PILLAR: Vibrant
AGENDA DATE: February 11, 2026
COUNCIL DISTRICT(S): 1
DEPARTMENT: Office of Housing and Community Empowerment
PRIORITY: N/A
______________________________________________________________________
SUBJECT
Title
Authorize (1) the adoption of a Resolution of Support for Across, LLC and AZ Morse Development, LLC and O-SDA Industries, LLC (collectively referred to as Applicant), related to its application to the Texas Department of Housing and Community Affairs for 9% Competitive Low Income Housing Tax Credits for the development Rosette Park to be located at 308 East 8th Street and 409 East 9th Street Dallas, Texas 75203 (Project); and (2) an agreement with the Applicant for a line of credit in the amount of $500.00 for the proposed multifamily development of the Project - Not to exceed $500.00 - Financing: General Fund
*In alignment with Dallas Housing Resource Catalog.
Body
BACKGROUND
Across, LLC and AZ Morse Development, LLC (Developer) and O-SDA Industries, LLC (Consultant) (collectively referred to as Applicant) submitted a pre-application to the Texas Department of Housing and Community Affairs (TDHCA) for 2026 Competitive 9% Low Income Housing Tax Credits (9% HTC) for the development of Rosette Park, a reconstruction development of a 82-unit senior affordable multifamily complex located at Project. The Applicant has executed a purchase agreement with Sir Julian LLC, the current property owner. The Applicant may transfer the purchase contract to an affiliate.
In the administration of its 9% HTC Program, TDHCA awards application points for a resolution from a governing body of a local municipality on the following basis:
Within a municipality, the application will receive:
§ 17 points for a resolution from the governing body of that municipality expressly setting forth that the municipality supports (Resolution of Support) the application or development; or
§ 14 points for a resolution from the governing body of that municipality expressly setting forth that the municipality has no objection (Resolution of No Objection) to the application or development.
§ 1 point for a commitment of development funding by a local political subdivision in the form of a loan, grant, reduced fees, or contribution of value that equals $500.00 or more for applications in urban subregions.
Within the extraterritorial jurisdiction of a municipality, the application may receive:
§ 8.5 points for a resolution from the governing body of that municipality expressly setting forth that the municipality supports (Resolution of Support) the application or development; or
§ 7 points for a resolution from the governing body of that municipality expressly setting forth that the municipality has no objection (Resolution of No Objection) to the application or development
Across, LLC and AZ Morse Development, LLC, will be the ownership entity and O-SDA Industries, LLC will be the Consultant. Together, the Applicant has over 27 years of combined experience and a strong track record in affordable housing and are requesting the City of Dallas’ support for its proposed 9% Housing Tax Credit project, Rosette Park, a new affordable community on 308 East 8th Street and 409 East 9th Street, in an underserved census tract. This project aligns with the City’s housing goals by expanding affordable and workforce housing options near downtown and neighborhood amenities.
The Applicant proposes to develop 82 units, to include 64 one-bedroom, and 18 two-bedroom units. The Project will be a 4-story, slab on grade construction and a 3-story podium building. The units will include energy efficient appliances and lighting and other TDHCA-required features. Amenities include a furnished fitness center, community room with kitchen, cyber lounge and community-designed public art. security cameras, granite counter tops, walk-in closets, covered entries, nine-foot ceilings, and breakfast bars. The development has access to services and transportation within 1 mile including high frequency transit, public park, Community Senior Center, Library, Fiesta Mart (full scale grocery store), licensed day care center, Methodist Dallas Medical Center, and Pharmacy.
