DEPARTMENT: Department of Planning and Community Development
DEPARTMENT HEAD: John M. Dugan
COUNCIL DISTRICTS IMPACTED: District 4
SUBJECT: Ordinance Authorizing San Antonio Housing Trust Finance Corporation to issue bonds to finance FREEDOM HILLS RANCH APARTMENTS.
SUMMARY:
An Ordinance authorizing the San Antonio Housing Trust Finance Corporation (SAHTFC) to issue up to $18,000,000 in its Multifamily Housing Revenue Bonds to finance a 252-unit multifamily (affordable) rental housing development located at 6010 Ray Ellison Drive in San Antonio, in Council District 4.
BACKGROUND INFORMATION:
Freedom Hills Ranch Apartments is an approximately $33.5 million multifamily rental housing development, located at 6010 Ray Ellison Drive, in Council District 4. This 252-unit low-income housing tax credit development will be restricted to households who earn at or below 60% of area median income (AMI). In addition to the $18 million in Bonds being approved, the Project will be financed with approximately $12.6 million of equity raised from the sale of housing tax credits. The City Council has previously approved a Resolution of No Objection for this development’s Texas Department of Housing and Community Affairs 4% Housing Tax Credit Application. In addition, the SAHTFC and the San Antonio Housing Trust Public Facility Corporation, whose Board members consist of San Antonio City Council members from Districts 1 through 5 have approved the Bonds and the transaction on Wednesday, February 24, 2016. No HOME or CDBG funds will be used for the Project.
The San Antonio Housing Trust Public Facility Corporation will own the land, will receive 25% of the developer fee and 90% of the cash flow from the project and will have a right to acquire the project at the end of the tax credit compliance period by assuming the outstanding debt.
ISSUE:
The San Antonio Housing Trust Finance Corporation (SAHTFC) proposes to issue $18 million in Multifamily Housing Revenue Bonds (Freedom Hills Ranch Apartments Project), Series 2016, to construct the Freedom Hills Ranch Apartments in Council District 4. All of the 252 units will be occupied by families who earn 60% or less of the median family income. The bonds will only be payable from the revenues of the project and will not be an obligation or debt of the City. Pursuant to the Articles of Incorporation of the SAHTFC, the City Council must approve the Bonds issued by SAHTFC. The San Antonio Housing Trust Public Facility Corporation has agreed to serve as the sole member of the General Partner of the Partnership in connection with the financing of the Project, acquire the Land and lease it to the Partnership pursuant to a Ground Lease, and serve as the general contractor for the Project. Michael Hogan is the project developer.
ALTERNATIVES:
City Council may elect not to provide authorization which would eliminate the ability of SAHTFC to proceed with the Project.
FISCAL IMPACT:
There is no impact to the City’s Budget.
RECOMMENDATION:
Staff recommends approval of the Ordinance authorizing the San Antonio Housing Finance Corporation to issue its Housing Revenue Bonds (Freedom Hills Ranch Apartments Project), Series 2016.