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Home My WebLink About6. 2021 Competitive 9% Housing Tax Credit Apps2021 Competitive 9% Housing Tax Credit Applications 1 Council Worksession Tuesday, February 2, 2021 Amy Connolly, Assistant Director, Neighborhood Services Federal Housing Tax Credits 2 Internal Revenue Service Texas Department Housing & Community Affairs Tax Credits Tax Credits Investors Syndicator Tax Credits Tax Credits & Deductions Money (equity) Money (equity) Lender (Bank) Loan (Mortgage) Loan Payment Tenants Rent Application 9% “Competitive” Tax Credits •9% tax credits are “competitive” because they are granted by state housing finance agencies through a competitive process and scored through a Qualified Allocation Plan (QAP) which is approved by state legislatures. •Generally available for new construction or extensive rehabilitation •Each year for 10 years, a tax credit equal to 9% of a project’s qualified costs of construction may be claimed. •Qualified costs = (development costs –land and costs covered by grants) x % of total units for low-income households or total square footage of low income units. More tax credit equity can be received if there are more low income units. •A good rule of thumb is that the 9 percent credit covers about half of a project’s cost 3 9% Tax Credits Awarded in Fort Worth Year 9% Federal Housing Tax Credits Awarded 2020 Palladium Fain Street, Ltd. ($1,377,102) Avenue at Sycamore Park ($1,475,000) The Park Tower ($1,462,000) 2019 Everly Plaza ($1,439,065) Cielo Place ($1,447,760) Sunset at Fash Place ($1,198,485) Churchill at Golden Triangle ($1,500,000) 2018 Columbia Renaissance Square II ($1,500,000) 2017 Palladium Fort Worth ($1,500,000) Mistletoe Station ($1,500,000) The Vineyard on Lancaster ($1,330,273) 2016 Avondale Farms Senior ($1,500,000) Harmon Senior Villas ($1,470,360) The Standard at Boswell Marketplace ($1,500,000)4 City Council Impacts the Scoring of TDHCA 9% Applications 5 1. Resolution of Support Highest form of support; only available if tax credit policy is met 17 points given on TDHCA’s application 2. Resolution of No Objection Reduces a project’s competitiveness 14 points given on TDHCA’s application **Possible Additional Points Given by TDHCA •Development Contributes to Concerted Revitalization (up to 7 points) •Development in a High Opportunity Area (up to 7 points) •Commitment of Development Funding (1 point) 2021 9% Requirements: Resolutions of Support THREE requirements: 6 Minimum 10% market rate units Minimum 5% permanent supportive units Minimum 10% 0-30% AMI units Located in Opportunity Index area, mixed-use growth center, city or federal revitalization area, or CNI Neighborhood AND EITHER AND 2021 9% Requirements: Resolutions of No Objection 7 Minimum 10% market rate units Minimum 5% permanent supportive units Minimum 10% 0-30% AMI units AND EITHER TWO requirements: Commitment of Development Funding 8 --Council discretion --Resolution of support required --Provides partial or full waiver of development fees 2021 Tax Credit Applications 9 Review of Compliance with City Policy •12 total applications submitted -1 application withdrew prior to committee presentation, 1 application withdrew in the past week -10 applications moving forward •All applications met the community outreach and notification requirements •All applications met the 10% market rate units requirement •All but 1 application met the 10% 0-30% AMI units requirement •1 application opting for PSH units •All applications in either a designated revitalization area or a high opportunity area 10 •9 applications have zoning in place (or PUDs), 2 applications require rezoning •TDHCA’s self-scoring report shows that Dallas County’s disaster declaration points might disadvantage Tarrant County applicants •Uneven Council District distribution of applications and 3 districts have no applications 11 12 District 2 –CM Flores A. St. Giles •Withdrawn B. Peak Street Lofts •2510 Decatur Avenue •CSH -Vault •80 units –Senior •CRP: None A . B 13 District 3 –CM Byrd Parmore Plaza Parkway •NE corner of Parkway Plaza and Lands End Boulevard •JPI •91 Units -Senior •High Opportunity Area 14 District 5 –CM Bivens Hughes House •4830 E. Rosedale St. (SW & SE corner of Rosedale and Amanda) •Fort Worth Housing Solutions •210 