Affordability committee meeting.

In chambers, we have uh council member Alcorn, Councilmember Ramirez, and staff representing councilmember Castillo, our mayor Pro Tim Castix Tatum's office, staff representing Councilmember Kamen and Councilmember Jackson and Councilmember Twila Carter and Councilmember Martinez and Vice Mayor Pro Tem Peck is in chambers today.

So we'll hear from the housing and community development department, our multifamily division, assistant director Ryan Bibbs, and our deputy director, Derek Sellers.

Um, I'm gonna assume that director will join us or you'll provide closing comments.

Yes, wonderful, and then we do have four uh individuals that have signed up for public comments online, and if you wish to sign up for comments, you can do so at the table, and then we will read your name and you will have a three-minute maximum for your remarks.

And once your time has expired, you'll hear the bell, but we do welcome comments uh and visibility from all of our applicants at this time.

So we're gonna go ahead and get started, Deputy Director.

Welcome.

Good afternoon.

We're happy to be here to present the department's recommendations related to the nine percent tax credit process.

I'll provide some basic information about what nine percent tax credits are, and then uh deputy assistant director Ryan Bibbs will walk us through our recommendations.

So let's go to the next slide.

So tax credits provided by the federal government through the IRS to provide equity towards the construction of affordable housing.

The Texas Department of Housing and Community Affairs or TDHCA administers these federal tax credits and they award them through a competitive process.

Uh this competitive process is outlined annually by TDHCA through its qualified allocation plan or QAP.

Next slide.

So what we've provided to you here is a quick visual of what can be a complex funding structure.

Uh I'll go through it really quick for you.

In short, the developer applies to TDHCA for the tax credits using that QAEP QAP process I mentioned, and that's what we're here for today is we're a part of that process.

The city is as part of that is seeking resolutions of support.

Once awarded, uh once uh the TDHCA awards uh the tax credits to the developer, then they work with private investors uh to turn to exchange the tax credits in the uh for equity.

Uh the equity comes into the deal along with other sources such as conventional loans and financing, uh the developer equity or grants.

Sometimes the city provides grants as well into these deals, so that's kind of the funding structure that we have here.

Those tax credits are then realized for the investors over a 10-year period after the project is placed in service.

So they get the allocation every year for 10 years.

So let's go on to the next slide.

So the QAP and this process is very highly competitive.

Every single point matters.

And what we're here to talk about today are those resolutions of support that constitute 17 points as a scoring item.

Now, our resolutions for any development related uh that is here in the city can receive up to 17 points.

If in a uh one of these deals is located in the ETJ, then they must seek a resolution of support from the city and also from the county, and with each of them constituting half of the points towards that 17.

Next slide.

So there are two different types of tax credits that we typically look at 9% and 4%.

We're here for the 9% process.

We just wanted to make that clear to y'all as we talk about this today.

We routinely routinely throughout the year bring four percent deals forward to y'all.

We hold a public hearing and things like that.

Um that's not as competitive.

Uh it does require private activity bonds, but I just wanted to make sure we're all clear we're here for the nine percent portion.

So, along with our local government support that we're here for, there's also other items that are contingent items that they can receive points for.

I just wanted to point it out a couple of these because this often comes up in our conversations.

So, this includes community participation at four points and looking at in point input from community organizations at four points.

So, those are separate scoring items beyond our 17 that we're talking about today.

We also look at that when we determine a we have a scoring system for awarding that resolution, community inputs what we're looking for as well.

But that 17 points, you can see it is far outpacing everything else that's in this list.

If you don't get the 17 points, your deal will not go through.

It is vital.

Next slide.

So I just want to quickly revisit the schedule for this.

This schedule is based on the QAP, what TDHCA says is their deadlines within it.

Applications were due to us for the resolution process January the 12th.

Of course, we're sitting here February the 5th for the special called meeting, and we'll begin bringing these items to city council on the 11th.

So that's Wednesday of next week.

And that is their deadline.

So we're doing what we can to try to fit that.

Next slide.

So at this time I'm going to turn it over to Ryan to discuss our internal process and our recommendations this year.

Thank you, Dear.

