Memorandum CITY OF DALLAS. Housing Committee Members: Scott Griggs, Vice-Chair, Monica Alonzo, Rick Callahan, Dwaine Caraway, and Philip Kingston

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1 Memorandum CITY OF DALLAS DATE October 3, 2014 Housing Committee Members: Scott Griggs, Vice-Chair, Monica Alonzo, Rick Callahan, Dwaine Caraway, and Philip Kingston SUBJECT October 6, Housing Committee Agenda We will have a meeting of Housing Committee on Monday October 6, 2014, City Hall, 1500 ManIla - 10:30 am. - 12:30 p.m. The agenda is as follows: Room 6ES, Dallas, Texas, 75201, from 1. Approval of September 15, 2014 Minutes Carolyn R. Davis Councilmember 2. Depart to Level I Green to South Oak Cliff Blue Line Extension G roundbreaking UNT Dallas 7300 University Hills Blvd Transportation will be provided 3. Reconvene in 6ES immediately following tour 4. Upcoming Agenda Items Housing Item Only For Information Only a. Public Hearing on Land Transfer to Dallas Neighborhood Alliance for Habitat b. Amendment to City Wide Development Corporation loan terms (addendum) DaIIJic th (ih, that Wr,rk fliur ijihr,nt n. l

2 Housing Committee October 3, 2014 Page 2 447z/ /q4 Carolyn R. Davis, Chair Housing Committee C: The Honorable Mayor and Members of City Council A.C. Gonzalez, City Manager Warren M. S. Ernst, City Attorney Craig D. Kinton, City Auditor Rosa A. Rios, City Secretary Daniel F. Solis, Administrative Judge Ryan S. Evans, First Assistant City Manager Eric Campbell, Assistant City Manager Jill A. Jordan, P. E., Assistant City Manager Mark McDaniel, Assistant City Manager Joey Zapata, Assistant City Manager Jeanne Chipperfield, Chief Financial Officer Sana Syed, Public Information Officer Elsa Cantu, Assistant to City Manager Mayor and Council Note: A quorum of Dallas City Council may attend this Council Committee meeting. A closed executive session may be held if discussion of any of above agenda items concerns one of following: 1. Contemplated or pending litigation, or matters where legal advice is requested of City Attorney. Section of Texas Open Meetings Act. 2. The purchase, exchange, lease or value of real property, if deliberation in an open meeting would have a detrimental effect on position of City in negotiations with a third person. Section of Texas Open Meetings Act. 3. A contract for a prospective gift or donation to City, if deliberation in an open meeting would have a detrimental effect on position of City in negotiations with a third person. Section of Texas Open Meetings Act. 4. Personnel matters involving appointment, employment, evaluation, reassignment, duties, discipline or dismissal of a public officer or employee or to hear a complaint against an officer or employee. Section of Texas Open Meetings Act. 5. The deployment, or specific occasions for implementation of security personnel or devices. Section of Texas Open Meetings Act. 6. Deliberations regarding Economic Development negotiations. Section of Texas Open Meetings Act. Dallas, City that Works: Diverse, Vibrant and Progressive

3 Housing Committee Meeting Record September 15, 2014 The Housing Committee meetings are recorded. Agenda materials and audiotapes may be reviewed/copied by contacting Housing Department, Staff Coordinator at214-67o-390 Meeting Date: September 15, 2014 Meeting Start time 11:10 AM, Committee Members Present: Carolyn R. Davis (Chair) Scott Griggs (Vice-Chair) Dwaine Caraway Monica Alonzo Rick Callahan Philip Kingston Or Council Members Present Staff Present: Theresa O Donnell-Interim Asst. City Manager Bernadette Mitchell-Interim Director/HOU Charles Brideau-Asst. Director/HOU Beverly Davis-Asst. DirectorlFHO Peer Chacko-Asst. Director/DEV Don Baber-HOU Cobbie Ransom-HOU Mamie Lewis-HOU Michael Bostic-CAO Nikki Dunklin-CMO Candi Chamber-OFS Robin Bentley-CAO Doris Edmon-HOU Renita Griggs-MCC Priscyllia Bento-SEC Brian Price-HOU Alida Allen-HO U Committee Members Absent: Or Attendees Duane Steele-Dallas County Christina Cram-DOORS Yvonne Young-DOORS Lourdes Vazquez AGENDA Housing Committee Meeting Called to Order by CM Carolyn R. Davis 1. Approval of Septeniber 2, 2014 Minutes of Housing Committee Presenter(s): Council Member Carolyn R. Davis Action TakenlCommittee Recommendation(s) Motion made by: CM Monica Alonzo L!!m passed unanimously: Item failed unanimously: Follow-up (if necessary): Motion seconded by: CM Philip Kingston Item passed on a divided vote: Item failed on a divided vote:

