2j1MAR3I H2: OiLLAS [EXA

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1 Memorandum April 1,4011 2j1MAR3I H2: OiLLAS [EXA CITY OF DALLAS housing Committee Members: Carolyn R. Davis. Vice-Chair. Tennell Atkins. Angela Hunt, Ann Margolin. and Pauline Medrano April 4, 2011 [lousing Committee Agenda We will have a meeting of the Housing Committee on Monday, April 4, 2011, City Hall, 1500 ManIla - Room 6ES, Dallas, Texas , at 2:00 p.m. The agenda is as follows: 1. Approval of March 7,2011 Minutes Councilmember Steve Salazar 2. Dallas Construction Codes 0 Donnell/Antebi (Estimated time 30 minutes) 3. Sphinx at Fiji Townhomes Bond Project KillingsworthlMitchell (Estimated time 30 minutes) 4. Lpcoming Agenda Items For information only (Estimated time 10 minutes) (2 /1 a. Land Bank Call for Public Hearing for Habitat for Humanity (2 lots) b. Reconstruction/SHARE Program 10 homes c. City Center TIF Affordable Housing Grant for Atmos Lofts Project d. Public Hearing and Final Approval for Section 108 Lofts Steve Salazar, Chair I lousing Committee Dallas, the City that Works: Diverse, Vibrant and Proqressive

2 (lousing Committee April L2011 Page 2 c: [he Honorable Mayor and Members of the City Council Mar K. Suhm, City Manager Deborah Watkins, City Secretary Tom P. Perkins, Jr., City Attorney Craig Kinton, City Auditor Judge C. Victor Lander, Administrative Judge, Municipal Court Ryan S. Evans, First Assistant City Manager A.C. Gonzalez, Assistant City Manager Forest Turner, Assistant City Manager Jill A. Jordan, P.E., Assistant City Manager Jeanne Chipperfield, Chief Financial Officer helena Stevens-Thompson, Assistant to the City Manager A closed executive session may be held if the discussion of any of the above agenda items concerns one of the following: 1. Contemplated or pending litigation, or matters where legal advice is requested of the City Attorney. Section of the Texas Open Meetings Act. 2. [he purchase, exchange, lease or value of real property, if the deliberation in an open meeting would have a detrimental effect on the position of the City in negotiations with a third person. Section of the Texas Open Meetings Act. 3. A contract for a prospective gift or donation to the City, if the deliberation in an open meeting would have a detrimental effect on the position of the City in negotiations with a third person. Section of the Texas Open Meetings Act. 4. Personnel matters involving the 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 the Texas Open Meetings Act. 5. The deployment, or specific occasions for implementation of security personnel or devices. Section of the Texas Open Meetings Act. 6. Deliberations regarding Economic Development negotiations. Section of the Texas Open Meetings Act. Dallas, the City that Works: Diverse, Vibrant and Progressive

3 Housing Committee Meeting Record March 7, 2011 usingcommitteemeetingsarerecoed.agendamaterialsandaudiotapesmaybe reviewed/copied by contacting the Housing Department, Staff Coordinator at Meeting Date: jyçh72o1j Committee Members Present: Steve Salazar-(Chair) Carolyn R. Davis (Vice-Chair) Tennell Atkins Angela Hunt Ann Margolin Pauline Medrano Other Council Members Present: Staff Present: AC. GonzaIez-AsiTnager Jerry Killingswo4rDire!OU Bernadette MjhAsst. bwj 2rIHOU Charles Directd Patrick bri-hou Michaostic-C&O Barrtinez-aA 1O Haram LLCMOjR11,. C ly HtW1U Rhonn RamiO Doris Edmon-I4 Lmeralda de Ia *jjou jdra Luster-H,f kaitwnhou W AGEND I.4.(mm++Ee Me CalIed rder by CM Steve Salazar t Appr 3ruary22, 21 Minutes of the Housing Committee Presenter(s): il Mem Steve Salazar Action Taken/Com ee Recommendation(s): Motion made by: TenneU Atkins Motion seconded by: CM Angela Hunt Item passed unanimously: X Item passed on a divided vote: Item failed unanimously: Item failed on a divided vote: Follow-up (if necessary):

4 Housing Committee March 7,2011 Meeting Record Page 2 of 2 2. Community Development Block Grant Section 108 Guaranteed Loan Amended Application for the Atmos Lofts Presenter(s): A.C. Gonzalez, Asst, City ManagerlJerry Killingworth, Director/Charles Brideau, Assistant Director Information Only: Action Taken!Committee Motion made by: CM Tennell Atkins Item passed unanimously: X Item failed unanimously: ip(ifnecessai 3. Update on Section 108 Guaranteed Loan Presenter(s): AC. Gonzalez, Asst. City Manager! Assistant Information Only: X Action Taken/Committee Recomi Longepyj L Item passed unanimousi. Item failed_unanimously: Follow-up (if Meeting Adjourned by CM Steve Salazar Meeting Adjourned: 2:30 P.M. Approved By:

5 Memorandum CITY OF DALLAS Date: April 1,2011 To: Subject: Housing Committee Members: Steve Salazar, Chair, Carolyn R. Davis, Vice Chair, Tennell Atkins, Angela Hunt, Ann Margolin, Pauline Med rano Dallas Construction Codes On Monday, April 4, the Housing Committee will be briefed on Dallas Construction Codes. A copy of the briefing Material is attached for your review. If you need further information please call Theresa O Donnell at AC Gonzalez Assistant City Manager c: The Honorable Mayor and Members of the City Council Mary K. Suhm, City Manager Deborah Watkins, City Secretary Thomas Perkins, City Attorney Craig Kinton, City Auditor Judge C. Victor Lander, Judiciary Ryan S. Evans, First Assistant City Manager Forest Turner, Assistant City Manager Jill A. Jordan, P.E., Assistant City Manager Jeanne Chipperfield, Chief Financial Officer Theresa O Donnell, Director Sustainable Development & Construction Jerry Killingsworth, Director, Housing/Community Services Helena Stevens-Thompson, Assistant to the City Manager

