Multifamily Private Activity Bond Program Success Stories

Through our Multifamily Private Activity Bond Program, TSAHC uses statutory authority allocated annually by the state of Texas to issue tax-exempt bonds. These are used to help housing developers construct or preserve affordable multifamily rental units throughout Texas. Since 2001, TSAHC has issued more than $600 million in bonds that are purchased by private investors and are not debt of the state.

To view bond documents for properties and portfolios funded by TSAHC's Private Activity Bond Program, please visit the EMMA website

  • Scharbauer Flats

    Scharbauer Flats | Midland, Texas

    Located in Midland, Texas, Scharbauer Flats is a 300-unit apartment community that primarily serves households earning up to 60% of area median income. TSAHC issued upwards of $40 million in private activity bonds to provide the main source of capital for the approximately $73 million development.

    As one of Texas’ underserved housing needs, small urban markets are a priority for our multifamily tax-exempt bond program. It’s a greater emphasis for the Midland market as continued job growth in oil and gas field exploration along with expanded wind energy have driven up the area’s income. Scharbauer Flats is in a census tract where the area median income is $97,782, well above the state’s median of $67,344.

    While the area has benefitted from a sustained economic boom, it’s come at the expense of available and affordable housing options. Median rents for the area average $1,179 compared to the state’s average of $952, and construction of new income-restricted units simply hasn’t kept pace with demand. This underscores the need for Scharbauer Flats and other comparable communities to address the area’s dire need of available and affordable housing options.

  • Parmore Arcadia Trails

    Parmore Arcadia Trails | Balch Springs, Texas

    Parmore Arcadia Trails is a 185-unit apartment complex that serves low and very-low income seniors in Balch Springs, Texas. 

    The community was developed by TDI Affordable Development, and features 111-units for households at 60% area median income or below. 

    The total development costs for Paramore Acradia Trails is $32.6 million. In 2021 TSAHC approved $27 million in Private Activity Bonds to provide the bulk of the financing for the project with the remaining funding coming from tax credit equity and deferred developer fees. As the development is for seniors, it meets one of TSAHC's targeted housing needs within our private Activity Bond Program to meet the needs to underserved Texans. The apartment community is located within a new 173-acre master planned community named after Arcadia Trails with access to shopping and job centers. 

  • Fawn Ridge

    Fawn Ridge | Woodlands, Texas

    Located in The Woodlands, Texas, the Fawn Ridge community is a 120-unit apartment complex redeveloped by Envolve Community Management through TSAHC’s Private Activity Bond program. The Woodlands is located 30 minutes north of downtown Houston, and the apartments are located in a neighborhood with a mix of multifamily and single-family homes with a commercial corridor nearby. The area has a mix of office, retail, health and service industries and resides within the Conroe Independent School District.

    Formed in 1996, Envolve has grown from one property located in central Alabama to 90 properties across nine states, with more than 10,000 rental units.

    Renovation of Fawn Ridge Apartments included window and door replacements, kitchen improvements, HVAC and electrical system upgrades and extensive exterior renovations. The total acquisition and rehabilitation costs for the development were $24.9 million, and the bulk of this financing was through TSAHC’s bond issuance with the remaining gap coming from tax credits, seller financing and a deferred developer fee.

    “We chose to work with TSAHC because of their expertise in preserving at-risk housing in markets like The Woodlands where it’s more important than ever to retain affordable housing. Bond issuances can be very complex, but the TSAHC team has a reputation for making them as smooth as possible.” - Jeff Ezekiel, President, Envolve Community Management

  • Seagraves Garden Apartments

    Seagraves Garden Apartments | Seagraves, Texas

    TSAHC awarded a $3.5 million loan and $36 million in private activity bonds to Hamilton Valley Management to acquire and rehabilitate 21 properties totaling 802 units in primarily rural communities across Texas. All 21 properties were originally financed by the US Department of Agriculture’s Section 515 program and were at risk of losing their affordability when the original affordability restrictions expired. Hamilton Valley Management preserved the affordability of the units and ensured that the existing tenants do not lose their rental assistance.

