Title
Consider a memorandum/resolution of support for an application to the Texas Department of Housing and Community Affairs for an affordable housing development funded through the low-income housing tax credit program.
Summary
DATE: February 7, 2023
TO: Kent Cagle, City Manager
FROM: Leslie K. Hinkle, Executive Director of Community Development
SUBJECT: Resolution of Support for an application to the Texas Department of Housing and Community Affairs for housing tax credits for an affordable housing development
BACKGROUND AND FINDINGS:
The Texas Department of Housing & Community Affairs (TDHCA) administers the housing tax credit program, which is a highly competitive program (9% tax credits) and applications are scored using a Qualified Allocation Plan (QAP) approved by the governing board of TDHCA and the Governor. The housing tax credits are sold to investors in exchange for cash equity for the development. TDHCA divides the state into service regions and Killeen is in Region 8 along with Bryan, College Station, Temple, Waco, and other smaller cities. Historically Region 8 has only received one project. Killeen does score high in the QAP for points that can be obtained and awarded. To be competitive for the tax credits, the development must submit for a resolution of support or a resolution of no objection from the City of Killeen.
There is one proposed tax credit development application being submitted in Killeen to TDHCA for funding cycle 2023:
Project Name Location Developer Population Served # of units
Avenue Heights 2600 Illinois Ave. CSH Avenue Heights/Oaklake General Population 70
Total development property value is $19,475,000.00. The unit mix is comprised of 21 one bedroom units and 49 two-bedroom units. The development will provide rents structured to 30%, 50%, and 60%-income levels, along with robust social services through a non-profit. The developer has also requested f...
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