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HomeMy WebLinkAboutContract 45301 (2)INTERLOCAL AGREEMENT This TERLOCAL AGREEMENT ("Agreement") is made and entered into by and between the CITY OF FORT WORTH, TEXAS, a home -rule municipal corporation, (hereinafter called "CITY"); and the TARRANT COUNTY HOSPITAL DISTRICT d/b/a JPS HEALTH NETWORK, a unit of local government and more specifically a county hospital district, created and operating under Chapter 281 of the Texas Health and Safety Code (hereinafter called "DISTRICT"). RECITALS 1. This Agreement is made under the authority granted to CITY and the DISTRCT by and pursuant to Texas Government Code Chapter 791, known as the INTERLOCAL COOPERATION ACT. 2. By its adoption of M&C G-12284 and Ordinance No. 13533 (the "Ordinance") on July 28, 1998, the City Council of the CITY established a procedure to convey tax foreclosed property to eligible housing nonprofit organizations for the development of law and moderate income housing pursuant to Section 34.051 of the Texas Tax Code. The Ordinance sets forth the City's goals with respect to the City's urban redevelopment plans and affordable housing policy as follows: a. To provide greater opportunities for decent, affordable housing to low income individuals and households; b. To revitalize existing neighborhoods by building homes on vacant lots and rehabilitating deteriorated or vacant homes; c. To generate revenues by returning these properties to the tax rolls; and d. To provide an efficient mechanism for returning deteriorated or unproductive properties to the tax rolls, enhancing the value of ownership to the surrounding properties, and improving the safety and quality of life in deteriorating neighborhoods. A copy of the Ordinance is attached as Exhibit "A" and incorporated for all purposes. The Ordinance has been reviewed by the staff at DISTRICT and has been presented to its Board of Managers for review. 3. By its adoption of M&C G- 12284, the City Council of CITY has also authorized this Agreement with DISTRICT to obtain DISTRICT'S consent to the conveyance method stated in the Ordinance and to be designated as the signatory on behalf of DISTRICT to execute Tax Resale Deeds in the conveyance under the Ordinance. A copy of the proposed Tax Resale Deed is attached as Exhibit "B" and incorporated for all purposes. 4. ;JISTRICT's Board of Managers has approved this Agreement at its meeting on t. ,2014. L(l!)� ' (0 A ,, 1 ,r951 liT8'_� 1l,9 [as, NOW THEREFORE, in consideration of the mutual covenants herein expressed, the parties agree as follows: AGREEMENT 1. DISTRICT hereby approves and consents to the method of property conveyance as stated in the Ordinance. 2. DISTRICT further designates and authorizes the City Manager or any Assistant City Manager of the City to execute Tax Resale Deeds to be used in property conveyances pursuant to the Ordinance on behalf of DISTRICT. 3. This Agreement is applicable and operative only with respect to tax foreclosed property that is either vacant or distressed and has a tax delinquency of six or more years. 4. The tax foreclosed properties being sold pursuant to this Agreement will be used only for purposes consistent with the plans, goals and policies identified and set forth in the Ordinance. 5. This Agreement has been duly authorized by the governing bodies of the CITY and DISTRICT. 6. This Agreement, and the authority granted herein, shall continue in effect until terminated by notice in writing from one party to the other at least thirty (30) days prior to the effective termination date. EXECUTED this fday of '/ 2014. CITY OF FORT WORTH By: Fernando C sty,, A sistant City Manager Date: j/Z3/14- Approved as to Legality and Form ikal40 14A Leann Guzman, Ass,`stant City Attorney Date: TARRANT COUNTY HOSPITAL DISTRICT By: Name: RobeEarley Title: President and C O Date: Q Ct `q 2 Attest; CitySecretarkf` f� Date:) A): iy • W:100 Tchd11 485401Documents\Interlocal Agreement w City of FW final 121113.docx • 3 OFFICIAL RECORD CITY SECRETARY Ft WORTH, TX EXHIBIT "A" to INTERLOCAL AGREEMENT by and between THE CITY OF FORT WORTH, TEXAS and TARRANT COUNTY HOSPITAL DISTRICT FORT WORTH CITY ORDINANCE NO. 13533 4 ORDINANCE NO. J, 9 S3 3 AN ORDINANCE AMENDING THE CODE OF THE CITY OF FORT WORTH (1986) AS AMENDED, BY THE ADDITION OF SECTION 2-13 PRESCRIBING PROCEDURES FOR THE CONVEYANCE OF TAX FORECLOSURE PROPERTY TO ELIGIBLE HOUSING NONPROFIT ORGANIZATIONS FOR THE DEVELOPMENT OF HOUSING FOR LOW INCOME HOUSEHOLDS PURSUANT TO SECTION 34.015 OF THE TEXAS PROPERTY TAX CODE; PROVIDING THAT THIS ORDINANCE SHALL BE CUMULATIVE OF OTHER ORDINANCES; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE WHEREAS, Section 34 015 of the Texas Property Tax Code allows the governing body of a municipality to provide for the manner in which land acgwred by the municipality following the foreclosure of a tax hen in favor of the municipality may be sold to eligible nonprofit organizations to develop housing for low income individuals and families, and WHEREAS, the City Council desires to unplement such procedure by adoption of this ordinance; and WHEREAS, the objectives of implementing these procedures are to 1 provide greater opportunities for decent, affordable housmg to low mcome Individuals and households, 2. revitahze existing neighborhoods by building homes on vacant lots and rehabilitating detenorated or vacant homes, and 3 generate revenues by returning these properties to the tax rolls. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS 1 SECTION 1 Chapter 2 of the Code of the City of Fort Worth (1986), as amended, is amended by adding a new Section 2-13 to read as follows. 