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- Dallas Housing Finance Corporation (DHFC)
Dallas Housing Finance Corporation (DHFC)
3/21/25 - 2/11/25
Welcome to Ultraground. We track changing pro formas for you.
Texas BRB March 21, 2025 - CC February 26, 2025
District: 5 | Pleasant Grove
304-Unit Multifamily HFC | 8008 Elam Rd | Approved
District: 8 | Southeast Dallas
300-Unit Multifamily | 2200 Dowdy Ferry Rd | Approved
District: 8 | Southern Dallas
240-Unit Multifamily HFC | 1021 E Wheatland Rd | Approved
District: 8 | Southeast Dallas
180-Unit Multifamily HFC | 1275 S Belt Line Rd | Approved
District: 8 | Far Southeast Dallas
280-Unit Multifamily HFC | 10600 C F Hawn Fwy | Approved
DHFC February 11, 2025
District: 8 | South Dallas
212-Unit Senior HFC | 6200 Baraboo Dr | Approved
You saved: 6h 41m, 1h 14m
DISTRICT: 5
Palladium Buckner Station 8008 Elam Rd
Pleasant Grove | 12.19 Acres | 304 Units | $50,000,000 Bonds | MOU Pending | Approved
Palladium Buckner Station is a 304-unit mixed-income housing development, with 244 affordable units (80.26%) restricted at 60% AMI and 60 market-rate units. The development is situated on DART-owned property and emerged from a September 2022 RFP issued by the City of Dallas, with the proposal selected by the Dallas City Council in June 2023. This analysis provides insight into the most recent updates to help contextualize the project's evolving financial structure.
Texas Bond Review Board 3/21/25
$50MM Bond Res | Reserved
The Palladium Buckner Station project has cleared a critical financing milestone in early 2025, securing a formal reservation of $50,000,000 in tax-exempt bonds. The bond reservation was officially logged on January 28, 2025, triggering a certification deadline of March 4, 2025, which appears to have been met. The development now faces a significant closing deadline of July 27, 2025, to finalize all financing and begin deployment of funds.
This $100 million transit-oriented development in Dallas's Pleasant Grove neighborhood represents one of only five multifamily housing projects that successfully navigated the competitive bond lottery process in Region 3 during Q1 2025.
City Council 2/26/25
4% Res of No Obj | Approved with No Discussion
The documentation shows an evolving financial structure from early 2025 through March 2025, with significant changes in both the financing sources and uses.
The most significant structural element is the confirmation of a prepaid ground lease arrangement. A critical element in the most recent documentation involves the project's 50% test for bond financing.
The $3 million in site acquisition is a prepaid ground lease and is therefore excluded from the 50% test.
This distinction is crucial for qualifying for 4% Low Income Housing Tax Credits, as it impacts the calculation of the aggregate basis.
With tax-exempt bonds at $43,207,872 and the aggregate basis of $84,285,026 (after excluding the prepaid ground lease), the project achieves approximately 51.26% financing through tax-exempt bonds, successfully meeting the minimum 50% threshold required for 4% LIHTC qualification.
The most recent pro forma dated March 11, 2025, shows updated financial figures compared to the City of Dallas document from February 26, 2025. The overall project has maintained its basic units/AMI structure, however, the financial model has undergone several notable changes.
Looking at the total development costs, the City of Dallas document references approximately $97,790,149, while the most recent pro forma shows a slightly higher total of $97,957,137 - an increase of $166,988. The City document appears to be working from earlier financial models, which is understandable given the timing of council review periods and application preparation.
On the financing sources side, there are several significant shifts. The City of Dallas document refers to "Permanent Financing" of $46,973,396. March documents specify an FHA 221(d)(4) loan through Regions Real Estate Capital Markets with a fixed rate of 6.00% and 40-year amortization. The loan amount in the most recent documents is reduced to $43,207,872, which is approximately $3.77 million less than the financing amount referenced in the City document.
The tax credit equity contribution has also shifted. The City document shows $31,411,995 in tax credit equity, while the March documents indicate a reduced amount of $29,835,868 based on a tax credit allocation of $3,390,779 and a tax credit pricing of $0.88. This represents a decrease of about $1.58 million in equity. The syndication rate of $0.88 per dollar of tax credit remains consistent across documents.
