Efforts to redevelop the apartments are part of the city of Lewisville's goal to maintain affordable housing for its residents. The apartments, located at 1595 S. Old Orchard Lane, will be up for sale in 2027 when the adjusted tax credits expire. Unless the current adjusted rental rates are maintained, the costs could increase to market level, resulting in many residents being unable to pay their rent, according to the city.
Currently, 55 units have been set aside by the city to accommodate households with incomes at or below 50% of the area medium income. Another 109 units are set aside to accommodate household incomes at or below 60% of the area medium income.
The proposal calls for Denton Housing Authority and AMTEX, the developer, to create a limited partnership to purchase, improve and operate the apartment complex, according to a presentation to council. As part of the proposal, an interlocal agreement would allow the creation of a public facility corporation. The public facility corporation would own the project and lease it back to the limited partnership, documents state. That setup would make the development 100% exempt from property taxes, according to the presentation.
The ultimate goal is to have 50% of the apartment units adjusted for households that earn 80% or below the area medium income after 2037, according to discussions.
Documents state that the city of Lewisville and the Denton Housing Authority would have no liability related to the project's debt.
An inspection of the property identified $2.99 million worth of maintenance and accessibility issues that would need to be addressed as part of the redevelopment. The work involves renovating 182 units with new countertops, flooring, cabinet fronts, light fixtures and windows. Remaining units have been previously renovated, according to the presentation.
City Council members asked staff to provide more details before they decide whether to move forward with the proposal.
