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HomeMy WebLinkAbout025068 - Construction-Related - Contract - Fort Worth ISDCITY CONTRACTENO Y a �O8 INTERLOCAL AGREEMENT This INTERLOCAL AGREEMENT (this Agreement) is made and entered into by and between the following government entities: The CITY OF FORT WORTH, TEXAS, a home -rule municipal corporation, (hereafter called "CITY"); and The FORT WORTH INDEPENDENT SCHOOL DISTRICT, a political subdivision of the State of Texas, (hereafter called "SCHOOL DISTRICT") RECITALS 1. This Agreement is made under the authority granted to CITY and the SCHOOL DISTRICT by and pursuant to Texas Government Code Chapter 791, known as the 1NTERLOCAL COOPERATION ACT. 2. By its adoption of M&C G-12284 and Ordinance No.13533 ("the Ordinance") on July 28, 1998, the City Council of the CITY established a procedure to convey tax - foreclosed property to eligible housing nonprofit organizations for the development of low income housing pursuant to Section 34.015 of the Texas Property Tax Code. A copy of the Ordinance is attached as Exhibit "A" and incorporated for all purposes. The Ordinance has been reviewed by the staff at the SCHOOL DISTRICT and has been presented to its board for approval. 3. By its adoption of M&C G-12284, the City Council of CITY has also authorized this Agreement with SCHOOL DISTRICT to obtain SCHOOL DISTRICT's consent to the conveyance method stated in the Ordinance and to be designated as the signatory on behalf of SCHOOL DISTRICT to execute Tax Resale Deeds in the conveyance under the Ordinance. A 1�UM i©©1 c� U c c r L JJ copy of the proposed Tax Resale Deed is attached as Exhibit "B" and incorporated for all purposes. 4. The SCHOOL DISTRICT's Board of Directors has approved this Agreement at its meeting of October 13 , 1998. NOW THEREFORE, in consideration of the mutual covenants herein expressed, the parties agree as follows: AGREEMENT 1. SCHOOL DISTRICT hereby approves and consents to the method of property conveyance as stated in the Ordinance. 2. SCHOOL DISTRICT further designates and authorizes the City Manager or any Assistant City Manager of the CITY to execute Tax Resale Deeds to be used in property conveyance pursuant to the Ordinance on behalf of SCHOOL DISTRICT. 3. This Agreement has been duly authorized by the governing bodies of the CITY and SCHOOL DISTRICT. 4. This Agreement, and the authority granted herein, shall continue in effect until terminated by notice in writing from one party to the other at least thirty (30) days prior to the effective termination date. 2 EXECUTED this l3thday of October , 1998. CITY OF FORT WORTH FORT WORTH INDEPENDENT SCHOOL DISTRICT 1000 Throckmorton Street 100 North University Drive Fort Worth, Texas 76102 Fort Worth, Texas 76107 By: Lt Assiatant qty Manager Gary . Manny President Title: FWISD Board of Education ATTEST• By: Gloria Pears n City Secretary APPROVED AS TO FORM AND LEGALITY: Assistant City Attorney c--/ A� Contract Authorization Date ATTEST: By: Y Pearle Sapp FWISD Board Secretary ORDINANCE NO. /. -3_c3 3 AN ORDINANCE AMENDING THE CODE OF THE CITY OF FORT WORTH (1986) AS AMENDED, BY THE ADDITION OF SECTION 2-13 PRESCRIBING PROCEDURES FOR THE. CONVEYANCE OF TAX FORECLOSURE PROPERTY TO ELIGIBLE HOUSING NONPROFIT ORGANIZATIONS FOR THE DEVELOPMENT OF HOUSING FOR LOW INCOME HOUSEHOLDS PURSUANT TO SECTION 34.015 OF THE TEXAS PROPERTY TAX CODE; PROVIDING THAT THIS ORDINANCE SHALL BE CUMULATIVE OF OTHER ORDINANCES; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE WHEREAS, Section 34.015 of the Texas Property Tax Code allows the governing body of a municipality to provide for the manner in which land acquired by the municipality following the foreclosure of a tax lien in favor of the municipality may be sold to eligible nonprofit organizations to develop housing for low income individuals and families; and WHEREAS, the City Council desires to implement such procedure by adoption of this ordinance; and WHEREAS, the objectives of implementing these procedures are to: 1. provide greater opportunities for decent, affordable housing to low income individuals and households; 2. revitalize existing neighborhoods by building homes on vacant lots and rehabilitating deteriorated or vacant homes; and 3. generate revenues by returning these properties to the tax rolls. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: 1 SECTION 1. Chapter 2 of the Code of the City of Fort Worth (1986), as amended, is amended by adding a new Section 2-13 to read as follows: 2-13. Conveyance of tax foreclosure property to eligible housing nonprofit organizations for the development of low income housing. (a) Definitions. - 1. Eligible property. Real property obtained by the City • following the foreclosure of a tax lien in favor of the City and other taxing entities that is capable of being developed for low income housing. 