HomeMy WebLinkAboutResolution 5801-09-2023A Resolution
No. 5801-09-2023
A RESOLUTION OF NO OBJECTION TO SUPPORT A HOUSING TAX
CREDIT APPLICATION FOR THE DEVELOPMENT OF PALLADIUM E
LANCASTER AND ACKNOWLEDGE THAT THE DEVLEOPMENT IS
LOCATED WITHIN ONE LINEAR MILE OR LESS FROM A HOUSING
TAX CREDIT DEVELOPMENT THAT SERVES THE SAME TARGET
POPULATION
WHEREAS, the City of Fort Worth's 2022 Comprehensive Plan is supportive of the
preservation, improvement, and development of quality, affordable, accessible rental and
ownership housing;
WHEREAS, the City of Fort Worth's 2018-2022 Consolidated Plan makes the
development of quality, affordable, accessible rental housing units for the City's low-income
residents a high priority;
WHEREAS, Palladium E Lancaster, Ltd., an affiliate of Palladium USA, Inc., has
proposed the new construction of a 243-unit multifamily affordable rental housing development
named Palladium E Lancaster, located at 4909 & 5003 E Lancaster Avenue and 4900 & 4808
Norma Street in the City of Fort Worth, which will provide units affordable to households with
incomes at or below sixty percent (60%) of Area Median Income and thirty percent (30%) of Area
Median Income;
WHEREAS, Palladium E Lancaster, Ltd. has advised the City that it intends to submit an
application to the Texas Department of Housing and Community Affairs ("TDHCA") (TDHCA
Application No.) for 2023 Non -Competitive (4%) Housing Tax Credits to finance a portion of the
costs of development; and
WHEREAS, TDHCA's 2023 Qualified Allocation Plan ("QAP") states that the governing
body of the jurisdiction where the development is to be located must vote specifically to allow the
construction of a new development located within one (1) linear mile or less from a housing tax
credit development which serves the same target population.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS, THAT:
1. Notice of intent to file an application for Non -Competitive (4%) Housing Tax Credits
for the development of Palladium E Lancaster has been provided to the City Council
by Palladium E Lancaster, Ltd. in accordance with Section 2306.67071(a) of the Texas
Government Code.
2. The City Council has had sufficient opportunity to obtain a response from Palladium E
Lancaster, Ltd., regarding any questions or concerns about the proposed development.
3. The City Council has held a hearing for the purpose of receiving public comment on
the proposed development in accordance with Section 2306.67071(b) of the Texas
Government Code.
4. The City of Fort Worth, acting through its City Council, additionally confirms that
Palladium E Lancaster is located in a Neighborhood Empowerment Zone (NEZ).
Accordingly, development fees will be waived pursuant to the NEZ Policy, with such
waiver being an amount of no less than $500.00, conditioned upon its receipt of Housing
Tax Credits. The City Council also finds that the waiver of such fees serves the public
purpose of providing quality, accessible, affordable housing to low- and moderate -income
housings in accordance with the City's Comprehensive Plan and Action Plan, and that
adequate controls are in please through the City's Neighborhood Services Department to
carry out such public purpose.
The City of Fort Worth, acting through its City Council, acknowledges that Palladium E
Lancaster is located one (1) linear mile or less from a development that serves the same
target population as the proposed Palladium E Lancaster and received an allocation of
Housing Tax Credits for new construction or adaptive reuse within the previous three years
and this formal action has been taken to put on record the opinion expressed by the City
Council of the City of Fort Worth to authorize the development to move forward.
6. After due consideration of the information provided by Palladium E Lancaster, Ltd and
any public comment on the proposed development, the City Council does not object to
the application of Palladium E Lancaster, Ltd.to the TDHCA for 2023 Non -
Competitive (4%) Housing Tax Credits for the purpose of the development of
Palladium E Lancaster.
Adopted this 12t' day of September 2023.
ATTEST:
Jannette S. Goodall, City Secretary
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Palladium E Lancaster I District 11
4909 and 5003 E Lancaster Ave
4808 and 4900 Norma St
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 09/12/23 M&C FILE NUMBER: M&C 23-0740
LOG NAME: 19PALLADIUMELANCASTER4%HTCRESOLUTION
SUBJECT
(CD 11) Conduct a Public Hearing on the Application by Palladium E Lancaster Avenue, Ltd. to the Texas Department of Housing and Community
Affairs for Non -Competitive (4%) Housing Tax Credits for the New Construction of Palladium E Lancaster Avenue, a Proposed Tax -Exempt
Development Located at 4909 & 5003 E Lancaster Avenue and 4900 & 4808 Norma Street, Fort Worth, Texas 76103, Adopt a Resolution of No
Objection to the Application, Make Related Determinations, and Acknowledge the One -Mile Three Year Rule
(PUBLIC HEARING - a. Report of City Staff: Dyan Anderson; b. Citizen Presentations; c. Council Action: Close Public Hearing and Act on M&C)
RECOMMENDATION:
It is recomended that the City Council:
Conduct a public hearing to allow citizen comment on the application of Palladium E Lancaster, Ltd. to the Texas Department of Housing and
Community Affairs for 2023 Non -Competitive (4%) Housing Tax Credits for the proposed tax-exempt development of Palladium E Lancaster,
a multifamily affordable rental housing development, located at 4909 & 5003 E Lancaster Avenue and 4900 & 4808 Norma Street, Fort
Worth, Texas 76103;
Adopt the attached Resolution of No Objection to the application;
Determine that the development of Palladium E Lancaster as proposed is consistent with the City's obligation to affirmatively further fair
housing; and
Acknowledge that Palladium E Lancaster is located within one linear mile or less from developments that serve the same target population
and previously received an allocation of Housing Tax Credits for new construction.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to take actions in accordance with state law and City policy on an application for
tax credits on the new construction of an affordable housing project.
