Title
Conduct a Public Hearing to Consider/Discuss/Act on a Resolution of the City Council of the City of McKinney, Texas, Determining No Objection to the Application of the "Lakes of Eldorado" to the Texas Department of Housing and Community Affairs (TDHCA), for 4% Tax Credits for the Rehabilitation of Multi-Family Units Within the Project
Summary
MEETING DATE: June 17, 2014
DEPARTMENT: Housing & Community Development Department
CONTACT: Cristel Todd, Affordable Housing Administrator
RECOMMENDED CITY COUNCIL ACTION:
· Approve Resolution
ITEM SUMMARY:
· Norstar Lakes of El Dorado, LLC has applied to TDHCA for 4% tax credits for the rehabilitation of 220 existing multi-family units that are located at 1400 Eldorado Parkway, named the Lakes of Eldorado, in the City of McKinney, Collin County, Texas.
· Norstar Lakes of El Dorado, LLC has submitted an application to the Texas Department of Housing and Community Affairs (TDHCA) for 2014 4% Housing Tax Credits for the rehabilitation of the Lakes of Eldorado.
· The project is a proposed rehabilitation of the existing garden style two-story, brick and hardy side wood frame buildings. No additional units will be added.
· Proposed Improvements include: full interior rehabilitation with replacement appliances, flooring, window coverings, faucets, sinks, light fixtures, hardware.
Exterior rehabilitation will include exterior painting, replacement of deteriorated carpentry, replacement of sign package, exterior lighting, HVAC replacement, irrigation and landscaping improvements, parking lot improvements, sidewalk improvements, drainage and erosion control, broiler replacements.
· Norstar Lakes of El Dorado, LLC is asking for a Resolution of No Objection from the City of McKinney, for the application submitted to TDHCA for 4% tax credits.
BACKGROUND INFORMATION:
· The Lakes of Eldorado is a 220 unit Garden Style apartment project located in McKinney, Texas on 10 acres at 1400 Eldorado Parkway.
· Built in 1995, there are 14 two-story apartment buildings with one clubhouse, two laundry centers, 44 garages, two swimming pools and one playground.
· This property has been zoned to allow multi-family uses since 1995.
FINANCIAL SUMMARY:
· Currently Lakes of Eldorado is 95% occupied and in full compliance with TDHCA.
· Currently the project is operating under the Low Income Tax Credit Program with 100% of the households qualified at 60% Area Median Income.
· The applicant is applying for 4% Tax Credits through TDHCA to rehabilitate the 19 year old property to sustain the affordable housing project.
· Estimated total cost of project is $17,635,433
· The applicant has submitted an application to the McKinney Housing Finance Corporation (MHFC) to apply for allocation of Private Activity Bonds to the Texas Bond Review Board in the amount of $11,000,000 in connection with qualified residential rental housing.
BOARD OR COMMISSION RECOMMENDATION:
· The McKinney Housing Finance Corporation (MHFC) passed an Inducement Resolution with the respect to the Lakes of El Dorado Apartment project at a regular scheduled board meeting on May 9, 2014.
· The McKinney Housing Finance Corporation (MHFC) does not object to the proposed project.