TITLE
Consider a memorandum/resolution supporting an application to The Texas Department of Housing and Community Affairs for Hyde Estates LP, an affordable housing development.
SUMMARY
AGENDA ITEM
Resolution of Support for Hyde Estates LP
ORIGINATING DEPARTMENT
Community Development
BACKGROUND INFORMATION
In 1987, the U.S. Congress approved the Federal Housing Tax Credit program that is designed to produce affordable housing units across the United States. This program uses private investment by offering the sale of tax credits to investors who want to reduce their federal tax liability in exchange for cash equity needed for the development of housing units. The private capital allows the developer to reduce the mortgage on the development and pass on savings in the form of affordable rent structures. The Texas Department of Housing and Community Affairs administers the housing tax credit program which is a highly competitive program; applications are scored using a qualified allocation plan. Housing applications are evaluated and ranked based on several scoring categories. Those applicants with the highest scoring applications are awarded the housing tax credits.
DISCUSSION/CONCLUSION
The Housing Authority of Killeen, a Public Housing Authority and its nonprofit entity (Greater Killeen Housing Alliance, Inc.) with the development partner Housing Solutions Alliance, LLC have formed a development team known as Killeen Hyde Estates, LP (as Applicant). To maximize approval and receipt of the Rental Assistance Demonstration (RAD) program funding from the Department of Housing and Urban Development (HUD), the conversion of public housing units to project-based voucher-assisted units is proposed by utilizing additional funding through an application to the Texas Department of Housing and Community Affairs in the 2016 Housing Tax Credit program. In late 2015, the...
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