AGENDA CAPTION:
Title
Receive a Staff presentation and hold a Public Hearing to receive comments for or against Resolution 2021-86R, providing no objection to the submission of an application for low income housing tax credits to the Texas Department of Housing and Community Affairs for the proposed Legacy Square Senior (55+) Multifamily Housing Project located at the corner of Redwood Road and South Old Bastrop Hwy; approving findings related to the application; imposing conditions for such non objection; approving an associated agreement under which the owner of the project will make an annual payment in lieu of taxes in the amount of $75,000 and increasing by $1,500 annually; authorizing the city manager, or his designee, to execute said agreement and to submit and execute documents related to the application; and declaring an effective date; and consider approval of Resolution 2021-86R.
Body
Meeting date: May 4, 2021
Department: Planning and Development Services Department
Amount & Source of Funding
Funds Required: n/a
Account Number: n/a
Funds Available: n/a
Account Name: n/a
Fiscal Note:
Prior Council Action: n/a
City Council Strategic Initiative:
N/A
Comprehensive Plan Element (s):
☐ Economic Development - Choose an item.
☐ Environment & Resource Protection - Choose an item.
☐ Land Use - Choose an item.
☐ Neighborhoods & Housing - Choose an item.
☐ Parks, Public Spaces & Facilities - Choose an item.
☐ Transportation - Choose an item.
☐ Core Services
☒ Not Applicable
Master Plan:
Vision San Marcos - A River Runs Through Us
Background Information:
The subject property is located at the northeast corner of Redwood Road and South Old Bastrop Highway. The applicant is proposing a 210-unit senior (55+) multifamily project comprised of single-story cottage style buildings and two larger interior corridor buildings. The project will provide all 210 units for those making 80% AMI or less. The project will provide a mix of one and two-bedroom options and will provide a total of 11 ADA accessible units.
The project is seeking an exemption from local taxes through a partnership with the Capital Area Housing Finance Corporation (CAHFC) which was established in 1981 to address housing needs in Central Texas. Hays County is one of the applicable counties within the CAHFC service area. Please reference the Application for additional information regarding CAHFC. In addition, the applicant in conjunction with the CAHFC is requesting to pursue a voluntary PILOT payment to the City of San Marcos in an amount of $75,000 annually with a $1,500 annual escalator. This amount was requested by the Workforce Housing Committee.
The Texas Department of Housing and Community Affairs requires that projects seeking tax credits must provide an array of amenities and resident support services. The project receives a certain amount of points towards their application for each amenity or service required. The applicant has exceeded the minimum TDHCA requirements by providing 23 points in the Common Amenities Category (22 required) and 11.5 points in the Resident Support Services category (8 required). These amenities and services have been included in the Resolution of No Objection and will also be required in the TDHCA Land Use Restriction Agreement (LURA). The applicant has indicated which local partnerships they are proposing to pursue to help support these services and a Memorandum of Understanding (MOU) will be required prior to Certificate of Occupancy of the project.
As more LIHTC projects are proposed in San Marcos the concentration of housing tax credit units increases. Texas Government Code includes several “housing de-concentration” statutes to ensure the applicable local jurisdiction is aware of projects proximity to each other and concentration of units. The applicant confirmed that language addressing the below items is needed in the Resolution of No Objection based on the project location. This language has been incorporated into the Resolution being considered:
• Twice the State Average per Capita
• 20% Housing Tax Credits per Total Households
• 1 Mile, 3 Year Rule
An analysis of the City Council LIHTC Policy criteria is included in the packet.
Council Committee, Board/Commission Action:
The Legacy Square LIHTC application has been considered by the City Council Workforce Housing Committee at their November 9, 2020 and March 17, 2021 meetings. An overview of committee direction, discussion, and responses from the applicant is included in the packet.
Alternatives:
n/a
Recommendation:
The City of San Marcos Low Income Housing Tax Credit Policy states that applications must meet at least 5 of the 8 criteria, including criteria #1, in order to receive a staff recommendation for a Resolution of No Objection.
Based on the criteria outlined in the policy, the application meets 5 of the 8 criteria. Staff recommends approval of the Resolution of No Objection for the proposed Legacy Square application to the Texas Department of Housing and Community Affairs for Low Income Housing Tax Credits.