The deferred developer fee structure has been clarified in the newer documents. While the City document shows separate line items for "Deferred Developer Fee (Palladium)" at $5,883,331 and "Deferred Developer Fee (HFC GP)" at $2,521,427 (totaling $8,404,758), the more recent documents show a combined deferred developer fee of $8,913,297 or $8,913,304 (with a slight discrepancy between documents). This represents an increase of roughly $508,546 in the deferred developer fee.
The gap funding from the City of Dallas Economic Development department remains consistent at $11,000,000 across all documents, suggesting this component of the financing structure has been finalized. The January 15, 2025 letter from the City of Dallas Office of Economic Development confirms this amount based on an independent analysis verifying the funding gap.
Regarding the uses of funds, there are also several notable changes. The acquisition cost remains steady at $3,090,000 across documents, suggesting the land acquisition price is fixed. However, the construction contract amount has seen changes. The City document shows $64,974,087, while the newer documents reference either a total construction contract of $61,218,996 or $61,218,998 (with a minor $2 discrepancy). This represents a decrease of approximately $3.76 million in construction costs.
The developer fee has decreased slightly, from $11,574,421 in the February City document to a rounded $10,993,699 in the March model, showing a decrease of about $581,000. The project reserves have also decreased, from $4,258,177 to approximately $4,063,000, a reduction of about $195,000.
The bridge loan financing structure has been clarified in the more recent documents. The project will utilize a bridge loan of $23,346,424 from Regions Bank with an interest rate based on One Month Term SOFR plus 275 basis points with a 0.75 basis point floor (estimated at 6.97%). This bridge loan will facilitate construction and bridge capital contributions before being repaid from equity.
U/ Finance
March 21, 2025 State of Texas | February 26, 2025 City of Dallas | |
|---|---|---|
Lease Payment | $3,000,000 (prepaid ground lease) | N/A |
Contingency | $2,092,181 (4.03% of total hard costs) | N/A |
Permanent Loan | $43,207,872 (HUD 221(d)(4) loan from Regions Bank, 6.00% interest rate, 40-year term) | $46,973,396 |
Investor Equity | $29,835,868 (LIHTC equity from Regions Bank at $0.88 per credit) | $31,411,995 (Tax Credit Equity) |
Total Development Costs | $92,957,137 | $97,790,149 |
Land Acquisition | $3,090,000 (including broker fees) | $3,090,000 |
Soft Costs | $3,938,361 | $1,987,086 |
Developer Fee | $10,993,699 | $11,574,421 |
Deferred Developer Fee | $8,913,297 | $8,404,758.00 (Palladium: $5,883,331.00, HFC GP: $2,521,427.00) |
Hard Construction Costs | $53,957,807 | $66,419,087.00 (Contract: $64,974,087.00, Fees: $1,445,000.00) |
Financing Fees | $9,653,080 | $10,461,378 |
Reserves | $4,063,001 | $4,258,177 |
Housing Tax Credits Equity | $29,835,868 | $31,411,995 |
Other financing elements that appear in the later documents include the specific mention of tax-exempt bonds from Dallas Housing Finance Corporation in the amount of $43,207,872, which matches the permanent loan amount. This clarifies that the project will utilize 4% Low Income Housing Tax Credits with tax-exempt bonds to meet the 50% test required by the IRS.
The project timeline has also been further defined. The March documents indicate an expected construction start around July 2025, with the first units placed in service by December 2026 and full completion by July 2027. Full occupancy is projected by September 2027.
The off-site improvement costs have been specified in the later documents, with $30,000 allocated for DART parking space restriping and $270,000 for Kipling intersection improvements, totaling $300,000 in off-site costs. These are being included in the eligible basis for tax credit purposes, as evidenced by the CPA letter dated March 12, 2025, which confirms these costs are appropriate for inclusion.
The overall debt service coverage ratio remains consistent across documents at 1.15x, indicating the project maintains financial feasibility despite the adjustments to the capital stack. The operating expenses are projected at approximately $1,648,525 in the first year, with standard escalations of 3% annually.
