HomeMy WebLinkAboutResolution Fort Worth Housing Finance Corporation (FWHFC) FWHFC-2019-01RESOLUTION NO. FWHFC-2019-01
FORT WORTH HOUSING FINANCE CORPORATION
A RESOLUTION
APPROVING A SUBORDINATE LOAN TO COLUMBIA RENAISSANCE SQUARE II,
L.P. FOR THE DEVELOPMENT OF THE COLUMBIA RENAISSANCE SQUARE II
SENIOR APARTMENTS LOCATED AT 2801 MORESBY STREET
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, the Corporation seeks to promote neighborhood revitalization and
homeownership and foster the development of reasonably priced 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, the City receives a grant of HOME Investment Partnerships Program
("HOME") grant funds from the United States Department of Housing and Urban Development
("HUD") with which it funds eligible affordable housing activities (the "HOME Program"),
and HUD requires the City to match 25% of the HOME funds it receives each program year
from non-federal sources used for qualified housing projects ("HOME Match");
WHEREAS, on February 17, 2015, the City Council approved Resolution No. 4413-02-
2015 supporting the application of Columbia Renaissance Square I, L.P. ("Columbia I LP") to
the Texas Department of Housing and Community Affairs ("TDHCA") for 2015 Competitive
(9%) Housing Tax Credits for the development of the Columbia at Renaissance Square, a new
140-unit mixed income multifamily complex (the "multifamily project") located at 3801 W.G.
Daniels Drive in the Berry Hill -Mason Heights Neighborhood Empowerment Zone and
confirmed its prior approval of $1,200,000.00 of HOME funds in local development funding for
the multifamily project (M&C C-27195);
WHEREAS, on July 30, 2015, the multifamily project received an award of 2015
Competitive (9%) Housing Tax Credits from TDHCA; and
RESOLUTION NO. FWHFC-2019-01
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WHEREAS, on April 5, 2016, the Board of the Corporation (the "Board"). approved and
accepted a loan agreement with Columbia I LP for a subordinate loan of $700,000.00 for the
multifamily project;
WHEREAS, on August 1, 2017, the City Council approved a commitment of
$835,720.00 of HOME funds for gap financing for the next phase of the development, a senior
affordable project (M&C G-19056);
WHEREAS, on February 13, 2018, the City Council approved Resolution No. 4906-02-
2018 supporting the application of Columbia Renaissance Square II, L.P. ("Columbia II LP") to
TDHCA for 2018 Competitive (9%) Housing Tax Credits for the development of the Columbia
Renaissance Square II Senior apartments, a new 120-unit mixed income senior multifamily
complex (the "senior project") located at 2801 Moresby (M&C G-19229);
WHEREAS, in July 2018, the senior project received an award of 2018 Competitive
(9%) Housing Tax Credits from TDHCA;
WHEREAS, Columbia II LP has applied to the Corporation for a subordinate loan of
$700,000.00 for gap financing for the senior project;
WHEREAS, City staff will recommend that the City Council increase the commitment of
HOME funds to $1,800,000.00 for gap financing for the senior project; and
WHEREAS, the Board desires to approve and accept a loan agreement with Columbia
Renaissance Square II, L.P. for a subordinate loan of $700,000.00, subject to availability of
funds, to develop the Columbia Renaissance Square Senior, a new affordable senior multifamily
rental housing development, and also desires to approve the use of the Corporation's loan by the
City as HOME Match.
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 Columbia Renaissance Square II, L.
P. for a subordinate loan in the amount of $700,000.00, subject to availability of funds, to
construct the Columbia Renaissance Square II Senior apartments, a new 120-unit
affordable mixed income senior multifamily rental property located at 2801Moresby
Street, Fort Worth TX 76105 (the "Loan") on the terms set forth on Attachment I.
2. THAT Fernando Costa, General Manager of the Corporation, or Aubrey Thagard,
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
RESOLUTION NO. FWHFC-2019-01
PAGE 3
scope of the project, and in conformance with the goals and purposes of the Corporation,
as may be amended from time to time.
3. THAT the Board authorizes the City to use the Loan as HOME Match in accordance with
the HOME regulations.
4. THAT this Resolution takes effect from the date of its adoption.
AND IT IS SO RESOLVED.
Adopted April 2, 2019.
FORT WORWHOUSING FINANCE CORPORATION
Allen
RESOLUTION NO. FWHFC-2019-01
PAGE 4
ATTACHMENT I
Loan Terms
Lender: Fort Worth Housing Finance Corporation
Borrower: Columbia Renaissance Square II, L.P.
Project: Columbia Renaissance Square II Senior Apartments
Location: 2801 Moresby Street, Fort Worth TX 76105
Loan Amount: $700,000.00
Origination Fee: 1% payable at closing
Interest Rate: Equivalent to 1" lien construction loan interest rate during construction
period. 2% after stabilization/conversion
Amortization:
35 years
Loan Term:
Begins on date loan documents are executed (estimated 24-30 months for
construction). Matures 15 years from stabilization/conversion but no later
than 60 days after maturity date of first lien permanent loan
Lien Priority:
Subordinate only to first lien construction/permanent loan or other
commercial or government construction/permanent loans, or otherwise as
acceptable to FWHFC subject to underwriting and cash flow analysis
Payments:
Interest only payments made quarterly during construction period.
Equal annual payments of P & I after stabilization /conversion out of net
cash flow
Loan Documents:
Loan Agreement, Promissory Note, Deed of Trust, and Guaranty (if
applicable)
General Contractor: TBD; acceptable to first lien construction lender and FWHFC
Guarantor:
TBD, acceptable to FWHFC. Payment and completion guarantees in form
and substance acceptable to FWHFC during construction period
Recourse:
Non -recourse as to Borrower
Financing:
First lien construction loan $15,866,149 (estimated)
First lien permanent loan $5,425,000 (estimated)
Award of 9% tax credits from TDHCA $14,098,590 (estimated)
HOME Loan $1,800,000.00
FWHFC Loan $700,000.00
Other Conditions: Pay all costs of Loan closing including Lender attorney fees
Provide lender's title policy
Acceptable environmental remediation, if required
All financing acceptable to Lender
Lien priority acceptable to Lender
Approval of final construction plans for project
RESOLUTION NO. FWHFC-2019-01
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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