ACTION FORM BRYAN CITY COUNCIL

Transcription

1 ACTION FORM BRYAN CITY COUNCIL DATE OF COUNCIL MEETING: March 24, 2011 DATE SUBMITTED: March 17, 2011 DEPARTMENT OF ORIGIN: Executive Services SUBMITTED BY: Kean Register MEETING TYPE: CLASSIFICATION: ORDINANCE: STRATEGIC INITIATIVE: BCD PUBLIC HEARING 1ST READING DIVERSITY SPECIAL CONSENT 2ND READING EDUCATION REGULAR STATUTORY GROWTH WORKSHOP REGULAR IMAGE INFRASTRUCTURE PUBLIC SAFETY AGENDA ITEM DESCRIPTION: Consider support for Housing Tax Credit multifamily development applications to the Texas Department of Housing and Community Affairs (TDHCA) by consider approving a Housing Tax Credit support resolution, consider approving a resolution authorizing application for TDHCA HOME funds, and consider issuing a letter of support for any or none of the proposed HTC development applicants. SUMMARY STATEMENT: The Housing Tax Credit (HTC) Program was created by the Tax Reform Act of Section 42 of the Internal Revenue Code of 1986, as amended (the Code), is the federal law that governs the HTC program. Tax credits are allocated utilizing a competitive, points-based system by the Texas Department of Housing and Community Affairs (TDHCA), and are allocated on a regional basis among 13 regions statewide. The City of Bryan is located within Region 8, the Central Texas Region. Owners and investors in qualified affordable multifamily residential developments can use the housing tax credits as a dollar-for-dollar reduction of federal income tax liability. These credits can be sold in order to generate capital to fund qualified multifamily rental developments, which allows residences to be leased to qualified households at below market rate rents. Five (5) full HTC applications were submitted to TDHCA for developments proposed in Bryan, along with two (2) other competing applications within the HTC Region 8. Full HTC applications to TDHCA were due March 1, Support letters from elected state representatives are due to TDHCA by April 1, Applications receiving a letter of support from an elected representative will score an additional 14 points and will be more competitive in the region. Developments requesting the use of TDHCA HOME Investment Partnerships Program (HOME) funds must apply to TDHCA on or before April 29, The use of TDHCA HOME funds in Bryan does not affect the City s federal HOME allocation from the U.S. Department of Housing and Urban Development (HUD). Tax credit awards are expected in late July Developments awarded tax credits are anticipated to be in service in Given the amount of tax credits available, it is likely that only one or two developments in the region will be successful in receiving an award of tax credits by TDHCA. A City Council workshop presentation regarding the eight (8) HTC pre-applications submitted for developments in Bryan was made on January 25, A second City Council workshop presentation was made March 8, 2011 by the five (5) developers submitting full HTC applications. The City Council may elect to formalize its support of any of the HTC developments by adopting a resolution of

2 support, including allowing the use of TDHCA HOME funds for those developments so requesting, and authorizing the Mayor Pro Tempore to execute a letter of support on behalf of the City Council to TDHCA and the District 14 State Representative and District 5 State Senator. For each proposed development, the City Council may elect to: Approve a resolution of support and issue a letter of support for any development s HTC application. If approving a resolution of support and letter of support for an HTC application, also approve a resolution authorizing any development s application for TDHCA HOME funds. Take no action regarding any development. STAFF ANALYSIS: A. PROS: The award of Housing Tax Credits to any of the proposed HTC applicants in Bryan would expand the supply of affordable housing for income-qualified households. A tax credit award would increase either workforcefamily or elderly affordable units, and could have a positive economic impact initially. B. CONS: HTC developments result in limited property tax revenue with lower assessment valuations because of long-term restricted rents and resale requirements. HTC developments within established Tax Increment Reinvestment Zones may not achieve valuation and revenue projections for this reason. Also, historically, HTC developments serving the general low-income population have a significantly higher cost of calls for police service than do those HTC developments serving the elderly, although it is recognized that property management practices and effective enforcement of occupancy policies can have a positive effect. STAFF'S RECOMMENDATION (Including Rationale and Justification): Staff makes no recommendation for support of any particular proposed HTC development. Staff does recommend that based upon historic data regarding police calls for service at existing general, family HTC developments, proposed elderly developments be given preference. OPTIONS (In Suggested Order of Staff Preference): 1. Approve a resolution of support and letter of support for the HTC application for any development; 2. If approving a resolution of support and letter of support for an HTC application, also approve a resolution authorizing application for TDHCA HOME funds for any development (this action of support may or may not be applicable to an applicant); and, 3. Take no action regarding support for any HTC development. ATTACHMENTS: 1. Resolution of Support for Housing Tax Credit Applicant 2. Resolution authorizing application for TDHCA HOME funds 3. Support Letter for Housing Tax Credit Applicant TDHCA HTC Proposed Development Application Summary HTC Proposed Development Map FUNDING SOURCE: N/A APPROVALS: Hugh R. Walker, 03/17/2011 APPROVED FOR SUBMITTAL: CITY ATTORNEY Janis K. Hampton, 03/17/2011 APPROVED FOR SUBMITTAL: CITY MANAGER Revised 11/08

