HomeMy WebLinkAboutResolution Fort Worth Housing Finance Corporation (FWHFC) FWHFC-2022-12RESOLUTION NO. FWHFC-2022-12
FORT WORTH HOUSING FINANCE CORPORATION
APPROVING ANAMENDMENT TO FWHFC RESOLUTION 2021-20 TO CHANGE A
PORTION OF THE FUNDING IN THEAMOUNT OF $370,281.65 FROMA
FORGIVABLE SUBORDINATE LOAN TO A GRANT TO TOBIAS PLACE, LP FOR
REIMBURSEMENT OF SPECIFIED PRE -DEVELOPMENT COSTS ASSOCIATED WITH
THE DEVELOPMENT OF THE TOBIAS PLACE APARTMENTS LOCATED AT 505
WEST BIDDISON STREET AND 3500 JENNINGS AVENUE
WHEREAS, the City Council of the City of Fort Worth ("City") has adopted
development and revitalization of the City's neighborhoods and affordable housing stock as a
strategic goal, and City residents and the City Council have determined that quality accessible
affordable housing is needed for moderate, low and very low-income City residents;
WHEREAS, the City Council created the Fort Worth Housing Finance Corporation (the
"Corporation") in 1979 pursuant to the Texas Housing Finance Corporations Act, Chapter 394
of the Texas Local Government Code, to facilitate neighborhood revitalization and housing
initiatives in the City, including but not limited to issuing tax exempt bonds, developing,
rehabilitating and promoting housing, and assisting low to moderate income City residents in
acquiring quality, accessible, affordable housing through lending and construction activities;
WHEREAS, the Corporation seeks to promote neighborhood revitalization and foster the
development of affordable, quality housing throughout the City by developing partnerships
among the City, the Corporation, local governments, lenders, private industry and neighborhood -
based nonprofit housing organizations;
WHEREAS, Ojala Partners, LP ("Ojala"), a Texas limited partnership, is a developer of
affordable housing and has developed over 5,000 affordable and mixed income housing units in
Texas;
WHEREAS, on October 19, 2021, the Board of the Corporation (the "Board")
authorized the hiring of John C. Shackelford, Shackeeford, Bowen, McKinley & Norton, LLP, as
legal counsel to assist the Corporation with the negotiation of terms and to assist with Housing
Tax Credit and multifamily housing revenue bond applications for the Project and the
development, financing, construction and management of Tobias Place;
WHEREAS, the Board of the Corporation has approved an agreement with Ojala to
develop the Tobias Place Apartments, an approximately 288-unit multifamily housing
development to be located at 505 West Biddison Street and 3500 Jennings Avenue (the
"Project");
WHEREAS, Ojala, on behalf of the Partnership, will apply for 2023 Non -Competitive
(4%) Housing Tax Credits from the Texas Department of Housing and Community Affairs
RESOLUTION NO. FWHFC-2022-12
PAGE 2
("TDHCA") and will apply for multifamily revenue bonds from the Tarrant County Housing
Finance Corporation to finance a portion of the costs of the Project;
WHEREAS, the Corporation has agreed to participate in the Project by creating Tobias
Place GP, LLC, a Texas limited liability company (the "GP"), a single purpose entity to serve as
general partner of Tobias Place, LP, a Texas limited partnership (the "Partnership"), that will
own the Project;
WHEREAS, the Corporation has also approved various actions relating to the creation
and operation of the GP, the Partnership, and other actions necessary for the development of the
Proj ect;
WHEREAS, Ojala, on behalf of the Partnership, applied to the Corporation and was
awarded a forgivable, subordinate loan in an amount up to $1,750,000.00 in gap financing for the
Project that could be used for either land acquisition or loaned to the Partnership to cover
development costs;
WHEREAS, $1,379,718.35 of the funds was used by the Corporation to directly acquire
the land, which proportionately reduced the amount of funds available as loan funds from the
Corporation to the Partnership to $370,281.65 ("Remaining Funds");
WHEREAS, tax credit regulations, specifically regulations requiring that no less than
50% of funding for 4% projects must come from bond proceeds ("the 50% test"), limit the
amount of debt that can be carried by the Project;
WHEREAS, due to market conditions, it is unlikely that the Project can sustain
additional debt, even forgivable debt, without violating the 50% test;
WHEREAS, due to unexpected delays and challenges with the development site, the
Partnership has invested significant funds into certain pre -development costs associated with the
Project;
WHEREAS, the Corporation will not join the Partnership until the Project's financial
closing occurs, which is currently anticipated to be late summer 2023;
WHEREAS, Corporation staff recommends that the Corporation reimburse the
Partnership immediately for specific pre -development costs in the form of a grant instead of a
forgivable loan to ensure repayment occurs while avoiding the potential of the Project failing the
50% test;
WHEREAS, the funds would not be recoverable in the event that the Project is not
constructed and the Corporation will have no remedy to recover the funds once paid;
WHEREAS, to ensure the Remaining Funds are used to reimburse only necessary pre -
development costs, staff proposes repaying only those costs listed in Exhibit A, attached hereto,
up to the full amount of the Remaining Funds;
RESOLUTION NO. FWHFC-2022-12
PAGE 3
WHEREAS, the Board desires to amend FWHFC Resolution 2021-20 to allow the
Remaining Funds in the amount of $370,281.65 to be paid to the Partnership in the form of a
grant instead of a forgivable loan to reimburse for the specified pre -development costs listed in
Exhibit A.
