STRATEGIC PRIORITY: Housing & Homelessness Solutions
AGENDA DATE: October 23, 2024
COUNCIL DISTRICT(S): 7
DEPARTMENT: Department of Housing and Community Development
EXECUTIVE: Robin Bentley
______________________________________________________________________
SUBJECT
Title
A public hearing to receive comments regarding an application by The Culbreath, LP or its affiliate, DHA Housing Solutions for North Texas (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 The Culbreath located at 2770 Bethurum Avenue, Dallas, TX 75215; 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 Culbreath - Financing: No cost consideration to the City (This item was deferred on September 25, 2024)
Body
BACKGROUND
The Culbreath, LP (Applicant), 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 Credit (HTC). The 4% HTC’s will be used for the development of The Culbreath, a 364-unit complex serving seniors aged 62 and older, located at 2770 Bethurum Avenue, Dallas, TX 75215 (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% HTC 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 Once a resolution is adopted and submitted to TDHCA, it cannot be changed or withdrawn.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 site consists of two newly constructed wood frame U-shaped four-story elevator structures with brick and wood exteriors. The development will offer an array of amenities and common spaces including, greenspace in two courtyards, a swimming pool, a fitness center, a business center, a multipurpose room, Wi-Fi throughout the building, a library, two dog parks, a pickle ball court, a community room with kitchen, secure entries, and video surveillance. Additionally, the property will be built to Enterprise Green Communities standards which include the following items:
Solar panel system, high SEER heating, ventilation, and air conditioning (HVAC) systems, air barrier at building envelope, energy efficient windows, low-flow shower heads and toilets, energy efficient appliances, energy star rated light fixtures, and (Light Emitting Diodes (LED)) lighting, occupancy sensors, daylight sensors, and timers. The project will also include a designated on-site Resident Coordinator to provide enhanced service and help access services available to the community as well as design programs/services to meet the needs and desires of the property’s residents.
Unit amenities for each apartment will include a central HVAC system, nine-foot storage room/closet, walk-in closets, mini blinds, vinyl plank flooring, refrigerator with ice maker, self-cleaning oven, dishwasher, disposal, microwave oven, ceiling fan, and in-unit washer and dryer. Additional features will include taller seat toilet height for full accessibility and grab bars and blocking.
Total construction costs are estimated to be approximately $53,684,212.00 which is $147,484.10 per unit.
|
Proposed Financing Sources |
Amount |
|
Conventional Loan |
$34,486,000.00 |
|
LIHTC Equity |
$33,747,595.00 |
|
Reinvestment of Bond Proceeds |
$ 6,367,556.00 |
|
Local Government Loan |
$ 6,000,000.00 |
|
City of Dallas Funds |
$ 6,000,000.00 |
|
Private Grant |
$ 1,100,000.00 |
|
Private Loan |
$ 1,000,000.00 |
|
Return of Good Faith Deposit - Freddie TEL |
$ 689,720.00 |
|
Deferred Developer Fee |
$ 506,629.00 |
|
Total |
$89,897,500.00 |
|
Proposed Financing Uses |
Amount |
|
Construction |
$53,684,212.00 |
|
Financing Fees |
$18,684,968.00 |
|
Developer Fee |
$10,671,782.00 |
|
Reserves |
$ 2,748,703.00 |
|
Architectural/Engineering |
$ 1,600,000.00 |
|
Marketing/Lease Up/FF&E/Grad Opening |
$ 991,000.00 |
|
Legal/Accounting/Insurance |
$ 715,000.00 |
|
Wi-Fi/Dallas Inspections/Soft Contingency |
$ 381,635.00 |
|
Builders Risk |
$ 275,000.00 |
|
Permits/Fees/Survey |
$ 113,200.00 |
|
Third Party Report |
$ 32,000.00 |
|
Total |
$89,897,500.00 |
The current rental restrictions are broken down as follows: 327 of the 364 units are reserved for households earning between 51%-60% of Area Median Income and 37 of the units will be public housing units eligible to receive ongoing operating subsidy.
The Development is located within a census tract with 20% HTC Units per total households. Per the requirements of TDHCA’s Qualified Action Plan and 10 TAC §11.3(e) and §11.4(c)(1), City Council must specifically approve the construction of a new tax credit development in such a census tract and that the proposed Development is consistent with the city’s obligation to affirmatively further fair housing. The agenda item includes language acknowledging this requirement.
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 HTC’s 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. The Development has been found to affirmatively further fair housing by the Fair Housing Division. After review, the Applicant has satisfied all application requirements and staff recommends a resolution of no objection.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
The Housing and Homelessness Solutions Committee was briefed by memorandum regarding this item on August 26, 2024. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=13247978&GUID=1E0C6CAE-5816-4E2B-B7C5-09E0A0602E46>
On September 25, 2024, this item was held under advisement by Deputy Mayor Pro Tem Adam Bazaldua.
FISCAL INFORMATION
No cost consideration to the City.
MAP
Attached