Good afternoon, Chair, Pro Tim, Council members, and staff.

This next slide is going to discuss the priorities that we support for tax credit of elements.

Next slide.

This slide here describes our scoring criteria.

So minimum points to qualify is 10.

The resolution can see a max of 25 points.

We look for things like mixed income composition on site quality programming, building a resiliency features such as generators.

We added that this year for a total of four points that could be acquired through our scoring on site material recycling in areas that are in complete communities or TRES.

Next slide.

This slide and the next two slides is just describing our equitable dispersion policy.

And here this is our way of trying to equal the playing field, so to speak.

Next slide.

And council districts C E F and G are capped out at four.

And if there's a rehabilitation or permanent support of housing PSH, it doesn't apply towards your cap.

Next slide.

This slide here describes uh how if you're if there are cap exceeds this is how we review for comp we could review competitive factors to uh to to try to fill in a tiebreaker, so to speak.

So we look at if it's a application that's going to be in a third award and it's going to receive an award from Houston Housing Authority or Houston Housing Affiliation, and it's going to receive a HUD choice neighborhood implementation grant.

That's something we look at.

We look at the HCD total score as well.

Uh if there's going to be generators on-site educational programming and poverty rate as well.

Next slide.

Here's a snapshot of our total uh resolutions received.

This first column uh describes everything we received in all the different uh council districts.

We received a total of 44.

And the cap, the next column is the um is the cap for each district, and then the next column is the total resolution.

So we received two applications for rehab, so just keep that in mind when you look at this.

It doesn't apply towards the cap in the second second column.

Next slide.

Next slide.

And here are all of the applications and recommendations.

Uh there's this page is going to describe the recommendations uh in district A.

B, C, and D.

You'll see that there's one rehab there for C as a family.

And we have some families and some seniors and one PSH.

Next slide.

This slide is uh more of the recommendations that we have.

We so we have a few more in D.

One in D is uh a rehab at South Union Place.

Uh one in E, a few in F, a few in G, one in H, uh family and I, and a family in K.

Next slide.

And here are recommendations for uh the properties that are going to be in uh in the ETJ.

All of these are families except one is a senior property, uh Pecan Loss Crossing.

These are recommendations for the ETJ.

Next slide.

Here's just a map of all of the 25 properties in total and where they're located, what part of town, uh, an overlay of uh complete communities, an overlay of uh the council districts.

Just to give the audience a good idea where they're located.

Next slide.

This slide in the next two slides is basically describing any property that are within two miles and of the same year of another property, we'll need a resolution to move forward, a waiver.

Next slide.

Next slide.

So these are the properties here that we are recommending that'll need a two-mile same year waiver.

Two rehabs, one is a family, one is a senior.

Some seniors and families, families for his new construction.

Next slide.

It's a continuation of uh that list.

Next slide.

This slide is describing um any properties that are within one mile or three year of another allocation, and we'll need a resolution or waiver to move forward.

Next slide.

And you see, we'll just have one property there, emancipation west.

Seniors.

Council District D.

Next slide.

This slide here is uh is fairly new.

I think we did one last year.

Here is um if any project is in a census track that has uh 20 percent or more of the households that are assisted by housing tax credits.

Mr.

Bibbs, can I pause you right here?

Mayor Pro Tim's in the queue to talk about the waiver.

Can we go back to the previous slide, please?

Is is the loss at Stancliffe?

Are you saying that that one is two miles to the one we had last year?

The senior deal from last year.

Uh can we go back slide?

So we need a two-mile waiver because it's close two miles.

If it's located within two miles of another deal that's coming in, then we have to do we either exclude or we do a waiver to allow them both to move forward.

And the way our guidelines are written, since they're different populations, we allow them both to move forward.

So one may be for a family deal while another one's a senior deal.

So as long as they're different populations, then we'll seek the two-year, two-mile rule of waiver.

I can get you the uh pro temperature.

And I think you're asking which one is it.

I can get you the list of what it is.

Yeah, I wanted to know which one we were specifically talking about for two miles, because I'm thinking that it's more than two miles.

Okay, okay.

We'll pull it.

Yep.

Okay.

Um, right here.