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE FORT WORTH HOUSING FINANCE CORPORATION:
THAT the Board amends FWHFC-2021-20 to allow the Corporation to immediately pay
the Partnership up to $370,281.65 in the form of a grant instead of a forgivable loan for
the repayment of the pre -development costs listed in Exhibit A.
2. THAT Fernando Costa, General Manager of the Corporation, or Victor Turner, Assistant
General Manager of the Corporation, or their duly appointed successors, are each
authorized to execute and deliver any and all necessary documents for and on behalf of
the Corporation necessary to cause such payment.
3. THAT all tern -is of FWHFC-2021-20 not amended herein shall remain in full force and
effect.
4. THAT this Resolution takes effect from the date of its adoption.
AND IT IS SO RESOLVED.
Adopted October 25, 2022.
FORT WORTH HOUSING FINANCE CORPORATION
By:
Carlos Flores
President
Attest:
Jannette S. Goodall
Corporate Secretary
RESOLUTION NO. FWHFC-2022-12
PAGE 4
ATTACHMENT I
Grant Terms
The following pre -development costs will be reimbursed at the listed amounts to the
Partnership up to the full amount of the Remaining Funds.
Remainder to the Partnership
Soft Cost Consultant Fees Invoice 4 Consultant Type Invoice Date Charges
Archon Corporation
Invoice 8062-22212
Architectural
2/28/2022
$ 89,225.00
Archon Corporation
Invoice 8072-22112
Architectural
3/31/2022
$ 157,063.84
Atlas Bay
Invoice 1353
Modeling/3-D arch models
2/15/2022
2,100.00
Cardinal Strategies
Environmental Service
Invoice 19588
Environmental/SWPPP
3/18/2022
1,090.00
ECS Southwest, LLP
Invoice 967019
Geoteehnical
3/2/2022
2,500.00
Land Design
Invoice 113225
Site Planning
3/7/2022
8,141.25
Land Design
Invoice 113964
Site Planning
4/12/2022
10,795.00
Land Design
Invoice 114659
Site Planning
5/9/2022
6,140.00
Land Design
Invoice 115581
Site Planning
6/9/2022
6,837.50
Spiars Engineering & Surveying
Invoice 19577
Engineering, Storm water
10/31/2021
6,000.00
Spiars Engineering & Surveying
Invoice 19764
Engineering, Storm water
11/30/2021
10,070.63
Spiars Engineering & Surveying
Invoice 20282
Engineering, Storm water
2/28/2022
41,000.00
Terracon Consultants, Inc.
Invoice TG41720
Environmental/Supp. Site Invest.
2/28/2022
17,950.00
Terracon Consultants, Inc.
Invoice TG41712
Environmental/VCP certificates
2/28/2022
11,434.55
Total Consultant Fees
$ 370,347.77
Amount
IIFC Allocation
1,750,000.00
Purchase Price
1,375,000.00
Closing Costs
4,718.35
I-IFC Brought to Close
1,379,718.35
"Remainder"
370,281.65
Current Soft Costs to Reimburse
370,347.77
Amount not reimbursed
(66.12)