In conclusion, the financial structure for Palladium Buckner Station has evolved significantly between late January and mid-March 2025. The most substantial changes include a reduction in the permanent loan amount, a decrease in tax credit equity, an increase in deferred developer fee, and adjustments to the construction contract amount. These changes suggest ongoing financial optimization and possibly responses to underwriting feedback from lenders, investors, or government agencies as the project moves toward financial closing. Despite these adjustments, the core project parameters, including unit count, affordability mix, and location, have remained consistent throughout the documentation.
City Council 11/13/24
IM/CS/PD → PDD for WMU-5 | Approved
Palladium’s $100MM Dallas HFC deal was approved on consent with no discussion at the November 13, 2024, city council meeting.
City Plan Commission 10/10/24
IM/CS/PD → PDD for WMU-5 | Approved
The discussion around the Palladium’s Buckner Station 304-unit HFC deal was overwhelmingly positive, with no recorded opposition from either the City Plan Commission or community members on October 10.
‟ This project is an important one for District 5. It is the largest project that I've handled in a decade on this body. The last 12-24 months we've had multiple projects... more projects in the last 18 months than maybe the last four or five years combined.
‟ We have been begging and crying, begging and crying, for some development.
You saved: 7h 37m
Dallas Housing Finance Corporation (DHFC) 10/8/24
$50MM Bond Inducement | Approved
Board members inquired about the legal intricacies of this arrangement. Specifically, there were concerns about the DHFC's ability to compel title and whether DART's exempt status as a government entity would carry through to the project. The development team acknowledged these complexities, stating that while they had consulted attorneys who deemed the structure appropriate, further legal analysis would be necessary.
The board recognized that this ownership structure is novel and requires careful consideration. They emphasized the need for a definitive legal determination before closing, understanding that the intricacies of the ground lease arrangement could impact the project's feasibility and the DHFC's role.
Despite these questions, the board viewed the DART involvement positively overall. The project includes 125 parking spaces reserved for DART, exceeding the transit authority's projected needs except during peak periods like the State Fair. Additionally, the development features a 40-foot-wide pedestrian promenade connecting directly to the DART station, enhancing transit accessibility. Community integration is a primary focus, with a 1,500-square-foot community room available for Pleasant Grove residents to reserve.
DHFC Directors expressed enthusiasm for the project's location and its potential impact on the area. This sentiment contributed to the board's decision to move forward with the inducement resolution, positioning the project for the upcoming bond lottery.
‟ I don't think we have any other assets in D5, so this would be great. It's also great that it's going to be this wonderful thing adjacent to the DART station, and the City of Dallas is giving a grant.
The deal hinges on several factors. Aside from the DHFC partnership and $11M grant, it also needs a rezone. CPC approved the case on October 10, 2024, and the City Council will see it in November.
You saved: 2h 24m
Read the Full Analysis: 3/21/25 - 9/19/24 | Palladium Buckner Station
Developer: Palladium, Tom Huth Phone: (972) 774-4400 Email: [email protected] LinkedIn
Public Partner: Dallas Housing Finance Corporation (HFC), Aaron Eaquinto Phone: (214) 670-4941 Email: [email protected]
Zoning Case Report: Z234-226(MP) SR
Case Report: Palladium Buckner Station
Pro Forma: Palladium Buckner Station PF
11/13/24 Project Plans: Palladium Buckner Station Plan
1/15/25 Project Plans: Palladium Buckner Station Plan
DISTRICT: 8
The Gateway at Trinity Forest 2200 Dowdy Ferry Rd
Southeast Dallas | 15 Acres | 300 Units | $50,000,000 Bonds | Approved
Texas Bond Review Board 3/21/25
$50MM Bond Res | In-Line
LDG’s 300-unit Gateway at Trinity Forest HFC deal is currently positioned in a strategic but challenging position within the Texas Bond Review Board's private activity bond allocation process. As of March 21, 2025, the partnership with the Dallas Housing Finance Corporation is currently listed with "In-Line,” indicating it's in the queue but has not yet received a reservation of bond cap from the $206.3 million available in Subceiling #4 for Region 3. This positioning is critical as the deal seeks to secure its place for the $50 million bond inducement that was preliminarily approved by the DHFC Board in October 2024.