Units -Family •CRP: CNI –Stop Six 15 District 8 –CM Gray Columbia III •2757 Moresby St. •Columbia Renaissance •120 units –Family •CRP: TIF 12 –East Berry/Renaissance 16 District 8 –CM Gray Clifton Riverside •2406 & 2412 E. Belknap St. •Saigebrook/O-SDA •87 Units -Family •CRP: NEZ #4 17 District 8 –CM Gray Crossroads Apartments •1105 E. Lancaster Ave. •Union Gospel Mission •68 Units –Supportive •CRP: Urban Village – Near East Side 18 District 8 –CM Gray Magnolia Lofts •300 E. Magnolia Avenue •NRP/JPS •69 units –Family •CRP: TIF 4 –Near Southside 19 District 9 –CM Zadeh Sarita on Alston •922-2018 Alston Ave. •SGI Ventures •88 units –Senior •High Opportunity Area Clifton Riverside 20 District 9 –CM Zadeh The Kent •SE Corner of Main St. & E. Lancaster Ave. •Sphinx Development Corporation •248 Units –Family •High Opportunity Area Clifton Riverside 21 District 9 –CM Zadeh Retta Street Lofts •2904 E. Belknap St. •CSH -Vault •80 units –Senior •CRP: Urban Village – Six Points Clifton Riverside 22 Project Name Council District Type Developer Location Tax Exempt Total Units Zoning Change CRP Points? 1 mile/ 3 year rule? >20% HTC units in tract >40% poverty rate in tract Peak Street Lofts 2-Flores Senior CSH –Vault 2510 Decatur Ave N 80 J to UR N N N N St. Giles (withdrawn) 2-Flores Family HTC 2707 Decatur Ave N 65 K to MU-1 TIF 15 –Stockyards/ Northside N N N Parmore Plaza Parkway 3-Byrd Senior JPI NE Corner -Plaza Pkwy and Lands End Blvd N 91 N Did Not Request N N N Hughes House 5-Bivens Family FWHS 4830 E. Rosedale St Y 210 N -PUD CNI –Stop Six N N Y Columbia III 8-Gray Family Columbia Renaissance 2757 Moresby St N 120 N -PUD TIF 12 –East Berry/Renaissance N Y N Crossroads Apartments 8-Gray Support Union Gospel 1105 E. Lancaster Ave N 68 N Urban Village –Near East Side Yes –Vineyard on Lancaster N Y Magnolia Lofts 8-Gray Family NRP/JPS 300 E. Magnolia Ave Y 69 N TIF 4 –Near Southside N N N Clifton Riverside 8-Gray Family Saigebrook/ O-SDA 2406 & 2412 E. Belknap St N 87 N NEZ #4 Yes –Cielo Place N N Sarita on Alston 9-Zadeh Senior SGI Ventures 922-2018 Alston Ave N 88 N Did Not Request Yes –Everly Plaza N N The Kent 9-Zadeh Family Sphinx Development Corporation SE Corner Main St/Lancaster Ave N 248 N -PUD N (TDHCA High Opportunity Area)N N N Retta Street Lofts 9-Zadeh Senior CSH-Vault 2904 E. Belknap St N 80 N Urban Village –Six Points N N N Recommendations 23 Resolution of Support + Concerted Revitalization Plan + Commitment of Development Funding Clifton Riverside Renaissance Square III Crossroads Apartments Magnolia Lofts Hughes House Retta Street Lofts Resolution of Support + Commitment of Development Funding Parmore Plaza Parkway Peak Street Lofts Sarita on Alston No Resolution & No Commitment of Funding The Kent The St. Giles (withdrawn) Resolution of No Objection None Impacted by 3 Year/1 Mile Rule Crossroads Apartments Clifton Riverside Sarita on Alston Rationale for Recommendations The Kent •Staff recommends providing no resolution of support and no resolution of no objection because application does not meet the 10% -0-30% AMI unit requirement by City policy •2% of total units (5 units) out of 248 units would be offered to residents in 0-30% AMI category •Developer has chosen a TDHCA program that does not meet the City’s requirement to provide extremely low income units (which is our significant housing gap). •Application does meet market rate requirements = 80% of units are market rate Peak Street Lofts •Site is only partially (less than 1/3) in the Northside-Stockyards TIF; recommend no CRP points Sarita on Alston & Parmore on Parkway •Both did not request CRP points in their application; choosing High Opportunity Area points instead Sarita on Alston, Clifton Riverside, and Crossroads •Requested waiving the 3 year/1 mile rule, which we recommend because CFW is an urban, fast-growing community with substantial need for affordable housing 24 Timeline 25 February 2, 2021 –Work Session Briefing February 16, 2021 –City Council consideration & approval of resolutions March 1, 2021 –TDHCA deadline for applications June 2021 –TDHCA releases list of projects eligible for tax credit award July 2021 –TDHCA makes final award decisions Projects awarded credits likely to start mid to late 2022 -pending closing of permanent financing and tax credits QUESTIONS?