AGENDA CAPTION:
Title
Receive a Staff presentation and consider approval of Resolution 2026-117R, approving a Cooperation Agreement with Texas Housing Foundation pursuant to Section 392.059 of the Texas Local Government Code in connection with the Riverstone multifamily apartment development at 2005 Crystal River Parkway providing for the annual payment in lieu of property taxes to the city in the amount of $100,000.00 per year, with annual increases of two percent; authorizing the City Manager, or her designee, to execute the Cooperation Agreement on behalf of the city; and declaring an effective date; and consider approval of Resolution 2026-117R.
Body
Meeting date: July 7, 2026
Department: Planning and Development Services
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Prior Council Action: N/A
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Background Information:
The City has received a request from the Texas Housing Foundation (THF) to establish a Cooperation Agreement in order to operate within the San Marcos city limits. The request is related to (and is being considered concurrently with) a requested amendment to the Resolution of No Objection (RONO) to a Low-Income Housing Tax Credit (LIHTC) project for the existing 336-unit Riverstone multifamily development at 2005 Crystal River Parkway (LIHTC-19-01(A)) which the THF are proposing to purchase.
The Texas Housing Foundation is based in Marble Falls and is considered a Regional Housing Authority under Chapter 392 of the Texas Local Government Code. Hays County is one of the participating counties and is represented on the Board of Directors. The Hays County Commissioners Court approved participation in the regional housing authority by resolution in June 2023. Nevertheless, per Section 392.017(d) of the Texas Local Government Code, a regional housing authority may not undertake a housing project in a municipality unless a resolution is adopted by the City Council. The resolution must:
1. Declare a need for the regional housing authority to exercise its powers in the municipality; and
2. Authorize a cooperation agreement under Section 392.059.
A separate resolution shall be required from the San Marcos Housing Authority. Per staff’s understanding, this has not been approved at this time.
Council Committee, Board/Commission Action:
This agreement was presented to the Workforce Housing Council Committee in conjunction with the associated amendment to the Resolution of No Objection for the Low Income Housing Tax Credit application for 2005 Crystal River Parkway, however it was an informational item only and no action was required.
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Recommendation:
Staff is providing a neutral recommendation on this item.