City Council 2/26/25
4% No Obj Res | Approved
The project's total development cost has increased slightly from the initial $90.6 million estimate to approximately $93.7 million, signaling refinements to the development plan as it moves through the approval process.
LDG Development continues to advance this project through the complex financing mechanisms typical of affordable housing developments. The financing stack now includes $46 million in permanent financing as the primary debt instrument, representing roughly 49% of the total project costs. This is complemented by $36.3 million in tax credit equity (approximately 39% of the project budget), derived from the 4% Non-Competitive Low Income Housing Tax Credits being sought through TDHCA. The developer is deferring $8.4 million of their $10.7 million developer fee, demonstrating significant financial commitment to the project's success.
The capital stack is further supplemented by $1.45 million in anticipated income during lease-up, $1.14 million in letter of credit for operating deficit reserves, and $450,000 in bond proceeds. Hard construction costs account for $59.9 million, with soft construction costs totaling $10.5 million, and an additional $4.3 million allocated for professional fees. The land acquisition cost remains at $4.5 million, representing about 4.8% of the total project budget.
The project's ownership structure has been crafted with a to-be-formed single asset entity affiliated with DHFC serving as the general partner, paired with a to-be-formed limited liability company as the special limited partner. This arrangement will later accommodate the tax credit equity investor through an amended partnership agreement once identified.
At the February 26, 2025 City Council meeting, the project received a Resolution of No Objection with no registered speakers opposing the development. Notably, Council Member Carolyn King Arnold (District 4) spoke in support of the project despite it being outside her district. She referenced LDG's strong track record of quality developments in her district and she emphasized her satisfaction with the design and product quality.
‟But the bottom line is for our product, it was a very good product and it just speaks to equity in terms of the offerings. That means the design, the products. And right now I'm just extremely happy with what he's done in our district and we hope that he does ensure that he will do the same thing with this project.
The resolution was approved unanimously, representing a critical milestone in the 4% LIHTC application process with TDHCA.
Dallas Housing Finance Corporation 10/8/24
$50,000,000 Bond Inducement | Approved
The Gateway at Trinity Forest, a proposed 300-unit affordable housing development at 2070 Dowdy Ferry Road in southeast Dallas, faced some scrutiny during the Dallas Housing Finance Corporation meeting. The $90,641,903 deal is seeking a $50 million bond inducement to deliver 100% of the units restricted to 60% of Area Median Income. Board members raised significant concerns about the site's isolation from essential services and transportation options.
Board members expressed significant concerns about the development's accessibility and services. Sean Allen, Director from District 1, pointedly questioned where the "nearest sidewalks" were to access conveniences beyond the planned QT. Similarly, Anthony Page, Secretary from District 14, worried about the absence of essential services, asking where "the grocery stores" and "basic amenities" were located. Environmental issues were also addressed, with Page inquiring about potential odors from a nearby landfill.
‟I noticed this is east of the landfill, do you get any prevailing winds - they'e generally west to east so you know how the odors from the landfill at this site?
Page ultimately opposed the project and voted "no" on the inducement resolution.
Despite these reservations, the project received some support, with David Ellis, Director from District 10, seconding the motion for approval.
Aaron Eaquinto, General Manager: Provided comprehensive information about the project, highlighting its potential positive impact: "300 units across 15 acres, a mix of one to four-bedroom units, and affordability restricted to 60% of the area median income." He also mentioned the potential inclusion of a "tuition-free Bezos Academy daycare/Montessori school in the larger development."
