College Station Affordable Housing

1. REQUEST FOR INFORMATION
16-023
AFFORDABLE HOUSING
DEVELOPMENT
Community Services
Community Development Division
January 28, 2016

2. Consolidated Plan
• Identified Rental Housing as a High Priority for the
following population:
– Extremely Low & Low Income
– Families with Children
– Elderly & Frail Elderly
– Public Housing Residents
– Individuals
– Persons with Physical & Developmental Disabilities

3. Consolidated Plan
• Goal Description: Ensuring adequate rental housing
opportunities for low-income families and
individuals through the provision and sustainability
of decent housing by encouraging the following
type of projects:
– Rental Housing Rehabilitation
– Rental Housing Construction
– Rental/Owner Housing Code Enforcement
– Homelessness Prevention – TBRA Security Deposits

4. Area Median Income Limits
Household Size
Income Limit
30% AMI 60% AMI 80% AMI
1 $12,800 $25,620 $34,100
2 $14,600 $29,280 $39,000
3 $16,450 $32,940 $43,850
4 $18,250 $36,540 $48,700
5 $19,750 $39,480 $52,600
6 $21,200 $42,420 $60,400
7 $22,650 $45,360 $64,300
8 $24,100 $48,240 $64,300

5. Examples
• Individual working full-time making $12/hour
earns $24,960 annually/$2,080 monthly: 30% - 60%
AMI
• Family of 4 with 2 working adults making $10/hour
earns $41,600 annually/$3,467 monthly: 60% –
80% AMI
• Elderly individually receiving average Social Security
benefit of $1,341/mo: 30% - 60% AMI

6. 2012 Comprehensive Housing
Affordability Strategy
• 32,885 Households: 18,160 or 55% LMI
• 13,080 Family Households: 4,365 or 33% LMI
• 21,350 Renter Households: 16,080 or 75% LMI
• Brazos County Level – age 62 or older:
– 12,425 Elderly Households: 4,730 or 38% LMI
 1,600 LMI Renters
 3,130 LMI Owners

7. Fair Housing Requirements
• Prohibits discrimination in housing and lending based on several
protected classes
– Race - Religion
– Color - Sex
– National Origin - Familial Status
– Handicap (Disability)
• Exemptions include:
− Owner-occupied buildings with no more than 4 units
− Single-family housing sold or rented without broker
− Housing operated by organizations and private clubs that limit
occupancy to members
− Housing for Elderly (55 & Older)- Exempted

8. Current Conditions
• Survey conducted in November and December of
90 apartment complexes in College Station
Rental Type Efficiency 1 Bedroom 2 Bedrooms 3 Bedrooms 4 Bedrooms 5 Bedrooms
Number of
Available
Units
9 22 24 5 12 4
Average
Reported
Rent
$622 $761 $933 $1,429 $2,135 $3,265
HUD Fair
Market Rent $647 $651 $803 $1,161 $1,399 $1,601
* Does not indicate number of rooms available for rent in a unit with other rooms
are leased. Common practice to cater toward the large student population.

9. Examples
• Individual working full-time making $12/hour
earns $24,960 annually/$2,080 monthly: $624
housing exp
• Working family of 4 with 2 working adults making
$10/hr earns $41,600 annually/$3,467, monthly:
• $1,040 housing exp.
• Elderly individually receiving average Social Security
benefit of $1,341/mo: $402 housing exp

10. Current Conditions
Rental Type Efficiency 1 Bedroom 2 Bedrooms 3 Bedrooms 4 Bedrooms 5 Bedrooms
Number of
Available
Units
9 22 24 5 12 4
Average
Reported
Rent
$622 $761 $933 $1,429 $2,135 $3,265
HUD Fair
Market Rent $647 $651 $803 $1,161 $1,399 $1,601
• Examples:
– Individual: $624 housing exp
– Family of 4: $1,040 housing exp.
– Elderly individual: $402 housing exp

11. Current Conditions
• Affordable & Workforce Housing Inventory
Complex Restriction Source of
Funding/Year
Total Units LMI Units Waiting List
Heritage LMI LIHTC – 1999 96 96 36
Haven Homeless LIHTC – 2000 24 24 6
Santour Court LMI LIHTC – 2007 16 16 50*
Windsor Point
(No LURA)
Transitioning to
student property
LIHTC – 1994 192 0 0
Southgate Village (Site
based – No LURA)
LMI LIHTC – 2001 200 199 1 BR: 1-2 yrs
2-4BR: 1-3 mo
Villas of Rock Prairie Elderly LIHTC – 1994 132 92 100*
Terrace Pines Elderly LIHTC – 2004 100 80 8*
LULAC Oak Hill
(Section 202)
Elderly/Disabled Section 202 50 50 8*
* Managers state that it takes months and sometimes years for units to become available