Total development costs are anticipated to be approximately $29,719,090.00, which includes the acquisition price for the land. The hard cost construction budget is anticipated to be $15,852,000.00 which is roughly $193,320.00 per unit. The total construction amount includes a 7.00% contingency.
|
Proposed Financing Sources |
Amount |
|
Conventional Loan/FHA |
$54,200,000.00 |
|
LIHTC Syndication Proceeds |
$ 17,198,280.00 |
|
Subordinate Loan |
$ 6,400,000.00 |
|
Deferred Developer Fee |
$ 920,810.00 |
|
Total |
$ 29,719,090.00 |
|
Proposed Uses Costs |
|
|
Land Acquisition |
$ 5,300,000.00 |
|
Hard Construction Cost and Contractor Fees |
$ 16,817,039.00 |
|
Soft Costs |
$ 2,292,310.00 |
|
Financing Fees |
$ 1,991,481.00 |
|
Developer Fees |
$ 2,825,809.00 |
|
Reserves |
$ 492,451.00 |
|
Total |
$ 29,719,090.00 |
Upon completion of the development, 9 of the 82 units will be made available to households earning 30.00% of Area Median Income (AMI), 43 of the 82 units will be made available to households earning between 31% 50%.of Area Median Income AMI, 20 of the 82 units will be made available to households earning between 51%-60.00% of AMI, and 10 of the 82 units will be made available to households earning 61-80% AMI.
The Project is located in a census tract with more than 20 percent Housing Tax Credit units per total households as established by the five year American Community Survey. Pursuant to 10 Tex. Admin. Code § 11.3(e), the City Council, as the governing body of the municipality containing the Project, must adopt a resolution that it supports the Applicant’s application.
On April 12, 2023, the City Council adopted the Dallas Housing Policy 2033 (DHP33), by Resolution No. 23-0443 and the Dallas Housing Resource Catalog (DHRC) by Resolution No. 23-0444. The DHRC provides a policy including evaluation criteria for developers requiring Resolutions of Support or No Objection for rental housing developments seeking HTC through TDHCA.
The DHRC evaluation criteria include standard thresholds for both 4% and 9% HTC applications such as evidence of site control, TDHCA minimum site standards, affirmatively further fair housing, and other requirements.
On December 10, 2025, the City Council repealed the DHP33, by Resolution No. 25-1895 and adopted the Drivers of Opportunity Policy Framework by Resolution No. 25-1836. The Omnibus Resolution No. 25-1895 updates and consolidates previous policy resolutions, including the adoption of DHP33, by Resolution No. 23-0443, to reflect the adoption of these strategic policy changes across City departments, reinforcing City priorities and streamlining operational directives.
The evaluation criteria for 9% HTC applications seeking a Resolution of Support also requires applications meet a priority housing need of the City. The applications must meet at least one of the following five priorities:
§ The project has been selected to receive City funding such as Community Development Block Grants, Home Investment Partnerships Program, or General Obligation Bond funding;
§ The applicant intends to partner with the Dallas Housing Finance Corporation or Public Facility Corporation,
§ The proposal involves the redevelopment of public housing owned by the Dallas Housing Authority under the Choice Neighborhoods, Rental Assistance Demonstration, HOPE IV, or other similar U.S. Department of Housing and Urban Development programs that may be created;
§ The project is located in a census tract with a poverty rate below 20.00%; and
§ A 50-unit project dedicating 20.00% of the units for tenants referred from the Continuum of Care list.
Applications that do not qualify as a priority housing need must score at least 50 points based on if the proposed project is mixed income, includes a non-profit or historically underutilized business, its proximity of amenities to the development site, and resident services to be provided.
The Project is qualified to receive a staff recommendation for a resolution of support as it qualifies as a priority housing need development and is located in a census tract with a poverty rate below 20.00% (17.9%) and met the required application thresholds. The Market Value Analysis market type is F.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
The Housing and Homelessness Solutions Committee was briefed by memorandum regarding this matter on February 3, 2026. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=15174140&GUID=79E28CFE-3F58-49AA-A89E-FB8E90C76C2E>
The Housing and Homelessness Solutions Committee was briefed by memorandum regarding this matter on February 10, 2026. <https://dallascityhall.com/government/citymanager/Documents/Council%20Materials/26-338A.pdf>
FISCAL INFORMATION
|
Fund |
FY 2026 |
FY 2027 |
Future Years |
|
General Fund |
$500.00 |
$0.00 |
$0.00 |
MAP
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