You saved: 2h 24m
Developer: LDG Development, Jake Brown Phone: (502) 638-0534 Phone: (404) 301-4835 LinkedIn, Jason Trevino Phone: (512) 578-8488 Email: [email protected]
Public Partner: Dallas Housing Finance Corporation (HFC), Aaron Eaquinto Phone: (214) 670-4941 Email: [email protected]
Owner: Bill Foose Phone: (214) 336-9303 Email: [email protected]
Case Report: The Gateway at Trinity Forest
Project Plans: The Gateway at Trinity Forest Plan
As of March 3, 2025, there is no MOU for the deal
DISTRICT: 8
425-Unit Entitlements Approved in 2023
The Heights at UNT Station 1021 E Wheatland Rd
Southern Dallas | 9.5 Acres | 240 Units | $35,000,000 Bonds | Approved
Texas Bond Review Board 3/21/25
$50MM Bond Res | In-Line
The Heights at UNT Station development is currently listed as "In-Line" on the Texas Bond Review Board's Region 3 Subceiling #4 allocation report as of March 21, 2025. The deal awaits bond allocation while $31,311,236 remains available in the Region 3 subceiling. This 240-unit affordable housing development is positioned behind several other Dallas Housing Finance Corporation (HFC) projects in the queue, signaling the competitive nature of private activity bond allocations in the current funding cycle.
City Council 2/26/25
4% No Obj Res | Approved
The Dallas City Council recently approved a Resolution of No Objection for this development located at 1021 East Wheatland Road. The project is being developed by LDG Development with an estimated total development cost of $52.4 million. The proposed financing includes a $36.8 million mortgage loan coupled with $28.7 million in tax credit equity through the 4% Low-Income Housing Tax Credit program.
The development site consists of a 9.57-acre vacant parcel currently valued at only $227,340 that has been owned by Curtis Jones since 1997. During the Council meeting, Jones voiced support for the project, stating "this opportunity to have this project developed is much needed" and highlighting that "there has been no development since 2005" in the area.
At the council meeting, multiple council members expressed strong support for LDG's work. Council Member Carolyn King Arnold stated LDG has done "an excellent job."
‟I'm selective about who I put my name on. But I believe Mr. Jake [LDG] is committed to doing a very fine product.
Deputy Mayor Pro Tem Adam Bazaldua added insight into what makes a development successful in Dallas beyond meeting technical requirements:
‟More than the product that he brings, his partnership with the community that I've experienced in District 7 over in Far East Dallas has been really commendable.
The project's unit mix (24 one-bedroom, 96 two-bedroom, 108 three-bedroom, and 12 four-bedroom units) targets residents at 60% AMI or below. Hard construction costs are budgeted at $194,093 per unit, providing a valuable benchmark for current construction pricing in the southern Dallas market.
This development faces competition in the bond allocation queue, with six projects already receiving reservations totaling $200 million in the first quarter of 2025. Several other Dallas HFC projects are also waiting in line ahead of The Heights at UNT Station, including The Gateway at Trinity Forest, The Legacy on Belt Line, CF Hawn Apartments, Tuscany at Goldmark, Torrington Davis, and Torrington Forest.
City Council 8/23/23
MF-1(A) w/ DR → PDD for MU-1 | Approved
Owner Curtis Jones rezoned the site in 2023 with an approval for a 3-structure, 5-story mixed-use development plan, centered around ground floor retail and upper-floor residential dwellings within a Planned Development District for MU-1 Mixed Use District applications. The plan has a cap of 425 units.
A noteworthy aspect of this plan is the termination of previously placed deed restrictions – imposed by SUP No. 891 – that had inhibited the provision of care for patients battling alcoholism, narcotics addiction, or psychiatric issues.
Parking logistics are well accounted for, primarily via a parking structure tucked behind the primary residential edifices. The initial deed restrictions were designed to facilitate property rezoning to an MF-1(A) District, with restrictions on certain uses.
Developer: LDG Development, Jake Brown Phone: (502) 638-0534 Phone: (404) 301-4835 LinkedIn, Jason Trevino Phone: (512) 578-8488 Email: [email protected]
Public Partner: Dallas Housing Finance Corporation (HFC), Aaron Eaquinto Phone: (214) 670-4941 Email: [email protected]
Owner: Curtis Jones Phone: (469) 309-3761
Zoning Representative: La Sierra Planning Group
Zoning Case Report: Z212-161(MP)
Case Report: The Heights at UNT Station
DISTRICT: 8
The Legacy on Belt Line 1275 S Belt Line Rd
Southeast Dallas | 10.5 Acres | 180 Units | $35,000,000 Bonds | Approved
Texas Bond Review Board 3/21/25
$50MM Bond Res | In-Line
The Legacy on Belt Line project also sits "In-Line" for Texas Bond Review Board Region 3 private activity bonds, awaiting bond reservation despite receiving Dallas City Council's Resolution of No Objection on February 26.
