Agenda No. 14.
CITY COUNCIL MEMORANDUM
| City Council Meeting: | January 11, 2022 |
| Department: | Executive Team |
| Subject: | Discussion creation of a Housing Finance Corporation or a Public Finance Corporation associated with a proposed multifamily project on approximately 14 acres of land located at 9120 E FM 1518N, approximately 2,500 feet south of the intersection of Lower Seguin Road and FM 1518, also known as Bexar County Property Identification Numbers, 309999 and 309997, City of Schertz, Bexar County, Texas. (M. Browne/B. James) |
BACKGROUND
The City of Schertz was approached by the NPR Group about a proposed multifamily project that is to be located on the east side of FM 1518, approximately 2,500 feet south of the intersection of Lower Seguin Road and FM 1518, also known as Bexar County Property Identification Numbers, 309999 and 309997, City of Schertz, Bexar County, Texas.The NRP Group is a national developer of multifamily projects. They are involved in the development, construction, and management of apartment complexes. They specialize in affordable housing.
They approached the City of Schertz about creating a Housing Finance Corporation (HFC) or a Public Facilities Corporation (PFC) to serve as the general partner in an affordable housing tax credit project located on the above-mentioned property. The HFC or PFC partnering on the project provides for an ad valorem tax exemption. As a partner, the HFC/PFC would share revenue/fees that would be negotiated with the NRP Group. The Schertz Housing Authority has already created a Public Facilities Corporation and could partner with the NRP Group on this project instead of the City. The Schertz Housing Authority Director has met with the NRP Group and is open to a partnership and is planning to brief her board on the concept.
Staff is seeking feedback from Council on creating an HFC or PFC for this particular project. It should be noted that a comprehensive plan amendment and a rezoning would be needed. Additionally, a letter of support for the project is needed from the City.
They approached the City of Schertz about creating a Housing Finance Corporation (HFC) or a Public Facilities Corporation (PFC) to serve as the general partner in an affordable housing tax credit project located on the above-mentioned property. The HFC or PFC partnering on the project provides for an ad valorem tax exemption. As a partner, the HFC/PFC would share revenue/fees that would be negotiated with the NRP Group. The Schertz Housing Authority has already created a Public Facilities Corporation and could partner with the NRP Group on this project instead of the City. The Schertz Housing Authority Director has met with the NRP Group and is open to a partnership and is planning to brief her board on the concept.
Staff is seeking feedback from Council on creating an HFC or PFC for this particular project. It should be noted that a comprehensive plan amendment and a rezoning would be needed. Additionally, a letter of support for the project is needed from the City.