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Home My WebLink AboutIR 0640INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 23-0640 To the Mayor and Members of the City Council April 4, 2023 Page 1 of 1 SUBJECT: PROPOSED CONTRACT AMENDMENT WITH CDFI FRIENDLY AMERICA, LLC The purpose of this Informal Report is to update City Council regarding the need to amend the agreement that previously authorized funds for CDFI Friendly America, LLC (CDFI America). In March 2021, the President signed the American Rescue Plan Act (ARPA), providing aid and relief to various sectors of the United States economy. The City of Fort Worth's allocation from these funds was a total of $173,745,090.00 of which a first tranche (50%) in the amount of $86,872,545.00 was received on May 19, 2021. Subsequently, the City entered into an agreement with CDFI America (pursuant to Mayor and Council Communication (M&C) 21-0445; June 22, 2021) (CSC 56783), committing up to $3,000,000.00 as follows: • $1,500,000 for CDFI America to assess the potential roles of community development financial institutions ("CDFI") in the City, organizing strategies, developing a CDFI-friendly business plan, providing consultative capacity -building support, and establishing a framework for the use of ARPA funding to include funding to bring financing from one or more community development financial institutions ("CDFIs") to the City. • $500,000.00 for a pool of grant funding that CDFI America will use to incentivize CDFI engagement in Fort Worth. • $1,000,000 to seed capitalize a CDFI Friendly Fort Worth Enhancement Fund ("Enhancement Fund"). The City and CDFI America agreed that they would enter into a separate agreement for the Enhancement Fund. From January 26, 2022 to December 31, 2022, CDFI Friendly America has assisted with a total of 149 loans for a total of $10,322,238 in Fort Worth (report included). Pursuant to the Agreement, CDFI America created a local nonprofit entity called CDFI Friendly Fort Worth, LLC to match CDFIs to financing needs in Fort Worth. CDFI Fort Worth is currently ramping up its operations and requires seed money as leverage to gain more access to capital. This requires an amendment to the current Agreement to serve out the terms and conditions with CDFI Fort Worth to govern the use of the money in the Grant Fund and the Enhancement Fund. For further questions, please contact Robert Sturns, Director of Economic Development Department, at 817-392-2663 or Christina Brooks, Chief Equity Officer/Director of Diversity and Inclusion, at 917-392-8988. David Cooke City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS Mkm= AA. merica Summary of CDFI Loans Closed in Fort Worth from 1/26/2022-12/31/2022 Table 1: CDFI Lending by Loan Purpose Sorted in descending order by Total Loaned Loan Purpose Total Loaned Loan Count Average Loan Minimum Maximum $ ' of # Size Loan Size Loan Size ii To Buy a Home $8,475,546 43 $197,106 $120,000 $504,000 82% 29% Small Business $1,643,723 55 $29,886 $210 $200,000 16% 37% To Buy a Car $166,878 8 $20,860 $12,011 $32,125 2% 5% For Personal Use $36,091 43 $839 $60 $1,500 0% 29% All Purposes $10,322,2381 149 $69,277 $60 $504,000 100% 100% Table 2: CDFI Lending in Revitalization Target Areas (RTA) Note: These figures represent CDFI lending activity within RTAs and does not include activity outside of RTAs and within the surrounding areas of influence. Table 3 (below) shows lending activity by surrounding area of influence (i.e., Neighborhood), regardless of whether a loan is actually located within a designated RTA. Sorted in descending order by Total Loaned Revitalization Target Area Non-RTA Como Total Loaned $10,122,328 $154,700 Loan Count 146 1 Average Loan ' Minimum Size Loan Size $69,331 $60 $154,700 $154,700 Maximum Loan Size $504,0)00 $154,700 °° of $ 985 1.5% °° o # 98% 0.7% Riverside East $45,000 1 $45,000 $45,000 $45,000 0.4% 0.7% Altamesa and McCart $210 1 $210 $210 $210 0.0% 0.7% Fort Worth Total $10,322,238 149 $69,277 $60 $504,000 100% 100% All RTA Activity $199,910 3 $66,637 $210 $154,700 in RTA 1.9% 2.0% CDFI Friendly Summary of CDFI Loans Closed in Fort Worth from 1/26/2022-12/31/2022 Table 3: CDFI Lending in Surrounding Areas of Influence (SAI) Note: These figures represent CDFI lending activity in surrounding areas of influence, some of which includes RTAs, but non-RTA activity is also included. Table 2 (above) shows lending activity located within RTAs. Sorted in descending order by Total Loaned Surrounding Area of Total Loaned Loan Count Influence Non-RTA Neighborhood $5,988,348 99 Polytechnic $1,267,555 9 Stop Six $1,027,370 7 East Berry $816,750 6 Altamesa and McCart $363,929 16 West Camp Bowie $196,065 4 Historic Handley $185,900 1 Near Northside $179,700 2 Como $154,700 1 Historic Southside $96,921 3 Riverside East $45,000 1 Font Worth Total $10,322,238 149 All SAI Activity $4,333,890 50 % in SAI 42.0% 33.6% 4ge Loan Minimum Maximum 'of# Size Loan Size Loan Size $60,488 $60 $504,000 58% 66% $140,839 $525 $200,000 12.3% 6.0% $146,767 $210 $182,100 10.0% 4.7% $136,125 $10,800 $188,800 7.9% 4.0% $22,746 $60 $245,471 3.5% 10.7% $49,016 $210 $176,600 1.9% 2.7% $185,900 $185,900 $185,900 1.8% 0.7% $89,850 $1,500 $178,200 1.7% 1.3% $154,700 $154,700 $154,700 1.5% 0.7% $32,307 $421 $95,000 0.9% 2.0% $45,000 $45,000 $45,000 0.4% 0.7% $69,277 $60 $504,000 100% 100% $86,678 $60 $245,471 CDFI Friendly • Summary of CDFI Loans Closed in Fort Worth from 1/26/2022-12/31/2022 Table 4: CDFI Lending by Loan Purpose and City Council District 2 -Carlos 3 - Michael D 4 - Alan 5 - Gyna 6 - Jared Flores Crain Blaylock Bivens Williams 1 7 - Leonard 8 - Chris 9 - Elizabeth Firestone Nettles M Beck For Personal Use $3,000 $3,500E$464,551 $4,310 $9,850 $11,681 $0 $36,091 Small Business $84,013 $219,560$114,870 $237,915 $211,077 $249,708 $1,643,723 To Buy a Car $0 $0 a$19,030 $0 $24,498 $43,367 $29,576 $166,878 To Buy a Home $484,100 $1,387,620$245,471 $459,645 $1,508,350 $1,195,700 $8,475,546 All Purposes $571,113 $1,610,6$364,6511 $731,908 $1,474,985 $10,322,238 Table 5: CDFI Lending in Revitalization Target Areas (RTA) by Loan Purpose Revitalization Target Area Neighborhood Small Business To Buy a Home Altamesa and McCart $210 $210 Como $154,700 $154,700 Riverside East $45,000 $45,000 All Purposes $45,210 $154,700 $199,910 Table 6: CDFI Lending in Revitalization Target Areas (RTA) by City Council District I Revitalization Target Area 2 - Carlos Flores 3 - Michael D Crain 4 - Alan 5 - Gyna 6 - Jared Blaylock Bivens Williams 1 7 - Leonard Firestone 1 8 - Chris Nettles 9 - Elizabeth M Beck Total Altamesa and McCart 1 $0 $0 $0 $0 $210 $0 $0 $0 $210 Como $0 $154,700 $0 $0 $0 $0 $0 $0 $154,700 Riverside East $0 $0 $0 $0 $0 $0 $0 $45,000 $45,000 All RTA Lending $0 $154,700 $0 $0 $210 $0 $0 $45,000 $199,910 America Summary of CDFI Loans Closed in Fort Worth from 1/26/2022-12/31/2022 Table 7: CDFI Lending in Surrounding Areas of Influence (SAI) by Loan Purpose Surrounding Area of Influence f Altamesa and McCart For Personal Use $5,460 Smal/ siness $90,811 To Buy a Car $22,187 To Buy a $245,471 $363,929 Como $154,700 $154,700 East Berry $10,800 $805,950L1,267,555 $816,750 Historic Handley $185,900$185,900 Historic Southside $1,921 $95,000 $96,921 Near Northside Polytechnic $1,500 $525 $19,030 $178,200$179,700 $1,248,000 Riverside East $45,000 $45,000 Stop Six $210 $1,027,160 $1,027,370 West Camp Bowie All Purposes $8,8811 $19,465 $261,8121 $41,216 $176,600 $4,021,9811 $196,065 $4,333,890 Table 8: CDFI Lending in Surrounding Areas of Influence (SAI) by City Council District urroun ing Area o 2 -Carlos 3 -Michael DVB Influence Flores Crain 5 - Gyna Bivens Altamesa and McCart $0 $0 $0 $0 Como $0 $154,700 $0 $0 East Berry $0 $0 $0 $0 Historic Handley $0 $0 $0 $185,900 Historic Southside $0 $0 $0 $0 Near Northside $179,700 $0 $0 $0 Polytechnic $0 $0 $0 $721,455 Riverside East $0 $0 $0 $0 Stop Six $0 $0 $0 $1,027,370 West Camp Bowie All Purposes $0 el70 inn $196,065 coffin - $0 - $0 6 - Jared 7 - Leonard 8 - Chris 9 - Elizabeth Williams Firestone Nettles M Beck $275,891 $0 $0 $0 $0 $0 $0 $0 sol $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $81,304 $0 $816,750 $0 $96,921 $0 $546,100 $0 $0 $0 $6,734 $o $0 $0 $0 $0 $0 $45,000 $0 50 $1,267 $1,027 Locations of Borrowers Receiving CDFI Loans from 1/26/2022 to 12/31/2022 in Relation to FWO Council Districts, RTAs, and SAIs CDFI Friendly 0 0 3. Mi D. C d70 0 -� OF 7 - Leonard Firestone 0 0 0 10 0 O O 4 ° O 0 ° CO 0 0 O Qj z r—O 2 Flores s Flores O 0� 0 O 00 ° 9� Eliizabeth M. Beck O\ V° 0 00 0 8 - Chris O Nettles Jared 0 Iliarn n 0 O CDFI Borrower Locations ® Revitalization Target Areas Surrounding Areas of Influence City Council Districts 0 2 - Carlos Flores 0 3 - Michael D Crain 0 4 - Alan Blaylock 0 5 - Gyna Bivens 0 6 - Jared Williams 0 7 - Leonard Firestone 0 8 - Chris Nettles 0 9 - Elizabeth M Beck 4 - Cary Moon X 0 0.5 1 Miles Ci of Fort Worth, Texas Parks & Wildlife, Esri, HERE, Garmin, SafeG-ra.hh, METI/ NASA, USGS, EPA, NPS, USDA, Esri, CG,USGS