10 - SENIOR AFFORDABLE HOUSING REQUESTItem No. 10
memorandum
TO: Mayor & City Council
FROM: John Godwin, City Manager
SUBJECT: SENIOR AFFORDABLE HOUSING REQUEST
DATE: February 1, 2016
BACKGROUND: Brownstone, a development company out of Houston, is proposing
construction of an approximately 80 unit rental housing community that would serve renters
aged 55 and up. Like the two developers that addressed the council last month, the Paris Senior
Village would use tax credits to provide affordable housing to a percentage of its tenants. Due to
rules and regulations of the tax credit program, like the others this development is proposed to be
in east Paris, specifically a 6.18 acre tract at the southeast corner of Sunrise Drive and 42nd
Street.
STATUS OF ISSUE: Representatives of the developer will be present to provide details and
answer questions about their plans and proposals. Tax credit projects must have the support of
the local governing body through a resolution approved by the city council to receive approval
by the TDHCA. This will also be an opportunity for the council to receive public input.
BUDGET: NA
RECOMMENDATION: Receive input and approve or disapprove a resolution of support.
Draft
Resolution No.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PARIS, TEXAS IN SUPPORT OF THE BROWNSTONE GROUP,
INC.'S APPLICATION TO THE TEXAS DEPARTMENT OF
HOUSING AND COMMUNITY AFFAIRS (TDHCA), AND THE
PROPOSED DEVELOPMENT OF PARIS SENIOR VILLAGE TO
BE LOCATED AT THE SOUTHEAST CORNER OF SUNRISE
DRIVE AND 42ND STREET NE; APPROVING THE REQUEST
FOR A de minimis CONTRIBUTION FOR DEVELOPMENT OF AN
80 UNIT RENTAL HOUSING COMMUNITY FOR ADULTS AGED
55 AND UP; MAKING OTHER FINDINGS AND PROVISIONS
RELATED TO THE SUBJECT; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, The Brownstone Group, Inc. has proposed a development for
affordable rental housing for adults aged 55 and up to be located at the southeast corner
of sunrise Drive and 42"d Street NE as a new 80 unit rental housing community in the
City of Paris, Texas; and
WHEREAS, The Brownstone Group, Inc. has communicated that it intends to
submit an application to the Texas Department of Housing and Community Affairs
(TDHCA) for the 2016 Housing Tax Credits for the development of Paris Senior Village;
and
WHEREAS, in accordance to Section 11.9(d)(2) of the 2016 Qualified
Allocation Plan, the aforementioned application by The Brownstone Group, Inc. requires
a resolution voted on and adopted by the governing body expressly setting forth that the
City of Paris supports the Application and Development of Paris Senior Village, an 80
Unit Rental Housing Community for Adults aged 55 and up to be located at the southeast
corner of Sunrise Drive and 42' Street NE; and
WHEREAS, The Brownstone Group, Inc. has requested a de minimis
contribution for the development of Paris Senior Village as a commitment of
development funding from the City of Paris, Texas.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PARIS, TEXAS, THAT:
Section 1. The findings set out in the preamble to this resolution are hereby in all
things approved.
Section 2. The City Council of the City of Paris, Texas hereby confirms that it
supports the development by The Brownstone Group, Inc. of the proposed Paris Senior
Village to be located at the southeast corner of Sunrise Drive and 42nd Street NE at its
regular City Council Meeting on February 8, 2016.
Section 3. That the City Council of the City of Paris, Texas, hereby approves The
Brownstone Group, Inc.'s request for a de minimis commitment.
Section 4. That this resolution shall be effective from and after its date of
passage.
PASSED AND APPROVED this 8th day of February, 2016.
A.J. Hashmi, M.D., Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, Interim City Attorney
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Southeast Corner of Sunrise Or and 42"d St.
Faris, 7X 75462
Ai artm_e_M UT i' nulni
Deveropment Summary
r �
Br W7-n
A ne
John Godwin, City Manager
City of Paris
135 SE 1St Street
Paris, TX 75460
6517 Mapleridge
Houston, TX 77081
T. 713.432.7727
F 713.432.0120
January 19, 2016
Re: Senior Housing Development in Paris, Texas
Dear Mr. Godwin,
The Brownstone development team ( "Brownstone ") is proposing to develop an approximately 80
unit rental housing community in Paris, Texas that targets the city's elderly population. The
following is a summary of the proposed housing development and request for support from the
City of Paris.
I. Proposed Development: Paris Senior Village
Paris Senior Village will be a senior apartment community comprised of no more than 80 units.
