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HomeMy WebLinkAboutPR 20684: APPLICATION FOR HOUSING TAX CREDITS OR PRIVATE ACTIVITY AT 934 W. 14TH STREET (PRINCE HALL VILLAGE APARTMENTS) interoffice MEMORANDUM To: Mayor, City Manager,and City Council From: Valecia R.Tizeno,City Attorney Sherry Vital,Asst. City Attorney Date: February 5, 2019 Subject: Proposed Resolution No.20684 Proposed Resolution No. 20684 has been requested for City Council consideration of the submission of the application to the Texas Department of Housing and Community Affairs(TDHCA) for 2019 Housing Tax Credits or Private Activity Bonds for property located at 934 W. 14th St., Port Arthur, Texas. Port Arthur PHV, LP Company has asked the City Council to provide a resolution to acknowledge that the City of Port Arthur has more than twice the state average of units per capita supported by Housing Tax Credits or Private Activity Bonds. They further request that the City support the proposed renovation. The City Council is being asked specifically to approve the renovation of the site and to authorize an allocation of Housing Tax Credits for the Development pursuant to Texas Administrative Code §2306.6703(A)(4). Attached for your review is an updated synopsis of recent data compiled by the Texas Department of Housing and Community Affairs with regard to tax credit units. This data displays information regarding various cities throughout the state based upon population, number of units, and whether the city currently has tax credit properties above two times per capita. Listed below are the existing HTC units in Port Arthur. Currently there are 16 developments and 2186 units. Prince Hall Village is not listed as a HTC property. Therefore, upon approval by the State, the 120 units will be added to the 2186 units listed below. 9% Greens on Turtle Creek, 3200 Turtle Creek Port (407) 01073 HTC 2001 07/31101 The Blvd. , Arthur Jefferson 77642 $477,406 84 84 Elderly 772-0200 9% 3500 Turtle Creek Port (409) 01130 HTC 2001 07/31/01 Port Arthur lownhomes Dr. , Arthur Jefferson 77642 $717,217 104 104 General 724-6510 4% Port (512) 02470 HTC 2002 04/10/03 The Shire 4020 Hwy.365 Arthur Jefferson 77642 $554,837 310 310 General 288-7200 9% 4251 Jimmy Port (409) 03261 HTC 2003 07/31/03 Pebble Creek Apartments Johnson Blvd. Arthur Jefferson . 77642 $387,920 208 166 General 724-0020 9% Crystal Creek Park 8101 Honeywood Port (409) 03262 HTC 2003 07/31/03 Apartments Trail Arthur Jefferson 77642 $377,548 202 162 Elderly 724-0020 9% Port (409) 03263 HTC 2003 07/31/03 Cedar Ridge Apartments 7601 9th Avenue Arthur Jefferson 77642 $387,461 200 160 General 724-0020 9% Port (409) 04100 HTC 2004 07/28/04 O.W.Collins Apartments 4440 Gulfway Drive Arthur Jefferson 77642 $406,999 200 200 Elderly 724-0020 4% 7900 Heatherbrook Port (409) 04430 HTC 2004 07/08/04 Heatherbrook Apartments Trail Arthur Jefferson 77642 $421,398 256 256 General 721-6603 9% Southwood Crossing Port (409) 05199 HTC 2005 07/27/05 Apartments 3901 Highway 73 Arthur Jefferson 77642 $631,266 120 120 General 724-0020 9% 3280 Central Mall Port (512) 060186 HTC 2006 05/09/06 Sunset Way Apts Drive Arthur Jefferson 77642 $825,066 96 96 General 306-9206 9% Port (512) 060193 HTC 2006 07/28/06 Villa Main Apts 901 Main Ave. Arthur Jefferson 77643 $440,440 140 140 General 633-4037 9% Legacy Senior Housing of 3225 Lake Arthur Port (214) 060199 HTC 2006 07/28/06 Port Arthur Drive Arthur Jefferson 77642 $961,150 126 120 Elderly 941-6885 9% One Southwood Crossing Port (409) 060238 HTC 2006 05/09/06 Apts 3901 Highway 73 Arthur Jefferson 77642 $540,416 84 84 General 724-0020 9% Port (409) 07026 HTC 04100 2007 10/12/06 O.W.Collins Apartments 4440 Gulfway Drive Arthur Jefferson 77642 $40,084 0 0 Elderly 724-0020 9% Southwood Crossing Port (409) 08061 HTC 05199 2008 10/12/06 Apartments 3901 Hwy 73 Arthur Jefferson 77642 $59,326 0 0 General 724-0020 Port (409) 13409 4%HTC 2013 09/12/13 Park Central 2500 Highway 365 Arthur Jefferson 77640 $656,590 184 184 General 724-0020 According to the 2012-2016 Census Bureau's American Community Survey (ACS), the City of Port Arthur currently has 54,913 citizens and according to the TDHCA's inventory of tax credit as of