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Seguin: Kentucky Developer Secures TDHCA Financing for 198-Unit Affordable Apartment Project

Feature Illustration: The front and back elevations to Building Type A of three residential building types proposed for Pecan Grove Apartments. Courtesy: TDHCA records.

Posted: 7-29-2020

by Adolfo Pesquera

Seguin (Guadalupe County) — A development group based in Louisville, Kentucky has secured financial assistance from a state agency that is needed to construct a 198-unit apartment complex across from Texas Lutheran University at rates affordable to low-income tenants.

The Texas Department of Housing and Community Affairs Governing Board on Thursday, July 23, approved a resolution that provides $26 million in unrated Multifamily Housing Revenue Bonds, in addition to the award of  4% housing tax credit financing on a $1,353,160 tax credit application. The Governing Board also waived a neighborhood risk factor related to the poverty rate.

The TDHCA considers a long list of risk factors when determining tax credit awards. The poverty rate can affect an applicant’s score, but in this case TDHCA staff argued the proximity of the university and its student population (17% of the census track population) skewed and overstated the poverty rate downward.

The applicant, LDG Pecan Grove LP, has been trying to get the project built for several years. In December 2018, City Council agreed to rezone a portion of the development site from commercial to multifamily. Then in February 2019, City Council adopted a Resolution of No Objection, which is a requisite for a 4% housing tax credit award from the TDHCA.

Finally, on June 25, the city of Seguin issued the site development permit.

The city of Seguin only has three multifamily developments that were constructed with housing tax credit financing, which is the most common method of providing affordable housing. Of the 308 existing units, 56 serve the elderly. The last tax credit financing multifamily development to serve the general population was awarded in 2004.

This project, named Pecan Grove Apartments, would also serve the general population. It is located on a 9.89-acre tract directly south of West Court Street (U.S. Highwy 90 Alternate), at 1231 W. Court St.

The developer proposes 65% impervious cover on an undeveloped tract. The eight apartment buildings would be of three architectural types, each of them three stories and 40 feet in height. There would also be a 5,422-square-foot, one-story, 15-foot-height clubhouse adjacent to an outdoor pool and playground.

The development density is about 20 units per acre. Total gross square feet of construction comes to 294,967 SF. The private right-of-way and surface parking will be sufficient for 449 vehicles.

Building Types:

  • Two buildings at 13,850 SF
  • Two buildings at 13,088 SF
  • Four buildings at 11,140 SF

Three members of the development team provided the exact same business address in Louisville, Kentucky to the TDHCA. They are developer, LDG Development; design architect, Rickhaus Design; and general contractor, Xpert Design and Construction LLC. LDG Development, however, also maintains an office in Austin.

The MEP and structural engineering firm is Genesis Engineering Group Inc. of Franklin, Tennessee.

In the VBX database, this is listed as Project ID 2020-5934.

Pecan Grove Apartments proposed site plan. Courtesy: TDHCA records.


adolfo@virtualbx.com

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By |2020-07-29T15:43:34-05:00July 29th, 2020|Construction Preview, Feature Story|

About the Author:

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.

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