STRATEGIC PRIORITY: Housing & Homelessness Solutions
AGENDA DATE: February 12, 2025
COUNCIL DISTRICT(S): 13
DEPARTMENT: Department of Housing and Community Development
EXECUTIVE: Robin Bentley
______________________________________________________________________
SUBJECT
Title
Authorize (1) the adoption of a Resolution of Support for Sycamore Strategies, LLC and/or its affiliate(s) (Applicant), related to its application to the Texas Department of Housing and Community Affairs for 9% Housing Tax Credits for the development The Meadow to be located at 8130 Meadow Road, Dallas, Texas 75231; and (2) an agreement with the Applicant for a line of credit in the amount of $500.00 for the proposed multifamily development - Not to exceed $500.00 - Financing: General Fund
Body
BACKGROUND
The Applicant submitted a pre-application to the Texas Department of Housing and Community Affairs (TDHCA) for 2025 9% Low Income Competitive Housing Tax Credits (9% HTC) for the repurposing of a vacant skilled nursing facility, a 100-unit mixed-income multifamily complex located at 8130 Meadow Road, Dallas, Texas 75231. The Applicant has executed a purchase agreement with iBorrow 8130 Meadow Owner 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; and
§ 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; and
§ 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; and
§ 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.
Sycamore Magnolia, LP., a to-be-formed Texas limited partnership, will be the ownership entity. The Applicant specializes in the development of mixed-income and affordable housing and is a Texas-certified Historically underutilized Business (HUB). The Applicant has decades of experience working in the public and private sectors and has been involved in multiple affordable housing developments from land purchase through development and asset management. Sycamore Strategies, LLC is located in Dallas with 1,200 units under development across Texas, of which four developments totaling 647 units are located in Dallas. The Applicant will serve as a general partner in the ownership structure.
The Applicant proposes an adaptive reuse of a vacant skilled nursing facility into a 100-unit permanent supportive housing development to include 50 studio and 50 1-bedroom units. The units will include full electric kitchen appliance package, spacious nine-foot ceilings, generous porches or balconies with storage closets, decorative lighted ceiling fans in living and bedrooms, garden tubs and walk-in showers, full size washer and dryer connections, radiant barrier, oversized walk-in closets and high-speed internet and cable tv access. Amenities include elevators in each building, activities & events, supportive staff onsite, a maintenance free lifestyle, a community kitchen for get togethers or special events, business center, full fitness studio, library with seating tables, billiards room, movie theatre, and laundry facilities. The site is within one mile of transit bus stop and two light rail stations, a Tom Thumb, Harry S. Moss Park, trails, and Kindred Hospital.
If awarded tax credits by TDHCA, Applicant will work with the Office of Emergency Management and Crisis Response throughout the planning and design process for security input, community activities, and incorporate best practices of Crime Prevention Through Environmental Design. Additionally, the Applicant will provide modern security features to include a full camera system, controlled access, a community crime watch program, and participation in National Night Out to ensure a safe living environment for all residents and staff.
Total development costs are anticipated to be approximately $28,419,987.00, which includes the acquisition price for the land. The hard cost redevelopment budget is anticipated to be $14,080,000.00 which is $140,800.00 per unit.
|
Proposed Financing Sources |
Amount |
|
LIHTC Syndication Proceeds |
$17,198,280.00 |
|
Deferred Developer Fee |
$ 1,812,698.00 |
|
Grant - City of Dallas |
$ 9,409,009.00 |
|
Total |
$28,419,987.00 |
|
Proposed Uses |
Costs |
|
Building Costs & Construction Fees |
$20,805,536.00 |
|
Soft Costs & Financing Fees |
$ 3,523,813.00 |
|
Developer Fees |
$ 3,627,118.00 |
|
Reserves |
$ 463,520.00 |
|
Total |
$28,419,987.00 |
Upon completion of the development, 10 of the 100 units will be made available to households earning 0.00%-30.00% of Area Median Income (AMI), 40 of the 100 units will be made available to households earning between 31.00%-50.00% of AMI, and 50 of the 100 units will be made available to households earning between 51.00%-60.00% of AMI.
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 six 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; or
§ The applicant intends to partner with the Dallas Housing Finance Corporation or Public Facility Corporation; or
§ 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 HUD programs that may be created; or
§ The project is located in a census tract with a poverty rate below 20.00%; or
§ The project located within a designated Equity Strategy Target Area in the DHP33; or
§ 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 scored 41 points and is a priority housing need development located in a census tract with a poverty rate below 20.00% (9.2%) and met the required application thresholds. The Market Value Analysis Market Value Analysis (MVA) market type is ‘F’ and is in close proximity to MVA market types ‘C’ and ‘D.’
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On May 9, 2018, the City Council adopted the Comprehensive Housing Policy (CHP), as restated in the Dallas Housing Policy 2033 (DHP33) and Dallas Housing Resource Catalog (DHRC), Resolution Nos. 18-0704 and 18-1680, as amended on November 28, 2018, which provided a policy including evaluation criteria for developers requiring Resolutions of Support or No Objection for rental housing developments seeking HTC through TDHCA.
On June 12, 2019, the City Council authorized an amendment to the CHP, as restated in the DHP33 and DHRC, to modify the evaluation criteria for developers requiring Resolutions of Support or No Objection for rental housing development seeking HTC through TDHCA by Resolution No. 19-0884. The modified evaluation criteria include standard thresholds for both 4.00% and 9% HTC applications such as evidence of site control, TDHCA minimum site standards, affirmatively further fair housing, and other requirements.
The Housing and Homelessness Solutions was briefed by memorandum regarding this matter on January 28, 2025. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=13697995&GUID=96DF26DC-21E2-4141-B9B6-DF2522C3E6AA>
FISCAL INFORMATION
|
Fund |
FY 2025 |
FY 2026 |
Future Years |
|
General Fund |
$500.00 |
$0.00 |
$0.00 |
MAP
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