DEPARTMENT: Department of Planning & Community Development
DEPARTMENT HEAD: Bridgett White
COUNCIL DISTRICTS IMPACTED: Council District 10
SUBJECT:
Approval of San Antonio Housing Trust Finance Corporation Multi-Family Housing Revenue Bonds for Oak Valley Apartments
SUMMARY:
The San Antonio Housing Trust Finance Corporation is seeking approval for the issuance of Multi-Family Housing Revenue Bonds for the development of Oak Valley Apartments in an amount not to exceed $22 million.
BACKGROUND INFORMATION:
The San Antonio Housing Trust Finance Corporation (SAHTFC) was formed by the San Antonio Housing Trust (SAHT) in 1997 under Chapter 394 of the Texas Housing Finance Act to be a financial pass-through facility to issue bonds for affordable single and multi-family housing. The board of the SAHTFC consists of five members of the San Antonio City Council. Additionally, the SAHTFC is administered by the SAHT. On March 8, 2017, the SAHTFC met and unanimously approved the resolution for the Series 2017 revenue bonds.
Oak Valley Apartments is a 192 unit rental housing development at 12613 Judson Road in Council District 10. All units will be restricted to 60% of area median income (e.g. a family of four will have a maximum income of $37,260). The value of the Texas Department of Housing and Community Affairs (TDHCA) tax credit award to Oak Valley Apartments is $10,855,000 with total development costs for the project at $36,567,858. Pedcor will be the Developer, a limited liability company created by the SAHTPFC will control the general partner of the Owner, and the SAHTPFC will serve as the general contractor.
City Council awarded $1.25 million in HOME Investment Partnership Program funds for this project through Ordinance 2017-02-23-0119. Additionally, City Council previously approved a Resolution of No Objection for this development’s application to the TDHCA for non-competitive (4%) housing tax credits through Resolution 2015-12-10-0066R.
ISSUE:
The San Antonio Housing Trust Finance Corporation proposes to issue its Multi-Family Housing Revenue Bonds to construct Oak Valley Apartments, a 192 unit low income housing tax credit project located at 12613 Judson Drive in Council District 10. All units will be restricted to 60% of area median income (e.g. a family of four will have a maximum income of $37,260). The bonds will only be payable from the revenues of the project and will not be an obligation or debt of the City. The value of the Texas Department of Housing and Community Affairs (TDHCA) tax credit award to Oak Valley Apartments is $10,855,000 with total development costs for the project at $36,567,858. Additionally, City Council has awarded $1.25 million in HOME Investment Partnership Program funds for this project through Ordinance 2017-02-23-0119.
ALTERNATIVES:
City Council may elect not to issue the multi-family revenue bonds which would not allow the development to proceed.
FISCAL IMPACT:
There is no fiscal impact associated with this item. The San Antonio Housing Trust Finance Corporation Multi-family Housing Revenue Bonds issued in an amount not to exceed $22 million to develop Oak Valley Apartments will only be payable from the revenues of the project and will not be an obligation or debt of the City.
RECOMMENDATION:
Staff recommends approval of an Ordinance authorizing the issuance of San Antonio Housing Trust Finance Corporation Multi-family Housing Revenue Bonds in an amount not to exceed $22 million to develop Oak Valley Apartments.