2-13 Conveyance of tax foreclosure property to eligible housing nonprofit organizations for the development of low income housing. (a) Definitions. 1 Eligible property. Real property obtained by the City following the foreclosure of a tax hen in favor of the City and other taxing entities that is capable of being developed for low income housmg. 2. Eligible housing nonprofit organization. A current and active nonprofit organization which meets the following requirements. (A) (1) a nonprofit corporation described by 26 U.S C. Sec. 501(c)(3) that: 1. has been incorporated m the state of Texas for at least one year; u. has a corporate purpose to develop affordable housmg that is stated in its articles of incorporation, bylaws or charter; and in. has at least one-fourth of its board of directors residing m Fort Worth, and iv engages pnmanly m the buildmg, repair, rental or sale of housing for low income individuals and families ("low income households"), or (2) a nonprofit organization that develops housing for low mcome households as a pnmary activity to promote community -based neighborhood revitalization in the City of Fort Worth, and 2 (B) has a satisfactory record in leasing, acquiring, building or rehabilitating residential property and selling the property to low income households for the two years immediately preceding the application, and (C) demonstrates financial and management capacity to complete projects on the property after acquisition, and (D) has the capability, upon conveyance of the property, to obtam insurance to cover liabilities that may arise out of holding and developmg the property; and (E) has a designated person authorized by its board of directors as signatory on behalf of the organization. 4.7 3 Housing development as a primary activity. A nonprofit organization is considered to develop housing for low income households as a "primary activity" or "engaged primarily" in housing development activities for low income households if it: (A) has as a corporate purpose of developing and managmg affordable housing for low income households as stated in its articles of incorporation or bylaws, and (B) more than 50% of its budget or actual expenditures is related to housing development activities for low income households; or (C) has a comprehensive or strategic revitalization or redevelopment plan which is approved, recognized, or acknowledged by the City and mcludes the provision of housing development activities for low income households as a major strategy 4 Low income households. Individuals and/or families whose annual mcomes do not exceed 80% of the median income for the area with adjustments for family size, as determined and updated by the U.S Department of Housing and Urban Development ("HUD"). 5 Affordable housing. Housing is considered affordable if the monthly housing cost does not exceed 30% of the household's monthly gross income. For homebuyers, housing cost includes the payment of pnncipal, mterest, taxes, and insurance. For renters, it means the amount of rent paid, not to exceed the Fair Market Rent for comparable units in the area as determined by HUD For multi -family projects, at least twenty percent of the units should be affordable to low income households. 6 Tax resale deed without warranty. The legal instrument used by the City to transfer its interest and that of all the other taxing entities in the property to an eligible housing nonprofit organization pursuant to this ordinance. 7 Tax appraisal value. The value of a specific parcel of property as determined by the Tarrant Appraisal District as of January 1 of the year the property is conveyed to an eligible housing nonprofit organization or by an independent certified appraiser 8 Costs and expenses. Costs and expenses shall mean the costs and expenses as provided m Sections 34 02 and 34 06 of the Texas Property Tax code. 9 Application fee. a non-refundable $100 00 fee charged by the City to process the application of an eligible housing nonprofit organization for the conveyance of tax foreclosure property in accordance with this ordmance. (b) Method of sale. 1 The City may sell eligible property to an eligible housing nonprofit orgamzation for the development of low income housing for an amount that is less than the lesser of: (A) the market value specified in the judgment of foreclosure, or (B) the total amount of judgments against the property; 4 2. In general, the property shall be transferred to an eligible housing nonprofit organization for an amount equal to 20% of the tax appraisal value of the property plus costs and expenses. Provided, the Real Property Management Division of the Engineering Department may in extraordinary circumstances recommend a higher or lower purchase pnce, but in no case shall the property be conveyed for less than the total of the costs and expenses mcurred on the property 3 All conveyance shall be approved by the City Council. (c) Application fee. The City shall charge an application fee for the processing of each application for the conveyance of eligible property (d) Procedure of sale. The Real Property Management Division of the Engineering Department and the Housing Department may develop procedures to implement this ordinance. SECTION 2. This ordinance shall be cumulative of all provisions of ordinances and of the Code of the City of Fort Worth, Texas (1986), as amended, except where the provisions of this ordinance are in direct conflict with the provisions of such ordinances and such Code, m which event conflicting provisions of such ordinances and such Code are hereby repealed. SECTION 3 It is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses and phrases of this ordinance are severable, and, if any phrase, clause, sentence, paragraph or section of this ordinance shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the 5 remaining phrases, clauses, sentences, paragraphs and sections of this ordinance, since the same would have been enacted by the City Council without the mcorporation m this ordinance of any such unconstitutional phrase, clause, sentence, paragraph or section. SECTION 4 This ordinance shall take effect and be in full force and effect from and after its passage, and it is so ordained. APPROVED AS TO FORM AND LEGALITY Assistant City Afton* DATE. 7l a PI , r' ADOPTED• %- 02 9 le EFFECTIVE. 