Okay.

So this is uh fairly new.

Uh but this is if any project is in a census track that has 20 percent or more households that are assisted by uh housing tax credits, and we want this project to move forward, it'll need a it'll need a resolution or waiver as well.

And then next next slide.

That property is the emancipation west.

So just a reminder, emancipation west is tied to the CUNY homes redevelopment choice neighborhood actions.

So the last waiver that we that Ryan discussed, and this one are both for the same deal.

Yeah.

This one is close to Trinity.

And just a reminder, we um updated our guidelines so they would be able to because the choice neighborhood project is uh competitive long term, so we're leveraging the $50 million investment with additional replacement units, and these are this is one of the applications that came through.

And then last year, I believe we had Trinity Trinity East that came through.

Just to bring to your remembrance.

Thank you.

That concludes my presentation.

No additional questions in the queue.

What do you think?

I spoke too soon.

Councilmember Ramirez.

You spoke.

Well, Councilmember, hold on, before you um ask your question, I do want to acknowledge Vice Chair Davis is in attendance in chamber.

Councilmember Flickinger is in attendance.

Councilmember Carolyn Evans Shabazz, staff from Councilmember Salinas' office.

I think that's it.

All right, full house.

Thank you, Madam Chair.

Uh and thank you, uh gentlemen, for the presentation.

A lot of work went into this unknown and thank the chair for her work in uh furthering this process along.

I did want to ask uh about a couple properties.

Um Vista at Arbor Trace.

And the developer is Atlantic Pacific and Heritage at Reed.

The developer on that one is is Atlantic Pacific as well.

Uh is there anyone here uh with Atlantic Pacific?

Which two properties?

It is Vista at Arbor Trace, District A, and Heritage at Reed, District D.

Okay.

All right.

No, that's fine.

If we could if we could meet after the meeting, that would be great.

Thank you.

Sure.

Um just I'm sorry.

What one other uh property I wanted to ask about, and that is in District G.

It's the Sunstone.

And um just for the record, we have I think a resident who is here and is gonna offer comment uh after the presentations, and also uh representative from uh State Representative Mono D.

Alis office uh uh is here as well.

So uh thank you all for being here.

But let me ask you about about the sunstone in G.

Um concern had been raised with with us about the drainage situation.

Um when you all are evaluating the proposals, do you look at um the drainage situation that the uh the proposed development will uh will will lead to?

So our evaluation on that is we look at uh it cannot be in a flood way, and if it's in a hundred year floodplain, then you have to submit proof or evidence that you're mitigated against that hundred-year floodplain.

And so uh sometimes you'll see uh developments built on piers and that where they put parking at the bottom and then all the housing is up top, but that's the extent to what we look at as it relates to that.

Uh we're underwriting for the resolutions of support.

The the major underwriting look at some of these deals often comes at the TDHCA level because they're putting direct investment into it.

Uh we aren't.

Okay.

My understanding is this proposed one uh sits within a MUD.

Uh do you know if the MUD has expressed concerns about the uh the drainage situation?

Are you aware of anything?

I'm not aware of that.

Okay.

Um also one of your slides referenced whether or not a project has support from the state representative over that area.

Do you know if Representative Di Ayala had a position on this one?

So the TDHCA handles that's part of the packet that they turn in that the developer turns in the TDXA, and so they score that separate than us.

So not a part of your evaluation.

Okay.

All right, thank you.

That's all I have.

Staff from Councilmember Huffman's office.

Thanks, Chair.

Just to piggyback off of that, um the same project, uh there is uh letters of community support included in submission and it says yes.

Our office isn't aware of any letters of um letters of support that were included in this project.

So could you share those with with our office?

We can.

Yes.

Thank you.

Thank you.

And I just want to add uh two things.

Thank you, uh, Bradley, for sharing that the community engagement piece is so important.

And so if um developers have not reached out to your offices to engage with super neighborhoods or civic clubs, this is the time.

I would I would tell you that we're at Super Bowl at this point.

That conversation should have been happening.

Um and to be clear that your letters of engagement should represent from the people who actually live, work, and play in the community, right?

