Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Affordable Housing topic
No spam. Unsubscribe anytime.
Housing Finance Corporation approves participation in sale of Costa Tarragona apartments, preserves 15 years of affordability
Summary
The City’s Housing Finance Corporation approved actions to facilitate the sale of Costa Tarragona 1 & 2 (346 LIHTC units) to a purchaser that will extend affordability at 60% AMI for an additional 15 years. The anticipated sale price is $17.1 million; the HFC expects modest net proceeds and continued affordability covenants.
Corpus Christi — The Corpus Christi Housing Finance Corporation voted to authorize continued HFC participation and related ground-lease amendments to enable the sale of Costa Tarragona 1 and 2, two Low‑Income Housing Tax Credit (LIHTC) properties totaling 346 units.
Jennifer Buxton, assistant director of planning and economic development, told the board the two properties are at the end of their initial tax‑credit investor period and the special limited partner triggered a sale in July 2024. The buyer is identified as Costa Tarragona Apartments LLC, a group affiliated with HKSK Corp and related entities. The sale price presented to the board was $17,100,000.
John Bell, who represented the Housing Finance Corporation in the presentation, outlined the transaction structure: the HFC will form a single new entity to hold the project and will amend ground leases to maintain the property tax exemption structure and preserve affordability. Bell said the deal includes prepayment of outstanding multifamily revenue bonds and that payoff proceeds will be handled through an escrow arrangement with the bond trustee; after bonds are paid off he estimated roughly $1.2 million (net of closing adjustments) would remain to the HFC.
Buxton and Bell said the buyer will honor extended‑use affordability covenants, keeping all units at or below 60% of area median income for the negotiated extended period (roughly 15 years). The HFC approved two related resolutions authorizing the participation and approving the amended and restated ground lease and bond prepayment terms.
Why it matters: The sale preserves an extended affordability period for 346 units of workforce and lower‑income housing in the city’s portfolio while allowing the HFC to unwind bonds and receive modest proceeds for the corporation. Staff said the transaction is common when LIHTC investors exit at the end of their compliance period.
What’s next: Closing is anticipated pending Texas Department of Housing and Community Affairs (TDHCA) approval; staff said anticipated closing would be near year‑end with bond payoff to follow shortly after.
