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HomeMy WebLinkAboutResolution Fort Worth Housing Finance Corporation (FWHFC) FWHFC-2017-04RESOLUTION NO. FWHFC-2017-04 FORT WORTH HOUSING FINANCE CORPORATION A RESOLUTION RATIFYING THE PURCHASE OF 406 W. CENTRAL AVENUE FOR THE LEE AVENUE SINGLE FAMILY INFILL DEVELOPMENT IN THE NORTHSIDE 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, 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 Council approved a contract with the Corporation for $1,000,000.00 of HOME Investment Partnerships Program ("HOME") funds to construct up to 7 townhouses in the Northside neighborhood and authorized the sale of certain tax foreclosed properties on Lee Avenue and Central Avenue to the Corporation for the project (M&C C-24975; M&C L-15202); WHEREAS, the Board of Directors of the Corporation (the "Board") approved a contract with the City for the HOME funds and approved the purchase of 1402, 1404 and 1419 Lee Avenue and 406 W. Central Avenue for the Lee Avenue Townhomes (the "project") (Resolution No. FWHFC-2011-13); WHEREAS, the use of the HOME funds required a Section 106 review by the Texas Historic Commission which determined that the construction of townhouses would create an adverse impact to historic resources of the existing neighborhood which is eligible for listing in the National Register of Historic Places; WHEREAS, since mitigating the adverse impact in order to use HOME funds for the town house project would be financially infeasible, the Board approved a revised project for development of single family houses and the use of $600,000.00 of the Corporation's funds for property acquisition, asbestos abatement and demolition of the existing single family structures, and the construction of 4 single family houses on the Lee Avenue lots (Resolution No. FWHFC-2014-04); WHEREAS, the revised project also included requesting Community Development Block Grant ("CDBG") funds from the City for the acquisition and demolition of the dilapidated Hoover Furniture building located at 406 W. Central Avenue, and amending the HOME contract to use the previously approved HOME funds to construct 2 single family houses on this tract; RESOLUTION NO. FWHFC-2017-04 PAGE 2 WHEREAS, it was necessary to purchase the Lee Avenue lots in 2015 due to serious neighborhood safety concerns with the unoccupied structures prior to completing the HUD -required environmental review so CDBG and HOME funds could not be used for the portion of the revised project involving 406 W. Central Avenue due to federal regulatory requirements regarding choice limiting actions; WHEREAS, prior to the Corporation purchasing the Central Avenue tract, the Hoover Furniture building burned and was demolished by the City and the appraised value of the tract was lowered by the Tarrant Appraisal District ("TAD") so the City Council re -approved the sale of the tract to the Corporation for 20% of the appraised TAD value for the development of affordable housing (M&C L-15862); WHEREAS, the property was purchased for $9.640.40 plus payment of all closing costs and post judgment taxes for a total of purchase price of $21,380.55 using a portion of the $600,000.00 of the Corporation's funds previously approved by the Board for the revised project since federal funds could not be used; WHEREAS, the Board desires to ratify the use of $21,390.55 of the Corporation's funds to purchase 406 W. Central Avenue from the City 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 ratifies the expenditure of $21,390.55 of the Corporation's fiends for the purchase of 406 W. Central Avenue, Fort Worth TX 76164 for the Lee Avenue Single Family Infrll Development. 2. THAT all actions taken to purchase 406 W. Central Avenue, Fort Worth TX 76164 by the General Manager or the Assistant General Manager or any other agent of the Corporation acting on behalf of the Corporation, are in each and every respect authorized, adopted, ratified, and confirmed as the valid actions of the Corporation, effective as of the date such actions were taken AND IT IS SO RESOLVED. Adopted June 20, 2017. HOUSING FINANCE FORT WORTH HBO CORPORATION By Ronald P. Gonzales, A.sAstant Secretary