So that's just something to pay attention to, which then should be an indicator that they've engaged with residents that would either be a recipient of benefit of that and have community support because there's nothing worse than doing all of this work and spending money on this application and then come here, and then we realize there's been no community engagement.

And then what happens is when a project goes up in your district, you're inundated with what is this?

We didn't know anything.

Um so let's try to make sure that we get ahead of that.

Um and then I believe City Legal will provide um just additional legal guidance once this item comes back to council for vote on what our obligation is for the resolution.

So we are not in violation of any fair housing um violations, and we do have a tag built into this item.

Um, but it's a very quick turnaround if we tag for the deadline, which is hard for the applicants and the department has to work expeditiously.

So just keep that in mind, some nuance as we move forward with this.

Councilmember Flickinger.

Got a question on these applications.

How much do we look at the applicant's financial ability to do these deals?

So that underwriting is performed by TDHCA.

All of that goes into TGHCA for their review.

Okay, so the city doesn't utilize that to determine whether whether and how much of the tax credit should be awarded.

Okay.

So the city really doesn't have anything to do with that?

No, because we're not funding into the deal.

Thank you.

Yeah, these if any of these deals come back for funding, correct?

Down the road, we're definitely going to be doing all the underwriting and looking at financial information.

The reason I was asking is we had an item polled last week that I guess is coming back this week where the developers asking for a four million dollar loan.

And you know, as competitive as these nine percent tax credits are, I mean, they're essentially 90 percent tax credits.

Um I would have thought we want to make sure that they're actually able to financially do it if they get the award.

Because obviously somebody that gets the award and isn't able to do it has bumped somebody else out.

Uh and I just a little bit of a piggyback on that.

I think uh many in this room would say that a lot of these deals, if they come forward for nine percent tax credits, even after they get awarded, there's still a gap they're trying to close.

And it's that gap has gotten bigger over the last four to five years as costs have gone up.

Um so where they thought they were close and then and they could figure it out, they that gap has gotten a little bigger.

So uh they often try for other sources such as home funds or disaster recovery funds or something like that to assist in closing that gap.

Of course, if we fund into it, as Ryan said, we're gonna underwrite it to make sure uh all the sources and uses are there, and of course, we'll get units out of that as well.

Okay, thank you.

Sure.

And just to just to remind this is what our 2026 or 2025 deals, some of them are still having trouble closing because of the cost.

Um, and just to keep on your radar, the DR24 package that we approved, the um hundred million dollar investment, 50 million of that is multifamily, 50 a single family.

That is hopefully coming on the street in the spring, late spring.

Um so that's fifty million dollars that potentially some of these deals will come back to council.

So you'll see this.

So this is step one where we're approving the resolution.

Then by June in the summertime, TDHCA will approve theirs, right?

So they'll score, and there's a possibility that some of these projects may fall out by that time, then we're notified of a uh potentially of what comes back to us.

So we have what 14 recommended, we might get eight, may shake out.

Sometimes they change and and there's alternatives they'll come back to the department and say, Well, is there another one you can recommend to fill the gap?

So these things are still moving.

Uh once we briefed, I think there were still some projects that shifted in and out until the to the point of this, um, and they'll probably still shift up until the time we vote.

Um so this is still very fluid.

Um, so just to keep your eyes on the two-step, two three-step processes that we have February, we have June, and then we'll have early fall.

Um, and then with the limited dollars we have uh from council, hopefully we'll be able to support some projects.

Councilmember Alcorn.

Yeah, to that point, I usually feel comfortable supporting gap financing on the ones that pass all the muster of the tax credit deals, because that means they've been fully vetted through the process.

It's always kind of expected that they'll come back for some additional gap financing.

On the the applicants that for to whom we're giving the resolutions, have are there are they mainly ones we've worked with before we've approved before there's some new developers, new applicants?

Um are ones we've worked with before, and then some are our new new new developers.

Like half and half, you think, or I'll have to double that.

Okay, it doesn't that yeah, I just like to know.

And then if we have worked with them before, do we look at the reputation or the the condition and everything of the the developments that they built?

Is that part of the process?

It is, yes.

The track record for sure.

Great.

Yep.

Councilmember Hoffman District G?

