Up to $65 million in mortgage revenue bond capacity sought by the city's housing finance corporation would be handed to the state housing agency to fund home loans, under a consent item on the Dallas City Council's agenda Tuesday.
The resolution would let the Dallas Housing Finance Corporation delegate its authority to issue qualified mortgage revenue bonds, up to $65 million, to the Texas Department of Housing and Community Affairs. The state agency would administer the money through the Texas Homebuyer Program. The council would also approve an assignment agreement transferring the corporation's bond reservation to TDHCA.
Where the $65 million comes from
According to the resolution, the housing corporation's board voted June 9 to apply for a $65 million reservation for mortgage revenue bonds and, the same day, voted to delegate its bond authority to TDHCA. The Bond Review Board has issued, or is expected to issue, that reservation from the state's annual ceiling for such bonds.
Because the city created the corporation, state law requires the council to sign off before the reservation can be assigned.
Who would owe the money
The resolution is explicit that any bonds TDHCA issues with the reservation would be the state agency's obligations alone. They would not be a debt of the city or its housing corporation, and bondholders could not be repaid from city taxes or revenue. The agenda lists the item as having no cost to the city.
