STRATEGIC PRIORITY: Housing & Homelessness Solutions
AGENDA DATE: February 26, 2025
COUNCIL DISTRICT(S): 8
DEPARTMENT: Department of Housing and Community Development
EXECUTIVE: Robin Bentley
______________________________________________________________________
SUBJECT
Title
A public hearing to receive comments regarding an application by LDG The Gateway at Trinity Forest, LP, an affiliate of (Applicant) to the Texas Department of Housing and Community Affairs (TDHCA) for 4% Non-Competitive Low Income Housing Tax Credits (4% Housing Tax Credits) for The Gateway at Trinity Forest, a 300-unit multifamily residential rental development (Project) for persons of low and moderate income to be located at 2200 Dowdy Ferry Road, Dallas, Texas 75217 (Property); and, at the close of the public hearing, authorize a Resolution of No Objection for Applicant, related to its application to TDHCA for the development of the Project - Financing: No cost consideration to the City
Body
BACKGROUND
LDG The Gateway at Trinity Forest, LP, a Texas limited partnership (Applicant), submitted an application to the city of Dallas (City) for a Resolution of No Objection (RONO) for its application to 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 The Gateway at Trinity Forest, a 300-unit multifamily complex (Project) located at 2200 Dowdy Ferry Road, Dallas, TX 75217 (Property). A purchase and sale 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 comment on the proposed development. Once a resolution is adopted and submitted to TDHCA, it cannot be changed or withdrawn.
The Applicant, LDG The Gateway at Trinity Forest, LP, is proposing to develop the Property. A to-be-formed single asset entity or its affiliate with the DHFC as 100% owner, will be the general partner. A to-be-formed limited liability company or its affiliate with, a Texas limited liability company as 100% owner, will be the special limited partner. An amended and restated agreement of limited partnership will be executed to admit the tax credit equity investor as investor member once identified.
The Applicant proposes to develop a high quality, multifamily residential community comprised of 300 units, to include 36 one-bedroom, 120 two-bedroom, 132 three-bedroom, 12 four-bedroom units. 100% of the 300 units will be reserved for residents earning at 60% of the Area Median Income or below. These units will all be high-quality newly constructed units.
The plans include washer and dryer hook-ups, Energy-Star rated dishwasher and refrigerator, Energy-Star rated lighting, oven and microwave, carpet and vinyl tile, window blinds, Seasonal Energy Efficiency Rating equipped Heating, Ventilation, and Air Conditioning, spacious floor plans, 9’ ceilings, covered entries and patios, and community amenities such as controlled gate access, multipurpose community room, equipped business center, fitness center, swimming pool, theatre room, landscaped grounds with walking paths, children’s playscape, picnic area(s) with grill, gazebo area and full perimeter fencing. Planned resident services include after school tutoring, weekly financial literacy classes, and free annual flu shots.
Total development costs are estimated to be approximately $93,739,127.00 which includes the acquisition price for the land. The construction budget is estimated to be approximately $49,500,000.00 which is $165,000.00 per unit.
|
Proposed Financing Sources |
Amount |
|
Permanent Financing |
$ 46,022,000.00 |
|
Tax Credit Equity |
$ 36,269,784.00 |
|
Income During Lease Up |
$ 1,450,000.00 |
|
LC for ODR |
$ 1,139,940.00 |
|
Bond Proceeds |
$ 450,000.00 |
|
Deferred Developer Fee |
$ 8,407,403.00 |
|
Total |
$ 93,739,127.00 |
|
Proposed Uses |
Amount |
|
Acquisition Cost |
$ 4,500,000.00 |
|
Hard Construction Costs |
$ 59,869,152.00 |
|
Soft Construction Costs |
$ 10,533,000.00 |
|
Financing Costs |
$ 2,102,622.00 |
|
Professional Fees |
$ 4,267,546.00 |
|
Other Costs |
$ 621,465.00 |
|
Reserves |
$ 1,139,940.00 |
|
Developer Fee |
$ 10,705,402.00 |
|
Total |
$ 93,739,127.00 |
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 8, 2024, the DHFC Board of Directors adopted a preliminary inducement resolution declaring its intent to issue bonds in an aggregate principal amount not to exceed $50,000,000.00 for a loan to provide financing for the Project and authorized the filing of an application for allocation of private activity bonds with the Texas Bond Review Board.
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)
The Housing and Homelessness Solutions Committee was briefed by memorandum regarding this item on January 28, 2025. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=13698061&GUID=B5BB1301-54AB-473F-AAA8-289B5FE74186>
FISCAL INFORMATION
No cost consideration to the City.
MAP
Attached