HomeMy WebLinkAboutResolution 4318-05-2014 A Resolution
NO. 4318-05-2014
ADOPTING AN AMENDMENT TO THE NEIGHBORHOOD EMPOWERMENT
ZONE TAX ABATEMENT POLICY AND BASIC INCENTIVES (RESOLUTION
NO. 4209-05-2013) TO INCORPORATE AFFORDABLE HOUSING COMMITMENT
REVISIONS GOVERNING TAX ABATEMENT AGREEMENTS FOR PROPERTIES
LOCATED IN A NEIGHBORHOOD EMPOWERMENT ZONE
WHEREAS, a municipality may enter into tax abatement agreements authorized
by Chapter 312 of the Texas Tax Code ("Code") only if the governing body of the
municipality has previously adopted a resolution stating that the Municipality elects to
be eligible to participate in tax abatement and has established guidelines and criteria
governing tax abatement agreements, a tax. abatement policy; and
WHEREAS, pursuant to the Code, a tax abatement policy is effective for two (2)
years from the date of its adoption; and
WHEREAS, on May 21, 201.3 the City Council adopted Resolution No. 4209-05-
2013 wherein the City elected to participate in tax abatement and adopted the
Neighborhood Empowerment Zone Tax Abatement Policy and Basic Incentives ("NEZ
Policy") as required by Chapter 312 of the Texas Tax Code-, and
WHEREAS, the NLZ Policy requires that any multi-family rental residential
development or mixed-use development that includes a multi-family rental residential
component must have a percentage of the total residential units set aside exclusively for
lease to qualifying households whose adjusted incomes do not exceed the then-current
eighty percent (80%) income limits established by the United States Department of
Housing and Urban Development (HUD) for the Fort Worth-Arlington HUD Metro FMR
Area at rents that are affordable to such households, as defined by HUD (an "Affordable
Housing Set-Aside Commitment"); and
WHEREAS, the City Council wishes to amend the NEZ Policy to provide that the
City Council, in its sole discretion, may allow an applicant for tax abatement under that
Policy whose property will include mufti-family rental residential units to make annual
payments to the Fort Worth Housing Finance Corporation in the amount of $200.00 per
rental residential unit located on the property or make a specific Affordable Housing Set-
Aside Commitment to provide ten percent (10%) of units to persons with incomes at or
below eighty percent (80%) of the median income based on family size and provide
another ten percent (10%) of units to persons with incomes at or below sixty percent
(60%) of the median income based on family size; and
WHEREAS, the Fort Worth Housing finance Corporation is a housing finance
corporation created pursuant to authorization by the City Council in accordance with
RT T
resolution No.4318-U5-2014 .......
Chapter 394, Texas Local Government Code,, to assist in the financing of the costs of
residential development and ownership for citizens of decent, safe and sanitary housing at
affordable prices, and
WHEREAS, the Housing and Economic Development Department has
recommended an amendment to the NEZ Policy related to tax abatements for multi-
family development projects and mixed-Use development projects that include residential
units; and
WHEREAS, the City Council believes that such an amendment to the City's NEZ
Policy will provide greater flexibility and incentive for developers to invest in
developments that the City Council finds to meet the land use and economic expansion
goals of the City while, at the same time, providing for an alternative resource for the
growth of affordable housing in the City;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, 'TEXAS:
1. THAT the City hereby amends the NEZ Policy attached hereto as Exhibit
"A", to incorporate revisions related to tax abatements for multi-family
development projects and mixed-use development projects that include
residential units; the NEZ Policy constitutes the guidelines, criteria and
procedures governing tax abatement agreements entered into by the City, to
be effective April 15, 2014 through May 21 , 2015 unless earlier amended or
repealed by a vote of at least three-fourths (3/4) of the members of the City
Council.
2. THAT this NEZ Policy, as amended, will expressly govern all tax abatement
agreements for properties located in a Neighborhood Empowerment Zone as
designated by City Council and entered into by the City during the period in
which such tax abatement policy is in effect.
3. THAT all previous Resolutions are hereby expressly repealed to the
extent in conflict with the provisions of this Resolution.
4. THAT this Resolution shall take effect immediately from and after its
adoption.
AND IT IS SO RESOLVED.
00000000
Adopted this 6 th day of May, 2014. %"p
ATTEST:
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Mary J. Ka;� r, City Secretary
���WOR�T
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Exhibit "A"
CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) TAX ABATEMENT POLICY AND BASIC
INCENTIVES
I. GENERAL PURPOSE AND OBJECTIVES
Chapter 378 of the Texas Local Government Code allows a municipality to create a
Neighborhood Empowerment Zone (NEZ) when a "...municipality determines that the creation
of the zone would promote:
(1) the creation of affordable housing, including manufactured housing, in the zone;
(2) an increase in economic development in the zone;
(3) an increase in the quality of social services, education, or public safety provided to
residents of the zone; or
(4) the rehabilitation of affordable housing in the zone."
The City, by adopting the following IVEZ Tax Abatement Policy and Basic Incentives, will
promote affordable housing and economic development in Neighborhood Empowerment Zones.
NEZ incentives will not be granted after the NEZ expires as defined in the resolution designating
the NEZ. For each NEZ, the City Council may approve additional terms and incentives as
permitted by Chapter 378 of the Texas Local Government Code or by City Council resolution.
However, any tax abatement awarded before the expiration of a NEZ shall carry its full term
according to its tax abatement agreement approved by the City Council.
As mandated by state law, the property tax abatement under this policy applies to the owners of
real property. Nothing in the policy shall be construed as an obligation by the City of Fort Worth
to approve any tax abatement application.
II. DEFINITIONS
"Abatement or Tax Abatement" means a full or partial exemption from City of Fort Worth ad
valorem taxes on eligible real and personal property located in a NEZ for a specified period on
the difference between (i) the amount of increase in the appraised value (as reflected on the
certified tax roll of the appropriate county appraisal district) resulting from improvements begun
after the execution of a written Tax Abatement Agreement and (ii) the appraised value of such
real estate prior to execution of a written Tax Abatement Agreement (as reflected on the most
recent certified tax roll of the appropriate county appraisal district for the year prior to the date
on which the Tax Abatement Agreement was executed).
"Affordable Units" means affordable to persons earning less than 80% Area Median Family
Income (AMFI) as defined by U.S. Department of Housing and Urban Development (HUD) for
single family housing and under 60%AMFI as defined by HUD for rental and multi-family.
"Base Value"is the value of the Real Property Improvements, excluding land, as determined by
the Tarrant County Appraisal District, during the year rehabilitation occurs.
"Building Standards Commission" is the commission created under Sec. 7-77, Article IV.
Minimum Building Standards Code of the Fort Worth City Code.
Amendments— April 15 2014 1
Exhibit "A,"
'C4pkn/ Investment" includes only Real Property Improvements such as new tmui|ihea and
otructureo, site improvementa, facility expunsion, and facility modernization. Capital Investment
does NOT include land acquisition costs and/or any existing improvennents, or personal property
(such as maohinery, aquipment, and/or supplies and inventory)
"City of Fort Worth Tax Abatement Policy Statement"means the policy adopted by City Council.
"Co/n/nero/ay/ndustrim/ Development Pn»er/" is o development project which proposes to
construct or rehabilitate commercial/industrial facilities on property that is (or nnoota the
requirements to be) zoned onmmeroia|, industrial or mixed use as defined by the City of Fort
Worth Zoning Ordinance.
"Community Facility Development Pxojec/''is a development project which proposes to construct
or rehabilitate community facilities on property that allows such use as defined by the City of
Fort Worth Zoning Ordinance.
"Eligible Rehabilitation" includes only physical improvements to Real Property Improvements,
Eligible Rehabilitation does NOT include personal property (such as furniture, appliances,
equipment, and/or supp|ias).
"Gn000 Floor Area" is measured by taking the outside dimensions of the building at each floor
|eve|, except that portion of the basement used only for utilities or storago, and any areas within
the building used for off-street parking
"Minimum Building Standards Code" is Article |Vofthe Fort Worth City Code adopted pursuant
to Texas Local Government Code, Chapters 54 and 214.
