By Andy Sevilla
A low-income housing development looking to locate near the corner of FM 967 and Cole Springs Road in Buda received a first round of support from city officials.
The Buda council approved a resolution with a 6-1 vote Feb. 17 supporting the proposed 110-unit, two-story development and a companion resolution pledging financial backing.
Securing a resolution of support and a resolution of financial commitment from the governing body where a low-income housing development is proposed are the two most coveted scoring opportunities for applicants seeking the federal subsidy.
Council member George Haehn, the lone official to dissent, expressed concerns over adding more traffic, potentially up to an additional 1,100 car trips per day, on an already heavily traveled roadway in Buda.
The proposed project would front FM 967. That roadway is presently undergoing widening improvements.
A representative for Picerne Development, the group looking to develop The Pointe at Overlook, Owen Dundee, told the council the proposed development would help fill a void in Buda’s housing market — workforce housing — as identified in a Buda Economic Development Corporation survey last year.
“It does seem like there is a demand of some working-class folks that work here, but just can’t afford to live here, and our development will certainly help cure that need,” Dundee said.
The development would feature townhome style buildings with individual private entrances, and some units would have garages, according to a Picerne presentation. Units would range from one to three bedroom rentals with rents ranging from $342 to $1,047 per month.
Due to the project being a low-income housing tax credit program, those interested in becoming a tenant would have annual income requirements between $14,537 on the low end, up to $48,900.
Buda Mayor Todd Ruge said though he was “highly critical” of the proposal last year, the developer listened to the council’s concerns and addressed much of the officials’ apprehension.
Ruge said Dundee did his homework and through his outreach obtained support from several people and groups in the community.
But city support is only one component. Officials also had to agree to help fund the project.
Picerne is seeking $118,000 in financial help from the city. That amount is based upon the population of the city multiplied by a factor of 0.15 in funding per tax credit unit, according to Dundee.
The financial help would come in the form of a loan, and since Picerne would pay the money back, Buda City Manager said he had no reservations with the request.
Dundee said the development would amount to about $20 million in investment in Buda. The Pointe at Overlook, LP would own and operate the apartment community for at least 15 years — a long-term hold required by the tax credit program.
“Obviously these (units) can’t be reserved for our police department (workers) and our school teachers,” Ruge said, “but those are the type of people that work in the city, and for the city, that can’t afford to in our city.”
Through The Pointe at Overlook, those employees, Ruge said, will have an opportunity to afford to live in Buda.
“I have no problem supporting this [proposal] this year,” he said.
