The purpose of this policy is to provide criteria for affordable housing developers requesting a resolution of 'support' or 'no objection' from the City Council to submit with their applications for 2017 Competitive (9%) Housing Tax Credits (9% HTC) to the Texas Department of Housing and Community Affairs (TDHCA). Each year TDHCA implements a Qualified Allocation Plan (QAP) which outlines the scoring criteria for 9% HTC applications. The 2017 QAP states that 9% HTC applications can receive 17 points for a Resolution of Support from the governing body of the municipality in which the development is sited. Resolutions of No Objection from the governing body are worth 14 points.
The 2017 QAP also provides that 9% HTC applications can receive one point for a commitment of development funding from a city or county in which the development is located. Documentation of this commitment must include a letter from a city or county official stating it will provide a loan, grant, reduced fees or contribution of other value for the benefit of the development. Once this letter is submitted to the TDHCA, it cannot be withdrawn.
The proposed policy was presented to the City's Housing and Neighborhood Services Committee on December 6, 2016. However, since the presentation to the City's Housing and Neighborhood Services Committee staff has made changes to the policy based on feedback received. Staff requests that the City Council consider the following policy for requests for Resolutions of Support or No Objection and commitments of development funding for 2017 applications for 9% HTCs:
Resolutions of Support.
1. The development will be given a Resolution of Support if a minimum of five percent of the total units are dedicated as market rate units and it has met one of the following:
(a) ten percent of the total units dedicated for Rental Assistance Demonstration units; or
(b) five percent of the total units dedicated for Permanent Supportive Housing units.
2. City Council may also consider giving a Resolution of Support to a development that does not meet the above criteria if it has evidence of a participation in the development by one of the following entities: Fort Worth Housing Finance Corporation, Tarrant County Housing Finance Corporation, Fort Worth Housing Solutions, City of Fort Worth, Tarrant County, or a City-certified Community Housing Development Organization. For the purposes of this policy, participation is defined as having an ownership interest in the development (directly or through a sole purpose entity); being the general partner of a partnership or member of a limited liability company that owns the development; providing financing for the development in the form of a grant, loan or bond issue; or some other equivalent form of substantive, long term involvement.
Resolutions of No Objection.
If a Resolution of Support is not granted, City Council may consider granting a Resolution of No Objection for the development.
Commitment of Development Funding.
City Council, at its discretion, may also choose to offer developments that qualify for a Resolution of Support a commitment of development funding in the form of a tax abatement and/or a partial or full waiver of development fees.
This policy affects all COUNCIL DISTRICTS.
This M&C does not request approval of a contract with a business entity.