AGENDA CAPTION:
Title
Consider approval of Resolution 2021-38R, amending Resolution 2020-164R, which provided no objection to an application for low income housing tax credits to the Texas Department of Housing and Community Affairs for the proposed Redwood Multifamily project located in the 1600 Block of Redwood Road, to include language which approves the application of the Texas Housing Finance Corporations Act, Chapter 394, Local Government Code and grants approval for the use of bond proceeds issued by a housing finance corporation pursuant to the Act, and providing no objection to the submission of an application for low income housing tax credits; approving findings related to such application, imposing conditions for such non objection; providing authorizations for execution or submission of documents related to the such application, and declaring an effective date.
Body
Meeting date: March 2, 2021
Department: Planning & Development Services
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Background Information:
Resolution 2020-27R was approved on February 4th, 2020 providing no objection to the submission of an application for low income housing tax credits to the Texas Department of Housing and Community Affairs (TDHCA) for the proposed Redwood Multifamily Housing Project located in the 1600 Block of Redwood Road. The applicant requested an exemption from local taxes and in accordance with the City’s Low-Income Housing Tax Credit policy, met the necessary criteria in order to be considered for the requested exemption. As a condition of approval of Resolution 2020-27R the applicant agreed to enter into an agreement with the City requiring an annual payment in lieu of taxes for $75,000 plus an additional $1,500 annually for the life of the project. The Resolution was amended on August 4th, 2020 to include language acknowledging that the project is located within a Census tract where 20% or more of the housing units are housing tax credit units.
At this time the applicant is requesting an additional amendment to the existing Resolution 2020-164R. The purpose of the amendment is for City Council to grant approval of the application of Chapter 394 of the Texas Local Government Code, i.e., the Texas Housing Corporations Act. The Texas Housing Corporations Act provides a means to finance the development of affordable housing. The Act outlines the obligations and authority of Housing Finance Corporations and decrees that HFCs may issue bonds in order to finance construction of affordable housing development. The Act also states that HFCs and all property owned by HFCs are considered public property used for public uses and are exempt from all fees and taxes imposed by any political subdivision of the state. The requested amendment would clarify and explicitly acknowledge that a Housing Finance Corporation will be used to finance construction of the development and that the property will be exempt from local ad valorem taxes.
Council Committee, Board/Commission Action:
At their January 25th, 2021 meeting, the Workforce Housing Committee provided no objection to the requested amendment. The Committee also questioned if PILOT funds would be directed back into the General Fund or into a separate account. Staff has confirmed that the funds can be directed to a separate account.
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Recommendation:
Staff recommends approval of the updated Resolution of No Objection as presented.