The Housing and Community Development Department recommends adoption of a Resolution approving the issuance of the bonds as required by Houston Housing Finance Corporation’s (HHFC) Bylaws and approving the tax-exempt bonds as required by federal tax law.
HHFC provides tax-exempt and taxable bond financing for developments that provide persons of low and moderate income with quality, affordable housing. Anna Dupree Terrace LP has applied to HHFC for bond financing for the acquisition, rehabilitation, and equipping of the Anna Dupree Terrace Apartments located at 10012 Cullen Boulevard.
HHFC Bylaws and federal tax law require that City Council approve any bonds issued by HHFC and federal tax law requires that City Council approve tax-exempt bonds issued by HHFC. HHFC is therefore requesting that City Council approve the issuance of up to $12,000,000.00 of tax exempt revenue bonds. HHFC bonds 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.
Although tax-exempt bonds are exempt from Federal income tax, the property itself will not be exempt from local ad valorem taxes.
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Tom McCasland, Director