4 Housing Committee September 15, 2014 Meeting Record Page 2 of 2 2. DOORS Unlocking DOORS To Reduce Recidivism Presenter(s): Theresa O Donnell, Interim Asst. City ManagerlBernadette Mitchell, Interim DirectorlDon Babers, HOU /Christina Cram, DOORS- President and CEO Information Only: X.ction TakenlCommittee Recommendation(s) Motion made by: Motion seconded by: Item passed unanimously: Item passed on a divided vote Item failed unanimously: Item failed on a divided vote: ] Follow-up (if necessary): 3. Upcoming Agenda Items Housing Items Only Information Only: X a. Builders of Hope CDC West Dallas Project Loan Modification Action Taken!Committee Recommendation(s) - Motion made by CM Monica Alonzo Item_passed unanimously.. Item failed unanimously Follow-up (if necessary): Motion seconded pycm Rick Callahan Item passed on a divided vote Item failed on a divided vote Meeting Adiourned by CM Carolyn R. Davis Meeting Adjourned P.M. Approved By:

5 DEPART FOR SOUTH OAK CLIFF BLUELINE EXTENSION GROUNDBREAKING

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7 Economic Vibrancy October 8, Housing/Community Services Theresa O Donnell, D A public hearing to receive comments on proposed sale of one unimproved property acquired by taxing authorities from Sheriff to Dallas Neighborhood Alliance for Habitat a qualified non-profit organization; and, at close of public hearing, authorize City Manager to: (1) quitclaim one unimproved property to Dallas Neighborhood Alliance for Habitat under HB1 10 process of City s Land Transfer Program; and (2) release City s non-tax liens included in foreclosure judgment and post-judgment non-tax liens, if any (list attached) - Revenue: $1,000 BACKGROUND The HB11O process of City s Land Transfer Program, in accordance with Section 2-26 of Dallas City Code ( Code ) and with Section of Texas Local Government Code, permits City to sell land, which City has acquired as a trustee, for itself and or taxing jurisdictions, from Sheriff pursuant to tax foreclosure process, to a qualified non-profit organization for purpose of providing affordable housing, subject to consent of or taxing jurisdictions. Property eligible for HB11O process of City s Land Transfer Program must be sold by quitclaim deed and include a possibility of reverter and right of re-entry, triggered under certain conditions, including if construction of affordable housing is not completed on property within three years of non-profit s receipt of quitclaim deed. The quitclaim deed must also include deed restrictions that ensure desired development of property and maintain affordability of property as required by Code. Per Code, sales price of each property is $1,000 for up to 7,500 square feet of land plus $0.133 for each additional square foot of land, which amount is distributed by City to both City and or taxing jurisdictions in accordance with Section of Texas Tax Code, plus an amount equal to actual fees charged for recording Sheriff s deed and quitclaim deed in real property records. Prior to approval of any sale, Code requires that City Council hold a public hearing to receive comments on proposed sale of land and provide certain notices to public.

