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Home My WebLink About21-094RESOLUTION NO. 21-094 A RESOLUTION OF THE CITY OF DENTON SUPPORTING THE TX LEGACY DENTON, LP'S 9% HOUSING TAX CREDIT APPLICATION TO TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS FOR PROPOSED NEW CONSTRUCTION OF THE LEGACY IN DENTON APARTMENTS TO PROVIDE AFFORDABLE RENTAL HOUSING; COMMITTING TO PROVIDE FEE REDUCTIONS IN AN AMOUNT NOT TO EXCEED $500.00; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the TX Legacy Denton, LP ("Applicant") is proposing the new construction of a multi -family affordable rental housing development to be located at approximately 4298 E. McKinney, Denton, Texas 76208 to be named The Legacy in Denton Apartments (the "Project"); and WHEREAS, the Applicant has advised the City that it intends to submit an application to the Texas Department of Housing and Community Affairs ("TDHCA") for 2021 Housing Tax Credits funds to provide equity financing for the Project (the "Application"); and WHEREAS, pursuant to 10 TEX. ADMIN. CODE RULE §11.9(d)(1) (2020), TDHCA will provide extra points to an application for a municipality's resolution of support for a development which will be located in such municipality's jurisdiction; and WHEREAS, Applicant has requested that support from the City; and WHEREAS, Applicant has also requested that City provide a letter substantially in the form attached hereto as Exhibit A (the "Fee Reduction Letter"), committing to provide fee reductions in an amount not to exceed $500.00 in connection with the development of the Project as the City's financial contribution pursuant to 10 TEX. ADMIN. CODE RULE §1 1.9(d)(2) (2020) for purposes of gaining points for its application to the TDHCA for 2021 Housing Tax Credits; and WHEREAS, Applicant has advised the City that it intends to seek property tax exempt status for the Project and to that end has committed to the City that it will use its best efforts to partner with a qualified charitable organization based in Denton County, Texas and that it will use its best efforts, and that it will cause its contractors and subcontractors on the Project to each use their best efforts, to maximize sales tax payable to the City by obtaining equipment and construction materials under "separated contracts" and not "lump -sum contracts" as defined in the TEX. ADMIN. CODE, Title 34, Chapter 3, Subchapter O, Rule §3.291(a)(3) and (13) from vendors having a place of business within the City of Denton or, if obtained from vendors with no place of busines in Texas or if ordering directly from suppliers, from vendors or suppliers who ship and deliver the equipment and materials to a location within the City of Denton; and WHEREAS, the City Council of the City of Denton wishes to express support for this proposed Project's application to TDHCA and to commit to the requested fee reductions to facilitate the possible award of Housing Tax Credits to the Project; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The recitals contained in the preamble of this Resolution are incorporated by reference into the body of this Resolution as if fully set forth herein. SECTION 2. As provided in 10 TEX. ADMIN. CODE RULE §11.3(e) (2020) and § 11.4(c)(1) of the Qualified Allocation Plan, it is hereby acknowledged that the proposed Project is located in a census tract that has more than 20% Housing Tax Credit Units per total households. SECTION 3. As provided in 10 TEX. ADMIN. CODE RULES §11.3(b) and §11.3(d) (2020) of the Qualified Allocation Plan, it is hereby acknowledged that the proposed Project may be within two linear miles from another proposed development site in the same year, and may be within one linear mile from another proposed development site within the three-year period preceding the date the Certificate of Reservation is issued. SECTION 4. The City affirms that the proposed Project is consistent with the jurisdiction's obligation to affirmatively further fair housing pursuant to 10 TEX. ADMIN. CODE RULES §11.3(e) and §11.4(c)(1) (2020) of the Qualified Allocation Plan. SECTION 5. In accordance with the requirements of TEX. GOVT CODE §2306.67071 (2013) and 10 TEX. ADMIN. CODE RULE § 11.204(4) (2020), it is hereby found that: 1. Notice has been provided to the City in accordance with TEX. GOVT CODE §2306.67071(a) (2013); and 2. The City has had sufficient opportunity to obtain a response from the Applicant regarding any questions or concerns about the proposed Application; and 3. The City has held a hearing at which public comment may be made on the proposed Application in accordance with TEX. GOVT CODE §2306.67071(b) (2013); and 4. After due consideration of the information provided by the Applicant and public comment, the City does support the proposed Application. SECTION 6. The City affirms its commitment to provide Applicant with fee reductions in a total amount not to exceed $500.00 in connection with the development of the Project conditioned on: (i) the Applicant securing the 9% housing tax credit from the TDHCA, and (ii) Applicant securing development plan approvals for the Project, including any required zoning approvals, from the City. SECTION 7. The City Manager is hereby authorized, empowered, and directed to certify this Resolution to the TDHCA and to execute any other documents that may be necessary for carrying out this Resolution, including the Fee Reduction Letter. SECTION 8. This Resolution shall be effective as of its date of approval and passage by City Council. The motion to approve this Resolution was made by ��/ yy2,,",e and seconded by iem,�,,��2 , the Resolution was passed and approved by the following vote - ]: Mayor Gerard Hudspeth: Birdia Johnson, District 1: Connie Baker, District 2: Jesse Davis, District 3: John Ryan, District 4: Deb Armintor, At Large Place 5: Paul Meltzer, At Large Place 6: Ave Nay Abstain Absent PASSED AND APPROVED this the day of �6,/,�fl , 2021. GERARD HtrtDSPETH, MAYOR ATTEST: ROSA RIOS, CITY SECRETARY BY: .�..,........ ''� APPROVED AS TO LEGAL FORM: 's AARON LEAL, CITY ATTORNEY i% BY:Cir '•��' �0 i�►�►► ``,` EXHIBIT A JCO&F City Manager's office DENTON 215 E. McKinney St., Denton, TX 76201 • (940) 349-8307 February 22, 2021 Mr. Jack D. Traeger Legacy Multifamily Development, LLC 17304 Preston Road, Suite 800 Dallas, Texas 75252 RE: Commitment of Development Funding by Local Political Subdivision for TX Legacy Denton, LP's for proposed new construction of The Legacy in Denton Apartments at 4298 E. McKinney, Denton, Texas 76208 in Denton, City of Denton, Denton County, Texas Dear Mr. Traeger, Pursuant to your request, I can confirm that I am the local government official with appropriate jurisdiction to state the following. TX Legacy Denton, LP has requested a de minimis amount of funding for the support of The Legacy in Denton Apartments development to satisfy a requirement of Section 11.9(d)(2) of the 2017 Qualified Allocation Plan as published by the Texas Department of Housing and Community Affairs. The City affirms its commitment to provide The Legacy in Denton Apartments development (the "Project") with fee reductions in a total amount not to exceed $500.00 in connection with the development of the Project conditioned on: (i) the Applicant securing the 9% housing tax credit from the TDHCA, and (ii) Applicant securing development plan approvals for the Project, including any required zoning approvals, from the City. It is the intention of this letter to firmly commit this benefit to the Project in order to satisfy the requirement of 10 TEX. ADMIN. CODE RULE § 11.9(d)(2) (2020) in order to gain points under that rule for this commitment of funds. Sincerely, Digi nllysgnetl by -Hi - Todd Hileman DN: m=Hil man,�rya Demm�, —ry.anagu, ma'�-todH 2170 �rltyvfdemm�mm, c=115 Da[r.2021.02.12 0256.63 -06'00' Todd Hileman City Manager City of Denton, Texas OUR CORE VALUES Integrity • Fiscal Responsibility • Transparency • Outstanding Customer Service ADA/EOE/AREA www.cityofdenton.com TDD (800) 735-2989