HomeMy WebLinkAbout2009/11/03-Minutes-Fort Worth Housing Finance Corporation (FWHFC) CITY OF FORT WORTH, TEXAS
FORT WORTH HOUSING FINANCE CORPORATION
CALLED—SPECIAL SESSION
TUESDAY, NOVEMBER 3, 2009
Present:
President Kathleen Hicks
Vice President Danny Scarth
Secretary Frank Moss
Director Mike Moncrief
Director Salvador Espino
Director W. B. "Zim" Zimmerman
Director Jungus Jordan
Director Carter Burdette
Director Joel Burns (Arrived at 1:07 p.m.)
City staff:
Tom Higgins, Assistant City Manager
Vicki Ganske, Senior Assistant City Attorney
Ron Gonzales, Assistant City Secretary
Jay Chapa, Director of Housing & Economic Development Department
Mark Folden, Housing Program Manager, Housing & Economic Development Department
Other staff:
Marty Hendrix, City Secretary
LeAnn Guzman, Assistant City Attorney
Cynthia Garcia, Assistant Director, Housing & Economic Development Department
Call to Order (Agenda Item 1)
With a quorum present, President Hicks called the meeting to order for the Board of
Directors of the Fort Worth Housing Finance Corporation (Corporation) at 1:03 p.m. on
Tuesday, November 3, 2009, in the Pre-Council Chamber of the Fort Worth Municipal Building,
1000 Throckmorton, Fort Worth, Texas, with Director Burns temporarily absent.
Approval of Minutes of the September 1, 2009
Meeting (Agenda Item 2)
President Hicks opened the floor for a motion on the approval of the minutes of the
Tuesday, September 1, 2009, meeting.
CITY OF FORT WORTH, TEXAS
FORT WORTH HOUSING FINANCE CORPORATION
CALLED—SPECIAL SESSION
TUESDAY, NOVEMBER 3, 2009
PAGE 2
Approval of Minutes of the September 1, 2009
Meeting (cont'd) (Agenda Item 2)
MOTION: Upon a motion made by Director Moncrief and seconded by Director Espino, the
Board of Directors voted eight (8) "ayes" and zero (0) "nays", with Director
Burns absent, to approve the Tuesday, September 1, 2009, minutes of the
Corporation as presented. The motion carried.
Written Reports: Fort Worth Housing
Finance Corporation Financial Report through
September 30, 2009 (Agenda Item 3-A)
President Hicks referenced the Financial Report through September 30, 2009, and opened
the floor for discussion on the report.
The written report was provided to the Board as a matter of information. There was no
formal action taken on the report.
Written Reports: Fort Worth Housing
Finance Corporation Heritage Park Senior
Apartments, 8500 Ray White Road (Agenda Item 3-B)
The written report provided the background on the Corporation's approval of an
$800,000 interim HOME construction loan for the subject project. The report explained that
staff had learned that Heritage Park Vista Housing Partners, Ltd., had purchased the property
during the Environmental Review period, thus making the property ineligible for the use of
HOME funds. It also stated that the City's participation in the project was required as a
condition of the award of the Tax Credits through the Texas Department of Housing and
Community Affairs.
President Hicks referenced the report and opened the floor for discussion on this issue.
Director Espino inquired if the City was still planning to participate in the project and if it
was moving forward. Mr. Jay Chapa, Director, Housing and Economic Development
Department, responded that their intent was to participate and that the developer was still moving
forward.
The written report was provided to the Board as a matter of information. There was no
formal action taken on the report.
(Director Burns assumed his place at the table).
CITY OF FORT WORTH, TEXAS
FORT WORTH HOUSING FINANCE CORPORATION
CALLED—SPECIAL SESSION
TUESDAY, NOVEMBER 3, 2009
PAGE 3
Adopt Resolution to Approve Contract with the City of
Fort Worth for $500,000.00 in HOME Funds for Infill
Development in the Terrell Heights Neighborhood,
Approve Purchase of Lots from KT Land, Ltd., and
Approve All Related Actions Required for Infill
Development (Agenda Item 4)
Mr. Jay Chapa, Director, Housing and Economic Development Department, addressed
the Board regarding the proposed resolution. He provided a brief overview of the proposed
project as follows:
• The Corporation begins infill housing in Terrell Heights Neighborhood.
