PILLAR: Vibrant
AGENDA DATE: November 12, 2025
COUNCIL DISTRICT(S): 3
DEPARTMENT: Office of Housing and Community Empowerment
PRIORITY: Neighborhood Revitalization
______________________________________________________________________
SUBJECT
Title
A public hearing to receive comments (1) regarding an application by Westmoreland Townhomes Limited Partnership and/or its affiliate(s) (collectively referred to as Applicant) to the Texas Department of Housing and Community Affairs (TDHCA) for 4% Non-Competitive Low Income Housing Tax Credits for Westmoreland Townhomes, a 216-unit multifamily residential development for persons of low and moderate income to be, located at 6600 South Westmoreland Road, Dallas, Texas 75237 (Project); (2) pursuant to Section 394.9025 of the Texas Local Government Code regarding bonds to be issued by the City of Dallas Housing Finance Corporation to finance the Project; and at the close of the public hearing; and (3) authorize a Resolution of No Objection for Applicant, acknowledging the Project’s location in a census tract with more than twenty percent Housing Tax Credit units per total households, related to its application to TDHCA for the development of the Project - Financing: No cost consideration to the City (see Fiscal Information)
*In alignment with Dallas Housing Policy 2033.
Body
BACKGROUND
Westmoreland Townhomes Limited Partnership, a Texas limited partnership, and/or its affiliate(s) (collectively referred to as Applicant) submitted an application to the City of Dallas for a Resolution of No Objection (RONO) for its application to Texas Department of Housing and Community Affairs (TDHCA) for 2025 4% Non-Competitive Housing Tax Credits (4% Housing Tax Credits). The 4% Housing Tax Credits will be used for the development of Westmoreland Townhomes, a 216-unit multifamily complex Project.
A Real Estate Purchase Agreement for the Property has been executed between the current owner of the Property and an affiliate of the Applicant. TDHCA requires 4% Housing Tax Credit applicants to provide a RONO from the governing body of the jurisdiction in which the proposed development will be sited. As part of these TDHCA requirements, the governing body must also conduct a public hearing for citizens to provide comments on the proposed development. Once a resolution is adopted and submitted to TDHCA, it cannot be changed or withdrawn.
The Project is located in a census tract with more than twenty 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 has no objection to the Applicant’s application. The City Council, as the governing body of the local government where the Project is to be located, must by vote specifically allow the construction of the Project and authorize an allocation of Housing Tax Credits for the Project. This project is located in Council District 3 and is not a Racially/Ethnically Concentrated Area of Poverty (R/ECAP); therefore, City staff support a RONO acknowledging the Project’s location.
The Applicant proposes to develop the Project as a new construction multifamily rental development. A to-be-formed single asset entity or its affiliate with the Dallas Housing Finance Corporation (DHFC) as 100% owner, will be the general partner. The special limited partner will be a to-be-formed limited liability company (or its affiliate), which is 100% owned by a Texas limited liability company. An amended and restated agreement of limited partnership will be executed to admit the tax credit equity investor as investor member once identified. Pursuant to Tex. Loc. Gov’t Code § 394.9025, the City Council must hold a public hearing before the DHFC may issue bonds to finance the Project.
The new construction Project will include 216 duplex-style townhome units, all of which will be reserved for senior households earning no more than 60% of the Area Median Income (AMI). The unit mix includes one- and two-bedroom units designed to accommodate senior residents.
Resident Services:
Include health and wellness programs, educational services, transportation assistance, financial counseling, community-building activities, access to food and nutrition programs, and on-site safety and security.
Unit Amenities:
Include front porches, backyards, off-street parking, in-unit laundry, and energy-efficient appliances.
Total development costs are estimated to be approximately $74,169,659.58, which includes the acquisition price for the land. The construction budget is estimated to be approximately $48,100,650.44, which is $222,688.20 per unit.
|
Proposed Financing Sources |
Amount |
|
Permanent Financing |
$33,960,000.00 |
|
Tax Credit Equity |
$27,527,841.00 |
|
Cash Flow During Construction |
$ 2,748,850.69 |
|
Reinvestment Proceeds |
$ 973,750.42 |
|
Sales Tax Rebate |
$ 930,000.00 |
|
Deferred Developer Fee |
$ 8,029,117.47 |
|
GC Capital Contribution |
$ 100.00 |
|
Total |
$74,169,659.58 |
|
Proposed Uses |
Amount |
|
Land Acquisition |
$ 4,425,000.00 |
|
Construction Hard Costs |
$ 48,100,650.44 |
|
Project Soft Costs |
$ 2,146,670.00 |
|
Tax Credit Fees |
$ 325,842.60 |
|
Bond Costs |
$ 681,330.00 |
|
Equity Bridge Loan Costs & Reserve |
$ 1,966,001.70 |
|
Construction Loan Costs & Reserve |
$ 7,149,679.74 |
|
Permanent Loan Costs |
$ 110,000.00 |
|
Closing Costs |
$ 164,900.00 |
|
Escrows and Reserves |
$ 1,046,328.52 |
|
Developer Fee + LACCM Fee |
$ 8,053,256.58 |
|
Total |
$ 74,169,659.58 |
To receive a staff recommendation for a RONO, the Applicant must satisfy all threshold requirements and affirmatively further fair housing.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
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 to include the Low-Income Housing Tax Credit program for development of multifamily housing by Resolution No. 23-0444.
On October 10, 2023, the Dallas Housing Finance Corporation authorized a preliminary inducement resolution declaring its intent to issue private activity bonds in an aggregate principal amount not to exceed $40,000,000.00 to finance a loan to a limited liability company or a limited partnership formed by Lincoln Avenue Capital, LLC, to provide financing for Westmoreland Townhomes and authorized the filing of an application for allocation of private activity bonds with the Texas Bond Review Board.
The Housing and Homelessness Solutions Committee was briefed by memorandum regarding this matter on October 21, 2025. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=14878101&GUID=06E119AE-8E9D-4995-997D-9E5811D426E0>
The Housing and Homelessness Solutions Committee was briefed by memorandum regarding this matter on November 4, 2025. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=14898957&GUID=F43C10EF-3580-484D-BCE7-244CD7C8B021>
FISCAL INFORMATION
No cost consideration to the City. The following is an estimate of the tax revenue the City of Dallas is projected to forgo. These projections are based on the current taxable value of the property, the anticipated value of the project upon completion, and the expected taxes on the future assessed value. For DHFC projects, the values are calculated by DHFC staff at this time.
Actual Taxes:
Current Year $ 8,681.56
Year 15 $159,607.70
Year 30 $408,271.28
Projected Taxes Foregone:
Year 15 $ 4,278,468.00
Year 30 $10,944,181.00
MAP
Attached