As developers, we have contracted to purchase approximately 6.18 acres of land located on the
southeast corner of Sunrise Drive and 42"d Street. The site is located in close proximity to
amenities that include restaurants, churches, shopping areas and other services appropriate for
such housing. As currently modeled, Paris Senior Village will consist of 1- bedroom/1 -bath units
and 2- bedroom /2 -bath units that will appeal to various senior income levels.
Paris Senior Village will comply with all applicable accessibility standards and Brownstone
plans to affirmatively market to retired veterans and seniors through direct marketing. The
proposed development will include common and unit amenities that are tailored to meet the
needs of its elderly tenants.
The common amenities may include:
• full perimeter fencing
• gazebo w /sitting area
• furnished fitness center
• business center and mail room
City Manager
January 19, 2016
• furnished community center with enclosed community sun porch
• green amenities that promote energy and water conservation
• entertainment areas
• barbeque grills
• outdoor recreation areas
• library and computer room
• laundry room
The unit amenities may include:
• covered entries
• nine foot ceilings in the living room and all bedrooms
• ceiling fixtures in all rooms
• ceiling fans in bedrooms
• laundry connections
• storage rooms and closets
• covered patios
• high speed internet connections to all units
• energy star or equivalently rated kitchen appliances
• microwave ovens
• self - cleaning ovens
• refrigerators with icemakers
The estimated total cost of the development will be approximately $10,000,000.00.
II. Incomes of the Development
The income levels for the rent restricted units are based on the area medium income (AMI) in the
Paris area. The development contains set - asides for a variety of income levels that may include
30% AMI, 50% AMI, 60% AMI as well as Market Rate (non- income restricted) units.
Brownstone will rent 80 units at Paris Senior Village based on the following:
Unit Distribution by Income Level
Five (5) Units at 30% AMI
Twelve (12) Units at 50% AMI
Forty-three (43) Units at 60% AMI
Twenty (20) Units at Market Rate
OA
City Manager
January 19, 2016
Estimated Rent Limits on Rent Restricted Unit and Income Level
1 Bedroom 2 Bedroom
30% AMI
$207
$ - - --
50% AMI
$403
$470
60% AMI
$502
$675
Market Rate
$700
$850
Estimated Income Level Limits
AIVII 70
1 PERSON
2 PERSON
3 PERSON
4 PERSON
30
$ 11,010
$ 12,600
$ 14,160
$ 15,720
50
$ 18,350
$ 21,000
$ 23,600
$ 26,200
60
$ 22,020
$ 25,200
$ 28,320
$ 31,440
III. Experience of Development Team:
The Brownstone development team is a family owned and operated real estate development
group that was formed in 1971 by William L. ( "Bill ") Brown. Over the past 40 years Bill's
affiliated companies have planned, developed and constructed over 12,000 housing units. Over
4,000 of those units have been developed in partnership with Bill's three sons (Jed, Doak & Wil)
and Jeremy Mears since 2005.
The Brown family members and Jeremy Mears have worked diligently to create a team of real
estate professionals for development and construction. Brownstone is served by capable project
managers, construction managers, project superintendents, and office staff. The complete group
of partners, employees and consultants bring extensive experience and broad knowledge to the
Brownstone group's team. Brownstone intends to use these relationships and quality design in
the creation and construction of Paris Senior Village. Please see attached resume describing the
Brownstone development team and portfolio of its recent senior developments.
3
City Manager
January 19, 2016
IV. Support Request:
The Brownstone development team will form a limited partnership called LHA Paris Senior
Village, Ltd. LHA Paris Senior Village, Ltd. will be submitting an application to the Texas
Department of Housing and Community Affairs ( "TDHCA ") for an allocation of 2016 9%
housing tax credits in connection with the proposed development of Paris Senior Village. The
tax credit applications are due into TDHCA on or before 3/01/2016. TDHCA is the agency in
Texas that administers several federally funded housing programs including the housing tax
credit program. The tax credit application and selection process for housing tax credits is highly
competitive. Without the award of housing tax credits, the Brownstone development team will
not be able to move forward with Paris Senior Village. The application process is point based.
Those applications receiving the highest score are awarded the housing tax credits.
Important point -based categories in the application scoring process include both a commitment
of support from the City of Paris and a small contribution of value for the benefit of the
development that is confirmed in a brief letter. The commitment of support can be a simple
resolution (See attached, "Resolution Example "), and regarding the contribution, we envision it
to be di minimus in value, such as a reduction in the permit application fee for the benefit of the
development that does not exceed $100. (See attached, "Contribution Letter Example ").
