DEPARTMENT: Department of Planning & Community Development
DEPARTMENT HEAD: Bridgett White, Director
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Consideration of Resolutions of Support for five multifamily rental housing development projects by applicants seeking competitive 9% Housing Tax Credits with the Texas Department of Housing and Community Affairs.
SUMMARY:
The City issued a Request for Applications to developers seeking a Resolution of Support or No Objection for applications to the Texas Department of Housing and Community Affairs for the competitive 9% Housing Tax Credit program. Applicants for the following five projects are recommended to receive a Resolution of Support:
• Bandera Apartments, located at 10715 Bandera Rd. in Council District 8
• Basila Apartments, located at 500 N. Zarzamora St. in Council District 5
• Rio Lofts, located at 319 W. Mitchell in Council District 3
• The Acacia, located near Guilbeau and Bandera roads in Council District 7
• The Bristol, located at Guilbeau and Old Tezel roads in Council District 7
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. HTCs 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. There are two types of HTCs: competitive 9% and non-competitive 4%. The non-competitive 4% HTC program is available year round whereas the competitive 9% HTC program has a single annual application period. For the 2017 competitive application period, TDHCA requires applicants to submit completed applications, along with supporting documents, no later than March 1, 2017.
The HTC program awards competitive application points for a resolution(s) from a Governing Body of a municipality showing local government support on the following basis:
Within a municipality, the application will receive:
• Seventeen (17) points for a resolution from the Governing Body of that municipality expressly setting forth that the municipality supports the Application or Development; or
• Fourteen (14) points for a resolution from the Governing Body of that municipality expressly setting forth that the municipality has no objection to the Application or Development.
ISSUE:
Using the City Council adopted evaluation criteria and TDHCA’s 2017 Qualified Allocation Plan (QAP), staff developed an application process and schedule. The City issued a Request for Applications (RFA) on December 12, 2016 for multifamily rental housing development projects seeking a San Antonio City Council Resolution of Support or No Objection in connection with the Texas Department of Housing and Community Affairs (TDHCA) Housing Tax Credit program. Applications were due on January 4, 2017 and were required to score at least 85 points in the City’s 165-point scoring system to be recommended for a Resolution of Support. Applicants earning less than 85 points may receive a Resolution of No Objection, provided the applicant received at least six experience points in the “General Partner and Property Manager Experience” section of the application.
A total of 16 applications were submitted with scores ranging from 80 points to 105 points, each located inside the city limits. Nine applicants withdrew their applications from consideration. On January 26, 2017, Housing Committee elected to remove two additional projects from consideration; therefore, a total of five projects are being recommended for a Resolution of Support. Applicants for the following five projects earned 85 or more points and are recommended to receive Resolutions of Support:
|
|
Project Name |
Council District |
Applicant |
Affordable Units/Total Units |
Score (out of 165) |
|
A. |
Bandera Apartments 10715 Bandera Rd. |
D8 |
NRP Group |
79/88 |
90 |
|
B. |
Basila Apartments 500 N. Zarzamora St. |
D5 |
NRP Group |
77/84 |
95 |
|
C. |
Rio Lofts 319 W. Mitchell |
D3 |
NRP Group |
78/84 |
105 |
|
D. |
The Acacia Guilbeau & Bandera Rd. |
D7 |
Versa Development |
160/160 |
97 |
|
E. |
The Bristol Guilbeau & Old Tezel Rd. |
D7 |
Madhouse Development |
95/110 |
92 |
ALTERNATIVES:
City Council may elect not to approve Resolutions of Support, which would adversely impact the developers’ applications with TDHCA’s Housing Tax Credit program and may deem the affordable housing developments financially infeasible.
FISCAL IMPACT:
There is no fiscal impact to the City’s Budget with this staff recommendation.
RECOMMENDATION:
Staff recommends City Council approval of the issuance of Resolutions of Support for the five multifamily rental housing development projects listed herein seeking housing tax credits from the Texas Department of Housing and Community Affairs.