HomeMy WebLinkAboutResolution 2015-011 RESOLUTION NO 2015-011
A RESOLUTION IDENTIFYING AREAS ELIGIBLE FOR INCLUSION IN
A COMMUNITY DEVELOPMENT PROGRAM AS REQUIRED BY
CHAPTER 373, TEXAS LOCAL GOVERNMENT CODE; DESCRIBING A
PROPOSED COMMUNITY DEVELOPMENT PROGRAM; ADOPTING A
PLAN UNDER WHICH CITIZENS MAY PUBLICLY COMMENT ON
SUCH PROPOSED COMMUNITY DEVELOPMENT PROGRAM AND
ESTABLISHING THE DATE FOR PUBLIC HEARINGS IN WHICH
CITIZENS MAY PUBLICLY COMMENT ON A PROPOSED COMMUNITY
DEVELOPMENT PROGRAM BEING CONSIDERED FOR ADOPTION
BY THE CITY COUNCIL.
WHEREAS, Chapter 373, Texas Local Government Code provides for establishment of
community development programs by municipalities in order to promote the public
purposes set out therein, including the development of viable urban communities; and,
WHEREAS, Section 373.006, Texas Local Government Code requires the adoption by
ordinance or resolution of a plan under which citizens may publicly comment on any
such community development program; and,
WHEREAS, Chapter 380, Texas Local Government Code provides for establishment of
economic development programs by municipalities in order to promote the public
purposes set out therein; and,
WHEREAS, Section 380.001, Texas Local Government Code authorizes the governing
body of a municipality to establish and provide for the administration of one or more
economic development programs including programs for making loans and grants of
public money to promote local economic development.
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
NORTH RICHLAND HILLS, TEXAS THAT:
Section 1: a public hearing shall be held on Monday, April 27, 2015 which is before
the fifteenth day before adoption by the City Council of a community
development program described herein.
Section 2: The community development program to be considered shall be directed
toward improving and increasing the value of residential structures and
promoting home ownership within an area South and/or West of Loop 820,
East of Rufe Snow Drive, and North of Glenview Drive as depicted on
Exhibit A hereto which is an area in which predominately low and
moderate income persons reside with the goals of improving living and
economic conditions as authorized by Section 373.004, Texas Local
Government Code.
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Section 3: The activities to be conducted under the program shall be directed toward
achieving the purposes set forth by Section 373.002, Texas Local
Government Code including but not limited to:
(1) prevention of blighting influences and of the deterioration of property and
neighborhood and community facilities important to the welfare of the
community;
(2) elimination of conditions detrimental to the public health, safety, and
welfare;
(3) reduction of the isolation of income groups in communities and
geographical areas, promotion of increased diversity and vitality of
neighborhoods through spatial de-concentration of housing opportunities
for persons of low and moderate income, and revitalization of deteriorating
or deteriorated neighborhoods to attract persons of higher income; and
(4) alleviation of physical and economic distress through the stimulation of
private investment and community revitalization in eligible areas.
Section 4: The program may include the following activities:
(1) acquisition of real property, including air rights, water rights, and other
interests in real property, that:
(A) is blighted, deteriorated, deteriorating, undeveloped, or
inappropriately developed from the standpoint of sound community
development and growth;
(B) is appropriate for rehabilitation or conservation activities;
(C) is appropriate for the preservation or restoration of historic sites, the
beautification of urban land, or the conservation of open spaces,
natural resources, and scenic areas;
(D) is appropriate for the provision of recreational opportunities or the
guidance of urban development; or
(E) is to be used for the provision of public works, facilities, or other
improvements eligible for assistance under this chapter or is to be
used for other public purposes.
