The Housing and Community Development Department (HCD) recommends adoption of a Resolution approving the issuance and sale by Houston Housing Finance Corporation (the “Issuer”) of tax-exempt revenue bonds or notes to finance the acquisition, rehabilitation, and equipping of a 168-unit residential rental development to be known as Coolwood Oaks Apartments, located at approximately 777 Coolwood Drive, Houston, Texas 77013 (the “Project”).
On or around September 24, 2025, the Issuer’s Board of Directors (the “Board”) intends to adopt a resolution to authorize the issuance, sale and delivery of one or more series of tax-exempt bonds or notes in an aggregate principal amount not to exceed $27,000,000.00 (the “Obligations”). The proceeds of the Obligations will be loaned to Coolwood Oaks Preservation LLC (the “Borrower”) to provide financing for the Project. The Obligations are special limited obligations of the Issuer, payable solely from the revenues of the Project, and neither the faith and credit, nor the taxing power, of the City of Houston are pledged to their repayment.
The Project involves low-income Housing Tax Credits and will be subject to long-term affordability and continuing oversight by the Texas Department of Housing and Community Affairs. Further, 100% of the units in the Project will be reserved for tenants earning not more than 60% of local area median income.
The Obligations are exempt from federal income tax, and pursuant to Section 394.905, Texas Local Government Code, because the Houston Housing Finance Corporation will own fee title to the land on which the Project is located and equitable title to the improvements comprising the Project, which will also be exempt from ad valorem taxes.
Section 147(f) of the United States Internal Revenue Code of 1986, as amended (the “Code”), and the Issuer’s articles of incorporation and bylaws require the Issuer to obtain the approval of the City of Houston as the local jurisdiction wherein the Project is situated before the Obligations can be issued.
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Michael Nichols, Director