STRATEGIC PRIORITY: Housing & Homelessness Solutions
AGENDA DATE: February 26, 2025
COUNCIL DISTRICT(S): 5
DEPARTMENT: Department of Housing and Community Development
EXECUTIVE: Robin Bentley
______________________________________________________________________
SUBJECT
Title
A public hearing to receive comments regarding an application by Palladium Buckner Station, Ltd., an affiliate of Palladium USA, Inc. (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 Palladium Buckner Station, a 304-unit multifamily residential rental development for persons of low and moderate income to be located at 8008 Elam Road, Dallas, Texas 75217 (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 Palladium Buckner Station - Financing: No cost consideration to the City
Body
BACKGROUND
Palladium Buckner Station, Ltd., 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 Palladium Buckner Terrace, a 304-unit multifamily complex (Project) located at 8008 Elam Road, Dallas, TX 75217 (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 Once a resolution is adopted and submitted to TDHCA, it cannot be changed or withdrawn.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 Palladium Buckner Station, Ltd., 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 Project is a new development/new construction of 304-unit multifamily development to include 90 one-bedroom, 147 two-bedroom, and 67 three -bedroom units and will serve residents at 60% Area Median Income (AMI) or below. It will include community amenities consistent with TDHCA's required features. Upon completion of the development, it is anticipated that 244 units (80%) will be reserved for households earning between 0%-60% of AMI and 60 (20%) will be reserved for Market Rate units. Among the 244 units, 83 units be one-bedroom, 120 units will be two-bedroom, and 41 units will be three-bedroom. The unit amenities will 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, 14 Seasonal Energy Efficiency Rating equipped Heating, Ventilation, and Air Conditioning, spacious floor plans, 9’ ceilings, covered entries, and patios.
Total development costs are estimated to be approximately $97,790,149.00 which includes the acquisition price for the land. The construction budget is estimated to be approximately $55,065,625.00 which is $181,136.92 per unit.
|
Proposed Financing Sources |
Amount |
|
Permanent Financing |
$ 46,973,396.000 |
|
Tax Credit Equity |
$ 31,411,995.00 |
|
Economic Development |
$ 11,000,000.00 |
|
Deferred Developer Fee (Palladium) |
$ 5,883,331.00 |
|
Deferred Developer Fee (HFC GP) |
$ 2,521,427.00 |
|
Total |
$ 97,790,149.00 |
|
Proposed Uses |
Amount |
|
Acquisition Cost |
$ 3,090,000.00 |
|
Construction Contract |
$ 64,974,087.00 |
|
Construction Fees |
$ 1,445,000.00 |
|
Soft Costs |
$ 1,987,086.00 |
|
Financing Fees |
$ 10,461,378.00 |
|
Developer Fees |
$ 11,574,421.00 |
|
Reserves |
$ 4,258,177.00 |
|
Total |
$ 97,790,149.00 |
The current income restrictions will be maintained at the property to ensure no residents are displaced due to increased rents.
The Applicant proposes to develop a Transit-Oriented development developed in conjunction with Dallas Area Rapid Transit. Two of the buildings will be 4-story with elevators and the other building will consist of 2-story residential units. An application is in process to rezone the development site. Community amenities will include a playground, business center, conference room, electric vehicle charging station, club house, resort-style pool, fitness center, dog run, cabana with grill, fire pit, children’s playroom, sports court, fob accessed doors, and a courtesy police office on-site. Along with clubhouse space and outdoor amenity areas, there will be two separate 3-story garages.
On April 12, 2023, the City Council adopted the Dallas Housing Policy 2033 (DHP33) 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 $50,000,000.00 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.
The Project is located in a Dallas Opportunity Zone and the Developer is seeking further support from Economic Development. 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