8 BACKGROUND (Continued) Dallas Neighborhood Alliance for Habitat submiffed a proposal to construct one single-family home containing approximately 1,279 square feet on one unimproved HB11O process-eligible, Land Transfer Program property, identified on Exhibit A, attached to resolution, for purchase by a low to moderate income homebuyer at a proposed sales price of $85,000 - $95,000 with construction to begin in September This item calls for a public hearing to allow public an opportunity to comment on proposed sale of one unimproved property to Dallas Neighborhood Alliance for Habitat and, at close of public hearing, authorizes sale of property to Dallas Neighborhood Alliance for Habitat by quitclaim deed and release of City s non-tax liens included in foreclosure judgment and post-judgment non-tax liens, if any. In conformance with Code, at least ten calendar days prior to public hearing, a sign indicating time and place of public hearing was placed on property, notification of public hearing was mailed to property owners within 200 feet of property, and notice of public hearing was published in Dallas Morning News. PRIOR ACTIONIREVIEW (Council, Boards, Commissions) On August 27, 2014, City Council authorized a public hearing to receive comments on proposed sale by quitclaim deed of one unimproved property acquired by taxing jurisdictions from Sheriff to Dallas Neighborhood Alliance for Habitat, Inc., by Resolution No FISCAL INFORMATION Revenue - $1,000 OWNER Dallas Neighborhood Alliance for Habitat Richard Kelly, President MAP Attached Agenda Date 10/08/ page 2

9 Tax Foreclosure and Seizure Property Resale Parcel Non-Profit DCAD Sale Vac/ No. Address Organization Amount Amount Imp Zoning WNhurt Dallas Neighborhood $6,900 $1,000MO V R-T5(A) Alliance for Habitat, Inc.

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11 COUNCIL CHAMBER October 8, 2014 WHEREAS, City s Land Transfer Program, in accordance with Section 2-26 of Dallas City Code ( Code ) and with Section of Texas Local Government Code, permits City to sell land, which City has acquired as a trustee, for itself and or taxing jurisdictions, from Sheriff pursuant to tax foreclosure process, to a qualified non-profit organization for purpose of providing affordable housing, subject to consent of or taxing jurisdictions; and WHEREAS, property eligible for HB11O process of City s Land Transfer Program must be sold by quitclaim deed and include a possibility of reverter and right of re-entry, triggered under certain conditions, including if construction of affordable housing is not completed on property within three years of non-profit s receipt of quitclaim deed; and WHEREAS, quitclaim deed must also include deed restrictions that ensure desired development of property and maintain affordability of property as required by Code; and WHEREAS, per Code, sales price of each property is $1,000 for up to 7,500 square feet of land plus $0133 for each additional square foot of land, which amount is distributed by City to both City and or taxing jurisdictions in accordance with Section of Texas Tax Code, plus an amount equal to actual fees charged for recording Sheriff s deed and quitclaim deed in real property records; and WHEREAS, prior to approval of any sale, Code requires that City Council hold a public hearing to receive comments on proposed sale of land and provide certain notices to public; and WHEREAS, Dallas Neighborhood Alliance for Habitat submitted a proposal to construct one single-family home containing approximately 1,279 square feet on one unimproved HB11O process-eligible, Land Transfer Program property, identified on Exhibit A, attached hereto and made a part hereof (hereinafter property ), for purchase by a low to moderate income homebuyer at a proposed sales price of $85,000 - $95,000, with construction to begin in September 2017; and WHEREAS, at least ten calendar days prior to public hearing, a sign indicating time and place of public hearing was placed on property, notification of public hearing was mailed to property owners within 200 feet of property, and notice of public hearing was published in Dallas Morning News; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DALLAS:

12 COUNCIL CHAMBER October 8, 2014 Section 1. That upon receipt of requisite monetary consideration from Dallas Neighborhood Alliance for Habitat (hereinafter non-profit organization ) and approval of governing bodies of or affected taxing jurisdictions, City Manager is hereby authorized to execute a quitclaim deed, approved as to form by City Attorney and attested by City Secretary, quitclaiming property, acquired by taxing authorities from Sheriff, to non-profit organization, subject to conditions contained in this resolution. Section 2. That City Manager is hereby authorized to execute instruments, approved as to form by City Attorney, releasing City s non-tax liens included in foreclosure judgment and post-judgment non-tax liens, if any, on property. Section 3. That non-profit organization s proposal for development of affordable housing on property, described in Exhibit A, is hereby approved. Section 4. That quitclaim deed shall contain: (a) A copy or summary of proposal from non-profit organization for property and a requirement that property be developed by non-profit organization in accordance with proposal, including timetable specified in proposal. (b) A possibility of reverter with right of re-entry if director determines that non-profit organization: (i) has failed to take possession of property within ninety calendar days after receiving quitclaim deed; (ii) has failed to complete construction of affordable housing on property within three years after receiving quitclaim deed or by end of any extended development period approved by City Council in accordance with Section (c) of Code; (iii) is not developing property in compliance with timetable specified in non-profit organization s proposal; (iv) is unable to develop land in compliance with its proposal because a request for a zoning change has been denied; (v) has incurred a lien on property because of violations of Code or or City ordinances within three years after receiving quitclaim deed; and

13 COUNCIL CHAMBER October 8, 2014 (vi) has sold, conveyed, or transferred property without consent of City and or affected taxing jurisdictions within three years after receiving quitclaim deed. (c) Deed restrictions requiring purchaser to: (i) restrict sale and resale of owner-occupied property to low-income individuals or families for five years after date deed from non-profit organization to initial homebuyer is filed in real property records of county in which property is located; (ii) require non-profit organization to develop all proposed housing units on property in accordance with Code and all applicable City ordinances and state and federal laws within three years after receiving quitclaim deed or by end of any extended development period approved by City Council in accordance with Section (c) of Code, and to obtain inspections and approval of housing units by City before initial occupancy; and (iii) require any low-income individual or family who purchases a housing unit on a property to maintain housing unit in accordance with Code and all applicable City ordinances and state and federal laws for a period of five years after date deed from non-profit organization to initial homebuyer is filed in real property records of county in which property is located. (d) An indemnification by non-profit organization of City and or affected taxing jurisdictions. (e) A statement and acknowledgment that property is quitclaimed subject to all redemption rights provided by state law. (f The non-profit organization s representation and agreement that it did not purchase property on behalf of a prohibited person and will not sell or lease property to a prohibited person for five years from date of quitclaim deed. A prohibited person is any party who was named as a defendant in legal proceedings where City obtained a final judgment for delinquent taxes and an order to foreclose its tax lien on property or person in judgment or seizure tax warrant, or Sheriff s deed as owner of property, authorized seized and ordered sold for delinquent taxes and any municipal health and safety liens.

14 COUNCIL CHAMBER October 8, 2014 Section 5. That City Manager is authorized to execute instruments, approved as to form by City Attorney, releasing City s possibility of reverter with right of re-entry and terminating deed restrictions to property upon compliance with all terms and conditions of Section 2-26 of Code and quitclaim deed, including deed restrictions and proposal. Section 6. That non-profit organization shall be responsible for pro-rata taxes assessed on property from date of closing for remaining part of n-current calendar year. The property shall be placed back on tax rolls effective as of date of execution of quitclaim deed. Section 7. That any procedures required by Section 2-24 of Code that are not required by state law are hereby waived with respect to conveyance of property. Section 8. That monetary consideration received from non-profit organization shall be distributed pursuant to Section of Texas Tax Code. Section 9. That any and all proceeds for City s sale of property to non-profit organization be deposited to General Fund 0001, Agency DEV, Balance Sheet Account Section 10. That upon receipt of monetary consideration from non-profit organization, City Controller is authorized to disburse proceeds of sale of property in accordance Section of Texas Tax Code, which calculations for disbursement shall be provided by Director of Sustainable Development and construction, to City of Dallas Land Based Receivables, Dallas County District Clerk and Dallas County Tax Office from account specified in Section 9 above. Section 11. That this resolution shall take effect immediately from and after its passage, in accordance with provisions of Charter of City of Dallas, and it is accordingly so resolved.