49 -aP `S 6 4 PROCEDURE FOR THE CONVEYANCE OF TAX FORECLOSURE PROPERTY TO ELIGIBLE HOUSING NONPROFIT ORGANIZATIONS FOR THE DEVELOPMENT OF LOW INCOME HOUSING PURSUANT TO ORDINANCE NO The following procedures shall be used for transferring eligible tax foreclosure property to eligible nonprofit organizations pursuant to Ordinance No. ("the Ordmance") 1 The Real Property Management (RPM) division of the Engineering Department shall provide the following City Departments with a written notice which includes a list of tax foreclosure properties. Development, Environmental Management, Housing, Parks and Community Services, Transportation/Pubhc Works, and Water Departments. These departments will be contacted to determine if a particular property should be retained by the City of Fort Worth for any reason (e.g., easements, nght of' way, park land, housing programs). The City Departments shall have sixty (60) days from the date of the notice, with the option to extend for another 30 days, to request that the City retain the property RPM shall also provide all other local taxing entities with the same hst and allow them thirty (30) days from the date of the notice to decide whether they need a specific piece of property for their projects. If RPM or the Housing Department receives a request from a City department or a taxing entity, the subject property may be released from the available list for conveyance under this ordinance until such time it is no longer needed by the City or another taxing entity 2. Applications from nonprofit organizations for housing initiatives including the conveyance of City tax foreclosure property under the Ordinance shall be made to the Housing Department. A nonprofit orgamzation shall pay the City a $100 (non- refundable) Application Fee for each property requested. The application shall include the location and description of the property being requested, the orgamzation's development plans (including specifications, estimated cost, and sales pnce) for the property, and the estimated time line m the marketing and sale of the property 3 The Housing Department shall determine and certify the eligibility of a non-profit organization to acquire City tax foreclosure property under this ordinance. Thereafter, the Housmg Department shall forward qualified apphcations to RPM. 4 RPM shall review the application to verify availability of property and the applicable tax foreclosure judgment and market value of the property, and determine the amount for which a piece of property may be conveyed. In general, the property shall be transferred to the eligible housing nonprofit organization for an amount equal to 20% of the fair market value of the property as defined in the Ordinance plus costs and expenses. Provided, RPM may in extraordinary circumstances recommend a higher or lower pnce, but in no case shall the property be conveyed for less than the total of the costs and expenses incurred on the property The Tax Resale Deed Without Warranty shall include the following statement: "This quit claim is made subject to, and grantee acknowledges, the nght of redemption as provided in Sections 34 05 and 34.21 of the Texas Property Tax Code, V T C.A." 5 RPM shall notify the Code Enforcement Division of the City Services Department to hold m abeyance any scheduled demolition of structure on the subject property 6 RPM shall obtain City Council's prior approval of the conveyance of the property and the terms of conveyance. 7 It is the responsibility of the recipient organization to select the title company, provide any required closing documents, pay all costs associated with closing and arrange for the closing on the property 8. RPM shall furnish information to the Housing Department on each property conveyed under this ordinance, including the name of the organization, property description, tax appraisal value of the property, taxes, fees and other amounts paid by the organization for the property 9 Immediately following the date of closing, the recipient organization shall be responsible for all maintenance of the acquired property The organization shall also start construction or rehabilitation of the property according to its approved plans and m compliance with the Housing Quality Standards set forth in 24 CFR 882.109, other applicable federal, state and local laws and regulations as well as City Codes and ordinances. Following completion of construction or rehabilitation, the property must be sold, leased, or used by the nonprofit organization for affordable housing for low income households. The recipient organization shall ensure that the property is used for affordable housing for low income households for a period of at least five (5) years from the date of its conveyance to a qualified homebuyer or issuance of certificate of occupancy 10 The Housing Department shall monitor housing development activities m accordance with the terms set forth in the Ordinance and in this procedure. Any violation by a housing nonprofit organization of the terms of the Ordinance and the procedure shall constitute grounds for rejection of any future application by the organization to acquire property under the Ordinance, at the discretion of the City 4 11 The terms and definitions used in the procedure shall be the same as defined in the Ordinance. 