City of Fort Worth. Ms. Garcia pointed out that the Tax Abatement Policy and basic incentives offered five to ten year tax abatement for qualified housing, multi-family, mixed use, commercial and industrial projects. The fee waivers included the development fees and the impact fees. The City would also provide for the release of City liens, i.e., weed liens, demolition liens, board-up liens and paving liens. Ms. Garcia advised that the proposed amendments being recommended were: Currently Only notify Neighborhood Associations or Community Based Organizations in which the project was located Proposed Change To notify Neighborhood Associations or Community Based Organizations that were within 300 feet of the proposed project. (Provides for wider notification) Currently Tax abatements were available only for real property taxes Proposed To add ability to abate taxes on personal property Ms. Garcia went over the following housekeeping items: CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE APRIL 7, 2009 Page 13 of 28 Discussion of Renewing the Neighborhood Empowerment Zone Program (cont'd) (Agenda Item 7) • Clarify that a tax abatement shall not be granted for any development project in which a building permit application has been filed with the City's Planning and Development Department, but grading and demolition of a building can occur before City Council considers the agreement to match Tax Abatement Policy. • Change "Housing Department" to Housing and Economic Development Department • Change the "Economic and Community Development Committee" to the "Housing and Economic Development Committee." Ms. Garcia reviewed the next steps of this recommendation which was to prepare a Mayor and Council Communication and Resolution for the City Council Meeting to be held on May 12, 2009. Ms. Garcia concluded her presentation. Chairman Jordan opened the floor for questions and/or discussion. Vice Chairman Burdette requested clarification on the first housekeeping item. He stated that if the City Council approves that provision then it meant that the requestor was going to have to make an application for a NEZ tax abatement before they filed for a building permit. Ms. Garcia stated that was the current process. She further explained that the housekeeping item would be to emphasize to the developer that they should not pull their building permit until the City Council had considered their tax abatement request. Vice Chairman Burdette pointed out that the wording stated a "building permit application." Ms. Garcia stated that staff was recommending that the actual pulling of building permit by the developer should not occur before the Council considered the tax abatement. Council Member Burdette pointed out that the developer would want to be able to file their building permit application. In further discussion, Council Member Burdette stated that the wording needed further correction and Ms. Garcia indicated that it would be corrected by the staff. Council Member Espino requested to go back to the color-coded map that showed all of the NEZ areas. He pointed out that there were not NEZs all over the City. As the map showed, there were no NEZs showing in District 2. He indicated that he would be happy to visit with the City staff regarding NEZs in the North Side area and also north of State Highway 121 in the Riverside area. He made references to the Six Points Urban Village, the Historic Marine Urban Village, etc. He indicated that he felt the City staff was getting the drift of his comments. CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE APRIL 7, 2009 Page 14 of 28 Discussion of Renewing the Neighborhood Empowerment Zone Program (cont'd) (Agenda Item 7) Chairman Jordan indicated that he understood Mr. Espino's comments and with the exception of the northern tier, it was pretty diverse throughout the City. Mayor Moncrief stated that from his observation what was clear was that the NEZs were doing good things but only where they were located. He added that it showed that there was a need for this tool in the tool box to be used in the northern portion of the City as well. There was no further presentation or discussion on this agenda item. Discussion of a Contract with United Community Centers for the Construction of a Community Center Located at 3101 Avenue J (Agenda Item 8) Cynthia Garcia, Assistant Director of Housing and Economic Development Department, spoke before the committee on the contract with United Community Centers for the construction of a community center located at 3101 Avenue J. Using a PowerPoint presentation, Ms. Garcia presented the following information: United Community Centers (UCC) were: Three(3)Neighborhood Centers in Fort Worth • Bethlehem Center—970 E. Humbolt(District 8) • Polytechnic Center—3101 Avenue J (District 8) ■ Wesley Center— 3600 N. Crump (District 2) Programs that were included: • After School Care • At Risk Youth Programs • Summer Day Camp • Client Intervention Program— Emergency food and clothing • Monthly Senior Supplemental program for seniors • Adult Basic Education — GED Prep; English as a Second Language instruction, Computers CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE APRIL 7, 2009 Page 15 of 28 Discussion of a Contract with United Community Centers for the Construction of a Community Center Located at 3101 Avenue J (cont'd) (Agenda Item 8) 2008 UCC service levels at three (3) centers: ■ 302 children ■ 382 youth ■ 80,000+ meals for children and youth ■ 13,564 client intervention participants ■ 69 adult literacy students History of Neighborhood Center located at 3101 Avenue J ■ 1980 — City purchased 3101 Avenue J with CDBG funds for a Neighborhood Center ■ 1981 to present — City had leased the building to UCC to operate a Neighborhood Center Ms. Garcia showed an aerial map of the Polytechnic Community Center, 3101 Avenue J location. She showed another aerial of the playground in the back of the building and the location of the old church building. She presented information on the new UCC Neighborhood Center as follows: • In 2007, UCC approached City about the rehabilitation of the center at 3101 Avenue J (City Council approved funding for the project) • Since then, the plan was expanded to build a new center • Capital campaign to fund the new center • UCC requested to purchase 3101 Avenue J to incorporate the land into the new project • Project Cost $2.6 million Ms. Garcia advised that the UCC is requesting the following: • Purchase City Land for FMV - $197,500.00 ■ December 2, 2008, City Council approved the sale subject o UCC obtaining sufficient funding for the construction of the project by M & C L-14679 • CDBG funds for construction ■ Request of$766,500.00 in CDBG Funds CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE APRIL 7, 2009 Page 16 of 28 Discussion of a Contract with United Community Centers for the Construction of a Community Center Located at 3101 Avenue J (cont'd) (Agenda Item 8) ■ City Council has approved $475,000.00 in CDBG funds under plan to renovate by M & C's C-20722 and C-22097 Ms. Garcia presented three (3) artist renderings of an overlay of the new building on the existing site, an overhead of the new building and parking lot and the new exterior of the building. She presented other artist renderings of the building's exterior elevations and also showing the center section of the building and the back of the building. Ms. Garcia advised that the new center would: Provide for increased services for: Child care—from 85 to 110 Youth services—from 91 to 116 Provide for increased client intervention services Provide for increased community rooms that are available Ms. Garcia presented the proposed CDBG contract terms as follows: • UCC must maintain the building as a Neighborhood Center for 20 years • If they fail to use the building as a Neighborhood Center for years 1 — 10, UCC must pay back the entire amount of$766,500.00. • After year 10, the CDBG funds are forgiven at a rate of 10%per year. • CDBG funds would be paid to UCC upon receiving documentation of $766,500.00 spent in eligible construction expenses. • UCC deposits funds in an escrow account • Funds cannot be withdrawn until a Certificate of Occupancy (CO) was issued for the project and proof of all liens on the project was released. • If the CO was not issued or liens were not released, the funds will be repaid to the City. Ms. Garcia presented the staff recommendations as follows: • Authorize the execution of a CDBG contract to increase the amount of CDBG funds on this project from $475,000.00 to $766,500.00 for the construction of the project under the proposed terms. CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE APRIL 7, 2009 Page 17 of 28 Discussion of a Contract with United Community Centers for the Construction of a Community Center Located at 3101 Avenue J (cont'd) (Agenda Item 8) • Risk Assessment: Minimal risk of repayment to HUD because CDBG funds will not be released until a CO is issued and the liens released. Chairman Jordan clarified with Ms. Garcia that the full funding would be going before the full Council for consideration of approval. Ms. Garcia agreed with that statement. Ms. Garcia concluded her presentation. Chairman Jordan opened the floor for questions and/or comments. Mayor Pro tem Hicks advised that in the interest of full disclosure she needed to let the City Council know that the Bethlehem Center, 970 E. Humbolt (District 8), had surveyed her attendance in the 1980's. She commended the United Community Centers for what they have done throughout the community. She pointed out that their business office was located in the Southside. She recognized Cecilia Esparza who was present at the meeting and commended her and her staff for what they are doing in the community. Mayor Pro tem Hicks explained that there had been a lot of changing demographics in the Poly area. She pointed out that she and Council Member Moss represented the Poly community. She felt this recommendation was a win-win for everyone