M&C Review


COUNCIL ACTION:  Approved on 2/13/2018 - Resolution Nos. 4906-02-2018, 4907-02-2018, & 4908-02-2018

DATE: 2/13/2018 REFERENCE NO.: G-19229 LOG NAME: 192018_RESOLUTIONS_9PERCENT_HTC
CODE: G TYPE: NON-CONSENT PUBLIC HEARING: NO
SUBJECT:  

Consider and Adopt Resolutions of Support for 2018 Competitive Housing Tax Credit Applications, Approve Commitments of Development Funding, Determine Which Developments Contribute More Than Any Other to the City's Concerted Revitalization Efforts, and Make Related Determinations (COUNCIL DISTRICTS 4 and 8)


RECOMMENDATION:

It is recommended that the City Council:

1. Acknowledge the receipt of requests for City support for applications to the Texas Department of Housing and Community Affairs for 2018 Competitive (9%) Housing Tax Credits from various developers;

2. Consider and adopt the attached Resolutions of Support for 2018 applications for Competitive (9%) Housing Tax Credits for the three proposed multifamily housing developments listed below to be located at various sites throughout the City;

3. Approve fee waivers in an amount not to exceed $2,500.00 for each of the developments listed below as the City's commitment of development funding and find that such fee waivers serve the public purpose of providing quality, accessible, affordable housing for low to moderate income households, in accordance with the City's Comprehensive Plan and Annual Action Plan, and find that adequate controls are in place through the Neighborhood Services Department to carry out such public purpose;

4. Determine that Columbia Renaissance Square II Senior and Palladium Fain Street are the developments that contribute more than any other to the City's concerted revitalization efforts in the Neighborhood Empowerment Zones in which they are located; and

5. Determine that the Columbia Renaissance Square II Senior development is specifically allowed to be located in a census tract that has more than 20 percent Housing Tax Credit units per total households and that the development is consistent with the City's obligation to affirmatively further fair housing.

 
DISCUSSION:

On November 7, 2017, the City Council adopted a policy for City support of applications to the Texas Department of Housing and Community Affairs (TDHCA) for Noncompetitive (4%) and Competitive (9%) Housing Tax Credits and for City commitments of development funding (M&C G-19149). This year the City received five applications from developers requesting Resolutions of Support for proposed tax credit developments in Fort Worth. Staff has reviewed the applications for consistency with the City's policy.

Two applications, The Somerset at Golden Triangle (4315 Golden Triangle Boulevard, Council District 7) and The Terraces at Ohio Garden (4001 Ohio Garden Road, Council District 2) were withdrawn by the developer, Atlantic Pacific Communities.

Resolutions of Support:
Staff requests that the City Council consider and adopt Resolutions of Support for the following developments as they have met the unit set-aside criteria and notification requirements outlined in the policy. Additionally, all of these developments are located in close proximity to jobs, retail, transit and services.

Avenue at Sycamore Park to be developed by GFH Avenue at Sycamore Park, Ltd., an affiliate of Lakewood Property Management, LLC, to be located at 2601 Avenue J (Council District 8). The site for the proposed development is zoned A-5, proposed to be changed to PD - Planned Development for all uses in "D" High Density Multifamily.

Columbia Renaissance Square II Senior to be developed by Columbia Renaissance Square II, L.P., an affiliate of New Columbia Residential, LLC, to be located at the northwest corner of Moresby Street and W.G. Daniels Drive (Council District 8). The site for the proposed development is zoned PD - Planned Development for all uses in "D" High Density Multifamily.

Palladium Fain Street to be developed by Palladium Fain Street, Ltd., an affiliate of Palladium USA, to be located at the north side of Fain Street and west of Kings Highway (Council District 4)  The site for the proposed development is zoned E - Neighborhood Commercial, proposed to be changed to PD - Planned Development for all uses in "D" High Density Multifamily.

