From
Katherine Garcia-Thomson
Title
Resolution in support of the Lennox House application for Tax Credits
Presenter
William A. Hills, Director, Housing and Neighborhood Services
Recommended Action
Approve
Analysis
The Lennox House was opened by National Church Residences (NCR) in the early nineties after the extensive renovation of the former Lennox Hotel. It is now 40 apartments designated for senior residents. The property has had minor renovations over the years; however, NCR in conjunction with the City of Grand Prairie revitalization efforts is planning a major renovation to the facility. This renovation will be partially supported by the use of competitive 9% Low Income Housing Tax Credits (LIHTC).
The LIHTC program requires the support of the local political subdivision in the form of a resolution. This resolution can be of general support; however, staff recommends the adoption of a resolution providing a more comprehensive level of support. NCR has agreed to work with the Downtown Revitalization team and has agreed to insure the renovations, meet the Downtown Revitalization Plan. Therefore, staff recommends agreeing to a minimum of $500.00 in funding through in-kind considerations contingent on NCR receiving the LIHTC applied for. Additionally, we recommend the acknowledgement of their contribution to the Downtown Master Plan for the purposes of the 2020 LIHTC application round, as they represent the only residential facility located within the Downtown Master Plan.
Financial Consideration
None
Body
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS IN SUPPORT OF THE SUBMISSION OF AN APPLICATION TO THE 2020 COMPETITIVE HOUSING TAX CREDIT (HTC) PROGRAM THROUGH THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS (TDHCA) BY LENNOX HOUSE SENIOR HOUSING LIMITED PARTNERSHIP, FOR THE REHABILITATION OF LENNOX HOUSE APARTMENTS; AND PROVIDING AN EFFECTIVE DATE
WHEREAS, Lennox House Senior Housing Limited Partnership (“Applicant”) has requested funding support from the City of Grand Prairie to rehabilitate an existing 40 unit affordable senior rental housing community named Lennox House Apartments located at 110 NW 2nd Street, Grand Prairie, Dallas County, Texas (the “Development”); and
WHEREAS, the Applicant intends to submit an application to the Texas Department of Housing and Community Affairs (“TDHCA”) for an allocation of 2020 Competitive 9% Housing Tax Credits (“HTC”) for the rehabilitation of Lennox House; and
WHEREAS, pursuant to the rules that govern the allocation of HTCs by TDHCA, an applicant who provides a resolution of support from the governing body of a local political subdivision to the Development will improve the overall success of its application; and
WHEREAS, pursuant to the rules that govern the allocation of HTCs by TDHCA, an applicant who provides a resolution from the governing body of a local political subdivision agreeing to commit a minimum of $500.00 of funding assistance to the Development will improve the overall success of its application; and
WHEREAS, the Applicant has requested a commitment of required funding assistance for $500.00 for its application in the form of a reduced fees for the benefit of the Development from the City of Grand Prairie for its application to TDHCA for the rehabilitation of Lennox House; and
WHEREAS, the City of Grand Prairie selects Lennox House as contributing more than any other development, for purposes of the 2020 9% Tax Credit Application Round, for the Downtown Master Plan for Grand Prairie under Resolution 5016-2019; and
WHEREAS, the City of Grand Prairie selects Lennox House as contributing more than any other development, for purposes of the 2020 9% Tax Credit Application Round, Grand Prairie’s Expanded TIRZ Area #2 under Ordinance 18-8352; and
WHEREAS, 100% of the members of the City Council of the City are elected officials
NOW, THEREFORE, BE IT RESOLVED BY CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, THAT:
SECTION 1
That the City of Grand Prairie, acting through its governing body, hereby confirms that it supports, approves the tax credit application for the proposed rehabilitation of Lennox House by Lennox House Senior Housing Limited Partnership located at 110 NW 2nd Street and that this formal action has been taken to put on record the opinion expressed by the City of Grand Prairie in Dallas County on January 7, 2020, and
SECTION 2
That, the City of Grand Prairie, will commit a funding amount to the Development of waiving or reducing the Building Permit Fee in a minimum amount of $500.00 should the project be selected for funding; and
SECTION 3
That, notwithstanding anything herein to the contrary, the funding commitment by the City of Grand Prairie, shall be contingent on the Applicant’s receipt of commitment of HTCs for the Development from TDHCA; and
SECTION 4
That, the City of Grand Prairie, Dallas County, Texas hereby supports the proposed Lennox House Apartments, and confirms that its governing body has voted specifically to approve the construction and/or rehabilitation of the Development and to authorize an allocation of Housing Tax Credits for the Development pursuant to Texas Government Code §2306.6703(a)(4), and
SECTION 5
That, the City of Grand Prairie selects Lennox House as the development most contributing to the Downtown Master Plan for Grand Prairie under Resolution 5016-2019, for purposes of the 2020 LIHTC application round; and
SECTION 6
That, the City of Grand Prairie selects Lennox House as the development most contributing to the TIRZ #2 Expansion Area for Grand Prairie under Ordinance 18-8352, for purposes of the 2020 LIHTC application round; and
SECTION 7
That, for and on behalf of the Governing Body, Ron Jenson, Mayor is hereby authorized, empowered, and directed to certify these resolutions to the Texas Department of Housing and Community Affairs; and
SECTION 8
That, the City of Grand Prairie is not a related party to the Applicant, and any funding assistance committed by the City to the development of Lennox House pursuant to this resolution will not have been first provided to the City by the Applicant or any related party to the Applicant.
SECTION 9
That this Resolution shall be and become effective immediately upon and after its adoption and approval.
PASSED AND APPROVED this the 7th day of January, 2020.