Agenda No. 9.
CITY COUNCIL MEMORANDUM
| City Council Meeting: | August 15, 2023 |
| Department: | Executive Team |
| Subject: | Resolution 23-R-82 - Approval of the issuance of bonds by the Texes Home Collaborative for the FM 1518 Multifamily Project. (S.Williams/B.James) |
BACKGROUND
The developer the 1518 Apartments that are currently in for site plan and plat approval, is partnering with the Schertz Housing Authority on the development of this project to construct an affordable apartment complex. That partnership came about as a result of direction from City Council in January of 2022 when the developer of the project, the NRP Group approached the City about creating a Housing Finance Corporation or a Public Facilities Corporation.
In October of 2022, City Council approved Resolution 22-R-119 authorizing a cooperative agreement with the Texas Home Collaborative for the Texas Home Collaborative to issue bonds to fund the project. In May of 2023, Council approved Resolution 23-R-38 authorizing the Schertz Housing Authority to submit a request to the U.S. Department of Housing and Urban Development (HUD) for the release of Project Based Voucher funds under Title V of the Quality Housing and Work Responsibility Act of 1998, as amended, to undertake the fm 1518 Apartment Project.
As part of the issuance of tax-exempt bonds to finance the project, one of the requirements is for a Tax Equity and Fiscal Responsibility Act (TEFRA) hearing and approval. A TEFRA hearing is a public hearing held by an issuer, following publication of a TEFRA notice, to give the public an opportunity to comment on a proposed private activity bond issue. Per the attached minutes, this hearing was held on August 1, and no commentary was received.
Following the TEFRA hearing, the Internal Revenue Code further requires approval of the TEFRA by the governmental unit in which the project will be located - in this case Schertz. Resolution 23-R-82 gives approval for the issuer to issue the bonds.
In October of 2022, City Council approved Resolution 22-R-119 authorizing a cooperative agreement with the Texas Home Collaborative for the Texas Home Collaborative to issue bonds to fund the project. In May of 2023, Council approved Resolution 23-R-38 authorizing the Schertz Housing Authority to submit a request to the U.S. Department of Housing and Urban Development (HUD) for the release of Project Based Voucher funds under Title V of the Quality Housing and Work Responsibility Act of 1998, as amended, to undertake the fm 1518 Apartment Project.
As part of the issuance of tax-exempt bonds to finance the project, one of the requirements is for a Tax Equity and Fiscal Responsibility Act (TEFRA) hearing and approval. A TEFRA hearing is a public hearing held by an issuer, following publication of a TEFRA notice, to give the public an opportunity to comment on a proposed private activity bond issue. Per the attached minutes, this hearing was held on August 1, and no commentary was received.
Following the TEFRA hearing, the Internal Revenue Code further requires approval of the TEFRA by the governmental unit in which the project will be located - in this case Schertz. Resolution 23-R-82 gives approval for the issuer to issue the bonds.
GOAL
Work in partnership with the Schertz Housing Authority to provide quality affordable housing in the community.
COMMUNITY BENEFIT
Development of this project would increase the supply of quality affordable housing in the community.
SUMMARY OF RECOMMENDED ACTION
Approval for the Texas Home Collaborative to issue the Bonds, the proceeds of which will be loaned to the Borrower to finance the costs of acquisition, construction and equipping the Project located at approximately 9120 FM 1518, Schertz, Texas 7815.
RECOMMENDATION
Approval of Resolution 23-R-82.