6 DALLAS CONSTRUCTION CODES Housing Committee April 4, 2011

7 Codes Enforced by Building Inspection Dallas enforces codes associated with development and construction Dallas City Codes Define the development principles adopted by Council Construction Codes Ensure buildings and structures are safe Maintain property values Dallas Construction Codes 2

8 Codes Enforced by Building Inspection City codes associated with development Development Health Green building Codes associated with construction Commercial building and residential Plumbing Mechanical Electrical Fuel Gas Irrigation Energy conservation Dallas Construction Codes 3

9 Schedules of Code Updates City codes associated with development are continuously reviewed and updated by staff Construction codes are: Updated and published by the International Code Council every three years Reviewed and recommended by the North Central Texas Council of Governments Reviewed by staff and recommended to the Building Inspection Advisory, Examining and Appeals Board Recommended for adoption by City Council Adoption of the irrigation and energy construction codes are mandated by the State of Texas Dallas Construction Codes 4

10 Synopsis of Codes Development Ensures proper land use of properties (zoning, landscape, tree protection, historical and conservation districts, etc.) Health Ensures safety of food in places that prepare and serve foodstuff Green building Requires all new buildings to meet "green" standards and focuses on energy efficiency, water conservation and reduction of the heat island effect through cool roofs Dallas Construction Codes 5

11 Synopsis of Codes Commercial building and residential Ensures that buildings and homes are structurally sound, have the correct number of exits and the occupancy load meets safety requirements Plumbing Ensures proper disposal of wastewater and prevents the contamination of the water supply Mechanical Ensures cooling and heating equipment are properly installed and provides for proper ventilation of mechanical equipment to ensure safe air quality Dallas Construction Codes 6

12 Irrigation Synopsis of Codes Electrical Ensures electrical components are installed safely to prevent electric shock and fires Fuel Gas Ensures gas lines are properly sized and installed. Properly installed water heaters prevent explosions (as depicted in the photo) as well as carbon monoxide poisoning. Mandated by the State of Texas to ensure water conservation and to prevent contamination of the water supply due to fertilizers and other chemicals used in lawn systems Dallas Construction Codes 7

13 Synopsis of Codes Energy Conservation Mandated by Texas State Law SB 5 in 2001 SB 12 and HB 3693 amended Senate Bill 5 in 2007 Two phase enforcement Phase I Commercial effective April 1, 2011 Phase II Residential effective January 1, 2012 Residential requirements include: Structure to be air tight Duct pressure tested if part of duct work is outside structure 50% of lamps in a residence must be energy efficient Eliminates trade-off credits for high efficiency heating, cooling, or water heating equipment Dallas Construction Codes 8

14 Synopsis of Codes Energy Conservation Commercial requirements include: Insulated glass on all windows All heating and cooling design loads shall be determined based on new standards Exterior lighting power allowances depend on use (park, residential, metropolitan, etc.) Pools must have time switches with preset on and off settings and heated pools must have pool covers Design to minimize incident solar radiation admitted through windows Dallas Construction Codes 9

15 Energy Conservation Code History 2001 Texas SB 5 was adopted Required the adoption of the energy code for residential, commercial and industrial construction Prohibited local amendments from being less stringent than state requirements Required buildings to be inspected by code-certified inspectors to be in compliance 2007 Texas SB 12 and HB 3693 amended Senate Bill 5 It increased energy conservation requirements Dallas Construction Codes 10

16 Energy Conservation Code History June 2010 The State adopted building energy efficiency performance standards Adopted the International Residential Code as the energy code for single family residential dwellings effective January 1, 2012 Adopted the International Energy Conservation Code as the energy code for all residential, commercial, and industrial construction that is not single-family residential construction effective April 1, 2011 February 2011 The Building Inspection Advisory, Examining and Appeals Board recommended approval of the ordinance amending Chapter 59 of the Dallas City Code to incorporate the state mandated requirements March 9, 2011 Dallas City Council approved the ordinance to comply with State mandate Dallas Construction Codes 11

17 Questions? Dallas Construction Codes 12

18 Memorandum CITY OF DALLAS DATE April 1, 2011 To Housing Committee Members: Steve Salazar, Chair, Carolyn R. Davis, Vice- Chair, Tennell Atkins, Angela Hunt, Ann Margolin, Pauline Medrano SUBJECT Sphinx at Fiji Townhomes Bond Project On Monday, April 4, 2011, you will be briefed on Sphinx at Fiji Townhomes Bond Project. A copy of the briefing is attached. Please let me know if you have any questions. A.. gonzalez Asistant City Manager C: The Honorable Mayor and Members of the City Council Mary K. Suhm, City Manager Deborah Watkins, City Secretary Tom P. Perkins, Jr., City Attorney Craig Kinton, City Auditor C. Victor Lander, Administrative Judge, Municipal Court Ryan S. Evans, First Assistant City Manager Forest Turner, Assistant City Manager Jill A. Jordan, P.E., Assistant City Manager Jeanne Chippertield, Chief Financial Officer Jerry Killingsworth, Housing/Community Services Director Helena Stevens-Thompson, Assistant to the City Manager Dallas, The City That Works: Diverse, Vibrant and Progressive.

