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HomeMy WebLinkAboutResolution Fort Worth Housing Finance Corporation (FWHFC) FWHFC-2025-14RESOLUTION NO. FWHFC-2025-14 FORT WORTH HOUSING FINANCE CORPORATION A RESOLUTION HIRING OUTSIDE LEGAL COUNSEL TO ADVISE ON MATTERS RELATED TO TAX CREDIT PROPERTIES APPROACHING THE END OF THEIR 15-YEAR TAX CREDIT COMPLIANCE PERIOD WHEREAS, the City Council of the City of Fort Worth (the "City") created the Fort Worth Housing Finance Corporation (the "Corporation") in 1979 pursuant to the Texas Housing Finance Corporation Act to facilitate the development of decent, safe quality, affordable, and accessible housing for low- and moderate -income City residents through lending and construction activities; WHEREAS, the Corporation sometimes acquires an ownership interest ("General Partner") a single -purpose entity ("Partnership"), often a Texas limited partnership or Texas limited liability company, created for the purpose of developing multifamily properties financed with low income housing tax credits ("LIHTC") issued through the Texas Department of Housing and Community Affairs ("TDHCA"); WHEREAS, a Partnership has investors in the ownership structure ("Investors") that has an opportunity to exit the Partnership, toward the conclusion of the Partnership's 15 year tax credit compliance period, by selling Investors' interest to the General Partner ("Change in Ownership"); WHEREAS, Terrell Homes, a project in which the Corporation serves as General Partner, is nearing the end of its 15 year tax credit compliance period; WHEREAS, it is advisable to obtain outside legal counsel with experience and special expertise in complex LIHTC developments to represent the Corporation's interest in connection with a Change in Ownership; and WHEREAS, the Board desires to approve hiring attorney Scott Marks with Duane Morris, LLP, to serve as legal counsel in connection with matters related to a Change in Ownership, including the negotiation of exiting Investors from a Partnership, transferring Corporation owned assets to eligible purchasers, and adhering to compliance requirements imposed by TDHCA, and advising on any other related issues. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE FORT WORTH HOUSING FINANCE CORPORATION: 1. THAT the Board approves the hiring of attorney Scott Marks with Duane Morris, LLP, to serve as legal counsel for the Corporation, in its capacity as General Partner, to advise on matters relating to a Change in Ownership, including the negotiation of exiting the Investors from the Partnerships, transferring Corporation owned assets to eligible purchasers, and adhering to compliance requirements imposed by TDHCA, and any other related issues. RESOLUTION NO. FWHFC-2025-14 PAGE 2 2. THAT the Board approves the payment of attorney's fees in an amount not to exceed $130,000.00 incurred in connection with a Change in Ownership. THAT Dana Burghdoff, General Manager of the Corporation, or any duly authorized Assistant General Manager, or their duly appointed successors, are each authorized to execute and deliver the documentation necessary to engage outside counsel to advise on a Change in Ownership and any other related issues. 4. THAT this resolution takes effect from the date of its adoption. AND IT IS SO RESOLVED. ADOPTED August 26, 2025 FORT WORTH HOUSING FINANCE O TION By: Carlos Flores President Attest: Jannette S. Goodall