Consider and take appropriate action to approve resolutions authorizing and Amended and Restated Memorandum of Understanding related to the Corporation’s participation in the 7333 Bluff Springs Apartments development; approval of the underwriting assessment; and other related matters. (Commissioner Gómez)

Staff Report & Agenda Item Details

A board meeting to consider the approval of resolutions related to 7333 Bluff Springs Apartments is scheduled for Tuesday, May 19. Attached hereto as backup are the draft resolutions that are proposed for your approval. The primary purpose of the proposed resolutions is to consider and approve the underwriting assessment, detailed below, and the Amended and Restated Memorandum of Understanding related to the Apartments. <br><br data-pasted="true">The Board of Directors of the Corporation and TCC have previously considered resolutions on July 16, 2025 related to this proposed transaction, which would be a workforce housing deal with RPM Living Development, LLC (“RPM”), and does not involve the issuance of bonds or tax credits. The proposed arrangement would be a partnership transaction where the Corporation and TCC would participate in the development primarily in order to obtain an ad valorem tax exemption for the development in exchange for the public benefits described below, as well as various fees in order to further the statutory mission of the Corporation to help obtain additional decent, safe, and sanitary housing for the residents of Travis County at affordable prices. <br><br>The project consists of the construction, equipping, and operation of an approximately 283-unit development located at 7333 Bluff Springs Road; Austin, Travis County, Texas 78744 and 2100 Patsy Parkway; Austin, Travis County, Texas 78744, or adjacent thereto, to be known as “7333 Bluff Springs”. At least 50% of the units will be available for families earning less than 60% of the area median income and 40% of the units available for families earning less than 120% AMI. Rent charged will not exceed 30% of the applicable AMI, provided that the rent charged will not exceed 80% of market rental rates for units with the same number of bedrooms.<br><br>A detailed underwriting assessment prepared by First Housing Development Corporation of Florida and reviewed by the Corporation’s financial analysts, Hilltop Securities, is included as additional back-up for the Board’s consideration. Generally, this underwriting assessment meets the requirements in HB 21 (now codified in Chapter 394, Texas Local Government Code), and confirms that, among other things, based on the projections contained in the report, the rent reduction at the Apartments would not be less than 50% of the amount of the estimated ad valorem taxes if there was not an abatement. In reaching this conclusion, First Housing noted that “in order to achieve a rent reduction of at least 50% of the abated ad valorem taxes, First Housing is projecting that a 20% discount to market on the 60% AMI units will need to be charged.” <br>RPM has also agreed to the following public benefits, among others: (1) the income-restricted units have the same unit finishes and equipment and access to community amenities and programs as market rate units, and (2) the restricted units are disbursed across the unit mix on a pro rata basis