HomeMy WebLinkAboutResolution 4422-03-2015 A Resolution
NO. 4422-03-2015
SUPPORTING A HOUSING TAX CREDIT APPLICATION FOR THE DEVELOPMENT OF
THE RESERVE AT QUEBEC APARTMENTS
WHEREAS, the City of Fort Worth's 2014 Comprehensive Plan is supportive of the
preservation, improvement, and development of quality, affordable, accessible rental and ownership
housing;
WHEREAS, the City of Fort Worth's 2013-2018 Consolidated Plan makes the development of
quality, affordable, accessible rental housing units for low income residents of the City a high priority;
WHEREAS, Reserve at QuebecLLC, an affiliate of the Miller-Valentine Group, has proposed
a multifamily rental housing development to be named the Reserve at Quebec Apartments, located
North of Northwest Centre Drive between Buda Lane and Quebec Streets, which will include affordable
and market rate units as well as permanent supportive housing units;
WHEREAS, Reserve at Quebec,LLC has advised the City that it intends to submit an
application to the Texas Department of Housing and Community Affairs for 2015 Non-Competitive
(4%)Housing Tax Credits to finance a portion of the costs of the development; and
WHEREAS, the City Council has approved a subordinate loan of$3,500,000.00 of the City's
HOME Investment Partnerships Program grant funds to the Reserve at Quebec, LLC, the partnership
that will own the project, to be used for a portion of the costs of the development and to show the City's
support.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH, TEXAS, THAT:
1. Notice of intent to file an application for Non-Competitive (4%) Housing Tax Credits for the
development of the Reserve at Quebec Apartments has been provided to the City Council by
Reserve at Quebec, LLC in accordance with the Texas Government Code.
2. The City Council has had sufficient opportunity to obtain a response from Reserve at
Quebec, LLC regarding any questions or concerns about the proposed development.
3. The City Council has held a hearing for the purpose of receiving public comment on the
proposed development.
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Resolution No.4422-03-2015
4. The City Council finds, after due consideration of the information provided by Reserve at
Quebec, LLC and any public comment on the proposed development, that the City Council
supports the application of Reserve at Quebec, LLC -to the Texas Department of Housing
and Community Affairs for 2015 Non-Competitive (4%) Housing Tax Credits for the
purpose of the development of the Reserve at Quebec Apartments.
Adopted this 3rd day of March, 2015.
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 3/3/2015 - Resolution No. 4422-03 4015
DATE: Tuesday, March 03, 2015 REFERENCE NO.: C-27220
LOG NAME: 17NS RESERVEATQUEBEC
SUBJECT:
Conduct a Public Hearing and Adopt Resolution Supporting an Application by Reserve at Quebec, LLC to
the Texas Department of Housing and Community Affairs for Non-Competitive (4%) Housing Tax Credits
for the Development of the Reserve at Quebec Apartments to be Located North of Northwest Centre Drive
Between Buda Lane and Quebec Streets, Authorize Change in Use and Expenditure of$3,500,000.00 in
HOME Investment Partnerships Program Grant Funds to the Reserve at Quebec, LLC in the Form of a
Subordinate Loan for the Reserve at Quebec Apartments, Authorize Execution of a Contract, Authorize
Substantial Amendments to the City's 2007-2008, 2008-2009, 2009-2010, 2010-2011, 2011-2012, 2012-
2013, 2013-2014 and 2014-2015 Action Plans and Substitution of Funding Years (COUNCIL DISTRICT 7)
RECOMMENDATION:
It is recommended that the City Council:
1. Conduct a Public Hearing to allow citizen comment on the application of Reserve at Quebec, LLC to
the Texas Department of Housing and Community Affairs for 2015 Non-Competitive (4%) Housing Tax
Credits for the proposed development of the Reserve at Quebec Apartments, a mixed income multi-family
rental complex to be located north of Northwest Centre Drive between Buda Lane and Quebec Streets;
2. Adopt the attached resolution supporting the application by Reserve at Quebec, LLC to the Texas
Department of Housing and Community Affairs for 2015 Non-Competitive (4%) Housing Tax Credits for
the development of the Reserve at Quebec Apartments;
3. Authorize substantial amendments to the City's 2007-2008, 2008-2009, 2009-2010, 2010-2011, 2011-
2012, 2012-2013, 2013-2014 and 2014-2015 Action Plans;
4. Authorize the City Manager or his designee to substitute funding years in order to meet United States
Department of Housing and Urban Development commitment, disbursement and expenditure deadlines;
5. Authorize the change in use and expenditure of$3,500,000.00 in prior and current years HOME
Investment Partnerships Program grant funds to the Reserve at Quebec, LLC in the form of a subordinate
loan for the development of the Reserve at Quebec Apartments;
6. Authorize the City Manager or his designee to execute a contract with the Reserve at Quebec, LLC for
the development for a five-year term beginning on the date of execution of the contract;
7. Authorize the City Manager or his designee to extend the contract for two one-year extensions if the
Reserve at Quebec, LLC requests an extension and such extension is necessary for completion of the
development; and
8. Authorize the City Manager, or his designee, to amend the contract if necessary to achieve project
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goals provided that the amendment is within the scope of the project and in compliance with City policies
and applicable laws and regulations governing the use of federal grant funds.
