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R-07-02-22-8E1 - 2/22/2007RESOLUTION NO. R -07-02-22-8E1 WHEREAS, low income housing tax credits are essential and critically important in financing affordable housing opportunities in this state, and WHEREAS, DDC RRTC, Ltd. desires to obtain housing tax credits from the Texas Department of Housing and Community Affairs (TDHCA) through the required application process in 2007 for a 144 -unit affordable housing apartment complex to be known as the Bluffs Landing Senior Village Apartments located at 2200 Old Settlers Road, Round Rock, Texas, and WHEREAS, DDC RRTC, Ltd. desires to obtain HOME Investment Partnership Program funds from the Texas Department of Housing and Community Affairs (TDHCA) through the required application process in 2007 for the Bluffs Landing Senior Village Apartments, and WHEREAS, DDC RRTC, Ltd.'s proposed development of the Bluffs Landing Senior Village Apartments will meet a large demand for affordable senior housing, and WHEREAS, DDC RRTC, Ltd. is seeking local support of this proposal, Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, That the Mayor and City Council support the submission of an application by DDC RRTC, Ltd. for 2007 tax credits through the Texas Department of Housing and Community Affairs (TDHCA) program, and for HOME Investment Partnership Program funds, for the purpose of developing the Bluffs Landing Senior Village Apartments affordable rental housing development project. 0:\wdox\RESOLUTI\R00222E,.WPD/jkg Further, that the Mayor and City Council sign this Resolution to comply with Texas Administrative Code, Section 49.9(i)(5), which requires submission of a resolution with the application which authorizes the applicant to act on behalf of the City of Round Rock in applying for HOME or Housing Trust Funds from TDHCA. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Resolution was adopted was posted and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended. RESOLVED this 22nd day of February, 2007. ST: N .• WE , Mayor it of R. nd Rock, Texas CHRISTINE R. MARTINEZ, City Secr-4 ary 2 Contact Information: Project Ownership: (Organizational & Developer Charts Below) Development Location: Rental Information: Tenant Information: BLUFFS LANDING SENIOR VILLAGE APARTMENTS ROUND ROCK, TEXAS - WILLIAMSON COUNTY Mr. Colby Denison, Managing Member DDC Investments, Ltd. 3701 North Lamar, Suite 206 Austin, Texas 78705 (512) 732-1226 ph (512) 732-1276 fax (512) 577-5566 cell colby(andenisondevelopment.com OWNER ENTITY DDC RRTC, Ltd. GENERAL PARTNER OF OWNER ENTITY DDC RRTC GP, LLC Single Purpose Entity controlled by CROSSROADS HOUSING (CHDO) The proposed Bluffs Landing Senior Village Apartments will be located on approximately 8 acres of land at 2200 Old Settlers (northwest corner of 1460 and Old Settlers), Round Rock, Williamson County, Texas. The community will contain: ♦68 one -bedroom, one bath units consisting of approximately 750 square feet, with maximum monthly rents (net of utility allowances) of $686; ♦44 two-bedroom, one bath units consisting of approximately 850 square feet, with maximum monthly rents (net of utility allowances) of $808 ♦ 32 two-bedroom, two bath units consisting of approximately 975 square feet, with maximum monthly rents (net of utility allowances) of $808; ♦ Tenants of Bluffs Landing will pay for electricity, telephone and cable television. Bluffs Landing Senior Village Apartments will pay for water, wastewater and trash pickup, All 140 units will be income restricted under the requirements of the Housing Tax Credit Program. This income level for the tax credit units is based upon the number of persons in the household and is determined annually. Tenants' incomes are verified and re -certified once each year, However, it is important to note that tenants whose incomes rise above the income -restricted levels may not be removed from occupancy simply because they are no longer income eligible. The development's On-site Management will verify income and employment, as well as obtain background and credit checks on potential tenants upon receipt of a rental application. • One -hundred and thirty (130) units will be reserved for tenants earning less than 60% of the Austin MSA (includes Round Rock) Median Income and fourteen (14) units will be reserved for tenants earning less than 30% of AMI. For the year 2006, this translates to annual income of up to $29,880 for a single -person, and up to $34,140 for a two -person household in the 60% AMI category, and up to $14,950 for a single -person, and up to $17,100 for a two -person household in the 30% AMI category ♦The residential units will be designed in accordance with Fair Housing standards. The Project Owner will provide