HomeMy WebLinkAboutOrdinance 26167-05-2023ORDINANCE NO. 26167-05-2023
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE GRANTS OPERATING FEDERAL FUND, SUBJECT
TO RECEIPT OF THE GRANT, IN THE AMOUNT OF $230,158.60, FOR THE
PURPOSE OF FUNDING INTEREST EARNED IN THE RESTRICTED CASH
ACCOUNT; PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS
ORDINANCE CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL
ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE
DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,
TEXAS:
SECTION 1.
That in addition to those amounts allocated to the various City departments for Fiscal Year 2022-2023 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Grants
Operating Federal Fund, subject to the receipt of the grant, in the amount of $230,158.60, for the purpose of
funding interest earned in the restricted cash account.
SECTION 2.
That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or void
for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way impair
the remaining portions, sections, or parts of sections of this ordinance, which said remaining provisions shall
be and remain in full force and effect.
SECTION 3.
That this ordinance shall be cumulative of Ordinance 25773-09-2022 and all other ordinances and
appropriations amending the same except in those instances where the provisions of this ordinance are in
direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions of
said prior ordinances and appropriations are hereby expressly repealed.
SECTION 4.
This ordinance shall take effect upon adoption.
APPROVED AS TO FORM AND LEGALITY:
Assistant City Attorney
ADOPTED AND EFFECTIVE: May 9, 2023
CITY SECRETARY
Jannette S. Goodall
City Secretary
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INFORMAL REPORT TO CITY COUNCIL MEMBERS
To the Mayor and Members of the City Council
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Page 1 of 1
SUBJECT: PERMANENT SUPPORTIVE HOUSING PROJECT KNOWN AS CASA
DE SUENOS
In 2022, Fort Worth Housing Solutions (FWHS) and Ojala Holdings (Ojala) jointly applied to Tarrant
County's Request for Proposals (RFP) solicitation for funding to support affordable housing. The application
included numerous letters of support from the community and partners who will have an active role in
stabilizing families. Those partners include FWISD, JPS, MHMR, LVT Rise, Cook Children's, and Moritz
Kia. The proposed project will convert the Express Inn at 8401 West Freeway to 55 units of permanent
supportive housing — Casa de Suenos. Ojala will assist with the conversion as fee developer and asset
manager. The property currently has 83 units, which will be converted into 55 units to accommodate families.
This configuration would include 12 1-bedroom units, 23 2-bedroom units, and 20 3-bedroom units, ranging
from 416 square feet to 818 square feet, an average of 644 square feet per unit. The project will also include
a resident lounge, community space, business center, computer lab, and case management offices. Other
planned amenities include a dog park, playground, multi -function sport court, activated green courtyard,
resident garden, and laundry center.
FWHS and Ojala completed the purchase, renovation, lease up and has successfully operated a similar
development in Fort Worth since December 2020. That project, Casa de Esperanza, has become a national
model of collaboration between municipal entities, non -profits and private businesses to address the growing
number of persons experiencing homelessness.
This particular project is a collaborative effort between the City of Fort Worth, Tarrant County, Fort Worth
Housing Finance Corporation, Fort Worth Housing Solutions, and Ojala Holdings. The anticipated project
cost is approximately $11.9 million, including the following proposed funding from the City:
• Community Development Block Grant $1,500,000.00
• Fort Worth Housing Finance Corporation $ 500,000.00
Tarrant County has committed to fund $8 million. FWHS and Ojala have reduced fees by $258,000 as well
as made a commitment of an additional $500,000 by Ojala to the project. FWHS staff will recommend that
their board approve a guarantee of the remaining gap of $1.9 million at their next scheduled board meeting
on March 30, 2023. FWHS and Ojala intend to work with local foundations to obtain charitable donations
to fill the gap.
While the previous option contract on the property has lapsed, applicants are working with the seller to secure
a revised agreement and do not anticipate any issues. Following a 30-day Public Comment period from
March 6 — April 6, staff will submit an M&C for Council consideration on the April 25 City Council agenda.
