RESOLUTION confirming support for proposed development of certain properties as Affordable Rental Housing, each located in City of Houston, Texas and submittal of applications for Competitive 9% Housing Tax Credits for such developments

The Housing and Community Development Department (HCD) recommends Council approval of a Resolution of Support for competitive 9% Housing Tax Credits (HTCs), allocated by the Texas Department of Housing and Community Affairs (TDHCA) for each of the applications in the attached table located within the city of Houston. Applications will be submitted to TDHCA from across the state, and the number of available 9% HTCs is limited.  It will not be known which, if any, of these projects will receive HTCs until the end of July 2025 when TDHCA announces awards.

Currently, only preliminary information is available regarding the applications, and HCD has not underwritten these projects for financial viability. HCD reviewed the applications to determine whether they meet the community development policy objectives of the City of Houston (City) and meet certain minimum standards. Applications are required to meet a minimum of 10 points from the criteria outlined below to receive a Resolution of Support.

• Sites located within recognized boundaries of a Complete Community or TIRZ. Sites located in overlaying areas of a Complete Community or TIRZ will not receive combined points - 2 points
• Proposals to renovate or reconstruct existing rental housing – 2 points
• Sites located within an underserved area described as the following:
• Within a census tract that has no other affordable housing development funded with HTCs - 1 point
• Within a census tract if the contiguous census tracts do not have any affordable housing developments funded with HTCs that are less than 10-years old (2015 or after) - 2 points
• Sites that promote access to mass transportation options described as the following:
• Sites located within 1/4 mile of any public transportation stop - 1 point
• Sites located within 1/4 of a high frequency public transportation stop. High frequency transit service is defined as service arriving every 15 minutes on average from 6:00 am to 8:00 pm seven days a week - 2 points
• Sites with reduced poverty concentration less than 20% - 1 point
• Developments providing quality on-site education opportunities at no cost to residents:
• Provide a High-Quality Pre-Kindergarten (HQ Pre-K) program and associated educational space on-site - 2 points
• Operate an after-school learning center that offers, at minimum, 10 hours of weekly, organized, on-site educational services provided by a qualified third-party entity - 1 point
• Developments which promote a mixed income composition whereas:
• A minimum of 10% of the units to be unrestricted - 1 point
• A minimum of 20% of the units to be unrestricted - 2 points
• Written documentation of community support showing that the applicant has sought, received, and implemented (if needed) views and recommendations regarding the proposed project, from locally organized groups formed to primarily serve the interest of the proposed neighborhood. Letters of support will not be accepted from organizations directly affiliated with the project.
• Documentation of support from neighborhood-based associations (civic associations, super neighborhoods, etc.), elected officials - 1 point
• Developments that offer neighborhood beautification efforts and resiliency features. HCD will require applicants to certify in a letter to HCD that they agree to implement any features indicated below. In addition, development budgets submitted to HCD must clearly indicate the features to be installed. Failure to implement these features (without prior consent from HCD) may impact future resolutions being issued to applicant.
• Onsite material recycling – 1 point
• Building resiliency and sustainability features – up to 7 points
• Off-site improvements, trash cans or other eligible efforts determined appropriate by HCD – 1 point
  
  

Based on these criteria, the projects listed in the attached table have achieved the minimum 10-point threshold and qualify for a Resolution of Support.

This item was reviewed by the Housing and Affordability Committee on February 4, 2025.

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Michael Nichols, Director

Roxanne Lawson

(832) 394-6307