19 Sphinx at Fiji Townhomes Bond Project A Briefing To The Housing Committee Housing/Community Services Department April 4, 2011

20 Key Focus Area: Economic Vibrancy Purpose Recommend funding up to $240,000 in Proposition 8 General Obligation Bond funds to assist in the development of twelve townhomes in the Fiji- Compton mixed-use transit-oriented development 2

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23 Fiji-Compton Master Planned Development Sphinx Development Corporation (SDC) Project The twenty (20) acre master planned project is located within a quarter mile of two DART Stations at 8 th & Corinth and Morrell Street Stations The planned development consists of: Pedestrian access to public transportation Viable work force commuter options Multi-family, senior, and single-family housing Adjacent and immediate proximity to office space and retail 5

24 Townhouse Project Developer Sphinx Development Corporation (SDC) Jay Oji, President/CEO Owner SDC Compton Housing, LLC General Contractor SDC Construction, LLC Request is for $20,000 grant per unit for 50 townhomes Funds would be used to offset the total price of the units to allow families at 80% or below to purchase them Units will be located just south of the newly completed senior units at 201 Fran Way (130 units) Pricing for the homes will range between $134,000 to $139,000 Units will be 3 bedroom, 2.5 baths, approximately sq.ft. 6

25 SDC Experience SDC has developed eight projects in the metroplex with 6 of those projects in Dallas Ewing Villas (2001) $10M Town Home project adjacent to Dallas Zoo and DART Station 80-unit rental project with 100% of units at 60% or below Area Median Family Income (AMFI) Sphinx at Murdeaux Villas (2002) $15.1M Multi-Family (MF) project at Murdeaux Lane (Southeast Dallas) 240-unit rental project with 100% of units at 50% AMFI Delafield Villas (2004) $18M Town Home project in Pleasant Grove at Delafield and Hoyle Ave 204-unit rental project with 100% of units at 60% or below AMFI Luxar (2005) $10.5M MF project at Cockrell Hill and West Kiest 100-unit rental project with 100% of units at 60% or below AMFI Reese Townhomes (2005) $8.7M MF project at 1201 S. Ewing 80-unit rental project with 100% of units at 60% or below AMFI Fiji Senior Villas (2009) 201 Fran Way 130 unit rental project with 100% of units at 60% or below AMFI 7

26 Sources and Uses SDC Fiji Senior Project SOURCES Lender financing $114,183 Deferred Developer Fee 17,126 City Funding 20,000 Owner equity 8,532 TOTAL SOURCES $159,841 USES Land $ 13,600 Taxes & Insurance 1,100 Financing 6,561 Other Soft Costs 14,522 Permits/Fees 1,932 Hard Construction Costs 105,000 Developer Fee 17,126 TOTAL USES $159,841 8

27 Terms of Grant The City of Dallas economic development grant terms: Term 2 years Construction must begin prior to 9/30/2011 Grant will be applied to a portion of the construction costs in exchange for sale to low to moderate income families at or below 80% of area median family income Deed Restrictions for affordability for 5 years 9

28 Recommendation Approval of a $240,000 economic development grant to Sphinx Development Corporation or a wholly owned subsidiary for the construction of 12 townhomes in the Fiji-Compton mixed-use transit oriented development 10

29 Next Steps April 27, 2011-City Council consideration of a $240,000 economic development grant for the construction of twelve (12) townhomes as a part of the master planned Fiji-Compton project to SDC or wholly owned subsidiary May 2011 contract with SDC or wholly owned subsidiary May/June 2011 construction begins on first 6 units 11

30 KEY FOCUS AREA: Economic Vibrancy April 13, DEPARTMENT: Housing/Community Services CMO: A. C. Gonzalez, MAPSCO: 46R Authorize (1) a public to be held on April 27, 2011 to on private by quitclaim of two unimproved by taxing from SheriWs to Dallas Neighborhood Alliance for Habitat, Inc. a qualified non-profit organization; and, (2) at of public hearing, of approval of of (list - Financing: No to City proposed authorities consideration cost consideration BACKGROUND sale hearing the the the sale deed Sale these properties the close receive comments properties acquired the attached) This item will begin acquisition for Dallas Neighborhood Alliance for Habitat, Inc. to two (2) unimproved for construction of two (2) single-family containing approximately 1,200 for by a low to income at price of $85,000 - The of construction is May The calling of a public hearing is part of Bill 110. each. homes moderate the purchase homebuyer process anticipated commencement date properties the proposed sales square feet each the state requirements under House purchase the the $95, Bill 110 which 34 of Property Tax Code. Tax Local Section The legislation allows a municipality to an for land by municipality following of a tax lien in favor of or by municipality, to be sold to non-profit for of affordable housing for low income individuals and families. The City Council No , implementing Bill 110, on November 11, moved provisions by Tax Local Section On 8, 2003, City Council No. to this law. The the Texas redesignated as Texas State Legislature enacted House adopt the foreclosure House Legislature Government Code approved Ordinance Government Code ordinance which organizations these Subsequently, provides seizure amended Chapter Code Section acquired the the the development approved Ordinance reference redesignating December applicable state was Subsequently, the Texas Code Section the as

31 BACKGROUND (continued) The ordinance requires that housing be provided to households with incomes at or below 80% of Area Median Family Income. The ordinance defines non-profit organization as either: (1) a non-profit corporation as provided by the State law, or (2) a joint venture or partnership between a nonprofit corporation and a non-profit corporation or other non-profit legal entity composed of residents or property owners in the community or neighborhood in which the land subject to a purchase proposal under the ordinance is located. Housing units require a 5-year deed restriction for single-family properties and a 15-year deed restriction for multi-family properties developed under this program. Rental property to be developed that contains more than 25 housing units will also be deed-restricted to require that social services be provided to residents based on the needs of the residents. Non-profit organizations are allowed to purchase the property for a fixed sum of $1,000 for up to 7,500 square feet of land purchased under the single proposal plus $0.133 for each additional square foot of land purchased under the proposal. This revenue is paid first for court costs and maintenance costs and then any excess to taxing units in proportion to their share of taxes on the property. An additional sum will be paid to the City for costs of recording legal documents associated with the transaction. The purchase of properties is subject to any redemption rights of the owners. Approval by the City Council and the other taxing units will be required for all land transactions under this ordinance. The affordable housing unit(s) must be constructed within 3 years from the date on which the City conveys the quitclaim deed, unless City Council extends the time line. PRIOR ACTION/REVIEW (Council, Boards, Commissions) On November 13, 1996, the City Council authorized the development of procedures to allow for the private sale of tax foreclosed or seized properties to qualified non-profit organizations by Resolution No On May 14, 1997, the City Council authorized implementation of the procedures for the Land Assembly Program by Resolution No On November 11, 1998, the City Council authorized an ordinance amending Chapter 2 of the Dallas City Code to allow for an alternate manner of sale for tax foreclosed property to non-profit housing corporations and non-profit organizations by Ordinance No Agenda Date 04/13/ page 2

