HomeMy WebLinkAboutContract 27548 s IT Y $ECRETARY
-A
..,ONTRACT NO.
INERLCAL AGREEMENT
This INTERL CAL AGREEMENT' the Agreement is made and entered into by and
between the following,government entities:
The CITY OF FORT WORTR TEXAS, a home-rule rn n ci al corporation,
(hereafter wed "CITE) and
The TARRANT COUNTY Y NI A. COLLEGE DISTRICT, a pofitical subdivision
of the State of Texas (hereafter coed""JUNIOR COLLEGE").
RECII
1. This Agreement "is made under the authonky granted to CITY and the JUNIOR
COLLEGE by and pursuant to Texas Government Code Chapter 791, known as the
INTERLOCAL COOPERATION ACT..
2. By, its adoption of M&C tom-1x284 and Ordinance No.13 5 33 ("the Ordinance')
on duly 28,1998, the City Council of the CITY established a procedure to convey t
foreclosed sed r "erty to e 'b,le housing nonprofit organizations for the development of low
income housing pursuant to Section 34.015 of the Texas Propel" Tax Code. A copy of the
wrd n .nee is attached as Exhibit "N' d incorporated for all purposes. The Ordinance has
been reviewed by the std"at the JUNIOR COLLEGE and has, been presented to its board for
approval.
3. By its adoption of M&C 1 2284, the City Council of CITY has also authoiu* ed this
Agreement with JLWIOR COLLEGE to obtain JUNIOR C LLEGE's consent to the
conveyance met nod stated 'in the rdi� ee and to e designated as the signatory +gin behalf of
JUNIOR COLLEGE to execute Tax Resale Deeds in the conveyance Hander the Ordinance.
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copy of the proposed Tax Resale Dee�d 'is attached as Exhibi"t D and corporated for all
purposes.
4. The JUNIOR COLLEGE's Board of Directors has approved this Agreement at its
meeting of 1998.
NOW TBEREFORE, in consideration of the mutual covenants herein expressed, -the
parties agree as follows-.
AGREEMENI
1. JUNIOR COLLEGE hereby approves and consents to the method of property
conveyance as stated in the Ordinance.
2. JUNIOR COLLEGE further designates and authon'zes the City Manager or any
Assistant City Manager of the CITY to execute Tax Resale Deeds to be used m' property
conveyance pursuant to the Ordinance on behalf'of JUNIOR COLLEGE.
3. This Agreement has been duly authorized by the governing, bodies of the CITY and
JUNIOR COLLEGE.
4. This Agreement, and the authority granted herein, shall continue M" effect until
terminated by notice 'in writing from one party to the other at least thirty(3 0) days prior to the
effective ter r M' at*lon date.
2
EXECUTED this L-2-Way of' �,e�
CrTY OF FORT WORTH TARRA NT COUNTY JUNIOR COLLEGE DISTRICT
000 Tbrockmorton Sweet 1 10 Houston Street
Fort Wow Tee 76102 Fort Wo�rdi,"Texas 76102
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By B
Y
Assistant City alter
d'
ATTEST, ATTESP
Ole
By: By
m
ofia ear rn
City Secretary
contract Authorization
APPROVED AS TO
FORM AND LEGALITY Date
Assis�ant+ity Attomey
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ity of Fort Worth, Texas
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yo n C oun L
A" a a
L;OILmiuni ;4tion
at 7/218/98 Reference Number Log Name Paige
**G,,l 22814 05LOW 1 of 2
Subject 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
)it.
