STRATEGIC PRIORITY: Housing & Homelessness Solutions
AGENDA DATE: February 26, 2025
COUNCIL DISTRICT(S): 11
DEPARTMENT: Department of Housing and Community Development
EXECUTIVE: Robin Bentley
______________________________________________________________________
SUBJECT
Title
A public hearing to receive comments regarding an application by 13731 Goldmark Drive Owner LP, (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 Tuscany at Goldmark, a 184-unit multifamily residential rental development for persons of low and moderate income to be located at 13731 Goldmark Drive, Dallas, Texas 75240, and at the close of the public hearing, authorize a Resolution of No Objection for Applicant, related to its application to TDHCA for the acquisition and rehabilitation of Tuscany at Goldmark - Financing: No cost consideration to the City
Body
BACKGROUND
The applicant, 13731 Goldmark Drive (TX) Owner 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 acquisition and rehab of Tuscany at Goldmark, a 184-unit multifamily complex (Project) located at 13731 Goldmark Drive, Dallas, TX 75240 (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 Once a resolution is adopted and submitted to TDHCA, it cannot be changed or withdrawn.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 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/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 redevelop the Property. A to-be-formed single asset entity or its affiliate with the Dallas Housing Finance Corporation (DHFC) as 100% owner, will be the general partner. A to-be-formed limited liability company or its affiliate, 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 located on the Northwest corner of Midpark Road and Goldmark Drive in the northern portion of the City of Dallas. Under the current Land Use Restriction Agreement (LURA), it provides affordable housing to seniors. The current LURA is expiring in 2030. The Applicant proposes to extend the affordable period to 2055 if approved. The Project was built in 1997, consists of 184 units. The unit mix is composed of 60 one bedrooms and 124 two bedrooms. Upon completion of the development, it is anticipated that 92 of the 184 units are reserved for households earning between 0%-50% of Area Median Income (AMI), 46 of 184 units are reserved for households earning between 0%-60% of AMI, and 46 of the 184 units are reserved for households earning between 0%-80% of AMI.
The applicant proposes to acquire the property and renovate all 184 units. Residents will benefit from unit upgrades, improvements to common areas and amenities and enhanced resident services. The scope of the unit rehab will include appliance package, new countertops, new cabinets, new lighting, Heating, Ventilation, and Air Conditioning improvements and interior Furniture, Fixtures, and Equipment. Building and exterior rehab will include upgrades to the clubhouse, exterior Light Emitting Diode lighting, improved signage, parking lot repainting, sealing and striping. Resident amenities include shuttle services, pool, fitness center, clubhouse, library and other resident services.
Applicant proposes to perform resident-in-place unit renovations. If resident-in-place renovation are not possible, then relocation will be utilized. A draft relocation plan was submitted.
The Applicant will also work with the Office of Emergency Management & Crisis Response for security input/upgrades, community activities, and incorporate best practices of Crime Prevention Through Environmental Design (CPTED). 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 estimated to be approximately $49,016,610.00 which includes the acquisition price for the property. The construction budget is estimated to be approximately $17,514,752.08 which is $95,188.87 per unit.
|
Proposed Financing Sources |
Amount |
|
1st Lien |
$20,393,795.00 |
|
Soft Debt |
$ 4,576,158.00 |
|
Federal Equity (at $0.9) |
$17,118,819.00 |
|
GP Equity |
$ 100.00 |
|
Accrued Interest |
$ 356,559.00 |
|
Cash from Operations |
$ 1,936,867.00 |
|
Deferred Developer Fee |
$ 4,634,312.00 |
|
Total |
$49,016,610.00 |
|
Proposed Uses |
Amount |
|
Acquisition Cost |
$21,603,660.00 |
|
Construction Contract |
$11,803,420.00 |
|
Hard Costs Outside Contract |
$ 100,000.00 |
|
Hard Cost Contingency - 10% |
$ 1,163,680.00 |
|
Financing |
$ 5,603,462.00 |
|
Soft Costs |
$ 2,301,586.00 |
|
Reserves |
$ 1,291,455.00 |
|
Developer Fee |
$ 5,149,347.00 |
|
Total |
$49,016,610.00 |
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 $40,000,000.00 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 matter 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