DEPARTMENT: Department of Planning & Community Development
DEPARTMENT HEAD: John M. Dugan, Director
COUNCIL DISTRICTS IMPACTED: Council District 10
SUBJECT:
Resolution of No Objection for Oak Valley Apartments
SUMMARY:
A recommendation for a Resolution of No Objection for the Oak Valley Apartments project application to the State of Texas 4% Tax Credit Program for the new construction of a multi-family rental housing development, located at 12613 Judson Road in San Antonio, Texas 78233, in Council District 10.
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 Oak Valley Apartments project is applying for non-competitive (4%) Housing Tax Credits. The 4% Housing Tax Credit program is available year round unlike the 9% Housing Tax Credit program which has a single annual application period. Pedcor Investments, LLC will be developing Oak Valley Apartments, a 192 unit rental housing development located at 12613 Judson Road in San Antonio, Texas 78233, in Council District 10.
ISSUE:
Oak Valley Apartments has submitted an application to the Texas Department of Housing and Community Affairs (TDHCA) for 4% Housing Tax Credits. TDHCA requires a Resolution of No Objection from the local governing body for a 4% Housing Tax Credit project. Staff applied the City Council adopted Multi-family Evaluation Criteria and Scoring Policy for competitive (9%) Housing Tax Credit projects, as the City does not have a 4% Housing Tax Credit Policy, and found that the Oak Valley Apartments scored sufficient points to warrant a staff recommendation for a Resolution of No Objection.
The value of the TDHCA tax credit award to Oak Valley Apartments will be approximately $1.1 million. All 192 units will be restricted to 60% of area median income (AMI). The 4% application will be considered by the TDHCA Governing Board in August 2016. If approved, the project will commence in October of 2016 and be completed by November 2017.
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 recommending approval of a Resolution of No Objection for the development of Oak Valley Apartments, located at 12613 Judson Road in San Antonio, Texas 78233, in Council District 10 and forwarding to the full City Council for consideration.