M&C Review


COUNCIL ACTION:  Approved on 2/12/2019 - Resolution Nos. 5053-02-2019, 5054-02-2019, 5055-02-2019, 5056-02-2019, 5057-02-2019, 5058-02-2019, 5059-02-2019, 5060-02-2019 & 5061-02-2019

DATE: 2/12/2019 REFERENCE NO.: G-19489 LOG NAME: 192019_RESOLUTIONS_9PERCENT_HTC
CODE: G TYPE: NON-CONSENT PUBLIC HEARING: NO
SUBJECT:  

Consider and Adopt Resolutions of Support and Resolutions of No Objection for 2019 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, 6, 7, 8 and 9)


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 2019 Competitive (9%) Housing Tax Credits from various developers;

2. Consider and adopt the attached Resolutions of Support and Resolutions of No Objection for 2019 applications for Competitive (9%) Housing Tax Credits for the 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 that receive a Resolution of Support as the City's commitment of development funding, find that the fee waivers for these developments 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 Palladium Fain Street, Cielo Place, Sunset at Fash Place, and Avenue at Sycamore Park are the developments that contribute more than any other to the City's concerted revitalization efforts either in an Urban Village, a Neighborhood Empowerment Zone, or a distinct area within a Neighborhood Empowerment Zone with a Strategic Plan; and

5. Determine that the Columbia Renaissance Square III and Southside at Broadway developments are specifically allowed to be located in census tracts that have more than 20 percent Housing Tax Credit units per total households and that these developments are consistent with the City's obligation to affirmatively further fair housing.

 
DISCUSSION:


On November 13, 2018, 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-19421). On December 11, 2018, the City Council amended the policy to correct the set aside of Permanent Supportive Housing (PSH) units from ten percent to five percent of the total units in 9% tax credit projects (M&C G-19435). This year the City received eleven applications from developers requesting Resolutions of Support for proposed 9% tax credit developments in Fort Worth, but one application has been withdrawn by the developer. Staff has reviewed the applications for consistency with the City's policy.

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 City's policy. Additionally, all of these developments are located in close proximity to jobs, retail, transit and services. None of these developments are tax exempt.

Resolutions of Support, Local Development Funding, Concerted Revitalization Plan:
The following developments are also recommended to receive local Commitments of Development Funding and are the ones that contribute more than any other to the City's Concerted Revitalization Plans:

                Palladium Fain Street to be developed by Palladium Fain Street, Ltd., an affiliate of Palladium
                USA International, Inc. to be located at 4001 Fain Street (Council District 4). The site for the
                proposed development is zoned "PD" – Planned Development for all uses in "D" High Density
                Multifamily.

                Cielo Place to be developed by Cielo Place, LLC, an affiliate of Saigebrook Development, LLC
                and O-SDA Industries, LLC, to be located at 3101 Race Street (Council District 9). The site for
                the proposed development is zoned "MU-1" – Low Intensity Mixed-Use and "CF" – Community
                Facilities. Developer is currently working with City to determine if a zoning change is required.

                Sunset at Fash Place to be developed by Sunset at Fash Place, LLC, an affiliate of Saigebrook
                Development, LLC and O-SDA Industries, LLC, to be located at 2504 Oakland Boulevard
                (Council District 8). The site for the proposed development is zoned "CF" – Community Facilities
                and "A-10" – One Family, proposed to be changed to "PD" – Planned Development.

                Avenue at Sycamore Park to be developed by GFH Avenue at Sycamore Park, Ltd., an
                affiliate of Ground Floor Affordable Housing, LLC, to be located at 2601 Avenue J (Council
                District 8). The site for the proposed development is zoned "UR" – Urban Residential.
                The proposed development will not be tax exempt.

Resolution of Support and Local Development Funding:
The following developments are also recommended to receive local Commitments of Development Funding:

                Churchill at Golden Triangle Community to be developed by Churchill at Golden Triangle
                Community, L.P., an affiliate of Churchill Senior Residential, LLC, to be located in the
                11000 block of Metroport Way (Council District 7). The site for the proposed development
                is zoned "PD" – Planned Development for all uses in "D" High Density Multifamily.

                Everly Plaza to be developed by Everly Plaza, LLC, an affiliate of Saigebrook Development,
                LLC and O-SDA Industries, LLC, to be located at 1801 8th Avenue (Council District 9). The
                site for the proposed development is zoned "NS" – Near Southside.

