DEPARTMENT: Neighborhood & Housing Services Department
DEPARTMENT HEAD: Verónica R. Soto, FAICP, Director
COUNCIL DISTRICTS IMPACTED: Council District 2
SUBJECT:
Adopting an Amended Resolution of No Objection for Atlantic Pacific Communities’ application to the Texas Department of Housing and Community Affairs for the Non-Competitive 4% Housing Tax Credits program.
SUMMARY:
Amending Resolution of No Objection for an application to the Texas Department of Housing and Community Affairs’ Non-Competitive 4% Housing Tax Credits Program for the development of Villas at Echo East, 192-unit affordable multi-family rental housing development located at west of the intersection of Spriggsdale Avenue and Como Street in Council District 2, previously approved by the City Council on May 9, 2019, to include the City’s specific consent to the location of the Villas at Echo East in a census tract that has more than 20% Housing Tax Credit Units per total households as established by the 5-year American Community Survey as required by Chapter 10 of the Texas Administrative Code, Sections 11.3(e) and 11.4 (c)(1).
BACKGROUND INFORMATION:
The Texas Department of Housing and Community Affairs’ (TDHCA) Housing Tax Credit (HTC) program is one of the primary means of directing private capital toward the development and preservation of affordable rental housing for low-income households in the state of Texas. Housing Tax Credits are awarded to eligible participants to offset a portion of their federal tax liability in exchange for the production or preservation of affordable rental housing.
TDHCA administers two HTC programs: Competitive 9% and Non-Competitive 4%. Echo East is applying for the Non-Competitive 4% HTC program which is available year round unlike the Competitive 9% HTC program which has a single annual application period. On May 9, 2019, City Council approved a Resolution of No Objection for this development’s application to the TDHCA for Non-Competitive 4% Housing Tax Credits.
Atlantic Pacific Companies partnered with the San Antonio Housing Trust- Public Facilities Corporation (PFC) and will development Phase 1 of the project together. Phase 1 is the Villas at Echo East and will have 192 units at or below 60% Area Median Income (AMI).
ISSUE:
The Texas Department of Housing and Community Affairs recently notified the Developer that the census tract the project will be located in has more than 20% of the units in the census tract as tax credit units. In this case, approximately 26%. Pursuant to the state’s Qualified Allocation Plan and Chapter 10 of the Texas Administrative Code, sections 11.3 (e) and 11.4 (c)(1), when a development will be located in such a census tract, in order for the development to receive 4% Housing Tax Credits, the City must find that the proposed Development is consistent with the City’s obligation to affirmatively further fair housing and must vote specifically to allow the construction of the development within this census tract. As a result of this notification by the State of this issue, it is necessary for the City Council to approve an Amended Resolution of No Objection to include this additional information.
ALTERNATIVES:
City Council may elect not to approve an Amended Resolution of No Objection which would adversely impact the ability of the developer to proceed with the project.
FISCAL IMPACT:
This approves an Amended Resolution of No Objection for Atlantic Pacific Communities’ application to the Texas Department of Housing and Community Affairs Non-Competitive 4% Housing Tax Credits program for the construction of the Villas at Echo East, a 192-unit multi-family rental housing development, located at west of the intersection of Spriggsdale Avenue and Como Street in Council District 2. There is no fiscal impact to the City’s budget.
RECOMMENDATION:
Staff recommends approval of an Amended Resolution acknowledging that more than 20% of the units in the census tract are tax credit units; finding that the proposed Development is consistent with the City’s obligation to affirmatively further fair housing; and specifically to allowing the construction of the Development within this census tract, therefore allowing the project to proceed.