32 PRIOR ACTION/REVIEW (Council, Boards, Commissions) (continued) On September 22, 1999, the City Council authorized an ordinance amending Chapter 2 of the Dallas City Code to authorize and provide requirements, qualifications, restrictions, and procedures for an alternate manner of sale of seized real property to nonprofit organizations for the development of affordable housing by Ordinance No, On May 9, 2001, the City Council authorized implementation of the procedures contained in the Land Transfer Program Statement and consolidate all land assembly processes under the Land Transfer Program Statement to allow for the private sale of City surplus, tax foreclosed and seized property to qualified, non-profit organizations for the public purpose of creating or preserving affordable housing by Resolution No On June 27, 2001, the City Council authorized implementation of policies and procedures contained in the adopted Housing Policy and to allow for modifications to Housing Program Statements under the adopted Housing Policy by Resolution No On December 8, 2003, the City Council authorized an ordinance amending Chapter 2 of the Dallas City Code to allow for changes in and extension of the development periods under H.B. 110 proposals and update references to applicable state law by Ordinance No On December 8, 2003, the City Council authorized an amendment to the program statement of the Land Transfer Program Policy to reflect the December 8, 2003 Ordinance change and changes to Section V. of the program statement by Resolution No On November 10, 2004, the City Council authorized an amendment to the program statement of the House Bill 110 Program to prohibit the placement of industrialized housing on properties sold by the City by Resolution No FISCAL INFORMATION No cost consideration to the City MAP Attached Agenda Date 04/13/2011 page 3

33 Tax Foreclosure and Seizure Property Resale Parcel Non-Profit DCAD Sale Vac/ No. Address Organization Mapsco Value Amount jj Zoning Baldwin Dallas 46R $5,000 $1,000 V R-5(A) Neighborhood Alliance for Habitat, Inc Jamaica Dallas 46R $5,000 $1,000 V R-5(A) Neighborhood Alliance for Habitat, Inc.

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35 COUNCIL CHAMBER April 13, 2011 WHEREAS, on November 13, 1996, The City Council authorized the development of procedures to allow for the private sale of tax foreclosed or seized properties to qualified non-profit organizations by Resolution No ; and WHEREAS, on May 14, 1997, the City Council authorized implementation of the procedures for the Land Assembly Program by Resolution No ; and WHEREAS, on November 11, 1998, the City Council authorized an ordinance amending Chapter 2 of the Dallas City Code to allow for an alternate manner of sale for tax foreclosed property to non-profit housing corporations and non-profit organizations by Ordinance No ; and WHEREAS, on September 22, 1999, the City Council authorized an ordinance amending Chapter 2 of the Dallas City Code to authorize and provide requirements, qualifications, restrictions, and procedures for an alternate manner of sale of seized real property to nonprofit organizations for the development of affordable housing by Ordinance No ; and WHEREAS, on May 9, 2001, the City Council authorized implementation of the procedures contained in the Land Transfer Program Statement and consolidate all land assembly processes under the Land Transfer Program Statement to allow for the private sale of City surplus, tax foreclosed and seized property to qualified, non-profit organizations for the public purpose of creating or preserving affordable housing by Resolution No ; and WHEREAS, on June 27, 2001, the City Council authorized implementation of policies and procedures contained in the adopted Housing Policy and to allow for modifications to Housing Program Statements under the adopted Housing Policy by Resolution No ; and WHEREAS, on December 8, 2003, the City Council authorized an ordinance amending Chapter 2 of the Dallas City Code to allow for changes in and extension of the development periods under H.B. 110 proposals and update references to applicable state law by Ordinance No ; and WHEREAS, on December 8, 2003, the City Council authorized an amendment of the program statement of the Land Transfer Program Policy to reflect the December 8, 2003 Ordinance change and changes to the program statement by Resolution ; and WHEREAS, on November 10, 2004, the City Council authorized an amendment of the program statement of the House Bill 110 Program to prohibit the placement of industrialized housing on properties sold by the City by Resolution ; and

36 COUNCIL CHAMBER April 13, 2011 WHEREAS, on February 25, 2011, the City received two proposals from Dallas Neighborhood Alliance for Habitat, Inc. to purchase two (2) properties shown on Exhibit A for construction of two (2) single-family homes for purchase by low to moderate income homebuyers; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DALLAS: SECTION 1. That the public hearing shall be held at 1:00 p.m. on April 27, 2011 in the City Council Chambers, Dallas City Hall, 6th floor, 1500 ManIla Street, Dallas, Texas, at which time any interested person may appear and speak for or against the proposed private sale by quitclaim deed of two (2) unimproved properties acquired by the taxing authorities from the Sheriffs Sale to a qualified non-profit organization; and, at the close of the public hearing, consider approval of the sale of the properties to the nonprofit organization, all as shown on Exhibit A. SECTION 2. That notice of such public hearing shall be published in the newspaper of record not later than ten (10) days prior to the date of such hearing. Written notice of such hearing shall be sent to all owners of real property lying within 200 feet of the boundary of the area subject to the purchase and notice of the hearing along with a copy of this resolution shall be delivered in writing to the presiding officer of the governing body of each taxing unit that includes in its boundaries real property that is to be included in the proposed purchase. SECTION 3.That this resolution shall take effect immediately from and after its passage, in accordance with the Charter of the City of Dallas, and it is accordingly so resolved. DISTRIBUTION: Housing/Community Services Department City Attorney s Office Office of Financial Services/Community Development, 4FN Office of Property Management

37 EXHIBIT A TAX FORECLOSURE PROPERTY SALE PARCEL Address Mapsco Non-Profit Sale NO. Organization Amount Baldwin 46R Dallas $1,OOOOO Neighborhood Alliance for Habitat, Inc Jamaica 46R Dallas $1, Neighborhood Alliance for Habitat, Inc.

