DEPARTMENT: Department of Planning & Community Development
DEPARTMENT HEAD: Bridgett White, Director
COUNCIL DISTRICTS IMPACTED: Council District 7
SUBJECT:
A Resolution of No Objection for Pedcor Investments, LLC’s application to the Texas Department of Housing and Community Affairs for non-competitive 4% Housing Tax Credits program for the development of Trails at Leon Creek Apartments, a multifamily rental housing development consisting of up to 344 units located at 7615 Bandera Road in Council District 7
SUMMARY:
Pedcor Investments, LLC is seeking a Resolution of No Objection for its application to the Texas Department of Housing and Community Affairs for non-competitive 4% Housing Tax Credits program for the development of Trails at Leon Creek Apartments, a multifamily rental housing development consisting of up to 344 units located at 7615 Bandera Road 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. HTC 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 HTC: competitive 9% and non-competitive 4%. Pedcor Investments, LLC is applying for non-competitive 4% HTC. The non-competitive 4% HTC program is available year round unlike the competitive 9% HTC program which has a single annual application period. As opposed to the competitive 9% HTC, which assign points based on the type of resolution provided by a municipality (Resolution of Support versus a Resolution of No Objection), the non-competitive 4% HTC require that a Resolution of No Objection be submitted to satisfy requirements of §10.204(4)(C) of the TDHCA’s Uniform Multifamily Rules. In the 2011 Northwest Community Plan, this site is identified for future mixed-use development, which is defined as a concentrated blend of residential, retail, professional service, office, entertainment, leisure and other related uses at urban densities to create a pedestrian-oriented environment. This property is the subject of Zoning Case # Z2017007, which includes the request to change zoning from “I-1 AHOD” General Industrial Airport Hazard Overlay District to “MF-18 AHOD” Limited-Density Multi-family Residential Airport Hazard Overlay District. Zoning Commission approved the change on December 6, 2016. City Council consideration of the zoning change is scheduled for January 19, 2017. There are no Neighborhood Associations within 200 feet of the subject property. Two multifamily properties are located within 1,000 feet of the property: The Richland Apartments (192 units) and Bandera Commons (240 units).
ISSUE:
Pedcor Investments, LLC is submitting an application to the Texas Department of Housing and Community Affairs (TDHCA) for non-competitive 4% Housing Tax Credits (HTC) for the development of Trails at Leon Creek Apartments, a multifamily rental housing development consisting of up to 344 units located at 7615 Bandera Road in Council District 7. TDHCA requires a Resolution of No Objection from the local governing body for a 4% HTC project.
The value of the TDHCA tax credit award to Trails at Leon Creek Apartments will be approximately $17,800,000.00. The total development cost for this project will be approximately $49,000,000.00. All 256 units will be restricted to 60% of area median income (e.g. a family of four will have a maximum income of $37,260). The 4% application is anticipated to be considered by the TDHCA Governing Board in the summer of 2017. If approved, the project will commence in October 2017 and be completed by May 2019.
ALTERNATIVES:
City Council may elect not to provide a Resolution of No Objection which would adversely impact the ability of the developer to proceed with the project.
FISCAL IMPACT:
There is no fiscal impact to the City’s Budget.
RECOMMENDATION:
Staff recommends approval of a Resolution of No Objection for the development of Trails at Leon Creek Apartments, a multifamily rental housing development consisting of up to 344 units located at 7615 Bandera Road in Council District 7.