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Presentation, discussion, and possible action on Inducement Resolution No. 26-016 for Multifamily Housing Revenue Bonds or Notes regarding authorization for filing an application for private activity bond authority for The Preserve at Dominion Park
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RECOMMENDED ACTION
recommendation
WHEREAS, the Board previously approved an inducement resolution at the meeting of May 9, 2024, for The Preserve at Dominion Park;
WHEREAS, an amended inducement resolution is necessary in order to comply with the Bond Review Board’s requirement that an inducement resolution be adopted within 18 months of the date of an Application;
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 amended inducement will allow staff to submit an application to the Bond Review Board (BRB) for private activity bonds;
NOW, therefore, it is hereby
RESOLVED, that based on the foregoing, Inducement Resolution No. 26-016, 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 The Preserve at Dominion Park, 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 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.
26607 - The Preserve at Dominion Park
The new construction of 134 multifamily units to serve the elderly population is proposed to be located at 13100 Kuykendahl Road, in the extraterritorial jurisdiction of Houston, Harris County. The applicant will elect the Priority 3 designation, which does not have specific rent and income restrictions. All of the units are proposed be rent- and income-restricted at 60% of Area Median Family Income. The Department received letters of support for The Preserve at Dominion Park from State Representative Senfronia Thompson and Chosen Behavioral in 2025.
The 4% HTC application was submitted to the Department in 2025 and under review when the financing partners changed. There has been delays associated with securing new debt and equity partners and the time needed for them to work through due diligence associated with the development. The applicant has now secured new financing such that the application is back on track; however, given the passage of time a refreshed inducement resolution is necessary as part of the application for bond volume cap.
Bond Inducement Amount: $20,000,000