AGENDA CAPTION:
Title
Hold a public hearing regarding and consider approval of Resolution 2026-116R, 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 Riverstone Multifamily Housing Project (Case No. LIHTC-2019-01(A)) located at 2005 Crystal River Parkway (formerly 1430 Wonder World Drive); approving findings related to the application; imposing conditions for such non objection; providing authorizations for execution or submission of documents related to the application; and declaring an effective date; and consider approval of Resolution 2026-116R.
Body
Meeting date: July 7, 2026
Department: Planning and Development Services
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Fiscal Note:
Prior Council Action: The original LIHTC Resolution of No Objection (RONO) was approved by Council on March 19, 2019 (2019-26R) and subsequently amended on May 21,2019, (2019-94R) to include additional TDHCA required language developments within one mile of another tax credit development that has received a tax credit award from TDHCA within the last three years.
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Background Information:
Riverstone Apartments is an existing Low Income Housing Tax Credit (LIHTC) apartment complex located at 2005 Crystal River Parkway in the city limits. Prior to construction, the applicant received a Resolution of No Objection (RONO) from City Council with the understanding that the developer would not be exempt from property taxes and this was referenced in the RONO submitted to the Texas Department of Housing and Community Affairs (TDHA) who administers the LIHTC program.
The project has now been constructed and is comprised of a 336-unit multifamily project providing units to those making 60% AMI or less, with a mixture of 1-to-4-bedroom units, of which 20 are ADA accessible units. The applicant is now proposing to partner with the Texas Housing Foundation (THF), which would result in the property being exempt from property taxes. Per the applicant, a major reason for this request is the recent increase in their property taxes which have rendered the development financially infeasible. As part of this amendment request, the applicant has agreed to make 15% of the total units (51 units) affordable to those making 30% of the Area Medium Income per the City’s updated Workforce Housing Policy for tax exempt LIHTC developments. The applicant has agreed to update the Land Use Restrictive Agreement (LURA), (which is administered by the TDHCA and not the City) to specify the required units at 30% AMI (Area Median Income) and has included the update as a condition in the draft Chapter 392 Cooperation Agreement with the Texas Housing Foundation, which is being considered as a separate item on this agenda. The applicant is also proposing a Payment in Lieu of Taxes (PILOT) agreement with the city of $100,000 per year with a 2% annual increase, over 20 years, totaling $2,429,737 over 20 years. This would compare with an estimated $7,893,800 loss in city property taxes over that 20-year period.
Council Committee, Board/Commission Action:
The Workforce Housing Committee provided a “neutral” recommendation at their meeting on June 18, 2026.
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Recommendation:
Staff recommends approval of LIHTC-19-01(A). At this time staff consider 5 of the 8 LIHTC criteria met. As the Resolution of No Objection is no longer required by the TDHCA in order to approve the tax credits, staff would also recommend that any commitments for the project be added to the associated Cooperation Agreement with the Texas Housing Foundation (considered separately).