HFC authorizes multiple bond filings: supplement to trust, two volume-cap applications and assignment of $45 million to TDHCA

The Tarrant County Housing Finance Corporation approved several bond-related measures, including a technical amendment to a prior trust indenture, authorization to seek volume-cap allocations for two multifamily projects and the assignment of $45 million in single-family volume cap to the Texas Department of Housing and Community Affairs (TDHCA).

First, the board approved a first supplement to the trust indenture between the HFC and BOKF related to a 2022 multifamily tax‑exempt, mortgage‑backed bond financing for Gardens of Haulkham City Apartments series 2022. Board discussion explained the supplement is a routine mechanical amendment to allow cash collateral deposited during construction to be returned to the developer now that Fannie Mae has issued mortgage‑backed securities and the construction phase has concluded. Co-counsel explained the change simply provides a mechanic in the trust indenture to release collateral back to the original depositor.

Second, the board authorized submission of applications to the Texas Bond Review Board (Texas Bond Review Board) seeking volume‑allocation reservation certificates for two separate multifamily projects. One application requests a $39,000,000 allocation for a 288‑unit new‑construction project at roughly 4000 Campus Road near I‑20. The other application requests approximately $31,000,000 in volume allocation for a project near I‑35 in Rosedale (the total project cost was described as about $62,000,000). Board members emphasized these authorizations are preliminary: they permit staff to apply for volume‑cap reservation only; detailed security plans, financing terms and final approvals would return to the HFC for later action.

Third, the board authorized assigning its private‑activity volume cap to TDHCA to enable TDHCA to issue qualified mortgage revenue bonds or mortgage credit certificates for a single‑family program. Presentation by the HFC’s financial advisor (Hilltop Securities) explained the action would make $45,000,000 available to first‑time homebuyers in Tarrant County through TDHCA programs (down‑payment assistance and mortgage subsidies). Board members asked whether the HFC would later receive reports on program results; the presenter said staff would provide ongoing reports.

Votes and next steps: The board approved the trust indenture supplement and unanimously authorized staff to submit the two volume‑cap applications. The assignment of $45,000,000 in volume cap to TDHCA and the companion authorization for TDHCA to issue bonds were both approved unanimously. For the multifamily projects, authorizations do not obligate the HFC to issue bonds; they only permit staff to apply for the state allocation. If reservations are granted, the developers will return to HFC with additional steps and required security documentation.

Clarifying details: The Gardens of Haulkham City amendment concerns returning cash collateral deposited during construction after conversion to a Fannie Mae mortgage‑backed security. The Richardson Ridge application was described as requesting $39,000,000 for 288 units near 4000 Campus Road and I‑20; the Rosedale application was for about $31,000,000 of volume cap toward a roughly $62,000,000 project near I‑35. The $45,000,000 assignment involves assigning HFC’s volume cap authority to TDHCA, which would manage loan issuance under state programs.

Sources: Presentations by co-bond counsel and the HFC’s financial advisor, and board discussion.