HomeMy WebLinkAboutResolution Fort Worth Housing Finance Corporation (FWHFC) FWHFC-2024-13RESOLUTION NO. FWHFC-2024-13
FORT WORTH HOUSING FINANCE CORPORATION
A RESOLUTION
AUTHORIZING THE CORPORATION OR AN AFFILIATE TOACT AS GENERAL
CONTRACTOR OR PARTICIPATE IN A JOINT VENTURE FOR THE DEVELPMENT
OF PALLADIUM E LANCASTER APARTMENTS LOCATED AT 4909 & 5003 E
LANCASTER AVE AND 4900 & 4808 NORMA ST
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, low 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, the Corporation seeks to promote neighborhood revitalization and foster the
development of affordable quality housing throughout the City by developing partnerships among
the City, the Corporation, local governments, lenders, private industry and neighborhood -based
nonprofit housing organizations;
WHEREAS, Palladium USA, Inc. ("Palladium"), a Delaware corporation, is a developer
of affordable housing and has developed over 25 affordable and mixed income multifamily
properties in Texas;
WHEREAS, the Board of the Corporation (the "Board"), by separate resolution, has been
asked to approve an agreement with Palladium to develop the Palladium E Lancaster Apartments,
an approximately 243-unit multifamily housing development to be located at 4909 & 5003 E
Lancaster Ave and 4900 & 4808 Norma St (the "Project");
WHEREAS, the Board, by separate resolution, has been asked to authorize the hiring of
John C. Shackelford, Shackelford, Bowen, McKinley & Norton, LLP, as legal counsel to assist the
Corporation and a Corporation owned entity with the negotiation of terms and to assist with
Housing Tax Credit and multifamily housing revenue bond applications for the Project and the
documents necessary for the development, financing, construction and management of Palladium
E Lancaster;
WHEREAS, Palladium will apply for 2023 Non -Competitive (4%) Housing Tax Credits
from the Texas Department of Housing and Community Affairs ("TDHCA") and has already
applied for multifamily revenue bonds from the Texas Department of Housing and Community
Affairs ("TDHCA") to finance a portion of the costs of the Project;
RESOLUTION NO. FWHFC-2024-13
PAGE 2
WHEREAS, the Corporation has been asked to participate in the Project and ratify the
formation of PFW E Lancaster Avenue GP, LLC, a Texas limited liability company (the "GP"), a
single purpose entity majority owned by the Corporation serving as general partner of Palladium
E Lancaster Avenue, Ltd., a Texas limited partnership (the "Partnership"), that will own the
Project;
WHEREAS, the Corporation has also been asked to approve various actions relating to
the creation and operation of the GP, the Partnership, and other actions necessary for the
development of the Project;
WHEREAS, Palladium has requested that the Corporation, which shall for all purposes of
this resolution include the Corporation or a duly created affiliate, serve as the Project's general
contractor or participate in a joint venture arrangement, in order to take advantage of the state sales
tax exemption available to the Corporation to assist the Project, and agrees to enter into a
construction contract and any other agreements needed to benefit the Project;
WHEREAS, the agreements will ensure that the Corporation will be indemnified and held
harmless for any acts or omissions of any other party involved in the development of the Project,
including any master subcontractors, joint ventures, or subcontractors, and for any acts or
omissions of the Corporation except for the Corporation's own gross negligence and intentional
acts;
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE FORT WORTH HOUSING FINANCE CORPORATION:
1. THAT the Board authorizes the Corporation to act as General Contractor or participate in
a Joint Venture for the Project, and authorizes the execution and delivery of all necessary
agreements for the Project with the limitation discussed herein.
2. THAT Fernando Costa, General Manager of the Corporation, or any duly authorized
Assistant General Manager or Interim Assistant General Manager of the Corporation, or
their duly appointed successors, are each authorized to execute and deliver all necessary
agreements for and on behalf of the Corporation along with any related documents
necessary to effect this resolution, and each is authorized to extend, modify and amend
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 amended from time to time.
THAT this Resolution takes effect from the date of its adoption.
RESOLUTION NO. FWHFC-2024-13
PAGE 3
AND IT IS SO RESOLVED.
Adopted May 21, 2024
FORT WORTH HOUSING FINANCE CORPORATION
B�:
Carlos Flores
President
Attest:
Jannette S. Goodall