"Minority Business Enterprise (MBE)') and ''N/b/nen Buy/weao Enterprise (W49E]'' is a minority or
woman owned business that has received certification as either e certified MBE or certified
VVBE by either the North Texas Regional Certification Agency (NTRCA) or the Texas
Department ofTransportation (TxOot). Highway Division.
"Mixed-Use Development Pnoject" is e development project which proposes to construct or
rehabilitate mixed-use facilities in which residential uses constitute 20 percent or more of the
total gross floor area, and offioe, eating and entertainment, and/or retail sales and service uses
constitute 10 percent or more of the total gross floor area and is on property that is (or meets
the requirements to be) zoned mixed-use as described by the City of Fort Worth Zoning
Ordinance.
"Mu/h'D»rn8v Development Project" is a development project which proposes to construct or
rehabilitate 3 or more multi-family residential living units on a property that is (or meets the
requirements to be) zoned multi-family or mixed use as defined by the City of Fort Worth Zoning
Ordinance
'YVom/ Construction" is a newly constructed habitable structure improvement requiring o
permanent foundation. This excludes accessory structures such as sheds and incidental out
buildings.
"Primary Residence" is the residence that has a Homestead Exemption on file with Tarrant
County Appraisal District.
Amendments—
1 14
2
Exhibit "A"
"Project" means e "Residential Project", ^Cun//noxia8hduotria/ Development
Project","Community Facility Development Project", "Mixed-Use Development Project", or a
^Mu//i-tynnily Development Project."
"Real Property Improvements" — means a habitable ahno/une an defined by the Fort Worth
Building Code,
"Reinvestment Zonn" is an area designated as such by the City of Fort Worth in accordance
with the Property Redevelopment and Tax Abatement Act codified in Chapter 312 of the Texas
Tax Code, or an area designated as an enterprise zone pursuant to the Texas Enterprise Zone
Act, codified in Chapter 2303 of the Texas Government Code
"Residential Project' — means |aua than 3 residential units,
|U. MUNICIPAL PROPERTY TAX ABATEMENTS
A. RESIDENTIAL PROPERTIES LOCATED IN A NEZ- FULL ABATEMENT FOR 5
YEARS
1 For residential property purchased before NEZ deaignmtion, a homeowner shall be
eligible to apply for a tax abatement by meeting the following:
o. Property is owner-occupied and the primary residence of the homeowner prior to
the final NEZ designation. Homeowner shall provide proof of ownership by a
warranty deed affidavit of heirehip, or a probated vvi|[ and shall show proof of
primary residence by homestead exemption-, and
b. Property is rehabilitated after NEZ designation and City Council approval of the
tax abatement
.
o. Homeowner must perform Eligible Rehabilitation on the property after NEZ
designation equal to or in excess of 3096 of the Bone Value of the Real Property
Improvements-, and
d. Property is not in a tax-delinquent status when the abatement application is
submitted.
2 For residential property purchased after NEZ deeignation, a homeowner aho|| be
eligible to apply for e tax abatement by meeting the following:
a Real Property Improvements are constructed or rehabilitated after NEZ
designation and City Council approval of the tax abatement'
b. Property in owner-occupied and is the primary residence of the homeowner,
Homeowner shall provide proof of ownership by a warranty deed, affidavit of
heirohip, or a probated wi||, and shall nhnvv proof of primary residence by
homestead exemption,
c For rehabilitated Real Property Improvements, Eligible Rehabilitation costs on
the Real Property Improvements ahmU be equal to or in excess of 30Y6 of the
Base Value of the Real Property Improvements, The seller or owner shall provide
the City information to support rehabilitation costs',
d- Property is not in a tax-delinquent status when the abatement application is
submitted-. and
April 15 2014
Exhibit "A"
e. Property is in conformance with the City of Fort Worth Zoning Ordinance
howevor, a property use that is |aQa| non-conforming shall not be eligible to
receive a tax abatement,
3. For investor owned single family property, an investor shall be eligible to apply for a
tax abatement by meeting the following:
a, Beu| Property Improvements are constructed or rehabilitated after NEZ
designation and City Council approval of the tax abatement;
b. For rehabilitated Real Property Improvements, Eligible Rehabilitation costs on
the Real Property Improvements shall be equal to or in excess of 30Y6 of the
Base Value of the Real Property |mpruvemonts�
c. Property is not in a tax-delinquent status when the abatement application is
submitted; and
d. Property isin conformance with the City of Fort Worth Zoning Ordinance,
B. MULTI-FAMILY DEVELOPMENT PROJECTS LOCATED IN A NEZ
1- 100% Abatement for 5 vears.
If an applicant applies for a tax abatement agreement with a term of five years o
less, this section shall apply.
o) Abatements for multi-family development projects for up to 5 years are subject to
City Council approval, The applicant may apply with the Housing and Economic
Development Department for such abatement.
b)
tax abatement upon completiM...
|)
' At least _ ,__- `---' _ the _total unit'_ __--__- _ r___-_'-- __
be affordable 'as defined b the U. S. DepartmeRt of Housing and Urban
Development) and set aside to persons -with incomes at OF below eighty
peme=nL=L1.M. of -or rehabilitated naIL-be
,.construQted or rehabilitated shall
percent (60%Q Qf_area Citil
nily size .,,113 60unGil
requirement OR a Gase by ease
may vaive G, _duce. the
ii
Amendments— AW 15 2P J 4 4
Exhibit"A"
cpr or t�,pn preated prtrquan.t to authodzati.pn b _t"j,"_oun of_the City
pf Fort.Worth in ,accordance wwt_h__.t�ha ter 394. Texas Cp l . over ment
te, a assist n the finan_dng_.of the pests of residential development andand
�w.rjer..sh_�p, for citizens of decent, safe--and. nary h �_mot.: affordable
r!r An,s?L��I a=.rlk'S� . . to vh er t ?mmit to. n�.._-a ffQ rable.d
J) a.s:sna,sit_asp r tQ an nnnua a meat t_ the Fort Wer o a ins
Fdn nce.,_Cprporati_on mast be .ma rpr to ,execution of,the ax_a_batement
agreement and, may not be chanced durin tlse S rm uf_t�e: �r m n ,:_T
annual oayment will be due on, pr before.February t of each year in which a
t x; tern nt is nted (pr s! nh otherdpte that„maybe acireesl_t4in the tax
aptent agreemn FeietSL12 artr? ar1t..ta the Housing
Einane Qam=on wheh n clue .wtl1 moult in the forfeiture of-th_e nttre�
bst went for the tax_ ar In_whjch ._c�—mint v-a due. Additional terms and 11
onditions
oyerning this annuaa ay-ment wirplent w---flI be set forth in the
tax .t ter rLt., greement.
2) In addition at least 5% of the total units constructed or rehabilitated shall be
compliant with the Americans with Disability Act (ADA) in accordance with
Section 504 of the Rehabilitation Act, and must be fully accessible and 2% of the
total units constructed must be fully accessible to persons with sensory
impairments; and
3) For a multi-family development project nwlu_ constructed after NEZ designation,
the project must provide at least five (5) residential living units OR have a
minimum Capital Investment of $200,000; 4) For a rehabilitation project, the
Real Property Improvements must be rehabilitated after NEZ designation.
Eligible Rehabilitation costs on the Real Property Improvements shall be at least
30% of the Base Value of the Real Property Improvements. Such Eligible
Rehabilitation costs must come from the rehabilitation of at least five (5)
residential living units or a minimum Capital Investment of $200,000.
2. 1%-100% Abatement of City Ad Valorem taxes up to 10 years
If an applicant applies for a tax abatement agreement with a term of more than five
years, this section shall apply.
Abatements for multi-family development projects for up to 10 years are subject to
City Council approval. The applicant may apply with the Housing and Economic
Development Department for such abatement.
