title
Presentation, discussion, and possible action regarding the Issuance of Multifamily Housing Revenue Bonds (Braniff Lofts) Series 2026, Resolution No. 27-002 and a Determination Notice of Housing Tax Credits
end
RECOMMENDED ACTION
recommendation
WHEREAS, the Board adopted an inducement resolution for Braniff Lofts at the Board meeting of October 10, 2024;
WHEREAS, an application for Braniff Lofts requesting 4% Housing Tax Credits, sponsored by Sycamore Strategies, LLC and the PWA Coalition of Dallas INC, was submitted to the Department on June 5, 2026;
WHEREAS, in lieu of a Certification of Reservation, a Carryforward Designation Certificate from the Texas Bond Review Board (BRB) was issued on January 6, 2025, and will expire on December 31, 2027; and
WHEREAS, staff recommends approval of the issuance of Multifamily Housing Revenue Bonds for Braniff Lofts (Series 2026) and the issuance of a Determination Notice;
NOW, therefore, it is hereby
RESOLVED, that the issuance of Multifamily Housing Revenue Bonds (Braniff Lofts) Series 2026, in the amount of $20,000,000, Resolution No. 27-002, is hereby approved in the form presented to this meeting;
FURTHER RESOLVED, the issuance of a Determination Notice of $1,425,586 in 4% Housing Tax Credits for Braniff Lofts, subject to underwriting conditions that may be applicable as found in the Real Estate Analysis report posted to the Department’s website, is hereby approved in the form presented to this meeting; and
FURTHER RESOLVED, that if approved, staff is authorized, empowered, and directed, for and on behalf of the Department to execute such documents, instruments and writings and perform such acts and deeds as may be necessary to effectuate the foregoing.
end
BACKGROUND
General Information: The Multifamily Housing Revenue Bonds will be issued in accordance with Tex. Gov’t Code §2306.353 et seq., which authorizes the Department to issue bonds for its public purposes, as defined therein. Tex. Gov’t Code §2306.472 provides that the Department’s multifamily housing bonds are solely obligations of the Department, and do not create an obligation, debt or liability of the State of Texas or a pledge or loan of faith, credit or taxing power of the State of Texas.
Development Information: The development proposes the Adaptive Reuse of a historic building that will provide 48 units of Supportive Housing for vulnerable populations. The existing structure, located at 2801 Wycliff Avenue in Dallas, Dallas County, was built in 1967 and served as a dormitory and flight attendant training center for Braniff airlines. The building is currently unoccupied. A 2024 Traditional Carryforward designation was received from the Bond Review Board which does not have a restriction regarding the Area Median Family Income (AMFI) households to be served. The application reflects that all of the units will be rent and income-restricted at 60% of AMFI.
Organizational Structure and Previous Participation: The Borrower is Braniff Lofts, LP, and includes the entities and principals as illustrated in Exhibit A. The applicant’s portfolio is considered a Category 2 and was deemed acceptable.
Tax Equity and Fiscal Responsibility Act (TEFRA) Public Hearing/Public Comment: On March 18, 2022, the IRS released Revenue Procedure 2022-20, which permanently allows TEFRA hearings for qualified activity bonds to be held telephonically. Staff conducted a telephonic hearing for the proposed development on July 30, 2025. Representatives from the Department and the Developer were present, and no public comment was made. A copy of the transcript is included herein. The Department has not received any letters of support or opposition for the development.
Summary of Financial Structure
Under the proposed structure, the Department will issue unrated, variable rate tax-exempt bonds in the aggregate principal amount of $20,000,000, to be purchased by Bank OZK. The bonds are intended to be construction financing only, with a maturity date that is 36-months, inclusive of one six-month extension, from the date of closing (or approximately September 2029). The construction period interest rate will be based upon the SOFR Term Rate, as published by the Chicago Mercantile Exchange (CME), plus 230 basis points, estimated at the time of underwriting to be 5.95%. Hunt Capital Partners LLC will provide a construction loan in the amount of $5,300,000. Upon conversion, the permanent loan is anticipated to be in the amount of $6,000,000 with a 15-year term and 6.00% interest rate. The principal will be paid from residual cash flow. The City of Dallas approved a loan in the amount of $7,000,000, with a 20-year term to be paid with surplus cash flow at an interest rate of 1.00%.