Killeen’s City Council voted Tuesday to support housing tax credit applications to the Texas Department of Housing and Community affairs for two affordable housing developments proposed to be built within the City’s limits. Originally there were five potential housing tax credit developments that were presented to the City for approval. After one development proposal was withdrawn, the Council reviewed the four remaining for consideration.
The Texas Department of Housing and Community Affairs awards federal housing tax credits it receives from the IRS in a competitive application process each year. If awarded, developers sell those tax credits to investors to raise capital that is used to pay for construction costs. The money saved from those expenses are passed on to residents in the form of lower than market rate rents. The rent charged to residents is based on household income for those earning between 30 percent and 60 percent of the local areas median household income.
Because of the competitive nature of the housing tax credit application process and the limited amount of tax credits available, the TDHCA separates the state by region and generally awards credits to only one application per region.
At the forefront of the meeting, Councilman Butch Menking proposed support for Edgewood Villas. The affordable housing community would be constructed in the northeast part of Killeen near North 60th and Bills Roads. Menking cited that this particular development is preferred due to it being located in a part of the city the Council is targeting for more affordable housing.
Councilman Gregory Johnson suggested the Council support all four developments so that it would expand the City’s chances of at least one of them being approved by the TDHCA.
“I would like to see the council support all four,” Johnson said. “I would rather have a project on the west side of town than not have one at all.”
The final motion was made by Councilman Kilpatrick to support just two of the projects, the Villas at Robinet slated to be constructed on the southeast corner of Robinett and W. Elms and Edgewood Villas. The council voted 6 to 0 in favor of the motion.