Commitment of Development Funding:
The policy also allows a commitment of development funding at City Council discretion. This commitment of development funding qualifies tax credit applicants for an additional point and increases the competitiveness of their applications to TDHCA. Staff requests that City Council approve commitments of development funding in the form of fee waivers in an amount not to exceed $2,500.00 for each development recommended for a Resolution of Support. The fee waiver amount may be applied to (a) building permit related fees (including Plans Review, Inspections and Re−inspection Fees); (b) Plat/Replat Application Fees; (c) Board of Adjustment Application Fees; (d) Demolition Fees; (e) Structure Moving Fees; (f) Zoning Fees; (g) Street/Alley and Utility Easement Vacation Application Fees; (h) Temporary Encroachment Fees; (i) Consent/Encroachment Agreement Application Fees; (j) Urban Forestry Application Fees; (k) Sign Permit Fees; (l) Community Facilities Agreement (CFA) Application Fees; and (m) Street Closure Fees.

Fee waivers will be conditioned upon the development receiving an allocation of Housing Tax Credits from TDHCA. The City's Neighborhood Services Department will be responsible for verifying that the public purpose for the fee waivers is carried out.

Concerted Revitalization Plan:
TDHCA rules state that an application may receive additional points if the proposed development is identified in a resolution as contributing more than any other development to a city or county's concerted revitalization efforts. The City has created Neighborhood Empowerment Zones (NEZ) to promote affordable housing and economic development in the designated zone. All of the City's NEZs are included in the City's annual Comprehensive Plan as part of its goal of revitalizing central city neighborhoods and commercial districts (2017 Comprehensive Plan, Part III, Chapter 10: Economic Development). The Columbia Renaissance Square II Senior development is located in the Berry Hill-Mason Heights NEZ created by the City Council in 2007 along with a strategic plan for the area. The Palladium Fain Street development is located in the Riverside NEZ created by City Council in 2003.

Staff determined that these developments will significantly contribute to the City's ongoing revitalization efforts in each NEZ since the recommended developments are new affordable housing for households earning at or below 80% of Area Median Income. In addition, the increased density of this new housing will support the new retail, office and other housing development located or being developed in each NEZ. Staff recommends that the City Council adopt the attached Resolutions determining that the Columbia Renaissance Square II Senior and Palladium Fain Street developments contribute more than any other developments to the City's concerted revitalization efforts underway in the NEZs in which they are located.

Limitations on Developments in Certain Census Tracts:
TDHCA rules state that if a proposed development will be located in a census tract with more than 20 percent Housing Tax Credit units per total households as established by the five year American Community Survey, it will be ineligible for tax credits unless the governing body of the jurisdiction votes to specifically allow it and also submits a Resolution to TDHCA stating that the proposed development is consistent with the jurisdiction's federal obligation to affirmatively further fair housing.

The Columbia Renaissance Square II Senior development will be located in a census tract in which more than 20 percent of the total households are Housing Tax Credit units. Staff recommends that City Council vote to specifically allow this development and approve the additional determination in the attached Resolution of Support that it is consistent with the City's obligation to affirmatively further fair housing.

All of these proposed developments are subject to all applicable City laws, ordinances, policies and procedures including those pertaining to zoning changes and annexation. Councilmember support for purposes of these Resolutions does not constitute approval of any required zoning change or annexation.

The proposed developments are located in COUNCIL DISTRICTS 4 and 8.

This M&C does not request approval of a contract with a business entity.

 
FISCAL INFORMATION/CERTIFICATION:

The Director of Finance certifies that this action will have no material effect on the City's Fiscal Year 2018 Budget. Upon approval, fees will be waived up to $2,500.00 for each development to assist in facilitating the goals of the City's Comprehensive Plan and Annual Action Plan.

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Submitted for City Manager's Office by:
Fernando Costa (6122)
Originating Department Head:
Aubrey Thagard (8187)
Additional Information Contact:
Avis Chaisson (6342)
Chad LaRoque (2661)

 
 
ATTACHMENTS
  COLUMBIA II RESOLUTION JW CL VG(4).docx
  COLUMBIAR_MAP_FINAL.pdf
  Palladium_ResolutionOfSupport CL VG (4).docx
  PalladiumFainSt.pdf
  SYCAMORE PARK ROS Red CL VG(5).docx
  TheAvenueSycamorePark.pdf