HomeMy WebLinkAboutResolution 5900-02-2024A Resolution
NO. 5900-02-2024
SUPPORTING A HOUSING TAX CREDIT APPLICATION FOR MAREN GROVE, COMMITTING
DEVELOPMENT FUNDING, DETERMINING THAT MAREN GROCE CONTRIBUTES TO THE
CITY'S CONCERTED REVITALIZATION EFFORTS IN NEIGHBORHOOD EMPOWERMENT
ZONE (NEZ) AREA SIX, AND ACKNOWLEDGING THAT MAREN GROVE IS LOCATED ONE
LINEAR MILE OR LESS FROM A DEVELOPMENT THAT SERVES THE SAME TARGET
POPULATION
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, Maren Grove, LLC, an affiliate of O-SDA Industries, LLC, has proposed a development for
mixed -income affordable multifamily rental housing named Maren Grove to be located at 801 West Shaw Street in
the City of Fort Worth;
WHEREAS, Maren Grove, LLC 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
Maren Grove, a rehabilitation of an existing historic apartment building, including newly constructed units, for a total
of approximately 89 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 as "contributing to the concerted revitalization efforts" of the municipality;
WHEREAS, the City created Neighborhood Empowerment Zones (NEZ) beginning in 2001 in accordance
with Chapter 378 of the Texas Local Government Code in order to promote affordable housing and economic
development in the designated zones. The City consolidated its twenty NEZ areas into six NEZ areas in January
2019 (M&C G-19469). (2023 Comprehensive Plan, Part V, Chapter 23: Financial Incentives);
WHEREAS, Maren Grove is located in NEZ Area Six;
WHEREAS, the City has determined that the application for Maren Grove to be submitted to TDHCA by
Maren Grove, LLC qualifies as a development contributing to the concerted revitalization efforts of the City in
NEZ Area Six; and
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 that serves the same target population as the proposed development and has received
an allocation Housing Tax Credits, or private activity bonds, or supplemental allocation of credits for new construction.
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
Maren Grove, LLC to the Texas Department of Housing and Community Affairs for 2024 Competitive (9%) Housing
Tax Credits for the purpose of the development of Maren Grove to be located 801 West Shaw Street (TDHCA
Application No. 24148), 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, additionally confirms that Maren Grove 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 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 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 Maren Grove (TDHCA Application
No. 24148) as a development in the 2024 Competitive (9%) Housing Tax Credit Application round that contributes
to the concerted revitalization efforts of the City in NEZ Area Six, and that this formal action has been taken to put
this on record and confirm that NEZ Area Six is current.
The City of Fort Worth, acting through its City Council, acknowledges that Maren Grove is located one (1)
linear mile or less from a development that serves the same target population as the proposed Maren Grove 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 and to authorize an allocation of Housing Tax Credits for Maren Grove.
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, Maren Grove, LLC.
Adopted this 13th day of February, 2024.
ATTEST:
By:
Jannette S. Goodall, City Secretary
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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 III, 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 Brompton 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 Development 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 11, 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 III, 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 City Manager's Office by. Fernando Costa 6122
Originating Business Unit Head: Victor Turner 8187
Amy Connolly 7556
Additional Information Contact: Chad LaRoque 2661
Expedited