HomeMy WebLinkAboutOrdinance 26449-09-2023ORDINANCE NO. 26449-09-2023
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE GRANTS OPERATING FEDERAL FUND, SUBJECT
TO RECEIPT OF THE GRANT, IN THE AMOUNT OF $4,000,000.00, FOR THE
PURPOSE OF FUNDING (1) COLUMBIA RENAISSANCE PHASE III
CONSTRUCTION, (2) CASA MIA (WESTCARE) PROPERTY PURCHASE;
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 $4,000,000.00, for the purpose
of funding (1) Columbia Renaissance Phase III Construction, (2) Casa Mia (Westcare) Property Purchase.
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said prior ordinances and appropriations are hereby expressly repealed.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:
Q.: /'
Le ie unt (Sep 19, 2023 08:55 COT)
Assistant City Attorney
ADOPTED AND EFFECTIVE: September 12, 2023
CITY SECRETARY
Jannette S. Goodall
City Secretary
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 09/12/23 M&C FILE NUMBER: M&C 23-0742
LOG NAME: 19TARRANT COUNTY -AFFORDABLE HOUSING FUNDING REALLOCATION
SUBJECT
(CD 8) Accept Emergency Rental Assistance Program Funds Totaling $4,000,000.00 Reallocated from Tarrant County, Allocate American Rescue
Plan Act Funds Totaling $3,000,000.00 to Two Affordable Housing Projects - Columbia Renaissance Phase III and The Nest, Allocate Emergency
Rental Assistance Program Funds Totaling $4,000,000.00 to Two Affordable Housing Projects - Columbia Renaissance Phase III, and Casa Mia,
and Adopt Appropriation Ordinance
RECOMMENDATION:
It is recommended that the City Council:
Accept Emergency Rental Assistance Program funds from the United States Department of the Treasury through Section 3201 of the
American Rescue Plan Act of 2021 from Tarrant County in the amount of $4,000,000.00;
Reallocate American Rescue Plan Act, Subtitle M (State and Local Fiscal Recovery Funds) in the amount of $3,000,000.00 for the purpose
of funding two affordable housing development projects allocated as follows: (1) Columbia Renaissance Phase III (new construction) -
$1,500,000.00 and (2) The Nest (new construction) - $1,500,000.00; and
Adopt the attached ordinance increasing the estimated receipts and appropriations in the Grants Operating Federal Fund, subject to receipt
of the grant, in the amount of $4,000,000.00, for the purpose of funding allowable expenses related to two affordable housing development
projects allocated as follows: (1) Columbia Renaissance Phase III (new construction) - $3,500,000.00 and (2) Casa Mia (property purchase)
- $500,000.00.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to accept Emergency Rental Assistance (ERA2) Program funds totaling
$4,000,000.00 reallocated from Tarrant County and reallocate American Rescue Plan Act (ARPA) funds totaling $3,000,000.00 to affordable
housing projects, as shown on the table below.
In December 2020, the Consolidated Appropriations Act of 2021 was approved by Congress and signed by the President. This statute was part
of the federal government's continued effort to help communities respond to economic and other impacts of the coronavirus pandemic. Section
501 of the Act included authorization of $25 billion for a first Emergency Rental Assistance (ERA1) program to be administered by state and local
governments, including $27,484,117.00 for the City of Fort Worth (City). City Council approved acceptance of this first ERA award through
M&C 21-0111 on February 16, 2021. In March of 2021, Congress and the President approved the American Rescue Plan Act, which extended the
deadline for expenditure of ERA1 funds until September 30, 2022, and included further funds for Emergency Rental Assistance (known as ERA2).
The purpose of the funds is for financial assistance and housing stability services for households with incomes under 80% of the Area Median that
have incurred financial hardship and housing instability due to or during the coronavirus pandemic.
