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HomeMy WebLinkAboutCFW 2020 Housing Tax Credit Policy2020 Proposed Affordable Housing Tax Credit Policy Presented to the Council WorksessionTuesday, November 12, 2019 Amy Connolly, Assistant DirectorNeighborhood Services Department Policy Requirements for Tax Credit Applications Permanent Supportive Housing (PSH) Designed to help end chronic homelessness; housing residents on the CoC list 0-30% Units Units set aside for household earning at or below 30% Area Median Income 1 person 30% AMI is $16,000 annual household income 4 person 30% AMI is $22,800 annual household income Mix of affordable and market rate units Create mixed income communities for better quality of life 2 Last Year’s Effort 3 Resolutions of Support, Local Development Funding, Concerted Revitalization Plan Resolution of Support & Local Development Funding Resolution of No Objection Palladium Fain Street Churchill at Golden Triangle Community Residences at Fairmount Cielo Place Everly Place Reserve at Risinger Sunset at Fash Place Columbia Renaissance Square III Avenue at Sycamore Park Southside at Broadway Project awarded tax credits through TDHCA Proposed 2020 9% and 4% Tax Credit Policy The development may be given a Resolution of Support if a minimum of 10%of the total units are dedicated as market rate units and it has one of the following: (a) 5% of the total units dedicated for Permanent Supportive Housing units; or (b) 10% of the total units dedicated for households earning at or below 30% Area Median Income (AMI) 4 Compare Proposed 2020 Policy to 2019 Policy 2020 –Letters of Support/No Objection 9% 10% Market Rate Required AND 5% PSH* OR 10% 0-30% Area Median Income (AMI) 2020 –Letters of No Objection 4% 10% Market Rate Required AND 5% PSH* OR 10% 0-30% Area Median Income (AMI) 5 2019 –Letter of Support/No Objection 9% 10% Market Rate Required AND 5% PSH 2019 –Letter of No Objection 4% 10% Market Rate required AND 5% PSH *PSH units unlikely in 2020 due to unavailability of Project Based Vouchers Additional Considerations (9% Only) Commitment of Development Funding (1 point @ TDHCA)_ City Council, at its discretion, may also choose to offer developments that qualify for a Resolution of Support a commitment of development funding in the form of a tax abatement and/or a partial or full waiver of development fees Resolutions of No Objection If a Resolution of Support is not granted, City Council may consider granting a Resolution of No Objection for the development 6 Proposed Changes for “Additional Requirements” Preference shall be given to developments that were not previously recommended for an award due to TDHCA’s Two -Mile Same-Year Rule (e.g., Palladium at Fain Street) Service/Target Population may also be considered (Family, Homeless, etc.) Council Member, City Staff, School, and Neighborhood Notification -only acceptable proof of written notification will be one of the following: Return receipt from certified mail, Written response from recipient, Electronic delivery receipt Conduct at least two (2)information sessions at least 30 days prior to final City Council action •Information sessions do not have to be held at a scheduled Neighborhood/Homeowner Association Meeting •Applicable Associations can be combined into 1 information session •Additional information sessions may be required if staff deems necessary 7 8 DATE ACTIVITY November 19 Council consideration & approval of Proposed 2020 Policy January 22, 2020 Deadline for developers to submit application to Neighborhood Services February 4, 2020 Staff reports and recommendations for developments to City Council Worksession February 18, 2020 City Council consideration & approval of resolutions February 28, 2020 TDHCA deadline for developer’s applications June, 2020 TDHCA releases list of projects eligible for tax credit award Late July, 2020 TDHCA makes final award decisions 9 Thank You!