DEPARTMENT:
Neighborhood and Housing Services Department
DEPARTMENT HEAD:
Ver?nica R. Soto, AICP, Neighborhood and Housing Services Department Director
COUNCIL DISTRICTS IMPACTED:
Citywide
SUMMARY:
Briefing and possible action on the City's Housing Tax Credit Policy
BACKGROUND INFORMATION:
Housing Tax Credits (HTC) are federal tax subsidies for the construction, rehabilitation, reconstruction, and adaptive reuse of rental properties for vulnerable populations including families, elderly residents, and other special populations with low income. HTCs offset a portion of the developer's federal tax liability. The Texas Department of Housing and Community Affairs (TDHCA) distribute the HTCs allotted to the state by the federal government.
TDHCA administers two HTC programs, a Competitive 9% HTC program and a Non-Competitive 4% HTC program. The Competitive 9% HTC program has a single, annual application period and covers approximately 70% of development costs. The Non-Competitive 4% HTC program is available year round and covers roughly 30% of development costs.
To successfully apply for HTCs a developer needs a Resolution of Support or No Objection from City Council. The City's HTC Policy outlines how a developer can receive a Resolution. The last policy was adopted in December 2017. The Neighborhood and Housing Services Department (NHSD) intends to update the City's HTC Policy every two year to ensure the City's policy aligns with the state's rules and to allow the policy to reflect the priorities of each new Council.
ISSUE:
NHSD is collecting input from HTC practitioners, City Council Members, and the public to inform the updated policy. Affordable housing developers and service providers were engaged during three focus groups. The goal of the focus groups was to work with practitioners to find a balance between city priorities, the state's rules, and what is feasible in today's market. NHSD has met with City Council Members to discuss their priorities...
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