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 Legacy on Belt Line, an affiliate of LDG Development (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 Legacy on Belt Line, a 180-unit multifamily residential rental development for persons of low and moderate income to be located at 1275 South Belt Line Road, Dallas, Texas 75253 (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 Legacy on Belt Line - Financing: No cost consideration to the City
Body
BACKGROUND
LDG The Legacy on Belt Line Road, 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 Legacy on Belt Line Road, a 180-unit multifamily complex (Project) located at 1275 S Belt Line Road, Dallas, TX 75253 (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 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 comment on the proposed development. Once a resolution is adopted and submitted to TDHCA, it cannot be changed or withdrawn.
The Project is located one linear mile or less from a development that serves the same type of household Target Population as the proposed Project and has received an allocation of Low-Income Housing Tax Credits (or private activity bonds) for new construction in the three-year period preceding the date the Certificate of Reservation is issued (the One Mile Three Year Rule). Pursuant to 10 Tex. Admin. Code § 11.3(d), the City Council, as the governing body, must by vote specifically allow the construction of the Project and authorize an allocation of Housing Tax Credits for the Project. This Project is located in Council District 8, it is not a Racially/Ethnically Concentrated Area of Poverty (R/ECAP), and therefore a TDHCA waiver regarding the One Mile Three Year Rule is supported by City staff for the project location.
The Applicant 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 the Legacy on Belt Line, 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, 180-unit multifamily development to include 48 one-bedroom, 72 two-bedroom, and 60 three-bedroom units. 100% of which will serve residents at 60% Area Median Income (AMI) or below, in the southern sector of Dallas. Located in a dynamic area that combines urban convenience with the charm of community living, this property is close to shopping, dining, schools, and parks, ensuring future residents will have everything they need within easy reach and with excellent connectivity to major roadways.
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 $52,389,629.00 which includes the acquisition price for the land. The construction budget is estimated to be approximately $26,100,00.00 which is $145,000.00 per unit.
|
Proposed Financing Sources |
Amount |
|
Mortgage Loan |
$ 25,308,000.00 |
|
Tax Credit Equity |
$ 20,379,360.00 |
|
Deferred Developer Fee |
$ 5,020,917.00 |
|
LC for ODR |
$ 651,352.00 |
|
Interim Income Lease Up (30%) |
$ 730,000.00 |
|
Bond Reinvestment Proceeds |
$ 300.000.00 |
|
Total |
$ 52,389,629.00 |
|
Proposed Uses |
Amount |
|
Acquisition Cost |
$ 3,245,000.00 |
|
Hard Costs |
$ 26,100,000.00 |
|
Soft Costs |
$ 11,918,268.00 |
|
Professional Fees |
$ 2,578,556.00 |
|
Financing Costs |
$ 1,936,337.00 |
|
Reserves |
$ 651,352.00 |
|
Developer Fee |
$ 5,810,116.00 |
|
Other Costs |
$ 150,000.00 |
|
Total |
$ 52,389,629.00 |
On April 12, 2023, the City Council adopted the Dallas Housing Policy 2033 (DHP33) to 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 $35,000,000.00 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