Houston Housing Authority Partners with California Developer on Two Multifamily Projects

Feature Illustration (above): Architectural concept rendering of Green Oaks Apartments, an affordable housing project by AMCAL Multi-Housing Inc.

Posted: 8-1-2019

by Adolfo Pesquera

Houston (Harris County) — The Houston Housing Authority has partnered with the Texas division of AMCAL Multi-Housing Inc.–a housing developer based in Agoura Hills, California–to construct two rent-controlled apartment complexes.

The HHA Board of Commissioners at their July 16 session approved two resolutions with AMTEX Multi-Housing LLC.

Resolution No. 3061 authorizes the housing authority’s president and chief executive officer to execute a Memorandum of Understanding to form a housing development partnership. Under this resolution, AMTEX proposes to build a new affordable apartment property with 370 units.

This resolution was first presented to the Board for consideration at the June session, but it was tabled at the request of a commissioner who wanted more time to discuss the project with AMCAL’s project manager, David Wolf.

The Midtown District and Greenspoint are the neighborhoods where Houston Housing Authority wants to partner on affordable housing projects with AMCAL Multi-Housing Inc.

“The proposed Midtown development is located in a federally designated Opportunity Zone (established by the Tax Cuts and Jobs Act of 2017), as well as a tax increment reinvestment zone (TIRZ),” the resolution states. These government designations provide financing advantages that make it possible to offer apartments at lower cost.

The MOU will ensure that 185 units will go to families earning 80% of the area median income. Of the 185 units, 140 will be one-bedroom units and 45 will be two-bedroom units.

All of the remaining units will be leased at market rates. However, two units will be set aside as living quarters for onsite management.

Resolution No. 3073 likewise authorizes creation of a partnership through the crafting of an MOU. The project, referred to as AMTEX-Richcrest, proposes new construction for a 288-unit affordable housing complex to be located somewhere in Greater Greenspoint, a neighborhood located in far northwest Houston around the intersection of Interstate 45 and the Sam Houston Tollway.

Neither resolution gave details on an exact location.

“AMTEX has engaged a public relations firm to develop a comprehensive Section 3 and SWMBE Outreach plan to identify local contractors and subcontractors along with SWMBE businesses and individuals in the immediate area to inform them of employment and contracting opportunities to provide goods and services in connection with this proposed new development,” the resolution states.

The Greenspoint project has no market rate units. Two units will be set aside for onsite management and all remaining units are to be rent restricted to families earning 30%, 50% and 60% of AMI.

“The proposal contemplates utilizing Low Income Housing Tax Credit equity, Harris County CDBG funds, bond debt and deferred developer fee as the source of funds for the development,” the resolution states.

AMCAL develops properties in four market categories–affordable housing, workforce housing, student housing and market-rate housing. The company has an aggressive land acquisition department that purchases real estate in California, Texas and Washington states for future development.

According to AMCAL’s website, the company has six projects under development in Texas that to not include the two projects with the Houston Housing Authority.

Rockwall—The Florence at the Harbor (market rate), a 228-unit complex with views of Lake Ray Hubbard that is expected to be completed this year. This is a partnership between developers AMCAL Equities LLC and Atticus Real Estate Development. The contractor is Spring Valley Construction Company and the designer is Humphreys & Partners Architects.
McKinney—McKinney Falls Apartments (affordable), a 312-unit complex that is to be completed this year. The developer is AMTEX Development LLC. The contractor is AMTEX Construction LLC and the designer is BGO Architects.
Houston—Green Oaks Apartments (affordable), a 177-unit complex currently under construction that is expected to be completed in 2021. The developer is AMTEX Multi-Housing LLC. The contractor is AMTEX Construction LLC and the designer is BGO Architects.
Garland—Lavon Senior Villas (affordable), a 120-unit complex now in construction and expected to be completed in 2020. The developer is AMTEX Development LLC. The contractor is AMTEX Construction LLC and the designer is BGO Architects.
Fort Worth—Alliance Apartments Phase 1 (market rate), a 520-unit complex, but is AMCAL is responsible for the 265 units of Phase 1. Construction begins August 2019 and it is expected to be completed in 2021. The developer is AMCAL Equities LLC. The contractor is the Alliance Apartments GC Joint Venture and the designer is BGO Architects.
Austin—Limestone Ridge Senior Apartments (affordable), is a 225-unit complex that is expected to be completed in 2021. The developer is AMTEX Limestone Fund LLC. The contractor is AMTEX Contractors LLC and the designer is BGO Architects.