SUMMARY:
A Resolution of No Objection for the Chisolm Trace Apartments project application to the State of Texas 4% Tax Credit Program for the acquisition and rehabilitation of an existing multi-family rental housing development, located at 10503 Huebner Road, in San Antonio, Texas 78240, located in District 8.
BACKGROUND INFORMATION:
The 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. 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. There are two types of Housing Tax Credits: Competitive (9%) and Non-Competitive (4%). The Chisolm Trace Apartments project is a Non-Competitive (4%) Housing Tax Credit project. The 4% Housing Tax Credit program is available year round unlike the 9% Housing Tax Credit program which has a single annual application period.
ISSUE:
Chisolm Trace Apartments has submitted an application to the Texas Department of Housing and Community Affairs for 4% Housing Tax Credits. This application process requires a Resolution of No Objection from the local municipality. In applying the City Council adopted Multifamily Housing Evaluation Criteria and Scoring Policy for 2015 9% Housing Tax Credit projects, staff found that the Chisolm Trace Apartments exceeded the scoring threshold for a Resolution of No Objection. However, the applicant requested that a Resolution of No Objection be granted by the City.
The value of the tax credit award to Chisolm Trace will be $5 million. One hundred twenty-five (125) of the one hundred twenty six (126) units will be restricted to 60% of area median income (AMI). The 4% application will be considered at the November 12, 2015 TDHCA Governing Board. If approved, the project is set to close by December, 2015...
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