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HomeMy WebLinkAbout2021/02/23-Attachments-M&C 21-0115City of Fort Worth, Texas Mayor and Council Communication DATE: 02/16/21 M&C FILE NUMBER: M&C 21-0115 LOG NAME: 192021 HTC SUBJECT (CD 2, 3, 5, 8 and 9) Consider and Adopt Resolutions of Support and Resolutions of No Objection for 2021 Competitive Housing Tax Credit Applications, Approve Commitments of Development Funding, Determine which Developments Contribute More than any Others to the City's Concerted Revitalization Efforts, Acknowledge the One Mile Three Year Rule and Make Related Determinations RECOMMENDATION: It is recommended that the City Council: 1. Acknowledge the receipt of requests for City support for applications to the Texas Department of Housing and Community Affairs for 2021 Competitive (9%) Housing Tax Credits from various developers; 2. Consider and adopt the attached Resolutions of Support and Resolutions of No Objection for 2021 applications for Competitive (9%) Housing Tax Credits for the multifamily housing developments listed below to be located at various sites throughout the City; 3. Approve fee waivers in an amount not to exceed $2,500.00 as the City's commitment of development funding for each of the developments that receive a Resolution of Support, find that the fee waivers for these developments serve the public purpose of providing quality, accessible, affordable housing for low to moderate income households in accordance with the City's Comprehensive Plan and Annual Action Plan, and find that adequate controls are in place through the Neighborhood Services Department to carry out such public purpose; 4. Determine that Retta Street Lofts, Crossroads Apartments, Clifton Riverside, Magnolia Lofts, Hughes House, and Renaissance Square III are the developments that contribute more than any others to the City's concerted revitalization efforts either in an Urban Village, a Tax Increment Financing District, a Neighborhood Empowerment Zone, a distinct area within a Neighborhood Empowerment Zone with a Strategic Plan, or an adopted Transformation Plan; 5. Acknowledge that the Crossroads Apartments and Hughes House are each located in a census tract with a poverty rate above 40 percent for individuals, and authorize these developments to move forward with their applications for tax credits; 6. Acknowledge that Crossroads Apartments and Clifton Riverside are each located one linear mile or less from developments that serve the same target population and which received an allocation of Housing Tax Credits for new construction and adaptive reuse; and 7. Acknowledge that Renaissance Square I II is located in a census tract that has more than 20 percent Housing Tax Credits units per total households, and authorize this development to move forward with its application for tax credits. DISCUSSION: On November 17, 2020, the City Council adopted a policy for City support of applications to the Texas Department of Housing and Community Affairs (TDHCA) for Noncompetitive (4%) and Competitive (9%) Housing Tax Credits and for City commitments of development funding (M&C 20- 0847). This year the City received twelve applications from developers requesting Resolutions of Support for proposed 9% tax credit developments in Fort Worth. Two applications were withdrawn for consideration, and one application did not meet the policy to receive a resolution of support. Additionally, since the Work Session briefing on February 2, the Sarita on Alston has withdrawn their application for a resolution of support. Staff has reviewed the applications for consistency with the City's policy. Resolutions of Support: Staff requests that the City Council consider and adopt Resolutions of Support for the following developments as they have met the unit set aside criteria and notification requirements outlined in the City's policy. Additionally, all of these developments are located in close proximity to jobs, retail, transit and services. Resolutions of Support. Local Development Funding, Concerted Revitalization Plan: The following developments are also recommended to receive local Commitments of Development Funding and are the ones that contribute more than any other to the City's Concerted Revitalization Plans: • Retta Street Lofts to be developed by CSH Retta Street Lofts, Ltd., an affiliate of Brompton Community Housing Development Corporation, to be located at 2904 East Belknap Street (Council District 9). The site for the proposed development is zoned "MU-1" - Low Intensity Mixed - Use, proposed to be changed to "UR" - Urban Residential if a single use is not allowed . The proposed development will not be tax exempt. • Crossroads Apartments to be developed by Crossroads Apartments, LP, an affiliate of