Pursuant to Section 34.0115 of the Texas Property Tax, Code , and
2. Authorize the City Manager to enter into interlocal agreements other taxing entities, to obta,in, 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 341.015, of the Texas Property Tax Code, as amended in 119,97, allows municipalities to
determine the manner in which tax foreclosure properties can be transferred, to qualified n profit
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 (incluud:ing 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-pr ofilt organization within five (51)
years from the data 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 difficuilt 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 31) place vacant
properties black 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 dieeld 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.
i oj Fort, Worth, Texas
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Date Reference Number, Lolig Name age
7/28/98 **Gmll 2284 05LOW 2 of 2
Ubj_e___Ct OR INANCE EST I HING 0-CMDURE FOR—THE ___G VEYANCE OF--
FORECLOSURE PROPERTY TO QUALIFIED NONPROFIT ORGAN IZATIONS FOR
LOW I:NICOME, HOUSING,
The Safety and Community Development Corn mitt ee endorsed the procedures in the proposed
ordinance on A,piril 14, 1998. A copy of the procedure is attached for additional 'Information to the City
Council. City staffhave also provided other local taxing entities with a copy of the proposed ordinance,
considered their comments and requested their consent to the conveyance miethold 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 fury dis.
LW
..........
Submitted for City Manager's FUND, AC'COU'NfT CENTER AMOUNT CITY SECRETARY
Office by-., (to)
Libby Watson 6183
Origlinating Department Head.:
Jerome Walker 71537 (from), APPROVED 7-28-98
Additional Informati"on Contact:
Jerome Walker 75 3 7
L'Ity of Port
�,dw& %W� C J'L
mayor n 'oun
CoHanun]LC T..JLoln
■ M
Date Reference Number Log Nate Page
7/28/98 **G-1 2284 05LOW 1 of 2
Subject ORDINANCE ESTABLISHIN G PROCEDURES FOR THE CONVEYANCE OF TAX
FORECLOSURE PROPERTY" TO, QUALIFIED NONPROFIT ORGAN I TI N' 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 r anizati> ns for the Development of Housing, for Low Incomile Individuals and Families
Pursuant to Section 34.015 of the Texas Property Tax Code,''; and
2. Authorize the City Manager to enter into interl cal 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 onvey pr operty pursuant to the orld ii n ruse.
Section 34.015 of the Texas Property Tux Cede, 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 ent f lever income e housing. The statute enables the City to sell the
properties to qualified nonprofit organizations without competitive bids for less than the udgmeu nt
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 tux foreclosure property)
was shared, with and approved by other local Mixing entities. Tarrant County, as a condition of its
approval of the, current policy, required that the City insert a "reverter clause''" into the tux resale dead
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 ha levy income housing, it autornatically reverts
hack 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 Hous,ing Departments and the Real Property
Management Division of the Engineering: Department developed the proposed ordinance to 1),
i mplement Sec.. 34.0115, 2 encourage the development of affordable housing and 3 place vacant
properties black on the tax rolls. Adoption of the proposed ordinance will also provide an incentive for
qualified nonprofit organizations, including the Fart Worth Housing usin inance Corporation, to expand their
activities t reug,h 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. Beca,u,se the proposed dead 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 Port Worth, Texas
e41 0
M, coun 11
C0,1LUMUnic tion
Date Reference Number Log Name --Page
7/28/98 **G=1 2284 05LOW 2 of 2
Subject ___GRDIN NCE, ESTABLISHING PR CEDURES FOR THE CONVEYANC OF '-"TAX,
FORECLOSURE PROPERTY 'TO QUALIFIED NONPROFIT ORGANIZATIONS FOR
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 iinf rmation, to the City
Council'. City staff have also pr ideld other local taxing entities, with a, copy of the propose+ ! ordinance,
considered their comments and requested their consent, to the conveyance method, stated in the
ordinance.
This is a city-wide pirogram and covers all Council Districts.
FISCAL IN FAR MATIO,N CERTIIFI,CATION,-,
The Finance Director certifies that th,is, action, will have no material effect on City funds.
LWJ
Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by.- (to)
Libby Watson 6183
Orig,inating Department Head:
Jerome Walker 7537 from APPROVED 7-28-98
Addition Information Contact,.,
Jerome Walker 7537