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Home My WebLink About2006/08/15-Minutes-Fort Worth Housing Finance Corporation (FWHFC) CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED—SPECIAL SESSION TUESDAY,AUGUST 15,2006 Present: President Kathleen Hicks Secretary Donavan Wheatfall Treasurer Jungus Jordan (arrived at 12:10 p.m.) Director Mike Moncrief Director Salvador Espino Director Chuck Silcox Director Danny Scarth Director Carter Burdette Director Wendy Davis City staff: Dale Fisseler, Assistant City Manager Vicki Ganske, Senior Assistant City Attorney Marty Hendrix, City Secretary Jerome C. Walker, Director of Housing Department Deidre Emerson, Assistant Director of Housing Department Other staff. Charles Boswell, City Manager Joe Paniagua, Assistant City Manager Donald Cager, Housing Program Manager Karen Meunier, Program Manager 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 12:03 p.m. on Tuesday, August 15, 2006, in the Pre-Council Chamber of the Fort Worth Municipal Building, 1000 Throckmorton, Fort Worth, Texas. Approval of Minutes of the July 11, 2006 Meeting (Agenda Item II) President Hicks opened the floor for a motion on the approval of the minutes of the Tuesday, July 11, 2006 meeting. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, AUGUST 15, 2006 Page 2 MOTION: Upon a motion made by Director Wheatfall and seconded by Director Espino, the Board of Directors voted eight (8) "ayes" and zero (0) "nays", to approve the Tuesday, July 11, 2006, minutes of the Corporation as presented, with Director Jordan being absent. The motion carried. Election of Vice President to Replace Director Becky Haskin (Agenda Item III-A) President Hicks opened the floor for a motion on the election of the Vice President. MOTION: Upon a motion made by Director Espino and seconded by Director Moncrief, the Board of Directors voted eight (8) "ayes" and zero (0) "nays", with Director Jordan being absent, to appoint Director Danny Scarth as the Vice President of the Corporation. The motion carried. Discuss and Consider a Resolution for Conditional Approval of an Interim Construction Loan Through the Fort Worth Housing Finance Corporation's Housing Development Fund to FW-Eastland Housing Partners, Ltd., for the Residences at Eastland, South Side of the 5500 Block of Eastland Street (Agenda Item III-B) Jerome C. Walker, Director of the Housing Department, spoke before the Corporation Board about the residences at Eastland, which is the proposed 2006 Texas Department of Housing and Community Affairs Housing Tax Credit Project. Mr. Walker stated that the purpose of the presentation was to brief the Board on this project. It was also to seek the Board's conditional approval of a subordinate interim construction loan through the Fort Worth Housing Finance Corporation's Housing Development Fund. Using a map, Mr. Walker reviewed the project's location in Council District 5. He provided an explanation of the project description as follows: • A new construction 146-unit rental community for families. • Site is 28.4 acres in the 55000 block of Eastland on the south side. The project configuration is as follows: Configuration No. of Units Rental Rates 2-Bedroom/2 Bath flat 16 $348 - S594 CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED—SPECIAL SESSION TUESDAY, AUGUST 15, 2006 Page 3 Discuss and Consider a Resolution for Conditional Approval of an Interim Construction Loan Through the Fort Worth Housing Finance Corporation's Housing Development Fund to FW-Eastland Housing Partners, Ltd., for the Residences at Eastland, South Side of the 5500 Block of Eastland Street (cont'd) (Agenda Item III-B) Configuration No. of Units Rental Rates 2 Bedroom/2.5 Bath Town Home 64 $348 - $594 3 Bedroom/3.5 Bath Town Home 60 $687 4 Bedroom/3.5 Bath Town Home 6 $770 Total 146 Mr. Walker advised of the household income: Household Income No. of Units 30% 15 60% 125 Market 6 Total 146 Mr. Walker pointed out the parties involved in the project as follows: Partnership: FW-Eastland Housing Partners, Ltd. NDG-Eastland, LLC, General Partner 1% Robert G. Hokins/Sandra K. Hoskins Tax Credit Purchaser 99% Developer: NuRock Development Group, Inc. (subsidiary of the NuRock Companies, Robert G. Hoskins, President) CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED—SPECIAL SESSION TUESDAY, AUGUST 15, 2006 Page 4 Discuss and Consider a Resolution for Conditional Approval of an Interim Construction Loan Through the Fort Worth Housing Finance Corporation's Housing Development Fund to FW-Eastland Housing Partners, Ltd., for the Residences at Eastland, South Side of the 5500 Block of Eastland Street(cont'd) (Agenda Item III-B) Architect: Galier, Tolson, French Design Associates Continuing with his presentation, Mr. Walker showed an artist's rendering of the club house. He advised that the resident services included the BreakOutTM Program. This program includes