HomeMy WebLinkAboutResolution Fort Worth Housing Finance Corporation (FWHFC) FWHFC-2021-15RESOLUTION NO. FWHFC-2021-15
FORT WORTH HOUSING FINANCE CORPORATION
A RESOLUTION
APPROVING A REDUCTION OF THE APPROVED INTEREST RATE FOR THE
SUBORDINATE LOAN TO OPG CLIFTON RIVERSIDE PARTNERS, LLC FOR THE
DEVELOPMENT OF THE CLIFTON RIVERSIDE APARTMENTS, AN AFFORDABLE
HOUSING DEVELOPMENT, TO BE LOCATED AT 2406 AND 2412 EAST BELKNAP
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 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, Overland Communities Group, LLC, and Across, LLC have formed OPG
CR Managers, LLC, a managing member of OPG Clifton Riverside Partners, LLC, ("Developer")
and propose to construct the Clifton Riverside Apartments, a 94-unit affordable housing project to
be located at 2406 and 2412 East Belknap within the City of Fort Worth and within NEZ Area 4
and the Six Points Urban Village ("Project");
WHEREAS, the 94 apartments will be rented to household with a mix of incomes levels
consistent with the City of Fort Worth Tax Credit Policy, including 15 market rate units;
WHEREAS, the Project will contain amenities such as structured parking, a business
center, fitness center, community room with kitchen, kids' playroom, and 3 courtyards with sitting
area;
WHEREAS, the Project was awarded 9% tax credits by the Texas Department of Housing
and Community Affairs in July 2021;
WHEREAS, the total development cost expected for this development is $21,800,000.00,
and despite the award of tax credits, there remains a financial gap of approximately $2,000,000.00;
WHEREAS, Developer requested a $1,000,000.00 subordinate loan with a twenty-year
term, 1 % interest during construction and 1 % interest after permanent financing with interest -only
payments the first five years and balloon payment after year 20 for any unpaid principal and
interest;
5ESOLUTION NO. FWHFC-2021-15
PAGE 2
WHEREAS, Developer agreed to additional loan conditions such as paying all closing
costs, provision of a lender's title policy, acceptable Phase I ESA or environmental mediation;
approval of zoning, approval of site plan, approval of final construction plans, acceptable survey,
acceptable appraisal, P&P Bond or Letter of Credit, receipt of all required governmental approvals,
approval of current financial statements, approval of final project budget, and a borrower's counsel
opinion in the form and content satisfactory to the FWHFC;
WHEREAS, Corporation staff presented the proposed loan to the Corporation on October
19, 2021, and the Corporation approved the requested loan on the terms recommended by staff
with the exception of the proposed interest rate, which was amended to require the rate to be at or
above the rate of the first lien loan (FWHFC-2021-13); and
WHEREAS, Corporation staff have reviewed the development proforma and have
conducted underwriting on the development financials using HUD underwriting criteria as a guide,
and find that the project is not feasible with an interest rate higher than 1% and recommends that
the Corporation approve an interest rate reduction to allow for a 1% interest rate during the
construction and permanent loan phases; and
WHEREAS, the Board desires to approve and authorize the reduction of the interest rate
to 1% for the life of the loan to OPG Clifton Riverside Partners, LLC for the construction of the
Clifton Riverside Apartments, a new 94-unit multifamily rental housing development located at
2406 and 2412 East Belknap, Fort Worth TX 76111.
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE FORT WORTH HOUSING FINANCE CORPORATION:
1. THAT the Board authorizes a reduction of the approved interest rate to 1% for the loan to
OPG Clifton Riverside Partners, LLC for the construction of the Clifton Riverside
Apartments, a new 94-unit multifamily rental housing development located at 2406 and
2412 East Belknap, Fort Worth TX 76111.
2. THAT all other approved loan terms listed in Attachment A of resolution FWHFC-2021-
13 remain unchanged.
2. THAT this Resolution takes effect from the date of its adoption.
AND IT IS SO RESOLVED.
Adopted November 30, 2021
FORT WORTH HOUSING FINANCE CORPORATION
.........................................................................
By: )I
Carlos Flores, President