STRATEGIC PRIORITY: Housing & Homelessness Solutions
AGENDA DATE: February 12, 2025
COUNCIL DISTRICT(S): 5
DEPARTMENT: Department of Housing and Community Development
EXECUTIVE: Robin Bentley
______________________________________________________________________
SUBJECT
Title
Authorize (1) the adoption of a Resolution of Support for Pivotal Development LLC and/or its affiliate(s) (collectively referred to as Applicant), related to its application to the Texas Department of Housing and Community Affairs for 9% Competitive Low Income Housing Tax Credits for the development Reserve at Elam to be located at 9129 Elam Road, Dallas, Texas 75217; and (2) an agreement with the Applicant for a line of credit in the amount of $500.00 for the Project proposed multifamily 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 (TDHCA) for 2025 9% Competitive Low Income Competitive Housing Tax Credits (9% LIHTC) for the development of Reserve at Elam, a ground-up development of a 96-unit mixed-income multifamily complex located at 9129 Elam Road, Dallas, Texas 75217 (“Project”). The Applicant has executed purchase agreements with three parties for five parcels of land for the development: Brenda Joyce Johnson and Cynthia Kaye Nolen, as Trustees for The Roy Virgil Lawver and Lurlene Ovena Lawver Revocable Living Trust, Tsou Shengyung, and Kent Carter, an individual ("KC"), and Casas Realidad, L.P., a Texas limited partnership. The Applicant may transfer the purchase contract to an affiliate.
In the administration of its 9% LIHTC 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 aApplication or dDevelopment; 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 aApplication or dDevelopment.
Reserve at Elam LLC, a to-be-formed Texas Limited Liability Company, will be the ownership entity. The Applicant is an Ohio based developer, owner, and asset manager of Class A multi-family assets located throughout 15 states. The Applicant has been involved in the development, construction, and management of over 6,000 units. Pivotal Development LLC specializes in the development, construction, management, and ownership of high-quality apartment home communities spanning 99 affordable housing properties in 15 states.
The Applicant proposes to develop 96 units, to include 30 one-bedroom, 42 two-bedroom, and 24 three-bedroom units. The proposed development, Reserve at Elam, is new construction of workforce housing in a garden-style walk-up apartment building. The Reserve at Elam will consist of 10 units available to households earning 0.00%-30.00% of Area Median Income (AMI), 17 units for households earning between 31.00%-50.00% of AMI, 54 units for households earning between 51-60% and 32 of the 15 units being non-income-restricted. Additionally, this development will include the following unique features: incorporation of ride-share parking spots targeted explicitly for the use of Uber, Lyft, and other ride-sharing services (including food delivery services such as Doordash, UberEats, and Grubhub) as well as the creation of a "Learning Center" space in the clubhouse that will be utilized for collaborating with local organizations for programming above and beyond the typical services required by TDHCA for all housing tax credit developments.
The 7.5-acre site comprised of five parcels is located at 9129 Elam Road, Dallas, Texas 75217. The site has access to services and transportation within close proximity. The nearest transit stop at Buckner and Elam, is just over a mile away. Additionally, there is a public park, Crawford Memorial Park, and healthcare facility, Southeast Dallas Health Center, within 1/4 a mile from the development. There is a daycare within 1/2 a mile radius of the development, and Prairie Creek Branch Library is withing a one-mile radius of the development. The nearest grocery stores are less than two miles from the development.
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 $28,269,843.00, which includes the acquisition price for the land. The hard cost construction budget is anticipated to be $13,894,737.00 which is $144,736.84 per unit. The total construction amount includes a 5.00% contingency.
|
Proposed Financing Sources |
Amount |
|
Conventional Loan/FHA |
$ 9,750,000.00 |
|
LIHTC Syndication Proceeds |
$ 17,598,240.00 |
|
Deferred Developer Fee |
$ 921,603.00 |
|
Total |
$ 28,269,843.00 |
|
Proposed Uses |
Costs |
|
Land Acquisition |
$ 3,500,000.00 |
|
Hard Construction Cost |
$13,894,737.00 |
|
Soft Costs & Financing Fees |
$ 4,408,130.00 |
|
Developer Fees |
$ 6,466,976.00 |
|
Total |
$28,269,843.00 |
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 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; or
§ The applicant intends to partner with the Dallas Housing Finance Corporation or Public Facility Corporation; or
§ 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; or
§ The project is located in a census tract with a poverty rate below 20.00%; or
§ The project located within a designated Equity Strategy Target Area in the DHP33; or
§ 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 market value analysis market type is ‘H’, which is 69% owner-occupied housing. The nearest multifamily development is within a mile radius of the property and also in a market type “H”. The Project is qualified to receive a staff recommendation for a resolution of support as it scored 50.5 points.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
The Housing and Homelessness Solutions 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
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