San Antonio: Tampico Apartments 4% LHTC Application Headed to TDHCA Board
Feature Illustration (above): The south and north elevations for one of the two buildings that will become Tampico Apartments. Courtesy: GRG Architecture.
by Adolfo Pesquera
San Antonio (Bexar County) — Pending passage tomorrow of an amended resolution from City Council, the San Antonio Housing Authority application for the 200-unit Tampico Apartments will be heading to the governing board of Texas Department of Housing and Community Affairs.
City Council passed a Resolution of No Objection on Nov. 14, but it lacked their acknowledgment of certain risk factors that are taken into consideration by TDHCA when considering the granting of a 4% low income housing tax credit, a necessary step in financing this affordable housing project.
Thursday’s vote will include acknowledgment that the project is in a census tract with a poverty rate of more than 40% and it is located within one mile of another tax credit development awarded within the last three years; NRP Group recently received a tax credit award for a project just two blocks east at West Cevallos Street.
The TDHCA does not normally allow a tax credit award where a proposed development is attached to those two conditions, but the TDHCA allows the local governing body to provide a resolution to specifically allow such construction or adaptive reuse.
The developers’ application to TDHCA also notes several mitigating factors that they argue compensate for the risks:
“The Near Westside where Tampico Apartments is to be located … is a highly-desirable location with proximity to job centers with varying pay scales within walking distance and easy commutes, the VIA Centro Plaza just north of the site, local neighborhood organizations that directly support low-income families, ease of access to the downtown area, walking and biking trails, museums, restaurants, and other entertainment opportunities. Through both public and private investment in the neighborhood area, continued economic development and revitalization efforts are transforming the Near Westside and integrating the Development Site into the urban center of Downtown San Antonio as developmentdeconcentrates and pushes further west.
“From 2013 through 2017, the poverty rate in the subject Census Tract decreased by 6.9%, median incomes increased by 13.42%, and mean incomes increased by 44.97%. These improvements compare favorable when compared against those for the Primary Market Area and neighborhood area. The data also shows the economic growth occurring in the area is not exclusively concentrated in the Downtown district. Substantial growth is occurring in CensusTracts west of I-35.
“Tampico Apartments is located within the attendance zone of J. T. Brackenridge Elementary School, Tafolla Middle School, and Lanier High School. Tafolla Middle School and Lanier High School each received a ‘C’ rating for 2019, and a ‘Met Standard’ rating for 2018. J. T. Brackenridge Elementary School received a 2019 TEA Accountability rating of ‘F’ but received a ‘Met Standard’ rating for all previous years. Additionally, the schools provide on-site after school programming that offer academic enrichment, STEM curriculum, and technology training to students.”
The Tampico Apartments site plan overlaid on a Google map.
The value of the tax credit for Tampico Apartments would be about $7.2 million over a 10-year period and it is an essential component of their financing strategy. The total development cost is estimated at almost $30 million. However, the construction portion is budgeted at about $23 million.
Of the 200 units, 123 will be rent restricted at 80% or below of the area median income.
The developers hope to get started on construction by April and reach completion by September 2021.
Tampico Apartments will be constructed on a 3.76-acre lot that has an existing building and surface parking lot, all of which must first be demolished.
There will be two buildings, each of them four stories in height and with an elevator. A third building will be constructed to serve as a community center with a covered patio, fitness center, business center, a warming kitchen with tables and chairs, and a community room furnished with a pool table and other games.
The site plan makes accommodations for a dog park, bike parking, BBQ grills, a pool and outdoor pavilion, as well as a 500-square-foot shaded rooftop viewing deck.
The parking plan provides space for 167 vehicles, of which seven would be on-street parallel parking for visitors.
The two apartment buildings are of different sizes. Building One will have 81 apartments and a gross square footage of 84,826 SF. The gross square footage for Building One includes the 8,743 square feet that encompasses with community center, which is part of the building.
Building Two will have 119 apartments and a gross square footage of 114,458 SF.
GRG Architecture of San Antonio is the project architect.
SAHA has been holding this property for future development for nearly 26 years. It was acquired from Citgo Petroleum Corp. in 1994. SAHA as general partner created Tampico Apartments LP to be the tenant/development owner on land leased by SAHA. Mission DG Ltd. is the limited partner.
Tampico Apartments site plan. Courtesy: GRG Architecture.
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.