HomeMy WebLinkAboutResolution 4069-03-2012A Resolution
NO. 4069-03-2012
SUPPORTING A LOW INCOME HOUSING TAX CREDIT APPLICATION FOR THE
RESERVE AT WESTERN CENTER 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 of Fort Worth a
high priority;
WHEREAS, the Western Center Reserve, LLC, an affiliate of the Miller Valentine Group,
proposes to construct The Reserve at Western Center, a multifamily apartment complex to be located at
the southwest corner of Western Center Boulevard and Watauga Smithfield Road ; and
WHEREAS, the Miller Valentine Group has submitted an application to the Texas Department
of Housing and Community Affairs ( "TDHCA ") for 2012 Low Income Housing Tax Credits ( "LIHTC ")
for The Reserve at Western Center proposing construction of a new 120 -unit apartment 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 the Western Center Reserve, LLC to the
Texas Department of Housing and Community Affairs for Low Income Housing Tax Credits for the
purpose of the development of The Reserve at Western Center apartments.
Adopted this 201" day of March, 2012.
ATTEST:
By:
Mary J. Kayser, y ecr ary
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77
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved, on 3/20/2012 - Resolution No. 4069 -03 -2012 r E
DATE: Tuesday, March 20, 2012 REFERENCE NO.: * *C -25489
LOG NAME: 17RESERVEATWESTERNCENTER
SUBJECT:
Authorize Change of Use and Expenditure in the Amount of $368,000.00 of HOME Investment
Partnerships Program Grant Funds to Miller Valentine Group or its Designated Affiliate, in the Form of an
Interim Loan for the Reserve at Western Center, a Multifamily Housing Development to Be Located at
Western Center Boulevard and Blue Mound 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 in the amount of $368,000.00 in prior years HOME
Investment Partnerships Program Grant funds to the Miller Valentine Group or its designated affiliate, in
the form of a interim repayment loan for the development of the Reserve at Western Center;
4. Authorize the City Manager or his designee to execute a Conditional Commitment with the Miller
Valentine Group or its designated affiliate, for a interim repayment loan that conditions funding on
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 Investment Partnerships Program
Contract with the Miller Valentine Group or its designated affiliate, for the Development of a term
beginning on the date of execution of the contract and ending on the date the 20 year affordability 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 Miller Valentine Group 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 of Fort Worth policies and applicable laws and regulations governing the use
of Federal Grant Funds; and
Logname: 17RESERVEATWESTERNCENTER Pagel of 3
8. Adopt 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 Partnership Program (HOME) grant funds to developers applying to the
Texas Department of Housing and Community Affairs (TDHCA) for Low Income Housing Tax Credits
( LIHTC). The Miller Valentine Group (MVG) submitted a response requesting $368,000.00 of the
available HOME funds for construction costs related to the development of the Reserve at Western Center
(Development), a multifamily complex to be located at the intersection of Western Center Boulevard and
Blue Mound Road. Staff reviewed all RFP submissions and recommends the award to MVG or an
affiliate, of $368,000.00 in HOME funds in the form of a subordinate interim repayment 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). Unit amenities will include nine foot
ceilings, ceiling fans and berber carpet. Resident services may include after school care, tutoring, home
finance seminars and English as Second Language classes. Services offered are typically selected by the
residents based on a survey. The complex will include amenities such as a pool, fitness center, computer
learning center, community room and barbeque grills.
MVG has submitted an application for LIHTC to the TDHCA as part of the financing for the Development.
Total Development cost is approximately $23,500,000.
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 grant 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 $368,000.00 in 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.
Logname: 17RESERVEATWESTERNCENTER Page 2 of 3
FUND CENTERS:
TO Fu nd/Accou nt/C enters FROM Fund /Account/Centers
GR76 539120 017206461170 $368.000.00 GR76 539120 017206461990
CERTIFICATIONS:
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Jay Chapa (5804)
Cynthia Garcia (8187)
Additional Information Contact: Avis F. Chaisson (6342)
$368.000.00
Logname: 17RESERVEATWESTERNCENTER Page 3 of 3