in the area. She pointed out what UCC had done on the north side of the City. She explained that she was proud to be a part of the Junior League funding process this year that has made this center one of their signature projects and they were donating a lot of dollars for this project. She pointed out that the Council could see all of the different things that they provided to the community. Mayor Pro tem Hicks referenced what was being done in far north Fort Worth with the YMCA in District 2 and that she felt this was a similar type of project. She talked about what could be accomplished for the generations to come. She commended the City staff for moving this project forward. Council Member Burdette referenced the portion of the presentation that indicated there would be minimal risk of repayment to HUD because CDBG funds will not be released until a Certificate of Occupancy was issued and the liens released. He questioned what would occur if UCC failed to use the building for the first ten years when they were required to pay the money back. He asked if the City would have a lien on the property or what type of security would the City have in place. Ms. Garcia explained that the City would have a lien placed on the property and since they were using capital funds for this project, there would be no other liens on the property. CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE APRIL 7, 2009 Page 18 of 28 Council Member Espino also joined in on the comments made by Mayor Pro tem Hicks to commend the UCC for their accomplishments. He indicated his support for this item. This concluded the presentation and discussion on this agenda item. Executive Session (Agenda Item 9) Chairman Jordan advised that it was not necessary to adjourn into Executive Session for the following items, thus this agenda item was passed over. A. Seek the advice of its attorneys concerning the following items that are exempt from public disclosure under Article X, Section 9 of the Texas State Bar Rules, as authorized by Section 551.071 of the Texas Government Code: (i) legal issues related to contract with Fort Worth Partnership for Community Development (City Secretary Contract No. 36864); and (ii) legal issues related to any current agenda items; B. Discuss the purchase, sale, lease or value of real property, as authorized by Section 551.072 of the Texas Government Code. Deliberation in an open meeting would have a detrimental effect on the position of the City in negotiations with a third party; and, C. Discuss or deliberate negotiations relating to any economic development negotiations, as authorized by Section 551.087 of the Texas Government Code. Request for Future Agenda Items (Agenda Item 10) Council Member Moss requested a report on the NEZ program and how much had been actually spent on new construction and what the City's participation had been in the program. He added he felt it would be helpful to get this report for all of the NEZ areas. Mr. Chapa indicated that City staff was currently working on a global presentation on all of the NEZs to include the information that was requested by Council Member Moss. He added that the report should be ready in the early part of the summer in either June or July to come before the Housing and Economic Development Committee. Chairman Jordan announced that the next agenda item to be considered was Agenda Item 5, Update on the Housing Trust Fund. He added that he and Mayor Moncrief would be leaving the meeting soon and he would pass the duties of presiding committee chair to Vice Chairman Burdette. CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE APRIL 7, 2009 Page 19 of 28 Update on the Housing Trust Fund (Agenda Item 5) Mr. Jay Chapa, Director of the Housing and Economic Development Department, spoke before the committee on the status of the Housing Trust Fund. Using a PowerPoint presentation, Mr. Chapa presented the overview of the presentation as follows: • Review Housing Trust Fund Purpose & Funding Sources • Review funding use to date • Review available funding and potential projects • Update on OmniHome Central Program Mr. Chapa explained the purpose of the Fort Worth's Housing Trust Fund as follows: • Create a permanent and annually renewable source of revenue to meet, in part, the needs of the City's very low, low and medium income households. • A vehicle for addressing very low, low and medium income housing needs through a combination of funds. • To foster a mix of family incomes in projects assisted in the fund and to disperse affordable housing projects. • To preserve and maintain renter and ownership housing units which are affordable to low, very low and moderate income households. • To foster and encourage the private sector to join with the public sector to further the goals of the Housing Trust Fund Mr. Chapa explained what could be funded: • Rehabilitation—Owner Occupied • Home Improvement and Home Repair • Purchase/Rehabilitation • Rehabilitation— Multi-Family • Acquisition • Site