DEPARTMENT: Department of Planning & Community Development
DEPARTMENT HEAD: John M. Dugan, Director
COUNCIL DISTRICTS IMPACTED: Council District 6
SUBJECT:
Resolution of No Objection for Acme Road Apartments
SUMMARY:
A Resolution of No Objection for the Acme Road Apartments Ltd. application to the State of Texas 2016 Private Activity Bond and 4% Tax Credit Program for the new construction of a 324 unit multi-family rental housing development, located on 18 acres west of South Acme Road near Prosperity Drive in San Antonio, Texas, 78227 in Council District 6.
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%). Acme Road Apartments Ltd. 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.
The City has previously awarded this project $1.25M in HOME Investment Partnership Funding through Ordinance 2015-09-17-0816 and 2016-01-14-0011.
ISSUE:
Acme Road Apartments Ltd. has submitted an application to the Texas Department of Housing and Community Affairs (TDHCA) for 2016 Private Activity Bonds and 4% Housing Tax Credits for the development of Acme Road Apartments, a 324 unit rental housing development located west of South Acme Road near Prosperity Drive San Antonio, Texas, 78227 in Council District 6. TDHCA requires a Resolution of No Objection from the local governing body for a 4% Housing Tax Credit project.
The value of the TDHCA tax credit award to Acme Road Apartments will be approximately $16 million. Eight units will be restricted to 50% of area median income and 316 units will be restricted to 60% of area median income (AMI). The 4% application will be considered by the TDHCA Governing Board on April 28, 2016. If approved, the project will commence in September 2016 and be completed by late summer 2018.
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 Acme Road Apartments, a 324 unit rental housing development located 18 acres west of South Acme Road near Prosperity Drive in San Antonio, Texas, 78227 in Council District 6