(2) municipal code enforcement in a deteriorated or deteriorating area in
which enforcement, combined with public improvements and public
services, may stop the decline of the area;
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(3) clearance, demolition, removal, and rehabilitation of buildings and
improvements,
(4) rehabilitation of privately owned properties;
(5) disposition, by sale, lease, donation, or otherwise, of real property
acquired under this program;
(6) relocation payments and assistance for individuals, families, businesses,
organizations, and farm operations if determined by the municipality to be
appropriate;
(7) activities that are conducted by public or private entities if the activities are
necessary or appropriate to meet the needs and objectives of the
community development plan, including acquisition rehabilitation and site
improvements which will increase taxable value and sale to owner
occupants;
(8) grants to community economic development projects, including projects
which will increase value of homes and provide for home ownership;
(9) provision of assistance to private, for-profit entities if the assistance is
necessary or appropriate to carry out an economic development project
such as increasing the value of homes and of taxable values within the
targeted area.;
(10) activities necessary to develop a comprehensive community development
plan and to develop a policy-planning-management capacity in order that
recipients of assistance under this chapter may more rationally and
effectively determine their needs, set long-term goals and short-term
objectives, devise programs and activities to meet those goals and
objectives, evaluate the progress of the programs, and carry out
management, coordination, and monitoring of activities necessary for
effective implementation of the programs.;
(11) payment of reasonable administrative costs and carrying charges related
to the planning and execution of community development and housing
activities, including the provision of information and resources to residents
of areas in which community development and housing activities are to be
concentrated with respect to the planning and execution of those activities.
Section 5: Program Overview. The specific activities which shall be initially
undertaken will be known as the Neighborhood Revitalization Program
(NRP) and is described as follows:
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(1) The Neighborhood Revitalization Program (NRP) is intended to revitalize
neighborhoods by renovating single-family owner-occupied homes in the
area described in Section 1. By renovating homes, the program will not
only boost property values in these neighborhoods, but also provide
interested single-family home buyers the opportunity to purchase an
updated and safe home that they can be proud to own at a reasonable
price. This program aims to give such neighborhoods a "facelift" while
continuing to attract responsible citizens.
(2) This program will provide a twenty percent (20%) grant of up to $10,000
for the completion of well-designed home renovations that make a home
more aesthetically pleasing and inspire the continued community growth
of the neighborhoods in the program's initial target zone.
(3) Contractors renovating homes, residents who currently own homes and
those looking to purchase homes to live in themselves qualify for the
incentive threshold within the program. Plans for a home's renovation will
be submitted to and approved by the City of North Richland Hills. A
home's renovation plan may not be altered without full and written consent
from the City. Deviations from the approved renovation plan may result in
a participant not receiving an incentive grant.
(4) Both contractors and homeowners should make a conscious effort to
source materials and services from vendors and service providers within
the City of North Richland Hills. If materials or services are available at a
lower cost in another city, those vendors or service providers may be
utilized in turn.
(5) NRP is not designed to subsidize corrections of building code violations
that prolong the life of a substandard home. All NRP project renovation
plans should strive toward the increase of a home's market value with the
guidance of a licensed residential real estate professional and licensed
appraiser.
(6) NRP has been funded by non-operational funds dedicated to economic
and residential development by the North Richland Hills City Council
beginning in the 2014-2015 fiscal year. This program is administered by
personnel from the City Manager's Office.
Section 6: Eligibility. To be eligible for consideration for participation in the program,
the following minimum requirements must be met:
(1) All participants:
(a) Home to be renovated must lie in target zone described in Section
1.
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(b) Renovations must increase the value of the home and may not be
only cosmetic/decor related.
(c) North Richland Hills Building permits must be obtained before work
commences.
(d) Completed home after proposed renovations must meet at City of
North Richland Hills residential building codes.
(e) Renovations must result in at least a 40% increase in value.
(f) Final home values must exceed $120,000.
(g) Final home values must exceed the top 20% of the Tarrant
Appraisal District's (TAD's) market value in the immediate area.
(h) A home is only eligible for this program one time
(2) For Applicants other than homeowner occupants:
(a) Must use contractors licensed to perform work in the state of Texas
and the City of North Richland Hills.
(b) Must agree to sell home to owner-occupant, not investor-owner, by
an instrument restricting such ownership for a period of 5 years.
(c) Must agree to not to rent home at any point before sale to owner-
occupant.
(d) Must agree that payment under this program will not be made until
the property is sold and it meets the following requirements:
1. Renovations must result in at least a 40% increase in value.
2. Final home values must exceed $120,000.
3. Final home values must exceed the top 20% of TAD's
market value in the area
Such purchase price shall be established by title company closing
documents submitted with the application. Such sale price shall be
documented by title company closing documents.
(3) For Homeowner Occupant applicant:
(a) Homeowner occupant applicant must be current on all property
taxes.
(b) The initial home value according to most recent TAD appraisal may
not exceed $150,000.
