DEPARTMENT: Planning and Community Development
DEPARTMENT HEAD: Bridgett White, Director
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Approval of San Antonio Housing Trust Foundation Allocation of $1 million for four (4) Affordable Housing Projects
SUMMARY:
This resolution proposes that the San Antonio Housing Trust Foundation allocate a total of $1,000,000 for the following affordable housing developments:
• $450,000 loan to Alamo Community Group for the renovation of the 64-unit Calcasieu Apartments.
• $250,000 loan to NRP Group for the construction of the 324-unit Lord Road Apartments.
• $180,000 loan to Prospera for the renovation of the 30-unit Sutton Square Duplexes.
• $50,000 loan to Alamo Community Group for the renovation of the 136-unit Cypress Cove Apartments.
BACKGROUND:
The City of San Antonio created the San Antonio Housing Trust Fund in 1988 with a corpus of $10 million. Interest earned from the $10 million corpus and loan paybacks capitalize the funding rounds, which are held once the fund exceeds $1 million above the corpus. The Housing Trust funds are used to maintain and promote decent and affordable housing and, when possible, maximize the investment of other public and private resources.
On September 29, 2016, City Council passed an Ordinance (No. 2016-09-29-0752) approving the San Antonio Housing Trust (SAHT) Resolution F0810-5A to initiate a Funding Round Request for Proposals (RFP) to make available $1,000,000 in Trust funds for disbursement as awards of Trust assistance for eligible projects. The RFP was conducted and six requests for funding were received by the deadline, at which time the SAHT Board and staff conducted a thorough review process.
ISSUE:
The approval of Trust funds for disbursement as awards of Trust assistance is consistent with the SAHT final rules and regulations and the City’s policies and commitments to provide affordable housing opportunities while pursuing new sources of program support through the Trust.
The San Antonio Housing Trust Board of Trustees met in November 2016 and approved a resolution that requests City Council approve recommendations for Housing Trust Assistance totaling $1,000,000 for the following affordable housing developments:
• $450,000 loan to Alamo Community Group for the renovation of the 64-unit Calcasieu Apartments.
• $250,000 loan to NRP Group for the construction of the 324-unit Lord Road Apartments.
• $180,000 loan to Prospera for the renovation of the 30-unit Sutton Square Duplexes.
• $50,000 loan to Alamo Community Group for the renovation of the 136-unit Cypress Cove Apartments.
Funds allocated by the San Antonio Housing Trust to the awardees listed above will result in the creation and preservation of 554 housing units that are affordable to families earning less than 80 percent of the Area Median Income (AMI) for San Antonio.
ALTERNATIVES:
Per the Declaration of Trust and the Final Rules and Regulations, the City Council must approve the proposed funding round awardees before the award process can go forward. The City Council can reject this recommendation which would require the Trust to return at a future date with an alternate recommendation.
FISCAL IMPACT:
There is no fiscal impact to the City’s General Fund. The San Antonio Housing Trust Foundation has not received federal, state, or local government funds for these loans. Rather, the source of funds for this funding round is interest earned on the corpus of the Trust and returned principal and interest income generated from previous Trust awards by the San Antonio Housing Trust Foundation, Inc.
RECOMMENDATION:
Staff recommends approval.