3 RESOLUTION NO. A RESOLUTION OF THE CITY OF BRYAN, TEXAS, DECLARING SUPPORT FOR THE DEVELOPMENT HOUSING TAX CREDIT APPLICATION TO THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS FOR THE YEAR 2011; AUTHORIZING THE MAYOR PRO TEMPORE TO EXECUTE A LETTER OF SUPPORT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Bryan, Texas ( City ) is a home rule municipality duly incorporated and chartered under the Constitution and laws of Texas; and WHEREAS, the City has the objective of providing for the development of low-to-moderateincome housing for citizens of the City; and WHEREAS, the construction of affordable rental housing is in accordance with the City of Bryan Consolidated Plan which demonstrates a need for this type development; and WHEREAS,, ( Applicant ), shares this common goal with the City; and has proposed a development for affordable rental housing located at: Bryan, Brazos County, Texas, for the development named: ; and WHEREAS, the Applicant has submitted a Housing Tax Credit application to the Texas Department of Housing and Community Affairs (TDHCA) for 2011 Housing Tax Credits; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BRYAN, TEXAS: SECTION 1 That the City Council of the City of Bryan, Texas, hereby declares support of the application to the Texas Department of Housing and Community Affairs. SECTION 2 That the development fulfills a need for additional affordable rental housing in accordance with the City of Bryan Consolidated Plan. SECTION 3 That the Mayor Pro Tempore is authorized to execute the attached letter of support. SECTION 4 That this Resolution shall become effective immediately upon adoption. PASSED, APPROVED AND ADOPTED on this day of March, 2011 at a Special meeting of the City Council of the City of Bryan, Texas, which meeting was held in compliance with the Open

4 Meetings Act, Texas Government Code , et. Seq., at which meeting a quorum was present and voting. ATTEST: CITY OF BRYAN Mary Lynne Stratta, City Secretary Ann Horton, Mayor Pro Tempore APPROVED AS TO FORM: Janis K. Hampton, City Attorney

5 RESOLUTION NO. A RESOLUTION OF THE CITY OF BRYAN, TEXAS, AUTHORIZING TO ACT ON BEHALF OF THE CITY OF BRYAN IN APPLYING FOR HOME INVESTMENT PARTNERSHIPS PROGRAM FUNDS FROM THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS FOR THE YEAR 2011; AND PROVIDING AND EFFECTIVE DATE. WHEREAS, the City of Bryan, Texas ( City ) is a home rule municipality duly incorporated and chartered under the Constitution and laws of Texas; and WHEREAS, the Applicant intends to submit or has submitted a joint application to the Texas Department of Housing and Community Affairs (TDHCA) for 2011 Housing Tax Credits and HOME Investment Partnerships Program funds for a development located at: Bryan, Brazos County, Texas, for the development named: ; and WHEREAS, 49.9(a)(5), Texas Administrative Code, which gives Housing Tax Credit points for the commitment of development funding by the Unit of Local Government, states that the TDHCA HOME Program funds will not qualify for points in this category unless a resolution is submitted with the Application from the Governing Body of the Unit of General Local Government authorizing the Applicant to act on behalf of the Governing Body of the Unit of General Local Government in applying for HOME Funds from TDHCA for the particular Application. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BRYAN, TEXAS: SECTION 1 That the City of Bryan appoints to act on its behalf in applying for TDHCA HOME funds for the development. SECTION 2 That this Resolution shall become effective immediately upon adoption. PASSED, APPROVED AND ADOPTED on this day of March, 2011 at a Special meeting of the City Council of the City of Bryan, Texas, which meeting was held in compliance with the Open Meetings Act, Texas Government Code , et. Seq., at which meeting a quorum was present and voting.

6 ATTEST: CITY OF BRYAN Mary Lynne Stratta, City Secretary Ann Horton, Mayor Pro Tempore APPROVED AS TO FORM: Janis K. Hampton, City Attorney

7 Michael Gerber, Executive Director Texas Department of Housing and Community Affairs 221 E 11 th St. P.O. Box Austin, TX Re: City of Bryan Support of Housing Tax Credit Application Dear Mr. Gerber: Please accept this letter in support of the housing tax credit application as submitted by: for an affordable, multifamily Housing Tax Credit development proposed to be located in Bryan, Texas. This particular type of development is much needed in Bryan, as there are limited opportunities in the community for low income households to benefit from high quality affordable housing. There is a demonstrated need for this type of development, which is in accordance with the City of Bryan s Consolidated Plan. Per the enclosed resolution, the City of Bryan supports this development, and the application for Housing Tax Credits. We strongly urge you to consider this application positively. Sincerely, Ann Horton, Mayor Pro Tempore City of Bryan Enc Resolution of Support Cc: Fred Brown, State Representative, District 14 Stephen Ogden, State Senator, District 5

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