HomeMy WebLinkAboutResolution 4303-02-2014 A Resolution
NO. 4303-02-2014
SUPPORTING A HOUSING TAX CREDIT APPLICATION FOR THE ART AT PALLADIUM
VIEW AND APPROVING LOCAL FUNDING
WHEREAS, the City's 2013 Comprehensive Plan is supportive of the preservation,
improvement, and development of quality affordable accessible rental and ownership housing;
WHEREAS, the City's 2013-2018 Consolidated Plan makes the development of quality
affordable accessible rental housing units for low income residents of the City a high priority;
WHEREAS, Zenstar Development, LLC has proposed a development for affordable rental
housing named the Art at Palladium View to be located at Westpoint Boulevard and West Loop 820
South in the City of Fort Worth;
WHEREAS, Zenstar Development, LLC has advised the City that it intends to submit an
application to the Texas Department of Housing and Community Affairs ("TDHCA") for 2014
Competitive 9% Housing Tax Credits for the Art at Palladium View, a new 108-unit complex;
WHEREAS, TD�HCA's 2014 Qualified Allocation Plan (QAP) and Section 2306.6710(b) of the
'Texas Government Code provide that an application for Housing Tax Credits may qualify for up to
seventeen (17) points for a resolution of support from the governing body of the jurisdiction in which
the proposed development site is located; and.
WHEREAS, the QAP also awards up to fourteen (14) points for a commitment of development
funding from the city in which the development site is located.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH, TEXAS:
The City of Fort Worth, acting th-rough its City Council, herby confirms that it supports the
application of Zenstar Development, LLC to the Texas Department of Housing and Community Affairs
for Housing Tax Credits for the purpose of the development of the Art at Palladium View to be located
at the comer of Westpoint Boulevard and West Loop 820 South (Application No. 14233), and that this
formal action has been taken to put on record the opinion expressed by the City Council of the City of
Fort Worth.
The City of Fort Worth, acting th-rough its City Council, confirms that it has conunitted
$1,500,000.00 of its HOME Investment Partnerships Program grant funds to Zenstar Development, LLC
in the form of a permanent loan for a minimum term of fifteen (15) years, minimum amortization period
of thirty (30) years, and an interest rate no higher than three percent (3%) per annum, conditioned upon,
RTWO T
Resolution No.4303-02-2014
among other things, receipt of Housing Tax Credits and satisfactory completion of regulatory
requirements.
Adopted this 18th day of February, 2014.
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City of Fort Worth, Texas
Mayor and Council Communication
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COUNCIL ACTION: on 2118/2014 -:Resolution Nos.:4296-02-2014, 4297-02-20,14, 4298-02-
2014, 4299-02-20114, 4300-02-2014,14301-02-2014, 4302-02-2014, 4303-022014
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DATE: Tuesday, February 18, 2014 REFERENCE NO.: C-26671
LOG NAME: 172014HOUSINGTAXCREDITRESOLUTIONS
SUBJECT:
Adopt Policy on Requests for Resolutions for Applications to the Texas Department of Housing and
Community Affairs for 2014 Competitive 9% Housing Tax Credits, Adopt Resolutions for 2014 Applications
for Multifamily Housing Developments Located at Various Sites Throughout the City, and Approve
Development Funding for Zenstar Development, LLC and Columbia Renaissance Square I, L.P.
(COUNCIL DISTRICTS 2, 3, 4, 7 and 8)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt policy on requests for resolutions for applications to the Texas Department of Housing and
Community Affairs for 2014 Competitive 9% Housing Tax Credits;
2. Acknowledge receipt of requests for support for 2014 Competitive 9% Housing Tax
Credit applications from the Developers listed below;
3. Adopt the attached resolutions for 2014 applications for Competitive 9% Housing Tax
Credits for the multifamily housing developments listed below located at various locations
throughout the City in accordance with the policy; and
4. Approve development funding from City HOME Investment Partnerships Program grant funds
in the amount of$1,500,000.00 to Zenstar Development, LLC and in the amount of$1 ,200,000.00
to Columbia Renaissance Square I, L.P., such funding to be conditioned upon, among other things,
an award of Housing Tax Credits and satisfactory completion of federal requirements.
DISCUSSION:
Resolutions for 9% Housing Tax Credits
The Texas Department of Housing and Community Affairs (TDHCA) uses the scoring criteria set out in its
annual Qualified Allocation Plan (QAP) in evaluating and ranking applications for Competitive 9%Housing
Tax Credit (HTC). TDHCA's 2014 QAP and Section 2306.6710 of the Texas Government Code state that
applications may qualify for up to 17 points if they include a resolution of support from the governing body
of the jurisdiction in which the proposed development site is located. Resolutions that state that the
jurisdiction supports the proposed development are worth maximum points while resolutions stating that
the jurisdiction has no objection to the proposed development are worth fewer points.
