San Marcos City Council votes to support tax credits for two income-restricted projects

The City Council is supporting two new affordable housing developments. (Community Impact Newspaper)
The City Council is supporting two new affordable housing developments. (Community Impact Newspaper)

The City Council is supporting two new affordable housing developments. (Community Impact Newspaper)

Two income-restricted housing projects will be coming to San Marcos after a unanimous vote at the Feb. 5 City Council meeting. In addition to obtaining the city’s support for federal tax breaks, the projects will be the first to receive a new local tax exemption to encourage the development of affordable housing.

After multiple discussions, revisions and additions, both the Lantana on Bastrop Project and the Redwood Multifamily Housing Project gained the support of the San Marcos City Council.

“This being our first possible project to pass for getting the tax incentive we needed to make it a model project to set a precedent for others that come to our city,” Council Member Melissa Derrick said before voting to approve the Lantana project.

Both projects will be the first to receive a local tax exemption under an amendment recently adopted into the city’s affordable housing policy. In addition, both projects received the city’s support on applications for a Low Income Housing Tax Credit, which is administered through the Texas Department of Housing and Community Affairs.

Once completed, the Lantana project will provide 216 apartment units, with 22 units restricted for residents making 30% of the area median income, which can range from $19,900-$37,500 in San Marcos, depending on the number of people per household, according to the city website. The remaining units will be reserved for residents making 40-60% AMI or less. The developer will have the option to raise the permitted AMI for renters to 70% for some apartment units if demand is present.


Mission DG, the developer of Lantana, has partnered with the San Marcos Housing Authority, which will be a general partner of the development owner and the landlord. The planned project will also provide supportive services and shuttle services to its residents, which is part of the required criteria for developers seeking local tax exemption.

In lieu of taxes, the developer will give the city an annual payment of $11,000, according to the resolution approved by council.

The Redwood Multifamily Housing Project, the second project the council voted to support, will develop 296 apartment units. From these, 30 units will be restricted for residents making 30% AMI or less. The remaining apartment units will be restricted to residents making 60% AMI or less.

LDG Development, the developer of the Redwood project, will be required to make an annual payment of $75,000 in lieu of tax with an increase of $1,500 each year throughout the life of the project, according to the resolution.

Over a 20-year period, the Redwood development will bring $1.79 million to the city, according to documents provided by the developer.

The Redwood project's developer set a memorandum of understanding with the Hays-Caldwell Women’s Center to reserve five units at 30% AMI or less for transitional housing. In addition, the developer has also agreed to carry out a program with Splash Coworking and provide classes for its residents, which may include finance, literacy, life skills improvement, professional development and health and wellness workshops.
SHARE THIS STORY


MOST RECENT

A faculty member at Texas State University tested positive for coronavirus, university officials announced March 27. (Community Impact Staff)
Faculty member at Texas State University tests positive for coronavirus; bank employee tested for possible case

University officials at Texas State sent out a notice to faculty, staff and students announcing that a faulty member who was at the San Marcos campus March 9 and March 11 has since tested positive for the coronavirus.

Here is the latest news on stay-at-home orders across the Austin area

Find out if your locale is sheltering in place or what legal consequences the coronavirus is creating in the stories below.

While the agency is still tallying the number of unemployment insurance claims filed thus far in March, in the week prior to March 25, at least 150,000 claims had been filed. (Courtesy Adobe Stock)
Official: Increase in calls for statewide unemployment benefits is ‘almost vertical’

According to Serna, on an average day the Texas Workforce Commission’s four call centers statewide receive 13,000-14,000 calls; on March 22, the agency received 100,000 calls regarding unemployment insurance benefit inquiries.

Hays County issued a shelter-in-place order March 25. (Evelin Garcia/Community Impact Newspaper)
Shelter-in-place order FAQs: Find out what is and is not allowed under the order

A shelter-in-place order was issued by Hays County Judge Ruben Becerra on March 25 in an effort to reduce physical contact between residents during the coronavirus pandemic.

The Austin Board of Realtors is recommending all of its realtor members suspend in-person real estate showings until further notice. (Community Impact file photo)
ABoR ‘strongly discourages’ real estate showings

The Austin Board of Realtors is recommending all of its realtor members suspend in-person real estate showings until further notice.

(Courtesy University of Texas at Austin)
Central Texas officials: 90% reduction in interaction needs to happen immediately

New modeling from UT shows region could run out of hospital beds without reducing interaction.

The policy is meant to help reduce risk to the public as well as to Hays County employees and department personnel. (Courtesy Fotolia)
Lower-risk arrestees may be released to reduce coronavirus risk at Hays County Jail

New policies are in place to keep coronavirus exposure chances lower.

Hays CISD has suspended school operations indefinitely. (Courtesy Adobe Stock)
JUST IN: Hays CISD extends suspension of school indefinitely

Curbside meals and in-home instruction to continue while Hays CISD remains closed

Leander ISD child nutrition services employees carry out a table of lunches at Bagdad Elementary School in Leander on March 25. (Brian Perdue/Community Impact Newspaper)
The Texas Tribune: Students no longer need to be present to pick up free meals from schools

After pleas from Texas school superintendents and lawmakers, the U.S. Department of Agriculture granted school districts more flexibility on how and what they feed students in free and reduced-price meals.

Freelancers and independently contracted workers in Austin are flocking to the health insurance market to buy coverage, new numbers show. (Iain Oldman/Community Impact Newspaper)
Austin-based company reports health insurance applications up more than 30% over past two weeks

Freelancers and independently contracted workers in Austin are flocking to the health insurance market to buy coverage, new numbers show.

Back to top