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HomeMy WebLinkAbout2010/06/08-Minutes-Fort Worth Housing Finance Corporation (FWHFC)CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, JUNE 8, 2010 Present: President Kathleen Hicks Vice President Danny Scarth (Arrived at 1:03 p.m.) Secretary Frank Moss (Arrived at 1:05 p.m.) Director Mike Moncrief (Arrived at 1:03 p.m.) Director Salvador Espino Director W. B. "Zim" Zimmerman Director Jungus Jordan Director Carter Burdette Director Joel Burns City staff: Tom Higgins, Assistant City Manager Vicki Ganske, Senior Assistant City Attorney Ron Gonzales, Assistant City Secretary Jay Chapa, Assistant General Manager 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 Robert Sturns, Economic Development Manager, 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 1:00 p.m. on Tuesday, June 8, 2010, in the Pre - Council Chamber of the Fort Worth Municipal Building, 1000 Throckmorton, Fort Worth, Texas, with Vice President Scarth, Secretary Moss and Director Moncrief temporarily absent. Approval of Minutes of the April 6, 2010 and April 27, 2010, Meetings (Agenda Item 2) President Hicks opened the floor for a motion on the approval of the minutes of the Tuesday, April 6, 2010 and Tuesday, April 27, 2010, meetings. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, JUNE 8, 2010 PAGE 2 Approval of Minutes of the April 6, 2010 and April 27, 2010, Meetings (Agenda Item 2) MOTION: Upon a motion made by Director Burns and seconded by Director Espino, the Board of Directors voted six (6) "ayes" and zero (0) "nays ", with Vice President Scarth, Secretary Moss and Director Moncrief temporarily absent, to approve the Tuesday, April 6, 2010, and April 27, 2010, minutes of the Corporation as presented. The motion carried. Written Reports: Fort Worth Housing Finance Corporation Financial Report through April 30, 2010 (Agenda Item 3 -A) President Hicks referenced the Financial Report through April 30, 2010, and opened the floor for discussion on the report. There was no discussion on this agenda item. The written report was provided to the Board as a matter of information. There was no formal action taken on the report. Written Reports: Memo on Granbury Apartments (Agenda Item 3 -13) President Hicks referenced the Memo on the Granbury Apartments and opened the floor for discussion on the report. There was no discussion on this agenda item. The written report was provided to the Board as a matter of information. There was no formal action taken on the report. Written Reports: Memo on Four Seasons at Clear Creek (Agenda Item 3 -C) President Hicks referenced the Memo on the Four Seasons at Clear Creek 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. There was no discussion on this agenda item. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, JUNE 8, 2010 PAGE 3 Adopt Resolution to Approve a Contract for an Interim Construction Loan of $800,000.00 through the Fort Worth Housing Trust Fund to Heritage Park Vista Housing Partners Ltd., for the Development of the Heritage Park Vista Senior Apartment Community Located at 8729 Ray White Road (Agenda Item 4) Mr. Mark Folden, Housing Program Manager, Housing and Economic Development Department, addressed the Corporation regarding the proposed resolution. Using a PowerPoint presentation, he began his presentation by showing two aerial views of the location and explained that the development was located in North Fort Worth near North Tarrant Parkway and Ray White Road. He advised the Corporation of the following project description: • Heritage Park Vista Housing Partners, LTD. o Affiliate of NuRock Development Group, Inc. • Affordable senior rental development. • 140 Units. • $14.9 million total investment. • TDHCA tax credits. Mr. Folden's next slide depicted a site plan for the property and he advised that the initial part of the plan was to build on the east part of the site, with a future Phase 2 on the west part of the site. He then provided the history of the project as follows: • 4/28/2008 Developer request for HOME funds • 6/3/2008 HFC approved request • 11/2008 Environmental Review initiated • 12/2/2008 Site purchased • 9/2009 Staff notified of property purchase; notified developer of project ineligibility • 11/3/2009 HFC notified