12. The terms of the procedure may be amended from time to tune by RPM and Housing Department to ensure compliance with applicable laws and the Ordinance. ADOPTED* (Date) Director, Engineering Department Director, Housing Department DATE 7/28/98 SUBJECT City of Fort Worth, Texas A or An ouncit ommunication REFERENCE NUMBER LOG NAME PAGE **G-12284 I 05LOW 1 of 2 ORDINANCE ESTABLISHING PROCEDURES FOR THE CONVEYANCE OF TAX FORECLOSURE PROPERTY TO QUALIFIED NONPROFIT ORGANIZATIONS FOR LOW INCOME HOUSING RECOMMENDATION It is recommended that the City Council 1 Adopt the attached "Ordinance for the Conveyance of Tax Foreclosure Property to Eligible Nonprofit Organizations for the Development of Housing for Low Income Individuals and Families Pursuant to Section 34 015 of the Texas Property Tax Code", and 2. Authorize the City Manager to enter into interlocal agreements other taxing entities, to obtain their consent of the sale method as stated in the ordinance, and for the City Manager to be authorized as the signatory on the Tax Resale Deed used to convey property pursuant to the ordinance DISCUSSION Section 34 015 of the Texas Property Tax Code, as amended in 1997, allows municipalities to determine the mariner in which tax foreclosure properties can be transferred to qualified nonprofit organizations for the development of low income housing The statute enables the City to sell the properties to qualified nonprofit organizations without competitive bids for less than the judgment amount or the fair market value as specified in the tax foreclosure lawsuit judgment. The City's current policy on the conveyance of all surplus property (including tax foreclosure property) was shared with and approved by other local taxing entities. Tarrant County as a condition of its approval of the current policy, required that the City insert a 'reverter clause" into the tax resale deed for any property conveyed to nonprofit organizations for less than the judgment amount or fair market value The reverter clause states that if the property is sold to a non-profit organization within five (5) years from the date of the conveyance and it ceases to be low income housing it automatically reverts back to the City -trustee for all the taxing entities The reverter clause has made it extremely difficult for individual purchasers to obtain permanent mortgage financing. The staff from the City of Fort Worth Law and Housing Departments and the Real Property Management Division of the Engineering Department developed the proposed ordinance to 1) implement Sec. 34 015, 2) encourage the development of affordable housing and 3) place vacant properties back on the tax roils. Adoption of the proposed ordinance will also provide an incentive for qualified nonprofit organizations including the Fort Worth Housing Finance Corporation, to expand their activities through acquisition of vacant properties, construction of new houses or rehabilitation of existing houses These activities are particularly important in revitalizing the central city neighborhoods where affordable housing is most needed Because the proposed deed under this ordinance does not include the reverter clause, it will also attract more private lending institutions to provide financing assistance to low-income buyers. DATE 7/28/98 SUBJECT City of Fort Worth, Texas or An au elt unicntian REFERENCE NUMBER LOG NAME PAGE **G.12284 05LOW 2 of 2 ORDINANCE ESTABLISHING PROCEDURES FOR THE CONVEYANCE OF TAX FORECLOSURE PROPERTY TO QUALIFIED NONPROFIT ORGANIZATIONS FOR LOW INCOME HOUSING The Safety and Community Development Committee endorsed the procedures in the proposed ordinance on April 14, 1998 A copy of the procedure Is attached for additional information to the City Council City staff have also provided other local taxing entities with a copy of the proposed ordinance, considered their comments and requested their consent to the conveyance method stated in the ordinance This is a city-wide program and covers all Council Districts. FISCAL INFORMATION/CERTIFICATION The Finance Director certifies that this action wilt have no material effect on City funds. LW:j Submitted for City Manager's Office by: Libby Watson Originating Department Head: Jerome Walker Additional Information Contact: Jerome Walker f FUND i (Lo) 6183 ( 1 7537 1 (from) 7537 ( ACCOUNT ( CENTER 1 AMOUNT CITY SECRETARY APPROVED CITY COUNCIL JUL 28 al YuAacJ City Secretary of the City of Fort Worth, 7'etas EXHIBIT "B" to INTERLOCAL AGREEMENT by and between THE CITY OF FORT WORTH, TEXAS and TARRANT COUNTY HOSPITAL DISTRICT NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER STATE OF TEXAS COUNTY OF TARRANT TAX RESALE DEED WITHOUT WARRANTY THAT the City of Fort Worth, a municipal corporation of Tarrant County, Texas, Grantor, acting by and through Fernando Costa, its duly authorized Assistant City Manager, acting for the use and benefit of itself and STATE OF TEXAS, COUNTY OF TARRANT, TARRANT REGIONAL WATER DISTRICT, TARRANT COUNTY HOSPITAL DISTRICT, TARRANT COUNTY COLLEGE DISTRICT AND FORT WORTH INDEPENDENT SCHOOL DISTRICT, hereinafter referred to collectively as "Grantor", for and in consideration of Dollars ($), paid to it by --, "Grantee", the receipt and sufficiency of which is hereby acknowledged does convey unto the said Grantee, all of its