title
Presentation, discussion, and possible action on Inducement Resolution No. 25-006 for Multifamily Housing Revenue Bonds regarding authorization for filing applications for private activity bond authority
end
RECOMMENDED ACTION
recommendation
WHEREAS, six pre-applications, as further detailed below, were submitted to the Department for consideration of an inducement resolution;
WHEREAS, Board approval of the inducement resolution is the first step in the application process for a multifamily bond issuance by the Department; and
WHEREAS, approval of the inducement will allow staff to submit an application to the Bond Review Board (BRB) for the issuance of a Certificate of Reservation and/or Traditional Carryforward Reservation associated with the Development;
NOW, therefore, it is hereby
RESOLVED, that based on the foregoing, Inducement Resolution No. 25-006, to proceed with the application submissions to the BRB for possible receipt of State Volume Cap issuance authority under the Private Activity Bond Program for the pre-applications listed herein, is hereby approved in the form presented to this meeting.
end
BACKGROUND
General Information: The BRB administers the annual private activity bond authority for the State of Texas. The Department is an issuer of Private Activity Bonds and is required to induce an application for bonds prior to the submission to the BRB. Approval of the inducement resolution does not constitute approval of the development but merely allows the Applicant the opportunity to move into the full application phase of the process. Once the application receives a Certificate of Reservation, the Applicant has 180 days to close on the private activity bonds.
During the 180-day process, the Department will review the complete application for compliance with the Department’s Rules, including, but not limited to, site eligibility and threshold, as well as previous participation as it relates to developments previously funded through the Department. During the review of the full application, staff will also underwrite the transaction and determine financial feasibility in accordance with the Real Estate Analysis Rules. The Department will schedule and conduct a public hearing, and the complete application, including a transcript from the hearing, will then be presented to the Board for a decision on the issuance of bonds as well as a determination on the amount of housing tax credits anticipated to be allocated to the development.
This inducement resolution would reserve approximately $223,950,000 in private activity bond volume cap. Staff notes that the Department’s set-aside for the 2025 program year, exclusively for multifamily issuances, is anticipated to be approximately $200,000,000. Based on the applications received to date, the set-aside is oversubscribed.
24613 - Waters at Waterchase
The acquisition and rehabilitation of 134 multifamily units to serve the general population is proposed for the project. The existing development, which was originally built in 1984, is located at 12365 Plano Road, Dallas, Dallas County. Waters at Waterchase was originally part of a Qualified 501(c)(3) Bond portfolio issued by the Department in 1993, which was redeemed in 2004 and the bonds are no longer outstanding. The applicant will elect the Priority 2 designation, which requires a minimum of 80% of the units to be rent and income restricted at 60% of the Area Median Family Income (AMFI). This designation allows up to 20% of the units to be leased at market rate. The Development will adhere to the requirements of the priority designation as it preliminarily reflects that all of the units will be rent and income-restricted at 60% of AMFI. The Department has not received any letters of support or opposition for the development.
Bond Inducement Amount: $15,450,000
24614 - Waters at Arrowood
The acquisition and rehabilitation of 304 multifamily units to serve the general population is proposed for the project. The existing development, which was originally built in 1987, is located at 8304 South Course Drive, Houston, Harris County. Waters at Arrowood was originally part of a Qualified 501(c)(3) Bond portfolio issued by the Department in 1993, which was redeemed in 2004 and the bonds are no longer outstanding. The applicant will elect the Priority 2 designation, which requires a minimum of 80% of the units to be rent and income restricted at 60% of the AMFI. This designation allows up to 20% of the units to be leased at market rate. The Development will adhere to the requirements of the priority designation as it proposes 303 of the units to be rent and income-restricted at 60% of AMFI and one of the units to be employee-occupied. The Department has not received any letters of support or opposition for the development.
Bond Inducement Amount: $30,500,000
24615 - The Heights at Country Creek
The new construction of 240 units for the general population is proposed for this multifamily development to be located at or near 4700 Country Creek Drive in Dallas, Dallas County. The transaction is proposed to be Priority 3, which does not have any specific income and rent restrictions. All of the units are preliminarily identified as being rent and income-restricted at 60% of AMFI. The Department has not received any letters of support or opposition for the proposed development. Staff notes that this application may be submitted for 2025 Traditional Carryforward.
Bond Inducement Amount: $45,000,000
24616 - The Legacy on Belt Line
The new construction of 180 units for the general population is proposed for this multifamily development to be located at or near 1275 South Belt Line Road in Dallas, Dallas County. The transaction is proposed to be Priority 3, which does not have specific income and rent restrictions. All of the units are preliminarily identified as being rent and income-restricted at 60% of AMFI. The Department has not received any letters of support or opposition for the proposed development. Staff notes that this application may be submitted for 2025 Traditional Carryforward.
Bond Inducement Amount: $35,000,000
24617 - The Gateway at Trinity Forest
The new construction of 300 units for the general population is proposed for this multifamily development to be located at or near 2200 Dowdy Ferry Road in Dallas, Dallas County. The transaction is proposed to be Priority 3, which does not have any specific income and rent restrictions. All of the units are preliminarily identified as being rent and income-restricted at 60% of AMFI. The Department has not received any letters of support or opposition for the proposed development. Staff notes that this application may be submitted for 2025 Traditional Carryforward.
Bond Inducement Amount: $50,000,000
24618 - Torrington Wilmer
The new construction of 300 units for the general population is proposed for this multifamily development to be located at or near 1501 East Belt Line Road, Wilmer, Dallas County. The transaction is proposed to have a Priority 3 designation, which does not have any specific income and rent restrictions. Of the 300 units, 150 are preliminarily identified as being rent and income-restricted at 50% of AMFI and 150 are identified as being rent and income restricted at 70% of AMFI. The Department has not received any letters of support or opposition for the proposed development.
Bond Inducement Amount: $48,000,000