The city of Lewisville is considering partnering with Denton Housing Authority and a private company to redevelop Oak Tree Village Apartments, according to discussions at the Aug. 2 Lewisville City Council meeting.
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.