Years 1 through 5 of the Tax Abatement Agreement
a) Multi-family projects shall be eligible for 100% abatement of City ad valorem
taxes for years one through five of the Tax Abatement Agreement upon the
satisfaction of the followin con i ions herein
b) I r P:r...tp be etigjble for n property tax abatement k,mpon go,mpletto.n newt
constructed or rehabilitated multi-family development project in a NEZ must
..... .....
sWisfy _h_.-fell wm_cL
1) The project m��st s�trsty one,pf they Ic�l ,
A.rxiendrnents - aril 15 2014 5
Exhibit"A"
i. At least fen Per-roo�R (201%) of the total R46 G R—st cte rehab'Wated shall
be affordable-Z t
k3y–tt}Et-
Development) and set aside—t^-peicsons–with inGemes of below eighty
percent 1809A) of area median income hased OR family size- At l eas t"
ergo f %) of the total units. .. �onstru—sled -or rehabilitated shall be
_ffordable (as .damned, --the �1. 5. l Department of in and Urk n
Development) and set aside to persons with incorn-e at or below eighty
percent (8 °/) of area median incQme don family size and at least
another te,n, n��1�°l� r?f,th�_Lpt,a�.�.n.its.constructed or rehabilitated shall
be a�f kale s fi c� y-the U. $ Departm„er_t__Qt._Housina and Usk
Development) and set aside, to ,personswith..in' mes at or below sixty
percent (60%)_-of aLe ,,median inop re based �n family size S+t}�Geune+4
may waive-or reduEe the 209/o
ba is-Q
ii. If s_ ecifically permitted. by the Ctty Conn-cflF rn its sole disc_ratW and as
PeJf_1e�in the=tax ,abate-ment aver ement, ... are v the Fort Worth Hou5ing.
Finance Corporation arL�o_n�al. sum., ecal to �20Q 00 for each rer7t .l_
residential unit located Qn h_e property whioh,is st�biect to the tax abatament
The fort Worth .HAusing Finer-c C=oration is a housing finance
sir Qration created rsuant to anti hQri at.i_on. by t ie City Council of the Citv
fLFo_rt_V.Vorth An apcordanc—e with .Chapker 94 T xas..::� ocal Government
o e a s__ st rn tt�e fin�ncinc of th,e costs of residential develo rn -p
ownership for_Qiti ens of.-cluent, safe sanitary housing at affordable
rp ices_, An ant's—choice as to- ,whether to commit to arr^.affordable
housing set-aside car to an a.nnural payment to the Fort forth _ in
Finance Corporation m,4��. e-,made. 3riar_tp execution of the tax abatement
agreementad may notes chanted_ the term of the_a teement. This
anr7ua_l ment ws.l.l..be,doeon on efore FebrUarY l of each year in which a
tax.-abatement-[5, granted . soh other that may be agreed to in„th X
abatement a em nt Fal]_u,re to_pa annual payment to the Housing
Finance Corporation when d.ue w01Lre5UJt_!n the forfeiture of the entire tax
abatement for thta;Xal_inwhlohavment � due. Additional terms and
-conditions governing this annual pavment requirement will k ..set forth..in the
tax .abatement agreement
2) In addition at least 5% of the total units constructed or rehabilitated shall be
compliant with the Americans with Disability Act (ADA) in accordance with
Section 504 of the Rehabilitation Act, and must be fully accessible and 2% of the
total units constructed must be fully accessible to persons with sensory
impairments;
3) For a multi-family development project constructed after IVEZ designation, the
project must provide at least five (5) residential living units OR have a minimum
Capital Investment of$200,000;
4) For a rehabilitation project, the Real Property Improvements must be
rehabilitated after NEZ designation. Eligible Rehabilitation costs on the Real
Property Improvements shall be at least 30% of the Base Value of the Real
Property Improvements. Such Eligible Rehabilitation costs must come from the
Amendments— April ,J S 2014 6
Exhibit "A"
rehabilitation of at least five (5) residential living units or a minimum Capital
Investment of$200,000.
Years 6 throug h 10 of the Tax Abatement Agreement
e. Multi-famxy projects shall be eligible for 100% abatement of Qty ad valorem
taxes for years one through five of the Tax Abatement Agreement upon the
satisfaction wf the foAo^wi
of
b In order to be eli i Joke—for-Ap��,,ta x_abate me nt upon cD_mpie�in .-a ne
e-of the fQllowin
i
Fehab44ateds,ha4-be affordable 'as defiRed by the U. S. [DepartmeRt
,,onstructed-w defined b-
d.. Udian-Deypupme- t) on et aside
median income based on family size and at least ano h r ten
nd set aside t
income based on fa il
-size- waive or redUGe the 20% affeFdabilty
ii
abatement agLeam-ent. pay the Fort Worth
each property which is subject
financing of the costs of residential
and ownership fo
housing- -set-_a5_id_e _Q_r,_.IQ-,..a n_-annuall,, pAymeaLto the Fort Worth
HQusin_g Finance Corporation mu..st be rto__e�xwtion of
agreement). re to pa ....the....ann-up-I ay eaUQ the Housing
Finance Comoration when due -will result......in Ahe forfeiture of the
reauirem
iLb2-ae1forth in th_p�.gbalpnient_a __e
Amendments— _Aprfl, J5,2Q 14 7
.Exhibit "A�`
2) In addition at least 5% of the total units constructed or rehabilitated shall be
compliant with the Americans with Disability Ant (4OA) in accordance with
Section 504 of the Rehabilitation Art, and must be fully accessible and 296 of the
total units constructed must be fully accessible to persons with sensory
impairments;
3) For a multi-family development project constructed after NEZdea/gnadion. the
project must provide at least five (3) residential living units DR have a minimum
Capital Investment of $2OU.000,
4) For a rehabilitation project, the Real Property Improvements must be
rehabilitated after NEZ designation. Eligible Rehabilitation costs on the Real
Property Improvements shall be at least 3096 of the Base Value of the Real
Property Improvements. Such Eligible Rehabilitation costs must come from the
rehabilitation of at least five (5) residential living units or a minimum Capital
Investment of$200.0O0
5) Any other terms as City Council of the City of Fort Worth deems ap9ropriute,
inc|uding, but not limited to.
1. utilization of Fort Worth companies for an agreed upon percentage Vf the total
costs for construction contracts;
2. utilization of certified minority and women owned business enterprises for an
agreed upon percentage of the total costs for construction oontrooty�
l property inspection:
4. commit to hire an agreed upon percentage of Fort Worth residents
5. commit to hire an agreed upon percentage of Central City residents
G. landscaping:
7. tenant selection plans-, and
. .
8. management plans.
C. COMMERCIAL, INDUSTRIAL AND C{JK0K0UN|TY FACILITIES DEVELOPMENT
PROJECTS LOCATED IN A NEZ
1. 100% Abatement of City Ad Valorem taxes for 5 years
If an applicant applies for a tax abatement agreement with a term of five years or
less, this section shall apply.
Abatements for Commercial, Industrial and Community Facilities Development
Projects for up to 5 years are subject to City Council approval. The applicant may
apply with the Housing and Economic Development Department for such abatement.
In order to be eligible for o property tax abaternent, a newly constructed or
rehabilitated commercial/industrial and community facilities development project in a
NEZ muat satisfy the foUovving�
Es6ibb "A"
a. A commercial, industrial or a community facilities development project
constructed after NEZdesignadVn must have sminiIu:m Capital Investment of
$75,000; or
b. For a rehabilitation pnojeot, it must be rehabilitated after NEZ designation. Eligible
Rehabilitation costs onthe Real Property Improvements shall be at least 3OY6nf
the Base Value of the Real Property Improvements, or $75'000. whichever is
greater.
2. 1%-100% Abatement of City Ad Valorem taxes uQ to 10 year
If an applicant applies for a tax abatement agreement with a term of more than five
years, this section shall apply.
Abatements agreements for a Commercial, Industrial and Community Facilities
Development projects for up to 10 years are subject to City Council approval. The
applicant may apply with the Housing and Economic Development Department for
such abatement,
Years I through 5 of the Tax Abatement Agreement
Commercial, Industrial and Community Facilities Development projects shall be
eligible for 100% abatement of City ad valorem taxes for the first five years of the
Tax Abatement Agreement upon the satisfaction uf the following:
o. A onmmercio|, industrial or o community facilities development project
constructed after NEZ designation must have a minimum LCapital Investment of
$75,000; or
b. For rehabilitation projeot, It must be rehabilitated after NEZ designation. Eligible
Rehabilitation costs onthe Real Property Improvements shall haat least 3O% of
the Base Value of the Real Property Improvements, or $75.000. whichever is
greater.
