STRATEGIC PRIORITY: Housing & Homelessness Solutions
AGENDA DATE: February 12, 2025
COUNCIL DISTRICT(S): 11
DEPARTMENT: Department of Housing and Community Development
EXECUTIVE: Robin Bentley
______________________________________________________________________
SUBJECT
Title
Authorize (1) the adoption of a Resolution of Support for St. Margaret, Inc. and/or its affiliate(s) (Applicant), related to its application to the Texas Department of Housing and Community Affairs for 2025 9% Housing Tax Credits for the development of The Broderick to be located at 12800 Coit Road, Dallas, Texas 75251; 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 development of The Broderick, a 108-unit ground-up mixed-income multifamily community for seniors ages 55 and above. St. Jude Inc., an affiliate of the Applicant, has executed an exclusive option agreement with the Applicant, the current property owner.
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
Coit Broderick, LP, a to-be-formed Texas limited partnership, will be the ownership entity. The Applicant, a Catholic Housing Initiative (CHI) member, has partnered with Carleton Construction to develop the Project. CHI is a community-based, non-profit organization founded in 1991 by a group of Catholics to provide quality, affordable family and senior housing. CHI has completed a 230-unit mixed-income Low-Income Housing Tax Credit (LIHTC) development, Gateway Oak Cliff. St. Jude Inc. has opened St Jude Center-Vantage Point, a 136-unit permanent supportive housing development for chronically homeless. In addition to these St. Jude Centers (444 units), CHI owns and operates more than 1,000 apartment units in Coppell, Carrollton, Mesquite, and Dallas. Of its existing housing inventory, approximately 200 units are designated for seniors and the rest are for families. Recently, CHI celebrated opening an infill single-family ownership housing project in the Five Mile neighborhood of Dallas and a 50-lot ownership development in the Kessler Heights neighborhood on 52nd Street. CHI has substantial development and redevelopment experience in addition to its operating and financing expertise, particularly in arranging complex public-private capital structures.
The Applicant proposes to develop 108 units targeting seniors, of which 5.00% of the units will be set aside for persons with special needs and an additional 2.00% will be coordinated through the Continuum of Care. The new construction will include common areas such as a fitness room, community room, warming kitchen, clothes care center, leasing office, multi-functional activity room, and business center. Unit amenities include durable surfaces such as vinyl plank flooring, fully appointed kitchens, living room and bedroom ceiling fans, attractive finishes, and water-saving plumbing features.
The development will provide high-quality amenities and supportive services to create affordability in a High Opportunity area of Dallas. Residential services will include activities for residents such as food pantry access (on-site or via on-request transportation, an annual health fair, notary services, twice-a-month arts and crafts, recreational activities, and social events. The development will have a part-time resident service coordinator. The project will be constructed on the excess parking on the St. Jude Park Central property located at 8102 Lyndon B. Johnson Freeway (LBJ) and will be built and operated in accordance with local, state, and federal accessibility requirements.
The development has easy access to needed amenities and is located a half mile from the nearest full-service grocery store and is less than a mile from the LBJ/Central Dallas Area Rapid Transit Station, Cottonwood Trail/Hamilton Park, Willie B. Johnson Recreation Center, Medical City Healthcare, a library, and daycare center.
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 $29,005,169.00, the land will be gifted or donated. The hard cost construction budget is anticipated to be $17,248,561.00 which is $159,708.90 per unit. The total construction amount includes a 7.00% contingency.
|
Proposed Financing Sources |
Amount |
|
Conventional Loan/FHA |
$ 6,613,000.00 |
|
LIHTC Syndication Proceeds |
$16,198,380.00 |
|
Dallas County Loan |
$ 3,000,000.00 |
|
City of Dallas Loan |
$ 3,000,000.00 |
|
Deferred Developer Fee |
$ 193,789.00 |
|
Total |
$29,005,169.00 |
|
Proposed Uses |
Costs |
|
Land Acquisition |
$ 0.00 |
|
Hard Construction Cost and Contractor Fees |
$ 19,663,359.00 |
|
Soft Costs & Financing Fees |
$ 5,117,179.00 |
|
Developer Fees |
$ 3,502,194.00 |
|
Reserves |
$ 722,437.00 |
|
Total |
$ 29,005,169.00 |
Upon completion of the development,11 of 108 units will be made available to households earning 0.00%-30.00% of Area Median Income (AMI), 44 of the 108 units will be made available to households earning between 31.00%-50.00% of AMI, 42 of the 108 units will be made available to households earning between 51.00%-60.00% of AMI, and 11 units will remain as non-income-restricted market-rate units.
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 Housing Tax Credits (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% and 9% HTC applications such as evidence of site control, TDHCA minimum site standards, affirmatively further fair housing, and other requirements.
The evaluation criteria for 9% HTC applications seeking a Resolution of Support also requires applications to 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;
§ 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%;
§ The project is located within an designated as an Equity Strategy Target Area (ESTA) in the Dallas Housing Policy 2033; 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 47.5 and is a priority housing need development located in a census tract with a poverty rate below 20.00% (4.8%) and met the required application thresholds. The proposed Project is located in Market Value Analysis market type ‘F’. which is 13% owner-occupied housing. Additionally, the Project aligns with the Dallas Housing Policy 2033 Action Plan goals and housing needs assessment through the creation of rental housing for households earning 50% AMI or below, increase in the supply of housing to meet projected demand, and will help prevent involuntary displacement of the neighborhood’s low-income seniors.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
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
Attached