of project ineligibility for HOME funds; staff to research options Mr. Folden explained that the developer purchased the property in December 2008, but that the staff found out about the purchase in November 2008. He added that because the environmental review process was not complete, the project became ineligible for HOME funds. He then showed a slide that provided a depiction of a typical unit and advised of the terms of the loan reflected below: CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, JUNE 8, 2010 PAGE 4 Adopt Resolution to Approve a Contract for an Interim Construction Loan of $800,000.00 through the Fort Worth Housing Trust Fund to Heritage Park Vista Housing Partners Ltd., for the Development of the Heritage Park Vista Senior Apartment Community Located at 8729 Ray White Road (cont'd) (Agenda Item 4) • Loan of Fort Worth Housing Trust Fund ( FWHTF) General funds ($800,000.00) secured by a recorded Deed of Trust on the real property. o Condition: Repayment of similar loan on Eastland project. (Noted that Eastland loan must be repaid prior to funding loan for Heritage Park Vista) • The loan will be for a term of 1 year. • Applicable Federal Rate (AFR) for short term loans. • 6 units must remain affordable for 20 years to households earning less than 60% of area median income (AMI). (Vice President Scarth and Director Moncrief arrived at the meeting.) Mr. Folden concluded his presentation by stating that staff recommended the Corporation approve the resolution authorizing execution of the agreement with Heritage Park Vista Housing Partners, LTD., for the development of the Heritage Park Vista project. President Hicks opened the floor for discussion on this issue. Director Espino advised that the community in this area supported the project and that $50 million in gas well revenues was available to widen Ray White Road. MOTION: Upon a motion made by Director Espino and seconded by Director Jordan, the Board voted eight (8) "ayes" and zero (0) "nays ", with Secretary Moss temporarily absent, to approve Resolution No. FWHFC 2010 -08. The motion carried. Senior Assistant City Attorney Vicki Ganske clarified that the resolution reflected that the funding for the Eastland loan was part of the City's General Funds in the Fort Worth Housing Trust Fund and then once that loan was repaid, the loan for the Park Vista project would occur. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, JUNE 8, 2010 PAGE 5 Adopt Resolution to Approve Acceptance of an Additional $500,000.00 in HOME Funds from the City of Fort Worth for Infill Development in the Terrell Heights Neighborhood (Agenda Item 5) Mr. Mark Folden, Housing Program Manager, Housing and Economic Development Department, addressed the Corporation regarding the proposed resolution. Using a PowerPoint presentation, Mr. Folden provided two aerial views of the project location which depicted the location of 11 single - family properties under consideration and also identified the location of the project in relation to Tower 55. His next two slides provided information on the description and history of this project as noted below: • Construction or rehabilitation of up to 11 single family homes in Terrell Heights. • Purchase properties from KT Land, LTD. • 11/3/2009 — Fort Worth City Council authorized contract with FWHTF for development. o Up to $500,000.00 in HOME funds. • 4/13/2010 — Fort Worth City Council approved Program Year 2010 -11 Action Plan. o Allocated additional $500,000.00 in HOME funds. (Secretary Moss arrived at the meeting.) Mr. Folden then provided a series of slides that depicted proposed unit elevations with actual photographs and noted that the photographs were of structures that had been built in the City of Fort Worth in other areas. He concluded his presentation with the recommendation of staff to approve the resolution as follows: • Execute contract with City for up to $1 million of HOME Investment Partnership Program funds to construct/rehabilitate up to 1 1 single family homes in the Terrell Heights neighborhood. • Approve purchase of up to 1 I lots from KT Land, LTD. President Hicks opened the floor for discussion on this issue. There being no discussion, President Hicks opened the floor for a motion. MOTION: Upon a motion made by Director Espino and seconded by Director Burns, the Board noted nine (9) "ayes" and zero (0) "nays ", to approve Resolution No. F W H FC 2010 -09. The motion carried. