REQUEST FOR INFORMATION18-008

AFFORDABLE HOUSING DEVELOPMENT

Community ServicesCommunity Development Division

January 11, 2017

Fair Housing Requirements

• Prohibits discrimination in housing and lending based on several protected classes– Race - Religion– Color - Sex– National Origin - Familial Status– Handicap (Disability)

• Exemptions include:

− Owner-occupied buildings with no more than 4 units

− Single-family housing sold or rented without broker

− Housing operated by organizations and private clubs that limit occupancy to members

− Housing for Elderly (55 & Older)- Exempted

Consolidated Plan

• Goal Description: Ensuring adequate rental housing opportunities for low-income families and individuals through the provision and sustainability of decent housing by encouraging the following type of projects:– Rental Housing Rehabilitation

– Rental Housing Construction

– Rental/Owner Housing Code Enforcement

– Homelessness Prevention – TBRA Security Deposits

Consolidated Plan

• Identified Rental Housing as a High Priority for the following populations:– Extremely Low & Low Income

– Families with Children

– Elderly & Frail Elderly

– Public Housing Residents

– Individuals

– Persons with Physical & Developmental Disabilities

Area Median Income Limits

Household Size

Income Limit

30% AMI 60% AMI 80% AMI

1 $12,700 $25,380 $33,850

2 $14,500 $29,040 $38,650

3 $16,300 $32,640 $43,500

4 $18,100 $36,240 $48,300

5 $19,550 $39,180 $52,200

6 $21,000 $42,060 $56,050

7 $22,450 $44,940 $59,900

8 $23,900 $47,880 $63,800

Current Conditions

• Affordable & Workforce Housing InventoryComplex Restriction Source of

Funding/YearTotal Units LMI Units

Heritage LMI LIHTC – 1999 96 96

Haven Homeless LIHTC – 2000 24 24

Santour Court LMI LIHTC – 2007 16 16

Southgate Village Affordability until 2032

LMI LIHTC – 2001Site Based Asst.

200 199

Villas of Rock Prairie Elderly LIHTC – 1994 132 92

Terrace Pines Elderly LIHTC – 2004 100 80

LULAC Oak Hill (Section 202) Elderly/ Disabled

Section 202 50 50

TotalLMI - GeneralElderlyTransitional - Homeless

618 557311222

24

Basic Tax Credit Process

• 9% Tax Credits allocated by Texas Department of Housing and Community Affairs – funds from HUD

• Competitive Process – Region 8

• Tax Credit award – generates capital for construction

• Properties receiving a 2018 allocation must be constructed and occupied by December 2020

• Qualified Allocation Plan (QAP) sets parameters and point structure– Local Governing Body Support = 18 points

– Local Governing Body No Opposition = 14 points

Examples of Points AwardedNot complete list

• Preference for developments – points awarded for:– Census tract with lowest poverty rate– Minimum square footage by unit size– Number of affordable units for resident at 50% or below AMGI– ½ mile from public park – ½ mile from public transit– 1 mile from full-service grocery– 1 mile from pharmacy– 3 miles from health-related facility– 1 mile from public library– 5 miles from accredited university– Close proximity to other services – recreation, service organizations, etc.– Located in Meals on Wheels service area– Support from neighborhood organizations

Basic Tax Credit Process

• January 9 - Pre-application Information

• March 1 - Full application

• April 2 - Market Analysis

• May 1 - 3rd Party Request for Administrative Deficiency

• Mid-May - Scoring Notices Issued

• June 22 - Public Comments to Board

• July - Final Awards

• January 2019 - Construction begins

• December 31, 2020 - Placement in Service

Purpose

• The purpose of this RFI was to solicit information from firms interested and qualified to develop an affordable elderly or family development within the City.

Responses

• 7 proposals received– Saigebrook – Langford Square – 3906 Rock Prairie

– KRS Housing & DWR – Regency Lofts – Arnold Road Tract

– Madhouse – Avanti at Town Center – YMCA Tract

– Oaklake/Brownstone – Rock Prairie Sr Village – Medical Ave

– MGroup – Huntington Site #1 – Wheeler Tract North

– MGroup – Huntington Site #2 – Wheeler Tract South

– MGroup – Huntington Site #3 – Victoria East

Responses

All developers

• Have many years of experience in the LIHTC program.

• Have a business model of design, build, and own for full affordability period.

