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Presentation, discussion, and possible action on Inducement Resolution No. 24-024 for Multifamily Housing Revenue Bonds or Notes regarding authorization for filing applications to be added to the Department’s Waiting List for private activity bond authority for 600 Building
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RECOMMENDED ACTION
recommendation
WHEREAS, a pre-application, as further detailed below, was 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 private activity bonds and to be added to the Department’s Waiting List for 2024;
NOW, therefore, it is hereby
RESOLVED, that based on the foregoing, Inducement Resolution No. 24-024, to proceed with the application submission to the BRB for possible receipt of State Volume Cap issuance authority under the Private Activity Bond Program for 600 Building, is hereby approved in the form presented to this meeting.
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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. 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 $35 million in private activity bond volume cap. Staff notes that the Department’s set-aside for the 2024 program year is $200,177,913, and is currently over-subscribed. The pre-application listed below will be added to the Department’s waiting list for a bond reservation.
24609 - 600 Building
The adaptive reuse of a former office building is proposed for the development, located at 600 Leopard Street, Nueces County, Corpus Christi. The historic 22-story building is situated in downtown Corpus Christi and was originally built in 1963. This project will construct 131 multifamily units to serve the general population. The applicant has elected the Priority 3 designation, which does not require any restrictions regarding the Area Median Family Income (AMFI). The application proposes to implement the Average Income set-aside and all of the units have been 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 development.
Bond Inducement Amount: $35,000,000