Corpus Christi: TDHCA to Fund Rehab of Oso Bay Apartments
Feature Photo: Aerial perspective of the Oso Bay Apartments. Image: Google Earth/VBX graphic.
by Adolfo Pesquera
Corpus Christi (Nueces County) — A state board tasked with supporting affordable housing is expected to fund the $14 million rehabilitation of the Oso Bay Apartments.
The governing board of the Texas Department of Housing and Community Affairs, at its Jan. 14 meeting, will be following up on July 23, 2020 resolution wherein the board agreed to assist in the housing complex’s redevelopment.
The project sponsors–Oso Bay Housing Management LLC and Commonwealth Multifamily Housing Corporation of Temple, Texas–applied to the TDHCA last September for a 4% low income housing tax credit to assist in financing the rehab.
This rehab project began as an initiative of Seattle, Washington-based Vitus Group Inc.; Oso Bay Housing Management LLC is their affiliate. However, investors connected to Commonwealth Multifamily Housing Corp. have since become the majority stakeholder, according to the most recently submitted organizational chart.
The TDHCA intends to issue tax-exempt Multifamily Housing Revenue Bonds Series 2021 in an amount not to exceed $14 million. This will be tied to the board’s award of a 4% housing tax credit of $869,817. Tax credits are used to reduce lending costs, which in turn as passed along to future tenants in the form of reduced rents.
The rehab budget is about $49,000 per unit.
The loan closing date is Feb. 1, 2021. The property renovation will commence immediately upon the bond closing and will be completed within 12 months thereafter.
The Oso Bay Apartments are located at 7502 McArdle Road. Oso Bay Apartments LLC, the borrower, proposes the acquisition and rehabilitation of 104 units.
Terms of the bond issuance require that 80% of the units within the development have rents restricted to 60% of Area Median Family Income (AMFI). While only 80% of the units must be rent restricted according to the priority designation, the application reflects all 104 of the units will be rent and income restricted at 60% AMFI.
Oso Bay Apartments consists of eight apartment buildings that were originally constructed in 1971. They have a net rentable area of 84,792 square feet. Unit sizes range from 654 to 1,048 SF.
The complex sits on 6.99 acres and is north of where McArdle Road and Ennis Johnson Road intersect, and a block east of the Oso Bay waterfront.
True Craft Architecture of Baton Rouge, Louisiana produced the designs.
Adolfo Pesquera (Reporter/Editor) is a veteran news journalist. He has worked for Hearst Corp., American Lawyer Media, News Corp and Freedom Communications. His work has been published in newspapers and magazines across the USA. He is a journalism graduate of UT-RGV. He writes, edits and creates digital pages for VBX.