right, title and interest acquired or held by the Grantor in and to the following described real property situated in Tarrant County, Texas, to wit: Legal Description Aka: Address 1 M&CNo.L- The City of Fort Worth was named Grantee on its own behalf and on behalf of the taxing entities named above in a deed dated , recorded as , County Records, Tarrant County, Texas, on . This Tax Resale Deed Without Warranty is made subject to, and Grantee acknowledges, the right of redemption as provided in the Texas Tax Code, V.T.C.A. Grantee acknowledges that Grantor has not made and does not make any representations as to the physical condition, or any other matter affecting or related to the property or any improvements thereon. BY THE ACCEPTANCE OF THIS DEED, GRANTEE ACKNOWLEDGES AND AGREES THAT GRANTOR HAS NOT MADE, DOES NOT MAKE AND SPECIFICALLY NEGATES AND DISCLAIMS ANY REPRESENTATIONS, WARRANTIES, PROMISES, COVENANTS, AGREEMENTS OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS OR IMPLIED, ORAL OR WRITTEN, PAST, PRESENT OR FUTURE, OF, AS, TO, CONCERNING OR WITH RESPECT TO (A) THE VALUE, NATURE, QUALITY OR CONDITION OF THE PROPERTY INCLUDING, WITHOUT LIMITATION, THE WATER, SOIL AND GEOLOGY, (B) THE INCOME TO BE DERIVED FROM THE PROPERTY, (C) THE SUITABILITY OF THE PROPERTY FOR ANY AND ALL ACTIVITIES AND USES WHICH GRANTEE MAY CONDUCT THEREON (D) THE COMPLIANCE OF OR BY THE PROPERTY OR ITS OPERATION WITH ANY LAWS, RULES, ORDINANCES OR REGULATIONS OF ANY APPLICABLE GOVERNMENTAL AUTHORITY OR BODY, (E) THE HABITABILITY, MERCHANTABILITY, MARKETABILITY, PROFITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE PROPERTY, (F) THE MANNER OR QUALITY OF THE CONSTRUCTION OR MATERIALS, IF ANY, INCORPORATED INTO THE PROPERTY (G) THE MANNER QUALITY, STATE OF REPAIR OR LACK OF REPAIR OF THE PROPERTY, OR (H) ANY OTHER MATTER WITH RESPECT TO THE PROPERTY, AND SPECIFICALLY, THAT GRANTOR HAS NOT MADE, DOES NOT MAKE AND SPECIFICALLY DISCLAIMS ANY REPRESENTATIONS REGARDING Aka: Address 2 M&C No. L- COMPLIANCE WITH ANY ENVIRONMENTAL PROTECTION, POLLUTION OR LAND USE LAWS, RULES, REGULATIONS, ORDERS OF REQUIREMENTS, INCLUDING SOLID WASTE, AS DEFINED BY THE U. S. ENVIRONMENTAL PROTECTION AGENCY REGULATIONS AT 40 C.F.R., PART 261, OR THE DISPOSAL OR EXISTENCE IN OR ON THE PROPERTY OF ANY HAZARDOUS SUBSTANCE AS DEFINED BY THE COMPREHENSIVE ENVIRONMENTAL RESPONSE COMPENSATION AND LIABILITY ACT OF 1980, AS AMENDED, AND REGULATIONS PROMULGATED THEREUNDER. GRANTEE FURTHER ACKNOWLEDGES THAT IT IS NOT RELYING ON ANY INFORMATION PROVIDED OR TO BE PROVIDED BY GRANTOR RELATING TO THE PROPERTY. AS A MATERIAL PART OF THE CONSIDERATION FOR THIS DEED, GRANTOR AND GRANTEE AGREE THAT GRANTEE IS TAKING THE PROPERTY "AS IS" WITH ANY AND ALL LATENT AND PATENT DEFECTS AND THAT THERE IS NO WARRANTY BY GRANTOR THAT THE PROPERTY IS FIT FOR A PARTICULAR PURPOSE. GRANTEE ACKNOWLEDGES THAT IT IS NOT RELYING UPON ANY REPRESENTATIONS, STATEMENTS, ASSERTIONS OR NON -ASSERTIONS BY THE GRANTOR WITH RESPECT TO THE PROPERTY CONDITION. GRANTEE TAKES THE PROPERTY UNDER THE EXPRESS UNDERSTANDING THAT THERE ARE NO EXPRESS OR IMPLIED WARRANTIES. IT IS UNDERSTOOD AND AGREED THAT THE BID AMOUNT AND THE SUBSEQUENT PURCHASE PRICE HAVE BEEN ADJUSTED TO REFLECT THAT ALL OF THE PROPERTY IS SOLD BY SELLER AND PURCHASED BY PURCHASER SUBJECT TO THE FOREGOING. GRANTEE ACKNOWLEDGES AND ACCEPTS ALL THE TERMS AND PROVISIONS BY HIS ACCEPTANCE HEREOF. This Tax Resale Deed Without Warranty is expressly made and accepted by Grantee subject to any and all restrictions, existing easements, rights -of -way and prescriptive rights, whether of record or not; all presently recorded and validly existing instruments, covenants, conditions, zoning laws, regulations, ordinances of municipal and other governmental authorities and reservations, including, but not limited to, Aka: Address 3 M&CNo.L minerals previously reserved or conveyed, if any, relating to the property, but only to the extent that they are still in effect. TO HAVE AND TO HOLD all of its right, title and interest in and to the above described premises, together with, all and singular, the rights and appurtenances thereto in any manner belonging unto Grantee, and assigns, forever, so that neither Grantor nor its successors and assigns, nor any person or persons claiming under it, shall at any time hereafter have, claim or demand any right, title or interest to the aforesaid property, premises or appurtenances, or any part thereof. When the context requires, singular nouns and pronouns include the plural. IN WITNESS WHEREOF, this instrument is executed on the day of 2013. Please Return Recorded Deed To: STATE OF TEXAS § CITY OF FORT WORTH By: Assistant City Manager APPROVED AS TO FORM AND LEGALITY: By: Assistant City Attorney City of Fort Worth COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Fernando Costa, known to me to be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same as the act and deed of the City of Fort Worth, a municipal corporation of Tarrant County, Texas, for the purpose and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of 2013. Aka: Address 4 M&C No. L- Aka: Address Notary Public in and for the State of Texas 5 M&C No. L- City of Fort Worth, Texas tYIJ' ayar and Council Communication DATE 7/28/98 SUBJECT REFERENCE NUMBER LOG NAME PAGE **G_1 2284 05LOW 1 of 2 ORDINANCE ESTABLISHING PROCEDURES FOR THE CONVEYANCE OF TAX FORECLOSURE PROPERTY TO QUALIFIED NONPROFIT ORGANIZATIONS FOR LOW INCOME HOUSING RECOMMENDATION: It is recommended that the City Council: 1. Adopt the attached "Ordinance for the Conveyance of Tax Foreclosure Property to Eligible Nonprofit Organizations for the