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Presentation, discussion, and possible action on Inducement Resolution No. 26-008 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 Lariat Apartments.
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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 the issuance of a Certificate of Reservation associated with the Development;
NOW, therefore, it is hereby
RESOLVED, that based on the foregoing, Inducement Resolution No. 26-008, 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 Lariat Apartments 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.
This inducement resolution would reserve approximately $50 million in private activity bond volume cap. Staff notes that the Department’s set-aside for the 2026 program year is estimated to be approximately $215,000,000. The pre-application listed below will be added to the Department’s 2026 list.
25614 - Lariat Apartments
The new construction of 264 units for the general population is proposed for this Development to be located at the northeast quadrant of South Highway 183 and Gunnison Grove Avenue in Mustang Ridge, Travis County. The transaction is proposed to be Priority 3, which does not have specific income and rent restrictions. The Average Income minimum set-aside has been elected, and all of the units are preliminarily proposed to be rent and income restricted at 60% of the Area Median Family Income. The Department has not received any letters of support or opposition for the proposed Development.
Bond Inducement Amount: $50,000,000