Terrell Housing Finance Corporation adopts bylaws, authorizes bond advisers and pursues $75 million bond allocation for Terrell Family Apartments

The Terrell Housing Finance Corporation met Aug. 14, 2025, at City Council Chambers to organize the new corporation, approve initial resolutions and authorize an application to the Texas Bond Review Board for private activity bonds tied to the Terrell Family Apartments project.

Bond counsel Paul Braden of Norton Rose Fulbright told the corporation the first agenda item was the board's organizational business, including adoption of proposed bylaws and the election of initial officers. "The first item, 5.1, is the organizational meeting of the board," Braden said. He said the bylaws mirror common HFC practice and outlined proposed officers: the mayor as president, the mayor pro tem as vice president, the city secretary as corporate secretary, the city's interim manager as executive director and the director of neighborhood services as deputy executive director; a treasurer role would be filled by the city's director of finance if created in the future.

The corporation approved Resolution HFC2025-01 adopting the bylaws, establishing a corporate seal, setting the fiscal year to match the city's fiscal year, and designating the city's depository bank. Donna Renee Anderson moved approval; the corporation recorded the vote as 3-0 in favor.

The board next approved Resolution HFC2025-02 authorizing the engagement of Hilltop Securities as financial adviser and Norton Rose Fulbright US LLP as bond counsel to the corporation. Paul Braden explained that because the HFC is a separate legal entity it needs separate engagement letters; those may be signed by the mayor as corporation president or by the executive director. Ronnie Velasquez moved the engagement; Donna Renee Anderson seconded, and the vote was recorded as unanimous among those present.

The board considered but postponed action on item 5.3, local rules and regulations for receiving and approving applications for multifamily residential rental financing. Braden recommended delaying final action so the city attorney and the newly engaged advisers could review proposed changes and ensure compliance with recent legislation. Board members moved to postpone 5.3 and the motion carried.

After an executive session under Texas Government Code Section 551.071 for consultation with legal counsel, the board returned to consider item 5.4. The corporation approved Resolution HFC2025-03, an inducement resolution authorizing staff and counsel to apply to the Texas Bond Review Board for a private activity bond allocation of $75,000,000 for a qualified residential rental project to be located at 1010 and 1100 Ross Hill Road in Terrell. Paul Braden described the resolution as the next procedural step to permit filing the application; he cautioned that allocation is not guaranteed and that separate steps would follow before any bonds are issued, including negotiating an MOU or development agreement and final bond issuances that would return to the board for approval.

Austin Holmes of Dominion Development, representing the applicant, said the developer had filed an application using the draft local regulations at the city's request and that the team would continue site and infrastructure discussions with city staff, including plans for a public thoroughfare the developer would construct and convey to the city. "We are fairly confident that if we're able to get a nice application and timely, that we will receive an allocation of private activity bonds," Holmes said; he emphasized additional approvals and agreements would be required before financing or construction proceeds.

Formal actions taken at the meeting include adoption of bylaws and organizational matters (HFC2025-01), authorization to engage Hilltop Securities and Norton Rose Fulbright for bond work (HFC2025-02), postponement of the local regulations for applications (item 5.3), and approval of the inducement/application resolution for the Terrell Family Apartments (HFC2025-03). Each vote was recorded as unanimous among members present; recorded tallies for HFC2025-01 were 3-0. The board adjourned after announcements.

The corporation and staff noted that the inducement resolution does not guarantee state bond allocation; subsequent steps and negotiations with the developer and additional board approvals would be required before any bonds are sold or financing closed.