Presentation of Allocation of HOME Funds for Residential Projects Jay Chapa, Director, Housing and Economic Development Department June 7, 2011 1
Purpose of Presentation Review HOME funding commitment requirements Review potential funding reallocations Review proposed projects 2
HOME Funding Commitment Requirements 2010-2011 City received approximately $3.2 million in HOME funds Commitment and Spending Regulations City must commit HOME funds to project with specific address within 2 yrs of receipt City must spend HOME Funds within 5 yrs Current Commitments by July 31, 2011 - $1,493,593 3
Commitment Issue Housing Trust Fund Since 2007 Action Plans have set aside approx $2.0 Million for Housing Trust Fund Issues arose with program design leading to hiatus of program while it is redesigned (HUD consultant currently assisting staff in redesign of program no funds allocated in 2010-11) Program hiatus creates inability to commit funds In order to be committed, you must have a specific address Cancelled Projects Bonnie Brae Project awarded $1,100,000.00 in HOME funds has been withdrawn by developer Historic Carver Heights has requested that their HOME funds of $563,154.00 be swapped for CDBG funds so they can proceed with their CDBG eligible projects 4
Available Funds that must be committed to new projects Funds required to be committed 2007 HTF $ 527,000.00 2008 HTF 696,907.00 2009 HTF 862,584.00 Cancelled Bonnie Brae 1,100,000.00 HOME funds from Model Block 563,684.00 Total $3,750,175.00 5
Proposed Projects to Meet Commitment Requirements HFC Lee Ave. Townhomes Project: LDC Lancaster Mixed Use Project: Pilgrim Valley ITEX Rehabilitation: Stop Six Acquisition/Rehab Project: $1,000,000 $2,000,000 $ 200,000 $ 550,175 $3,750,175 6
Lee Avenue Townhomes 7
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Existing Conditions Council District 2 Northside NEZ Properties facing Lee Ave consist of a total of four tax foreclosed dilapidated residential structures and a former furniture store 10
Proposed HFC Project Available Lots Total Land Area Residential Townhomes Affordable Buyers Total Investment 6 (replat for townhomes) Approx 46,194 sq. ft. 4-7 Townhomes w/rear entry garages ( 2 ) 2 BR 2 BA 2 Car Garage ( 2-5 ) 3 BR 2 BA 2 Car Garage 1400-2000 sq. ft. Less than 80% Medium Income Family of 4 - $55,900 Family of 6 - $62,550 $1,000,000 HOME Funds 11
Staff Recommendation Enter into contract with the Fort Worth Housing Finance Corporation for $1,000,000 of HOME funds for the development of HOME units Authorize the sale of the tax foreclosed lots to the Fort Worth Housing Finance Corporation 12
Lancaster Mixed Use Project 13
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Existing Conditions Council District 9 No existing structures Space Used for City Vehicle Parking Located South of the Zipper Building Surplus property between Lancaster and 15 th Street 15
Proposed Project (full project) Residential Units (5 Apartment Floors) 80 Units 30 1 BR (2 Low HOME 9 High HOME) 45 2 BR (3 Low HOME 13 High HOME) 5 3 BR (0 Low HOME 2 High HOME) Approximately 950-1500 sq. ft. Affordable Rents 1 BR Low Rent $632 High Rent $708 2 BR Low Rent $758 High Rent $861 3 BR Low Rent $876 High Rent $1105 Office Space (5 Floors) Retail Space Total Project Space Garage/ New Public Parking Total Real Property Improvement Approximately 60,000 sq. ft. Approximately 20,000 sq. ft. Approximately 230,000 sq. ft. 450 Spaces $30-35 Million 16
Staff Recommendation Enter into contract with the Fort Worth Local Development Corporation for $2,000,000 of HOME funds for the development of HOME units for the Lancaster Project Lease/Option to Purchase for the city property located along Lancaster 17
Pilgrim Valley 18
Pilgrim Valley Apartments The Itex Group Formed in 2003, based in Beaumont, TX The Itex s multifamily portfolio has grown to over 2600 units in Texas Experience with HUD financed and subsidized properties Currently working with Developer on the Prince Hall Gardens Apartments project 19
Pilgrim Valley Manor N Pilgrim Valley Manor Renaissance Square N 20
Project Description Affordable rental development Located at 1701 E Robert Street Rehab of 168 units and all associated facilities $17 million total investment, including acquisition Acquisition and rehabilitation Asbestos and lead paint abatement Landscaping, paving, and repair sidewalks Replace outdated HVAC Replace flooring, plumbing, and electrical Demolish existing community center and rebuild Support services offered Submitted application for TDHCA at-risk set-aside tax credits for $1,400,000 21
Pilgrim Valley Manor 22
Elevations 23
Recommendation Loan of HOME Investment Partnership funds ($200,000) secured by a recorded Deed of Trust on the real property to serve as local match The funds will be provided as a construction loan Payment will be due upon the completion of construction All units will be affordable as required, to receive tax credits 24
Stop Six 25
Stop Six Infill Project Swap CDBG funds for HOME funds in order to do new construction in the Stop Six Neighborhood Model Block Program $550,175.00 would be available for new construction 26
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Recommended Lots New Construction: 2504 Dillard 5151 Charlene 2600 Marlin 2709 Marlin Rehabilitation (or New Construction, if greater than $50,000 in estimated Rehab costs): 2508 Dillard 5115 Draper 2703 Marlin 28
5115 Draper 29
2504 Dillard 30
Recommendation / Next Steps City of Fort Worth to allocate $550,175 of HOME Investment Partnership funds to the Stop Six Infill Project M&C on June 14, 2011 31
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