Development of Housing for Low Income Individuals and Families Pursuant to Section 34.015 of the Texas Property Tax Code"; and 2. Authorize the City Manager to enter into interiocal agreements other taxing entities, to obtain their consent of the sale method as stated in the ordinance, and for the City Manager to be authorized as the signatory on the Tax Resale Deed used to convey property pursuant to the ordinance DISCUSSION: Section 34.015 of the Texas Property Tax Code, as amended in 1997, allows municipalities to determine the manner in which tax foreclosure properties can be transferred to qualified nonprofit organizations for the development of low income housing. The statute enables the City to sell the properties to qualified nonprofit organizations without competitive bids for less than the judgment amount or the fair market value as specified in the tax foreclosure lawsuit judgment. The City's current policy on the conveyance of all surplus property (including tax foreclosure property) was shared with and approved by other local taxing entities. Tarrant County as a condition of its approval of the current policy, required that the City insert a 'reverter clause' into the tax resale deed for any property conveyed to nonprofit organizations for less than the judgment amount or fair market value. The reverter clause states that if the property is sold to a non-profit organization within five (5) years from the date of the conveyance and it ceases to be low income housing it automatically reverts back to the City -trustee for all the taxing entities. The reverter clause has made it extremely difficult for individual purchasers to obtain permanent mortgage financing. The staff from the City of Fort Worth Law and Housing Departments and the Real Property Management Division of the Engineering Department developed the proposed ordinance to 1) implement Sec. 34.015, 2) encourage the development of affordable housing and 3) place vacant properties back on the tax rolls. Adoption of the proposed ordinance will also provide an incentive for qualified nonprofit organizations, including the Fort Worth Housing Finance Corporation, to expand their activities through acquisition of vacant properties, construction of new houses or rehabilitation of existing houses These activities are particularly important in revitalizing the central city neighborhoods where affordable housing is most needed. Because the proposed deed under this ordinance does not include the reverter clause, it will also attract more private lending institutions to provide financing assistance to low-income buyers. City of Fort Worth, Texas fllnyor And Council Communication DATE REFERENCE NUMBER LOG NAME PAGE 7/28/98 **G-12284 05LOW 2 of 2 SUBJECT ORDINANCE ESTABLISHING PROCEDURES FOR THE CONVEYANCE OF TAX FORECLOSURE PROPERTY TO QUALIFIED NONPROFIT ORGANIZATIONS FOR LOW INCOME HOUSING The Safety and Community Development Committee endorsed the procedures in the proposed ordinance on April 14, 1998 A copy of the procedure is attached for additional information to the City Council. City staff have also provided other local taxing entities with a copy of the proposed ordinance, considered their comments and requested their consent to the conveyance method stated in the ordinance. This is a city-wide program and covers all Council Districts. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that this action will have no material effect on City funds. LW:j Submitted for City Manager's I FUND I ACCOUNT I CENTER I AMOUNT Office by: I (to) I Libby Watson 6183 Originating Department Head: Jerome Walker Additional Information Contact: Jerome Walker 7537 I CITY SECRETARY 7537 (from) APPROVED 7-28-98 ORDINANCE NO. /, 9 6.3 3 • AN ORDINANCE AMENDING THE CODE OF THE CITY OF FORT WORTH (1986) AS AMENDED, BY THE ADDITION OF SECTION 2-13 PRESCRIBING PROCEDURES FOR THE CONVEYANCE OF TAX FORECLOSURE PROPERTY TO ELIGIBLE HOUSING NONPROFIT ORGANIZATIONS FOR THE DEVELOPMENT OF HOUSING FOR LOW INCOME HOUSEHOLDS PURSUANT TO SECTION 34.015 OF THE TEXAS PROPERTY TAX CODE; PROVIDING THAT THIS ORDINANCE SHALL BE CUMULATIVE OF OTHER ORDINANCES; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE WHEREAS, Section 34 015 of the Texas Property Tax Code allows the governing body of a municipality to provide for the manner in which land acquired by the municipality following the foreclosure of a tax hen in favor of the municipality may be sold to eligible nonprofit organizations to develop housing for low income individuals and families, and WHEREAS, the City Council desires to implement such procedure by adoption of this ordinance; and WHEREAS, the objectives of implementing these procedures are to 1 provide greater opportunities for decent, affordable housing to low income individuals and households, 2. revitalize existing neighborhoods by building homes on vacant lots and rehabilitating detenorated or vacant homes, and 3 generate revenues by returning these properties to the tax rolls. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS SECTION 1 Chapter 2 of the Code of the City of Fort Worth (1986), as amended, is amended by adding a new Section 2-13 to read as follows. 2-13 Conveyance of tax foreclosure property to eligible housing nonprofit organizations for the development of low income housing. (a) Definitions. 1 Eligible property. Real property obtained by the City following the foreclosure of a tax hen in favor of the City and other taxing entities that is capable of being developed for low income housing. 