Resolutions of No Objection:
Staff recommends that the City Council consider and adopt Resolutions of No Objection for the following developments as they have met the unit set aside criteria and notification requirements outlined in the policy. None of these developments are tax exempt.

                Residences at Fairmount to be developed by NDG Fairmount Housing Partners, LTD, an
                affiliate of The NuRock Companies, to be located at 2260 Hemphill Street (Council District
                9). The site for the proposed development is zoned "E" – Neighborhood Commercial,
                proposed to be changed to "UR" – Urban Residential.

                Reserve at Risinger to be developed by Reserve at Risinger LLC, an affiliate of MVAH
                Partners LLC, to be located at the southwest corner of Risinger Road and McCart Ave
                (Council District 6). The site for the proposed development is zoned "C" – Medium Density
                Multifamily.

                Columbia Renaissance Square III to be developed by Columbia Renaissance Square III, LP,
                an affiliate of New Columbia Residential, LLC, to be located at 2829 Moresby Street (Council
                District 8). The site for the proposed development is zoned "PD" – Planned Development.

                Southside at Broadway to be developed by FW Southside at Broadway Housing, LP, an
                affiliate of OM Housing, LLC, to be located at 301 South Freeway (Council District 8). The site
                for the proposed development is zoned "NS" – Near Southside.

Commitment of Development Funding:
The policy allows a local 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 award of 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 Urban Villages to help promote central city revitalization. They are districts which are more compact, contain a greater mix of land uses, and give greater emphasis to pedestrian and transit access. The City's Neighborhood Empowerment Zones (NEZs) were created to promote affordable housing and economic development in the designated zone. Four NEZs have adopted Strategic Plans for certain distinct areas located in the larger NEZ to guide the rebuilding neighborhoods with compatible quality infill housing and appropriate mixed use development in commercial areas. On January 29, 2019 the City Council amended the City's NEZ program and policies and consolidated 20 NEZ areas into six (M& Cs G-19467, G-19468 and G-19469). All of the City' s Urban Villages and NEZs are included in the City' s annual Comprehensive Plan as part of its goal of revitalizing central city neighborhoods and commercial districts (2018 Comprehensive Plan, Part II, Chapter 5: Housing, and Part III, Chapter 10: Economic Development).

The Palladium Fain Street, Cielo Place, Sunset at Fash Place, and Avenue at Sycamore Park developments are located either in Urban Villages created by City Council in 2002, a NEZ created by City Council in 2019, or a distinct area within a NEZ with a Strategic Plan. Staff determined that these developments will significantly contribute to the City's ongoing revitalization efforts in each of the Urban Villages and NEZs in which they will be located since the recommended developments are new affordable housing for households earning at or below 80 per cent 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 Urban Village and NEZ. Staff recommends that the City Council adopt the attached Resolutions determining that the Palladium Fain Street, Cielo Place, Sunset at Fash Place, and Avenue at Sycamore Park developments contribute more than any other developments to the City's concerted revitalization efforts underway in the Urban Villages and 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 the development, 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 III and Southside at Broadway developments will be located in census tracts in which more than 20 percent of the total households are Housing Tax Credit units. Staff recommends that City Council vote to specifically allow these developments, and approve the additional finding in the attached Resolutions that they are consistent with the City's obligation to affirmatively further fair housing.

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 approving these Resolutions does not constitute approval of any required zoning change or annexation.

The proposed developments are located in COUNCIL DISTRICTS 4, 6, 7, 8 and 9.

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 2019 Budget. Upon approval, permitting and related fees will be waived in an amount up to $17,500.00 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:
Chad LaRoque (2661)

 
 
ATTACHMENTS
  Ave at Sycamore Resolution and Map.pdf
  Churchill at Golden Resolution and Map.pdf
  Cielo Place Resolution and Map.pdf
  Columbia Renaissance Resolution and Map.pdf
  Everly Plaza Resolution and Map.pdf
  Palladium Fain Resolution and Map.pdf
  Reserve at Risinger Resolution and Map.pdf
  Residences at Fairmont Resolution and Map.pdf
  Southside at Broadway Resolution and Map.pdf
  Sunset Fash Place Resolution and Map.pdf