HomeMy WebLinkAboutIR 7558 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7558
October 8, 1991
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To the Mayor and Members of the City Council
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Subject:
'Rental Rehabilitation Loan PrEgg-ro and Other Pro rams
Addressing vacant RunmaT-V—roperties in Fort WortR
During a budget workshop in August, Councilwoman Webber raised the questions, "What
is the present inventory of rental property in the City?" , and "How is the Rental
Rehabilitation Program addressing the rental inventory?".
According to information from the 1990 U.S. Census data, there are 194,429 housing
units located in Fort Worth. Of these, 91,755 are owner-occupied, 76,519 are
renter-occupied, and the remaining 26,155 units are vacant.
Many of the vacant units were used as rental properties, both single and multi-
family, and are substandard to some degree. Maintenance of vacant rental units is
complicated by the fact that with many of these properties the titles are held by
institutions, both public and private, as a result of foreclosures.
During the period of August 1, 1990 - July 31, 1991, the City's Rental
Rehabilitation Loan Program provided low-interest financing to qualified owners
allowing for the complete rehabilitation of 161 rental units. The average total
rehabilitation cost was $15,573 per unit, with an average Rental Rehabilitation
Program loan to the property owner of $7,625. A total of $2,507,337 in public and
private funds was expended on the rehabilitation projects completed during this
period.
In order to reduce the number of substandard rental properties in Fort Worth both
vacant and occupied, the following programs are being actively pursued:
Fort Worth Public Housing Authority:
Currently, the Fort Worth Public Housing Authority is in the process of purchasing
82 single-family rental units in the Polytechnic Heights area. This will mark the
first such program where the Housing Authority has operated detached, single-family
rental units as part of their rental housing inventory.
Enterprise Foundation:
The Tarrant County Housing Partnership, recently created by the Enterprise
Foundation, will spin-off a non-profit agency specializing in rental property
development and management. The agency will focus on the purchase of properties
with the intent of rehabilitating them and providing the completed units for rent
at below Fair Market Rates (FMR) to -income-qualified applicants. At least 800 of
the units will be rented to tenants whose incomes are at or below 50% of the area
median income. The remaining units will be rented to tenants whose incomes are
between 51% and 80%, of the area median.
It is anticipated the program will focus on acquiring blocks of substandard/vacant
properties to have maximum neighborhood impact but the new agency will Also do
scattered purchasing to minimize rental ratios in areas where vacant units are not
the norm. Rehabilitation costs will be kept minimal by the use of bulk purchasing
of materials whenever possible and will utilize low-interest City of Fort Worth
Rental Rehabilitation Program loans.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No.7558
October 8, 1991
Page 2 of 2
g to P'- To the Mayor and Members of the City Council
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1873 Subject: Rental Rehabilitation Loan Program and Other Pro rams
Addressing Vacant Rental Properties in Fort WortR
Fort Worth Rental Rehabilitation Program:
The program currently has $1,000,000 available for low-interest loans to be used for
the rehabilitation of substandard rental property in designated target areas. In
addition, another $500,000 is reserved for projects originating through the Tarrant
County Housing Partnership working in the residential rental market.
The city uses several methods to advertise the Rental Rehabilitation Loan Program,
including:
- Notification of program benefits to local investors through mailings;
- Referral of property owners of substandard properties by Code
Enforcement personnel;
- Contact of owners of rental property in Target Areas which appear to be
in need of rehabilitation;
- Development and distribution of Rental Rehabilitation Loan Program
pamphlets to investors and purchasers of foreclosed housing stock
through HUD and RTC offices; and
- Distribution of pamphlets with local lending institutions who are
contacted regarding property improvement loans for rental property.
Due to the relatively small amount of public dollars available, it is critical we
continue to strengthen the public-private partnership to address the large number
of substandard rental properties currently in Fort Worth. Together, we can work to
provide the resources necessary to repair and make these rental properties available
to low- and moderate-income families at an affordable price.
Please advise me if additional information is required.
Respectfully submitted,
A D kIV 0
�City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS