STRATEGIC PRIORITY: Housing & Homelessness Solutions
AGENDA DATE: February 22, 2023
COUNCIL DISTRICT(S): 11
DEPARTMENT: Department of Housing & Neighborhood Revitalization
EXECUTIVE: Majed Al-Ghafry
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SUBJECT
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Authorize the Dallas Housing Finance Corporation to acquire and own Muse at Midtown, a multifamily development located at 13675 Noel Road - Estimated Revenue Foregone: General Funds $12,206,541.58 (15 Years of Estimated Taxes)
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BACKGROUND
Opportunity Housing Group, Inc. (Applicant), submitted an application to the Dallas Housing Finance Corporation (Corporation) to acquire, develop, and own Muse at Midtown, a 289-unit multifamily development located at 13675 Noel Road (Project). The Corporation will own the site and improvements while contracting with the Applicant who will act as the Project Administrator. Pursuant to the Texas Housing Finance Corporation Act, Chapter 394 of the Texas Local Government Code (Act), a Housing Finance Corporation 1) may issue bonds to acquire affordable housing and 2) any residential property owned by a Housing Finance Corporation is exempt from all ad valorem taxes. As with all bonds issued by the Corporation, they are non-recourse to both the City and the Corporation. They are not liabilities of the City and are repaid solely through the revenues of the Project.
The Project is currently market rate/non-income restricted. However, upon acquisition by the Corporation, at least 50.00% of the units will be reserved for residents earning below 80.00% Area Median Income (AMI), 40.00% of the units will be reserved for residents earning between 80.00%-140.00% AMI, and 10.00% of the units will be market rate.
The owner of the project will be Muse at Midtown, LLC, a limited liability company having the Corporation as its sole owner. Opportunity Housing Group, Inc., a corporation authorized to do business in Texas, is a real estate development firm t...
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