2. Eligible housing nonprofit organization. A current and active nonprofit organization which meets the following requirements: (A) (1) a nonprofit corporation described by 26 U.S.C. Sec. 501(c)(3) that: i. has been incorporated in the state of Texas for at least one year; ii. has a corporate purpose to develop affordable housing that is stated in its articles of incorporation, bylaws or charter; and iii. has at least one-fourth of its board of directors residing in Fort Worth; and iv. engages primarily in the building, repair, rental or sale of housing for low income individuals and families ("low income households"); or (2) a nonprofit organization that develops housing for low income households as a primary activity to promote community -based neighborhood revitalization in the City of Fort Worth; and 2 (B) has a satisfactory record in leasing, acquiring, building or rehabilitating residential property and selling the property to low income households for the two years immediately preceding the application; and (C) demonstrates financial and management capacity to 'complete projects on the property after acquisition; and (D) has the capability, upon conveyance of the property, to obtain insurance to cover liabilities that may arise out of holding and developing the property; and (B) has a designated person authorized by its board of directors as signatory on behalf of the organization. 3. Housing development as a primary activity. A nonprofit organization is considered to develop housing for low income households as a "primary activity" or "engaged primarily" in housing development activities for low income households if it: (A) has as a corporate purpose of developing and managing affordable housing for low income households as stated in its articles of incorporation or bylaws; and (B) more than 50% of its budget or actual expenditures is related to housing development activities for low income households; or (C) has a comprehensive or strategic revitalization or redevelopment plan which is approved, recognized, or acknowledged by the City and includes the provision of housing development activities for low income households as a major strategy. 4. Low income households. Individuals and/or families whose annual incomes do not exceed 80% of the median income for the area with adjustments for family size, as determined and updated by the U.S. Department of Housing and Urban Development ("HUD"). 3 5. Affordable housing. Housing is considered affordable if the monthly housing cost does not exceed 30% of the household's monthly gross income. For homebuyers, housing cost includes the payment of principal, interest, taxes, and insurance. For renters, it means the amount of rent paid, not to exceed the Fair Market Rent for comparable units in the area as determined by HUD. For multi -family projects, at least twenty percent of the units should be affordable to low income households. 6. Tax resale deed without warranty. The legal instrument used by the City to transfer its interest and that of all the other taxing entities in the property to an eligible housing nonprofit organization pursuant to this ordinance. 7. Tax appraisal value. The value of a specific parcel of property as determined by the Tarrant Appraisal District as of January 1 of the year the property is conveyed to an eligible housing nonprofit organization or by an independent certified appraiser. 8. Costs and expenses. Costs and expenses shall mean the costs and expenses as provided in Sections 34.02 and 34.06 of the Texas Property Tax code. 9. Application fee. a non-refundable $100.00 fee charged by the City to process the application of an eligible housing nonprofit organization for the conveyance of tax foreclosure property in accordance with this ordinance. (b) Method of sale. 1. The City may sell eligible property to an eligible housing nonprofit organization for the development of low income housing for an amount that is less than the lesser of (A) the market value specified in the judgment of foreclosure, or (B) the total amount of judgments against the property; 4 2. In general, the property shall be transferred to an eligible housing nonprofit organization for an amount equal to 20% of the tax appraisal value of the property plus costs and expenses. Provided, the Real Property Management Division of the Engineering Department may in extraordinary circumstances recommend a higher or lower purchase price, but in no case shall the property be conveyed for less than the total of the costs and expenses incurred on the property. 3. All conveyance shall be approved by the City Council. (c) Application fee. The City shall charge an application fee for the processing of each application for the conveyance of eligible property. (d) Procedure of sale. The Real Property Management Division of the Engineering Department and the Housing Department may develop procedures to implement this ordinance. SECTION 2. This ordinance shall be cumulative of all provisions of ordinances and of the Code of the City of Fort Worth, Texas (1986), as amended, except where the provisions of this ordinance are in direct conflict with the provisions of such ordinances and such Code, in which event conflicting provisions of such ordinances and such Code are hereby repealed. SECTION 3. It is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses and phrases of this ordinance are severable, and, if any phrase, clause, sentence, paragraph or section of this ordinance shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this ordinance, since the same would have been enacted by the City Council without the incorporation in this ordinance of any such unconstitutional phrase, clause, sentence, paragraph or section. SECTION 4. This ordinance shall take effect and be in full force and effect from and after its passage, and it is so ordained. APPROVED AS TO FORM AND LEGALITY: Assistant City Attoriy DATE: 7 l a 1 oI- ADOPTED: 2-- EFFECTIVE: -9 - `l%J PROCEDURE FOR THE CONVEYANCE OF TAX FORECLOSURE PROPERTY TO ELIGIBLE HOUSING NONPROFIT ORGANIZATIONS FOR THE DEVELOPMENT OF LOW INCOME HOUSING PURSUANT