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HomeMy WebLinkAbout065806 - General - Contract - Fort Worth Area Habitat for Humanity, Inc. dba Trinity Habitat for HumanityCity Secretary Contract No 65806 HOUSING AFFORDABILITY INCENTIVES AGREEMENT BETWEEN THE CITY OF FORT WORTH AND HABITAT FOR HUMANITY This HOUSING AFFORDABILITY INCENTIVES AGREEMENT ("Agreement") is made and entered into by and between the City of Fort Worth, a home -rule municipal corporation of the State of Texas ("City"), and Fort Worth Area Habitat for Humanity, Inc., doing business as Trinity Habitat for Humanity, a Texas nonprofit corporation ("Developer"), each individually referred to herein as a "party" and collectively as the "parties." WHEREAS, City desires to partner with Developer on a pilot project that will provide 88 detached single-family homes for low-income families (the "Residences") expected to be called Garden Springs Development (the "Project"); WHEREAS, Fort Worth City Council, through approval of M&C 25-0959 on October 21, 2025, authorized fee waivers, in an amount up to $12,491.00 per home for a total amount not to exceed $1,099,132.00, to benefit Developer in connection with the Project; WHEREAS, the Project will provide City with an increase in stable housing near schools, jobs, and vital community resources; WHEREAS, this Agreement shall serve as a control mechanism to ensure the public purpose of the fee waivers is met; NOW, THEREFORE, City and Developer, acting herein by and through their duly authorized representatives, agree as follows: 1. FEE WAIVERS The following fees shall be waived in connection with the Project: Building Permit related Fees (including Plan Review, Inspections and trade permits) Plat Application Fees (including Concept Plan, Preliminary Plat, Final Plat, Short Form Replat) Board of Adjustment Application Fee Demolition Fee Structural Moving Fee Community Facilities Agreement (CFA) Application Fees Zoning Application Fee Street and Utility Easement Vacation Application Fee Ordinance Inspection Fee Consent/Encroachment Agreement Application Fees Transportation Impact Fee OFFICIAL RECORD Sign Permit Fees CITY SECRETARY Urban Forestry Application Fees FT. WORTH, TX HOUSING AFFORDABILITY INCENTIVES AGREEMENT Page 1 of 6 BETWEEN THE CITY OF FORT WORTH AND TRINITY HABITAT FOR HUMANITY 2. REPAYMENT OF WAIVED FEES Developer agrees that any fees waived pursuant to this Agreement will be repaid to City within ten (10) days of Developer's receipt of a notice for repayment from the City. Such notice for repayment will only be sent to Developer if the Project is not completed as contemplated by the parties. More specifically, a notice for repayment will be issued if the Residences are not completed within eighteen (18) months from the date this Agreement is executed or if the Residences are not used for affordable housing. However, if both parties mutually determine, supported by appropriate documentation, that Project completion will reasonably extend beyond the eighteen (18) month timeframe, the Agreement maybe amended to reflect a revised completion date upon the written consent of both parties. Affordable Housing" or "Affordable Units" means residential units that are affordable to households earning less than eighty percent (80%) of the Area Median Family Income (AMFI), as defined by the U.S. Department of Housing and Urban Development (HUD) for single-family housing, and to households earning less than sixty percent (60%) AMFI, as defined by HUD, for rental and multi -family housing. This definition shall constitute the parties' agreed -upon definition of "affordable housing. 3. PROJECT COMPLETION Developer shall notify the City upon Project completion. The City shall have a right to inspect the Residences. If the City is not satisfied with construction of the Residences, City shall notify Developer, in writing, of corrective actions Developer must take to avoid repayment of fees waived pursuant to this Agreement. If Developer has not adequately addressed each of City's concerns within thirty (30) days of receiving a notice to take corrective actions, Developer agrees City can submit a request for repayment that will be by Developer within ten (10) days of Developer's receipt of a notice for repayment from the City. 4. NOTICES Notices required pursuant to the provisions of this Agreement shall be conclusively determined to have been delivered when (1) hand -delivered to the other party, its agents, employees, servants or representatives, or (2) received by the other party by United States Mail, registered, return receipt requested, addressed as follows: To CITY: City of Fort Worth Attn: City Manager's Office 100 Fort Worth Trail Fort Worth, TX 76102 To DEVELOPER: FORT WORTH AREA HABITAT FOR HUMANITY, INC., D/B/A TRINITY HABITAT FOR HUMANITY Attn: Gage Yager 9333 N. Normandale St. HOUSING AFFORDABILITY INCENTIVES AGREEMENT Page 2 of 6 BETWEEN THE CITY OF FORT WORTH AND TRINITY HABITAT FOR HUMANITY With a copy to Fort Worth City Attorney's Fort Worth, TX 76116 Office at the same address 5. GOVERNMENTAL POWERS It is understood and agreed that by execution of this Agreement, City does not waive or surrender any of its governmental powers or immunities. 