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HomeMy WebLinkAboutResolution Fort Worth Housing Finance Corporation (FWHFC) FWHFC-2023-21RESOLUTION NO. FWHFC-2023-21 FORT WORTH HOUSING FINANCE CORPORATION A RESOLUTION AUTHORIZING THE ACQUISITION OF LAND LOCATED AT 3625 KEARNEY AVENUE FOR THE REHABILITATION OF NORTHILL MANOR APARTMENTS AND ENTERING INTO A LONG-TERM GROUND LEASE WITH NORTHILL MANOR HOUSING PARTNERS, LP WHEREAS, the City Council of the City of Fort Worth ("City") created the Fort Worth Housing Finance Corporation (the "Corporation") in 1979 pursuant to the Texas Housing Finance Corporations Act, 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 residents in acquiring quality, accessible, affordable housing through lending and construction activities; WHEREAS, the Board of the Corporation ("Board"), by separate resolution, has been asked to approve an agreement with Horizon ELOM Holdings, LLC (`HEH'), a California limited liability company to rehabilitate the Northill Manor Apartments, a 101-unit multifamily housing development located at 3625 Kearney Avenue (the "Project"); WHEREAS, Northill Manor Housing Partners, LP, a Texas limited partnership (the "Partnership"), will rehabilitate, own and manage the Project, with Northill Manor Housing Partners, LLC, (the "Company"), a Texas limited liability company and single purpose entity created to be the General Partner ("GP") of the Partnership; and WHEREAS, the Corporation will participate in the development by (i) owning the land on which the Project is located; (ii) being the sole member of the GP entity; and (iii) taking actions, as the sole member of the Company, on behalf of the Partnership necessary to support the tax credit application and the issuance of multifamily housing revenue bonds to finance a portion of the costs of the Project to TDHCA; WHEREAS, HEH, on behalf of the Partnership, applied for 2023 Non -Competitive (4%) Housing Tax Credits from the Texas Department of Housing and Community Affairs ("TDHCA") to rehabilitate the Project; WHEREAS, HEH received a reservation of up to $20,000,000 in private activity bond volume cap in connection with multifamily housing bonds to be issued by Cinco Public Facility Corporation, an affiliate of Fort Worth Housing Solutions (the "Bonds"). WHEREAS, on February 28, 2023, the Fort Worth City Council adopted Resolution 5707- 02-2023, which approved issuance of bonds by Cinco Public Facility Corporation to finance development of the Project. WHEREAS, the Corporation intends to acquire _ acres of land (the "Land") from the owner(s) of the Land on which the project is located and operated; RESOLUTION NO. FWHFC-2023-21 PAGE 2 WHEREAS, the Corporation desires to acquire fee ownership of the Land and, as Landlord, desires to enter into a Ground Lease with the Partnership whereby the Partnership will have a tenant's leasehold estate in the Land; WHEREAS, the Partnership desires to enter into a Ground Lease with the Corporation whereby the Partnership will have a tenant's leasehold estate in the Land; WHEREAS, the Board desires to authorize (i) the acquisition of the Land; (ii) entering into a long-term ground lease with the Partnership for the Land; (ii) entering into certain agreements on behalf of the GP of the Partnership, as developer for the project; and (iii) taking such other actions on behalf of the GP of the Partnership as necessary or convenient to act as developer and complete the project. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE FORT WORTH HOUSING FINANCE CORPORATION: CONVEYANCE RESOLVED, that the Corporation is authorized to acquire fee ownership of the Land; FURTHER RESOLVED, that the Corporation is authorized to negotiate, approve, and accept a deed conveying fee ownership of the Land to the Corporation and to negotiate, approve, execute and deliver all related property transfer documents, including any assignments, certificates, affidavits, documents, instruments, agreements, consents, statements, and various other writings and documentation of every nature whatsoever as the Corporation may deem advisable, necessary, desirable, or required for such conveyance (collectively, the "Conveyance Documents"); and that the Conveyance Documents in each and every respect are approved and authorized; GROUND LEASE RESOLVED, that the Corporation is authorized to lease the Land to the Partnership; FURTHER RESOLVED, that the Corporation, as landlord, is authorized to negotiate, execute, and deliver a Ground Lease for a period of up to 99 years by which the Land shall be leased by the Corporation to the Partnership, as tenant, and a Memorandum of Lease in recordable form, and to negotiate, execute and deliver all other documentation of every nature whatsoever as the Corporation may deem advisable, necessary, desirable, or required for such lease (collectively, the "Lease Documents"); and that the Lease Documents in each and every respect are approved and authorized; RESOLUTION NO. FWHFC-2023-21 PAGE 3 ALL CLOSING DOCUMENTS AND AUTHORITY RESOLVED, that the Corporation, in connection with all actions authorized in these Resolutions, and related transactions contemplated thereby, is authorized to negotiate, approve, execute, and deliver the Conveyance Documents, the Lease Documents and all such agreements, affidavits, security instruments, notes, assignments, financing statements, documents, instruments, consents, applications, certifications, and other writings of every nature whatsoever as the Corporation deems necessary to consummate the closing of the transactions contemplated by these resolutions (collectively, the "Closing Documents"), and the Closing Documents in each and every respect are approved and authorized; FURTHER RESOLVED, that Fernando Costa, the General Manager of the Corporation, or Victor Turner, the Assistant General Manager of the Corporation, or their duly appointed successors, or in the absence of such officer, any other duly elected officer of the Corporation (each, the "Executing Officer"), are each hereby fully authorized to negotiate and approve the terms of and to execute and deliver the Closing Documents and other documents for and on behalf of the Corporation; FURTHER RESOLVED, that the Executing Officer is hereby authorized and directed for and on behalf of, and as the act and deed of, the Corporation to take such other action in the consummation of the transactions herein contemplated and to do any and all other acts and things necessary or proper in furtherance of the transactions contemplated by these resolutions, as the Executing Officer shall deem to be necessary or desirable, and all acts heretofore taken by the Executing Officer to such end are hereby expressly ratified and confirmed as the acts and deeds of the Corporation; FURTHER RESOLVED, that all of the actions, documents, correspondences, recordings, instruments, or other writings that are necessary, advisable, or desirable in order to carry out the foregoing resolutions, and for the conveyance and leasing of the Land, and the development of the project, for and on behalf of the Corporation, its approval of each to be conclusively evidenced by its execution thereof, are hereby approved; FURTHER RESOLVED, that, to the extent any of the actions authorized by these resolutions have already been taken by the Corporation or Fernando Costa or Victor Turner, such actions are hereby ratified and confirmed as the valid actions of the Corporation, effective as of the date such actions were taken. These resolutions shall take effect on the date of their adoption. RESOLUTION NO. FWHFC-2023-21 PAGE 4 AND IT IS SO RESOLVED. ADOPTED on April 25, 2023. FORT WORTH HOUSING FINANCE CORPORATION Carlos Flores President Attest: k4 % I � J4CAMIGI, 0 Jannette S. Goodall Corporate Secretary