HomeMy WebLinkAboutIR 24-1851INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 24-1851
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To the Mayor and Members of the City Council
June 4, 2024
Page 1 of 2
SUBJECT: ADOPTION OF NEW NEIGHBORHOOD EMPOWERMENT ZONES
The purpose of this Informal Report is to provide information about an upcoming Mayor & Council
Communication (M&C), scheduled to appear on the June 11 City Council agenda, which would
adopt new Neighborhood Empowerment Zone (NEZ) areas.
In 2018, the City Council directed Neighborhood Services staff to conduct a comprehensive study
of the NEZ program to determine the feasibility of maintaining, modifying or eliminating certain
NEZ areas within the City. Throughout the year several meetings were held with various
community stakeholders to receive input on the NEZ program. Multiple reports on the study and
stakeholder input were presented to the City Council. In January 2019 the City Council adopted
amendments to the NEZ Program Basic Incentives and Tax Abatement policy, the NEZ Program
Administrative Procedures, and the NEZ Program Policy Statement.
These amendments included reviewing NEZ areas every 5 years to coincide with the renewal of
the Neighborhood Empowerment Reinvestment Zones (NERZ) and re-establishing eligibility
criteria to create and terminate NEZ areas. The criteria for the creation of a new NEZ area shall
meet the following guidelines:
• Be 100% Community Development Block Grant (CDBG) eligible;
• Be bounded by clearly defined boundaries (streets, railroads, creeks or other logical boundaries);
• May encompass an existing neighborhood or several neighborhoods;
• Have a concentration of population at or below poverty level;
• Have a low median household income and per capita income;
• Contain a predominance of substandard homes/aged housing stock;
• Have a higher than average vacancy rate;
• Have a higher than average rate of crimes against persons or property;
• Have low commercial permit values;
• May contain areas targeted for revitalization
• Promotes the creation of affordable housing in the zone;
• Promotes an increase in economic development in the zone;
• Promotes an increase in the quality of social services, education, or public safety provided to
residents in the zone;
• Promotes the rehabilitation of affordable housing in the zone;
• Meets the criteria for a reinvestment zone;
NEZ areas One through Six expired on January 29, 2024, which was the end of the five years.
New NEZ area maps are attached which follow the guidelines adopted in 2019.
Only areas no longer CDBG eligible were removed. Additional neighborhood areas now CDBG
eligible were added to the original Six NEZ areas and two new NEZ areas were added that
encompass the City's Revitalization Target Areas.
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 24-1851
To the Mayor and Members of the City Council
June 4, 2024
Page 2 of 2
SUBJECT: ADOPTION OF NEW NEIGHBORHOOD EMPOWERMENT ZONES
City staff conducted a Public Hearing on May 13, 2024, to provide information to the public on the
proposed NEZ areas and to receive comments.
The proposed NEZ areas have 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 the areas at its meetings in April and May 2024.
One of the incentives a municipality can provide in a NEZ, in accordance with Chapter 378,
Texas Local Government Code, is an abatement of municipal property taxes for properties in
a NEZ. In order to grant a tax abatement, the NEZ area would need to be designated as a
reinvestment zone in accordance with Chapter 312 of the Texas Tax Code.
Any NEZ certifications granted before the expiration of the NEZ areas will be good for five years
from the certification date. Any tax abatement awarded before the expiration of the NEZ areas
shall carry its full term according to its tax abatement agreement approved by the City Council.
If you should have any questions about this proposal, please contact Sarah Odle, Neighborhood
Development Coordinator, at 817-392-7316.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS
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