Affordable Housing Development

1. REQUEST FOR INFORMATION
18-008
AFFORDABLE HOUSING
DEVELOPMENT
Community Services
Community Development Division
January 11, 2017

2. 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

3. 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

4. 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

5. 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

6. Current Conditions
• Affordable & Workforce Housing Inventory
Complex Restriction Source of
Funding/Year
Total 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 – 2001
Site 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
Total
LMI - General
Elderly
Transitional - Homeless
618 557
311
222
24

7. 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

8. Examples of Points Awarded
Not 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

9. 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

10. 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.

11. 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

12. 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.

13. 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.

14. Proposed Development –
Langford Square

15. Proposed Development –
Langford Square

16. Development Details
Langford 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

17. Proposed Development –
Rock Prairie Senior Village
Rock Prairie Senior Village

18. Proposed Development –
Rock Prairie Senior Village

19. Development Details
Rock 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

20. Proposed Development –
Avanti at Town Center
Avanti at Town Center

21. Proposed Development –
Avanti at Town Center

22. Development Details
Avanti 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

23. Proposed Development –
Regency Lofts
Regency Lofts

24. Proposed Development –
Regency Lofts

25. Development Details
Regency 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

26. Proposed Development –
Huntington at College Station #1
Huntington at CS – Site 1

27. Proposed Development –
Huntington at College Station #2
Huntington at CS – Site 2

28. Proposed Development –
Huntington at College Station #3
Huntington at CS – Site 3

29. Proposed Development –
Huntington at College Station

30. Development Details
Huntington 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

31. Medical District Capital Projects Map

32. Sewer Connectivity Estimates
Estimate does not include design/engineering or easement acquisition
Langford Square
Developer: $321,840
City OP: $227,400
RP Sr. Village
Developer: $323,760
City OP: $207,600
Huntington #1
Developer: $340,080
City OP: $482,100
Huntington #2
Developer: $348,000
City OP: $482,100
Avanti
Developer: $131,520
City OP: $227,400
Regency Lofts
Developer: $0
City OP: $0
Huntington 3
Developer: $0
City OP: $0

33. 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.

34. 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.