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HomeMy WebLinkAboutResolution 4298-02-2014 A Resolution NO. 4298-02-2014 SUPPORTING A HOUSING TAX CREDIT APPLICATION FOR THE COLUMBIA AT RENAISSANCE SQUARE AND APPROVING LOCAL FUNDING WHEREAS, the City's 2013 Comprehensive Plan is supportive of the preservation, improvement, arid 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 forlow income residents of the City a high priority; WHEREAS, Columbia Renaissance Square 1, L.P., ari affiliate of New Columbia Residential, LLC, a Georgia limited liability company, has proposed a development for affordable rental housing named the Columbia at Renaissance Square to be located at 3801 W. G. Daniels Drive in the City of Fort Worth; WHEREAS, Columbia Renaissance Square 1, L.P. 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 Columbia at Renaissance Square, a new 150-unit complex; WHEREAS, TDHCA'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 through its City Council, herby confirms that it supports the application of Columbia Renaissance Square 1, L.P. to the Texas Department of Housing arid Community Affairs for Housing Tax Credits for the purpose of the development of the Columbia at Renaissance Square to be located at 3801 W. G. Daniels Drive (Application No. 14198), 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 through its City Council, confirms that it has committed $1,200,000.00 of its HOME Investment Partnerships Program grant funds to Columbia Renaissance Square 1, L.P., in the form of a permanent loan for a minimum term of fifteen (15) years, minimum RTWO Resolution No, 4298-02-2014 amortization period of thirty (30) years, and an interest rate no higher than three percent (3%) per annum conditioned upon, among other things, receipt of Housing Tax Credits and satisfactory completion of regulatory requirements. Adopted this 18th day of February, 2014. pad*� "d')000 00 0 A T T EST:ary .1. l�ayse " y Seetary ��`o �xy 0000oao40 ORT WORT Churchill at Champions Circle ............ Avondale Apartmen�sl _jz- :al, o:n:d .......... 87 377 ........... HomeTowne at Presidio JuncT.- ion Heritage Park Vista I I .......... 26 ............. Reserve at Boat Club Ro a-d- I, Sabine Place Apartments 199 77 26 121 183 121 199 183 0 80 87 Art at Palladium View 377 183 Columbia at Renaissance Square N City of Fort Worth, Texas Mayor and council Communication COUNCIL ACTION, on 2/18/2014 Resolution Nos, 4296-02-2014, 4297-02-204, 4298.02- 2014, 4299-02-2014, 4300-02-2014, 4301-02-2014, 4302-024014, 4303-02-2014 XMIW�WIWIM1AYIYGtlVW^IWWGWNWN!WANuNI01N46116111NU1ttA0dUM9 M1N I00011W1U H'1A01\W WI(M VAIN !AI4'+M1MfNdFl\N4fF11YFilYAtirt4fFX� ,fdl'IAI(,Wl IHN!49f Q4f1101 tt. ANAIMAPN PRxM1mrtl rtl MfOtlFAMafrtIIFfMO @WMI?!YIIIXPttI(iIP01GU 0IPVfH4g1{fUNUNti1((ItC11YmP 1m@ PWIiNNI(5'IIfr%M1Vdfm@'IfNIOXOMNMVitMi4PfA0N4Y1lYGIBiulOINNtlAIIM%WNNNMIOMIiIMIIN!WII`591!WW!WPIOY.YmISf flHNIPAIifiOAlA4'WiIU'W9PWIUiIF 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 1, 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 Logname: 172014HOUSINGTAXCRED I'CRESOLUTIONS Page 1 of 3 developments must have, at a minimum, evidence of a firm commitment of local public funding and appropriate zoning. 2. An application for development that does not have evidence of a firm commitment of local public funding and/or does not have appropriate zoning will be eligible to receive, at most, 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 (Mapsco 4V, 4Z, 5S, 5" • Columbia at Renaissance Square developed by Columbia Renaissance Square I, L.P., an affiliate of New Columbia Residential, LLC, located at 3801 W. G. Daniels Drive, Fort Worth, Texas (Mapsco 78X) • Sabine Place Apartments (Rehab) developed by Think Housing Development LLC, an affiliate of Alara Ventures, LLC and Preservation Partners Development III, LLC, located at 1215 Terminal Road, Fort Worth, Texas (Mapsco 48V) • Art at Palladium View developed by Zenstar Development, LLC, located at Westpoint Boulevard and West Loop 820 South, Fort Worth, Texas (Mapsco 72D) • Heritage Park Vista Phase Two developed by Heritage Park Vista Housing Partners Two, Ltd., an affiliate of NuRock Acquisitions, LLC, located at 8729 Ray White Road, Fort Worth, Texas (Mapsco 36C) • Churchill at Champions Circle developed by Churchill at Champions Circle Community, L.P., an affiliate of Churchill Residential, Inc., located at Champions Circle, Fort Worth, Texas (Mapsco 643T) Staff recommend that the City Council adopt the attached Resolutions of No Objection for: • Reserve at Boat Club Road developed by MV Residential Development LLC, an affiliate of Miller- Valentine Operations Inc., located at Boat Club Road and Cromwell-Marine, Fort Worth, Texas (Mapsco 46C) • HomeTowne at Presidio Junction developed by HomeTowne at Presidio Junction, LP, an affiliate of Integrated Housing Solutions, LLC, located at Harmon Road and Presidio Vista Drive, Fort Worth, Texas (Mapsco 35A) 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 commitment of development funding by a local political subdivision. Staff presented the results of the Request for Proposals for use of City HOME Investment Partnerships Program (HOME) grant funds for housing developments to the 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 Palladium View, and $1,200,000.00 of HOME funds to Columbia Renaissance Square I, L.P. for the Columbia at Renaissance Square. 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 laws, ordinances, policies and procedures. Logname: 172014HOUSINGTAXCREDITRESOLUTIO]vS Page 2 of 3 The developments are located in COUNCIL DISTRICTS 2, 3, 4, 7 and 8, Mapsco 4V, 4Z, 5S, 5W, 35A, 36C, 46C, 48V, 72D, 78X and 643T. FISCAL INFORMATION / CERTIFICATION: The Financial Management Services Director certifies that this action will have no material effect on City funds. FUND CENTERS: TO Fund/Account/Centers FROM Fund/Account/Centers CERTIFICATIONS: Submitted for City Manager's Office by: Fernando Costa (6122) Originating Department Head: Jay Chapa (5804) Cynthia Garcia (8187) Additional Information Contact: Avis Chaisson (6342) ATTACHMENTS 1. Avondale Apartments Resolution.doc (Public) 2. Churchill Champions Resolution.doc (Public) 3. Columbia Development Resolution.doc (Public) 4. Heritage Park Vista Resolution.doc (Public) 5. Hometowne Presidio Resolution.doc (Public) 6. Reserve BoatClubRd Resolution.doc (Public) 7. RFPMAP All Developments.pd (Public) 8. Sabine Place Resolution.doc (Public) 9. Zenstar Development Resolution.doc (Public) Logname: 172014HOUSINGTAXCREDITRESOLUTIONS Page 3 of 3