38 KEY FOCUS AREA: A Cleaner, Healthier City Environment AGENDA DATE: April 13, 2011 COUNCIL DISTRICT(S): 2, 4, 7 DEPARTMENT: Housing/Community Services CMO: A. C. Gonzalez, MAPSCO: 46J 46T 46V 46Z 55G 55L 55N 55X 55Y SUBJECT Authorize on-site reconstruction often homes in accordance with the requirements of the Reconstruction/SHARE Program Statement for the properties located at: 1533 Maywood Avenue in the amount of $93,400; 2831 Burger Avenue in the amount of $93,400; 2002 Idaho Avenue in the amount of $93,400; 1119 Bonnie View Road in the amount of $93,400; 3307 Jerome Street in the amount of $93,400; 2331 Hudspeth Avenue in the amount of $93,400; 418 Bonnie View Road in the amount of $93,400; 3230 Reynolds Avenue in the amount of $93,400; 4109 Marshall Drive in the amount of $93,400; and 3529 Cauthorn Drive in the amount of $93,400 - Total amount not to exceed $934,000 - Financing: Community Development Block Grant Reprogramming Funds ($467,000); HOME Investment Partnership Program Grant Funds ($280,200) and HOME Investment Partnership Program Grant Funds ($186,800) BACKGROUND The homeowners and the properties herein described and their properties are eligible for a Reconstruction/SHARE Program loan. The homeowners are below 80% AMFI and their names, ages and property addresses follow: Dorothy Mae Allen, an elderly female, 79 years old, residing at 1533 Maywood Avenue; Audrey Joe Edwards, an elderly female, 75 years old, residing at 2831 Burger Avenue; Ruby J. Taylor, a disabled female, 56 years old, residing at 2002 Idaho Avenue; John Andrew Smith and Odean Harris Smith, an elderly couple, 74 and 73 years old, residing at 1119 Bonnie View Road; Sedalia Targton, an elderly female, 80 years old, residing at 3307 Jerome Street; John Andrew Owens and Bobbie J. Owens, an elderly couple, 73 and 65 years old, residing at 2331 Hudspeth Avenue; Esther M. Stewart, an elderly female, 73 years old, residing at 418 Bonnie View Road; Abe Washington, an elderly male, 83 years old, residing at 3230 Reynolds Avenue; Doris Marie Tate, an elderly female, 75 years old, residing at 4109 Marshall Drive; and Fayrene Wallace, an elderly female, 85 years old, residing at 3529 Cauthorn Drive.

39 BACKGROUND (continued) Authorization by City Council is required before proceeding with on-site reconstruction of a home when all of the following conditions exist: (a) repairs necessary to meet the Quality Standards and all applicable codes cannot be accomplished within the program funding limits; (b) the condition of the home creates an imminent danger to the life, health and/or safety of the residents, and/or the neighborhood; and (c) repairs are not feasible to extend the life of the repaired structure beyond 15 years. This action provides the authority to proceed with on-site reconstruction of ten (10) single-family homes in compliance with the conditions listed above. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On November 12, 2007, City Council approved the Program Statement authorizing the Housing Department to implement the Reconstruction/SHARE Program Statement for reconstruction on-site pursuant to certain conditions for assistance up to $87,500 by Resolution No On April 23, 2008, City Council authorized an amendment to the Reconstruction/SHARE Program Statement to add an amenities package up to $5,900 by Resolution No On October 8, 2008, City Council authorized an amendment to the Reconstruction/SHARE Program Statement to assist low-income homeowners in Dallas earning less than 80% of Area Median Family Income (AMFI), and are 62 years of age or older or disabled, and to provide assistance with one (1) tax and insurance payment by Resolution No On December 9, 2009, City Council authorized an amendment to the Reconstruction/SHARE Program Statement to increase the maximum Reconstruction Program Assistance Type One loan amount from $87,500 to $93,400 by Resolution No On September 22, 2010, City Council authorized modifications to the Program Statement for the Reconstruction/SHARE Program to include reconstruction of homes with a failure of 3 systems and a foundation, and/or life, safety and health concerns. Allow refinancing of secured housing liens up to the dollar amount of the amenities package of $5,900.00; thereby reducing the dollar amount available for reconstruction to no less than $87,500, but not changing the total loan amount of $93,400. Annually 10% of funds may be used to assist persons younger than 62 years of age, or without a disability, and still meeting all other loan criteria by Resolution No Agenda Date 04/13/ page 2

40 RSCAL INFORMATION Community Development Block Grant Reprogramming Funds- $467, HOME Investment Partnership Program Grant Funds -$280, HOME Investment Partnership Program Grant Funds - $186,800 Council District 2 - Council District 4 - Council District 7 - $186,800 $280,200 $467,000 MAP(S) Attached Agenda Date 04/13/ page 3

