DEPARTMENT: Department of Planning & Community Development
DEPARTMENT HEAD: Bridgett White
COUNCIL DISTRICTS IMPACTED: Council District 7
SUBJECT:
Approval of San Antonio Housing Trust Finance Corporation Multifamily Housing Revenue Bonds for Trails at Leon Creek Apartments
SUMMARY:
The San Antonio Housing Trust Finance Corporation is seeking approval for the issuance of Multifamily Housing Revenue Bonds for the development of Trails at Leon Creek Apartments in an amount not to exceed $39 million with final terms and documents to be approved hereafter by the San Antonio Housing Trust Public Facility Corporation (SAHTPFC).
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: City Council Members from Districts 1, 2, 3, 4 and 5. Additionally, the SAHTFC is administered by the SAHT.
The San Antonio Housing Trust Public Facility Corporation owns the real estate and controls the general partner in the partnership.
Trails at Leon Creek Apartments is a proposed 344-unit rental housing development at 7615 East Bandera Road in Council District 7. All units would be restricted to 60% of area median income (e.g. a family of four will have a maximum income of $38,100). The value of the Texas Department of Housing and Community Affairs (TDHCA) tax credit award to Trails at Leon Creek is $20.7 million with total development costs for the project at $68.9 million. Pedcor is 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.
On January 19, 2017, 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 2017-01-19-0003R.
This item is being considered by the San Antonio Housing Trust Public Facility Corporation on Tuesday, June 27.
ISSUE:
The San Antonio Housing Trust Finance Corporation proposes to issue $39 million in Multifamily Housing Revenue Bonds to help finance the construction of Trails at Leon Creek Apartments, a 344-unit low income housing tax credit project located at 7615 Bandera Road in Council District 7. All units will be restricted to 60% of area median income (e.g. a family of four will have a maximum income of $38,100). 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 Trails at Leon Creek is $20.7 million with total development costs for the project at $68.9 million.
Approval of the issuance of multifamily revenue bonds is contingent upon approval by the San Antonio Housing Trust Finance Corporation (SAHTFC) at its scheduled meeting on Tuesday, June 27.
Final terms and documents for this project need to be approved hereafter by the San Antonio Housing Trust Public Facility Corporation (SAHTPFC).
City staff will continue its negotiations with the applicant, Pedcor, to improve the development proposal, ensuring additional amenities related to the following:
1. Sustainability/Green Building;
2. Resident Safety;
3. Transportation/Resident Supportive Services; and,
4. Mixed-Use Development
Final approval of the development proposal is contingent on mutual agreement to such amenities by both the applicant and the City. A draft working copy of initial desired project features is attached.
ALTERNATIVES:
City Council may elect not to issue the multifamily revenue bonds which would not allow the development to proceed.
FISCAL IMPACT:
The San Antonio Housing Trust Finance Corporation Multifamily Housing Revenue Bonds issued in an amount not to exceed $39 million to develop Trails at Leon Creek 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 Multifamily Housing Revenue Bonds in an amount not to exceed $39 million to develop Trails at Leon Creek Apartments.