The housing project, called parcHaus, would occupy 29.66 acres and be managed by the San Marcos Housing Authority. Half of the units would have reduced rent for applicants making less than the median household income, or MHI. The other 50% of units would be priced at the market rate.
During a June 2 meeting, Dave Holland of project developer Provident Realty Advisors said parcHaus was intended for workforce housing.
"It's a gap between the very low-income tax credit-type projects to the upper end," he said.
Documents submitted to the city noted the housing was for teachers, retail workers, single parents and recent graduates.
The average rent, which is based on the rents of one-, two- and three-bedroom units, would range from $1,300-$1,700 in today's market, but are subject to change with future market prices.
The amount paid for rent is based on the applicant's MHI. The average rent for households making 60% of the MHI would be $1,300 if the units were available in today's market. The average unit price would be $1,500 per month for residents making 70% of the MHI, and $1,700 for applicants at or above the MHI.
ParcHaus units will be a maximum of two stories and will include backyards. Some units would include attached garages, and amenities include a pool area, a fitness center and a clubhouse.
The SMHA will receive a $250,000 payment from the developer upon closing; a $25,000 yearly administration fee; 15% of cash from capital events, such as a refinance or sale; and commissions on future sales.
San Marcos ISD would also receive an annual $50,000 contribution from the property.
Holland said the project's tax value would be in the ballpark of $331,000 per year, which will be diverted to SMHA beginning in the fourth year of the property's operation. No taxes would be paid in the property's first three years due to its affordable housing portfolio.
On June 2, Holland told City Council a plan did not yet exist for a 9.66-acre section of the property bordering the outlet mall. Its zoning was changed to Character District-5. CD-5 zoning is intended to allow residential, retail, service and commercial uses.
A third division of land up for rezoning is 10.19 acres and is intended to become a runoff detention area for the development. It was rezoned Character District-1.