Council asked to renew $35 million bond approval for Vintage Ranch, an apartment deal staff say would fail today's policy

Denton's City Council will be asked Tuesday, Nov. 17, to approve a fresh round of tax-exempt housing bonds for Vintage Ranch Apartments, a 207-unit complex at 4505 Vintage Blvd. that city staff say would not win the council's support if it applied under current rules.

The resolution, listed for individual consideration at the 6:30 p.m. regular session, would let Legacy Denton Public Facility Corporation issue up to $35 million in multifamily housing revenue bonds for the property's permanent financing.

The corporation is a component unit of the Denton Housing Authority and acts as the conduit issuer, meaning the bonds are repaid only from the apartments' own revenue and carry no claim on city money.

A lender left the business

The council has been here before. It approved a resolution of no objection for the project's 4% housing tax credit application on May 4, 2021, and signed off on the original bond issue in 2022, after the housing authority acquired the property, according to the agenda information sheet and a staff presentation. The complex began leasing in January 2025.

The plan was for KeyBank National Association to buy the bonds and serve as the long-term lender once construction financing ended. The bank has since left the permanent lending business, the agenda sheet says. The developer, LDG Multifamily, now plans to use a tax-exempt Freddie Mac governmental note, and that structure is different enough to require a new approval.

Federal tax law requires both the issuer and a government with jurisdiction over the site to approve private activity bonds for them to stay tax-free. A public hearing on the issue was held Aug. 27.

How the numbers compare

Every unit is restricted to renters earning no more than 60% of the area median income, and the property pays no property tax under its partnership with the housing authority. Staff wrote that the 60% rent caps are above what the Denton market charges, so the affordability residents see comes from the market rather than the restrictions.

The October 2026 comparison in the packet:

• One bedroom: cap $1,362, Denton median $1,155, Vintage Ranch asking $1,170
• Two bedrooms: cap $1,635, median $1,423, asking $1,424
• Three bedrooms: cap $1,889, median $1,783, asking $1,646

The council rewrote its housing tax credit policy on Dec. 2, 2025, to focus on units that are affordable for Denton. Staff say Vintage Ranch, approved under the 2018 framework, would not qualify for a resolution of no objection now.

The options

The developer told the city that without the approval, the project's financing would have to be restructured, which could put its viability and affordability at risk. The staff presentation says a denial would push the owner toward other, taxable permanent financing, likely raising the development's costs. The agenda sheet lists approving, declining or postponing the resolution and does not include a staff recommendation.

The same evening, the council is scheduled to hear a separate staff report on updates to the housing tax credit support policy.

Sources

webapi.legistar.com

legistar2.granicus.com

legistar2.granicus.com