Ultimately, the Brownstone development team appreciates the opportunity to submit this project
summary and support request, and looks forward to working with the City of Paris in developing
a quality senior housing development in your community.
Very truly yours,
Brownstone Affordable Housing, Ltd., a Texas limited
partnership
By: Three B Ventures, Inc., its general partner
By:
Jeremy t4m6s, Vice President
12esofution Ei(ampfe
RESOLUTION
NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS
SUPPORTING THE PROPOSED PARIS SENIOR VILLAGE HOUSING COMMUNITY
FOR SENIOR CITIZENS; APPROVING AN APPLICATION FOR LOW INCOME
HOUSING TAX CREDITS TO FINANCE SUCH PROJECT; PROVIDING AN IN KIND
CONTRIBUTION FOR SUCH PROJECT AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, LHA PARIS SENIOR VILLAGE, LTD. and its affiliates (the "Applicant ")
propose to build an affordable housing development with up to 80 residential units (the
"Housing ") in the City of Paris, to house senior citizens; and
WHEREAS, the Housing is expected to be located at the southeast corner of Sunrise Dr.
and 42nd Street and is expected to be named "Paris Senior Village "; and
WHEREAS, the Applicant has submitted a pre- application (TDHCA No.16201) and
proposes to submit a final application for financing for the Housing, including Competitive 9%
Housing Tax Credits ( "Tax Credits ") from the Texas Department of Housing and Community
Affairs; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF PARIS, TEXAS THAT:
SECTION ONE. The City Council of the City of Paris hereby confirms its support for
the development and construction of the Housing described above and that this formal action has
been taken to out on record the opinion expressed by the City on this date.
SECTION TWO. The City Council of the City of Paris hereby approves the Applicant's
application for Tax Credits from the Texas Department of Housing and Community Affairs and
supports an award of Tax Credits for the Housing pursuant to the Qualified Allocation Plan of
the Texas Department of Housing and Community Affairs.
SECTION THREE. In accordance with 10 Texas Administrative Code § 11.9(d)(2), the
City hereby commits to an in -kind contribution to the Housing in the form of an in -kind
contribution such as a fee waiver, grant or contribution of other value for the benefit of the
Housing.
SECTION FOUR. For and on behalf of the City Council, [name, position of
authorized person] is hereby authorized, empowered, and directed to certify these resolutions to
the Texas Department of Housing and Community Affairs.
SECTION FIVE. This Resolution shall become effective immediately upon its passage.
PASSED AND APPROVED this day of 2016 at a Regular Meeting of the
City Council of the City of Paris, Texas.
ATTEST:
City Secretary
CITY OF PARIS
Mayor
Contri6ution Getter EjCampk
CITY OF PARIS LETTERHEAD
January , 2016
L14A Paris Senior Village, Ltd.
Attn: Mr. Jeremy Mears
404 E. Worth Street
Grapevine, Texas 76051
Re: Paris Senior Village — Commitment of Development Funding
To Whom It May Concern:
The City of Paris hereby agrees to provide LHA Paris Senior Village, Ltd. a loan, grant,
reduced fees or contribution of other value in the amount of $100.00 for the benefit of Paris
Senior Village.
Sincerely,
By:_
Name:
Title:
Aeriaf 9ll aps
s. �° ..
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C4:''i - +
Resume /Tortfoho
stone
Since 2005, the Brownstone Companies have
contracted for more than $380 miffion doffars
worth of residentiaf devefopments throughout
Texas and the Southeast, consisting of 44
devefopments surpassing 4,500 units.
Brownstone surrounds itself with capa6fe
professionals in the reaf estate industry and
works cfosefy with Leslie Yfoffeman, its finance
specialist.
Brownstone Construction, Ltd
BrownstoneAfforda6fe Mousing, Ltd.
Brownstone Architects & Atnners, Inc.
Leslie xolleman &Associates, Inc.
stone
` iZam L. Brown was born and raised in Midland,
4 'Iew.9fegraduatedfrom 11idfand.?fighSchoo� received
his Bachelor of Arts (Degree in Architecture from the
F-T university of Arizona in 1966, and his Wasters of
Architecture from Rice Vniversity in 1967. In 1971
Wfl am L. Brown COO) formed his first real estate
company. Over the past 40 years Bill's affiliated
companies have planned, developed and constructed over
11,000 housing units. mfr. Brown's eom6inedeVertise as
an architect, planner and builder has created a
pfeasurabfe blending of arefritecturafdesign, sensible land
planning, landscaping, and utilization and preservation
Of natural environments.