Staff recommends the following policy for providing HTC resolutions:
1. In order for an application for development to be eligible to receive a Resolution of Support, the
T ogname: 172014HOtJSfNGTAXCREDITRESOLUTIONS Pagel of 3
deV9|opnl8Oto must have, at nninin0unn, evidence Ofa firm commitment oflocal public funding and
appropriate zoning.
2. AD application for development that does not have evidence Ofa firm commitment of local public
funding and/or does not have appropriate zoning will be eligible to FeC8iv8. at /noat. a Resolution of No
Objection.
Therefore, Staff recommends Council adopt the attached Resolutions Of Support for:
• Avondale Apartments developed by AMTEX Avondale, LP, an affiliate of AMCAL Multi-Housing Inc.,
located at Avondale Haslet Road and Route 287' Fort Worth, Texas (MapaCV 4V. 4Z, 5G. 5VV)
• Columbia at Renaissance Square developed by Cu|Unlhi3 Renaissance Square |' L.P., an affiliate of
New Columbia Residential, LLC' located at 3801 W. G. Daniels Drive' Fort Worth, Texas (K88peCO
78>()
• Sabine Place Apartments (Rehab) developed by Think Housing Development LLC, an affiliate of
A|enaVeOtunas. LLC and Preservation Partners Development Ui LLC' located at 1215 Terminal
RO@d, Fort Worth, Texas /MapsCn48V\
• Art atPalladium View developed byZenst3r Development, LLC' located atVVeStpoint Boulevard and
West Loop 82O South, Fort Worth, Texas /MapsCo72O\
• Heritage Park Vista Phase Two developed by Heritage Park Vista Housing Partners Two, Ltd . an
affiliate DfNuROckAcquisitions, LLC. located 3t8729 Ray White RD@d, Fort Worth, Texas /MapaCo
3OC\
• Churchill at Champions Circle developed by Churchill at Champions Circle Community, LP.. an
affiliate of Churchill Residential, Inc., located at Champions Circle, Fort Worth, Texas /K8apsCo
045T\
Staff recommend that the City Council adopt the attached Resolutions of No Objection for:
• Reserve at Boat Club Road developed byKAV Residential Development LLC. aD affiliate ofMiller-
Valentine Operations Inc., located at Boat Club Road and CrOnOVv8U-W1@dO8. Fort Worth,
Texas /M3pSco40C\
• HorneTovvn8at Pr8aidiO Junction developed by Home TOVVneatPreaidio Junction, LP, an affiliate of
Integrated Housing Solutions, LLC. located at Harmon Road and Pr8sidioVista Drive, Fort Worth,
Texas /MapsCo35A\
HomeTowne at Presidio Junction receive a Resolution of Support instead of a Resolution of No Objection
since the application meets the policy guidelines.
Approve Local Funding
The 2014 QAP also awards points for a cOn0nnitnleDt of development funding by 8 local political
subdivision. Staff presented the results of the Request for Proposals for use Of City H[)K8E Investment
Partnerships Program /H{)K8E\ grant funds for housing developments tothe Housing and Economic
Development Committee on January 7, 2014 and recommended that the City award $1,500,000.00 of
HOME funds to Zenstar Development, LLC for the Art at Pa||3diUnn ViavV. and $1'200.000.00 of H()W1E
funds LO Columbia Renaissance Square |' L.P. for the CO|UOObi8 at Renaissance GqUan8 The City will
provide these HOME funds as permanent loans for a minimum term of 15 years, amortized over a 30-year
period, at an interest rate no higher than three percent per annum, with the loans conditioned upon,
among other things, an award of Housing Tax Credits and satisfactory completion of regulatory
requirements, Staff will present separate Mayor and Council Communications for the developments to
Council once all other loan terms have been negotiated.
All of these developments are subject to the applicable City |owS' ordinances, policies and procedures.
{.ogouu)c: l72Ol4|lDlISINGJ`AXCREI)lTf0ESDI.i/TIDNB Page 2of3
____
The developments are located in COUNCIL DISTRICTS 2, 3, 4' 7 and G. MapaCo4V' 4Z' 5S' 5\8/' 35A.
38C. 4OC. 48V. 72D' 78)< and O43T.
CERTIFICATION:FISCAL INFORMATION /
The Financial Management Services Director certifies that this action will have nV material effect onCity
funds.
CENTERS:FUND TO Fund/Account/Centers FROM Fund/Account/Centers
Submitted for City Manager's Office bV:CERTIFICATIONS.:
Fernando Costa (6122)
Originating Department Head: JayChmpa (5804)
Cynthia Garcia (9187)
Additional Information Contact: Avis Chaisson (0342)
ATTACHMENTS
1. Avondale Apartments Resolutionjoc (Public)
2. Churchill Champions Resolution.cloc (Public)
3. Columbia Development Resolution.cloc (Public)
4. Heritage Park Vista Resolutionjoc (Public)
5. Hometowne Presidio Resolution.cloc (Public)
O. Reserve BoatClubRd Resolutionjoc (Public)
7. RFPMAP Al I Developments.pd (Public)
8. Sabine Place Resolutionjoc (Public)
R. Zenstar Development Resolution.doc (Public)
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