2022-055 - Amending the Guidelines and Criteria of the 5 in 5 Infill Development Program to allow properties immediately adjacent to the program area to be eligible to participate in the program and to revise application formRESOLUTION NO. 2n22 _ n55
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
TEXAS AMENDING THE GUIDELINES AND CRITERIA OF THE 5 IN
5 HOUSING INFILL DEVELOPMENT PROGRAM TO ALLOW
PROPERTIES IMMEDIATELY ADJACENT TO THE PROGRAM AREA
TO BE ELIGIBLE TO PARTICIPATE IN THE PROGRAM AND TO
REVISE APPLICATION FORM; MAKING OTHER FINDINGS AND
PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN
EFFECTIVE DATE.
WHEREAS, on February 10, 2 02 0, the City Council of the City of Paris, Texas passed
Ordinance No. 2020-005 creating Reinvestment Zone 2020-1, designating certain areas
inside the city limits to be eligible for the Residential Tax Abatement Program; and
WHEREAS, after a public hearing on January 10, 2022, the City Council passed
Resolution No. 2022-003 stating its intent to establish the 5 In 5 Housing Infill Development
Program (hereinafter "the Program") including a low cost land sale and residential tax
abatements and adopting guidelines and criteria for the Program; and
WHEREAS, Resolution 2022-003, City Council designated an area within
Reinvestment Zone 2020-1 (the "Program Area") as being eligible for the Program; and
WHEREAS, on April 12, 2021, the City Council approved resolution 2021-012 re-
authorizing the City to become eligible to participate in residential tax abatements and
approving guidelines and criteria for the residential tax abatement program; and
WHEREAS, the Program has additional criteria and guidelines for participation in
said Program, including criteria and guidelines for eligibility for residential tax abatements;
and
WHEREAS, the Program guidelines require that for a property to be eligible to
participate in the Program, the property must be within the defined Program Area, with an
exception for property transferred via a tax foreclosure process; and
WHEREAS, the City Council wishes to amend the Program guidelines to allow
properties immediately adjacent to the Program Area to be eligible to participate in the
Program; and
WHEREAS, staff has identified changes to the Program's application form that will
make the form more user-friendly;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PARIS, TEXAS, THAT:
Section 1. The findings set out in the preamble to this resolution are hereby in all
things approved.
Section 2. The City hereby amends the guidelines and criteria of the 5 in 5
Residential Infill Development Program in conformance with Exhibit A attached hereto
and incorporated herein by reference to allow properties immediately adjacent to the
Program Area eligible to participate in the Program and to revise the Program's application
form..
Section 3. This resolution shall become effective from and after the date of passage.
PASSED AND APPROVED this 25th day of July, 2022.
F,SNE+'C1.TY
co:
C/D
Paula Portugal, Mayo-�
APPROVED AS TO FORM:
Ste an H. Harris, City Attorney
5 IN 5 HOUSING INFILL DEVELOPMENT PROGRAM
GUIDELINES, CRITERIA & APPLICATION FORM
CITY OF PARIS, TEXAS
Revised July 25, 2022
I. GENERAL PURPOSE AND OBJECTIVES
The City of Paris, working with our local government partners, is seeking to provide a series of
builder incentives designed to encourage new home construction for the purpose of neighborhood
revitalization and the provision of work force housing. New home construction within the existing
interior of the community can have a positive effect towards reinvestment in our neighborhoods
by providing stability and enhanced character, as well as a means to expand our community's local
labor force. Focusing on the existing interior of the City allows the builder to utilize existing
infrastructure rather than the extension of costly streets and utilities in undeveloped lands at or
beyond the urban fringe.
To achieve this purpose, the City will offer a series of incentives:
1. Where applicable, the City will provide low cost residential lots in the Program Area in tax
foreclosure city receivership. If a builder obtains properties through other traditional means
within the Program Area, other incentives within this policy may apply.