Union Gospel Mission of Tarrant County, and to be located at 1105 East Lancaster (Council District 8). The site for the proposed development is zoned "MU-2" - High Intensity Mixed -Use. The proposed development will not be tax exempt. • Clifton Riverside to be developed by Clifton Riverside, LLC, an affiliate of Saigebrook Development, LLC and O-SDA Industries, LLC, and to be located at 2406 and 2412 East Belknap Street (Council District 8). The site for the proposed development is zoned "MU-2" - High Intensity Mixed -Use. The proposed development will not be tax exempt. • Magnolia Lofts to be developed by Magnolia Lofts Ltd., an affiliate of The NRP Group, to be located at 300 East Magnolia Avenue (Council District 8). The site for the proposed development is zoned "NS" — Near Southside. The proposed development will be exempt from property taxes. • Hughes House to be developed by FW Hughes House, LP, an affiliate of Fort Worth Housing Solutions, to be located at 4830 and 4908 East Rosedale Street (Council District 5). The site for the proposed development is zoned "PD" - Planned Development. The proposed development will be exempt from property taxes. • Renaissance Square III to be developed by Columbia Renaissance Square III, LP, an affiliate of Columbia Residential and to be located at 2757 Moresby Street (Council District 8). The site for the proposed development is zoned "PD" - Planned Development. The proposed development will not be tax exempt. Resolution of Support and Local Development Funding: The following developments are also recommended to receive local Commitments of Development Funding: • Parmore Plaza Pkwv to be developed by Parmore Plaza Pkwy, LP, an affiliate of JPI, to be located at the northeast corner of Plaza Parkway and Lands End Boulevard (Council District 3). The site for the proposed development is zoned "MU-1 " — Low Intensity Mixed -Use. The proposed development will not be tax exempt. • Peak Street Lofts to be developed by CSH Peak Street Lofts, Ltd., an affiliate of Brompton Community Housing Development Corporation, to be located at 2510 Decatur Avenue (Council District 2). The site for the proposed development is zoned "J" - Medium Industrial, proposed to be changed to "UR" - Urban Residential. The proposed development will not be tax exempt. Commitment of Development Funding_ The policy allows a local commitment of development funding at City Council discretion. This commitment of development funding qualifies tax credit applicants for an additional point and increases the competitiveness of their applications to TDHCA. Staff requests that City Council approve commitments of development funding in the form of fee waivers in an amount not to exceed $2,500.00 for each development recommended for a Resolution of Support. The fee waiver amount may be applied to (a) building permit related fees (including Plan Reviews, Inspections and Re -inspection Fees); (b) Plat/Replat Application Fees; (c) Board of Adjustment Application Fees; (d) Demolition Fees; (e) Structure Moving Fees; (f) Zoning Fees; (g) Street/Alley and Utility Easement Vacation Application Fees; (h) Temporary Encroachment Fees; (i) Consent/Encroachment Agreement Application Fees; Q) Urban Forestry Application Fees; (k) Sign Permit Fees; (1) Community Facilities Agreement (CFA) Application Fees; and (m) Street Closure Fees. Fee waivers will be conditioned upon the development receiving an award of tax credits from TDHCA. The City's Neighborhood Services Department will be responsible for verifying that the public purpose for the fee waivers is carried out. Upon approval, permitting and related fees will be waived in an amount up to $2,500.00 to assist in facilitating the goals of the City's Comprehensive Plan and Annual Action Plan. Concerted Revitalization Plan: TDHCA rules state that an application may receive additional points if the proposed development is identified in a resolution as contributing more than any other development to a city or county's concerted revitalization efforts. The City has created Urban Villages to help promote central city revitalization. They are districts which are more compact, contain a greater mix of land uses, and give greater emphasis to pedestrian and transit access. The City has created 12 Tax Increment Financing zones (TIFs) as authorized by the Texas Tax Code. TIFs allow local governments to publicly finance needed structural improvements and enhanced infrastructure within defined areas. The City's Neighborhood Empowerment Zones (NEZs) were created to promote affordable housing and economic development in the designated zone. Four NEZs have adopted Strategic Plans for certain distinct areas located in the larger NEZ to guide the rebuilding neighborhoods with compatible