15 EXHIBIT A October 08, 2014 PARCEL NO.. VACANTI INSTRUMENT HOMEOWNER NUMBER OF ITREET ADDRESS IMPROVED: NUMBER QUALIFIED RENTA.L DWELLING SALE AMOUNT LEGAL DESCRIPTION TFISW NOWPROFIT PURCHASER LEASE PURCHASE UNITS I :Z251 Wflhurt Dallas Neighborhood ot 15, Lisbon Heights TF V Alliance for Habitat, Inc Homeowner I $1 p iock 3/58.53

16 KEY OCUS AREA. Economic Vibrancy October 8, 2014 COUNC;JL J:Njc! 4 Housing/Community Services Theresa O Donnell, X Authorize an amendment to Resolution No , previously approved on February 26, 2014, to define loan terms for a $1,000,000 loan and a $959,913 grant to City Wide Community Development Corporation from Community Development Block Grant funds for construction costs - Financing: This action has no cost consideration to City BACKGROUND In July 2014, City Wide Community Development Corporation was approved for 9% Low Income Housing Tax Credits for Serenity Place Apartments, L.P. by TDHCA for 2014 Low Income Housing Tax Credit Program. The project includes 45 multifamily units for permanent supportive housing, consisting of 40 two-bedroom units and 5 three-bedroom units. This item was placed on addendum because private financing for City Wide Community Development Corporation is scheduled to close on October 15, Our changes should be in place prior to loan closing. Due to complexity of financing for project, City Attorney has requested additional loan terms be detailed in agenda item. PRIOR ACTIONIREVIEW (Council. Boards, Commissions) On February 10, 2010, City Council approved a modification to policy for acceptance of applications seeking City of Dallas support for low income housing tax credit financing, when State of Texas does not require direct City of Dallas approval by Resolution No On February 18, 2014, Serenity Place Apartments Low Income Housing Tax Credit multifamily project was briefed to Housing Committee.

17 PRIOR ACTIONIREVIEW (Council. Boards, Commissions) (continued) On February 26, 2014, City Council authorized (1) support for TDHCA 9% LIHTC application for Serenity Place Apartments; (2) a loan in amount of $1,000,000 for construction costs; (3) a grant in amount of $959,913 for construction costs; and (4) a predevelopment grant in amount of $38,000 for costs associated with tax credit by Resolution No FISCAL INFORMATION This action has no cost consideration to City OWNER(S) City Wide Serenity Place Apartments, LP. City Wide Community Development Corp. Sherman Roberts, President & CEO DEVELOPER Carleton Residential Properties Printice L. Gary Carleton Construction, Ltd. Neal Hildebrandt, President CWCDC Serenity GP, Inc., GP MAP Attached Agenda Date 10/08/ page 2

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19 COUNCIL CHAMBER October 8, 2014 WHEREAS, City Wide Community Development Corporation, on behalf of City Wide by of Housing & Community Affairs (TDHCA) for % Housing Tax Credits for Serenity a for affordable rental housing at 3124 South Denley in City of Dallas; and Serenity Place Apartments, L.P. Apartments, development was approved Texas Department Place WHEREAS, to 11.9(d)(7) Community Revitalization Plan, Corridor/Cigarette Hill Community Revitalization Plan (CRP) by City Council on 12, 2012 with a total or projected value of or and is located within this CRP $6,000,000 and pursuant December greater budget Serenity Place Apartments was adopted economic Lancaster area; WHEREAS, Housing Tax Credit multifamily project to be located at 3124 Denley Drive is contributing most significantly to revitalization efforts of city, to 11.9(d)(7)(A)(ii)(lIl) of Housing Tax Credit Qualified Allocation Plan; and selected as pursuant concerted 2014 South WHEREAS, on February 26, 2014, City Council (1) for TDHCA 9% LIHTC application for Serenity of for construction (3) a in of $959,913 for construction and (4) a grant in of $38,000 for with tax credit by Resolution No submitted for funding of from City of Dallas which by Resolution No ; and reviewed $1,000,000 costs; associated request gap costs; predevelopment $1,997,913 approved support Place Apartments; (2) a loan in amount amount amount Applicant grant has has been costs a WHEREAS, THEREFORE, City of Dallas desires to provide terms to contract; NOW, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DALLAS: SECTION 1. City Manager or his upon approval to form by City Attorney, is to a loan in of to City Wide Community Development Corporation (CWCDC), or Applicant for including soft and hard construction at 3124 South Denley Drive with following terms: $1,000,000 That hereby authorized development costs, designee, execute agreement costs, as amount SECTION 2. The loan agreement is contingent upon, a. CWCDC, or its wholly owned subsidiary, being 9% tax credits b. CWCDC must adhere to all applicable CDBG Program c. CWCDC must execute a note, of trust, and restriction to City for a affordability period. 35-year deed awarded 2014 deed requirements