academic enrichment for youth and after-school tutorial support. There are also personal finance seminars and job-readiness training. Mr. Walker showed a map of the area and advised of the local amenities to this development. He pointed out that the Diamond Hills Project was a model for the Residences at Eastland and showed photographs of that development, with a view of the pool and exercise room. (Director Jordan arrived at the meeting.) Mr. Walker then reviewed the construction financing as follows: Development Cost $16,014,820 Construction Cost $14,340,820 Deferred Costs $ 1,674,000 Source Conventional Loan $ 4,670,000 HTC Tax Syndication $ 9,170,820 HDF Subordinate Loan $ 500,000 Mr. Walker explained the HDF loan terms. Source of Funds HDF HOME allocation Interest Rate federal rate; variable, adjusted quarterly Term 24 months CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED—SPECIAL SESSION TUESDAY,AUGUST 15, 2006 Page 5 Discuss and Consider a Resolution for Conditional Approval of an Interim Construction Loan Through the Fort Worth Housing Finance Corporation's Housing Development Fund to FW-Eastland Housing Partners, Ltd., for the Residences at Eastland, South Side of the 5500 Block of Eastland Street (cont'd) (Agenda Item III-B) Payment interest only, payable monthly Repayment Loan maturity or permanent lender take-out, earlier event Contingencies: TDHCA 2006 Tax Credit Award Available funds Hard commitment from permanent lender Mr. Walker reviewed the additional deal points as follows: Minority/Women's Business Enterprise Target Minority Contractor Conference Neighborhood Notification and Outreach NEZ Application (pending) Mr. Walker advised that the recommended Board action was to: • Approve a conditional FWHFC interim construction loan in the amount of $500,000 from its Housing Development Fund to construct the Residences at Eastland. • Adopt a Resolution authorizing the FWHFC to enter into a Contractual Agreement with FW-Eastland Housing Partners, Ltd., for the construction of the Residences at Eastland. MOTION: Upon a motion made by Director Espino and seconded by Director Burdette, the Board of Directors voted nine (9) "ayes" and zero (0) "nays", to approve a conditional Fort Worth Housing Finance Corporation interim construction loan in the amount of $500,000 for its Housing Development Fund to construct the Residences at Eastland and to adopt the resolution authorizing the Forth Worth Housing Finance Corporation to enter into a contractual agreement with FW- Eastland Housing Partners, Ltd., for the construction of the Residences at Eastland. The motion carried. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED—SPECIAL SESSION TUESDAY, AUGUST 15,2006 Page 6 Authorization of Settlement of Claims and Lawsuit Entitled J. P. Morgan Chase Bank v. Fort worth Housing Finance Corporation, NB Homes, LTD., and Marcus Buckley Pending in the 348th District Court of Tarrant County Texas Cause No. 348-21883-06 (Agenda Item III-C) President Hicks passed over this agenda item. At 12:22 p.m., President Hicks adjourned the called —special session of the Corporation into Executive Session in accordance with the requirements of the Open Meetings Act. Executive Session (Agenda Item IV) In accordance with the Texas Open Meeting Act, Section 551, the Fort Worth Housing Finance Corporation convened into Executive Session at 12:22 p.m. in order to discuss: A. Seek the advice of its attorneys concerning legal issues regarding any current agenda 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: 1. J. P. Morgan Chase Bank v. fort worth Housing Finance Corporation, NB Homes, LTD. And Marcus Buckley pending in the 3481 District Court of Tarrant County, Texas, Cause No. 348-218883-06 2. Legal issues concerning any item listed on today's Fort Worth Housing Finance Corporation meeting agenda; 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 economic development negotiations, as authorized by Section 551.087 of the Texas Government Code. The Executive Session was adjourned at 1:12 p.m. President Hicks reconvened the called — special session of the Corporation Board at 1 :12 p.m. on Tuesday, August 15. 2006, and moved to the next agenda item. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED—SPECIAL SESSION TUESDAY, AUGUST 15, 2006 Page 7 Request for Future Agenda Items and/or Reports (Agenda Item V) There were no future agenda items requested by the Board Members or reports given by the Board Members. Adiourn (Agenda Item VI) With no further discussion, President Hicks adjourned the called — special session of the Fort Worth Housing Finance Corporation Board at 1:13 p.m. on Tuesday, August 15, 2006. These minutes approved by the Fort Worth Housing Finance Corporation Board of Directors on the 25th day of Jam, 2007. APPROVED: K Teen Hicks President ATTEST: Secretary Prepared and respectfully submitted by: Marty Hendrix City Secretary