HomeMy WebLinkAboutResolution Fort Worth Housing Finance Corporation (FWHFC) FWHFC-2022-15RESOLUTION NO. FWHFC-2022-15
FORT WORTH HOUSING FINANCE CORPORATION
A UTHORIZING ANAMENOMENT TO FWHFC RESOL UTION 2022-05,
AS AMENDED BY FWHFC 2022-13, TO ALLOW THE CORPORATION OR AN
AFFILIATE TO PARTICIPATE IN JOINT VENTURE OR ACT AS THE GENERAL
CONTRACTOR FOR THE DEVELPMENT OF PALLADIUM OAK GROVE
APARTMENTS LOCATED AT 840 AND 1000 OAK GROVE ROAD
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, Palladium USA, Inc. ("Palladium"), a Delaware corporation, is a
developer of affordable housing and has developed over 25 affordable and mixed income
multifamily properties in Texas;
WHEREAS, the Board of the Corporation has approved an agreement with Palladium to
develop the Palladium Oak Grove Apartments, an approximately 240-unit multifamily housing
development to be located at 840 and 1000 Oak Grove Road (the "Project");
WHEREAS, the Corporation has agreed to participate in the Project by ratifying the
formation of and entering PFW Oak Grove GP, LLC, a Texas limited liability company (the
"GP"), a single purpose entity to serve as general partner of Palladium Oak Grove, Ltd., 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;
RESOLUTION NO. FWHFC-2022-15
PAGE
WHEREAS, Palladium requested and the Corporation agreed to serve as the Project's
General Contractor in order to take advantage of the state sales tax exemption available to the
Corporation during construction in order to assist the Project (FWHFC-2022-05);
WHEREAS, after execution of FWHFC-2022-05, it was determined that due to federal
regulations, a joint -venture structure was required and Palladium requested that the FWHFC act
as a member of the joint venture instead of as a general contractor;
WHEREAS, the Board approved an Amendment to FWHFC-2022-05 on October 25,
2022, to authorize the Corporation to serve a joint venture instead of as a general contractor
(FWHFC-2022-13);
WHEREAS, after execution of FWHFC-2022-13, it was determined that the Project
could no longer use the federal financing that was anticipated and a new funding source was
identified;
WHEREAS, the new funding does not have the same requirements and restrictions as
the previous financing, and Palladium has asked that the Project revert back to having a general
contractor instead of using a joint venture;
WHEREAS, staff recommends that the Board approve this amendment to allow the
Corporation to serve as a member in the joint venture or as the general contractor that will be
responsible for the construction and development of the Project, subject to all previous
conditions contained in FWHFC-2022-05 and FWHFC-2022-13, as applicable.
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE FORT WORTH HOUSING FINANCE CORPORATION:
1. THAT the Board authorizes the Corporation to act as a member in the joint venture or a
general contractor created for the construction and development of the Project and
authorizes the execution and delivery of all necessary agreements and other documents
necessary to carry out such authorization.
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 all necessary documents for and on behalf of the
Corporation, and each is authorized to extend, modify and amend the documents,
provided any such extensions, modifications and amendments are within the scope of the
Project, and in conformance with the goals and purposes of the Corporation, as amended
from time to time.
3. THAT this Resolution takes effect from the date of its adoption.
RESOLUTION NO. FWHFC-2022-15
PAGE 3
AND IT IS SO RESOLVED.
Adopted November 29, 2022
FORT WORTH HOUSING FINANCE CORPORATION
BY:
Carlos Flores
President
Attest:
Jannette S. Goodall
Corporate Secretary