M&C 22-0927, dated November 8, 2022, was approved by City Council awarding ARPA funds totaling $3,078,001.00 to Tarrant County Samaritan
Housing, Inc. in the form of a forgivable loan for the development of 37 units of permanent supportive housing to be located at 5120 McCart
Avenue. As stated in the M&C Discussion section, in the event that the McCart site does not meet the requirements included herein, a future M&C
with loan terms could be brought for City Council approval for another project site, if such a site is identified by Samaritan House and meets all
required City criteria. At this time, more than nine months after the M&C was approved, neither the McCart site nor any other location has met the
required City criteria. It is the recommendation of staff that the ARPA funds be reallocated to the proposed projects listed below, which includes
the development of 25 units of permanent supportive housing.
In May 2023, Tarrant County released a Request for Proposals (RFP) for ARPA funds. The goal of the RFP was to receive proposals aimed at
increasing the number of affordable housing units for homelessness, permanent supportive housing, supportive housing, and deeply affordable
housing. Per a request from Tarrant County, the City of Fort Worth is proposing to co -fund the below listed projects with a direct allocation of
Tarrant County ARPA funds, reallocated ERA2 funds from Tarrant County to the City of Fort Worth and ARPA funds from City of Fort Worth as
shown. Tarrant County Commissioners are expected to approve a resolution reallocating these funds from Tarrant County to the City of Fort Worth.
Funding totaling $8,500,000.00 will be used to develop 61 deeply affordable housing units, including 25 permanent supportive housing (PSH)
units, for extremely low and very low-income individuals.
Proposed Affordable Housing Projects
� j I
Proposed
County
j Total ARPA I Proposed
Council
Total Project
Requested
Funding proposed
County
Proposed j
# Units
Project I District
Cost
through
City ARPA
ERA2
Total Public
Created
County's
(direct
Dispersed to
Funding
(<60% AMI)
ARPA RFP
allocation I
City
from Tarrant!
----� -----
---- I
� _
County)
Columbia
Renaissance Phase III,8
Columbia Residential
$35,299,277.00i
$5,157,639.001
$0.001$1,500,000.001
$3,500,00.00
$5,000,000.00*
25 PSH Units
(New Construction) I
24 deeply
The Nest; Justin's
j
affordable,
Place (New 8
$9,000,000.00
$4,000,000.001$1,500,000.00
$1,500,000.00
$0.00!
$3,000,000.00:
supportive
Construction)
units (12
duplexes)
I
i
I
—
12 deeply
Casa
8
f
$800,000.00
$657,000.001
$0.00; $0.00�.
$500,000.00
$500,000.00:
affordable,
rty PurchasWestcare)
(Property Purchase)
supportive
units
TOTALS
I
$45,099,277.00
$9,814,639.00
$1,500,000.00. $3,000,000.00
$4,000,000.00'
$8,500,000.00',
61 units
($139,344.00
j
subsidylunit);
*Does not include committed HOME funds from City of Fort Worth
Neighborhood Services Department staff views the request from the County as an opportunity to spread extremely limited resources further. When
bundling City and County funding together, we create more housing units than if each unit of government funds projects separately.
In addition to the ARPA and ERA2 funding proposed, Columbia Renaissance Phase III has a HOME funding commitment from the City of Fort
Worth for $4,000,000.00 over three years. The disbursement is planned to be $1,000,000.00 in year one (approved by M&C on August 8, 2023),
and future commitments in Year 2 and Year 3 of $1,500,000.00 each year, which will be included on future requests to the City Council. These will
be forgivable loans to the project. Total public funding for Columbia Renaissance III will be $9,000,000.00.
A Form 1295 is not required because: This contract will be with a governmental entity, state agency or public institution of higher education: Tarrant
County
FISCAL INFORMATION I CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations and adoption of the attached appropriation ordinance, funds
will be available in the current operating budget, as appropriated, in the Grants Operating Federal Fund for the Columbia Renaissance Phase III,
The Nest and Casa Mia projects. 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 an advance grant.
Submitted for City Manager's Office by: Fernando Costa 6122
Originating Business Unit Head: Victor Turner 8187
Additional Information Contact: Sharon Burkley 5785
Terrance Jones 7563
Expedited