City Council awarded grant funds and contracts to Tarrant County Housing Partnership, Inc. (TCHP), now known as Housing Channel, Inc., for the acquisition and redevelopment of the Beaty Street Apartments located in the 5500 block of Beaty Street just north of East Lancaster Avenue. City Council approved the following United States Department of Housing and Urban Development (HUD) grant funding for the project: $1,699,755.00 in Neighborhood Stabilization Program funds (M&Cs C-24344 and C-24455) and $1,000,000.00 in HOME Investment Partnerships Program (HOME) Community Housing Development Organization (CHDO) grant funds (M&C C-25072). City executed HOME CHDO contract amendments in the additional amount of $64,526.51 to assist TCHP with its construction funding gap. On December 10, 2013, City Council approved an additional $265,000.00 of HOME CHDO Set-Aside Funds to meet HUD's federal Uniform Relocation Act (URA) requirements (M&C C-26586). On June 14, 2016, City Council approved an additional $277,075.00 of HOME funds for further rehabilitation of the project (M&C G-18760). To date, the City has allocated a total of $1,606,601.51 in HOME funds for the project, and this M&C will allocate an additional $1,319,708.93 in HOME funds for a total of $2,926,310.44 for the project. The original scope of the project consisted of the acquisition and rehabilitation of two multi-family buildings and conversion of 73 units to 67 units. One smaller building was converted to a community and leasing office. The additional HOME funds will be used to refinance the first lien loan from Wells Fargo Bank in an approximate amount of $415,000.00 and provide additional funds for rehabilitation of remaining buildings to meet HUD property standards as well as other eligible development costs. After the refinance, the City will be the first lien lender for this property with a deferred, forgivable HOME loan. This M&C will also authorize the extension of the contract term for two additional one year periods. This allocation of funds will ensure that the City meets HUD's CHDO Commitment deadline of November 30, 2017.
Housing Channel, Inc., intends to set aside 25 units in the project as Permanent Supportive Housing (PSH) units which will assist the City in meeting its goal of ending chronic homelessness under its Directions Home program. On November 7, 2017, the Fort Worth Housing Finance Corporation (FWHFC) approved funding in the amount of $75,000.00 to pay for the supportive services for the 25 PSH units. Staff recommends that the City waive fees estimated at $40,000.00 related to the rehabilitation of the project that would otherwise be charged by the City including: (i) all building permit, plan review, inspection and re-inspection fees; (ii) all zoning fees; (iii) all temporary encroachment fees; (iv) all platting fees; (v) all fire, sprinkler and alarm permit fees; and (vi) water, wastewater, and sewer connection/tap fees. All other fees charged or assessed by the City, in accordance with applicable federal, state and local laws, ordinances, rules and regulations, including, but not limited to transportation impact fees and water and sewer impact fees are not waived and shall be fully payable by the Developer. Staff recommends the waiver of the above listed fees as an appropriate tool that incentivizes and promotes private financial participation with the City in its pursuit of the goals in the Comprehensive Plan and the Annual Action plan for creating quality, accessible, affordable housing for low to moderate-income persons. By maximizing the fiscal efficiency of the financial participation by a private developer, the fee waivers will serve the public purpose of quality, accessible, affordable housing for low and moderate-income families and individuals as well as assists the City in meeting its HOME Match obligation for the City's HOME Program. The provisions of the HOME contract establish adequate controls to ensure that the public purpose associated with these fee waivers is carried out.
The expenditure of the additional 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; and
3. Authorization to use grant funds from HUD.
All other terms of City Secretary Contract No. 42289 for the HOME funds will remain the same.
The development will benefit low and moderate-income City citizens by providing them with quality, accessible, affordable housing. A public comment period on the Substantial Amendment to the 2014-2015 and 2016-2017 Action Plans, including the intent to change use and expend HOME funds, was held September 29, 2017, to October 30, 2017. An additional comment period on the Substantial Amendment to the 2013-2018 Consolidated Plan began on October 22, 2017, and will be completed on November 20, 2017. Any comments are maintained by the Neighborhood Services Department in accordance with federal regulations. Based on any comments received, the City Manager or his designee will determine if the project will move forward.
This project is located in COUNCIL DISTRICT 5.
|