The gist
New Braunfels City Council approved a statement of nonobjection for the Lydon Ranch Apartments project, located along Loop 337 in New Braunfels, to move forward. The developer, Paravel Capital, is working out details with the Alamo Area Housing Finance Corporation to develop the workforce housing through a 75-year lease with the AAHFC.
How it works
In exchange for developing the property, half of the units will be leased to families with incomes at 80% of the area median family income. That will be enforced with a restrictive covenant lasting at least 40 years, according to city documents.
Another 5% of one-bedroom units will be set aside for teachers earning 95% of the area median family income.
“The project is supposed to be tax exempt. They have worked out an agreement with the AAHFC to provide payment in lieu of taxes,” said Jeff Jewell, economic and community development director for New Braunfels.
An annual $25,000 payment to New Braunfels ISD from the developer along with the creation of a preferred employer program with the school district are part of the proposal to replace the tax payments.