reasonable accommodation(s) or modification(s) to a residential unit on a one- time basis as requested by a tenant with a disability. Unit Amenities: BLUFFS LANDING SENIOR VILLAGE APARTMENTS ROUND ROCK, TEXAS - WILLIAMSON COUNTY • The spacial residential units will contain nine -foot ceilings and a full range of kitchen appliances, which will include a frost -free refrigerator with icemaker, range and self-cleaning ovens, microwave oven, dishwasher, and garbage disposals. Additionally, each unit will contain a utility room with washer and dryer connections, as well as a patio with exterior storage space. •The apartment units are designed to be energy efficient, and will be equipped with such energy saving devices, such as 14 SEER air-conditioning units and ceiling fans in all living areas and bedrooms. Project Amenities: *The community will be elegant in appearance, functional in layout and will provide tenants with a full range of amenities. The furnished community building will contain an activity center and TV room, movie theater, a full commercial kitchen, library, fitness center, business center equipped with computer and fax machine and coin-operated clothes care center. Residents and their families will also enjoy a pool and spa, community garden and picnic areas. DEVELOPER CHART The Project Bluffs landing Senior Village Round Rock Texas DDC Investments, Ltd. (Developer) CROSSROADS HOUSING DEVELOMENT CORP (Co -Developer) DEVELOPMENT TEAM ORGANIZATIONAL CHART The Project Bluffs Landing Senior Village Round Rock Texas IIIDDC RRTC, Ltd. II (Operating Partnership) (0.01%) DDC RRTC GP, LLC. (General Partner) 1 Crossroads Housing Development Corp. CHDO (99.98%) MMA Financial (Initial Limited Partner) (0.01%) DDC Investments, Ltd. (Special Limited Partner) PRINCIPAL AND DEVELOPER: Colby Denison, DDC Investments, Ltd., Austin, IX Denison Development & Construction (DDC) provides national award-winning residential development, with products ranging from multimillion -dollar custom homes to affordable rental and for sale housing. DDC is approaching stabilization of a 100 -unit affordable multifamily complex for families in Seguin. In Georgetown, DDC is under construction on San Gabriel Senior Village, a 100 -unit senior housing affordable housing complex. DDC will break ground on 240 elderly affordable housing units in Houston later in 2007. The Founder, Colby W. Denison, has achieved success in changing the face of the Texas residential housing market by remaining focused on architectural integrity, attention to detail and quality of construction. Prior to founding Denison Development, Colby served as a member of the oil services & equipment equity research team at Credit Suisse First Boston. Institutional Investor Magazine rated Colby's team as the number one research group on Wall Street for three consecutive years. While serving as a research analyst, he directed segment managers for institutional 2 BLUFFS LANDING SENIOR VILLAGE APARTMENTS ROUND ROCK, TEXAS - WILLIAMSON COUNTY money management firms and mutual fund companies to profitable investment decisions in the oilfield sector, lead managed numerous equity and debt transactions for Fortune 500 corporations, including the largest oil services initial public offering in the history of the sector, and advised these same companies on strategic business alternatives including merger and acquisition strategies. Prior to Colby's career in investment research, he received his Bachelor of Business Administration from the University of Texas at Austin with majors in both Business Honors and Finance. For more information in Colby and Denison Development, go to www.denisondevelopment.com. CHDO OWNER AND CO -DEVELOPER: Paul Pryor, Crossroads Housing Development Corporation, Big Spring, TX In 1999, Crossroads Housing Development Corporation (Crossroads) was created to address the lack of affordable housing in Howard County, then identified as the number one problem facing the area. Since that time, Crossroads has expanded its boundaries to capture the contiguous counties of Howard County as well as the Central and Western portions of Texas. Specifically, Crossroads has acted as general contractor on single-family home construction and rehabilitation as well as multifamily construction of tax credit funded apartment communities. Included in the list of tax credit communities that Crossroads has acted as General Contractor are Stratton Oaks in Seguin, San Gabriel Senior Village in Georgetown, and Chisolm Trail in Belton, and It has also acted as general partner for several tax credit communities including San Gabriel Senior Village in Georgetown, Texas and Sterling Springs in Midland. Crossroads is a certified CHDO in the State of Texas, a registered