Title
Consider a resolution approving the issuance of tax-exempt obligations by The Mesquite Housing Finance Corporation to finance the acquisition and construction of Torrington Briarwood by Torrington Briarwood, LP.
Body
On October 7, 2024, the Mesquite Housing Finance Corporation (HFC) unanimously passed a bond inducement resolution authorizing an application for up to $50 million in private activity bonds with the Texas Bond Review Board (TBRB) to finance a portion of a proposed 313-unit affordable multi-family rental housing development to be located at 23701 LBJ Freeway in Mesquite known as Torrington Briardwood. On January 14, 2025, the TBRB issued a Certificate of Reservation (Docket Number 5291) accepting Torrington Briarwood’s bond application filing and reserving $50 million in private activity bond allocation to the HFC for financing the proposed development.
Under the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), an issuer of private activity bonds must hold a public hearing, following publication of a TEFRA notice, to give the public an opportunity to comment on a proposed private activity bond issue. This hearing was held by the HFC on April 7, 2025, following the March 27, 2025, publication of the TEFRA notice.
Section 147(f) of the Internal Revenue Code requires approval of the bond issue by the City Council following the TEFRA hearing, and passage of this proposed resolution will provide Council approval of the bonds in an amount not to exceed $50 million. It should be noted that the private activity bonds issued by the HFC will never constitute an indebtedness or general obligation of the City but are “conduit” obligations of the City payable solely from the revenues generated by the development, and no City funds will be used.
Recommended/Desired Action
Staff recommends approval of the resolution.
Attachment(s)
Resolution
Texas Bond Review Board Certificate of Reservation
TEFRA notice
Drafter
Ted Chinn
Head of Department
Ted Chinn