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Presentation, discussion, and possible action on pre-applications received for consideration of an Inducement Resolution for Multifamily Housing Revenue Bonds to be issued by the Department
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RECOMMENDED ACTION
recommendation
WHEREAS, two pre-applications, sponsored by RISE Residential, LLC and as further detailed below, were 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, based on concerns as further noted herein staff recommends that the request for an inducement resolution be denied.
NOW, therefore, it is hereby
RESOLVED, that based on the information provided herein, staff recommends the request for an inducement resolution be denied.
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BACKGROUND
On September 5, 2024, the Department received two pre-applications from RISE Residential, LLC requesting an inducement resolution. Seaport Village, reportedly to involve the reconstruction of 192 units in Galveston, Galveston County, submitted a request for $25,000,000 private activity bonds and Sienna Villas, involving the rehabilitation of 144 units in Freeport, Brazoria County, submitted a request for $15,000,000 in private activity bonds.
The previous agenda item identified concerns relating to the Legacy Riverside Seniors transaction, a development for which the Department was the bond issuer and of which RISE Residential is involved. The Board write-up for the Murdeaux Villas agenda item also noted that RISE Residential was involved in that transaction; however, RISE has since exited. As staff was evaluating those requests for a supplemental bond allocation, the Seaport Village and Sienna Villas pre-applications were submitted. On September 5, 2024, RISE also submitted requests for the Department to issue supplemental bonds for two 4% Housing Tax Credit applications where the bonds were originally...
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