HomeMy WebLinkAboutIR 24-1794 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 24-1794
To the Mayor and Members of the City Council January 9, 2024
Page 1 of 2
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VA SUBJECT: PROPOSAL TO AMEND THE NEIGHBORHOOD EMPOWERMENT
yez3 ZONE BASIC INCENTIVES AND TAX ABATEMENT POLICY SO AS
TO REPEAL THE DEVELOPER'S OPTION TO MAKE CERTAIN
PAYMENTS IN LIEU OF PROVIDING ON-SITE AFFORDABLE
HOUSING
The purpose of this Informal Report is to provide information about an upcoming Mayor & Council
Communication (M&C), scheduled to appear on the January 23 City Council agenda, which would
amend the Neighborhood Empowerment Zone (NEZ) basic incentives and tax abatement policy so
as to repeal the developer's option to make certain payments in lieu of providing on-site affordable
housing. The proposed amendment has been recommended by City staff and unanimously
endorsed by the City Council's Neighborhood Quality and Revitalization Committee, pursuant to
the committee's discussion of various policy options at its meetings in October and December 2023.
The amendment would delete section "b" of the current NEZ affordable housing policy as follows.
Current Policy
Multi-family and mixed-use projects must satisfy one of the following:
a. At least ten percent (10%) of the total residential units constructed or rehabilitated shall be
affordable (as defined by the U. S. Department of Housing and Urban Development) and set
aside to persons with incomes at or below eighty percent (80%)of area median income based
on family size and at least another ten percent (10%) of the total units constructed or
rehabilitated shall be affordable (as defined by the U. S. Department of Housing and Urban
Development) and set aside to persons with incomes at or below sixty percent (60%) of area
median income based on family size; or
b. If specifically permitted by the City Council, in its sole discretion, and as specified in the tax
abatement agreement, pay the Fort Worth Housing Finance Corporation an annual sum
equal to $200.00 for each rental residential unit located on the property which is subject to
the tax abatement. The Fort Worth Housing Finance Corporation is a housing finance
corporation created pursuant to authorization by the City Council of the City of Fort Worth in
accordance with Chapter 394, Texas Local Government Code, to assist in the financing of
the costs of residential development and ownership for citizens of decent, safe and sanitary
housing at affordable prices. An applicant's choice as to whether to commit to an affordable
housing set-aside or to an annual payment to the Fort Worth Housing Finance Corporation
must be made prior to execution of the tax abatement agreement and may not be changed
during the term of the agreement. This annual payment will be due on or before February 1
of each year in which a tax abatement is granted (or such other date that may be agreed to
in the tax abatement agreement). Failure to pay the annual payment to the Housing Finance
Corporation when due will result in the forfeiture of the entire tax abatement for the tax year
in which payment was due. Additional terms and conditions governing this annual payment
requirement will be set forth in the tax abatement agreement.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 24-1794
To the Mayor and Members of the City Council January 9, 2024
Page 2 of 2
x�
VA SUBJECT: PROPOSAL TO AMEND THE NEIGHBORHOOD EMPOWERMENT
yez3 ZONE BASIC INCENTIVES AND TAX ABATEMENT POLICY SO AS
TO REPEAL THE DEVELOPER'S OPTION TO MAKE CERTAIN
PAYMENTS IN LIEU OF PROVIDING ON-SITE AFFORDABLE
HOUSING
c. In addition, at least five percent (5%) of the total residential units constructed or rehabilitated
shall be compliant with the Americans with Disability Act (ADA) in accordance with Section
504 of the Rehabilitation Act, and must be fully accessible and two percent (2%) of the total
units constructed must be fully accessible to persons with sensory impairments.
Proposed Policy
Multi-family and mixed-use projects must satisfy the following:
a. At least ten percent (10%) of the total residential units constructed or rehabilitated shall be
affordable (as defined by the U. S. Department of Housing and Urban Development) and set
aside to persons with incomes at or below eighty percent (80%)of area median income based
on family size and at least another ten percent (10%) of the total units constructed or
rehabilitated shall be affordable (as defined by the U. S. Department of Housing and Urban
Development) and set aside to persons with incomes at or below sixty percent (60%) of area
median income based on family size.
b. In addition, at least five percent (5%) of the total residential units constructed or rehabilitated
shall be compliant with the Americans with Disability Act (ADA) in accordance with Section
504 of the Rehabilitation Act, and must be fully accessible and two percent (2%) of the total
units constructed must be fully accessible to persons with sensory impairments.
If you should have any questions about this proposal, please contact Victor Turner, Neighborhood
Services Director, at 817-392-8187.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS