HomeMy WebLinkAboutResolution Fort Worth Housing Finance Corporation (FWHFC) FWHFC-2020-01RESOLUTION NO. FWHFC-2020-01
FORT WORTH HOUSING FINANCE CORPORATION
A RESOLUTION
APPROVING A FORGIVABLE LOAN TO NEW LEAF COMMUNITY SERVICES OR
AN AFFILIATE FOR THE DEVELOPMENT OF THE QUAIL TRAIL APARTMENTS
LOCATED AT 4444 QUAIL TRAIL FOR PERMANENT SUPPORTIVE HOUSING
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 citizens and the City Council have determined that quality accessible affordable housing is
needed for moderate, low and very low-income City citizens;
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 citizens in
acquiring quality, accessible, affordable housing through lending and construction activities;
WHEREAS, in 2008 the City Council adopted Directions Home: Making Homelessness
Rare, Short -Term, and Nonrecurring in Fort Worth, Texas within Ten Years as the City's
official homelessness plan ("Directions Home'. The City's homelessness plan, implemented by
the Directions Home unit of the City Manager's Office, demonstrates the City Council's
commitment to ending chronic homelessness in Fort Worth;
WHEREAS, the City Council in 2014 appointed a Task Force on Permanent Supportive
Housing, and adopted Permanent Supportive Housing Guidelines and Recommendations in 2015
which included support for scattered site, single site and integrated models located near public
transportation (City Council Resolutions No 4349-08-2014 and 4459-06-2015);
WHEREAS, the Board of Directors of the Corporation (the "Board") and the City Council
both adopted Resolutions supporting the Fort Worth Affordable Housing Strategic Plan
(Resolution No. FWHFC-2018-07 and Resolution No. 5026-2018);
WHEREAS, the affordable housing strategy, now known as the Fort Worth Housing
Strategic Framework Plan (the "Strategic Framework Plan"), includes a special focus on the
creation of Permanent Supportive Housing for chronically homeless individuals and families as a
priority and identifies the Corporation and the City as funders and development partners for the
creation of Permanent Supportive Housing units, and recommends guidelines for developers to
qualify for City or Corporation funds for Permanent Supportive Housing projects;
RESOLUTION NO. FWHFC-2020-01
PAGE 2
WHEREAS, Permanent Supportive Housing ("PSH") involves long term rental assistance
and case management for individuals and families who have been homeless for over a year and
are _disabled, and Tarrant County needs 1,450 new units of PSH by 2026 to end chronic
homelessness;
WHEREAS, the Corporation has $5,000,000.00 in a restricted account which began as a
result of a refund from certain single family bonds issued by the Corporation in the 1980s and
1990s;
WHEREAS, on October 22, 2019, the Corporation approved setting aside the $5,000,000
for forgivable, no interest loans for the development of PSH projects that meet the following
criteria:
At least 20 PSH units per project
No more than $25,000.00 of Corporation funds per PSH unit
Foundations/grants to match Corporation funds dollar for dollar
Forgivable, no interest loans evidenced by promissory notes and loan agreements, secured
by mortgage liens
20-year Performance Period as PSH project
Developers to furnish equity
Project must be financially viable for entire 20 year Performance Period
Project must meet acceptable underwriting criteria including project operations, sources
and uses, ownership structure, developer financial strength
All loans subject to Board approval;
WHEREAS, New Leaf Community Services ("New Leaf') proposes to construct the
Quail Trail Apartments, a new PSH development to be located at 4444, Quail Trail on the City's
North Side;
WHEREAS, the Quail Trail Apartments consist of 48 one -bedroom one -bath units in 12
single story quadraplexes and include a community room, laundry room, and case management
offices. The project will provide on -site case management, close proximity to affordable
healthcare, shopping, and employment opportunities, and close access to public transit;
WHEREAS, the total development cost is $4,744,281, and New Leaf has obtained
commitments for $2,790,833.00 of grant funds from First Presbyterian Church, Paulos Foundation,
Ryan Foundation, Sid Richardson Foundation, Morris Foundation, Amon Carter Foundation, and
North Texas Communities Foundation;
WHEREAS, New Leaf has requested a $1,200,000 forgivable, no interest loan from the
Corporation for the development;
RESOLUTION NO. FWHFC-2020-01
PAGE 3
WHEREAS, City staff has recommended that the City Council approve an award of
$500,000 of the City's HOME grant funds from the U.S. Department of Housing and Urban
Development ("HUD") in the form of a subordinate forgivable loan for the project;
WHEREAS, the Board desires to approve and accept a loan agreement with New Leaf
Conuiiunity Services, or an affiliate, for a forgivable loan of $1,200,000, subject to availability of
funds, to develop the Quail Trail Apartments, a new permanent supportive housing development;
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE FORT WORTH HOUSING FINANCE CORPORATION:
1. THAT the Board authorizes the execution and delivery of a loan agreement (the "Loan
Agreement") by and between the Corporation and New Leaf Community Services, or an
affiliate, for a forgivable loan in the amount of $1,200,000.00, subject to availability of
funds (the "Loan"), to construct the Quail Trail Apartments, a new 48-unit permanent
supportive housing development located at 4444 Quail Trail, Fort Worth TX 76114 on the
terms set forth on Attachment I.
