HomeMy WebLinkAboutOrdinance 27026-06-2024ORDINANCE NO.27026-06-2024
AN ORDINANCE DESIGNATING THE FORT WORTH COMMUNITY
LAND TRUST AS A COMMUNITY LAND TRUST TO OPERATE WITHIN
THE CITY PURSUANT TO SECTION 373B.002 OF THE TEXAS LOCAL
GOVERNMENT CODE AND ADOPTING AN EXEMPTION TO
TAXATION PURSUANT TO SECTION 11.1827 OF THE TEXAS TAX
CODE
WHEREAS, the City Council of the City of Fort Worth ("City") has adopted development
and revitalization of the City's neighborhoods and affordable housing stock as a strategic goal, and
City residents and the City Council have determined that quality accessible affordable housing is
needed for moderate, Iow and very low-income City residents;
WHEREAS, the City Council created the Fort Worth Housing Finance Corporation (the
"Corporation") in 1979 pursuant to the Texas Housing Finance Corporations Act, Chapter 394 of
the Texas Local Government Code, to facilitate neighborhood revitalization and housing initiatives
in the City, including but not limited to issuing tax exempt bonds; developing, rehabilitating and
promoting housing; and assisting low to moderate income City residents in acquiring quality,
accessible, affordable housing through lending and construction activities;
WHEREAS, Community Land Trusts ("CLT") are being formed across the country and
make it possible for limited -income households to own homes on land that is leased from the CLT
through long-term (typically 99-year), renewable ground leases;
WHEREAS, the Fort Worth Community Land Trust ("FWCLT") was incorporated in
2023 as the first CLT in the City with a mission of ensuring permanent stewardship of land for
community benefit and the perpetual preservation of affordable homes located on that land;
WHEREAS, the City and Corporation worked closely with the FWCLT to ensure the
success of forming the City's first CLT;
WHEREAS, the Corporation contributed $3,700,000 in the form of a forgivable loan
toward acquisition costs for the FWCLT's initial purchase of real property and improvements from
Southwestern Baptist Theological Seminary (the "Seminary Property");
WHEREAS, the real property and improvements at the Seminary Property have generally
been exempt from taxation during the period the Seminary owned them;
WHEREAS, under Section 11.1827 of the Texas Tax Code, a community land trust
designated under Section 373B.002 of the Texas Local Government Code may be entitled to an
exemption from taxation by a taxing unit of land owned by the trust, together with the housing
units owned by the trust and located on the land if certain criteria are met, including that the
exemption is adopted before July 1;
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WHEREAS, when a community land trust sells improvements to a private individual,
those improvements would be subject to taxation but the trust's ownership stake in the land would
remain exempt;
WHEREAS, it is the desire of the Fort Worth City Council to designate the FWCLT as a
community land trust to operate within the City pursuant to Section 373B.002 of the Texas Local
Government Code and to adopt any tax exemption for which the FWCLT is entitled, including
pursuant to Texas Tax Code Section 11.1827.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF FORT WORTH, TEXAS THAT:
I. The Fort Worth City Council hereby designates the Fort Worth Community Land
Trust as a community land trust to operate within the City of Fort Worth pursuant to Section
373B.002 of the Texas Local Government Code.
2. In accordance with Texas Tax Code Section 11.1827, a community land trust that
has been designated by the City Council to operate within the City of Fort Worth under Section
373B.002 of the Texas Local Government shall have exempted from taxation the following
property: Iand owned by the trust, together with the housing units located on the land if the units
are owned by the trust, in accordance with Texas Tax Code Section 11.1827. This exemption shall
be subject to all applicable requirements of Section 11.1827 and other provisions of the Texas Tax
Code.
2. Today's actions apply only to City property taxes and not to taxes owing to other
taxing units.
3. ShouId any part, portion, section, or part of a section of this ordinance be declared
invalid or inoperative or void for any reason by a court of competent jurisdiction, such decision,
opinion, or judgment shall in no way affect the remaining portions, parts, sections, or parts of
sections of this ordinance, which provision shall be, remain, and continue to be in full force and
effect.
4. This ordinance shall take effect upon its passage and will apply upon appropriate
action by the Texas Comptroller of Public Accounts.
APPROVED AS TO FORM AND CITY SECRETARY:
LEGALITY:
.ra s Gaza te:57 cfl
Leslie L. Hunt Jannette S. GoodaIl
Senior Assistant City Attorney City Secretary
Adopted and Effective: June 25, 2024
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