Years 6 through 10 of the Tax Abatement Agreement
Commercial, Industrial and Community Facilities Development projects shall be
eligible for 196-10096 abatement of City ad vo|onann taxes for years six through ten of
the Tax Abatement Agreement upon the satisfaction uf the following:
a. A commercial, industrial or m community facilities development project
constructed after NEZ designation must have a minimuml Capital
Investment of $75,000 and must meet the requirements of subsection (o)
below ; or
b. For rehabilitation pro|ert, it must be rehabilitated after NEZ designation.
Eligible Rehabilitation costs onthe Real Property Improvements shall be
at least 30% of the Base Value of the Real Property Improvements, or
$75.000. whichever is greater and meet the requirements of subsection
(o) below.
C. Any other terms as City Council of the City of Fort Worth deems
appropriate, ino|uding, but not limited to:
1 utilization of Fort Worth companies for an agreed upon percentage of
the total costs for construction contracts"
Amendments— 9
Exhibit ^A,
2. utilization of certified minority and women owned business enterprises
for an agreed upon percentage of the total costs for construction
contracts;
3 commit to hire on agreed upon percentage of Fort Worth residents;
4 commit to hire an agreed upon percentage of Central City residents;
and
5. landscaping.
D. MIXED-USE DEVELOPMENT PROJECTS LOCATED |NANEZ
1- 100% Abatement of City Ad Valorem taxes for 5 years
If an applicant applies for a tax abatement agreement with a term of five years o
less, this section shall apply.
Abatements for Mixed-Use Development Projects for up to 5 years one subject to
City Council approval. The applicant may apply with the Housing and Economic
Development Department for such abatement.
In order to be eligible for a property tax abatement, upon oomp|etion, a newly
constructed or rehabilitated mixed-use development project in a NIEZ must satisfy the
following:
l. Residential uses in the project must constitute 20 percent or more of the total
Gross Floor Area of the project and
i At leas' ten percent (20%) of the total un4ts conS"FUGted or
ehab;Wated shall be affordable (aSr defined by the4.- . S. Department
of
and Urban velopmeRt) and Set aside to
based GR family size-At le-asA-ten
be.affQrdabg by the U
median incame, b-asad- on familv size, and-----at Iea.st,_aaQth_Qr_terA
ea(;h_re,,n,ta1,reside-n-tia I unit-lwated on the property which is Subject
J 41
ii
&moodments— Aadl 15,2014, 10
Exhibit "A"
fin.an in pf b cost pf rpsl .. ..n:.ill .si�v 1pp -en . n siwnershit� for
rliz szf _At, �a_fe 3.rtd.,A�.hc?,pping at affordable ori�
An applicant°
choice, a IQ whether tpsLommit tc_an -a—ffp rd,ab.le,
hour pet-asic or tin annual payment #o,the Fort _Worth
FI in finance r tjs�n must _b_e__�.as�. pCle_AQ xPcu i of
the tax abatement agreement an d may,npt
term of the agf en T_..k�i annual payment will be due ..4n Q
Qre F r r 1. cif .h_ par in�v�h__a.tax_a_batement is arante !
or such ether date.that mat be ag.r_ee.-to.=Jn the tax abatement
a geme F , �_ro)rent to the Ong G rQ ,
Fn�ans ,,,,,-2 _„r teew_b .t _ u yv_Ll resin. l,n the forfeit�a. e.�rf th_e
enlir-pJax abatement for the tax year in w it ,pyment was du_e.
Additional, terms and cpn At-o_ ns__ goyprning._._this .annual payment
reauirem_u_t wil I be Vie#f_QAh in,tie tBx ab.atemi n r ment.
2) In addition at least 5% of the total units constructed or rehabilitated shall be
compliant with the Americans with Disability Act (ADA) in accordance with
Section 504 of the Rehabilitation Act, and must be fully accessible and 2% of the
total units constructed must be fully accessible to persons with sensory
impairments;
a. Office, eating and entertainment, and/or retail sales and service uses in the
project constitute 10 percent or more of the total Gross Floor Area of the project;
and
(1) A mixed-use development project constructed after NEZ designation must
have a minimum Capital Investment of $200,000; or
(2) For a rehabilitation project, it must be rehabilitated after NEZ designation.
Eligible Rehabilitation costs on the Real Property Improvements shall be at
least 30% of the Base Value of the Real Property Improvements, or
$200,000, whichever is greater.
2. 1%-100% Abatement of City Ad Valorem taxes up to 10 years
If an applicant applies for a tax abatement agreement with a term of more than five
years this section shall apply._
Abatements agreements for a Mixed Use Development projects for up to 10 years
are subject to City Council approval. The applicant may apply with the Housing and
Economic Development Department for such abatement.
Years 1 through 5 of the Tax Abatement Agreement
Mixed Use Development projects shall be eligible for 100% abatement of City ad
valorem taxes for the first five years of the Tax Abatement Agreement upon the
satisfaction of the following:
In order to be eligible for a property tax abatement, upon completion, a newly
constructed or rehabilitated mixed-use development project in a NEZ must satisfy the
following:
Amendments— ApyjI 5 7O]4 11
Exhibit "A"
1. Residential uses in the project must constitute 20 percent or more of the b`bs|
Gross Floor Area of the project and
A- __-' ._. ,_-_- '-.',/ ~ ^..~ ^~^~ ...^~ ......~~`~. or .~..."..^°`"d
s4at"e-affo.Fdable (as defiRed by the--U. S. DepartmerA--of Housing and
e4hty-peFcent-(&GW) of area media,-, in--eme based on fangily size At least
tg.n =p�fggrt (`!V�Q�fth, total units constructed or rehabilitated shal—be
Housing and Urban
Qe to. men set_a,56e to,,2ef_s_xtis _w eighty
wpasr
afea_m_e_dia,n.Jnao_m�ac1 on
aeLsDn3__*Aih incomes at or below sixty
bas's or
ii If spagImaUlypermitted by the City Council, in i s..sole discretiQn,---and 3-s
Government of the costs of residential
tax abatement-jo during t
agreement, This_a- ual payment will be due on or before r f
e d to in the tax-abateme-nt- the annual
forfeiture of t e tag-ja-batement.-for the tax year in which QAy M.P.,jn ,w a s
Le ent.
a4(c=pn�,,_*lJ,be__set forth, in the tax abatement agreeme-A
b. Offioe, eating and enhartainment, and/or retail sales and service uses in the
project constitute 10 percent or more of the total Gross Floor Area of the
project-, and
o. A new mixed-use development project constructed after NEZ designation
must have a minimum Capital Investment of $200000; or for a rehabilitation
project. it must be rehabilitated after NEZ designation. Eligible Rehabilitation
costs on the Real Property Improvements shall be at least 3096 of the Base
Value of the Real Property Improvements, or $200.000. whichever is grea{er,
/\nueudrnonLo- 12
Exhibit "A"
Years 6 through 10 of the Tax Abatement Agreement
xx/xeo use Development projects shall be eligible for 1-100Y6 abatement ofCity ad
valorem taxes for years six through ten of the Tax Abatement Agreement upon the
satisfaction nf the following:
In order to be eligible for a property tax aba(onnont, upon completion, a newly
constructed or rehabilitated mixed-use development project inaNEZnnuotaatisfvthe
following:
1 Residential uses in the project must constitute 20 percent or more of the total
Gross Floor Area ofthe project and
i At least teR percent (20 ) of the total UR'fo non cfi p'inted OF rehabilitated shall
be afferdable (as defiRe by the U. S. DepaFtment-of.-HOHS'Rg and WFb@R
percent-=%) of-area median income based onJa___y
1 of the total, unils--constru-cted- or rehabilitated shalt be
affar
dable (a5 defineJ by De and Urban
DeveIQDrne a-d-aet__aaidg.AQ_ persons with iaQornea W...or below sixty
ii.,,,If specifically pe_rrn_Aited__by__.t�ne it .. Quncill- in it5. sole discretion, and
Jo n
_Q�d of, the property wbich is subject to the tax abatement. The Fort Worb
accordance with QhopleL39-4 Cal Government Code, to assist in the
Texas,L
a-s to-whether to commit to an--affordable housing set-aside or to an annual
mv,�,nent to the Fort,A1QiAh,_H_Qu5i Finance Corporation Must be mad
term f the agreement -ThIs annual Dayme
nJ will be due on or before February
1_Qf_ _Qh year in wNc-h-aAax.abatemen is granted CQr-au-ch other date t
igreemen_t�, Failure to_
forfeiture-of thp- entire tax abatement for the, tax year in which pa, _eratwaa
ti
Qn me
Le_q,uirement will be set forth in th"x a atement agreement
2. Office, eating and entertainment, and/or retail sales and service uses in the
project constitute 10 percent or more of the total Gross Floor Area of the
project� mnd
Amendments- Apri 115 2 14 13
Exhibit uA,
3. Any other terms as City Council of the City of Fort Worth deems apprnphate,
indudinQ, but not limited to�
4) utilization of Fort Worth companies for an agreed upon percentage of
the total costs for construction contracts,-
.
