Application Process Update AWS
Application Process Update Community and Neighborhood Development Committee October 17, 2017
•
The Low Income Housing Tax Credit (LIHTC) program provides private owners with an incentive to create and maintain affordable housing.
•
Texas Department of Housing and Community Affairs (TDHCA) is responsible for allocating tax credits to developers as an incentive to create and maintain affordable housing.
City of Arlington, Texas
2
•
The process by which TDHCA allocates the credits uses criteria outlined in the State’s Qualified Allocation Plan (QAP) which is modified annually.
•
Municipalities have input through the scoring system.
•
There are two types of tax credit applications: competitive and non‐competitive.
•
This process addresses the competitive application process. City of Arlington, Texas
3
•
11/29/16 – Approved a Housing Tax Credit Review Policy
•
1/3/17 ‐ Approved a resolution of no objection for the Miller Valentine Reserve at Mayfield 4% housing tax credit project
City of Arlington, Texas
4
•
2/14/17 ‐ Approved a resolution of support for two 9% projects: Overland Property Group’s Residence at Arbor Grove and NRP Group’s Secretariat Apartments
•
2/28/17 – Provided consensus for a $1 fee waiver in support of the NRP Group’s project
City of Arlington, Texas
5
•
6/27/17 – Authorized a cooperative agreement authorizing Texas Housing Foundation to undertake a housing redevelopment project in the City of Arlington
•
6/27/17 ‐ Approved a resolution of no objection for substantial renovations for Texas Housing Foundation’s Nuestro Hogar
City of Arlington, Texas
6
• 225 units, senior housing • New York/Mayfield Road • Council district #5 Next steps: • Reductions in credit pricing make this project no longer viable • Development team is considering alternatives for this site City of Arlington, Texas
7
• 126 units, senior housing • 1116 N. Gibbins • Council district # 1 Next steps: • 10/2017 Complete architectural & engineering • 11/2017 RFP for syndicators/financing • 01/2018 Close • 05/2019 Occupancy City of Arlington, Texas
8
• 80 units, senior housing • 1121 Debbie Lane • Council district # 3 Next steps: • 01/2018 RFP for syndicators/financing • 04/2018 Complete designs/permitting • 04/2018 Close • 04/2019 Complete construction/occupancy City of Arlington, Texas
9
• • •
65 unit, senior housing 709 Magnolia Council district #1
Next steps: • 10/2017 Close • 01/2018 Begin rehab
City of Arlington, Texas
10
Developer has track record of developing and managing high quality LIHTC projects, with:
1. •
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
11
2. 3. 4.
5.
Project is consistent with the Comprehensive & Consolidated Plans Project uses energy‐efficient, sustainable building materials Preference for new development of senior housing or redevelopment of senior and/or workforce housing Preference for local experience constructing and owning/managing well‐maintained, quality properties City of Arlington, Texas
12
1. Revise the review process 2. Determine levels of support 3. Measure energy efficient and sustainable
building materials 4. Clarify consistency with the Comprehensive
Plan
City of Arlington, Texas
13
5.
Clarify “local” experience
6.
Define of “redevelopment of senior and/or workforce housing”
7.
Review changes to the 2018 QAP
City of Arlington, Texas
14
•
Allow control over the process and inform developers about expectations
•
Identify a start and end date, during which time communication with City Council is restricted •
Proposed start date: 12/1/17
•
Proposed end date: City Council meeting with action of support, no objection, or no action City of Arlington, Texas
15
•
Identify a staff member as the single point of contact for questions (Mindy Cochran, Assistant Director, CD&P)
•
Establish a process for presentations by developers to the Community and Neighborhood Development Committee
•
Require a pre‐development meeting: •
Review the Comprehensive and other applicable plans
•
Request a disclosure of anticipated variances to the Uniform Design Standards
City of Arlington, Texas
16
Two methods for local governmental support: resolution and fee waiver • Resolution of support versus no objection is a significant point difference (17 vs. 14) • In Region 3, all projects awarded credits had resolutions of support • “No objection” can be a tool to support projects in general, but not the particular project •
City of Arlington, Texas
17
•
Development support (fee waiver) is a critical element in TDHCA scoring
•
The minimum support will likely increase from $1 to $500 with the 2018 QAP
•
Lack of points for this scoring criterion can eliminate a project
City of Arlington, Texas
18
•
Effective 9/1/17, LIHTC projects must meet the 2015 Energy Code.
