TAAHP members Brownstone Affordable Housing and MVAH Partners have asked the Waco City Council for support for two apartment communities that will create 179 total affordable housing units in the city. Support from the City won’t guarantee the developments will be built, but will increase their chances of receiving the competitive 9 percent federal housing tax credits both developers have applied for through the Texas Department of Housing and Community Affairs (TDHCA).
To date, Waco is home to 11 affordable rental housing tax credit developments that make up more than 1,000 affordable rental units.
The Brownstone Group is proposing a 120-unit complex that will serve seniors. The development would be called The Residences at Lake Waco and will be located at 1550 W. Highway 6. The Residences at Lake Waco would cost $17.5 million to build and would include 102 affordable units, meaning they would be offered at below-market rates for households earning between 30 percent and 60 percent of the area’s median income, and 18 units would be rented at market rates.
MVAH Partners is proposing an 86-unit complex at 19th Street and Lakeshore Drive. The $15.8 million development would include 77 affordable housing rental units and nine offered at market rate rents. The complex would offer residents one-, two- and three-bedroom units.
The Mayor of Waco, Kyle Deaver, characterized both developments as “worthwhile” and said that they help push the city toward its goal of offering more mixed-income housing.
The resolution of support is expected to appear before council at its February 19th meeting.
According to a recent U.S. Census survey, more than 55 percent of Waco residents pay more than 30 percent of their household income for housing, underscoring the need for more affordable housing in the area. Housing Tax Credit communities are able to offer below-market rents to those earning between 30 percent and 60 percent of an area’s median household income due to the equity raised through the sale of housing tax credits to investors. The capital raised through the sale of tax credits pays for a portion of development costs. The savings is passed on to residents through lower rents.
In Waco, a single person earning 30 percent of the area median income, or $37,722, would pay approximately $337 in rent per month with utilities. Someone earning 50 to 60 percent of the area’s median income would pay $562 to $675.
As required by the Texas Department of Housing and Community Affairs, both developers would be required to maintain ownership of their respective developments for at least 40-years. Not doing so would require each developer to pay back all monies received as a result of the tax credits.