DEPARTMENT: Neighborhood & Housing Services
DEPARTMENT HEAD: Ver?nica R. Soto, AICP
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Council Consideration Request (CCR) from Councilmember Courage: requesting to create a Neighborhood Improvements Bond tax increment affordable housing fund.
SUMMARY:
On November 27, 2018, Councilmember Courage submitted a Council Consideration Request (CCR) requesting to create a Neighborhood Improvements Bond (NIB) tax increment affordable housing fund whereby any tax increment from a completed affordable housing project that utilizes NIB funding would be directed to a fund dedicated to affordable housing.
BACKGROUND INFORMATION:
On May 6, 2017 citizens of San Antonio approved Proposition 6, the Neighborhood Improvements Bond Program. This proposition authorizes the City to issue bonds in the amount of $20 million for the purposes of incentivizing the development of affordable/workforce housing. The proceeds from which are to be used to acquire and prepare properties for affordable housing redevelopment within 12 specific geographic areas consistent with the City Council approved 2017 Urban Renewal Plan. The City does not construct housing within the Neighborhood Improvements Bond (NIB) program but rather partners with the private sector to do so after the City through its urban renewal agency acquires property and gets it development ready utilizing the NIB funds.
To create a dedicated source of funding for affordable housing through the NIB program, the Council Consideration Request (CCR) requests that staff use a similar mechanism to the Tax Increment Financing (TIF) program which allows the tax increment from a project that is located within a Tax Increment Reinvestment Zone be returned or used within the Zone. To that end, the value of a completed project that utilizes NIB program funds will increase over the base valuation and the captured tax increment of the City's property tax portion would be dedi...
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