•
All TDHCA projects must comply with site and development requirements for multi‐ family assisted projects.
•
LIHTC projects are required to have additional amenities, many of which are related to energy efficiency or sustainability. City of Arlington, Texas
19
•
During the 2017 review process, consistency meant simply that the land was zoned for the proposed use.
•
The existing zoning may not be consistent with the current Comprehensive Plan.
•
The 2018 review process will include a review of consistency with the City’s land use goals identified in the Comprehensive Plan City of Arlington, Texas
20
•
The policy identifies a preference for local experience constructing and managing well‐ maintained, quality properties.
•
How is “local” defined without excluding potentially well qualified developers whose product is as good or even better than a local developer?
City of Arlington, Texas
21
•
LIHTC projects develop quality, needed housing.
•
The LIHTC equity allows rents for a portion of the units to be affordable to seniors and lower income households.
•
LIHTC financing is a tool to develop new housing or redevelop substandard or aging properties. City of Arlington, Texas
22
• 50 year old complex • 17 buildings • Outdated kitchens and bathrooms • Mansard roof • No perimeter fencing • Leasing office was one of the units
City of Arlington, Texas
23
• $21.9M rehab ‐ LEED Gold Certified • $1.6M tax credit award • Amenities: • Community center • Pool • Social lounge • Learning center • After school program • Many others City of Arlington, Texas
24
LIHTC rules require a minimum investment in redevelopment projects:
• •
9% projects ‐ $30,000 per unit in building costs and site work
•
4% projects ‐ $20K ‐ $30K depending on age
City of Arlington, Texas
25
TDHCA rules require the following for all units in an assisted projects – new or rehab
• • • • • •
Wired for data and phone Energy‐Star rated appliances and ceiling fan Energy‐Star rated lighting Parking consistent with local code or 1.5 spaces per unit non‐elderly and 1 per unit elderly And many others…
City of Arlington, Texas
26
LIHTC projects have additional requirements on a point system
• • • • • • • • •
Covered entries 9 foot ceilings Storage rooms Built‐in shelving Self cleaning ovens High speed internet Covered patios 30 year roofing City of Arlington, Texas
27
Common area amenities are also on a point system based on the number of units. • Nuestro Hogar (65 units) would require the developer to provide amenities totaling 7 points • Reserve at Mayfield (225 units) would require the developer to provide amenities totaling 22 points •
City of Arlington, Texas
28
• Fencing • Controlled gate • Gazebo or pavilion with seating • Accessible walking paths • Community laundry ‐ 1 W/D per 40 units • Swimming pool • Fitness center • Computer center • Furnished community room • Porte‐cochere • Security
• • • • • • • • • • •
Library Enclosed sun porch Service provider office space Covered children’s play area Activity room with supplies Secured entry Community dining room Games ‐ Horseshoe pit; putting green; pool table etc. Dog park Wifi Green building
City of Arlington, Texas
29
Option 1: Demolishing existing structure and building new
• •
• • •
Projects would require both a demo and new construction permit
Option 2: Substantial rehabilitation of exiting structure Option 3: New construction on a site where MF housing had been previously demolished Option 4: All of the above are considered redevelopment City of Arlington, Texas
30
Limit requests by developers to $3MM by 6/29 – self selection • Limit boost to the amount necessary to create the HTC units • Increase de minimis contribution of public support to $500 • Increase visitability standards (Multi‐family rule change) •
City of Arlington, Texas
31
Opportunity index:
• • • •
• •
Removed a point for proximity to a museum Added a point for sites with meal programs for elderly Removed points for proximity to quality education
Participation in the Section 811 program is now a scoring item Lowered the population threshold from 300K to 200K which has the effect of increasing the number of qualifying cities from 8 to 13 City of Arlington, Texas
32
• Developers attend a pre‐development
meeting • Applications can be submitted after the Start Date • Questions are directed to a single point of contact; contact with council members is limited • Developers are given an opportunity to cure deficiencies City of Arlington, Texas
33
• Complete applications are reviewed and ranked
by staff • CND Committee reviews applications and developers are present to respond to questions/make presentations • City Council makes a final decision about resolutions of support or no objection (Feb 2018) • Staff notifies developers of City Council actions
City of Arlington, Texas
34
City of Arlington, Texas
35
•
The Low Income Housing Tax Credit (LIHTC) program provides private owners with an incentive to create and maintain affordable housing.
