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HomeMy WebLinkAboutResolution Fort Worth Housing Finance Corporation (FWHFC) FWHFC-2024-03RESOLUTION NO. FWHFC- 2024-03 FORT WORTH HOUSING FINANCE CORPORATION RESOLUTION AUTHORIZING EXECUTION OF A CONTRACT WITH PFM FINANCIAL ADVISORS, LLC FOR FINANCIAL ADVISORY SERVICES AND AUTHORIZING A PARTNERSHIP APPLICATION FEE BE CHARGED TO ALL CORPORATION PARTNERSHIP APPLICANTS AND INCENTIVE PROPOSALS FOR THE REVIEW OF TERMS WHEREAS, Section 394.032 of the Local Government Code provides that a housing finance corporation may make contracts and other instruments necessary to exercise its powers and that a housing finance corporation may plan, research, study, develop and promote the establishment of residential development; and WHEREAS, The Fort Worth Housing Finance Corporation (FWHFC) has identified a need to thoroughly evaluate housing partnerships with affordable housing developers to ensure that public benefits are maximized and limited public dollars are maximized by ensuring that developments are subsidized at an appropriate level and not over -subsidized given the tax abatement provided to FWHFC partners; and WHEREAS, to provide the thorough evaluation, the FWHFC staff issued a Request for Proposals ("RFP") for a financial advisory firm to develop a methodology for evaluating the fiscal and economic impact of affordable housing development partnerships and incentives, provide an objective review of developer proformas and financial projections, providing accurate estimates of tax loss to the City of Fort Worth and other taxing entities, determining if partnerships are fair to the City and FWHFC, assisting in the creation of policies for partnerships and incentive terms, and educating and assisting the FWHFC in potentially expanding the financial tools available to encourage affordable housing development; and WHEREAS, the FWHFC issued a Request for Proposals on December 5, 2023, for the for a Financial Advisor to support the FWHFC; and WHEREAS, the Request for Proposals was widely distributed to 14 Texas municipal financial advisor firms and also posted on the Municipal Advisory Council of Texas website; and WHEREAS, the Request for Proposals garnered one proposal from PFM Financial Advisors, LLC of Dallas, Texas; and WHEREAS, an interview with PFM Financial Advisors, LLC was held on January 12, 2024, by an interview panel consisting of Fernando Costa, FWHFC General Manager; Victor Turner, FWHFC Assistant General; John Samford, Assistant Treasurer for the City of Fort Worth; City of Fort Worth Legal Department staff, and Neighborhood Services staff, and WHEREAS, the interview panelists determined that PFM Financial Advisors, LLC was a qualified respondent because they are a registered municipal advisor and is a national -level, RESOLUTION NO. FWHFC-2024-03 PAGE 2 leading provider of financial advisory services with expertise in housing authorities and housing finance corporations; NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE FORT WORTH HOUSING FINANCE CORPORATION: 1. THAT the Board authorizes the execution and delivery of a vendor services contract (the "contract") by and between the Corporation and PFM Financial Advisors, LLC for services in the amount of up to $50,000.00 subject to availability of funds, on common and customary terms for the contracted services agreed to by the parties; 2. THAT the Board authorizes a partnership application fee, in an amount to be determined after a financial impact analysis, to be charged by the FWHFC and applied to any affordable housing developer who seeks a partnership with the Fort Worth Housing Finance Corporation to offset the total cost of underwriting review, development of recommendations for the FWHFC, and presentation of recommendations by PFM LLC; 3. THAT Fernando Costa, General Manager of the Corporation, or Victor Turner, Assistant General Manager of the Corporation, or their duly appointed successors, are each authorized to execute and deliver the contract for and on behalf of the Corporation along with any related documents or agreements necessary to implement the contract, and each is authorized to extend, modify and amend the contract, the terms of the contract or the terms of any related documents or agreements, provided any such extensions, modifications and amendments are within the scope of the project, and in conformance with the goals and purposes of the Corporation, as may be amended from time to time; 4. THAT this resolution takes effect from the date of its adoption. AND IT IS SO RESOLVED. Adopted January 30, 2024 FORT WORTH HOUSING FINANCE CORPORATION Carlos Flores President Attest: Jannette S. Goodall Corporate Secretary