5) utilization of certified minority and women owned business
enterprises for an agreed upon percentage of the total costs for
construction contracts;
O) property inspection:
7) commit tu hire on agreed upon percentage of Fort Worth residents
B) commit tu hire an agreed upon percentage of Central City residents
9) landscaping-,
10) tenant selection o|ens� and
11) management plans.
E. ABATEMENT GUIDELINES
1 If NEZ in located in o Tax Increment Financing Oisthct, City Council will determine
on a case-by-case basis if the tax abatement incentives in Section U| will be offered
to eligible Projects- Eligible Projects must meet all eligibility requirements specified
in Section Ui
2. A tax abatement shall not be granted for any development project inwhiohabui|ding
permit mpp|ioadun, excluding grading and/or demolition, has been filed with the City's
Planning and Development Deportment, In addition, the City will not abate taxes on
the value of real or personal property for any period of time prior to the year of
execution ofa Tax Abatement Agreement with the City.
3. If Project is located in the Woodhaven Neighborhood Empowerment Zone, in order
to be considered "eligible" to apply for a tax abatement under this Policy, the
Woodhaven Community Development Corporation and the Woodhaven
Neighborhood Association must have submitted a letter ofsupport for the Project to
the City of Fort Worth
4. Tax Abatements for e new construction project vvi|| automatiuoUyterminmtetwoyeans
after Council approval of the tax abatement if building permit has not been pulled
and afoundation has not been poured
5. Tax Abatements for a rehabilitation project will automatically terminate two years
after Council approval of the tax abatement if the p roject in not complete.
S. In order to be eligible to apply for a tax nbatement, the property owner/developer
must:
o Not be delinquent in paying property taxes for any property owned by the
oener/dnve|opor, except that an owner/developer may enter into m tax
abatement agreement with the city of Fort Worth for a specific Project if:
1 the Project meets IIJEZ tax abatement criteria; and
2. the applicant is not responsible for the tax delinquency for the Property; and
2. the applicant enters into an agreement to pay off the taxes under the
guidelines permitted under state |avv� and
Exbibd "Ar
3. the tax abatement ahuU provide that the egnaarnent shall take effect after the
delinquent taxes are paid infull
b Not have any City of Fort Worth liens filed against any property owned by the
applicant property owner/developer. ''Liens" ino|ude, but are not limited to. weed
liens, demolition liens, bomrd-uo/open structure liens and paving liens.
7. Projects to be constructed on property to be purchased under contract for deed
are not eligible for tax abatements.
8 Once m NEZ property owner ofa residential property (including multi-family) in the
NEZaatisfies the criteria set forth in Sections ||iA. E.1. and E.2. and applies for an
abatement, m property owner may enter into a tax abatement agreement with the City
of Fort Worth. The tax abatement agreement shall automatically terminate if the
property subject tn the tax abatement agreement is in violation of the City of Fort
Worth's Minimum Building Standards Code and the owner is convicted of such
violation,
Q- A tax abatement granted under the criteria set forth in Section I 11. can only be granted
once for a property in a INEZ for a maximum term of as specified in the agreement. If
a property on which tax is being abated is sold, the City may assign the tax
abatement agreement for the remaining term once the new owner submits an
application so long as the new owner complies with all of the terms of the tax
abatement agreement.8A property owner/developer of multifamily dews|npmont,
onmnneroim|, industria|, community facilities and mixed-use development project in
the NEZvvho desires a tax abatement under Sections ||| B. C or O must:
a Satisfy the criteria set forth in Sections |||.B. C or D. as applicable, and Sections
U|.EA E.2; and E3. and
b. File an application with the Housing and Economic Development Department, as
applicable,- and
c The property owner must enter into m tan abatement agreement with the City of
Fort Worth. In addition to the other terms of agreemant, the tax abatement
agreement shall provide that the agreement shall automatically (enn|nahs if the
owner receives one conviction of a violation of the City of Fort Worth's Minimum
Building Standards Code regarding the property subject to the abatement
agreement during the term of the tax abatement aQreement� and
d. If property in the NEZon which tax is being abated is sold, the new owner may
enter into a tax abatement agreement on the property for the remaining term.
10. If the terms of the tax abatement agreement are not met, the City Council has the
right to cmnmy| or amend the abatement agreement. In the event of cancellation, the
reoapturoofabmtadtaxeanhaUbo |imitodtotheyear(s) invvhiohthedofau|touourrmd
or continued.
11 The terms of the agreement ohoU include the City of Fort Worth's right to� (1) review
and verify the applicant's financial statements in each year during the life of the
agreement prior to granting a tax abatement in any given year, (2) conduct an on site
inspection of the project in each year during the life of the abatement to verify
compliance with the terms of the tax abatement agreement, (3) terminate the
agreement if the Project contains or will contain a sexually oriented business (4
/,Ynendrocotu— April.,15112014 15
Exhibit "A"
terminate the ugreemant, as determined in City's sole discretion, if the Project
contains or will contain a liquor store or package store.
12. Upon completion of construction of the facilities, the City shall no less than annually
evaluate each project receiving abatement to insure compliance with the terms of the
agreement. Any incidents of non-compliance will be reported to the City Council.
On or before February 1at of every year during the life of the agreoment, any
individual or entity receiving o tax abatement from the City of Fort Worth shall
provide information and documentation which details the property owner's
compliance with the terms of the respective agreement and shall certify that the
owner is in compliance with each applicable term of the mgroennonL Failure to report
this information and to provide the required certification by the above deadline shall
result in cancellation of agreement and any taxes abated in the prior year being due
and payable.
13. |fa property in the NEZon which tax is being abated is sold, the new owner may
enter into a tax abatement agreement on the property for the remaining term Any
sa|e, assignment or lease of the property which is not permitted in the tax abatement
agreement results in automatic cancellation of the agreement and recapture of any
taxes abated after the date on which mn unspecified assignment occurred,
F APPLICATION FEE
1, An application fee of $25.00 for all basic inoentiven, excluding tax abatements.
2. The application fee for residential tax abatements governed under Section |||.A is
$100.
3. The application fee for multi-family, commercial, industrial, community facilities and
mixed-use development projects governed under Sections ||| B, C. and D, is one-
half ofone percent (0.596) of the proposed Project's Capital |nveetrnont, with a $200
minimum not to exceed $2.000. The Application Foe aheU not be Credited or
refunded to any party for any reason.
IV. FEE WAIVERS
A. ELIGIBLE RECIPIENTS/PROPERTIES
1 City Council shall determine on a case-by-case basis whether n Project that will
contain or contains a liquor store or package store is eligible to apply for a fee
waiver.
2. If Project is located in the Woodhaven Neighborhood Empowerment Zone, in order
to be considered "eligible" to apply for a fee waiver under this Policy, the Woodhaven
Community Development Corporation and the Woodhaven Neighborhood
Association must have submitted a letter of support for the Project to the City of Fort
VVurth--hmwever, once the NEZ Plan is submitted for the Woodhaven NEZ, this will
nV longer beroquinod.3. Projects to be constructed on property to be purchased
under a contract for deed are not eligible for development fee waivers.
