For those keeping score at home, four housing developments have been deemed eligible by the city’s downtown development department for the revamped Center City Housing Incentive Policy (CCHIP). Since its inception in 2012, the program has always offered tax rebates, and waivers on SAWS and city development fees, among other so-called carrots. But it’s gone through a few revisions.
The latest, which was passed by City Council in December after the program was suspended for a year, offers essentially the same types of incentives, but with a bent toward the production of more affordable housing.
Two weeks ago, the city’s Center City Development and Operations department released the list of four projects eligible for the revamped CCHIP, and we, like other media outlets, reported on them. They are the Museum Reach Lofts, Cattleman Square Lofts, Augusta Apartments and The Villas at Museum Reach.
Since then, I’ve asked CCDO if other developers have applied for CCHIP incentives since Jan. 2, to try to gauge the level of interest from developers in the new policy—because the revised policy offers less subsidies to developers. For example, whereas a developer would receive a full rebate on city property taxes under the old CCHIP, now they’d receive 75 percent back, while 25 percent feeds into an affordable housing fund. CCDO told me last week they’d get back to me on other applicants.
For now, here’s a deeper dive at the incentives each of the newer projects are due to receive under the new CCHIP.
[ Editor’s note: Typically, CCDO provides an estimated value for the tax rebate over the term, which is either 10 or 15 years, depending on the location, using a method that’s been explained to me, but that I’m still trying to comprehend, to be honest. For these projects, CCDO has released the rebate’s worth for only the first year. Under the new incentives policy, CCDO is working on a CCHIP applicant database it says it will put online in February. I’ll explore more the full estimated value of the tax rebates then.
The area median income for a family of four in the greater San Antonio area (including New Braunfels) is $66,800, according to the U.S. Department of Housing and Urban Development. Here’s how it breaks down for lower-income households:
» 80% – $53,440
» 60% – $40,800
» 50% – $33,400
» 40% – $26,720
» 30% – $20,400
Museum Reach Lofts
» Developer: Alamo Community Group (nonprofit based in San Antonio)
» Location: Southeast corner of West Jones Avenue and North St. Mary’s Street.
» Cost: $17.5 million
» Size: 95 units
• 77 units reserved for households earning less than 60 percent of the area median income (AMI)
• 9 units reserved for households earning less than 30 percent AMI
• 9 units rented at market rate
» Estimated construction start: March 2019
» Estimated completion: September 2020
» CCHIP package:
• $27,431 in city development fee waivers
• $295,988 in SAWS fee waivers
• 75 percent rebate on city property taxes over 10 years (estimated rebate is $34,600 the first year); 25 percent of its city property tax obligation will feed into the affordable housing fund (estimated at $11,500 the first year).
» Other incentives: $2.8 million reimbursement grant from the Midtown Tax Increment Reinvestment Zone; 9 percent low-income housing tax credits worth an estimated $10 million after they’re sold to investors.
» Previously published: Affordable Museum Reach Lofts receive $2.8 million incentive
Cattleman Square Lofts
» Developer: Alamo Community Group
» Location: 811 W. Houston St.
» Size: 160 units
• 8 units reserved for households earning less than 80 percent AMI
• 136 units reserved for households earning less than 60 percent AMI
• 16 units reserved for households earning less than 30 percent AMI
» Estimated construction start: First quarter 2020
» Estimated completion: 2021
» CCHIP package:
• $83,522 in city development fee waivers
• $480,160 in SAWS fee waivers
• 75 percent rebate on city property taxes over 10 years (estimated rebate is $55,800 the first year); 25 percent of its city property tax obligation will feed into the affordable housing fund (estimated at $18,600 the first year).
» Other incentives: Alamo Community Group is pursuing 4 percent low-income housing tax credits. Estimated value unknown.
» Previously published: Cattleman’s Square Lofts would add affordable apartments near UTSA’s expansion
Augusta Apartments
» Developer: Stillwater Capital (for profit developer based in Dallas)
» Location: 819 Augusta St.
» Size: 260 units
• 13 units reserved for households earning less than 80 percemt AMI
» Estimated construction start: Spring 2019
» Estimated completion: Early 2021
» CCHIP package:
• $112,601 in city development fee waivers
• $846,755 in SAWS fee waivers
• 75 percent rebate on city property taxes over 15 years (estimated rebate is $154,300 the first year); 25 percent of its city property tax obligation will feed into the affordable housing fund (estimated at $51,400 the first year).
» Previously published: McCullough Avenue apartments get the green light
The Villas at Museum Reach
» Developer: MGS Museum Reach LLC (San Antonio)
» Location: 920/922 Dallas St.
» Size: 13 townhomes (for sale)
• 4 units reserved for families earning less than 120 percent AMI
» Estimated construction start: Unknown
» Estimated completion: Unknown
» CCHIP package:
• $12,167 in City fee waivers
• $79,326 in SAWS fee waivers
• 75 percent rebate on city property taxes over 10 years (estimated rebate is $12,700 the first year); 25 percent of its city property tax obligation will feed into the affordable housing fund (estimated at $4,200 the first year).
Contact Ben Olivo: 210-421-3932 | ben@saheron.com | @rbolivo on Twitter