• Purchase up to 11 lots from KT Land, Ltd., in area immediately around current
new construction.
• Work with Omni Bank to develop preferred home mortgage lending to
prospective buyers.
• Spur private developers to move forward with additional infill housing.
Mr. Chapa referred to an aerial view of the properties owned by KT Land, Ltd., and then
to another aerial view that depicted the lots proposed for purchase by the Corporation. He then
transitioned to a slide that reflected two different facades of current homes by Neighborhood
Homes and KT Land and advised that the current sales price was $100,000.00 for a home with
1,158 to 1,268 square feet and a one car garage. Mr. Chapa then explained the proposed terms as
follows:
• City provides the Corporation HOME funds for the acquisition and construction
of homes in the Terrell Heights area.
• The Corporation to purchase lots for a negotiated amount.
• The Corporation enters into a construction contract with a builder to construct
homes that are in compliance with the historic overlay and proposed zoning.
(HFC will issue RFP for builder).
Mr. Chapa provided the Board with the following breakdown of estimated costs for the
property:
• Lots—Average cost $5,500.00 per lot.
• Closing costs - $1,000.00 - $2,000.00 per lot.
• Cost to construct - $79,300.00 - $135,000.00.
$61.00 - $78.00 a square tout - 1.280 to 1,850 square feet.
• Sales price of HFC homes based on appraised value.
CITY OF FORT WORTH, TEXAS
FORT WORTH HOUSING FINANCE CORPORATION
CALLED—SPECIAL SESSION
TUESDAY, NOVEMBER 3, 2009
PAGE 4
Adopt Resolution to Approve Contract with the City of
Fort Worth for $500,000.00 in HOME Funds for Infill
Development in the Terrell Heights Neighborhood,
Approve Purchase of Lots from KT Land, Ltd., and
Approve All Related Actions Required for Infill
Development (cont'd) (Agenda Item 4)
Mr. Chapa concluded his presentation by stating that staff recommended approval of the
resolution to:
o Accept the HOME funds from the City of Fort Worth.
o Allow for the purchase of up to eleven lots from KT Land, Ltd., and
o Begin request for proposal process to select builder.
o Begin construction of five homes.
President Hicks opened the floor for discussion on this issue. She referred to a question
raised by Director Moss a few weeks ago and asked if residents who made more than the area
median income would be eligible to purchase the homes.
Mr. Chapa stated that they would not be eligible to purchase the first five (5) homes. He
added that if the Corporation saw a market of non-qualified buyers, the Corporation could come
back to the Board for approval to spend Corporation funds and not federal funds to be able to
move forward with building a product that did not have to be sold to buyers making under the
eighty percent (80%) or less of area median income.
Director Moss asked if the first five (5) lots would be on the same street. Mr. Chapa
responded by stating this had not been determined yet, but the Corporation would try to have as
many as possible on the same street and also adjacent to the current homes. Director Moss stated
that it would be very important to have a concentration of these buyers so that the people moving
in did not feel as if they were pioneers. He asked if there would be some concerted effort to
encourage a rehabilitation of the existing properties as the newer homes were built. Mr. Chapa
stated that the Corporation was working with Southeast Fort Worth, Inc., who was soliciting
grants from banks to start doing some of the rehabilitation. He added that one of the lots did
have an existing home and therefore the structure would be rehabilitated. He also noted that the
Corporation was talking to various groups about the rehabilitation of homes and that there was
currently a Request for Proposal (RFP) out for HOME funds and staff was hopeful for some
response for this project to the RFP.
Thcre being no further discussion. President Hicks opened the floor for a motion.
