The Houston Housing Finance Corporation (HHFC) provides tax-exempt bond financing for developments that provide persons of low and moderate income with quality, affordable housing. Villa Americana Housing Partners LP has submitted an application to HHFC for bond financing for the acquisition and rehabilitation of the Villa Americana Apartments located at 5901 Selinsky.
HHFC Bylaws and federal tax law require that City Council approve bonds issued by the corporation. HHFC is therefore requesting that City Council approve a $31,000,000 tax exempt bond issue for this project. HHFC bonds and notes are not backed by the full faith and credit of the City of Houston—they are non-recourse to the City.
All units will be designated as 60% AMI and below. The HHFC financing will be leveraged with tax credit equity, senior loan, and deferred developer fee. The price per unit cost is $190,110.
Although the bonds are exempt from Federal income tax, the property itself will not be exempt from local ad valorem taxes.
The Housing and Community Development Department recommends adoption of a Resolution approving the issuance of the bonds.