Amoudments— 15 2014 16
Exhibit "A"
3 In order for a property owner/developer to be m|iBib|a to apply for fee waivers for a
Project, the property ovvneRdevempec
m, must submit an application tothe City;
b must not be delinquent in paying property taxes for any property owned by the
owner/developer orapp|imant
C. mu:d not have any City liens filed against any property owned by the applicant
property owner/developer, including but not limited to. weed liens, demolition
|iens, board'up/npen structure liens and paving liens; and
d. of Project that will contain or contains a liquor store, package store or sexually
oriented business has received City Council's determination that the Project in
eligible to apply for fee waivers-
Approval
approval of any aspect of the Pro'ect. Before construction, the applicant must
ensure that the project is located in the correct zoning district.
B. DEVELOPMENT FEES
1 Once the Application for NEZ Incentives has been approved and certified by the City, the
following fees for oen/ioen performed by the City of Fort Worth for Projects in the NEZ
are waived for new construction projects or rehabilitation projects that expend at least
30% of the Bose Value of the Real Property Improvements on Eligible Rehabilitation
costs:
o) All Building Permit na|abad Fees (including Plans Review and Inspections) except as
stated in |V B. 2. below
b\ Plat Application Fee (including Concept P|an, Preliminary P|st, Final P|at, Short Form
Rep|at)
o) Board of Adjustment App|ivaton Fee
d) Demolition fee
e) Structure Moving Fee
0 Community Facilities Agreement (CFA) Application Fee
g) Zoning Application Fee
h) Street and Ub|dv Easement Vacation Application Fee
i) Ordinance Inspection Fees
U Consent/Encroachment Agreement Application Fees
k) Transportation Impact Fees
|) Urban Forestry Application Fees
m) Sign Permit Fees
2. If permit or application listed in B (1) is expired, the fee to react|vata, renew or reapply
shall not be waived. In add|tion, penalties and extension fees orre-permitting fees will
not bewaived,
3, Neighborhood Empowerment Zone Fees not waived or reduced:
a] Investigation Fees
b) Plan Revision Fees
u,) Change of Record Fees
d] Inspection outside of normal business hours ReinepeutionFee
Amendments— Apri 1 15 121,0114 17
Exhibit "A"
e.) Annual Fire Inspection Fees
4. Other development related fees not specified above will be considered for approval by
City Council on a case-by-case basis.
C. IMPACT FEES
1. Single family and multi-family residential development projects in the NEZ.
Automatic 100% waiver of water and wastewater impact fees will be applied.
2. Commercial, industrial, mixed-use, or community facility development projects in the
N EZ.
a. Automatic 100% waiver of water and wastewater impact fees up to $55,000 or
equivalent to two 6-inch meters for each commercial, industrial, mixed-use or
community facility development project; whichever is less.
b. If the project requests an impact fee waiver exceeding $55,000 or requesting a
waiver for larger and/or more than two 6-inch meter exceeding $55,000, then City
Council approval is required. Applicant may request the additional amount of
impact fee waiver through the Planning and Development Department.
V. RELEASE OF CITY LIENS
A. ELIGIBLE RECIPIENTS/PROPERTIES
1. Project must be located in a NEZ.
2. City Council shall determine on a case-by-case basis whether a Project that will
contain or contains a liquor store or package store is eligible to receive a release of
City liens.
3. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order
to be considered "eligible" to apply for release of city liens under this Policy, the
Woodhaven Community Development Corporation and the Woodhaven
Neighborhood Association must have submitted a letter of support for the Project to
the City of Fort Worth.
4. Projects to be constructed on property to be purchased under a contract for deed are
not eligible for any release of City Liens.
5. In order for a property owner/developer to be eligible to apply for a release of city
liens contained in Section V.B., C., D., and E. for a Project, the property
owner/developer:
a. must submit an application to the City,
b. must not be delinquent in paying property taxes for any property owned by the
owner/developer;
c. must not have been subject to a Building Standards Commission's Order of
Demolition where the property was demolished within the last five (5) years;
Amendments— April 15 2014. 18
Exhibit "A"
d. must not have any City of Fort Worth liens filed against any other property owned
bv the applicant propedynwner/deve|opoc "Liens" ino|udos, but is not limited to,
weed |icna, demolition liens, boonJ-up/open structure liens and pwving |iens� and
e. of a Project that contains or will contain a liquor stVno, package store or a sexually
oriented business has received City Council's determination the Project is eligible
to receive a release of City liens.
O. In order for a Rehabilitation Project to qualify for a n:|ouam of city |iens, the
owner/developer must spend Eligible Rehabilitation costs on the Property of at least
3O96of the Base Value of the Property.
7. Liens listed in this Policy shall be released once the Project Improvements have been
made to the property.
8. Any liens filed after the initial certification of the property shall not be released.
113. WEED LIENS
The following are eligible to apply for release of weed liens:
1. Single unit owners performing rehabilitation on their proper-ties.
2. Builders or developers constructing new homes on vacant lots.
3. Owners performing rehabilitation on multi-fami|y' commercial, industriu|, mixed-uoe,
o/ community facility properties.
4. Developers constructing now mu|ti-fumi|y, commercial, industrial, mixed-use or
community facility development projects.
C. DEMOLITION LIENS
Builders or developers developing or rehabilitating a property for a Project are eligible to
apply for release of demolition liens for up to $30'0130. Releases of demolition liens in
excess Vf$3O`OOO are subject to City Council approval.
D. BOARD-UP/OPEN STRUCTURE LIENS
The following are eligible to apply for release of board-up/open structure liens:
1. Single unit owners performing rehabilitation on their properties.
2. Builders or developers constructing new single family homes on vacant lots-
3. Owners performing rehabilitation on mu|d-fannUy' commercial, industria|, mixed-use,
or community facility properties.
4, Developers constructing mulb-fami|y, oornmercia|, industrio|, mixed-use, or
community facility projects.
E. PAVING LIENS
The following are eligible to apply for release of paving |iens�
1. Single unit owners performing rehabilitation on their properties
2. Builders or developers constructing new homes on vacant lots.
Amendments— ApriJI15-20111114 19
Exhibit "A"
3. (}vvnem performing rehabilitation on mu|tifami|y, commercial, industrial, mixed-use,
or community facility properties.
4. Developers constructing rnu|tifemi|y, commanoia|, indushia|, mixed-use, or
community facility projects.
F. All other City liens will not be waived.
V1. PROCEDURAL STEPS
A. APPLICATION SUBMISSION
1. The applicant for NEZ incentives under Sections ||| |V. and V. must complete and
submit a City of Fort Worth "Application for NEZ Incentives" and pay the appropriate
application fee tothe Planning and Development Department, aoapplicable.
2� The applicant for incentives under Sections ||| C.2 and O.2 must also complete and
submit a City of Fort Worth "Application for Tax Abatement" and pay the appropriate
application fee to the Housing and Economic Development Department. The
application fee, reviavv, evaluation and approval will be governed by Qty of Fort
Worth Tax Abatement Policy Statement for Qualifying Development Projects.
3 All NEZ certifications for incentives will expire after five years
4 NEZ benefits will continue for certified projects (18) eighteen months after NEZ in
terminated or the N EZ boundary changed.
B. CERTIFICATIONS FOR APPLICATIONS UNDER SECTIONS |||. IV, AND V
1 The Planning and Development Department will review the application for accuracy
and completeness. A complete application must include proof that:
1 The Project is |ocatedinaNEZ;
2. The Public Notification Process has been completed as stated in section |X�
3. The project isincnmp|ianoewiththeadoobedNEZp|an; and
4 The Council Member for the district in which the project is located has approved the
project,
Once the Planning and Development Department determines that the application is
complete, the Planning and Development Department will certify the property
owner/developer's eligibility to receive tax abatements and/or basic incentives based on
the criteria set forth in Section UL |V. and V. uf this policy, asapplicable. Once an
applicant's eligibility is certified, the Planning and Development Department will inform
appropriate departments administering the incentives. An orientation meeting with City
departments and the applicant may bescheduled. The departments include:
a. Housing and Economic Development Department: property tax abatement for
residential properties and multi-family development projects, release of City liens.
b, Housing and Economic Development Department: property tax abatement for
commercial, industrial, community facilities or mixed-use development projects.
o. Planning and Development Department development fee waivers and release of
City liens.