2. The City will offer a five (5) year 100% residential tax abatement of City property taxes.
3. The City will offer reduced rates on building plan review and permit fees.
4. The City will offer reduced rates on labor charges on water and sewer tap fees.
The city staff will work with interested builders to identify parcels from a pool of tax sale lots in
trustee status to develop a list of properties that will be suitable for the construction of new
dwelling units. This may consist of single-family, two-family, medium density, or high density
residences. Prior to any construction occurring from which the builder is seeking incentives, the
builder will enter into an Agreement to be approved by the City Council for the construction of a
minimum of five (5) or more dwelling units on one (1) or more parcels. Each of the dwelling units
subject to the Agreement must be constructed under the terms of the agreement within five (5)
years from the date of the Agreement, unless such deadline is extended by subsequent approval of
the City Council. All parcels under the Agreement must be built upon within five (5) years to
satisfy the terms of the Agreement. Failure to achieve this goal will result in certain claw backs as
provided in the Agreement. All applications shall be considered on a first come, first serve basis.
There will be no income guidelines under this program for occupants of the dwelling units, whether
owner or renter occupied. In the event the applicant constructs a new dwelling unit and sells said
unit, the tax abatement shall lapse and be terminated as to that parcel unless the City Council
approves an assignment of the tax abatement agreement to the new owner.
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In order to further encourage local development, employment, and enhancement of our economy,
to be eligible for incentives in this policy, building materials and fixtures used in the construction
of new dwelling units, where possible, must be purchased locally within the City of Paris.
11. DEFINITION OF TERMS
Act - The Property Redevelopment and Tax Abatement Act, Texas Tax Code Ann. 312.001 et.
seq., as amended from time to time.
Agreement - A contractual agreement between an applicant and the City of Paris for the purposes
of a 5 In 5 Housing Infill Development Program to include an economic development agreement
pursuant to Chapter 380 of the Texas Local Government Code and a residential tax abatement
agreement pursuant to the Act.
Applicant - An owner, proposed owner, builder or authorized agent of the owner of eligible
property seeking an agreement under this policy.
Base Year Value — The assessed value of eligible property on January 1, preceding the date of
execution.
Eligible Property - Property located in the defined Program Area ari ' d I ' nij ' ' ii ' (,(ii a ' t ' q - ��OjLj, �pqjj,
LtLL,q'e" to ', whether foreclosed on due to taxes or not. Also, property located outside the Program
Area if foreclosed on due to taxes.
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New Structure - Residential improvements made to a property previously undeveloped or a vacant
parcel which is placed into use by means other than by expansion or modernization without fall
demolition of an existing substandard or condemned structure.
Program Area - An area depicted in "Exhibit 13" of the approved resolution for the 5 In 5 Housing
Infill Development Program, which area is wholly within the boundaries of Reinvestment Zone
2020-1 for the purpose of residential tax abatements.
Residential Improvements - The construction of new residential structures and all the
appurtenances thereto. This term includes single family, duplexes and multi -family structures.
Value of Improvements — The appraised value of the Residential Improvements as determined
by the Lamar County Appraisal District and as described in the Agreement.
111. ELIGIBILITY AND GUIDELINES
Real property is determined eligible under this policy as provided in the Definitions. If property
is eligible, an Applicant may apply for an Agreement to receive incentives provided for in this
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policy. For tax foreclosed properties, all taxing jurisdictions shall be required to sign off on the
low cost land sale according to the provisions of State Law prior to transfer of the property to the
applicant.
Minimum Investment — To be eligible for residential tax abatement, an Applicant must construct
a new structure or structures on the property parcel(s) identified in an Agreement between the
applicant and the City.
Incentives
Low Cost Sale of Foreclosed Properties — As part of their agreement, an applicant may choose to
purchase eligible properties that are in a state of tax foreclosure. These properties are strictly first
come, first serve and the City makes no warranty on having available properties for this incentive.
The City will work with the Lamar County, Paris Independent School District, and Paris Junior
College to seek a low cost sale of the foreclosed property, but the City can only guarantee a low
cost of its share.
Tax Abatement - An Applicant who has satisfied all the criteria and guidelines for the low cost
property sale and residential tax abatement as set out herein, will be eligible for a 100% five (5)
year tax abatement on each parcel on which a dwelling unit or units are constructed and completed.
