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Presentation, discussion, and possible action on Inducement Resolution No. 25-010 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 and/or submitted for Traditional Carryforward for Braniff Lofts
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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 Bond Review Board (BRB) for private activity bonds, to be added to the Department’s Waiting List for 2025 or to be submitted requesting Traditional Carryforward for the Development;
NOW, therefore, it is hereby
RESOLVED, that based on the foregoing, Inducement Resolution No. 25-010, 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 Braniff Lofts, 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 $20 million in private activity bond volume cap. Staff notes that the Department’s set-aside for the 2025 program year is anticipated to be approximately $200,000,000. The pre-application listed below may be added to the Department’s waiting list for a bond reservation; however, staff may pursue submission of the application for Traditional Carryforward, in which case a reservation could be received if there is unreserved bond volume cap at the end of the calendar year.
24619 - Braniff Lofts
The adaptive reuse of the former Braniff Airlines dormitory and training center is proposed for the development, located at 2801 Wycliff Avenue in Dallas, Dallas County. This Supportive Housing project will construct 48 multifamily units in an elevator-served historic building. The applicant has elected the Priority 3 designation, which does not require any restrictions regarding the AMFI levels served. 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 development, however, a resolution stating support for the Development from the City of Dallas was received. Staff notes that it anticipates filing Braniff Lofts for 2024 Traditional Carryforward, and, if reserved will not be included in the Department’s 2025 set-aside.
Bond Inducement Amount: $20,000,000