November 8, 2018, 2186 tax credit units. The explanation of the calculation is explained below: The configuration listed below is labeled as the Housing Tax Credit ("HTC") Inventory. The HTC Inventory per capita for each city is calculated by first, dividing the total of HTC units in Texas by the state's population. In order to calculate the number of units per capita in the City of Port Arthur, you must divide the total 2186 HTC units in the City by the City's population of 54,913. This gives an average HTC unit per capita in the City of Port Arthur to be 0.039808424. Lastly,the City's HTC units per capita, 0.039808424, are divided by the state's units per capita. For your review, the Legal department has prepared this report to show the average amount of tax credit units for cities throughout Texas that are of similar size to Port Arthur, cities larger than Port Arthur with the same amount of tax credit units as Port Arthur, and cities in Jefferson county and surrounding counties. Similar size cities throughout Texas with a population between 40,000 and 70,000 City's HTC/ City City Population #of tax credit units State's HTC City>2x per Capita Bedford 48864 103 0.220140925 No Burleson 41962 508 1.264329031 No Cedar Hill 47457 80 0.176052535 No Cedar Park 63551 868 1.426428193 No Channelview 40534 180 0.463773169 No Coppell 40631 0 0 No DeSoto 51854 816 1.64346505 No Euless 53675 929 1.807574635 No Flower Mound 69966 0 0 No Galveston 49443 640 1.351847609 No Georgetown 59436 1539 2.704217527 Yes Grapevine 50538 224 0.462895059 No Haltom City 43864 74 0.176187894 No Harlingen 65634 486 0.773321303 No Huntsville 40432 548 1.415493604 No Keller 44250 250 0.590037088 No Mansfield 63141 363 0.600409765 No New Braunfels 67097 305 0.474732882 No North Richland Hills 67994 288 0.442358599 No Pflugerville 55712 1022 1.915820093 No Port Arthur 54913 2186 4.157455069 Yes Rockwall 41672 141 0.353368104 No Rowlett 59203 486 0.857324298 No San Marcos 57743 1791 3.239282462 Yes Sherman 40112 445 1.158612666 No Spring 58608 744 1.325771295 No Texas City 46811 817 1.822748356 No The Colony 40757 145 0.371550945 No Victoria 66139 775 1.223761133 No Wylie 45655 90 0.205876483 No Conclusion: Currently, Port Arthur has the largest HTC city average of all cities in the state of Texas with a population between 40,000 and 70,000. Cities with a population between 100,000 and 400,000 with approximately the same amount or less tax credit units as Port Arthur City City Population #of tax credit units City's HTC/State's HTC City>2x per Capita Abilene 122612 1259 1.072371667 No Carrollton 129266 696 0.562312201 No College Station 104684 791 0.78913036 No Frisco 145646 404 0.289691252 No Garland 234810 1562 0.694731544 No Grand Prairie 185631 1466 0.824776054 No Irving 232013 1245 0.560414817 No Killeen 138745 784 0.5901349 No Laredo 251671 1272 0.527845124 No Lewisville 102327 887 0.905286315 No McAllen 138475 957 0.721760551 No McKinney 156821 2082 1.386529403 No Mesquite 143771 1212 0.880407845 No Midland 128051 1515 1.235612337 No Odessa 114258 1053 0.9624858 No Pasadena 153286 1874 1.276790588 No Pearland 106238 372 0.365692144 No Plano 279088 1285 0.480855449 No Port Arthur 54913 2186 4.157455069 Yes Richardson 108350 170 0.163859861 No Round Rock 112767 1052 0.974285615 No The Woodlands 108373 1072 1.033061715 No Tyler 101946 1648 1.688261025 No Waco 130659 1498 1.197360869 No Wichita Falls 105013 1028 1.022357122 No Conclusion:Currently, Port Arthur's HTC city average is more than that of much larger cities in Texas with a population between 100,000 and 400,000. Cities in Jefferson County and surrounding counties(Orange,Chambers and Liberty) City City Population #of tax credit units City's HTC/State's HTC City>2x per Capita Ames 1330 0 0 No Anahuac 2147 0 0 No Baytown 75310 1544 2.141150654 Yes Beach City 2518 0 0 No Beverly Hills 1828 0 0 No Bridge City 7964 72 0.944177882 No China 908 80 9.201459437 Yes Cleveland 7879 178 2.35939948 Yes Cove 299 0 0 No Daisetta 771 0 0 No Dayton 7494 281 3.916022772 Yes Dayton Lakes 70 0 0 No Devers 346 0 0 No Groves 15798 0 0 No Hardin 886 0 0 No Kenefick 500 0 0 No Liberty 8936 131 1.531019468 No Mont Belvieu 4892 0 0 No Nederland 17132 