HomeMy WebLinkAboutResolution 5896-02-2024A Resolution
NO. 5896-02-2024
SUPPORTING A HOUSING TAX CREDIT APPLICATION FOR HUGHES HOUSE III,
COMMITTING DEVELOPMENT FUNDING, DETERMINING THAT HUGHES HOUSE III
CONTRIBUTES TO THE CITY'S CONCERTED REVITALIZATION EFFORTS IN CAVILE
PLACE/HISTORIC STOP SIX NEIGHBORHOOD, ACKNOWLEDGING THAT HUGHES HOUSE
III IS LOCATED ONE LINEAR MILE OR LESS FROM A DEVELOPMENT THAT SERVES THE
SAME TARGET POPULATION, ACKKNOWLEDGING THAT THE DEVELOPMENT IS
LOCATED IN A CENSUS TRACT THAT HAS MORE THAN TWENTY PERCENT HOUSING TAX
CREDIT UNITS PER TOTAL HOUSEHOLDS, AND DETERMINING THAT HUGHES HOUSE III IS
LOCATED WITHIN A CENSUS TRACT THAT HAS A POVERTY RATE ABOVE FORTY
PERCENT
WHEREAS, the City's 2023 Comprehensive Plan is supportive of the preservation, improvement, and
development of quality, affordable, accessible housing;
WHEREAS, the City's 2023-2027 Consolidated Plan makes the development of quality, affordable,
accessible rental housing units for low income residents of the City a high priority;
WHEREAS, FW Hughes House III, LP, an affiliate of Fort Worth Housing Solutions and McCormack
Baron Salazar, has proposed a development for mixed -income affordable multifamily rental housing named Hughes
House III to be located at the southeast and southwest corners of East Rosedale Street and Etta Street in the City of
Fort Worth;
WHEREAS, FW Hughes House III, LP has advised the City that it intends to submit an application to the
Texas Department of Housing and Community Affairs ("TDHCA") for 2024 Competitive (9%) Housing Tax
Credits for Hughes House III, a new complex consisting of approximately 78 units, of which at least ten percent
(10%) of the total units will be set aside for households earning at or below thirty percent (30%) Area Median
Income;
WHEREAS, TDHCA's 2024 Qualified Allocation Plan ("QAP") provides that an application for Housing
Tax Credits may receive seventeen (17) points for a resolution of support from the governing body of the jurisdiction
in which the proposed development site is located;
WHEREAS, the QAP also states that an application may receive one (1) point for a commitment of
development funding from the city in which the proposed development site is located;
WHEREAS, the QAP also provides that an application may qualify for an additional seven (7) points if a
development is explicitly identified in a resolution as "contributing to the concerted revitalization efforts" of a
municipality;
WHEREAS, the City adopted the Cavite Place/Historic Stop Six Transformation Plan in July 2014 in
order to redevelop public housing and the surrounding neighborhoods (2023 Comprehensive Plan, Appendix A -
Existing Plans and Studies);
WHEREAS, the Hughes House III is located in the Cavite Place/Historic Stop Six Neighborhood;
WHEREAS, the City has determined that the application for Hughes House III to be submitted to
TDHCA by FW Hughes House III, LP qualifies as a development contributing to the concerted revitalization
efforts of the City in the Cavite Place/Historic Stop Six Neighborhood;
WHEREAS, the QAP states that the governing body of the appropriate municipality where the
development is to be located must by vote specifically allow the construction of a new development located within
one (1) linear mile or less from a development which serves the same target population;
WHEREAS, the QAP also states that applications for developments that will be located in a census tract
with more than twenty percent (20%) Housing Tax Credit units per total households as established by the five (5)
year American Community Survey are ineligible for Housing Tax Credits unless the governing body of the
jurisdiction in which the development will be located states that it has no objection to the application, and that the
governing body must also submit a resolution to TDHCA stating that the proposed development is consistent with
the jurisdiction's obligation to affirmatively further fair housing; and
WHEREAS, the QAP also states that if proposed development will be located in a census tract with a
poverty rate above forty percent (40%) for individuals, the governing body of the appropriate municipality must
acknowledge the high poverty rate and authorize the development to move forward with its application for tax
credits.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT
WORTH, TEXAS:
The City of Fort Worth, acting through its City Council, hereby confirms that it supports the application of
FW Hughes House III, LP to the Texas Department of Housing and Community Affairs for 2024 Competitive (9%)
Housing Tax Credits for the purpose of the development of Hughes House III to be located 4912 East Rosedale
Street and 5021 Avenue G (TDHCA Application No. 24010), and that this formal action has been taken to put on
record the opinion expressed by the City Council of the City of Fort Worth.