For additional information about this topic, please contact Victor Turner, Director of the Neighborhood
Services Department at 817-392-8187.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 05/09/23 MSC FILE NUMBER: M&C 23-0383
LOG NAME: 19CASA DE SUENOS
SUBJECT
(CD 3 / Future CD 3) Authorize Forgivable Loan in the Aggregate Amount of $1,500,000.00 from Federal Sources to The Housing Authority of the
City of Fort Worth, dba Fort Worth Housing Solutions for the Conversion of the Express Inn at 8401 West Freeway to 55 Units of Deeply Affordable
Units for Homeless Families to be known as Casa de los Suenos, Authorize Execution of Related Contract and Loan Documents, Waive or Defer
Certain City Fees Related to the Development, Find a Public Purpose and Adequate Controls are in Place, and Adopt Appropriation Ordinance
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize $1,500,000.00 of Community Development Block Grant funds in the form of a forgivable loan to The Housing Authority of The City
of Fort Worth, dba Fort Worth Housing Solutions (Fort Worth Housing Solutions) or affiliate for the development of 55 units of deeply
affordable housing for homeless families;
2. Authorize execution of related contract and loan documents with Fort Worth Housing Solutions or any affiliates;
3. Authorize the City Manager, or his designee to amend contracts and loan documents as necessary for completion of the projects provided
any amendments are within the scope of the projects and comply with City policies and all applicable laws and regulations governing the use
of federal grant funds;
4. Find that the expenditures and waiver or deferral of City fees serves the public purpose of providing decent, safe, and affordable housing to
extremely low-income residents in the City and that adequate controls are in place through the loan documents to ensure the public purpose
is carried out; and
5. Adopt appropriation ordinance increasing estimated receipts and appropriations in the Grants Operating Federal Fund, in the amount of
$230,158.60, for the purpose of funding interest earned in the restricted cash account.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to award a forgivable loan funded from Community Development Block Grant to
provide a total of 55 units of deeply affordable housing for homeless families.
Background
The City of Fort Worth is experiencing a significant rise in family homelessness. According to Tarrant County Homeless Coalition, family
homelessness has increased 27% from the Point in Time Count in 2020 to 2023.
In 2022, The Housing Authority of The City of Fort Worth, dba Fort Worth Housing Solutions (FWHS) and Ojala Holdings (Ojala) jointly applied to
Tarrant County's Request for Proposals (RFP) solicitation for funding to support affordable housing. The application included numerous letters of
support from the community and partners who will have an active role in stabilizing families. Those partners include FWISD, JPS, MHMR, LVT
Rise, Cook Children's, and Moritz Kia. The proposed project will convert the Express Inn at 8401 West Freeway to 55 units of deeply affordable
housing — Casa de los Suenos. Ojala will assist with the conversion as fee developer and asset manager. The property currently has 83 units,
which will be converted into 55 units to accommodate families. This configuration would include 12 1-bedroom units, 23 2-bedroom units, and 20
3-bedroom units, ranging from 416 square feet to 818 square feet, an average of 644 square feet per unit. The project will also include a resident
lounge, community space, business center, computer lab, and case management offices. Other planned amenities include a dog park,
playground, multi -function sport court, activated green courtyard, resident garden, and laundry center.
FWHS and Ojala completed the purchase, renovation, lease up and has successfully operated a similar development in Fort Worth since
December 2020. That project, Casa de Esperanza, has become a national model of collaboration between municipal entities, non -profits and
private businesses to address the growing number of persons experiencing homelessness.
This particular project is a collaborative effort between the City of Fort Worth, Tarrant County, Fort Worth Housing Finance Corporation, Fort Worth
Housing Solutions, and gala Holdings. The anticipated project cost is approximately $11.9 million, including the following proposed funding from
the City:
• Community Development Block Grant $1,500,000.00
Funds will be reprogrammed as follows:
From:
Program Year
Activity
Amount
2018-2019
Neighborhood Conservation Plan
$191,721.54
2019-2020
Neighborhood Conservation Plan
$29,819.85
2019-2020
Sheraton Drive Water/Sewer Project
$180,048.62
2020-2021
Sheraton Drive Water/Sewer Project
$123,118.31
2019-2020
Interest Earned — Restricted Cash
$230,158.68
2022-2023
Rental Rehabilitation Project
$745,133.00
To:
Program Year
Activity
Amount
2018-2022
FWHS — Casa de los Suenos
$1,500,000.00
Tarrant County has committed to fund $8 million. FWHS and Ojala have reduced fees by $258,000.00 as well as made a commitment of an
additional $500,000.00 by Ojala to the project. FWHS staff will recommend that their board approve a guarantee of the remaining gap of $1.9
million at their next scheduled board meeting on March 30, 2023. FWHS and Ojala intend to work with local foundations to obtain charitable
donations to fill the gap.
A 30-day public notice was published in the Fort Worth Star -Telegram on Wednesday, March 8, 2023. The public comment period began on
Thursday, March 9, 2023 and ended on Friday, April 7, 2023.
A Form 1295 is not required because: This contract will be with a governmental entity, state agency or public institution of higher education: Fort
Worth Housing Solutions
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendation and adoption of the attached appropriation ordinance, funds will
be available in the current operating budget, as appropriated, in the Grants Operating Federal Fund. The Neighborhood Services
Department (and Financial Management Services) will be responsible for the collection and deposit of funds due to the City. Prior to an
expenditure being incurred, the Neighborhood Services Department has the responsibility to validate the availability of funds. This is a
reimbursement grant.
Submitted for City Manager's Office by: Fernando Costa 6122
Originating Business Unit Head: Victor Turner 8187
Additional Information Contact: Sharon Burkley 5785
Chad LaRoque 2661