2. Eligible housing nonprofit organization. A current and active nonprofit organization which meets the following requirements. (A) (1) a nonprofit corporation described by 26 U.S C. Sec. 501(c)(3) that: i. has been mcorporated in the state of Texas for at least one year; i. has a corporate purpose to develop affordable housmg that is stated m its articles of incorporation, bylaws or charter; and in. has at least one-fourth of its board of directors residing in Fort Worth, and iv engages pnmanly in the building, repair, rental or sale of housing for low income individuals and families ("low income households"), or (2) a nonprofit orgaruzation that develops housing for low income households as a pnmary activity to promote community -based neighborhood revitalization inthe City of Fort Worth, and 2 (B) has a satisfactory record in leasing, acquiring, building or rehabihtahng residential property and selling the property to low income households for the two years immediately preceding the application, and (C) demonstrates financial and management capacity to complete projects on the property after acquisition, and (D) has the capability, upon conveyance of the property, to obtain insurance to cover liabilities that may arise out of holding and developing the property; and (E) has a designated person authorized by its board of directors as signatory on behalf of the organization. 3 Housing development as a primary activity. A nonprofit organization is considered to develop housing for low income households as a "prunary activity" or "engaged pnmarily" in housing development activities for low mcome households if it: (A) has as a corporate purpose of developmg and managmg affordable housing for low income households as stated in its articles of incorporation or bylaws, and (B) more than 50% of its budget or actual expenditures is related to housing development activities for low income households; or (C) has a comprehensive or strategic revitalization or redevelopment .plan which is approved, recognized, or acknowledged by the City and mcludes the provision of housing development activities for low income households as a major strategy 4 Low income households. Individuals and/or families whose annual incomes do not exceed 80% of the median income for the area with adjustments for family size, as determined and updated by the U.S Department of Housing and Urban Development ("HUD"). 5 Affordable housing. Housing is considered affordable if the monthly housing cost does not exceed 30% of the household's monthly gross income. For homebuyers, housing cost mcludes the payment of principal, interest, taxes, and insurance. For renters, it means the amount of rent paid, not to exceed the Fair Market Rent for comparable units in the area as determined by HUD For multi -family projects, at least twenty percent of the units should be affordable to low income households. 6 Tax resale deed without warranty. The legal instrument used by the City to transfer its interest and that of all the other taxing entities in the property to an eligible housing nonprofit organization pursuant to this ordinance. 7 Tax appraisal value. The value of a specific parcel of property as determined by the Tarrant Appraisal District as of January 1 of the year the property is conveyed to an eligible housing nonprofit organization or by an independent certified appraiser 8 Costs and expenses. Costs and expenses shall mean the costs and expenses as provided m Sections 34 02 and 34 06 of the Texas Property Tax code. 9 Application fee. a non-refundable $100 00 fee charged by the City to process the application of an eligible housing nonprofit organization for the conveyance of tax foreclosure property in accordance with this ordinance. (b) Method of sale. 1 The City may sell eligible property to an eligible housing nonprofit organization for the development of low income housing for an amount that is less than the lesser of (A) the market value specified an the judgment of foreclosure, or (B) the total amount of judgments against the property; 4 2. In general, the property shall be transferred to an eligible housing nonprofit organization for an amount equal to 20% of the tax appraisal value of the property plus costs and expenses. Provided, the Real Property Management Division of the Engineering Department may in extraordinary circumstances recommend a higher or lower purchase puce, but m no case shall the property be conveyed for less than the total of the costs and expenses incurred on the property 3 All conveyance shall be approved by the City Council, (c) Application fee. • The City shall charge an application fee for the processing of each application for the conveyance of eligible property (d) Procedure of sale. The Real Property Management Division of the Engineering Department and the Housing Department may develop procedures to implement this ordinance. SECTION 2. This ordinance shall be cumulative of all provisions of ordmances and of the Code of the City of Fort Worth, Texas (1986), as amended, except where the provisions of this ordinance are in direct conflict with the provisions of such ordinances and such Code, in which event conflicting provisions of such ordinances and such Code are hereby repealed. SECTION 3 It is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses and phrases of this ordinance are severable, and, if any phrase, clause, sentence, paragraph or sechon of this ordinance shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this ordinance, since the same would have been enacted by the City Council without the mcorporation m this ordinance of any such unconstitutional phrase, clause, sentence, paragraph or section. SECTION 4 This ordinance shall take effect and be m full force and effect from and after its passage, and it is so ordained. APPROVED AS TO FORM AND LEGALITY Assistant City Atto DATE. �l a 2/at?' ADOPTED* %— 02 EFFECTIVE. 