builder, certified housing quality inspector, certified Community Land Trust Developer, certified single family home developer, and a member of NAHRO for 16 years. VICE PRESIDENT OF DEVELOPMENT: Leslie Holleman, Leslie Holleman & Associates, Inc., Brownwood, TX In 1987, Leslie received a BBA in Finance (with Accounting minor) from Sam Round Rock State University, and commenced a diverse 15 -year banking career in the operations, accounting, credit and community development real estate lending areas. Pursuing an interest in affordable housing gained as a Community Development Lender, she left the banking industry and expanded her knowledge of affordable housing programs, working in the public sector as Credit Underwriting Manager for the Texas Department of Housing and Community Affairs, in the private development sector as Finance Director for an Austin, Texas based real estate development firm, and Partner with an Austin, Texas based real estate consulting firm before beginning her consulting business. After successfully assisting clients as a full-service, hands-on consultant, Leslie expanded her role to include "Owner" and "Developer" as a co -Principal of DF Affordable Housing Partners, Inc. and DFAHP Development, L.P., formed to primarily serve rural and senior markets. Since 1997, Leslie has secured funding allocation awards for 21 Texas communities totaling 1,522 units of new construction and 612 units of acquisition/rehabilitation. GENERAL CONTRACTOR: Crossroads Housing Development Corporation, Paul Pryor, Big Spring, TX MAJOR Sue CONTRACTOR: Brownstone Construction, Bill Brown, Houston, 7X In 1971 William L. ("Bill") Brown formed his first real estate company. Over the past 35 years Bill's affiliated companies have planned, developed and constructed over 7,000 housing units. In recent years Bill has assembled a team of real estate professionals, including his three sons (Jed, Doak & Wil), to assist him with development and construction. Brownstone is currently focusing on inner-city townhomes, custom homes, multi -family tax credit projects, and market rate apartments. ARCHITECT: Architettura, Inc., Plano, 7X The Principal and Project Manager of Architettura, Inc., Frank W. Pollacia, is a licensed registered architect in Texas, New Mexico, Indiana, Kansas, Missouri and Iowa. Additionally, Mr. Pollacia is a registered interior designer in the State of Texas, a 3 BLUFFS LANDING SENIOR VILLAGE APARTMENTS ROUND ROCK, TEXAS - WILLIAMSON COUNTY nationally certified architect by NCARB, and has completed the State of Texas Handicap Accessibility Academy. Mr. Pollacia focuses on the development of the architectural design and preparation of construction documents, and is a "hands on project manager" instrumental in coordinating the project consultants and establishing the organization of the bid documents. The Architectural career of Mr. Pollacia spans 19 years. As a practicing architect, his experience with large Dallas -area architectural firms includes RTKL, Inc., HKS, Inc. and James, Harwick and Partners. Recent projects completed by Architettura, Inc. include AMLI at Lee's Summit (432 units) in Dallas, Residence at the Oaks (212 units) in Dallas, Highpoint at Pella (100 units) in Dallas, Stonebriar Village (100 units) in Plainview, and Amarillo Green Acres (52 new construction units and 140 rehabilitated units) in Amarillo. PROPERTY MANAGEMENT AGENT: UAH Property Management, Dallas, TX UAH Property Management is a full service real estate management company dedicated to providing its client property owners a personalized, high-quality, and cost effective property management service. UAH Property Management specializes in conventional and Section -42 Tax Credit (LIHTC) multi -family residential communities in Texas, Oklahoma and New Mexico. The principals of UAH Property Management have a unique and broad range of skills and knowledge necessary to ensure the successful management and operations of tax -credit, affordable housing communities. Michael V. Clark is a Certified Property Manager (CPMO) with over 35 -years of property management experience and has held senior management positions with The Grupe Company, Coldwell Banker, Sares-Regis, The Koll Company, FirstWorthing, and other national property management companies. Mr. Clark was most recently the President of CHMG, Inc., a local management firm specializing in the management of Section -42 Tax Credit (LIHTC) residential communities. Mr. Clark earned a BA from Oregon State University and an MBA from the University of Washington. UAH Property Management's success is a result of their emphasis on supervision, marketing and leasing, financial controls and reporting, compliance, property maintenance, resident relations, risk management