PILLAR: Vibrant
AGENDA DATE: September 9, 2026
COUNCIL DISTRICT(S): 1
DEPARTMENT: Office of Housing and Community Empowerment
PRIORITY: N/A
______________________________________________________________________
SUBJECT
Title
A public hearing (1) to receive comments regarding an application by Dallas Leased Housing Associates XIII, LP and/or its affiliate(s) (collectively referred to as Applicant), to the Texas Department of Housing and Community Affairs (TDHCA) for 2026 4% Non-Competitive Low Income Housing Tax Credits for West Davis Family Apartments, a 360-unit multifamily residential development for persons of low and moderate income to be located at 4600 West Davis Street, Dallas, Texas, 75211 (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, (3) authorize a Resolution of No Objection for Applicant related to its upcoming application to the TDHCA for the Project, acknowledging the Project’s location within one linear mile of another development serving the same target population, which received a Housing Tax Credit allocation in the three-year period preceding the date the TDHCA application round began - Financing: This action has no cost consideration to the City (see Fiscal Information)
*In alignment with Dallas Housing Resource Catalog.
Body
BACKGROUND
Dallas Leased Housing Associates XIII, LP a Texas limited partnership, and/or its affiliate, submitted an application to the City of Dallas for a Resolution of No Objection (RONO) for its upcoming application to the Texas Department of Housing and Community Affairs (TDHCA) for 2026 4% Non-Competitive Housing Tax Credits (4% Housing Tax Credits). The 4% Housing Tax Credits will be used for the development of West Davis Family Apartments, a 360-unit multifamily complex located at 4600 West Davis Street, Dallas, Texas, 75211 (Project).
A real estate purchase agreement for the property on which the Project is located (Property) has been executed between the current owner of the Property and an affiliate of the Applicant, Dominium Acquisition, LLC. 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. This Project is located in City Council District 1.
The Project is also located within one linear mile of another development serving the same target population, which received a Housing Tax Credit allocation in the three-year period preceding the date the TDHCA application round began. Pursuant to Tex. Gov’t. Code § 2306.6703(a) and 10 Tex. Admin. Code § 11.3(d), 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 the allocation of Housing Tax Credits.
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 an external investor entity formed as a Texas limited liability company. An amended and restated agreement of limited partnership will be executed to admit the tax credit equity investor as an investor limited partner 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 360 units, all of which will be reserved for families earning at or below 60% of the Area Median Income (AMI). The unit mix includes 84 two-bedroom units, 184 three-bedroom units, and 92 four-bedroom units.
Resident Services
All developments will offer the standard amenities and services required by TDHCA for all non-competitive LIHTC programs, including
• Minimum 12 hours/week organized on-site K-12 programming (e.g. tutoring, after school and summer care, etc.).
• Minimum 4 Hours/week organized classes for adults (e.g., general education, English as a Second Language, financial literacy, etc.), specifically weekly financial literacy classes.
• Minimum 2x/month arts, crafts, or other recreational activities (e.g., book club).
• Minimum 2x/month on-site social events (e.g., potlucks, holiday celebrations, etc.).
• Part-time resident services coordinator (min. 15 hours/week) or contract for same through local provider.
• Education/tuition savings match or scholarship program for residents.
Additionally, the 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.
Unit Amenities
Unit amenities will include washers/dryers and ceiling fans.
Total development costs are estimated at approximately $151,711,324.00, including the land acquisition price. The construction budget is estimated at approximately $73,015,105.00, which is $202,819.73 per unit.
|
Proposed Financing Sources |
Amount |
|
Permanent Financing |
$ 63,440,000.00 |
|
Tax Credit Equity |
$ 59,742,781.00 |
|
Interim Income |
$ 4,426,511.00 |
|
Developer Fee |
$ 15,823,985.00 |
|
Bond Reinvestment Income |
$ 8,278,047.00 |
|
Total |
$151,711,324.00 |
|
Proposed Uses |
Amount |
|
Acquisition Cost |
$ 8,250,000.00 |
|
Building Costs & Site Work |
$ 73,015,105.00 |
|
General Requirements (<6%) |
$ 4,073,684.00 |
|
Contractor Overhead (<2%) |
$ 1,357,895.00 |
|
Contractor Profit (<6%) |
$ 4,073,684.00 |
|
HC Contingency |
$ 3,870,000.00 |
|
Taxable Loan Interest |
$ 15,411,164.00 |
|
Interim Escrowed Funds |
$ 1,462,543.00 |
|
Operating Reserve |
$ 3,531,251.00 |
|
Syndication Costs |
$ 355,111.00 |
|
Bond Interest |
$ 8,278,047.00 |
|
Real Estate and Mortgage Costs |
$ 1,999,435.00 |
|
Closing Costs |
$ 574,772.00 |
|
Cost of Issuance |
$ 682,914.00 |
|
Soft Cost |
$ 7,934,545.00 |
|
Developer Fee |
$ 16,841,174.00 |
|
Total |
$151,711,324.00 |
This Project helps ensure that individuals and families from diverse backgrounds have access to a safe, quality, and affordable place to live while fostering inclusivity and creating a better quality of life, contributing to the overall growth of the area.
To receive a staff recommendation for a RONO, the Applicant must satisfy all threshold requirements listed in the Dallas Housing Resource Catalog and affirmatively further fair housing. The fair housing rating is Low Positive.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On July 14, 2026 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 $80,000,000.00 to finance a loan to a limited liability or a limited partnership formed by Applicant to provide financing for West Davis Family Apartments 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 August 24, 2026. <https://dallascityhall.com/government/citymanager/Documents/Council%20Materials/I.%20DHFC%20LIHTC%20RONO.pdf>
The City Council was briefed by memorandum regarding this matter on September 3, 2026. <https://dallascityhall.com/government/citymanager/Documents/FY25-26%20Memos/September%209,%202026,%20Office%20of%20Housing%20and%20Community%20Empowerment%20City%20Council%20Agenda%20Items.pdf>
FISCAL INFORMATION
This action has no cost consideration to the City. Another item will come before the City Council for approval pursuant to the Tax Equity and Fiscal Responsibility Act of 1982. 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. For DHFC projects, the values are calculated by DHFC staff at this time. The property was previously tax-exempt, therefore there is no projected revenue foregone due to the partnership with DHFC.
|
Actual Taxes |
|
Current Year |
Year 15 |
Year 30 |
|
$0.00 |
$0.00 |
$0.00 |
MAP
Attached