STRATEGIC PRIORITY: Housing & Homelessness Solutions
AGENDA DATE: November 13, 2024
COUNCIL DISTRICT(S): 14
DEPARTMENT: Department of Housing and Community Development
EXECUTIVE: Robin Bentley
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SUBJECT
Title
Authorize the Dallas Housing Finance Corporation to acquire and own 2929 Wycliff, a multifamily development located at 2929 Wycliff Avenue, Dallas, TX 75219 - Estimated Revenue Foregone: General Fund $4,701,303.00 (15 Years of Estimated Taxes)
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BACKGROUND
CAF Capital Partners, LLC ("Applicant"), submitted an application to the Dallas Housing Finance Corporation ("DHFC") to acquire, develop, and own 2929 Wycliff, a 284-unit multifamily development, located at 2929 Wycliff Avenue, Dallas, TX 75219 ("Project"). The DHFC will own the site and improvements while contracting with the Applicant who will act as the Project Administrator. The property is being purchased for $63,900,000.00. This is a conventional purchase with private financing using loan proceeds and equity sourced by the Applicant. Neither the City nor the DHFC will fund any portion of the purchase.
Pursuant to the Texas Housing Finance Corporation Act, Chapter 394 of the Texas Local Government Code ("Act"), any residential property owned by a Housing Finance Corporation is exempt from all ad valorem taxes.
The Project is currently market rate/non-income restricted. However, upon acquisition by the DHFC, at least 10% of the units will be reserved for residents earning 60% Area Median Income (AMI), 40% of the units will be reserved for residents earning 80% AMI, 40% of the units will be reserved for residents earning 140% AMI, and 10% of the units will be market rate.
The owner of the project will be DHFC 2929 Wycliff GP, LLC, a limited liability company having the DHFC as its sole owner. The Applicant is a private equity real estate firm, specializing in the acquisition, redevelopment, re-positioning, and subsequent s...
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