CITY OF FORT WORTH, TEXAS
FORT WORTH HOUSING FINANCE CORPORATION
CALLED—SPECIAL SESSION
TUESDAY, NOVEMBER 3, 2009
PAGE 5
Adopt Resolution to Approve Contract with the City of
Fort Worth for $500,000.00 in HOME Funds for Infill
Development in the Terrell Heights Neighborhood,
Approve Purchase of Lots from KT Land, Ltd., and
Approve All Related Actions Required for Infill
Development(cont'd) (Agenda Item 4)
MOTION: Upon a motion made by Director Moncrief and seconded by Director Espino, the
Board voted nine (9) "ayes" and zero (0) "nays", to approve Resolution No.
FWHFC 2009-12. The motion carried.
Adopt Resolution Authorizing Payment of up to
$50,000.00 for Maintenance and Repair of White Lake
Dam (Agenda Item 5)
Mr. Mark Folden, Housing Program Manager, Housing and Economic Development
Department, addressed the Board regarding the proposed resolution. He provided two different
aerial views of the location with the first aerial view reflecting the location at a broader view and
the other aerial view that reflected a closer view. He explained that the closer view indicated in
red where the Montessori School was located and the area blue was the Corporation's White
Lake property. He provided an additional area view that showed the dam and advised of the
current status and recommendation for this property as:
• Received a letter from the Texas Commission of Environmental Quality about repairs
needed at White Lake Dam.
• City is working with Freese and Nichols on city dam issues.
Mr. Folden continued his remarks by advising the Board of the safety review of the
location as reflected below:
• Consultant likely to recommend that excess vegetation be removed.
• Cost
• Consultant fee: $20,800.00
• Vegetation removal: $25,891.20
• TOTAL $46,691.20
• Staff recommendation
o Amend the Corporation's budget to pay up to $50,000.00 for consultant and
remove vegetation.
President Hicks opened the floor for discussion on this issue.
CITY OF FORT WORTH, TEXAS
FORT WORTH HOUSING FINANCE CORPORATION
CALLED—SPECIAL SESSION
TUESDAY, NOVEMBER 3, 2009
PAGE 6
Adopt Resolution Authorizing Payment of up to
$50,000.00 for Maintenance and Repair of White Lake
Dam (cont'd) (Agenda Item 5)
Director Scarth expressed concern relative to the East Side Montessori School down
stream from the dam and advised that the Board had to be proactive to ensure the dam did not
leak.
President Hicks asked staff what the plan was for the property. Director Scarth
responded by stating that had been three (3) proposals were received thus far, none of which had
gone anywhere as yet. He advised that the property was originally built in the 1940s or 1950s
for dairy farming.
Director Moncrief inquired about the vegetation removal and asked why the vegetation
along the dam was being removed. Mr. Folden responded by stating the trees were causing
problems because of the roots and potentially weakening the dam structure.
President Hicks stated that she would be interesting in hearing the proposals for this
property and whether it was something that the Board should consider selling. She asked staff if
the property was purchased with federal funds.
Mr. Jay Chapa, Director of the Housing and Economic Development Department, stated
that the property was purchased with Corporation funds.
Director Scarth stated that he spoke with the neighborhood about this issue and advised
that the neighborhood received quite a bit of money when the landfill contract was extended a
few years ago and that he encouraged them to engage an architect or planner and come up with
some ideas that the neighborhood would like to pursue. He added that a few proposals had been
brought to the neighborhood without any real enthusiasm or acceptance from the neighborhood.
Director Burdette asked if the Board owned the minerals and if so, had they been leased.
Senior Assistant City Attorney Vicki Ganske stated that the Board owned little pieces of
the minerals but that the Board did not own the minerals for the whole tract.
Director Zimmerman asked for clarification of the letter from the Texas Commission on
Environmental Quality (TCEQ) relative to needed repairs and if that meant removal of trees or
some other issue.
