HomeMy WebLinkAbout23-1452RESOLUTION NO. 23-1452
A RESOLUTION OF THE CITY OF DENTON, TEXAS CONTINUING SUPPORT OFGENERATION HOUSING PARTNERS, LLC’S WESTVIEW HEIGHTS AT DENTONPROJECT IN LIGHT OF THE PROJECT’S CHANGE TO A PROPERTY-TAX-EXEMPTSTRUCTURE; AUTHORIZING THE CITY MANAGER, OR THEIR DESIGNEE, TO SIGN ALETTER ACKNOWLEDGING THE CITY’S CONTINUED SUPPORT; AND PROVIDING ANEFFECTIVE DATE.
WHEREAS, on February 1, 2022, City Council passed Resolution 22-165 in support for
Generation Housing Partners, LLC’s ("the Applicant") proposal for the new construction of a
multi-family affordable rental housing development to be located approximately at the northwest
corner of 1-35 & FM 1173, Denton, TX 76207 to be named the Westview Heights at Denton
Apartments (the "Project"); and
WHEREAS, in September 2022, the Texas Department of Housing and Community
Affairs (“TDHCA”) granted a Commitment Notice for the 2022 9% competitive tax credits for
the Project; and
WHEREAS, in June 2023 the Applicant requested the City sign a letter to TDHCA to
acknowledge a change to the property-tax-exempt structure of the Project as the Applicant now
intends to partner with the Denton Housing Authority (“DHA”) to enter into a Public Facilities
Corporation (“PFC”) agreement; and
WHEREAS, the Applicant entering this agreement would fundamentally alter the nature
of the original Resolution of Support by creating a new tax-exempt property within the City; and
WHEREAS, the City continues its support, as expressed in Resolution 22-165, in light of
the change of the structure of the Project; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES:
SECTION 1. The recitals contained in the preamble of this Resolution are incorporated
by reference into the body of this Resolution as if fully set forth herein.
SECTION 2. The City re-affirms its commitments and its support f6r the Project provided
in Resolution 22-165, subject to any conditions contained therein.
SECTION 3. The City Manager is hereby authorized, empowered, and directed to sign the
letter in the form attached hereto as Exhibit A, acknowledging the City is advised of the Project’s
change to property-tax-exempt structure making the development of new affordable housing
financially feasible in the City, and send the letter to the TDHCA.
SECTION 4. That this Resolution shall become effective immediately upon its passage
and approval.
The motion to approve this ordinance was made by Br fb\ Be' L and seconded
by PAul me \+ter ; th, „di„,„„ w„ p„„d ,„d ,pp„„,d by th,
following vote n - A
Aye Nay Abstain Absent
Mayor Gerard Hudspeth:
Vicki Byrd, District 1 :
Brian Beck, District 2:
Paul Meltzer, District 3 :
Joe Holland, District 4:
Brandon Chase McGee, At Large Place 5 :
Chris Watts, At Large Place 6:
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PASSED AND APPROVED this the ISt- d,y ,f 2023
GERARD mA
ATTEST:
JESUS SALAZAR, CITY SECRETARY t\\\t 111111/
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APPROVED AS TO LEGAL FORM:
MACK REINWAND, CITY ATTORNEY
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Exhibit A
City Manager’s Office
215 E. McKinney St., Denton, TX 76201 • (940) 349-8307DENTON
August 15, 2023
Bobby WilkinsonExecutive Director
Texas Department of Housing and Community Affairs221 E 11 th Street
Austin, TX 78701
Re :Westview Heights at Denton, TDHCA #22234 – Request to Acknowledge change to
property-tax-exempt structure
Dear Mr. Wilkinson:
In September 2022, TX Westview 2022, Ltd (the “Owner“) received a Commitment Notice from
the Texas Department of Housing and Community Affairs (“TDHCA”) for 2022 9% tax credits
(Tax Credits) for the Westview Heights at Denton (the “Development”). The development
received a Resolution of Support from the City of Denton pursuant to Resolution No. 22-165 on
February 1, 2022.
Generation Housing Partners, LLC informed the City of Denton that due to industry-wide
shortages of materials and labor, as well as current loan interest rates, their ownership structure
must be modified for the development to be tax-exempt. The tax-exempt structure would allow
for the development to be financially feasible by forming a public/private partnership with a
subsidiary of the Denton Housing Authority (“DHA”) whereby the DHA would own the
underlying land and enter into a long-term ground lease with the Owner - limited partnership and
the subsidiary of the DHA would also serve as the General Partner of the limited partnership.
The new structure would allow for the development to qualify for a property tax exemption
making the development financially feasible.
On August 15, 2023 the Denton City Council passed a resolution auhorizing the City Manager to
sign a letter to TDHCA to acknowledge a change to property-tax-exempt structure of Project to
confirm the City of Denton’s continued support for the development of affordable housing in the
City. Please accept this letter as confirmation of the City’s continued support for the
development.
Sincerely,
Sara Hensley
City Manager
City of Denton, Texas
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