STRATEGIC PRIORITY: Housing & Homelessness Solutions
AGENDA DATE: June 12, 2024
COUNCIL DISTRICT(S): 4
DEPARTMENT: Department of Housing & Neighborhood Revitalization
EXECUTIVE: Robin Bentley
______________________________________________________________________
SUBJECT
Title
A public hearing to receive comments regarding an application by LDG The Legacy on Kiest, LP an affiliate of LDG Development, LLC (Applicant) to the Texas Department of Housing and Community Affairs (TDHCA) for 4% Non-Competitive Low Income Housing Tax Credits for the development of The Legacy on Kiest, a 180-unit multifamily development located at 2621 Southerland Avenue, Dallas, Texas 75203 (Property); and, at the close of the public hearing adopt a Resolution of No Objection for Applicant, related to its application to TDHCA for the development of The Legacy on Kiest, a multifamily development (Development), and in accordance with 10 TAC § 11.3(d) (the Administrative Code) and the Qualified Allocation Plan (QAP), specifically allow the construction of the Development, as required by the Administrative Code, because the Development is within one linear mile or less of Skyline at Cedar Crest (a recent 4% housing tax credit project located at 2720 East Kiest Boulevard, Dallas, Texas 75216), and is therefore subject to the One Mile Three Year Rule - Financing: No cost consideration to the City
Body
BACKGROUND
LDG The Legacy on Kiest, LP or its affiliate (Applicant), a to be formed Texas limited partnership, submitted a Request for Resolution application to the City for a Resolution of No Objection for its application to TDHCA for 2024 4% Non-Competitive Housing Tax Credits (4% Housing Tax Credits). The 4% Housing Tax Credits will be used for the development of The Legacy on Kiest, a 180 multifamily complex, located at 2720 East Kiest Boulevard, Dallas, Texas 75216 (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 provide a Resolution of No Objection 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 Once a resolution is adopted and submitted to TDHCA, it cannot be changed or withdrawn.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 consists of 180 multifamily residential units. The unit mix includes 36 one-bedroom units, 84 two-bedroom units, and 60 three-bedroom units. The units will be equipped with washer/dryer hook-ups, wiring for cable, Energy-Star rated dishwasher, Energy-Star rated refrigerator, Energy-Star rated lighting, oven, microwave, carpet, vinyl title, window blinds, 14 SEER HVAC, spacious floor plans, 9’ Ceilings, covered entries, and patios. The development will also have 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. The community will offer laptops to its residents for “check‐out” to do schoolwork, tax‐preparation, budgeting and/or life‐planning, or for simple everyday needs. The site is currently zoned MF-2(A) and will not require rezoning. The Applicant will also work with the Office of Integrated Public Safety Solutions for security input/upgrades, 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.
The Applicant proposes to provide on-site resident services including:
1. After school tutoring;
2. Financial literacy classes;
3. Food Pantry Services;
4. Annual Health Fair;
5. Annual Flu Shots;
6. Notary Services;
7. Recreational Activities;
8. Social Events.
Total development costs are estimated to be approximately $38,526,000.00, which includes the acquisition price for the land. The construction budget is estimated to be approximately $36,326,000.00 which is $201,811.11 per unit.
|
Proposed Financing Sources |
Amount |
|
Conventional Loan |
$22,690,000.00 |
|
LIHTC Syndication Proceeds |
$22,624,163.00 |
|
National Housing Trust Fund Funds |
$ 6,000,000.00 |
|
Deferred Developer Fee |
$ 3,788,635.00 |
|
Operating Deficit Reserves |
$ 605,266.00 |
|
Lease-Up Income |
$ 480,000.00 |
|
Bond Re-Investment Income |
$ 320,000.00 |
|
Total |
$56,508,064.00 |
|
|
|
|
Proposed Uses |
Amount |
|
Land Acquisition |
$ 2,200,000.00 |
|
Construction |
$36,326,000.00 |
|
Developer Fee |
$ 6,450,105.00 |
|
Other Fees |
$10,576,693.00 |
|
Reserves |
$ 605,266.00 |
|
Other Costs |
$ 350,000.00 |
|
Total |
$56,508,064.00 |
The current income restrictions will be maintained at the property to ensure no residents are displaced due to increased rents. The current rental restrictions are broken down as follows: 180 of the 180 units are reserved for households earning between 0%-60% of AMI.
The development is within one mile of Skyline at Cedar Crest, a recently awarded 4% housing tax credits (HTC) project located at 2720 East Kiest Boulevard, Dallas, Texas 75216. Per the requirements of TDHCA’s Qualified Action Plan and 10 TAC § 11.3(d), City Council must vote to specifically approved the construction of a new tax credit development within one linear mile of a tax credit development authorized within the past three years. The agenda item includes language acknowledging this proximity.
The City Council on May 9, 2018, adopted the Comprehensive Housing Policy (CHP), 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 through TDHCA. On June 12, 2019, Resolution No. 19-0884 authorized an amendment to the CHP to modify the evaluation criteria for developers requiring Resolutions of Support or No Objection for rental housing development seeking HTC through TDHCA. 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.
To receive a staff recommendation for a resolution of no objection, the applicant must satisfy all threshold requirements, rehabilitation requirements, and affirmatively further fair housing.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
The Housing and Homelessness Solutions Committee was briefed by memorandum on May 24, 2024. <https://cityofdallas.legistar.com/gateway.aspx?M=F&ID=baa2b288-456d-4b91-a19f-ad0cd6d2c7e6.pdf>
FISCAL INFORMATION
No cost consideration to the City.
MAP
Attached