DEPARTMENT: Department of Planning and Community Development
DEPARTMENT HEAD: John Dugan
COUNCIL DISTRICTS IMPACTED: Council District 9
SUBJECT:
Award of $750,000.00 in FY 2014 Home Investment Partnerships Program (HOME).
SUMMARY:
An ordinance authorizing the award of funds in an amount not to exceed $750,000.00 in FY 2014 Home Investment Partnerships Program (HOME) multi-family set aside funds to NRP Group, LLC as gap financing for the Emerald Village Project located in City Council District 9; and authorizing payment.
BACKGROUND INFORMATION:
Emerald Village is proposed as a 144 residence multifamily rental development located on 8.5 acre undeveloped site at NW Loop 1604 & Corporate Woods Drive, San Antonio, Texas 78259. This $21 million new community is a partnership between the local non-profit Community Housing Resources Partners and the NRP Group, LLC. Emerald Village is planned as a gated, luxury community that will feature indoor and outdoor amenities, including a clubhouse, business center, fitness facilities and a swimming pool.
Emerald Village also will be a mixed income development providing high quality residences for working families. Seventy-nine (79%) of the units will be available to families at 60% area median income and the remaining 21% will be unrestricted with respect to income and rents (market rate). The mix of residences will include one bedroom/one bathroom residences (24), two bedroom/ two bathroom residences (50), three bedroom/two bathroom residences (62), and four bedroom/two bathroom (8).
The project site is currently zoned C-2 ERZD, Commercial Edwards Recharge Zone District, and was previously zoned B-2, Business District. Per Section 35-D1010 (d) of the Uniform Development Code, multi-family dwellings developed at 33 units or less per acre are a permitted use for any tract or parcel previously zoned B-2. Since the proposed density is well within the allowed density, the proposed project use is currently permitted.
The Quality of Life Committee recommended, on March 18, 2013, the award of HOME funds for the Project to City Council. The Committee has also recommended that this item will considered at the next City Council meeting, subject to proper public notice.
ISSUE:
Even with utilization of $15 million in Texas Department of Housing and Community Affairs (TDHCA) housing tax credits and the developer agreeing to defer 50% of their developer fee, a $750,000 financing gap exists in the Project.
An ordinance authorizing the award of funds in an amount not to exceed $750,000.00 in FY 2014 Home Investment Partnerships Program (HOME) multi-family set aside funds to NRP Group, LLC as gap financing for the Emerald Village Project located in City Council District 9; and authorizing payment.
ALTERNATIVES:
City Council may elect not to award all or a portion of the $750,000.00 in HOME funds to the project, however this will likely result in the project not being financially feasible and the $15 million in tax credits will go to another Texas community.
FISCAL IMPACT:
This proposed action will have no impact on the General Fund budget and will be funded with available Home Investment Partnerships Program (HOME) funds. Specific functional areas and internal orders will be created upon approval of this Ordinance.
RECOMMENDATION:
The Quality of Life Committee recommends the award of FY 2014 in HOME multi-family set aside funds in the amount not to exceed $750,000.00 as gap financing for the Emerald Village Project.