6. GOVERNING LAW / VENUE This Agreement shall be construed in accordance with the laws of the State of Texas. If any action, whether real or asserted, at law or in equity, is brought pursuant to this Agreement, venue for such action shall lie in state courts located in Tarrant County, Texas or the United States District Court for the Northern District of Texas, Fort Worth Division. 7. SEVERABILITY If any provision of this Agreement is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired. 8. HEADINGS NOT CONTROLLING Headings and titles used in this Agreement are for reference purposes only, shall not be deemed a part of this Agreement, and are not intended to define or limit the scope of any provision of this Agreement. 9. REVIEW OF COUNSEL The parties acknowledge that each party and its counsel have reviewed and revised this Agreement and that the normal rules of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement. 10. AMENDMENTS/ MODIFICATIONS/ EXTENSIONS No amendment, modification, or extension of this Agreement shall be binding upon a party hereto unless set forth in a written instrument, which is executed by an authorized representative of each party. HOUSING AFFORDABILITY INCENTIVES AGREEMENT Page 3 of 6 BETWEEN THE CITY OF FORT WORTH AND TRINITY HABITAT FOR HUMANITY 11. INDEMNIFICATION DEVELOPER HEREBY COVENANTS AND AGREES TO INDEMNIFY, HOLD HARMLESS AND DEFEND CITY, ITS OFFICERS, AGENTS, SERVANTS AND EMPLOYEES, FROM AND AGAINST ANY AND ALL CLAIMS OR LAWSUITS OF ANY KIND OR CHARACTER, WHETHER REAL OR ASSERTED, FOR EITHER PROPERTY DAMAGE OR LOSS (INCLUDING ALLEGED DAMAGE OR LOSS TO DEVELOPER'S BUSINESS AND ANY RESULTING LOST PROFITS) AND/OR PERSONAL INJURY, INCLUDING DEATH, TO ANY AND ALL PERSONS, ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, TO THE EXTENT CAUSED BY THE NEGLIGENT ACTS OR OMISSIONS OR MALFEASANCE OF DEVELOPER, ITS OFFICERS, AGENTS, SERVANTS OR EMPLOYEES. 12. COUNTERPARTS / ELECTRONIC SIGNATURES This Agreement may be executed in one or more counterparts and each counterpart shall, for all purposes, be deemed an original, but all such counterparts shall together constitute one and the same instrument. This Agreement may be executed by electronic signatures. 13. SIGNATURE AUTHORITY The person signing this Agreement hereby warrants that he/she has the legal authority to execute this Agreement on behalf of the respective party, and that such binding authority has been granted by proper order, resolution, ordinance or other authorization of the entity. Each party is fully entitled to rely on these warranties and representations in entering into this Agreement or any amendment hereto. 14. ENTIRETY OF AGREEMENT This Agreement, contains the entire understanding and agreement between City and Developer, their assigns and successors in interest, as to the matters contained herein. Any prior or contemporaneous oral or written agreement is hereby declared null and void to the extent in conflict with any provision of this Agreement. HOUSING AFFORDABILITY INCENTIVES AGREEMENT Page 4 of 6 BETWEEN THE CITY OF FORT WORTH AND TRINITY HABITAT FOR HUMANITY [SIGNATURES ON FOLLOWING PA GE] HOUSING AFFORDABILITY INCENTIVES AGREEMENT Page 5 of 6 BETWEEN THE CITY OF FORT WORTH AND TRINITY HABITAT FOR HUMANITY IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be effective on the date signed by the City's Assistant City Manager. CITY OF FORT WORTH: By: Name: Dana Burghdoff Title: Assistant City Manager Date: 09/10/2026 APPROVAL RECOMMENDED: By: Thornas Kacey Thoa 10, 2026 13:25:18 CDT) J Name: Kacey Thomas Title: Director, Neighborhood Services ATTEST: oon ooFoao ., � a %O Gtia 0.40 PVS g=d 0* � d xza is adRp nEXP5oo By: U Name: Jannette Goodall Title: City Secretary Dana Burghdoff Dana Burghdoff (Se 0. 