This financing structure supports a 180-unit development with 100% of units serving residents at 60% AMI. For comparison with local competition, six Dallas HFC projects are ahead in the bond queue, while the remaining available allocation of $31,311,236 falls short of the $35,000,000 bonds this project requires. The development's financial viability now hinges on increased regional allocation or queue adjustments.
City Council 2/26/25
4% No Obj Res | Approved
The capital stack detailed in the February 2025 City Council resolution reveals comprehensive financing for this $52,389,629 development. Primary funding comes from a $25,308,000 mortgage loan (48.3% of total development cost), supplemented by $20,379,360 in tax credit equity (38.9% of TDC), creating an equity-to-debt ratio of 0.8:1. The remaining gap is filled through $5,020,917 in deferred developer fee (9.6% of TDC), $651,352 in letter of credit reserves, $730,000 in projected interim income from lease-up (assuming 30% occupancy rate during stabilization), and $300,000 in bond reinvestment proceeds.
The uses breakdown allocates $26,100,000 to hard construction costs ($145,000 per unit), with land acquisition at $3,245,000 ($18,028 per unit). The soft cost structure includes $11,918,268 in combined soft costs (22.7% of TDC), $2,578,556 in professional fees (4.9%), $1,936,337 in financing costs (3.7%), $651,352 in reserves (1.2%), and a $5,810,116 developer fee (11.1% of TDC). The project includes $150,000 for other miscellaneous costs.
Dallas Housing Finance Corporation (DHFC) 10/8/24
$35M Bond Inducement | Approved
The Legacy on Belt Line, a 180-unit District 8 deal, is seeking a $35 million tax-exempt bond inducement. Its viability is supported by the nearby Meadowbrook Apartments' success, with Jake Brown reporting:
‟As of last Monday we were already at 45% occupied, so very strong demand.
Board members raised several questions:
‟ Is there going to be like a new street because adjacent to it is going to be some commercial, right?
Response: confirmed Sullivan Road will be extended through the site to Belt Line Road.
‟ Do you have a use for the commercial yet, a prospective use? Not thought of a childcare?
Response: indicated no specific plans yet, likely "some small strip retail component."
‟Do we have a one-mile three-years, three-miles one-year concentration?
Response: confirmed compliance, noting Meadowbrook Apartments as the only nearby property, approved four years ago.
The board approved the inducement resolution following these clarifications.
The project's pro forma shows a total development cost of $51,756,851, with $44,874,710 in eligible basis. It projects a first-year net operating income of $2,031,245 and a debt coverage ratio of 1.1568. The annual net cash flow is expected to start at $275,344, growing to $769,660 by year 15. The development includes $3,600,000 for site work and $22,710,667 for building costs, with a 5.59% contingency of $1,499,708.
Developer: LDG Development, Jake Brown Phone: (502) 638-0534 Phone: (404) 301-4835 LinkedIn, Jason Trevino Phone: (512) 578-8488 Email: [email protected]
Owner: Farrukh Azim Phone: (817) 742-9949
Case Report: The Legacy on Belt Line
Project Plans: The Legacy on Belt Line Plan
DISTRICT: 8
C F Hawn Apartments 10600 C F Hawn Fwy
Far Southeast Dallas | 8.58 Acres | 280 Units | $40,000,000 Bonds | Approved
Texas Bond Review Board 3/21/25
$40MM Bond Res | In-Line
AMTEX Housing’s $40 million CF Hawn Apartments deal currently sits in the "In-Line" position (#82) for private activity bonds, showing the competitive nature of affordable housing financing in the Dallas area.
This positioning reflects the intensely competitive nature of affordable housing finance in the region, where $200 million in bond capacity has already been reserved for other projects, with only $31.3 million remaining available in the Region 3 subceiling.
City Council 2/26/25
4% No Obj Res | Approved
With a development cost of $80.3 million for 280 units, this project carries a per-unit cost of approximately $286,650 - relatively competitive in today's challenging construction environment.
The capital structure follows typical 4% LIHTC financing patterns, with permanent debt covering 52.4% ($42.1 million) and tax credit equity providing 38.3% ($30.7 million) of the stack. What's notable is the significant deferred developer fee at $6.6 million, representing 8.2% of total development costs and over 75% of the total developer compensation. This high deferral percentage suggests tight returns that will likely take years to realize for the development team.
Construction costs account for $48.6 million ($173,500/unit), representing 60.5% of the budget - a ratio that tracks with current market expectations for affordable multifamily development. Soft costs total $13.8 million, while land acquisition came in at a relatively modest $2.9 million.
The deal structure leverages the Dallas Housing Finance Corporation (DHFC) as the 100% owner of the general partner entity, with AMTEX maintaining involvement through a special limited partner position. The DHFC Board's approval to issue bonds up to $40 million facilitated the project's advancement, culminating in the City Council's Resolution of No Objection in February 2025.
There was one registered speaker (Dan Hansen) who was online but only offered to answer questions. There were no questions from the Council and no discussion before approval.
With 99.3% of units (278 of 280) designated for households earning 0-60% of Area Median Income, the project delivers meaningful affordable housing inventory while maintaining a financing structure that, though tight on returns, appears viable in the current tax credit environment.
Dallas Housing Finance Corporation 8/27/24
$40MM Bond Inducement | Approved
CF Hawn Apartments, a 280-unit HFC deal from AMTEX Housing, was induced for $40,000,000 in bonds. It will need a rezoning to bring the 280 units to 10600 CF Hawn Freeway in Dallas’ District 8. The deal is positioned as a family-oriented product with 88% of units being 2 and 3 bedrooms.
Board members expressed a mix of support and curiosity about the project's details. Ryan Garcia, Vice President of District 9, raised concerns about the project's financial viability without DHFC involvement, asking, "Is there any way this deal works without us partnering with y'all?" He also emphasized the need to compare this project with others in District 8 at their December 8 meeting.
‟ I think it'll be very helpful at our December 8 meeting to really go through all the projects we have, especially in District 8, and if they all depend on partnership, we have a certain degree of choice as to which ones make the most sense based on lottery results.
Ryan Moore, Director of District 13, inquired about the developer's willingness to contribute to local infrastructure, specifically a planned trail between Hay Market and Riley. This question highlights the board's interest in community benefits beyond the housing itself.
Despite these questions, the board collectively voted in favor of the inducement resolution, with several members, including Sean Allen (District 1) and David Ellis (District 10), expressing their support without additional commentary. This positive reception suggests that the project has a good chance of moving forward, though it will likely face further scrutiny and comparison with other proposed developments in the area before final approval.
DHFC 8/27/24
Postponed
The 280-unit deal at 10600 C F Hawn Freeway had a critical issue arise from an error in the site location data, which Anthony Page, Secretary of District 14, described as a "serious technical error," making it "impossible... to determine access to public transportation and similar... things." If you put the address into Google Maps, it takes you to a site 2,000’ NW of the actual project site. This mistake affected the analysis of nearby amenities and transit options, emphasizing the need for precise application materials.
‟It's concerning to me that you guys didn't catch this mistake.
The site's current office zoning emerged as a significant hurdle. David Ellis, Director of District 10, suggested projects on pre-zoned multifamily sites may face less resistance from the DHFC.
‟I usually give a lot of slack on the location if it's already zoned multi, if the City has said this is what we want for multi. This is not, and so now I'm just kind of struggling.
Transportation accessibility was a major concern. Sean Allen, Director of District 1, noted, "little to no transit" around the site. Allen asked about market demand for affordable housing in the area.
‟Do they need more affordability in that area or not? Do they need more housing? Sure, I mean, I don't know.
Despite these concerns, some board members saw potential in the project in providing more value to the community instead of becoming industrial - "nice and new over bunch of trucks." The board postponed their decision until October, requesting more information on community feedback, zoning progress, school proximity, and area growth projections.