quality infill housing and appropriate mixed -use development in commercial areas. The City Council adopted the Cavile Place/Historic Stop Six Transformation Plan in 2014. The City's Transformation Plans are comprehensive strategies to revitalize specific areas or neighborhoods. All of the City's Urban Villages, TIFs, NEZs, and Transformation Plans are included in the City's annual Comprehensive Plan as part of its goal of revitalizing central city neighborhoods and commercial districts (2020 Comprehensive Plan, Part II, Chapter 5: Housing, and Part 111, Chapter 10: Economic Development). The Cavile Place/Historic Stop Six Transformation Plan is located in Appendix A of the Comprehensive Plan. The Retta Street Lofts, Crossroads Apartments, Clifton Riverside, Magnolia Lofts, Hughes House, and Renaissance Square III are developments located either in an Urban Village, a TIF, or a NEZ created by City Council, a distinct area within a NEZ with a Strategic Plan, or an area that has an adopted Transformation Plan. Staff determined that these developments will significantly contribute to the City's ongoing revitalization efforts in each of the Urban Villages, TIFs, NEZs, or Transformation Plan areas in which they will be located since the recommended developments are new affordable housing for households earning at or below 80 percent of Area Median Income. In addition, the increased density of this new housing will support the new retail, office and other housing development located or being developed in each Urban Village, TIF, NEZ, or Transformation Plan area. Staff recommends that the City Council adopt the attached Resolutions determining that the Retta Street Lofts, Crossroads Apartments, Clifton Riverside, Magnolia Lofts, Hughes House, and Renaissance Square III are developments that contribute more than any other developments to the City's concerted revitalization efforts underway in the Urban Villages, TIFs, NEZs, or Transformation Plan areas in which they are located. Limitations on Developments With Certain Neighborhood Risk Factors: TDHCA rules state that if a proposed development will be located in a census tract with a poverty rate above 40 percent for individuals, the governing body of the appropriate jurisdiction must acknowledge the high poverty rate and authorize the development to move forward with its application for tax credits. The Crossroads Apartments and Hughes House will each be located in a census tract with a poverty rate above 40 percent for individuals. Staff recommends that City Council vote to acknowledge the high poverty rate and authorize both of these developments to move forward with their tax credit applications. Additionally, TDHCA rules state that if a proposed development will be located in a census tract with more than 20 percent Housing Tax Credit units per total households as established by the five year American Community Survey, it will be ineligible for tax credits unless the governing body of the jurisdiction votes to specifically allow it and also submits a Resolution to TDHCA stating that the proposed development is consistent with the jurisdiction's federal obligation to affirmatively further fair housing. Renaissance Square III will be located in a census tract in which more than 20 percent of the total households are Housing Tax Credit units. Staff recommends that City Council vote to specifically allow this development and approve the additional determination in the attached Resolution of Support that it is consistent with the City's obligation to affirmatively further fair housing. One Year Three Mile Rule The Clifton Riverside and Crossroads Apartments are each located one linear mile or less from developments that serve the same target population and which received an allocation of Housing Tax Credits for new construction and adaptive reuse. The governing body of the municipality where the proposed development is to be located must specifically vote to allow the construction of a new development that is within one linear mile or less from a development that serves the same target population. These proposed developments are subject to all applicable City laws, ordinances, policies and procedures including those pertaining to zoning changes and annexation. Council member support for purposes of approving these Resolutions does not constitute approval of any required zoning change or annexation. The proposed developments are located in COUNCIL DISTRICTS 2, 3, 5, 8 and 9. A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that approval of these recommendations will have no material effect on City funds. Submitted for City Manager's Office W. Fernando Costa 6122 Originating Business Unit Head: Victor Turner 8187 Additional Information Contact: Chad La Roque 2661