This follows a decision by council to not object to a 4% tax credit for a proposed multifamily development by the Plano Housing Authority on K Avenue in late March.
The K Avenue Lofts, which aims to provide affordable housing in Plano, will be able to include this statement of no objection in its application to receive the housing tax credit from the Texas Department of Housing and Community Affairs. The state department ultimately decides whether the housing community will receive the tax credit, and city approval of the resolution does not indicate support for any proposed plans, staff said at an earlier meeting.
The city also approved support of three applications for 9% housing tax credits at a Feb. 8 meeting. Applications for a 9% tax credit are considered competitive and are submitted only once a year, while 4% applications are accepted year-round. The tax credit would apply to investments put into the property during construction of the multifamily complex.
In an effort to greater control the impact of these tax credits on the city, Council Member Anthony Ricciardelli suggested requiring additional council approval earlier in the process of planning developments eligible for tax credits. This would ideally happen before developers entered into any agreements or partnerships for the property, he said.
State legislators are interested in debating how tax credits and the process to apply for them work in the current legislative session. Plano council members directed staff to indicate their support of this being discussed at the state level while the Texas 87th Legislature's regular session runs. The session ends May 31.
In the meantime, the council encouraged incorporating quarterly reports from the Plano Housing Authority and initiating meetings with staff early in the process of future tax credit applications. A member of city staff will also be present at future Plano Housing Authority board meetings, City Manager Mark Israelson said.
Next steps if the state does not pursue a change in the Legislature would be possibly adopting a resolution to change the process, council members said.
"So [we can] start with [those things] today ... then put something together when it's appropriate on a local level that would address it," Council Member Rick Smith said. "So council does have some governance on these issues."
The K Avenue Lofts expects to sit on the 5.3 acres of land on the corner of K Avenue and Park Boulevard that was rezoned from commercial to a planned development space at a Feb. 23 meeting.
The development expects to include up to 226 apartments made up of a mixture of one-, two- and three-bedroom units. Forty-seven units will be open to any renter, while 179 units will be restricted to workforce households at 60% of the area median income, or approximately $60,000 maximum gross income.