•
Texas Department of Housing and Community Affairs (TDHCA) is responsible for allocating tax credits to developers as an incentive to create and maintain affordable housing.
City of Arlington, Texas
2
•
The process by which TDHCA allocates the credits uses criteria outlined in the State’s Qualified Allocation Plan (QAP) which is modified annually.
•
Municipalities have input through the scoring system.
•
There are two types of tax credit applications: competitive and non‐competitive.
•
This process addresses the competitive application process. City of Arlington, Texas
3
•
11/29/16 – Approved a Housing Tax Credit Review Policy
•
1/3/17 ‐ Approved a resolution of no objection for the Miller Valentine Reserve at Mayfield 4% housing tax credit project
City of Arlington, Texas
4
•
2/14/17 ‐ Approved a resolution of support for two 9% projects: Overland Property Group’s Residence at Arbor Grove and NRP Group’s Secretariat Apartments
•
2/28/17 – Provided consensus for a $1 fee waiver in support of the NRP Group’s project
City of Arlington, Texas
5
•
6/27/17 – Authorized a cooperative agreement authorizing Texas Housing Foundation to undertake a housing redevelopment project in the City of Arlington
•
6/27/17 ‐ Approved a resolution of no objection for substantial renovations for Texas Housing Foundation’s Nuestro Hogar
City of Arlington, Texas
6
• 225 units, senior housing • New York/Mayfield Road • Council district #5 Next steps: • Reductions in credit pricing make this project no longer viable • Development team is considering alternatives for this site City of Arlington, Texas
7
• 126 units, senior housing • 1116 N. Gibbins • Council district # 1 Next steps: • 10/2017 Complete architectural & engineering • 11/2017 RFP for syndicators/financing • 01/2018 Close • 05/2019 Occupancy City of Arlington, Texas
8
• 80 units, senior housing • 1121 Debbie Lane • Council district # 3 Next steps: • 01/2018 RFP for syndicators/financing • 04/2018 Complete designs/permitting • 04/2018 Close • 04/2019 Complete construction/occupancy City of Arlington, Texas
9
• • •
65 unit, senior housing 709 Magnolia Council district #1
Next steps: • 10/2017 Close • 01/2018 Begin rehab
City of Arlington, Texas
10
Developer has track record of developing and managing high quality LIHTC projects, with:
1. •
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
11
2. 3. 4.
5.
Project is consistent with the Comprehensive & Consolidated Plans Project uses energy‐efficient, sustainable building materials Preference for new development of senior housing or redevelopment of senior and/or workforce housing Preference for local experience constructing and owning/managing well‐maintained, quality properties City of Arlington, Texas
12
1. Revise the review process 2. Determine levels of support 3. Measure energy efficient and sustainable
building materials 4. Clarify consistency with the Comprehensive
Plan
City of Arlington, Texas
13
5.
Clarify “local” experience
6.
Define of “redevelopment of senior and/or workforce housing”
7.
Review changes to the 2018 QAP
City of Arlington, Texas
14
•
Allow control over the process and inform developers about expectations
•
Identify a start and end date, during which time communication with City Council is restricted •
Proposed start date: 12/1/17
•
Proposed end date: City Council meeting with action of support, no objection, or no action City of Arlington, Texas
15
•
Identify a staff member as the single point of contact for questions (Mindy Cochran, Assistant Director, CD&P)
•
Establish a process for presentations by developers to the Community and Neighborhood Development Committee
•
Require a pre‐development meeting: •
Review the Comprehensive and other applicable plans
•
Request a disclosure of anticipated variances to the Uniform Design Standards
City of Arlington, Texas
16
Two methods for local governmental support: resolution and fee waiver • Resolution of support versus no objection is a significant point difference (17 vs. 14) • In Region 3, all projects awarded credits had resolutions of support • “No objection” can be a tool to support projects in general, but not the particular project •
City of Arlington, Texas
17
•
Development support (fee waiver) is a critical element in TDHCA scoring
•
The minimum support will likely increase from $1 to $500 with the 2018 QAP
•
Lack of points for this scoring criterion can eliminate a project
City of Arlington, Texas
18
•
Effective 9/1/17, LIHTC projects must meet the 2015 Energy Code.