CITY OF FORT WORTH, TEXAS
FORT WORTH HOUSING FINANCE CORPORATION
CALLED— SPECIAL SESSION
TUESDAY, NOVEMBER 3, 2009
PAGE 7
Adopt Resolution Authorizing Payment of up to
$50,000.00 for Maintenance and Repair of White Lake
Dam (cont'd) (Agenda Item 5)
Mr. Chapa advised that in order to do the evaluation of the dam, the trees would have to
be removed for the TCEQ to perform an analysis.
Director Zimmerman inquired if there would be further consultant fees and Mr. Chapa
responded that he did not think so and that this was the extent of the cost for the owner of the
property which was the Corporation.
Ms. Cynthia Garcia, Assistant Director, Housing and Economic Development
Department, explained that the TCEQ had been looking at all the dams in the City of Fort Worth
and that the letter had also gone to the City to look at all the City's dams. She clarified that when
the City received the letter it was noted that it was not City property but Corporation property.
She stated that the City had already hired Freese and Nichols to look at the City's dams.
President Hicks stated that as a future agenda item she would be interested in the zoning
of the property. She added that she understood the neighborhood's concern, but if property
could not be redeveloped, she could not understand why the Corporation would not sell the
property. She asked Director Scarth if the neighborhood was more interested in a single family
development.
Director Scarth stated the neighborhood was more interested in the property being a
church, a corporate campus or commercial retail.
Director Burdette pointed out that if the property was to be redeveloped there had to be
concern about the water flow.
There being no further discussion, President Hicks opened the floor for a motion.
MOTION: Upon a motion made by Director Scarth and seconded by Director Jordan, the
Board voted nine (9) "ayes" and zero (0) "nays", to approve Resolution No.
FWHFC 2009-13. The motion carried.
Adopt Resolution to Hire Outside Counsel to Assist
with the Sale of The Villas of Eastwood Terrace (Agenda Item 6)
Mr. Jay Chapa. Director. Housing and Economic Deyclopmcnt Department, addressed
the Board regarding the proposed resolution. He advised that the resolution requested that the
CITY OF FORT WORTH, TEXAS
FORT WORTH HOUSING FINANCE CORPORATION
CALLED—SPECIAL SESSION
TUESDAY, NOVEMBER 3, 2009
PAGE 8
Adopt Resolution to Hire Outside Counsel to Assist
with Sale of The Villas of Eastwood Terrace (cont'd) (Agenda Item 6)
Board approve up to $20,000.00 to hire outside counsel selected by the City Attorney to assist
the Corporation with the transaction of selling the Villas of Eastwood to the Fort Worth Housing
Authority. He added that HUD advised that the Corporation hire an attorney familiar with this
type of transactions. He stated that Senior Assistant City Attorney Vicki Ganske had the names
of specific attorneys that had been recommended from various sources and she planned to meet
with them and make a selection.
Senior Assistant City Attorney Ganske advised that the Fort Worth Housing Authority
(Authority) was planning to assume the loan which was insured by the Federal Housing
Administration and in order for the process to be smooth, it was strongly recommended by the
Authority that the Corporation hire outside counsel experienced and familiar with these kinds of
loan assumptions.
President Hicks opened the floor for discussion on this issue.
Director Moss stated that this property was in his district and as a result of discussions on
this issue it was agreed that once the property was built the Board would transfer the ownership.
Director Moss made a motion, seconded by Director Espino, that the resolution be adopted.
Director Jordan stated that he noticed on all of the resolutions that the term "...decent,
safe and affordable quality housing..." was used and asked if the terminology was changing
from"...quality, affordable, accessible housing...".
Senior Assistant City Attorney Ganske stated that it was very old terminology that was
reflected in previous resolutions. Director Jordan pointed out that the Board had been
characterized quite frequently as creating terms in describing things and thought the Board
needed to be consistent.
Senior Assistant City Attorney Ganske stated that it was a term that came out of the
Affordable Housing Task Force and that the "decent, safe and affordable quality housing"
terminology was old language and was reflected in the Board's bylaws.
