August 24, 2018 | by Katie Claflin
Categories: Affordable Housing, Multifamily Oversight, Rental Housing, Spotlight
This is the latest entry in our On the House spotlight series.
TSAHC periodically spotlights affordable housing developments across the state to help readers understand what they look like, how they are financed, and who lives there. This week we are focusing our spotlight on the Palladium Midland Apartments, a development financed by TSAHC’s Multifamily Private Activity Bond Program.
Palladium Midland Apartments, developed by the Texas Housing Foundation and Palladium USA, is a 264-unit multifamily development in Midland, Texas.
TSAHC issued $24.7 million in tax-exempt bonds to finance the construction of the project, which was completed in 2016.
The development costs totaled $36 million, with the remaining financing provided through the 4% housing tax credit program and a bridge loan from Regions Bank.
The population of Midland has increased by more than 25% since 2000. Located in the center of the Permian Basin, the resurgence of oil and gas exploration in the past few years has pushed Midland into a boom-time economy. The production of additional homes and apartment units has not kept pace with the rapid population growth, causing market rents in the Midland area to increase more than 20% since 2011.
Despite the rapid economic growth, many low-skilled workers, seniors and persons with disabilities have struggled to afford the rising housing costs. More than 8.4% of Midland residents live below the poverty line, and the ongoing need for affordable housing is significant.
Palladium Midland Apartments is directly addressing the need for additional high quality, affordable housing units in Midland. Rents for Palladium units range from $700 to $1000 for the one-, two-, and three-bedroom units, and 78% of the units are reserved for households earning up to 60% of the area median family income (AMFI). The rents are significantly lower than market rents for similar units, which range from $1,100 to $1,500.
TSAHC has received applications to finance two additional developments in Midland through our Private Activity Bond program-- the Ventura at Tradewinds Apartments and the Ventura at Fairgrounds Apartments. Both properties are being developed through a partnership between the Texas Housing Foundation and Dominium, Inc.
The Ventura at Tradewinds Apartments will provide 204 units of rental housing targeted to families earning up to 60% of the area median family income (AMFI). The Ventura at Fairgrounds Apartments will provide 276 units of rental housing targeted to families earning up to 60% AMFI.
TSAHC’s Board of Directors approved the inducement resolution (the first step in a bond transaction) for these projects at the July 2018 board meeting. Click here to learn more about these projects and other proposals currently under consideration.
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Those apartments look pretty nice.
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That apartment complex looks so good.