20 COUNCIL CHAMBER October 8, 2014 SECTION 2. (continued) d. The outstanding principal balance of City s $1,000,000 loan shall bear an interest rate of 1 % with interest only annual payment from available cash flow over a period of 35 years. Upon completion of 35-year term, $1,000,000 loan will occurs first. be repaid to City or at time of sale or refinancing, whichever e. The loan may be subordinated to lenders. SECTION 3. That City Manager or his designee, upon approval as to form by City Attorney, is hereby authorized to execute a grant in amount of $959,913 to City Wide Community Development Corporation (CWCDC), or Applicant, to mitigate basis and tax issues only, for construction costs for development at 3124 South Denley Drive. The following terms apply: a. CWCDC, or its wholly owned subsidiary, must be awarded % tax credits b. CWCDC must adhere to all applicable CDBG Program requirements. c. CWCDC must complete construction and receive a certificate of occupancy. d. Fifty one percent of units must be occupied by low-income households at or below 80% AMFI. e. Rents TDHCA. f. will be set at Fair Market Rents or or acceptable levels defined by CWCDC must execute a note, deed of trust, and deed restriction to City for performance only. Once 51% of units are occupied, loan g. The loan may be subordinated to construction and permanent lenders. will be forgiven. SECTION 4. That City Manager or his designee, upon approval as to form by City Attorney, is hereby authorized to execute a predevelopment grant in amount of $38,000 to City Wide Community Development Corporation (CWCDC), or Applicant, for costs associated with TDHCA 9% application, not conditioned upon % LIHTC award. SECTION 5. That City Manager, upon approval as to form by City Attorney, is authorized to execute a subordination of lien to a lender who is providing construction financing on property.

21 COUNCIL CHAMBER October 8, 2014 SECTION 6. That City of Dallas funding and endorsement of TDHCA LIHTC application for project, Serenity Place Apartments, will be contingent on following: (1) Project Owner expending a minimum of $40,000 (a minimum of $40,000 or $200 per unit per year, whichever is greater) for social services for, and at no cost, to residents of development, based on a survey of resident s needs, to be implemented within three months of project completion; (2) inclusion of this requirement in City s Deed Restrictions containing social services requirement (up to 50% of social service requirement can be fulfilled with in kind social services provided Housing/Community Services Department gives prior approval of social service plan). SECTION 7. That before receiving a conditional City of Dallas building permit required by TDHCA prior to closing on tax credits, Project Developer will consult with City of Dallas Sustainable Development and Construction Department with regard to security related design standards. SECTION 8. That City of Dallas funding and endorsement for this project will be contingent on Project Owner paying to City an annual monitoring review fee in amount of $500, beginning on anniversary of closing on 9% tax credits and ending at end of tax credit compliance. SECTION 9. That City Manager, upon approval as to form by City Attorney, is authorized to execute releases of liens and terminate deed restrictions on property upon compliance with loan terms and deed restrictions. SECTION 10. That this resolution shall take effect immediately from and after its passage in accordance with provisions of Charter of City of Dallas, and it is accordingly so resolved.