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Presentation, discussion, and possible action regarding the Issuance of Multifamily Housing Revenue Bonds (Torrington Wilmer) Series 2026, Resolution No. 26-012 and a Determination Notice of Housing Tax Credits
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RECOMMENDED ACTION
recommendation
WHEREAS, the Board adopted an inducement resolution for Torrington Wilmer at the Board meeting of October 10, 2024;
WHEREAS, an application for Torrington Wilmer requesting 4% Housing Tax Credits, sponsored by Torrington Wilmer GP, LLC, and the Dallas County Housing Finance Corporation, was submitted to the Department on October 6, 2025;
WHEREAS, a Certificate of Reservation was issued in the amount of $48,000,000 on February 12, 2026, with a bond delivery deadline of August 11, 2026; and
WHEREAS, staff recommends approval of the issuance of Multifamily Housing Revenue Bonds for Torrington Wilmer (Series 2026) and the issuance of a Determination Notice;
NOW, therefore, it is hereby
RESOLVED, that the issuance of Multifamily Housing Revenue Bonds (Torrington Wilmer) Series 2026, in the amount of $45,000,000, Resolution No. 26-012, is hereby approved in the form presented to this meeting;
FURTHER RESOLVED, the issuance of a Determination Notice of $4,166,508 in 4% Housing Tax Credits for Torrington Wilmer, subject to underwriting conditions that may be applicable as found in the Real Estate Analysis report posted to the Department’s website, is hereby approved in the form presented to this meeting; and
FURTHER RESOLVED, that if approved, staff is authorized, empowered, and directed, for and on behalf of the Department to execute such documents, instruments and writings and perform such acts and deeds as may be necessary to effectuate the foregoing.
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BACKGROUND
General Information: The Multifamily Housing Revenue Bonds will be issued in accordance with Tex. Gov’t Code §2306.353 et seq., which authorizes the Department to issue bonds for its public purposes, as defined therein. Tex. Gov’t Code §2306.472 provides that the Department’s multifamily housing bonds are solely obligations of the Department, and do not create an obligation, debt or liability of the State of Texas or a pledge or loan of faith, credit or taxing power of the State of Texas.
Development Information: Torrington Wilmer proposes the new construction of 300 units for the general population to be located at 1501 East Beltline Road in Wilmer, Dallas County. The Certificate of Reservation from the Bond Review Board was issued under the Priority 3 designation, which does not have any restrictions regarding rent and income levels. The application reflects that all of the units are proposed to be rent and income-restricted at 60% of the Area Median Family Income.
Organizational Structure and Previous Participation: The Borrower is Torrington Wilmer, LP, and includes the entities and principals as illustrated in Exhibit A. The applicant’s portfolio is considered a Category 3 and was deemed acceptable.
Tax Equity and Fiscal Responsibility Act (TEFRA) Public Hearing/Public Comment: On March 18, 2022, the IRS released Revenue Procedure 2022-20, which permanently allows TEFRA hearings for qualified activity bonds to be held telephonically. Staff conducted a telephonic hearing for the proposed development on November 18, 2025. Representatives from the Department and the Developer were present, and no public comment was made. A copy of the transcript is included herein. The Department has not received any letters of support or opposition for the development.
Summary of Financial Structure
Under the proposed structure, the Department will issue unrated, fixed rate tax-exempt bonds in the aggregate principal amount of $45,000,000, to be purchased by Specialty Finance Group (SFG), a division of Cedar Rapids Bank and Trust Company, who will be serving as the construction and permanent lender. The interest rate will be fixed prior to closing by a Swap Agreement and will be equal to the sum of the 30-Day Average SOFR Rate (as defined in the Borrower Note) plus 1.25% Basis Points, currently estimated to be 5.90%, which is the interest rate used purposes of the Department’s underwriting. The Department is not a party to the Swap Agreement. The loan will have a 36-month interest only construction term, followed by a 15-year permanent term, 40-year amortization period, with a final maturity date of approximately May 1, 2046. SFG will also provide a bridge loan in the amount of $21,566,502. The bridge loan will have a 36-month term, and the interest rate will be equal to the 30-Day Average SOFR Rate plus 1.25%, currently estimated to be 5.90%.