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ZC January 8, 2024

District: 5 | Eastside/Woodhaven

District: 5 | Southeast/Stop Six

The Fort Worth Zoning Commission unanimously approved (10-0) a redevelopment of the former Woodhaven Country Club golf course, which has been inactive since 2020-2021. Crescendo Development, acting as the land developer, proposed rezoning 149.50 acres from Community Facilities (CF) and A-5 One-Family to a mix of uses, including 41 acres of MU-1 Low-Intensity Mixed Use and 23.8 acres of Urban Residential (UR).

Despite MU-1 zoning permitting up to 80 units per acre and UR allowing 40-60 units per acre with bonuses, Brad Lonberger of Place Strategies emphasized that topography naturally limits development to "maybe 300 apartment units, broken up into 3-4 different buildings across the property." The valley placement ensures buildings remain below surrounding residential elevations even at three stories, while one parking space per bedroom requirements further moderate density.

Community Member Paul Kerpoe, VP of Woodhaven Community Development Inc., noted the area's average household income of $51,000 compared to the city's $72,000. Community Member Talia McAllister reinforced this dynamic: "Woodhaven is a community of two extremes." McAllister clarified the discrepancy lies between "affluent homeowners" and "very low-income affordable housing in the local apartment communities."

Daniel Z., expressed support as a newer Woodhaven resident who moved in during COVID, praising the developer's transparency.

Infrastructure considerations will significantly impact development costs. Fred Jensen from Riverbend highlighted their neighborhood's operation of a "$10 million Pump Station" and emphasized the need for "an aggressive stormwater catchment place for this property." The development addresses these concerns through 22.2 acres of agricultural zoning in flood-prone areas.

Commissioner Jeremy Raines acknowledged neighborhood concerns while supporting the proposal:

Chair Rafael McDonnell, who noted he lives in District 5, praised the integration of mixed-use elements and preservation of open space, particularly noting the project's potential.

Community engagement proved crucial, with three public meetings totaling over 530 participants yielding measurable changes. The development team's responsiveness led to downzoning 62.4 acres from A-5 to A-21, reducing potential single-family density from 544 to 125 lots. This balanced approach earned support from established stakeholders like Greg Goodman, a longtime area developer, though some residents like Gayen Anderson expressed concerns about previous multifamily developments' neighborhood impact.

The case advances to City Council on January 14, 2025, offering insights into successful mixed-use development strategies in evolving submarkets. The development team's integration of public amenities, including Trinity Trail connections and potential golf course preservation, suggests a framework for future projects in similar communities.

Hughes House III represents the fourth phase of Fort Worth's Stop Six CNI transformation. The deal secured a 9% LIHTC allocation from TDHCA in 2024, positioning for a summer 2025 financial closing. The $33.2 million deal will create 78 mixed-income apartments, continuing the systematic redevelopment of the former Cavile Place public housing community.

Developer McCormack Baron Salazar and Fort Worth Housing Solutions (FWHS) have initiated a financing competition through an RFP issued October 1, 2024, aligning with the anticipated July 2025 closing.

Public-Private Partnership:

The economics reveal the partnership's contours. The Developer receives 66.67% of the developer fee while FWHS takes 33.33%, reflecting a two-thirds/one-third split common in public-private partnerships. The $3.87 million total fee follows a standard waterfall: half at closing, a quarter at construction completion, 15% at stabilization, and the final 10% at 8609 receipt.

Ownership Structure:

Fort Worth Affordability, Inc., a FWHS nonprofit corporation, maintains control as the GP's sole member. This arrangement preserves public oversight while enabling private capital deployment.

Primary Financing:

In February 2024, National Equity Fund proposed $17.4 million in equity investment as the LIHTC investor. Hughes House III MBS SLP, Inc., owned by McCormack Baron Salazar, will serve as Class A Limited Partner. NEF Assignment Corporation takes the Limited Partner position.

Mason Joseph Company has provided a term sheet for FHA 221(d)(4) financing, showing sophistication in HUD mixed-finance execution. Their $8.49 million commitment includes specific requirements for initial operating deficit escrow (3% of loan) and working capital escrow (4% of mortgage proceeds).

Public Funding Sources:

FWHS is contributing $2.45 million through CNI funds at 0% interest. The Fort Worth Housing Finance Corporation committed $100,000 in PSH funds matched by Fort Worth Affordability Inc.'s $100,000 PSH matching funds. An additional $400,000 comes from ARPA funds through Fort Worth Affordability Inc.

Each entity plays a specific role:

Land Structure

The land ownership is split between FWHS and Cavile Public Facility Corporation, contributing seller notes of $706,870 and $783,130 respectively, both at 4.18% Long-Term AFR interest.

Operating Structure:

The 78 units comprise 54 LIHTC units (69.23%) and 24 market units (30.77%). FWHS will provide 27 Project Based Vouchers, including 4 dedicated to permanent supportive housing. PBV rents are set at 110% of FMR.

First year NOI projects to $775,978 with a 1.15x initial debt service coverage ratio. The expense ratio starts at 43.79% with structured increases of 3% annually against 2% income growth.

Construction will commence July 2025 with completion January 2027. The 17-month schedule reflects current construction realities in DFW. Bennett Partners and Spring Valley Construction provide the core development team.

This summary reflects application materials from early 2024 compared with the October 2024 RFP. The transformation of Stop Six continues methodically. Hughes House III represents neither the beginning nor the end, but rather the disciplined continuation of a comprehensive neighborhood strategy.

Zoning Commission 1/8/25

The rezoning request focuses on two key modifications to the existing Planned Development (PD 1259) zoning for the Hughes House Phase III development:

The Zoning Commission, differing from the Urban Design Commission's recommendation, voted 10-0 to approve both requested changes. The case (ZC-24-152) will next be heard by the City Council on January 14, 2025.

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