Um just one more question.

Going back to the one-year two-mile uh exemption.

So we have two projects in District G that are within two miles of each other.

So what would happen if council would decide not to vote in favor of the exemption?

Umbe I missed missed it when we were talking about it earlier, but what would happen, say to those two projects?

Uh the deal might most likely won't need the information they need to put into their application to send to the state for both.

For the right to be evaluated by the state and most likely won't move forward.

I see.

Okay.

Very good.

Thank you.

Thanks.

No other questions in the queue.

I'm just gonna just opine briefly and then we can move on.

Is this a less than an hour meeting?

Are you kidding me?

Are we that good?

There's some public comments though.

Right, we do have five for public comment.

And then if we if you are interested in um uh sharing, please sign up for for that.

I just want to um underscore the importance of community engagement.

So if you are a representative of an owner or developer and you have not reached out to any council office, I want to ask you to track down your member or the staffer today before the sun goes down.

It is incredibly important.

And then for those of us in the horseshoe, I just want to just keep before you housing affordability is the number one issue that people are struggling with.

Um so our ability to maintain affordability and get these units on the street is incredibly important to make sure that people are housed and stabilized and that they can age in place with seniors, that families, children have access to good schools and access to transit, uh, and then those rehabs and the permanent support of housing, which has really underscored a lot of the work we've done with the unhoused community.

Um so keep that in mind as y'all are thinking through this and for the developers help the offices championing your work if you have not done so.

So if if offices are saying that they are unclear about your projects, that is an indicator that you have not helped them champion your work.

Mayor Pro Tim.

Thank you, Chair.

I just wanted to uh make a call out to see if anyone from CSH LOF said Stancliffe LTD was in the room because I know there has not been any um community engagement, so we can talk after after the meeting.

Thank you.

I see you.

Comments, we're ready.

Yeah, I was just gonna say I know this is a quick process.

The uh department, we appreciate all of you for being here today and help us along in this process.

Feel free if we can answer any questions if we need to meet between now and the 11th, we'll get on your calendar to make that happen if you have specific questions on this.

Uh this is dynamic.

We've already had of the 44 submitted 19 applications withdrew.

Um, and that could still happen.

Uh something that's uh we didn't touch on at the end here.

Uh there is a an appeals process that is allotted to every one of these developers.

They've been notified that this where they stand in relation to this, they can file an appeal, and it's something that we consider and should be resolved prior to next uh Wednesday's vote on this item.

But uh, thank y'all for y'all's support and y'all's help along the way.

Thank you so much.

Um at this time, public comment is open.

We have four.

Ms.

Patricia Redman.

Oh, there's only one.

Okay.

Perfect.

Left, right?

Other one.

Okay.

Thank you for allowing me to speak.

Um my name is Patricia Redman, and I am here representing 870 homeowners in the subdivision of Lakes of Parkway.

Lakes of Parkway has an adjoining physical presence with an application being filed by DMA development, which I believe translates into your 1176 Highway 6 project.

Okay.

Um Lakes of Parkway and the proposed project come within the MUD 365 district.

And I'm here to specifically speak to the issue of drainage and runoff water and potential flooding.

Um water runs downhill.

Simple fact.

Any developer that approaches and says that they're going to do self-contained runoff water.

If I fill my sink at home, eventually it's going to overflow if the volume exceeds.

And so although the developer has expressed um intentions of doing a retention pond, um, we are still south of the water flow.

The MUD district has met with the developer and has um uh talked about capacities and is currently requiring updated engineering studies.

Um let's see.

Yeah.

The MUD has expressed their limited capacity.

Um there have also um since the MUD came into effect, there have been additional restrictive requirements under um requirements called Atlas 14 that came into place after the Harvey flooding.

And so any um proposed project would need to submit updated engineered studies, also in accordance with those additional requirements.

Uh in the past, this particular three-acre tract, there was in 2021, there was a proposed project that did not occur because of the same issue.

Proposed runoff water and potential of flooding.

To give you a better visual of how Lakes of Parkway is impacted by runoff water in the General Highway 6 area that includes this tract of land and additional tracts of land that are currently being cleared, is the runoff water runs into the mud district.

