title
Presentation, discussion, and possible action regarding awards from the 2023-2 HOME American Rescue Plan Rental Notice of Funding Availability (NOFA)
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RECOMMENDED ACTION
recommendation
WHEREAS, the Governing Board approved publication of the HOME-ARP Rental 2023-2 Notice of Funding Availability (NOFA) on December 8, 2022, which made available $51,708,757 (as amended) in development costs; and
WHEREAS, staff recommends approval of two awards for 23712 Lapiz Flats and 23711 Jaipur Lofts;
NOW, therefore, it is hereby
RESOLVED, that the awards of HOME-ARP Rental funds listed in this Board Action Request are hereby approved in the form presented at this meeting, subject to conditions as described within the underwriting reports and/or in this Board Action Request; and
FURTHER RESOLVED, that the Board’s approval is conditioned upon satisfaction of all conditions of underwriting, and completion of any other reviews required to assure compliance with applicable rules and requirements and in accordance with the timeframe described further herein.
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BACKGROUND
The Texas Department of Housing and Community Affairs (TDHCA) was allocated $132,969,147 of funds from the U.S. Department of Housing and Urban Development (HUD) under Section 3205 of the American Rescue Plan Act. HUD issued waivers and new activities from HOME annual funds into HOME-American Rescue Plan (HOME-ARP), in the Community Planning and Development Notice 21-10 and Appendix (HUD 21-10). All Applications for funds in the HOME-ARP Rental NOFA are be subject to the requirements of 10 TAC Chapters 1, 2, 10, and 13, and applicable sections of 10 TAC Chapter 11. However, certain waivers and alternative requirements in Title 10 of the Texas Administrative Code are applied to allow for better alignment with HUD Notice 21-10. These waivers are listed in Attachment A of the NOFA.
In its approved HOME-ARP Allocation Plan, TDHCA programmed $56,511,887 for affordable rental housing. On December 8, 2022, TDHCA released a HOME-ARP Notice of Funding Availability (NOFA) in the amount of $48,384,528 for rental development and $3,324,229 in operating costs and capacity building for eligible nonprofit organizations, related to rental development. The NOFA was suspended on February 16, 2023, due to more funding requests being submitted in the first Application Acceptance period than funding available. The 2023-2 HOME-ARP NOFA closed on March 1, 2023.
TDHCA HOME-ARP Staff are recommending approval of these two HOME-ARP applications, which are layered with 2022 9% Housing Tax Credits (HTC).
|
App. ID |
Application Name |
Recommended HOME-ARP Award |
Project Type |
Source and Layering |
City |
|
23712 |
Lapiz Flats |
$1,506,500 |
New Construction |
2022 9% HTC (22297) |
Grand Prairie |
|
23711 |
Jaipur Lofts |
$2,060,000 |
New Construction |
2022 9% HTC (22285) |
Dallas |
TDHCA Staff will recommend approvals at a later date for other eligible applications, including Developments that are requesting only HOME-ARP funds, or are requesting HOME-ARP layered with 2022 9% HTCs or 2023 4% HTCs, in accordance with the NOFA requirements (as amended).
Application Number 23712: Lapiz Flats
Lapiz Flats, LLC, is the owner of Lapiz Flats in Grand Prairie, Texas, which is a New Construction project that received a 2022 9% HTC award, and is now requesting additional funds due to cost increases. The address of the proposed new construction is NEC IH 30 and Duncan Perry Rd, Grand Prairie, TX, 75050. The total cost of the proposed new construction is $16,779,636, of which $1,506,500 is the HOME-ARP request. Other funding is coming from previously awarded 2022 9% Housing Tax Credits issued by TDHCA, a Federal Housing Administration loan from Amegy, and other private sources.
Description: Lapiz Flats is a LIHTC 69-unit new construction elderly housing project with 45 one-bedroom units and 24 two-bedroom units.
For the new construction under the 9% Award, they committed 69 units. For the HOME-ARP funds, they will commit 10 units, of which 3 will be High HOME 60%, and 7 are for Qualified Populations (QPs), which include persons experiencing homelessness and other vulnerable populations. QPs pay only 30% of their income toward rent for the federal compliance period. There is a limitation that the one head of household will be 62 or older, and must accept elderly households with children due to the requirement of 221(d)(4) HUD financing on the property.
Financing and Regulatory Terms: The $1,506,500 HOME-ARP Loan will be in second lien position with an 18-year term at 0.25% interest, and a 40-year amortization period. The loan structure and details are located in Attachment A, Lapiz Flats Underwriting Report.
Organizational Structure: The proposed borrower is Lapiz Flats, LLC includes principals as indicated in the organization chart included in Attachment A.
Conditions: There is one condition proposed prior to entering into a contract for Lapiz Flats that is listed in the underwriting report, which is that the Applicant will show that their project has been environmentally cleared via 24 CFR Part 50 or Part 58, as applicable.
Application Number 23711: Jaipur Lofts
Jaipur Lofts, LLC is the owner of Jaipur Lofts in Dallas, Texas, which is a New Construction project that received a 2022 9% HTC award, and is now requesting additional funds due to cost increases. The address of the new construction consists of lots around Annex Avenue and Cabell Drive, Dallas, TX, 75204. The total cost of the proposed new construction is $24,419,518, of which $2,060,000 is the HOME-ARP request. The remaining funding is coming from previously awarded 2022 9% Housing Tax Credits issued by TDHCA, HOME funds from the City of Dallas, and other private sources. The Dallas Housing Authority is expected to commit 8 Project-Based Vouchers.
Description: Jaipur Lofts is a 2022-awarded LIHTC new construction housing project with 26 one-bedroom units, 37 two-bedroom units, and 8 three-bedroom units, applying for HOME-ARP funds.
For new construction under the 9% reservation, they will commit 71 units. For the HOME-ARP funds, they will commit 11 units, of which three will be High HOME 60% rents, and eight are for Qualified Populations (QPs), which include persons experiencing homelessness and other vulnerable populations. QPs pay only 30% of their income toward rent for the federal compliance period.
Conditions: There is one condition proposed prior to contracting for Jaipur Lofts, as outlined in the underwriting report, which is evidence that the Developer has met the Uniform Relocation Requirements (URA) and/or 104(d) requirements. The development site included the demolition of housing triggering these requirements.
Financing and Regulatory Terms: The $2,060,000 HOME-ARP Loan will be in second lien position with a 15-year term at .25% interest, and a 40-year amortization period. The loan structure and details are located in Attachment B, Cady Lofts Underwriting Report.
Organizational Structure: The proposed borrower is Jaipur Lofts, LLC includes principals as indicated in the organization chart included in Attachment B.