TO ORDINANCE NO. 13533 The following procedures shall be used for transferring eligible tax foreclosure property to eligible nonprofit organizations pursuant to Ordinance No.13533 ("the Ordinance"): 1. The Real Property Management (RPM) division of the Engineering Department shall provide the following City Departments with a written notice which includes a list of tax foreclosure properties being requested by eligible housing nonprofit organizations: Development, Environmental Management, Housing, Parks and Community Services, Transportation/Public Works, and Water Departments. These departments will be contacted to determine if a particular property should be retained by the City of Fort Worth for any reason (e.g., easements, right of way, park land, housing programs). The City Departments shall have sixty (60) days from the date of the notice, with the option to extend for another 30 days, to request that the City retain the property. RPM shall also provide all other local taxing entities with the same list and allow them thirty (30) days from the date of the notice to decide whether they need a specific piece of property for their projects. If RPM or the Housinj Department receives a request from a City department or a taxing entity, the subject! property may be released from the available list for conveyance under this ordinance until such time it is no longer needed by the City or another taxing entity. 2. Applications from nonprofit organizations for housing initiatives including the i conveyance of City tax foreclosure property under the Ordinance shall be made to the 1 Housing Department. A nonprofit organization shall pay the City a $100 (non- refundable) Application Fee for each property requested. The application shall include the location and description of the property being requested, the organization's development plans (including specifications, estimated cost, and sales price) for the property, and the estimated time line in the marketing and sale of the property. 3. The Housing Department shall determine and certify the eligibility of a non-profit organization to acquire City tax foreclosure property under this ordinance.' Thereafter, the Housing Department shall forward qualified applications to RPM. 4. RPM shall review the application to verify availability of property and the applicable tax foreclosure judgment and market value of the property, and determine the amount for which a piece of property may be conveyed. In general, the property shall be transferred to the eligible housing nonprofit organization for an amount equal to 20% of the fair market value of the property as defined in the Ordinance plus costs and expenses. Provided, RPM may in extraordinary circumstances recommend a higher or lower price, but in no case shall the property be conveyed for less than the total of the costs and expenses incurred on the property. The Tax Resale Deed Without Warranty shall include the following statement: "This quit claim is made subject to, and grantee acknowledges, the right of redemption as provided in Sections 34.05 and 34.21 of the Texas Property Tax Code, V.T.C.A.". 5. RPM shall notify the Code Enforcement Division of the City Services Department to hold in abeyance any scheduled demolition of structure on the subject property. 6. RPM shall obtain City Council's prior approval of the conveyance of the property and the terms of conveyance. 2 7. It is the responsibility of the recipient organization to select the title company, provide any required closing documents, pay all costs associated with closing and arrange for the closing on the property. 8. RPM shall furnish information to the Housing Department on each property conveyed under this ordinance, including the name of the organization, property description, tax appraisal value of the property, taxes, fees and other amounts paid by the organization for the property. 9. Immediately following the date of closing, the recipient organization shall be responsible for all maintenance of the acquired property. The organization shall also start construction or rehabilitation of the property according to its approved plans and in compliance with the Housing Quality Standards set forth in 24 CFR 882.109, other applicable federal, state and local laws and regulations as well as City Codes and ordinances. Following completion of construction or rehabilitation, the property must be sold, leased, or used by the nonprofit organization for affordable housing for low income households. The recipient organization shall ensure that the property is used for affordable housing for low income households for a period of at least five (5) years from the date of its conveyance to a qualified homebuyer or issuance of certificate of occupancy. 10. The Housing Department shall ' monitor housing development activities in accordance with the terms set forth in the Ordinance and in this procedure. Any violation by a housing nonprofit organization of the terms of the Ordinance and the procedure shall constitute grounds for rejection of any future application by the organization to acquire property under the Ordinance, at the discretion of the City. 3 11. The terms and definitions used in the procedure shall be the same as defined in the Ordinance. 12. The terms of the procedure may be amended from time to time by RPM and Housing Department to ensure compliance with applicable laws and the Ordinance. ADOPTED: (Date) Director, Engineering DepartmentHousing Department 4