‟I’ll probably vote yes, under the guise that maybe I can be convinced at the MOU stage…I don’t dislike it enough to say ‘hey, let’s not put it into the lottery.’
You saved: 2h 31m
Developer: AMTEX Housing, Chad Baker Phone: (214) 295-5645 Email: [email protected] LinkedIn
Public Partner: Dallas Housing Finance Corporation (DHFC), Aaron Eaquinto Phone: (214) 670-4941 Email: [email protected] LinkedIn, David Ellis Phone: (512) 234-3394 Email: [email protected] LinkedIn
Owner: Dayspring Ministries of Dallas, Inc. / Springs Fellowship Church Phone: (214) 391-7552
Case Report: C F Hawn Apartments
DISTRICT: 8
Baraboo Hills Apartments 6200 Baraboo Dr
South Dallas | 19.94 Acres | 212 Units | $35,000,000 Bonds | Approved
Dallas Housing Finance Corporation (DHFC) 2/11/25
$35,000,000 Bond Inducement | Approved
Lincoln Avenue Communities secured Dallas HFC approval on February 11, 2025, for $35 million in tax-exempt bonds for the Baraboo Hills Apartments, a 212-unit senior housing deal in South Dallas. The project targets 60% AMI seniors (55+) on a 20-acre site at 6200 Baraboo Drive, with construction costs at $201,252 per unit and total development cost of $305,310 per unit.
The Board's primary concern centered on Lincoln Avenue's unusual arrangement with Onyx Realty Group, which currently holds the contract with the church landowner. Onyx will receive $450,000 plus 5% of Lincoln Avenue's developer fee share for community engagement services. District 12 Director Oliver Robinson directly questioned this setup:
‟The property is under contract to Onyx right now and is this effectively just a flipping of the contract and that's their fee or is it something beyond that?
The developer clarified that Onyx would provide ongoing community engagement but would not participate in ownership.
Several Board members probed whether this arrangement constituted excessive compensation or affected the DHFC's economics. President Marcy Helfand specifically asked:
‟So are they getting $450K plus 5% of the developer fee? That comes out to about 8% of $7,435,661. So is the threshold 10% or is there some limit on how much they can transfer of that developer fee?
The developer confirmed all compensation would come from Lincoln Avenue's portion of the developer fee, not impacting DHFC returns. Aaron Eaquinto, General Manager: Despite earlier concerns, supported the financial structure as long as it didn't impact DHFC: ".”
‟Basically you're saying they could take this portion of the fee and give it to their neighbor's dog.
Other notable discussions included:
Title issues (labor liens from city cleanup of illegal dumping)
A creative $550,000 internet infrastructure investment generating revenue after year five
A financial modeling error in the 15-year proforma (repairs/maintenance costs incorrectly doubling in 2032)
The project distinguishes itself by serving seniors exclusively, unlike three existing LIHTC properties within a mile radius (all family-focused), with a favorable 4.8% capture rate. The design transitions from single-story townhomes along Baraboo Drive to two-story elevator buildings at the rear, maximizing MF2(A) zoning while preserving substantial tree coverage.
Lincoln Avenue Communities (30,500 units across 28 states) expects to receive bond allocation by August/September 2025 per Hilltop Securities' assessment, with closing targeted by end of 2025 (deadline March 2026), followed by 24 months of construction and 12 months of lease-up.
The financing structure includes $30.5M first mortgage debt, $26.4M LIHTC equity, and $5.2M deferred developer fee, with no soft funding sources modeled. The Board unanimously approved the inducement resolution, positioning the project for Texas Bond Review Board submission.
Developer: Lincoln Avenue Communities, Blake Hopkins Phone: (424) 222-8253 Email: [email protected] LinkedIn
Public Partner: Dallas Housing Finance Corporation (DHFC), Aaron Eaquinto Phone: (214) 670-4941 Email: [email protected] LinkedIn, David Ellis Phone: (512) 234-3394 Email: [email protected] LinkedIn
Owner: Mt Tabor Missionary Baptist Church, Pastor Branden Walker Phone: (972) 225-1704
Pro Forma: Baraboo Hills PF
Project Plans: Baraboo Hills Plan/Presentation
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