DEPARTMENT: Neighborhood & Housing Services Department
DEPARTMENT HEAD: Verónica R. Soto, AICP, Director
COUNCIL DISTRICTS IMPACTED: Council District 9
SUBJECT:
Resolution of No Objection for Village Capital Corporation and Pedcor Housing Corporation’s application to the Texas Department of Housing and Community Affairs for the non-competitive 4% Housing Tax Credits program.
SUMMARY:
Village Capital Corporation and Pedcor Housing Corporation are seeking a Resolution of No Objection for their application to the Texas Department of Housing and Community Affairs for the Non-Competitive 4% Housing Tax Credits program for the development of Northview Apartments, 164-unit affordable multi-family rental housing development located at 23132 US-281 North in Council District 9.
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. Housing 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.
The TDHCA administers two HTC programs: a Competitive 9% and Non-Competitive 4%. Northview Apartments is applying for the Non-Competitive 4% HTC program which is available year round unlike the Competitive 9% HTC program which has a single annual application period. The Competitive 9% HTC program assigns points based on the type of resolution provided by a municipality (Resolution of Support versus a Resolution of No Objection), but the Non-Competitive 4% Housing Tax Credit only require that a Resolution of No Objection be submitted to satisfy requirements of §11.204(4)(C) of the TDHCA’s Uniform Multifamily Rules.
In order to qualify to receive a Resolution of No Objection, the application must earn at least 50 out of 100 points from the City’s scoring criteria outlined in the Low Income Housing Tax Credit Policy adopted by City Council December 14, 2017.
ISSUE:
Village Capital Corporation and Pedcor Housing Corporation are submitting an application to the Texas Department of Housing and Community Affairs (TDHCA) for the Non-Competitive 4% Housing Tax Credits (HTC) program for the development of the Northview Apartments, a 164-unit multi-family rental housing development located at 23132 US-281 North in Council District 9. TDHCA requires a Resolution of No Objection from the local governing body for a 4% HTC project.
The property is located in Council District 9. The applicants met with the Council District 9 office to provide all pertinent information regarding the proposed Northview Apartments HTC project.
Any application earning between 50 and 100 points shall be eligible to receive a staff recommendation for a Resolution of No Objection, provided the application receives at least seven experience points under the Owner/General Partner/Property Management Experience category. The application received 15 experience points, and 67 points in total and is eligible to receive a Resolution of No Objection.
The value of the TDHCA tax credit award to Northview Apartments would be approximately $11 million over a ten year period. The total construction cost for this project will be approximately $33.2 million. Of the 164-units, all will have rent restricted to 60% and below of area median income as defined by TDHCA’s Rent and Income Limit tool using HUD data (e.g. a family of four will have a maximum income of $42,600). The 4% application is anticipated to be considered by the TDHCA Governing Board in the July 2020. If approved, the estimated construction start date will be in September 2020 and the estimated project completion is March 2022.
The project is projected to contain the following unit mix:
ALTERNATIVES:
The Planning and Community Development Committee reviewed this item on September 9, 2019 and recommended City Council issue a Resolution of No Objection.
FISCAL IMPACT:
This authorizes Resolution of No Objection for Village Capital Corporation and Pedcor Housing Corporation’s application to the Texas Department of Housing and Community Affairs Non-Competitive 4% Housing Tax Credits program for the construction of Northview Apartments, a 164 unit affordable multi-family rental housing development, located at 23132 US-281 North in Council District 9.
There is no fiscal impact to the City’s budget.
RECOMMENDATION:
Staff and the Planning and Planning and Community Development Committee recommend City Council approval of a Resolution of No Objection for the development of Northview Apartments, a 164-unit multi-family rental housing development located at 23132 US-281 North in Council District 9.