The mud district utilizes within the walls of Lakes of Parkway, their lake system.

So runoff water from this project would physically come into the MUD district system, which would also be physically into the what you and I would call the picturesque lakes, but they have a MUD function.

And so additional water literally runs into Lakes of Parkway prior to exiting south of the community towards West Park.

Okay.

Um because of additional requirements and your times, your times up, but let me ask you a quick clarifying question.

What's your intersection at Highway 6?

You're saying Lakes of Parkway at what?

Uh we are Briar Forest and Highway 6.

Okay, yes, I'm so in in conclusion.

Um, and I have a statement I can read from MUD that they gave to the developer.

And no free to send electronic copy as well.

Yes, yes.

But in conclusion, Lakes of Parkway residents request that the City of Count City Council approve um make no approvals until the engineering studies are completely done and that they are in um uh satisfaction to the MUD district's requirements.

Additionally, the Lakes of Parkway residents would also ask City Council to not approve a waiver of the one-mile two-year development for this specific project because there is an adjacent uh track of land that would follow this same uh path.

Thank you.

Thank you.

Laura Gaye.

Laura Gaye.

Nathan Kelly.

Nathan wouldn't miss the Super Bowl.

We know that.

Chair Thomas uh members of council, great to see you.

Thank you all so much for your effort uh as we've worked through these uh 9% pre-applications and requests for resolution.

Um I have two applications in the ETJ and was just here simply to answer your questions that they've come up, but uh if there are none, uh just again a big thank you to you all for your consideration.

Thank you.

No questions at this time.

Two attorney hunter.

Forgive me.

Good afternoon.

Thank you, Chair Thomas and Council.

I am giving you back your afternoon.

I was here to answer questions.

We appreciate that.

And uh Sunny Lawanium, um, thank you for the audience.

Um I'm not here for any project, um, but I did attend on one of your community engagement um like a year or two ago.

Um and I'm not even sure you represent my community, but I was pretty clear that you deeply care about all these issues.

And um and I have been receiving notices about this meeting, so I decided to show my face to educate myself.

Um from the North Houston district, popularly called Greenspoint.

Yes.

Okay.

Um I think we probably check all metrics when it comes to on the disabing um, you know, population.

Um, I just have three three points here real quick.

I just want to acknowledge um that a city um is doing so much for us in terms of all ball renewal um that you know we've called them um in in conjunction with the U.S.

Um Army Course of Engineers in terms of mitigating um flooding and so on and so forth.

But having said that there's still so much um that needs to be done.

Are we uh inundated with I mean pastor?

I represent uh you know fitbit organization that we are you know with calls for rental assistance and so on and so forth.

There's a section on Green's road that is this is not some rural back of the desert community.

Right across us is the immigration um office.

We we rely on in the suction pumps and wells um in 2026.

So I'm hoping that I can be redirected to whoever needs to help us uh in that area.

Uh we've written to the engineering department, but we haven't heard back on that.

And then secondly, we we sit on nine acres, about nine acres of land, and uh we think we can probably commit five, six acres into multifamily uh so anyone here.

Right, I'm sure their ears are peeking behind you.

Uh please you can reach out to nine acres and we are willing to give you a tour and uh give you more details.

Sure.

And that's all I have to say, and I want to thank every one of you um for what you're doing, and we do appreciate and thank you so much.

Uh thank you, Mr.

Lawani.

Um, the chief of staff for the council member Jackson, she was in the audience.

Um, but you can hang back and talk to one of her senior aides as well.

Um she represents Greens Point.

We're probably more than happy to um share more about what they're doing in your area and then receive your request for additional support.

Okay.

All right, wonderful.

Colleagues and friends, it is uh 235.

Y'all are too good to us.

Uh, we're gonna conclude this uh meeting at the time.

Vice Chair, close us out, please.

Thank you, madam chair.

Just want to remind everyone that the housing affordability committee will have its regular schedule February the um 17th at 10 a.m.

And the district office will send out information for all of the upcoming meetings.

Madam Chair.

Oh, yeah, it'll be me.

I'll take the ball.

The chair, thank you so much,