12. Housing Choice
Voucher Program
• Program funded by U. S. Department of Housing
and Urban Development
• Provide rental assistance payments for households
at or below 60% of area median income (AMI)
• Minimum of 75% reserved for households below
30% of AMI
• Authorized to issue up to 1,901 voucher each
month for the 7 county region
• Average approximately 1,602 or 84% of this
number due to high rental costs

13. Economic Outlook Conference
• Dr. Jim Gaines from the Texas Real Estate Center
• Stated that housing affordability is a major issue
• Household numbers are increasing – majority of which
are Millennials - tend to rent instead of buy
• Average sales price in College Station increased by 10%
to $186,300
• A family of 4 at 80% AMI earning no more than $48,700
could potentially qualify for a mortgage of $146,100
• There are currently 3 houses and 6 townhome/condos
listed for sale in College Station at $146,100 or less

14. RFI Background
• Current conditions and rental inventory support
increased efforts in expanding affordable housing
opportunities for all LMI populations
• Inquiries beginning in June regarding potential support
of tax credit applications for College Station
• Tax credit allocation process changed preferences,
thereby increasing interest in CS developments
• Late adoption by Governor of tax credit process
• High cost for developer to respond to RFP/submit
application
• Decision to release Request for Information

15. Purpose
• The purpose of this RFI was to solicit information
from firms interested and qualified to develop an
affordable elderly or family development within the
City.

16. Responses
• 4 proposals received
– MGroup – Pre-application submitted, seeking support
from Council
– Casa Linda – Pre-application submitted, will not proceed
– Prestwick Companies – No Pre-application
– KG Residential – No Pre-application

17. Proposed Development –
Huntington at College Station

18. Proposed Development –
Huntington at College Station

19. Project Proposal
• The Huntington at College Station
– Estimated $18 million investment
– Mixed-income elderly affordable housing development
– 148 units – one & two bedroom luxury apartment homes
for adults 55+
 84 one bedroom
 20 one bedroom with study
 44 two bedroom
– 105 affordable, 43 market rate
– Rental range - $350 to $1,200 per month
– Commitment to Green Building and LEED Certified

20. Project Proposal
• Amenities
– Exceptional interior with Pergo wood flooring, custom
cabinetry, open and spacious floor plans.
– Controlled access gates
– Outdoor pool
– Executive business center
– Home health room
– Clubhouse
– Fitness center, beauty shop, onsite laundry
– Transportation
– Handicapped accessibility
– Etc.

21. Mgroup Holdings, Inc.
• Mark Musemeche, A.I.A.
– 25 years Architecture and real estate development
experience
– Owns & operates 2,800 units in 25 communities in Texas
– Originated and sold over $195 million in low income
housing tax credits
– In house integrated Architecture, development, design
and construction
– Business model to build, own and operate for 20+ years
– Based in Houston

22. Basic Tax Credit Process
• 9% Tax Credits allocated by Texas Department of
Housing and Community Affairs – funds from HUD
• Competitive Process – Region 8
• Qualified Allocation Plan (QAP) sets parameters
and point structure
• Tax Credit award – generates capital for
construction

23. Basic Tax Credit Process
• Pre-application Information – Due January 8th
– Development Name & Proposed Entity Name & Type
– Target Population
– Development Address, City, Zip, County, Region &
designation
– Census Tract
– # of Low Income/# Market Rate/# of Total Units
– Notifications to Public Officials
– Self Score

24. Basic Tax Credit Process
• Full Application – Due March 1st
– Administrative
– Development Site
– Development Activities
– Finance
– Organization
– Third Party
– Community Input

25. Basic Tax Credit Process
Timeline
January 8th: Pre-applications due
March 1st: Application due
March – June: Public Hearings, Challenges
July: Final Recommendations by TDHCA Board
Spring 2017: Construction begins

26. HOME Funding Available
• The FY 2016 Annual Action Plan and budget allocated
$240,000 in HOME funds for supporting development
partners interested in development affordable/workforce
housing:
– HTC project
– Habitat for Humanity
– Elder Aid
– Brazos Valley Community Action Agency

27. Staff Recommendation
• Staff recommends that Council adopt a resolution of
support for the MGroup, Inc. HTC application for the 2016
competitive 9% housing tax credit application process to
maximize the opportunity for an award in College Station.
• Strengthen the application by providing $100,000 in HOME
funds

28. Future Research
• Staff is currently researching available funding mechanisms to
expand affordable housing opportunities:
– CDBG/HOME Funds
– Developing relationships with other organizations with access to sources
of funds
– HOME and/or CDBG funds
– HTC – 9% or 4%
– Section 108 Loans
– Others
• Bush School class will conduct a special project this spring to
assist staff with this effort
• Information will be presented to Council at a future date for
consideration