AGENDA CAPTION:
Title
Receive a Staff presentation and hold a Public Hearing to receive comments for or against Resolution 2024-125R, 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 “The Springs” multifamily housing project located east of the intersection of interstate Highway 35 and Aquarena Springs Drive and between Aquarena Springs Drive and Davis Lane; approving findings related to the application; imposing conditions for such non objection; authorizing the City Manager, or her designee, to execute said agreement and to submit and execute documents related to the application; authorizing the City Manager, or her designee, to execute an agreement providing for the owner of the project to make payments to the city in lieu of property taxes; and declaring an effective date; and consider approval of Resolution 2024-125R.
Body
Meeting date: July 2, 2024
Department: Planning and Development Services
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Background Information:
This property is located east of IH 35 fronting Aquarena Springs Drive and Davis Lane. The applicant is partnering with the San Marcos Housing Authority to provide 304 units, of which 46 (15%) will be restricted to those earning 30% of the Austin Area Median Income (AMI) or less, with the remaining 258 units restricted to those making 60% or less of the AMI. The applicant is seeking a tax exemption and proposing a Payment in Lieu of Taxes (PILOT) Agreement of either one $250,000 lump sum payment to the City plus $20k per year over 15 years (total $550,000) or a $400,000 lump sum payment.
At the December 5, 2023 meeting, the San Marcos City Council adopted the current LIHTC Policy. Under the policy, applications must meet at least 5 of the 8 criteria, including criteria #1, in order to receive a positive staff recommendation. Under the current policy, “no exemption from local taxes may be considered” unless the project meets criteria 1a-1e.
Staff considers 5 of the 8 LIHTC criteria met, however criteria 1c is not met. According to the policy local tax exemptions should not be considered and staff may not recommend approval of the request.
Council Committee, Board/Commission Action:
This item was discussed by the Workforce Housing Council Committee on May 20, 2024. The Committee wished to bring the request forward to the full City Council for consideration.
Alternatives:
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Recommendation:
Staff recommends denial of LIHTC-24-04 due to not meeting Criteria #1 of the City’s Affordable / Workforce Housing Policy.