Palladium E Lancaster Avenue, Ltd. (Developer) has advised the City that it intends to apply to the Texas Department of Housing and Community
Affairs (TDHCA) for 2023 Non -Competitive (4%) Housing Tax Credits for the new construction of Palladium E Lancaster, a multifamily affordable
rental housing development. The Developer has requested a Resolution of No Objection from the City Council. TDHCA will not award 4% Housing
Tax Credits to an applicant unless they provide a Resolution of No Objection from the governing body of the jurisdiction in which the development is
to be located. State law requires that the governing body conduct a public hearing for citizens to provide comment on the proposed development —
regardless of whether the governing body intends to issue a resolution.
Palladium E Lancaster will consist of approximately 243 units. 170 units are reserved for households earning 60 percent or less of Area Median
Income (AMI) and 24 deeply -affordable units set aside for households earning 0-30 percent of AMI. The development will consist of one-, two-, and
three -bedroom units with amenities including a resort -style pool, playground, dog park, cabana with grill, multisport court, clubhouse with
community room, business center, and state-of-the-art fitness center. Green and resilience features such as window shading and electric
vehicle charging stations will be incorporated in the development helping it meet National Green Building Standards. The development site is
located within close proximity to retail, groceries, parks, and access to both Interstate Highway 30 West, 1-820 East Loop, and State Highway 180,
which connect to the greater Dallas -Fort Worth area.
A zoning change to allow for the new multifamily development was recommended for approval by the zoning commission on July 12, 2023 and
passed by City Council during the August 8, 2023 meeting.
Palladium E Lancaster Avenue, Ltd. is an affiliate of Palladium USA, Inc., which has developed over 25 affordable and mixed -income multifamily
tax credit properties in Texas. The developer approached the Fort Worth Housing Finance Corporation (FWHFC) about a partnership in which the
FWHFC would serve as the general partner and general contractor. If approved, this partnership will provide the development with certain tax
exemptions.
On November 8, 2022, City Council adopted an updated housing tax credit policy (M&C 22-0924) that outlines the requirements for an applicant to
receive a Resolution of No Objection for a 4% housing tax credit development. The policy requires that the councilmember who represents the
district in which the development will be located be notified as well as the superintendent of the school district in which the development is located
and lastly, any registered neighborhood or homeowner's association(s) with boundaries that are within one -quarter mile of the proposed
development. In addition, at least one public meeting must be held for the affected registered neighborhood association(s) (NA), if any, prior to
submission of a resolution application. Palladium E Lancaster Avenue, Ltd. notified Mayor Pro Tern Gyna Bivens (CD 5), Councilmember Jeanette
Martinez (CD 11) and Fort Worth superintendent, Ang6lica Ramsey. The developer held multiple meetings with the Central Meadowbrook NA who
unanimously endorsed the development.
TDHCA rules state that if a proposed development will be located within one linear mile or less from other developments that serve the same
target population and which received an allocation of Housing Tax Credits for new construction, it will be ineligible for Housing Tax Credits unless
the governing body of the jurisdiction in which the proposed development is to be location has no objection to the application and also submits
Resolution to TDHCA stating that the proposed development is consistent with the jurisdiction's federal obligation to affirmatively further fair
housing. Palladium E Lancaster will be located within one mile of another tax credit property serving the same population. By approval of this M&C
and related resolution, City Council affirms that is has no objection to the development and that the development is consistent with the jurisdiction's
federal obligation to affirmatively further fair housing.
Palladium E Lancaster is located in Neighborhood Empowerment Zone (NEZ) 6. Accordingly, development fees will be waived pursuant to the
NEZ policy, which such waiver being in an amount of no less than $500.00.
The affordability requirements for the project will be ensured through various contracts and documents from TDHCA, which will require the
maintenance of affordability for an additional thirty years. Depending on the lender chosen for this development, additional affordability
requirements may also apply. Approval of this M&C also represents Council's determination that the TDHCA's affordability requirements and
documents are sufficient to ensure the public purpose of housing affordability is carried out.
Following the close of the public hearing, Staff requests that the City Council consider the attached Resolution of No Objection, including all related
acknowledgements included therein, to support of the application for 2023 Non -Competitive (4%) Housing Tax Credits for the proposed new
construction of Palladium E Lancaster. Providing this development as a quality and affordable housing option will assist the City in fulfilling its goals
under its Consolidated Plan and Comprehensive Plan, and in fulfilling its obligation to Affirmatively Further Fair Housing by providing quality,
accessible, affordable housing for low- to moderate -income residents and supporting economic development and revitalization.
This development is located in COUNCIL DISTRICT 11
A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that approval of the above recommendations will have no material effect on the Fiscal Year 2024 Budget, and that
any effect on expenditures and revenues will be budgeted in future Fiscal Years and will be included in the long-term financial forecast.
Submitted for Citv Manaaer's Office bv: Fernando Costa 6122
Originating Business Unit Head: Victor Turner 8187
Amy Connolly 7556
Additional Information Contact: Chad LaRoque 2661