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51 COUNCIL CHAMBER April 13, 2011 WHEREAS, on November 12, 2007, City Council the Program authorizing the Housing to implement the Reconstruction/SHARE Program for reconstruction on-site to certain conditions and for up to by Resolution No ; Statement $87,500 Department pursuant and approved WHEREAS, on April 23, 2008, City Council authorized an Reconstruction/SHARE Program which an $5,900 by Resolution No ; and Statement added WHEREAS, on 8, 2008, City Council authorized an Reconstruction/SHARE Program to low-income of AMFI, and 62 of or older or and to provide (1) tax by Resolution No ; and October years age and insurance payment Statement assist disabled, amendment amenities package amendment homeowners assistance Statement assistance to the up to to the at 80% with one WHEREAS, on 9, 2009, City Council authorized an to the Reconstruction/SHARE Program to the maximum Reconstruction Program Assistance Type One loan from $87,500 to by Resolution No ; and WHEREAS, on Program ; and Statement December September Statement amount increase $93,400 amendment 22, 2010, the City Council authorized modifications to the for the Reconstruction/SHARE Program by Resolution No. WHEREAS, the at the herein applications to the Home Repair Program: Dorothy Mae Allen 1533 Maywood Avenue; Audrey Edwards at 2831 Burger Avenue; Ruby J. Taylor at 2002 Idaho Avenue; Andrew Smith and Harris Smith at 1119 Bonnie View Road; Targton at 3307 Street; Andrew Owens and Bobbie J. at 2331 Hudspeth Avenue; at 418 Bonnie View Road; Abe Washington at 3230 Reynolds Avenue; Doris Marie at 4109 Marshall Drive; Wallace 3529 Cauthorn Drive; Sedalia John at Joe homeowners Jerome Esther M. and Odean Stewart addresses John Tate described have made at Owens and Fayrene WHEREAS, all conditions outlined in the Reconstruction/SHARE Program for on-site reconstruction of were met for the property owners: Dorothy Mae Allen; Audrey Edwards; Ruby J. Taylor; Andrew Smith and Harris Smith; Targton; Andrew Owens and Bobbie J. Owens; M. Stewart; Abe Washington; Doris Marie Tate; and Wallace; NOW, THEREFORE, Statement Odean Esther three Sedalia Joe the homes John John Fayrene BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DALLAS:

52 COUNCIL CHAMBER Airil 13, 2011 SECTION 1. That the applications from the and their herein for reconstruction loans be the Reconstruction/SHARE Program: Dorothy Mae Allen at 1533 Maywood Avenue; Audrey Edwards at 2831 Burger Avenue; Ruby J. Taylor at 2002 Idaho Avenue; Andrew Smith and Harris Smith at 1119 Bonnie View Road; Targton at Street; Andrew and Bobbie J. at 2331 Hudspeth Avenue; M. at 418 Bonnie View Road; Abe Washington at 3230 Reynolds Avenue; Doris Marie Tate at 4109 Marshall Drive; and in the shown in Section 3 hereof. amount Owens approved under Owens Sedalia homeowners John Joe 3307 Jerome properties described Esther Fayrene Wallace at 3529 Cauthorn Drive. The Odean Stewart loans are John SECTION 2. That the City Manager, upon approval to form by the City Attorney is authorized to the following loan Dorothy Mae Allen for on-site reconstruction at 1533 Maywood Avenue; Audrey Edwards for on-site reconstruction at 2831 Burger Avenue; Ruby J. Taylor for on-site reconstruction at 2002 Idaho Avenue; Andrew Smith Harris Smith for on-site reconstruction at 1119 Bonnie View Road; Targton for on-site reconstruction at 3307 Street; Andrew and Bobbie J. for on-site reconstruction at 2331 Hudspeth Avenue; M. for on-site reconstruction at 418 Bonnie View Road; Abe Washington for on-site reconstruction at 3230 Reynolds Avenue; Doris Marie for on-site reconstruction at 4109 Marshall Drive; Wallace for on-site reconstruction at 3529 Cauthorn Drive. John Tate execute John Owens Esther Sedalia Stewart and Odean documents: Owens as Joe Fayrene Jerome SECTION 3. That the City Controller is authorized to make of the home in with the following funding information: accordance payments for reconstruction Fund HMO9 Dept HOU, Unit 663B, Obj 3099 CT H0U663BD517 ($93,400) Vendor # VS Altura Homes DEW, LC 1533 Maywood Avenue Fund 09R1 Dept HOU, Unit 653B, Obj 3099 CT HOU653BD51 9 ($93,400) Vendor # Torres 2831 Burger Avenue Construction Fund HMO9 Dept HOU, Unit 663B, Obj 3099 CT HOU663BD518 ($93,400) Vendor # VS000003O1 19 Myers Custom Builders 2002 Idaho Avenue Fund 09R1 Dept HOU, Unit 653B, Obj 3099 CT HOU653BD516 ($93,400) Vendor Opportunity Developers 1119 Bonnie View Road # Fund 09R1 Dept HOU, Unit 653B, Obj 3099 CT HOU653BD51 5 ($93,400) Vendor # VC Eric Miller Homes, Inc Jerome Street

53 418 COUNCIL CHAMBER Fund HM1O Dept HOU, Unit 462C, Obj 3099 CT H0U462CE525 ($93,400) Vendor # Opportunity Developers 2331 Hudspeth Avenue Fund 09R1 Dept HOU, Unit 653B, Obj 3099 CT H0U653BE524 ($93,400) Vendor # Bethel Construction Bonnie View Road Fund HM1O Dept HOU, Unit 462C, Obj 3099 CT H0U462CE528 ($93,400) Vendor # VC Eric Miller Homes, Inc 3230 Reynolds Avenue Fund 09R1 Dept HOU, Unit 653B, Obj 3099 CT H0U653BE526 ($93,400) Vendor # VC Eric Miller Homes, Inc Marshall Drive Fund HMO9 Dept HOU, Unit 663B, Obj 3099 CT H0U663BE527 ($93,400) Vendor # VS Altura Homes DFW, LC 3529 Cauthorn Drive April 13, 2011 SECTION 4. That this resolution shall take effect immediately from and after its passage in accordance with the Charter of the City of Dallas and it is accordingly so resolved. DISTRIBUTION: Housing/Community Services Department City Afforney s Office Office of Financial Services/Community Development, 4FS