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 the Loan Agreement for and on behalf of the Corporation
along with any related documents or agreements necessary to implement the Loan
Agreement or the Loan, and each is authorized to extend, modify and amend the Loan
Agreement, the terms of the Loan or the terms of any related documents or agreements,
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 may be
amended from time to time.
THAT this Resolution takes effect from the date of its adoption.
AND IT IS SO RESOLVED.
Adopted February 4, 2020.
FORT WORM HOUSING FINANCE CORPORATION
Allen
RESOLUTION NO. FWHFC-2020-01
PAGE 4 ATTACHMENT 1
ATTACHMENT
Loan Terms
Lender: Fort Worth Housing Finance Corporation
Borrower: New Leaf Community Services or an affiliate
Project: Quail Trail Apartments
Location: 4444 Quail Trail, Fort Worth, TX 76114
Loan Amount: $1,200,000
Origination Fee: None
Interest Rate: 0%; default interest rate 6%
Amortization: Loan to be forgiven at end of 20 year Performance Period provided
Borrower has complied with all Loan terms
Loan Term: Begins on date loan documents are executed. Loan matures at end of
Performance Period. (Estimated 12 months for construction)
Performance Project must be operated as a PSH project for 20 years. Commences
Period: on date project is leased up (90% of units for 90 days or other similar
measure approved by Lender)
Lien Priority: First lien, superior to the City HOME loan
Payments: None as long as no default in Loan terms
Loan Documents: Loan Agreement, Promissory Note, Deed of Trust, and Guaranty if
applicable
General Contractor: Acceptable to FWHFC
Guarantees: Payment and completion guarantees in form and substance acceptable to
FWHFC required from GC during construction period. If personal
guarantees are required by FWHFC, must be acceptable to FWHFC in
amount, duration, form, and substance
Recourse: Non -recourse as to Borrower
Grant Match: Grant funds must match FWHFC funds dollar for dollar
RESOLUTION NO. FWHFC-2020-01
PAGE 4 ATTACHMENT 1 PAGE 2
Financing: Grants/Fundraising
FWHFC Loan $1,200,000
City HOME Loan $500,000
Underwriting: Must establish that project will be financially viable for entire
Performance Period. Will include evaluation of ownership structure,
project operations, sources and uses of funds including cash flow analysis,
developer/project owner's most recent financial statements, and if
applicable, financial statements from team members and guarantors
Other Conditions: Pay all costs of Loan closing including Lender attorney fees
Provide lender's title policy
Development must receive/pass Environmental Review
Acceptable environmental remediation, if required
All financing acceptable to Lender
Lien priority acceptable to Lender
Approval of final construction plans for project
Survey acceptable to Lender
Appraisal acceptable to Lender
P & P bond or LOC or satisfactory equivalent from General Contractor
Receipt of all required governmental approvals
Approval of current financial statements from Guarantor
Approval of final project budget
Borrower counsel opinion in form and content satisfactory to Lender
Borrower to furnish acceptable equity
Monitoring: Project to' be monitored at least annually for acceptable compliance with
appropriate management and operation of a PSH project,
Tenants: Tenants occupying the PSH units funded by Lender must be chronically
homeless individuals referred through the Tarrant County Continuum of
Care Coordinated Entry
Reports: Annual audit, copies of all reports to local, state or federal agencies,
voucher providers. Any additional reports identified by Lender