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HFC approves security-assurance agreement requiring developer-led security measures for financed projects
Summary
The Tarrant County Housing Finance Corporation approved a form security-assurance agreement to be executed at bond closings that places responsibility for lighting, cameras and crime-prevention design on developers and includes penalties for noncompliance; one board member abstained.
The Tarrant County Housing Finance Corporation approved a security-assurance agreement that will be required as a condition for participation in HFC bond financings, placing responsibility for site security on developers rather than the corporation.
Jonathan Kranz, bond counsel (Tully Heart), described the form included in the board packet as the culmination of months of work to increase security parameters for projects that participate in HFC financings. He said the agreement would be executed as part of the final closing documents and require a developer to enact a range of security measures — for example, adequate lighting, cameras and adherence to Crime Prevention Through Environmental Design (CPTED) standards — and would include penalties for noncompliance. "It makes it very clear that the agency is not in and of itself taking any responsibility for the security, but the developer is," Kranz said.
Why it matters: The agreement clarifies that responsibility for ongoing site security and any subsequent operator’s compliance rests with the developer or operator, not with the HFC. The form is intended to provide enforceable measures and remedies tied to project participation in HFC financings.
Board action and vote: The board approved the security-assurance agreement. The minutes record two yes votes and one abstention; board members discussed whether the abstention would be recorded as a yes for quorum purposes, and staff confirmed the action passed.
Clarifying details: The agreement is intended to be executed at closing and to require the developer (or any subsequent operator) to install and maintain the security measures described. The presenter named CPTED (Crime Prevention Through Environmental Design) as the standard referenced; the packet also includes penalties for noncompliance. Board members asked who would be responsible for security administration and were told the developer or operator would be responsible. A board member asked whether Commissioner Ramirez had concerns; staff said Ramirez had seen the agreement and did not object.
What’s next: The security-assurance agreement will be included in closing documents for future HFC financings and enforced per its terms; staff and bond counsel will proceed with execution in applicable closings.
Sources: Presentation by Jonathan Kranz (Tully Heart) and statements by co-bond counsel Bob Dransfield (Rose Fulbright).