202617:4001 CDT) DEVELOPER: FORT WORTH AREA HABITAT FOR HUMANITY, INC., D/B/A TRINITY HABITAT FOR HUMANITY Attn: Gage Yager 9333 N. Normandale St. Fort Worth, TX 76116 Gee YagerYager By: Gage Yager (Aug 21, 2026 13-54:39 CDT) Name: Gage Yager Title: Chief Executive Officer Date: 08/21/2026 CONTRACT COMPLIANCE MANAGER: By signing I acknowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all performance and reporting requirements. 1/1e& 09/09/2026 Name: Joshua Hezlep Title: Neighborhood Development Coordinator APPROVED AS TO FORM AND LEGALITY: L sJ k Hurl (Sep 10, 2026 14:04:47 CDT) Name: Leslie L. Hunt Title: Sr. Assistant City Attorney CONTRACT AUTHORIZATION: M&C: 25-0959 OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX HOUSING AFFORDABILITY INCENTIVES AGREEMENT Page 6 of 6 BETWEEN THE CITY OF FORT WORTH AND TRINITY HABITAT FOR HUMANITY M&C Review CITY COUNCIL AGENDA Create New From This M&C DATE: 10/21/2025 REFERENCE M&C 25- LOG NAME: 06GARDEN CITY HABITAT FOR NO.: 0959 HUMANITY CODE: G TYPE: NON- PUBLIC NO CONSENT HEARING: SUBJECT: (CD 6) Authorize the Waiver of Development -Related Fees in an Amount Up to $12,491.00 Per Home for a Total Amount Not to Exceed $1,099,132.00 in Support of a Housing Affordability Strategy Incentives Pilot Program for the Development of Trinity Habitat for Humanity's Garden Springs Affordable Housing Development and Find that the Waiver of Development -Related Fees Serves a Public Purpose by Reducing the Development Costs for Providing Quality, Accessible, Affordable Housing for Low - Income Households, Under the Criteria of Affordability Defined by the U.S. Department Of Housing and Urban Development for Single -Family Housing and Adequate Controls are in Place to Ensure the Public Purpose is Met RECOMMENDATION: It is recommended that the City Council: Authorize the waiver of development -related fees in an amount up to $12,491.00 per home for a total amount not to exceed $1,099,132.00 in support of a Housing Affordability Strategy Incentives Pilot Program for the development of Trinity Habitat for Humanity's Garden Springs Affordable Housing Development; and Find that the waiver of the development -related fees serves a public purpose by reducing the development costs for providing quality, accessible and affordable housing for low-income households, under the criteria of affordability defined by the U.S. Department of Housing and Urban Development for single-family housing, and adequate controls are in place to ensure the public purpose is met. DISCUSSION: In October 2023, the City Council adopted priorities outlined in the Fort Worth Neighborhood Conservation Plan and Housing Affordability Strategy, serving as a roadmap to create and preserve affordable housing in Fort Worth. The Housing Affordability Strategy noted that when the cost of building or preserving housing is high, developing affordable units is more challenging. Additionally, by reducing the cost of developing and preserving homes, the City and its partners can help developers increase the supply of affordable housing. Specifically, one of the strategies identified in the Housing Affordability Strategy was to offer development bonuses to incentivize affordable development. For purposes of this pilot program, the waiver of development -related fees is proposed to be modeled after the Neighborhood Empowerment Zone Program's Basic Incentives Policy adopted by the City Council in February 2025 (Resolution No. 6056-02-2025). The program helps incentivize the development of affordable single-family home ownership opportunities in Fort Worth. Pilot Partnership Project: Trinity Habitat for Humanity — Garden Springs Development The City of Fort Worth has an opportunity to partner with Trinity Habitat for Humanity on a pilot project that will provide affordable, accessible housing for low-income families. This development FORT WORTH http://apps.cfwnet.org/council_packet/mc review.asp?ID=33821&councildate=10/21/2025[5/19/2026 3:40:26 PM] M&C Review will consist of 88 detached single-family homes, designed in compliance with the Americans with Disabilities Act (ADA) to ensure accessibility for residents with mobility challenges. The City's support is requested to help offset permit fees, land development, and construction costs, including related municipal fees. In addition to meeting a critical community need, this project will result in long-term benefits. Once built, the properties will generate new tax revenue for the City and create new affordable housing units for the City's growing population. The Garden Springs development will provide stable housing near schools, jobs, and vital community resources, helping families thrive and remain connected to opportunity. A