preparation • Construction and Development soft costs • New Construction— Single Family Infill • New Construction— Multi-Family • Transitional or permanent housing for special needs population CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE APRIL 7, 2009 Page 20 of 28 Update on the Housing Trust Fund (cont'd) (Agenda Item 5) Mr. Chapa provided the sources of the Housing Trust Fund as follows: 2006/2007 2008/2009 Total CORPUS HFC Endowment $4,000,000 -- $4,000,000 Private Funds* Corpus Subtotal $4,000,000 $0 $4,000,000 REVOLVING FUND General Fund $2,000,000 $2,000,000 $4,000,000 HOME $1,750,000 $696,907 $2,446,907 CDBG $650,000 $550,000 $1,200,000 Corpus Interest $183,000 $183,000 RLF Subtotal $4,400,000 $3,429,907 $7,829,907 FUND TOTAL $8,400,000 $3,429,907 $11,829,907 Mr. Chapa presented the HTF Status Loans to Homeowners for Home Repair/Rehabilitation • 398 applications received o 6 funded 0 5 closed; construction in progress 0 2 construction bids pending 0 49 preliminary commitment (work write-ups/environmental reviews pending) 0 154 applications in processing 0 182 applications withdrawn or denied He provided the HTF Status Loans for Multi-Family Rehabilitation as follows: o Wind River • Residences at Stalcup • Heritage Park Vista Mr. Chapa reviewed the Wind River Project Description as follows: • Multi-Family rehabilitation project of the Fort Worth Housing Authority • Site: 8725 Calmont Avenue • Council District: 7 • Configuration: 1-BR 96 2-BR 72 168 units CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE APRIL 7, 2009 Page 21 of 28 Update on the Housing Trust Fund (cont'd) (Agenda Item 5) • 36 units will be designated as Ripley Arnold Replacement Housing Mr. Chapa reviewed a location map of 8725 Calmont Avenue. He showed an aerial view of the building at 8725 Calmont Avenue. Mr. Chapa presented the Wind River project as follows: • Income Eligibility o <30% AMFI 34 o <60% AMFI 134 • Rental Rates • 1-BR $212-$400 • 2-BR $212-$470 Financing • Use: Multi-Family Rehabilitation • Development Cost: $13,741,985.00 • HTF Loan Amount: $750,000.00 o Leverage 1 to 18.3 Loan Terms • Rate: 4.25% AFR • Source of Funds: HTF • Term: 24-month deferred balloon; Simple interest calculated and paid annually Contingencies • TDHCA tax credit allocation approval • Permanent lender take-out commitment Mr. Chapa then reviewed the Residences at Stalcup Project Description as follows: • Multi-Family rehabilitation project of Nu-Rock Development • 2838 Stalcup Road • Council District: 5 • Configuration: l-BR 25 2-BR 48 3-BR 19 92 units Mr. Chapa rc,iewed a location map of 3828 Stalcup Read. He also sho�kcd an aerial ►nap of the facility at 3828 Stalcup Road. CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE APRIL 7, 2009 Page 22 of 28 Update on the Housing Trust Fund (cont'd) (Agenda Item 5) Mr. Chapa provided more details on the Residences at Stalcup as follows: • Income Eligibility o < 60% AMFI 92 • Rental Rates • 1-BR $277-$634 • 2-BR $334-$762 • 3-BR $387-$882 Financing • Use: Multi-Family Rehabilitation • Development Cost: $9,000,000 • HTF Loan Amount: $450,000 o Leverage 1 to 20 Loan Terms • Rate: 4.25% • Source of funds: HTF • Term: 24-month deferred balloon; Simple interest calculated and paid annually Contingencies • TDHCA tax credit allocation approval • Permanent lender take-out commitment Mr. Chapa presented information on the Heritage Park Vista as follows: • Multi-Family new construction for seniors • Site: 16 acres, 8500 Ray White Road • • Configuration: o 1-BR 70 o 2-BR 70 140 Units He reviewed the location map of 8500 Ray White Road. He showed an aerial of the land and an artist's rendering of the Heritage Park Vista Club House. Mr. Chapa provided more information on the development as follows: CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE APRIL 7, 2009 Page 23 of 28 Update on the Housing Trust Fund (cont'd) (Agenda Item 5) Heritage Park Vista • Income Eligibility o >120% AMFI 4 o < 60% AMFI 136 • Rental Rates • 1-BR $580-$650 • 2-BR $701-$750 Loan Terms • Rate: 4.25% AFR • Source of Funds: HOME • Term: 24-month deferred balloon; Simple Interest calculated and paid annually Contingencies • TDHCA tax credit allocation approval • Permanent lender take-out commitment Mr. Chapa's presentation contained the following information on the Housing Trust fund 2007—2008 Proposed Commitments was follows: HOUSING TRUST FUND SOURCE SOURCE 2007—2009 PROPOSED COMMITMENTS General Funds Federal Funds $4,000,000.00 $3,829,907.00 USE USE OWNER REHAB Rehab Loans: Commitments/Closed/Funded $468,440.00 Rehab Loans: Preliminary Commitment(49 @$36,000.00) $1,761,467.00 Loan Loss Reserve >80.1% to 120% AMI $509,720.00 MULTI-FAMILY ACQUISITION & REHAB Gap Financing of At-Risk and Replacement Units • Residences at Stalcup (92 Units) $450,000.00 • Wind River (168 Units) $750,000.00 MULTI-FAMILY NEW CONSTRUCTION • Heritage Park Vista (140) $800,000.00 ADMINISTRATION (S 17.720.00 de-allocated for gap finance) $290,280.00 52.000,000.00 53.029,907.00 CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE APRIL 7, 2009 Page 24 of 28 Update on the Housing Trust Fund (cont'd) (Agenda Item 5) Remaining Balance $2,000,000.00 $800,000.00 Mr. Chapa advised of the following projects under construction that were multi-family as follows: Projects Under Consideration • Woodmont Apartments $1,500,000.00 • Lincoln Terrace Apartments $ 450,000.00 • Four Seasons Apartments $ 860,000.00 $2,810,000.00 Woodmont Apartments Project Description • Multi-Family new construction project — partnership between the Fort Worth Housing Authority and NRP (Developer) • Site: North East Corner of Oak Grove Road/Loop 820 • Council District: 8 • Configuration: 252 Units o 1-BR 24 o 2-BR 132 o 3-BR 96 252 Units There was a location map of the project that Mr. Chapa referenced. Lincoln Terrace Project Description • Multi-Family rehabilitation project of the Fort Worth Housing Authority • Site: 4714 Horne Street, 76107 • Council District: 7 • Configuration: o 1-BR 20 o 2-BR 38 o 3-BR 14 72 Units Mr. Chapa presented a location map of 4700 Horne Street and an aerial of the property at 4700 Horne Street. CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE APRIL 7, 2009 Page 25 of 28 Update on the Housing Trust Fund (cont'd) (Agenda Item 5) Four Seasons at Clear Creek Project Description • Multi-Family new construction for families • Site: 7 acres Oak Grove and South Race Street • Configuration: o 1-BR 14 o 2-BR 48 o 3-BR 36 98 units Mr. Chapa showed a location map of Oak Grove Shelby at South Race Street Mr. Chapa presented the OmniAmerican Update as follows: • There have been seven OmniHome Central applicants requesting total of $107,000.00 • None were processed due to credit issues. • OmniAmerican remains committed to program. • Omni and City staff were evaluating revisions to accommodate Omni's purchase rehab program for immigrant homebuyers. • Both Omni and the City would continue to be aggressive in marketing program. Mr. Chapa concluded his presentation. Chairman Jordan opened the floor for questions and/or comments. Chairman Jordan advised that there had been national news coverage regarding the refinancing mortgage scams and he requested clarification on whether there was any evidence of that happening in Fort Worth and if the Housing Division had heard anything. Mr. Chapa indicated that he had not heard of anything here locally. Chairman Jordan requested that the staff stay attuned to that situation and report back to the committee if that did occur. Mayor Pro tern Hicks indicated that she wanted to applaud the Council on the policy that they have taken over the last couple of years to see that these housing trust funds dollars were dispersed throughout the City. She added that she thought it was often that it was just taken for granted. She pointed out that she felt it showed that the City was doing things differently. Mayor Pro tem Hicks indicated that everyone saw the affordable housing piece throughout the City, not in just une area. She spoke about serving on the Quality Affordable Housing Task Force and the need to ha�v quality affordable housing near jobs and public transportation, etc. CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE APRIL 7, 2009 Page 26 of 28 Update on the Housing Trust Fund (cont'd) (Agenda Item 5) She felt the information was significant in showing a real change by the City of Fort Worth, starting with the hard lessons that the previous City Councils had to deal with on the Ripley Arnold project. She felt this should be something that the City Council did not take lightly and should continue to ensure that quality affordable housing was placed throughout the City and not just stereotyping certain areas of the City. She commended the City Council again for being fearless and pushing this forward. She referenced the information that had been provided and the diverse locations for the projects. Mayor Pro tem Hicks expressed concerns for information shown on page 4 of the presentation. She referenced the slide for the number of applications that had been received for the loans to homeowners for home repair/rehabilitation and that of the 398 applications; only six (6) had been funded. She then referenced the 182 applications that had been withdrawn or denied and 154 that were in processing. She requested the status on these applications and when they would be through the process. Mr. Chapa advised that staff was currently in the process of reviewing the process and determining how it could be streamlined in order to get some of the applications through. He stated that the City staff had the same concerns expressed by Mayor Pro tem Hicks. Mayor Pro tem Hicks emphasized that there was going to be a lot of work and funding going through the department and she did not want the City staff to loose sight of the fact that the dollars had to be utilized quickly. She added that there were a lot of people struggling that needed these funds. She requested Mr. Chapa come back during the summer