JedA. Brown joined the Brownstone companies in ,tune of 2007 after working for a mixed -use
development company in Laredo, Texas for nearly 15 years. ,led offices in Laredo, and spends much
of his time overseeing projects throughout centrafandsouth 7eTas. Yfis focus is on site development
planning forsingfe andmulti fami y residentialalong with commercia(development. Jedhas taken
the feadfor Brownstone on abatement anddemofition projects as wellas Brownstone's marketing
(d�p and pu6fic relations. ,led received his Bachelor of Arts in 911arketing from the university of Texas
at Austin in 1991..1fe completedgraduate business scftooflevelcourses in marketing, management
and finance at Laredo State university (now known as Texas Az�m International university)
during 1991 and 1992 before entering the wor� force on a fulf -time basis in 1993. A veteran in real
estate development and construction, prior to joining Brownstone,ledwas the project managerfor
commercial offices, industrial warehouses and residential homes. Me was also the project manager
on over a dozen su6divisions including hundreds of acres and lots.
St
(DoaktD. Brown joined the Brownstone team on a fulltime basis
in 2009. Yfe is responsible for legal development and finance
matters for the Brownstone companies. Doak came to the
Brownstone companies from the law firm of Campbell & Riggs,
Q P.C. in 7fouston, where he was a shareholder specializing in
transactional real estate law. Yfe was Bro7.tmstone's outside
counsel for many years and was involved in all facets of the
Brownstone companies' real estate transactions. Doak received
his Bachelor of Arts in Economics from the 'University of Texas
g at Austin in 1995 and his Doctor of jurisprudence from the
'University of 9fouston Law Center in 1999. Yfe was licensed to
practice law in the State of Texas in 1999. Doakis a member of
the real estate section of the TaiCas State Bar.
`Wif e Brown brings his expertise in construction management to the Brownstone Group. Tf if
earned his Bachelor of Science in Construction Science from TeacasAGt 'University in 2000. Wif
spent four years working with national development companies that specialized in multi family
4 housing. During those years, he supervised the construction of over 1, 000 units, and managed all
aspects of the construction process. In 2005, `Wit joined Brownstone with the goal of merging his
construction knowledge with the skiffs and experience of his partners. Wif's acumen in the
construction industry has served Brownstone well and he has supervised the construction of over
21 projects. 'While WNifis inereasingy involved in the development aspects of Brownstone's mufti-
family business, he continues to focus his skiffand energy primari y on maintaining the construction
excellence that others have come to expect from Brownstone.
Jeremy Mears 6rings more than 17 years of successful real estate, construction, and
development eTpeiience to the Brownstone companies. In 1996, Jeremy earned his
Bachelor of Science in Construction from the `University of Louisiana at Monroe.
Jeremy spent the first eight years of his career working with national luzur mufti-
�L°
fami y developers throughout Daffas, Austin, and San Antonio. During these years
Jeremy speciafa -ed in Construction Management and Estimating for over 3,000
apartment units. In 2004, Jeremy startedhis own company calledMears Devefopment.
This company worked in the development and construction of new communities, and
a also the reha6ilitation of existing apartment communities throughout Texas. In 2006,
he joined forces with the Brownstone companies to focus on townhome andsingfe-
fami y developments in San Antonio. Recently, Jeremy opened an office for the
Brownstone companies in Monroe, Louisiana to focus on multi famiy development
and construction in Louisiana, Mississippi and other near6y states. Thais office will
be focusing on market rate multi family developments and affordable multi famil
developments financed 6v housina tax credits and historic tax credits.
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Lesfse.7foQeman is an independent consultant speciaL -ing in
the development andfinancing of multi family housing. Leslie
handles alffacets of deveropmentfinancing, including but not
limited to project feasibility analysis, budget preparation,
interface with debt and equity partners, draw administration
(� and partnership accounting services. Prior to her consulting
career, she worked in the banking industry for 15 years and
also with the Texas Department of 9fousing and Community
Affairs as the Manager of Real Estate Analysis. From 1997
to tfae present, Leslie has assistedin securingfinancingfor over
forty developments.