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, JUNE 8, 2010 PAGE 6 Adopt Resolution Approving the Sale of The Villas of Eastwood Terrace by The Villas of Eastwood Terrace LLC to The Housing Authority of The City of Fort Worth (Agenda Item 6) Mr. Jay Chapa, Assistant General Manager, Fort Worth Housing Finance Corporation, addressed the Corporation regarding the proposed resolution. Mr. Chapa provided background information on the project and advised that staff had appeared before the City Council previously on this issue seeking approval to use HOME funds associated with this project and that staff had been working with the Fort Worth Housing Authority and HUD to get approval as this would be a HUD loan. He added that the project was to sell the Villas of Eastwood Terrace, currently owned by a wholly owned affiliate of Fort Worth Housing Finance Corporation, to the Fort Worth Housing Authority (FWHA) to manage and own the property as part of their portfolio. Using a PowerPoint presentation, Mr. Chapa provided two aerial views of the proposed site location and advised of the project history as follows: 2003 — Villas developed by Villas of Eastwood Terrace, LLC. o FWHFC is the Sole Member of Villas of Eastwood Terrace, LLC — LLC created in 2001. March 23, 2010 — Appointed managers of Villas of Eastwood Terrace approved sale to Fort Worth Housing Authority (FWHA). June 23, 2009 — City Council authorized Change in Use and Expenditure of $ I AM in HOME funds. Mr. Chapa advised the Corporation of the following proposed terms and conditions: • FWHA assumes debt on Villas. o $9,216,891.06 as of 5/1/2010. • CFW loans FWHA up to $1.4 million in HOME funds. • Deferred payment loan. • 20 -year affordability period. • Designate affordable units for households <60% of Area Median Income per HUD regulation. • Sales price not to exceed $10,616,891.06 depending on appraisal. • Seller pays for appraisals and closing costs. o FWHFC, as Sole Member of Villas of Eastwood Terrace, LLC, to advance up to $100,000.00 for these costs. • Must remain a multi - family complex for people age 55 and o%er. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, JUNE 8, 2010 PAGE 7 Adopt Resolution Approving the Sale of The Villas of Eastwood Terrace by The Villas of Eastwood Terrace LLC to The Housing Authority of The City of Fort Worth (cont'd) (Agenda Item 6) Mr. Chapa advised that the actual price of the property was not to exceed $100,000.00 and noted that it could be less dependent on the final appraisal and that the use of the $1.4 million was not to be exceeded and it also could be less. He added that staff recommendation was that the Corporation adopt the resolution authorizing the sale of The Villas of Eastwood Terrace to the Fort Worth Housing Authority. President Hicks opened the floor for discussion on this issue. Secretary Moss endorsed the project and advised that when the City first got involved in the project, there was a clear understanding that within three (3) years the property would be sold. He added that the sale would provide more stability as far as management to the Villas. MOTION: Upon a motion made by Director Moss and seconded by Director Moncrief, the Board voted nine (9) "ayes" and zero (0) "nays ", to approve Resolution No. FWHFC 2010 -10. The motion carried. Executive Session (Agenda Item 7) 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. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, JUNE 8, 2010 PAGE 8 Request for Future Agenda Items and/or Reports (Agenda Item 8) President Hicks opened the floor on requests for future agenda items. No requests were made by Board members. Adiourn (Agenda Item 9) With no further discussion, President Hicks adjourned the called — special session of the Fort Worth Housing Finance Corporation Board at 1:12 p.m. on Tuesday, June 8, 2010. These minutes approved by the Fort Worth Housing Finance Corporation Board of Directors on the 14 1h _ day of September , 2010. APPROVED: Kat een Hicks Pres' ent ATTEST: Frank Moss Secretary Prepared and respectfully submitted by: Ronald P. Gonzales, TRMC CMC Assistant City Secretary