On September 23, 2014, the City Council authorized the direct sale of 21 lots and the allocation of $1,300,000.00 of HOME Investment Partnerships Program (HOME) grant funds from the U.S. Department of Housing and Urban Development (HUD) to the Fort Worth Housing Finance Corporation (FWHFC) for the Hardy Street Single Family Infill Development (M&C C-27008). On April 14, 2015, the City Council authorized the assignment of the HOME contracts and the Purchase and Sale Agreement for the lots from FWHFC to Tarrant County Housing Partnership, Inc. (TCHP), a Community Housing Development Organization (CHDO) (M&C C-27264). The purpose of the assignment was to assist the City in meeting its CHDO commitment and spending goals with HUD. On May 19, 2015, the City Council authorized an additional $310,000.00 of HOME funds to TCHP to complete two more houses (M&C C-27295), and on August 4, 2015, the City Council authorized an additional $643,603.00 of HOME funds to complete Phase I of the project (M&C G-18521). On October 18, 2016, the City Council authorized an additional $600,000.00 of HOME funds to construct six more houses for Phase II for a total project amount of $2,853,603.00 (M&C C-27967).
TCHP, now known as Housing Channel, was required by a change in the HOME regulations to obtain a commercial loan for a portion of the construction costs of the Phase II houses. This resulted in a remaining balance of $745,889.30 of HOME funds of which $205,000.00 is projected to be unused at the end of the project. (The unused $205,000.00 of HOME funds has been recommended to be reallocated for use on other eligible projects in a separate Mayor and Council Communication).
Housing Channel has completed all 15 houses from Phase I and Phase II of the project. Ten houses have been sold and the remaining five are under contract.
Staff recommends the reallocation of the HOME funds from Phase II to Phase III of the Hardy Street Single Family Infill Development in order to complete the project. The completion of the project will allow the City to meet its CHDO commitment, expenditure and spending goals with HUD. The HOME funds may be used for any eligible costs related to the development in accordance with the HOME regulations. The purpose of the project is to benefit low and moderate-income citizens by providing them with quality, accessible, affordable housing. The Action Plan funding years may vary and be substituted based on the principle of First In, First Out in order to expend oldest grant funds first.
The Hardy Street Single Family Infill Development is located in COUNCIL DISTRICT 2, Mapsco 48Z.