Plano South | February 2023

Housing tax credit-funded DEVELOPMENTS IN PLANO

Year funding was approved: 2005 Tax credit type: 9% Low-income units: 240

14 AFFORDABLE APARTMENTS

The Texas housing department provides tax credits that reduce federal income tax liability by around 4% or 9% of a developments construction costs.

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Evergreen Apartments at Plano Gala at Premiere Garden Gate Apartments Juniper Apartments K Avenue Lofts

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Mariposa Apartments at Communications Mariposa Apartments at Plano Parkway Parmore Jupiter Road Patriot Park Family The Plaza at Chase Oaks Tuscany Villas Veranda Townhomes

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Year funding was approved: 2021 Tax credit type: 4% Low-income units: 179

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Villas at Plano Gateway Villas of Mission Bend

SOURCE: CITY OF PLANO COMMUNITY IMPACT

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project—said he is excited about the quality of the project as it nears completion. Smith has worked to develop aord- able housing for almost 30 years, and he added that maintaining quality of his projects is crucial. “I look at K Avenue as one of the better developments that I’ve worked on,” Smith said. “If it doesn’t stay well-maintained... that would aect me on my next deal somewhere else.” Smith said the development will help people who work in Plano but have to live outside of the city, as well as Plano residents in need of aord- able housing. Mimi Conner, Plano chapter lead for Lovepacs, has seen the number of Plano residents her organization helps in need rise from 400 to 2,500 since she started ve years ago. Lovepacs works with the school district to help provide meals for fam- ilies in need. “Because rent is going up, we are seeing families needing more assis- tance,” Conner said. “Even though they’re being fed at school, they’re struggling every single day.” Grady said he believes reworking the housing tax credit application process will help meet that need, not hinder it. “There are all kinds of avenues of building aordable housing—that won’t stop,” he said. “Once the pro- gram is redesigned and implemented, then I think developing aordable housing will pick right back up.”

Year funding was approved: 2014 Tax credit type: 4% Low-income units: 250

Year funding was approved: 1999 Tax credit type: 9% Low-income units: 101

aordable housing all across North Texas, because the area has such an inux of folks coming in,” Smith said. Why the program is changing Plano ocials want to make sure the order of approvals “aligns with other processes that go on within the city,” according to Israelson. The existing process allows devel- opers to apply for the housing tax credit program before securing needed zoning on a property. “At least get zoning out of the way before anybody spends a whole bunch of money and time,” Plano City Council Member Rick Grady said. “It’s a better sequence for the developers, for the city, and it’s better for decision making.” Grady also wants to give precedence to local developers when considering housing tax credit applications. “We have a lot of developers in Plano that can be [called] on to do this type of thing,” Grady said. “And they care, because they’re in the community.” Grady added that using local developers will be better for Plano’s economy. “If my general partner is from Plano, and the management company is in Plano, the construction workers

will be from around the area as well,” Grady said. How the program functions K Avenue Lofts receives funding from a 4% tax credit, which gener- ates around 30% of a development’s equity. The state housing department also provides 9% tax credits, which generate around 70% of a develop- ment’s equity. The credits reduce federal income tax liability by approx- imately 4% or 9%. Developers can apply for either credit, but the 9% tax credits are very competitive, according to Smith. That is where the city comes in. A resolution of support from council will give a development more points in the state housing department’s application process—points that could decide whether a project is awarded funds. “The more points you have when you go into the competition, the higher in the stack you get, which gives you a better chance to get awarded the grant,” Grady said. “That’s a really big deal.” Aordable housing in Plano The K Avenue Lofts received funding in 2021, and Smith—whose company is the developer for the

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For a development to be eligible for tax credits at the state level, the city must rst provide a resolution of sup- port or no objection regarding poten- tial nancing of the project. Of the 14 Plano housing develop- ments funded by the program, nine are senior living facilities. The projects also have a maxi- mum yearly income that ranges from $34,100 for a single person to rent a unit to $77,160 for a household of eight people. “It is rent restricted, not rent con- trolled,” said Darren Smith, south- west region head of development at Pivotal, a developer that focuses on aordable housing. “You have to pay your rent—it’s not public housing— but it makes the rent aordable.” Pivotal is the developer behind the K Avenue Lofts, one of Plano’s most recent housing tax credit-funded projects. Smith said the development will help the area “thrive from an employ- ment perspective,” by providing local housing to help ll jobs. “There’s a need for workforce

PLANO SOUTH EDITION • FEBRUARY 2023