54 KEY FOCUS AREA: Economic Vibrancy AGENDA DATE: April 13, 2011 COUNCIL DISTRICT(S): 14 DEPARTMENT: Housing/Community Services CMO: A. C. Gonzalez, MAPSCO: 45Q SUBJECT Authorize the execution of a conditional grant agreement in the amount of $1,500,000 from the City Center Tax Increment Financing (TIE) District Fund to Hamilton Atmos LP for conversion of the vacant office building located at 1900 Jackson Street into 107 affordable residential units and residential amenities, 53 parking spaces located in the basements of 1900 Jackson Street and 1815 Wood Street, and streetscape and repair of all first floor windows and store fronts in the entire Atmos complex located at 1900 Jackson Street, 1815 Wood Street, 1915 Wood Street, and 301 South Harwood Street Not to exceed $1,500,000 - Financing: City Center TIE District Funds BACKGROUND The City Center TIE Plan sets out that 12.55% of each year s increment over the remaining life of the TIE District, in an amount not to exceed $5,000,000 will be dedicated to affordable housing. The funds are to maximize public benefit created by new affordable housing throughout the city. In 2002 and 2004, the City Center TIF District provided funds totaling $1,000,000 and in 2007 the City Center TIE District provided funds totaling $620,566 to the Affordable Housing Cost participation Program (AHCP) for incentives to developers and homebuilders to pay the costs of providing affordable housing for single family Neighborhood Investment Program (NIP) sites, Land Bank and in-fill lot development, including upgrading of outdated water and sewer lines, fire hydrant installation and green building. The City of Dallas paid up to $2,500 in incentives for the City s participation in funding costs for construction and sale of each affordable single-family home. Additionally, the AHCP provided up to $4,442 per home in construction cost participation to contractors in the Reconstruction/SHARE Program.

55 BACKGROUND (continued) The deteriorating financial climate led the City to its priorities for the of City TIE District affordable housing Now, with the downturn in the single family housing market, is no longer priority to fund the AHCP. The higher priority, while capital funding is available, not willing to loan much collateral, and for available funding is to momentum going in the downtown a has Center causing decreased demand banks are area. have increased, as reevaluate set aside. against keep development use economic there interest rates The City received a from Hamilton Atmos LP for of the Atmos Lofts project to convert 4 commercial buildings located at S. Harwood 1915 Wood and 1815 Wood into a mixed-use project including 10,000 of bottom floor retail and 230 the retail with 46 units restricted for 15 for affordability to families with at 80% or of Area Median Family Income by HUD. homes above established Street, proposal vacant square feet space, incomes Street, apartment less deed development Street space less Jackson Street, apartment years The City received an proposal from Hamilton Atmos LP enabling the project to move forward in two The $1.5M grant of City TIE District affordable housing funds will be to help finance the first of the Atmos Lofts project. I of the project will be primarily located in 1900 the building of the four building complex. This will 107 units will 830 feet. All 107 will be to 60% of Area Median Family Income by HUD. This will include building out the leasing office and all of the project including the pool, outdoor party deck, and grill I will also include, 53 parking located in the of 1900 and 1815 Wood and and repair of all first floor windows and fronts in the entire complex located at Wood 1915 Wood 301 S. Harwood (the Atmos Complex). Street, apartment has west Phase that people that earn less than and phase Street, fitness center, spaces amended average streetscape Street separate phases. square used Jackson Street, basements phase apartments Center phase as established areas. Phase Jackson Street Street, store as Jackson have leased amenities Street, of Community Development Block Grant Section 108 Loan will be in II of the project for conversion of 3 commercial buildings, from 4 buildings previously located at 301 S. Harwood 1915 Wood and 1815 Wood into a mixed-use project including 9,500 feet of bottom floor retail and 123 units of the retail including 63 units restricted for 15 for affordability to families with at 80% or of Area Median Family Income by HUD, 199 parking $11,750,000 funds Street, incomes square used a decrease spaces. Phase Street, less deed space Street proposed, years as established Guarantee vacant apartment homes above and Agenda Date 04/13/2011 page 2

56 BACKGROUND (continuedj On February 10, 2011, at a joint meeting of the Downtown Connection TIE and the City Center TIE Boards, the City Center TIE Board of Directors reviewed and recommended approval by the Dallas City Council of a project grant in the amount of $1,500,000 from the City Center TIF District Affordable Housing funds to Hamilton Atmos LP for Phase I of the Atmos Lofts complex including the redevelopment of the Atmos Complex. This agenda item will authorize the City Manager or designee, upon approval as to form by the City Attorney, to execute a conditional grant agreement with Hamilton Atmos LP in an amount not to exceed $1,500,000 for the conversion of the vacant office building located at 1900 Jackson Street into 107 affordable residential units and residential amenities, for the construction of 53 parking spaces in the basements of 1900 Jackson and 1815 Wood Streets, and streetscape and repair of all first floor windows and store fronts in the Atmos Complex. The Hamilton Atmos LP conditional grant agreement will require that Hamilton Atmos LP obtain sufficient financing for the $16,094,583 in estimated total project costs for Phase I of the Atmos Lofts project including Low Income Housing Tax Credits (LIHTC) in the approximate amount of $10,691,906 and LIHTC bank loan in the approximate amount of $2,402,677; that Hamilton Atmos LP obtain a building permit for Phase I by June 1, 2011 and obtain a certificate of occupancy for Phase I by February 28, 2013; that the City Center TIE District funds will be dispersed for work in place at the rate of 50% when 50% of the work is completed and 50% when the project receives its Certificate of Occupancy; and that Hamilton Atmos LP will file deed restrictions on the property at 1900 Jackson Street to assure housing affordability. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On December 11, 2002, the City Council authorized the use of City Center TIE District funds to provide funding for affordable housing by Resolution No On February 10, 2011, at a joint meeting of the City Center TIE District and Downtown Connection Center TIE Boards of Directors, the City Center TIE Board reviewed and recommended approval by the City Council a conditional grant in the amount of $1,500,000 to the Hamilton Atmos LP for the redevelopment of the Atmos Lofts complex, and the Downtown Connection TIF District Board reviewed and approved amendments to the Development Agreement with Hamilton Atmos LP for the redevelopment of the Atmos Complex. On February 22, 2011, the Economic Development Committee was briefed on the amendments to the Development Agreement with Hamilton Atmos LP as approved by the Downtown Connection TIE District Board. Agenda Date 04/13/ page 3

