HomeMy WebLinkAboutResolution Fort Worth Housing Finance Corporation (FWHFC) FWHFC-2016-12RESOLUTION NO. FWHFC-2016-12
FORT WORTH HOUSING FINANCE CORPORATION
A RESOLUTION
AMENDING THE TERMS OF THE SUBORDINATE LOAN TO COLUMBIA
RENAISSANCE SQUARE I, L.P. FOR THE DEVELOPMENT OF THE COLUMBIA AT
RENAISSANCE SQUARE APARTMENTS LOCATED AT 3801 W.G. DANIELS DRIVE
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, on February 18, 2014, the City Council approved Resolution No. 4298-02-
2014 supporting the application_ of Columbia Renaissance Square I, L.P. ("Columbia LP") to the
Texas Department of Housing and Community Affairs ("TDHCA") for 2014 Competitive 9%
Housing Tax Credits for the development of the Columbia at Renaissance Square, a new 140-
unit mixed income multifamily complex (the "project") located at 3801 W.G. Daniels Drive in
the Berry Hill -Mason Heights Neighborhood Empowerment Zone;
WHEREAS, the City Council at the same time also approved $1,200,000.00 of
development funding for the project from City HOME Investment Partnerships Program grant
funds (M&C C-26671). Columbia LP submitted its application to TDHCA for competitive
housing tax credits (Application No. 14198) on February 28, 2014;
WHEREAS, on March 25, 2014, the City Council approved Resolution No. 4307-03-
2014 determining that the Columbia at Renaissance Square is the development in the 2014
competitive tax credit application round that contributes most significantly to the City's
concerted revitalization efforts, specifically the City's revitalization efforts in the Berry Hill -
Mason Heights Neighborhood Empowerment Zone (M&C C-26725);
RESOLUTION NO. FWHFC-2016-12
PAGE 2
WHEREAS, Columbia LP applied to the Corporation for a loan of $1,300,000.00 for the
project, subordinate only to the proj ect's construction and permanent financing and contingent
upon the award of housing tax credits from the TDHCA or other acceptable financing;
WHEREAS, on April 1, 2014, the Board of the Corporation (the "Board") approved and
accepted a contract with Columbia LP for a subordinate loan of $1,300,000.00, subject to
availability of funds, to develop the project;
WHEREAS, the project did not score high enough in the 2014 round to be awarded tax
credits by the TDHCA, but Columbia LP re -applied for 2015 Competitive 9% Housing Tax
Credits from TDHCA (Application No. 15135);
WHEREAS, on February 17, 2015, the City Council approved Resolution No. 4413-02-
2015 supporting the application of Columbia LP to the TDHCA for 2015 Competitive 9%
Housing Tax Credits for the project and confirmed its prior approval of $1,200,000.00 of HOME
funds in local development funding for the project (M&C C-27195). The City Council also
approved Resolution 4418-02-2015 determining that the project qualifies as the development
contributing most significantly to the City's concerted revitalization efforts in the Berry Hill -
Mason Heights Neighborhood Empowerment Zone (M&C C-27196);
WHEREAS, on July 30, 2015, the project received an award of 2015 Competitive 9%
Housing Tax Credits from TDHCA. Under the 2015 award there is more favorable pricing for
the project, but BBVA Compass Bank, the construction/permanent lender, has requested that the
terms of the subordinate loans end no sooner than the term of its 15 year permanent loan to the
project; and
WHEREAS, the Board desires to amend the terms of the subordinate loan from the
Corporation to Columbia Renaissance Square I, L.P. to provide for a loan amount of
$700,000.00 at 1% interest and a term to run concurrently with the term of the project's first lien
15 year permanent loan from BBVA Compass.
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 I, L. P.
for a subordinate loan in the amount of $700,000.00, subject to availability of funds, at
1% interest, to construct the Columbia at Renaissance Square, a new 140-unit affordable
mixed income multifamily rental property (the "project") located at 3801 W.G. Daniels
Drive, Fort Worth TX 76105 (the "Loan"). The term of the Loan will begin on the date
of the Loan documents and terminate no sooner than the term of the BBVA Compass 15
year permanent loan for the project.
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
RESOLUTION NO. FWHFC-2016-12
PAGE 3
Corporation along with any related documents necessary to implement the Loan
Agreement or the Loan, and each is authorized to extend, modify and amend the Loan
Agreement or the terms of the Loan, 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 amended from time to time.
3. THAT this Resolution takes effect from the date of its adoption.
AND IT IS SO RESOLVED.
Adopted April 5, 2016.
ORTIH HOUWNG FINANCE CORPORATION
B i . /' -/ C q-o--
Kelly Alled Gray, ice President