(a) Definitions.
AFFORDABLE HOUSING. Housing is considered affordable if the monthly housing cost does not exceed 30% of the household’s monthly gross income. For homebuyers, housing cost includes the payment of principal, interest, taxes and insurance. For renters, it means the amount of rent paid, not to exceed the fair market rent for comparable units in the area as determined by HUD. For multifamily projects, at least 20% of the units should be affordable to low income households.
APPLICATION FEE. A non-refundable $100 fee charged by the city to process the application of an eligible housing nonprofit organization for the conveyance of tax foreclosure property in accordance with this section.
COSTS AND EXPENSES. Costs and expenses shall mean the costs and expenses as provided in Tex. Tax Code §§ 34.02 and 34.06.
ELIGIBLE HOUSING NONPROFIT ORGANIZATION. A current and active nonprofit organization which meets the following requirements:
a. 1. A nonprofit corporation described by 26 U.S.C. § 501(c)(3) that:
i. Has been incorporated in the State of Texas for at least one year;
ii. Has a corporate purpose to develop affordable housing that is stated in its articles of incorporation, bylaws or Charter;
iii. Has at least one-fourth of its board of directors residing in Fort Worth; or
iv. Engages primarily in the building, repair, rental or sale of housing for low income individuals and families (“low income households”).
2. A nonprofit organization that develops housing for low income households as a primary activity to promote community-based neighborhood revitalization in the City of Fort Worth.
b. Has a satisfactory record in leasing, acquiring, building or rehabilitating residential property and selling the property to low income households for the two years immediately preceding the application;
c. Demonstrates financial and management capacity to complete projects on the property after acquisition;
d. Has the capability, upon conveyance of the property, to obtain insurance to cover liabilities that may arise out of holding and developing the property; and
e. Has a designated person authorized by its board of directors as signatory on behalf of the organization.
ELIGIBLE PROPERTY. Real property obtained by the city following the foreclosure of a tax lien in favor of the city and other taxing entities that is capable of being developed for low income housing.
HOUSING DEVELOPMENT AS A PRIMARY ACTIVITY. A nonprofit organization is considered to develop housing for low income households as a “primary activity” or “engaged primarily” in housing development activities for low income households if it:
a. Has as a corporate purpose of developing and managing affordable housing for low income households as stated in its articles of incorporation or bylaws;
b. More than 50% of its budget or actual expenditures is related to housing development activities for low income households; or
c. Has a comprehensive or strategic revitalization or redevelopment plan which is approved, recognized or acknowledged by the city and includes the provision of housing development activities for low income households as a major strategy.
LOW INCOME HOUSEHOLDS. Individuals and/or families whose annual incomes do not exceed 80% of the median income for the area with adjustments for family size, as determined and updated by the U.S. Department of Housing and Urban Development (“HUD”).
TAX APPRAISAL VALUE. The value of a specific parcel of property as determined by the Tarrant appraisal district as of January 1 of the year the property is conveyed to an eligible housing nonprofit organization or by an independent certified appraiser.
TAX RESALE DEED WITHOUT WARRANTY. The legal instrument used by the city to transfer its interest and that of all the other taxing entities in the property to an eligible housing nonprofit organization pursuant to this section.
(b) Method of sale.
(1) The city may sell eligible property to an eligible housing nonprofit organization for the development of low income housing for an amount that is less than the lesser of:
a. The market value specified in the judgment of foreclosure; or
b. The total amount of judgments against the property.
(2) In general, the property shall be transferred to an eligible housing nonprofit organization for an amount equal to 20% of the tax appraisal value of the property plus costs and expenses. Provided, the property management department may in extraordinary circumstances recommend a higher or lower purchase price, but in no case shall the property be conveyed for less than the total of the costs and expenses incurred on the property.
(3) All conveyance shall be approved by the city council.
(c) Reserved.
(d) Application fee. The city shall charge an application fee for the processing of each application for the conveyance of eligible property.
(e) Procedure of sale. The property management department may develop procedures to implement this section.
(Ord. 13533, § 1, passed 7-28-1998; Ord. 18320-09-2008, §§ 3, 4, passed 9-30-2008; Ord. 21650-02-2015, § 6, passed 2-17-2015)