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HomeMy WebLinkAboutResolution Fort Worth Housing Finance Corporation (FWHFC) FWHFC-2017-02RESOLUTION NO. FWHFC-2017-02 FORT WORTH HOUSING FINANCE CORPORATION A RESOLUTION TO APPROVE $570,000 FOR THE TERRELL HEIGHTS SINGLE FAMILY INFILL DEVELOPMENT IN THE HISTORIC SOUTHSIDE NEIGHBORHOOD AND APPROVE ALL RELATED ACTIONS REQUIRED FOR HOUSING DEVELOPMENT 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, 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 City receives grant funds from the United States Department of Housing and Urban Development ("HUD") through the HOME Investment Partnerships Program ("HOME") with which the City promotes activities that expand the supply of affordable housing to benefit low and very low income City citizens by providing them with affordable housing; WHEREAS, the City Council approved a contract with the Corporation for total of $988,870.00 of HOME funds in the form of a deferred forgivable loan for the construction of single family infill houses in Terrell Heights in the Historic Southside neighborhood (M&C C-23887 and M&C C-24444); WHEREAS, the Board of Directors of the Corporation ("Board") approved and accepted a contract with the City for the HOME funds for the Terrell Heights Single Family Infill Development (Resolution No. FWHFC-2009-12 and Resolution No. FWHFC-2010-09). The HOME contract provides that the loan will be forgiven so long as the houses are sold to HOME -eligible buyers and the net sales proceeds are returned to the City (City Secretary Contract No. 45042); WHEREAS, the City Council also authorized the use of Community Development Block Grant funds for the Terrell Heights Street Light Replacement Project in order replace or add street lights that are missing, out of service or architecturally inconsistent with the period style of the houses in the Terrell Heights neighborhood, in order to promote a safer community and encourage additional development (M&C C- 25577); RESOLUTION NO. FWHFC-2017-02 PAGE WHEREAS, HUD allowed the City to fund the total construction costs of the first 4 houses in the project with HOME funds but HUD subsequently issued new underwriting guidance and HOME funds can now only be used to fund the financing gap in projects; WHEREAS, due to the change in HOME project underwriting requirements, additional construction funding must be obtained in order to complete the remaining 4 houses in the project and fulfill the Corporation's obligations under the HOME contract; WHEREAS, the Board desires to approve the use of $570,000.00 for a portion of the construction costs of the remaining 4 houses in order to complete the Terrell Heights Single Family Infill Development and fulfill the terms of the HOME contract, subject to the availability of funds„ and desires to approve all actions necessary for single family housing development for the project. NOW THEREFORE, LET IT BE RESOLVED BY THE BOARD OF DIRECTORS OF THE FORT WORTH HOUSING FINANCE CORPORATION: 1. THAT the Board authorizes the expenditure of $570,000.00 of the Corporation's funds to complete the Terrell Heights Single Family Infill Development (the "project") and to undertake all activities necessary to fulfill the requirements of the HOME regulations for affordable housing development as described in City Secretary Contract No. 45042 (the "HOME Contract"), subject to the availability of funds. 2. THAT the Board approves the execution and delivery of any contracts and other documents necessary to develop single family housing, complete the project, and fulfill the Corporation's obligations under the HOME Contract. 3. THAT the Board approves all related actions necessary to develop the single family housing for the completion of the project. 4. 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 any contracts and other documents necessary for single family housing development for the project for and on behalf of the Corporation, and each may extend, modify and amend the HOME contract and any other contracts or documents for the project, provided any such extensions, modifications and amendments are within the scope of the project and in compliance with City Ordinances, and the goals and purposes of the Corporation as amended from time to time. RESOLUTION NO. FWHFC-2017-02 PAGE 3 5. THAT to the extent any of the actions authorized by this Resolution have already been taken by the Corporation, Fernando Costa as General Manager, or Aubrey Thagard as Assistant General Manager, or any other agent of the Corporation, such actions are hereby ratified and confirmed as the valid actions of the Corporation, effective as of the date such actions were taken. 6. THAT this Resolution takes effect from the date of its adoption. AND IT IS SO RESOLVED. Adopted June 20, 2017. FORT WORTH HOUSING FINANCE CORPORATION y Ronald P. Gonzales, Assistant Secretary