Review Process. City Council Work Session 11/28/2017
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1 Review Process City Council Work Session 11/28/2017
2 1. Provide background about the Housing Tax Credit (HTC) program 2. Review changes to the 2018 Qualified Allocation Plan (QAP) 3. Share the Community and Neighborhood Development (CND) Committee s recommended changes to Arlington s HTC Policy and the current review process City of Arlington, Texas 2
3 Tax credit financing is used to develop quality, needed housing. The HTC equity allows rents for a portion of the units to be affordable to seniors and lower income households. HTC financing is a tool to develop new housing or redevelop substandard or aging properties. City of Arlington, Texas 3
4 City of Arlington, Texas 4
5 Before 50 year old complex 17 buildings Outdated kitchens and bathrooms Mansard roof No perimeter fencing $21.9M rehab - LEED Gold Certified $1.6M tax credit award Amenities include: Community Center Pool Social lounge Learning center After school program After Image City of Arlington, Texas 5
6 Construction Cost $ 2,092 Credit rate 0.09 Max annual credits 188 x 10 years 10 Total HTC 1,880 x credit price (variable) 0.85 Total Equity $ 1,598 City of Arlington, Texas 6
7 HTC projects are subject to several requirements: TDHCA s Uniform Multi-family Rules Qualified Allocation Plan (QAP) Building Codes (IBC) Local standards - Unified Development Code (UDC) Requirements are enforced by a LURA City of Arlington, Texas 7
8 Ineligible site or neighborhood characteristics Solid Waste Facility High Poverty Rate Railroad Tracks High Crime Area Low Scoring Schools Transient or Student Housing Ineligible development types Elderly developments with > 2- bedroom units Developments with fewer than 16 units City of Arlington, Texas 8
9 Rehabilitation Scope of work must substantially improve the interiors, exteriors and address any deferred maintenance. Minimum $30K per unit in construction cost and site work City of Arlington, Texas 9
10 Required Standards and Amenities Market Rate Development LIHTC Development City of Arlington, Texas 10
11 HTC Foreclosure Rate compared to Conventional Project Delinquency Rate City of Arlington, Texas 11
12 Projects are scored based upon the QAP point system which is modified annually. The scoring is highly competitive because of the amount of equity at stake. Municipalities provide input through: Resolution of support (17 points) Resolution of no objection (14 Points) Commitment of development funding (1 point) City of Arlington, Texas 12
13 01/04/2018 Application Cycle Begins 05/2018 Scoring Notices Issued 08/2018 Commitments Issued Applications Due 03/01/2018 Tax Credit Awards Announced 07/2018 Units Placed in Service 12/31/2020 City of Arlington, Texas 13
14 Increase minimum level of development support from $1 to $500 Opportunity index: Removed a point for proximity to a museum Removed points for proximity to quality education Lowered the population threshold from 300K to 200K which has the impact of increasing the number of qualifying cities from 8 to 13 City of Arlington, Texas 14
15 1. Developer has track record of developing and managing high quality LIHTC projects, with: Lower crime rate than comparable properties in the community Hands-on management, which includes comprehensive tenant screening Committed partnerships with local non-profits to provide resident services and activities relevant to the needs of the target population City of Arlington, Texas 15
16 2. Project is consistent with the Comprehensive & Consolidated Plans 3. Project uses energy-efficient, sustainable building materials 4. Preference for new development of senior housing or redevelopment of senior and/or workforce housing 5. Preference for local experience constructing and owning/managing well-maintained, quality properties City of Arlington, Texas 16
17 The State of Texas has adopted the 2015 Energy Code so all projects must meet this code. Developers will be asked to identify any elements of their project that exceeds the 2015 Energy Code or the City of Arlington s Unified Development Code. City of Arlington, Texas 17
18 Current Language Preference for local experience constructing and owning/managing well-maintained, quality properties Proposed Language Preference for developers with experience constructing and owning/managing wellmaintained, quality properties and a preference for local, onsite property management City of Arlington, Texas 18
19 Demolishing existing structures and building new, or Substantial rehabilitation of existing structures, or New construction on a site where the structure was demolished within the past 5 years City of Arlington, Texas 19
20 Resolution of Support Development Support Resolution of No Objection City of Arlington, Texas 20
21 1. Identify the start and end date for applications Start date: 12/1/17; End date: 2/27/18 2. Identify a single point of contact for developers; restrict contact with City Council 3. Establish a process for developers to present to CND Committee City of Arlington, Texas 21
22 4. Require a Pre-Application Meeting Request disclosure of anticipated variances to the Uniform Development Code Review the Comprehensive and other applicable plans 5. Provide resolution of support and fee waiver for highest ranking projects meeting the policy elements City of Arlington, Texas 22
23 EDUCATE EVALUATE RECOMMEND City of Arlington, Texas 23
24 Resolution modifying the HTC policy Defining redevelopment Clarifying the preference for local developers City of Arlington, Texas 24
25 DISCUSSION City of Arlington, Texas 25
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