title
Presentation, discussion, and possible action regarding a Material Amendment to the Housing Tax Credit Application and Land Use Restriction Agreement for Roseland Townhomes (HTC #99111) and Roseland Estates (HTC #02006)
end
RECOMMENDED ACTION
recommendation
WHEREAS, Roseland Townhomes originally received a 9% Housing Tax Credit (HTC) award in 1999 for the construction of 152 multifamily units, of which 114 are designated as low-income units, in Dallas, Dallas County, and Roseland Estates (collectively, the Developments), which is adjacent to Roseland Townhomes, originally received a 9% HTC award in 2002 for the construction of 138 multifamily units, of which 104 are designated as low-income units, in Dallas;
WHEREAS, the Land Use Restriction Agreement (LURA) for Roseland Townhomes runs through December 31, 2040, and the LURA for Roseland Estates runs through December 31, 2042;
WHEREAS, the Dallas Housing Authority (DHA), now known as DHA Housing Solutions of North Texas (Development Owner or Owner), is proposing to redevelop the Developments as a single development named “Roseland Homes” and requests to temporarily suspend the enforcement of the existing LURAs for vacant units, which will permit DHA and its developer affiliate, North Texas Housing Partners (Developer), to redevelop the Developments by relocating existing tenants to vacant units within the Developments, and in return, DHA and the Developer agree to an extended affordability period over the 40-year periods currently required by the existing LURAs to compensate for the redevelopment period;
WHEREAS, the redevelopment of the Developments is anticipated to include the demolition of three buildings with 14 units total, and all remaining formerly market rate units will be redeveloped as low-income units; and
WHEREAS, the requested changes require Board approval under 10 TAC §10.405(a)(4)(A), (B), (E), (F), and the Development Owner has complied with the procedural amendment requirements in 10 TAC §10.405 to place this request before the Board, including holding a public hearing;
NOW, therefore, it is hereby
RESOLVED, that the amendment request to temporarily suspend the enforcement of the LURA for the vacant units for a period of up to five years, demolish 14 units, and extend the term of the LURAs for the development period after redevelopment is completed is approved as presented to this meeting, and the Executive Director and his designees are hereby, authorized, empowered, and directed to take all necessary action to effectuate the foregoing.
end
BACKGROUND
Roseland Townhomes originally received a 9% Housing Tax Credit award in 1999 for the construction of 152 multifamily units, of which 114 are designated as low-income units, in Dallas, Dallas County. Roseland Estates, which is adjacent to Roseland Townhomes, received a 9% HTC awards in 2002 for the construction of 138 multifamily units, of which 104 are designated as low-income units, in Dallas, Dallas County. The Land Use Restriction Agreement (LURA) for Roseland Townhomes runs through December 31, 2040, and the LURA for Roseland Estates runs through December 31, 2042.
In letters as of September 12, 2025, and November 7, 2025, Tamea A. Dula, as representative for the Development Owner, requested approval for an amendment that will result in the demolition of 14 units, changes to the unit mix, and a partial suspension and subsequent extension of the terms of the LURAs for the Developments. DHA and its affiliate, North Texas Housing Partners, anticipate redeveloping the Developments as a single development tentatively named “Roseland Homes”. Roseland Homes will incorporate an existing community gym constructed in 2004 and not previously part of the HTC Developments. Redevelopment of the Developments will be done through anticipated 4% HTC and tax-exempt bond financing as well as HUD’s Rental Assistance Demonstration (RAD) Program.
The Owner indicated that the Developments have substantial deferred maintenance due to dwindling operational and capital funding, and furthermore, there are severe foundational issues caused by expansive clay. Occupancy has decreased due to these problems, among other concerns, and the Developments need a major remodeling in order to make them viable again.
The Development Owner requests approval to partially suspend enforcement of the HTC units that must be maintained pursuant to the LURAs. Such a suspension of the LURAs will permit DHA and the Developer to redevelop the Developments using a relocation plan that relocates existing tenants to vacant units within the Developments, to conduct the extensive renovations without having to move residents off site. In exchange for the requested suspension until construction completion, DHA and the Developer would agree to include an extended compliance over the 40-year periods currently required by the existing LURAs. The Owner indicated that they stopped entering into new leases in August 2025, but lease renewals are still occurring.
The redevelopment is anticipated to include the demolition of 14 units in three buildings, and a new community building will be added. All remaining formerly market rate units will be redeveloped as low-income units. The three buildings to be demolished contain four two-bedroom units and six three-bedroom units from Roseland Townhomes, and four two-bedroom units from Roseland Estates, resulting in an overall unit mix of 15 one-bedroom units, 103 two-bedroom units, 132 three-bedroom units, 23 four-bedroom units, and three five-bedroom units for the Developments combined. The renovated combined development is anticipated to have 197 units at 50% of Area Median Income (AMI) and 79 units at 60% of AMI instead of the 173 units at 50% AMI and 45 units at 60% AMI currently required by the existing LURAs. The rent rolls as of November 4, 2025, indicate that there are 10 low-income tenants currently at Rosedale Estates and 47 low-income tenants currently at Roseland Townhomes. There are also nine occupied market rate units at Roseland Estates and 12 occupied market rate units at Roseland Townhomes.
The Development Owner held a public hearing regarding this proposed amendment request as required under 10 TAC §10.405(b)(3). The public hearing was held on November 3, 2025. The Owner reported that 30 residents were in attendance. The minutes for the public hearing indicate that several questions were asked regarding the proposed plan, and the residents expressed concern about relocation during construction. No negative public comment was reported regarding the proposed amendment.
Staff recommends approval to suspend monitoring of the vacant units and supportive service requirements under the existing LURAs for five years to allow for the redevelopment. Additionally, staff will require the Owner to submit by January 6, 2026, a list of all LIHTC households, per income level and bedroom size residing at the Development on August 1, 2025, and Owner will be required to attempt to contact these households using at least two Department approved methods at least 90 days but no more than six months before units will be available for lease to offer these households a right of return. Additionally, staff recommends extending the term of the original LURAs and requiring the amendments to be recorded by January 30, 2026 (which may be extended by the Executive Director for good cause) for five years, and a 65 month extension of the Compliance Period for Roseland Townhomes and a 89 month extension of the Compliance Period for Roseland Estates, to compensate for the redevelopment period. The Department will also amend the total number of Units described in each LURA and amend the Appendix As to reflect the removal of the demolished buildings. The redevelopment period will begin as of August 1, 2025, which is the month in which new leases were not accepted, and will end once the rehabilitation has been completed as evidenced by certificates of occupancy or certificate(s) of substantial completion for all buildings in the Developments, and obtaining and correcting any deficiencies from an NSPIRE inspection from the Department. If the redevelopment period is requested to be longer than five years from August 1, 2025, the Development Owner will be required to sign an additional LURA amendment to further extend the applicable provisions. This action is not approving any other amendments to the existing LURAs.