PILLAR: Vibrant
AGENDA DATE: June 24, 2026
COUNCIL DISTRICT(S): 14
DEPARTMENT: Office of Housing and Community Empowerment
PRIORITY: N/A
______________________________________________________________________
SUBJECT
Title
Authorize the approval of the (1) City Council of the City of Dallas, to act as the applicable elected representative, as defined by Section 147(f)(2)(E) of the Internal Revenue Code of 1986, as amended (Code), of the issuance of multifamily residential mortgage revenue bonds (Bonds) issued by the City of Dallas Housing Finance Corporation (DHFC or Issuer) in one or more series of tax-exempt bonds in an amount not to exceed $75,000,000.00; proceeds of the bonds will be loaned to Fairfield Affordable Housing Fund Tranche XV LLC and/or its affiliate(s) (collectively referred to as “Borrower”) to finance a portion of the cost of the development of units for an affordable multifamily complex to be known as Hall Street Apartments located at 1823 North Hall Street, Dallas, Texas 75204 (Development); and (2) application of the Texas Housing Finance Corporations Act, Chapter 394, Local Government Code (Act), to the property on which the Development will be constructed and the use of proceeds of the Bonds issued by the DHFC pursuant to the Act to finance and construct the Development; a public hearing with respect to the Bonds and the Development was held on April 8, 2026 after reasonable public notice was published in a newspaper of general circulation in the city of Dallas all in compliance with Section 147(f) of the Code - Financing: No cost consideration to the City
*In alignment with Dallas Housing Resource Catalog.
Body
BACKGROUND
Fairfield Affordable Housing Fund Tranche XV LLC, and/or its affiliates(s), authorized to transact business in the state of Texas (collectively referred to as “Borrower”), has submitted to the Dallas Housing Finance Corporation (DHFC), a proposal for the development of Hall Street Apartments located at 1823 North Hall Street, Dallas, Texas 75204 (Development) and subsequently enter into a long-term lease for the Development. The Applicant proposes to develop a high quality, multifamily residential community comprised of 354 units, to include 72 one-bedrooms, 181 two-bedrooms and 101 three-bedrooms. Upon completion, the Development is anticipated to be entirely reserved for households earning at or below 60% of the Area Median Income (AMI).
Total development costs are estimated to be approximately $136,446,234.00, which includes the acquisition price for the land. The construction budget is estimated to be approximately $69,030,000.00, which is $195,000.00 per unit.
The Development amenities will include a washer and dryer, and ceiling fans. The Project offers a menu of community amenities such as a gated parking structure, pool, fitness center, clubroom, business center, sky lounger, barbeque grill stations, dog park and controlled access. Additionally, it will offer health and wellness programs, educational services, transportation assistance, financial counseling, community-building activities, access to food and nutrition programs, safety and security.
On March 10, 2026, the DHFC authorized a preliminary inducement resolution declaring intent to issue $75,000,000.00 in private activity bonds for a loan to Borrower to provide financing for the Development. The Borrower will submit an application for the allocation of $75,000,000.00 in private activity bonds to the Texas Bond Review Board (TBRB).
Since the Development is located within the city of Dallas, Section 147 (f) of the Internal Revenue Code requires that in order for the Bonds to be tax exempt, the City Council, the applicable elected representative of the City of Dallas, must approve the issuance of the bonds by the Issuer following a public hearing. The City of Dallas is not asked to issue bonds. The Bonds shall not be a debt, liability, or an obligation of the City nor shall any of the City’s assets be pledged for payment of the Bonds. The City’s name will not appear on the Bonds. The Bonds shall specifically provide that the Bonds are not a debt of the City of Dallas, Dallas County or the State of Texas and that the City of Dallas, Dallas County and State of Texas are not liable with respect to the Bonds. The City of Dallas is not responsible for the payment of the Bond obligations nor to fulfill DHFC’s authority under any documents related to the Development. The approval being requested is only for the purpose of complying with federal law and with regard to tax exempt debt.
The Tax Equity and Fiscal Responsibility Act (TEFRA) hearing notice was published in the Dallas Morning News on April 1, 2026. On April 8, 2026, the public hearing was held with no outside participants in attendance, and thus, no comments made. Under applicable federal income tax law, the TEFRA approval may only be valid for a one-year term.
The Texas Housing Finance Corporations Act, Chapter 394 of the Texas Local Government Code requires that the City of Dallas approve the issuance of bonds by the DHFC and their use to finance the construction and development of affordable housing.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On March 10, 2026, the DHFC authorized a preliminary inducement resolution declaring intent to issue $75,000,000.00 in private activity bonds for a loan to Borrower to provide financing for the Development.
The Housing and Homelessness Solutions Committee was briefed by memorandum regarding matter on May 26, 2026. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=15501105&GUID=5E2A174E-BA6F-4CD4-994F-6B53BB7CAFD6>
FISCAL INFORMATION
No cost consideration to the City.
MAP
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