and their operating priorities and philosophy. LEGAL COUNSEL: Locke, Liddell & Sapp, LLP, Austin, 1X DDC's legal counsel, Cynthia L. Bast is a Partner in Locke Liddell's Austin office practicing in the area of affordable housing and community development law. Cynthia has extensive experience with representing for-profit and non-profit developers, lenders, investors and others in affordable housing transactions, utilizing low-income housing tax credits, tax-exempt bonds, HOME funds, and other federal, state, and local programs; knowledge of new markets tax credits and other community development financing tools. Cynthia received a Bachelor of Arts degree, magna cum laude, from University of Tulsa in 1987, Master of Business Administration degree from University of Tulsa in 1988, Juris Doctor degree, with honors from The University at Austin in 1991 and was Executive Editor of the Texas International Law Journal. She was admitted to practice in Texas in 1991. Her professional affiliations and awards include: Member - American Bar Association; Affordable Housing and Community Development Law Forum; Member - State Bar of Texas; Member - Travis County Bar Association; Vice Chair - Texas Community Building With Attorney Resources. CERTIFIED PUBLIC ACCOUNTANT: Thomas Stephen & Company, L.L.P., Southlake, TX Thomas Stephen & Company provides accounting, audit, tax and consulting services with emphasis in the real estate and affordable housing industries. Thomas Katopody, a Partner with Thomas Stephen & Company, has directed audit and consulting engagements for some of the largest real estate developers in the country, and is deeply involved in advising real estate clients in developing and implementing strategies to meet their needs for equity and debt financing. Proper to joining TS&Co., Tom was associated with Kenneth Leventhal & Company for fifteen years, where he was a partner. 4 BLUFFS LANDING SENIOR VILLAGE APARTMENTS ROUND ROCK, TEXAS - WILLIAMSON COUNTY Tom has extensive experience in the tax aspects of real estate with all types of entities — including partnerships, limited liability companies, corporations, S Corporations, trusts and non-profit corporations. He is involved in assisting developers of affordable housing in structuring housing tax credit projects including issues relating to financing, taxes, eligible basis, developer fees, sale of tax credits and structuring partnership agreements. 5 DATE: February 15, 2007 SUBJECT: City Council Meeting - February 22, 2007 ITEM: 8.E.1. Consider a resolution of support for Texas Department of Housing and Community Affairs (TDHCA) 2007 Housing Tax Credits and HOME Investment Partnership Program fund for the proposed Bluffs Landing Senior Village Apartments. Department,: Planning and Community Development Staff Person: Mona Ryan, Community Development Coordinator Justification: Affordable rental housing for seniors is identified as a high priority in the 2004-2009 City of Round Rock Consolidated Plan. The projected number of new rental units needed for elderly is 345 and for small related families (2) is 1,295. The proposed development is consistent with the Consolidated Plan. TDHCA requires a support resolution from the city for tax credit applications. The developer has met with staff on this proposed development and has received guidance and support for the project. Funding: Cost: N/A Source of funds: N/A Outside Resources: Texas Department of Housing and Community Affairs Background Information: The proposed Bluffs Landing Senior Village Apartments will be located on approximately 8 acres of land at 2200 Old Settlers (northwest corner of 1460 and Old Settlers), Round Rock, Williamson County, Texas. The community will contain 68 one -bedroom, one bath units consisting of approximately 750 square feet, with maximum monthly rents (net of utility allowances) of $686; 44 two-bedroom, one bath units consisting of approximately 850 square feet, with maximum monthly rents (net of utility allowances) of $808; 32 two-bedroom, two bath units consisting of approximately 975 square feet, with maximum monthly rents (net of utility allowances) of $808. All 140 units will be income restricted under the requirements of the Housing Tax Credit Program. One -hundred and thirty (130) units will be reserved for tenants earning less than 60% of the Austin -Round Rock MSA Median Income and 14 units will be reserved for tenants earning less than 30% of AMI. For the year 2006, this translates to annual income of up to $29,880 for a single -person, and up to $34,140 for a two -person household in the 60% AMI category, and up to $14,950 for a single -person, and up to $17,100 for a two -person household in the 30% AMI category Public Comment: Not required at this time