HomeMy WebLinkAboutResolution 4068-03-2012A Resolution
NO. 4068-03-2012
SUPPORTING A LOW INCOME HOUSING TAX CREDIT APPLICATION FOR THE
HARMON VILLAS APARTMENTS
WHEREAS, the City of Fort Worth's 2012 Comprehensive Plan is supportive of the
preservation, improvement, and development of quality affordable accessible rental and ownership
housing;
WHEREAS, the City of Fort Worth's 2010 -2013 Consolidated Plan makes the development of
quality affordable accessible rental housing units for low income residents of the City a high priority;
WHEREAS, Harmon Villas Investments, L.P., an affiliate of Sphinx Development Corporation,
has proposed to construct the Harmon Villas Apartments at 9592 Harmon Road in Fort Worth; and
WHEREAS, Harmon Villas Investments, L.P. intends to submit an application to the Texas
Department of Housing and Community Affairs for 2012 Low Income Housing Tax Credits for the
Harmon Villas apartments proposing construction of a new 150 -unit complex;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH, TEXAS:
The City of Fort Worth supports the application of Harmon Investments, L.P. to the Texas
Department of Housing and Community Affairs for Low Income Housing Tax Credits for the purpose of
the development of the Harmon Villas apartments.
Adopted this 201h day of March, 2012.
ATTEST:
By:
Mary J. Kays r, y S retary
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 3/20/2012 - Resolution No. 4068 -03 -2012
DATE: Tuesday, March 20, 2012 REFERENCE NO.: * *C -25488
LOG NAME: 17HARMONVILLAS
SUBJECT:
Authorize Change of Use and Expenditure of $300,000.00 of HOME Investment Partnerships Program
Grant Funds to Sphinx Development Corporation or its Designated Affiliate, in the Form of an Interim Loan
for Harmon Villas, a Multifamily Housing Development to Be Located at 9592 Harmon Road, Authorize
Execution of a Conditional Commitment and Contract, Authorize Substantial Amendment to the City of Fort
Worth's 2009 -2010 and 2010 -2011 Action Plans and Substitution of Funding Years and Adopt Resolution
Supporting the 2012 Low Income Housing Tax Credit Application for the Development (COUNCIL
DISTRICT 2)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize a substantial Amendment to the City of Fort Worth's 2009 -2010 and 2010 -2011 Action Plans;
2. Authorize substitution of current and prior funding years in order to meet commitment, disbursement
and expenditure deadlines for grant funds from the United States Department of Housing and Urban
Development;
3. Authorize Change in Use and expenditure of $300,000.00 in prior years HOME Investment Partnerships
Program Grant funds to the Sphinx Development Corporation or its designated affiliate, in the form of a
interim repayment loan for the development of Harmon Villas;
4. Authorize the City Manager or his designee to execute a Conditional Commitment with the Sphinx
Development Corporation or its designated affiliate, for a interim repayment loan that conditions funding
on the completion of the Environmental Review, satisfactory completion of HOME requirements, and
among other things, receipt of Low Income Housing Tax Credits from the Texas Department of Housing
and Community Affairs;
5. Authorize the City Manager or his designee to execute a HOME contract with Sphinx Development
Corporation or its designated affiliate, for the Development for a term beginning on the date of execution
of the contract and ending on the date the 20 year affordbility period expires;
6. Authorize the City Manager or his designee to extend or renew the Conditional Commitment or the
Contract for up to one year if Sphinx Development Corporation requests an extension and such extension
is necessary for completion of the Development;
7. Authorize the City Manager or his designee to amend the Conditional Commitment or the Contract if
necessary to achieve project goals provided that the Amendment is within the scope of the Development
and in compliance with City policies and applicable laws and regulations governing the use of federal
grant funds; and
Logname: 17HARMONVILLAS Pagel of 3
8. Adopt the attached Resolution supporting the 2012 Low Income Housing Tax Credit application.
DISCUSSION:
The Housing and Economic Development Department issued a Request For Proposals (RFP) in January
to award HOME Investment Partnerships Program (HOME) Grant funds to developers applying to the
Texas Department of Housing and Community Development Affairs (TDHCA) for Low Income Housing
Tax Credits ( LIHTC). On January 20, 2012, the Sphinx Development Corporation (SDC) submitted a
response requesting $300,000.00 of the available HOME funds for construction costs related to the
development of the Harmon Villas (Development), a 150 unit multifamily complex to be located at 9592
Harmon Road. Staff reviewed all RFP submissions and recommends the award to SDC or an affiliate, of
$300,000.00 in HOME funds in the form of a subordinate interim loan for eligible costs for the
Development.
The Development will consist of one, two and three - bedroom units. All of the units will be available for rent
to households earning 60 percent or less of Area Median Income (AMI) as determined by the United
States Department of Housing and Urban Development (HUD). SDC will hire a Social Services
Coordinator to coordinate various services and activities for tenants. The complex will include amenities
such as a controlled access gates, furnished clubhouse, fitness room, activity room, water features and a
gazebo.
SDC has submitted an application for LIHTC to the TDHCA as part of the financing for the Development.
Total Development cost is approximately $19,801,920.00.
Staff recommends the following HOME loan terms:
i. Designate HOME - assisted units according to HOME regulations with a 20 Year Affordability Period;
ii. Secure payment and performance of the HOME requirements by a Deed of Trust on the real property
for the length of the Affordability Period;
iii. One percent interest rate; and
iv. Repayment of principal and accrued interest is due three years from the date of the loan documents.
The commitment of HOME funds is conditioned upon the following:
i. Receipt of funds from HUD;
ii. Satisfactory completion of the environmental review per 24 CFR Part 58;
iii. Authorization to use grant funds from HUD; and
iv. Award of LIHTC by the TDHCA.
Staff recommends the change in use and expenditure of $300,000.00 of HOME funds for the
Development. HOME funds may be used for any eligible cost related to this Development. The Action
Plan funding years selected may vary and be substituted based on the Principle of First In, First Out, in
order to expend oldest grant funds first. The Development will benefit low and very low income citizens by
providing them with quality, accessible, affordable housing. A public comment period on the intent to use
HOME funds was held from February 15, 2012 to March 15, 2012. Any comments are maintained by the
Housing and Economic Development Department in accordance with federal regulations.
This development is located in COUNCIL DISTRICT 2.
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that funds are available in the current operating
budget, as appropriated, of the Grants Fund.
FUND CENTERS:
Logname: 17HARMONVILLAS Page 2 of 3
TO Fund /Account /Centers FROM Fund /Account/Centers
GR76 539120 017206461180 $300,000.00 GR76 539120 017206461990
CERTIFICATIONS:
Submitted for City Manager's Office by
Originating Department Head:
Additional Information Contact:
Fernando Costa (6122)
Jay Chapa (5804)
Cynthia Garcia (8187)
Avis F. Chaisson (6342)
$300,000.00
Logname: 17HARMONVILLAS Page 3 of 3