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HomeMy WebLinkAbout2014/05/06-Minutes-HEDC CITY OF FORT WORTH, TEXAS HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE May 6, 201.4 Present• Committee Member Joel Bums, Chairman Committee Member Danny Scarth, Vice Chairman Committee Member Betsy Price Committee Member Salvador Espino Committee Member Kelly Allen Gray Committee Member W. B. "Zim" Zimmerman Committee Member Jungus Jordan Committee Member Dennis Shingleton Committee Member Gyna Bivens City Staff: Fernando Costa, Assistant City Manager Peter Vaky, Deputy City Attorney Mary J. Kayser, City Secretary Jay Chapa, Housing and Economic Development Director Cynthia Garcia, Assistant Director, Housing & Economic Development Department Other City Staff in Attendance: Tom Higgins, City Manager LeAnn Guzman, Sr. Assistant City Attorney 1. Call to Order—Joel Burns, Chair With a quorum of the committee members present, Chairman Joel Bums called the meeting of the Fort Worth Housing and Economic Development Committee to order at 1:03 pm, on Tuesday, May 6, 2014, in the Pre-Council Chamber of the Fort Worth City Hall, 1000 Throckmorton Street, Fort Worth, Texas 76102. 2. Approval of Minutes from the Meeting Held on April 1, 2014 — Joel Burns, Chair Motion was made by Committee Member Bivens and second by Committee Member Shingletort to approve the minutes of the March 4, 2014, Fort Worth Housing and Economic Development Committee meeting. Motion passed 9-0. 3. Executive Session - The Housing and Economic Development Committee will conduct a closed meeting to: • Seek the advice of its attorneys concerning the following items that are exempt from public disclosure under Article X, Section 9 of the Texas State Bar Rules, as authorized by section 551.071 of the Texas Government Code: legal issues related to any current agenda items; and CITY OF FORT WORTH, TEXAS HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE May 6, 2014 Page 2 of 7 • Discuss the purchase, sale, lease or value of real property, as authorized by Section 551.072 of the Texas Government Code. Deliberation in an open meeting would have a detrimental effect on the position of the City in negotiations with a third party; and • Discuss or deliberate negotiations relating to any economic development negotiations, as authorized by Section 551.087 of the Texas Government Code. There was no need for Executive Session. 4. Written Reports —Jay Chapa, Director, Housing and Economic Development Department • Memo on Tax Abatement Policy Renewal • Memo on Proposed Amendment to Economic Development Program Agreement with Wal-Mart to Extend the Construction Completion Deadline • Memo on Revisions to Cowtown Brush-Up Income Qualification Policy There were no questions on the written reports. 5. Presentation on the Community Development Council's Recommended Action Items for the Analysis of Impediments to Fair Housing Choices for the City of Fort Worth --- Cynthia Garcia, Assistant Director, Housing and Economic Development Department Ms. Garcia presented the Community Development Council's Recommended Actions Items for the Analysis of Impediments to Fair Housing Choices for the City of Fort Worth. Ms. Garcia noted that entitlement jurisdictions must certify that they are affirmatively furthering fair housing as a condition of receiving federal funds from HUD. The City must conduct an Analysis of Impediments every three to five years; take action if impediments are found; report on the actions taken and maintain records of actions taken. Impediments to fair housing choice are actions, omissions or decisions which restrict housing choices because of protected class status. The Corrimunity Development Council made the following recommendations: Private Sector Impediment 1: Discriminatory terms, conditions, privileges services in rental market Action & Measurement: • Increase education to residents and landlords regarding fair housing and conduct testing and enforcement activities CDC Recommendation: • Collaborate with the Apartment Association and the Human Relations Commission to conduct additional education about fair housing • Solicit entities to conduct the testing and refer any finding to the Human Relations Commission CITY OF FORT WORTH, TEXAS HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE May 6, 2014 Page 3 of 7 Impediment 2: Discriminatory patterns in home loan purchase denials Action & Measurement: • Increase credit counseling and home purchasing training for home buyers CDC Recommendation: • Work with Housing Counseling organizations to conduct additional education and credit counseling to educate homebuyers Impediment 3: Discriminatory patterns in predatory lending (higher subprime loans among Black, Hispanic and American Indian applicants) Action & Measureable Objective: • Increase credit counseling and home purchasing training for home buyers CDC Recommendation: • Work with Housing Counseling organizations to conduct additional education and credit counseling Impediment 4: Failure to make reasonable accommodation or modification Action and Measurement: • Increase training for home builders regarding reasonable accommodation • Increase testing and enforcement activities • Consider changes to the building code and an audit program CDC Recommendation: • Meet with Planning and Development and the Development Advisory Committee regarding potential changes to the Building Code o Staff to meet with the Greater Fort Worth Builder's Association to provide training on reasonable accommodation and discuss potential changes to the Building Code o Solicit entities to conduct the testing and refer any finding to the Human Relations Commission Impediment 5: Missed Fair Housing Training Opportunities Action and Measurement: • Conduct outreach to private sector on Fair Housing Training CDC Recommendation: Collaborate with the Human Relations Commission and the City's Neighborhood Office to conduct additional education Public Sector Impediment I: Getting variances for reasonable accommodation appears to be difficult Action and Measurement : • Identify variance applicants to identify barriers in the variance process • Propose changes to overcome identified barriers CDC Recorm-nendation: • Work with Planning and Development to identify applicants and HED will conduct the audit • Work with the Mayor's Committee on Persons with Disabilities to identify barriers CITY OF FORT WORTH, TEXAS HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE May 6, 2014 Page 4 of 7 Impediment 2: Overconcentration of Vouchers, Assisted Housing and lower-income housing in selected areas of City —Action and Measurement: • Identify criteria to minimize overconcentration of vouchers and assisted housing • Increase education with landlords regarding Housing Choice Vouchers • Determine whether it is possible to pay a higher amount for certain "certified" vouchers • Meet with The T on Bus routes —CDC Recommendation: • Develop recommended policy to be presented to the HED Committee in August • Collaborate with the Housing the Authority and the Apartment Association to identify additional landlords and provide education • Investigate the availability of additional funds to create the higher paying vouchers • Joint meeting with the Council and The T to discuss connections between low income areas and employment areas Impediment 3: Transit System is not well designed for the residents residing in lower income areas to gain good access to areas with better opportunities —Action and Measurement: • Meet with The T to discuss service to lower income areas — CDC Recommendation: • Staff to schedule joint meeting with Council and The T to explore options to provide additional service to low income areas and employment areas Impediment 4: Lack of understanding of fair housing and affirmatively furthering fair housing —Action and Measurement • Conduct outreach and education to public regarding Fair Housing —CDC Recommendation: • Staff to collaborate with the Human Relations Commission and the City's Neighborhood Office to conduct additional education Impediment 5: Discussion on additional protections for source of income and age. —Action and Measurement: • Discussion of adding additional protections pertaining to "source of income" and "age"to City law — CDC Recommendation: • Discuss the additional protections with the Human Relations Commission It was noted that the committee wanted follow up on any items that were done wrong but they also noted that they did not want the impression that there was a long laundry list of specific problems, these were more general in nature. CITY OF FORT WORTH, TEXAS HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE May 6, 2014 Page 5 of 7 6. Presentation on Proposed Amendments to Economic Development Incentives Policies in Regard to the Promotion of Affordable Housing—Jay Chapa, Director, Housing and Economic Development Department Mr. Chapa reviewed the current tax abatement policies: • The Tax Abatement Policy and the Neighborhood Empowerment Zone Tax Abatement Policy require a 20% set aside of units for persons who earn less than 80% AMI — Current practice is to require 10% at 80% AMI and 10% at 60% AMI • This 20% can be amended or waived on a project by project basis Proposed Change: • Proposed Change to allow an Option in addition to the 20% set aside: Option • Developer would pay $200 for each unit in the development for each year of the incentive agreement •... Developer pays the funds prior to receiving the annual abatement. •... Total annual amount deposited directly into the Housing Trust Fund to be administered by the HFC Council will on a case by case basis approve use of the $200 per unit option • Purpose of funds would be for HFC to fund affordable housing developments with 30% or below set aside units • No reduction in the number of the units would be allowed if the 20 set aside is recommended • New policy would specifically require 10% at 80% AMI and 10% at 60% AMI in order to meet 20% units requirement Proposed Funding Alternatives for Fort Worth Housing Finance Corp. • Partner with owner or investors of existing multifamily complexes for rehabilitation • Partner with developers of new multifamily projects in areas with too few existing affordable units Goals: 1. Provide a funding source for an incentive to produce more affordable units at 30% or below AMI 2. Reduce concentration of existing affordable housing and promote dispersion of affordable housing as goal above is achieved CITY OF FORT WORTH, TEXAS HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE May 6, 2014 Page 6 of 7 Rehabilitation of Existing Housing • Existing multifamily developments in need of upgrades and repairs that have affordable rents not due to original financing: —Age of property —High vacancy rate —Property conditions • Determine if there is surplus or deficit of affordable housing in area based on current market rents (1/2 mile radius) —If Surplus: Improve facility overall to promote market rent increase, potentially reduce the total amount of units but require 30% AMI set aside as condition for funds —If Deficit: Require 30% AMI set aside without additional conditions other than affordability time period • Analyze projects on case by case basis New Construction • Project seeking City financial assistance on new multifamily units • Determine if there is surplus or deficit of affordable housing in area based on current market rents (1/2 mile radius) —If Surplus: Require 30% AMI set aside based on financial ability of the project, with no other conditions in order to receive HFC funds (increase market rents) —If Deficit: Require 30% AMI set aside for HFC funds, plus potential set aside at higher affordable rents tied to a city based incentive • Analyze projects on case by case basis Proposed Policy Benefits • Proposed policy allows for: —Council consensus to be received prior for developments to utilize the alternative to the set- aside requirement —More flexibility for City and HFC to develop both affordable and market housing to respond to market conditions and needs • Provides for ability to grant an incentive to a housing development in an area with a concentration of affordable housing and not require affordable units directly in the development • Provides a vehicle in the HFC to incent projects to include affordable housing even if no financing gap exists or not in a NEZ Staff recommends approval of the M&C, as amended, to amend the City's Tax Abatement Policy and the Neighborhood Empowerment Zone Tax Abatement Policies to require either the 20% affordable housing set aside or a $200 per unit per year payment (reduction of incentive) to be utilized for the development of affordable housing by the Fort Worth Housing Finance Corporation CITY OF FORT WORTH, TEXAS HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE May 6,2014 Page 7 of 7 7. Requests for Future Agenda Items Joint meeting between the Housing and Economic Development Committee and the Fort Worth Housing Authority. 8. Date of Next Regular Meeting: June 3, 2014 9. Adjourn — Joel Bums, Chairman With no fin-ther presentations or discussions, Chairman Bums adjourned the regular meeting of the Housing and Economic Development Committee at 1:41 pin, on Tuesday, May 6, 2014. These minutes approved by the Housing and Economic Development Committee on the 3rd day of June, 2014. APPROVED: Minutes Prepared by and, hest: el Burns J Mary J. Kayear, pity See .6o;ary