By Moses Leos III.
Support for a resolution to back Low Income Housing Tax Credit (LIHTC) developments in Buda materialized, despite earlier disagreements by council members.
“Failure to secure a resolution means it is very likely for (a) project to fail in the scoring criteria,” Buda Director of Planning Chance Sparks said.
After council failed to back the measure at the Feb. 18 meeting, council members Wiley Hopkins, Angela Kennedy and Mayor Pro-term Bobby Lane petitioned to put it back up for a vote. The three collectively believe now is the time for affordable housing in Buda.
At a specially called meeting Tuesday, the measure moved forward in a 4-2 vote with one council member absent.
Requests for this type of housing need council approval because a portion of the units must be affordable - developers offer reduced rents in exchange for tax credits.
The LIHTC program bases rent on the area median income for the region as an aggregate. It is not Section 8 housing, though theoretically, renters could use Section 8 vouchers to live in LIHTC housing.
Under the current proposals, up to 40 percent of the units will be affordable allowing young professionals to live in Buda.
LIHTC program provides affordable housing across the country under the guidance of the U.S. Department of Housing and Urban Development (HUD). Locally, the Texas Department of Housing and Community Affairs (TDHCA) administers the program.
To gain tax credits, developers are scored on several criteria, including resolutions of financial support from the city.
Three developers, Piscerne Longhorn Landing, Cayetano Housing and AmTex Buda, pitched their case to council on Feb. 18. All three sought the most competitive tax credits.
The developers also asked for permanent loans.
AmTex requested $203,000, while Piscerne petitioned for $125,000. Both loans would be paid back over a 15-year period at a three-percent interest rate.
The measure was not a hit with Mayor Todd Ruge and council member George Haehn. Their concerns ranged from blowback on the lack of public input, to knowing the exact reason for the permanent loan request.
“I don’t know why the permanent loan bothers me,” Ruge said during the Feb. 18 meeting. “I don’t like that one bit.”
Council also questioned the project location. Both Piscerne and AmTex want units along Robert S. Light Blvd; much of that area is zoned industrial.
Project managers, Kecia Boulware at AmTex and Jorge Aguirre at Piscerne, said they would acquire special permits to develop in those areas.
The presentations were not enough to sway council that night. Ruge and council member Eileen Altmiller said the developers should have studied the city’s comprehensive plans more thoroughly.
Ruge said waiting may be the way to go.
“Conceivably, these plans could come back to us if there is more funding in the future,” Ruge said, not knowing the future would be seven days later.
Council member Wiley Hopkins disagreed with Ruge, saying LIHTC housing “is the beginning of giving stability to families in our community.”
“The low income housing tax program is [the] most viable means and prominent aspect of providing affordable housing in the nation,” Hopkins said.
All council members agreed during the meeting that affordable housing was necessary.
“We are hamstringing [the EDC] by not having affordable housing for a prospective industry that wants to come to this area,” Hopkins said. “We don’t have that element.”
Council member Angela Kennedy said on Feb. 18 she was not surprised and that she understood council’s concerns about the project.
However, like Hopkins and others on the dais, Kennedy said affordable housing in Buda is necessary. But she wants it done right, if at all.
“We need affordable housing in Buda,” she said. “To make that happen, we need to get serious about supporting a project.”
On Tuesday, several council members did a reversal and voted in support of the financial backing for AmTex Buda.
Ruge and Altmiller voted against the measure.