municipal investment in this project would demonstrate Fort Worth's commitment to expanding affordable housing and enhancing the quality of life for underserved residents, while addressing strategies identified in the Housing Affordability Strategy. FEE TYPE All Building Permit related Fees (including Plan Review, Inspections and trade permits) Plat Application Fees (including Concept Plan, Preliminary Plat, Final Plat, Short Form Replat) Board of Adjustment Application Fee Demolition Fee Structural Moving Fee Community Facilities Agreement (CFA) Application Fees Zoning Application Fee Street and Utility Easement Vacation Application Fee Ordinance Inspection Fee Consent/Encroachment Agreement Application Fees Transportation Impact Fee Sign Permit Fees Urban Forestry Application Fees The fees presented in the chart above encompass all fees that qualify for waiver; this list is not inclusive of all fees that may apply to new residential construction. Fees for special services, such as simultaneous plan and plat review or expedited plan review will not be waived. By partnering with Trinity Habitat for Humanity on this pilot project, the City of Fort Worth can help extend homeownership opportunities to families who would otherwise be unable to afford to live in the Garden Springs Area. Trinity Habitat for Humanity has a proven track record of constructing affordable homes that fully comply with City of Fort Worth building codes. These homes have been strategically located in neighborhoods across Fort Worth, contributing positively to the community fabric and long-term neighborhood stability. By approval of this Mayor & Council Communication, the City Council finds that the waiver of development -related fees for this pilot collaboration between the City and Trinity Habitat for Humanity serves a public purpose because it will reduce the development costs for providing quality, accessible, affordable housing for low-income households and addresses recommendations included in the Housing Affordability Strategy. The City Council finds that adequate contractual controls are in place to carry out such a public purpose. FISCAL INFORMATION/CERTIFICATION: http://apps.cfwnet.org/council_packet/mc review.asp?ID=33821&councildate=10/21/2025[5/19/2026 3:40:26 PM] M&C Review The Director of Finance certifies that upon approval of the waiver, an estimated loss of up to $1,099,132.00 in development -related fees could occur. This reduction in revenue will be incorporated into the long-term financial forecast upon the waiver being granted. TO Fund Department Account Project Program Activity Budget Reference # Amount ID ID Year (Chartfield 2) FROM Fund Department Account Project Program Activity Budget Reference # Amount ID ID Year (Chartfield 2) Submitted for City Manager's Office by: Jesica McEachern (5804) Originating Department Head: D.J. Harrell (8032) Additional Information Contact: ATTACHMENTS COST SPREADSHEET - HABITAT FOR HUMANITY.xlsx (CFW Internal) Garden Springs Map 1.docx (Public) Habitat flyer.pdf (Public) http://apps.cfwnet.org/council_packet/mc review.asp?ID=33821&councildate=10/21/2025[5/19/2026 3:40:26 PM] FORT WORTH® City Secretary's Office Contract Routing & Transmittal Slip Contractor's Name: Trinity Habitat for Humanity Subject of the Agreement: HOUSING AFFORDABILITY INCENTIVES AGREEMENT BETWEEN THE CITY OF FORT WORTH AND TRINITY HABITAT FOR HUMANITY RE: Garden Springs Development M&C Approved by the Council? * Yes N No ❑ If so, the M&C must be attached to the contract. Is this an Amendment to an Existing contract? Yes ❑ No If so, provide the original contract number and the amendment number. Is the Contract "Permanent"? *Yes ® No ❑ If unsure, see back page for permanent contract listing. Is this entire contract Confidential? *Yes ❑ No ® If only specific information is Confidential, please list what information is Confidential and the page it is located. Effective Date: Date of execution of the contract Expiration Date: If different from the approval date. If applicable. Is a 1295 Form required? * Yes ❑ No UI *If so, please ensure it is attached to the approving M&C or attached to the contract. Project Number: If applicable. *Did you include a Text field on the contract to add the City Secretary Contract (CSC) number? Yes N No ❑ Contracts need to be routed for CSO processing in the following order: 1. Katherine Cenicola (Approver) 2. Jannette S. Goodall (Signer) 3. Allison Tidwell (Form Filler) *Indicates the information is required and if the information is not provided, the contract it,ill be returned to the department.