The abatement will become effective on January 1St of the year following issuance of a Certificate
of Completion following final construction inspection. As provided in the Act, a tax abatement
may only be granted for the value of the Residential Improvements which exceed the base year
value of the property and which are listed in an Agreement between the City of Paris and the
applicant, subject to such limitations as the City of Paris may require. The base value will be set
as of January 11 of the year in which the Agreement is executed. Upon completion of construction,
the Applicant shall provide a copy of all material and fixture purchase invoices to prove that those
materials and fixtures were purchased locally within the City of Paris when possible. The tax
abatement is available only for improvements made after the execution of the Agreement.
The Agreement may not be approved by the City Council until at least thirty (30) days after
notice of the consideration and possible action on the Agreement has been posted.
Reduced Fees for Building Plan Review and Permitting—The Applicant will be entitled to reduced
rates for building plan review and permit fees on a cumulative basis for all new dwelling units
under agreement with the City according to the following schedule:
Total Dwelling Units Plan Review Fee Discount Building Permit Fee Discount
5-9 100% 50%
10-19 100% 75%
20+ 100% 100%
Reduced Fees for Water & Sewer To Labor — The Applicant will be entitled to reduced rates for
water and sewer tap labor fees, where required by the Public Works Department, on a cumulative
basis for all new dwelling units under agreement with the City according to the following schedule:
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Total Dwelling Units Water Tap Labor Sewer Tap Labor
Fee Discount Fee Discount
5-9 50% 50%
10-19 75% 75%
20+ 100% 100%
Claw Back Provision —The Applicant who enters into an Agreement with the City of Paris shall
construct at least five (5) or more new housing dwelling units on one (1) or more parcels within
five (5) years from the effective date of the Agreement, or the City shall have the right to
automatically take back any undeveloped parcel under the terms of the agreement and transfer of
the properly by all taxing entities. This shall be recorded with or as a part of the deed as a right of
reversion for all uncompleted construction lots deeded under this agreement against the property.
The Applicant may request approval of an extension for such failure to construct a new residential
dwelling unit(s), based upon reasonable circumstances, as may be approved by the City Council
under a subsequent revised agreement. Parcels under the agreement cannot be sold or assigned to
another individual except by prior approval and re-assignment of the parcel(s) and approval of a
new agreement by the City Council. Failure to meet the requirements of constructing a minimum
of five (5) dwellings within the five (5) year period will result in a reversion of all parcels upon
which Residential Improvements have not been constructed and completed to the City and will
result in the Applicant being ineligible to participate in this program in the future.
As a further claw back provision, and in accordance with Texas Tax Code Sec. 312.205, the
Agreement shall provide for recapturing property tax revenue lost as a result of the agreement if
the owner of the property fails to make all the Residential Improvements as provided in the
Agreement regardless of how many dwelling units applicant builds.
Compliance with all other City Requirements — The Applicant shall be fully responsible for
compliance with all zoning, subdivision platting, and building code requirements as may
specifically pertain to the subject parcel(s) under the approved Agreement. The applicant shall be
fully responsible for all such costs which may include, but not be limited to: Zoning Changes,
Special Use Permits, Variances, Platting and Surveying Costs, Plan Preparation, and Building
Permit Fees.
V. APPLICATION PROCEDURES
Applications for an Agreement with the City shall be reviewed for completeness. City Staff shall
determine whether the application satisfies guidelines and criteria and Staff may request additional
information or documents from Applicant. City Staff will make final recommendations on each
application to the City Council. Any Applicant desiring approval of an Agreement shall comply
with the following procedural guidelines. All applications shall be evaluated on their own merits
within the parameters of these Guidelines and Criteria.
1. Preliminary Application Steps
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A. Applicant shall work with City Staff to identify eligible tax foreclosure City Trustee
or other parcels within the defined geographic area. City Staff will provide a list
and corresponding map from which tax foreclosure City receivership parcels may
be reviewed. The Applicant may submit an application for this program at the same
time with an application for a building permit(s). If the
Applicant for the building permit is not the owner of the real estate and does not
make application for an agreement on behalf of the owner, the City Staff shall notify
the owner (according to the most current records of the Lamar County Appraisal
District records) by certified mail, return receipt requested, that the application must
be signed and filed with the City within ten (10) business days of receipt of the
affidavit of ownership notice.