47 P Z'6 6 PROCEDURE FOR THE CONVEYANCE OF TAX FORECLOSURE PROPERTY TO ELIGIBLE HOUSING NONPROFIT ORGANIZATIONS FOR THE DEVELOPMENT OF LOW INCOME HOUSING PURSUANT TO ORDINANCE NO The following procedures shall be used for transferring eligible tax foreclosure property to eligible nonprofit organizations pursuant to Ordmance No. ("the Ordinance") 1 The Real Property Management (RPM) division of the Engmeering Department shall provide the following City Departments with a written notice which includes a list of tax foreclosure properties. Development, Environmental Management, Housing, Parks and Community Services, Transportation/Public Works, and Water Departments. These departments will be contacted to deternune if a particular property should be retained by the City of Fort Worth for any reason (e.g., easements, nght of way, park land, housing programs). The City Departments shall have sixty (60) days from the date of the notice, with the option to extend for another 30 days, to request that the City retam the property RPM shall also provide all other local taxing entities with the same list and allow them thirty (30) days from the date of the notice to decide whether they need a specific piece of property for their projects. If RPM or the Housing Department receives a request from a City department or a taxing entity, the subject property may be released from the available list for conveyance under this ordmance until such time it is no longer needed by the City or another taxing entity 2. Applications from nonprofit organizations for housing initiatives including the conveyance of City tax foreclosure property under the Ordinance shall be made to the Housing Department. A nonprofit orgarnzation shall pay the City a $100 (non- refundable) Application Fee for each property requested. The application shall include the location and description of the property being requested, the orgamzation's development plans (including specifications, estimated cost, and sales puce) for the property, and the estimated time line in the marketing and sale of the property 3 The Housmg Department shall determine and certify the eligibility of a non-profit organization to acquire City tax foreclosure property under this ordinance. Thereafter, the Housing Department shall forward qualified appltcations to RPM. 4 RPM shall review the application to verify availability of property and the applicable tax foreclosure judgment and market value of the property, and deternune the amount for which a piece of property may be conveyed. In general, the property shall be transferred to the eligible housmg nonprofit organization for an amount equal to 20% of the fair market value of the property as defined in the Ordinance plus costs and expenses. Provided, RPM may in extraordinary circumstances recommend a higher or lower pnce, but in no case shall the property be conveyed for less than the total of the costs and expenses incurred on the property The Tax Resale Deed Without Warranty shall include the following statement: "This quit claim is made subject to, and grantee acknowledges, the right of redemption as provided in Sections 34 05 and 34.21 of the Texas Property Tax Code, V T C.A." 5 RPM shall notify the Code Enforcement Division of the City Services Department to hold m abeyance any scheduled demolition of structure on the subject property 6 RPM shall obtain City Council's pnor approval of the conveyance of the property and the terms of conveyance. • 7 It is the responsibility of the recipient organization to select the title company, provide any required closing documents, pay all costs associated with closing and arrange for the closing on the property 8. RPM shall furnish information to the Housing Department on each property conveyed under this ordinance, including the name of the organization, property description, tax appraisal value of the property, taxes, fees and other amounts paid by the organization for the property 9 Immediately following the date of closing, the recipient organization shall be responsible for all maintenance of the acquired property The organization shall also start construction or rehabilitation of the property according to its approved plans and m compliance with the Housmg Quality Standards set forth rn 24 CFR 882.109, other applicable federal, state and local laws and regulations as well as City Codes and ordinances. Following completion of construction or rehabihtation, the property must be sold, leased, or used by the nonprofit orgamzation for affordable housing for low income households. The recipient organization shall ensure that the property is used for affordable housing for low income households for a period of at least five (5) years from the date of its conveyance to a qualified homebuyer or issuance of certificate of occupancy 10 The Housing Department shall monitor housmg development activities in accordance with the terms set forth m the Ordinance and in this procedure. Any violation by a housing nonprofit organization of the terns of the Ordinance and the procedure shall constitute grounds for rejection of any future application by the organization to acquire property under the Ordinance, at the discretion of the City t 1 1 11 The terms and definitions used in the procedure shall be the same as defined in the Ordinance. 12. The terms of the -procedure may be amended from time to tune by RPM and Housing Department to ensure compliance with applicable laws and the Ordinance. ADOPTED (Date) Director, Engineering Department Director, Housing Department