Title
Consider a memorandum/resolution of support for the Low-income Housing Tax Credit application to Texas Department of Housing & Community Affairs for RST The Madelyn, LP.
Body
DATE: February 17, 2026
TO: Kent Cagle, City Manager
FROM: Tiffanie McNair, Executive Director of Community Development
SUBJECT: Request for Resolution of Support for the application to the Texas Department of Housing & Community Affairs for Low-income Housing Tax Credit (LIHTC) for affordable housing development
BACKGROUND AND FINDINGS:
The Texas Department of Housing & Community Affairs (TDHCA) administers the competitive Low-income housing Tax Credit (LIHTC) program as funded by the U.S. Department of Treasury for the purpose of producing affordable housing. Affordable housing development applications are evaluated using the Qualified Allocation Plan (QAP) approved by the governing board of TDHCA. Upon the award of tax credits, the credits are sold to investors to yield cash equity for the development. TDHCA divides the state into regions; Killeen is in region eight (8) with Bryan, College Station, Temple, Waco, and other smaller cities.
For TDHCA funding cycle 2026, one (1) Killeen LIHTC development application will be submitted.
The project submitted to the City of Killeen for consideration is:
Project Name: RST The Madelyn, LP
Developer Name: Roundstone Development, Inc.
Project Type: Elderly
# of Units: 80
Funding Requested: $500 in reduced fee waivers
Location: 5100 block of Desert Willow Dr., 76549
To be more competitive for the tax credits, the development must request a resolution of support or a resolution of no objection from the City of Killeen. The developer is requesting that Killeen City Council issue a Resolution of Support. The developer is also requesting Five Hundred ($500) Dollars in a grant, fee waiver, or development related services. The waiver is considered a minimum level of commitment from the city per the TDHCA QAP.
Staff recommends support with fee waiver in the amount of $500.00.
THE ALTERNATIVES CONSIDERED:
1. Resolution of Support without fee waiver.
2. Resolution of No Objection with fee waiver.
3. Resolution of No Objection without fee waiver.
4. Neither support or object to the request for resolution of support.
Which alternative is recommended? Why?
Staff recommends a Resolution of Support with fee waiver in the amount of $500. The City of Killeen 5-Year Consolidated Plan lists the production of new housing rental units which target the elderly as a priority to maintaining affordable housing options.
CONFORMITY TO CITY POLICY:
Conforms to the City of Killeen Low-Income Housing Tax Credit Application requirements.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
There is no expenditure of City funds. The developer has requested for permit fee waivers in the amount of $500.
Affordable housing provided by these developments will generate property taxes, building permits fees, and sales tax on construction materials. The proposed development will result in a positive impact on the local economy and employment opportunities in the City of Killeen.
Is this a one-time or recurring revenue/expenditure?
N/A
Is this revenue/expenditure budgeted?
N/A
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
N/A
RECOMMENDATION:
Staff recommends City Council approve the Resolution of Support for the application to Texas Department of Housing & Community Affairs for Avanti Legacy Westwood, with waiver of permit fees in the amount of $500.00.
DEPARTMENTAL CLEARANCES:
Finance
Planning
Legal
ATTACHED SUPPORTING DOCUMENTS:
Application
Exhibits
Letter
Resolution
Presentation