(c) Applicant must hire a licensed residential real estate appraiser to
conduct an as if completed appraisal before the start of
construction. The applicant is responsible for this cost.
(d) Applicant shall agree to a recordable mechanic's lien instrument
providing for repayment of the incentive payment plus 4% interest
and attorney fees if the home is rented or sold to an investor for 5
years following receipt of incentive payment.
Section 7: Procedure.
(1) For Contractors:
(a) Contractor finds home to be renovated
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(b) Contractor submits application with plans for renovation
(c) Application approved or denied.
(d) Contractor purchases home
(e) Contractor renovates home according to submitted plan
(f) Contractor lists and sells home to owner-occupant with use deed
restriction.
(g) Contractor submits closing documents of resale as proof of final
sale price.
(h) If Application was approved, City pays incentive upon confirmation
of final sale value.
(2) For Homeowner occupant:
(a) Homeowner determines what will be renovated
(b) Homeowner submits application with plans for renovation.
(c) City tentatively approves or denies application
(d) Homeowner hires licensed residential real estate appraiser to
conduct appraisal as if proposed renovations completed.
(e) If City tentatively approved the application and appraisal confirms
40% value increase and at least $120,000 value, final approval is
given and homeowner signs mechanic's lien instrument.
Homeowner then hires contractor to complete renovation.
(f) Renovations completed.
(g) Licensed real estate appraiser confirms completion of all required
elements of as if completed appraisal, verifies final home appraisal
value.
(h) City pays incentive upon confirmation of newly appraised value
meeting requirements and proof of payment of contractor doing the
work. If desired, the payment may be made to such contractor.
Section 8: Realtor Incentives.
(1) Realtors who represent the buyer are eligible for incentive payments for
the sale of homes within the target area identified in Section 2 hereof.
(2) Each home sale for which an incentive payment is available must be to
one of the following:
(a) Homeowner for at least $120,000 or
(b) An Investor other than the Realtor who qualifies and participates in
the Home Remodeling Grant Program.
(3) The incentive payment shall be $500.00 for each home sold on a first
come, first approved basis. Total funding for the Realtor Incentive
program for the 2015 annual City budget year is $10,000.00 for 20 home
sales. Once funding is exhausted, the realtor incentive program is over
unless and until the program is evaluated and funded for the next budget
year.
(4) Procedure
(i) Realtor will apply for program before home is sold in target area.
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(ii) Realtor represents a buyer who buys a home that meets eligibility
requirements of (b) hereof and provides proof of sale, supplying
closing documents and evidence of eligibility.
(iii) Staff reviews and approves Request for Incentive Form and
evidence of eligibility.
Section 9: Employment of Undocumented Workers. All applications and any
Agreements hereunder shall contain the following provision: During the
term of this Agreement, the Grantee agrees not to knowingly employ any
undocumented workers as defined in Tex. Govt. Code Sec. 2264.001. If
convicted of a violation under 8 U.S.C. § 1324a(f), the Grantee shall repay
the amount of the Grant and any other funds received by the Grantee from
the City as of the date of such violation not later than 120 days after the
date the Company is notified by the City of a violation of this section, plus
interest from the date the Grant was paid to the Company, at the rate
periodically announced by the Wall Street Journal as the prime or base
commercial lending rate, or if the Wall Street Journal shall ever cease to
exist or cease to announce a prime or base lending rate, then at the
annual rate of interest from time to time announced by Citibank, N.A. (or
by any other New York money center bank selected by the City) as its
r
prime or base commercial lending rate. The payment of interest shall be
as if it had been accruing from the date the Grants were paid to the
Company until the date the Grants are repaid to the City.
Section 10: Limitation on Incentive Payments. The City has budgeted a limited
amount of money for this Program and will not be able to fund applications
beyond the budgeted amounts. Applications which would require the
payment of more money than budgeted after funding previously approved
applications will be denied.
PASSED AND APPROVED this the 13th day of April, 2015.
CI •• NO- RICHLA ' HILLS
By: flildi i
Oscar r-v' o, Mayor
ATTEST:
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Alicia Richardson, City Secr
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Resolution No.2015-011
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APP •V • S TO F RM AND LEGALITY:
vio4tsrf4
George A. Staples, City Attorney
APPROVED AS TO CONTENT:
ris James, Assistant to the City Manager
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EXHIBIT A
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Boundary of Target Area is outlined in red.
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