The City of Fort Worth, acting through its City Council, confirms that Hughes House III is located in a
Neighborhood Empowerment Zone (NEZ). Accordingly, development fees will be waived pursuant to the NEZ
Policy, which 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 selves 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 place through the City's Neighborhood Services Department
to carry out such public purpose.
The City of Fort Worth, acting through its City Council, hereby identifies Hughes House III (TDHCA
Application No. 24010) as a development in the 2024 Competitive (9%) Housing Tax Credit Application round
that contributes to the concerted revitalization efforts in the Cavile Place/Historic Stop Six Transformation Plan area,
and that this formal action has been taken to put on record the opinion expressed by the City Council of the City of
Fort Worth.
The City of Fort Worth, acting through its City Council, acknowledges that Hughes House III is located
one (1) linear mile or less from a development that serves the same target population as the proposed Hughes House
III 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.
The City of Fort Worth, acting through its City Council, acknowledges that Hughes House III will be located
in a census tract that has more than twenty percent (20%) Housing Tax Credit units per total households, that the
City Council has no objection to the construction of the development, that it has determined that the development
is consistent with the City's obligation to affirmatively further fair housing, and that this formal action has been
taken to put on record the opinion expressed by the City Council of the City of Fort Worth.
The City of Fort Worth, acting through its City Council, acknowledges that Hughes House III will be located
in a census tract that has more than forty percent (40%) poverty rate among individuals and authorizes the
development to move forward with its application for tax credits.
The City of Fort Worth, acting through its City Council, further confirms that the City has not first received
any funding for this purpose from the applicant, affiliates of the applicant, consultant, general contractor or guarantor
of the proposed development or any party associated in any way with the applicant, FW Hughes House III, LP.
Adopted this 13th day of February, 2024.
ATTEST:
By:
Jannette S. Goodall, City Secretaiy
1 �'
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 02/13/24 M&C FILE NUMBER: M&C 24-0111
LOG NAME: 192024 9%HTCRESOLUTIONS
SUBJECT
(CD 4, CD 5, CD 6, CD 8, CD 9, and CD 11) Consider and Adopt Seven Resolutions of Support for 2024 Competitive (9%) Housing Tax Credit
Applications, Approve Commitments of Development Funding in the Form of Fee Waivers in the Approximate Amount of Up to $30,000.00 for
Each Development, Find that the Fee Waivers Serve a Public Purpose and that Adequate Controls are in Place, Determine which Developments
Contribute to the City's Revitalization Efforts, Acknowledge the One -Mile Three Year Rule, and Make Related Acknowledgments
RECOMMENDATION:
1. Acknowledge the receipt of requests for City support of applications to the Texas Department of Housing and Community Affairs for 2024
Competitive (9%) Housing Tax Credits from various developers;
2. Consider and adopt the seven attached Resolutions of Support for 2024 applications for Competitive (9%) Housing Tax Credits for the
multifamily housing developments listed below, to be located at various sites throughout the City;
3. Approve fee waivers in the approximate amount of up to $30,000.00 as the City's commitment of development funding for each of the
developments that receive a Resolution of Support;
4. Find that the fee waivers for these developments serve the public purpose of providing quality, accessible, affordable housing for low- to
moderate -income households in accordance with the City's Comprehensive Plan and Annual Action Plan, and find that adequate controls
are in place through the Neighborhood Services Department to carry out such public purpose;
5. Determine that the following developments contribute to the City's concerted revitalization efforts either in, a Tax Increment Financing District,
a Neighborhood Empowerment Zone, a distinct area within a Neighborhood Empowerment Zone with a Strategic Plan, or an adopted
Transformation Plan: Hughes House III, Maren Grove, and the Lofts at Redwood;
6. Acknowledge that the following developments are each located one linear mile or less from developments that serve the same target
populations and which previously received an allocation of Housing Tax Credits for new construction within the last three years: Hughes
House III and Maren Grove;
7. Acknowledge that the following developments are each located in a census tract that has more than 20 percent Housing Tax Credit units per
total households, and authorize these developments to move forward with their applications for housing tax credits: Hughes House III,
Georgian Oaks, and the Lofts at Redwood; and
8. Acknowledge that Hughes House III is located in a census tract with a poverty rate above 40 percent, and authorize this development to
move forward with an application for tax credits.
DISCUSSION:
On November 14, 2023, the City Council adopted a policy for City support of applications to the Texas Department of Housing and Community
Affairs (TDHCA) for Noncompetitive (4%) and Competitive (9%) Housing Tax Credits (HTC) and for City commitments of development funding
(Mayor and Council Communication (M&C) 23-0946). This year the City received seven applications from developers requesting Resolutions of
Support for proposed 9% HTC developments in Fort Worth. All of the applications met the general and program specific requirements of the policy
and are recommended to receive resolutions of support through this M&C.
