HomeMy WebLinkAboutOrdinance 21678-03-2015 Ordinance No. 21678-03-2015
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS
IN THE GRANTS FUND IN THE AMOUNT OF $545,271.26, FROM AVAILABLE FUNDS,
FOR THE DEVELOPMENT OF APARTMENTS TO BE LOCATED AT 904 E.
WEATHERFORD STREET; PROVIDING FOR A SEVERABILITY CLAUSE; MAKING
THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL
ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS:
SECTION 1.
That in addition to those amounts allocated to the various City departments for Fiscal Year 2014-2015 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the
Grants Fund in the amount of $545,271.26, from available funds, for the development of apartments to be
located at 904 E. Weatherford Street.
SECTION 2.
That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or void
for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way
impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining
provisions shall be and remain in full force and effect.
SECTION 3.
That this ordinance shall be cumulative of Ordinance No. 21457-09-2014 and all other ordinances and
appropriations amending the same except in those instances where the provisions of this ordinance are in
direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions of
said prior ordinances and appropriations are hereby expressly repealed.
SECTION 4.
This ordinance shall take effect upon adoption.
APPROVED AS TO FORM AND LEGALITY: CITY SECRETARY
Assistant City Attorney kdry J.'Kays
ADOPTED AND EFFECTIVE: March 3, 2015
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 3/3/2015 - Ordinance No. 21678-03-2015
DATE: Tuesday, March 03, 2015 REFERENCE NO.: C-27212
LOG NAME: 17NS 904 E WEATHERFORD
SUBJECT:
Authorize Change of Use and Expenditure in the Amount of$2,200,000.00 of Community Development
Block Grant Funds to the Fort Worth Housing Finance Corporation in the Form of a Forgivable Loan for the
Development of Apartments to be Located at 904 E. Weatherford Street, Authorize Execution of a
Conditional Commitment and a Contract, Authorize Substantial Amendment to the City's 2012-2013, 2013-
2014 and 2014-2015 Action Plans and Substitution of Funding Years, Authorize Transfer of Funds and
Adopt Appropriation Ordinance (COUNCIL DISTRICT 9)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize a substantial amendment to the City's 2012-2013, 2013-2014 and 2014-2015 Action Plans;
2. Authorize the substitution of current and prior funding years in order to meet commitment,
disbursement and expenditure deadlines for grant funds from the United States Department of Housing
and Urban Development;
3. Authorize a change in use and expenditure in the amount of$2,200,000.00 of prior and current year's
Community Development Block Grant funds to the Fort Worth Housing Finance Corporation in the form of
a forgivable loan for the development of a mixed income multifamily rental development to be located at
904 E. Weatherford Street;
4. Authorize the City Manager or his designee to execute a conditional commitment with the Fort Worth
Housing Finance Corporation for the development;
5. Authorize the City Manager or his designee to execute a contract with the Fort Worth Housing Finance
Corporation for a three year term beginning on the date of execution of the contract;
6. Authorize the City Manager or his designee to extend the conditional commitment or the contract for up
to one year if the Fort Worth Housing Finance Corporation requests an extension and such extension is
necessary to complete the development;
7. Authorize the City Manager or his designee to amend the conditional commitment or the contract if
necessary to achieve project 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;
8. Authorize transfer of$545,271.26 from the General Fund - HUD Restricted Funds to the Grants Fund;
and
Logname: 17NS 904 E_WEATHERFORD Page 1 of 3
9. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Grants Fund in the amount of$545,271.26.
DISCUSSION:
The Fort Worth Housing Finance Corporation has requested a loan in the amount of$2,200,000.00 of
Community Development Block Grant (CDBG) funds for a portion of the costs to acquire the land for a
mixed income multifamily rental development to be located at 904 E. Weatherford Street. The
development will consist of approximately 120 units, 51 percent of which will be affordable and available
for rent to households earning at or below 80 percent of Area Median Income. Ten of the affordable units
will be permanent supportive housing units available to low and very low-income tenants.
The land, currently owned by the Fort Worth Transportation Authority, will be purchased for fair market
value set by an appraisal dated October 16, 2014 at $2,142,000.00 with the additional $58,000.00 to be
used as needed for closing costs.
On May 13, 2014, the City Council approved a repayment to the United States Department of Housing
and Urban Development (HUD) to close the Evans and Rosedale Economic Development Activity (M&C
L-15682). The City and HUD agreed that the repaid funds would be placed in a restricted account until a
CDBG-eligible activity was identified. A liability was booked in the General Fund for$1,445,271.26, the
amount of the repayment to HUD. Upon approval by the City Council of this M&C, $545,271.26 of the
liability will be released and the funds will be available to be used for this project.
Staff recommends a change in use and expenditure of$2,200,000.00 of the City's CDBG funds in the
form of a forgivable loan to the Fort Worth Housing Finance Corporation to be used for acquisition and
closing costs for the land for the development.
Staff recommends the following contract and loan terms:
1. Contract term of three years beginning on the date of execution with up to a one year extension;
2. Loan term of 20 years commencing on the date of the loan documents. Loan to be forgiven at the
end of the loan term provided that all CDBG and contract terms are met; and
3. Performance of the contract and CDBG requirements to be secured by a recorded deed of trust.
The expenditure of the CDBG funds is conditioned upon the following:
1. Receipt of grant funds from HUD;
2. Satisfactory completion of an environmental review pursuant to 24 CFR Part 58;
3. Receipt of authorization to use grant funds from HUD; and
4. Construction and permanent financing for the development to be acceptable to City.
Action Plan funding years selected may vary and be substituted based on the Principle of First In, First
Out, in order to expend oldest grant funds first. 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 and intent to expend prior years' CDBG funds for this development was held from
January 9, 2015 to February 9, 2015. Any comments are maintained by the Housing and Economic
Logname: 17NS 904_E_WEATHERFORD Page 2 of 3
Development Department, in accordance with federal regulations.
The development is located in COUNCIL DISTRICT 9.
FISCAL INFORMATION / CERTIFICATION:
The Fiscal Year 2015 budget included appropriations of$2,224,687.63 in the Grants Fund for Community
Development projects. As of January 29, 2015, the funds have not been expended. A liability was
booked in the General Fund for$545,271.26 for this expense and upon approval of this Mayor and
Council Communication, the liability will be released. Upon approval of this recommendation, the
Financial Management Services Director certifies that funds will be available and can be reallocated for
the development of the multifamily project to be located at 904 E. Weatherford.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
1 &3) GR76 539120 017206280160 $1,160,175.16 3) GR76 539120 017206280990 $1,160,175.16
1 & 3) GR76 539120 017206650160 $494,553.58 3) GR76 539120 017206650990 $494,553.58
1&3&8&9) GR76 $545,271.26 8) GG01 203000 0000000 $545,271.26
539120 017206716160
8 & 9) GR76 472001 017206716160 $545,271.26
CERTIFICATIONS:
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Cynthia Garcia (8187)
Additional Information Contact: Ana Alvarado (7536)
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