HomeMy WebLinkAboutResolution 2015-014 RESOLUTION NO. 2015-014
A RESOLUTION IDENTIFYING AREAS ELIGIBLE FOR INCLUSION IN
A COMMUNITY DEVELOPMENT PROGRAM AS REQUIRED BY
CHAPTER 373, TEXAS LOCAL GOVERNMENT CODE; DESCRIBING
AND ADOPTING A COMMUNITY DEVELOPMENT PROGRAM
INCLUDING ACTIVITIES WHICH SHALL BE INITIALLY UNDERTAKEN
TO BE KNOWN AS THE NEIGHBORHOOD REVITALIZATION
PROGRAM; PROVIDING FOR INCENTIVE AGREEMENTS TO
HOMEOWNERS, HOMEBUYERS, CONTRACTORS AND REALTORS;
AND LIMITING EXPENDITURES TO BUDGETED AMOUNTS.
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, such public comments were received on April 27, 2015; 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:
Section 1: A community development program as herein described is hereby
adopted.
Section 2: Such community development program 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 deconcentration 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
1 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;
(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;
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(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; and
(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:
(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.
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(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 2.
(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 forty percent (40%)
increase in value.
(f) Final home values must exceed $120,000.
(g) 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
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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 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.
(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 five (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 requirement
for a forty percent (40%) increase in value over the purchase
price paid by the Applicant. 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 $120,000.
(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. Unless such appraisal determines that the completed
work will increase the value of the property by at least forty
percent (40%) of the TAD value, the application will be
denied.
(d) Applicant shall agree to a recordable mechanic's lien
instrument providing for repayment of the incentive payment
plus four percent (4%) interest and attorney fees if the home
is rented or sold to an investor for five (5) years following
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receipt of incentive payment.
Section 7: Procedure.
(1) For Contractors:
(a) Contractor finds home to be renovated.
(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 approves or denies application.
(d) Homeowner hires licensed residential real estate appraiser
to conduct appraisal as if proposed renovations completed.
(e) If City approved the application and appraisal confirms forty
percent (40%) value increase and at least $120,000 value,
homeowner signs mechanic's lien instrument and 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 Incentive
(1) Realtors 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 who qualifies and participates in the Home
Remodeling Grant Program.
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(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
a. Realtor will apply for program before home is sold in target
area.
b. Realtor sells home that meets eligibility requirements of (b)
hereof and provides proof of sale, supplying closing
documents and evidence of eligibility.
c. Staff reviews and approves Request for Incentive Form and
evidence of eligibility.
Section 9: 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 18th day of May, 2015.
CITY •F/ OR Ham, ► - ILLS
By: ./v A
otol CH w,��'`��� Oscar Trevino, Mayor
ATTEST: `\�o�,j,R.. . .,.�y
Alicia Richardson, City Secre h .•°'
APP' ,, / S TO F•RM AND LA'LY:
&Air //,/
George A. Stapl , City Attorney
APPROVED AS TO CONTENT:
Asi=4°14P
ristin James, Assistant to the City Manager
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