Director Moncrief inquired if the bylaws should be changed to which Senior Assistant
City Attorney Ganske responded that she did not believe it needed to be changed. Director
Moncrief stated that "quality, affordable, accessible housing" needed to be the Board's language
and pointed out that the language �k'as reflected in ether documents adopted by the City Council.
CITY OF FORT WORTH, TEXAS
FORT WORTH HOUSING FINANCE CORPORATION
CALLED—SPECIAL SESSION
TUESDAY, NOVEMBER 3, 2009
PAGE 9
Adopt Resolution to Hire Outside Counsel to Assist
with Sale of The Villas of Eastwood Terrace (cont'd) (Agenda Item 6)
Senior Assistant City Attorney Ganske advised that in other resolutions she had included
"...quality, affordable, accessible, housing..."but it had been dependent on the project.
There being no further discussion, President Hicks opened the floor for a motion.
Director Moncrief asked Director Moss and Director Espino if they would accept an
amendment to the resolution to change the language to "quality, affordable, accessible housing"
to which they concurred.
MOTION: Upon a motion made by Director Moss and seconded by Director Espino, the
Board voted nine (9) "ayes" and zero (0) "nays", to approve Resolution No.
FWHFC 2009-14 as amended. The motion carried.
Adopt Resolution Authorizing the Purchase of 3601
Hardy Street (Agenda Item 7)
Mr. Jay Chapa, Director, Housing and Economic Development Department, addressed
the Board regarding the proposed resolution. He provided two aerial views of the location in
District 2 which reflected the property's adjacency to Diamond Hill Jarvis High School. He also
provided three (3) pictures that reflected the condition of the outside of the property as well as
two (2) pictures that reflected the extensive vandalism and graffiti inside the building.
Mr. Chapa provided the following recommendation of staff:
o Authorize an option agreement with the owner to purchase 3601 Hardy Street for
$120,000.00 plus closing costs.
o Close on the property once all federal regulations are completed.
Mr. Chapa concluded his remarks by stating that the next steps after closing were to
request federal funds from the City for the demolition of the building and preparing the property
for infill development.
President Hicks opened the floor for discussion on this issue.
Director Espino advised that this property was the former Jarvis Heights Nursing Home
located by the Diamond Hill Community Center. Diamond Hill Library and Diamond Hill Jarvis
CITY OF FORT WORTH, TEXAS
FORT WORTH HOUSING FINANCE CORPORATION
CALLED— SPECIAL SESSION
TUESDAY, NOVEMBER 3, 2009
PAGE 10
Adopt Resolution Authorizing the Purchase of 3601
Hardy Street (cont'd) (Agenda Item 7)
High School. He added that the property would be demolished to make room for single-family
homes.
There being no further discussion, President Hicks opened the floor for a motion.
MOTION: Upon a motion made by Director Espino and seconded by Director Zimmerman,
the Board voted nine (9) "ayes" and zero (0) "nays", to approve Resolution No.
FWHFC 2009-15. The motion carried.
Executive Session (Agenda Item 8)
President Hicks stated that she had been advised there was no need for an executive
session to discuss the following items:
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
concerning any current agenda item;
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 Corporation 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 and/or
Reports (Agenda Item 9)
President Hicks opened the floor on requests for future agenda items. No requests were
made by Board members.
President Hicks stated that she was interested in the zoning designation for the White
Lake Dam and what could be done with the property.
CITY OF FORT WORTH, TEXAS
FORT WORTH HOUSING FINANCE CORPORATION
CALLED— SPECIAL SESSION
TUESDAY, NOVEMBER 3, 2009
PAGE 11
Adiourn (Agenda Item 10)
With no further discussion, President Hicks adjourned the called — special session of the
Fort Worth Housing Finance Corporation Board at 1:27 p.m. on Tuesday, November 3, 2009.
These minutes approved by the Fort Worth Housing Finance Corporation Board of
Directors on the_2nd_day of February , 2010.
APPROVED:
Kathleen Hicks
President
ATTEST:
Frank Moss
Secretary
Prepared and respectfully submitted by:
a,
Ronald P. Gonzales
Assistant City Secretary