Resolutions of Support:
Staff requests that the City Council consider and adopt Resolutions of Support for the following developments as they have met the unit set -aside
criteria and notification requirements outlined in the City's policy. Additionally, all of these developments are located in designated revitalization
areas as defined by the City's 2024 HTC Policy or a high -opportunity area as defined by the TDHCA.
Huntington Place Senior Living Parkwood Hill to be developed by Huntington Place Senior Living Parkwood Hill, LP, an affiliate of Cross
Development Residential, to be located at 5601 Basswood Blvd., Fort Worth, 76137 (CD 4). The site for the proposed development is zoned E-
Neighborhood Commercial, proposed to be changed to PD-Planned Development. The proposed development will not be tax exempt.
Hughes House III to be developed by FW Hughes House 111, LP, an affiliate of a partnership between Fort Worth Housing Solutions and
McCormack Baron Salazar, to be located at the southeast and southwest corners of East Rosedale Street and Etta Street, Fort Worth, TX 76105
(CD 5). The site for the proposed development is zoned PD-Planned Development. The proposed development will be tax-exempt because Fort
Worth Housing Solutions is a quasi -public agency with tax-exempt status.
Delara Chase to be developed by Delara Chase, LLC, an affiliate of O-SDA Industries, LLC, to be located at 4805 Altamesa Blvd., Fort Worth,
76133 (CD 6). The site is zoned C-Medium Density Multifamily. Housing tax credits will be used to acquire and rehabilitate this existing multifamily
development. It will not be tax-exempt.
Sycamore Senior Living to be developed by Sycamore TXHP LP, an affiliate of JCM Ventures, LLC, to be located at 1651 Sycamore School
Rd., Fort Worth, 76134 (CD 8). The site for the proposed development is zoned E-Neighborhood Commercial, proposed to be changed to D-
High Density Multifamily. This development will target seniors (55+) and will not be tax exempt.
Georgian Oaks to be developed by Georgian Oaks, LLC, an affiliate of O-SDA Industries, LLC, to be located at 210 E. 7th St., Fort Worth, 76102
(CD 9). The site for the proposed development is zoned H-Central Business. Historic rehabilitation tax credits will be paired with HTCs to acquire
and rehabilitate this existing historic building in Downtown Fort Worth. This development will target seniors (55+) and will not be tax exempt.
Maren Grove to be developed by Maren Grove LLC, an affiliate of O-SDA Industries, LLC to be located at 801 W Shaw St., Fort Worth, 76110
(CD 9). The site for the proposed development is zoned MU-1-Low Intensity Mixed -Use. Historic rehabilitation tax credits will be paired with HTCs
to acquire and rehabilitate this existing historic building. It will not be tax-exempt.
Lofts at Redwood to be developed by CSH Lofts at Redwood, Ltd., an affiliate of Brampton Development, LLC, to be located at 5008 Collett
Little Rd., Fort Worth, 76119 (CD 11). The site for the proposed development is zoned E-Neighborhood Commercial, proposed to be changed to
PD-Planned Development. The proposed development will not be tax exempt.
Commitment of Develoament Fundina:
Per the City's 2024 HTC Policy, any development receiving a resolution of support will also receive a waiver of development fees for a value of no
less than $500.00 and no more than $30,000.00. This commitment of development funding qualifies HTC applicants for an additional point and
increases the competitiveness of their TDHCA applications. Staff requests that City Council approve commitments of development funding in the
form of fee waivers for each development that is recommended for a Resolution of Support. Two of the developments, Hughes House III and Maren
Grove, are located in a Neighborhood Empowerment Zone (NEZ). Accordingly, development fees for those projects will be waived pursuant to the
NEZ Policy, with such waiver being in an amount of no less than $500.00. For all other developments, the approximate total amount of the fee
waivers is $180,000.00. The fee waiver amount may be applied to (a) all building permit related fees; (b) plat application fees; (c) Board of
Adjustment application fee; (d) demolition application fee; (e) structural moving application fee; (f) Community Facilities Agreement (CFA)
application fee; (g) zoning application fee; (h) street and utility easement vacation application fee; (i) ordinance inspection fee; Q)
consent/encroachment agreement application fee; (k) urban forestry application fee; and (1) sign permit fees.
Fee waivers will be conditioned upon the development receiving an award of 2024 HTCs from TDHCA. The City's Neighborhood Services
Department will be responsible for verifying that the public purpose for the fee waivers is carried out.
