During its regular session Tuesday, the Fort Worth City Council authorized a pair of five-year tax abatement agreements for residential properties in neighborhood empowerment zones.
The first was with DHC Properties LLC, for the construction of a single-family dwelling/office building at 1315 S. Adams St. The second is to construct a 138 residential unit apartment complex at the corner of Oakhurst Scenic Drive and Race Street in the Six Points Neighborhood Empowerment Zone.
“Neighborhood Empowerment Zones are identified throughout the central city, many associated with Urban Villages,” District 9 Council Member Ann Zadeh said. “The purpose of which is to promote the rehabilitation of properties, the building of affordable housing and/or economic development and expansion services.”
The property on South Adams, owned by Luke Hejl, is located within the Magnolia Village Neighborhood Empowerment Zone (NEZ) and the Fairmount/Southside Historic District, but outside of the Southside Tax Increment Finance (TIF) District. In January of 2017, the Historic and Cultural Landmarks Commission approved a Certificate of Appropriateness for the construction of a two-story residence and trellis structure at this location.
Hejl plans to invest an estimated $412,830 to construct an approximately 2,895 square foot single-family residence to be used as rental property and an office.
The property owner on Oakhurst and Race, Scenic Race LLC, plans to sell the property to PMA FW Presidio, LLC, who will invest an estimated $18.4 million to construct the apartment complex.
A multi-family project located in a NEZ must satisfy one of the following for a five-year tax abatement:
• At least 10 percent of the total units constructed or rehabilitated shall be affordable, as defined by the U.S. Department of Housing and Urban Development (HUD) and set aside to persons with incomes at or below 80 percent of area median income based on family size.
• At least another 10 percent of the total units constructed or rehabilitated shall be affordable (as defined by HUD) and set aside to persons with incomes at or below 60 percent of area median income based on family size.
• If permitted by the City Council, pay the Fort Worth Housing Finance Corporation $200 annually for each rental residential unit on the property.
The developer has opted to pay the Fort Worth Housing Finance Corporation the annual sum in lieu of setting aside the affordable units.
The Fort Worth Housing Finance Corporation was created to assist in the financing of the costs of residential development and ownership for citizens of decent, safe and sanitary housing at affordable prices.
Municipal property tax abatements, fee waivers and release of city liens are available to property owners who build or rehabilitate property within a NEZ. These incentives are designed to promote affordable housing, economic development and expanded services.