• Have been successful in recent years in securing tax credit allocations in various communities across Texas.

Responses

Amenities & Services

• Exceptional interiors.

• All will meet the requirements to maximize points under the QAP.

• Gated community; clubhouse; business center; multipurpose rooms; fitness center; BBQ grills with picnic tables; swimming pools or memberships to facility with pool; ADA accessibility; Green Building initiatives; and various resident services based on tenants needs/wants.

• Close to grocery, pharmacy, medical services, schools, museums, and public transit.

• Management would be provided through knowledgeable and experienced on-site managers.

Proposed Development –Langford Square

Proposed Development –Langford Square

Development DetailsLangford Square• Family Development - $15M - $18M development

• 6.5 acres mixed-income development

• Approximately 125 units– 85-90% affordable units for households at 30-60% AMI

– 10-15% market rate units

– Rezoning required – currently Rural

– Sewer connections – estimated cost to developer: $321,840*

– Sewer OP by City - $227,400**Estimate does not include design/engineering or easement acquisition

Proposed Development –Rock Prairie Senior Village

Rock Prairie Senior Village

Proposed Development –Rock Prairie Senior Village

Development DetailsRock Prairie Senior Village• Elderly Development (55 & older)

• 7.15 acres mixed-income development – Phase 1

• Approximately 140 units– 70% affordable units for households at 30-60% AMI

– 30% market rate units

• Rezoning required – currently Office

• Sewer connections – est. cost to developer: $323,760*

• Optional Sewer OP by City - $207,600**Estimate does not include design/engineering or easement acquisition

Proposed Development –Avanti at Town Center

Avanti at Town Center

Proposed Development –Avanti at Town Center

Development DetailsAvanti at Town Center• Elderly Development (62 & older)

• 4 acres mixed-income development

• Site includes proposed location of YMCA

• Approximately 120 units– 80% affordable units for households at 30-60% AMI – 20% market rate units

• Zoned correctly

• Sewer connections – est. cost to developer: $131,520*

• Optional Sewer OP by City - $227,400*

*Estimate does not include design/engineering

Proposed Development –Regency Lofts

Regency Lofts

Proposed Development –Regency Lofts

Development DetailsRegency Lofts• Senior Development (55 & older)

• 5 acres mixed-income development

• Approximately 120 units– 85% affordable units

– 15% market rate units

• Appropriate Zoning and Land Use for development

• Sewer connections in place – Site Ready

• City supported an application on this site in 2012

Proposed Development –Huntington at College Station #1

Huntington at CS – Site 1

Proposed Development –Huntington at College Station #2

Huntington at CS – Site 2

Proposed Development –Huntington at College Station #3

Huntington at CS – Site 3

Proposed Development –Huntington at College Station

Development DetailsHuntington at College Station - #1• Senior Development (62 & older)

• 6 acres mixed-income development

• Approximately 132 units– 80% affordable units – 20% market rate units

• Rezoning required – currently Rural

• Sewer connections – est. cost to developer: $321,840*

• Sewer OP by City - $227,400**Estimate does not include design/engineering or easement acquisition

Medical District Capital Projects Map

Sewer Connectivity EstimatesEstimate does not include design/engineering or easement acquisition

Langford SquareDeveloper: $321,840City OP: $227,400

RP Sr. VillageDeveloper: $323,760City OP: $207,600

Huntington #1Developer: $340,080City OP: $482,100

Huntington #2 Developer: $348,000City OP: $482,100

Avanti Developer: $131,520City OP: $227,400

Regency LoftsDeveloper: $0City OP: $0

Huntington 3Developer: $0City OP: $0

Options

• By giving support to one proposal, the application will receive 18 points and be eligible for the maximum allocation of tax credits for Region 8 of $1,500,000.

• Council can support a multiple or all of proposals providing 18 points to each application.

• Council can adopt a Resolution of No Opposition for one or more proposals providing 14 points per application.

• Council can choose NOT to adopt resolutions supporting or not opposing an application. However, taking no action would jeopardize the award of a tax credit allocation for College Station in 2018.

Staff Recommendations

• Staff recommends that Council adopt a resolution of support for one proposal.

• Staff recommends the support of the Regency Lofts development proposed by KRS & DWR.

• Staff recommends the commitment of $500 of non-federal funds for payment of building or permit fees.