STRATEGIC PRIORITY: Housing & Homelessness Solutions
AGENDA DATE: February 12, 2025
COUNCIL DISTRICT(S): 3
DEPARTMENT: Department of Housing and Community Development
EXECUTIVE: Robin Bentley
______________________________________________________________________
SUBJECT
Title
Authorize (1) the adoption of a Resolution of Support for Sphinx Development Corporation and/or its affiliate(s) (Applicant), related to its application to the Texas Department of Housing and Community Affairs (TDHCA) for 9% Housing Tax Credits for the development Eagle Ford Townhomes to be located at 6000 Eagle Ford Drive, Dallas, Texas 75249; and (2) an agreement with the Applicant for a line of credit in the amount of $500.00 for the proposed multifamily, mixed use development - Not to exceed $500.00 - Financing: General Fund
Body
BACKGROUND
The Applicant submitted a pre-application to the Texas Department of Housing and Community Affairs for 2025 9% Low Income Competitive Housing Tax Credits (9% HTC) for the development of Eagle Ford Townhomes, a ground-up development of a 90-unit mixed-income, multifamily complex located at 6000 Eagle Ford Drive, Dallas, Texas 75249. The Applicant has executed a purchase agreement with Zena LWT LP, the current property owner. The Applicant may transfer the purchase contract to an affiliate.
In the administration of its 9% HTC Program, TDHCA awards application points for a resolution from a governing body of a local municipality on the following basis:
Within a municipality, the application will receive:
§ 17 points for a resolution from the governing body of that municipality expressly setting forth that the municipality supports (Resolution of Support) the application or development; or
§ 14 points for a resolution from the governing body of that municipality expressly setting forth that the municipality has no objection (Resolution of No Objection) to the application or development; and
§ 1 point for a commitment of development funding by a local political subdivision in the form of a loan, grant, reduced fees, or contribution of value that equals $500.00 or more for applications in urban subregions.
Within the extraterritorial jurisdiction of a municipality, the Application may receive:
§ 8.5 points for a resolution from the governing body of that municipality expressly setting forth that the municipality supports (Resolution of Support) the Application or Development; or
§ 7 points for a resolution from the governing body of that municipality expressly setting forth that the municipality has no objection (Resolution of No Objection) to the Application or Development.
Eagle Ford Development, LLC, an affiliate of Sphinx Development Corporation, is a to-be-formed Texas limited partnership, will be the ownership entity. The Applicant is a Dallas, Texas-based developer and asset manager of Class A multi-family assets located throughout the southwest. Additionally, Sphinx Development also develops senior housing, affordable housing as their construction, and management company are committed to creating and preserving affordable housing opportunities.
The Applicant proposes to develop a 90-unit, new construction, mixed use multifamily development to include, 81 rent restricted units and 9 market rate units comprised of 72 two-bedroom and 18 three-bedroom units. Units will be one and two-story unit options to include two-bedroom/two bathrooms and three-bedroom/two bathrooms. Planned unit amenities include energy efficient appliances, lighting, and other TDHCA-required features. Property amenities include fitness center, children’s playscape, community rooms, business center, walking/jogging path, BBQ grills and picnic tables, and a dog park. Targeted resident services include literacy classes, health and community services, social events/activities, and supportive staff onsite along with other resident services. The development is located less than one mile of high frequency transit, Mountain Creek Library, Walmart and less than a half mile from Big Cedar Wilderness trail. Other adjacent amenities include Fox Hollow Park one mile away and childcare services less than two miles away.
If awarded tax credits by TDHCA, Applicant will work with the Office of Emergency Management and Crisis Response throughout the planning and design process for security input, 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.
Total development costs are anticipated to be approximately $31,697,947.00, which includes the acquisition price for the land. The hard cost construction budget is anticipated to be $19,636,560.00 which is $218,184.00 per unit. The total construction amount includes a 5.00% contingency.
|
Proposed Financing Sources |
Amount |
|
Conventional Loan/FHA |
$ 9,930,000.00 |
|
City of Dallas NOFA |
$ 2,500,000.00 |
|
Tax Equity Credit |
$17,498,250.00 |
|
Deferred Developer Fee |
$ 1,769,697.00 |
|
Total |
$31,697,947.00 |
|
Proposed Uses |
Costs |
|
Land Acquisition |
$ 2,200,000.00 |
|
Hard Construction Cost and Contractor Fees |
$19,636,271.00 |
|
Soft Costs & Financing Fees |
$ 5,828,615.00 |
|
Developer Fees |
$ 3,617,763.00 |
|
Reserves |
$ 415,298.00 |
|
Total |
$31,697,947.00 |
Upon completion of the development, 9 of the 90 units will be made available to households earning 0.00%-30.00% of Area Median Income (AMI), 33 of the 90 units will be made available to households earning between 31.00%-50.00% of AMI, and 39 of the 90 units will be made available to households earning between 51.00%-60.00% of AMI,. Nine units will remain as non-income-restricted market-rate units.
The evaluation criteria for 9% HTC applications seeking a Resolution of Support also requires applications meet a priority housing need of the City. The applications must meet at least one of the following six priorities:
§ The project has been selected to receive City funding such as Community Development Block Grants, Home Investment Partnerships Program, or General Obligation Bond funding;
§ The applicant intends to partner with the Dallas Housing Finance Corporation or Public Facility Corporation,
§ The proposal involves the redevelopment of public housing owned by the Dallas Housing Authority under the Choice Neighborhoods, Rental Assistance Demonstration, HOPE IV, or other similar HUD programs that may be created;
§ The project is located in a census tract with a poverty rate below 20.00%;
§ The project located within a designated Equity Strategy Target Area in the DHP33; and
§ A 50-unit project dedicating 20.00% of the units for tenants referred from the Continuum of Care list.
Applications that do not qualify as a priority housing need must score at least 50 points based on if the proposed project is mixed income, includes a non-profit or historically underutilized business, its proximity of amenities to the development site, and resident services to be provided.
The Project is qualified to receive a staff recommendation for a resolution of support as it scored 51.5 points and is a priority housing need development and is located in a census tract with a poverty rate below 20.00% (3.1%) and met the required application thresholds. The proposed development is located in a Market Value Analysis market type is ‘E.’
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On May 9, 2018, the City Council adopted the Comprehensive Housing Policy (CHP), as restated in the Dallas Housing Policy 2033 (DHP33) and Dallas Housing Resource Catalog (DHRC), 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 through TDHCA.
On June 12, 2019, the City Council authorized an amendment to the CHP, as restated in the DHP33 and DHRC, to modify the evaluation criteria for developers requiring Resolutions of Support or No Objection for rental housing development seeking HTC through TDHCA by Resolution No. 19-0884. The modified evaluation criteria include standard thresholds for both 4.00% and 9% HTC applications such as evidence of site control, TDHCA minimum site standards, affirmatively further fair housing, and other requirements.
The Housing and Homelessness Solutions Committee was briefed by memorandum regarding this matter on January 28, 2025. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=13697995&GUID=96DF26DC-21E2-4141-B9B6-DF2522C3E6AA>
FISCAL INFORMATION
|
Fund |
FY 2025 |
FY 2026 |
Future Years |
|
General Fund |
$500.00 |
$0.00 |
$0.00 |
MAP
Attached