Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Affordable Housing topic
No spam. Unsubscribe anytime.
Council approves support for Waterford at Spencer Oaks tax-credit rehabilitation and bond financing, 6-1
Summary
Council approved a resolution of no objection and authorized multifamily revenue bonds to enable a 4% low-income housing tax-credit rehabilitation of Waterford at Spencer Oaks, a 208-unit senior affordable complex, in a 6-1 vote Aug. 19.
Denton city council voted 6-1 Aug. 19 to approve a resolution of no objection and to permit the issuance of multifamily housing revenue bonds for a 4% Low-Income Housing Tax Credit rehabilitation of Waterford at Spencer Oaks, a 208-unit senior affordable complex whose current affordability covenants are expiring.
Project and finance
The developer proposes a full rehabilitation of the existing complex and a new 4% tax-credit allocation (the non-competitive federal 4% program relies on tax-exempt multifamily bonds). As part of the award process the project needs a local sponsoring government's approval to enable tax-exempt bond financing. The developer and staff said the project would use a capital stack that combines bond proceeds, seller financing, deferred developer fee and tax-credit-equity investment to fund roughly $17 million in rehabilitation capital, with a total project budget listed in the application materials.
Local benefits and agreements
Council members asked whether local community development organizations would share in developer benefits. Staff described ongoing talks: the Denton Affordable Housing Corporation (DAC) and the regional Development Corporation of Tarrant County (a CHDO and current sponsor) have worked on a preliminary cooperative agreement that could return technical assistance and some program benefits to Denton. DAC representatives testified they will pursue capacity-building to administer similar projects in future.
Council discussion and vote
Councilors who supported the resolution emphasized the immediate effect of preserving deep affordability for seniors (the project will retain its current mix of 50%/60% AMI units according to the application). Members voting against noted questions about how much economic value would remain tied to local Denton organizations versus a regional CHDO. The motions passed 6-1.
Why this matters
The decision preserves hundreds of deeply affordable senior units in Denton and enables the developer to pursue tax-exempt bond financing and tax-credit equity needed for the rehab. The council asked staff to return with updates on the cooperative agreement and details on how project-related benefits will be shared with Denton organizations.
Speakers quoted: "Our board is really focused on continuing affordability," said Charlie Price of the Development Corporation of Tarrant County; DAC's Carrie Boggess said the organization will pursue technical assistance and capacity building with developer support.
Ending note: Staff will report back on the exact terms of the contribution/cooperative agreement that describe how technical-assistance funds and other benefits will be directed to Denton organizations.
