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 Heights at UNT Station, LP, 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 Heights at UNT Station, located at 1021 East Wheatland Road, Dallas, Texas 75241 (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 Heights at UNT Station, 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 Heights at UNT Station, a 240-unit multifamily complex (Project) located at 1021 East Wheatland Road, Dallas, TX 75241 (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 Once a resolution is adopted and submitted to TDHCA, it cannot be changed or withdrawn.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 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 LDG The Heights at UNT Station, LP, 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, 240-unit multifamily development to include 24 one-bedroom, 96 two-bedroom, 108 three-bedroom, and 12 four-bedroom units and 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 $46,582,452.00 which is $194,093.55 per unit.
|
Proposed Financing Sources |
Amount |
|
Mortgage Loan |
$ 36,813,000.00 |
|
Tax Credit Equity |
$ 28,694,333.00 |
|
Deferred Developer Fee |
$ 6,832,284.00 |
|
Letter of Credit for ODR |
$ 1,265,109.00 |
|
Interim Income Lease Up (30%) |
$ 1,235,000.00 |
|
Bond Reinvestment Proceeds |
$ 747,000.00 |
|
Total |
$ 75,586,726.00 |
|
Proposed Uses |
Amount |
|
Acquisition Cost |
$ 3,800,000.00 |
|
Hard Construction Costs |
$ 46,582,452.00 |
|
Soft Construction Costs |
$ 9,778,000.00 |
|
Reserves |
$ 1,265,109.00 |
|
Professional Fees |
$ 3,439,911.00 |
|
Developer Fee |
$ 8,469,429.00 |
|
Costs of Issuance |
$ 1,667,816.00 |
|
Other Costs |
$ 584,009.00 |
|
Total |
$ 75,586,726.00 |
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 City Council was briefed by memorandum regarding this matter on February 7, 2025. <https://dallascityhall.com/government/citymanager/Documents/FY24-25%20Memos/Dallas%20Housing%20Finance%20Corporation.pdf>
FISCAL INFORMATION
No cost consideration to the City.
MAP
Attached