Azneudozento— April 115 20,14 20
Exhibit "A"
d. Water Department: impact fee waivers.
e. Other appropriate departments, if applicable.
C. APPLICATION REVIEW AND EVALUATION FOR APPLICATIONS
1. Property Tax Abatement for Residential Properties and Multi-family Development
Projects
a. For a completed and certified application for no more than five years of tax
abatement, with Council approval, the City Manager shall execute a tax
abatement agreement with the applicant.
b. For a completed and certified multi-family development project application for
more than five years of tax abatement:
(1) The Housing and Economic Development Department will evaluate a
completed and certified application based on:
(a) The project's increase in the value of the tax base.
(b) Costs to the City (such as infrastructure participation, etc.).
(c) Percent of construction contracts committed to:
(1) Fort Worth based firms, and
(ii) Minority and Women Owned Business Enterprises (M/WBEs).
(d) Other items which the City and the applicant may negotiate.
(3) Consideration by the City Council
The City Council retains sole authority to approve or deny any tax abatement
agreement and is under no obligation to approve any tax abatement
application or tax abatement agreement. The City of Fort Worth is under no
obligation to provide tax abatement in any amount or value to any applicant.
c. Effective Date for Approved Agreements
All tax abatements approved by the City Council will become effective on
January 1 of the year following the year in which a Certificate of Occupancy (CO)
is issued for the qualifying development project (unless otherwise specified in the
tax abatement agreement). Unless otherwise specified in the agreement, taxes
levied during the construction of the project shall be due and payable.
2. Property Tax Abatement for Commercial, Industrial, Community Facilities, and
Mixed-Use Development Projects
a. For a completed and certified application for no more than five years of tax
abatement, with Council approval, the City Manager shall execute a tax
abatement agreement with the applicant.
b. For a completed and certified application for more than five years of tax
abatement.
(1) The Housing and Economic Development Department will evaluate a
completed and certified application based on:
(a) The project's increase in the value of the tax base.
(b) Costs to the City (such as infrastructure participation, etc.).
Amendments A. ara 1 .l 5 2014 21
Exhibit "A"
(c) Percent of construction contracts committed to:
(i) Fort Worth based firms, and
(ii) Minority and Women owned Business Enterprises (M/VVBEs),
(d) Other items which the City and the applicant may negotiate.
(2) Consideration by the City Council
The City Council retains sole authority to approve or deny any tax abatement
agreement and is under no obligation to approve any tax abatement
application or tax abatement agreement. The City of Fort Worth is under no
obligation tm provide tax abehamentin any amount or value to any applicant,
o. Effective Date for Approved Agreements
All tax abatements approved by the City Council will become effective on
January 1 of the year following the year in which a Certificate of Occupancy (CO)
is issued for the qualifying development project (unless otherwise specified in the
tax abatement 8gw*mmonU. Unless otherwise specified in the agreement, taxes
levied during the construction of the project shall be due and payable.
3 Development Fee Waivers
m. For certified applications of development fee waivers that do not require Council
approval, the Planning and Development Department will review the certified
applicant's application and grant appropriate incentives.
b. For certified applications of development foe waivers that require Council
approval, Qty staff will review the certified applicant's application and make
appropriate recommendations to the City Council.
4 Impact Fee Waiver
a. For certified applications of impact fee waivers that do not require Council
approval, the Water Department will review the certified applicant's application
and grant appropriate incentives,
b� For certified applications of impact fee vvaivona that require Council approval, the
Water Department will review the codified applicant's application and make
appropriate recommendations tu the City Council.
5. Release mfCity Liens
For certified applications of release of City liens, the Housing and Economic
Development Department will release the appropriate liens on NEZtmx abatement
applicants. The Planning & Development Department will release liens on NEZ basic
incentives applicants.
VU. BEFUND POLICY
In order for an owner/developer of a Project in a NEZto receive a refund of development
fees or impact feea, the conditions set forth in the Refund of Development and Impact
Fee Policy, attached ao Attachment ''A'. must be satisfied.
VU|. OTHER INCENTIVES
Amendments _pr,i,l 22
Exhibit «A,
A. The City Council may add the following incentives to a NEZ in the Resolution adopting
the NEZ.-
1. Municipal mm|eo tax refund
2. Homebuyeruauaiabanne
3. Gap financing
4. Land assembly
5. Conveyance of tax foreclosure properties
8. Infrastructure improvements
7. Support for Low Income Housing Tax Credit (L|HTC) applications
8. Land use incentives and zoning/building code exempdnna, e.g , mixed'uae, density
bonus. parking exemption
Q. Tax |nnnsrnen\ Financing (T|F)
1& Public Improvement District (P|O)
11. Tax-exempt bond financing
12, New Model Blocks
11 Loan guarantees
14� Equity investments
15. Other incentives that will effectuate the intent and purposes VfNEZ,
|x. Public Notification
@. Subject to subsection (b). in Order for an owner/developer t0 apply t0 receive any
incentives provided for under the NEZ Tax Abatement Policy and Basic Incentives,
an owner/developer nnUSt meet with the fO||0vviDg pe[SODS and organizations to
discuss the Project:
1. the {|DUDCil Member for the District the Project is located; and
2 the neighborhood associations or C0nlO0Unitv based organizations registered
with the city that are within 300 feet of the proposed Project. The
measurement of the distance between the proposed project and Neighborhood
Associations Or C0nlDlUDity Based Organizations Sh8|| be along the property
lines Of the street fronts and fK)O0 front door to front door` and in direct line
ac[OsSthe intersections.
b Subsection (a) shall be satisfied upon:
1. the owner/developer meeting with the City C0UDCi| Member for the District the
Project is located and the neighborhood G3SOCi81i0nS or COnnnnUD\ty based
organizations registered with the city that are within 300 feet of the proposed
Project; or
3 meeting with the City Council Member for the District the Project is located and
upon the owner/developer providing proof that the owner/developer attempted
to meet with the neighborhood associations and the C0nnrnUOity based
organizations registered with the City within 300 feet of where the proposed
P[O|eC[ is located and the aSsOCiaLiODS or organizations failed t0 @[[@Dge @
meeting with the Ovvner/deve|DperwithiD two weeks Of initial CODtGCt.
c Accepted proof of "attempts 10 meet" with the registered organizations will be
satisfied with the following:
1 a copy of 8 certified letter SeD[ to the registered organization describing the
project and requesting @ meeting and the green card from the poetoffioe� or
2. a copy of the e-mail sent to the registered organization describing the project
Aoeodnoeots— 23
Exhibit "A"
and requesting a meeting and the response from the organization.
X. Ineligible Prqjg�p�
The following Projects or Businesses shall not be eligible for any incentives under the City' of
Fort Worth's Neighborhood Empowerment Zone (NEZ) Tax Abatement Policy and Basic
Incentives:
1. Sexually Oriented Businesses
2. Non-residential mobile structures
Xi Denied Applications
a. NEZ applications will be denied 30 days after submission if all required
documentation iS not received by the City.
b. The applicant will have 90 days after the date Of denial t0 resubmit the NEZ
application without paying a new application fee.
Exhibit "All
ATTACHMENT
REFUND OF DEVELOPMENT AND IMPACT FEES POLICY
Purpose
This refund policy is for the purpose of establishing the conditions under which the City
may refund development and impact fe8s, normally waived through the Neighborhood
EDlp0vve[[O8Dt Zone (NEZ)
Applicability
Unless expressly accepted, this policy applies t0 all development and impact fees
waived by the City through the NEZ.
[1Dde[the NEZ Tax Abatement Policy and Basic Incentives, City Departments are
authorized to waive impact and development fees for qualified projects located in 8
designated NEZ. The impact fees include only vv8t8[ and SeYV8[ impact fSeS. Up to
$55.00O for commercial, industrial, mixed-use 0[ community facilities projects. The
development fees that CaO be waived through the NEZ include:
I. All building permit fees (including Plans Review and Inspections)
2. Plat application fee (including concept p|an, preliminary p|Gt, final p|at, short form
r8p|at)
3, Board Of Adjustment application fee
4 Demolition fee
5� St[U[tU[8 moving fee
6. Community Facilities Agreement (CFA) application fee
7. Zoning application fee
8. Street and utility O88e[DeD1 vGCGtiOD application fee
TO take advantage of these VV@ive[S, applicants need t0 obtain @ certification letter from
the Planning and DeV8|OpQO8Dt Department.