57 PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) (continued) On March 7, 2011, the Housing Committee was briefed on the Atoms Lofts project and voted to favorably recommend that the City provide $1,500,000 in City Center TIE District funds for the project. On March 9, 2011 the City Council authorized an amendment to the development agreement with Hamilton Atmos, LP to redevelop the Atmos Complex in two phases, increase the total number of units to 230 units and affordable units to 170 units, change the deadlines to obtain a building permit for Phase Ito June 1, 2011 and for Phase II to June 1, 2015 and a certificate of occupancy for Phase Ito February 28, 2013 and for Phase II to December 31, 2016, change Downtown Connection TIE District funding to an amount not to exceed $15,000,000, plus interest for a total incentive not to exceed $23,000,000 for Phases I and II, change the due dates for the remaining option fee payment to June 1, 2011 and change the method of reimbursement to reflect the district s Increment Allocation policy approved by the Downtown Connection TIE District Board on September 16, 2009 by Resolution No FISCAL INFORMATION City Center TIE District Funds - $1,500,000 OWNERS Hamilton Atmos LP Lawrence E. Hamilton, Principal Lawrence E. Hamilton Ill, Principal MAP(S) Attached Agenda Date 04/13/ page 4

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59 COUNCIL CHAMBER April 13, 2011 WHEREAS, the City of Dallas seeks to increase the supply of new affordable multifamily housing for low and moderate income families and to fund projects that increase the level of business activity by expanding economic activities and increasing the level of affordable housing in the downtown area; and WHEREAS, The City Center TIE Plan sets out that 1255% of each year s increment over the remaining life of the TIE District, in an amount not to exceed $5,000,000 will be dedicated to affordable housing to maximize public benefit created by new affordable housing throughout the city; and WHEREAS, on December 11, 2002, the City Council authorized the use of City Center TIE District funds to provide funding for affordable housing by Resolution No ; and WHEREAS, on February 10, 2011, at a joint meeting of the City Center TIE District and Downtown Connection Center TIF Boards of Directors, the City Center TIE Board reviewed and recommended approval by the City Council of a conditional grant in the amount of $1,500,000 to the Hamilton Atmos LP for the redevelopment of the Atmos Lofts complex, and the Downtown Connection TIE District Board reviewed and approved amendments to the Development Agreement with Hamilton Atmos LP for the redevelopment of the Atmos Complex; and WHEREAS, on February 22, 2011, the Economic Development Committee was briefed on the amendments to the Development Agreement with Hamilton Atmos LP as approved by the Downtown Connection TIE District Board; and WHEREAS, on March 7, 2011, the Housing Committee was briefed on the Atoms Lofts project and voted to favorably recommend that the City provide $1,500,000 in City Center TIE District funds for the project; and WHEREAS, on March 9, 2011 the City Council authorized an amendment to the development agreement with Hamilton Atmos, LP to redevelop the Atmos Complex in two phases, increase the total number of units to 230 units and affordable units to 170 units, change the deadlines to obtain a building permit for Phase I to June 1, 2011 and for Phase II to June 1, 2015 and a certificate of occupancy for Phase II to December 31, 2016, change Downtown Connection TIE District funding to an amount not to exceed $15,000,000, plus interest for a total incentive not to exceed $23,000,000 for Phases I and II, change the due dates for the remaining option fee payment to June 1, 2011 and change the method of reimbursement to reflect the district s Increment Allocation policy approved by the Downtown Connection TIE District Board on September 16, 2009 by Resolution No ; and

60 COUNCIL CHAMBER April 13, 2011 WHEREAS, the City of Dallas desires to provide $1,500,000 from City Center Tax Increment Financing (TIF) District Funds in a conditional grant agreement to Hamilton Atmos LP for conversion of the vacant office building located at 1900 Jackson Street into 107 affordable residential units and residential amenities, 53 parking spaces located in the basements of 1900 Jackson Street and 1815 Wood Street, and streetscape and repair of all first floor windows and store fronts in the entire Atmos complex located at 1900 Jackson Street, 1815 Wood Street, 1915 Wood Street, and 301 S. Harwood Street; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DALLAS: SECTION 1. That the City Manager or designee, upon approval as to form by the City Attorney, is hereby authorized to execute documents for a conditional grant in the amount of $1,500,000 to Hamilton Atmos LP ( Borrower ) for conversion of the vacant office building located at 1900 Jackson Street into 107 affordable residential units and residential amenities, 53 parking spaces located in the basements of 1900 Jackson Street and 1815 Wood Street, and streetscape and repair of all first floor windows and store fronts in the entire Atmos complex located at 1900 Jackson Street, 1815 Wood Street, 1915 Wood Street, and Harwood Street. The terms of the agreement include: (a) Hamilton Atmos LP obtain sufficient financing for the $16,094,583 in estimated total project costs for Phase I of the Atmos Lofts project including Low Income Housing Tax Credits (LIHTC) in the approximate amount of $10,691,906 and LIHTC bank loan in the approximate amount of $2,402,677. (b) Hamilton Atmos LP obtain a building permit for Phase obtain a certificate of occupancy for Phase I by June 1, 2011 and by February 28, 2013 (c) The City Center TIE District funds will be dispersed for acceptable work in place at the rate of 50% when 50% of the work is completed and 50% when the project receives its Certificate of Occupancy. I (d) Hamilton Atmos LP will file deed restrictions on the property at 1900 Jackson Street to assure housing affordability for a minimum of 15 years. SECTION 2 That the City Manager, upon approval as to form by the City Attorney, is authorized to terminate deed restrictions on the property upon compliance with the conditional grant terms and deed restrictions.