DEPARTMENT: Neighborhood and Housing Services
DEPARTMENT HEAD: Verónica R. Soto, AICP
COUNCIL DISTRICTS IMPACTED: 1, 2, 3 and 5
SUBJECT:
A Resolution identifying applicants for Housing Tax Credits through the Texas Department of Housing and Community Affairs (TDHCA) as contributing more than any other to the concerted revitalization efforts of the municipality; and, a Resolution allowing the construction of a new development located within one linear mile or less from another Housing Tax Credit development awarded within the prior three years.
SUMMARY:
This item includes a Resolution identifying the following applicants for Housing Tax Credits through the Texas Department of Housing and Community Affairs (TDHCA) as contributing more than any other to the concerted revitalization efforts of the municipality:
• Artisan at Ruiz, located within the University Park West/Blueridge REnewSA target area in Council District 1
• Museum Reach Lofts, located within the Midtown TIRZ in Council District 1
• Valiente Apartments, located within the Inner City TIRZ in Council District 2
• San Juan Mission Villas, located within the Brooks City Base TIRZ in Council District 3
• Village at Roosevelt, located within the Mission Drive-in TIRZ in Council District 3
• Piedmont Lofts, located within the Highlands Community Plan Area in Council District 3
• Alazan Lofts, located within the Westside TIRZ in Council District 5
• Legacy at Buena Vista, located within the Near West-Five Points Neighborhood Improvement Area in Council District 5
Additionally, this item includes a Resolution specifically allowing the construction of Village at Roosevelt, which is to be located within one linear mile or less from a Housing Tax Credit development awarded within the prior three years.
BACKGROUND INFORMATION:
The Texas Department of Housing and Community Affairs’ (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. HTCs 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 HTCs: competitive 9% and non-competitive 4%. The non-competitive 4% HTC program is available year round whereas the competitive 9% HTC program has a single annual application period. For the 2018 competitive application period, TDHCA requires applicants to submit completed applications, along with supporting documents, no later than March 1, 2018.
In addition to the points earned for receipt of a Resolution of Support or No Objection from a municipality showing local government support for a developer application, applicants may also receive points for other factors. According to the Qualified Allocation Plan (QAP) adopted by the governing board of TDHCA, applicants for Housing Tax Credits may earn two additional points toward their application “if the Development is explicitly identified in a resolution by the municipality, or county as contributing more than any other to the concerted revitalization efforts of the municipality.” A Concerted Revitalization Plan (CRP) must meet several criteria as defined in the QAP, including adoption by the City Council. The City of San Antonio has identified a number of plans meeting the criteria to be considered a Concerted Revitalization Plan which include, but are not limited to, Tax Increment Reinvestment Zones (TIRZ), Neighborhood Improvement Areas (as part of the Urban Renewal Plan adopted in support of the 2017-2022 Neighborhood Improvements Bond), and REnewSA revitalization plans.
A municipality may also vote to specifically allow the construction of a new Housing Tax Credit development that is located less than one linear mile from another Housing Tax Credit development awarded within the prior three years, effectively granting an exemption to the One Mile Three Year Rule outlined in the QAP.
ISSUE:
On February 8, 2018 the City Council approved Resolutions of Support for 16 applications seeking Housing Tax Credits from TDHCA. Several of the proposed projects are located within areas covered by a Concerted Revitalization Plan. The applications identified below for consideration are included with the corresponding CRP to which they contribute more than any other project for the purposes of this item.
|
|
Project |
Developer/Applicant |
Concerted Revitalization Plan |
Council District |
|
1. |
Artisan at Ruiz Elmendorf & Ruiz streets |
Franklin Development Properties, Ltd. |
University Park West/Blueridge REnewSA Target Area |
D1 |
|
2. |
Museum Reach Lofts 1500 N St Mary’s St. |
ACG St. Mary’s Place (Alamo Community Group) |
Midtown TIRZ |
D1 |
|
3. |
Valiente Apartments 314 Nolan St. |
Versa Development, LLC |
Inner City TIRZ |
D2 |
|
4. |
San Juan Mission Villas 9159 S Presa St. |
Brownstone Affordable Housing, Ltd. |
Brooks City Base TIRZ |
D3 |
|
5. |
Withdrawn - Roosevelt Place 2800 Roosevelt Ave. |
ACG Roosevelt (Alamo Community Group) |
Roosevelt-Mission Reach Neighborhood Improvement Area |
D3 |
|
6. |
Village at Roosevelt 1507 Roosevelt Ave. |
Prospera Housing Community Services |
Mission Drive-in TIRZ |
D3 |
|
7. |
Piedmont Lofts 826 E Highland Blvd. |
NRP Group |
Highlands Community Plan Area |
D3 |
|
8. |
Alazan Lofts Colorado & El Paso Streets |
NRP Group/San Antonio Housing Authority |
Westside TIRZ |
D5 |
|
9. |
Legacy at Buena Vista 1409 Buena Vista St. |
Atlantic Pacific Communities |
Near West-Five Points Neighborhood Improvement Area |
D5 |
Additionally, Prospera Housing Community services is seeking a Resolution to specifically allow the construction of the Village at Roosevelt, which would be located less than one linear mile from another Housing Tax Credit development awarded within the prior three years, effectively granting an exemption to the One Mile Three Year Rule outlined in the QAP. This exception is required following the award of competitive Housing Tax Credits to NRP Group for the Rio Lofts development during the 2017 TDHCA cycle.
ALTERNATIVES:
The City Council may choose not to issue a Resolution to any or all of the projects listed herein as “contributing more than any other to the concerted revitalization efforts of the municipality.” Additionally, the City Council may choose not to grant the Resolution to Prospera Housing Community Services, allowing the construction of Village at Roosevelt within one linear mile of another Housing Tax Credit development awarded within the prior three years.
FISCAL IMPACT:
There is no fiscal impact to the City in identifying a project as “contributing more than any other to the concerted revitalization efforts of the municipality,” nor in allowing the construction of a new development located within one linear mile or less from another Housing Tax Credit development awarded within the prior three years.
RECOMMENDATION:
Staff recommends Council approval of a Resolution identifying applicants for Housing Tax Credits through the Texas Department of Housing and Community Affairs (TDHCA) as contributing more than any other to the concerted revitalization efforts of the municipality. Staff also recommends Council approval of a Resolution to Prospera Housing Community Services, allowing the construction of Village at Roosevelt within one linear mile of another Housing Tax Credit development awarded within the prior three years.