Conditions for Refunds
The City will CODSide[ refunds only when Ci[cU[DS1aDCSS beyond the developers control
prevent them frorn obtaining the qualification letter from the Planning and Development
Department.
A property owner and/0r developer may qualify for @ refund if the proposed
development project meets all criteria 10 receive a fee waiver under the NEZ Tax
Abatement and Basic Incentives Policy and:
a. The owner and/o[ developer was not made aware of the NEZ incentives at the
time the fees were paid; or
h. The owner and/or developer was mistakenly told that his/her property was not in
a designated NEZ, or
f\rncodozen1S— &pri I15 2014 25
Exhibit "A"
C The owner and/or developer has put funds iDGO escrow account with GCity
Department while GwG|UOg 8 decision from the City Council about his/her project;
or
d. City Council authorizes a City Department tO issue @ refund tOthe
owner/developer.
Refund Charge
/\ refund charge will be assessed tO help defray administration cost associated with the
processing of refund check. The charge shall be 20% of the amount of the refund. This
charge will b8 automatically deducted from the total refund amount.
Statute of Limitations
Any request, action or proceeding concerning the refund of fees normally waived
through the K]EZ must b8filed within ninety days following the date that the fees were
paid. /\O applicant who does not submit a refund request within 90 days Ofthe
t[@DsaCt|OO shall not qualify for a refund.
TO obtain 8 refund the applicant needs to:
• submit NEZ application 1Vthe Planning and Development Department for
determination of the eligibility for NEZ fee Vv8ive[S. and
• submit a written request to the Department in which the fees were paid. Upon
receiving a confirmation from the Planning and Development Department that the
project meets all NEZ fee waiver criteria, that Department shall process the request
based OO the qualifications discussed in this policy.
Exemptions
The provisions of this policy d0 not apply to:
@ Fees that are not waived through the NEZ program; and
b. Taxes and special assessments; and
n. City liens such aS mowing, boa[d-up. trash, demolition and paving liens.
An applicant shall not qualify for any refund if:
a. The applicant was made aware of the NEZ incentives before he/she pays the
fees-, or
b The applicant does not meet the requirements for NEZ incentives at the time
he/she paid the f88S� O[
u- The applicant paid the fees before the refund policy was put in place; or
d� The applicant paid the fees before the designation date of the NEZ.
Disclaimer
In the event of any conflict between the City's ordinances or regulations and this policy,
such ordinances or regulations shall control. In the event of any conflict between this
Exhibit"A"
policy and other policies or regulations adopted by the City Department issuing the
refund, such department policies or regulations shall control. The City reserves the right
to deny any or all request for refunds.
Amendments— Apria,_15 20114 27
City of Fort Worth, Texas
Mayor and council communication
COUNCIL ACTION: Approved on 5/6/2014 - Resolution Nos,4318-05-2014 & 4319-05-2014
CONTINUED FROM A PREVIOUS WEEK
DATE: Tuesday, March 04, 2014 REFERENCE NO.: G-18138(Revised)
LOG NAME: 17TAPOLICIESAMEND-R
SUBJECT:
Adopt Resolutions to Amend the City's General Tax Abatement Policy and the Neighborhood
Empowerment Zone Tax Abatement Policy and Basic Incentives to Revise Language on Affordable
Housing Commitments for Residential Tax Abatement Projects (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached Resolution amending Section 7.5 of the City's General Tax Abatement Policy to
revise requirements for affordable housing set-aside commitments for rental residential developments and
mixed-use developments with residential components receiving a tax abatement and, at the City Council's
discretion, permit annual payments to the Fort Worth Housing Finance Corporation in lieu of commitments
for an affordable housing set-aside in the amount of$200.00 per unit in the development; and
2. Adopt the attached Resolution amending Sections B.1, B.2, D.1 and D.2 of the City's Neighborhood
Empowerment Zone Tax Abatement Policy to revise requirements for affordable housing set-aside
commitments for rental residential developments and mixed-use developments with residential
components receiving a tax abatement and, at the City Council's discretion, permit annual payments to the
Fort Worth Housing Finance Corporation in lieu of an affordable housing set-aside in the amount of
$200.00 per unit in the development.
DISCUSSION:
Chapter 312 of the Texas Tax Code authorizes municipalities to designate tax abatement reinvestment
zones and to enter into Tax Abatement Agreements only after they elect to become eligible to participate
in tax abatement and adopts a Tax Abatement Policy that sets forth guidelines and criteria governing their
tax abatement programs. A Tax Abatement Policy adopted by a municipality is effective for two years and,
during that time, can only be amended by a vote of 3/4 of the members of the City Council.
Tax Abatement Agreements covering properties located in Neighborhood Empowerment Zones (NEZs)
are governed by the Neighborhood Empowerment Zone Tax Abatement Policy, which was adopted on
May 21, 2013 (M&C G-17901, Resolution No. 4209-05-2013). All other Tax Abatement Agreements are
governed by the City's General Tax Abatement Policy, which was adopted on June 12, 2012 (M&C G-
17617, Resolution No. 4096-06-2012). Both the General Tax Abatement Policy and the Neighborhood
Empowerment Zone Tax Abatement Policy require that any multi-family rental residential developments or
mixed-use developments that include a multi-family rental residential component must have a percentage
of the total residential units set aside exclusively for lease to qualifying households whose adjusted
incomes do not exceed the then-current 80 percent income limits established by the United States
Department of Housing and Urban Development (HUD) for the Fort Worth-Arlington HUD Metro FMR Area
at rents that are affordable to such households, as defined by HUD. Under the General Tax Abatement
Logname: 17TAP01ICIESAMEN:D-.R Page 1 of 2
Policy, the percentage of affordable units is negotiated between the City and the developer. Under the
Neighborhood Tax Abatement Policy, at least 20 percent of the total number of unite must be affordable,
although the City Council may waive or reduce this requirement.
Staff recommends two amendments to both Policies, First, both Policies would require that at |aout ten
percent of all units in the development be yet aside exclusively for lease to qualifying households whose
adjusted incomes do not exceed the then-current 80 percent income levels established by HUD for the
Fort Worth-Arlington HUD Metro FK8R Area and that at least another ten percent of all unite in the
development be not aside for lease to qualifying households whose adjusted incomes do not exceed the
then-current 60 percent income levels established by HUO, both at rents that are affordable to those
households.
Second. both Policies would aUuvv a deve|oper, with the consent of the City Council in its sole discretion,
to pay the Fort Worth Housing Finance Corporation the sum of two-hundred dollars ($200.00) per nenbs|
residential unit in the deve|npment, annually for the bann of the Tax Abatement Agreement in lieu of
committing to the actual affordable housing set-aside described above. The Fort Worth Housing Finance
Corporation is a housing finance corporation created pursuant to authorization by the City Council to
assist in the financing of the costs of residential development and ownership for citizens of decent, safe
and sanitary housing at affordable prices. Funds received from these proposed alternative payments will
be deposited into a fund to be administered by the Fort Worth Housing Finance Corporation for the
development or renovation of low and moderate income housing.
Once the developer makes be naQuest. Staff would review the request and the multi-family project with
Oh/ Council before negotiating the final incentive agreement, The City Council would make the final
determination as to whether the payment to the Fort Worth Housing Finance Corporation would be
permitted in lieu of the developer's making the actual affordable housing set-aside for the development.
State law requires a vote of 3/4 of the members of the City Council (7 votes) in order to amend a tax
abatement policy, Once adopt*d, the proposed amendments tothe General Tax Abatement Policy and
the Neighborhood Empowerment Zone Tax Abatement Policy will be effective immediately.
FISCAL INFORMATION I CERTIFICATION:
The Financial Management Services Director certifies that this action will not increase the total
appropriations of City funds.
FUND CENTERS:TO Fund/Account/Centers FROM Fund/Account/Centers
CERTIFICATIONS:Submitted for Cily Manager's Office y-
Fernando Costa (8122)
Originating Department Head: JayChapm (5804)
RobertSturno (212-2663)
Additional Information Contact: Ana Alvarado (212-2680)
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