It is recommended that the City Council:
  
1. Authorize the transfer of funds in an amount not to exceed $500,000.00 from HOME Investment Partnership Grant Funds to the Fort Worth Housing Finance Corporation to be used for targeted infill housing in the Terrell Heights neighborhood;
  
2. Authorize the City Manager, or his designee, to execute a contract with the Fort Worth Housing Finance Corporation for the project with a two year term beginning on the date of execution of the contract;
  
3. Authorize the City Manager, or his designee, to extend or renew the contract for up to one year if the Fort Worth Housing Finance Corporation request an extension and such extension is necessary for completion of the project; and
  
4. Authorize the City Manager, or his designee, to amend the contract if necessary to achieve project goals provided that the amendment is within the scope of the project and in compliance with all applicable laws and regulations governing the use of federal grant funds.

In the City's 2009-2010 Annual Action Plan submitted to the United States Department of Housing and Urban Development (HUD), the City proposed the allocation of $500,000.00 of its HOME Investment Partnership (HOME) Grant funds for targeted infill housing in the Terrell Heights neighborhood located in southeast Fort Worth bounded by Rosedale on the south, Interstate Highway 35 on the west and Hattie Street on the north. HUD approved the allocation of HOME funds for this project. The entire area has an historic overlay and is adjacent to the Evans and Rosedale Urban Village. Due to the large number of vacant lots, proximity to Downtown and location in a Neighborhood Empowerment Zone (NEZ), staff has targeted this neighborhood for the construction or reconstruction of single-family, quality, accessible, affordable housing.
  
Staff recommends executing a contract with the Fort Worth Housing Finance Corporation (FWHFC) to use up to $500,000.00 in the City's HOME funds for the acquisition of lots and improved properties for the construction or reconstruction of up to five houses. The FWHFC will issue a Request for Proposal (RFP) for the construction or reconstruction of the houses. This project will conform to the City's Minority and Women Business Enterprise (M/WBE) ordinance.
  
In accordance with the HOME regulations, 24 CFR Part 92 et seq., the purpose of this project is to benefit low and very-low income citizens by providing them with affordable housing. This expenditure of HOME funds is conditioned upon satisfactory completion of the environmental review per 24 CFR Part 58 and the authorization to use grant funds from HUD.
  
The project is located in COUNCIL DISTRICT 8.