A 420-unit apartment community planned near the UNT Dallas DART station would be owned by a city-created corporation and leased to its developer for 75 years, taking the land off the property tax rolls, under a deal the Dallas City Council is scheduled to vote on Wednesday.
The consent agenda item would let the Dallas Public Facility Corporation acquire, develop and own University Hills at 1910 E. Wheatland Road in District 8, then lease it to UH Multifamily Development 1, an affiliate of Hoque Global Partnership and Anchor Capital Partners.
Because property owned by a public facility corporation is exempt from property taxes, the city estimates it would give up about $3.66 million in general fund revenue over 60 years, a long-range projection the staff report describes as speculative.
Who could rent there
Half the units would be income-restricted. The staff report says 42 apartments would go to households earning at or below 60% of the area median income, 168 to households at or below 80%, and 210 would rent at market rates.
City staff put the 60% to 80% range at roughly $49,320 to $65,700 a year for a single person and describe the target as workers such as teachers, first responders and health care staff who earn too much for tax-credit housing but would struggle with market rents.
Listed rents run from $1,260 for a 598-square-foot one-bedroom at the 60% or 80% level to $2,250 for a market-rate three-bedroom. Of the 420 units, 280 would be one-bedrooms, 128 two-bedrooms and 12 three-bedrooms.
The two-phase project sits on about 7.1 acres at the northwest corner of Camp Wisdom Boulevard and University Hills, part of a 10.2-acre master-planned development inside the University Hills tax increment financing district.
The money
Total development cost is projected at about $85.3 million, financed with a $76 million mortgage loan and about $9.3 million in developer and investor equity. The corporation would collect a $500,000 structuring fee at closing, a $750,000 general contractor fee, lease payments starting at $360,000 a year and rising 3% annually once the property stabilizes, and a share of sale proceeds.