•
All TDHCA projects must comply with site and development requirements for multi‐ family assisted projects.
•
LIHTC projects are required to have additional amenities, many of which are related to energy efficiency or sustainability. City of Arlington, Texas
19
•
During the 2017 review process, consistency meant simply that the land was zoned for the proposed use.
•
The existing zoning may not be consistent with the current Comprehensive Plan.
•
The 2018 review process will include a review of consistency with the City’s land use goals identified in the Comprehensive Plan City of Arlington, Texas
20
•
The policy identifies a preference for local experience constructing and managing well‐ maintained, quality properties.
•
How is “local” defined without excluding potentially well qualified developers whose product is as good or even better than a local developer?
City of Arlington, Texas
21
•
LIHTC projects develop quality, needed housing.
•
The LIHTC equity allows rents for a portion of the units to be affordable to seniors and lower income households.
•
LIHTC financing is a tool to develop new housing or redevelop substandard or aging properties. City of Arlington, Texas
22
• 50 year old complex • 17 buildings • Outdated kitchens and bathrooms • Mansard roof • No perimeter fencing • Leasing office was one of the units
City of Arlington, Texas
23
• $21.9M rehab ‐ LEED Gold Certified • $1.6M tax credit award • Amenities: • Community center • Pool • Social lounge • Learning center • After school program • Many others City of Arlington, Texas
24
LIHTC rules require a minimum investment in redevelopment projects:
• •
9% projects ‐ $30,000 per unit in building costs and site work
•
4% projects ‐ $20K ‐ $30K depending on age
City of Arlington, Texas
25
TDHCA rules require the following for all units in an assisted projects – new or rehab
• • • • • •
Wired for data and phone Energy‐Star rated appliances and ceiling fan Energy‐Star rated lighting Parking consistent with local code or 1.5 spaces per unit non‐elderly and 1 per unit elderly And many others…
City of Arlington, Texas
26
LIHTC projects have additional requirements on a point system
• • • • • • • • •
Covered entries 9 foot ceilings Storage rooms Built‐in shelving Self cleaning ovens High speed internet Covered patios 30 year roofing City of Arlington, Texas
27
Common area amenities are also on a point system based on the number of units. • Nuestro Hogar (65 units) would require the developer to provide amenities totaling 7 points • Reserve at Mayfield (225 units) would require the developer to provide amenities totaling 22 points •
City of Arlington, Texas
28
• Fencing • Controlled gate • Gazebo or pavilion with seating • Accessible walking paths • Community laundry ‐ 1 W/D per 40 units • Swimming pool • Fitness center • Computer center • Furnished community room • Porte‐cochere • Security
• • • • • • • • • • •
Library Enclosed sun porch Service provider office space Covered children’s play area Activity room with supplies Secured entry Community dining room Games ‐ Horseshoe pit; putting green; pool table etc. Dog park Wifi Green building
City of Arlington, Texas
29
Option 1: Demolishing existing structure and building new
• •
• • •
Projects would require both a demo and new construction permit
Option 2: Substantial rehabilitation of exiting structure Option 3: New construction on a site where MF housing had been previously demolished Option 4: All of the above are considered redevelopment City of Arlington, Texas
30
Limit requests by developers to $3MM by 6/29 – self selection • Limit boost to the amount necessary to create the HTC units • Increase de minimis contribution of public support to $500 • Increase visitability standards (Multi‐family rule change) •
City of Arlington, Texas
31
Opportunity index:
• • • •
• •
Removed a point for proximity to a museum Added a point for sites with meal programs for elderly Removed points for proximity to quality education
Participation in the Section 811 program is now a scoring item Lowered the population threshold from 300K to 200K which has the effect of increasing the number of qualifying cities from 8 to 13 City of Arlington, Texas
32
• Developers attend a pre‐development
meeting • Applications can be submitted after the Start Date • Questions are directed to a single point of contact; contact with council members is limited • Developers are given an opportunity to cure deficiencies City of Arlington, Texas
33
• Complete applications are reviewed and ranked
by staff • CND Committee reviews applications and developers are present to respond to questions/make presentations • City Council makes a final decision about resolutions of support or no objection (Feb 2018) • Staff notifies developers of City Council actions
City of Arlington, Texas
34
City of Arlington, Texas
35
