San Antonio Housing Authority to Propose Six 4% Tax Credit Multifamily Projects for 2020 (Part 1 of 2)
Feature Illustration (above): Architectural rendering of Culebra Crossing, a public-private partnership project. Courtesy: SAHA and Lynd Company.
by Adolfo Pesquera
San Antonio (Bexar County) — The San Antonio Housing Authority Board of Directors will propose six multifamily projects at its Thursday, Aug. 1, meeting as candidates for the state’s 4% low income housing tax credit program.
The six projects under consideration are in addition to five other multifamily projects the board will take action on this week. This article will report on seven projects. VBX will report on the remaining four in a separate article.
The Operations and Choice Neighborhoods Committee of SAHA met July 18 to consider six projects that should apply for the 4% tax credit financing administered by the Texas Department of Housing and Community Affairs (TDHCA). However, as is explained later, it is possible that none of these projects will get financed.
Resolutions were approved to bring them to the Board of Directors. The six projects are described as follows:
Alazan Courts – a 328-unit second phase on various lots on South Coloardo, Torreon, South Brazos and West Cesar Chavez streets. Phase 1 of Alazan Courts–reported recently in VBX as Alazan Lofts–is still in the early stages of design. Last week, the TDHCA Board of Directors approved a 9% housing tax credit award for Alazan Lofts (Phase 1). The funding sought for Phase 2 is $44 million.
1604 Flats – a 33-unit project located near the northwest corner of Interstate 10 East and Loop 1604 in Converse. The funding request is for $38 million.
Old Pearsall Flats — a 345-unit project located near at 9326 SW Loop 410, southeast of the Loop 410/Old Pearsall Road intersection. The funding request is for $41 million.
Trader Flats — a 324-unit project located at 8671 SW Loop 410, northwest of the Loop 410/Old Pearsall Road intersection. The funding request is for $38 million.
Kitty Hawk Flats — a 240-unit project located at the north corner of Kitty Hawk and O’Connor roads. The funding request is for $28 million.
Mira Vista Apartments — a 300-unit project located at 1226 Mira Vista Drive and also fronting Culebra Road. The funding request is for $18 million.
The six proposed 4% tax credit and bond financed year 2020 cycle SAHA multifamily projects. Map courtesy of SAHA.
According to the staff summary, SAHA will propose the projects for the 2020 4% tax credit cycle, however, these projects require some financing with tax-exempt bond and that requires a competitive “volume cap” allocation from the Texas Bond Review Board. Volume cap allocations are not awarded until the end of the year, “if any volume cap is available.”
State agencies are first in line for the volume cap.
“Last year, the state agencies used almost all of the volume cap and only seven local agency projects received volume cap,” the staff assessment stated. “Volume cap available to local agencies is awarded on a first come, first served basis, according to when the application is submitted. Therefore, SAHA would need to submit applications as soon as possible.”
A street side view of the proposed Culebra Crossing project. Courtesy: SAHA and Lynd Company.
In other business, the Board will consider a resolution to proceed with a public-private partnership agreement with the Lynd Company on a 326-unit Class A multifamily project near the intersection of Culebra Road and Loop 1604. The project has an estimated cost of more than $47 million.
Fulcrum Development is currently in the process of construction a mixed-use commercial strip center, Culebra Commons Phase II. This is an expansion of Culebra Commons and will add another 40,000 square feet of retail, restaurant and service space. The SAHA and Lynd Company project will be immediately north of Phase II on vacant land to the north that is between Culebra Commons and the Hill Country Honda dealership.
The San Antonio-based Lynd Company is a real estate developer and property management company that has handled $1.5 billion in residential properties over the past decade. Since 2012, Lynd has developed about $500 million in new construction in San Antonio, Chicago, Denver, Miami and Austin.
The action to be taken Thursday will authorize the San Antonio Housing Facility Corporation (a SAHA affiliate) to execute transactions necessary for the development and construction of Culebra Crossing. Its special purpose entity will be SAHFC Culebra Crossing LP LLC.
The site plan for the 14-acre Culebra Crossing project. Courtesy: SAHA, Lynd Company.
Lynd will be the developer and retain an interest in the property for the first five years of operation. SAHFC will own the real estate and provide a 75-year lease to Culebra Crossing Apartments LP, which will be jointly owned by a Lynd affiliate. SAHFC gets a 25% interest in cash flow and after 75 years will own 100% of the project.
SAHFC ownership provides a 100% exemption from ad valorem taxes, if at least 50% of the total units are reserved for residents earning less than 80% of the area median income. SAHFC’s involvement also enables the purchase of construction materials without paying sales taxes.
Culebra Crossing is to be comprised of seven 3-story buildings on slightly more than 14 acres. It will include 496 parking spaces, of which 416 will be uncovered surface parking, 60 will be in carports and 20 will be in garages. Other project amenities include a clubhouse, dog park, two courtyards with a pool in one, and fitness center.
Site plan for one of the two amenity courtyards in the Culebra Crossing project. Courtesy: SAHA/Lynd Company.
Adolfo Pesquera (Reporter/Editor) is a veteran news journalist. He has worked for Hearst Corp., American Lawyer Media, News Corp and Freedom Communications. His work has been published in newspapers and magazines across the USA. He is a journalism graduate of UT-RGV. He writes, edits and creates digital pages for VBX.