DISCUSSION:
MV Residential Development, LLC (MV) proposes to construct the Reserve at Quebec, a mixed income
multi-family rental development that will consist of up to 296 units on approximately 15 acres to be located
north of Northwest Centre Drive between Buda Lane and Quebec Street. Up to 32 of the units will be set
aside as permanent supportive housing for extremely low-income households, up to 16 units will be
market rate and the remaining units will be available to tenants earning at or below 80 percent of Area
Median Income. The amenities proposed for the development include a clubhouse, swimming pool and
walking/jogging paths.
On January 6, 2015, the Board of Directors of the Fort Worth Housing Finance Corporation (HFC)
approved an Agreement with MV to form the Reserve at Quebec, LLC, a Texas Limited Liability Company,
and single purpose entity that will construct, own and manage the Reserve at Quebec Apartments. The
HFC will form the Reserve at Quebec GP, LLC that will serve as managing member. Reserve at Quebec,
LLC will submit an application to the Texas Department of Housing and Community Affairs (TDHCA) for
2015 Non-Competitive (4%) Housing Tax Credits (4%HTC) as part of the financing of the costs of the
development. It is also applying to the Tarrant County Housing Finance Corporation for multi-family
bonds.
Public Hearing and Resolution:
TDHCA requires applicants for 4% HTC to provide a resolution of"no objection" (or of support) from the
governing body of the jurisdiction in which the proposed development will be sited. As part of the TDHCA
requirements, the governing body must also conduct a public hearing for citizens to provide comments on
the proposed development.
Following the close of the public hearing, Staff recommends that the City Council approve the attached
Resolution supporting the 2015 application for Non-Competitive (4%) Housing Tax Credits for the Reserve
at Quebec Apartments since the development will assist the City in fulfilling its goals under its
Consolidated Plan and Comprehensive Plan by supporting economic development and providing quality,
accessible, affordable housing to low to moderate-income City residents as well as permanent supportive
housing to very low-income residents.
HOME Contract and Loan:
Staff recommends a change in use and expenditure of$3,500,000.00 of the City's HOME Investment
Partnerships Program (HOME) grant funds in the form of a subordinate loan to the Reserve at Quebec,
LLC to be used for a portion of the acquisition and construction costs of the development. The HOME
funds may be used for any HOME-eligible cost for the development as provided in the contract.
Staff recommends the following contract and loan terms:
1. Contract term of five years commencing on the date of execution with two one-year extensions;
2. $1.5M of the loan funds to be repaid within 20 years of the date of the loan documents based on a 40
year amortization. Principal and interest at one percent or the Applicable Federal Rate, whichever is less,
shall be paid at least annually beginning no later than conversion, as defined in the loan documents. $2M
of the loan funds to be deferred and forgiven provided all HOME requirements and contract terms are met;
3. Designate HOME-assisted units according the HOME Regulations with a 20 year Affordability Period;
and
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4. Payment of the HOME funds and performance of the HOME requirements to be secured by a recorded
deed of trust.
The expenditure of HOME funds is conditioned upon the following:
1. Receipt of grant funds from the United States Department of Housing and Urban Development (HUD);
2. Satisfactory completion of an environmental review, pursuant to 24 CFR Part 58;
3. Authorization to use grant funds from HUD;
4. Equity, construction and permanent financing for the development acceptable to the City;
5. Award of tax credits by TDHCA;
6. Certificate of bond reservation by the Texas Bond Review Board; and
7. Closing on equity and all other financing for the development.
Action Plan funding years selected may vary and be substituted based on the Principle of First In, First
Out. The development will benefit low and very low-income City citizens by providing them with quality,
accessible, affordable housing. A public comment period on the change in use of these HOME funds was
held from January 15, 2015 to February 13, 2015. Any comments will be maintained by the Housing and
Economic Development Department, in accordance with federal regulations.
The development is located in COUNCIL DISTRICT 7.
FISCAL INFORMATION /CERTIFICATION:
The Fiscal Year 2015 budget included appropriations of$4,798,461.51 in the Grants Fund for this
purpose. As of January 29, 2015, the amount of$113,414.84 has been expended. Upon approval of this
recommendation, the Financial Management Services Director certifies that funds are available within the
existing appropriations for this expenditure.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
GR76 539120 005206181550 $533,894.82 GR76 539120 005206181070 $133.894.82
GR76 539120 005206271550 $276,210.59 GR76 539120 005206181360 $400.000.00
GR76 539120 017206351550 $323.789.41 GR76 539120 005206271150 $276.210.59
GR76 539120 017206461550 $94,271.43 GR76 539120 017206351150 $323.789.41
GR76 539120 017206531550 12,117.78 GR76 539120 017206461990 $94,271.43
GR76 539120 017206281550 $804,137.57 GR76 539120 017206531990 $2,117.78
GR76 539120 017206651550 $955.446.40 GR76 539120 017206281080 $600.000.00
GR76 539120 017206721550 $510,132.00 GR76 539120 017206281990 $204.137.57
GR76 539120 017206651980 $794.076.84
GR76 539120 017206651990 $161,369.56
GR76 539120 017206721990 $510.132.00
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CERTIFICATIONS:
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Cynthia Garcia (8187)
Cynthia Garcia (8187)
Additional Information Contact: Chad LaRoque (2661)
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