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HomeMy WebLinkAboutFWHFC-2025-24 - Fort Worth Housing Finance Corporation (FWHFC) - Resolution RESOLUTION NO. FWHFC-2025-24 FORT WORTH HOUSING FINANCE CORPORATION A RESOLUTION AUTHORIZING A LOAN IN AN AMOUNT NOT TO EXCEED $2,000,000 TO TERRELL HOMES, LTD. TO PAY OFF THE FIRST MORTGAGE LOAN BALANCE RELATING TO TERRELL HOMES 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 residents; WHEREAS the City Council created the Fort Worth Housing Finance Corporation the � tY g � ( "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, in 2010,NRP Development, RBC Investments, and the Corporation formed Terrell Homes, Ltd. ("Partnership") to construct and manage the Terrell Homes Development ("Terrell Homes"), an affordable 54-unit single-family rental housing project located within the Historic Southside Neighborhood in the City; WHEREAS, the Development was financed with equity from 9% Housing Tax Credits syndicated by RBC Investments, a first mortgage note provided by Comerica Bank, and a second mortgage note provided by the City through its HOME Investment Partnership funding; WHEREAS,the interest rate of the Comerica Bank first mortgage is 7%; WHEREAS, the Corporation is the sole member of Terrell Homes GP, LLC, the general partner of Terrell Homes, Ltd., responsible for the daily operations and financial health of the Development; WHEREAS, it is in the best interest of the Corporation to pay the balance owed on the first mortgage note to relieve the Partnership of its interest obligations to Comerica Bank; WHEREAS,the Board of the Corporation(the"Board")is being asked to approve a loan in an amount not to exceed $2,000,000.00 to Terrell Homes, Ltd. or an affiliate in order to pay Comerica Bank, or its successor/assignee,the existing balance of the first mortgage loan; NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE FORT WORTH HOUSING FINANCE CORPORATION: 1. THAT the Board authorizes the execution and delivery of a loan agreement (the "Loan Agreement") and all other necessary loan documents to provide funding to pay off the first RESOLUTION NO. FWHFC-2025-24 PAGE 2 mortgage loan balance, including principal, interest, prepayment fees, and other pay off related expenses,relating to the Development(collectively the "Loan Documents") on the terms listed in Attachment A by and between the Corporation and Terrell Homes,Ltd., or an affiliate, in an amount not to exceed $2,000,000.00, subject to the availability of funds,to support Terrell Homes . 2. THAT Dana Burghdoff, General Manager of the Corporation, or Kacey Thomas,Assistant General Manager of the Corporation, or their duly appointed successors, are each authorized to execute and deliver the Loan Documents for and on behalf of the Corporation along with any related documents or agreements necessary to support the ongoing operations of Terrell Homes. This authorization includes the ability to make modifications and amendments so long as they are within the scope of the project, and in conformance with the goals and purposes of the Corporation, as may be amended from time to time. 3. THAT this Resolution takes effect from the date of its adoption. AND IT IS SO RESOLVED. Adopted November 18, 2025 FORT WORTH HOUSING FINANCE CORPORATION By: Elizabeth Beck President Attest: A0=1:pn co Jannette S. Goodall RESOLUTION NO. FWHFC-2025-24 PAGE 3 ATTACHMENT A Loan Terms Lender: Fort Worth Housing Finance Corporation Borrower: Terrell Homes Ltd., or an Affiliate Project: Terrell Homes Location: 54 Single-family rental housing units located in the Historic Southside Loan Amount: Not to exceed $2,000,000.00 Interest Rate: To be determined Origination Fee: None Amortization: None, repaid through operating income as distributed by the terms in the limited partnership agreement for Terrell Homes, Ltd. Loan Term: Begins on date loan documents are executed. Lien Priority: This loan will replace the first lien. Payments: Repayment shall be made at sale or disposition of property. Recourse: Non-recourse as to Borrower Other Conditions: (If Applicable) i i