0 0 No Nome 409 0 0 No North Cleveland 255 0 0 No Old River-Winfree1861 0 0 No Orange 19128 750 4.094909214 Yes Pine Forest 612 0 0 No Pinehurst 2100 0 0 No Plum Grove 449 0 0 No Port Arthur 54913 2186 4.157455069 Yes Port Neches 12794 0 0 No Beaumont 117729 2279 2.021684808 Yes Rose City 379 0 0 No Seabrook 13038 0 0 No Shoreacres 1759 0 0 No Taylor Landing 228 0 0 No Texas City 46811 817 1.822748356 No Vidor 10928 97 1.882686972 No West Orange 3454 70 2.11654879 Yes Conclusion:Currently, Port Arthur's HTC city average is the largest of all cities of Jefferson County,Orange County, Chambers County, and Liberty County. P.R.NO.20684 113012019 PDL PAGE 1 OF 4 RESOLUTION NO. A RESOLUTION SUPPORTING THE SUBMISSION OF AN APPLICATION BY PORT ARTHUR PHV, LP FOR HOUSING TAX CREDITS OR PRIVATE ACTIVITY BONDS AT 934 W. 14TH STREET (PRINCE HALL), AUTHORIZING AN ALLOCATION OF HOUSING TAX CREDITS FOR THE APPROVAL OF THE REHABILITATION OF THE DEVELOPMENT AND AUTHORIZING A COMMITMENT OF DEVELOPMENT FUNDING IN THE FORM OF A GRANT OR REDUCED FEES. WHEREAS, Port Arthur PHV, LP (the "Applicant") has proposed a development for affordable rental housing at 934 W. 14th Street named Prince Hall, TDHCA#19301 (the "Development") in the City of Port Arthur, Texas; and, WHEREAS, the Applicant intends to submit an application to the Texas Department of Housing and Community Affairs ("TDHCA") for 2019 Housing Tax Credits or Private Activity Bonds for the Development; and, WHEREAS, pursuant to §11.3(c), Texas Administrative Code, we acknowledge that the City of Port Arthur has more than twice the state average of units per capita supported by Housing Tax Credits or Private Activity Bonds; and, WHEREAS, the City Council authorizes a commitment of rehabilitation funding to Prince Hall in the form of a grant or reduced fees, as delineated in Exhibit"A". NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section 1. That the City of Port Arthur hereby supports the proposed Rehabilitation, and the City Council has voted specifically to approve the rehabilitation of the Development and to authorize an allocation of Housing Tax Credits for the Rehabilitation pursuant to Texas Local Government Code §2306.6703(A)(4). P.R.NO.20684 113012019 PDL Page 2 of 4 Section 2. That the City Council hereby approves and authorizes a commitment of development funding to Prince Hall in the amount of five hundred dollars [$500.00] in the form of a grant or reduced fees. Section 3. That a copy of the caption of this Resolution shall be spread upon the Minutes of the City Council. READ, ADOPTED, AND APPROVED, this day of February, 2019 A.D., at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: Mayor: Councilmembers: Noes: Derrick Ford Freeman, Mayor ATTEST: Sherri Bellard, TRMC, City Secretary APPROVED AS TO FORM: See fNewcb Valecia"Val" Tizeno, City Attorney APPROVED FOR ADMINISTRATION: Harvey L. Robinson, City Manager ' P.R.NO.20684 1/30/2019 PDL Page 3 of 4 EXHIBIT "A" DERRICK FORD FREEMAN,MAYOR HARVEY L.ROBINSON THOMAS J. KINLAW,II,MAYOR PRO TEM , INTERIM CITY MANAGER City of -_ COUNCIL MEMBERS: RAYMOND COTT,JR. f SHERRI CITYBE ,TAMC SECRETARY CAL J.JONES HAROLD DOUCET SR. ort r t h uVALECIA"VAL"TIZENO CHARLOTTE MOSES CITY ATTORNEY KAPRINA FRANK Texas February , 2019 Port Arthur PHV, LP Attn: Joshua W. Allen, Sr. Authorized Representative 3735 Honeywood Court Port Arthur, TX 77642 Re:Financial Support for Prince Hall, TDHCA#19301, 934 W. 14th Street, Port Arthur, TX 77640 Dear Mr. Allen, On February 5, 2019, the City of Port Arthur City Council approved Resolution No. to provide financial support to the Prince Hall development located at 934 W. 14th Street, Port Arthur, TX 77640. Per Resolution No. , the City of Port Arthur, TX will make a contribution of at least five hundred dollars [$500.00] toward the construction of Prince Hall in the form of a grant or reduced fees. Attached is the resolution that has been approved by the City of Port Arthur City Council. If you have any questions or concerns; please contact me at(409) 983-8105 or derrick.freeman(@.portarthurtx.gov. Sincerely, Derrick F. Freeman, Mayor Attachment: 1 P.O BOX 1089•PORT ARTHUR,TEXAS 77641-1089•409/983-8100•www.portarthur.net