Tax Exempt Bond/ 4%Tax Credit Applications for 2008

A Briefing To The

Housing Committee

Housing DepartmentJune 2, 2008

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Key Focus Area: Economic VibrancyPurpose

Consideration of the City’s support of the Texas Department of Housing and Community Affairs’ (TDHCA) Tax-exempt Bond and 4% Tax Credit project applications for Village at Lakewest Apartments I & II, pursuant to Section 50.5 (7) (A-C), and 50.5 (8) (A-D) of the Qualified Allocation Plan for new construction

Dallas Housing Authority/Housing Options, Inc.

Both projects fit priority 3, special needs housing, which is new construction for Seniors

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Application Process

Applicants are required to submit a package along with an initial waiver fee of $500

DHA, Housing Options Inc., fees were waived April 23, 2008 Housing Committee briefed on pre-application waiver May 28, 2008 Council approved pre-application waiverJune 2, 2008 Housing Committee briefing, for those projects that were granted a pre-application waiver on April 23, 2008 June 11, 2008 Council consideration of the support of Tax-exempt Bond and 4% Tax Credits Support letters are sent to TDHCA

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Village at Lakewest Apartments I

Bickers St. @ Greenland St., Council District 3180 new construction units for elderly

180 one-bedroom 90 units for households at or below 50% area median family income (AMFI)90 units for households at or below 60% AMFI13 units or 7% designated for Persons with Disabilities Rents set at tax credit rents based on income levels

Applicant – Lakewest Senior Housing I, LPDHA Lakewest I, LLC, General Partner

LLC ownership –Lakewest Senior Housing, Inc (to-be-formed)Tax credit investor will be limited partner

Developer – GSL Development has developed 18 assisted living facilities with 1600 beds in North Texas Property Manager – TBD

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Village at Lakewest Apartments II

Morris Drive @ Fishtrap St., Council District 3180 new construction units for elderly

180 one-bedroom 90 units for households at or below 50% AMFI90 units for households at or below 60% AMFI13 units or 7% designated for Persons with Disabilities Rents set at tax credit rents based on income levels

Applicant – Lakewest Senior Housing II, LPDHA Lakewest II, LLC, General Partner

LLC ownership –Lakewest Senior Housing, Inc (to-be-formed)Tax credit investor will be limited partner

Developer – GSL Development has developed 18 assisted living facilities with 1600 beds in North Texas Property Manager – TBD

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Housing Committee Request

The following slides include pictures that are similar to what the Villages @ Lakewest Apartments will look like:

DHA does not have renderings of the units for the Villages at Lakewest I & II Common areas and dining rooms and a bath that is reflective of what will be built

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Office & Common Area

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Common Area

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Dinning

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Bathroom

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Map: Village at Lakewest Apartments I & II

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Site Plan: Village at Lakewest Apartments I & II

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Elevation Renderings

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Multipurpose Building Elevation

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Community Building Elevation

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Senior Floor Plan A

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Senior Floor Plan B

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Village at Lakewest Apts. I Sources and Uses

SOURCESMortgage Revenue Bonds $ 9,397,000Tax Credit Equity 4,808,049In-kind Equity/Deferred Developer Fee 1,982,315

TOTAL SOURCES $16,187,364

USES Land Acquisition Closing Costs $ 7,500Tax Credit Costs 46,606 Hard Construction Costs 9,065,000Other Direct Construction Costs 1,709,050Soft Costs 1,274,687Financing Costs 1,824,302Reserves 426,881Developer Fee 1,833,338

TOTAL USES $ 16,187,364

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Village at Lakewest Apts. II Sources and UsesSOURCESMortgage Revenue Bonds $ 9,397,000Tax Credit Equity 4,808,049In-kind Equity/Deferred Developer Fee 1,982,315

TOTAL SOURCES $16,187,364

USES Land Acquisition Closing Costs $ 7,500Tax Credit Costs 46,606 Hard Construction Costs 9,065,000Other Direct Construction Costs 1,709,050Soft Costs 1,274,687Financing Costs 1,824,302Reserves 426,881Developer Fee 1,833,338

TOTAL USES $16,187,364

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Recommendation

That the Housing Committee recommend City Council approval of the support for the Housing Options, Inc., Village at Lakewest Apartments I and II for Seniors pursuant to Section 50.5 (7) (A-C), and 50.5 (8) (A-D) of the Qualified Allocation Plan for new construction

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Next Steps

See Slide # 3