    Seagraves Garden Apartments, one of the 21 properties in the Hamilton Valley portfolio, provides 32 affordable housing units to residents earning up to 60% of the area median family income in Seagraves, Texas, a small town of 2,800 people located in Gaines County.

  • Palladium Glenn Heights

    Palladium Glenn Heights | Dallas, Texas

     TSAHC’s Board of Directors approved $18.5 million in private activity bond financing for the construction of the 270-unit Palladium Glenn Heights Apartments which opened in 2018.

     Located south of Dallas, Glenn Heights is an 11,000 person community that was ravaged by a series of tornadoes in December 2015. The Palladium Glenn Heights development helped to address the community’s housing needs in the wake of the disaster.     

      

  • Brooks Manor Apartments

    Brooks Manor Apartments | West Columbia, Texas

    In 2017, TSAHC issued $4.2 million in bonds to acquire and rehabilitate the 50-unit Brooks Manor Apartment community in West Columbia, Texas. The developer, Steele Properties LLC, completed extensive renovations and energy efficiency upgrades to each unit to improve the quality of life for residents. The Brooks Manor community is located close to several community services including government offices, a public library, grocery stores, pharmacies and banking centers.

    “We enjoy working with TSAHC on our bond-financed developments because their staff offers the expertise required to navigate complex transactions. This allows us to efficiently meet our mission of preserving and improving the affordable housing in a community.” - Paul Moore, Steele Properties, LLC

  • Woodside Village

    Woodside Village | Palestine, Texas

    TSAHC awarded housing developer DHI $5.75 million in private activity bonds to rehabilitate Woodside Village, a 92-unit apartment complex in Palestine. Bond financing from TSAHC enabled DHI to renovate the interior and exterior of each building and construct a new community room for residents.

  • Palladium Midland Apartments

    Palladium Midland Apartments | Midland, Texas

    Palladium Midland Apartments is a 264-unit multifamily development located in Midland, Texas, that opened in 2016. TSAHC issued $24.7 million in tax-exempt bonds to finance the construction. The project served TSAHC’s objective to provide affordable housing in smaller urban areas.

    Since 2000, the City of Midland’s population increased by more than 25% to 120,000 at the end of 2013. While home builders and apartment developers have worked to keep pace with the rapid growth, total housing units have only increased by 17%. The excess demand for housing units is being filled through less formal development models, such as RV and mobile home parks.

    The rapid growth is also reflected in housing prices as median home values have increased from $71,400 in 2000 to approximately $160,000 in 2012. Market rents in the Midland area have increased more than 20% since 2011.

    Target rents for Palladium Midland Apartments range from $700 to $1000 for 1 to 3 bedroom affordable units. This is significantly lower than market rents anticipated to be $1,100 to $1,500 for the same unit types. That is why the Midland community welcomed the Palladium development. When initially proposed, the apartment complex received letters of support from the Mayor Pro-Tem and Chamber of Commerce, as well as a resolution in support from the City of Midland.

  • Dalcor Affordable Housing

    Dalcor Affordable Housing | Beaumont, Bryan, Dallas, Houston, Huntsville, Wichita Falls

    In August 2012, TSAHC committed $71,100,000 in bond financing to Dalcor Affordable Housing to purchase and rehabilitate six multifamily apartment complexes throughout Texas. Together these apartment communities offer 1,444 units that are affordable to low-income households.

    All six properties acquired by Dalcor in 2012 were originally constructed using the federal Low Income Housing Tax Credit program, which required that the properties remain affordable for 15 years. These properties were at the end of their required affordability period, which gave the original property owners the option to increase rents to market rate prices. By committing bond financing with strict affordability requirements, TSAHC is ensured that these properties will continue to remain affordable for the families who live there. TSAHC’s bond financing also funded necessary maintenance, repairs and improvements. To monitor these improvements, TSAHC is provides yearly Asset Oversight and Compliance inspections on all six properties purchased and rehabilitated by Dalcor.