Residential Communities Since 2005
VAWRCOWYMVMaX
Canton Village (80 units) Canton, TX
Cibofo Crossing (236 `Units) Laredo, TX
Austin Village (30 units) Bastrop, LA
La Esperanza De(R,io (60 Vnits) Wjo Grande City, 'IX
La Esperanza Def Afton (80 Vnits)Afton, TX
(PrestonApartments (40 `Units) Magna a, AR
Sunset Terrace SeniorVilfage (80 Vnits) (Pharr, ZX
TU DEVELOME`NT
Madison Oaks (60 `Units) Winns6oro, TX
9fenderson Vi(lage (80 'Units) ifendersoti, `IX
Canton OighApartments I andII (80 Units) Canton, MS
Casa Verde (152 units) Laredo, 27C
(Pasadena (294 Vnits) (Pasadena, TX
St ne
COMBLEMD
San Diego CreekApartments (72 Vnits)Afce, SIX
San C3a6rieC Senior Tillage (100 ()nits) Georgetown, 'IX
Eastedng Vi((age (48 Vnits)ACce, `IX
7(iomas 9Vinke Senior VMage (80 'Units) Victona, TX
&tama Vi((age (128 units) McAlfen, 4X
Guo'breeze (Plaza II (148 `Units) (Tort Arthur, ADC
B(ue6onnet Senior Vilfage (36 2)nits)Afamo, TX
Wrtama'VilCage (Phase If (74 ()nits) McA((en,'IX
Sunset Terrace (100 Vnits) (Pharr, TX
Bluffs Landing Senior Village (144 Vnits) mound lick DC
GuoEreeze (aza I (86 Vnits) Port Arthur, ADC
Creekside'Villas (144 'Units) Buda, TX
Villas at Beaumont (36 Vnits) McAlfen, TX
BeariandSenior'Vilfage (126 units) (Pead(and,, 2X
oarkview Terrace (100 units) (Pharr, TX
J eights at Corraf(80 `Units) Xingsvif(e, TX
Belmont Senior'ViCfage (192 units) Leander, TX
Citrus Gardens (148 units) Brawns•rnlfe, TX
Casa wjcardo (60 units) Kingsviffe, TX
Menit Lakeside (176 Vnits)Scfrertz, 'JX
Shiloh Crossing (156 Vnits) Laredo, TX
Brae6urn'Vilfage (140 `Vnits).9fouston, TX
Gary Street Village (35 Vnits)Wnns6oro, LA
Aeolian SeniorApartments (60 Vnits) Vieks6urg, MS
Bfooms Apartments (30 `Units)Talrllah, LA
The Weserve at Traditions (240 'Units) Bryan, 4X
Merritt Legacy (208 ()nits) Leander, SIX
Carr Centra(Apartments (72 Vnits) Vicks6urg, MS
Guff CoastArrns (160 `Units) 9fouston, SIX
Elm Street ViC(age (34 Vnits)Tallttlafi, LA
Wiver-BankVillage (152 Vnits)Laredo, TX
(GENERAL CONTRACTOR ONLY)
San GabriefSeniorViffage (100 units) Georgetown, TXICompfeted2007(9% LJOTC)
.........................
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(PearlandSenior Viffage (126 `Units) Pearland, ` )CI Compfeted 2011 (9% LIOTC)
(GENERAL CONTRACTOR ONLY)
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Belmont Senior Village (192 Vnits) West Leander, 2X1 Completed 2012 (9 % LIOTC)
(GENERAL CONTRACTOR ONLY)
BCuff's Landing Senior Viffage (144 Un its) Round Rock TX/ Compfeted 2009
(Bluebonnet Senior Village (36 vnits)Alamo, 2X1 Completed 2009 (9% LINTc)
Creekside villas Senior Village (144 V nits ) Buda, ZX/ Completed 2011
2%iomas Xinke Senior Viffage (80 Vnits) Victoria, 2X 1 Compfeted-2008 (9% LI TC)
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Mv- M',
Aeofan SeniorApartments (60 Vnits) Vicksburg, WS /Completed2013 (�fistmic Rehab)
� 1,l 11 - - - -- - - - - - - --
CONTACT:
Jeremey Mears, Alice 4Wsiderit
(BrownstoneAfforda6Ce.7fousing, Ltd.
LA, MS, ZYand,4OWSgionaCOffice)
1000 LouisvilTeAvenue
Monroe, LA 71201
,jeremy@thebrou4utonegroup.net
(318) 855 -5215 office
Daak Arm", 4-lice Bresident
BrownstoneAfforda6feMousing, Ltd.
7X(7fome Office)
6517 Mapferidge
9fouston, 4X 77081
cloak@ thebrownstonegroup. net
(713)432-7727e4. 208