Concerted Revitalization Plan:
TDHCA rules state that an application may receive additional points if the proposed development is identified in a letter as contributing to a city or
county' s concerted revitalization efforts. The City has created Urban Villages to help promote central city revitalization. They are districts which are
more compact, contain a greater mix of land uses, and give greater emphasis to pedestrian and transit access. The City has created 12 Tax
Increment Financing zones (TIFs) as authorized by the Texas Tax Code. TIFs allow local governments to publicly finance needed structural
improvements and enhanced infrastructure within defined areas. The City's Neighborhood Empowerment Zones (NEZs) were created to promote
affordable housing and economic development in the designated zone. Four NEZs have adopted Strategic Plans for certain distinct areas located
in the larger NEZ to guide the rebuilding of neighborhoods with compatible quality infill housing and appropriate mixed -use development in
commercial areas. The City Council adopted the Cavile Place/Historic Stop Six Transformation Plan in 2014. The City's Transformation Plans are
comprehensive strategies to revitalize specific areas or neighborhoods. All of the City's Urban Villages, TIFs, NEZs, and Transformation Plans are
included in the City's annual Comprehensive Plan as part of its goal of revitalizing central city neighborhoods and commercial districts (2023
Comprehensive Plan, Part II, Chapter 5: Housing, and Part III, Chapter 10: Economic Development). The Cavile Place/Historic Stop Six
Transformation Plan is located in Appendix A of the Comprehensive Plan.
Hughes House 1,I1, Maren Grove, and the Lofts at Redwood are developments located either in an Urban Village, a TIF, a NEZ, a distinct area within
a NEZ with a Strategic Plan, or an area that has an adopted Transformation Plan. Staff determined that these developments will significantly
contribute to the City's ongoing revitalization efforts in each of the Urban Villages, TIFs, NEZs or Transformation Plan areas in which they will be
located since the recommended developments will provide housing for households earning at or below 80 percent of Area Median Income. In
addition, the increased density of this new housing will support the new retail, office and other housing development located or being developed in
each Urban Village, TIF, NEZ, or Transformation Plan area. Staff recommends that the City Council adopt the attached resolutions determining that
Hughes House III, Maren Grove, and the Lofts at Redwood are developments that contribute to the City's concerted revitalization efforts underway
in the Urban Villages, TIFs, NEZs, or Transformation Plan areas in which they are located.
Limitations on Developments With Certain Neiahborhood Risk Factors:
More than 20% HTC Units per Total Households
TDHCA rules state that if a proposed development will be located in a census tract with more than 20 percent HTC units per total households as
established by the five-year American Community Survey, it will be ineligible for HTCs unless the governing body of the jurisdiction votes to
specifically allow it and also submits a resolution to TDHCA stating that the proposed development is consistent with the jurisdiction's federal
obligation to affirmatively further fair housing.
Hughes House III, Georgian Oaks, and the Lofts at Redwood will each be located in a census tract in which more than 20 percent of the total
households are HTC units. Staff recommends that City Council vote to specifically allow these developments and approve the additional
determination that they are consistent with the City's obligation to affirmatively further fair housing.
One -Mile Three Year Rule
Hughes House III and Maren Grove are each located one linear mile or less from developments that serve the same target populations and which
previously received an allocation of HTCs. The governing body of the municipality where the proposed development is to be located must
specifically vote to allow the construction of a new development or the adaptive use of an existing development that is within one linear mile or less
from a development that serves the same target population.
Located in Census Tract above 40 Percent Poverty Rate
TDHCA rules state that if a proposed development will be located in a census tract with a poverty rate above 40 percent, the governing body of the
appropriate jurisdiction must acknowledge the high poverty rate and authorize the development to move forward with its application for HTCs.
Hughes House III will be located in a census tract with a poverty rate above 40 percent. Staff recommends that City Council vote to acknowledge
the high poverty rate and authorize this development to move forward with an HTC application.
Other Considerations
All of the proposed developments recommended for a resolution are subject to all applicable City laws, ordinances, policies and procedures
including those pertaining to zoning changes and annexation. Council member support for purposes of approving these resolutions does not
constitute approval of any required zoning change or annexation.
The proposed developments are located in COUNCIL DISTRICTS 4, 5, 6, 8, 9, and 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. While
no current year impact is anticipated from this action, any effect on expenditures and revenues will be budgeted in future Fiscal Years.
Submitted for Citv Manager's Office bv: Fernando Costa 6122
Originating Business Unit Head: Victor Turner 8187
Amy Connolly 7556
Additional Information Contact: Chad LaRoque 2661
Expedited