months and let the Council know where the City was in getting these applications through the process. She felt the entire Council was getting calls from individuals that needed this assistance. Mayor Moncrief pointed out to the Council that when the City Council started talking about the Housing Trust Fund the economy was in different shape than today. He indicated that due to the timing, it had prepared the City for what it had to face now with a population that was using the tool as it was intended and that the projects were dispersed throughout the City. He stated that it had worked and it would continue to work. Council Member Burns requested clarification on how the OmniHome Central program was being marketed. Mr. Chapa indicated that the plan was to continue to meet with Omni to encourage them to be aggressive in marketing the program. He indicated that the City staff marketed this program to individuals that submitted applications for other programs that the City provided. Mr. Chapa stated that programs were also marketed at community events, community centers, etc. Mr. Chapa indicated that what City staff wanted to do was to encourage Omni to market the program with the City. (Mayor Moncrief and Council Member Jordan left the meeting.) CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE APRIL 7, 2009 Page 27 of 28 Update on the Housing Trust Fund (cont'd) (Agenda Item 5) Council Member Scarth requested clarification on whether the funds for housing rehabilitation could be used for foundation repair. Mr. Chapa explained that the slab foundations could not be totally repaired or totally fixed, thus these funds could not be used for that purpose. He pointed out that there would be a lot of work to stabilize the foundation and leveling of the house, but in two years the same type of problem could be experienced. Council Member Scarth also questioned whether the OmniHome Center Program was too stringent and that no one could qualify to get their loans. He suggested that the requirements be reviewed to see if they were too stringent. Mr. Chapa indicated that recent meetings had been held with Omni and this type of thing could be discussed with them and looked into. Council Member Moss asked about the credit counseling efforts. He stated that he understood that a lot of people were being turned down due to their credit not only in this program but in the whole purchasing effort. Council Member Moss requested to know if the City staff was taking the individuals that had credit problems and assisting them by placing them in the credit counseling services program or was there sufficient staff to help with that program. Mr. Chapa indicated that the City staff was doing this program on a regular basis and helping individuals with credit problems so that they could improve their credit status and meet the application requirements. Council Member Moss asked if the City had been relatively successful in bringing or would be successful in bringing some of the people back to the various programs. Mr. Chapa indicated that this was the hope of the City staff. Council Member Espino expressed appreciation to the City Council Members and City staff for the creation of the Housing Trust Fund in 2005. He joked with the City staff that back in 2005 it was staff's recommendation number 68 in the budget process. He stated that the City still had some challenges with individuals getting the filll benefits. He talked about the housing rehab of the older houses in the community. He suggested to Mr. Chapa that in order to have a direct impact with the rehabilitation of the older homes in the City, there was a need was to target certain areas of the City that really needed the rehabilitation dollars. He talked about the issue that rehabilitation of older homes continued to be a problem and associated with that was the issue of absentee landlords that would not keep up their properties. He reiterated his appreciation to the City staff for what had been done to date but added that there continued to be problems that needed attention. Vice Chairman Burdette expressed appreciation to Mr. Chapa for his presentation and advised that the economic times that the City and everyone faced today made this program even more crucial than it had been in the last several years. He looked forward to the continuation of the program. CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE APRIL 7, 2009 Page 28 of 28 Date of Next Regular Meeting— May 5, 2009 (Agenda Item 11) The next regular meeting of the Housing and Economic Development Committee would be held on Tuesday, May 5, 2009. Adiourn (Agenda Item 12) With no further presentations or discussions, Vice Chairman Burdette adjourned the regular meeting of the Housing and Economic Development Committee at 2:19 p.m., on Tuesday, April 7, 2009. These minutes approved by the Economic and Community Development Committee on the 5th day of May, 2009. APPROVED: +Us C h a an Minutes Prepared by and Attest: Marty Hendrix, Qbty Secretary