HomeMy WebLinkAboutResolution Fort Worth Housing Finance Corporation (FWHFC) FWHFC-2019-06RESOLUTION NO. FWHFC-2019-06
FORT WORTH HOUSING FINANCE CORPORATION
A RESOLUTION APPROVING CONSTRUCTION/PERMANENT LOANS AND
DEVELOPMENT FUNDING FOR PERMANENT SUPPORTIVE HOUSING IN
SUPPORT OF THE APPLICATION BY FORT WORTH HOUSING SOLUTIONS
AND THE CITY OF FORT WORTH FOR A CHOICE NEIGHBORHOODS
IMPLEMENTATION GRANT FOR THE A CAVILE PLACE/HISTORIC STOP
SIX NEIGHBORHOOD
WHEREAS, the City Council of the City of Fort Worth ("City") has adopted
development and revitalization of the City's 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 established the Fort Worth Housing Finance
Corporation (the "Corporation") in 1979 pursuant to Chapter 394, Texas Local
Government Code, to facilitate housing initiatives in the City, including but not limited to
issuing tax exempt bonds, developing and promoting housing, and assisting low to
moderate income City citizens in acquiring quality, accessible, affordable housing
through lending and construction activities;
WHEREAS, the Housing Authority of the City of Fort Worth, commonly known
as Fort Worth Housing Solutions ("FWHS"), owns and operates the Cavile Place
Apartments located at 1401 Etta off East Rosedale Street in East Fort Worth in the Cavile
Place neighborhood;
WHEREAS, in 2012 the Board of Directors of the Corporation (the "Board")
agreed to partner with FWHS to develop a plan for the revitalization of the Cavile Place
Apartments along with the surrounding neighborhood that would be included in FWHS's
applications for available grants for the project from various federal programs, as well as
other sources which are available to assist with the redevelopment of public housing and
surrounding neighborhoods;
WHEREAS, on May 7, 2013, the Board accepted the Cavile Place Neighborhood
Transformation Plan (the "Transformation Plan") created by Gilmore Kean, LLC along
with a broad coalition of community leaders and public officials, to support the
redevelopment of Cavile Place and an extended area including the Historic Stop Six
Neighborhood, and on July 22, 2014, the City Council adopted a Resolution approving
the Transformation Plan and incorporating it into the City's Comprehensive Plan (M&C
G-18264, Resolution No. 4333-07-2014).
WHEREAS, in 2015, FWHS began the redevelopment process for Cavile Place
by acquiring property within the transformation area to develop approximately 250 units
of affordable housing in the first phase of redevelopment;
RESOLUTION NO. FWHFC-2019-06
PAGE 2
WHEREAS, the Fort Worth Transportation Authority, now known as Trinity
Metro, committed to assess and enhance public transit access in the area;
WHEREAS, the Fort Worth Independent School District has created the Historic
Stop Six Initiative to develop a stronger educational foundation for children, build
stronger families, and revitalize the community by empowering citizens;
WHEREAS, on June 28, 2016, the Board approved a Memorandum of
Understanding with the City, FWHS, Trinity Metro and the Fort Worth Independent
School District to aid in the redevelopment of Cavile Place and the revitalization of the
Historic Stop Six Neighborhood;
WHEREAS, from 2016 through 2019, FWHS worked to eliminate blight in the
designated area by property acquisition, demolition and property maintenance;
WHEREAS, in 2016 the City Council supported the implementation of a
Neighborhood Improvement Strategy pilot program for Cavile Place and Stop Six and
approved the use of $2,500,000.00 in capital funds to implement strategic capital
investments aimed at increasing public safety, improving the physical characteristics of
the neighborhood, promoting economic revitalization, providing supportive services to
reduce poverty, and improving the quality of life (Resolution No. 4722-12-2016);
WHEREAS, in May 2019, FWHS initiated a neighborhood planning process to
update and revise the Transformation Plan in order to apply for the Choice
Neighborhoods Implementation ("CNI") Grant from the U.S. Department of Housing and
Urban Development ("HUD"), which is specifically aimed at the redevelopment of
public housing and surrounding neighborhoods;
WHEREAS, the CNI grant is HUD's signature place -based initiative for
comprehensively revitalizing neighborhoods;
WHEREAS, FWHS has requested the City to be Co -Applicant and the Lead
Neighborhood Implementation Entity for the CNI Grant;
WHEREAS, the Board desires to support the revised Transformation Plan by
participating in the financing of housing development; and
WHEREAS, the Board desires to support the application by Fort Worth Housing
Solutions and the City of Fort Worth for a Choice Neighborhoods Implementation Grant
by approving the use of $1,250,000.00 of the Corporation's funds for construction to
permanent loans for financing housing development, and the use of $1,250,000.00 of the
Corporation's funds specifically for the development of Permanent Supportive Housing.
RESOLUTION NO. FWHFC-2019-06
PAGE 3
NOW THEREFORE, BE RESOLVED BY THE BOARD OF DIRECTORS OF
THE FORT WORTH HOUSING FINANCE CORPORATION:
1. THAT the Board authorizes the use of $1,250,000.00 of the Corporation's funds
for construction to permanent loans for financing housing development and the
use of $1,250,000.00 of the Corporation's funds specifically for the development
of Permanent Supportive Housing, each for the purpose of supporting the grant
application of Fort Worth Housing Solutions and the City of Fort Worth for a
Choice Neighborhoods Implementation ("CNI") Grant from the U.S. Department
of Housing and Urban Development ("HUD") and the implementation of the
revised Cavile Place/Historic Stop Six Neighborhood Transformation Plan (the
"Transformation Plan").
2. THAT the Board authorizes the following terms for the housing development
loans for the Transformation Plan:
Loans to commence on construction and remain in the project for a term
coterminous with the first lien permanent loan
Below market interest rate
Evidenced by promissory notes and loan agreements, secured by mortgage
liens
Subject to acceptable underwriting criteria including project operations,
sources and uses, ownership structure, developer financial strength
Subject to Board approval
3. THAT the Board authorizes the following terms' for the development of
Permanent Supportive Housing ("PSH") loans for the Transformation Plan:
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 secured loans
20-year performance period as PSH project
Developers to furnish equity
Project must be financially viable for entire 20-year performance period
Evidenced by promissory notes and loan agreements, secured by mortgage
liens
Subject to acceptable underwriting criteria including project operations,
sources and uses, ownership structure, developer financial strength
Subject to Board approval
4. THAT Fernando Costa, General Manager of the Corporation, or Sonia Singleton,
Assistant General Manager of the Corporation, or their duly appointed successors,
are each authorized to execute and deliver loan commitments or similar
documents for loans to fund housing development or the development of PSH
RESOLUTION NO. FWHFC-2019-06
PAGE 4
projects prior to Board approval on the terms and conditions set forth in items 1
and 2 above, and are each authorized to extend, modify and amend any such loan
commitment or similar document, provided that any such extensions,
modifications and amendments are within HUD requirements, the scope of the
Transformation Plan, the scope of the proposed project, and in conformance with
the goals and purposes of the Corporation, as may be amended from time to time.
5. THAT this Resolution takes effect on the date of its adoption.
AND IT IS SO RESOLVED.
Adopted October 22, 2019.
FORT WORTH HOUSING FINANCE CORPORATION
, President