B. A pre -approval letter must be attached to the application from Applicant's financial
institution stating that the Applicant will have financial capital available to
complete all new dwelling unit construction under the five (5) year Agreement with
the City. Verification of such financial capability may be reviewed over the course
of the Agreement.
C. If the building permit applicant does not to apply for an Agreement prior to the time
that the building permit is issued, or if the owner fails to respond to the written
notice of availability for the agreement, this policy shall be considered waived by
the applicant and/or owner. City staff shall make a record to reflect owner's election
not to participate in the program or to document that owner did not respond to City's
notice of opportunity to participate in the program. The refusal or waiver to
participate in the program by the building permit applicant or owner shall be
binding on subsequent owners of the real property.
D. A complete legal description shall be provided with a copy of the current deed of
the land, unless the parcel(s) are being transferred by deed without warranty by the
City of Paris.
E. Applicant shall complete all forms and information detailed above and submit all
forms to the City of Paris Director of Planning and Community Development.
2. All information in the application package detailed above will be reviewed for
completeness and accuracy. Additional information may be requested as needed. If
necessary, applicant will meet with City staff to discuss details of the application and to
prepare presentation of the application to the City Council.
3. The application shall designate whether the dwelling(s) to be constructed are to be retained
for ownership, or sold to another owner upon completion of construction. The applicant
shall also provide an estimate of the value of improvements as required for building permit
application.
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4. If an application for the 5 In 5 Housing Infill Development Agreement is to be
recommended for approval by staff, then an Agreement as defined herein with the City of
Paris will be prepared by the City Attorney for approval by the City Council.
5. If the Applicant's property is not found to be eligible, the application will be rejected and
returned to Applicant.
6. The City Council reserves the right to amend these policies and guidelines as needed.
VI. LEGAL DOCUMENTATION PREPARATION
The Director of Planning and Community Development and the City Attorney will be responsible
for drafting the required Agreement in accordance with state law and this Policy.
The legal document will include the following:
1. Estimated value of new structure or residential improvements to be constructed.
2. Total amount of value to be abated over five (5) years.
3. Effective date and the termination date of abatement.
4. Description of the Residential Improvements, schedule of completion, property
description, all required City approval requirements and a platted lot site plan or sketch of
the parcel(s) to be platted and developed.
5. Applicant agrees to make the new structure or residential improvements available for
inspection by City of Paris, or its authorized representatives, and Lamar County Appraisal
District (LCAD) during construction and upon completion of the project.
6. Contractual obligations in the event of default, violation of terms or conditions, delinquent
taxes, recapture and administration.
7. A signed and notarized statement as an attachment to the application agreeing to construct
five (5) dwelling units on one (1) or more parcels within five (5) years from the date of
City Council approval of an Agreement, unless extended by the City Council, or consenting
to allow the City to automatically take back the parcel(s) under the initial terms of an
approved agreement.
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CITY OF PARIS, TEXAS
APPLICATION FOR RESIDENTIAL TAX ABATEMENT (5 in 5)
Property Owner:
Name Current:
Mailing Address:
Name Planned*
(*Do you plan to re -assign to a buyer upon completion?
Telephone Number: email:_
Builder or Contact (if different than current/planned owner):
Name:
Mailing Address:
Yes No
State GC License No:
Telephone Number: email
Property Parcel(s) Proposed For 5 In 5 Agreement:
(Please submit an attached list of addresses and/or LCAD #'s on Excel Spreadsheet, if possible)
No. LCAD Address Lot Blk. Addition
1.
.2.
3.
4.
5.
Add additional sheets if necessary. Full Legal Description: Include as an attachment a full legal
description with metes and bounds or a copy of the deed, if available.
Improvements:
Type improvements for new Construction: SF_ 2F_3F_Quad_MF_
Total Number of Dwelling Units:
Estimated Value of Improvements by type:
Estimated Start Date of Construction:
Estimated Date of Completion of Project(s)
Description of Project (attach site plan, floor plan, etc.:
Owner's Signature:
Date:
Applicant(s) Signature: Date:
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